[House Report 104-152]
[From the U.S. Government Publishing Office]





   104th Congress 1st 
         Session        HOUSE OF REPRESENTATIVES        Report
                                                       104-152
_______________________________________________________________________

                                     

 
  CONSOLIDATED AND REFORMED EDUCATION, EMPLOYMENT, AND REHABILITATION 
                       SYSTEMS ACT (CAREERS ACT)

                               ----------                              

                              R E P O R T

                                 of the

                              COMMITTEE ON
                        ECONOMIC AND EDUCATIONAL
                             OPPORTUNITIES

                             together with

               MINORITY, DISSENTING, AND ADDITIONAL VIEWS

                        [To accompany H.R. 1617]




 June 22, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
CONSOLIDATED AND REFORMED EDUCATION, EMPLOYMENT, AND REHABILITATION SYSTEMS 
ACT (CAREERS ACT)
   104th Congress 1st   HOUSE OF REPRESENTATIVES        Report
         Session
                                                       104-152
_______________________________________________________________________



                                     


  CONSOLIDATED AND REFORMED EDUCATION, EMPLOYMENT, AND REHABILITATION 
                       SYSTEMS ACT (CAREERS ACT)

                               __________

                              R E P O R T

                                 of the

                              COMMITTEE ON
                        ECONOMIC AND EDUCATIONAL
                             OPPORTUNITIES



                             together with



               MINORITY, DISSENTING, AND ADDITIONAL VIEWS



                        [To accompany H.R. 1617]




 June 22, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
                                                                       
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-152
_______________________________________________________________________



  CONSOLIDATED AND REFORMED EDUCATION, EMPLOYMENT, AND REHABILITATION 
                       SYSTEMS ACT (CAREERS ACT)

_______________________________________________________________________


 June 22, 1995.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


     Mr. Goodling, from the Committee on Economic and Educational 
                 Opportunities, submitted the following

                              R E P O R T

                             together with

               MINORITY, DISSENTING, AND ADDITIONAL VIEWS

                        [To accompany H.R. 1617]

      [Including cost estimate of the Congressional Budget Office]
  The Committee on Economic and Educational Opportunities, to 
whom was referred the bill (H.R. 1617) to consolidate and 
reform workforce development and literacy programs, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:
SECTION 1. SHORT TITLE.

  This Act may be cited as the--
          (1) ``Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act''; or
          (2) ``CAREERS Act''.

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. Findings and purpose.
Sec. 4. Authorization of appropriations.
Sec. 5. Definitions.
Sec. 6. Transition.

             TITLE I--WORKFORCE DEVELOPMENT INFRASTRUCTURE

Sec. 101. Purpose of title.

              Subtitle A--State and Local Responsibilities

Sec. 102. State requirements.
Sec. 103. Collaborative process regarding State system.
Sec. 104. Consolidated State workforce development and literacy plan.
Sec. 105. Establishment of workforce development areas.
Sec. 106. Provisions regarding local workforce development boards.
Sec. 107. Establishment of one-stop career center systems.
Sec. 108. Certification of education, training, and vocational 
rehabilitation service providers.
Sec. 109. Management information systems.
Sec. 110. Performance accountability system.

              Subtitle B--Amendments to Wagner-Peyser Act

Sec. 131. General program requirements.
Sec. 132. Labor market information.

                       Subtitle C--Worker Rights

Sec. 141. Requirements.

 TITLE II--YOUTH DEVELOPMENT AND CAREER PREPARATION CONSOLIDATION GRANT

Sec. 201. Purposes.
Sec. 202. Definitions.

                       Subtitle A--State Funding

Sec. 211. National and State funding.
Sec. 212. Within State allocation.

       Subtitle B--State Organizational, Planning, and Reporting 
                            Responsibilities

Sec. 221. State plan.
Sec. 222. State programs and State activities.
Sec. 223. Incentive awards.
Sec. 224. Core standards, performance goals, and measures.

         Subtitle C--Subgrants for In-School and At-Risk Youth

Sec. 231. Partnership agreements.
Sec. 232. Distribution of funds.

                       Chapter 1--In-School Youth

Sec. 241. Uses of funds for in-school youth.

                        Chapter 2--At-Risk Youth

Sec. 245. Uses of funds for at-risk youth.
Sec. 246. At-risk youth providers.

                     Subtitle D--National Programs

Sec. 251. Research activities.
Sec. 252. Assessment and data collection of youth development and 
career preparation programs.
Sec. 253. National center or centers for research.

      TITLE III--ADULT EMPLOYMENT AND TRAINING CONSOLIDATION GRANT

     Subtitle A--Adult Employment and Training Consolidation Grant

Sec. 301. Purpose.
Sec. 302. Authorization.
Sec. 303. Allotment among States.
Sec. 304. Allocation within States.
Sec. 305. Additional State plan requirements.
Sec. 306. Use of amounts.
Sec. 307. Core standards, performance goals, and measures.

                      Subtitle B--Federal Programs

Sec. 311. National discretionary grants.
Sec. 312. Disaster relief employment assistance.
Sec. 313. Research, demonstration, evaluation, and capacity building.
Sec. 314. Workforce skills and development loans.
Sec. 315. Employment, training, and education assistance for Native 
Americans.
Sec. 316. Employment, training, and education assistance for migrant 
and seasonal farmworkers.

 TITLE IV--ADULT EDUCATION AND FAMILY LITERACY CONSOLIDATION GRANT AND 
          LIBRARY SERVICES AND TECHNOLOGY CONSOLIDATION GRANT

Sec. 401. Findings.
Sec. 402. Definitions.

  Subtitle A--Adult Education and Family Literacy Consolidation Grant

Sec. 411. Purposes.

                           Chapter 1--Funding

Sec. 421. Reservations from amounts appropriated.
Sec. 422. Allotment.

                      Chapter 2--Grants To States

Sec. 431. Requirement to make grants.
Sec. 432. Uses of funds.
Sec. 433. Additional grant requirements.
Sec. 434. Performance measures.

                      Chapter 3--National Programs

Sec. 441. National Institute for Literacy.
Sec. 442. National leadership activities.

    Subtitle B--Library Services and Technology Consolidation Grant

Sec. 451. Purposes.
Sec. 452. Authorization of appropriations.
Sec. 453. Allotments.
Sec. 454. Grants to States.
Sec. 455. Uses of funds.
Sec. 456. Annual applications.

           TITLE V--AMENDMENTS TO REHABILITATION ACT OF 1973

       Subtitle A--Vocational Rehabilitation Consolidation Grant

                      Chapter 1--Transition Period

Sec. 501. Transition.

      Chapter 2--Revision Of Title I of Rehabilitation Act of 1973

Sec. 511. Revision of title I.

       Subtitle B--Other Amendments to Rehabilitation Act of 1973

Sec. 521. Training and demonstration projects.
Sec. 522. Employment opportunities for individuals with disabilities.

                TITLE VI--REPEALERS AND OTHER AMENDMENTS

Sec. 601. Carl D. Perkins Vocational and Applied Technology Education 
Act.
Sec. 602. School-to-Work Opportunities Act.
Sec. 603. Adult Education Act.
Sec. 604. National Literacy Act.
Sec. 605. Library Services and Construction Act.
Sec. 606. Technology for Education Act of 1994.
Sec. 607. Job Training Partnership Act.
Sec. 608. Stewart B. McKinney Homeless Assistance Act.
Sec. 609. Effective date.
SEC. 3. FINDINGS AND PURPOSE.

  (a) Findings.--The Congress finds the following:
          (1) The knowledge and skills of the United States workforce 
        are fundamental to the economic competitiveness of the Nation 
        today and in the future, however, the United States does not 
        currently possess a comprehensive, effective, and efficient 
        system of workforce preparation and development.
          (2) Due to global competition, emerging technologies in the 
        workplace, the emergence of quality managing, corporate 
        realignments, and the loss of many low-skilled jobs, United 
        States workers will increasingly need to enhance their skills 
        on a continuing, lifelong basis through such a workforce 
        preparation and development system.
          (3) Reports from the Comptroller General of the United States 
        have identified 163 different Federal programs, totaling 
        $20,000,000,000, and administered by 14 different Federal 
        agencies, that offer some form of education, job training, or 
        employment assistance to youth and adults.
          (4) Such reports point to the many problems of duplication 
        and fragmentation that exist within the varied Federal 
        workforce preparation and development programs, including--
                  (A) the additional costs of administering overlapping 
                workforce preparation and development programs at the 
                Federal, State, and local levels which divert scarce 
                resources that could be better used to assist all 
                individuals in preparing for and entering the 
                workforce; and
                  (B) conflicting eligibility requirements, annual 
                budgeting and operating cycles, planning and reporting 
                requirements, and performance measurement systems which 
                serve as barriers to the integration of Federal 
                workforce preparation and development programs and 
                result in an inefficient use of resources.
          (5) Major goals of any reform of the Federal workforce 
        preparation and development system must be--
                  (A) to streamline and consolidate individual 
                workforce preparation and development programs, 
                eliminating unnecessary duplication and fragmentation 
                in such programs;
                  (B) to provide maximum authority and responsibility 
                to States and local communities for operation of State 
                and local workforce preparation and development 
                programs;
                  (C) to stress private sector partnerships, including 
                the use of private sector service providers and 
                encourage increased leadership and responsibility on 
                the part of the private sector through the use of 
                creative incentives for investment in workforce 
                training (which may include reduced regulatory burdens, 
                tax incentives, and employer loans for the training of 
                incumbent workers);
                  (D) to establish a system which is market-driven, 
                accountable, provides customer choice and easy access 
                to services, and reinforces individual responsibility;
                  (E) to improve education, literacy, job training, 
                rehabilitation, and employment assistance programs in 
                the United States, encouraging lifelong learning and 
                skills upgrading through a seamless system connecting 
                elementary, secondary, postsecondary, rehabilitation, 
                adult, and work-based training and education; and
                  (F) to establish a comprehensive, integrated labor 
                market information system to ensure that workforce 
                preparation and development programs are related to the 
                demand for particular skills in local labor markets, 
                and to ensure that information about the employment and 
                earnings of the local workforce, occupations in demand, 
                skill requirements for such occupations, and the 
                performance of education, rehabilitation, and training 
                providers, are available to job seekers, employers, 
                teachers, students, and decisionmakers.
          (6) Early exposure to career opportunities, including 
        opportunities in the practical arts or trade, can enrich the 
        education experience and provide incentives for students to 
        stay in school and achieve higher levels of learning.
          (7) Millions of families in the United States are trapped in 
        a cycle of poverty, dependency, and inadequate education that 
        is linked to illiteracy and low educational achievement, for 
        which adult education and family literacy programs have been 
        shown to be successful in improving the educational attainment 
        and job skills of parents and their children, contributing to 
        reductions in crime, welfare dependency, and enhancing 
        employment opportunities for such individuals.
          (8) In recent years, a number of innovative States and local 
        communities have begun successful efforts to integrate Federal 
        workforce preparation and development programs through one-stop 
        service delivery systems, however, without exception, such 
        States and communities have experienced numerous Federal 
        barriers to such program integration.
          (9) An extremely high percentage of Americans with 
        disabilities are unemployed, and need access to high quality, 
        specialized rehabilitation services that lead to employment, 
        independence, and full participation in the mainstream of life 
        in America.
  (b) Purpose.--The purpose of this Act is to transform the vast array 
of Federal workforce development and literacy programs from a 
collection of fragmented and duplicative categorical programs into a 
streamlined, comprehensive, coherent, high-quality, cost-effective, 
market-based, and accountable Federal workforce development and 
literacy system that is designed to meet the education, employment, and 
training needs of the workforce and the competitiveness needs of 
employers of the United States, both today and in the future.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated--
          (1) for title II, $2,308,200,000 for fiscal year 1997 and 
        such sums as may be necessary for each of the fiscal years 1998 
        through 2002 to carry out the programs under such title;
          (2) for title III, $2,263,400,000 for fiscal year 1997 and 
        such sums as may be necessary for each of the fiscal years 1998 
        through 2002 to carry out the programs under such title; and
          (3) for subtitle A of title IV, $280,000,000 for fiscal year 
        1997 and such sums as may be necessary for each of the fiscal 
        years 1998 through 2002 to carry out the programs under such 
        subtitle.
  (b) Program Year.--
          (1) In general.--Beginning with fiscal year 1997, and 
        thereafter, appropriations for any fiscal year for programs and 
        activities under this Act shall be available for obligation 
        only on the basis of a program year. The program year shall 
        begin on July 1 in the fiscal year for which the appropriation 
        is made.
          (2) Obligation.--Funds obligated for any program year under 
        titles II, III, and IV, may be expended by each recipient 
        during that program year and the two succeeding program years, 
        except that the Secretary shall, in accordance with paragraph 
        (3), reallot to eligible States the funds allotted to States 
        from funds appropriated for reallotments.
          (3) Amounts available for reallotment.--The amount available 
        for reallotment is equal to--
                  (A) the amount by which the unobligated balance of 
                the State allotment at the end of the program year 
                prior to the program year for which the determination 
                under this section is made exceeds 20 percent of such 
                allotment for the prior program year; plus
                  (B) the unexpended balance of the State allotment 
                from any program year prior to the program year in 
                which there is such excess.

SEC. 5. DEFINITIONS.

  For purposes of this Act:
          (1) Adult.--The term ``adult'' means an individual who is 16 
        years of age, or beyond the age of compulsory school attendance 
        under State law, and who is not enrolled or required to be 
        enrolled in secondary school.
          (2) Adult education.--The term ``adult education'' means 
        services or instruction below the postsecondary level for 
        adults--
                  (A) who are not enrolled in secondary school;
                  (B) who lack sufficient mastery of basic educational 
                skills to enable them to function effectively in 
                society or who do not have a certificate of graduation 
                from a school providing secondary education and who 
                have not achieved an equivalent level of education;
                  (C) who are not currently required to be enrolled in 
                school; and
                  (D) whose lack of mastery of basic skills results in 
                an inability to speak, read, or write the English 
                language which constitutes a substantial impairment of 
                their ability to get or retain employment commensurate 
                with their real ability, and thus are in need of 
                programs to help eliminate such inability and raise the 
                level of education of such individuals with a view to 
                making them less likely to become dependent on others.
          (3) Area vocational education school.--The term ``area 
        vocational education school'' means--
                  (A) a specialized high school used exclusively or 
                principally for the provision of vocational education 
                to individuals who are available for study in 
                preparation for entering the labor market;
                  (B) the department of a high school exclusively or 
                principally used for providing vocational education in 
                not less than 5 different occupational fields to 
                individuals who are available for study in preparation 
                for entering the labor market;
                  (C) a technical institute or vocational school used 
                exclusively or principally for the provision of 
                vocational education to individuals who have completed 
                or left high school and who are available for study in 
                preparation for entering the labor market; or
                  (D) the department or division of a junior college, 
                community college or university operating under the 
                policies of the State board and which provides 
                vocational education in not less than 5 different 
                occupational fields leading to immediate employment but 
                not necessarily leading to a baccalaureate degree, if, 
                in the case of a school, department, or division 
                described in subparagraph (C) or this subparagraph, it 
                admits as regular students both individuals who have 
                completed high school and individuals who have left 
                high school.
          (4) At-risk youth.--The term ``at-risk youth'' means--
                  (A) an out-of-school, at-risk youth who is an 
                individual age 24 or younger and who is not enrolled in 
                a secondary or postsecondary education program, has not 
                received a high school diploma or equivalent and must 
                overcome barriers to employment such as economic 
                disadvantages, disability, or limited English 
                proficiency; or
                  (B) an in-school, at-risk youth who is an individual 
                age 24 or younger who is enrolled in an accredited 
                secondary or postsecondary education program but is at 
                risk of dropping out of school or must overcome 
                barriers to complete an education program, such as 
                economic disadvantages, disability, or limited English 
                proficiency.
          (5) Career exploration and guidance counseling.--The term 
        ``career exploration and guidance counseling'' means a 
        program--
                  (A) which pertains to the body of subject matter and 
                related techniques and methods organized for the 
                development in individuals of career awareness, career 
                planning, career decisionmaking, placement skills, and 
                knowledge and understanding of local, State, and 
                national occupational, educational, and labor market 
                needs, trends, and opportunities;
                  (B) which assists such individuals in making and 
                implementing informed educational and occupational 
                choices; and
                  (C) which is comprehensive in nature and provided 
                through an educational program beginning in as early a 
                grade as possible, including late elementary and middle 
                school grades.
          (6) Case management.--The term ``case management'' means the 
        provision of a client-centered approach in the delivery of 
        services designed to--
                  (A) prepare and coordinate comprehensive employment 
                plans, such as service strategies for participants, to 
                ensure access to necessary training and supportive 
                services, using, where feasible, computer-based 
                technologies; and
                  (B) provide job and career counseling during program 
                participation and after job placement.
          (7) Chief elected official.--The term ``chief elected 
        official'' means the chief elected executive officer of a unit 
        of general local government in a workforce development area.
          (8) Community-based organization.--The term ``community-based 
        organization'' means a private nonprofit organization that is 
        representative of a community or significant segments of a 
        community that provides education, vocational rehabilitation, 
        job training, supportive services, or internship services and 
        programs.
          (9) Demographic characteristics.--The term ``demographic 
        characteristics'' means information on population, especially 
        with reference to size, density, distribution, and vital 
        statistics including, age, race, sex, ethnic origin, and income 
        status.
          (10) Dislocated worker.--The term ``dislocated worker'' means 
        an individual who--
                  (A) has been terminated or laid off or who has 
                received a notice of termination or layoff from 
                employment, is eligible for or has exhausted 
                entitlement to unemployment compensation, and is 
                unlikely to return to a previous industry or 
                occupation;
                  (B) has been terminated, or has received a notice of 
                termination of employment, as a result of any permanent 
                closure of, or any substantial layoff at, a plant, 
                facility, or enterprise;
                  (C) has been unemployed long-term and has limited 
                opportunities for employment or reemployment in the 
                same or a similar occupation in the area in which such 
                individual resides, including an older individual who 
                may have substantial barriers to employment by reason 
                of age; or
                  (D) was self-employed (including farmers and 
                ranchers) but is unemployed as a result of general 
                economic conditions in the community in which they 
                reside or because of natural disasters.
          (11) Displaced homemaker.--The term ``displaced homemaker'' 
        means an individual who--
                  (A) is an adult; and
                  (B)(i) has worked as an adult primarily without 
                remuneration to care for the home and family, and for 
                that reason has diminished marketable skills;
                  (ii) has been dependent on public assistance or on 
                the income of a relative but is no longer supported by 
                such income;
                  (iii) is a parent whose youngest dependent child will 
                become ineligible to receive assistance under the 
                program for aid to families with dependent children 
                under part A of title IV of the Social Security Act 
                within 2 years of the parent's application for 
                assistance under title II of this Act; or
                  (iv) is unemployed or underemployed and is 
                experiencing difficulty in obtaining any employment or 
                suitable employment, as appropriate.
          (12) Earnings.--The term ``earnings'' means gross hourly 
        wages before any deduction, plus the estimated hourly value of 
        bonuses, tips, gratuities, commissions, and overtime pay either 
        expected or received. In the case of individuals in subsidized 
        employment, total hourly earnings include any wage subsidy paid 
        to the individual.
          (13) Economic development agencies.--The term ``economic 
        development agencies'' means State and local planning and 
        zoning commissions or boards, community development agencies, 
        and other State and local agencies and institutions responsible 
        for regulating, promoting, or assisting in State and local 
        economic development.
          (14) Economically disadvantaged.--The term ``economically 
        disadvantaged'' means an individual who--
                  (A) receives, or is a member of a family which 
                receives, cash welfare payments under a Federal, State, 
                or local welfare program;
                  (B) has, or is a member of a family which has, 
                received a total family income for the 6-month period 
                prior to application for the program involved 
                (exclusive of unemployment compensation, child support 
                payments, and welfare payments) which, in relation to 
                family size, was not in excess of the higher of--
                          (i) the official poverty line (as defined by 
                        the Office of Management and Budget, and 
                        revised annually in accordance with section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981 (42 U.S.C. 9902(2)), or
                          (ii) 70 percent of the lower living standard 
                        income level;
                  (C) is receiving (or has been determined within the 
                6-month period prior to the application for the program 
                involved to be eligible to receive) food stamps 
                pursuant to the Food Stamp Act of 1977;
                  (D) qualifies as a homeless individual under 
                subsections (a) and (c) of section 103 of the Stewart 
                B. McKinney Homeless Assistance Act;
                  (E) is a foster child on behalf of whom State or 
                local government payments are made;
                  (F) in cases permitted by regulations of the 
                Secretary, is an individual with a disability whose own 
                income meets the requirements of subparagraph (A) or 
                (B), but who is a member of a family whose income does 
                not meet such requirements; or
                  (G) is an individual meeting appropriate criteria 
                approved by a State.
          (15) Educational service agency.--The term ``educational 
        service agency'' means a regional public multiservice agency 
        authorized by State statute to develop, manage, and provide 
        services or programs to local education agencies, and is 
        recognized as an administrative agency for such State's 
        vocational or technical education schools or for vocational 
        programs within its public elementary or secondary schools. 
        Such term includes any other public institution or agency 
        having administrative control and direction over a public 
        elementary or secondary school.
          (16) Employed.--The term ``employed'' means an individual who 
        is currently--
                  (A) a paid employee;
                  (B) works in his or her own business, profession, or 
                farm;
                  (C) works 15 hours or more per week as an unpaid 
                worker in an enterprise operated by a family member; or 
                is one who is not working, but has a job or business 
                from which he or she is temporarily absent due to 
                illness, bad weather, vacation, labor-management 
                dispute, or personal reasons; or
                  (D) on active military duty.
          (17) English literacy program.--The term ``English literacy 
        program'' means a program of instruction designed to help 
        limited English proficient adults, out-of-school youths, or 
        both, achieve full competence in the English language.
          (18) Excess number.--The term ``excess number'' means, 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, or the number that represents the number of 
        unemployed individuals in excess of 4.5 percent of the civilian 
        labor force in areas of substantial unemployment in such State.
          (19) Governor.--The term ``Governor'' means the chief 
        executive of State.
          (20) Individual of limited english proficiency.--The term 
        ``individual of limited English proficiency'' means an adult or 
        out-of-school youth who has limited ability in speaking, 
        reading, writing, or understanding the English language and--
                  (A) whose native language is a language other than 
                English; or
                  (B) who lives in a family or community environment 
                where a language other than English is the dominant 
                language.
          (21) Individuals with disabilities.--The term ``individuals 
        with disabilities'' has the meaning given such term in the 
        Vocational Rehabilitation Act of 1973.
          (22) Institution of higher education.--The term ``institution 
        of higher education'' has the meaning given such term in 
        section 481 of the Higher Education Act of 1965.
          (23) Job search assistance.--The term ``job search 
        assistance'' means a service that helps a job-ready individual 
        seek, locate, apply for, and obtain employment. Such services 
        may include, but are not limited to, job-finding skills, 
        orientation to the labor market, resume preparation assistance, 
        job finding clubs, job search workshops, vocational 
        exploration, and other employability services.
          (24) Labor market area.--The term ``labor market area'' means 
        an economically integrated geographic area within which 
        individuals can reside and find employment within a reasonable 
        distance or can readily change employment without changing 
        their place of residence. Such areas shall be identified in 
        accordance with criteria used by the Bureau of Labor Statistics 
        of the Department of Labor in defining such areas or similar 
        criteria established by a Governor.
          (25) Library.--The term ``library'' includes--
                  (A) a public library;
                  (B) a public elementary or secondary school library;
                  (C) an academic library;
                  (D) a research library; and
                  (E) a private library, but only if the State in which 
                such private library is located determines that the 
                library should be considered a library for purposes of 
                this Act.
          (26) Literacy.--The term ``literacy'' means an individual's 
        ability to read, write, and speak in English, and compute and 
        solve problems, at levels of proficiency necessary--
                  (A) to function on the job, in the individual's 
                family and in society;
                  (B) to achieve the individual's goals; and
                  (C) to develop the individual's knowledge potential.
          (27) Local educational agency.--The term ``local educational 
        agency'' has the same meaning given such term in section 14101 
        of the Elementary and Secondary Education Act of 1965.
          (28) Native american.--The term ``native American'' means 
        Indians, Alaskan natives, and Hawaiian natives.
          (29) Nontraditional employment.--The term ``nontraditional 
        employment'' as applied to women refers to occupations or 
        fields of work where women comprise less than 25 percent of the 
        individuals employed in such occupation or field of work.
          (30) On-the-job training.--The term ``on-the-job training'' 
        means training in the public or private sector that is provided 
        to a paid employee while he or she is engaged in productive 
        work that--
                  (A) provides knowledge or skills essential to the 
                full and adequate performance of the job;
                  (B) provides reimbursement to employers, up to 50 
                percent of the participant's wage rate, for the costs 
                of providing training and additional supervision; and
                  (C) is based on the Occupational Employment 
                Statistics Program Dictionary.
          (31) Postsecondary educational institution.--The term 
        ``postsecondary educational institution'' means an institution 
        of higher education (as such term is defined in section 481 of 
        the Higher Education Act of 1965) which continues to meet the 
        eligibility and certification requirements under title IV of 
        such Act (20 U.S.C. 1070 et seq.).
          (32) Preemployment skills training; job readiness skills 
        training.--The terms ``preemployment skills training'' and 
        ``job readiness skills training'' mean training that helps 
        prepare individuals for work by assuring that they are familiar 
        with general workplace expectations and exhibit work behavior 
        and attitudes necessary to compete successfully in the job 
        market.
          (33) Public assistance.--The term ``public assistance'' means 
        Federal, State, or local government cash payments for which 
        eligibility is determined by a needs or income test.
          (34) Rapid response.--The term ``rapid response'' means 
        assistance that is directly provided by the State, or by local 
        grantees with funds provided by the State, in the case of mass 
        layoffs or plant closures, and that establishes on-site contact 
        with employer and employee representatives within a short 
        period of time (preferably 48 hours or less) after becoming 
        aware of a current or projected permanent closure or 
        substantial layoff in order to--
                  (A) provide information on, and facilitate access to, 
                available public programs and services for workers 
                losing jobs as a result of such layoff or closure;
                  (B) provide emergency assistance adapted to the 
                particular closure or layoff;
                  (C) promote the formation of labor-management 
                committees, where appropriate;
                  (D) collect information related to economic 
                dislocation and available resources within the State 
                for dislocated workers;
                  (E) provide or obtain appropriate financial and 
                technical advice and liaison with economic development 
                agencies and other organizations to assist in efforts 
                to avert worker dislocation; and
                  (F) assist the local community in developing its own 
                coordinated response and in obtaining access to State 
                economic development assistance.
          (35) Registered apprenticeship.--The term ``registered 
        apprenticeship'' means a program registered by the Bureau of 
        Apprenticeship and Training in the United States Department of 
        Labor, or a State Apprenticeship Agency recognized and approved 
        by the Bureau of Apprenticeship and Training as the appropriate 
        body for State registration or approval of local apprenticeship 
        programs and agreements.
          (36) School dropout.--The term ``school dropout'' means a 
        youth who is no longer attending any school and who has not 
        received a secondary school diploma or a certificate from a 
        program of equivalency for such a diploma.
          (37) Skill certificate.--The term ``skill certificate'' means 
        a portable, industry-recognized credential issued by programs 
        authorized under this Act, that certifies that an individual 
        has mastered skills at levels that are at least as challenging 
        as skill standards endorsed by the National Skill Standards 
        Board, except that until such skill standards are developed, 
        the term ``skill certificate'' means a credential issued under 
        a process determined by the State.
          (38) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, American Samoa, Guam, and the 
        Commonwealth of the Northern Mariana Islands.
          (39) State educational agency.--The term ``State educational 
        agency'' has the meaning given such term in section 14101 of 
        the Elementary and Secondary Education Act of 1965.
          (40) State library administrative agency.--The term ``State 
        library administrative agency'' means the official agency of a 
        State charged by the law of the State with the extension and 
        development of public library services throughout the State.
          (41) Supportive services.--The term ``supportive services'' 
        means services which are necessary to enable an individual 
        eligible for training under this Act, but who cannot afford to 
        pay for such services, to participate in a training or 
        vocational rehabilitation program or job search activities 
        funded under this Act. Such supportive services may include 
        transportation, individual and family counseling, child care 
        and dependent care, meals, temporary shelter, financial 
        counseling, needs-based payments, and other reasonable expenses 
        required for participation in a training, job preparation, or 
        job placement program. Such services may be provided in-kind or 
        through cash assistance, except that such services will be 
        provided with funds provided under this Act only after 
        alternative funding sources specifically designated for such 
        services have been exhausted.
          (42) Unemployed.--The term ``unemployed'' refers to an 
        individual who is not employed, who is available for work, and 
        who has made specific efforts to find a job within the prior 4 
        weeks. Included as unemployed are individuals who are not 
        working, are available for work, and are waiting to be called 
        back to a job from which they have been laid off.
          (43) Unit of general local government.--The term ``unit of 
        general local government'' means any general purpose political 
        subdivision of a State which has the power to levy taxes and 
        spend funds, as well as general corporate and police powers.
          (44) Veteran.--The term ``veteran'' has the meaning given 
        such term in section 101(2) of title 38, United States Code.
          (45) Work experience.--The term ``work experience'' means a 
        time-limited work activity that provides an individual with the 
        opportunity to acquire the general skills and knowledge 
        necessary to obtain employment.
          (46) Workplace mentor.--The term ``workplace mentor'' means 
        an employee or other individual, approved by the employer at a 
        workplace, who possesses the skills and knowledge to be 
        mastered by a student or program participant, and who 
        instructs, critiques the performance, and challenges the 
        student or program participant to perform well, and works in 
        consultation with classroom teachers, training providers, and 
        the employer of the student or program participant.
          (47) Youth.--The term ``youth'' means an individual under the 
        age of 24.

SEC. 6. TRANSITION.

  The Secretary of Education and the Secretary of Labor shall take such 
steps as they determine to be appropriate to provide for the orderly 
transition from any authority under provisions of statutes amended or 
repealed by this Act or any related authority under provisions of this 
Act.

             TITLE I--WORKFORCE DEVELOPMENT INFRASTRUCTURE

SEC. 101. PURPOSE OF TITLE.

  The purpose of this title is to provide for the establishment of an 
infrastructure within States on which to build a comprehensive system 
of workforce development and literacy.

              Subtitle A--State and Local Responsibilities

SEC. 102. STATE REQUIREMENTS.

  (a) In General.--For fiscal year 1997 and subsequent fiscal years, a 
State that desires to receive a grant under one or more of the programs 
specified in subsection (b) shall--
          (1) establish a collaborative process, pursuant to section 
        103;
          (2) develop a State workforce development and literacy plan, 
        pursuant to section 104; and
          (3) otherwise comply with the requirements of this Act.
  (b) Workforce Development and Literacy Programs.--
          (1) In general.--The programs referred to in subsection (a) 
        are the following:
                  (A) The program under title II, the Youth Development 
                and Career Preparation Consolidation Grant.
                  (B) The program under title III, the Adult Employment 
                and Training Consolidation Grant.
                  (C) The program under subtitle A of title IV, the 
                Adult Education and Family Literacy Consolidation 
                Grant.
                  (D) The program amended by subtitle A of title V 
                (relating to title I of the Rehabilitation Act of 
                1973).
          (2) Definition.--For purposes of this Act, the term 
        ``Workforce Development and Literacy programs'' means the 
        programs specified in paragraph (1).

SEC. 103. COLLABORATIVE PROCESS REGARDING STATE SYSTEM.

  (a) In General.--The Governor of a State that desires to receive a 
grant under one or more of the programs specified in section 102(b) 
shall certify to the Secretary of Education and the Secretary of Labor 
that a collaborative process, as described in subsection (b) or (c), 
has been used in complying with the applicable provisions of this Act.
  (b) Collaborative Process.--The collaborative process referred to in 
subsection (a) is a process for making decisions which includes as 
participants, at a minimum, the Governor and--
          (1) representatives of the following (which representatives 
        are appointed by the Governor)--
                  (A) business and industry;
                  (B) local chief elected officials (representing both 
                cities and counties);
                  (C) local educational agencies (including vocational 
                educators);
                  (D) postsecondary institutions (including community 
                and technical colleges);
                  (E) the State rehabilitation advisory council;
                  (F) organizations representing individuals served by 
                programs established under this Act (including 
                community-based organizations); and
                  (G) employees.
          (2) the lead State agency official or officials for--
                  (A) the State educational agency (including 
                representatives of vocational education, adult 
                education and literacy, and libraries);
                  (B) the State agency responsible for economic 
                development;
                  (C) the State agency responsible for employment; 
                security (and the State agency responsible for job 
                training where different from such agency);
                  (D) the State agency responsible for postsecondary 
                education;
                  (E) the State agency responsible for vocational 
                rehabilitation, and where applicable, the State agency 
                providing vocational rehabilitation services for the 
                blind;
                  (F) the State agency responsible for welfare; and
                  (G) the representative of the Veterans' Service 
                assigned to the State under section 4103 of title 38, 
                United States Code.
  (c) Rule of Construction.--With respect to compliance with subsection 
(b)--
          (1) a State may use any existing State process (including any 
        council or similar entity) that substantially meets the 
        purposes of such subsection; or
          (2) if prior to the date of enactment of this Act, a State 
        has developed a one-stop career center system or a school-to-
        work system through a collaborative process substantially 
        similar to the process described in subsection (b), the State 
        may use such process.

SEC. 104. CONSOLIDATED STATE WORKFORCE DEVELOPMENT AND LITERACY PLAN.

  (a) In General.--The Governor of a State that desires to receive a 
grant under one or more of the programs specified in section 102(b) 
shall submit a strategic State workforce development and literacy plan 
to provide policy guidance with respect to workforce development 
programs operated in the State, and that meets the requirements of this 
section to--
          (1) the Secretary of Education; and
          (2) the Secretary of Labor.
  (b) Contents.--A State workforce development and literacy plan shall 
include the following:
          (1) A description of the collaborative process under section 
        103 used in developing the plan.
          (2) A statement of the goals of the State workforce 
        development and literacy system, that includes--
                  (A) a description of how the State will progress 
                toward achieving the goals and purpose of this Act as 
                established in sections 3(a)(5) and 3(b);
                  (B) an assessment of the needs of the State with 
                regard to current and projected demands for workers by 
                occupation, the skills and education levels of the 
                workforce, the vocational rehabilitation needs of 
                individuals with severe disabilities residing in the 
                State, the skill and economic development needs of the 
                State, and an assessment of the type and availability 
                of workforce development, adult education, vocational 
                rehabilitation, and literacy programs in the State;
                  (C) the identification of progress indicators, based 
                on the performance measures described in titles II and 
                III, subtitle A of title IV, and title I of the 
                Vocational Rehabilitation Act of 1973, and a model of 
                continuous improvement, that the State will use to 
                measure progress made by the State, local workforce 
                development boards, and other applicable local entities 
                who are recipients of financial assistance under this 
                Act in meeting such goals; and
                  (D) a description of how performance measures are 
                consistent across the 4 grant programs established in 
                titles II and III, subtitle A of title IV, and title I 
                of the Vocational Rehabilitation Act of 1973.
          (3) A description of how the State has complied, or will 
        comply, with the provisions of sections 105 through 108.
          (4) A description of how a State will participate in the 
        National Labor Market Information system pursuant to subtitle 
        B.
          (5) Any information required to be included in the plan under 
        any of titles II through IV, and title I of the Vocational 
        Rehabilitation Act of 1973, (in the case of a State that 
        desires to receive a grant under any such title).
          (6) A description of the measures that will be taken by the 
        State to ensure coordination and consistency and avoid 
        duplication among programs receiving assistance under this Act, 
        including a description of common data collection and reporting 
        processes (including the establishment of a common management 
        information system) across such programs.
          (7) A description of the process used by the State to provide 
        an opportunity for public comment, and input into the 
        development of the plan, prior to submission of the plan.
          (8) A description of the process used by the State to consult 
        with representatives of business and industry with respect to 
        the requirements of subparagraphs (A), (B), and (C) of 
        paragraph (2) of this subsection.
          (9) Assurances that the State will provide for fiscal control 
        and fund accounting procedures that may be necessary to ensure 
        the proper disbursement of, and accounting for, funds paid to 
        the State under this Act.
          (10) A description of the sanctions which the State may 
        impose (including restrictions from future participation or 
        consideration for funding) in instances where recipients of 
        funds under this Act fail to achieve agreed upon performance 
        measures, fail to adhere to State mandated fiscal control and 
        funds accounting procedures, or take or fail to take other 
        actions required under the State plan, contracts, or other 
        agreements.
  (c) Authority of Governor.--
          (1) Final authority.--If, after a reasonable effort, a 
        Governor is unable to obtain agreement through the 
        collaborative process described in subsection (b)(1), the 
        Governor shall have final authority to make decisions and 
        submit a plan for the design of a comprehensive system of 
        workforce development and literacy for the State under 
        subsection (a).
          (2) Disagreement.--The Governor shall accept and include with 
        the plan submitted under paragraph (1) any disagreeing views 
        submitted by a participant of the collaborative process if such 
        views represent disagreement in the area in which such 
        participant was selected for representation.
          (3) Exception.--Nothing in this Act shall be construed to 
        negate or supersede the legal authority, under State law or 
        other applicable law, of any State agency, State entity, or 
        State public official over programs that are under the 
        jurisdiction of the agency, entity, or official. Nothing in 
        this Act shall be construed to interfere with the authority of 
        such agency, entity, or official to enter into a contract under 
        any provision of law.
  (d) Modifications to Plan.--A plan submitted by a State in accordance 
with this section remains in effect until the State submits to the 
Secretary such modifications as the State determines necessary. This 
section applies to the modifications to the same extent and in the same 
manner as this section applies to the original plan.
  (e) Allocation of Responsibilities of Secretaries.--The Secretary of 
Education and the Secretary of Labor shall collaborate in establishing 
and using a common procedure in making determinations regarding 
compliance by the States with the requirements established in this 
title.

SEC. 105. ESTABLISHMENT OF WORKFORCE DEVELOPMENT AREAS.

  The Governor of a State that desires to receive a grant under one or 
more of the programs specified in section 102(b) shall, through the 
collaborative process established under section 103 and after 
consultation with local chief elected officials, and after 
consideration of comments received through the public participation 
process as described in the State plan, designate local workforce 
development areas within the State. Such areas shall be designated 
taking into consideration the following:
          (1) Existing labor market areas.
          (2) Units of general local government.
          (3) Geographic areas served by local educational agencies and 
        intermediate educational agencies.
          (4) Geographic areas served by postsecondary institutions and 
        area vocational education schools.
          (5) Service delivery areas established under section 101 of 
        the Job Training Partnership Act (29 U.S.C. 1511) (as such Act 
        was in effect on the day before the date of the enactment of 
        this Act).
          (6) The distance that individuals will need to travel to 
        receive services from one-stop career centers.

SEC. 106. PROVISIONS REGARDING LOCAL WORKFORCE DEVELOPMENT BOARDS.

  (a) In General.--The Governor of a State that desires to receive a 
grant under one or more of the programs specified in section 102(b) 
shall ensure the establishment of a local workforce development board 
in each local workforce development area within the State.
  (b) State Criteria.--The Governor, through the collaborative process 
described under section 103, shall establish criteria for use by local 
chief elected officials in the workforce development area, in the 
selection of members of local workforce development boards, in 
accordance with requirements prescribed under subsections (c) and (d).
  (c) Representation Requirement.--Such criteria shall require, at a 
minimum, that a local workforce development board consist of--
          (1) a majority of members who are representatives of business 
        and industry, including individuals who are owners of 
        businesses, chief executives or chief operating officers of 
        private business, and other business executives with optimum 
        policymaking authority in local businesses, selected from among 
        nominees submitted by local business organizations and trade 
        associations;
          (2) an individual or individuals with disabilities, who have 
        special knowledge or expertise in the area of vocational 
        rehabilitation;
          (3) representatives of education, including local educational 
        agencies and postsecondary institutions, selected from among 
        individuals nominated by regional or local educational 
        agencies, vocational education institutions, institutions of 
        postsecondary institutions (including community colleges), or 
        general organizations of such institutions within the workforce 
        development area; and
          (4) representatives of community-based organizations, 
        employees, and veterans as nominated or recommended to the 
        board through a process established by the Governors through 
        the collaborative process.
  (d) Establishment of Board.--
          (1) Selection of board members.--
                  (A) Single unit of local government in area.--In the 
                case of a workforce development area that is comprised 
                of only one unit of general local government, the chief 
                elected official of such unit shall select the members 
                of the local workforce development board for such area, 
                in accordance with the State criteria developed 
                pursuant to subsection (b).
                  (B) Multiple units in area.--In the case of a 
                workforce development area that is comprised of more 
                than one unit of general local government, the chief 
                elected official of such units shall select the members 
                of the local workforce development board from the 
                individuals so nominated or recommended for such area 
                in accordance with an agreement entered into by such 
                officials and with the State criteria developed under 
                subsection (b). In the absence of such an agreement, 
                the appointments shall be made by the Governor, through 
                the collaborative process, from the individuals so 
                nominated or recommended.
          (2) Certification.--The Governor shall biennially certify one 
        local workforce development board for each workforce 
        development area.
          (3) Exception.--In any case in which a local workforce 
        development area is a State, the individuals comprising the 
        Governor's collaborative process as described in section 103, 
        may be reconstituted to meet the requirements of this section.
  (e) Duties of Local Workforce Development Board.--
          (1) Local workforce development plan.--Each local workforce 
        development board shall develop a biennial strategic plan and 
        provide policy guidance with respect to workforce development 
        programs operated within their respective workforce development 
        areas. Such strategic plan shall be consistent with the State's 
        collaborative workforce development and literacy plan, shall be 
        approved by the appropriate chief elected official or 
        officials, and shall be submitted to the Governor for approval. 
        If after a reasonable effort, a local workforce development 
        board is unable to obtain the approval of the chief elected 
        official or officials, the Board has the authority to forward 
        the plan, with the comments of the chief elected official or 
        officials, to the Governor for final approval or disapproval. 
        Such local plan shall include the following:
                  (A) Both short-term and long-term goals, and related 
                strategies, to ensure that workforce preparation and 
                development programs, including programs established 
                pursuant to this Act, title I of the Rehabilitation Act 
                of 1973, and the Wagner-Peyser Act, contribute to a 
                coherent workforce development system in the workforce 
                development area.
                  (B) A description of the performance measures to be 
                used by the local workforce development board for 
                measuring the performance of local service providers 
                under chapter 2 of title II, title III, and title I of 
                the Rehabilitation Act of 1973, and the performance of 
                one-stop career center operators, with whom the Board 
                contracts.
                  (C) A description of the local one-stop career center 
                system to be established in the workforce development 
                area, including--
                          (i) a description of the process the local 
                        workforce development board will use to 
                        designate or establish career center system 
                        which ensures that the most effective and 
                        efficient service providers are chosen;
                          (ii) an identification of the roles of 
                        individual workforce development programs, 
                        including programs authorized by the Wagner-
                        Peyser Act; and
                          (iii) a description of the funding sources to 
                        be used in the operation of the career center 
                        system.
                  (D) A description of strategies the local workforce 
                development board will undertake to fully involve local 
                employers, local educational agencies, postsecondary 
                education institutions, adult education and literacy 
                providers, local service providers, and other 
                consumers, including individuals with disabilities, in 
                the development of the workforce development system.
                  (E) Such other information as requested by the State.
          (2) Identification of occupations in demand and training 
        needs.--The local workforce development board shall use 
        available labor market information and other appropriate 
        methods in order to identify and assess the needs of the 
        workforce development area with regard to--
                  (A) current and projected demand for workers by 
                occupation;
                  (B) skill levels, including literacy and basic 
                skills, of the local workforce and the needs of 
                business and industry for a skilled workforce;
                  (C) economic development needs of the area;
                  (D) the type and availability of workforce 
                preparation and development programs in the area; and
                  (E) the needs for vocational rehabilitation among 
                individuals with disabilities.
        Such information shall be used to develop the goals of, and 
        activities provided by the workforce development programs in 
        the local area.
          (3) Budget and program oversight.--
                  (A) Budgeting.--
                          (i) The local workforce development board, 
                        working through the State administrative agent, 
                        shall develop a budget for the purpose of 
                        carrying out local programs established under 
                        chapter 2 of title II, title III, and title I 
                        of the Rehabilitation Act of 1973, and for one-
                        stop career center systems established or 
                        designated under section 107.
                          (ii) Such budget shall be subject to the 
                        approval of the appropriate chief elected 
                        official or officials in the workforce 
                        development area.
                  (B) Program oversight.--The local workforce 
                development board, in partnership with the chief 
                elected official or officials in the workforce 
                development area, shall conduct oversight of the 
                workforce development programs listed in subparagraph 
                (A), and of one-stop career centers established under 
                this title.
          (4) Administration.--
                  (A) Fiscal agent.--
                          (i) The local workforce development board may 
                        receive and disburse funds made available for 
                        carrying out programs authorized under chapter 
                        2 of title II, title III, and title I of the 
                        Rehabilitation Act of 1973 of this Act, or the 
                        local workforce development board may designate 
                        a fiscal agent (which may include the State 
                        through a mutual agreement between the local 
                        board and the State), for the purpose of 
                        disbursement of funds to one-stop centers and 
                        other service providers, as designated by the 
                        local workforce development board.
                          (ii) The Board may employ its own staff, 
                        independent of local programs and service 
                        providers, and may solicit or accept grants and 
                        contributions from sources other than from this 
                        Act.
                  (B) Limitation.--The workforce development board, or 
                employees of such board, may not operate programs 
                established under this Act.
                  (C) Conflict of interest.--A member of a workforce 
                development board may not--
                          (i) discuss or participate in board 
                        consideration; or
                          (ii) cast a vote;
                regarding the provision of services by such member (or 
                by an organization that such member represents) or 
                regarding any matter that would provide direct 
                financial benefit to such member.
                The Governor may enforce more rigorous conflict of 
                interest standards, as determined appropriate.
                  (D) Independent authority.--
                          (i) The Board shall elect its own chairperson 
                        from among the members of the board.
                          (ii) The board may adopt bylaws and other 
                        operating procedures as consistent with the 
                        purposes of this Act, and with the policies 
                        established in the State workforce development 
                        and literacy plan.
          (5) Other.--Each local workforce development board shall 
        carry out such other duties as determined to be appropriate by 
        the Governor and the individuals and entities described in 
        section 103, through the collaborative process described in the 
        State plan.

SEC. 107. ESTABLISHMENT OF ONE-STOP CAREER CENTER SYSTEMS.

  (a) In General.--The Governor of a State that desires to receive a 
grant under one or more of the programs specified in section 102(b) 
shall ensure that each local workforce development board shall 
establish or designate a one-stop career center system in the workforce 
development area of such board, consistent with criteria established 
under subsection (b).
  (b) State Criteria.--The Governor, through the collaborative process 
described under section 103, shall establish statewide criteria for use 
by local workforce development boards in the designation or 
establishment of one-stop career center systems to ensure that the most 
effective and efficient service providers are chosen. Such criteria 
shall be consistent with the requirements prescribed under subsection 
(c).
  (c) One-Stop Career Center System Requirements.--At a minimum, one-
stop career center systems shall include--
          (1) common intake;
          (2) preliminary assessment;
          (3) integrated job search assistance;
          (4) to the extent practicable, as determined by the Governor, 
        unified and linked computer systems, including the availability 
        of labor market information as described under subtitle B, and 
        linkages through uniform management information systems; and
          (5) to the extent practicable, as determined by the Governor, 
        at least one physical, co-located site which provides 
        comprehensive and fully integrated workforce development 
        services to any individual seeking such services.
Local workforce development areas are encouraged to establish a network 
of comprehensive and fully-integrated co-located one-stop career 
centers to provide the services described in subsection (f), 
supplemented with multiple affiliated sites or satellites that provide 
one or more of such services and are linked through electronic and 
technological access points. Such affiliated sites may include entities 
designated as having a specialization in addressing special needs, such 
as the needs of individuals with disabilities.
  (d) Common Access.--Information pertaining to the labor market which 
is compiled pursuant to the Wagner-Peyser Act, as described in subtitle 
B of this title, shall be available, to the extent practicable, through 
integrated electronic networks, at all one-stop career centers and 
affiliated sites.
  (e) Eligibility for Designation.--Any entity or consortium of 
entities located in the workforce development area may be designated by 
the local workforce development board to operate a one-stop career 
center or to participate in a one-stop career center system. Such 
entities may include the following:
          (1) Institutions of higher education.
          (2) Local educational agencies.
          (3) Area vocational education schools.
          (4) Local employment service offices, established under the 
        Wagner-Peyser Act.
          (5) Private nonprofit organizations, (including community-
        based organizations).
          (6) Private for-profit entities.
          (7) Agencies of local governments.
          (8) Other interested organizations and entities of 
        demonstrated effectiveness, including local chambers of 
        commerce and other business organizations, consistent with 
        State criteria established pursuant to subsection (b).
  (f) Duties.--Each one-stop career center shall carry out the 
following duties:
          (1) Provision of core services.--A center shall make 
        available the following information and core services to 
        individuals on a universal and nondiscriminatory basis, with 
        reasonable accommodations to address the needs of individuals 
        with disabilities, in the workforce development area in which 
        such center is located:
                  (A) Outreach and intake for services provided under 
                chapter 2 of title II, title III, subtitle A of title 
                IV, and title I of the Rehabilitation Act of 1973.
                  (B) A preliminary assessment of the skill levels and 
                the need for services of the individual for programs 
                under chapter 2 of title II, title III, subtitle A of 
                title IV, and title I of the Rehabilitation Act of 1973 
                of individuals, which may include such factors as basic 
                skills, occupational skills, career development skills, 
                prior work experience, employability, interests, 
                aptitudes, vocational rehabilitation needs, and 
                supportive service needs.
                  (C) Information relating to local and State, and if 
                appropriate, to regional or national, occupations in 
                demand and skill requirements for such occupations.
                  (D) Information relating to youth services, including 
                information on at-risk youth workforce development 
                programs authorized under title II, on school-to-work 
                opportunities, and on youth apprenticeship 
                opportunities.
                  (E) Career counseling and career planning based on a 
                preliminary assessment of the individual.
                  (F) Job search assistance.
                  (G) Information related to vocational rehabilitation 
                services, as provided for in title I of the 
                Rehabilitation Act of 1973.
                  (H) Information relating to federally funded 
                education and job training programs (including 
                registered apprenticeships), and student aid programs, 
                including the eligibility requirements of and services 
                provided by such programs.
                  (I) Information on, and assistance in accessing 
                referral to additional services through programs 
                providing adult education and literacy services, 
                vocational rehabilitation, workforce preparation and 
                development, and supportive services, including those 
                programs authorized in titles II through IV, title I of 
                the Vocational Rehabilitation Act of 1973, available in 
                the workforce development area.
                  (J) Information on the extent to which the services 
                provided under titles II and III, subtitle A of title 
                IV, and title I of the Vocational Rehabilitation Act of 
                1973, meet or exceed the performance standards 
                described in the State plan, and the performance-based 
                information provided by the State to local workforce 
                development boards on certified providers of education 
                and training, as required under section 108(d)(3).
                  (K) Information on industry-recognized skill 
                standards and assessments.
                  (L) Job listings for local labor market 
                opportunities.
                  (M) Acceptance of applications for unemployment 
                compensation.
                  (N) Other appropriate activities to assist 
                individuals into employment.
          (2) Distribution of vouchers and skill grants.--A center 
        shall serve as the point of distribution of vouchers for 
        education, training, and vocational rehabilitation services to 
        eligible individuals in accordance with section 108.
          (3) Special arrangements.--For the purpose of providing core 
        services to individuals with severe disabilities in the most 
        effective and efficient manner possible, the one-stop career 
        center may arrange to have such core services provided to an 
        individual by a certified provider, either on a contract basis 
        or through the use of vouchers.
  (g) Additional Services.--One-stop career centers may provide 
customized workforce development services to employers on a fee-for-
service basis, as determined by the local workforce development board.
  (h) Alternative State Procedure.--Through the collaborative process 
described in section 103, the Governor has the authority to develop 
alternative procedures to the one-stop career center system, which are 
designed to accomplish the full integration of workforce development 
programs. These alternative procedures shall be described in a proposal 
to the Secretaries of Education and Labor for joint review and approval 
or disapproval within 60 days.

SEC. 108. CERTIFICATION OF EDUCATION, TRAINING, AND VOCATIONAL 
                    REHABILITATION SERVICE PROVIDERS.

  (a) Eligibility Requirements.--A program offered by a provider of 
education and training services shall be eligible to receive funds 
under title III, and title I of the Vocational Rehabilitation Act of 
1973 through the receipt of vouchers, skill grants, or through 
contract, if such program and provider--
          (1) are either--
                  (A) eligible to participate in title IV of the Higher 
                Education Act of 1965, or
                  (B) determined to be eligible under the procedures 
                described in subsection (b); and
          (2) provides the performance-based information required 
        pursuant to subsection (c), except that providers eligible 
        under subparagraph (A) only have to provide information for 
        programs other than programs leading to a degree.
  (b) Alternative Eligibility Procedure.--(1) The Governor shall 
establish an alternative eligibility procedure for providers of 
education, training, and vocational rehabilitation services in any 
State desiring to receive funds under title III of this Act and title I 
of the Vocational Rehabilitation Act of 1973, but that are not eligible 
to participate in title IV of the Higher Education Act of 1965. Such 
procedure shall establish minimum acceptable levels of performance for 
such providers, and shall be based on guidelines developed by the 
Secretaries of Labor and Education. The Governor shall utilize the 
local workforce development boards, for the identification and 
certification of qualified providers of education, training, and 
vocational rehabilitation services. During a transition period, not to 
exceed 2 years, certification of programs and providers under this 
subsection shall be based on the performance of such programs and 
providers under the Job Training Partnership Act, the Vocational 
Rehabilitation Act, or other objective measures of previous 
performance, such as employer evaluations.
  (2) Notwithstanding paragraph (1), if the participation of an 
institution of higher education in any of the programs under such title 
of such Act is terminated, such institution shall not be eligible to 
receive funds under this Act for a period of two years.
  (c) Performance-Based Information.--The State shall identify 
performance-based information that is to be submitted by providers of 
services for programs to be eligible under this section. Such 
information may include information, consistent with guidelines 
developed by the Secretaries of Education and Labor, relating to--
          (1) the percentage of students completing the programs 
        conducted by the provider;
          (2) the rates of licensure of graduates of the programs 
        conducted by the provider;
          (3) the percentage of graduates of the programs meeting skill 
        standards and certification requirements endorsed by the 
        National Skill Standards Board established under the Goals 
        2000: Educate America Act;
          (4) the rates of placement and retention in employment, and 
        earnings of the graduates of the programs conducted by the 
        provider;
          (5) the percentage of students who obtained employment in an 
        occupation related to the program conducted by the provider;
          (6) the warranties or guarantees provided by such provider 
        relating to the skill levels or employment to be attained by 
        students; and
          (7) other information for providers of services under title I 
        of the Rehabilitation Act of 1973 that reflects the priority of 
        serving individuals with severe disabilities.
  (d) Administration.--
          (1) State agency.--The Governor shall designate a State 
        agency to collect, verify, and disseminate the performance-
        based information submitted pursuant to subsection (c).
          (2) Application.--A provider of education and training 
        services that desires to be eligible to receive funds under 
        this title shall submit the information required under 
        subsection (c) to the State agency designated under paragraph 
        (1) at such time and in such form as such State agency may 
        require.
          (3) List of eligible providers.--The State agency shall 
        compile a list of eligible programs and providers, accompanied 
        by the performance-based information submitted, and disseminate 
        such list and information to the local workforce development 
        boards within the State.
          (4) Accuracy of information.--
                  (A) In general.--If the State agency determines that 
                information concerning a provider is inaccurate, such 
                provider shall be disqualified from receiving funds 
                under this title for a period of not less than two 
                years, unless such provider can demonstrate to the 
                satisfaction of the Governor or his or her designee, 
                that the information was provided in good faith.
                  (B) Appeal.--The Governor shall establish a procedure 
                for a service provider to appeal a determination by a 
                State agency that results in a disqualification under 
                subparagraph (A). Such procedure shall provide an 
                opportunity for a hearing and prescribe appropriate 
                time limits to ensure prompt resolution of the appeal.
          (5) Assistance in developing information.--The State agency 
        established pursuant to paragraph (1) may provide technical 
        assistance to education, training, and vocational 
        rehabilitation providers in developing the information required 
        under subsection (b). Such assistance may include facilitating 
        the utilization of State administrative records, such as 
        unemployment compensation wage records, and other appropriate 
        coordination activities.
  (e) On-The-Job Training Exception.--
          (1) In general.--Providers of on-the-job training shall not 
        be subject to the requirements of subsections (a), (b), (c), 
        and (d).
          (2) Collection and dissemination of information.--The 
        Workforce Development Board shall collect such performance-
        based information from on-the-job training providers as the 
        Governor may require, and shall disseminate such information to 
        the one-stop career centers.

SEC. 109. MANAGEMENT INFORMATION SYSTEMS.

  (a) In General.--Each State shall use a portion of the funds it 
receives under this Act to design a unified management information 
system that is in accordance with guidelines established jointly by the 
Secretaries in consultation with the Governors.
  (b) Requirements.--Each unified management information system shall, 
to the extent practicable as determined by the Governor--
          (1) be utilized for federally required fiscal reporting and 
        monitoring for each of the programs authorized under this Act;
          (2) be used by all agencies involved in workforce development 
        activities, including one-stop career centers which shall have 
        the capability to track the overall public investments within 
        the State and workforce development areas, and to inform 
        policymakers as to the results being achieved and the 
        demographic characteristics of the individuals served through 
        that investment;
          (3) contain a common structure of financial reporting 
        requirements, fiscal systems and monitoring for all workforce 
        development expenditures included in the workforce development 
        system that shall utilize common data elements and the 
        definitions included in section 5;
          (4) support local efforts to establish workforce development 
        systems, including intake and eligibility determination for all 
        services;
          (5) contain data on the demographic characteristics on the 
        individual participants served by programs authorized under 
        this Act, which shall be collected, produced, and published by 
        the Secretaries; and
          (6) be in accordance with guidelines established jointly by 
        the Secretaries in consultation with the States.

SEC. 110. PERFORMANCE ACCOUNTABILITY SYSTEM.

  (a) In General.--In order to promote high levels of performance and 
to ensure an appropriate return on the Nation's investment in the 
workforce development and literacy system, each State receiving funds 
under this Act shall develop, or have developed, a statewide 
performance accountability system in accordance with the provisions of 
this section.
  (b) Indicators of Performance.--
          (1) In general.--Each State receiving funds under this Act 
        shall identify indicators of performance for each of the 
        programs established under titles II through IV of this Act and 
        title I of the Vocational Rehabilitation Act of 1973, 
        consistent with State goals as described in the State plan in 
        accordance with section 104. Such indicators shall at a minimum 
        include core indicators described in such titles. Such 
        indicators may also take into account post-program surveys 
        measuring customer satisfaction of both employers and program 
        participants.
          (2) Technical definitions of core indicators.--In order to 
        ensure nationwide comparability of performance data, the 
        Secretary of Labor and the Secretary of Education, in 
        collaboration with the States and with representatives of 
        business and industry, employees, educational agencies, service 
        providers, participants, and other interested parties, shall 
        promulgate technical definitions of each of the core indicators 
        described in titles II through IV of this Act and in title I of 
        the Vocational Rehabilitation Act. Such definitions shall be 
        used under this Act in measuring performance.
  (c) Expected Levels of Performance.--
          (1) In general.--(A) Each State shall identify the level of 
        performance, consistent with State goals described under 
        section 104, that is expected for local workforce development 
        areas and other applicable local administrative entities under 
        this Act. In determining such levels, the State shall take into 
        account the world class levels identified under paragraph (2), 
        and shall initially develop baseline levels of performance upon 
        which States will measure continuous improvement.
          (B) The Governor, through the collaborative process, may 
        adjust the expected level of performance with respect to each 
        local area taking into account specific economic, demographic, 
        and geographic factors, and the characteristics of the 
        population to be served.
          (2) World class levels of performance.--In order to encourage 
        high levels of performance and advance the Nation's 
        competitiveness in the global economy, the Secretary of Labor 
        and the Secretary of Education, in collaboration with the 
        States and with representatives of business and industry, 
        employees, educational agencies, service providers, 
        participants, and other interested parties, shall identify 
        world class levels of performance with respect to appropriate 
        core indicators selected from among the core indicators 
        described in titles II through IV and in title I of the 
        Vocational Rehabilitation Act of 1973. Where applicable, such 
        world class standards shall reflect industry-recognized skill 
        standards and the National Education Goals.
  (d) Report on Performance.--
          (1) In general.--The State shall report to the Secretary of 
        Labor and the Secretary of Education, the levels of performance 
        achieved by local workforce development areas and other 
        applicable local administrative entities with respect to the 
        indicators identified pursuant to subsection (b)(1) for each 
        program year. The Secretaries shall make such information 
        available to the general public through publication and other 
        appropriate methods, and shall disseminate State-by-State 
        comparisons, and comparisons with other industrialized nations 
        (where appropriate).
          (2) Reporting options.--In the collection and reporting of 
        such data, States are encouraged to utilize administrative 
        reporting data on quarterly earnings, establishment and 
        industry affiliation, and geographic location of employment, 
        such as unemployment insurance wage-data records.
  (e) Consequences for Poor Performance.--
          (1) Criteria.--The Governor, through the collaborative 
        process, shall establish criteria for determining whether local 
        workforce development areas and other applicable local 
        administrative entities have failed to meet expected levels of 
        performance with respect to programs under this Act.
          (2) Consequences for poor performance.--
                  (A) State consequences.--If a State fails to meet 
                expected levels of performance for a program for any 
                program year as established pursuant to subsection (a), 
                the Secretary of Education or the Secretary of Labor, 
                as appropriate to the particular program, may provide 
                technical assistance, including assistance in the 
                development of a performance improvement plan. If such 
                failure continues for a second consecutive year, the 
                appropriate Secretary may reduce by not more than 5 
                percent, the amount of the grant that would (in the 
                absence of this paragraph) be payable to the State 
                under such program for the immediately succeeding 
                program year. Such penalty shall be based on the degree 
                of failure to meet expected levels of performance.
                  (B) Local consequences.--(i) If a local workforce 
                development area, or other applicable local 
                administrative entity, fails to meet expected levels of 
                performance for a program for any program year under 
                the criteria established in paragraph (1), the 
                Governor, through the collaborative process, may 
                provide technical assistance, including the development 
                of a performance improvement plan.
                  (ii) If such failure continues for a second 
                consecutive year, the Governor may take corrective 
                actions, such as the withholding of funds, the 
                redesignation of a local administrative entity, or such 
                other actions as the Governor, through the 
                collaborative process, determines are appropriate, 
                consistent with State law, section 104(c)(3) of this 
                Act, and the requirements of this Act.

              Subtitle B--Amendments to Wagner-Peyser Act

SEC. 131. GENERAL PROGRAM REQUIREMENTS.

  (a) Definitions.--Section 2 of the Act of June 6, 1933 (commonly 
known as the ``Wagner-Peyser Act'') (29 U.S.C. 49a) is amended--
          (1) in paragraph (1), by striking ``Job Training Partnership 
        Act'' and inserting ``Consolidated and Reformed Education, 
        Employment, and Rehabilitation Systems Act'';
          (2) in paragraph (2) to read as follows:
          ``(2) the term `local workforce development board' means a 
        local workforce development board established under title I of 
        the Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act;'';
          (3) in paragraph (4) to read as follows:
          ``(4) the term `local workforce development area' means a 
        local workforce development area established under title I of 
        the Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act;'';
          (4) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
          (5) by adding at the end the following new paragraphs:
          ``(6) the term `local public service office' means an office 
        which provides employment services to the general public under 
        a one-stop career center system; and
          ``(7) the term `one-stop career center system' means a one-
        stop career center system established under title I of the 
        Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act.''.
  (b) Duties.--Section 3(a) of such Act (29 U.S.C. 49b(a)) is amended 
to read as follows:
  ``(a) The Secretary of Labor shall, pursuant to title II of the 
Wagner-Peyser Act--
          ``(1) assist in the coordination and development of a 
        nationwide system of labor exchange services for the general 
        public, provided through the one-stop career center system, in 
        coordination with the public employment services;
          ``(2) assist in the development of performance standards, 
        benchmarks, and continuous improvement models for such 
        nationwide system which ensures private sector satisfaction and 
        meets the demands of jobseekers; and
          ``(3) ensure the continued services for individuals receiving 
        unemployment compensation.''.
  (c) Requirements for Receipt of Funds.--Section 4 of such Act (29 
U.S.C. 49c) is amended by striking ``a State shall, through its 
legislature'' and inserting ``the Governor of a State, through the 
collaborative process described in title I of the Consolidated and 
Reformed Education, Employment, and Rehabilitation Systems Act''.
  (d) Authorization of Appropriations.--Section 5 of such Act (29 
U.S.C. 49d) is amended by inserting before the period at the end the 
following: ``, of which not less than 25 percent shall be for carrying 
out both section 14 and title II of this Act''.
  (e) Use of Funds Under This Act.--Section 7(c)(2) of such Act (29 
U.S.C. 49f(c)(2)) is amended by striking ``any of the following 
provisions of law'' and all that follows and inserting ``the 
Consolidated and Reformed Education, Employment, and Rehabilitation 
Systems Act.''.
  (f) State Plan.--Section 8 of such Act (29 U.S.C. 49g) is amended--
          (1) in subsection (a) to read as follows:
  ``(a) Any State desiring to receive assistance under this Act shall 
submit to the Secretary, as part of the State workforce development and 
literacy plan authorized under title I of the Consolidated and Reformed 
Education, Employment, and Rehabilitation Systems Act, detailed plans 
for carrying out the provisions of this Act within such State.'';
          (2) by striking subsections (b), (c), and (e); and
          (3) by redesignating subsection (d) as subsection (b).
  (g) Elimination of Federal Advisory Council.--Section 11 of such Act 
(29 U.S.C. 49j) is hereby repealed.
  (h) Conforming Amendments.--
          (1) After section 2 of such Act insert the following new 
        heading:

               ``TITLE I--GENERAL PROGRAM REQUIREMENTS''

          (2) Section 4 of such Act is amended by striking ``United 
        States Employment Service'' and inserting ``Secretary of 
        Labor''.
          (3) Section 7(b)(2) of such Act is amended by striking 
        ``private industry council'' and inserting ``local workforce 
        development board''.
          (4) Section 7(d) of such Act is amended--
                  (A) by striking ``United States Employment Service'' 
                and inserting ``Secretary of Labor''; and
                  (B) by striking ``Job Training Partnership Act'' and 
                inserting ``Consolidated and Reformed Education, 
                Employment, and Rehabilitation Systems Act''.
          (5) Section 12 of such Act is amended by striking ``The 
        Director, with the approval of the Secretary of Labor,'' and 
        inserting ``The Secretary of Labor''.

SEC. 132. LABOR MARKET INFORMATION.

  The Act of June 6, 1933 (commonly known as the ``Wagner-Peyser Act''; 
29 U.S.C. 49), as amended by section 131, is further amended by adding 
at the end the following new title:
                  ``TITLE II--LABOR MARKET INFORMATION

``SEC. 21. PURPOSE.

  ``The purpose of this title is to ensure a comprehensive and 
coordinated system of labor market information which will provide 
locally based, accurate, up-to-date, easily accessible, and user 
friendly labor market information through a cooperative Federal, State, 
and local governance structure which includes partnerships with the 
private sector at all levels.

``SEC. 22. SYSTEM CONTENT.

  ``The Secretary of Labor, in accordance with the provisions of this 
title, shall oversee the development, maintenance, and continuous 
improvement of a nationwide system of labor market information using 
data from all available and appropriate sources, which shall include--
          ``(1) statistical data from survey and projection programs 
        and data from administrative reporting systems, which, taken 
        together, shall enumerate, estimate, and project the supply and 
        demand for labor at national, State, and local levels in a 
        timely manner, including data on--
                  ``(A) the demographic characteristics, as defined in 
                title I of the Careers Act, socioeconomic 
                characteristics, and current employment status of the 
                population, including self-employed, part-time, and 
                seasonal workers, and individuals with severe 
                disabilities;
                  ``(B) job vacancies, education and training 
                requirements, skills, wages, benefits, working 
                conditions, and industrial distribution of occupations, 
                as well as current and projected employment 
                opportunities and trends by industry and occupation;
                  ``(C) the educational attainment, training, skills, 
                skill levels, and occupations of the population by 
                demographic characteristics such as unemployment 
                insurance wage data records;
                  ``(D) information maintained in a longitudinal manner 
                on the quarterly earnings, establishment and industry 
                affiliation, and geographic location of employment for 
                all individuals for whom such information is collected 
                by the States; and
                  ``(E) the incidence, industrial and geographical 
                location, and number of workers displaced by permanent 
                layoffs and plant closings;
          ``(2) State and local employment and consumer information 
        on--
                  ``(A) job openings, locations, hiring requirements, 
                and application procedures, as well as profiles of 
                employers in the local labor market describing the 
                nature of work performed, employment requirements, 
                wages, benefits, and hiring patterns;
                  ``(B) job seekers, including their education and 
                training, skills, skill levels, employment experience, 
                and employment goals; and
                  ``(C) education courses, training programs, job 
                placement programs, and vocational rehabilitation 
                programs (where appropriate), including--
                          ``(i) performance information, such as the 
                        ratio of program completion, acquisition of 
                        industry-recognized skill standards, job 
                        placement, earnings, and the level of 
                        satisfaction of the participants and their 
                        employers; and
                          ``(ii) descriptive information, such as 
                        eligibility requirements, costs, financial 
                        support, or other supportive services, and 
                        other appropriate information which may be 
                        available with these courses and programs;
          ``(3) technical standards for data and information that 
        will--
                  ``(A) ensure compatibility and additivity of data and 
                information from local to State and national levels;
                  ``(B) support standardization and aggregation of data 
                and information from the administrative reporting 
                systems of employment-related programs; and
                  ``(C) include--
                          ``(i) classification and coding systems for 
                        industries, occupations, skills, programs, and 
                        courses;
                          ``(ii) nationally standardized definitions of 
                        terms;
                          ``(iii) a common system for designating 
                        geographic areas;
                          ``(iv) quality control mechanisms for data 
                        collection and analysis; and
                          ``(v) common schedules for data collection 
                        and dissemination;
          ``(4) analysis of data and information for uses including--
                  ``(A) national, State, and local economic 
                policymaking;
                  ``(B) the implementation of Federal policies, 
                including the allocation of Federal funds to States and 
                localities and the facilitation of job search and 
                hiring in local labor markets;
                  ``(C) national, State, and local program planning and 
                evaluation; and
                  ``(D) research on labor market dynamics;
          ``(5) dissemination mechanisms for data and analysis, 
        including mechanisms which may be standardized among the States 
        and technical standards in the design of automated databases, 
        and the design of user interfaces and communications protocols;
          ``(6) programs of technical assistance for States and 
        localities in the development, maintenance, and utilization of 
        data, analysis, and dissemination mechanisms, including 
        assistance in adopting and utilizing automated systems and 
        improving the access, through electronic and other means, of 
        youth, adults, and employers to labor market information for 
        localities, States, and the Nation;
          ``(7) programs of research and demonstration, which may be 
        carried out by States and other public or private entities, on 
        ways to improve the products and processes authorized in this 
        title; and
          ``(8) objective performance measures, which will allow for 
        the continuous monitoring of the progress of the labor market 
        information system at national, State, and local levels.

``SEC. 23. FEDERAL RESPONSIBILITIES.

  ``(a) In General.--The Nation's labor market information system shall 
be planned, administered, overseen, and evaluated by a cooperative 
governance structure involving the Federal Government and the States.
  ``(b) Duties.--The Secretary, with respect to data collection, 
analysis, and dissemination of labor market information, shall carry 
out the following duties:
          ``(1) Ensure that all statistical and administrative data 
        collection activities within the Department of Labor, including 
        the Employment and Training Administration, Veterans' 
        Employment and Training Service, Employment Standards 
        Administration, and Occupational Health and Safety 
        Administration, are consistent with those of the Bureau of 
        Labor Statistics.
          ``(2) Assign responsibilities, as appropriate, to agencies 
        such as the Employment and Training Administration to work with 
        the Bureau of Labor Statistics in the collection, analysis and, 
        particularly, in the dissemination of labor market information, 
        and in the provision of training and technical assistance to 
        users of information, including the States, employers, youth, 
        and adults.
          ``(3) In cooperation with other Federal agencies, including 
        but not limited to the Departments of Commerce, Defense, 
        Treasury, Education, Health and Human Services, Agriculture, 
        Veterans' Affairs, and the Office of Management and Budget, 
        establish and maintain mechanisms for ensuring complementarity 
        and nonduplication in the development and operation of 
        statistical and administrative data collection activities, in 
        order to ensure a comprehensive labor market information 
        system.
          ``(4) Actively seek the participation of other Federal 
        agencies, particularly the National Center for Education 
        Statistics and the Division of Adult and Vocational Education, 
        and the Rehabilitation Services Administration of the 
        Department of Education, the Veterans' Employment and Training 
        Service of the Department of Labor and the Department of 
        Veterans' Affairs with respect to vocational rehabilitation 
        programs in the design and provision of standardized 
        information to the States to support section 22(2), and in the 
        dissemination of labor market information.
          ``(5) Establish confidentiality standards for the labor 
        market information system at national, State, and local levels, 
        including such provisions as may be necessary, to be taken in 
        coordination with the States, to ensure that privacy and 
        confidentiality protections are guaranteed with respect to 
        individuals and firm data.
  ``(c) Additional Duties.--The Secretary, in collaboration with the 
Bureau of Labor Statistics, with the assistance of other agencies of 
the Department where appropriate, shall--
          ``(1) establish and maintain, with the cooperation of the 
        States, elements of the system described in sections 22(1) and 
        22(3);
          ``(2) develop and promulgate standards, definitions, formats, 
        collection methodologies, and other necessary system elements 
        for the use of the States in their assembling and presentation 
        of the employment information specified in section 22(2);
          ``(3) eliminate gaps and duplication in statistical 
        undertakings, with the systemization of wage surveys as an 
        early priority;
          ``(4) recommend any needed improvements in administrative 
        reporting systems to support the development of labor market 
        information from their data; and
          ``(5) ensure that--
                  ``(A) data are sufficiently timely and locally 
                detailed for uses including those specified in section 
                22(4);
                  ``(B) administrative records are standardized to 
                facilitate the aggregation of data from local to State 
                and national levels and to support the creation of new 
                statistical series from program records; and
                  ``(C) paperwork and reporting requirements on 
                employers and individuals are reduced.

``SEC. 24. ANNUAL PLAN.

  ``(a) In General.--The Secretary of Labor, working through the Bureau 
of Labor Statistics, and in consultation with other appropriate Federal 
agencies, shall prepare an annual plan, which shall be the operational 
mechanism for achieving a cooperative Federal/State governance 
structure for labor market information. The annual plan shall provide 
the verbal justification for the Department of Labor's budget request 
to Congress by describing the activities of the Bureau, other agencies 
of the Department of Labor, and other Federal agencies with regard to 
data collection, analysis, and dissemination of labor market 
information for fiscal years succeeding the fiscal year in which the 
plan is developed and shall include--
          ``(1) the results of a periodic review of users' needs, 
        including the identification of new employment issues and the 
        attendant emergence of new needs, on the part of Congress, the 
        States, employers, youth, and adults, for data, analysis, and 
        dissemination;
          ``(2) an evaluation, including the results of objective 
        measures, of the performance of the labor market information 
        system in meeting these needs and the steps to be taken to 
        overcome deficiencies;
          ``(3) a summary of ongoing data programs and activities under 
        section 22 and a description of the development of new data 
        programs, analytical techniques, definitions and standards, 
        dissemination mechanisms, training and technical assistance, 
        governance mechanisms, and funding processes to meet new needs; 
        and
          ``(4) the results of an annual review of the costs to the 
        States of meeting contract requirements for data production 
        under this title, including a description of how the 
        Secretary's requested budget will cover these costs.
  ``(b) Cooperation With the States.--The Secretary shall involve the 
States with the Bureau of Labor Statistics in a cooperative manner in 
the development of the plan by--
          ``(1) establishing procedures and mechanisms for holding 
        formal and periodic consultations on products and 
        administration of the system, at least once each quarter, with 
        representatives of the States from each of the 10 Federal 
        regions of the Department of Labor, elected by and from among 
        the State directors of labor market information, according to a 
        process set forth by the Secretary; and
          ``(2) incorporating in the annual plan, for its submission to 
        Congress, the results of these consultations, including any 
        supplementary or dissenting views from representatives of the 
        States.
  ``(c) Representatives of States Deemed To Be Federal Employees.--For 
purposes of the development of the annual plan and to meet the 
provisions of Office of Management and Budget Circular A-11, the 
representatives of the States, elected in accordance with subsection 
(b)(1), shall be considered to be employees of the Department of Labor.

``SEC. 25. GOVERNOR'S RESPONSIBILITIES.

  ``(a) Designation of State Agency.--The Governor of each State shall 
designate a single State agency to be the agency responsible for the 
management and oversight of a statewide comprehensive labor market 
information system and for the State's participation in the cooperative 
Federal/State governance structure for the nationwide labor market 
information system.
  ``(b) Duties.--In order to receive Federal financial assistance under 
this Act, the State agency shall--
          ``(1) develop, maintain, and continuously improve a 
        comprehensive labor market information system, which shall--
                  ``(A) include all the elements specified in section 
                22; and
                  ``(B) be responsive to the needs of the State and its 
                localities for planning and evaluative data, including 
                employment and economic analyses and projections, as 
                required by this Act, the Consolidated and Reformed 
                Education, Employment, and Rehabilitation Systems Act, 
                the Social Security Act, and other provisions of law 
                under which Congress has required the use of labor 
                market information;
          ``(2) ensure the performance of contract and grant 
        responsibilities for data collection, analysis, and 
        dissemination;
          ``(3) conduct such other data collection, analysis, and 
        dissemination activities as will ensure comprehensive State and 
        local labor market information;
          ``(4) actively seek the participation of other State and 
        local agencies, with particular attention to State education, 
        economic development, human services, and welfare agencies, in 
        data collection, analysis, and dissemination activities in 
        order to ensure complementarity and compatibility among data; 
        and
          ``(5) participate in the development of the national annual 
        plan.
  ``(c) Rule of Construction.--Nothing in this Act shall be construed 
as limiting the State agency's ability to conduct additional data 
collection, analysis, and dissemination activities with State funds or 
with Federal funds from sources other than this Act.''.

                       Subtitle C--Worker Rights

SEC. 141. REQUIREMENTS.

  The following requirements shall apply to programs under titles II 
and III of this Act:
          (1) Prohibition on displacement.--A participant in a program 
        under titles II or III shall not displace any currently 
        employed worker (including a partial displacement, such as a 
        reduction in the hours of non-overtime work, wages, or 
        employment benefits).
          (2) Prohibition on impairment of contracts.--A program under 
        title II or III shall not impair existing contracts for 
        services or collective bargaining agreements, and no such 
        program that would be inconsistent with the terms of a 
        collective bargaining agreement shall be undertaken without the 
        written concurrence of the labor organization and employer 
        concerned.
          (3) Prohibition on replacement.--A participant in a program 
        under title II or III shall not be employed--
                  (A) when any other individual is on temporary layoff, 
                with the clear possibility of recall, from the same or 
                any substantially equivalent job with the participating 
                employer; or
                  (B) when the employer has terminated the employment 
                of any regular employee or otherwise reduced the 
                workforce of the employer with the intention of filling 
                the vacancy so created with the student.
          (4) Workplaces.--A participant in a program under title II or 
        III shall be provided with adequate and safe equipment and safe 
        and healthful workplaces in conformity with all health and 
        safety requirements of Federal, State, and local law.
          (5) Effect on other laws.--Nothing in this Act shall be 
        construed to modify or affect any Federal or State law 
        prohibiting discrimination on the basis of race, religion, 
        color, ethnicity, national origin, gender, age, or disability, 
        or to modify or affect any right to enforcement of this Act 
        that may exist under other Federal laws, except as expressly 
        provided by this Act.

 TITLE II--YOUTH DEVELOPMENT AND CAREER PREPARATION CONSOLIDATION GRANT

SEC. 201. PURPOSES.

  It is the purpose of this title to provide States and local 
communities maximum flexibility in designing workforce preparation 
programs that--
          (1) help individuals attain the academic skills, as well as 
        occupational skills, needed to be successful in a global 
        economy and for lifelong learning;
          (2) best suit the needs of in-school and at-risk youth in 
        their communities, as well as the skill needs of State and 
        local employers;
          (3) promote strong connections between in-school and at-risk 
        programs, to ensure that youth are prepared for good jobs and 
        further education opportunities, and promote youth development 
        and career preparation programs that provide opportunities for 
        individuals to receive postsecondary education and occupational 
        training;
          (4) promote the formation of business and education 
        partnerships that are dedicated to linking the worlds of school 
        and work; and
          (5) promote high academic and occupational standards and 
        quality vocational-technical education, including improved 
        secondary and postsecondary programs, by focusing resources on 
        program improvement initiatives that help prepare students for 
        further education and training and high-wage jobs in high-
        performance workplaces.

SEC. 202. DEFINITIONS.

  For purposes of this title:
          (1) The term ``administration'' means activities of a State 
        necessary for the proper and efficient performance of its 
        duties under this title, including supervision, but does not 
        include curriculum development activities, personnel 
        development, or research activities.
          (2) The term ``all aspects of the industry'' means strong 
        experience in, and understanding of, all aspects of the 
        industry the students are preparing to enter, including 
        planning, management, finances, technical and production 
        skills, underlying principles of technology, labor issues, and 
        health and safety.
          (3) The term ``articulation agreement'' means a commitment to 
        a program designed to provide students with a nonduplicative 
        sequence of progressive coursework in secondary and 
        postsecondary education.
          (4) The term ``cooperative education'' means a method of 
        instruction of vocational education for individuals who, 
        through written cooperative arrangements between the school and 
        employers, receive instruction, including required academic 
        courses and related vocational instruction by alternation of 
        study in school with a job in any occupational field. Such 
        alternation shall be planned and supervised by the school and 
        employers so that each contributes to the student's education 
        and employability. Work periods and school attendance may be on 
        alternate half days, full days, weeks, or other periods of time 
        in fulfilling the cooperative program.
          (5) The term ``corrections vocational education'' means 
        programs administered by the State to assist juvenile and adult 
        criminal offenders in correctional institutions in the State, 
        including correctional institutions operated by local 
        authorities.
          (6) The term ``curricula'' means instructional and related or 
        supportive material, including materials using advanced 
        learning technology, in any occupational field which is 
        designed to strengthen the academic foundation and prepare 
        individuals for employment at the entry level or to upgrade 
        occupational competencies of those previously or presently 
        employed in any occupational field, and appropriate counseling 
        and guidance material.
          (7) Except as otherwise provided, the term ``eligible 
        institution'' means a local educational agency, an area 
        vocational education school, an intermediate educational 
        agency, an institution of higher education (as such term is 
        defined in section 1201(a) of the Higher Education Act of 
        1965), a State corrections educational agency, or consortia of 
        such entities.
          (8) The term ``partnership'' means a local entity that is 
        responsible for local youth development and career preparation 
        programs and may consist of employers, representatives of local 
        educational agencies and local postsecondary educational 
        institutions (including representatives of area vocational 
        education schools, where applicable), local educators (such as 
        teachers, counselors, or administrators), representative 
        employee organizations, and students; and include other 
        entities.
          (9) The term ``Secretary'' means the Secretary of Education.
          (10) The term ``sequential course of study'' means an 
        integrated series of courses which are directly related to the 
        educational and occupational skills preparation of individuals 
        for jobs, or preparation for postsecondary education.
          (11) The term ``single parent'' means an individual who--
                  (A) is unmarried or legally separated from a spouse; 
                and
                  (B)(i) has a minor child or children for whom the 
                parent has either custody or joint custody; or
                  (ii) is pregnant.
          (12) The term ``special populations'' includes individuals 
        with disabilities, economically disadvantaged individuals, 
        individuals of limited English proficiency, and individuals in 
        nontraditional training and employment.
          (13) The term ``tech-prep education program'' means a program 
        of study which--
                  (A) combines at least 2 years of secondary and 2 
                years of postsecondary education in a nonduplicative 
                sequence;
                  (B) integrates academic and vocational instruction;
                  (C) provides technical preparation in at least 1 
                field of engineering technology, applied science, 
                mechanical, industrial, or practical art or trade, or 
                agriculture, health occupations, or business;
                  (D) builds student competence in mathematics, 
                science, communications, and workplace skills, through 
                applied academics and integrated instruction in a 
                coherent sequence of courses;
                  (E) leads to an associate degree or certificate in a 
                specific career field;
                  (F) leads to placement in appropriate employment or 
                further education; and
                  (G) enables a student to fulfill a career pathway 
                plan relating to labor market needs.
          (14) The term ``vocational education'' means organized 
        educational programs offering a sequence of courses which are 
        directly related to the preparation of individuals in paid or 
        unpaid employment in current or emerging occupations, including 
        nonbaccalaureate certificate and degree programs and 
        baccalaureate vocational degree programs. Such programs include 
        competency-based applied learning which contributes to an 
        individual's academic knowledge, higher-order reasoning, and 
        problem-solving skills, work attitudes, general employability 
        skills, and the occupational-specific skills necessary for 
        economic independence as a productive and contributing member 
        of society. Such term also includes applied technology 
        education.
          (15) The term ``vocational student organizations'' means 
        those organizations for individuals enrolled in vocational 
        education programs which engage in activities as an integral 
        part of the instructional program. Such organizations may have 
        State and national units which aggregate the work and purposes 
        of instruction in vocational education at the local level.

                       Subtitle A--State Funding

SEC. 211. NATIONAL AND STATE FUNDING.

  (a) National Programs.--In each fiscal year, of the amounts made 
available under section 4, the Secretary shall reserve 20 percent or 
$25,000,000, whichever is less, to carry out the provisions of subtitle 
D.
  (b) State Allotment.--
          (1) In general.--Of the funds remaining after the reservation 
        under subsection (a), the Secretary shall allot to each State 
        for each fiscal year an amount based on that State's allotment 
        percentage.
          (2) Allotment percentage.--(A) Except as provided in 
        subparagraph (B), the allotment percentage of a State for a 
        fiscal year shall be the same percentage of funds allotted to 
        the State under this section in the preceding fiscal year.
          (B) The allotment percentage of a State for fiscal year 1996 
        shall be the percentage of funds allotted to the State in 
        fiscal year 1995 under--
                  (i) section 101 or 101A of the Carl D. Perkins 
                Vocational and Applied Technology Education Act as such 
                Act was in effect on the day before the date of the 
                enactment of this Act; and
                  (ii) the funding allotted in fiscal year 1995 under 
                section 252 and 262 of the Job Training Partnership Act 
                as such Act was in effect on the day before the date of 
                the enactment of this Act.
          (3) State minimum.--Notwithstanding any other provision of 
        law and subject to paragraph (1), any fiscal year for which the 
        amounts appropriated for programs authorized by this title 
        exceed the amounts available for fiscal year 1985, a State 
        shall not receive less than one-quarter of one percent of the 
        amount available for each such program for that fiscal year 
        under this subsection. Amounts necessary for increasing such 
        payments to States to comply with the preceding sentence shall 
        be obtained by ratably reducing the amounts to be paid to other 
        States.
          (4) Definition.--For the purposes of this subsection the term 
        ``State'' means, in addition to the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, and the Northern Mariana 
        Islands.
  (c) Funding for State Programs.--Of the funds allotted to a State 
under subsection (b) for each fiscal year, the Governor, through the 
collaborative process, shall--
          (1) make available not less than 90 percent to local 
        providers;
          (2) make available not more than 8 percent for State programs 
        described in section 222; and
          (3) make available not more than 2 percent for administrative 
        purposes.

SEC. 212. WITHIN STATE ALLOCATION.

  (a) In General.--From the amounts made available pursuant to section 
211(c)(1), the Governor, through the collaborative process, shall--
          (1) allocate to eligible institutions an amount equal to not 
        less than 40 percent of such amount for in-school youth 
        programs described in section 241;
          (2) allocate to local workforce development boards an amount 
        equal to not less than 40 percent of such amount for at-risk 
        youth programs described in section 245;
          (3) provide an amount equal to 10 percent of the remainder to 
        eligible institutions or local workforce development boards; 
        and
          (4) allocate the remainder of any amounts under this 
        subsection to carry out the purposes of paragraph (1) or (2).
  (b) Within State Formula.--
          (1) Establishment.--The Governor, through the collaborative 
        process, and after consultation with local chief elected 
        officials in the local workforce development area and, where 
        appropriate, local educators in such area, shall develop a 
        formula for the allocation of funds in accordance with 
        paragraphs (1), (2), and (4) of subsection (a). Such formula 
        shall take into account--
                  (A) poverty rates within each local community, as 
                determined by the State;
                  (B) the proportion of the State's youth population 
                residing within each local community; and
                  (C) such other factors as considered appropriate.
          (2) Additional factors.--In establishing such formula, the 
        Governor shall ensure that funds are distributed equitably 
        throughout the State, and that the factors described in 
        paragraph (1) do not receive disproportionate weighting.
  (c) Minimum Grant Amounts.--
          (1) Local educational agencies.--A local educational agency 
        or consortium of such agencies that receives a subgrant from a 
        State under this subtitle for any fiscal year shall receive not 
        less than $15,000.
          (2) Postsecondary institutions.--A postsecondary institution 
        or consortium of such institutions that receives a subgrant 
        from a State under this subtitle for any fiscal year shall 
        receive not less than $50,000.
          (3) Local development board.--A local development board that 
        receives a subgrant from a State under this subtitle for any 
        fiscal year shall receive not less than $15,000.
          (4) Secondary-postsecondary consortia.--One or more local 
        educational agencies and one or more eligible institutions may 
        enter into a consortium agreement. A consortium formed pursuant 
        to this paragraph that receives a subgrant from a State under 
        this subtitle shall receive not less than $50,000 in any fiscal 
        year.
  (d) Funds to Consortium.--Funds allocated to a consortium formed to 
meet the minimum grant requirements of this section shall be used only 
for purposes and activities that are mutually beneficial to all members 
of the consortium. Such funds may not be reallocated to individual 
members of the consortium for purposes or activities benefiting only 
one member of the consortium.
  (e) Waiver.--The State may waive the application of subsection (c) in 
any case in which a grant recipient--
          (1) is located in a rural, sparsely-populated area; and
          (2) demonstrates an inability to enter into a consortium for 
        purposes of providing services under this title.

       Subtitle B--State Organizational, Planning, and Reporting 
                            Responsibilities

SEC. 221. STATE PLAN.

  In addition to the requirements described in title I, a State that 
desires to receive funds for any fiscal year under this title shall, as 
part of the State Workforce Development and Literacy Plan under title 
I, submit to the Secretary of Education information that includes--
          (1) a description of how the State will adopt, develop, or 
        assist local providers to adopt or develop model curricula and 
        innovative instructional methodologies, to be used in the 
        postsecondary, secondary, and where possible, the elementary 
        grades, and in programs for at-risk youth that integrate 
        academic, vocational, and work-based learning, stressing 
        applied and contextual learning, and promote career awareness;
          (2) a description of how the State will expand and improve 
        career exploration and guidance counseling for students in the 
        elementary and secondary grades, which may include linkages to 
        career exploration, guidance counseling and labor market 
        information services outside of the school system and shall 
        describe how the State will effectively demonstrate the system 
        of career preparation for youth, which includes elements such 
        as professional development, and secondary-postsecondary 
        collaborations;
          (3) a description of the strategy of the State for 
        integrating academic, vocational, and work-based learning, 
        including a description of how the State will promote 
        collaboration between secondary and postsecondary occupational 
        and academic programs and institutions;
          (4) a description of the State's plan to develop the academic 
        and occupational skills of students and provide the attainment 
        of challenging vocational-technical education standards, 
        including industry-approved skill standards and workplace 
        competencies, and a description of how the State will develop a 
        State process for issuing skill certificates that, to the 
        extent feasible, are consistent with the skill standards 
        certification systems endorsed by the National Skill Standards 
        Board;
          (5) a description of how the State will promote the active 
        involvement of business (including small- and medium-sized 
        businesses) in the planning, development, and implementation of 
        youth development and career preparation programs authorized 
        under this title; and
          (6) a description of how the State will coordinate the Goals 
        2000: Educate America Act, and Improving America's Schools Act 
        of 1994, and other State education improvement plans.

SEC. 222. STATE PROGRAMS AND STATE ACTIVITIES.

  (a) General Authority.--From amounts made available to a State under 
section 211, each State shall conduct State programs and activities.
  (b) Required Uses of Funds.--The programs and activities described in 
subsection (a) shall include an assessment of programs conducted with 
assistance under this title, including the development of--
          (1) performance standards and measures for such programs; and
          (2) program improvement and accountability with respect to 
        such programs.
  (c) Additional Uses of Funds.--The programs and activities described 
in subsection (a) may include--
          (1) the support for tech-prep education;
          (2) support for workforce preparation programs for single 
        parents, displaced homemakers, and single pregnant women;
          (3) support for corrections vocational education;
          (4) professional development activities for vocational 
        teachers, academic teachers, school administrators, counselors, 
        workplace mentors, and local providers regarding integration of 
        vocational, academic, and work-based curricula, including--
                  (A) inservice and preservice training of teachers and 
                faculty in state-of-the-art programs and techniques and 
                nontraditional training and employment; and
                  (B) support of public teacher-education programs to 
                ensure vocational teachers stay current with the needs, 
                expectations, and methods of industry to meet employer 
                standards;
          (5) development, dissemination, and field testing of 
        curricula, especially--
                  (A) curricula that integrate vocational, academic, 
                and work-based methodologies;
                  (B) curricula that provide a coherent sequence of 
                courses through which academic and occupational skills 
                may be measured; and
                  (C) curricula for work-based learning;
          (6) leadership and instructional programs in technology 
        education;
          (7) data collection, including support for management 
        information systems as defined in section 109;
          (8) support for 1-stop career centers described in section 
        107;
          (9) support for cooperative education and family and consumer 
        science programs;
          (10) creative use of technologies, including professional 
        development in the use of such technologies for instructional 
        purposes and to increase counselors' and students' knowledge 
        of, and use of, additional information resources to make career 
        pathways and coursework decisions;
          (11) support for vocational student organizations; and
          (12) improving career guidance and counseling.

SEC. 223. INCENTIVE AWARDS.

  The State, may, from the amount made available under section 
211(c)(2) for any fiscal year make performance awards to 1 or more 
eligible institutions or local providers that have--
          (1) exceeded in the performance goals described in section 
        224;
          (2) implemented exemplary youth development and career 
        preparation programs at the local level in accordance with the 
        purposes described in section 201; or
          (3) provided exemplary education services and activities for 
        at-risk youth.

SEC. 224. CORE STANDARDS, PERFORMANCE GOALS, AND MEASURES.

  (a) General Authority.--
          (1) Standards and measures.--In addition to the State's goals 
        described in section 104, each State receiving funds under this 
        title shall have developed or shall develop and implement a 
        statewide system of core standards and measures of performance 
        for youth development and career preparation programs in 
        coordination with other titles of this Act.
          (2) Statewide system.--Each statewide system, in accordance 
        with the provisions of section 104, shall--
                  (A) establish or have established performance goals 
                to define the level of performance to be achieved by 
                youth served under this title and to evaluate the 
                quality and effectiveness of services and activities 
                under this title;
                  (B) express such goals in an objective, quantifiable, 
                and measurable form;
                  (C) establish progress indicators that the State and 
                local recipients will use in measuring or assessing 
                progress toward achieving such goals; and
                  (D) provide biennial reports to the public and to the 
                Secretary on the State's progress in achieving its 
                goals.
  (b) Requirements.--Each system developed under subsection (a) shall 
include--
          (1) measures of academic and occupational competency gains, 
        including progress in the achievement of the following:
                  (A) Academic and occupational competency attainment 
                which includes--
                          (i) attainment of challenging State academic 
                        standards;
                          (ii) attainment of challenging vocational-
                        technical education standards; and
                          (iii) attainment of industry-recognized 
                        occupational standards, including basic 
                        workplace competencies and industry-recognized 
                        skill standards (endorsed by the National Skill 
                        Standards Board), which may include the receipt 
                        of a skill certificate in the occupation for 
                        which the student has been prepared;
                  (B) retention in school or completion of secondary 
                school or the equivalent;
                  (C) placement into additional training or 
                postsecondary education, military service, registered 
                apprenticeship, or employment; and
                  (D) employment retention and earnings levels;
          (2) reduction of the dropout rate; and
          (3) success of special populations in meeting these 
        performance standards, including nontraditional training and 
        employment.
  (c) Performance Goals and Measures.--The Governor shall, acting 
through the collaborative process, work to ensure that the performance 
goals are consistent with challenging State academic standards, 
industry-recognized skill standards once established by the National 
Skill Standards Board and the State goals established under this title.

         Subtitle C--Subgrants for In-School and At-Risk Youth

SEC. 231. PARTNERSHIP AGREEMENTS.

  (a) Partnership.--A local workforce development board and an eligible 
institution that desires to receive a subgrant from a State under this 
subtitle in any fiscal year shall form a partnership for the purposes 
of collaborative planning, coordination of in-school and at-risk 
programs, and effective public participation.
  (b) Plan.--The partnership referred to in subsection (a) shall, in 
collaboration, develop and submit for approval to the Governor through 
the State collaborative process a comprehensive youth development and 
career preparation plan for in-school and at-risk youth. Such plan 
shall describe how the youth development and career preparation system 
meets the requirements of sections 241 and 245 and shall address 
comments received through the collaborative process. The partnership 
shall assure the involvement of parents, teachers, and the community in 
the collaborative planning process which involves design of the 
standards, strategies, articulation, and cooperative agreements, 
assessments, and evaluation of program activities.

SEC. 232. DISTRIBUTION OF FUNDS.

  (a) In-School Programs.--Based upon an application submitted by the 
partnership to the Governor through the State collaborative process, a 
State shall distribute funds made available in a fiscal year as 
provided in section 212(a)(1) to eligible institutions to carry out in-
school youth programs described in section 241.
  (b) At-Risk Youth Programs.--A State shall distribute funds made 
available in any fiscal year as provided in section 212(a)(2) to local 
workforce development boards to carry out at-risk youth programs 
described in section 245.

                       CHAPTER 1--IN-SCHOOL YOUTH

SEC. 241. USES OF FUNDS FOR IN-SCHOOL YOUTH.

  (a) General Authority.--Each eligible institution that receives a 
subgrant under this chapter shall use funds provided under such grant 
to improve youth development and career preparation programs.
  (b) Requirements for Uses of Funds.--Funds provided by a State 
pursuant to section 212(a)(1) shall be used to provide in-school youth 
development and career preparation programs that--
          (1) are of such size, scope, and quality as to be effective;
          (2) integrate academic, vocational, and work-based learning, 
        stressing applied and contextual learning, through a coherent 
        sequence of courses so that youth achieve both academic and 
        occupational competencies;
          (3) involve employers in the design and implementation of 
        programs, including the development of curriculum;
          (4) establish effective linkages between at-risk youth 
        programs, secondary and postsecondary education;
          (5) provide work-based learning experiences with adult 
        mentoring where appropriate; and, to the extent possible, with 
        strong experiences and understanding of all aspects of an 
        industry appropriately tied to the student's career major; and
          (6) provide career exploration, including exploration in the 
        practical arts or trade, career awareness and career guidance 
        opportunities, beginning in the earliest grades possible.
  (c) Additional Uses of Funds.--In carrying out the provisions of 
subsection (b), funds may be used by schools for in-school youth 
activities such as--
          (1) purchasing, leasing, or upgrading of equipment, including 
        instructional aides and material;
          (2) inservice training of vocational instructors, academic 
        instructors, employers, and workplace mentors, to integrate 
        academic and vocational education, and provide high-quality 
        work-based learning experiences;
          (3) tech-prep education programs;
          (4) supplementary services designed to meet the needs of 
        special populations;
          (5) adaptation of equipment;
          (6) apprenticeship programs;
          (7) comprehensive mentoring programs in institutions of 
        higher education offering comprehensive programs in teacher 
        preparation which seek to fully use the skills and work 
        experience of individuals currently or formerly employed in 
        business and industry who are interested in becoming classroom 
        instructors and to meet the need of vocational educators who 
        wish to upgrade their teaching competencies;
          (8) local education and business partnerships for developing 
        and implementing workforce preparation systems;
          (9) support for vocational student organizations; and
          (10) establishing effective activities and procedures to 
        enable program participants and their parents to participate 
        directly in decisions that influence the character of programs, 
        including providing information and assistance needed for 
        informed and effective participation.

                        CHAPTER 2--AT-RISK YOUTH

SEC. 245. USES OF FUNDS FOR AT-RISK YOUTH.

  (a) General Authority.--Each local workforce development board that 
receives a subgrant under this chapter shall use funds provided under 
such grant to improve youth development and career preparation 
programs.
  (b) Requirements for Uses of Funds.--Funds provided by a State 
pursuant to section 212(a)(2) shall be used to provide youth 
development and career preparation programs for at-risk youth that--
          (1) are of such size, scope, and quality as to be effective;
          (2) integrate academic, vocational, and work-based learning, 
        stressing applied and contextual learning, through a coherent 
        sequence of courses so that students and at-risk youth achieve 
        both academic and occupational competencies;
          (3) involve employers in the design and implementation of 
        programs, including the development of curriculum;
          (4) establish effective linkages between at-risk youth 
        programs, and secondary and postsecondary education;
          (5) provide work-based learning experiences, including 
        experiences in the practical arts or trade, if applicable;
          (6) provide adult mentoring as a core component of the 
        program;
          (7) provide an objective assessment of the academic and skill 
        levels, and service needs of each participant; and
          (8) provide career exploration and counseling.
  (c) Additional Uses of Funds.--In carrying out the provisions of 
subsection (b), providers of at-risk youth programs, as selected by the 
local workforce development board, may provide activities such as--
          (1) tutoring, study skills training and instruction leading 
        to completion of high school;
          (2) alternative high school services;
          (3) training or education that is combined with community 
        service, and service learning opportunities;
          (4) paid work experience, including limited internships, 
        entry-employment experience programs, and summer employment 
        opportunities that are integrated with the year-round school-
        based or alternative school-based program;
          (5) dropout prevention strategies and strategies to encourage 
        at-risk youth to reenter high school or alternative high school 
        programs and programs that encourage pregnant and parenting 
        youth to stay in school;
          (6) preemployment and work maturity skills training;
          (7) peer-centered activities encouraging responsibility and 
        other positive social behaviors during non-school hours; and
          (8) training-related supportive services.
  (d) Limitations on Use of Funds.--Not more than 10 percent of the 
funds provided under this chapter to a local workforce development 
board may be used for administrative purposes.

SEC. 246. AT-RISK YOUTH PROVIDERS.

  (a) Role of Workforce Development Board.--A workforce development 
board that receives funds under this chapter shall not operate 
programs, but shall contract with eligible providers of demonstrated 
effectiveness, or with eligible providers utilizing service 
methodologies with demonstrated effectiveness in serving the workforce 
preparation needs of at-risk youth, for the purpose of providing 
services under this chapter.
  (b) Eligible Providers.--For purposes of this chapter, eligible 
providers may include--
          (1) an ``eligible institution'' as defined under section 
        202(7);
          (2) a unit of local government;
          (3) a private, nonprofit organization (including community-
        based organizations);
          (4) a private, for-profit entity;
          (5) a designated 1-stop career center; or
          (6) other organizations or entities of demonstrated 
        effectiveness and approved by the local Board.
                     Subtitle D--National Programs

SEC. 251. RESEARCH ACTIVITIES.

  (a) General Authority.--
          (1) In general.--In order to carry out the purpose of this 
        title, the Secretary may, directly or through grants, 
        contracts, or cooperative agreements, carry out research, 
        development, dissemination, replication of model programs, 
        demonstration programs, evaluation, capacity-building, and 
        technical assistance activities with regard to the services and 
        activities carried out under this title.
          (2) Information systems.--Activities carried out under this 
        section may include support for occupational and career 
        information systems.
  (b) Dissemination.--The Secretary shall establish a system for 
disseminating information resulting from research and development 
activities carried out under this title.

SEC. 252. ASSESSMENT AND DATA COLLECTION OF YOUTH DEVELOPMENT AND 
                    CAREER PREPARATION PROGRAMS.

  (a) In General.--The Secretary, through the Office of Educational 
Research and Improvement, shall conduct a biennial assessment of 
services and activities assisted under this title, through studies and 
analyses conducted independently through competitive awards.
  (b) Contents.--The assessment required under subsection (a) shall 
examine the extent to which services and activities assisted under this 
title have achieved their intended purposes and results, including the 
extent to which--
          (1) State and local services and activities have developed, 
        implemented, or improved systems established under this title;
          (2) services and activities assisted under this title succeed 
        in preparing students, including students who are members of 
        special populations, for postsecondary education, further 
        learning, or entry into high-skill, high-wage careers;
          (3) students who participate in services and activities 
        supported under this title succeed in meeting challenging State 
        academic and industry-based skill standards; and
          (4) the system improvement, participation, local and State 
        assessment, and accountability provisions of this title, 
        including the performance goals and indicators established 
        under section 224, are effective.

SEC. 253. NATIONAL CENTER OR CENTERS FOR RESEARCH.

  (a) General Authority.--
          (1) National center.--The Secretary may, through a grant or 
        contract, establish one or more national centers for conducting 
        applied research, development, dissemination, and technical 
        assistance activities which would focus on improving the career 
        preparation of individuals. The Secretary shall consult with 
        States prior to establishing one or more such centers.
          (2) Eligibility.--Entities eligible to receive funds under 
        this section are institutions of higher education, other public 
        or private nonprofit organizations or agencies, and consortia 
        of such institutions, organizations, or agencies.
          (3) Previous center.--The national center in existence on the 
        day before the date of the enactment of the this Act shall 
        continue to receive assistance under this section in accordance 
        with the terms of its current award.
  (b) Activities.--
          (1) In general.--The applied research, development, 
        dissemination, and technical assistance activities carried out 
        by the national center or centers shall include--
                  (A) activities that assist recipients of funds under 
                this title to meet the requirements of section 224;
                  (B) research and development of activities that 
                combine academic, vocational education, and work-based 
                learning;
                  (C) developing new models for remediation of basic 
                academic skills which incorporate appropriate 
                instructional methods;
                  (D) identifying ways to establish links among 
                educational and job training activities at the State 
                and local levels;
                  (E) new models for career guidance, career 
                information, and counseling services;
                  (F) studies providing longitudinal information or 
                formative evaluation on programs funded under this 
                title, including an analysis of the effectiveness of 
                youth development and career preparation programs in 
                serving at-risk youth; and
                  (G) such other activities as the Secretary determines 
                to be appropriate to achieve the purpose of this Act.
          (2) Duties.--The center or centers shall--
                  (A) provide assistance to States and local recipients 
                in developing and using systems of performance measures 
                and standards for improvement of programs and services; 
                and
                  (B) provide technical assistance and outreach.
          (3) Summary.--The center or centers conducting the activities 
        described in paragraph (1) shall annually prepare a summary of 
        key research findings of such center or centers and shall 
        submit copies of the summary to the Secretaries of Education 
        and Labor. The Secretary shall submit that summary to the 
        Committee on Labor and Human Resources of the Senate, and the 
        Committee on Economic and Educational Opportunities of the 
        House of Representatives.
  (c) Clearinghouse.--The center or centers shall maintain a 
clearinghouse that will provide data and information to Federal, State, 
and local organizations and agencies about the condition of systems and 
programs funded under this title.

      TITLE III--ADULT EMPLOYMENT AND TRAINING CONSOLIDATION GRANT

     Subtitle A--Adult Employment and Training Consolidation Grant

SEC. 301. PURPOSE.

  The purpose of this title is to establish an efficient, high-quality, 
and equitable system of employment, job training, and related 
assistance designed to facilitate the transition of adults into 
productive, high skills, private sector employment.

SEC. 302. AUTHORIZATION.

  (a) In General.--In the case of each State that in accordance with 
the requirements of section 102 submits to the Secretary of Labor 
(hereinafter in this title referred to as the ``Secretary'') a State 
workforce development and literacy plan under section 104, the 
Secretary shall provide a grant to the State for the purpose of 
providing employment, job training, and related assistance for adults 
in the State.
  (b) Amount.--The grant shall consist of the allotment determined for 
the State under section 303.

SEC. 303. ALLOTMENT AMONG STATES.

  (a) In General.--Of the amount appropriated pursuant to section 
4(a)(2) to carry out this title for a fiscal year, the Secretary 
shall--
          (1) allot 85 percent of such amounts in accordance with 
        subsection (b); and
          (2) reserve 15 percent for use under subtitle B.
  (b) Allotment Among States.--
          (1) Reservation for the territories.--Of the amount allotted 
        under subsection (a)(1), the Secretary shall allot not more 
        than one quarter of one percent among the Commonwealth of the 
        Northern Mariana Islands, American Samoa, Guam, and the Virgin 
        Islands.
          (2) States.--After determining the amount to be allotted 
        under paragraph (1), the Secretary shall allot the remaining 
        amount to the remaining States so that each State receives an 
        amount that bears the same proportion to such remaining amount 
        as--
                  (A) the amount allotted to each such State from 
                allotments under sections 202 and 302 of the Job 
                Training Partnership Act (29 U.S.C. 1602 and 1652) (as 
                in effect before the date of the enactment of this Act) 
                for fiscal year 1995; bears to
                  (B) the aggregate of the amounts allotted to all such 
                States from allotments under such sections for such 
                fiscal year.
        Notwithstanding any other provision of law and subject to 
        paragraph (1), in any fiscal year for which the amounts 
        appropriated for programs authorized by title III exceed the 
        amounts so available for fiscal year 1985, no State shall 
        receive less than one-quarter of one percent of the amount 
        available for each such program for that fiscal year under this 
        subsection. Amounts necessary for increasing such payments to 
        States to comply with the preceding sentence shall be obtained 
        by ratably reducing the amounts to be paid to other States.

SEC. 304. ALLOCATION WITHIN STATES.

  (a) Reservations for State Activities.--
          (1) In general.--The Governor of the State shall reserve not 
        more than 20 percent of the amount allotted to the State under 
        section 303(b) for a fiscal year for statewide activities for 
        employment, job training, and related assistance for adults.
          (2) Mandatory activities.--Such activities shall include--
                  (A) rapid response activities; and
                  (B) additional assistance to areas that experience 
                disasters, mass layoffs or plant closings, or other 
                events which precipitate substantial increases in the 
                number of unemployed workers, to be expended in 
                accordance with the local plan of the relevant 
                workforce development area.
          (3) Discretionary activities.--
                  (A) In general.--Such activities may include--
                          (i) subject to subparagraph (B), 
                        administration by the State of programs under 
                        this subtitle;
                          (ii) capacity building and technical 
                        assistance to local workforce development 
                        areas, one-stop career centers, and service 
                        providers, including the development and 
                        training of staff and the development of 
                        exemplary program activities;
                          (iii) incentives for program coordination, 
                        performance awards, and research and 
                        demonstrations;
                          (iv) implementation of innovative incumbent 
                        worker training programs, which may include the 
                        establishment and implementation of an employer 
                        loan program to assist in skills upgrading for 
                        non-managerial employees (in accordance with 
                        the requirements of section 314);
                          (v) implementation of experimentation model 
                        activities, pilot projects, and demonstration 
                        projects which further the goals and purposes 
                        of this Act;
                          (vi) additional assistance for the 
                        development and implementation of the one-stop 
                        delivery system of the State established in 
                        accordance with title I of this Act; and
                          (vii) support for a common management 
                        information system as described in section 109.
                  (B) Limitation.--Not more than \1/4\ of the amount 
                reserved by the Governor under paragraph (1) may be 
                used for administration by the State of programs under 
                this subtitle.
  (b) Within State Allocation.--
          (1) In general.--The Governor of the State, based upon an 
        allocation formula established in accordance with paragraph 
        (2), shall allocate the remainder of the amount allotted to the 
        State under section 303(b) to workforce development areas 
        designated under title I of this Act for the purpose of 
        providing employment, job training, and related assistance for 
        adults in accordance with section 306.
          (2) Within state formula.--
                  (A) Establishment.--The Governor, through the 
                collaborative process, and after consultation with 
                local chief elected officials in the local workforce 
                development area, shall develop a formula for the 
                allocation of funds to workforce development areas. 
                Such formula shall take into account--
                          (i) poverty rates within each local workforce 
                        development area, as determined by the State;
                          (ii) unemployment rates within each local 
                        workforce development area;
                          (iii) the proportion of the State's adult 
                        population residing within each local workforce 
                        development area; and
                          (iv) such other factors as considered 
                        appropriate.
                  (B) Additional factors.--In establishing such 
                formula, the Governor shall ensure that funds are 
                distributed equitably throughout the State, and that 
                the factors described in subparagraph (A) do not 
                receive disproportionate weighting.
          (3) Exception.--Notwithstanding the provisions of paragraphs 
        (1) and (2), the Governor shall provide 10 percent of the 
        remainder described in paragraph (1) to local workforce areas 
        designated under title I of this Act.
SEC. 305. ADDITIONAL STATE PLAN REQUIREMENTS.

  The State shall, as part of the State workforce development and 
literacy plan under title I of this Act, submit to the Secretary the 
following additional information:
          (1) A description of how the State will serve the employment 
        and training needs of dislocated workers, economically 
        disadvantaged individuals, older workers, individuals with 
        disabilities, displaced homemakers, veterans, and individuals 
        with multiple barriers to employment (as determined by the 
        State), including individuals who are basic skills deficient.
          (2) A description of how the State will provide rapid 
        response assistance to workers experiencing dislocation as a 
        result of mass layoffs and plant closings, either through the 
        direct provision of services or through the transfer of funds 
        to local workforce development areas for the provision of such 
        services.

SEC. 306. USE OF AMOUNTS.

  (a) Core Services.--Amounts allocated under section 304(b) shall be 
used to provide core services to adults through one-stop career centers 
in accordance with title I of this Act.
  (b) Intensive Services.--
          (1) In general.--Amounts allocated under section 304(b) shall 
        be used to provide intensive services to adults--
                  (A) who are unable to obtain employment through core 
                services under subsection (a); and
                  (B) who have been determined to be in need of more 
                intensive services in order to gain employment.
          (2) Delivery of services.--Such intensive services shall be 
        provided--
                  (A) directly through one-stop career centers in 
                accordance with title I of this Act; or
                  (B) through contracts through such centers with 
                service providers approved by the local workforce 
                development board, which may include private, for-
                profit providers.
          (3) Types of services.--Such intensive services may include 
        the following:
                  (A) Comprehensive and specialized assessments of the 
                skill levels and service needs of adults, which may 
                include--
                          (i) diagnostic testing and other assessment 
                        tools; and
                          (ii) in-depth interviewing and evaluation to 
                        identify employment barriers and appropriate 
                        employment goals.
                  (B) Development of an individual employment plan, to 
                identify the employment goals, appropriate achievement 
                objectives, and the appropriate combination of services 
                for the adult to achieve the employment goal.
                  (C) Group counseling.
                  (D) Individual counseling and career planning.
                  (E) Case management for adults receiving education 
                and training services under subsection (c) or 
                supportive services under subsection (d).
                  (F) Follow-up counseling for adults placed in 
                training or employment, for up to 1 year.
  (c) Education and Training Services.--
          (1) In general.--Amounts allocated under section 304(b) shall 
        be used to provide education and training services to adults--
                  (A) who are unable to obtain employment through core 
                services under subsection (a);
                  (B) who are in need of education and training 
                services in order to gain employment as a result of 
                determinations made through--
                          (i) preliminary assessments under section 
                        107(f)(1)(B) of this Act; or
                          (ii) comprehensive and specialized 
                        assessments under subsection (b)(3)(A); and
                  (C) who are unable to obtain other grant assistance 
                for such services, such as through Pell Grants 
                established under title IV of the Higher Education Act.
          (2) Delivery of services.--Such education and training 
        services shall be provided through education and training 
        providers certified in accordance with title I of this Act.
          (3) Types of services.--Such education and training services 
        may include the following:
                  (A) Basic skills training, including remedial 
                education, literacy training, and English literacy 
                program instruction.
                  (B) Occupational skills training, including training 
                for nontraditional employment.
                  (C) On-the-job training.
                  (D) Programs that combine workplace training with 
                related instruction.
                  (E) Training programs operated by the private sector.
                  (F) Skill upgrading and retraining.
                  (G) Entrepreneurial training.
                  (H) Employability training to enhance basic workplace 
                competencies.
                  (I) Customized training conducted with a commitment 
                by an employer or group of employers to employ an 
                individual upon successful completion of the training.
          (4) Additional requirements.--
                  (A) Use of skill grants.--
                          (i) In general.--Except as provided in clause 
                        (ii), education and training services under 
                        this section shall be provided through the use 
                        of skill grants in accordance with this 
                        subsection, and in accordance with section 108 
                        regarding the certification of education and 
                        training providers.
                          (ii) Exceptions.--Education and training 
                        services authorized under this title may be 
                        provided pursuant to a contract for services in 
                        lieu of a skill grant if--
                                  (I) such services are on-the-job 
                                training provided by an employer;
                                  (II) the local workforce development 
                                board determines there are an 
                                insufficient number of certified 
                                providers of education and training 
                                services in the workforce development 
                                area to accomplish the purposes of a 
                                skill grant system;
                                  (III) the local workforce development 
                                board determines that the certified 
                                providers of education and training in 
                                the workforce development area are 
                                unable to provide effective services to 
                                special participant populations; or
                                  (IV) the local workforce development 
                                board decides to enter into a direct 
                                training contract with a community 
                                based organization serving special 
                                populations.
                  (B) Linkage to occupations in demand.--Education and 
                training services under this subsection shall be 
                directly linked to occupations for which there is a 
                demand in the local workforce development area, or in 
                another area to which an adult receiving such services 
                is willing to relocate.
  (d) Additional Services.--
          (1) Supportive services.--Supportive services may be provided 
        for individuals--
                  (A) who are receiving assistance under any of 
                subsections (a) through (c); and
                  (B) who are unable to receive such services through 
                other programs providing such services.
          (2) Needs-related payments.--
                  (A) In general.--Amounts allocated under section 
                304(b) may be used to provide needs-related payments to 
                adults who are unemployed and do not qualify for (or 
                have ceased to qualify for) unemployment compensation 
                for the purpose of enabling such adults to participate 
                in education and training programs under subsection 
                (c).
                  (B) Additional eligibility requirements.--In addition 
                to the requirements contained in subparagraph (A), a 
                dislocated worker who has exhausted unemployment 
                insurance benefits shall be eligible to receive needs-
                related payments under this paragraph only if such 
                worker was enrolled in education or training by the end 
                of the 8th week of the worker's initial unemployment 
                compensation benefit period, or, if later, by the end 
                of the 8th week after the worker is informed that a 
                short-term layoff will in fact exceed 6 months.
  (e) Priority.--Local workforce development boards shall establish a 
process through which priority is given to dislocated workers and 
economically disadvantaged individuals, for receipt of services 
provided under subsections (b) and (c), in the event that funds are 
limited within the workforce development area.
  (f) Prohibition on Private Right of Action.--Nothing in this section 
shall be construed to establish a right for a participant to bring an 
action to obtain services under a program established under this 
section.
  (g) Limitations on Use of Funds.--Not more than 10 percent of the 
funds provided under this title to a local workforce development board 
may be used for administrative purposes.

SEC. 307. CORE STANDARDS, PERFORMANCE GOALS, AND MEASURES.

  (a) General Authority.--
          (1) Standards and measures.--Each State receiving a grant 
        under this title shall have developed or shall develop and 
        implement a statewide system of core standards and measures of 
        performance for programs established under this title, based 
        upon performance standards described in paragraph (2), and 
        consistent with the State's goals and objectives, and 
        benchmarking process described in the State plan required under 
        section 104.
          (2) Statewide system.--Each statewide system shall--
                  (A) establish or have established performance goals 
                to define the level of performance to be achieved by 
                adults served under this title and to evaluate the 
                quality and effectiveness of services and activities 
                under this title;
                  (B) express such goals in an objective, quantifiable, 
                and measurable form;
                  (C) establish performance indicators or benchmarks 
                that the State and local recipients of funds will use 
                in measuring or assessing progress toward achieving 
                such goals; and
                  (D) provide biennial reports to the public and to the 
                Secretary on the State's progress in achieving its 
                goals.
  (b) Requirements.--Each system developed under subsection (a) shall 
include measures of--
          (1) placement, retention, and earnings of participants in 
        unsubsidized employment, including retention and earnings at 6 
        months, and at one year after program termination, 
        respectively;
          (2) the provision of services to dislocated workers, 
        economically disadvantaged individuals, older workers, 
        individuals with disabilities, displaced homemakers, veterans, 
        and individuals with multiple barriers to employment (as 
        determined by the State), including individuals who are basic 
        skills deficient; and
          (3) acquisition of skills certificates pursuant to a skill 
        standards and skill certification system endorsed by the 
        National Skill Standards Board, once such system is 
        established.

                      Subtitle B--Federal Programs

SEC. 311. NATIONAL DISCRETIONARY GRANTS.

  (a) Grants for Dislocated Workers.--
          (1) In general.--From amounts reserved under section 
        303(a)(2) for any fiscal year, the Secretary is authorized to 
        award national discretionary grants to address major economic 
        dislocations that result from plant closures, base closures, or 
        mass layoffs.
          (2) Application.--To receive a grant under this section, an 
        eligible entity shall submit an application to the Secretary at 
        such time, in such manner, and accompanied by such information 
        as the Secretary determines is appropriate.
          (3) Eligible entities.--Grants under this section may be 
        awarded to--
                  (A) the State;
                  (B) a local workforce development board administering 
                assistance under this Act;
                  (C) employers and employer associations;
                  (D) worker-management transition assistance 
                committees and other employer-employee entities;
                  (E) representatives of employees;
                  (F) community development corporations and community-
                based organizations; and
                  (G) industry consortia.
  (b) Incentive Grants.--From amounts reserved under section 303(a)(2) 
for any fiscal year, the Secretary may provide awards to States--
          (1) to assist in the implementation of exemplary statewide 
        workforce development system designs; and
          (2) for the achievement of exceptional performance in the 
        statewide workforce development system.
SEC. 312. DISASTER RELIEF EMPLOYMENT ASSISTANCE.

  (a) In General.--From amounts reserved under section 303(a)(2) for 
any fiscal year, the Secretary may provide assistance to the Governor 
of any State within which is located an area that has suffered an 
emergency or a major disaster as defined in paragraphs (1) and (2), 
respectively, of section 102 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (referred to in this section as the 
``disaster area'').
  (b) Use of Funds.--
          (1) Projects restricted to disaster areas.--Funds made 
        available under this section--
                  (A) shall be used exclusively to provide employment 
                on projects to provide food, clothing, shelter, and 
                other humanitarian assistance for disaster victims and 
                on projects regarding demolition, cleanup, repair, 
                renovation, and reconstruction of damaged and destroyed 
                structures, facilities, and lands located within the 
                disaster area; and
                  (B) may be expended through public and private 
                agencies and organizations engaged in such projects.
          (2) Eligibility requirements.--An individual shall be 
        eligible to be offered disaster employment under this section 
        if such individual is a dislocated worker or is temporarily or 
        permanently laid off as a consequence of the disaster.
          (3) Limitations on disaster relief employment.--No individual 
        shall be employed under this part for more than 6 months for 
        work related to recovery from a single natural disaster.

SEC. 313. RESEARCH, DEMONSTRATION, EVALUATION, AND CAPACITY BUILDING.

  (a) In General.--From amounts reserved under section 303(a)(2) for 
any fiscal year, the Secretary shall establish and carry out research, 
demonstration, and capacity building activities in accordance with this 
section.
  (b) Activities.--The Secretary shall carry out the following 
activities under this section:
          (1) Research.--The Secretary shall conduct continuing 
        research, which may include studies and other methods and 
        techniques, that will aid in the solution of the employment and 
        training problems of the United States. Such studies may 
        include the extent to which individuals who participate in 
        programs established under this title achieve self-sufficiency 
        as a result of such participation, including the identification 
        by State and locality, to the extent practicable, of indicators 
        measuring such self-sufficiency.
          (2) Demonstrations.--The Secretary shall conduct pilot and 
        demonstration projects for the purpose of developing and 
        improving methods and techniques for addressing employment and 
        training needs which may include projects conducted jointly 
        with the Department of Defense to develop training programs 
        utilizing computer-based and other innovative learning 
        technologies. The Secretary may award grants and enter into 
        contracts with appropriate entities to carry out such projects.
          (3) Evaluation.--
                  (A) Activities.--
                          (i) Job training activities.--The Secretary 
                        shall provide for the continuing evaluation of 
                        activities conducted under this Act, including 
                        the cost-effectiveness of such activities in 
                        achieving the purposes of this Act.
                          (ii) Other programs.--The Secretary may 
                        conduct evaluations of other federally funded 
                        employment-related activities including 
                        programs administered under--
                                  (I) the Wagner-Peyser Act (29 U.S.C. 
                                49 et seq.);
                                  (II) the National Apprenticeship Act 
                                (29 U.S.C. 50 et seq.);
                                  (III) the Older Americans Act of 1965 
                                (42 U.S.C. 3001 et seq.); and
                                  (IV) the Federal unemployment 
                                insurance program under titles III, IX, 
                                and XII of the Social Security Act (42 
                                U.S.C. 501 et seq., 1101 et seq., and 
                                1321 et seq.).
                  (B) Effectiveness.--The Secretary shall evaluate the 
                effectiveness of programs authorized under this Act 
                with respect to--
                          (i) the statutory goals;
                          (ii) the performance standards established by 
                        the Secretary; and
                          (iii) the extent to which such programs 
                        enhance the employment and earnings of 
                        participants, reduce income support costs, 
                        improve the employment competencies of 
                        participants in comparison to comparable 
                        persons who did not participate in such 
                        programs, and to the extent feasible, increase 
                        the level of total employment over the level 
                        that would have existed in the absence of such 
                        programs.
          (4) National partnership and special training.--The Secretary 
        may award special grants to eligible entities to carry out 
        activities that are most appropriately administered at the 
        national level. Such activities may include--
                  (A) partnerships with national organizations with 
                special expertise in developing, organizing, and 
                administering employment and training services at the 
                national, State, and local levels, such as industry and 
                labor associations, public interests groups, community-
                based organizations representative of groups that 
                encounter special difficulties in the labor market, in 
                education and training; and
                  (B) activities that--
                          (i) address industry-wide skill shortages;
                          (ii) meet training needs that are best 
                        addressed on a multistate basis;
                          (iii) further the goals of increasing the 
                        competitiveness of the United States labor 
                        force; and
                          (iv) require technical expertise available at 
                        the national level to serve the needs of 
                        particular client groups that encounter 
                        significant barriers to employment and who the 
                        Secretary determines require special 
                        assistance; and
                          (v) promote and experiment with model 
                        activities, pilot projects, and demonstration 
                        projects which further the goals and purposes 
                        of this Act.
          (5) Capacity building and technical assistance.--
                  (A) In general.--The Secretary shall provide, through 
                grants, contracts, or other arrangements, staff 
                training and technical assistance to States, local 
                workforce development boards, career centers, 
                communities, business and labor organizations, service 
                providers, industry consortia, and other entities, to 
                enhance their capacity to develop and deliver effective 
                employment and training services.
                  (B) Activities.--The staff training and technical 
                assistance authorized under subparagraph (A) may 
                include--
                          (i) development of management information 
                        systems;
                          (ii) development and maintenance of a 
                        national capacity building, information and 
                        dissemination network; and
                          (iii) grants for the replication of 
                        successful employment and training models and 
                        activities.

SEC. 314. WORKFORCE SKILLS AND DEVELOPMENT LOANS.

  (a) Authorization.--
          (1) In general.--From amounts reserved under section 
        303(a)(2) for any fiscal year, the Secretary of Labor may use a 
        portion of such amounts to provide grants to States to provide 
        loans to eligible entities described in paragraph (2) to assist 
        such entities in providing skills upgrading.
          (2) Eligible entities.--An eligible entity described in this 
        paragraph is--
                  (A) an employer;
                  (B) a representative of employees;
                  (C) a business association;
                  (D) a trade organization; or
                  (E) a consortium consisting of--
                          (i) more than 1 of the entities described in 
                        subparagraphs (A) through (D); or
                          (ii) an institution of higher education (as 
                        such term is defined in section 481 of the 
                        Higher Education Act of 1965 (20 U.S.C. 1088) 
                        which continues to meet the eligibility and 
                        certification requirements under section 498 of 
                        such Act) and 1 or more of the entities 
                        described in subparagraphs (A) through (D).
  (b) Application.--The Secretary may provide a grant to a State under 
subsection (a) only if such State submits to the Secretary an 
application which contains such information as the Secretary may 
reasonably require.
  (c) Use of Amounts.--A State shall use amounts received from a grant 
under subsection (a) to establish a loan guarantee program to assist 
eligible entities described in paragraph (2) of such subsection to 
provide skills upgrading for nonmanagerial employees. In carrying out 
such program, the State shall meet the following requirements:
          (1) Establishment of reserve fund for loan guarantees.--The 
        State shall establish a reserve fund from amounts received from 
        such grant for the purpose of making commitments to guarantee 
        the payment of principal and interest on loans made by 
        financial institutions to such eligible entities to provide 
        skills upgrading for nonmanagerial employees.
          (2) Criteria for loan guarantees.--The State, in conjunction 
        with appropriate financial institutions, shall establish and 
        publish criteria for providing loan guarantees to eligible 
        entities under the program, including criteria that provides 
        for the following:
                  (A) A loan guarantee may be issued under the program 
                only if, at the time such guarantee is issued the 
                eligible entity agrees to pay as an insurance premium 
                an amount equal to 1 percent of the principal received 
                by such entity under the loan to the State's reserve 
                fund.
                  (B)(i) Subject to clause (ii), the eligible entity 
                will use amounts received from the loan to provide 
                skills upgrading for mid- and lower-level employees, 
                which may include--
                          (I) training in total quality management, 
                        statistical process control, production 
                        techniques, office automation, materials 
                        resource planning; and
                          (II) training to improve basic skills, 
                        including reading, writing, and arithmetic.
                  (ii) In providing such skills upgrading, the eligible 
                entity shall give priority to nonmanagerial employees 
                who--
                          (I) directly produce or deliver goods or 
                        services; or
                          (II) are in danger of being terminated or 
                        laid off as a result of modernization in the 
                        workplace, corporate downsizing, foreign or 
                        domestic competition, or Federal policies 
                        adversely affecting 1 or more industries.
                  (C) Amounts from a loan shall not be used to pay the 
                wages or other benefits of any employee receiving 
                assistance under the program.
          (3) Payment by state to financial institutions in cases of 
        default.--
                  (A) In general.--In accordance with criteria 
                developed by the Secretary, the State shall make 
                payments from the State's reserve fund to financial 
                institutions that have provided loans to eligible 
                entities that have defaulted on such loans for the 
                purpose of reimbursing such institutions for the amount 
                of principal and interest remaining unpaid to the 
                institutions by reason of such default.
                  (B) No full faith and credit of the united states.--
                Loans provided by financial institutions to eligible 
                entities under loan guarantee programs under this 
                section shall not be obligations of, or guaranteed in 
                any respect by, the United States.
          (4) Interest from amounts in reserve fund.--Any interest 
        earned from amounts in the State's reserve fund shall be 
        credited to such fund.
  (d) Federal and State Share.--
          (1) Federal share.--The Federal share under this section may 
        not exceed 50 percent of the total cost of the program 
        established under subsection (c) for any fiscal year.
          (2) State share.--The State share shall be provided from non-
        Federal sources and may be in cash or in-kind, fairly 
        evaluated.

SEC. 315. EMPLOYMENT, TRAINING, AND EDUCATION ASSISTANCE FOR NATIVE 
                    AMERICANS.

  (a) Authorization.--From amounts reserved under section 303(a)(2) for 
any fiscal year, the Secretary of Labor shall provide grants to, or 
enter into contracts or cooperative agreements with, Indian tribes and 
tribal organizations, tribally-controlled colleges, tribally-controlled 
postsecondary vocational institutions, Indian-controlled organizations 
serving off-reservation areas, Alaska Native village and regional 
entities serving areas as described in the Alaska Native Claims 
Settlement Act and Hawaiian Native-controlled organizations to provide 
employment, training, vocational rehabilitation, library services, and 
education assistance for Native Americans.
  (b) Transfer of Authority for Vocational Education Activities.--In 
carrying out subsection (a), the Secretary of Labor may enter into an 
agreement with the Secretary of Education to carry out any portion of 
assistance under such subsection devoted to vocational educational 
activities, including support for the United Tribes Technical College 
and Crownpoint Institute of Technology.
  (c) Consolidation of Funds.--Entities receiving assistance under 
subsection (a) may consolidate such assistance with assistance received 
from related programs in accordance with the provisions of the Indian 
Employment, Training and Related Services Demonstration Act (Public Law 
102-477).
  (d) Regulations.--The Secretary shall consult with Indian, Alaska 
Native and Hawaiian Native groups in establishing regulations to carry 
out this section, including performance standards for entities 
receiving assistance under subsection (a), taking into account the 
economic circumstances of such groups.

SEC. 316. EMPLOYMENT, TRAINING, AND EDUCATION ASSISTANCE FOR MIGRANT 
                    AND SEASONAL FARMWORKERS.

  (a) Authorization.--
          (1) In general.--From amounts reserved under section 
        303(a)(2) for any fiscal year, the Secretary of Labor shall 
        provide grants to, or enter into contracts or cooperative 
        agreements with, entities described in paragraph (2) to provide 
        employment, training, and education assistance for migrant and 
        seasonal farmworkers.
          (2) Entities described.--An entity described in this 
        paragraph is an entity the Secretary determines to have the 
        capacity to administer effectively a diversified development 
        program for migrant and seasonal farmworkers.
  (b) Use of Amounts.--An entity shall use amounts received under 
subsection (a) to provide employment, training, educational 
development, high school equivalency, postsecondary education 
assistance, vocational rehabilitation, literacy, English as a second 
language, work-based education and development, worker safety training, 
employability enhancements, emergency or other disaster relief, 
including housing, technical assistance, outreach, intake, assessment, 
follow-up, stipend support, supportive services, other needs-based 
assistance, self-employment and related business enterprise development 
education, and the management of a database on participating migrant 
and seasonal farmworkers.
  (c) Transfer of Authority for Education Activities.--In carrying out 
subsection (b), the Secretary of Labor may enter into an agreement with 
the Secretary of Education to carry out assistance as described in--
          (1) a secondary and postsecondary high school equivalency 
        program to serve migrants and seasonal farmworkers; and
          (2) a college assistance migrant program to provide outreach 
        and recruitment services for migrants and seasonal farmworkers.

 TITLE IV--ADULT EDUCATION AND FAMILY LITERACY CONSOLIDATION GRANT AND 
          LIBRARY SERVICES AND TECHNOLOGY CONSOLIDATION GRANT

SEC. 401. FINDINGS.

  The Congress finds as follows:
          (1) According to the 1990 census, 21 percent of our Nation's 
        adults (more than 38 million persons) lack a high school 
        credential or are limited English proficient.
          (2) The National Adult Literacy Survey, conducted under the 
        Adult Education Act, found that 20 percent of all adults in the 
        United States, or about 40 million people, have minimal levels 
        of literacy skills and that the lack of such skills is related 
        to unemployment, low wages, and fewer weeks worked.
          (3) The success of State efforts to reform and improve public 
        education are dependent on the ability of the United States to 
        break intergenerational cycles of illiteracy and inadequate 
        education by ensuring that parents possess a strong educational 
        foundation and, as the first and most continuous teachers of 
        their children, model for, and instill in, their children a 
        commitment to family literacy and life-long learning.
          (4) Generations of immigrants have contributed to our 
        communities and our economy, but for them to continue to do so 
        given recent technologies and the competitive global economy, 
        they must master English as rapidly as possible.
          (5) Studies have found that incarcerated adults are twice as 
        likely as nonincarcerated adults to lack a good education and 
        that such lack is a significant statistical indicator of 
        recidivism.
          (6) Certain short-term and long-term goals of the Nation may 
        not be met unless the United States improves its current system 
        of adult education and life-long learning through Federal 
        leadership.

SEC. 402. DEFINITIONS.

  As used in this title:
          (1) Correctional education agency.--The term ``correctional 
        education agency'' means an entity that provides programs for 
        criminal offenders in corrections institutions and for other 
        institutionalized individuals which include academic programs 
        for basic education, special education, bilingual or English 
        language instruction, vocational training, library development, 
        corrections education programs, guidance and counseling, and 
        other supportive services for criminal offenders which may 
        emphasize coordination of educational services with educational 
        institutions, community-based organizations of demonstrative 
        effectiveness, and the private sector, designed to provide 
        education and training.
          (2) Educationally disadvantaged adult.--The term 
        ``educationally disadvantaged adult'' means an adult who--
                  (A) demonstrates basic skills equivalent to or below 
                that of students at the fifth grade level; or
                  (B) has been placed in the lowest or beginning level 
                of an adult education program when that program does 
                not use grade level equivalencies as a measure of 
                students' basic skills.
          (3) Family literacy services.--The term ``family literacy 
        services'' means services that integrate all of the following 
        activities and are of sufficient intensity in terms of hours, 
        and of sufficient duration, to make sustainable changes in a 
        family:
                  (A) Interactive literacy activities between parents 
                and their children.
                  (B) Training for parents on how to be their 
                children's primary teacher and full partners in the 
                education of their children.
                  (C) Parent literacy training.
                  (D) Early childhood education.
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        Education.

  Subtitle A--Adult Education and Family Literacy Consolidation Grant

SEC. 411. PURPOSES.

  The purposes of this subtitle are to assist States to provide--
          (1) to adults, the basic educational skills necessary for 
        employment and self-sufficiency;
          (2) to adults who are parents, the educational skills 
        necessary to be full partners in the educational development of 
        their children;
          (3) to adults, the basic English language skills necessary to 
        participate in the civic, social, and economic life of the 
        United States; and
          (4) to adults, the opportunity to attain a high school degree 
        or its equivalent in order to permit them to pursue further 
        education and training or improve their family and work 
        situations.

                           CHAPTER 1--FUNDING

SEC. 421. RESERVATIONS FROM AMOUNTS APPROPRIATED.

  (a) National Institute for Literacy.--For any fiscal year, the 
Secretary shall reserve $4,500,000 of the amount appropriated under 
section 4(a)(3) to carry out the activities of the National Institute 
for Literacy described in section 441.
  (b) National Leadership Activities.--For any fiscal year, the 
Secretary shall reserve $4,500,000 of the amount appropriated under 
section 4(a)(3) to establish and carry out the program of national 
leadership and evaluation activities described in section 442.

SEC. 422. ALLOTMENT.

  (a) Initial Allotment.--From the sums available for the purpose of 
making grants under chapter 2 for any fiscal year, the Secretary shall 
allot--
          (1) $100,000 each to Guam, American Samoa, the Commonwealth 
        of the Northern Mariana Islands, and the Virgin Islands; and
          (2) $250,000 to each of the other States.
  (b) Additional Allotment.--
          (1) In general.--From the remainder of the sums described in 
        subsection (a) after the application of the subsection, the 
        Secretary shall allot to each State an amount which bears the 
        same ratio to such remainder as the number of qualifying adults 
        in the State bears to the number of such adults in all States.
          (2) Qualifying adult.--For purposes of this subsection, the 
        term ``qualifying adult'' means an adult who--
                  (A) is at least 16 years of age, but less than 61 
                years of age;
                  (B) is beyond the age of compulsory school attendance 
                under State law;
                  (C) does not have a certificate of graduation from a 
                school providing secondary education (or its 
                equivalent); and
                  (D) is not currently enrolled in elementary or 
                secondary school.

                      CHAPTER 2--GRANTS TO STATES

SEC. 431. REQUIREMENT TO MAKE GRANTS.

  For fiscal year 1997 and subsequent fiscal years, the Secretary shall 
make a grant to a State in an amount equal to the initial and 
additional allotments of the State for the year if the State--
          (1) has satisfied the requirements of title I and section 
        433(a)(1);
          (2) enters into a written agreement with the Secretary that 
        the State--
                  (A) will not expend the grant for any purpose other 
                than in accordance with section 432;
                  (B) will satisfy the grant requirements in section 
                433(a)(2) and 433(b); and
                  (C) will not expend the grant for the purpose of 
                supporting or providing programs, services, or 
                activities for individuals who are not adults, except 
                if such programs, services, or activities are related 
                to family literacy services.

SEC. 432. USES OF FUNDS.

  (a) State Uses of Funds.--
          (1) Grants to serve target populations.--
                  (A) In general.--Of the funds paid to a State under 
                this title for fiscal year 1998 and subsequent fiscal 
                years, 3 percent shall be distributed as performance 
                grants made by the State on a competitive basis, and 
                consistent with subsection (b) and section 433(b)(2), 
                to local service providers that have provided, during 
                the immediately preceding fiscal year, adult education 
                or family literacy services to the target populations 
                described in subparagraph (C).
                  (B) Local service providers.--The local service 
                providers referred to in subparagraph (A) may include 
                the following:
                          (i) Local educational agencies.
                          (ii) Correctional educational agencies.
                          (iii) Community-based organizations.
                          (iv) Public or private nonprofit agencies.
                          (v) Institutions of higher education.
                          (vi) Libraries.
                          (vii) Other institutions that the State 
                        determines to have the ability to provide 
                        literacy services to adults and families.
                  (C) Target populations.--The target populations 
                referred to in subparagraph (A) are the following:
                          (i) Adults with more than one barrier to 
                        self-sufficiency, such as being unemployed or 
                        an educationally disadvantaged adult.
                          (ii) Families on public assistance (as 
                        determined by the State).
                          (iii) Parents who are educationally 
                        disadvantaged adults and who have a child who 
                        is less than 8 years of age.
                          (iv) Adults who are individuals with 
                        disabilities or who have similar special needs.
          (2) Grants to local service providers.--Of the funds paid to 
        a State under this subtitle for any fiscal year that remain 
        after the application of paragraph (1), at least 85 percent 
        shall be distributed as grants made by the State on a 
        competitive basis, and consistent with subsection (b) and 
        section 433(b)(2), to local service providers to establish, 
        conduct, or expand programs, services, or activities to achieve 
        a purpose of this subtitle. Such local service providers may 
        include the local service providers described in paragraph 
        (1)(B).
          (3) Other state activities.--A State may use not more than 12 
        percent of the funds paid to the State under this subtitle for 
        any fiscal year that remain after the application of paragraph 
        (1) for one or more of the following purposes:
                  (A) The establishment or operation of professional 
                development programs to improve the quality of 
                instruction provided in local adult education and 
                literacy programs, including instruction provided by 
                volunteers.
                  (B) The provision of technical assistance to local 
                service providers.
                  (C) The provision of technology assistance to local 
                service providers to enable them to improve the quality 
                of their programs, services, and activities that 
                achieve a purpose of this subtitle, including--
                          (i) providing hardware and software;
                          (ii) paying for service connection fees 
                        associated with gaining access to computerized 
                        databases; and
                          (iii) upgrading the technological 
                        capabilities of local service providers to 
                        improve the quality of their services and to 
                        assist them in providing services on a flexible 
                        schedule that meets the needs of diverse 
                        populations.
                  (D) The support of State or regional networks of 
                literacy resource centers that--
                          (i) enhance the coordination of literacy 
                        services across public and private programs and 
                        State agencies;
                          (ii) enhance the capacity of the State and 
                        local service providers to provide literacy 
                        services through the diffusion and adoption of 
                        state-of-the-art teaching methods and 
                        technologies;
                          (iii) provide linkages between the National 
                        Institute for Literacy established under 
                        section 441 and local service providers for the 
                        sharing of literacy information, research, and 
                        resources;
                          (iv) encourage government and industry 
                        partnerships; and
                          (v) provide training and technical assistance 
                        to literacy instructors in reading instruction, 
                        the use of state-of-the-art methodologies, 
                        instructional materials, and technologies, and 
                        professional development.
                  (E) Monitoring and evaluating the quality of, and the 
                improvement in, services and activities conducted with 
                Federal financial assistance under this subtitle, 
                including carrying out section 433(a)(2).
                  (F) The support of a common management information 
                system as described in section 109.
                  (G) Carrying out other activities of statewide 
                significance that promote the purposes of this Act.
          (4) Administrative expenses.--For any fiscal year, a State 
        may use not more than 3 percent of the funds paid to the State 
        under this subtitle that remain after the application of 
        paragraph (1) or $50,000, whichever is greater, for--
                  (A) planning, administration, and interagency 
                coordination associated with a grant under this 
                subtitle; and
                  (B) support for one-stop career center systems 
                described in section 107.
  (b) Local Uses of Funds.--A State shall require that a local service 
provider that receives a grant from the State under paragraph (1) or 
(2) of subsection (a) use the grant to establish or operate one or more 
programs that provide instruction or services within one or more of the 
following categories:
          (1) Adult basic education that is designed for an adult who--
                  (A) has minimal competence in reading, writing, or 
                computation;
                  (B) is not sufficiently competent in reading, 
                writing, or computation to meet the requirements of 
                adult life in the United States; or
                  (C) is not sufficiently competent in speaking, 
                reading, or writing the English language to obtain 
                employment commensurate with the adult's intellectual 
                abilities.
          (2) Adult secondary education that is designed for an adult 
        who is literate and can function in everyday life, but who--
                  (A) has not acquired basic educational skills, 
                including reading, writing, and computation; or
                  (B) does not have a certificate of graduation from a 
                school providing education to students in grade 12, or 
                its equivalent.
          (3) English literacy instruction that is designed for an 
        adult--
                  (A) who--
                          (i) has limited ability in speaking, reading, 
                        writing, or understanding the English language 
                        and whose native language is a language other 
                        than English; or
                          (ii) lives in a family or community 
                        environment where a language other than English 
                        is the dominant language; and
                  (B) who, by reason of a condition described in 
                subparagraph (A), has sufficient difficulty reading, 
                writing, or understanding the English language that the 
                adult is unable--
                          (i) to learn successfully in a classroom 
                        where the language of instruction is English; 
                        or
                          (ii) to participate fully in the society of 
                        the United States.
          (4) Family literacy services.

SEC. 433. ADDITIONAL GRANT REQUIREMENTS.

  (a) Goals, Progress Indicators, Performance Measures.--
          (1) Planning requirements.--A State that desires to receive a 
        grant under this subtitle shall accomplish the following:
                  (A) Establish, through the collaborative process 
                described in section 103, measurable goals for 
                improving literacy levels, retention in literacy 
                programs, and long-term learning gains of individuals 
                in the State.
                  (B) Based on such goals and the performance measures 
                described in section 434, establish, through such 
                collaborative process, progress indicators to be used 
                to evaluate the performance of local service providers 
                receiving a grant under paragraph (1) or (2) of section 
                432(a).
                  (C) Describe such goals and progress indicators in 
                the State workforce development and literacy plan 
                submitted to the Secretary under section 104.
          (2) Implementation requirements.--A State that receives a 
        grant under this subtitle shall accomplish the following:
                  (A) With respect to each local service provider 
                receiving a grant under paragraph (1) or (2) of section 
                432(a), based on the goals and progress indicators 
                established under paragraph (1), measure the 
                performance measures described in section 434 and use 
                the data produced by such measurement to improve the 
                quality of services provided to program participants or 
                service recipients.
                  (B) Beginning on the date that is 2 years after the 
                first date that a local service provider receives a 
                grant under paragraph (1) or (2) of section 432(a), 
                annually assess the degree to which the provider is 
                meeting or exceeding the progress indicators applicable 
                to the provider.
                  (C) Annually report to the Secretary on the 
                performance measures described in section 434 for each 
                category described in such section.
  (b) Other Requirements.--A State that receives a grant under this 
subtitle shall ensure the following:
          (1) Expenditures of non-federal funds.--For any fiscal year 
        for which a grant is made to the State under this subtitle, the 
        State shall expend, on programs and activities relating to 
        adult education and family literacy services, an amount, 
        derived from sources other than the Federal Government, equal 
        to 25 percent of the State's initial and additional allotments 
        for the year.
          (2) Priority for planning with boards and systems.--In 
        awarding grants to local service providers under paragraph (1) 
        or (2) of section 432(a), the State shall give priority to 
        providers that demonstrate joint planning with local workforce 
        development boards and one-stop career center systems.
          (3) Equitable access.--Local educational agencies, public or 
        private nonprofit agencies, community-based organizations, 
        correctional education agencies, institutions of higher 
        education, libraries, and institutions which serve 
        educationally disadvantaged adults shall be provided direct and 
        equitable access to Federal funds provided under this subtitle 
        in accordance with this subtitle.
          (4) Payments by one-stops to local service providers.--A one-
        stop career center system in a State that refers an adult who 
        is in need of adult education or literacy services in order to 
        achieve such adult's career goals to a local service provider 
        shall pay to such provider, in accordance with the biennial 
        strategic plan of the local workforce development board 
        pursuant to which such center is established or designated, an 
        amount appropriate to pay for such services if such provider 
        renders such services and--
                  (A) is receiving a grant from the State under 
                paragraph (1) or (2) of section 432(a); or
                  (B) is not receiving such a grant but has been 
                certified by the State as eligible to receive such 
                amounts.

SEC. 434. PERFORMANCE MEASURES.

  A State that receives a grant under this subtitle for a fiscal year 
shall measure the performance in the following categories for such year 
of the programs, services, and activities carried out by each local 
service provider receiving a grant under paragraph (1) or (2) of 
section 432(a):
          (1) The percentage of adults served who, based on skills or 
        abilities acquired through such a program, service, or 
        activity--
                  (A) demonstrate skills necessary to assist their 
                children to succeed in school, such as the ability to--
                          (i) read to their children;
                          (ii) provide support to their children in the 
                        completion of homework assignments; or
                          (iii) participate on an ongoing basis in 
                        activities that support their childrens' 
                        schools;
                  (B) enrolled in institutions of higher education or 
                occupational training;
                  (C) obtained a job;
                  (D) advanced in their job; or
                  (E) performed new job requirements essential to 
                retaining their job.
          (2) The percentage of adults served who, based on skills or 
        abilities acquired through such a program, service, or 
        activity--
                  (A) obtained a high school diploma; or
                  (B) obtained a high school equivalency diploma.
          (3) The percentage of adults served who, based on skills or 
        abilities acquired through such a program, service, or 
        activity--
                  (A) register to vote;
                  (B) obtain United States citizenship; or
                  (C) seek preventive health services.
          (4) The percentage of incarcerated adults served who, based 
        on skills or abilities acquired through such a program, 
        service, or activity, during their term of incarceration or 
        upon the termination of such term--
                  (A) enrolled in job training or education programs; 
                or
                  (B) obtained employment.

                      CHAPTER 3--NATIONAL PROGRAMS

SEC. 441. NATIONAL INSTITUTE FOR LITERACY.

  (a) Establishment.--
          (1) In general.--There shall be established a National 
        Institute for Literacy (in this section referred to as the 
        ``Institute''). The Institute shall be administered under the 
        terms of an interagency agreement entered into by the Secretary 
        of Education with the Secretary of Labor and the Secretary of 
        Health and Human Services (in this section referred to as the 
        ``Interagency Group''). The Secretary may include in the 
        Institute any research and development center, institute, or 
        clearinghouse established within the Department of Education 
        whose purpose is determined by the Secretary to be related to 
        the purpose of the Institute.
          (2) Board recommendations.--The Interagency Group shall 
        consider the recommendations of the National Institute for 
        Literacy Advisory Board (in this section referred to as the 
        ``Board'') established under subsection (d) in planning the 
        goals of the Institute and in the implementation of any 
        programs to achieve such goals.
          (3) Daily operations.--The daily operations of the Institute 
        shall be carried out by the Director of the Institute appointed 
        under subsection (g).
  (b) Duties.--
          (1) In general.--The Institute shall--
                  (A) provide national leadership for the improvement 
                and expansion of the system for delivery of literacy 
                services;
                  (B) coordinate the delivery of such services;
                  (C) support the creation of new methods of offering 
                improved services;
                  (D) serve as a national resource for adult education 
                and family literacy services by providing to the public 
                the best and most current information available on the 
                subjects; and
                  (E) assist States in developing levels of 
                performance.
          (2) Authorized activities.--In order to carry out the duties 
        described in paragraph (1), the Institute may--
                  (A) establish a national electronic database of 
                information that includes--
                          (i) information on--
                                  (I) effective practices in the 
                                provision of literacy and basic skills 
                                instruction;
                                  (II) public and private literacy and 
                                basic skills programs and Federal, 
                                State, and local policies affecting the 
                                provision of literacy services at the 
                                national, State, and local levels; and
                                  (III) technical assistance, meetings, 
                                conferences, and other opportunities 
                                that lead to the improvement of 
                                literacy and basic skills services; and
                          (ii) a communication network for literacy 
                        programs, providers, and students;
                  (B) coordinate support for the provision of literacy 
                and basic skills services across Federal agencies and 
                at the State and local level;
                  (C) coordinate the support of research and 
                development on literacy and basic skills in families 
                and adults across Federal agencies and carry out basic 
                and applied research and development on topics that are 
                not being investigated by other organizations or 
                agencies;
                  (D) collect and disseminate information on methods of 
                advancing literacy that show promise of success;
                  (E) work with the National Education Goals Panel 
                established under Goals 2000: Educate America Act to 
                assist local, State, and national organizations and 
                agencies in making and measuring progress toward the 
                National Education Goals established under such Act; 
                and
                  (F) assist in the development of policy with respect 
                to literacy and basic skills.
          (3) Grants, contracts, and agreements.--The Institute may 
        enter into contracts or cooperative agreements with, or make 
        grants to, individuals, public or private institutions, 
        agencies, organizations, or consortia of such institutions, 
        agencies, or organizations to carry out the activities of the 
        Institute. Such grants, contracts, or agreements shall be 
        subject to the laws and regulations that generally apply to 
        grants, contracts, or agreements entered into by Federal 
        agencies.
  (c) Literacy Leadership.--
          (1) Fellowships.--The Institute, in consultation with the 
        Board, may award fellowships, with such stipends and allowances 
        as the Director considers necessary, to outstanding individuals 
        pursuing careers in adult education or literacy in the areas of 
        instruction, management, research, or innovation.
          (2) Use of fellowships.--Fellowships awarded under this 
        subsection shall be used, under the auspices of the Institute, 
        to engage in research, education, training, technical 
        assistance, or other activities to advance the field of adult 
        education or literacy, including the training of volunteer 
        literacy providers at the national, State, or local level.
          (3) Interns and volunteers.--The Institute, in consultation 
        with the Board, may award paid and unpaid internships to 
        individuals seeking to assist the Institute in carrying out its 
        mission. Notwithstanding section 1342 of title 31, United 
        States Code, the Institute may accept and use voluntary and 
        uncompensated services as the Institute determines necessary.
  (d) National Institute for Literacy Advisory Board.--
          (1) Establishment.--
                  (A) In general.--There shall be a National Institute 
                for Literacy Advisory Board. The Board shall consist of 
                10 individuals appointed by the President with the 
                advice and consent of the Senate from individuals who--
                          (i) are not otherwise officers or employees 
                        of the Federal Government; and
                          (ii) are representative of entities or groups 
                        described in subparagraph (B).
                  (B) Entities or groups described.--The entities or 
                groups referred to in subparagraph (A) are--
                          (i) literacy organizations and providers of 
                        literacy services, including--
                                  (I) nonprofit providers of literacy 
                                services;
                                  (II) providers of programs and 
                                services involving English language 
                                instruction; and
                                  (III) providers of services receiving 
                                assistance under this subtitle;
                          (ii) businesses that have demonstrated 
                        interest in literacy programs;
                          (iii) literacy students;
                          (iv) experts in the area of literacy 
                        research;
                          (v) State and local governments; and
                          (vi) organized labor.
          (2) Duties.--The Board shall--
                  (A) make recommendations concerning the appointment 
                of the Director and staff of the Institute;
                  (B) provide independent advice on the operation of 
                the Institute; and
                  (C) receive reports from the Interagency Group and 
                the Director.
          (3) Terms.--
                  (A) In general.--Each member of the Board shall be 
                appointed for a term of 3 years, except that the 
                initial terms for members may be 1, 2, or 3 years in 
                order to establish a rotation in which \1/3\ of the 
                members are selected each year.
                  (B) Vacancy appointments.--Any member appointed to 
                fill a vacancy occurring before the expiration of the 
                term for which the member's predecessor was appointed 
                shall be appointed only for the remainder of that term. 
                A member may serve after the expiration of that 
                members' term until a successor has taken office. A 
                vacancy in the Board shall be filled in the manner in 
                which the original appointment was made. A vacancy in 
                the Board shall not affect the powers of the Board.
          (4) Quorum.--A majority of the members of the Board shall 
        constitute a quorum but a lesser number may hold hearings. Any 
        recommendation may be passed only by a majority of its members 
        present.
          (5) Chairperson and vice chairperson.--The chairperson and 
        vice chairperson of the Board shall be elected by the members. 
        The term of office of the chairperson and vice chairperson 
        shall be 1 year.
          (6) Meetings.--The Board shall meet at the call of the 
        chairperson or a majority of its members.
  (e) Gifts, Bequests, and Devises.--The Institute may accept, 
administer, and use gifts or donations of services, money, or property, 
both real and personal.
  (f) 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.
  (g) Staff.--The Interagency Group, after considering recommendations 
made by the Board, shall appoint and fix the pay of a Director.
  (h) Applicability of Certain Civil Service Laws.--The Director and 
staff of the Institute may be appointed without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, except that 
an individual so appointed may not receive pay in excess of the maximum 
rate payable under section 5376 of title 5, United States Code.
  (i) Experts and Consultants.--The Board and the Institute may procure 
temporary and intermittent services under section 3109(b) of title 5, 
United States Code.
  (j) Report.--The Institute shall submit a biennial report to the 
Interagency Group and the Congress.

SEC. 442. NATIONAL LEADERSHIP ACTIVITIES.

  (a) In General.--The Secretary shall establish and carry out a 
program of national leadership and evaluation activities to enhance the 
quality of adult education and family literacy programs nationwide.
  (b) Required Activity.--
          (1) In general.--The program of national leadership and 
        evaluation activities under subsection (a) shall include a 
        national evaluation, conducted by the Secretary, of the 
        programs and activities carried out by States and local service 
        providers with Federal funds received under this subtitle. Such 
        evaluation shall include information on the following:
                  (A) The manner in which States and local service 
                providers use Federal funds, including the manner in 
                which States allocate such funds among such providers.
                  (B) The manner in which States establish goals and 
                performance standards and use such goals and standards 
                to manage and improve programs.
                  (C) The effectiveness of the funds used under 
                subparagraphs (B) and (C) of section 432(a)(3).
                  (D) The manner in which economically disadvantaged 
                individuals and educationally disadvantaged adults are 
                being served by States and local service providers.
                  (E) The coordination between programs and activities 
                carried out with Federal funds received under titles II 
                and III and programs and activities carried out with 
                Federal funds received under this subtitle.
                  (F) The percentage of individuals receiving a service 
                from a one-stop career center system who are referred 
                by such system to a local service provider providing 
                adult education or literacy services.
          (2) Report.--Not later than September 30, 2001, the Secretary 
        shall provide to the Congress and publicly publish the results 
        of the evaluation conducted under paragraph (1).
  (c) Authorized Activities.--
          (1) In general.--The program of national leadership and 
        evaluation activities under subsection (a) may include the 
        following:
                  (A) Assisting States in developing levels of 
                performance.
                  (B) Research and development.
                  (C) Demonstration of model and innovative programs.
                  (D) Evaluations, including independent evaluations of 
                adult education and family literacy programs carried 
                out with financial assistance received pursuant to this 
                subtitle.
                  (E) Data collection.
                  (F) Professional development.
                  (G) Technical assistance to States and local service 
                providers receiving Federal financial assistance 
                pursuant to this subtitle.
                  (H) Making grants to State or regional networks of 
                literacy resource centers described in section 
                432(a)(3)(D).
                  (I) Other activities to enhance the quality of adult 
                education and family literacy programs nationwide.
          (2) Grants, contracts, and cooperative agreements.--The 
        Secretary may carry out the activities described in paragraph 
        (1) directly or through grants, contracts, and cooperative 
        agreements.

    Subtitle B--Library Services and Technology Consolidation Grant

SEC. 451. PURPOSES.

  The purposes of this subtitle are--
          (1) to consolidate Federal library service programs;
          (2) to improve public access to information through 
        electronic networks; and
          (3) to provide linkages among and between libraries and one-
        stop career center systems.

SEC. 452. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated to carry out 
this subtitle $110,000,000 for each of the fiscal years 1997 through 
2002.
  (b) Advance Notice of Funding.--For the purpose of affording adequate 
notice of funding available under this subtitle, an appropriation to 
carry out this subtitle is authorized to be included in an 
appropriation Act for the fiscal year preceding the fiscal year for 
which such appropriation is first available for obligation.

SEC. 453. ALLOTMENTS.

  (a) Initial Allotments.--
          (1) In general.--From the sums appropriated under section 452 
        for any fiscal year, the Secretary shall allot--
                  (A) $40,000 each to Guam, American Samoa, the 
                Commonwealth of the Northern Mariana Islands, and the 
                Virgin Islands; and
                  (B) $200,000 to each of the other States.
          (2) Ratable reduction.--If the sums appropriated under 
        section 452 for any fiscal year are insufficient to pay all of 
        the allotments under paragraph (1), each such allotment shall 
        be ratably reduced.
  (b) Additional Allotments.--
          (1) In general.--From the remainder of the sums appropriated 
        under section 452 for any fiscal year after the application of 
        subsection (a), the Secretary shall allot to each State an 
        amount which bears the same ratio to such remainder as the 
        population of the State bears to the population of all States.
          (2) Determination of population of states.--For the purpose 
        of this subsection, the population of each State, and the total 
        population of all States, shall be determined by the Secretary 
        on the basis of the most recent census data available to the 
        Secretary, and the Secretary shall use for such purpose, if 
        available, the annual interim current census data produced by 
        the Secretary of Commerce pursuant to section 181 of title 13, 
        United States Code.

SEC. 454. GRANTS TO STATES.

  (a) In General.--The Secretary shall make a grant for a fiscal year 
to a State if the State--
          (1) has submitted to the Secretary for the year an annual 
        application that has been approved by the Secretary under 
        section 456; and
          (2) has entered into a written agreement with the Secretary 
        that--
                  (A) the State will provide 100 percent of the funds 
                paid to the State under this subtitle for the year to 
                the State library administrative agency for the State;
                  (B) such agency will be required to use such funds to 
                carry out activities that--
                          (i) are described in such annual application;
                          (ii) achieve the purposes of this subtitle; 
                        and
                          (iii) satisfy the requirements of section 
                        455;
                  (C) there will be available from State and local 
                sources for expenditure by such agency to carry out 
                such activities an amount that equals or exceeds 25 
                percent of the total cost (as determined by the 
                Secretary) of carrying out such activities for the 
                year; and
                  (D) such agency has the fiscal and legal authority 
                and capability to administer all aspects of such 
                activities.
  (b) Amount of Grants.--The amount of a grant to a State under 
subsection (a) for a fiscal year shall equal the lesser of the 
following:
          (1) The sum of the initial and additional allotments of the 
        State for the year.
          (2) 75 percent of the total cost (as determined by the 
        Secretary) of carrying out the activities described in 
        subsection (a)(2)(B) for the year.

SEC. 455. USES OF FUNDS.

  (a) In General.--Of the funds provided to a State library 
administrative agency under section 454(a)(2)(A), the agency shall 
expend at least 97 percent for one or more of the following purposes:
          (1) Electronically connecting libraries with one-stop career 
        center systems designated or established under section 107 and 
        local service providers receiving grants under paragraph (1) or 
        (2) of section 432(a).
          (2) Establishing or enhancing linkages among libraries.
          (3) Assisting libraries in accessing information through 
        electronic networks.
          (4) Encouraging libraries in different Federal, State, and 
        local jurisdictions, and different types of libraries, to 
        establish consortia and share resources.
          (5) Paying costs for libraries to acquire or share computer 
        systems and telecommunications technologies.
          (6) Improving library and information services for 
        individuals who have difficulty using a library or who need 
        special library materials or services, including individuals 
        under the age of 18.
  (b) Administrative Expenses.--In any fiscal year, a State library 
administrative agency may use not more than 3 percent of the funds 
provided to the agency under section 454(a)(2)(A) for planning, 
administration, evaluations, and interagency coordination associated 
with a grant under this subtitle.

SEC. 456. ANNUAL APPLICATIONS.

  (a) Submission.--A State that desires to receive a grant under this 
subtitle for a fiscal year shall submit to the Secretary, in such form 
and manner and before such deadline as the Secretary shall specify in 
regulations, an application for such year. Such application shall--
          (1) establish goals, and specify priorities, for the State 
        consistent with the purposes of this subtitle;
          (2) describe activities that are consistent with such goals 
        and priorities, the purposes of this subtitle, and the 
        requirements of section 455 that the State library 
        administrative agency will carry out during such year using 
        such grant;
          (3) describe the procedures that such agency will use to 
        carry out such activities;
          (4) describe the methodology that such agency will use to 
        evaluate the success of such activities in achieving such goals 
        and meeting such priorities;
          (5) describe procedures that such agency will use to involve 
        libraries and library users throughout the State in policy 
        decisions regarding implementation of this subtitle; and
          (6) provide assurances satisfactory to the Secretary that 
        such agency will make such reports, in such form and containing 
        such information, as the Secretary may reasonably require to 
        carry out this subtitle and to determine the extent to which 
        funds provided under this subtitle have been effective in 
        carrying out its purposes.
  (b) Approval.--
          (1) In general.--The Secretary shall approve each application 
        submitted under subsection (a) that satisfies the requirements 
        of the subsection.
          (2) Rights of states upon disapproval.--If the Secretary 
        determines that an application submitted by a State under 
        subsection (a) does not satisfy the requirements of such 
        subsection, the Secretary shall--
                  (A) immediately notify the State of such 
                determination and the reasons for such determination; 
                and
                  (B) offer the State an opportunity to revise its 
                application to correct any deficiencies.

           TITLE V--AMENDMENTS TO REHABILITATION ACT OF 1973

       Subtitle A--Vocational Rehabilitation Consolidation Grant

                      CHAPTER 1--TRANSITION PERIOD

SEC. 501. TRANSITION.

  With respect to the amendment made by section 511(4) to title I of 
the Rehabilitation Act of 1973, the Secretary of Education, acting 
through the Commissioner of the Rehabilitation Services Administration, 
shall administer the amendment in accordance with the following:
          (1) During fiscal year 1996, the Secretary shall develop 
        administrative policies for implementing the amendment.
          (2) During the fiscal years 1997 and 1998, the Secretary 
        shall begin implementing the amendment in accordance with 
        paragraph (4).
          (3) The Secretary shall ensure that, by the first day of 
        fiscal year 1999, the amendment is fully implemented.
          (4) For purposes of paragraph (2), the Secretary shall ensure 
        that, before the first day of fiscal year 1999, the following 
        requirements, administered as conditions on the receipt of 
        grants under such title, have been met:
                  (A) The States have complied with section 103(b)(4) 
                of such title (as amended by section 511) regarding the 
                participation of certain providers.
                  (B) The States have established policies and made 
                arrangements for the operation of the system of 
                vouchers described in section 103(c) of such title, 
                including with respect to the reimbursement of 
                providers.
                  (C) The States have established policies and made 
                arrangements under section 103(b)(12) of such title 
                regarding the training of the management and staff of 
                one-stop career centers with respect to individuals 
                with disabilities.
                  (D) The States have established policies and made 
                arrangements under section 104 of such title regarding 
                the establishment of such centers, including providing 
                for the significant participation of community-based 
                providers in the program carried out by the State 
                pursuant to such title.
                  (E) Such other requirements under the amendment as 
                the Secretary determines to be appropriate.
          (5)(A) Notwithstanding the amendment, during the fiscal years 
        1996 through 1998, the provisions of title I of the 
        Rehabilitation Act of 1973 that were in effect on the day 
        before the date of the enactment of this Act continue to be in 
        effect, subject to paragraphs (1) through (4). In implementing 
        the amendment, the Secretary shall seek to avoid unnecessarily 
        disrupting the provision of services under such title to 
        individuals who, as of the date of the enactment of this Act, 
        were receiving services pursuant to an individualized plan 
        under such title.
          (B) On and after the first day of fiscal year 1999, the 
        provisions referred to in the first sentence of subparagraph 
        (A) do not have any legal effect.

      CHAPTER 2--REVISION OF TITLE I OF REHABILITATION ACT OF 1973

SEC. 511. REVISION OF TITLE I.

  (a) In General.--Effective October 1, 1995, the Rehabilitation Act of 
1973 (29 U.S.C. 701 et seq.) is amended--
          (1) by transferring section 112 from the current placement of 
        the section;
          (2) by redesignating such section as section 510;
          (3) by adding such section at the end of title V; and
          (4) by amending title I to read as follows:

             ``TITLE I--VOCATIONAL REHABILITATION SERVICES

``SEC. 100. PURPOSE.

  ``The purpose of this title is to assist States in making available 
to individuals with disabilities a program of employment, training, and 
rehabilitation services that is consistent with their strengths, 
resources, priorities, concerns, abilities, and capabilities; that 
maximizes individuals' control over their vocational and career 
choices; and that is in accordance with the goal of assuring equality 
of opportunity, full participation, independent living, and economic 
self-sufficiency for such individuals.

``SEC. 101. FORMULA GRANTS.

  ``(a) In General.--
          ``(1) Formula grants.--In the case of each State that submits 
        to the Secretary a workforce development and literacy plan for 
        fiscal year 1999 or any subsequent fiscal year that meets the 
        requirement of section 104 of the Consolidated and Reformed 
        Education, Employment, and Rehabilitation Systems Act, the 
        Secretary shall make a grant for the year to the State as the 
        Federal share of carrying out the purposes specified in this 
        title. The grant shall consist of the allotment determined for 
        the State under section 107.
          ``(2) Conditions for grant.--A State may receive a grant 
        under paragraph (1) for a fiscal year only if the State meets 
        the conditions described in this title for the State for the 
        fiscal year.
  ``(b) Administrator of Federal Program.--The Secretary shall carry 
out this title acting through the Commissioner of the Rehabilitation 
Services Administration, except as indicated otherwise.
  ``(c) Rule of Construction.--The purpose specified in section 100 
shall be carried out only in accordance with the other provisions of 
this title.
  ``(d) Funding.--
          ``(1) Authorization of appropriations.--For the purpose of 
        carrying out this title, there are authorized to be 
        appropriated such sums as may be necessary for each of the 
        fiscal years 1999 through 2002, except that the amount to be 
        appropriated for a fiscal year shall not be less than the 
        amount of the appropriation under this subsection for the 
        immediately preceding fiscal year, plus the amount of the 
        Consumer Price Index addition determined under paragraph (2) 
        for the immediately preceding fiscal year.
          ``(2) Adjustments pursuant to consumer price index.--
                  ``(A) Not later than November 15 of each fiscal year, 
                the Secretary of Labor shall publish in the Federal 
                Register the percentage change in the Consumer Price 
                Index published for October of the preceding fiscal 
                year and October of the fiscal year in which such 
                publication is made.
                  ``(B) If in any fiscal year the percentage change 
                published under subparagraph (A) indicates an increase 
                in the Consumer Price Index, then the amount to be 
                appropriated under paragraph (1) for the subsequent 
                fiscal year shall be at least the amount appropriated 
                for the fiscal year in which the publication is made 
                under subparagraph (A) increased by such percentage 
                change.
                  ``(C) If in any fiscal year the percentage change 
                published under subparagraph (A) does not indicate an 
                increase in the Consumer Price Index, then the amount 
                to be appropriated under paragraph (1) for the 
                subsequent fiscal year shall be at least the amount 
                appropriated for the fiscal year in which the 
                publication is made under subparagraph (A).
                  ``(D) For purposes of this paragraph, the term 
                `Consumer Price Index' means the Consumer Price Index 
                for All Urban Consumers, published monthly by the 
                Bureau of Labor Statistics.
          ``(3) Automatic extension of authorization.--
                  ``(A) Unless, in the regular session that ends prior 
                to the beginning of the last fiscal year for which an 
                authorization of appropriations is provided in 
                paragraph (1), legislation has been enacted that has 
                the effect of extending such authorization, such 
                authorization is automatically extended for one 
                additional year.
                  ``(B) The amount authorized to be appropriated for 
                the additional fiscal year described in subparagraph 
                (A) shall be an amount equal to the amount appropriated 
                for such program for fiscal year 2002, plus the amount 
                of the Consumer Price Index addition determined under 
                paragraph (2) for the immediately preceding fiscal 
                year.
                  ``(C) In any case where the Commissioner is required 
                under an applicable statute to carry out certain acts 
                or make certain determinations that are necessary for 
                the continuation of the program authorized by this 
                title, and such acts or determinations are required 
                during the last fiscal year for which an authorization 
                of appropriations is provided in paragraph (1), such 
                acts and determinations shall be required during any 
                fiscal year for which subparagraph (A) is in operation.

``SEC. 102. ALLOCATION WITHIN STATE OF ADMINISTRATIVE RESPONSIBILITIES.

  ``(a) In General.--For purposes of section 101(a), a State will--
          ``(1) subject to subsection (b), reserve not more than 20 
        percent of the grant under such section for the fiscal year 
        involved for carrying out the responsibilities of a State 
        administrative agent under section 103; and
          ``(2) reserve not less than 80 percent of the grant for 
        carrying out the responsibilities under section 104 of local 
        workforce development boards and one-stop career centers with 
        respect to workforce development areas.
  ``(b) Additional State Responsibilities.--Amounts reserved by a State 
under subsection (a)(1) may be expended by the State administrative 
agent to carry out responsibilities that otherwise would be carried out 
under section 104 by local workforce development boards or one-stop 
career centers, if the State determines that such expenditures are 
justified to make available goods and services that could not otherwise 
be obtained within a local workforce development area, to provide 
services to individuals unable to utilize the one-stop career centers, 
or to otherwise ensure the efficient and equitable provision in the 
State of services under this title, including the provision of services 
for individuals in rural areas.
  ``(c) Certain Definitions.--For purposes of this Act, the terms 
`State administrative agent', `local workforce development area', 
`local workforce development board', and `one-stop career center' have 
the meanings given such terms in sections 105 through 108, 
respectively, of the Consolidated and Reformed Education, Employment, 
and Rehabilitation Systems Act.

``SEC. 103. RESPONSIBILITIES OF STATE ADMINISTRATIVE AGENT.

  ``(a) State Administrative Agent.--In carrying out the requirements 
of the Consolidated and Reformed Education, Employment, and 
Rehabilitation Systems Act, a Governor may designate--
          ``(1) one State administrative agent to be responsible for 
        carrying out this title for individuals who are blind; and
          ``(2) a different State administrative agent to carry out the 
        remaining responsibilities in this title.
  ``(b) Responsibilities.--For purposes of section 101(a) and the 
operation in a State of the program under this title:
          ``(1) This subsection, and the subsequent provisions of this 
        section, will be carried out by State administrative agents 
        designated by the Governor in accordance with subsection (a), 
        through the collaborative process established under section 103 
        of the Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act.
          ``(2)(A) The State will provide to the public an explanation 
        of the methods by which the State will provide vocational 
        rehabilitation services (as defined in section 104(b))--
                  ``(i) to all eligible individuals (as defined in 
                section 105(d)); and
                  ``(ii) within all local workforce delivery areas in 
                the State.
          ``(B) In the event that such services cannot be provided to 
        all eligible individuals who apply for the services, the State 
        will show and provide the justification for the order to be 
        followed in selecting individuals to whom the services will be 
        provided.
          ``(C) The order of selection under subparagraph (B) will be 
        determined on the basis of serving first those individuals with 
        the most severe disabilities, in accordance with criteria 
        established by the State.
          ``(3) The State will establish guidelines providing that, in 
        the case of an individual to whom the State will provide a 
        service (in accordance with the order of selection under 
        paragraph (2) and the assessment of needs under section 
        104(c)(1)), the individual will have the option of receiving 
        the service from a provider designated by the center or from a 
        provider selected by the individual pursuant to vouchers under 
        subsection (c).
          ``(4) Pursuant to section 109 of the Consolidated and 
        Reformed Education, Employment, and Rehabilitation Systems Act, 
        the State will make significant efforts to encourage the 
        participation in the State program of community-based private 
        providers, with special consideration given to providers who 
        have received funds under this Act regarding projects with 
        industry or supported employment services, or under the Act 
        commonly known as the Javits-Wagner-O'Day Act (41 U.S.C. 46 et 
        seq.) for employment and training services.
          ``(5) The State will establish provisions to govern 
        determinations under section 105 (relating to the eligibility 
        of individuals).
          ``(6) The State will establish standards to govern the 
        conduct under section 104(c)(1) of assessments of need, 
        including the development of a methodology that will be applied 
        in a reasonably uniform manner to all individuals for whom such 
        assessments are conducted, and that (subject to the order of 
        selection under paragraph (2)) will be designed to prevent 
        substantial disparities, among individuals with comparable 
        circumstances, in the monetary value of the services to be 
        provided pursuant to the assessments.
          ``(7)(A) The State will establish procedures through which an 
        individual may request and obtain an impartial review, 
        utilizing an impartial hearing officer, of whether standards 
        for determinations of eligibility for services, assessments of 
        vocational rehabilitation needs, and development of 
        individualized rehabilitation and employment plans under this 
        title were correctly applied to the individual by the one-stop 
        career center involved.
          ``(B) The State will designate a number of days (applied 
        uniformly to all individuals) within which review under 
        subparagraph (A) will be conducted once a request for such 
        review is made by an individual, subject to subparagraph (C).
          ``(C)(i) The State will provide that there may be an informal 
        hearing, mediation, or alternatives to such review, if agreed 
        upon by the individual and the one-stop career center involved.
          ``(ii) The State will provide that if, in a process utilized 
        under clause (i) by an individual, there is a not a final 
        disposition of the matter involved, review under subparagraph 
        (A) will remain available to the individual.
          ``(8) The State will ensure that vocational rehabilitation 
        services under this title, and related core services, are 
        provided by personnel who are qualified to provide the services 
        involved. For purposes of the preceding sentence, the term 
        `core services' has the meaning indicated for such term under 
        title I of the Consolidated and Reformed Education, Employment, 
        and Rehabilitation Systems Act.
          ``(9) The State will establish plans, policies, and 
        procedures to be followed in carrying out the program under 
        this title in the State (including entering into a formal 
        interagency cooperative agreement with education officials 
        responsible for the provision of a free appropriate public 
        education to students who are individuals with disabilities). 
        The State will ensure that such plans, policies, and procedures 
        are designed in accordance with the following:
                  ``(A)(i) To facilitate the development and 
                accomplishment of the goals and objectives described in 
                clause (ii) (including the specification of plans for 
                coordination with the educational agencies in the 
                provision of transition services), to the extent that 
                the goals and objectives are included in an 
                individualized education program of a student.
                  ``(ii) The goals and objectives referred to in clause 
                (i) are long-term rehabilitation goals; intermediate 
                rehabilitation objectives; and goals and objectives 
                related to enabling a student to live independently 
                before the student leaves a school setting.
                  ``(B) To facilitate the transition from the provision 
                of a free appropriate public education under the 
                responsibility of an educational agency to the 
                provision of vocational rehabilitation services under 
                this title, including the specification of plans for 
                coordination with educational agencies in the provision 
                of transition services to an individual.
                  ``(C) To provide for--
                          ``(i) provisions for determining State lead 
                        agencies and qualified personnel responsible 
                        for transition services;
                          ``(ii) procedures for outreach to and 
                        identification of youth in need of such 
                        services; and
                          ``(iii) a timeframe for evaluation and 
                        follow-up of youth who have received such 
                        services.
          ``(10) The State will provide for coordination and working 
        relationships with the Statewide Independent Living Council 
        established under section 705 and independent living centers 
        within the State.
          ``(11) The State will provide for interagency cooperation 
        with, and the utilization of the services and facilities of, 
        the State agencies administering the State's public assistance 
        programs, and other programs for individuals with disabilities.
          ``(12) With respect to the one-stop career centers operated 
        pursuant to section 104, the State will provide for the 
        appropriate training of the management and staff of the centers 
        regarding the effective provision of services to individuals 
        with disabilities.
          ``(13) The State will provide technical assistance to local 
        boards, one-stop career centers, and providers relating to the 
        effective provision of vocational rehabilitation services under 
        this title, including the effective development of 
        individualized rehabilitation and employment plans, and will 
        ensure that such technical assistance is provided through 
        appropriate means.
  ``(c) Availability of Voucher System Regarding Services.--For 
purposes of section 101(a) and the operation in a State of the program 
under this title:
          ``(1) The State will provide for the establishment of a 
        system to carry out this subsection.
          ``(2) In the case of an eligible individual who (in 
        accordance with the order of selection under subsection (b)(2) 
        and the assessment of needs under section 105(b)(2)(A)) will 
        receive vocational rehabilitation services under this title, 
        the one-stop career center involved will, upon request of the 
        individual, provide to the individual vouchers in accordance 
        with this subsection.
          ``(3) Vouchers under this subsection will enable such 
        individual to obtain the vocational rehabilitation services 
        involved from providers selected by the individual from among a 
        list of providers approved by the State for such purpose in 
        accordance with section 109 of the Consolidated and Reformed 
        Education, Employment, and Rehabilitation Systems Act.
          ``(4) The monetary value of a voucher provided to the 
        individual for a particular type of service will be calculated 
        at a fair market value.
          ``(5) To the extent practicable, the list of providers under 
        paragraph (3) will provide for the availability within each 
        local workforce development area of a broad range of services.
  ``(d) State Options.--With respect to compliance with this section, a 
State may, in the discretion of the State, expend a grant under section 
101 for the following:
          ``(1) To disseminate findings from research regarding 
        vocational rehabilitation services, after consideration of 
        requests from local workforce development boards and one-stop 
        career centers regarding the types of information needed by 
        such boards and centers.
          ``(2) To conduct demonstration projects regarding 
        improvements with respect to vocational rehabilitation 
        services, subject to providing the results of such projects to 
        the Commissioner and as appropriate disseminating the results 
        within the State.
  ``(e) Core Standards, Performance Goals, and Measures.--For purposes 
of section 101(a):
          ``(1) The State involved will develop and implement a 
        statewide system of core standards and measures of performance 
        for programs established under this title, based upon 
        performance standards described in paragraph (3), and 
        consistent with the State's goals and objectives and the 
        benchmarking process described in the workforce development and 
        literacy plan submitted by the State under section 104 of the 
        Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act.
          ``(2) The statewide system will--
                  ``(A) establish performance goals to define the level 
                of performance to be achieved by individuals served 
                under this title and to evaluate the quality and 
                effectiveness of services and activities under this 
                title;
                  ``(B) express such goals in an objective, 
                quantifiable, and measurable form;
                  ``(C) establish performance indicators or benchmarks 
                that the State and local recipients of funds will use 
                in measuring or assessing progress toward achieving 
                such goals; and
                  ``(D) provide biennial reports to the public and to 
                the Secretary on the State's progress in achieving its 
                goals.
          ``(3) The statewide system will include measures of--
                  ``(A) placement, retention, and earnings of 
                participants in integrated employment, including 
                retention and earnings at 6 months, and at 1 year after 
                program termination, respectively;
                  ``(B) the percentage of individuals served who had 
                severe disabilities, including those individuals 
                determined to have a disability under title II or title 
                XVI of the Social Security Act; and
                  ``(C) other relevant measures of program performance 
                included in the standards and indicators promulgated by 
                the Commissioner under sections 621 and 106 (relating 
                to projects with industry, and relating to evaluation 
                standards and indicators for vocational rehabilitation, 
                respectively), as such sections were in effect for 
                fiscal year 1995.
``SEC. 104. RESPONSIBILITIES FOR LOCAL BOARDS AND SERVICE CENTERS.

  ``(a) Provision of Vocational Rehabilitation Services.--For purposes 
of section 101(a) and the operation in a State of the program under 
this title:
          ``(1) This section will be carried out by the one-stop career 
        centers in the State, with each such center acting under the 
        guidance of the local workforce development board for the local 
        workforce area within which the center operates. Such centers 
        will provide services under this section directly or through 
        contract.
          ``(2) In accordance with the order of selection under section 
        103(b)(2), a one-stop career center will, in expending amounts 
        provided to the center from a grant under section 101, carry 
        out the following:
                  ``(A) Make determinations under section 105 of the 
                eligibility of individuals for vocational 
                rehabilitation services (as defined in subsection (b)).
                  ``(B) Provide for vocational rehabilitation services 
                for eligible individuals.
                  ``(C) In the case of individuals with severe 
                disabilities, conduct outreach and intake activities 
                for such individuals who are not able to directly 
                access the one-stop career centers because of the 
                nature of their disabilities.
          ``(3) A one-stop career center will, in expending amounts 
        provided to the center from a grant under section 101, make 
        vocational rehabilitation services available at a variety of 
        locations and, as appropriate for particular populations, in a 
        variety of environments.
  ``(b) Definition.--For purposes of this title, the term `vocational 
rehabilitation services' means such goods or services for eligible 
individuals as are--
          ``(1) necessary to render the individuals employable and 
        achieve an employment outcome; and
          ``(2) provided in response to needs that arise, to a 
        significant extent, from the disability involved and do not 
        duplicate, to any significant extent, the core services 
        available under title I of the Consolidated and Reformed 
        Education, Employment, and Rehabilitation Systems Act.
  ``(c) Certain Services.--For purposes of section 101(a), the 
vocational rehabilitation services available through one-stop career 
centers will include the following:
          ``(1) An assessment of the needs of eligible individuals for 
        such services.
          ``(2) Development, in accordance with section 105(b)(2), of 
        an individualized rehabilitation and employment plan for the 
        purpose of identifying employment goals, appropriate 
        intermediate rehabilitation objectives, and an appropriate 
        combination of goods and services for the individual to achieve 
        the employment goals.
          ``(3) Counseling, guidance, and work-related placement 
        services for individuals with disabilities, including job 
        search assistance, placement assistance, job retention 
        services, personal assistance services, and follow-up, follow-
        along, and specific postemployment services necessary to assist 
        such individuals to maintain, regain, or advance in employment.
          ``(4) Vocational and other training services for individuals 
        with disabilities, including personal and vocational 
        adjustment, books, or other training materials, and such 
        services to the families of such individuals as are necessary 
        to the adjustment or rehabilitation of such individuals.
          ``(5) Rehabilitation technology services.
          ``(6) Supported employment services.
          ``(7) Physical and mental restoration services.
          ``(8) Interpreter services for individuals who are deaf, and 
        reader services for individuals who are blind.
          ``(9) Rehabilitation teaching services and orientation and 
        mobility services for individuals who are blind.
          ``(10) Referral and other services designed to assist 
        individuals with disabilities in securing needed services from 
        other agencies through agreements developed under section 
        103(b)(10), if such services are not available under this Act.
          ``(11) Transportation in connection with the rendering of any 
        vocational rehabilitation service.
          ``(12) Telecommunications, sensory, and other technological 
        aids and devices.
          ``(13) On-the-job, or other related personal-assistance 
        services, provided while eligible individuals are receiving 
        other vocational rehabilitation services under this title.
  ``(d) Certain Arrangements.--For purposes of section 101(a), a one-
stop career center will, with respect to the provision of vocational 
rehabilitation services to individuals with the most severe 
disabilities, provide for necessary arrangements with community-based 
providers, including arrangements regarding supported employment 
services and extended services, periodic reviews of individuals placed 
in extended employment, and services to promote movement from extended 
employment to integrated employment.
  ``(e) Optional Provision of Other Services.--For purposes of this 
title, a one-stop career center may provide such vocational 
rehabilitation services in addition to the services specified in 
subsection (c) as the center determines to be appropriate.
  ``(f) Allocation for Core Services.--For purposes of section 101(a):
          ``(1) With respect to a fiscal year, a local workforce 
        development board receiving amounts from a grant under section 
        101 will reserve an amount for the provision of core services 
        under title I of the Consolidated and Reformed Education, 
        Employment, and Rehabilitation Systems Act.
          ``(2) The amount so reserved will be based on the number of 
        eligible individuals with disabilities in the local workforce 
        development area and the costs of training employees of the 
        one-stop career centers to provide high-quality services to 
        individuals with disabilities.
  ``(g) Performance Payments Regarding Vouchers.--For purposes of 
section 101(a):
          ``(1) The local workforce development board involved will 
        ensure that, in providing for the payment of services provided 
        pursuant to vouchers, a portion of the total payment is 
        withheld from the provider until the delivery of the services 
        involved is completed in reasonable accordance with the outcome 
        designated for the service pursuant to a prior understanding 
        with the provider.
          ``(2) In the case of education, training, and placement 
        services that are designed to lead to an employment outcome, a 
        portion of the total payment will be withheld from the provider 
        until--
                  ``(A) the participant has successfully completed the 
                training; and
                  ``(B) the participant has been employed, and has 
                retained employment for a period of not less than 90 
                days.
  ``(h) Payor of Last Resort Regarding Medical Services and Educational 
Assistance.--For purposes of section 101(a), a State will not expend a 
grant under section 101 to pay for training services in institutions of 
higher education, or to pay for medical services, unless significant 
efforts have been made to secure payments, in whole or in part, from 
other sources, except that such efforts are not required if making the 
efforts would delay the provision of such services to any eligible 
individual who is at extreme medical risk, or if making the efforts 
would result in the loss of a job placement that (but for the efforts) 
would be immediately available to an eligible individual.

``SEC. 105. ELIGIBLE INDIVIDUAL.

  ``(a) In General.--For purposes of section 101:
          ``(1) An individual will not receive vocational 
        rehabilitation services under this title unless the 
        individual--
                  ``(A) is an individual with a disability under 
                section 7(8)(A); and
                  ``(B) requires vocational rehabilitation services to 
                prepare for, enter, engage in, or retain gainful 
                employment.
          ``(2) If the individual has a disability or is blind as 
        determined pursuant to title II or title XVI of the Social 
        Security Act, the individual will be considered to have--
                  ``(A) a physical or mental impairment which for such 
                individual constitutes or results in a substantial 
                impediment to employment under section 7(8)(A)(i); and
                  ``(B) a severe physical or mental impairment which 
                seriously limits one or more functional capacities in 
                terms of an employment outcome under section 
                7(15)(A)(i).
          ``(3) It will be presumed that an individual can benefit in 
        terms of an employment outcome from vocational rehabilitation 
        services for purposes of section 7(8)(A)(ii), unless the one-
        stop career center involved can demonstrate by clear and 
        convincing evidence that such individual is incapable of 
        benefiting from vocational rehabilitation services in terms of 
        an employment outcome.
  ``(b) Process.--For purposes of section 101(a), a State will ensure 
that, subject to the order of selection under section 102(b)(2), the 
following applies to an individual:
          ``(1) Once the individual makes a request in person for a 
        determination of eligibility:
                  ``(A) A qualified rehabilitation adviser will be made 
                available to the individual regarding the process of 
                obtaining services under this title.
                  ``(B) An initial interview will be conducted, 
                followed by an initial assessment.
                  ``(C) A final determination will be made not later 
                than 30 days after the request (subject to the 
                cooperation of the individual in the process of 
                determination).
                  ``(D) The determination of eligibility will be based 
                on the review of existing data described in clause (i) 
                of section 7(22)(A), and, to the extent necessary, the 
                preliminary assessment described in clause (ii) of such 
                section.
                  ``(E) If it is determined that the individual is not 
                an eligible individual, the individual will be provided 
                a written statement explaining the following:
                          ``(i) The basis of the determination.
                          ``(ii) The availability of impartial review 
                        under section 103(b)(7).
                          ``(iii) The availability of services under 
                        the client assistance program under section 
                        510.
          ``(2)(A) If it is determined that the individual is an 
        eligible individual--
                          ``(i) the needs of the individual for 
                        vocational rehabilitation services will be 
                        assessed; and
                          ``(ii) subject to subparagraph (D), an 
                        individualized rehabilitation and employment 
                        plan will be developed for the individual 
                        regarding the provision of services pursuant to 
                        clause (i).
          ``(B) The plan under subparagraph (A) will be developed and 
        mutually agreed upon by the individual and an appropriate staff 
        member of the one-stop career center involved.
          ``(C) A plan under subparagraph (A) is individualized if the 
        plan is consistent with the unique strengths, resources, 
        priorities, concerns, abilities, and capabilities of the 
        individual for whom the plan is developed.
          ``(D) A plan under subparagraph (A) is not required for an 
        individual if the individual signs a waiver stating that such a 
        plan is not necessary for the individual.
  ``(c) Rule of Construction.--This title may not be construed as 
establishing an entitlement in any individual.
  ``(d) Definition.--For purposes of this title, the term `eligible 
individual' means an individual described in subsection (a)(1).

``SEC. 106. STATE REHABILITATION ADVISORY COUNCIL.

  ``(a) In General.--For purposes of section 101(a):
          ``(1) A State will establish a State Rehabilitation Advisory 
        Council (referred to in this section as the `Council') in 
        accordance with this section.
          ``(2) The Council will be composed of the following:
                  ``(A) Representatives of organizations within the 
                State providing services to individuals with 
                disabilities and their families, including 
                representatives of the client assistance program under 
                section 510.
                  ``(B) Representatives of business, industry, and 
                labor.
                  ``(C) Representatives of disability advocacy groups 
                representing a cross section of--
                          ``(i) individuals with physical, cognitive, 
                        sensory, and mental disabilities; and
                          ``(ii) parents, family members, guardians, 
                        advocates, or authorized representatives, of 
                        individuals with disabilities who have 
                        difficulty in representing themselves or are 
                        unable due to their disabilities to represent 
                        themselves.
          ``(3) The State administrative agent will be an ex officio 
        member of the Council.
          ``(4) Members of the Council will be appointed by the 
        Governor or another entity that has appointment authority under 
        State law.
          ``(5) A majority of Council members will be persons who are--
                  ``(A) individuals with disabilities described in 
                section 7(8)(B); and
                  ``(B) not employed by the designated State 
                administrative agent.
          ``(6)(A) Except as provided in subparagraph (B), the Council 
        will select a chairperson from among the membership of the 
        Council.
          ``(B) In States in which the Governor does not have veto 
        power pursuant to State law, the Governor will designate a 
        member of the Council to serve as the chairperson of the 
        Council or will require the Council to so designate such a 
        member.
          ``(7) Each member of the Council will serve for a term 
        determined by the Governor or another entity that has 
        appointment authority under State law.
          ``(8) Any vacancy occurring in the membership of the Council 
        will be filled in the same manner as the original appointment. 
        The vacancy will not affect the power of the remaining members 
        to execute the duties of the Council.
  ``(b) Functions of Council.--For purposes of section 101(a), the 
Council will carry out the following:
          ``(1) Advise the collaborative process under section 103 of 
        the Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act, and the State administrative agent, 
        in the preparation of the State workforce development and 
        literacy plan and other plans, reports, needs assessments, and 
        evaluations required by this title.
          ``(2) To the extent feasible, conduct a review and analysis 
        of the effectiveness of, and consumer satisfaction with, the 
        delivery of core services and vocational rehabilitation 
        services to individuals with disabilities within the State.
          ``(3) Prepare and submit an annual report to the 
        collaborative process or appropriate State administrative agent 
        and the Commissioner on the status of vocational rehabilitation 
        programs operated within the State, and make the report 
        available to the public.
          ``(4) Coordinate with other councils within the State 
        established to address the needs of individuals with 
        disabilities.
          ``(5) Perform such other functions, consistent with the 
        purpose of this title, as the State Rehabilitation Advisory 
        Council determines to be appropriate, that are comparable to 
        the other functions performed by the Council.
  ``(c) Resources.--
          ``(1) Plan.--For purposes of section 101(a), the Council will 
        prepare, in conjunction with the State administrative agent, a 
        plan for the provision of such resources, including such staff 
        and other personnel, as may be necessary to carry out the 
        functions of the Council under this section. The resource plan 
        shall, to the maximum extent possible, rely on the use of 
        resources in existence during the period of implementation of 
        the plan.
          ``(2) Resolution of disagreements.--For purposes of section 
        101(a), to the extent that there is a disagreement between the 
        Council and the State administrative agent in regard to the 
        resources necessary to carry out the functions of the Council 
        as set forth in this section, the disagreement will be resolved 
        by the Governor or appointing agency identified in subsection 
        (a)(4).
          ``(3) Supervision and evaluation.--For purposes of section 
        101(a), the Council will, consistent with State law, supervise 
        and evaluate such staff and other personnel as may be necessary 
        to carry out its functions under this section.
          ``(4) Personnel conflict of interest.--For purposes of 
        section 101(a), while assisting the Council in carrying out its 
        duties, staff and other personnel will not be assigned duties 
        by the State administrative agent or any other agency or office 
        of the State, that would create a conflict of interest.
  ``(d) Conflict of Interest.--For purposes of section 101(a), no 
member of the Council will cast a vote on any matter that would provide 
direct financial benefit to the member or otherwise give the appearance 
of a conflict of interest under State law.
  ``(e) Meetings.--For purposes of section 101(a), the Council will 
convene meetings and conduct such forums or hearings as the Council 
considers appropriate. The meetings, hearings, and forums will be 
publicly announced. The meetings will be open and accessible to the 
general public unless there is a valid reason for an executive session.
  ``(f) Compensation and Expenses.--For purposes of section 101(a), the 
Council may use funds appropriated under this title to reimburse 
members of the Council for reasonable and necessary expenses of 
attending Council meetings and performing Council duties (including 
child care and personal assistance services), and to pay compensation 
to a member of the Council, if such member is not employed or must 
forfeit wages from other employment, for each day the member is engaged 
in performing the duties of the Council.
  ``(g) Rule of Construction.--Nothing in this section prohibits a 
State from establishing and providing funds to a separate council to 
carry out functions described in subsection (b) with respect to 
vocational rehabilitation services for individuals who are blind.

``SEC. 107. AMOUNT OF ALLOTMENT.

  ``(a)(1) Subject to the provisions of subsection (d), for each fiscal 
year beginning before October 1, 1978, each State shall be entitled to 
an allotment of an amount bearing the same ratio to the amount 
authorized to be appropriated under section 101(d) for allotment under 
this section as the product of (A) the population of the State, and (B) 
the square of its allotment percentage, bears to the sum of the 
corresponding products for all the States.
  ``(2)(A) For each fiscal year beginning on or after October 1, 1978, 
each State shall be entitled to an allotment in an amount equal to the 
amount such State received under paragraph (1) for the fiscal year 
ending September 30, 1978, and an additional amount determined pursuant 
to subparagraph (B) of this paragraph.
  ``(B) For each fiscal year beginning on or after October 1, 1978, 
each State shall be entitled to an allotment, from any amount 
authorized to be appropriated for such fiscal year under section 101(d) 
for allotment under this section in excess of the amount appropriated 
under such section for the fiscal year ending September 30, 1978, in an 
amount equal to the sum of--
          ``(i) an amount bearing the same ratio to 50 percent of such 
        excess amount as the product of the population of the State and 
        the square of its allotment percentage bears to the sum of the 
        corresponding products for all the States; and
          ``(ii) an amount bearing the same ratio to 50 percent of such 
        excess amount as the product of the population of the State and 
        its allotment percentage bears to the sum of the corresponding 
        products for all the States.
  ``(3) The sum of the payment to any State (other than Guam, American 
Samoa, the Virgin Islands, and the Northern Mariana Islands) under this 
subsection for any fiscal year which is less than one-third of 1 
percent of the amount appropriated under section 101(d), or $3,000,000, 
whichever is greater, shall be increased to that amount, the total of 
the increases thereby required being derived by proportionately 
reducing the allotment to each of the remaining such States under this 
subsection, but with such adjustments as may be necessary to prevent 
the sum of the allotments made under this subsection to any such 
remaining State from being thereby reduced to less than that amount.
  ``(4) For each fiscal year beginning on or after October 1, 1984, for 
which any amount is appropriated pursuant to section 101(d), each State 
shall receive an allocation (from such appropriated amount) in addition 
to the allotment to which such State is entitled under paragraphs (2) 
and (3) of this subsection. Such additional allocation shall be an 
amount which bears the same ratio to the amount so appropriated as that 
State's allotment under paragraphs (2) and (3) of this subsection bears 
to the sum of such allotments of all the States.
  ``(b)(1) If the payment to a State pursuant to this section for a 
fiscal year is less than the total payments such State received under 
section 2 of the Vocational Rehabilitation Act for the fiscal year 
ending June 30, 1973, such State shall be entitled to an additional 
payment (subject to the same terms and conditions applicable to other 
payments under this title) equal to the difference between the payment 
under this section and the amount so received by it.
  ``(2) If a State receives as its Federal share pursuant to this 
section for any fiscal year less than the applicable Federal share of 
the expenditure of such State for fiscal year 1972 for vocational 
rehabilitation services under the plan for such State approved under 
section 101 as in effect for such year (including any amount expended 
by such State for the administration of the State plan but excluding 
any amount expended by such State from non-Federal sources for 
construction under such plan), such State shall be entitled to an 
additional payment for such fiscal year, subject to the same terms and 
conditions applicable to other payments under this title, equal to the 
difference between such payment pursuant to this section and an amount 
equal to the applicable Federal share of such expenditure for 
vocational rehabilitation services.
  ``(3) Any payment attributable to the additional payment to a State 
under this subsection shall be made only from appropriations 
specifically made to carry out this subsection, and such additional 
appropriations are hereby authorized.''.
  (b) Certain Funding Provision.--Effective October 1, 1995, the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended by 
inserting after section 3 the following section:
                        ``availability of funds
  ``Sec. 3A. Notwithstanding any other provision of law, funding to 
carry out titles II through VII for any fiscal year is available only 
to such extent as is provided, or in such amounts as are provided, in 
appropriations Acts.''.
  (c) Conforming Amendments.--Effective October 1, 1995, the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended in the 
table of contents in the first section--
          (1) by inserting after the item relating to section 3 the 
        following item:

``Sec. 3A. Availability of funds.'';

          (2) by striking the items relating to sections 100 through 
        109, to sections 110 through 112, to sections 120 through 124, 
        to section 130, and to sections 140 and 141;
          (3) by striking the items relating to the title designation 
        and heading for title I, and to the part designations and 
        headings for parts A, B, C, D, and E of title I;
          (4) by inserting after the item relating to section 21 the 
        following items:

             ``TITLE I--VOCATIONAL REHABILITATION SERVICES

``Sec. 100. Purpose.
``Sec. 101. Formula Grants.
``Sec. 102. Allocation Within State of Administrative Responsibilities.
``Sec. 103. Responsibilities of State Administrative Agent.
``Sec. 104. Responsibilities for Local Boards and Service Centers.
``Sec. 105. Eligible Individual.
``Sec. 106. State Rehabilitation Advisory Council.
``Sec. 107. Amount of Allotment.''; and

          (5) by inserting after the item relating to section 509 the 
        following item:

``Sec. 510. Client assistance program.''.

       Subtitle B--Other Amendments to Rehabilitation Act of 1973

SEC. 521. TRAINING AND DEMONSTRATION PROJECTS.

  (a) In General.--Effective October 1, 1995, the Rehabilitation Act of 
1973 (29 U.S.C. 701 et seq.) is amended--
          (1) in title III--
                  (A) by striking section 303;
                  (B) by striking section 304;
                  (C) in section 311, by striking subsection (f);
                  (D) by striking section 312; and
                  (E) by striking section 316;
          (2)(A) by transferring subsection (a) of section 802 from the 
        current placement of the subsection;
          (B) by redesignating such subsection as subsection (f); and
          (C) by inserting such subsection at the end of section 311 
        (as amended by paragraph (1)(C) of this subsection);
          (3)(A) by transferring subsection (g) of section 802 from the 
        current placement of the subsection; and
          (B) by inserting such subsection at the end of section 311 
        (as amended by paragraph (2)(C) of this subsection);
          (4)(A) by transferring subsection (c) of section 803 from the 
        current placement of the subsection;
          (B) by redesignating such subsection as subsection (h); and
          (C) by inserting such subsection at the end of section 311 
        (as amended by paragraph (3)(B) of this subsection);
          (5)(A) by transferring subsection (b) of section 803 from the 
        current placement of the subsection;
          (B) by redesignating such subsection as subsection (j); and
          (C) by inserting such subsection at the end of section 302; 
        and
          (6) by striking the remaining provisions of title VIII.
  (b) Section 311(c).--Effective October 1, 1998, section 311 of the 
Rehabilitation Act of 1973 (29 U.S.C. 777a), as amended by subsection 
(a) of this subsection, is amended--
          (1) by striking subsection (c); and
          (2) by redesignating subsections (d) through (h) as 
        subsections (c) through (g), respectively.
  (c) Conforming Amendments.--Effective October 1, 1995, the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended in the 
table of contents in the first section--
          (1) by striking the items relating to sections 303, 304, 312, 
        and 316;
          (2) by striking the items relating to sections 801 through 
        803 of title VIII; and
          (3) by striking the item relating to the title designation 
        and heading for title VIII.
SEC. 522. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES.

  (a) In General.--Effective October 1, 1995, title VI of the 
Rehabilitation Act of 1973 (29 U.S.C. 795 et seq.) is amended--
          (1) by striking part A;
          (2) by striking part C;
          (3) by striking part D; and
          (4) in part B, by striking the part designation and heading.
  (b) Projects With Industry.--Effective October 1, 1998, title VI of 
the Rehabilitation Act of 1973, as amended by subsection (a) of this 
section, is repealed.
  (c) Conforming Amendments.--Effective October 1, 1995, the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended in the 
table of contents in the first section by striking the items relating 
to sections 611 through 617, to sections 631 through 638, and to 
section 641; and by striking the items relating to the part 
designations and headings for parts A, B, C, and D of title VI. 
Effective October 1, 1998, such table of contents is amended by 
striking the items relating to sections 621 through 623; and by 
striking the item relating to the title designation and heading for 
title VI.

                TITLE VI--REPEALERS AND OTHER AMENDMENTS

SEC. 601. CARL D. PERKINS VOCATIONAL AND APPLIED TECHNOLOGY EDUCATION 
                    ACT.

  The Carl D. Perkins Vocational and Applied Technology Education Act 
(20 U.S.C. 2301 et seq.) is repealed.

SEC. 602. SCHOOL-TO-WORK OPPORTUNITIES ACT.

   The School-to-Work Opportunities Act of 1994 (20 U.S.C. 6101 et 
seq.) is repealed.

SEC. 603. ADULT EDUCATION ACT.

  (a) In General.--The Adult Education Act (20 U.S.C. 1201 et seq.) is 
repealed.
  (b) Conforming Amendments.--
          (1) Esea.--The Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 6301 et seq.) is amended--
                  (A) in section 1202(c)(1), by striking ``the Adult 
                Education Act,'' and inserting ``title IV of the 
                CAREERS Act,'';
                  (B) in section 1205(8)(B), by striking ``the Adult 
                Education Act,'' and inserting ``title IV of the 
                CAREERS Act,'';
                  (C) in section 1206(a)(1)(A), by striking ``the Adult 
                Education Act;'' and inserting ``title IV of the 
                CAREERS Act;''; and
                  (D) in section 9161(2), by striking ``section 312(2) 
                of the Adult Education Act.'' and inserting ``section 5 
                of the CAREERS Act.''.
          (2) Technology for education act.--The Technology for 
        Education Act of 1994 (20 U.S.C. 6801 et seq.) is amended in 
        section 3113(1) by striking ``section 312 of the Adult 
        Education Act;'' and inserting ``section 5 of the CAREERS 
        Act;'';

SEC. 604. NATIONAL LITERACY ACT.

  The National Literacy Act of 1991, except section 101 of such Act, is 
repealed.

SEC. 605. LIBRARY SERVICES AND CONSTRUCTION ACT.

  (a) In General.--The Library Services and Construction Act (20 U.S.C. 
351 et seq.) is repealed.
  (b) Conforming Amendment.--The Technology for Education Act of 1994 
(20 U.S.C. 6801 et seq.) is amended in section 3113(10) by striking 
``section 3 of the Library Services and Construction Act;'' and 
inserting ``section 5 of the CAREERS Act;''.

SEC. 606. TECHNOLOGY FOR EDUCATION ACT OF 1994.

  Part F of the Technology for Education Act of 1994 (20 U.S.C. 7001 et 
seq.) (relating to the library media resources program) is repealed.

SEC. 607. JOB TRAINING PARTNERSHIP ACT.

  (a) In General.--The Job Training Partnership Act (29 U.S.C. 1501 et 
seq.), except section 1, sections 421 through 439 (relating to the Job 
Corps), and section 441 of such Act (relating to veterans' employment 
programs), is hereby repealed.
  (b) Conforming Amendments.--
          (1) Short title.--Section 1 of the Job Training Partnership 
        Act (29 U.S.C. 1501, note) is amended--
                  (A) in the heading, by striking ``; table of 
                contents''; and
                  (B) by striking all that follows after ``Job Training 
                Partnership Act''.
          (2) Job corps.--Such Act (29 U.S.C. 1501 et seq.), as amended 
        by this section, is further amended--
                  (A) by redesignating sections 421 through 439 as 
                sections 2 through 21, respectively;
                  (B) in section 2 (as redesignated), by striking 
                ``part'' each place it appears and inserting ``Act'';
                  (C) in section 4(4) (as redesignated), by striking 
                ``sections 424 and 425'' and inserting ``sections 5 and 
                6'';
                  (D) in section 5 (as redesignated)--
                          (i) in subsection (a), by striking ``entities 
                        administering programs under title II of this 
                        Act,''; and
                          (ii) in subsection (b), by striking ``part'' 
                        and inserting ``Act'';
                  (E) in section 7 (as redesignated)--
                          (i) in subsection (a), by striking ``section 
                        428'' and inserting ``section 9''; and
                          (ii) by striking subsection (d);
                  (F) in section 8 (as redesignated)--
                          (i) by striking subsection (b); and
                          (ii) by redesignating subsection (c) as 
                        subsection (b);
                  (G) in section 14 (as redesignated)--
                          (i) in subsection (a)(4), by striking 
                        ``part'' and inserting ``Act'';
                          (ii) in subsection (c)(1), by striking ``and 
                        activities authorized under sections 452 and 
                        453''; and
                          (iii) in subsection (e), by striking 
                        ``section 431'' and inserting ``section 12'';
                  (H) in section 15 (as redesignated)--
                          (i) in subsection (a)--
                                  (I) in the matter preceding paragraph 
                                (1), by striking ``section 427'' and 
                                inserting ``section 8''; and
                                  (II) in paragraph (4)(A), by striking 
                                ``section 428'' and inserting ``section 
                                9'';
                          (ii) in subsection (c)(3), by striking 
                        ``section 423'' and inserting ``section 4'';
                          (iii) in subsection (d), by striking 
                        ``sections 424 and 425'' and inserting 
                        ``sections 5 and 6''; and
                          (iv) in subsection (e), by striking ``, 
                        pursuant to section 452(d),'';
                  (I) in section 17 (as redesignated), by striking 
                ``purpose of this part'' each place it appears and 
                inserting ``purpose of this Act'';
                  (J) in section 20 (as redesignated), by striking 
                ``part'' each place it appears and inserting ``Act''; 
                and
                  (K) in section 21 (as redesignated), by striking 
                ``part'' and inserting ``Act''.
          (3) Veterans' employment programs.--Such Act (29 U.S.C. 1501 
        et seq.), as amended by this section, is further amended--
                  (A) by redesignating section 441 as section 22;
                  (B) by striking the heading of such section 22 (as 
                redesignated), and inserting the following:
                 ``veterans' employment programs''; and
                  (C) in such section 22, by striking ``part'' each 
                place it appears and inserting ``section''.
          (4) Authorization of appropriations.--Such Act (29 U.S.C. 
        1501 et seq.), as amended by this section, is further amended 
        by adding at the end the following new section:
                   ``authorization of appropriations
  ``Sec. 23. There are authorized to be appropriated such sums as are 
necessary to carry out this Act.''.

SEC. 608. STEWART B. MCKINNEY HOMELESS ASSISTANCE ACT.

  (a) Adult Education.--
          (1) In general.--Subtitle A of title VII of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11421 et seq.) is 
        repealed.
          (2) Table of contents.--The table of contents of such Act is 
        amended by striking the items relating to subtitle A of title 
        VII of such Act.
  (b) Subtitle C.--
          (1) In general.--Subtitle C of title VII of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11441 et seq.), 
        except section 738, is hereby repealed.
          (2) Table of contents.--The table of contents of such Act is 
        amended--
                  (A) by striking the item relating to subtitle C of 
                title VII of such Act; and
                  (B) by striking the items relating to sections 731 
                through 737 and sections 739 through 741.

SEC. 609. EFFECTIVE DATE.

  The repeals and amendments made by this title shall take effect on 
October 1, 1996.

    The provisions of the substitute are explained in this 
report.

                                Purpose

    The purpose of this Act is to transform the vast array of 
Federal workforce development and literacy programs from a 
collection of fragmented and duplicative categorical programs 
into a streamlined, comprehensive, coherent, high-quality, 
cost-effective, market-based, and accountable Federal workforce 
development and literacy system that is designed to meet the 
education, employment, and training needs of the workforce and 
the competitiveness needs of employers of the United States, 
both today and in the future.

                            Committee Action

    Subcommittee on Postsecondary Education, Training and Life-Long 
                                Learning

    The Subcommittee on Postsecondary Education, Training, and 
Life-Long Learning held hearings on February 6, 1995, February 
7, 1995, March 1, 1995, March 3, 1995, March 7, 1995, March 16, 
1995, March 21, 1995, March 23, 1995, and May 3, 1995, to 
consider reforming the U.S. workforce preparation system. On 
February 9, 1995, the Subcommittee on Investigations and 
Oversight held a hearing on education block grants.
    The February 6 and February 7, 1995, hearings in 
Washington, D.C., examined business perspectives on educational 
and training needs. The Subcommittee also heard testimony from 
the U.S. Departments of Education and Labor and the U.S. 
General Accounting Office. The Subcommittee received testimony 
from Clarence Crawford, Associate Director, U.S. General 
Accounting Office, Washington, D.C.; Jere Jacobs, Assistant 
Vice President, Pacific Telesis Group, San Francisco, 
California; Harry Featherstone, Chairman, the Will-Burt 
Company, Orville, Ohio; Wayne Rowley, Director of Human 
Resources Development, Tulsa, Oklahoma, Chamber of Commerce; 
Lawrence Katz, Professor of Economics, Harvard University, 
Cambridge, Massachusetts; Doug Ross, Assistant Secretary of 
Labor, Washington, D.C.; Marshall Smith, Undersecretary of 
Education, Washington, D.C.; Argeo Paul Cellucci, Lieutenant 
Governor of Massachusetts, Boston, Massachusetts; Peter 
Calderone, New Jersey Commissioner of Labor, Trenton, New 
Jersey; and Pam Anderson representing the U.S. Conference of 
Mayors.
    The March 1, 1995, hearing in Washington, D.C., focused on 
the Carl D. Perkins Vocational and Applied Technology Education 
Act. The Subcommittee received testimony from John Polto, 
Vocational Administrative Director, and Jim Sweetheimer, 
English Teacher, Dauphin County Technical School, Harrisburg, 
Pennsylvania; William Ihlenfeldt, President, Chippewa Valley 
Technical College, Eau Claire Wisconsin; Lawrence Rosenstock, 
Executive Director, Rindge School of Technical Arts, Cambridge, 
Massachusetts; Pamela Neifert, Director of Federal Programs, 
York City Schools, York Pennsylvania; Jim This, Executive Vice 
President, Washington State Employees Credit Union, Olympia, 
Washington; and students Richard Gonzales of Covina, 
California, and Jonna Scott of Lacey, Washington.
    The March 3, 1995, hearing in Washington, D.C., continued 
examination of educational and training issues including 
innovative State and local programs. The Subcommittee received 
testimony from Augusta Kappner, Assistant Secretary of 
Vocational and Adult Education, U.S. Department of Education, 
Washington, D.C.; John McKernan, Former Governor of Maine; 
Bruce Kimery, Acting Commissioner, Indiana Department of 
Workforce Development, Indianapolis, Indiana; Art Glatfelter, 
President and CEO, Glatfelter Insurance Group, York, 
Pennsylvania; Jack Van Newkirk, Superintendent of York City 
Schools, York, Pennsylvania; Susan Carreon, Dean of Vocational 
Education, Golden West Community College, Huntington Beach, 
California; Paul Mashburn, Westminster High School, 
Westminister, California; and Paul Weckstein, Co-Director, 
Center for Law & Education, Washington, D.C.
    The March 7, 1995, hearing in Washington, D.C., continued 
examination of educational and training issues including 
programs for the disadvantaged. The Subcommittee received 
testimony from Robert Ivry, Senior Vice President, Manpower 
Demonstration Research Corporation, New York, New York; Russ 
Tershy, Director, and Estaban Guzman, Program Graduate, Center 
for Employment Training (CET), San Jose, California; Brene 
Patrick, Assistant CEO, Youth Division, Private Industry 
Council, San Diego, California; Neil Derrough, President, KNSD-
TV 39, Member of San Diego PIC, San Diego, California; William 
Johnson, Mayor of Rochester, New York; Cindy Dotson, Director, 
and Lester Westry, Student, Crispus Attucks YouthBuild Program, 
York, Pennsylvania.
    The March 16, 1995, hearing in Washington, D.C., heard 
testimony on programs for disadvantaged youth and Job Corps 
programs. The Subcommittee received testimony from Nora Wang, 
Commissioner, New York City Department of Employment; Sharon 
Williams, Director, Opportunities Industrialization Center, 
Menlo Park, California; Gary Walker, President, Public Private 
Ventures, Philadelphia, Pennsylvania; Charles Masten, Inspector 
General, U.S. Department of Labor, Washington, D.C.; Charles 
Tetro, President, Training and Development Corporation, 
Bucksport, Maine; and Cathy Clendenning, Participant, Penobscot 
Job Corps Center, Bangor, Maine.
    The March 21, 1995, hearing in Washington, D.C., dealt with 
governance issues related to training programs. The 
Subcommittee also heard testimony from service providers. The 
Subcommittee received testimony from Randy Johnson, County 
Commissioner, Hennepin County, Minnesota; James Dickerson, 
Private Industry Council Chair, Camdenton, Missouri; Rodo 
Sofranac, Chairman, Arizona Job Training Coordinating Council, 
Phoenix, Arizona; Debra Bowland, Ohio Bureau of Employment 
Services, Columbus, Ohio; Augustine Gallego, Chancellor, San 
Diego Community College District, San Diego, California; J. 
Handel Evans testifying for Molly Corbett Broad, Executive Vice 
Chancellor, California State University, Long Beach, 
California; Peter Cove, CEO, America Works, New York, New York; 
and Jose Perez, Executive Director, SER--Jobs for Progress, 
Inc., Houston, Texas.
    The March 23, 1995, hearing in Washington, D.C., covered 
issues related to system infrastructure, forecasting, and 
special populations. The Subcommittee received testimony from 
Anthony Carnevale, Chairman, National Commission for Employment 
Policy, Washington, D.C.; Kevin Wheeler, Director, National 
Semiconductor University, Sunnyvale, California; Tom Gallagher, 
Manager of Research and Planning, Wyoming Department of 
Employment, Casper, Wyoming; Roy Vanderford, President, 
Indianapolis Network for Employment and Training, Indianapolis, 
Indiana; Calvin Johnson, AFL-CIO, Washington, D.C.; Patricia 
Jagiel, Seminole Tribe of Florida, Hollywood, Florida; Stuart 
Mitchell, Executive Director, Rural Opportunities, Inc., 
Rochester, New York; Graciela Pena, Former Farmworker and JTPA 
Section 402 Participant, Aspers, Pennsylvania; Ronald Drach, 
National Employment Director, Disabled American Veterans, 
Washington, D.C.; and Carolyn Stearnes, Vice President for 
Employment Division, Senior Citizen Services, Memphis, 
Tennessee.
    The March 29, 1995 hearing focused on vocational 
rehabilitation. Witnesses testifying were: Mr. Frederic 
Schroeder, Commissioner, Rehabilitation Services 
Administration, U.S. Department of Education, Washington, D.C.; 
Ms. Lenny Granger of Northern Virginia accompanied by, Harry 
Hall, Director, The Development Team, Jacksonville, FL.; Mr. 
Sam Serraglio, Commissioner, Kentucky Department of Vocational 
Rehabilitation, Frankfort, KY; Mr. Pat Kemp, Executive 
Director, RCH Technical Institute Inc., Seattle, WA.; Mr. Tony 
Young, Director, Residential Services & Community Supports 
American Rehabilitation Association on behalf of the Coalition 
for Citizens with Disabilities, Washington, D.C.

          Subcommittee on Early Childhood, Youth, and Families

    On April 25, 1995, the Subcommittee on Early Childhood, 
Youth and Families conducted a field hearing on adult 
education, literacy, and library-related programs in San Diego, 
California. Witnesses focusing primarily upon libraries and 
library literacy programs were Anne Campbell, Director of the 
National City Public Library; John Corcoran, a literacy program 
participant from Oceanside, California; James Olson, Group Vice 
President, Toyota Motor Sales USA, Inc, Torrance, California; 
Rodgers Smith, Provost, Continuing Education Centers, San Diego 
Community College District, San Diego, California; Scott 
Himlestein, Executive Director, William Lynch Foundation for 
Children, San Diego, California; Dr. Barbara McDonald, San 
Diego Consortium for Workforce Education and Life-Long Learning 
(CWELL), San Diego, California; Jerry Rindone, Assistant 
Superintendent, Adult and Continuing Education, Sweetwater 
Union High School, Chula Vista, California; Jeffrey Stafford, 
Executive Director, San Diego Council on Literacy, San Diego, 
California.
    On May 2, 1995, the Subcommittee on Early Childhood, Youth 
and Families conducted a second hearing on adult education, 
literacy, and library-related programs. Witnesses were Jean 
Hurley Simon, Chairperson of the U.S. Commission on Libraries 
and Informational Science; Dr. Augusta Kappner, Assistant 
Secretary, Vocational and Adult Education, U.S. Department of 
Education; Sharon Darling, President, National Center for 
Family Literacy, Louisville, Kentucky; Dr. Andrew Hartman, 
Director, National Institute for Literacy; Cheryl Keenan, 
Director, Bureau of Adult Basic and Literacy Education, 
Harrisburg, Pennsylvania; Bob Bickerton, Administrator, Adult 
and Community Learning Services; Massachusetts Department of 
Education, Malden, Massachusetts; Dr. Judith Crocker, 
Supervisor, Adult and Continuing Education, Cleveland Public 
Schools, Cleveland, Ohio; Maggie Gaines, Executive Director, 
Baltimore Reads, Baltimore, Maryland; Dr. Steve Steurer, Office 
of Correctional Education Maryland State Department of 
Education, Baltimore, Maryland; Minnie Mae Robinson, Program 
Participant, GROWS Literacy Council, Apopka, Florida.
              Introduction of Workforce Preparation System

    On May 11, 1995, Representatives McKeon, Goodling, 
Cunningham, Gunderson, Riggs, DeLay, Boehner, Kasich, McIntosh, 
Petri, Roukema, Funderburk, Souder, Fawell, Ballenger, Barrett, 
Hoekstra, Castle, Meyers, Johnson (TX), Talent, Greenwood, 
Hutchinson, Knollenberg, Graham, Weldon (FL), Norwood, and 
Davis introduced H.R. 1617, the Consolidated and Reformed 
Employment, Education and Rehabilitation Systems (CAREERS) Act. 
H.R. 1617 was designed to consolidate and reform workforce 
development and literacy programs.

                           Legislative Action

    On May 16, 1995, the Subcommittee on Early Childhood, Youth 
& Families approved the bill, as amended, by a voice vote.
    On May 17, 1995, the Subcommittee on Postsecondary 
Education, Training and Life-Long Learning assembled to 
consider H.R. 1617, the Consolidated and Reformed Education, 
Employment, and Rehabilitation Systems (CAREERS) Act. Chairman 
McKeon offered an amendment in the nature of a substitute to 
H.R. 1617. Further amendments to the amendment in the nature of 
a substitute were adopted, and the Subcommittee adopted the 
amendment in the nature of a substitute, as amended. H.R. 1617, 
as amended, was approved by the Subcommittee on Postsecondary 
Education, Training and Life-Long Learning on May 17, 1995, by 
voice vote, and ordered reported to the Committee on Economic 
and Educational Opportunities.
    On May 24, 1995, the Committee on Economic and Educational 
Opportunities assembled to consider H.R. 1617, the Consolidated 
and Reformed Education, Employment, and Rehabilitation Systems 
(CAREERS) Act. Chairman Goodling offered an amendment in the 
nature of a substitute to H.R. 1617. Further amendments to the 
amendment in the nature of a substitute were adopted, and the 
Committee adopted the amendment in the nature of a substitute, 
as amended. H.R. 1617, as amended, was favorably reported by 
the Committee on Economic and Educational Opportunities on May 
24, 1995, by a recorded vote of 29-5.

                  Background and Need for Legislation

             TITLE I--WORKFORCE DEVELOPMENT INFRASTRUCTURE

                         Need for System Reform

    The skill levels of the U.S. workforce are more important 
than ever before. Participation in the global economy requires 
that we move toward high-performance work organizations built 
around highly trained workers. Further, changes in our domestic 
economy highlight the need to focus on worker preparation. As 
stated by Mr. Jere Jacobs, Assistant Vice President of the 
Pacific Telesis Group, before the Subcommittee on Postsecondary 
Education, Training, and Lifelong Learning, on behalf of the 
California Business Roundtable, and the National Alliance of 
Business:

          The emerging age of information and 
        telecommunications has changed the nature of work and 
        the workplace for good. These changes demand a new kind 
        of worker, a knowledge worker, with new sets of skills. 
        Increasingly, jobs with a future and suitable pay 
        require education and training that many current 
        workers, employed and unemployed, do not have. At 
        Pacific Telesis we want employees who are 
        technologically capable and can show competence in 
        problem solving, team work, initiative, and 
        communications skills. For workers in this new global 
        economy, knowledge and skills will be the ultimate 
        determinance of their economic success. It is no longer 
        good enough to hire someone to show up on time and 
        merely do what they are told to do day after day.

    Ensuring employment, reemployment, and job security for 
workers and future workers, as well as U.S. competitiveness, 
will increasingly depend on an effective and efficient U.S. 
workforce development and literacy system. However, the United 
States currently does not possess such a system.
    Reports from the U.S. General Accounting Office (GAO) 
highlighting the excessive number of Federally funded job 
training programs, as well as negative reports on the quality 
of the U.S. job training system have sparked both public and 
Congressional interest in system reform. To date, the GAO has 
identified 163 different programs, totaling $20 billion, 
administered by 15 different Federal agencies, which offer some 
form of career-related education, job training, or employment 
assistance to youth and adults.
    While care must be taken when considering the GAO reports, 
as a number of the 163 programs listed do not have job training 
or employment assistance as their primary purpose, the report 
legitimately points out the duplication, fragmentation, and 
turf wars that permeate our current workforce preparation 
programs. In testimony provided to the Subcommittee on 
Postsecondary Education, Training, and Lifelong Learning, Mr. 
Clarence Crawford, Associate Director for Education and 
Employment Issues, of the U.S. General Accounting Office, 
stated that:

          Despite spending billions of dollars each year, most 
        Federal agencies do not know if their programs are 
        really helping people find jobs. The current ``system'' 
        wastes resources and confuses and frustrates clients, 
        employers, and administrators.'' Crawford continued, 
        ``The current system for providing employment training 
        assistance suffers from a variety of problems that 
        arise from a multitude of narrowly focused programs 
        that often compete for clients and funds. * * * This 
        extensive overlap raises questions about the system's 
        efficiency.

    In its studies, the GAO has found that the additional costs 
of administering overlapping workforce development programs at 
the Federal, State, and local levels, diverts scarce resources 
that could be better spent to assist individuals in preparing 
for and entering into work. The studies have further concluded 
that conflicting eligibility requirements, annual budgeting and 
operating cycles, planning and reporting requirements, and 
performance measurement systems, which serve as barriers to 
program integration, also result in an inefficient use of 
taxpayer dollars. In fact, the GAO claims that the amount of 
money spent administering employment training programs cannot 
be readily quantified, finding that estimates of administrative 
costs range from as low as 7 percent for some programs to as 
high as 15 or 20 percent for others. On this subject, Mr. 
Crawford in his testimony stated that:

          Eliminating duplicate bureaucracies will reduce 
        administrative costs, saving money that can be used 
        instead for client services. Eliminating separate 
        staffs to administer, monitor, and evaluate programs at 
        the State and local levels could also save resources.

    Mr. Crawford provided the Subcommittee with the GAO's 
recommendations for system reform, as follows:

          We are convinced that a major overhaul and 
        consolidation of programs is needed to create an 
        effective and efficient employment training system 
        that: (1) provides easy access to services; (2) 
        encourages the efficient use of resources; (3) offers a 
        wide variety of employment training services; and (4) 
        holds program administrators accountable for results, 
        while allowing States and local agencies the 
        flexibility to determine how best to meet the needs of 
        their communities.

    The overwhelming number of witnesses who came before the 
Subcommittee to testify on reform of the U.S. workforce 
development system, agreed with Mr. Crawford's account of the 
problems and with his initial recommendations for reform. In 
fact, everyone including representatives from the 
Administration, State officials, local officials, business 
leaders, educators, program providers, researchers, and 
organized labor, agreed that significant program consolidation 
and reform is in order.
    Mr. Doug Ross, Assistant Secretary for the Employment and 
Training Administration at the U.S. Department of Labor, 
expressed support for reform that is built on individual choice 
and a free market. Summarizing the shortfalls of the current 
job training system as: being too inflexible--providing little 
customer choice; having inadequate consequences for poor 
performance; being too complex and bureaucratic; and being 
little known, Mr. Ross stressed the need for universality, 
customer choice, program integration, and accountability in a 
new workforce development system. Specifically, he recommended: 
a one-stop system that makes available an array of job finding 
and employment development services to all populations; a 
system that provides customers with options and choice of where 
to get the services that best meet their needs; program, 
service and governance structures that are fully integrated; 
and a system with clear performance outcomes, and consequences 
for failure to achieve such outcomes, including measures of 
customer satisfaction.
    Mr. Harry Featherstone, Chairman of the Will-Burt Company, 
Orville, Ohio, who testified on behalf of the National 
Association of Manufacturers, urged the Subcommittee:

    Not to just tinker with this system, not just consolidate 
programs, but to be bold, be expansive, be innovative, be 
creative, to radically restructure our workforce system.

    Mr. Featherstone continued,

    One clear goal is to enhance U.S. competitiveness globally. 
* * * Let's structure a system that is based on local knowledge 
and local conditions, let's include from the beginning the 
business community in its leadership role. It is ready to share 
its knowledge about skill training in new and innovative ways.

    As was the goal of several workforce preparation reform 
initiatives introduced by Members of the Committee last 
Congress, there is no doubt that we must eliminate unnecessary 
duplication and fragmentation in these systems, in order to 
provide the highest quality of services to the largest number 
of individuals, as well as identifying Federal savings. In 
1989, the Job Training Partnership Act Advisory Committee 
concluded that ``In this era of budget stringency, 
particularly, we should no longer accept a fragmented, 
uncoordinated approach to the delivery of human services.'' Yet 
up until now, the number of Federal workforce development 
programs has continued to grow.
    As summed up in the publication ``Toward a Workforce 
Investment System'' issued by the National Alliance of 
Business:

           As a Nation, we are faced with a paradox: 
        competitive pressures are placing unprecedented demands 
        on our workforce in an environment of severe budgetary 
        constraints, and yet at the same time, we are not 
        efficiently managing those resources that are already 
        at our disposal for investing in the future 
        productivity of our labor force. The challenge to 
        business and industry is to build in partnership with 
        public officials, a cohesive management system at the 
        State and local levels that will achieve significant 
        progress in each of three key areas of human resource 
        investment: building a strong foundation of basic 
        skills for workforce entrants through education reform; 
        providing lifelong learning opportunities for employed 
        workers; and streamlining the delivery of employment 
        and training services for youth and adults who face 
        special barriers to employment.

    The idea of an integrated workforce investment system is 
not new, but has been evolving throughout the history of 
Federal training and employment assistance programs. The 
Comprehensive Employment and Training Act (CETA), remembered 
for its controversial public service employment component, was 
originally established to coordinate existing job training 
programs under the control of locally elected officials. 
Throughout the history of the Job Training Partnership Act 
(JTPA), as well as in amendments added to authorizing 
legislation for vocational education, the Employment Service, 
and welfare employment programs, provisions for program 
coordination have been added and embellished; nevertheless, 
program fragmentation persists. In fact, as late as 1992, in 
amendments enacted to the Job Training Partnership Act, 
language was included with the purpose of strengthening 
coordination between workforce development systems, but as was 
recognized in the House Report on that legislation, 
``coordination of related programs has been a long-standing 
goal of Federal employment and training policy; however, this 
goal has never been fully or consistently realized.''
    Last Congress, the School-to-Work Opportunities Act was 
enacted with bi-partisan support. A major premise of that 
legislation was to coordinate school-to-work initiatives with 
other Federal job training activities, such as vocational 
education and JTPA. Thus, a major step was taken in bringing 
some coordination to job training strategy. This bill builds on 
that and significantly advances efforts at developing an 
integrated and coordinated workforce investment system.

   Framework for a National Workforce Development and Literacy System

    As included in the findings section of H.R. 1617, the major 
goals of any reform of Federal workforce development 
legislation must be to:
          Streamline and consolidate programs, eliminating 
        unnecessary duplication and fragmentation;
          Provide maximum authority and responsibility to 
        States and to local communities for the design and 
        operation of workforce development and literacy 
        programs;
          Increase the involvement of the private sector in the 
        design and implementation of workforce preparation 
        programs;
          Establish a system which is market-driven, provides 
        customer choice, and easy access to services;
          Reinforce individual responsibility and ensure 
        accountability; and
          Establish a comprehensive, integrated labor market 
        information system to ensure that workforce development 
        programs are related to the demand for particular 
        skills in local labor markets, and to ensure that 
        information about the employment and earnings of the 
        local workforce, occupations in demand, skill 
        requirements for available jobs, and the performance of 
        education and training and rehabilitation providers is 
        available to job seekers, employers, teachers, 
        students, and decision-makers.
    H.R. 1617 is designed to achieve these goals.
    The CAREERS legislation consolidates (and eliminates) over 
90 existing education, employment, and job training programs 
into 4 consolidation grants. This consolidation eliminates 
unnecessary duplication and fragmentation within programs, 
while redesigning programs serving youth, adults, the disabled, 
and individuals with basic skills deficiencies. The bill 
transfers authority for the design and operation of programs to 
the States and to local communities, with limited direction on 
the establishment of an infrastructure to support State and 
local workforce development systems. The bill establishes a 
system which is market-driven, provides customer choice, and is 
easily accessible, by: strongly encouraging service delivery 
through a one-stop career center system--or single points of 
entry into local workforce development programs; by involving 
employers in the design and implementation of systems; by 
strongly encouraging the use of vouchers or skill grants for 
receipt of training and educational services; through the 
provision of information on the performance of local service 
providers as well as enhanced labor market information; and 
through an enhanced performance measurement system, that takes 
into account customer satisfaction (both of employers and of 
participants).
    In development of the CAREERS Act, a great deal of thought 
and care went into the design of a system infrastructure. 
Starting with the CAREERS legislation introduced by Chairman 
Goodling and other Committee Republicans in the last Congress, 
Members deliberated over how far to go with program 
consolidation, elimination, and reform. After considerable 
study and in-depth conversations with, and consideration of 
testimony from experts around the country, in the Postsecondary 
Subcommittee's nine hearings solely devoted to this bill, and 
the Youth Subcommittee's two hearings devoted to the issue of 
adult education and literacy program reform, Members decided to 
establish a workforce development and literacy system composed 
of 4 consolidation grants.
    These grants include: a Youth Development and Career 
Preparation Consolidation Grant (consolidating Vocational 
Education, School-to-Work, and youth programs established under 
the Job Training Partnership Act); an Adult Employment and 
Training Consolidation Grant (consolidating programs for 
Disadvantaged Adults and for Dislocated Workers, among others); 
a Vocational Rehabilitation Consolidation Grant; and an Adult 
Education and Literacy Consolidation Grant (consolidating all 
Adult Education and Literacy programs). The Committee believes 
that the very different and important missions of the four 
consolidation grants, as well as the very different needs of 
the populations being served, are necessary functions of the 
Federal government to support a comprehensive and effective 
workforce development system in States and communities 
throughout our Nation.

                    State and Local Responsibilities
    In a report entitled ``Advancing America's Workforce,'' 
issued this year by the National Association of State Workforce 
Investment Policy Council Chairs (business leaders who advise 
Governors on the design of State workforce development 
systems), the State chairs addressed the issue of governance 
over the U.S. workforce development system, by stating:

          The system must be governed through a new Federal-
        State-local partnership with clearly defined roles and 
        responsibilities at each level. Overall direction and 
        oversight for the system should be provided at the 
        Federal level, with less policing of process and 
        procedures. States and localities should have greater 
        flexibility in the design of the system and the 
        delivery of services, with increased accountability for 
        achieving outcomes across the system.

    Specifically, the report explains that the Federal role 
should be framing the vision for the system; developing broad 
policy; establishing national priorities and performance 
standards. The report cites the appropriate role of the State 
as defining a State vision; establishing statewide priorities, 
policies and performance standards; developing a statewide 
strategic plan; building Federal-State and State-local 
partnerships; determining funding needs in consultation with 
localities; deciding on substate funding allocations based on 
needs; providing technical assistance and capacity building; 
and overseeing the State system. And finally, the report states 
that the local role should be developing a strategic plan, 
based on local priorities; designing and administering the 
local delivery system, including establishing performance 
measures, overseeing and evaluating performance of local 
providers; determining customer satisfaction; and implementing 
processes to continually improve the quality of services. This 
is consistent with the provisions of H.R. 1617.
    A major objective of this bill is to shift the authority 
for the design and operation of workforce development and 
literacy programs to States and to local communities. Clearly, 
the intent of H.R. 1617, is to transfer such responsibilities 
out of Washington, closer to the individuals being served. The 
CAREERS legislation does, however, establish a broad framework 
or infrastructure around which States and local communities may 
build their individual workforce development systems.
    Members of the Committee believe that the role of States, 
and in particular the role of Governors, is of paramount 
importance in the overall design and implementation of 
statewide workforce development efforts. However, the Committee 
believes that this will work best through a collaborative 
process that involves a variety of concerned participants. Such 
a collaborative process is essential to the development of a 
successful statewide workforce development strategy. There is 
no question that the Committee intent is for Governors to take 
the lead in determining the workforce needs of their States and 
in designing their statewide systems. In fact, the CAREERS 
legislation provides a great deal more flexibility and 
authority for Governors for the overall policy guidance and 
design of the workforce system than now is provided under 
current law.
    The Committee also recognizes, however, that many States 
place jurisdiction for education in the hands of statewide 
elected officials other than the Governor. By no means does 
this Committee intend to interfere with or supersede these 
State decisions. It is not the Committee's intent to impose its 
will, or any one organizational structure, on States through 
this bill, particularly if such an imposition would violate 
State Constitutions.
    CAREERS allows Governors through the collaborative process 
to develop a single State plan and a single performance 
measurement system across all 4 block grants, as well as 
consolidating the reporting and data collection requirements of 
the 4 programs. While setting some parameters for design of the 
system infrastructure (building on what some of the most 
innovative States have already done), the CAREERS Act transfers 
authority for the actual design and operation of federally 
funded workforce development programs to States and local 
communities:
          Governors have final authority for decision-making 
        and submission of the State workforce development plan 
        (except in States with State constitutions that prevent 
        such authority);
          Governors have authority to withdraw funding or 
        redesignate administrative entities for local programs 
        that do not meet State developed performance measures--
        providing an increased role for the Governor both in 
        setting the performance standards and in enforcing such 
        standards at the local level;
          Governors have total authority to designate/
        redesignate workforce development areas, free from 
        population requirements as under current law;
          Governors have authority to set criteria for the 
        selection of local, employer-led, workforce development 
        boards, to biennially certify such boards, and have 
        approval authority over local plans--an increased role 
        over the makeup and function of local workforce 
        development boards;
          Governors have authority to set criteria for the 
        overall design of local one-stop career center systems, 
        and can design alternative strategies to the one-stop, 
        if such strategies achieve full integration of Federal, 
        State and local workforce development programs, and 
        meet with the approval of the Secretaries of Education 
        and Labor;
          Governors have the authority to establish a 
        certification mechanism to identify legitimate 
        providers of education and training who are eligible to 
        receive vouchers or skill grants or contracts under the 
        adult training and vocational rehabilitation systems--
        providing an increased role for the Governor in 
        certifying qualified providers; and
          Governors have the authority to establish substate 
        formulas for driving Federal dollars to local workforce 
        boards and to local schools under the adult training 
        and the youth titles of the bill--no longer a 
        prescriptive, federally directed formula.
    This legislation transforms our current system, or ``non-
system'' of Federal job training and employment assistance 
programs. We have developed a bill that significantly increases 
the role of the Governor in the overall design of all 
federally-funded workforce preparation programs, while 
establishing a necessary balance between the State and local 
levels. In his testimony before the Committee, Lt. Governor 
Paul Cellucci, of Massachusetts strongly recommended a block 
grant approach for funding workforce development programs, and 
explained that ``States should be expected to set policy for 
and oversee job-related and training activities, and to 
allocate the block grant funds to local boards.'' He further 
explained ``that's why we see the Regional Employment Boards in 
Massachusetts as an important infrastructure to have in 
place.'' H.R. 1617 appears to be consistent with this 
recommendation.
    Mr. Peter Calderone, Commissioner of Labor in the State of 
New Jersey, also expressed support for block grants which 
``best serve the needs of each particular State.'' Both 
Commissioner Calderone and Lt. Governor Cellucci testified that 
their States are building workforce development systems around 
local employer-led workforce investment, or regional employment 
boards. And both spoke of their efforts in the establishment of 
a one-stop delivery system within their respective States, with 
Commissioner Calderone describing one-stop career centers as 
the kind of delivery system that ``would offer workers and 
employers easy access and a direct route to the total array of 
available employment, education, and training information and 
services.'' Again, consistent with the direction in H.R. 1617.
    Committee Members also believe that programs at the local 
level will not be successful unless local communities are 
involved in the design and delivery of local programs. As much 
as we believe in a strong State role, we believe as strongly in 
the necessity for local communities to make job training 
decisions that are consistent with, and appropriate to, local 
needs. The Committee bill provides a great deal of authority to 
locally elected officials in the selection of Members of the 
local workforce development boards; in the approval of local 
workforce plans and budgets; and in joint oversight, with the 
boards, in the area at-risk youth, adult training, and 
vocational rehabilitation programs. As was stressed in 
testimony provided to the Subcommittee by representatives of 
the U.S. Conference of Mayors, including the Honorable William 
A. Johnson, Mayor of Rochester, New York, locally elected 
officials know their individual communities best and need the 
flexibility to design local programs based upon the needs that 
exist in their communities. In testimony provided by County 
Commissioner Randy Johnson, on behalf of the National 
Association of Counties, Mr. Johnson stated:

          Localities must be responsible for: developing shared 
        governance responsibilities between local elected 
        officials and representatives of the private sector; 
        developing and implementing locally based intake and 
        assessment procedures and practices that allow for 
        universal access to programs and services by those who 
        need them most; developing and implementing specific 
        workforce development programs that are responsive to 
        the particular needs of trainees and the business 
        community; and coordinating activities, including 
        waivers, and establishing locally based collaborative 
        efforts between the various educational, social 
        services and human resource programs within our 
        communities.

 the role of local employers and the establishment of local workforce 
                           development boards

    Perhaps the most convincing argument for placing such 
responsibility at the local level as seen by the Committee, 
however, is the vital role that local employers are intended to 
play under the CAREERS legislation.
    As stated throughout this report, the Committee sees the 
role of employers, at all levels--Federal, State and local--as 
essential to the success of our reform efforts in the area of 
workforce development. In fact, business must take a leadership 
role in the design, management, and evaluation of workforce 
training programs.
    As pointed out by James Dickerson, Chair of the Central 
Ozarks Private Industry Council in Rolla, Missouri, testifying 
on behalf of the National Association of Private Industry 
Councils: ``Our greatest challenge is to turn our publicly 
financed education and training institutions from supply-driven 
ones to market-driven ones.'' The full involvement of business 
in development of workforce development systems is essential if 
we are to establish a system that is truly market-driven, 
accountable, and one that provides the skills and education 
levels needed in the workforce.
    The National Alliance of Business in ``Toward a Workforce 
Investment System,'' pointed to a number of approaches designed 
to incorporate market requirements into a workforce investment 
system, including: ``planning education and training programs 
on the basis of up-to-date labor market information; setting 
local educational standards based on direct employer input, as 
has been done by the SCANS commission effort; and providing 
training vouchers or skill grants for use by individuals in 
purchasing the education and/or training services of their 
choice.'' CAREERS incorporates all of these elements.
    As the ultimate consumer of the products of the workforce 
development system, the employer community has a vital interest 
in the quality of the education, training and related services 
being provided, as well as the efficient utilization of 
resources. Private sector leaders, at both the State and local 
levels, play a key role in establishing a common framework that 
helps governmental entities rethink the categorical structure 
of workforce programs, to overcome turf issues and resource 
concerns.
    In providing reform recommendations to the Subcommittee, 
Mr. Dickerson from the National Association of Private Industry 
Councils explained that local workforce development boards must 
have real authority, add real value to the employment and 
training enterprise, or ``they will find more productive ways 
to support their communities.'' The Committee bill provides 
employers with this authority, purposely elevating the role of 
local workforce development boards over that currently provided 
to private industry councils under JTPA. Under the bill, local 
employer-led boards will have the authority to: develop local 
workforce development plans, setting goals and objectives for 
their workforce development areas (consistent with State 
workforce development plans); select and monitor the 
performance of local one-stop operators and program providers 
in the local system; design the local area's one-stop career 
center system, consistent with State-established criteria; and 
develop budgets and conduct oversight over the local system. 
The bill clearly establishes that local workforce development 
boards have the authority to elect the board chair from among 
its members, and develop bylaws and operating procedures that 
are consistent with the State plan. In ``Toward a Workforce 
Investment System,'' published by the National Alliance of 
Business, the point was well made that ``a system that is 
shaped by too many rules and regulations and that bogs down 
business volunteers with the minutia of program management 
drives the private sector away.'' As a result, the bill 
prohibits local boards from operating programs.

                         the role of educators

    The Committee also recognizes the importance of educators 
in the design and implementation of workforce development and 
literacy systems. We need the active involvement and 
participation of educators and other service providers, at the 
State and local levels, especially since successful workforce 
development efforts can only be built on strong education and 
training initiatives. Not to involve the education community in 
the development of a workforce training system would be 
counterproductive in our opinion.

                          state collaboration

    At the State level, as well as in local communities, the 
role of employers is key to success. It is the intent of the 
Committee that representatives of business and industry, 
appointed by the Governor, comprise a substantial number of the 
individuals involved in the State's collaborative process. In 
those leading-edge States who have already utilized a 
collaborative process through the establishment of broad-based, 
State Human Resource Investment councils (or workforce 
investment councils as some are called), the leadership 
provided by those bodies has been key to statewide system 
reform.
    While the Committee decided not to require the 
establishment of these councils, the spirit of collaboration 
behind the establishment of such councils in large part led 
Congress to utilize a collaborative process under the School-
to-Work Opportunities Act, during the last Congress. And it was 
this model, developed in a bipartisan manner, that the 
Committee adopted under the CAREERS Act, for State level 
consideration and development of State workforce development 
and literacy policies.
    The workforce development system must be designed in a way 
that enables the various stakeholders of the system to work 
collaboratively within a competitive environment. It is the 
hope that the collaboration required in this legislation will 
build support and acceptance of system-wide reform. While the 
Committee recognizes the Governor as taking the lead role in 
establishing the overall State workforce development and 
literacy system, Governors cannot be solely responsible for 
such reform efforts. To effect truly meaningful reform, all 
stakeholders must be integrally involved in this collaborative 
effort.

                     one-stop career center systems

    A key principle stressed by nearly all witnesses testifying 
before the Postsecondary Subcommittee during hearings on this 
issue, was the need for a workforce development system that is 
easily accessible and provides customer choice. Customers 
should have access to all available information and services in 
the system without regard to the point of entry, and access 
should be conveniently located within the community. Customer 
choice through good information on the labor market, provider 
performance, and the availability of vouchers or skill grants 
for training, where appropriate, should be paramount. Customers 
should have the option to select the best service providers 
available in their community and service providers should be 
accountable for providing high quality services and meeting 
high performance standards.
    H.R. 1617 requires States and local workforce development 
areas to establish one-stop career center systems where 
individuals would be provided with the services and delivery 
structure described above. The intent of requiring 
establishment of these systems was not meant to be 
prescriptive, as States and localities determine how best to 
develop such systems to meet their individual needs. The intent 
is, however, to require the integration of workforce delivery 
programs into a comprehensive, user friendly system, that is 
easily accessible, regardless of the point of entry--whether 
through a comprehensive, co-located one-stop center, or through 
an electronically-linked affiliated site. The intent is that 
the system also provide customer choice as described above. 
While the Committee bill does not require the establishment of 
one-stop centers, their establishment is encouraged. In fact, 
the bill encourages the establishment of networks of 
comprehensive and fully-integrated co-located one-stop career 
centers, combined with multiple affiliated sites that are 
linked through electronic and technological access points. 
Although a large number of States are moving in the direction 
of one-stop delivery of services, most communities do not yet 
have a single place for individuals to go to find information 
about available jobs, about what skills are needed to do a job 
or advance in a career, or how to find the training needed for 
such jobs. It is the hope that by the end of the authorization 
period, that all communities will have established such 
systems.

    performance measurement, accountability, and shared information

    In recommendations made to the Committee on reform of the 
U.S. workforce development system, the Business Roundtable 
(BRT) stressed:

          A quality assurance system, based on high standards 
        for program performance and skill attainments, is 
        essential for job training programs. * * * Performance 
        and skill standards-based accountability must become a 
        fundamental principle of any new workforce development 
        system. Training programs should provide the 
        competencies employers need and prepare workers for 
        jobs in the high performance workplace. It is critical 
        to benchmark current programs to determine their 
        effectiveness in achieving employability outcomes.

    The Roundtable went on to say:

          Program performance standards are essential for 
        administrators and service providers. Standards should 
        correspond to private sector total quality 
        requirements, including specifying well-defined 
        processes and capabilities and promoting continuous 
        improvement. Standards should permit realistic 
        measurement of program effectiveness in terms of key 
        outcomes, such as employment, earnings, and customer 
        satisfaction. Occupational skill standards, or 
        workplace competency standards, should drive program 
        design, be defined by customers and be established at 
        world-class levels. A starting point should be the 
        workplace readiness skills developed by the Labor 
        Secretary's Commission on Achieving Necessary Skills 
        (SCANS). Programs must make special efforts to achieve 
        standards endorsed by the National Skill Standards 
        Board.

    In line with these recommendations of the business 
community and elsewhere, H.R. 1617 contains accountability 
language that encourages States to meet world class standards, 
without establishing prescriptive, ``one-size-fits-all'' 
national standards. The bill requires States to establish their 
own, individual performance measurement systems, recognizing 
the individual characteristics and needs of the different 
States. Such systems must include goals, and benchmarks set by 
the State for measuring the continuing progress of its 
workforce development and literacy programs in meeting such 
goals, building on performance measures included for each of 
the 4 consolidation grants established or amended under this 
legislation. States are also encouraged to take into account 
post-program surveys measuring customer satisfaction of both 
employers and program participants in the establishment of such 
goals and indicators.
    At the national level, the Secretaries of Education and 
Labor, in collaboration with the States and with 
representatives of business and industry, employees, 
educational agencies, service providers, participants, and 
others, are required to develop technical definitions of each 
of the core indicators described in this Act (such as the 
definition of job placement and retention), that are to be used 
in measuring performance, and to identify world class levels of 
performance with respect to appropriate core indicators of 
performance. The bill states that where appropriate, such 
standards shall reflect industry-recognized skill standards and 
national education goals.
    Finally, the bill includes technical assistance and 
corrective action provisions for States and for local entities 
that continue to fail to meet the State-set performance 
standards.

                  amendments to the wagner-peyser act

    The U.S. Employment Service (ES), also known as the Job 
Service, was established by the Wagner-Peyser Act of 1933 
during the worst economic depression in the Nation's history. 
The Act established a nationwide network of State-operated, 
Federally-financed employment service offices to serve as a 
labor exchange to match available workers with available jobs. 
Currently the Employment Service is a joint Federal-State 
government administered job placement and referral system. The 
ES registers unemployed workers seeking employment, solicits 
job openings from employers, and refers job seekers to jobs. 
During the 1960s, ES was directed to give special attention to 
the needs of the poor among job seekers. Today, ES serves all 
individuals seeking employment, regardless of income.

                 federal funding associated with the es

    The total FY95 Federal appropriation for ES is $845 
million. Pursuant to the Social Security Act, these funds are 
drawn from the Unemployment Insurance Trust Fund, collected 
from employers under the Federal Unemployment Tax Act. In 
addition, for FY95, $120 million has been appropriated to the 
ES to provide grants for the establishment of one-stop career 
systems. However, because this Committee feels that due to the 
fact that the Wagner-Peyser Act is financed almost exclusively 
by employers through the Federal Unemployment Tax Act (FUTA), 
there is an obligation to ensure that these funds are used for 
their intended purpose which is to maintain a national system 
of employment services.
                      Services Provided by the ES

    In addition to job referral and placement, local ES offices 
may offer job seekers and employers a range of services and 
assistance--including testing, counseling, job search 
workshops, resume-writing instruction, interviewing techniques, 
job fairs, labor market information, mass screening, analysis 
for restructuring jobs, outplacement assistance, and 
specialized recruitment to meet affirmative action plans.
    The ES is also responsible for carrying out several Federal 
and State mandates. Specifically, certifying the need for alien 
workers; providing vouchers or skill grants to job seekers in 
connection with the Targeted Jobs Tax Credit (TJTC) program and 
certifying employer eligibility for the TJTC; recruiting 
domestic migrant and seasonal farmworkers and monitoring ES 
services to this group of workers for regulatory compliance; 
and certifying individual eligibility for such programs as 
Federal guaranteed loans and work programs.

                        Administration of the ES

    Currently, 54 State Employment Security Agencies (SESAs) 
and their network of over 1,700 local offices jointly 
administer the public Employment Service with the Department of 
Labor. In 1982, amendments to Wagner-Peyser gave State 
governments primary responsibility for ES program design and 
operation. At the Federal level, the ES is administered out of 
the Employment and Training Administration within the 
Department of Labor. The primary advocacy groups for this 
program include: the Interstate Conference of Employment 
Security Agencies (ICESA); and the American Federation of 
Federal, State, County, and Municipal Employees (AFSCME), who 
represent State ES workers.

                          Assessment of the ES

    A study released in 1993 by the Upjohn Institute of 
Employment Research found that the ES had a positive effect on 
shortening the period of unemployment for Unemployment 
Insurance (UI) claimants that were considered long-term 
unemployed. UI claimants who had been unemployed for 30 weeks 
or more returned to work 9 weeks sooner than they would have 
had they not used the ES. In comparison, UI claimants who had 
been unemployed for roughly 12 weeks only reduced their 
unemployment, at most, by 2 weeks. The authors concluded that 
the shift from a 2-to-9 week reduction in unemployment 
suggested that the ES is particularly effective in aiding a 
relatively small segment of the claimants who have trouble 
finding work on their own.
    Further, the study shows that most ES users accept jobs 
after exhausting UI benefits, suggesting that jobs obtained 
through the ES are preferable to remaining jobless, but do not 
compare favorably with jobs held prior to becoming unemployed. 
Thus, the study concludes that the ES primarily acts as a 
backstop to prevent large earnings losses.
    Over the past 6 years the GAO has released two different 
studies on the Employment Service. In 1989 they examined 
variations in local ES office performance and found significant 
variations in placement rate, permanent placement ratio, and 
placement wage ratio. Specifically, placement rate ranged from 
over 30 percent in some offices to below 10 percent in others. 
Similarly, the percentage of those placements that were in 
permanent jobs ranged among offices from 80 percent or more to 
less than 40%.
    A 1992 GAO report found that ES placement performance was 
better in States that guided ES program performance through (1) 
measurable goals reinforced by achievement awards and (2) 
annual on-site evaluations of local office operations. Even in 
areas of high unemployment, local office placement rates were 
80 percent higher in States that adopted both management 
practices compared with offices in States that did not use 
either practice. Further, the GAO study found better results in 
ES offices that: placed greater emphasis on meeting the needs 
of job seekers and employers, including consistent outreach to 
employers; who had more interaction with JTPA and other 
training programs; who were separated from local UI offices; 
and who offered self-service job information as well as 
services focused on individualized attention.
    In order for our U.S. employment/training system to be 
successful, we need a labor exchange function in each local 
community that is truly effective. This is increasingly 
important as many want to move toward an ``employment first'' 
workforce policy, where emphasis in all of our employment/
training programs is placed on employment for job-ready 
participants first, and training is only provided to those 
individuals who are determined to be in need of such training 
in order to become employable.
    Although ES provides services to millions of workers at a 
relatively low cost--with one study estimating the benefit-cost 
ratio at 1.8%--evaluations by the Department of Labor have 
found that ES accounts for only a small percent of total job 
placements in the American economy; a majority of job vacancies 
listed with the ES are relatively low paying, entry-level 
positions in domestic services, clerical occupations, and high 
turnover blue collar occupations; and the applicant pool of the 
ES consists primarily of persons with special labor market 
difficulties, limited work experience, and few vocational 
skills--underrepresenting workers from the ``mainstream'' labor 
force. As a result, employers tend not to utilize the system. 
However, many States are developing innovative practices to 
expand and improve their systems, for example, North Carolina 
and a handful of other States have pioneered placing their 
information on the INTERNET, greatly expanding the access to 
the information they provide. It is initiatives such as these 
that the CAREERS Act hopes to build upon and expand throughout 
the nation.

                        Labor Market Information

    Labor market information (LMI) is an essential structural 
element supporting all other programs and services under the 
CAREERS Act. The legislation builds on the foundation of 
existing national data programs to create a nationwide system 
for information that will be integrated from local to State to 
national levels and where data will be consistent across 
States, enabling Governors to compare the effectiveness of 
workforce development efforts and employers and jobseekers to 
make informed choices.

                               Background

    Labor market information, (LMI) as defined in a recent 
report commissioned by the Department of Labor, is ``The body 
of knowledge that describes employment, unemployment and the 
factors that relate to labor demand and supply. These factors 
include trends in industrial and occupational structure, wage 
levels, job requirements, and the demographics of the labor 
force and population. The many users of this information 
include employers, job seekers, policymakers and analysts, 
economic developers, economists and planners of employment, 
training and education programs.''
    The Manpower Development and Training Act of 1968 called 
for the creation of a comprehensive labor market information 
system to meet the needs of public and private users in 
recruitment, counseling, education, training, placement, job 
development and other activities.
    In the 1970's, there was an effort to meet the requirements 
set forth under MDTA. The LMI division of the Employment and 
Training Administration (ETA) funded labor market information 
intended to address State and local information needs. This 
emphasis was important--it was driven in part by an 
understanding that the ultimate decisions on how Federal funds 
are used to support human resource development programs are 
made at the State and local levels, and it made sense to 
support information that assisted in making these decisions. 
National data do not meet these needs, because labor markets by 
their nature are local in most instances.
    During the period from 1978 to 1982, funding for some data 
activities moved from ETA to the Bureau of Labor Statistics 
(BLS). For a short period, BLS continued to support some of the 
State and local information needs, such as processing of State 
occupational projections. (BLS also continued the State and 
area component of the Current Employment Statistics, Local Area 
Unemployment Statistics and Occupation Employment Statistics 
programs.)
    The National Occupational Information Coordinating 
Committee (NOICC) and its State counterparts (SOICCs) were 
created in 1976 and 1977. The main purpose of the NOICC/SOICC 
network was to coordinate and deliver occupational information. 
During the period from 1979 to 1981, Occupation Information 
Systems were developed, and some States began to put such 
systems into place.
    The NOICC/SOICC currently continues to be very much focused 
on the State and local customer. It is not, however, a 
developer of new information in the sense that it does not 
support data collection activities. Rather, it focuses on 
delivery and technical support, including training.
    From 1982 to 1992, support for State and local LMI 
decreased significantly in terms of funding and technical 
support. Because of funding limitations, BLS discontinued 
support for State occupational projections. The Federal-State 
cooperative data programs were driven to a large degree by 
national needs. ETA-LMI funding declined significantly during 
the 1980s. NOICC funding during the mid-1980s went down 
significantly, rose again, and then the Department of Labor 
proposed eliminating NOICC in the early 1990s. What has since 
developed is a fragmented and inconsistent patchwork of 
information programs. According to the ``Legislative Funding 
Guide,'' published by the Interstate Conference of Employment 
Security Agencies (ICESA), there are currently 26 statutory 
requirements for labor market information, including 35 labor 
market products.
    Within this context, the Department of Labor has recently 
focused increased attention upon labor market information. 
Currently, efforts are underway in the establishment of 
America's Labor Market Information System (ALMIS). This 
initiative is centered around four principal initiatives 
including: grants to all States for core products and services; 
creation of research and development consortia to develop and 
support LMI gathering and dissemination; creation and expansion 
of a job/talent/help wanted bank network to make labor exchange 
information more readily available to job seekers and 
employers; and, support for one-stop implementation States and 
common systems.
    The Committee assumes that the initiatives in establishing 
a comprehensive system of LMI under the CAREERS Act will build 
upon the work of these initiatives, the work of the NOICC/SOICC 
system, as well as those elements of the past efforts in this 
area which have proven to be successful.

 TITLE II--YOUTH DEVELOPMENT AND CAREER PREPARATION CONSOLIDATION GRANT

                        Need for the Legislation

    Our existing system to prepare young people for the future 
world of employment is not a system at all, but rather a 
collection of strategies, programs, and initiatives delivered 
by three levels of government and a confusing array of 
education, training, and social service institutions. There is 
no clear national vision or inter-institutional strategy in 
this area. The most significant programs serving the career-
related education, employment, and training needs of youth in 
this country are authorized under the Carl D. Perkins 
Vocational and Applied Technology Education Act, the Job 
Training Partnership Act, and the School-to-Work Opportunities 
Act--all with differing missions, different approaches to 
service delivery, and differing levels of success. However, the 
common thread between these programs is that they are intended 
to educate or train young people to prepare them for employment 
and self-sufficiency. In an effort to reform these programs, 
H.R. 1617 repeals these three statutes, and in their place, 
establishes a new comprehensive Youth Development and Career 
Preparation Consolidation grant program.
    As noted by David A. Gruber in his report for Jobs for the 
Future, entitled, ``Toward a Seamless System for Youth 
Development: A New Strategy for Integrating Resources, 
Programs, and Institutions,'' among the public schools, the 
postsecondary educational system, JTPA providers, social 
service organizations, and the employer community, especially 
after the changes begun under the School-to-Work efforts of the 
past several years, there exists an impressive institutional 
base and significant resources for serving young people more 
effectively. When we enacted the School-to-Work Opportunities 
Act last Congress, with bi-partisan support, we laid the 
groundwork for a coordinated approach to youth training 
initiatives. H.R. 1617 builds on this approach. Although this 
bill repeals the Carl Perkins Act, JTPA and the School-to-Work 
Opportunities Act, it builds on the school-to-work framework 
and incorporates its basic components while establishing a new 
Comprehensive Youth Development and Career Preparation 
Consolidation grant program.

            History of Federal Vocational Education Programs

    The Federal government has directly supported vocational 
education for close to 80 years. Beginning in 1917 with the 
Smith-Hughes Act, a permanent appropriation was allocated to 
States for limited program areas such as agriculture and home 
economics. It also detailed program requirements such as hours 
per week and hours per year to be spent on instruction.
    Current vocational education law can be traced to the 
Vocational Education Act of 1963 (VEA). This Act continued 
general support for high school vocational education but also 
directed funds for programs to serve special groups (i.e. 
disadvantaged students). In addition, the VEA increased 
requirements for planning and more strongly encouraged new 
programs. Funding for postsecondary vocational education and 
for workers' training and retraining programs was also 
instituted under the 1963 VEA.
    The 1968 and 1976 Amendments to the Vocational Education 
Act expanded many of the programs and ideas introduced in the 
1963 Act. The 1968 Amendments incorporated the Smith-Hughes Act 
into the VEA. The 1968 Amendments also required that Federal 
vocational education funds should be used for programs serving 
disabled students. The 1976 Amendments expanded requirements 
for State and local planning and evaluation. In 1984, the Carl 
D. Perkins Vocational Education Act amended and replaced the 
VEA. The Perkins Act, while similar to its predecessor, 
differed in regard to increased funding for special populations 
and program improvement. For example, the Perkins Act required 
that 57% of each States' basic grant be used for vocational 
education needs for special populations, such as disadvantaged 
and disabled students and the remaining 43% was required to be 
used for improving vocational education in general.
    The 1990 Amendments renamed the Perkins Act the Carl D. 
Perkins Vocational and Applied Technology Education Act. The 
1990 Amendments made several major changes to the Act requiring 
more integration of vocational and academic courses, 
eliminating specific dollar set-asides for select groups and 
created the Tech-Prep program. The 1990 Amendments began to 
focus vocational education more on broader skills combining 
academics and vocational skills.
    While the 1990 Amendments made changes in the system, we 
are now in 1995 at a crossroads with vocational education. It 
is time to advocate change and to chart a new course. As the 
National Assessment of Vocational Education (NAVE) Report to 
Congress states:

          We advocate that the new Perkins Act break with the 
        past. While many of the goals of the 1990 Act were set 
        in the right direction, the results have been 
        disappointing in many areas. We recommend a major 
        change in the nature of the Federal government's 
        involvement in vocational education. We propose a 
        radical new role for the Federal government in 
        supporting vocational education: fostering a truly 
        comprehensive system of preparation for work.
    History of Federal Job Training Programs for Disadvantaged Youth

    The Job Training Partnership Act (JTPA), first enacted in 
1982, is the authorizing statute for the Nation's programs with 
the primary purpose of providing employment and training 
assistance to disadvantaged and out-of-school youth. JTPA's 
title II-C, year-round program for disadvantaged youth provides 
direct training and training-related services to help prepare 
economically disadvantaged youth (ages 14-21) for participation 
in the workforce. The program requires an assessment of skills 
and service needs for each participant, the development of a 
service strategy to determine employment and achievement goals 
and appropriate services, and a review of participant progress. 
While progress has been made in recent years in serving harder-
to-serve youth, and providing longer-term interventions, the 
JTPA youth program has been criticized for providing short-term 
employment and training assistance that has not proven 
effective for at-risk youth. In fact, one of the few major 
Department of Labor-sponsored national studies on the JTPA 
system (conducted in the mid-1980's)--the Abt Study--found 
JTPA's youth programs to be ineffective, and in some cases, 
resulting in negative earnings outcomes for disadvantaged male 
youth.
    In addition to the title II-C Year-Round Youth Program, 
title II-B of JTPA, the Summer Youth Employment and Training 
Program, provides employment and training activities during the 
summer months for economically disadvantaged youth to 
strengthen basic educational skills, encourage school 
completion, provide work exposure, and enhance citizenship 
skills. This program also requires an assessment of skills and 
service needs for each participant, the development of a 
service strategy to determine employment and achievement goals 
and appropriate services, and a review of participant progress. 
Young people receive wages for work performed, and those who 
have been assessed as needing basic and remedial education or 
preemployment and work maturity skills training, must be 
provided such services. In the summer of 1993, the Summer Youth 
Employment Program provided summer jobs to 620,000 
disadvantaged youth.
    There has been a growing concern over the years that 
individuals served under JTPA's youth programs were less 
responsive to service interventions than their adult 
counterparts. The amendments to JTPA in 1992 separated the 
year-round youth program and the summer youth employment 
program, and focused services on harder-to-serve populations 
and increased numbers of out-of-school youth. However, JTPA's 
short-term approach for at-risk youth continues to raise 
significant concerns.
    In testimony provided to the Committee by Dan Bloom, on 
behalf of the Manpower Demonstration Research Corporation 
(MDRC), Mr. Bloom explained that during the past 20 years, 
after rigorous tests of programs and policies designed to 
improve the education attainment, employment, and the earnings 
of disadvantaged youth, the results have been pretty 
discouraging. However, several programs, as pointed out by 
Bloom, that combined sustained services, adult role models, and 
financial incentives succeeded in raising school completion 
rates among youth who are in school but who are at risk of 
dropping out. In fact, one small-scale demonstration program 
noted by Mr. Bloom, the Quantum Opportunities Programs, run by 
the Occupational Industrialization Centers of America, has 
achieved dramatic results through an intensive 4-year program, 
including education supports like tutoring, community college 
and college planning, sustained adult mentoring, and modest 
stipends.
    It has been more difficult to find promising second chance 
models for out-of-school youth. The MDRC has found positive 
results with the Job Corps program. The Center for Employment 
Training, (CET) program, headquartered in San Jose, California, 
and replicated in 40 cities throughout the country, has also 
achieved strong results for school dropouts by operating 
relatively short-term, but highly intensive hands-on training 
programs with high growth industries, and building close 
linkages with the local business community. MDRC's findings 
indicate that programs that integrate classroom-based 
instruction with experiential learning at the workplace can 
transform the education experience of young people, both in-
school and out-of-school, and can lead to career opportunities 
and postsecondary education. The linking of work and training 
also hold promise for school dropouts, as proven in the 
successful Youth Build program.
    Representatives from both the CET and the Youth Build 
programs testified before the Subcommittee on Postsecondary 
Education, Training and Life-Long Learning on what makes their 
programs successful in reaching at-risk, out-of-school youth. 
Russ Tershy, President of CET, testified that CET's success is 
due in large part to their emphasis on learning by action 
(contextual learning) that is tied to workbased learning. He 
further explained that CET challenges and has high expectations 
for even the hardest to serve individuals. That the program is 
tightly linked with industry, and hires teachers right out of 
industries, developing curricula and teaching students on up-
to-date training techniques and equipment. He stressed that 
CET's teaching is holistic, intensive, individualized, and 
self-paced. Cindy Dotson, testifying on behalf of the York 
Cripus Attucks YouthBuild program, also stressed the need to 
integrate workbased and academic learning. YouthBuild focuses 
on teaching out-of-school youth to achieve their GEDs, at the 
same time as working and learning on construction sites 
rehabilitating public buildings for the community, stressing 
community involvement and pride. Again, YouthBuild students 
work with local contractors (employers) to gain hands-on 
experience and to further their vocational education. With 
YouthBuild as with CET, the program is holistic.
    Testifying as to the success of work-based learning 
programs serving the needs of at-risk in-school youth, Mr. Neil 
Derrough and Ms. Brene Patrick of the San Diego Private 
Industry Council, stressed the importance of employer 
involvement, and strong ties between school-based and work-
based learning. Under the San Diego Private Industry Council's 
school-to-work program, JTPA's summer youth employment program 
has provided a valuable tool for providing work experience that 
is complementary to disadvantaged youths' school-based learning 
experiences. And Ms. Sharon Robinson, Director of OIC West in 
Menlo Park, California, testified about the success of their 
after-school SASSY program, encouraging and assisting at-risk 
youth to stay and to succeed in school through academic and 
vocational tutoring and complimentary supportive services.
    In particular, it appears that longer-term interventions, 
with the core components contained in school-to-work transition 
programs, such as integrated academic and work-based learning, 
a paid work experience, and a strong emphasis on mentoring--can 
have positive results with at-risk and disadvantaged youth. 
This sort of approach can also work with out-of-school youth, 
in an alternative education setting. Building on this 
assumption, the Committee has built the Youth Development and 
Career Preparation program around this model. While 
consolidated into a single block grant to States, 2 subsystems 
are envisioned at the State and local levels--one for in-school 
youth, and one for at-risk and out-of-school youth.

                   History of School-to-Work Programs

    The School-to-Work Opportunities Act, signed into law in 
1994, established a national framework for all States to create 
statewide systems that help young people move from school to 
jobs and further education. It is not a program. Rather, it was 
designed to help facilitate the creation of a national, high-
quality school-to-work transition system that enables students 
to identify and progress through well defined pathways that 
lead to productive and challenging employment. This was done 
through a joint effort between the Department of Labor and the 
Department of Education in administering grants to States for 
the development of highly structured systems that improve 
schools and move students into jobs and careers.
    The Act required components and goals of school-to-work 
transition systems which included:
          A work-based learning component--a program of job 
        training and work experience which included: (1) skills 
        to be mastered that lead to the award of a document 
        which certifies that the skills have been attained; (2) 
        work experience for students while they learn on the 
        job; (3) workplace mentoring; (4) instruction in 
        general workplace competencies; and (5) instruction in 
        a variety of elements of an industry;
          A school-based learning component which included: (1) 
        career exploration and counseling to help students to 
        identify, select, or reconsider their interests, goals, 
        and career majors; (2) a program of study that meets 
        high academic standards and meets the requirements 
        necessary to earn a skill certificate; (3) regularly 
        scheduled evaluations to identify academic strengths 
        and weaknesses; and
          A work and school connecting activities component 
        which required: (1) matching students with employers' 
        work-based learning opportunities; (2) a person to 
        serve as a liaison among employers, schools, teachers, 
        parents, and students; (3) technical assistance and 
        services for employers to help them design work-based 
        learning components; (4) training for teachers, 
        business mentors, and school counselors; (5) help for 
        students who complete school-to-work programs to find a 
        job or to continue their education; (6) linking youth 
        development activities under the Act with employer 
        strategies for upgrading worker skills; and (7) 
        collection and analyzing information about what happens 
        to students who participate in school-to-work programs.
    Efforts in the development of the school-to-work model 
began under the Bush Administration, and were continued under 
President Clinton with the support of a bi-partisan Congress. 
H.R. 1617 retains the core components of school-to-work. The 
Committee envisions the activities under this to be activities 
that are consistent with a school-to-work approach.

                          Direction of Reform

    Developing a highly skilled workforce is an issue of 
national priority. This Committee believes there is a Federal 
role in supporting State and community workforce preparation 
and education programs. There is nothing more important to the 
success of business than human capital. The need to develop the 
skills of the American workforce is critical to our success in 
the world marketplace.
    The Federal government has a vital interest in investing in 
education and employment assistance programs that develop a 
skilled workforce of the future. Every dollar invested in the 
skills of a future American worker through quality career 
preparation programs is returned to the Federal Treasury, to 
States, and to local communities by increased revenues from 
workers in higher wage jobs.
    Various studies, including the National Assessment of 
Vocational Education, have found that students who concentrate 
in occupational areas earn more after graduation than students 
enrolled in a general education track. They are also more 
likely to continue their education after high school, and 
continue to earn more than general track students throughout 
their careers. Studies show that vocational-technical students 
are less likely to drop out of school, thus saving the Federal 
government, as well as State and local governments, the 
additional costs incurred through higher welfare payments, 
unemployment benefits, retraining and remediation programs. 
Furthermore, policies to increase the years of schooling at 
mainstream educational institutions (high schools, vocational 
institutions, community colleges, and universities) for low- 
and moderate-income youth appear to have a high economic 
payoff. Card's 1994 survey in this area indicates that an 
additional year of schooling increases the future earnings for 
those from disadvantaged families by approximately 8 percent to 
12 percent per year. In his testimony before the Subcommittee, 
Dr. Lawrence Katz of Harvard University noted that ``These high 
returns to mainstream schooling combined with more 
disappointing results from interventions for out-of-school 
youth indicate that interventions to reduce high school dropout 
rates and school-to-work programs linked to community colleges 
and employer-training are fruitful areas for investment and 
further research and experimentation.''
    The NAVE report concurs:

          Technical and occupational skills are critical to 
        building a high-skill, high-wage American workforce. 
        Individuals with vocational training (especially at the 
        postsecondary level) who obtain related jobs enjoy 
        higher wages than their peers with a general secondary 
        education. On a broader scale, many of the firms that 
        have used highly skilled workers to transform their 
        enterprise to a high-performance work organization have 
        benefitted on their bottom line. A desire to meet 
        world-class levels of productivity and competitiveness 
        should propel us toward better vocational education, 
        not less. The definition of vocational education may 
        need to change, to embrace an integrated mixture of 
        cognitive, industry-related and occupationally specific 
        skills, but vocational education will remain a vital 
        part of this nation's preparation of individuals for 
        work.

    While there is a Federal role in helping to support 
creating a quality youth development and workforce preparation 
system, it must change from our past history. In order to meet 
the challenges presented by a global workforce and the goals of 
educational reform, change is a necessary event. As stated by 
Assistant Secretary Augusta Souza Kappner during the March 3, 
1995 hearing before the Subcommittee on Postsecondary 
Education, Training and Life-Long Learning: ``The change taking 
place in vocational education is directly related to the 
rapidly changing needs of today's economy. Jobs are requiring a 
higher level of academic and technical skills. Employers are 
telling us clearly that too many young people cannot meet the 
rigorous demands of today's workforce. To keep America 
competitive in the global economy, we must educate our young 
people to much higher standards and prepare them to be lifelong 
learners.''
    Vocational education and Federal training programs for 
youth, as we know them today must change--and must change 
dramatically. The education community must join with local 
business and community leaders to reinvigorate old programs. 
Vocational education has failed in efforts to adequately or 
consistently meet the needs of businesses and they must reach 
out to local employers and work with them. Employment and 
training programs for youth have not sufficiently focused on 
the education and skill needs of youth participants. Business 
and education must form partnerships to ensure that our 
nation's youth--our future leaders--are prepared to enter the 
working world and will succeed. The Committee envisions a 
partnership that strengthens our school systems, strengthens 
local businesses and strengthens local communities.
    NAVE outlined several principles critical to any reform 
initiative developed regarding workforce preparation for youth. 
Two of those principles were:

          First and foremost, the vocational/career-related 
        education should become an integral part of a reformed 
        American system of education and training. A 
        comprehensive system would provide all students with 
        access, multiple entry and exit points, clear education 
        pathways, quality program, high standards, information, 
        and linkage to the labor market.
          Vocational/career-related education should be high 
        quality: It should be competency-based, with industry 
        involvement. Industry-oriented skill standards should 
        be used as the mechanism for connecting vocational 
        education to the system of education and training. In 
        combination with academic and employability skills, 
        skill standards will provide all students with a 
        rigorous preparation for work and life.

    And these principles apply to the newly reformed system in 
CAREERS.
    The efforts begun over the past several years in the area 
of establishing school-to-work transition programs have 
attempted to move the system in the right direction. By 
repealing the School-to-Work Opportunities Act enacted last 
Congress, the Committee does not want to send the signal that 
it does not like that direction, or want these efforts to 
cease. Quite the contrary, school-to-work is what CAREERS is 
about in this newly reformed youth program. The Committee's 
intent however, is to develop a comprehensive system, where 
school-to-work, or school-to-career education and training is 
at the center for all youth. While the leveraging approach 
taken under the School-to-Work Act was a laudable approach, it 
has been determined by the Committee that there is no time to 
wait for the encouragement of such reforms in existing 
programs. Now is the time to force change in our major programs 
serving the career-related needs of youth today.
    The primary purpose of Title II, the Youth Development and 
Career Preparation Consolidation Grant, is to provide States 
and localities with maximum flexibility in designing career 
preparation programs that help youth attain both the academic 
and occupational skills necessary to succeed in a global 
economy. The focus must be on the students and competencies 
achieved, not the process. In preparing for a high-skilled, 
high-performance workplace, every young person must have access 
to high quality educational programs that meet employer 
standards and that take place in a variety of learning 
environments including school, the workplace and the community.
    At the core of this new system, for in-school, and for at-
risk (including out-of-school) youth alike, funding will be 
used for programs that:
          Integrate academic, vocational, and work-based 
        learning, stressing applied and contextual learning 
        through a coherent sequence of courses resulting in the 
        achievement of academic and occupational competencies;
          Involve employers in the design and implementation of 
        programs, including in the development of curriculum;
          Establish effective linkages between at-risk youth 
        programs, secondary, and postsecondary education;
          Provide work-based learning experiences with adult 
        mentoring, and to the extent practicable, that provide 
        an understanding of all aspects of an industry as tied 
        to the student or participant's career major; and
          Provide career exploration, career awareness, and 
        career guidance opportunities, beginning in the 
        earliest grades possible.
    In addition, the same high performance goals are provided 
for in-school and for at-risk youth. Such goals stress the 
importance of positive outcomes tied to high academic and 
skills attainment; retention in school or the return to an 
alternative education program resulting in a diploma or its 
equivalency, or a skill certificate; placement and retention in 
employment; or other positive outcomes.
    Development of a highly skilled workforce is an issue of 
national importance. The Federal investment should be a 
catalyst for change for State and local efforts. The CAREERS 
Act will have a significant impact on the vocational education 
system currently in place. The opportunity for flexibility, 
adaptation and change are essential to the continuous 
improvement of a comprehensive workforce development system.
    As Governor John R. McKernan, Jr. stated in testimony 
before this Committee:

          Let me say, first, that with the advent of the 104th 
        Congress, there is an unprecedented opportunity to 
        review, eliminate and consolidate ineffective 
        employment, training and education programs. We should 
        look ahead to our changing workforce needs and design a 
        new, comprehensive, innovative and flexible workforce 
        development system accountable to all the key 
        stakeholders. Current government programs have become 
        obsolete because they are not driven by results nor 
        accountable for success. Today's federally supported 
        training and education programs are largely isolated in 
        separate categorical programs and designed with no real 
        relationship to local labor market needs. The old way 
        of creating individual programs for specific needs and 
        population is no longer appropriate. Under a new 
        system, all workers employed, unemployed, and 
        disadvantaged, would have access to a comprehensive 
        system that delivers the education and training 
        demanded for jobs in the rapidly changing modern 
        workplace.

    We have consolidated and eliminated programs. We have to 
provide a foundation upon which States and localities can serve 
the roughly 75% of youth who do not complete a four year 
college degree, and those who are at-risk of dropping out or 
who have already dropped out of school. It is these students 
who are often forgotten. We want them to succeed. We want them 
to have productive lives and enjoy life. We are trying to 
prepare the youth of today for the jobs of tomorrow and trying 
desperately to give them the skills they will need to succeed. 
To quote Robert Maynard Hutchins, an American educator, ``The 
object of education is to prepare the young to educate 
themselves throughout their lives.''
    Our current system is fragmented. It is not serving our 
youth well and it is not serving business.

          Unlike many other industrialized nations, this 
        country still lacks a comprehensive system of workforce 
        preparation. Educational programs and institutions 
        operate in loosely coordinated, sometimes disconnected 
        ways, and individuals are left on their own to navigate 
        their way through them and into the labor market. (NAVE 
        Report, June, 1994)

    As pointed out in an article written for the National Youth 
Employment Coalition and the American Youth Policy Forum, Joan 
Wills, Director of the Center for Workforce Development at the 
Institute for Educational Leadership stated:

          The past decade has been a period in which U.S. 
        workforce preparation policymakers have been engaged in 
        a substantial amount of collective soul searching in an 
        effort to find more cost efficient ways to organize and 
        manage our governmental services * * *. We have learned 
        a great deal from this period which can help guide the 
        next generation of workforce preparation programs. Some 
        of the key lessons from the past which should be used 
        to help guide the future include: (1) for young people 
        short-term interventions are insufficient--multi-year 
        investment that begin early and are age and stage 
        appropriate are essential and adult mentors are 
        indispensable; (2) most individuals learn better 
        through active applied learning situations (for 
        example, it is often the case academic learning has 
        double the impact when it is job related; (3) the 
        quality of curriculum and the form of instruction can 
        be more efficient and effective if computer assisted 
        technologies are used) * * *; (4) career preparation 
        programs need to be organized as staged programs of 
        study based upon required knowledge of the workplace 
        which ignore the institutional boundaries where 
        learning takes place; (5) both youth and adults can 
        meet high expectations (standards) if the learning 
        environment promotes self-respect and responsibility; 
        (6) the knowledge and skills of the instructors and 
        other service staff is a key variable in the quality of 
        programs; (7) a program for every problem will not 
        promote positive youth and adult learning; (8) quality 
        information is essential for customers of workforce 
        preparation services to make prudent choices. Yet our 
        government education and labor market information 
        services is a patchwork of incomplete and disjointed 
        data with marginal quality; (9) the past mechanisms to 
        involve the employer community in the wide array of 
        workforce preparation programs have placed an undue 
        emphasis on corporate social responsibility activities 
        and insufficient attention on the central importance of 
        learning within the workplace and assisting in the 
        development of programs of study based on skill 
        standards; and (10) the current intergovernmental 
        planning, resource allocation process, management 
        information systems, case management procedures, 
        performance measures, and institutional incentives 
        utilized in most government-supported programs are 
        woefully inadequate and contribute substantially to the 
        fragmented non-system of workforce preparation 
        throughout the country.

    The solution is a seamless system that strengthens 
education and training. One that integrates academic, 
vocational and workbased learning, stressing high academic and 
skills attainments for all youth, involving employers with 
educators at all levels. Education and training should be 
married so that they complement each other and are thought of 
as ``one'' and not ``two''. Education is a life-long event. It 
does not stop the day a student graduates from school. 
Education and training are continual and necessary events in 
our adult lives. As Gunnar Myrdal, a Nobel prize-winning 
economist stated, ``Education has in America's whole history 
been the major hope for improving the individual and society.''

      TITLE III--ADULT EMPLOYMENT AND TRAINING CONSOLIDATION GRANT

                                history

    Efforts by this Committee and its predecessor, the 
Committee on Education and Labor, to assist adults in securing 
stable, high paying jobs, extend as far back as the 1930's with 
the passage of the Fitzgerald Act, which to this day, provides 
the statutory language for the Federal involvement in 
apprenticeship training. The Job Training Partnership Act 
(JTPA), which is the primary legislation providing adult 
training services today, has its roots back to 1961, when 
Congress enacted the Manpower Development and Training Act 
(MDTA). This was President Kennedy's approach to addressing 
upward creep of unemployment and the impacts of automation 
which demanded higher skilled workers. MDTA assisted unemployed 
individuals in qualifying for existing jobs demanding specific 
skills. Eventually, amendments increased targeting to hard-to-
serve adult populations and established ``skill centers'' that 
provided remedial education and skill training.
    This program was followed by the Comprehensive Employment 
and Training Act (CETA) in 1973. CETA was established as a 
result of the Nixon Administration's widespread support for 
decentralization and decategorization of employment and 
training programs. CETA consolidated and coordinated training 
programs and initiated localized planning and implementation 
processes subject to broadly designated Federal criteria. CETA 
also instituted a public service employment component which 
eventually contributed to CETA's demise.
    In 1983 the Job Training Partnership Act (JTPA) was 
established by the Reagan Administration, replacing CETA with 
JTPA and leaving in place many of the basic features except for 
public service employment which was seen as resulting in 
widespread abuse of the program. State and local control was 
maintained and a new role was established for the private 
sector via Private Industry Councils (PIC) in order to provide 
oversight and input as to the type of training being provided. 
Amendments in 1992 increased targeting of resources to those 
most economically disadvantaged and tightened the overall 
accountability of program.
    Under the Bush Administration, a significant effort was 
made to overhaul the nation's job training program. ``Job 
Training 2000'' as it was known, pushed for many of the same 
elements which are currently included in the CAREERS Act. This 
included an increased role of business and industry, an 
emphasis on streamlined delivery of services through one-stop 
centers, and increased responsibility and choice for 
participants through the use of training vouchers.

                       adult categorical programs

    Over the years, the Job Training Partnership Act has become 
a ``tag-on'' for additional categorical training programs for 
adults. In addition to the Act's programs for economically 
disadvantaged adults (Title II-A); dislocated workers (Title 
III); disaster relief employment assistance (Title IV-J); 
microenterprise zones (Title IV-I); and the Jobs for Employable 
Dependent Individuals (JEDI) program (Title V); other 
amendments to JTPA over the years has also expanded the JTPA to 
include the Defense Conversion Assistance (DCA) to help workers 
dislocated as a result of reductions in defense spending; the 
Clean Air Employment Transition Assistance (CAETA) program to 
provide training, adjustment assistance, employment services 
and needs-related payments to workers affected by the 
compliance with the Clean Air Act; the 1991 Nontraditional 
Employment for Women Act, which amended JTPA to include 
requirements relating to the training, placing, and retraining 
of women in nontraditional employment; and the 1993 National 
Defense Authorization Act establishing the Defense 
Diversification Program (DDP) for certain discharged military 
personnel, terminated defense employees, and displaced 
employees of military contractors.
    This proliferation of programs and fragmentation of 
services to targeted groups has been the main thrust behind 
reforming the nations' system of job training programs. A draft 
paper of recommendations from the National Association of State 
Job Training Coordinating Council and Human Resource Investment 
Council Chairs, provides an excellent overview of the problems 
inherent with maintaining these fragmented programs and ways to 
improve the system--many of which are clearly stated within the 
CAREERS Act:

    Designing the next generation of a national workforce 
investment system first requires a major shift from a mind-set 
of curing the needs of clients to a vision of investing in the 
potential of individual workers that preserves the commitment 
to those individuals with the greatest needs. This requires:
          Moving from programs that stigmatize and classify 
        individuals as members of various marginal, dependent 
        populations to a system that respects individuals as 
        customers who have unique talents and capabilities and 
        the potential to take responsibility for their economic 
        well-being;
          Moving from an unemployment system designed in the 
        1930's to deal with temporary layoffs and minimal skill 
        development, to an employment and investment system 
        designed for the 21st century to deal with major 
        economic shifts resulting in permanent layoffs and 
        significant retraining needs;
          Moving from low-skill, short-term training programs 
        to a high skill training system that provides 
        continuous education and training opportunities leading 
        to skill advancements and economic security; and
          Moving from a patchwork of second-chance, 
        disconnected programs targeted to specific population 
        to a coherent, comprehensive, outcome-driven system 
        with universal access and eligibility that is part of a 
        mainstream system of life-long learning valued and used 
        by individuals and employers alike and mutually 
        supported by public and private resources.
                         building on what works

    There is a substantial amount of research and study to 
prove that a ``work-first'' approach seems to determine how 
successful or unsuccessful a particular job training and 
employment program will be. This approach, not surprisingly, is 
found to be successful across programs. This is true, 
regardless of who is being served--from mothers on welfare who 
have never held a job, to dislocated workers who held the same 
job for twenty years. There is ample evidence showing that job 
search assistance either by itself or coupled with other 
services such as on-the-job training, is highly successful.
    The success of a work-first approach for welfare mothers 
was highlighted in testimony before the Subcommittee on 
Postsecondary Education, Training and Life-Long Learning by 
Michael Genest, Deputy Director, Welfare Programs Division, 
California Department of Health and Human Services:

    * * * thanks to Ms. Gueron's evaluation in the MDRC report 
of our four California counties that were extensively studied, 
is that the GAIN Program (California's version of the Job 
Opportunities and Basic Skills (JOBS) established under Title 
IV of Aid to Families with Dependent Children), and I believe 
the other State's jobs programs, can only be successful when it 
is strongly focused on employment.

    He continued,

    I would cite Riverside County as evidence for that, and the 
MDRC report goes into some detail as to what caused that in 
Riverside county, but basically I think the main thing that 
sets Riverside apart and makes it the most effective welfare-
to-work program ever rigorously studied in this country is the 
management, the staff, the providers of service, and the 
participants, all keep their attention focused on that one goal 
of getting a job. I think that job focus is, more than 
anything, responsible for why Riverside County returned $2.84 
of savings for every taxpayer dollar of cost.

    Mr. Genest continued,

    The flip side of that, the other lesson that I think we 
have learned, is that stressing long-term education and long-
term training as opposed to stressing immediate job placement 
does not work. I would cite our Alameda County, which was also 
part of the MDRC report, as evidence of that. In Alameda County 
they truly did focus on long-term educational involvement to 
the exclusion of an emphasis on an immediate job, and that is 
why their program failed, and that is why it returned only 45 
cents in savings for every dollar of taxpayer investment, not 
an acceptable return on investment.

    The success of the work-first approach for unemployed and 
dislocated workers has also been documented in many studies. A 
recent report by the Department of Labor included the following 
summary regarding the use of work-first as part of a ``worker-
profiling'' system, discussed in greater detail later in this 
section:

          Job search assistance clients found a new job more 
        quickly, and receipt of Unemployment Insurance benefits 
        was reduced. Those receiving job search assistance 
        found new employment an average of one-half of a week 
        to 4 weeks sooner than similar individuals who did not 
        receive assistance. Most States averaged around a one 
        week reduction;
          The program was cost-effective for the government. In 
        each State experiment the savings in (UI) payments plus 
        the increase in tax receipts due to faster re-
        employment were more than enough to pay for program 
        costs. Savings to government averaged around two 
        dollars for every dollar invested in targeted job 
        search assistance; and
          Job search participants did not end up in more lower-
        wage jobs than non-participants. Some have argued that 
        mandatory job search leads to workers taking jobs that 
        do not pay as well as jobs they otherwise would have 
        found without the program. There was no evidence that 
        this was the case. In the two experiments where 
        earnings data was available, job search participants 
        not only found work more quickly, but hourly earnings 
        were similar to non-participant workers.

    A major national evaluation of the Job Training Partnership 
Act in 1992 concluded that the impacts of the program for 
adults varied according to the type of services provided: 
generally, short-term classroom training was the least 
successful, and a combination of on-the-job training and job 
search assistance produced the best results. Adults designated 
for either on-the-job training or job search assistance showed 
annual earnings gains of over $1,000 by the final year of the 
study. This represented gains of 13% for men and 17% for women.
    Although these programs maintain a heavy emphasis on work, 
this should in no way be construed to mean that there is no 
role for education and job training. On the contrary, the right 
training, for the right person, for the right job can be 
extremely beneficial both to the individual and to society as a 
whole. The Committee finds that one of the most successful ways 
to determine what services are most appropriate for an 
individual, is through an effective ``worker profiling'' 
system. This approach is currently being used by the Employment 
Services, and refers to the process by which individuals are 
screened using demographic and work history information to 
identify their risk of remaining unemployed long-term, and thus 
have the greatest need for re-employment services.
    For those who are found to be in need of training because 
they simply lack the skill to gain employment, there is also 
encouraging results by job training programs. In 1993, the 
National Commission for Employment Policy issued a report 
``Evaluating JTPA Programs for Economically Disadvantaged 
Adults: A Case Study of Utah and General Findings.'' This study 
is unique in that it utilized Unemployment Insurance (UI) 
earnings records as a measure to compare JTPA participants with 
non-participants. The results found that for women JTPA 
participants enjoyed a $1,000 gain, while men's earnings 
increased by $1,300 compared to those who did not enter JTPA.

                         vouchers/skill grants

    One of the ways this Committee hopes to make training even 
more successful is by expanding the use of vouchers or skill 
grants for training. These vouchers or skill grants are 
intended to increase the flexibility and responsibility of 
individuals in choosing education and training providers, but 
will also result in additional competition between services 
providers. A white paper released by the National Association 
of State Workforce Investment Policy Council Chairs, entitled 
``Advancing America's Workforce,'' expresses support for the 
use of vouchers or skill grants. In one of the guiding 
principles for the reform of the workforce investment system, 
the report states: ``Customers should have the option to select 
the best service providers available in their community, and 
service providers should be accountable to customers for 
delivering high quality services and meeting high performance 
standards.'' Support for vouchers or skill grants has also come 
from the National Commission for Employment Policy, in 
testimony before the Subcommittee on Postsecondary Education, 
Training and Life-Long Learning. The Commission's Chair, Mr. 
Anthony P. Carnevale stated:

          Bundling existing programs and sending them to the 
        states will work best if we also create new market-
        based incentives that empower recipients with choice 
        and enable them with information to help them choose 
        and thereby encourage the provision of the highest 
        quality services, provided with the most quality at the 
        lowest possible cost.

    The use of vouchers or skill grants for providing education 
and training is not a new idea. Currently local areas 
throughout the country are successfully experimenting with 
limited voucher programs using funds under the Job Training 
Partnership Act.

                       employer-provided training

    The Committee finds that there's simply not the capacity 
within Federal, State or local government to meet the workforce 
development needs of this nation. It is for this reason that 
businesses must continue their integral role in providing the 
training necessary to compete in an international economy. 
Although it is estimated that $40 billion to $50 billion 
annually is spent on the formal provision of training by 
American companies, a vast majority of this amount is spent by 
a relatively small number of major corporations. Small and mid-
size companies, for a variety of reasons, by and large have not 
implemented such programs. This is unfortunate because most of 
this nation's job growth is happening within small and mid-size 
businesses. It is also unfortunate because there's ample 
evidence to prove that this type of training is not only 
beneficial to employees, but also to employers. Several of 
these findings were recently highlighted in a U.S. Department 
of Labor report on job training:
          A survey of 157 small manufacturing firms in Michigan 
        who received training grants from the State government 
        estimated that the subsidies led the firms to roughly 
        triple the amount of training they provided to their 
        workers in the year they received the grant;
          The Michigan researchers also estimated that the 
        additional training provided by manufacturing firms 
        significantly reduced the rate at which output had to 
        be scrapped;
          A study of formal training programs in 155 
        manufacturing firms found that those firms introducing 
        training programs in 1983 had a productivity growth 
        rate over the next three year that was an average of 
        19% greater than firms which did not. Firms introducing 
        training programs generally began with a productivity 
        level below the industry average, but within three 
        years of introducing training they had brought their 
        productivity level up to industry standards;
          A number of studies also suggest that formal company-
        provided training can have significant positive effects 
        on the future earnings of workers who receive it. 
        Researchers have generally found that employer-provided 
        training increases worker earnings significantly, 
        although the exact amount of the increase depends on 
        such factors as the time since the training was 
        received, the amount of training received, and whether 
        or not the worker leaves the firm where the training 
        was provided; and
          Economists have estimated that the rate of return to 
        workers receiving this type of training is as high or 
        higher than the gains that result from a similar amount 
        of additional post-secondary education. Earnings gains 
        from employer-provided training have been found for 
        both more educated and less educated workers. These 
        studies isolate the effect of training on earnings by 
        controlling for family background, ability test scores, 
        education, and previous experience.
    Under the CAREERS Act, States will have the ability to use 
a portion of their funds to establish a system for employer 
loans, to assist employers in getting training programs up and 
running. Such public/private partnerships have proved to be 
very successful in States such as California. This was 
highlighted in testimony before this Committee from Mr. Kevin 
Wheeler, Director, National Semiconductor University, who 
testified on behalf of the American Society for Training and 
Development:

          The panel directs funding to training with the 
        greatest potential benefit to the California economy. 
        Key to the panels' success is its ability to forge 
        partnerships with other economic development entities; 
        its studies of the workforce of the future to determine 
        future skill and training needs; and its emphasis on 
        careful evaluation to assure ongoing improvement in the 
        program.

                            native americans

    The CAREERS Act consolidates seven existing programs for 
Native Americans as part of the overall adult consolidation 
grant. Funds for Native Americans are maintained at the Federal 
level and available to eligible tribes and service providers. 
The largest of these consolidated programs is the Job Training 
Partnership Act Section 401 program.
    The Section 401 program provides employment and training 
services for Indians, Alaskan Natives, and Hawaiian Natives. 
The program was originally included under the Comprehensive 
Employment and Training Act of 1973 and was later incorporated 
into the Job Training Partnership Act in 1982. At that time the 
Congress believed that such a program was essential to 
addressing the serious unemployment and economic conditions 
affecting Native Americans.
    The consolidation of programs for Native Americans under 
the CAREERS Act builds upon Public Law 102-477, the Indian 
Employment, Training and Related Services Demonstration Act, 
which has allowed several Native American tribes to consolidate 
a host of Federal programs into a single grant, thus allowing 
tribes to provide services in a much more efficient manner. The 
burden of multiple regulations, conflicting definitions, and 
endless management information requirements has presented an 
even larger problem for Native Americans given the relatively 
small size of grants received at the Tribal level. Under Public 
Law 102-477, these tribes have been able to streamline funds, 
unify definitions, and consolidate management information 
systems. The CAREERS Act hopes to build upon this success and 
ensure that these limited funds available to Native Americans 
are maximized.

                    migrant and seasonal farmworkers

    The CAREERS Act consolidates five existing programs for 
migrants and seasonal farmworkers as part of the overall adult 
consolidation grant. Funds for these workers are maintained at 
the Federal level and available to eligible service providers. 
The largest of these consolidated programs is the Job Training 
Partnership Act Section 402 program.
    The Section 402 program provides outreach, classroom 
training, on-the-job training and supportive services to 
eligible migrants and season workers. A 1994 evaluation of the 
program by the Department of Labor came to the following 
conclusions:

          The study team was impressed at the dedication of the 
        Sec. 402 program operators, and found that many 
        programs were effectively serving migrant and seasonal 
        farmworkers, populations that are among the hardest to 
        serve in the JTPA system. The programs have 
        considerable experience in delivering both employment 
        and training and supportive services to farmworkers, 
        who look to these agencies as a source of assistance 
        both when they are migrating and at home. Many programs 
        have adapted their service delivery needs of the 
        eligible populations in their areas, and continue to 
        adapt them as populations shift and directives from the 
        Department of Labor change.

    Given the relative success of the JTPA migrant program, it 
is the Committee's intent that any funds to provide services to 
migrants under the CAREERS Act will build upon its success.

 TITLE IV--ADULT EDUCATION AND FAMILY LITERACY CONSOLIDATION GRANT AND 
                 LIBRARY SERVICES AND TECHNOLOGY GRANT

            subtitle a--adult education and family literacy

    Public adult education is in many ways a Federal creation, 
beginning in 1964 when the Adult Basic Education Program was 
created by the Economic Opportunity Act. This initial law 
offered persons 18 and older opportunities to develop basic 
skills in reading, writing, language, and arithmetic.
    In 1966, Congress enacted the cornerstone of adult 
education, the Adult Education Act (AEA). This program is 
administered by the U.S. Department of Education and is the 
major source of Federal funds supporting State and local 
literacy programs.
    The purpose of the Adult Education Act is to provide 
educationally disadvantaged adults the opportunity to acquire 
basic literacy skills, benefit from job training programs, 
obtain and retain employment, and acquire a high school 
diploma. This is of particular importance in today's highly 
technological society, where the number of jobs available to 
individuals without a high school diploma or strong literacy 
skills are rapidly disappearing.
    In 1991, Congress again sought to improve existing Adult 
Education programs by passing the National Literacy Act. The 
Act established the National Institute for Literacy, which was 
set up to act as an interagency Institute to improve literacy 
services and to provide technical assistance and information to 
State and local adult education and literacy programs to enable 
them to improve the quality of services provided to 
participants.
    The overall growth in the adult education program has risen 
from 38,000 individuals served in 1965 to almost 30 million by 
1994. However, the extent of illiteracy in the United States is 
striking. The 1992 National Adult Literacy Survey, which 
measured the ability of individuals to read and understand 
words, to use documents effectively, and to perform tasks such 
as balancing a checkbook and totaling purchases, found that 20 
percent of adults had minimal basic skills. In fact, of the 
five levels of literacy used in the survey, almost 50 percent 
of participants were found to be in the bottom two levels of 
literacy. Forty-three percent of those in the lowest literacy 
level live in poverty, 17 percent were receiving food stamps 
and 70 percent were unemployed or under-employed. More than 
two-thirds of unwed parents, adults in poverty, school dropouts 
and arrestees have below average literacy levels.
    If our Nation intends to retain its position in the world 
marketplace, put individuals on welfare back to work and reduce 
crime, there will continue to be a great demand for adult 
education programs. Considering that the typical welfare 
recipient reads at an 8th grade level, much education will need 
to occur before a recipient will have the skills necessary to 
complete job training programs and obtain a job which will 
enable him or her to support their family without depending on 
Federal assistance programs.
    However, there are some problems with the current adult 
education and literacy programs. Although we have seen 
substantial growth in participation, measuring the success of 
adult education programs is difficult. Large numbers of 
participants drop out or do not achieve program goals. Part of 
the problem is that Federal programs and policies for adult 
education and literacy, duplicate, complicate, and run 
counterproductive to the ability of States and local providers 
to develop programs which meet the needs of participants. State 
and local literacy practitioners are discouraged by 
incompatible Federal funding streams, eligibility restrictions, 
and accountability requirements controlled by the Federal 
government. They are also frustrated by the maze of paperwork 
necessary to receive funds from existing Federal adult 
education and literacy programs. These problems alone justify 
the need for the reform proposed in this legislation.
    In developing the CAREERS bill, the Committee was well 
aware that the adult education and literacy delivery system is 
unlike the elementary, secondary, and postsecondary education 
systems in many important respects. This is a unique system 
characterized by a diverse group of providers, diverse students 
and limited resources. For example:
          For the most part, those served in adult education 
        are young adults. 58% are between the ages of 16-31. 
        Many of these young people have dropped out of school 
        and are trying to get back on the road to self 
        sufficiency and opportunity. A subgroup or this 
        population is clearly the young mother on AFDC who, 
        under the various welfare reform proposals, will be 
        required to find a job relatively quickly;
          Almost half the participants in this part of the 
        American educational system are working. In other 
        words, this is not a field that serves only the very 
        poor and those unattached to the workforce. Many 
        students are blue collar workers or dislocated workers 
        who understand that to get ahead and provide for a 
        family in 1995, it takes an education and the requisite 
        skills;
          Not all the participants in this system come to 
        programs solely to improve their employment prospects. 
        Many are looking to become citizens, to help their 
        children succeed in school, and to fulfill a variety of 
        other personal, economic, and social goals. Most of 
        these goals have serious implications for our national 
        well-being;
          Providers of services in this system are many and 
        varied. They include local education agencies, 
        community colleges, community-based organizations, 
        libraries, churches, and private businesses. The 
        diversity of providers is both a strength and a 
        challenge to building a high quality system. Services 
        are located in the communities where they are most 
        needed and easily accessible. But different programs 
        often are not coordinated and lack shared information 
        and resources to improve the quality of their services; 
        and
          The staffing of adult education and literacy programs 
        is significantly different from that of elementary, 
        secondary, and postsecondary education. The vast 
        majority of adult education staff are part time 
        professionals, working in isolation from the rest of 
        the educational system, with little training and 
        virtually no benefits. Only 25% of the teaching force 
        is full time. Almost 75% of all programs have 
        volunteers, most serving as tutors.
    Adult education services are absolutely critical to 
accomplishing our national goals for education, employment, 
welfare and citizenship. Literacy levels predict how long a 
displaced worker stays unemployed, the number of weeks worked 
and wages earned for the employed, whether a child will arrive 
at school ready to learn, and whether a citizen is registered 
to vote.
    Over the past ten years, the adult education system has 
been asked to step into a number of new roles. The welfare 
system has asked it to help prepare poor, unemployed adults for 
training and work. Employers have asked adult educators to 
upgrade the skills of their workers. Schools and parents have 
asked literacy programs to address the intergenerational nature 
of literacy and help parents become their children's first 
teachers. At the same time, there have been new expectations 
for accountability and results.
    The CAREERS Act helps ensure that the adult education and 
literacy system will continue to develop and grow through a 
separate stream of funding, the requirement that funding follow 
adults referred for education from the one-stop centers, and 
the requirements for accountability related to goals and 
performance measures. Through these provisions of the bill, and 
many others, CAREERS provides the structure for a reformed 
system of adult education and literacy that will serve the 
student and our nation well.

    Subtitle B--Library Services and Technology Consolidation Grant

    Several Federal programs and agencies provide assistance to 
elementary and secondary, college and university, and public 
libraries. Major programs include the Elementary and Secondary 
School Library Media Resources Program authorized under the 
Improving America's Schools Act of 1994 (P.L. 103-382), the 
Academic Library and Information Services provisions under 
Title II of the Higher Education Act of 1965, and the Library 
Services and Construction Act (LSCA). Other programs or 
agencies which impact libraries, either directly or indirectly, 
include the National Endowment for the Humanities, the National 
Commission on Libraries and Information Science, the White 
House Conference on Library and Information Services, and the 
Library of Congress.
    Of the major programs mentioned above, the Elementary and 
Secondary School Library Media Resources Program was authorized 
at a $200,000,000 level in 1994, but has received no funding to 
date.
    Funding for library programs under Title II of the Higher 
Education Act in 1995 was somewhat better--approximately $11.4 
million.
    On the other hand, the Library Services and Construction 
Act, which is the largest Federal program of assistance 
specifically to libraries, received $132.7 million in 1995. 
LSCA funding is used to operate programs of public library 
services (Title I of LSCA), public library construction and 
technology enhancement (Title II of LSCA), interlibrary 
cooperation and resource sharing (Title III of LSCA), library 
services for Native Americans and Native Hawaiians (Title IV of 
LSCA), and library literacy programs (Title VI of LSCA). As 
amended in 1990, the LSCA contains eight titles authorizing aid 
for many different, and in some cases, duplicative activities.
    Of all revenues for public libraries--Federal, State, 
local, and other sources--LSCA funds represent about 1.4 
percent. Yet, Federal LSCA funds are used for numerous and 
varied activities including services to populations with 
special needs, information-sharing networks, adult literacy 
services, specialized or new services, and the purchase of 
equipment for computer networks.
    Rather than continue to spend limited Federal dollars on 
multiple activities, the Committee believes it is more 
efficient to narrowly focus Federal assistance upon one area--
electronic technology. Accordingly, Subtitle B of Title IV of 
H.R. 1617 consolidates the major Federal library service 
programs into a single categorical grant which will be used to 
improve public access to information through electronic 
networks, and provide linkages among and between libraries and 
one-stop career center systems.

           TITLE V--AMENDMENTS TO REHABILITATION ACT OF 1973

                               Background
    The Rehabilitation Act of 1973 provides comprehensive 
vocational rehabilitation (VR) services designed to help 
individuals with physical and mental disabilities become 
employable and to achieve independence and integration into 
society. The Rehabilitation Act was originally enacted in 1920 
as a means of returning injured workers to their jobs. The 
program was expanded in 1943 to help meet the manpower shortage 
after the entry of the United States into World War II. 
Amendments in 1973 gave service priority to persons with severe 
disabilities if such persons had employment potential. The 1978 
amendments expanded the Act by adding a major new service 
category, comprehensive services for independent living, for 
persons with severe disabilities without current employment 
potential. Amendments in 1986 strengthened services to the 
severely disabled by authorizing employment services for 
persons unable to maintain competitive employment without 
special assistance.
    Amendments in 1992 reauthorized the Act for five years 
through FY 1997. Among other provisions, the law included 
amendments to establish a general presumption that persons with 
disabilities, including persons with severe disabilities, can 
benefit from VR services in terms of an employment outcome, 
unless the State VR agency can show evidence otherwise. This 
presumption allows some persons, who would not have otherwise 
been eligible, to enter the program. The amendments also 
required that eligibility for VR services be determined within 
60 days of application; increase client choice of VR services; 
and increased requirements for consumer control of 
rehabilitation policy and service delivery. Amendments in 1993 
made technical changes to the Act.

                            Need for Change

    The Committee believes that the vocational rehabilitation 
system needs to be significantly reformed to better meet the 
rehabilitation and employment training needs of individuals 
with disabilities, particularly those with severe disabilities.
    The public rehabilitation system has evolved over a 75 year 
history and has developed a degree of expertise and success in 
serving those individuals with the greatest needs. However, 
there are serious shortcomings in the centralized service 
delivery structure--shortcomings that are becoming more glaring 
as the need for rehabilitation among Americans with 
disabilities becomes more acute.

                New Demographic Trends/Growing Caseload

    In its 1993 study of the current rehabilitation system, the 
General Accounting Office pointed out emerging factors which 
are placing great strain on the centralized system:

          Effective vocational rehabilitation programs are 
        important for a number of reasons. First, a productive 
        and humane society is enhanced by the useful employment 
        of as many of its adult members as possible. Second, 
        statistics suggest that the population of Americans 
        with work disabilities may be increasing. Some scholars 
        have argued that recent reductions in the risk of death 
        from accidents and illnesses are associated with an 
        increasing risk of disability. And third, technological 
        developments such as the availability of assistive 
        devices and new behavioral training techniques have 
        made it possible for individuals who were previously 
        regarded as unemployable to enter the workplace.

    With these changes in the characteristics of the population 
needing services, additional strains are being placed on the 
system. From FY 1992 to FY 1993, the number of newly eligible 
persons increased by 24 percent, the highest intake level in 16 
years. Requirements added in the 1992 amendments have recently 
affected VR caseload trends. These included the presumption of 
benefits, and that VR agencies make eligibility determinations 
within 60 days of a person's application.

      Declining Success Rate for the Public Rehabilitation System

    This growing caseload of individuals with severe 
disabilities is being fed into a system that over the last 20 
years has demonstrated an unresponsiveness and inability to 
serve individuals with severe disabilities. From 1975 to 1993 
there has been a 40 percent decline in the total number of 
persons rehabilitated.
    Each year, a little over 1 million persons are served under 
the Federal-State Vocational Rehabilitation program. Of those 
served, about 200,000 were rehabilitated (cases were closed 
successfully) in a given year.
    For the VR system, a `rehabilitation' means a 60-day 
placement, although not necessarily a wage earning placement. 
Even by this very low standard, the system fails to 
rehabilitate 45 percent of its clients. Each year, 154,000 
severely disabled Americans are failed by the Public VR System.
    In addition to the failure rate for those that are not 
rehabilitated, there is a serious question about the long-term 
program benefits for those that are rehabilitated. The 1993 GAO 
Report on the vocational rehabilitation program noted,

          GAO concluded that evidence on VR results was mixed. 
        In contrast to the short-term gains typically reported 
        by the program, GAO's evaluation of long-term outcomes 
        founds that rehabilitants' gains in employment and 
        earnings from time of referral to their case-closure 
        years of 1980 faded after about 2 years. The fraction 
        working shrank steadily. By 1988, the last year 
        examined, 61 to 66 percent of rehabilitants (depending 
        on type of disability) had some earnings; however, this 
        was either no better than or below the pre-program 
        level (depending on type of disability), and only a 
        third had worked continuously since 1980.
    Also, when judged by the Social Security Administration's 
more challenging standard of 9 months job placement for SSI and 
SSDI clients, the VR agency only experienced a 7 percent 
success rate (about 6,000 of the 77,000 cases referred by SSA).
    The Committee concludes that the public rehabilitation 
system has not demonstrated enough overall success and 
expertise in serving the severely disabled to justify 
continuing the status quo.

             High Unemployment Rates for Disabled Americans

    Despite an investment of $2 billion per year, the 
unemployment rate for severely disabled Americans remains 
staggering. Out of 12.6 million severely disabled persons (male 
and female combined), only 2.9 million are employed (23.2%). 
While employment rates for persons with moderate disabilities 
are comparable with the non-disabled, employment rates for the 
severely disabled are drastically lower.
    It is hard to argue the current centralized system can not 
argue that the system is having a positive impact on 
employment. In fact, employment rates for individuals with 
disabilities have been constant (and may have dropped) during 
the life of the current Rehabilitation Act.
    Most Americans would be shocked to find out that disabled 
Americans suffer from such high unemployment, particularly 
after the passage of civil rights protections in the Americans 
With Disabilities Act. Maintaining a segregated system of 
rehabilitation and training for persons with disabilities will 
allow the public vocational rehabilitation system to remain 
insulated from scrutiny and accountability.
    Defenders of the status quo point to stories of individuals 
who have been truly helped by the system. In its oversight 
role, the Committee listens to more than just individual 
stories of success; it must look at larger trends and whether 
or not the system is working for most individuals who need 
help. We must also judge the rehabilitation system by the many 
people that are failed (45 percent of all participants) and ask 
if there is a better way.

                      Inefficient Use of Resources

    Rehabilitating an individual with a severe disability is an 
expensive proposition. Some would argue, and many State 
rehabilitation programs have argued in the past, that the high 
cost of helping an individual with a severe disability overcome 
the barrier to gainful employment is not justified.
    However, the Committee believes the cost of rehabilitation 
is justified, both because there will be long-term cost benefit 
to reducing individual dependence on public assistance, and 
because it enhances the quality and humanity of American 
society.
    Still, there is no justification for wasteful and 
inefficient spending by government rehabilitation programs. 
Funds that are inefficiently spent on bureaucracy are funds 
that are not available for critical goods and services to help 
individuals overcome barriers of disability.
    As Patrick W. McKenna, Director of the Maryland 
Rehabilitative Services, observed:

          The systems, procedures and required processes 
        imposed on providers of rehabilitation services are an 
        anachronism which somehow prevail despite the knowledge 
        that they are, in many respects, obstacles which limit 
        and compromise the effective and responsible delivery 
        of services for consumers. The public program of 
        vocational rehabilitation has created, over many 
        decades, a burdensome reliance on ``process'' which has 
        created an environment where value is placed on form 
        over substance.

    Of the current State spending on the rehabilitation system, 
the Rehabilitation Services Administration estimates that an 
average of 10.4 percent is spent on State administration of 
rehabilitation programs, 34.6 percent on counseling and 
placement, and about 50.8 percent on purchased services.
    The current system is too procedural and bureaucratic and 
soaks up resources that should be spent on goods and services. 
The Committee believes that the system needs to be streamlined, 
especially in areas of evaluation, assessments, and counseling, 
so that more resources can be devoted to securing services and 
goods needed by the consumer. An integrated system will allow a 
much greater efficiency in resources so that better, more 
client-centered services can be delivered.

                   Need for Competition/Market Forces

    For several years, consumer groups representing individuals 
with disabilities such as the National Federation of the Blind 
and the National Coalition for Independent Living, and others, 
have been asking for a better way.
    In testimony before the House Subcommittee on Select 
Education in 1986, James Gashel, Director of Governmental 
Affairs of the National Federation of the Blind testified,

          This sense of growing frustration with the current 
        system of vocational rehabilitation has led many in the 
        National Federation of the Blind to give thought to 
        alternative systems of services rather than using the 
        traditional vocational rehabilitation State agencies. 
        One plan would be to install a free market system where 
        clients could pick and choose among rehabilitation 
        agencies who would, in a sense, be competing for their 
        patronage. This would be a step beyond and outside of 
        the institutionalized State vocational rehabilitation 
        agency system. It would provide a rehabilitation 
        benefit in the sense of portable funding available to a 
        handicapped individual for use at any agency capable of 
        providing the services. Maybe we are ahead of our time 
        in proposing such a concept, or even thinking about it, 
        but we think Congress should consider it.

    Dr. Carolyn Weaver, resident scholar of the American 
Enterprise Institute echoes Mr. Gashel's sentiments on the 
benefits of competition:

          The public VR system would benefit from a healthy 
        dose of competition. Competition fosters 
        experimentation and innovation, both critical for 
        solving the kinds of information problems that plague 
        rehabilitation. Firms competing to attract new 
        customers would have the incentive to experiment with 
        new diagnostic and evaluation techniques, new methods 
        of case management or training and placement, and new 
        forms of administration and financing as they attempted 
        to supply what customers wanted at a price they were 
        willing to pay. Good ideas would tend to be rewarded 
        and, with easy access by new suppliers, bad ideas would 
        tend to be penalized.

                               Conclusion

    In the opinion of the Committee, and based on input from 
consumers over many years, the State run rehabilitation system 
is not nearly as efficient in the use of resources as it should 
be, is slow to respond to individual needs and aspirations, has 
very little accountability for outcomes, and allows very 
limited market forces of competition to improve the quality of 
services to individuals with disabilities.
    For these reasons, the Committee believes it is essential 
that, in the development of a Statewide Workforce Preparation 
System under the CAREERS Act, that vocational rehabilitation be 
a full partner in the system. This will allow individuals with 
disabilities to gain access to specialized rehabilitation and 
employment services through a new, locally-based, one-stop 
career center system.
                                Summary

    The following is a summary of the legislation as approved 
by this Committee:

             TITLE I--WORKFORCE DEVELOPMENT INFRASTRUCTURE

    In reporting H.R. 1617, the Committee on Economic and 
Educational Opportunities intends to transform the vast array 
of Federal job training, workforce, and education-related 
programs into a consolidated workforce development and literacy 
system. The bill takes a collection of fragmented and 
duplicative categorical programs and folds them into a high 
quality, comprehensive, and accountable Federal workforce 
development and literacy system--a system designed to meet the 
educational, employment, and training needs of the workforce 
and the competitiveness needs of employers, both now and into 
the future.
    Title I of the bill establishes an infrastructure around 
which States and local communities may build a comprehensive 
workforce development and literacy system. The purpose of this 
title is to establish a framework for Governors to utilize a 
collaborative process for comprehensive system planning and 
decision-making for the four consolidation grants (youth, adult 
training, adult education, and vocational rehabilitation) 
established under the Committee bill. This title requires the 
development of a single State plan and performance measurement 
system for the four consolidation grants. It further requires 
the designation of local workforce development areas; the 
establishment of local employer-led workforce development 
boards; the establishment of a statewide one-stop career center 
system for the delivery of employment and training assistance 
at the local level; the development of a common management 
information system for the collection and dissemination of data 
across the four grant programs (for reporting purposes); and 
the certification of eligible providers of education and 
training under the Adult Employment and Training programs and 
the Vocational Rehabilitation programs.

TITLE II--YOUTH DEVELOPMENT AND CAREER PREPARATION--CONSOLIDATION GRANT

    Title II consolidates nearly 30 education and job training 
programs for youths into a single block grant to the States. 
The consolidation melds the strong points of the current Carl 
D. Perkins Vocational and Applied Technology Act, the School-
to-Work Opportunities Act and the Job Training Partnership Act 
(JTPA) youth programs into one comprehensive program.
    Funds flow from the Federal government to the Governor 
based on a formula which bears the same ratio as the average of 
funds they received in FY 1995 under Sections 101 and 101A of 
the Perkins Act and Sections 252 and 262 of JTPA. The intent of 
the formula is to keep the flow of new funds as close to the 
current flow as possible.
    The Youth Development and Career Preparation Consolidation 
Grant moves the focus of programs from the Federal and State 
levels to the local level--90% of funds under this grant must 
be sent to the local level. States retain 8% for State level 
activities and 2% for administrative purposes. The Governor, 
through the collaborative process, determines the substate 
formula for the 90% of funds which go to the local level; in 
addition, there is a Federal requirement that at least 40% of 
these funds be used to serve in-school youth and 40% of the 
funds must go to serve out-of-school/at-risk youth. The 
Governor, through the collaborative process, can use 10% of the 
funds at the local level for incentive grants or competitive 
awards, or the money can be distributed by formula. The 
remaining 10% of funds may be split in any way between the in-
school and at-risk/out-of-school youth programs, or the entire 
10% may be applied to one program or the other; however, the 
money must go out by formula. The 20% of discretionary funds 
cannot be used for any other purpose except for programs to 
serve in-school and at-risk/out-of-school youths.
    In establishing a substate formula, the Governor through 
the collaborative process, must take into account poverty rates 
and the proportion of the State's youth population within local 
communities. The Governor, through the collaborative process, 
may add other factors he or she considers appropriate, but must 
ensure an equitable distribution throughout the State. The bill 
further clarifies that such factors not be disproportionately 
weighted.
    A partnership between local educators and local workforce 
development boards will develop a plan to serve both in-school 
and out-of-school/at-risk youth. The plan is submitted to the 
Governor who, through the collaborative process, approves or 
disapproves the plan. Money flows to the local level after 
submission of the plan. In-school youth funds will flow to the 
schools and at-risk/out-of-school youth funds will go to local 
workforce development boards to be subcontracted for services. 
Minimum grant awards are established at $15,000 for local 
education agencies and local workforce development boards, and 
$50,000 for postsecondary institutions or consortium of 
institutions (including secondary-postsecondary consortia). A 
State may waive the minimum grant amount in any case where the 
eligible recipient is located in a rural, sparsely populated 
area and demonstrates that it is unable to enter into a 
consortium for purposes of providing services under this title.
    National programs are provided $25 million or 20% of total 
funding, whichever is less, for research and demonstration 
programs.

      TITLE III--ADULT EMPLOYMENT TRAINING AND CONSOLIDATION GRANT

    Title III consolidates existing Federal employment and job 
training programs for adults into a single block grant to the 
States. Governors, through a collaborative process, allocate 
the block grant funds to Local Workforce Development Boards, 
established within Workforce Development Areas in each State. 
Part of the funds under Title III would be held at the State 
and Federal levels to carry out activities such as rapid 
response, incumbent worker training, program innovation, 
incentive grants, and technical assistance.
    Funds available at the local level would be used to provide 
core services, intensive services, and education and training 
services. Core services include such activities as providing 
information on job opportunities, the labor market, and 
education and training providers. Intensive services include 
specialized assessments, counseling, and development of 
employability plans. Education and training services would be 
provided to individuals unable to obtain employment through 
either core or intensive services. Local workforce development 
boards are required to establish a process by which 
economically disadvantaged individuals and dislocated workers 
are given priority for intensive services and for education and 
training services, in those instances when funding is limited 
in a workforce development area.

 TITLE IV--ADULT EDUCATION AND FAMILY LITERACY CONSOLIDATION GRANT AND 
                 LIBRARY SERVICES AND TECHNOLOGY GRANT

    Title IV, Subtitle A of the bill consolidates several adult 
education and literacy programs into a single block grant to 
the States. Funds distributed to local adult education 
providers, through the States, are to be used to provide adult 
education and family literacy services to qualifying adults. 
Subtitle A also provides a framework to help ensure that adult 
education programs are closely aligned with federal job 
training programs.
    Title IV, Subtitle B consolidates several programs 
authorized under the Library Services and Construction Act and 
other Federal laws into a single categorical grant dedicated to 
improving public access to information through electronic 
networks, and to providing electronic linkages among libraries, 
and between libraries and one-stop career center systems.

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

    Title V makes comprehensive changes to the Rehabilitation 
Act of 1973, a major Federal law which provides rehabilitation 
and employment training to adults with disabilities. Under the 
changes, vocational rehabilitation services will be provided 
primarily through locally-based one-stop career center systems. 
Private sector providers will be allowed to participate in the 
rehabilitation system, thereby increasing consumer choice in 
the selection of career objectives, and the goods and services 
to achieve those objectives.

                TITLE VI--REPEALERS AND OTHER AMENDMENTS

    Title VI repeals the existing authorization for numerous 
programs consolidated into the four block grants, and it sets 
forth October 1, 1996 as the effective date of the repeals.
              Explanation of the Bill and Committee Views

        TITLE I--INFRASTRUCTURE OF WORKFORCE PREPARATION SYSTEM

    For years, concerns have mounted regarding this nation's 
confusing array of career-related education, employment, and 
job training programs. As the U.S. General Accounting Office 
points out, there are as many as 163 different Federal 
programs, totaling $20 billion per year, which offer some form 
of education, job training or employment assistance for youth 
and adults. In addition to the excessive number of Federal 
programs, the quality of U.S. training programs varies 
significantly. At a time when the skill requirements of the 
U.S. workforce are at an all-time high, this country can no 
longer tolerate such an inefficient system--or ``non-system'' 
of workforce development.
    After careful consideration of this issue, including a 
comprehensive set of hearings, the Committee developed the 
Consolidated and Reformed Education, Employment, and 
Rehabilitation Systems Act (CAREERS Act). CAREERS consolidates 
(and eliminates) over 90 existing education, employment, and 
job training programs into 4 consolidation grants. This 
consolidation eliminates unnecessary duplication and 
fragmentation within programs, while redesigning programs 
serving youth, adults, the disabled, and individuals with basic 
skills deficiencies. The bill:
          Transfers authority for the design and operation of 
        programs to States and local communities, with limited 
        direction on the establishment of an infrastructure to 
        support State and local workforce development systems.
          Establishes a system which is market-driven, provides 
        customer choice, and is easily accessible, by:
                  Encouraging service delivery through a one-
                stop career center system; involving employers 
                in the design and implementation of systems; 
                encouraging the use of vouchers or skill grants 
                for receipt of training and educational 
                services;
                  Providing information on the performance of 
                local service providers as well as enhanced 
                labor market information;
                  and by establishing an enhanced performance 
                measurement system for workforce development 
                programs.
    Title I of the bill establishes an infrastructure around 
which States and local communities are intended to build a 
comprehensive workforce development and literacy system. While 
the ``CAREERS Act'' contains four consolidation grants to the 
States and to local communities, it is envisioned that these 
four grant programs will comprise a system. The transfer of 
responsibility and authority for the design and operation of 
programs to States and local communities is a major goal of 
reform. However, after careful study and input from testimony 
heard through the Committee's extensive hearing process, 
Members of the Committee decided to set some broad parameters 
for the design of the infrastructure in order to drive 
workforce development and literacy programs to peak 
performance.
    Title I of the bill requires that Governors, through a 
collaborative process, bring all relevant State agencies that 
are responsible for workforce development programs, and 
representatives of business and industry, education, locally-
elected officials, individuals with disabilities, community 
based organizations, representatives of employees, and others 
as appropriate, together to plan for the development of the 
workforce development and literacy system across the 4 
consolidation grants.
    It is the intent of the Committee that the Governor, along 
with the individuals and agencies involved in the collaborative 
process, develop a single State plan and performance 
measurement system for all four consolidation grants. In 
addition, the Governor, through the collaborative process, is 
intended to set overall policy guidance and criteria for: the 
designation of workforce development areas; the selection of 
local workforce development boards; establishment of a 
statewide one-stop delivery structure for the provision of 
employment and training assistance at the local level; 
development of substate formulas for driving program dollars to 
local communities under title II and title III of the bill; 
development of a common management information system for the 
collection and dissemination of information and data across the 
4 grant programs (for data collection and reporting purposes); 
and the certification of eligible providers of education and 
training under the Adult Employment and Training and the 
Vocational Rehabilitation programs. This consolidation of 
administrative, planning, reporting and data collection 
requirements, in addition to the actual consolidation of over 
90 Federal programs into the four consolidation grants, will 
dramatically reduce duplicative and costly planning, paperwork, 
and reporting requirements, resulting in significant savings.
    It is the intent of the Committee, through title I of the 
legislation, to establish a necessary balance between States 
and local communities for the design and operation of workforce 
development and literacy systems. Governors are given a great 
deal more flexibility and authority to provide policy guidance 
and to design integrated and innovative statewide workforce 
development and literacy systems. Local communities are 
provided with the flexibility and authority to design and to 
operate local workforce development and literacy programs that 
meet the employment, education and training needs of individual 
communities, consistent with the statewide policies set by the 
Governor through the collaborative process.

                           State Requirements

    Section 102 of the bill requires that in order for a State 
to receive a grant under one or more of the programs 
established under this Act, they must: establish a 
collaborative process; develop a State workforce development 
and literacy plan; and comply with the requirements of this 
Act. This section further clarifies that for the purposes of 
this Act, Workforce Development and Literacy Programs include: 
the Youth Workforce Preparation and Development Consolidation 
Grant established under title II; the Adult Employment and 
Training Consolidation Grant established under title III; the 
Adult Education, Family Literacy, and Library Technology 
Consolidation Grant, established under title IV; and the 
program amended by subtitle A of title V (relating to title I 
of the Rehabilitation Act of 1973).
    When developing this comprehensive reform of our U.S. 
workforce development and literacy programs, Members of the 
Committee considered many options, starting out with the 
consideration of the CAREERS Act legislation introduced by 
Committee Republicans last Congress, to the establishment of a 
single block grant to States for workforce development. The 
Committee started with the proposition that the current 
workforce preparation system simply did not work. There is too 
much waste and duplication. Clearly, if there is to be a 
Federal role in assisting States and communities in this area, 
as the Committee believes there is, it should be focused on a 
limited number of purposes that can truly make a difference. 
After careful deliberation, the Committee made a conscious 
decision to establish four consolidation grant programs for the 
purpose of establishing a workforce development and literacy 
system within each State because of the very different 
populations to be served, and the very different and important 
missions of each of these programs. It is the intent however, 
that these four programs comprise a true system within each 
State and local community for the purpose of preparing and 
educating individuals for careers, for assistance in the 
employment of such individuals, for assisting individuals with 
disabilities to become employed and independent, and for the 
purpose of making individuals literate.

                      State Collaborative Process

    Section 103 requires that the Governor of a State that 
desires to receive a grant under one or more of the workforce 
development and literacy programs, must certify to the 
Secretaries of Education and Labor that a collaborative process 
has been used in complying with the applicable provisions of 
this Act. This section further clarifies that the collaborative 
process must include, at a minimum, the Governor and 
representatives of: business and industry, local chief elected 
officials (representing both cities and counties), local 
educational agencies (including vocational educators), 
postsecondary institutions (including community and technical 
colleges), the State Rehabilitation Advisory Council, 
organizations representing individuals served by programs 
established under this Act (including community-based 
organizations), and employee representatives, all appointed by 
the Governor; and the lead State agency official or officials 
from the State educational agency (including officials 
representing vocational education, adult education and 
literacy, and libraries); and the State agencies responsible 
for economic development, employment security (and job training 
where different from the employment security agency), 
postsecondary education, vocational rehabilitation (and where 
applicable, the State agency providing vocational 
rehabilitation services for the blind), welfare, and the 
representative of the Veterans' Service assigned to the State.
    As a State's highest ranking elected official, the Governor 
is key to the establishment of an effective workforce 
preparation system in every State. As such, the Committee 
provides Governors with the lead role in establishing the 
overall State workforce development and literacy system within 
each State. However, Members of the Committee recognize that 
Governors alone cannot, and should not be solely responsible 
for development and operation of such programs if we are truly 
to effect meaningful reform in this area. The Committee-
reported bill places great emphasis on the establishment and 
utilization of a collaborative process, for purposes of 
establishing the State workforce development and literacy plan, 
as well as for making most major State-level decisions 
affecting the system. A similar collaborative process was 
established under last Congress' School-to-Work Opportunities 
Act, and has appeared to achieve a necessary balance in the 
design of school-to-work programs. While the Committee 
purposely did not include prescriptive requirements as to what 
the collaborative process must entail, or how it should work in 
every State, it is the Committee's intent that such process be 
open, active, participatory, and significant. The Committee 
feels very strongly that ``private sector'' representatives, 
particularly representatives of business and industry, be 
integrally and actively involved with the Governor and key 
State agency heads in the design of the State-wide system. The 
Committee recognizes the central role that employers must play 
in building an effective workforce development system, both at 
the State and the local levels. It is essential that business 
and industry be involved in the design of State and local 
workforce development programs, and in development of each 
State's labor market information system, in order that all 
workforce development and literacy programs meet the skill 
requirements of today's workplace. And it is imperative that a 
significant representation of individuals from business and 
industry participate in the State-level collaboration process 
to ensure that a broad range of industry concerns are 
understood and addressed in development of the workforce 
development and literacy system. Only through such an involved 
employer role will students, schools, and employment and 
training programs be continually aware of the changing demands 
and skill needs of the workplace. The Committee also recognizes 
that private sector involvement alone will not guarantee 
successful workforce development programs. Therefore, it is 
imperative that employees be involved in the collaborative 
process. For job training programs to work effectively, the 
Committee believes the collaborative process should seek to 
have everyone at the table. In the Committee's opinion, at the 
very least, that means employers and employees.
    In recognition of the fact that many States have already 
established State-level collaborative processes for the purpose 
of establishing workforce development systems, the Committee-
reported bill allows such pre-existing processes, that 
substantially meet the purposes of collaboration established 
under this section, to meet the collaboration requirements of 
the Act. Specifically, States may utilize workforce development 
councils (including State Human Resource Investment Councils 
established under the Job Training Partnership Act), for 
carrying out the collaborative process described under this 
section. Or, if a State has already established a collaborative 
process for the purpose of establishing a one-stop system or a 
school-to-work system, such process may meet the collaboration 
requirements if it is substantially similar to that required 
under this Act. While Committee Members did not want to go so 
far as to require that Governors establish State level 
workforce investment policy councils, the Committee recognizes 
the leadership that these bodies have provided in States where 
such councils exist, and therefore encourage their 
establishment and use in fulfilling the collaboration 
requirements provided under H.R. 1617, as determined 
appropriate by each individual Governor.

       Consolidated State Workforce Development and Literacy Plan

    Section 104 requires that the Governor of a State that 
desires to receive a grant, submit a single State Workforce 
Development and Literacy Plan for all 4 consolidated programs 
established under this Act, to the Secretaries of Education and 
Labor. Such State plan must include: a description of the 
collaborative process used in developing the plan; a statement 
of the goals of the State workforce development and literacy 
system, including an assessment of the workforce and literacy 
needs of the State, and the identification of progress 
indicators that the State will use to measure its progress in 
meeting such goals; a description of how the State will comply 
with the requirements of the Act; a description of how a State 
will participate in the National Labor Market Information 
system established under the Act; additional plan elements 
contained in titles II through V; a description of the measures 
that will be taken by the State to ensure coordination and 
avoid duplication among programs receiving assistance under 
this Act, including a description of common data collection, 
reporting processes, and the establishment of a common 
management information system across workforce development and 
literacy programs; a description of the process used by the 
State to provide an opportunity for public comment and input 
into the development of the plan; assurances that the State 
will provide for fiscal control accounting procedures that may 
be necessary to ensure the proper disbursement of, and 
accounting for, funds paid to the State under this Act; and a 
description of the sanctions which the State may impose 
(including restrictions from future participation or 
consideration for funding) in instances where recipients of 
funds under this Act fail to achieve agreed upon performance 
measures, fail to adhere to State mandated fiscal control and 
funds accounting procedures, or take or fail to take other 
actions required under the State plan, contracts, or other 
agreements.
    In recognition of the fact that the Governor is the chief 
elected official of the state, and is the individual who is 
ultimately accountable in the State for the overall workforce 
development system (except where such duties are assigned by 
State constitutions or statute to other constitutional bodies), 
the Committee-reported bill specifies that if after a 
reasonable effort is made, and agreement cannot be reached 
through the collaborative process in development of the State 
plan or in making decisions for the workforce development and 
literacy system, the Governor has final authority to make such 
decisions and to submit the plan. However, participants in the 
collaborative process, who are in disagreement with the plan, 
may submit their views with the plan, regarding the area for 
which they were selected for representation. Further 
recognizing that certain State constitutions and laws provide 
an individual or an agency other than the Governor with 
responsibility for education, employment, or training programs, 
this section clarifies that nothing in this Act shall be 
construed to negate or supersede the legal authority, under 
State law or other applicable law, of any State agency, State 
entity, or State public official over programs that are under 
the jurisdiction of the agency, entity, or official. This 
provision was offered as an amendment by Congressman Weldon to 
ensure that the Federal government did not override state 
constitutions.
    Finally, in order to avoid disruption in program operations 
under the newly reformed workforce development and literacy 
system, the bill provides that State plans remain in effect 
until the State submits to the Secretary modifications as the 
State determines necessary. In other words, once a State 
submits its workforce development and literacy plan, such plan 
is in effect through the 6 year authorization of the 4 
consolidation grant programs, until such time as the State 
modifies such plan. The Secretaries of Education and Labor are 
required to establish a common procedure for consideration of 
State Workforce Development and Literacy Plans.

           Establishment of Local Workforce Development Areas

    Section 105 requires that a Governor desiring to receive a 
grant under this Act, designate local geographic areas, called 
workforce development areas, for the purpose of planning for 
local workforce development and literacy systems, and for 
receipt of funding and operation of local programs for at-risk 
youth (established under Chapter 2 of title II), for adult 
employment and training (established under title III), and for 
vocational rehabilitation programs established under title I of 
the Rehabilitation Act of 1973 (as amended by Title V of this 
Act). In the designation of such areas, the Governor must work 
through the collaborative process, consult with local chief 
elected officials, and consider comments received through a 
public participation process (described in the State plan). 
Such areas must be designated, taking into consideration 
existing labor market areas, units of general local government, 
geographic areas served by local educational agencies and 
intermediate educational agencies, geographic areas served by 
postsecondary institutions and area vocational education 
schools, service delivery areas established under the Job 
Training Partnership Act, and the distance that individuals 
will need to travel to receive services.

          Establishment of Local Workforce Development Boards

    Section 106 requires Governors, through the collaborative 
process, to ensure the establishment of workforce development 
boards within each local workforce development area, and to 
establish criteria for use by local chief elected officials in 
the selection of members of such boards.
    During the development of the CAREERS Act, the Committee 
decided to drive responsibility for the actual design and 
operation of local workforce development programs to the local 
level. Further, there was a decision made to fully involve 
employers in the design of local workforce preparation 
programs. For this reason, local workforce development boards, 
with a majority representation of business and industry, are 
required in each workforce development area for the receipt of 
funding and design of the local workforce development system. 
Because the Job Training Partnership Act is repealed under this 
legislation, there is no assumption that private industry 
councils (PICs) as established under that Act will continue to 
exist, and as such, there is no presumptive designation of PICs 
as workforce development boards. While States may reconstitute 
existing private industry councils to serve as local workforce 
development boards in areas where the PIC is exceptionally 
strong, the Committee encourages Governors, the individuals 
involved in the collaborative process, and local chief elected 
officials to carefully consider such redesignation to determine 
whether or not existing private industry councils are capable 
of fulfilling the added responsibilities assigned to workforce 
development boards under this Act. The Committee urges 
Governors and other decision makers, to ensure change where 
change needs to occur, in order to have the strongest workforce 
development system possible.
    Specifically, workforce development boards must at a 
minimum, consist of a majority of members who are 
representatives of business and industry, including individuals 
who are owners of businesses, chief executives or chief 
operating officers of private business, and other business 
executives with optimum policy making authority in local 
businesses. These business representatives must be selected 
from among a list of nominees submitted by local business 
organizations and trade associations.
    In addition, the local board must include: an individual or 
individuals with disabilities, or their representatives who 
have special knowledge or expertise in the area of vocational 
rehabilitation; representatives of education, including local 
educational agencies and postsecondary institutions, selected 
from among individuals nominated by regional or local 
educational agencies, vocational education institutions, 
institutions of postsecondary institutions (including community 
colleges), or general organizations of such institutions within 
the workforce development area; and representatives of 
community-based organizations, employees (non-union or union), 
and veterans as nominated or recommended to the board through a 
process established by the Governor through the collaborative 
process. While the bill contains no further language regarding 
the types of individuals who must be represented from the 
above-listed categories, the Committee urges the selection of 
individuals with decision-making capability. For example, 
individuals representing local educational agencies are 
encouraged to be chosen from nominees including superintendents 
of schools or local school board members. Similarly, 
individuals representing postsecondary institutions are 
encouraged to be chosen from nominees including college 
presidents, and college board members or trustees.
    Recognizing that only 10 to 12 percent of this nation's 
private sector workforce is affiliated with a union, (15.5% of 
the U.S. workforce overall), it is important to make clear that 
an ``employee'', as referenced in section 106(c)(4), to sit on 
the Local Workforce Development Board, and as referenced in 
section 103 (b)(1)(G), to participate in the State 
collaborative process, need not be affiliated with a union, nor 
be a formal or elected representative of an employee group. For 
example, this ``employee'' may be selected solely based on his 
or her relevant broad background and expertise in a certain 
craft, occupation or employment area.
    Governors are provided the authority to biennially certify 
local workforce development boards in order to ensure 
compliance with the State's selection criteria and overall 
policies set for such boards. However, local boards are 
authorized to elect their own chairperson from among its 
members, and to establish bylaws and other operating procedures 
as consistent with the purposes of the Act, and with the State 
workforce development and literacy plan.
    Recognizing that some States, particularly very small and 
sparsely populated States, will be composed of only one 
workforce development area, the bill allows that the 
individuals comprising the Governor's collaborative process may 
be reconstituted to serve the functions of a local workforce 
development board for those States.
    Under the Committee-reported bill, the role of the local 
workforce development board is significantly expanded over the 
role currently provided for private industry councils under 
JTPA. The local board is ultimately responsible for development 
of a local strategic workforce development plan and 
identification of occupations in demand and the training needs 
of the local workforce development area. The board is 
responsible for budget and program oversight over at-risk youth 
programs established under chapter 2 of title II, adult 
employment and training programs established under title III, 
vocational rehabilitation programs established under title I of 
the Rehabilitation Act of 1973 (as amended by title V of this 
Act), and one-stop career center systems established under 
section 107 of the bill. Local boards are authorized to receive 
and disburse funds made available for carrying out the above-
listed programs, or may designate a fiscal agent (which may 
include the State through a mutual agreement between the local 
board and the State), for the purpose of disbursement of funds 
to one-stop centers and other service providers, as designated 
by the local board. The Board may employ its own staff, 
independent of local programs and service providers. However, 
due to the expanded responsibilities of the workforce board, as 
well as to attract higher level business representatives, 
boards may not operate programs established under this 
legislation. This is a significant change over current law.
    It is also important to clarify, that while some elements 
of the local workforce area model are similar to the model 
under the Job Training Partnership Act, the workforce 
development system under this Act is not intended to be a 
'generic' JTPA employment and training system.
    For example, JTPA has developed a reputation, whether 
deserved or not, as not properly accommodating the needs of the 
individuals with disabilities. In this new system, individuals 
with disabilities are intended to be served on an equal basis 
with other program participants and reasonable accommodations 
are made as required under existing Federal statutes. And in 
relation to services offered, this system is not intended to be 
a generic system in which all individuals receive the same 
service. Rather, it is intended to be an integrated delivery 
system of specialized services that meet specific needs of 
individuals.
    Under the Job Training Partnership Act, most of these 
activities are conducted jointly, or in partnership with the 
chief elected official or officials in the local area. CAREERS 
provides a significant role for chief elected officials in 
local workforce development systems, with such officials 
selecting the local board members; providing sign-off on local 
plans and local program budgets; and having joint oversight 
responsibilities with the local board. Local governments may 
also be designated by the board as the fiscal agent for local 
workforce development systems, and may compete to operate a 
one-stop delivery system. However, the role of employer-led 
workforce development boards was intentionally elevated, 
illustrating the Committee's recognition of the importance of 
employer buy-in and involvement in the design of the local 
system.
    With the increased responsibility bestowed upon local 
workforce development boards, the Committee felt it very 
important to provide strong conflict of interest language in 
the bill, which says that no member of a workforce development 
board may cast a vote or participate in the consideration of 
the provision of services that in any way provides financial 
benefit to such member. In addition, a Governor may enforce 
more rigorous conflict of interest standards, as determined 
appropriate.

            Establishment of One-Stop Career Center Systems

    Section 107 of the bill requires Governors to establish the 
criteria for, and ensure the establishment, by local workforce 
development boards, of a one-stop career center system within 
each local workforce development area. The Committee decided to 
require the one-stop approach to service delivery in order to 
encourage program integration and consolidation not only at the 
Federal level, but also at the State and local levels. The one-
stop delivery system was initially proposed by the Bush 
Administration under its Job Training 2000 legislative 
proposal, and was also included as an integral component of 
reform legislation introduced by Committee Republicans in the 
previous Congress. While the Committee does not intend to 
impose prescriptive program requirements upon States and 
localities for the design of a ``one-size-fits-all'' one-stop 
system, Members do urge States and local communities to design 
their own delivery structures around the ``one-stop'' model, 
with the intention of achieving full program integration, as 
well as providing easily accessible, single points of entry 
into the workforce development and literacy system for all 
individuals seeking out such services.
    Specifically, the bill requires the establishment of one-
stop career center systems in each local workforce development 
area, which at a minimum, must include and provide: common 
intake; preliminary assessment; integrated job search 
assistance; and to the extent practicable, as determined by the 
Governor, unified and linked computer systems (including labor 
market information), and at least one physical, co-located site 
which provides comprehensive and fully integrated workforce 
development services to any individual seeking such services. 
The Committee urges local workforce development areas to 
establish networks of comprehensive and fully-integrated co-
located one-stop career centers, combined with multiple 
affiliated sites that are linked through electronic and 
technological access points. However Members of the Committee 
recognize that the establishment of co-located centers is not 
necessarily appropriate for all workforce development areas, 
especially in rural communities.
    To ensure that all program participants are provided the 
most useful and timely information available, all one-stops 
career centers, and affiliated sites are encouraged provide 
program participants with access to information on the labor 
market, which is compiled pursuant to the Wagner-Peyser Act. 
Entities eligible for designation by local workforce 
development boards as one-stop career centers include: 
institutions of higher education; local educational agencies; 
area vocational education schools; local employment service 
offices; private nonprofit organizations, (including community-
based organizations); private for-profit entities; agencies of 
local governments; other interested organizations and entities 
of demonstrated effectiveness (including local chambers of 
commerce and other business organizations); or consortia of any 
of the above.
    The Committee believes it is important that a workforce 
board designate a variety of types of entities to serve as one-
stop career centers, and that private sector entities be given 
the opportunity to fully participate.
    One-stop career centers are intended to provide a range of 
``front-end'' or ``core'' services to individuals in the 
workforce development area, on a universal basis, which 
include: Outreach and intake for services provided under 
programs established under chapter 2 of title II, title III, 
title IV, and title I of the Rehabilitation Act of 1973; a 
preliminary assessment of the skill levels and need for 
services of individuals for such programs; information relating 
to local and State, and if appropriate, to regional or 
national, occupations in demand and skill requirements for such 
occupations; information relating to youth services, including 
information on at-risk youth workforce development programs 
authorized under title II, on school-to-work opportunities, and 
on youth apprenticeship opportunities; career counseling and 
planning; Job search assistance; information related to 
vocational rehabilitation services; information relating to 
federally funded education and job training programs, including 
student aid programs; information on, and assistance in 
accessing additional services through programs established or 
amended by this Act; information on the extent to which the 
services provided under titles II through IV, and title I of 
the Rehabilitation Act of 1973, meet or exceed the performance 
standards described in the State plan, and performance-based 
information on certified providers of education and training; 
information on industry-recognized skill standards and 
assessments; job listings for the local labor market; 
acceptance of applications for unemployment compensation; and 
other appropriate activities to assist individuals into 
employment. In the provision of core services, the Committee 
does not intend that core services must be offered in the order 
in which they are listed above, or that all core services must 
be provided to an individual with a disability before he or she 
can be referred for specialized vocational rehabilitation 
services. However, an individual with a disability can not be 
denied access to core services if that is all the individual 
wants or needs. The bill requires one-stop career centers to 
provide the aforementioned services on a nondiscriminatory 
basis. This requirement reaches only intentional discrimination 
against any individual on the basis of race, religion, color, 
national origin, gender, or disability, and does not extend to 
disparate impact situations. A one-stop center is also expected 
to serve as the point of distribution of vouchers or skill 
grants for education, training, and vocational rehabilitation 
services to eligible individuals. In addition to core services, 
one-stop career centers may provide customized workforce 
development services to employers on a fee-for-service basis, 
and may arrange to have core services provided to individuals 
with severe disabilities provided by certified providers 
through contract or through the use of vouchers or skill 
grants.
    Finally, while the Committee strongly advocates the 
building of local workforce development systems around a one-
stop service delivery model, Members of the Committee also 
recognize that States may come up with innovative alternatives 
to program integration which should be tried. As a result, the 
bill provides flexibility to States for the establishment of 
alternatives to the one-stop delivery design, allowing for 
alternative service delivery structures or procedures that 
result in the full integration of programs, with such proposals 
submitted to the Secretaries of Education and Labor for 
approval or disapproval.

  Certification of Education, Training, and Vocational Rehabilitation 
                           Service Providers
    Section 108 of the bill establishes a certification process 
for determining which providers of education and training 
services shall be eligible to receive funds under the adult 
employment and training programs (established under title III), 
or the vocational rehabilitation program established under 
title I of the Rehabilitation Act of 1973 (as amended by Title 
V of this Act), through the receipt of vouchers or skill 
grants, or otherwise. Because the CAREERS Act encourages the 
use of vouchers or skill grants for the provision of education 
and training under the above-listed programs, establishment of 
such a certification mechanism is essential in order to 
identify qualified providers of services, and to guard against 
``fly-by-night'' providers that may take advantage of the 
system or of program participants.
    Specifically, the bill establishes that providers are 
eligible if: they are currently eligible to participate in 
title IV of the Higher Education Act of 1965; or they are 
determined to be eligible under an alternative procedure 
developed by the Governor; and they provide performance-based 
information on non-degree programs, as required by the 
Governor.
    The alternative eligibility procedure established under the 
bill is established by the Governor, for providers and programs 
of education, training, and vocational rehabilitation services 
that are not eligible to participate in title IV of the Higher 
Education Act of 1965. The procedure must establish minimum 
acceptable levels of performance for such providers and/or 
programs, and take into account performance-based information 
that is to be submitted by such providers desiring to become 
eligible to participate. Because employers are in the best 
position to determine whether or not local programs provide the 
skills needed by local business and industry, local workforce 
development boards must also be utilized for the identification 
and certification of local providers.
    Performance-based information which the Governor may 
require from potential providers of non-degree education and 
training, includes: information relating to the percentage of 
students completing the programs conducted by the provider; the 
rates of licensure of graduates of the programs conducted by 
the provider; the percentage of graduates of the programs 
meeting skill standards and certification requirements endorsed 
by the National Skill Standards Board established under the 
Goals 2000: Educate America Act; the rates of placement and 
retention in employment, and earnings of the graduates of the 
programs conducted by the provider; the percentage of students 
who obtained employment in an occupation related to the program 
conducted by the provider; the warranties or guarantees 
provided by such provider relating to the skill levels or 
employment to be attained by students; and other information 
for providers of services under title I of the Rehabilitation 
Act of 1973 that reflects the goal of serving individuals with 
the most severe disabilities. The Governor must designate a 
State agency to collect, verify, and disseminate this 
performance-based information, along with a list of eligible 
providers, to local workforce development boards, who in turn, 
provides such information to program participants through the 
one-stop career center system. An institution or entity 
intentionally providing false information will be banned from 
program participation for no less than 2 years.
    The bill recognizes that the workforce development system 
must include the private sector as a provider of education and 
training services. Since 1980, private professional firms have 
developed extensive programs to serve the growing training 
needs of our rapidly changing economy and workforce. Research 
indicates that the training market in the information 
technology training industry alone totaled $2 billion in 1994, 
most of this provided by commercial firms. This section of 
CAREERS enables a wide variety of training and education 
providers to participate in workforce development programs. 
This expanded provider involvement allows program participants 
to use the programs' resources to seek through public, non-
profit or private providers, the training that will best enable 
them to enter or re-enter the workforce. By ensuring that one 
provider is not favored over another, this section provides 
maximum customer choice and easy access to services.

            Establishment of Management Information Systems

    Section 109 requires that States, to the extent practicable 
as determined by the Governor, use funds provided under this 
Act to establish a unified management information system (MIS) 
for all programs established or amended under titles II through 
V of this Act, in accordance with guidelines established 
jointly by the Secretaries of Education and Labor, in 
consultation with the Governors. While it is understood that 
States may need a considerable amount of time to fully 
establish such a common management information system, due to 
the expense of such a system, it is the hope of Committee 
Members that States will work toward such a goal over the 
course of the 6 year authorization. Such a common MIS system is 
key to total program integration, as well as being cost-
effective once established, allowing for common data 
collection, reporting, and performance information across all 
workforce development and literacy programs. The Committee 
Members expect that the development of this system will be 
based in large part on the efforts of the Department of Labor 
in the establishment of the Standardized Program Information 
Reporting (SPIR) system.

                   Performance Accountability System

    Section 110 of the bill requires Governors, through the 
collaborative process, to develop a statewide performance 
accountability system in each State receiving funding under 
this Act. In fact, performance accountability requirements are 
included under the State plan (section 104), under section 110, 
and under each of the consolidation grants established or 
amended under titles II through V of the legislation. 
Throughout this bill, there is a great deal of emphasis on 
accountability for results. In other words, we expect Federal 
taxpayer dollars to produce reasonable improvements to State 
and local workforce development systems.
    Throughout all of the hearings held on the issue of reform 
of our U.S. workforce development and literacy programs, 
witness after witness expressed the need for strong 
accountability within such programs under any system reform. 
The business community has probably been the most outspoken on 
this issue, stressing that U.S. workforce development programs 
must meet world class standards in order to provide the skills 
needed by U.S. employers today and in the future.
    Subsequently, Members of the Committee determined that the 
bill should require States to establish their own individual 
performance measurement systems, recognizing the individual 
characteristics and needs of the different States. Such systems 
must include goals, and benchmarks set by the State for 
measuring the continuing progress of its workforce development 
and literacy programs in meeting such goals. Under the bill, 
States must include as core indicators of performance, the 
performance measures established within each of titles II 
through V of the bill, for the individual consolidation grant 
programs. The bill encourages that such indicators take into 
account post-program surveys measuring customer satisfaction of 
both employers and program participants.
    The bill further requires States to identify the levels of 
performance, consistent with State goals, that are expected for 
local workforce development areas and other applicable local 
administrative entities, taking into account world class levels 
of performance, and developing baseline levels of performance 
upon which to measure continuous improvement. Governors may 
adjust the expected levels of performance for each local area 
taking into account economic, demographic, and geographic 
factors, and the characteristics of the population to be 
served. States, in turn, are required to report to the 
Secretaries of Education and Labor, the levels of performance 
achieved by local workforce development areas and other 
applicable local administrative entities, for each program 
year. And subsequently, the Secretaries are to make such 
information available to the general public and to disseminate 
State-by-State comparisons, and where appropriate, comparisons 
to other industrialized nations. States are encouraged to 
utilize unemployment insurance wage data records in the 
collection and reporting of such data, which has proven to be 
very cost-effective and efficient for such purposes.
    By allowing Governors to make adjustments in the expected 
levels of performance for programs under Title II, the 
Committee does not intend that States use this adjustment 
authority to reduce its services or lower its expectations for 
certain classes or groups of students. It is the Committee's 
intention that performance criteria be developed that are 
appropriate for all youth. Too often in the past, lower 
expectations for some young people resulted in their not being 
given the chance to achieve high standards. The Committee 
intends that all youth be given this chance.
    In order to develop comparability in measuring performance 
across States, the bill requires the Secretaries of Education 
and Labor, in collaboration with the States and with 
representatives of business and industry, employees, 
educational agencies, service providers, participants, and 
others, to develop technical definitions of each of the core 
indicators described in this Act, that are to be used in 
measuring performance. The Secretaries, in collaboration with 
the above-listed individuals and organizations, are also asked 
to identify world class levels of performance with respect to 
appropriate core indicators selected from among the performance 
measures described under the legislation. Where appropriate, 
such standards are intended to reflect industry-recognized 
skill standards and national education goals.
    Finally, the bill allows the Secretaries to provide 
technical assistance to States failing to meet performance 
goals set for themselves in any given year, including 
assistance in development of a performance improvement plan. If 
failure continues for a second consecutive year, the Secretary 
may reduce by not more than 5 percent, the amount of the grant 
that would be payable to the State under the affected program 
for the following year, with such penalty based on the degree 
of failure. Similarly, if a local workforce development area or 
applicable local entity fails to meet expected levels of 
performance, the Governor, through the collaborative process, 
may provide technical assistance to that entity, after the 
first year of failure. After a second consecutive year of such 
failure, the Governor may take corrective action, such as the 
withholding of funds, or the redesignation of a local 
administrative entity, or such other action as the Governor, 
through the collaborative process, determines appropriate, 
consistent with State law.
    The legislation also prohibits the displacement of any 
currently employed worker by program participants; prohibits 
the impairment of existing contracts for services or collective 
bargaining agreement; prohibits the replacement of existing 
laid-off workers, or workers terminated with the intention of 
filling the vacancy so created with a student; ensures 
protection of students under applicable Federal, State and 
local health and safety requirements; and clarifies that 
nothing in this Act shall be construed to modify or affect any 
Federal or State civil rights law.

Section B--Amendments to the Wagner-Peyser Act

    This Committee feels that because the Wagner-Peyser Act is 
financed almost exclusively by employers through the Federal 
Unemployment Tax Act (FUTA), there's an obligation to ensure 
that these funds are used for their intended purpose which is 
to maintain a national system of employment services. The 
amendments to the Wagner-Peyser Act ensure that it is fully 
coordinated with the one-stop delivery system proposed under 
the CAREERS Act.
    The Committee wants to stress the importance of the 
connection between the Employment Service (ES) and the 
Unemployment Insurance (UI) System. This linkage has been 
proven to move UI recipients back to work more quickly, thereby 
keeping unemployment taxes as low as possible.
    Amendments to the Wagner-Peyser Act reflect the need to 
have this statute be consistent with the changes and repeals of 
other job training programs under the CAREERS Act. 
Specifically, with the repeal of the Job Training Partnership 
Act, references to ``Private Industry Councils'' and ``Service 
Delivery Areas'' have been changed to ``Local Workforce 
Development Boards'' and ``Local Workforce Development Areas'' 
respectively, taking into account changes in the names and 
functions. This section also defines the term ``public 
employment service office'' to mean an office which provides 
public employment services to the general public under a one-
stop careers center system.
    In order to ensure coordination between the Employment 
Service Offices within the One-Stop system, the amendments 
clarify the role of the Secretary of Labor to oversee this 
process, as well as to establish accountability and performance 
measures for the Employment Service. The role of Governors is 
also enhanced under these amendments by providing them more 
authority over the funds provided under this Act. Currently, 
under Wagner-Peyser, funds go directly to the State 
legislature--and then, typically, directly to the State 
Employment Service Agency. This process has resulted in making 
it difficult for some Governors to ensure that the ES funds in 
their State are coordinated with the overall workforce 
development strategy. It is also intended that this flexibility 
will allow Governors to move towards the privatization of 
certain functions of the Employment services as they see fit.
    Under subsection (d) at least 25 percent of the funds 
available for this title, would have to be used for labor 
market information (LMI) purposes pursuant to Subtitle B. The 
Committee is recommending the 25% allocation for LMI 
activities, including funds appropriated for ES national 
activities and the current BLS Cooperative Statistics Program 
is the base upon which the 25% was calculated. The Committee 
anticipates that part of these funds will be used for Federal 
activities and contracts to States for the Cooperative 
Statistical Programs (CSP). Another part of the funds, after 
covering the costs of developing the design for State and local 
employment and consumer information, will be distributed to 
States for collection of this information according to the 
formula in Subtitle B. Analysis, dissemination, technical 
assistance, research and development are integral components of 
each data program and would be funded in accordance with the 
annual plan described in Title II of Wagner-Peyser.
    In order to reduce the burden upon States in submitting 
multiple plans, Subsection (f) provides for the ability of 
Governors to submit their State Wagner-Peyser plan as part of 
the unified Workforce Development and Literacy Plan established 
under Title I of the CAREERS Act. It is the Committee's 
intention that this will ensure even a greater amount of 
coordination between these systems. Subsection (g) eliminates 
the statutory authority of the Federal Advisory Council.
            Labor Market Information (LMI)
    Section 132 Part B, amends the Wagner-Peyser Act by adding 
a new ``Title II'' to this Act, establishing a coordinated 
system of labor market information.
    It is the intent of Section 21 of Title II, to make clear 
that the labor market information collected pursuant to this 
Act, should be locally-based and that specific counties, cities 
and towns, should have information that is relevant and useful 
to meet their needs. In addition, information should be 
accurate, up-to-date, easily accessible, and user friendly. The 
primary role of collecting LMI, is to serve the customers using 
the workforce development system, and most importantly, program 
participants, employers and program operators.
    This view was underscored in testimony before the Economic 
and Educational Opportunities Subcommittee on Postsecondary 
Education, Training and Lifelong Learning by James Dickerson, 
Chair of the Central Ozarks Private Industry Council, Inc., on 
behalf of the National Association of Private Industry 
Councils:

          NAPIC believes that an essential ingredient to an 
        effective workforce development system is timely and 
        useful labor market information. We need to upgrade 
        existing LMI if we want maximum impact for our training 
        investments. This task will require funds for research 
        and the testing of new data bases and user-friendly 
        technologies.

    Mr. Thomas Gallagher, Manager, Research and Planning, 
Wyoming Department of Employment also provided testimony to the 
same subcommittee on this topic:

          Employees use labor market information to make 
        objective business decisions. Workers use labor market 
        information to make rational choices about training 
        opportunities. Educators use it to decide whether or 
        not a new set of course offerings will lead to positive 
        labor market outcomes for students and employers while 
        elected officials use labor market information to 
        evaluate the socio-economic consequences of policy 
        choice. And yet, Federal responsibility for objective 
        statistical information about the labor market for the 
        nation, the States and local communities is dispersed 
        among a variety of Federal agencies. These agencies 
        lack a common agenda, duplicate effort, and find 
        service to communities if recognized at all to be 
        incidental to their routine operations. In this 
        environment the access of employers, students, workers, 
        policy makers, and educators to sound, objective and 
        pertinent information they need to make the right labor 
        market investment the first time is for the most part 
        denied. Labor market information directors have come to 
        consensus on the types of products local communities 
        need. I, and many others, also believe that we need to 
        organize the work of the Federal government into an 
        accountable, coherent program of effort, aimed at 
        meeting user need, and that has a rational and 
        efficient funding stream.

    The Committee finds that, despite widespread consensus 
about the kinds of data and information that should be included 
in an LMI system (and which are described in Section 22), 
current LMI activities are simply not organized well enough to 
produce them. Gaps in information, duplication of effort, and 
confusion or responsibilities can best be addressed by 
consolidating the currently fragmented governance structure for 
LMI.
    Consolidation at the Federal level underscores the 
responsibility of the Secretary of Labor, as made clear under 
Section 23, and recognizes the key role of the Bureau of Labor 
Statistics (BLS) in LMI. The Bureau, which maintains essential 
LMI programs, has the expertise to design data and develop the 
LMI system. Also, the agency's ongoing data mission will ensure 
a priority commitment to LMI. In addition, BLS fits the 
requirement that the agency charged with LMI responsibilities 
should be a neutral source, trusted by all education and 
training deliverers, and not itself a service deliverer. This 
requirement accords with the Committee's vision that LMI should 
be the common element integrating the various institutions that 
deliver workforce development services.
    The legislation creates a unique Federal-State partnership 
by engaging the State LMI director with BLS in joint planning 
for LMI as required under Section 24. This substantive role for 
the State will ensure attention to State and local data needs, 
responsiveness to consumer demands from employers and job 
seekers, and true cooperation between the Federal agency and 
State LMI agencies.
    In the States, the Governor will also have the 
responsibility, pursuant to Section 25, in naming a single 
agency to carry out LMI activities. This design will enable 
within-State consolidation paralleling at the Federal level. In 
naming the State's LMI agency, governors will need to maintain 
current linkages with the Unemployment Insurance programs.

 TITLE II--YOUTH DEVELOPMENT AND CAREER PREPARATION CONSOLIDATION GRANT

    Title II of the bill consolidates thirty categorical 
education and job training programs for youth into a single 
grant to the States. The consolidation melds the positive 
aspects of the current Carl D. Perkins Vocational and Applied 
Technology Act, School-to-Work Opportunities Act and the Job 
Training Partnership Act (JTPA) youth programs into one 
comprehensive program. Current youth job training programs are 
disjointed and often work at odds with each other. The CAREERS 
bill attempts to present a unified approach to serving the 
needs of the majority of youth who do not complete a 4-year 
college degree. The Youth Development and Career Preparation 
Consolidation Grant moves the focus of programs from the 
Federal to the State and local communities and schools. Ninety 
percent of funds under this grant must be sent to the local 
level with fifteen percent more funds flowing to schools under 
Title II than under the current Perkins Act, and 8 percent more 
than under JTPA's year-round youth program.
    The recognition that a strong education foundation and the 
obtainment of life-long learning skills is critical to the 
success of our Nation's youth is highlighted throughout the 
bill. As our Nation continues to focus on the global economy, 
the Committee reported bill provides a firm foundation for our 
schools and businesses to meet these emerging needs. If the 
United States is to remain competitive in a global economy, it 
is critical that our businesses and schools become partners in 
educating our youth.
    Section 201 of the bill states that the purpose of this 
title is to provide States and local communities with maximum 
flexibility to design youth programs that help individuals 
attain the academic and occupational skills needed to succeed 
in a global economy; best suit the needs of youth and business 
in local communities as well as the needs of the State; promote 
strong connections between in-school and at-risk/out-of-school 
youth programs and promote youth development and career 
preparation programs that provide opportunities for individuals 
to receive postsecondary education and occupational training; 
promote the formation of business and education partnerships; 
promote high academic and occupational standards; and promote 
quality vocational-technical education, including improved 
secondary and postsecondary programs by focusing on program 
improvement that help prepare students for further education 
and training and high wage jobs.
    The primary purpose of Title II, the Youth Development and 
Career Preparation Consolidation Grant, is to provide States 
and localities with maximum flexibility to design workforce 
preparation programs that help youth attain academic and 
occupational skills necessary to succeed in a global economy.
    The focus must be on the young people being served and the 
competencies achieved, not the process. In preparing for a 
high-skilled, high-performance workplace, youth must have 
access to high-quality education and career training that meet 
employer standards and take place in a variety of learning 
environments including school, the workplace and community. 
Basic academic skills are the underpinning for a competent 
workforce.
    In order to streamline the system, the Committee 
consolidated and eliminated duplicative and fragmented 
programs. The Committee has tried hard to provide a foundation 
upon which States and localities can serve the roughly 75% of 
youth who do not pursue or complete a four year college degree. 
The Committee is leaving behind the notion that one size fits 
all. The Committee is trying to prepare the youth of today for 
the jobs of tomorrow; and trying desperately to give them the 
skills they will need to succeed. To quote Robert Maynard 
Hutchins, an American educator, ``The object of education is to 
prepare the young to educate themselves throughout their 
lives.''
    Section 203 includes definitions applicable to the youth 
title of this bill.
    Section 211 allocates the amount of funds for national and 
State programs.
    Section 211(a) reserves $25 million or 20% of the total 
appropriation, whichever is less, for national programs to be 
administered by the Secretary of Education. These funds are for 
the Secretary to conduct general research on youth development 
and career preparation programs and to provide for 
demonstration programs. Funding for the National Center or 
Centers for Research on Youth Development and Career 
Preparation is provided for under this allocation. The figure 
for national programs represents approximately 1% of the 
current appropriation and approximates the amount of funding 
the Department of Education is currently receiving for these 
programs with a 20% reduction. Since the Committee is asking 
the States to take a reduction in funds, the Committee thinks 
it is only fair for the U.S. Department of Education to take a 
similar cut.
    Section 211(b) of the bill provides States with an amount 
of funding which bears the same ratio as the average of funds 
they received in FY 1995 under Sections 101 and 101A of the 
Carl D. Perkins Vocational and Applied Technology Education Act 
and Sections 252 and 262 of the Job Training Partnership Act. A 
small State minimum of \1/4\ of one percent is included in the 
language. The Committee intends to keep the flow of funds to 
the States as close to the current flow without any major 
disruption. A 20% reduction will be applied to the current 
level of funding for all States. It is the intent of the 
Committee that no one State will be harmed and that all States 
will share in our efforts to reduce the Federal budget.
    Section 211(c) requires the Governor to send 90% of funds 
to the local level. Of the remaining 10% of funds, 8% are for 
State programs and 2% is for administration. The Committee 
intends to send as much money to the local level as possible. 
The 1990 Perkins Amendments reduced the State held 
administrative funds from 7% to 5%. The Committee reported bill 
continues this effort by reducing the administrative funds to 
2% with the hope that more funds will reach down to the local 
level to serve our Nation's youth. An October 1994 GAO Report 
to Congress entitled ``Education Finance: Extent of Federal 
Funding in State Education Agencies'' (SEAs), found that State 
Education Agencies reserved a greater share of Federal dollars 
as compared to State funds for State-level operations even 
though Federal dollars comprised less than 10% of total 
funding. ``Total State funding received by the SEAs ($113.8 
billion) far exceeded total Federal funding received ($17.5 
billion)'' according to the GAO. The GAO found also that the 
Federal share of States' operating funds varied from State to 
State--from 6% in one State to 77% in another. The Federally 
funded staff also varied widely from 10% to 81% across States. 
The same GAO report also found that 10 programs comprised over 
half of State education agencies' Federal funding, with the 
Perkins Act being named as 1 of the 10. It is the intent of 
this Committee that Federal dollars should be used for purposes 
related to the education and development of youth and not to 
sustain bureaucracies. The Committee is alarmed at the high 
percentage of funds held by some States to operate programs and 
bureaucracies and it is the hope of this Committee that this 
practice will end and more money will reach children.
    Section 212 outlines the within State Allocation for the 
90% of funds flowing to the local level.
    Section 212(a) states that of the 90% of funds sent to the 
local level, 40% of the funds must be used for programs serving 
in-school youth and 40% of the funds must be used for programs 
to serve at-risk and out-of-school youth. The remaining 20% of 
the funds must flow to local programs, however, the Governor, 
through the collaborative process, has discretion as to how the 
funds are distributed to in-school or to at-risk programs.
    Mr. Hoekstra (R-MI) offered an amendment during full 
Committee consideration of the bill, which was accepted by 
voice vote, which has the intent of allowing the Governor, 
through the collaborative process, to use half of these 
discretionary funds for incentive grants, competitive awards, 
or other forms of distribution to local areas. The amendment 
offered at Committee only allows for 2% of the funds to be used 
at the Governor's discretion; however, the debate in the 
Committee clearly shows the intent was to allow a 50/50 split 
of the 20% of local funds. The Committee intends to correct the 
amendment language when the bill is considered by the full 
House of Representatives.
    In explaining his amendment, Mr. Hoekstra stated, ``What 
this amendment does in Title II, it leaves 10 percent for the 
Governor to allocate between the in-school and the at-risk 
programs, and then it allows 10 percent for the Governor to use 
for incentive grants, competitive processes or other ways to 
distribute those dollars.'' Mr. Hoekstra was trying to provide 
flexibility to the Governors and to encourage creativity and 
innovation among States. The Hoekstra amendment has the 
remaining 10% of funds going out by formula and these may be 
split in any way between the in-school and at-risk/out-of-
school youth programs. The entire 10% may, if the Governor 
decides, be applied to either the in-school or at-risk/out-of-
school programs. The 20% of discretionary funds cannot be used 
for any other purpose except for programs to serve in-school 
and at-risk/out-of-school youth. In dividing the funds with a 
40/40 split, the Committee intends to mirror current 
appropriations figures. The FY 1995 appropriation provided 
roughly $1.3 billion for the Perkins Act and for JTPA youth 
programs. The 20% discretionary funding allows Governors 
flexibility in determining priorities within their States.
    While it is the desire of everyone that all children should 
complete high school, the reality is that our schools have 
failed some of our Nation's youth and sending them back to 
institutions where they have already failed will almost ensure 
failure again. The Committee provides 40% of the locally driven 
funds to local workforce development boards who in turn must 
subcontract with local entities to provide services to these 
children who have fallen between the cracks--out-of school 
youth and youth at-risk of dropping out of school. It is our 
sincere hope that in those instances where our schools have 
failed, our communities will step in and succeed. By having a 
partnership between schools and the local workforce development 
board, we are trying to ensure that the importance of a high 
school diploma and further education is not lost, but 
strengthened. As previously stated, basic academic skills are 
the underpinning for a competent workforce. Title II programs 
must be linked to the academic world and academic reform 
efforts. The emphasis on broad basic academic skills must not 
be lost at the expense of skill-specific training.
    There is also a great concern for children at-risk of 
dropping out of school, so the Committee included these 
students under programs for at-risk youth. Because these young 
people have not yet dropped out of school, it is the 
Committee's hope to catch them before they do. A report by the 
National Association of State Directors of Vocational and 
Technical Education Consortium entitled ``National Partnership: 
Vocational Technical Education and Community-Based 
Organizations'' states:

          The forgotten half, students at-risk, children of the 
        underclass' are invisible labels that mark thousands of 
        young people who leave high school each year unprepared 
        for a future that includes an increasingly competitive 
        workplace. To survive in tomorrow's global economy, 
        America's youth must possess marketable skills.

    The Committee is committed to ensuring that these at-risk 
students are served. The Committee combined the at-risk and 
out-of-school youth together because they need creative 
solutions. As Russell Owens, Director of Government Relations, 
Occupational Industrialization Centers' of America, stated in 
the ``National Partnership report;'' ``We've got to be creative 
about how we provide people access to our services * * * that 
means we're going to have to coordinate and collaborate in ways 
that we've never coordinated and collaborated before.''
    During the full Committee consideration of the bill, Mr. 
Becerra offered an amendment to require that all of the 40% 
funding for at-risk youth programs go toward serving out-of-
school youth. The amendment was defeated in large part due to 
the fact that this amendment would have required States to use 
nearly one half of their funding for only 20% of the youth 
population, assuming that one in five students will drop out of 
school. Further, while it is the Committee's intent that a 
significant proportion of those served under the at-risk 
program are to be out-of-school youth, it is also the clear 
intent of the Members of this Committee that youth be 
encouraged to stay in school, and at a minimum, receive a high 
school diploma. For those who have already dropped out, the 
Committee intends that programs funded under this title 
encourage their return to school or to an alternative school 
setting for receipt of a high school diploma or its equivalent, 
as well as skills training and related work experience. The 
Committee hopes that as a result of this legislation, more 
young people, especially those at risk of dropping out of 
school, will indeed complete high school and go on to further 
education, training, or high skills employment.
    To quote the National Center on Education and the Economy, 
we must now ``turn high school, for many of our inner-city and 
rural poor children, into a place that connects them to hope 
and a reason to believe in themselves, to jobs that can lead 
somewhere, to adults who help them make their way, and to the 
skills that will give them a better life.''
    The 40% of funds that flow to schools to secondary and 
postsecondary in-school youth is aimed at the 75% of youth who 
do pursue or receive a college degree. According to the U.S. 
Department of Labor, 70% of jobs will require more than a high 
school degree by the year 2000. It is critical that we reach 
out and serve the vast majority of students who do not go on or 
complete their bachelor degree. As Governor McKernan testified:

          Companies, large and small, are facing the reality of 
        a new world economy in which change is constant and 
        accelerating, reaching every sector of our economy . . 
        . For workers in this emerging American economy, 
        knowledge and skills are potent determinants of their 
        economic success. Increasingly, jobs with a future and 
        suitable pay require education and training that many 
        current workers, employed, underemployed, and 
        unemployed, do not have. The link between education and 
        earnings has never been stronger.

    This Committee, with this legislation, is trying to focus 
on the majority of students who do not complete college, who do 
not have special needs, but are regular students who, for 
whatever reason, do not choose to go on to or complete college. 
The Committee believes there should be more students arriving 
at the workplace with basic communication and thinking skills. 
The National Assessment of Vocational Education agrees: ``First 
and foremost, vocational education should become an integral 
part of a reformed American system of education and training. A 
comprehensive system should provide all students with access, 
multiple entry and exit points, clear education pathways, 
quality programs, high standards, information, and linkage to 
the labor market.'' These are the goals that were set forth in 
the School-to-Work Opportunities Act last year for youth (both 
in-school and out). And these are the goals intended to be 
carried on through this reform legislation. It is the intent of 
this Committee that our students arrive at the workplace ready 
to learn with basic communications and thinking skills.
    Section 212(b) requires the Governor, through the 
collaborative process, to develop a substate formula taking 
into account local poverty rates, the proportion of the State's 
youth population residing within local communities and other 
factors the State considers appropriate. In establishing the 
formula, the Governor shall ensure that funds are equitably 
distributed throughout the State and that the factors described 
above do not receive disproportionate weighting. This language 
was added to the bill in an amendment offered at the 
Subcommittee on Postsecondary Education, Training and Life-Long 
Learning mark-up by Mr. Souder (R-IN). The language was a 
compromise between those who wanted a prescriptive formula 
dictated by the Federal government, such as is provided in 
current law, and those individuals who argued for full 
discretion for the Governor to establish the allocation of 
funds. The amendment by Mr. Souder outlines certain criteria to 
be included in a substate formula but allows the State total 
discretion in establishing additional formula factors and for 
designing exactly how the funds will flow. The only specific 
requirements are that the distribution of funds within the 
State be equitable and, that the formula factors not be 
disproportionately weighted. It is the hope of this Committee 
that by providing broad outlines of what our intent for a 
formula is, States will hold true to our intent and distribute 
funds fairly and to those most in need of Federal assistance. 
It is the clear intent of the Committee that funds be equitably 
distributed both geographically and proportionally, and 
although this section requires that Governors ensure funds are 
distributed equitably throughout the State, this Committee does 
not intend that the Department of Education regulate the 
extent, or meaning of the term ``equitable.''
    As Subcommittee Chairman Buck McKeon noted, ``Throughout 
consideration of this bill, our Committee attempted to strike 
the proper balance between giving States and communities the 
flexibility needed to operate these programs while ensuring 
accountability for Federal dollars. On a bipartisan basis, the 
Committee made a conscious decision to reject the overly 
prescriptive ways of the past; at the same time, the Committee 
rejected a no-strings attached revenue sharing approach.''
    Section 212(c) establishes minimum grant awards of $15,000 
for a local education agency or consortium of such agencies; 
$15,000 for subgrants made by local workforce development 
boards to serve at-risk/out-of-school youth; $50,000 to 
postsecondary institutions or consortium of such institutions; 
and allows secondary-postsecondary institutions to form 
consortia to receive grant funds with a minimum award of 
$50,000. This continues a practice established during the last 
reauthorization of the Perkins Act which tried to ensure that 
Federal dollars would have a significant impact and not be 
spread so thinly that localities would not be able to do 
anything substantive with the dollars.
    Section 212(d) prevents consortia from forming to receive 
funds and then separate immediately after receipt of the 
Federal dollars and dividing the funds between the entities. 
The provision requires that consortia must form for the 
purposes established under this title and must stay in a 
consortia arrangement for purposes of delivering services to 
youth under this title. The Committee intends to prevent 
institutions and groups to form solely for the purpose of 
receiving funds and make no effort at collaboration of 
services.
    Section 212(e) permits a State to grant a waiver for the 
minimum grant amount in cases where the eligible recipient is 
located in a rural, sparsely populated area; and demonstrates 
that they are unable to enter into a consortium for purposes of 
providing services under this title. This provision is to allow 
States with rural areas to provide funding to those areas 
without imposing a significant Federal burden. While clearly 
the intent of this Committee is to have the Federal dollars 
well spent and to have an impact, there is an understanding 
that consortia may not always be possible in those areas of our 
Nation which are more sparsely populated than the coastal 
areas.
    Section 221 outlines the requirements for the State Plan. 
In order to receive funds under this title, this section 
requires the State to submit additional information with the 
plan outlined in Title I. There is no requirement for a 
separate plan. Additional information that must be included in 
this comprehensive plan: how the State will adopt or develop 
model curricula and innovative instructional methodologies to 
be used in schools that integrate academic and vocational 
learning and promote career awareness; State plans for 
expansion of career exploration counseling for students in 
elementary and secondary schools and how the State will 
effectively demonstrate a system of career preparation for 
youth; how the State plans to integrate academic and vocational 
education and a description of how the State will promote 
collaboration between secondary and postsecondary occupational 
and academic programs and institutions; a description of how 
the State will develop academic and occupational skills of 
students providing challenging vocational-technical education 
standards and how the State will develop a process to issue 
skill certificates that are consistent with the skill standards 
endorsed by the National Skill Standards Board; a description 
of how the State will promote active involvement of business in 
planning, development and implementation of youth programs; and 
a description of how the State will coordinate Goals 2000 and 
Improving America's Schools Act and other State education 
improvement plans with this State plan.
    The current Perkins Act imposes 23 requirements for a 
separate plan to be submitted to the Department of Education. 
The JTPA imposes 12 prescriptive requirements for submission of 
a separate plan. CAREERS requires that only 6 additional items 
be included in a comprehensive plan for all titles of the bill. 
CAREERS effectively replaces the 2 separate plans and 35 
requirements with 6 items.
    As the majority of people testifying before the Committee 
on job training consolidation noted; our current system is 
fragmented. It is not serving our youth well and it is not 
serving business:

          Unlike many other industrialized nations, this 
        country still lacks a comprehensive system of workforce 
        preparation. Educational programs and institutions 
        operate in loosely coordinated, sometimes disconnected 
        ways, and individuals are left on their own to navigate 
        their way through them and into the labor market. (NAVE 
        Report--1994)

    The solution is a seamless system that strengthens 
education and training. By requiring one comprehensive plan and 
not separate categorical plans, we are moving one step closer 
to the seamless system.
    Section 222 contains the State programs and State 
activities that can be used for the 8% of funds held by the 
State.
    Section 222(a) grants general authority to the State to 
conduct State programs and activities.
    Section 222(b) requires that of the 8% of funds allotted 
for State activities, the State must use the funds for the 
development of performance standards and measures for programs; 
and program improvement and accountability. These are the only 
required uses of funds for State level activities. The National 
Center for Research in Vocational Education reports:

          Performance measures and standards should continue to 
        be used to gauge the success of programs and guide 
        their continuous improvement; these program measures 
        should incorporate newly developing academic and 
        occupational skills standards for individuals . . . By 
        requiring States to develop performance measures and 
        standards, the 1990 Amendments to the Carl Perkins Act 
        helped educational institutions shift from a concern 
        with inputs and process-related standards to outcomes . 
        . . New Federal legislation should therefore stress the 
        continued development of performance measures and 
        standards to improve accountability; however; it should 
        concentrate on local implementation of outcomes 
        measures to provide feedback to both students and 
        educational institutions in the interests of program 
        improvement.

    Section 222(c) outlines additional uses for the 8% of State 
held funds. These include: tech-prep programs; workforce 
preparation programs for single parents, displaced homemakers 
and single pregnant women; corrections vocational education; 
professional development activities regarding integration of 
vocational, academic and work-based curricula including support 
of public teacher-education programs to ensure vocational 
teachers stay current with industry needs; and in-service and 
preservice training of teachers in state-of-the-art programs 
and techniques; development, dissemination and field testing of 
curricula with a particular focus on curricula that integrate 
vocational, academic and work-based learning methodologies, 
curricula focusing on a coherent sequence of courses measuring 
academic and occupational skills, and curricula for work-based 
learning; leadership and instructional programs in technology 
education; data collection, including support for management 
information systems; one stop career centers; cooperative 
education and family and consumer science programs; creative 
use of technologies, including professional development in the 
use of such technologies for instructional purposes; support 
for vocational student organizations; and improving career 
guidance and counseling.
    Section 223 permits States to offer Incentive Awards. 
States are permitted to use money from the 8% of State-held 
funds to offer incentive awards to local communities. This is 
an optional use of funds for the State and not mandatory. The 
State has the discretion as to how to construct these awards 
with 3 requirements outlined for the disbursement: 1) 
performance goals exceeded; 2) outstanding workforce 
development system implemented at the local level; or 3) 
exemplary education services and activities provided for at-
risk youth. The intent of this section is to allow States to 
use a ``carrot'' approach rather than a ``stick'' method which 
has been unsuccessful and hard to enforce in prior attempts. It 
is our hope that States will use these awards to reward local 
communities that show significant progress in improving the 
performance of at-risk and out-of-school youth.
    Section 224 contains the core standards, performance goals 
and measures for this title.
    Section 224(a) requires each State to have in place, or 
develop and implement, a statewide system of core standards and 
measures of performance for programs serving youth under this 
title. The intent is to coordinate this system with other 
titles included under this Act. Each statewide system must: 
establish or have established, performance goals to measure the 
level of performance achieved by youth served under this title. 
The goals must evaluate the quality and effectiveness of 
services and activities under this title; goals must be 
expressed in an objective, quantifiable and measurable form; 
establish progress indicators that State and local recipients 
of funds will use to measure their progress toward these goals; 
and provide reports every 2 years to the public and to the 
Secretary of Education on the State's progress in achieving 
their goals.
    Section 224(b) requires that a statewide system of 
standards and measures be developed and include: measures of 
academic and occupational competency gains, including progress 
in achieving academic and occupational competency (including 
attainment of: challenging State academic standards, 
challenging vocational-technical education standards; and 
industry recognized occupational standards including basic 
workplace competencies as identified by the SCANS Commission 
and industry recognized skill standards as identified by the 
National Skills Standards Board, once established); retention 
in school or completion of secondary school or its equivalent; 
placement into additional training, postsecondary education, 
military service, registered apprenticeship or employment; and 
employment retention and earnings level; reduction of the drop-
out rate; and success of special populations, including 
nontraditional training and employment in meeting the 
performance standards established by the State. It is the 
intent of this section that common performance measures be 
established and used for both in-school and at-risk youth 
programs. The Committee further intends that the same high 
levels of academic and skills attainment are possible for 
youth, regardless of whether they are in or out of school.
    Section 224(c) states that the Governor, through the 
collaborative process, shall ensure that the performance goals 
are consistent with challenging State academic standards, 
industry recognized skill standards and State goals established 
under this title. Department of Education Assistant Secretary 
Augustus Souza Kappner stated in her testimony before the 
Subcommittee on Postsecondary Education, Training and Lifelong 
Learning on March 3, 1995; ``The change taking place in 
vocational education is directly related to the rapidly 
changing needs of today's economy. Jobs are requiring a higher 
level of academic and technical skills. Employers are telling 
us clearly that too many young people cannot meet the rigorous 
demands of today's workforce. To keep America competitive in 
the global economy, we must educate our young people to much 
higher standards and prepare them to be lifelong learners.'' It 
is the hope and intent of this Committee that States set high 
standards that challenge all youth--ones that invite them to 
attain higher academic, skill levels and achievements. Further, 
the Committee intends that only through attaining academic and 
occupational achievements will youth be able to meet the 
requirements demanded of a competitive workforce.
    Section 231 outlines provisions for Partnership Agreements.
    Section 231(a) states that in order to receive a grant at 
the local level, the local workforce development board and 
eligible institution(s) must form a partnership. The purpose of 
the partnership is to allow for collaborative planning between 
educators and business to determine the curricula our youth 
need to obtain high wage jobs, coordination of programs serving 
in-school and at-risk/out-of-school youth and allow for 
effective public participation. While previous legislation has 
stated that coordination must take place, Congress has found 
that very little true coordination occurs. By forcing providers 
to sit down together and draw up a plan for both in-school and 
at-risk youth before the receipt of funds, it is the 
Committee's hope that they will gain better cooperation, better 
coordination and a greater respect and understanding for what 
services each is providing. Our Nation's youth are a precious 
commodity and we must plan for their future with the utmost 
care. We should not allow ourselves to become bogged down in 
turf wars but should concentrate on the task at hand, which is 
educating our youth and preparing them for success in their 
adult years. A child should not be denied the American dream 
because adults argued who was better to serve the child. We are 
asking that businesses, community leaders, parents, and 
teachers become partners in developing a plan to continue the 
American dream.
    Section 231(b) notes that the partnership must develop and 
submit for approval to the Governor and State collaborative 
process, a comprehensive plan outlining how they are planning 
to serve both in-school and at-risk/out-of-school youth. The 
partnership must assure the involvement of parents, teachers 
and the local community, including community-based 
organizations, in the planning process. The Committee did not 
want to be so prescriptive as to tell local communities who 
exactly they should have on their boards. The Committee did 
believe it was crucial to have the input of parents, teachers, 
students and members of the local community in decisions and 
plans which they will have to play a large part. We therefore 
assure that they will be involved and have a voice.
    Section 232 outlines who receives the funds at the local 
level from the State.
    Section 232(a) states that funds directed to the local 
level from the State to serve in-school youth must go to 
schools and eligible institutions. Schools are an integral part 
of the community and the primary source of education for our 
Nation's youth. While everyone would agree that there is a need 
for change within our current school system, eliminating 
schools from the equation is not the solution. Schools should 
remain a principle partner; however the bill fosters a new 
relationship for school systems in that it requires a plan be 
developed with the local workforce development board prior to 
the receipt of funds. As the National Governors Association 
reports in ``Advancing America's Workforce;'' ``This nation 
does not have the luxury of time or resources to totally 
dismantle the current system and rebuild it from the ground up. 
Rather, by thinking strategically and drawing on the best 
practices from the current mix of public programs, with their 
broad range of providers, and the experiences of the private 
sector, it is possible to quicken the transition and 
consolidate and streamline these programs into a 'world-class' 
system.''
    Section 232(b) directs that funds to the local level from 
the State to serve out-of-school youth will be sent to the 
local workforce development board to be subgranted to eligible 
entities for programs to serve at-risk and out-of-school youth.
    Section 241 outlines the uses of funds for In-School Youth 
Programs.
    Section 241(a) requires institutions receiving funds under 
this title to use the monies to improve youth development and 
career-related education programs.
    Section 241(b) requires that funds received for in-school 
youth programs must be used for programs that are of such size, 
scope and quality as to be effective; integrate academic, 
vocational and work-based learning, stressing applied and 
contextual learning, through a coherent sequence of courses so 
youth achieve both academic and occupational competencies; 
involve employers in design and implementation of programs; 
establish effective linkages between at-risk/out-of-school 
youth programs at both the secondary and postsecondary levels; 
provide work-based learning experiences with adult mentoring 
where appropriate, and to the extent possible, with strong 
experiences in, and understanding of, all aspects of an 
industry appropriately tied to the student's career major; with 
accommodations to be made for rural areas so that they can meet 
this requirements; and provide career exploration, including 
opportunities in the practical arts and trades at an early age.
    Section 241(c) outlines additional uses of funds at the 
local level for in-school youth programs include: purchasing, 
leasing or upgrading equipment; in-service training of 
providers on the integration of academic and vocational 
education; tech-prep education programs; supplementary services 
that might be required by members of special populations; 
adaptation of equipment; apprenticeship programs; comprehensive 
mentoring programs; activities which enable program 
participants and their parents in decisions influencing 
programs; local education/business partnerships for developing 
and implementing youth programs; and support for vocational 
student organizations.
    Section 245 outlines the uses of funds for At-Risk Youth.
    Section 245(a) grants general authority for local workforce 
development boards to subgrant to providers for programs that 
serve at-risk and out-of-school youth.
    Section 245(b) lists requirements for uses of funds for 
programs that serve at-risk and out-of-school youth as: such 
size, scope and quality as to be effective; integrate academic, 
vocational and work-based learning, stressing applied and 
contextual learning, through a coherent sequence of courses so 
at-risk and out-of-school youth achieve both academic and 
occupational competencies; involve employers in design and 
implementation of programs; establish effective linkages 
between at-risk/out-of-school youth programs at both the 
secondary and postsecondary levels; provide work-based learning 
experiences, including experiences in the practical arts and 
trades, with accommodations to be made for rural areas so they 
can meet these requirements; provide adult mentoring as a core 
component of the program; provide objective assessment of 
academic levels, skill levels, and service needs of each 
participant in the program; and career exploration and 
counseling.
    Section 245(c) lists additional uses of funds as: tutoring 
and study skills training leading to completion of high school; 
alternative high school services; community service 
opportunities that are combined with training or education; 
paid work experience, including summer youth employment and 
other work experiences tied to education and training; drop-out 
prevention strategies and strategies to encourage out-of-school 
youth to reenter high school or alternative high school 
programs; preemployment and work maturity skills training; 
peer-centered activities encouraging responsible behaviors; and 
training related services for participants who have exhausted 
all other resources.
    Section 245(d) limits the amount of funds to be used for 
administrative purposes by local workforce development boards 
to 10%.
    Section 246 details who can serve as an At-Risk youth 
provider of services, encouraging the selection of providers 
with demonstrated effectiveness, or who will utilize 
methodologies that have prove effectiveness in serving at-risk 
and out-of-school youth. The Committee has found that despite 
more than thirty years of federally funded employment and 
training programs, there remains a limited record of success in 
providing effective job training assistance for disadvantaged 
youth. Nevertheless, during hearings on this subject, the 
Postsecondary Education, Training and Lifelong Learning 
Subcommittee heard encouraging testimony about exemplary 
programs that have been successful in serving at-risk youth. In 
particular, programs run by the Opportunities Industrialization 
Centers of America (OICs), which include the Quantum 
Opportunities Program (with sites around the country), and the 
SASSY program (operated in Menlo Park, California), have 
achieved dramatic results in keeping at-risk youth in school 
through intensive after-school educational support and adult 
mentoring. While more difficult to find, programs with 
demonstrated effectiveness in serving out-of-school youth 
include those run by the Center for Employment Training (CET), 
headquartered in San Jose, California, with sites replicated in 
40 cities throughout the country; and the nationally acclaimed 
Youth Build program, currently operating in 40 cities, with 
well over 100 new sites under development. Under these 
programs, school dropouts have met with high levels of success 
in academic and skills attainment, moving into unsubsidized, 
high wage jobs.
    While the Committee recognizes that States and local 
communities need flexibility in choosing the most appropriate 
training models for youth that meet their individual needs, it 
is the Committee's intent that, where possible, exemplary 
programs such as these, with proven effectiveness in serving 
at-risk youth, be replicated. The Committee also urges the 
Secretary to use resources available for the purpose of 
replication of model programs, under section 251 of the bill, 
to assist States and local communities in the design and 
implementation of highly successful modes such as described 
above.
    Section 246(a) does not permit local workforce boards to 
operate programs and requires that they subcontract to eligible 
providers. One of the criticisms heard by this Committee 
regarding the JTPA was that programs run by Private Industry 
Councils (PICs) were often some of the least effective. This 
provision prohibits local workforce development boards from 
running programs and will hopefully result in the delivery of 
better and more efficient programs for at-risk and out-of-
school youth.
    Section 246(b) lists eligible providers to receive 
contracts from the local workforce development board as: 
eligible institutions including local educational agencies, 
area vocational schools, intermediate educational agencies; 
postsecondary institutions including community colleges, State 
corrections educational agencies and any consortia of the 
aforementioned list; local government entities; private, 
nonprofit organizations including community based 
organizations; private, for-profit entities; one-stop career 
centers; or other organizations or entities that have a 
demonstrated effectiveness and have been approved by the local 
workforce development board to deliver such services to at-risk 
and out-of-school youth. Schools are eligible providers of 
services for at-risk and out-of-school youth and it is the hope 
of this Committee that they will be an active participant in 
providing services. Education is the key to future success and 
while our schools have failed in some instances, the value of a 
solid education and high school diploma should not be lost.
    Section 251 outlines national research activities.
    Section 251(a) permits the Secretary of Education to make 
grants and other agreements to carry out research, development, 
dissemination of materials, replication of model programs, 
demonstration programs, evaluation, capacity building and 
technical assistance activities in regard to services and 
activities administered under this title. Activities may 
include support for occupational and career information 
systems. The current Perkins Act lists 9 separate programs that 
must be carried out under the Demonstration Program section. 
The Committee has eliminated all of these set-asides and given 
the Secretary the flexibility to select programs he or she 
deems appropriate for demonstration programs. This is 
consistent with the Committee's desire to grant more 
flexibility and be less prescriptive in statutory language.
    Section 251(b) requires the Secretary to establish a system 
for disseminating information gathered though research and 
development efforts under this title.
    Section 252 contains provisions relating to the Annual 
Assessment and Data Collection of Vocational Education 
Programs.
    Section 252(a) requires the Office of Educational Research 
and Improvement (OERI) at the Department of Education to 
conduct a biennial assessment of services and activities funded 
under this title. This section also requires that independent 
studies and analyses be conducted through competitive awards. 
Language was included in the 1990 Perkins Act Amendments which 
encouraged, but did not mandate the Department of Education to 
conduct research through the OERI. It is the understanding of 
this Committee that the Office of Education Research and 
Improvement is the primary research arm of the Department of 
Education. The Committee is distressed at the lack of research 
concerning vocational education and would like to ensure that 
reliable information is available and plentiful prior to the 
next review of job training programs.
    Section 252(b) requires that the assessment shall examine 
the extent to which services this section and activities 
assisted under this title have achieved their intended purposes 
and results. This section requires analysis of the extent to 
which State and local services and activities have developed, 
implemented or improved systems established under this title; 
services and activities funded under this title have succeeded 
in preparing students, including members of special 
populations, for postsecondary education, further learning, or 
entry into high-skill, high wage careers; students 
participating in programs funded under this title have 
succeeded in meeting challenging State academic and industry-
based skill standards; and the system improvement, 
participation, local and State assessment, and accountability 
provisions of this title including the effectiveness of the 
performance goals and indicators established under this title 
are effective.
    Section 253 grants authority for the establishment of a 
National Center or Centers for Research:
    Section 253(a) gives authority to the Secretary of 
Education to establish a national center or centers for 
conducting applied research, development, dissemination and 
technical assistance activities focusing on improving the 
career preparation of youth. Eligible entities include 
institutions of higher education, other public or private 
nonprofit organizations or agencies, or any consortia of the 
aforementioned entities. The national center in existence on 
the date of enactment of this Act shall continue to receive 
assistance under the current terms of its contract but shall 
not be guaranteed continued assistance except through a new 
competitive award. Funding for the center or centers shall be 
provided from funds allocated for national programs by the 
Secretary of Education. The Secretary has the authority to 
contract for one or more centers upon the expiration of the 
contract with the University of California, Berkeley. The 
University of California, Berkeley, can compete for a new 
contract but shall not be given preference in the awarding of 
such contract. It is the belief of this Committee that an 
outside center is necessary and should be a high priority for 
the Secretary. Among other duties, the center provides 
technical assistance to States in developing standards and 
measures. It is the understanding of this Committee that the 
Department of Education does not have the capacity to provide 
these services currently so the center will be a valuable 
resource for States as we transform the job training system.
    Section 253(b) lists that required activities of the 
national center or centers include: activities that assist 
recipients of funds under this title to develop, implement and 
measure core standards and performance; research and 
development of activities that combine academic, vocational 
education and work-based learning; developing new models of 
remediation of basic academic skills; identifying ways to 
establish links among education and job training activities at 
the State and local level; new models for career guidance, 
career information and counseling services; longitudinal 
studies on programs funded under this title including an 
analysis of the effectiveness of youth development and career 
preparation programs in serving at-risk youth; and other 
activities that the Secretary of Education determines to be 
appropriate. This section requires also that the center or 
centers shall provide assistance to States and local recipients 
in developing and using systems of performance measures and 
standards. Technical assistance and outreach to practitioners 
or organizations in need of assistance is a required activity. 
Annual reports are due to the Secretary of Education and 
Secretary of Labor. The Secretary of Education shall then 
submit the report to the Senate Committee on Labor and Human 
Resources and the House Committee on Economic and Educational 
Opportunities. The Committee intends to have an outside source 
provide research to the Congress and Nation on the effects of 
the youth development and career preparation programs whether 
or not they are producing the intended results. The center or 
centers are also a primary resource for State and local 
officials in their development of standards and measures.
    Section 253(c) establishes a clearinghouse within the 
center or center(s) to provide data and information to Federal, 
State and local organizations and agencies.
     TITLE III--ADULT EMPLOYMENT AND TRAINING CONSOLIDATION GRANTS

    During the extensive hearings this Committee held on the 
issue of job training, Members heard from witnesses 
representing a wide variety of groups including the private 
sector, elected officials, academics, government research 
agencies, program administrators, and training participants. 
Although the views expressed by these witnesses varied in many 
aspects regarding how best to improve the current system of 
adult employment and training programs, there was a common 
theme in their testimony--the need and urgency for the 
restructuring of our current fragmented job training programs 
into a coherent system with the capability of improving the 
skills of the nation's workforce in order to better compete in 
the world marketplace. Mr. Jere A. Jacobs, from Pacific Telesis 
Group (California's single largest private sector employer), 
provided testimony before the Subcommittee on Postsecondary 
Education, Training and Lifelong Learning:

          I tell you from experience that the (skills) gap is 
        readily apparent and growing between the skills needed 
        by employers and the deficit of skill in new job 
        seekers. At Pacific Telesis, we give an exam to 
        applicants for entry-level positions. About 60 percent 
        of the applicants fail this test, and all the 
        applicants have a high school diploma or post-secondary 
        education. A growing percentage of job applicants come 
        to us with minimal educational competencies or 
        workplace skills such as interpersonal and critical 
        thinking skills. Representatives of the banking 
        community have had similar experiences to the point 
        that they look for applicants who have earned a 
        Bachelor's Degree to have assurance that the applicants 
        have adequately mastered reading and writing.'' Mr. 
        Jacobs further added: ``Training for current employees 
        will always be largely a business responsibility. But, 
        the quality of workforce preparation and the efficiency 
        of labor market transitions are shared responsibilities 
        traditionally between the public and private sectors. 
        We must work together to design and support a workforce 
        development system that will serve all workers 
        throughout their careers. We call this a seamless 
        system of life-long learning.

    In developing Title III of this legislation, the Committee 
attempted to ensure the establishment of such a system of 
``life-long learning'' and employment assistance. This is 
reflected in a wide variety of authorized activities, which 
range from the provision of basic information on job openings 
and labor market information to job seekers, to the 
establishment of a system of skill grants for education and 
training. Title III further allows for the creation of 
incumbent worker training opportunities through workforce skill 
and development loans to employers, and encouragement to 
Governors to establish innovative programs for incumbent worker 
training through the use of State-held funds.

                         Program Authorization

    The authorization level, under section 302, for the Adult 
Employment and Training Consolidation Grant reflects the 
combined current FY 95 appropriation levels of all programs 
consolidated under this Title, reduced by approximately 20%. 
This reduction takes into account the level of savings which 
this Committee feels will be achieved through reductions in 
administrative costs and efficiencies in overall program 
delivery resulting from the consolidation of numerous existing 
programs, as well as simplifies and consolidated planning, 
reporting and data collection requirements. The funds 
consolidated under this part do not consist of authorizations 
made available under the Wagner-Peyser Act.

                        State Allotment of Funds

    Section 303 reflects the Committee's intent that the State 
allotment of funding, to the extent possible, remain consistent 
with the proportion of funds currently received by States under 
the existing programs being consolidated. In addition, the 
Committee is committed to ensuring that small States be 
provided the necessary resources to establish and maintain 
State and local infrastructures necessary to achieve the goals 
of this legislation. Therefore, this section includes a ``small 
State minimum'' for such purposes. Section 303 of the bill also 
provides the Secretary of Labor with 15% of the funds made 
available under this Title to carry out National activities. 
This amount is equal to roughly a 7% reduction from levels 
currently held at the National level for these purposes.

                          State Uses of Funds

    Section 304 outlines the uses of funds reserved for 
Governors. It is the Committee's intent that Governors will 
continue to provide funding for rapid response activities, 
however, unlike current requirements under Title III of JTPA, 
Governors will now have the ability to transfer the 
responsibilities of carrying out the actual provision of 
services, along with the funds, to the local workforce board in 
the affected area--thus relying on local expertise as opposed 
to requiring the deployment of State officials who may or may 
not have the ready knowledge and proper background to assist in 
these matters. In addition, Governors would be required to use 
a portion of their funds to provide assistance to areas that 
experience major dislocation. The Committee feels that this is 
a very important role to be held at the State level--
recognizing that major dislocations, natural disasters, and 
other unanticipated events which result in large-scale 
unemployment require the substantial infusion of additional 
funds and assistance that cannot be covered through locally-
driven formula funds.
    Further, under this section, Governors have the ability to 
carry out other activities to ensure a high quality and 
effective statewide workforce development system. These 
activities may include: capacity building and technical 
assistance; incentive grants and performance awards, also 
available at the Governor's discretion to further leverage 
local program performance; the funding of model programs, 
including innovative programs designed to meet the training and 
skills needs of incumbent workers; and additional assistance 
for the development of one-stops and support of a common 
management information system across the 4 consolidation 
grants.
    Governors are allowed to use up to \1/4\ of the 20% State 
reservation for administration. It is the view of this 
Committee that this 5% set aside of the total State allotment, 
is a suitable amount to carry out both the requirements of this 
Title, as well as to support discretionary activities.

                          Substate Allocation

    Under subsection (b) of this section, Governors allocate 
80% of funds allotted to them from the Federal level to local 
workforce development boards as established under Title I of 
this Act. While funding is required to be allocated to the 
local areas, the legislation does not impose a prescriptive, 
Federally determined substate formula. Of the funds that are 
earmarked for local distribution, 90 percent must be sent to 
local workforce development areas, based on a substate formula 
developed by the Governor, through the collaborative process, 
which takes into account poverty, unemployment, the population 
of adults within the State, and such other factors as 
determined appropriate by the Governor. Further, such formula 
must distribute funds equitably, within the State. This 
language was offered as an amendment during the Subcommittee 
consideration of the bill by Congressman Souder (R-IN). In 
addition, Congressman Hoekstra (R-MI) offered an amendment 
during the full Committee consideration of the bill which was 
accepted that 10 percent of the funds held for local 
distribution, may be distributed to local workforce development 
areas, at the discretion of the Governor. The Committee feels 
that these requirements are flexible enough to allow Governors 
latitude in the distribution of funds in a manner which meets 
the needs of each individual State. Although this section 
requires that Governors ensure funds are distributed equitably 
throughout the State, this Committee does not intend that the 
Department of Labor regulate the extent, or meaning of the term 
``equitable.''
                          program eligibility

    It is the intent of this legislation and the Committee to 
provide services on a universal basis, and to steer away from 
overly prescriptive Federal requirements defining eligibility 
for program participation. In fact, the legislation includes no 
eligibility criteria for the provision of any of the services 
authorized under this title, except that in times of limited 
funding, local workforce development boards are to establish a 
process by which dislocated workers and economically 
disadvantaged individuals are given priority for intensive 
education and training services under the adult employment and 
training program. Further, as required under Section 305 of 
this Title, this Committee believes the Federal government 
should know how States intend to serve dislocated workers and 
other individuals with barriers to employment, such as 
economically disadvantaged individuals, older workers, and 
displaced homemakers. Therefore, States are required in their 
State workforce development and literacy plans, to describe how 
they intend to serve these populations under the reformed 
program.
    Although the Committee intends to provide wide discretion 
to States and local communities on how services are provided 
and at what levels, it is necessary to provide some broad 
direction in how increasingly limited Federal funds are used. 
Under Section 306, it is made clear that funds available under 
Title III should be available to provide core services for 
adults in need of such services through the one-stop career 
system as described in Title I of CAREERS. For those 
individuals who are unable to obtain employment utilizing the 
core services, or are simply determined to be in need of more 
intensive services in order to gain employment, funds may be 
used to provide intensive services. Education and training 
services are to be provided to individuals, only after 
intensive job search assistance has been provided or 
assessments have determined that the individual is in need of 
such assistance in order to obtain employment. Under this 
approach, it is the Committee's intent that the adult 
employment and training program be based on a ``work first'' 
approach, allowing universal accessibility based on true need. 
In addition, the Committee feels that the limited funds 
authorized under title III should not substitute for 
alternative grant assistance for which an individual is 
eligible, such as Pell Grants or other student aid programs.
    In order to provide individuals participating in education 
and training programs under this title, with a responsibility 
and choice in selecting the program which best suits their 
needs, the Committee determined that such services be provided 
through the use of skill grants, with limited exceptions. These 
exceptions from the required use of skill grants include: the 
provision of on-the-job training, where employers provide the 
training; in localities where the local workforce development 
board determines there is an inadequate number of service 
providers to make skill grants a viable option (of special 
concern in rural areas); in cases where the local workforce 
development board determines that there are not certified 
providers of services capable of providing services for special 
participant populations; and in cases where the local workforce 
development board decides to enter into a direct training 
contract with a community-based organization serving special 
populations.
    While Committee Members support the use of skill grants 
under the adult training system, there is the full 
understanding that the success of the use of skill grants is 
contingent upon several important supporting elements, and that 
States and localities will need time to establish such 
supports. Specifically, States, in conjunction with local 
workforce development boards, will need to establish effective 
certification procedures for the identification of qualified 
providers of education and training, as required under section 
108 of the bill, that provide program participants with broad 
options, but at the same time guard against ``fly-by-night'' 
providers. Further, skill grants will only be successful if 
individuals eligible to receive them have a full range of 
accurate information on the quality of providers, including 
information on program costs; program completion; program 
graduates' rates of licensure, placement rates, wages at 
placement, receipt of skill standards and certification 
requirements (as endorsed by the National Skill Standards 
Board); and customer satisfaction information as available. 
Further, it is important that program participants have access 
to locally-based, accurate, and up-to-date labor market 
information to assist them in determining what occupations they 
should pursue. Such information is intended to be provided 
through the one-stop career center system, as established under 
this bill, including access to information in such convenient 
locations as public libraries, schools, and other public 
locations.
    The bill further allows for the provision of supportive 
services, such as transportation and child care assistance, 
that will enable individuals to participate in job search 
assistance and education and training programs. It is the 
Committee's intent that these services are provided on a 
limited basis, and only to those individuals who are unable to 
receive such services through other programs specifically 
designed to provide such services. Supportive services are 
currently allowed under current law have been used in only a 
very limited fashion. Similarly, the bill allows for limited 
needs based payments to individuals in need of support payments 
in order to complete long-term education and training programs. 
This bill in no way expands eligibility for income support. In 
fact, for dislocated workers who have exhausted unemployment 
insurance benefits, such additional needs based payments can 
only be provided after the exhaustion of UI eligibility, and 
the individual must have been enrolled in a training program by 
the 8th week after his or her initial employment termination.

                 performance measurement/accountability

    Consistent with the performance measurement language 
contained in other sections of the bill, title III includes 
language requiring that States establish performance goals and 
progress indicators or benchmarks that take into account: 
placement, retention, and earnings of program participants in 
unsubsidized employment, including retention and earnings at 6 
months, and at 1 year, respectively; the provision of services 
to dislocated workers, economically disadvantaged adults, older 
workers, individuals with disabilities, displaced homemakers, 
veterans, and other individuals with multiple barriers to 
employment, including individuals with basic skills 
deficiencies; and acquisition of skills certificates pursuant 
to a skill standards and skill certificate system endorsed by 
the National Skill Standards Board. Such standards are simple, 
easily measured, support the goals and purpose of this title, 
and are consistent with standards called for by numerous 
witnesses at the hearings held by the Committee on reform of 
the U.S. workforce development system.

                      subtitle B--federal programs

    While this Committee strongly supports moving funds to the 
State and local level, it is also felt that there are certain 
functions which due to their nature, are most efficiently done 
at the Federal level. These types of functions are more clearly 
spelled out under this Subtitle.
    This Committee feels that one of the more important Federal 
responsibilities, is the continued ability of the Secretary to 
provide assistance to those areas suffering major economic 
dislocations. Events such as military base closings, mass 
layoffs, plant closures, and major disasters, are prone to 
happen in any given State and at any given time, making it 
sensible that the Secretary of Labor be allowed to direct 
assistance to such areas from the Federal level.
    There are also other activities worthy of providing the 
Secretary the flexibility to carry out. Activities such as 
incentive grants, which have been shown to drive States to 
achieve high levels of success; research and evaluations, to 
ensure that the programs are working as they are intended and 
technical assistance, to make sure that State and local front 
line employees have the knowledge and expertise to properly 
carry out the programs; are some examples of what the Secretary 
should have the flexibility to carry out. In addition, the 
Secretary may carry out demonstrations which examine the 
effectiveness of targeting funds for intensive employment and 
training programs to ``empowerment zones''.
    Due to the limited amount of funds available for job 
training, section 314 would allow the Secretary to establish 
programs whereby limited Federal dollars would be combined with 
private sector funds in order to allow business to institute 
training programs moving toward life-long learning and 
increasing the ability of workers who are laid off or lose 
their job, to have the skills necessary to enter other 
employment.
    This idea has been strongly supported by employer groups. 
In testimony before the Economic and Educational Opportunities 
Subcommittee on Postsecondary Education, Training and Lifelong 
Learning, Mr. Kevin Wheeler, Director of the National 
Semiconductor University provided testimony on behalf of the 
American Society for Training and Development:

          (Congress) should establish a Federal matching grant 
        program for training that would provide matching grants 
        to local consortia of business, labor, education 
        institutions, and community and professional 
        organizations that develop training programs, quality 
        assurance processes, equipment utilization and other 
        workforce improvement initiatives.

                         demonstration projects

    It is the intent that the pilot and demonstration projects 
conducted by the Secretary of Labor for the purpose of 
developing and improving methods and techniques for addressing 
employment and training needs, may be conducted jointly with 
the Department of Defense, specifically through the Training 
and Simulation Technology Consortium, a not-for profit, Defense 
funded partnership of industry, government and academia.

                            native americans

    The Committee has provided for a continuation of services 
to Indians, Alaska Natives and Hawaiian Natives. Section 315 
addresses the unique relationship between these populations and 
the Federal government. Services are to be implemented in a 
manner consistent with overall Federal policy toward these 
groups.
    This section authorizes a wide range of services and 
support for a variety of types of service providers. In 
general, the Committee intends that available funds be 
distributed in such a way that the various Native American 
constituencies served by the special Indian education, 
employment and training programs continue to receive services 
proportional to those received in the past taking into account 
the overall reductions of Federal job training and employment 
funding.
    The authority provided to delegate a portion of the funds 
to strengthen Indian vocational education agencies, including 
United Tribes Technical College and the Crownpoint Institute of 
Technology, to the Secretary of Education recognizes the 
importance of these institutions.
    In order to ensure that these services are effective in 
addressing special Native American needs, the organizational 
unit in the Labor Department with responsibility for this 
section should have particular competence in the administration 
of programs for this service population and be staffed 
accordingly.
    The Committee points out that Indian, Alaska Native and 
Hawaiian Native Service providers are also eligible, consistent 
with other provisions in the bill, to receive funds under the 
various block grants administered by the States.

                   migrants and seasonal farmworkers

    The Congress recognizes that this program will be the main 
vehicle for public investments in meeting migrant and seasonal 
farmworkers' and their dependents' employment, training. 
education, development, and other supportive service needs. 
These investments assist farmworkers to obtain or retain stable 
employment, both within and outside of agriculture, to provide 
development and other educational assistance to enhance their 
employability, and to provide emergency assistance and other 
supportive services that will stabilized and improve their 
agricultural employment situation.
    The Committee is aware of the quality, innovation, and 
cost-effectiveness of services and assistance provided to 
farmworker grantees by the Association of Farmworker 
Opportunity Programs (AFOP) and encourages the Department to 
continue their activities, including technical assistance and 
training, development and implementation of a farmworker 
database and other information technologies and developments 
that can further improve the capabilities of grantees funded 
under Section 316. The Secretary must consult with farmworker 
organizations, such as AFOP and grantees prior to the 
promulgation of policies, rules, regulations, and performance 
standards or measures relating to migrant and seasonal 
farmworkers and farmworker programs.
    Due to the changing nature of agricultural employment both 
within and outside of the United States that affects the U.S. 
domestic farmworker population, Congress urges the Department 
to be responsive to these changes and periodically review and 
make necessary adjustments to ensure a quality program for 
migrant and seasonal farmworkers.
    The Secretary of Labor may also transfer authority to the 
Secretary of Education for the provision of high school 
equivalency and college assistance for migrant and seasonal 
farmworkers. The Committee believes high school equivalency and 
college assistance migrant programs are effective in assisting 
migrant students to receive the education they require to 
become productive members of society and to overcome the 
hardships they experienced due to their or their family's 
migration for purposes of employment. It is our expectation 
that these programs will continue to operate as they did prior 
to their repeal as individual programs. This transfer of 
authority does not prevent the conduct of these same activities 
through other grants awarded under Section 316. Additionally, 
the Secretary may award single purpose grants for the provision 
of technical assistance for job training programs for housing 
for migrant and seasonal farmworkers.

 TITLE IV--ADULT EDUCATION AND FAMILY LITERACY CONSOLIDATION GRANT AND 
                 LIBRARY SERVICES AND TECHNOLOGY GRANT

                    block grant provides flexibility

    The existing Adult Education law contains a number of set 
asides and caps which prevent States, as well as local 
providers, from addressing the most pressing adult education 
and literacy needs in individual States and local communities. 
For example, current law sets forth the following caps and set-
asides: a) not less than 10 percent of funds received by States 
are to be used for corrections education and education for 
other institutionalized individuals; b) not more than 20 
percent of their allotment is to be used for high school 
equivalency programs, and c) not less than 15 percent of funds 
they receive are to be used for experimental demonstrations and 
teacher training projects. H.R. 1617 eliminates these 
restrictions. The Committee believes that the needs of those 
currently served through the set-asides and reserves can be 
better met with a highly flexible, consolidated State grant. 
Section 432 of this legislation provides that no more than 3 
percent of funds may be used for State administration and 
reserves an additional 12 percent for other State activities, 
which include technology assistance, professional development 
and State Literacy Resource Centers. However, there are no 
restrictions on how local dollars are to be used and States can 
choose from a wide range of State activities. If a State 
determines to focus dollars on assisting students in receiving 
their high school equivalency diplomas, there is no longer any 
cap restriction on the amount of funds which can be used for 
this purpose.
           Focusing Our Efforts to Create a Literate Society

    According to a 1992 report entitled ``Study of Federal 
Funding Sources and Services for Adult Education,'' there were 
84 programs in 11 agencies identified as supporting adult 
education services between 1986 and 1988. Twenty-seven of these 
programs were categorized as primary programs in which adult 
education was explicitly stated as a priority objective in each 
program's authorizing legislation. Of these 27 programs, the 
dominant focus was basic skills and literacy.
    In addition, there are a variety of small literacy programs 
authorized under the Adult Education Act and the National 
Literacy Act which essentially provide services which can be 
provided through basic adult education programs operated in 
each State. For example, although there is currently a set 
aside under the Adult Education Act for incarcerated 
individuals, the National Literacy Act created yet another 
small program to address the needs of this population. It is 
the belief of the Committee that the populations served by 
these small programs can be more effectively served under the 
Adult Education Act, which is more far-reaching than smaller 
programs and has the ability to provide a wider range of 
services to a greater number of participants.
    The Committee has, therefore, consolidated the eight adult 
education and literacy programs under its jurisdiction into a 
single block grant to the States. The block grant will be 
focused upon adult basic education programs, adult secondary 
education programs, programs providing English literacy 
instruction and family literacy programs. The consolidation 
increases the flexibility of States and local providers, to 
design and fund programs which best meet the needs of 
participants.

                           eligible entities

    Section 432 outlines the entities eligible to receive funds 
under this Act. Eligible local service providers include: local 
educational agencies, correctional agencies, community-based 
organizations, public or private nonprofit agencies, 
institutions of higher education, and other institutions that 
the State determines have the ability to provide literacy 
services to adults and families are included in the list of 
eligible entities. In addition, the Committee has added 
libraries as an eligible local service provider. The Committee 
believes that libraries have served and continue to serve as an 
important resource for literacy services.

                            family literacy

    Family literacy programs have proven effective in reaching 
some of the most difficult to serve populations, including 
individuals with low literacy skills and those receiving 
welfare payments. In describing family literacy, Sharon 
Darling, President and Founder of the National Center for 
Family Literacy, in her appearance before the Subcommittee on 
Early Childhood, Youth and Families, stated, ``Family literacy 
is a very intensive approach to adult education and early 
childhood. It is a synergy of combining disciplines together, 
combining funding streams together that can affect change in 
the family for the short and long term.'' According to Betty 
Mohlenbrock, President of the Family Literacy Foundation in 
Solana Beach, California, ``the single best predictor of a 
child's future success in reading, and, consequently, in 
school, is if they have been read aloud to on a regular 
basis.'' Unfortunately, for many children, their parents are 
under-educated, have low literacy skills and lack the self-
esteem necessary to be their child's first teacher. As a 
result, these children lack a strong literacy experience, lack 
reading readiness, and enter school behind their peers. By 
working with the entire family, family literacy programs not 
only assist parents in building their literacy and education 
skills, but they also provide educational assistance to their 
children to ensure that they do not experience educational 
failure. Family literacy programs have demonstrated their 
effectiveness in bringing about change in the home. Parents 
begin to read to their children and support their child's 
education. Over the long term, children whose parents 
participate in the program are less likely to need special 
education or to be held back in school.
    Sharon Darling cited a recent study which indicated that 
even though 88 percent of the parents in this program (family 
literacy) were on welfare when enrolled, 66 percent of those 
parents now are either employed, participating in education and 
training programs, or have definite plans to continue their 
education. For these reasons, we have added family literacy as 
one of the uses of funds for which these block grant dollars 
can be used under Section 432.

                      strong links to job training

    One of the primary changes in this legislation is the new 
connection between job training and adult education systems. 
Too many individuals seeking job training find themselves 
unable to benefit from programs because they do not have the 
literacy skills necessary to benefit from training programs. 
According to Dr. Augusta Kappner, Assistant Secretary, Adult 
and Vocational Education, U.S. Department of Education:

          A significant proportion, sometimes as much as 50 
        percent of individuals who are in job training 
        programs, simply don't have a high enough level of 
        literacy skills to be able to benefit from those 
        specific job training programs . . . we have to find a 
        way to make sure that folks have the basic literacy 
        skills they need to be able to take advantage of the 
        occupational skills and to be able to change careers as 
        work changes.

    Increased employability is a priority outcome for adult 
basic education services--for both the individuals who need to 
strengthen their educational skills and for the communities in 
which they live and work. The ability of communities to attract 
and maintain high performance, high wage businesses and 
industries and the ability of individuals to obtain and retain 
good jobs at these workplaces have a common denominator: a 
strong educational foundation upon which responsive, flexible 
and high quality products and services can be built.
    The CAREERS bill eliminates current barriers to strong 
partnerships between education and job training programs and 
involves the education community in the development of a 
State's job training system. This acknowledgement, plus 
language in the bill giving a priority to funding local 
providers who coordinate with workforce development boards and 
one-stop centers, will address some of the current problems 
facing individuals with low literacy skills who are seeking 
training and employment. In addition, the bill provides for a 
transfer of funds to adult education providers for those 
individuals who seek job training assistance but who do not 
have the literacy skills required for participation. In the 
past, the adult education system has been asked to coordinate 
with a growing number of programs. However, funding has seldom 
followed participant referrals and participants are often 
turned away because the system does not have the capacity to 
meet the current demand for services. It is the view of the 
Committee that the current adult education system be 
strengthened in order to meet the job training demands under 
this legislation, as well as under welfare reform.

             using adult education funds for other purposes

    While the CAREERS bill closely ties adult education to the 
job training system, it acknowledges there are uses of adult 
education other than assisting individuals who need to increase 
their literacy skills for purposes of employment. Minnie Mae 
Robinson, a program participant from Grows Literacy Council, 
Apopka, Florida described for the Committee her experience with 
adult education. Ms. Robinson stated that she only attended 
school ``a little'' as a child because she had to work. She 
said that adult education meant a lot to her. She is no longer 
just a student, she helps counsel in her community and has 
written three books. She stated that the adult education 
program she attended gave her back her self-esteem. She pointed 
out that she had no self-esteem when she could not fill out a 
work sheet or write out a money order or a check. She said 
these things mean a lot to adults. She stated that she has now 
learned to do these things for herself and not have to go from 
house to house begging someone to fill out an application. Ms. 
Robinson is in her 70s and did not seek out adult education for 
purposes of employment. She did so to improve her ability to 
function in society and to help others.
    The legislation approved by the Committee recognizes that 
adult education and literacy programs play a key role in 
assisting individuals to achieve the literacy skills they need 
to apply for U. S. citizenship, to provide education to parents 
participating in family literacy programs, and to provide 
services to individuals like Ms. Robinson.
    According to the most recent National Evaluation of Adult 
Education Programs (1995) (NEAEP), the number of participants 
enrolling in English as a Second Language (ESL) programs is on 
the increase. In the 1992-1993 program year, 40 percent of 
program participants were enrolled in ESL classes. In 1980, ESL 
learners constituted just under 20 percent of enrollees. This 
grew to 31 percent in 1992 and 1993 and, according to the NEAEP 
study, 46 percent of new enrollees entered ESL instruction. Dr. 
Andrew Hartman, Director, National Institute for Literacy, 
pointed out that limiting adult education to providing services 
to individuals seeking assistance for employment services 
would, in actuality, constrain the flexibility of the States 
because they would not be able to use such funds for programs 
such as family literacy. The Committee felt, therefore, that it 
was important to allow the continued use of funds for programs 
serving limited English proficient individuals and family 
literacy.

             incentives to assist hard-to-serve individuals

    Although it is gratifying to learn that adult education and 
literacy programs are of great assistance to some individuals 
seeking their GED's, high school diplomas and literacy skills 
necessary for citizenship, these programs are still unable to 
demonstrate great success in assisting individuals with very 
low literacy skills, many of whom are in low paying jobs or 
receiving welfare benefits. The Committee recognizes that it is 
easier to serve individuals who need just a small amount of 
assistance; however, the Committee is also aware that the goal 
of reducing welfare rolls will not be met unless we are able to 
provide quality services to the neediest individuals. According 
to Mr. Rodgers Smith, Provost, Continuing Education Center, San 
Diego Community College District, San Diego, California:

          Beginning-level students cannot be ignored We know 
        that students must be at a high beginning or a low 
        intermediate level of either ESL or ABE (Adult Basic 
        Education) to become citizens or to benefit from job 
        training or to gain employment. We must give our 
        beginning students a chance to reach that level. If the 
        beginning-level students are ignored, this group could 
        remain dependent on welfare for a very long time.

    Therefore, Section 32 of the Committee bill requires States 
to set aside three percent of State dollars for an incentive 
program for local providers to improve services to this 
population. The Committee intends for rewards to be given to 
local providers after they demonstrate success in serving the 
target population rather than up front. In this way, they will 
be encouraged to develop ways to provide assistance to hard to 
serve populations with existing dollars and not rely on a 
constant influx of new dollars to provide such services.

                       measuring program success

    In addition to providing incentives to States and local 
providers to address the needs of individuals with low literacy 
skills, the Committee has set forth progress indicators in 
Section 434 which States can use to monitor the success of 
adult education and literacy programs funded under this Act. 
Cheryl L. Keenan, Director, Bureau of Adult Basic and Literacy 
Education for the Pennsylvania Department of Education, stated 
that adult education legislation must provide a strong base for 
accountability. She stated:

          Legislation should provide for a process by which 
        States could join together to build a national 
        framework of desired program outcomes that are closely 
        tied to the purposes and goals of this legislation. 
        This framework would enable States uniformly to report 
        the results of adult education so they could be 
        nationally demonstrated.

    While high school diplomas and GEDs are some of the more 
commonly used measures of program success, the Committee 
recognizes that there are other measures of program success, 
particularly for individuals with low literacy levels. As Dr. 
Augusta Kappner indicated in her testimony, ``the field is at a 
point where it needs to move from quality indicators and input 
measures, to real ways of measuring results and outcomes.'' The 
Committee agrees. By setting broad parameters for measuring 
program success, the Committee has allotted to States the 
responsibility for establishing their own statewide goals and 
benchmarks for achieving those goals. At the same time, we will 
be able to monitor whether or not programs funded under this 
Act are effectively serving the diverse educational needs of 
individuals no longer in school. The Committee expects States 
to use information collected from local providers to be used to 
improve programs and make decisions on the allocation of 
resources.

the national institute for literacy and state literacy resource centers

    Section 441 of the Committee bill established the national 
Institute for Literacy. The National Institute for Literacy 
(NIFL) is a critical part of the national effort to improve the 
nation's system of adult education and literacy. The research 
development, technical assistance, and information that the 
NIFL provides to State and local programs will be even more 
important as literacy providers work to meet the goals and 
performance standards required by this legislation. For 
example, the electronic information and communications network 
developed by the NIFL will provide the adult education and 
literacy field with up-to-date information both from national 
sources and other State and local programs. Since literacy and 
basic skills education for adults and families is vital to 
attaining many of the nation's economic and social goals, the 
NIFL must provide leadership in creating more effective and 
efficient literacy services.
    The Committee intends for the NIFL to be a national 
resource for Federal agencies, States, one-stop centers, and 
local employment and education programs as they implement the 
CAREERS Act. The interagency nature of the NIFL is a perfect 
fit for the coordinated, consolidated human resource 
development system that is the goal of this legislation. The 
Committee expects the NIFL to continue in this role of working 
across labor, education, and human service programs, and 
expects these Federal agencies to work closely with the NIFL to 
support its mission.
    The Committee did not provide a separate line item for 
State Literacy Resource Centers. While the Committee believes 
the Centers serve a meaningful purpose, it is important at this 
time to focus as many dollars as possible on providing services 
at the local level. However, in view of the fact that these 
State centers provide an important link between States and 
local programs and the National Institute for Literacy and may 
not be continued without some type of Federal support, the 
Committee has included language in Section 432 and Section 442 
of the bill allowing individual States and the Department of 
Education to fund these centers out of the funds they receive 
under this Act.
          library service and consolidation grants technology

    The Committee recognizes the valuable role America's 
libraries have played in ensuring that all Americans have equal 
access to information. When the Library Services and 
Construction Act was first authorized in 1956, the goal of this 
program was to ensure that all Americans had access to 
libraries and the information they contain. The Committee is 
pleased to note that today, 96 percent of all Americans have 
access to libraries.
    However, this nation is currently undergoing a 
technological revolution and recently, we have witnessed a 
tremendous proliferation in new sources of information. This 
trend will not only continue, but is certain to accelerate. It 
is clear that America's libraries will need to take advantage 
of these new technologies if they are to continue to ensure 
that all Americans have equal access to information.
    A 1994 study conducted by the U.S. National Commission on 
Libraries and Information Science found that only 20.9 percent 
of America's 9,050 public libraries had any involvement with 
the Internet. Of these, only 13 percent reported that they 
offered patrons access to the Internet. It is clear that the 
time has come for a shift in Federal library policy, and that 
shift must be toward helping this country's libraries, and 
ultimately the American public, gain access to the technologies 
and information they will need as we move into the 21st 
century.
    The Committee reported bill will do just that. It 
consolidates the Library Services and Construction Act, the 
Academic Library and Information Services provisions in Title 
II of the Higher Education Act of 1965, and the Elementary and 
Secondary School Library Media Resources program from the 
Elementary and Secondary Education Act into one Federal 
libraries program focused on helping all libraries acquire 
cutting edge technologies.
    Library Services Technology Consolidation grants will 
provide for library service to citizens through the use of new 
information technologies. They will help bring America's 
libraries, public, elementary and secondary schools, and 
academics, into the 21st century. They will help libraries form 
electronic linkages with one another to better share resources, 
and they will give all Americans access to new and better 
sources of information, such as the Internet. In addition, 
libraries will use these funds to forge connections with one-
stop career centers, providing a unique resource for those who 
wish to find or improve careers.
    Central to this mission is the philosophy that access to 
electronic information resources must be both democratic and 
egalitarian. Libraries and Librarians must be well equipped to 
help patrons navigate the information superhighway and provide 
access to the wealth of information available; government 
information, library resources, education and job information. 
For millions of Americans, the library will become the on-ramp 
to the information superhighway.
    The Committee is pleased to note that some communities are 
already beginning to assimilate these new technologies. For 
example, Beverly Choltco-Devlin, Director of the Morrisville 
Public Library in Upstate New York talks of ``the wondrous and 
miraculous'' experience of adult literacy students in using the 
Internet to interact with new adult learners across the country 
and around the world. She notes that this successful program 
was inspired by the experience of a 51 year old dairy farmer 
who somehow got through the ninth grade with only a first grade 
reading level. Clearly, in rural or isolated areas, this new 
ability to communicate provides a powerful incentive for 
literacy.
    However, communities across this country will need help to 
tap into these new resources. Just as the Library Services and 
Construction Act provided access to libraries for millions of 
Americans, Library Services Technology Consolidation grants 
will give Americans equal access to the information sources of 
the 21st Century.

                   TITLE V--VOCATIONAL REHABILITATION

                                overview

    Title V includes amendments to the Rehabilitation Act of 
1973. It is the intent of the Committee to maintain the values 
and protections that are currently embodied in title I of the 
Rehabilitation Act, but to draw a distinction between these 
values and protections and the current State-controlled 
delivery system of services.
    The changes to title I of the Rehabilitation Act would 
promote the following positive improvements in the delivery of 
vocational rehabilitation services to individuals with 
disabilities:
          Individuals with disabilities would have much greater 
        choice over development of career objectives and the 
        choice of services to support those objectives;
          The system would encourage the participation of 
        private service providers and, through competition, 
        would yield improved outcomes;
          To the maximum extent possible, specialized service 
        delivery would be integrated with other employment 
        programs to create a more efficient use of Federal 
        resources;
          Integrated service systems would ensure that all 
        individuals with disabilities would receive at least 
        core services, and would not be volleyed back and forth 
        between the adult training and vocational 
        rehabilitation systems, which now happens; and
          Vocational rehabilitation funds would be specially 
        targeted and protected to meet the needs of disabled 
        individuals.

                           transition period

    Chapter 1, Section 501 creates a transition period for 
State systems to integrate into the new local-delivery system 
under the Consolidated and Reformed Employment, Education and 
Rehabilitation Systems Act.
    The Committee recognizes that there will be significant 
restructuring of the adult job training system, and the adult 
training system has not traditionally been responsive to the 
needs of individuals with disabilities. For this reason, a 
simultaneous transition from a State-run rehabilitation system 
to a locally-controlled system while the new one-stop systems 
are being established would not be the best approach.
    Under the Committee's plan, the collaborative process, the 
development of local workforce development boards and one-stop 
career center systems would take place in Fiscal Year 1996. 
During the development of these systems, individuals with 
disabilities would be involved both at the State level and at 
the local level. This would ensure that, during the initial 
development of these new systems, the rehabilitation needs of 
individuals with disabilities will be anticipated.
    During Fiscal Year 1996, the bill would require the 
Secretary of Education, operating through the Commissioner of 
the Rehabilitation Services Administration, to develop 
administrative policies for implementing the changes to title 
I. During this year, the Commissioner would work with the 
Secretary of Education and the Secretary of Labor to develop 
the national performance indicators for vocational 
rehabilitation required by the Bill. The Commissioner would 
also provide policy guidance to the States to guide them 
through implementation of the new system requirements.
    During fiscal years 1997 and 1998, the Secretary will begin 
to implement the amendment with a special focus on facilitating 
the transition from a State-controlled system to a locally-
controlled, consumer-directed system. The steps to be taken 
include establishing guidelines for approving providers, 
establishing guidelines for use of skill grants, training 
management and staff of the one-stop centers to effectively 
meet the needs of consumers with disabilities, and establishing 
guidelines for the one-stop centers, including encouraging the 
participation of community-based providers that had previously 
received funds under the Projects with Industry, Supported 
Employment, and Javits Wagner O'Day programs.
    The Committee intends that the new amendments take effect 
not later than the first day of fiscal year 1999, and that, 
prior to this time, the current title I of the Rehabilitation 
Act will remain in force, except that the Commissioner will 
take steps to move toward the FY 1999 implementation deadline.

         revision of title i of the rehabilitation act of 1973

    Chapter 2, includes the Revision of title I of the 
Rehabilitation Act of 1973.

                       client assistance program

    Section 511 transfers the Client Assistance Program to 
title V of the Act. The Committee recognizes the unique focus 
of the Client Assistance program in assisting individuals with 
disabilities to obtain needed VR services, as opposed to 
challenging systemic barriers, which is authorized under the 
Protection and Advocacy of Individual Rights (PAIR) program. 
The CAP program is moved to title V because the Committee 
believes that title V, relating to civil rights and in which 
the PAIR program is placed, is a more appropriate placement.

                                purpose

    Section 100. Purpose. The Committee believes that the 
revised title I has a threefold purpose: 1) assisting States in 
offering individualized, specialized employment, training, and 
rehabilitation services to individuals with disabilities, 2) 
maximizing individual control over vocational and career 
choices; and 3) assuring equality of opportunity, full 
participation, independent living and economic self 
sufficiency.

                             formula grants

    Section 101 lays out criteria for Formula Grants to States. 
Subsection (d) provides that such sums as may be necessary for 
each fiscal year 1999 through 2002 are authorized. Although the 
CAREERS Act authorizes programs from fiscal year 1996 through 
2002, the amendments to the Rehabilitation Act do not take 
effect until fiscal year 1999. The paragraph also provides that 
each State will not receive less than was appropriated in the 
previous fiscal year, plus the amount of the ``Consumer Price 
Index Additional.'' These provisions are identical to current 
law.
    Under H.R. 1617, title I of the Rehabilitation would 
maintain its budgetary status as a mandatory program, and its 
annual increases in funding would reflect the increase of the 
consumer price index. Titles II-VII, however, are no longer 
mandatory but reflect the discretionary status that the 
Committee has historically believed was the status of these 
programs.

                 state allocations of responsibilities

    Section 102 establishes allocations within each State for 
administrative responsibilities. The Committee intends that the 
State will retain 20 percent of funds under title I of the 
Rehabilitation Act, both to carry out statewide activities, and 
to provide direct services to individuals with disabilities 
under certain circumstances. In certain circumstances, such as 
in serving individuals with blindness and other low-incidence 
disabilities, or when the individual is still hospitalized or 
in medical therapy, the State could take on responsibilities 
normally associated with the one-stop career system, providing 
eligibility determinations, assessments of vocational 
rehabilitation need, and vocational rehabilitation services, 
directly to the disabled individual. In this case, the State 
would need to comply with standards for choice, use of skill 
grants, and participation of private providers that the one-
stop career systems follow.
    Also, the geography and rural nature of certain States may 
create extraordinary challenges in providing services to 
individuals with disabilities through local workforce systems. 
In such areas, traditional market forces may not respond to 
providing needed specialized services to individuals with 
severe disabilities. The State, again, may have a proper role 
in providing direct services.
    This section also clarifies that 80 percent of the 
vocational rehabilitation funds will be expended by the local 
workforce development board, working through the one-stop 
career center system to provide education and training services 
to individuals with severe disabilities.

                         state responsibilities

    Section 103 lays out the responsibilities of the State 
Administrative Agent.
    Subsection (a) allows a Governor to designate an 
administrative agent to administer the vocational 
rehabilitation program, and at the Governor's discretion, a 
separate agent to administer vocational rehabilitation services 
to individuals who are blind.
    Subsection (b) lays out the responsibility of the State 
administrative agent. Under H.R. 1617, States would experience 
a changing role in vocational rehabilitation. Instead of being 
the primary provider of direct services, States would be 
responsible for establishing certain statewide criteria to 
assure a minimum degree of services within the State, serve in 
a quality oversight and monitoring function, and also serve as 
a source of training and technical assistance to the one-stop 
career systems within a State.
    Subsection (b)(1) clarifies that all activities under this 
section shall be carried out through the collaborative process 
established under section 103 of the CAREERS Act.

           order of selection/priority on severe disabilities

    Subsection (b)(2) is similar to the provision of current 
law that requires each State to establish an ``order of 
selection'' for first providing vocational rehabilitation 
services to those individuals with the most severe 
disabilities, if the State is unable to provide vocational 
rehabilitation services to all eligible disabled individuals. 
The Committee has chosen to retain the ``order of selection'' 
requirement so that individuals with the most severe 
disabilities will continue to receive priority for services. 
Individuals with severe disabilities have an employment rate 
drastically below that of individuals with moderate 
disabilities (23 percent employment for the severely disabled 
compared to around 80 percent for the moderately disabled). In 
addition, the Federal government carries the primary financial 
responsibility for providing assistance to individuals under 
the Social Security Disability Insurance (SSDI) and 
Supplemental Security Income (SSI) programs, which provide cash 
and medical assistance to individuals with severe disabilities. 
For these reasons, the Committee believes the Federal priority 
continues to be toward facilitating employment of individuals 
with severe disabilities.
    The Committee has not created a definition of ``most severe 
disability,'' instead allowing States to determine their own 
prioritization system for delivering services.

                           choice of services

    Subsection (b)(3) requires the State to establish 
guidelines so that individuals with disabilities eligible for 
services and having been assessed for rehabilitation needs will 
have the choice of receiving services from a provider 
designated by the one-stop career center or chosen by the 
individual. The Committee recognizes that, in certain 
circumstances, the one-stop career center may have established 
referral relationships with certain providers. The Committee 
intends that the individual be given the choice of securing the 
designated services from the provider with whom the center has 
a referral arrangement, or from another approved provider that 
the individual chooses.
                      statewide/regional providers

    For certain specialized services for individuals with 
disabilities, the Committee recognizes that there may not be 
enough providers of services within a local workforce delivery 
area to provide an individual with an adequate choice of 
services. In some cases, there may only be one qualified 
provider of a particular service within a State. For this 
reason, providers are approved on a statewide basis so an 
individual can choose a provider elsewhere within the State to 
provide the service. In addition, there may be circumstances 
where it is necessary to approve providers outside of a State 
when a particular service is only available on a regional or 
national basis.

                 community-based provider participation

    Subsection (b)(4) requires the State to encourage the 
participation of community-based private providers, with 
special consideration to providers who have participated in the 
Projects with Industry and Supported Employment programs, or 
under the Javits-Wagner O-Day Act.
    The Committee believes that one of the major reforms 
necessary in vocational rehabilitation is to allow and 
encourage much greater participation of private providers in a 
competitive market for service delivery. State rehabilitation 
managers argue that, in many States, a high percentage of 
direct services are contracted out to private providers. While 
this is probably more efficient than providing such services 
in-house, it does not take full advantage of the competitive 
nature of an open market. The reformed system will allow direct 
competition among providers for the customer's business, 
empowered through the use of service vouchers.
    Upon full implementation of the amendments in H.R. 1617 in 
FY 1999, the Projects with Industry and Supported Employment 
Demonstration programs will be repealed. Projects with Industry 
and Supported Employment have made enormous contributions to 
the development of rehabilitation services over the last 
decade, and it is time that their contributions be fully 
integrated into the State grant system. Because the reforms of 
H.R. 1617 will create a public-private partnership with strong 
outcome orientation, the demonstration-style Projects with 
Industry program is no longer necessary. In addition, the 
concept of Supported Employment has been successfully 
demonstrated as a vital component of helping individuals with 
severe disabilities obtain integrated employment. This program, 
too, is no longer necessary as a distinct component, and should 
be merged into the State grant program. To facilitate current 
providers under these programs, as well as providers under the 
Javits Wagner O-Day Act, the State shall make special efforts 
to encourage their participation as providers in the new 
rehabilitation system. The Committee expects this new system to 
use projects with industry and supported employment as a model 
to provide vocational rehabilitation services giving consumers 
the most choice in determining their career.

                              eligibility

    Subsection (b)(5) provides that the State will establish 
procedures to guide eligibility determinations. Under the Order 
of Selection criteria established by the State, individuals 
entering the one-stop career system will have eligibility 
determinations conducted for services.
    Subsection (b)(6) relates to standards to govern the 
assessment of an individual's need for rehabilitation within a 
State. The State plays an important role in assuring local 
areas are given clear guidance about how assessments shall be 
conducted. Under H.R. 1617, States will establish a methodology 
so that, based on a consumer's degree of rehabilitation needs, 
there will also be established a monetary value of goods and 
services available to the consumer. These standards are 
designed to prevent unreasonable disparities in the level of 
services available to individuals with similar degrees of 
rehabilitation need.
    The Committee is concerned, that under current practices, 
there is little uniformity within a State of the level of 
services for which an individual is eligible. Such a 
methodology, specifically geared to measure the individual 
degree of rehabilitation needs for an individual, will assist 
in ensuring equity of services throughout the State.
                            impartial review

    Subsection (b)(7) provides that the State will establish 
procedures through which an impartial review may be requested 
and obtained.
    The Committee believes that, under the reformed system 
established by H.R. 1617, there will be much greater 
accountability for actual services rendered to an individual. 
First of all, for vouchers, there will be a direct contract 
arrangement between the one-stop center and the provider. In 
addition, payments to providers will be made on a 
``performance'' basis. That is, when a provider agrees to 
provide a service, a portion of the full payment will be 
withheld until the services have been successfully delivered. 
Both of these reforms bring greater accountability to the 
provider.
    Under H.R. 1617, eligibility determinations and assessments 
of vocational rehabilitation needs will be the primary 
responsibility of the one-stop career systems. The impartial 
review, utilizing an impartial hearing officer, will determine 
whether the standards for eligibility and assessment of 
vocational rehabilitation needs, and development of 
individualized rehabilitation plans were correctly applied to 
the individual. The Rehabilitation Act does not convey an 
individual entitlement to services, but participants in the 
program must receive fair and equitable treatment under the 
program. As part of establishing guidelines for the impartial 
review, the State will establish a minimum number of days 
during which the impartial review must be conducted. Rather 
than establish a particular number of days at the Federal 
level, the Committee believes it is appropriate to grant States 
flexibility in establishing this time period, and expects the 
State will apply it uniformly throughout the State.

                   standards for qualified personnel

    Subsection (b)(8) relates to the State ensuring that 
services at the one-stop career center system, whether they be 
core services or vocational rehabilitation services, be 
delivered by personnel qualified to provide them. This is one 
of the most important roles to be played by the State.
    The Committee expects that every one-stop center or 
affiliated center will provide core services and will be linked 
into the other one-stop centers. This does not necessary imply 
that every one-stop center will provide specialized services 
for all elements of the workforce population. In fact, it may 
be necessary and practical to establish one or more one-stop 
career centers in each area that specialize in vocational 
rehabilitation and accommodating individuals with disabilities.
    However, each one-stop center must have the capability and 
training to recognize the vocational potential of an individual 
with a disability, and provide core services in an 
accommodating format, which include referral for eligibility 
determination for vocational rehabilitation services.
    Concern has been expressed that H.R. 1617 creates a 
``generic'' job training system in which the needs of 
individuals with disabilities can not be accommodated. The term 
``generic'' is a misnomer. H.R. 1617 represents an integrated 
system of specialized job training and employment services 
aimed at distinct populations with distinct needs. Several 
elements are in place to ensure specialization of services at 
the one-stop delivery system. One of the keys to success of the 
system is the State's oversight to ensure that qualified 
personnel are available in the one-stop career centers.

                            transition plan

    Subsection (b)(9) contains language from the current law 
requiring the vocational rehabilitation agency to enter into an 
agreement with the State agency responsible for development of 
special education plans for students covered under the 
Individuals with Disabilities Education Act. This 
``transition'' language is tracked in H.R. 1617.

              coordination with independent living council

    Subsection (b)(10) requires the State to coordinate 
activities with the Statewide Independent Living Council. It is 
vital that strong linkages between independent living and 
vocational rehabilitation are built and maintained. These 
programs represent a continuum of services and opportunities 
for individuals with severe disabilities. For most individuals 
with severe disabilities, the first step toward working in an 
integrated employment setting is gaining the skills to live 
independently.

                         interagency agreements

    Subsection (b)(11) requires the State to establish other 
interagency agreements with agencies administering public 
assistance and other programs for individuals with 
disabilities. Because there are a broad array of services 
available to individuals with disabilities, both Federally 
funded and State funded, effective cooperation and coordination 
is essential.

                    training of management and staff

    Subsection (b)(12) relates to the requirement that the 
State establish policies requiring qualified personnel to 
deliver core services and vocational rehabilitation services. 
This paragraph requires that the State undertake training of 
management and staff of the local boards, the one-stop career 
centers, and the providers of services.

                          technical assistance

    Subsection (b)(13) requires the State to provide technical 
assistance to local workforce development boards, one-stop 
career centers, and providers regarding effective provision of 
vocational rehabilitation services and development of 
individualized rehabilitation and employment plans. The 
Committee recognizes that local providers will need to have 
access to high quality information about providing effective 
rehabilitation services to a highly diverse population.
    Under the system envisioned by H.R. 1617, the State would 
continue to play a key role in serving as a conduit of 
information and technical assistance to local areas, one-stop 
centers, and providers. The State can set up toll-free hotlines 
to serve as a clearinghouse function to local areas, and the 
State can also deploy specialists on-site to assist in the 
development of rehabilitation and employment plans, and to 
share information about how services can be delivered in the 
most efficient way possible.

                     voucher system/consumer choice

    Subsection (c) establishes the availability of a voucher 
system for purchasing vocational rehabilitation services. Under 
H.R. 1617, an individual who has been determined eligible for 
services and has an assessment of vocational rehabilitation 
needs conducted will be given the opportunity to purchase goods 
and services through vouchers.
    The Committee believes that offering the use of vouchers is 
a vital component of creating a truly consumer-controlled 
system. It is very easy to claim that an individual is given 
choice in deciding what type of career he will pursue, but 
until a tangible decision is delegated to the individual, 
choice has not really happened. This element of decision-making 
is a key change from the current vocational rehabilitation 
system, and is a first step to empowering the individual to 
making a lifetime of decisions and choices about his career and 
personal life.
    Patrick W. McKenna, Director of Client Services, Maryland 
Division of Rehabilitation Services, noted in his vocational 
rehabilitation article of the 1995 copy of the Switzer 
Monograph the following:

          ``Consumer choice'' at its best reflects the basic 
        need of each individual to participate as fully as 
        possible in his or her own destiny; values the need to 
        assess the quality of services; recognizes that 
        informed consent is essential if any intervention is 
        going to be successful; and explicitly recognizes the 
        need to preserve mutual respect between a consumer and 
        a provider of services.

    The Committee believes that, when individuals have choice 
and control of resources to support that choice, it allows the 
private market to emerge that will meet this consumer demand.
    It is not credible for advocates for the current system to 
argue that ``there simply aren't enough private providers to 
meet the specialized needs of individuals with disabilities.'' 
Across the nation, where they have been allowed to participate 
in the public rehabilitation system, thousands of private and 
community-based organizations have emerged that provide high 
quality, responsive services to individuals with severe 
disabilities. The only States where a private market does not 
exist are the States that have chosen to provide all services 
through government employees and facilities and have carefully 
excluded private providers from participating.
    Carolyn L. Weaver, Resident Scholar, of the American 
Enterprise Institute quoted in the November 1, 1994 volume of 
the Journal of Disability the following:

          The rapid growth of the private rehabilitation 
        sector, which has been spurred by changes in workers' 
        compensation laws and the increased likelihood of 
        surviving once-fatal injuries and illnesses, is 
        testimony to the responsiveness of markets. Firms 
        emerge to meet customers' demands for rehabilitation 
        services and adapt what they offer to the changing 
        demands of their customers.

    This subsection also requires that the vouchers allow the 
individual to choose from among providers designated under the 
statewide provider approval system referred to in title I of 
the CAREERS Act. This system of provider approval is intended 
to create an assurance of quality among providers. While 
reviewing a current provider's performance is important in the 
approval process, the Committee believes it is important that 
new providers also be granted participation approval, on a 
provisional basis if necessary, so that the private market can 
emerge in a natural way to respond to the new consumer demand 
for choice and high quality services.
    Regarding the use of vouchers versus contracts, Weaver says 
in the November 1, 1994 volume of the Journal of Disability the 
following:

          The idea behind vouchers is to give people the 
        purchasing power they need to gain access to private-
        sector rehabilitation and the freedom to choose among 
        competing suppliers; competition among firms attempting 
        to attract new customers would then create--even among 
        the least innovative of public or private firms--
        incentives to develop innovative rehabilitation 
        programs at minimum costs. Firms unable to attract 
        customers would have to revise their programs, improve 
        their services, and/or develop more effective 
        management, or be taken over by more effective firms. 
        Real economic competition--and real protection for 
        consumers against quality deterioration and cost 
        increases--are more likely to be achieved with a 
        voucher system than with the contracting option.

    The provision also requires that the State establish 
guidelines so that the voucher for a service is set at a fair 
market value. The Committee is concerned that, in an attempt to 
make the use of vouchers unattractive to the consumer, a State 
could establish voucher amounts that are below what is a fair 
market value. This result would make it difficult for providers 
to accept the vouchers, and thus the goal of increased consumer 
choice would be thwarted.
    Because the stakes are so high for the individual with a 
disability in vocational rehabilitation, it is important that 
individuals be served well and are given adequate resources to 
achieve their rehabilitation and employment goals. Trying to 
cut corners by squeezing and shaving the amount of vouchers 
could actually foster greater long-term dependence and costs to 
the Federal government. On the other hand, vouchers must be set 
at a reasonable level that does not create undue profits for a 
provider or create incentives to steer individuals into a 
certain type of service or therapy, rather than what is needed 
or wanted by the individual.
    To provide an equitable distribution of services, it is 
necessary to create some uniform standards for assessments and 
vouchers for services. These functions are intended to empower 
individuals in making choices about their lives. However, any 
time there are standards established for the purpose of 
accountability and uniformity, there is the danger of creating 
an unresponsive, ineffective system that can not adapt to an 
individual's unique circumstances. The Committee intends that 
vocational rehabilitation embody a highly individualized 
approach that responds to individual needs in a flexible 
manner, and that a voucher system serves to enable that 
flexibility and creativity, not inhibit it.
    Finally, this subsection provides that the aggregate amount 
of vouchers available to an individual will reasonably relate 
to the degree of rehabilitation needs identified for the 
individual during his or her assessment. A fixed cap on 
services may not be appropriate for individuals who are 
disabled, since there is a wide range of disabling conditions 
and of needs for services. Depending on what training and 
services an individual has already received, his need for 
vocational rehabilitation may be drastically less than another 
individual with an almost identical disability and severity of 
disability.
    This diversity of need requires a voucher system that will 
be flexible and adjust to an individual's needs, while still 
assuring a degree of uniformity throughout the State. To 
accomplish this goal, H.R. 1617 requires each State to 
establish a methodology for calculating an aggregate amount of 
vouchers available to an individual. This aggregate amount must 
bear relation to his identified degree of rehabilitation need.
    The Committee intends that, when an assessment of 
vocational rehabilitation need is conducted and an aggregate 
amount of service vouchers is identified, that all or part of 
this amount will be reserved from current year funds. If some 
services are anticipated in the following year, at the time the 
next year funds become available, the individual currently in 
the program would receive a priority for reserving funds.

                       Optional State Activities

    Subsection (d) also outlines activities which the State may 
engage in, at its discretion.
    First, the State may disseminate information to local areas 
relating to emerging research regarding vocational 
rehabilitation services. Second, the State may conduct 
demonstration projects within the State to test alternative 
approaches to delivering vocational rehabilitation services. If 
a State conducts such demonstration projects, it shall also 
provide the findings from such demonstration projects to the 
Commissioner, and as appropriate within the State.

            Core Standards, Performance Goals, and Measures

    Subsection (103)(e) designates standards for Core 
Standards, Performance Goals, and Measures. Under this 
requirement, each State will develop and implement a statewide 
system of core standards and measures of performance for 
vocational rehabilitation programs utilizing the national 
performance indicators developed by the Secretary of Education. 
The standards will include measures of placement, retention and 
earnings in integrated employment, both at 6 months and one 
year, and the percentage of individuals served who had severe 
disabilities, including recipients of Social Security 
Disability Insurance (SSDI) and Supplemental Security Income 
(SSI).
    Under the current vocational rehabilitation system, a 
successful placement is considered to be 60 days in an 
employment outcome. Measuring employment, retention and 
earnings at 6 months and one year will give a much more 
accurate picture of the long-term effect of the vocational 
rehabilitation program.
    Including the factors of the percentage of participants 
served who had severe disabilities, particularly those under 
the SSI and SSDI programs, is an important balancing factor 
against focusing on employment outcomes alone. Without placing 
equal weight on the severity of disability, vocational 
rehabilitation could again shift to a system that serves 
individuals with less severe disabilities who can obtain an 
employment outcome more quickly and at lower cost.
    This subsection also encourages the State to build its 
indicators upon indicators established by the Secretary of 
Education for the current title I of the Rehabilitation Act 
program and the Projects with Industry program.

                 Local Boards, One-Stop Career Centers

    Section 104 establishing Responsibilities for Local Boards 
and One-stop Career Centers relating to Vocational 
Rehabilitation.
    Subsections (a)(1) and (a)(2) clarify that the local one-
stop centers will act under the guidance of local workforce 
development boards, and that the one-stop career centers will 
make determinations of eligibility for vocational 
rehabilitation services, provide vocational rehabilitation 
services, and also conduct outreach and intake activities for 
individuals who are not able to directly access the one-stop 
career centers because of the nature of their disability.
    The Committee wants to make clear that one-stop career 
centers are not only physical facilities to which individuals 
with disabilities may come. One-stop career centers are part of 
an integrated system of services. The system must conduct 
outreach and intake activities, particularly to individuals 
with severe disabilities that might not be able to physically 
access a center.
    In the case of adult onset of disability, such as 
blindness, an individual may not even believe he or she can 
become employable. Also, the individuals may not know that the 
One-Stop System can accommodate individuals with disabilities. 
It is essential that the One-Stop system develop close working 
relationships with local and statewide consumer advocacy groups 
so that individuals can be drawn into the One-Stop center 
system.
    It may also be necessary to provide certain services 
directly in the individual's home, not necessarily in a center-
based setting.
    Subsection (a)(3) clarifies that services may be provided 
in a variety of settings and environments.

            Definition of Vocational Rehabilitation Services

    Subsection (b) provides a broad definition of vocational 
rehabilitation services. These are services necessary to render 
an individual employable and achieve an employment outcome, and 
which are provided in response to the individual's disability, 
but do not duplicate core services under title I of the CAREERS 
Act. Many services currently available under the Rehabilitation 
Act could seem to duplicate core services under the CAREERS 
Act. The Committee believes that some similarity between core 
services and vocational rehabilitation services is reasonable, 
but that individuals with disabilities who could be served 
through the core services not be referred for vocational 
rehabilitation services unnecessarily. Without proper 
safeguards to prevent duplication of services, vocational 
rehabilitation could be seen as an attractive source to save 
funds in the delivery of core services. Thus, services offered 
under vocational rehabilitation must be directly related to the 
individual's disability and may not duplicate core services.
    Subsection (c) also includes a detailed listing of services 
that must be offered as vocational rehabilitation services. 
This list is very similar to current law, but not as detailed 
in all areas.

               Supported Employment and Extended Services

    Subsection (d) requires the one-stop career center to 
establish relationships with community-based providers, 
including arrangements regarding supported employment services 
and extended services, periodic reviews of individuals placed 
in extended employment, and services to provide movement from 
extended employment to integrated employment.
    The Committee intends that the growing trend toward 
emphasizing long-term supportive services for individuals with 
disabilities be continued, and that special arrangements with 
community providers for such services be made. In the context 
of long-term supportive services, a contract between the one-
stop center and the provider may be more practical than a 
service voucher, except that the choice of the individual in 
the selection of the provider must still prevail.

                     Core Services Supplementation

    Subsection (f) establishes criteria in which some resources 
from vocational rehabilitation can supplement the provision of 
core services. This amount set aside for core services will be 
based on the number of individuals eligible for vocational 
rehabilitation services that are in the local workforce 
development area and the cost of training employees of the one-
stop career center to provide high quality services.
    In deciding how much shall be dedicated for the purpose, 
the Committee decided against designating a maximum percentage, 
because a maximum percentage could easily become a minimum, 
whether or not it is needed. The Committee intends for local 
workforce development boards to establish, based on current 
usage of the vocational rehabilitation system, the number of 
individuals eligible for specialized vocational rehabilitation 
system it expects to utilize the one-stop system. This factor, 
as well as the expected costs of training personnel to provide 
one-stop core services in a disability responsive manner, will 
help guide the board in deciding how much funding to dedicate.
    The Committee is concerned that a local workforce 
development board might try to divert an unreasonable amount of 
funds to support core services for individuals who are not 
disabled. The Committee does not wish to create a tracking 
requirement to ensure that the vocational rehabilitation funds 
always serve individuals with disabilities, but the intent of 
the provision is to supplement core services for such 
individuals. If, over the course of time, Congress learns that 
excessive vocational rehabilitation resources have been 
diverted to support core services, the Committee may consider 
giving more direct direction on how these funds are allocated.

                          Performance Payments

    Subsection (g) establishes guidelines for performance 
payments. The performance payment concept is intended to 
provide direct accountability for the successful provision of 
services. By withholding part of a payment until the service is 
completed according to prior agreement, the service provider 
has a direct incentive to fulfill the agreement. In some 
demonstration programs, performance payment systems have 
withheld the entire payment until completion of the service. 
While this approach may be too extreme in many cases, local 
areas should use the performance payment authority to the 
maximum extent possible to hold providers accountable to high 
performance standards.
    H.R. 1617 establishes that for general services, such as 
services that relate to short-term or intermediate vocational 
rehabilitation objectives, the service must be carried out in 
reasonable accordance with the outcome previously arranged with 
the provider. The Committee encourages local workforce 
development boards to include a verification of customer 
satisfaction as part of that arrangement. This would again 
strengthen the role of the consumer in determining the outcome 
of his or her vocational rehabilitation program.
    In the case of education, training and placement services, 
performance payments are tied to more specific outcome 
objectives. These are successful completion of an employment 
and training program, and job placement and retention for at 
least 90 days. The Committee intends that services that have a 
direct employment outcome as the reasonable expectation of the 
service to be held to tangible outcomes of program completion 
and direct employment. Even if a local workforce development 
board withholds only five percent of the program costs until 
these objectives are met, it sends a strong signal of 
accountability to the service provider.

                       Eligibility Determination

    Section 105 (a) lays out the criteria by which an 
individual with a disability is determined eligible for 
vocational rehabilitation services. These criteria are almost 
identical to the criteria in the current law. First, an 
individual is eligible if she meets the definition of 
disability under section 7(8)(A) of the Rehabilitation Act and 
also requires vocational rehabilitation services to become 
gainfully employed. Eligibility is also granted if the 
individual has a disability or is blind as determined under the 
Social Security Disability Insurance or Supplemental Security 
Income programs of the Social Security Act.
    To clarify the meaning of 7(8) that an individual must be 
``employable,'' paragraph (3) provides that an individual will 
be presumed to be able to benefit in terms of an employment 
outcome unless the one-stop career center system can 
demonstrate by clear and convincing evidence otherwise. This 
language also tracks the provision of current law that was 
inserted in the 1992 amendments. Prior to these amendments, 
individuals with severe disabilities were often determined to 
be unable to benefit from a program and were denied 
eligibility. This important change moved the Rehabilitation Act 
more in line with the realities of emerging technology and 
services, such as supported employment, that allow individuals 
with disabilities who in prior years would have been 
unemployable to now retain long-term employment.
    Subsection (b) establishes the process by which an 
eligibility determination is made. First, after an individual 
makes a request for determination of eligibility, a qualified 
rehabilitation adviser will be made available, and an initial 
interview will be conducted followed by an assessment. H.R. 
1617 reduces from 60 days to 30 days the length of time which 
is allowed to render an eligibility determination. Utilizing a 
locally-based system, eligibility determinations should be 
conducted much more expeditiously than under the current 
system. It is the Committee's intent that all procedural 
components of the system happen as quickly as possible on 
behalf of the consumer, from eligibility, to an assessment of 
vocational rehabilitation needs, development of a 
rehabilitation and employment plan, to purchase of goods and 
services through vouchers.
    As under current law, if an individual is determined not to 
be eligible, they will be provided a written statement of the 
reason why they are not eligible, the availability of an 
impartial review, and services under the Client Assistance 
Program.

     Assessment, Development of Rehabilitation and Employment Plan

    If the individual is eligible for services, based on the 
State's order of selection criteria, the individual will have 
his need for vocational rehabilitation assessed. Next he will, 
with assistance of qualified staff from the one-stop center, 
develop a personalized rehabilitation and employment plan. This 
plan should be developed in consultation and with mutual 
agreement between the individual and the staff. The plan, as 
under current law, must be consistent with the unique 
strengths, resources, abilities and capabilities of the 
individual. This language was intended to strengthen the 
individual's control over the development of the vocational 
rehabilitation plan. The Committee wants to ensure that the 
vocational rehabilitation system makes a final and complete 
move away from a paternalistic approach in which, well-meaning 
counselors once told individuals with disabilities what they 
were and were not capable of doing on a vocational basis, and 
directed the individual into a particular career path that did 
not reflect the aspirations of the individual.
    As Lawrence C. Gloeckler, Director of New York State 
Rehabilitation Services, quoted the following in the 1995 copy 
of the Switzer Monograph:

          Too often, counselors only offer limited options from 
        among those services or providers that they have found 
        to be convenient and comfortable in the past. They may 
        not think creatively beyond the traditional offerings 
        that they have grown accustomed to using.

    The role of the counselor has been changing over the last 
ten to fifteen years in parallel with the development of the 
independent living philosophy. Specialists with experience and 
knowledge of rehabilitation are a valuable resource to 
individuals with disabilities. But the knowledge of services 
must be matched with an understanding of the needs and rights 
of individuals with disabilities to determine their own goals 
and career objectives.
    The Committee envisions a continued interaction between the 
individual with a disability and a rehabilitation specialist. 
High-calibre counselors in the current system will have no 
problem transitioning over to a new, consumer driven system. 
However, it is the Committee's intent that current State 
employees not simply be grandfathered over to a new system.
    Finally, the individualized rehabilitation and employment 
plan does not need to be developed if the individual signs a 
waiver stating the plan is not necessary. This language tracks 
language in the independent living section of the 
Rehabilitation Act.
    The Committee believes that the provision of vocational 
rehabilitation services should be streamlined to the greatest 
degree possible, while maintaining important components to 
assure choice and successful delivery of services. For certain 
individuals who have been assessed for vocational 
rehabilitation needs, they may have a clear vocational 
rehabilitation goal in mind and only need voucher approval to 
secure the services. These individuals should not be burdened 
or delayed with development of a detailed written plan.
    Most clients will benefit from the process of working with 
a qualified specialist to develop a personal rehabilitation and 
employment plan. Because the needs of vocational rehabilitation 
may be complex and require multiple intermediate steps, a 
written plan can be very beneficial.
    Unfortunately, the well intentioned purpose of the current 
law's Individualized Written Rehabilitation Plan (IWRP) has 
evolved into a very detailed, process-oriented document that 
essentially serves as a legal contract between the 
Rehabilitation agency and the individual. The IWRP often serves 
as the primary vehicle through which legal remedies are 
pursued.
    However, with the changes in H.R. 1617 that bring more 
control and accountability directly into the hands of the 
consumer, the written plan can be used as a broad planning 
document, rather than a detailed legal contract. As such, plan 
development will be faster and will focus more on the 
individual's goals than making sure the document is legally 
enforceable.
    Subsection (c) includes a rule of construction clarifying 
that nothing in title I of the Rehabilitation Act creates an 
individual entitlement.

                 State Rehabilitation Advisory Council

    Section 106 creates the State Rehabilitation Advisory 
Council. This section simplifies current law significantly, 
removing some of the prescriptiveness of which individuals must 
serve on the Council. However, the functions of the councils 
essentially remain the same.
    The Committee believes that the Council has an important 
role to play in the development of a new vocational 
rehabilitation system that is locally controlled, consumer 
driven and choice oriented. The Council will participate in the 
Governor's collaborative process for developing a Statewide 
Workforce Preparation System. As a representative of consumers 
of vocational rehabilitation, the Council will continue to 
monitor how individuals with disabilities are being served by 
the vocational rehabilitation systems of the local workforce 
areas. The Committee believes that the Council must not become 
a ``de facto'' arm of the State administrative agent. There 
needs to be objectivity and independence between the two 
entities.
    This section also allows the Governor to appoint a parallel 
advisory council for the blind, at the Governor's discretion.

                               Allotment

    Section 107 defines the allotment formula for title I. This 
allotment formula is identical to the formula of current law, 
with only minor conforming changes.
                Other Changes to the Rehabilitation Act

    Section 521 of CAREERS makes changes to other sections of 
the Rehabilitation Act.
    First, this section repeals section 303, a general 
vocational rehabilitation services demonstration authority, 
repeals section 304, Loan Guarantees for Community 
Rehabilitation Programs, and in section 311, by striking 
subsection (f), a provision that relates to the relationship 
between titles III and titles VIII. This section also repeals 
section 312, the Migratory Worker program, and Section 316, the 
Special Recreation program authority.
    This section also repeals Title VIII of the Rehabilitation 
Act but transfers four programs from the current title VIII to 
title III. These include the Transportation Services Grant 
authority (section 802(a)), the Client Choice demonstration 
authority (802(g)), the Parent Information and Training 
authority (803(c)), and the Braille training projects authority 
(803(b)).
    Section 311(c), which authorized supported employment 
demonstration projects, will be repealed effective October 1, 
1998. The repeal of this program is delayed to be concurrent 
with the full implementation of the new title I provisions.
    Section 522 makes several changes to title VI of the 
Rehabilitation Act. First, the section repeals Part A of title 
VI--Community Service Employment Pilot Programs for Individuals 
with Disabilities, Part C--Supported Employment Services for 
Individuals with Severe Disabilities, and Part D--Business 
Opportunities for Individuals with Disabilities, effective upon 
enactment.
    Effective October 1, 1998, the Projects with Industry 
Program would be repealed. The repeal of this program is 
delayed to be concurrent with the full implementation of the 
new title I provisions.

                      Section-by-Section Analysis

    Section 1 contains the short title of the bill.
    Section 2 contains the Table of Contents of the bill.
    Section 3--Findings and Purpose:
    Subsection 3(a) contains the findings of the Act.
    Subsection 3(b) states that the purpose of the Act is to 
transform the vast array of federal workforce development and 
literacy programs from a collection of fragmented and 
duplicative categorical programs into a streamlined system 
designed to meet the education, employment, and training needs 
of the workforce and employers.
    Section 4 sets forth the authorization of appropriations 
for fiscal years 1996, 1998, 1999, 2000, 2001, and 2002 for the 
four block grants created in the Act.
    Section 5 includes definitions for the following terms: 
adult, adult education, area vocational education school, at-
risk youth, career exploration and guidance counseling, case 
management, chief elected official, community-based 
organization, dislocated workers, earnings, economic 
development agencies, economically disadvantaged, employed, 
English literacy program, excess number, governor, individual 
of limited English proficiency, individuals with disabilities, 
institution of higher education, intermediate educational 
agency, job search assistance, labor market area, literacy, 
local educational agency, native Americans, on-the-job 
training, out-of-school youth, postsecondary educational 
institution, preemployment skills training, job readiness 
skills training, public assistance, rapid response, registered 
apprenticeship, school dropout, skill certificate, state, state 
educational agency, state library administrative agency, 
supportive services, unemployed, unit of general local 
government, veteran, work experience, workplace mentor, and 
youth.

             TITLE I--WORKFORCE DEVELOPMENT INFRASTRUCTURE

    Section 101. This section declares that the purpose of 
title I is to provide for the establishment of an 
infrastructure within States on which to build a comprehensive 
system of workforce development and literacy.

              Subtitle A--State and Local Responsibilities

    Section 102(a) of section 102 requires that in order for a 
State to receive a grant under one or more of the programs 
established under this Act, that they must: establish a 
collaborative process; develop a State workforce development 
and literacy plan; and comply with the requirements of this 
Act.
    Section 102(b) clarifies that for the purposes of this Act, 
Workforce Development and Literacy Programs include: the Youth 
Workforce Preparation and Development Consolidation Grant 
established under title II; the Adult Employment and Training 
Consolidation Grant established under title III; the Adult 
Education, Family Literacy, and Library Technology 
Consolidation Grant, established under title IV; and the 
program amended by subtitle A of title V (relating to title I 
of the Rehabilitation Act of 1973) and defines ``Workforce 
Development and Literacy programs''.
    Section 103(a) requires that the Governor of a State that 
desires to receive a grant under one or more of the workforce 
development and literacy programs, must certify to the 
Secretaries of Education and Labor that a collaborative process 
has been used in complying with the applicable provisions of 
this Act.
    Section 103(b) clarifies that the collaborative process 
must include, at a minimum, the Governor and representatives 
of: business and industry, local chief elected officials 
(representing both cities and counties), local educational 
agencies (including vocational educators), postsecondary 
institutions (including community and technical colleges), the 
State rehabilitation advisory council, and organizations 
representing individuals served by programs established under 
this Act (including community-based organizations), all 
appointed by the Governor; and the lead State agency official 
or officials from the State educational agency (including 
officials representing vocational education, adult education 
and literacy, and libraries); and the State agencies 
responsible for economic development, employment security (and 
job training where different from the employment security 
agency), postsecondary education, vocational rehabilitation 
(and where applicable, the State agency providing vocational 
rehabilitation services for the blind), welfare, and the 
representative of the Veterans' Service assigned to the State.
    Section 103(c) clarifies that a State may use an existing 
council or entity for the purpose of collaboration, that 
substantially meets the purposes of subsection (b). This 
subsection further clarifies that if prior to the date of 
enactment, a State has developed a collaborative process for 
the purpose of establishing a one-stop system or a school-to-
work system, that such collaborative process may be used to 
meet the collaboration requirements under this Act if it is 
substantially similar to the process described under this 
section.
    Section 104(a) requires that the Governor of a State that 
desires to receive a grant, submit a single State Workforce 
Development and Literacy Plan for all 4 consolidated programs 
established under this Act, to the Secretaries of Education and 
Labor.
    Section 104(b) requires that the State plan include: a 
description of the collaborative process used in developing the 
plan; a statement of the goals of the State workforce 
development and literacy system, including an assessment of the 
workforce and literacy needs of the State, and the 
identification of progress indicators that the State will use 
to measure its progress in meeting such goals; a description of 
how the State will comply with the requirements of the Act; a 
description of how a State will participate in the National 
Labor Market Information system established under the Act; 
additional plan elements contained in titles II through V; a 
description of the measures that will be taken by the State to 
ensure coordination and avoid duplication among programs 
receiving assistance under this Act, including a description of 
common data collection, reporting processes, and the 
establishment of a common management information system across 
workforce development and literacy programs; a description of 
the process used by the State to provide an opportunity for 
public comment and input into the development of the plan; 
assurances that the State will provide for fiscal control 
accounting procedures that may be necessary to ensure the 
proper disbursement of, and accounting for, funds paid to the 
State under this Act; and a description of the sanctions which 
the State may impose (including restrictions from future 
participation or consideration for funding) in instances where 
recipients of funds under this Act fail to achieve agreed upon 
performance measures, fail to adhere to State mandated fiscal 
control and funds accounting procedures, or take or fail to 
take other actions required under the State plan, contracts, or 
other agreements.
    Section 104(c) clarifies that if after a reasonable effort, 
agreement cannot be reached through the collaborative process 
in the development of the State plan or in making decisions for 
the workforce development and literacy system, the Governor 
shall have final authority to make decisions and submit the 
plan. However, participants in the collaborative process, who 
are in disagreement with the plan, may submit their views with 
regard to the area in which such participant was selected for 
representation. This subsection further clarifies that nothing 
in this Act shall be construed to negate or supersede the legal 
authority, under State law or other applicable law, of any 
State agency, State entity, or State public official over 
programs that are under the jurisdiction of the agency, entity, 
or official. Nothing in this Act shall be construed to 
interfere with the authority of such agency, entity, or 
official to enter into a contract under any provision of law.
    Section 104(d) provides that such State plans remain in 
effect until the State submits to the Secretary modifications 
as the State determines necessary. Subsection (e) requires the 
Secretaries of Education and Labor to establish a common 
procedure for consideration of State Workforce Development and 
Literacy Plans.
    Section 104(e) establishes the process for allocation of 
responsibilities of Secretaries of Labor and Education.
    Section 105 requires that a Governor that desires to 
receive a grant under one or more of the workforce development 
and literacy programs shall, through the collaborative process, 
and after consultation with local chief elected officials, and 
consideration of comments received through the public 
participation process described in the State plan, shall 
publish a proposed designation of local workforce development 
areas within the State. This section specifies that such areas 
be designated taking into consideration existing labor market 
areas, units of general local government, geographic areas 
served by local educational agencies and intermediate 
educational agencies, geographic areas served by postsecondary 
institutions and area vocational education schools, service 
delivery areas established under the Job Training Partnership 
Act, and the distance that individuals will need to travel to 
receive services.
    Section 106 (a) and (b) require Governors, through the 
collaborative process, to ensure the establishment of workforce 
development boards within each workforce development area, and 
to establish criteria for use by local chief elected officials 
in the selection of members of such boards.
    Section 106(c) requires, at a minimum, that a local 
workforce development board consist of: a majority of members 
who are representatives of business and industry, including 
individuals who are owners of businesses, chief executives or 
chief operating officers of private business, and other 
business executives with optimum policymaking authority in 
local businesses, selected from among a list of nominees 
submitted by local business organizations and trade 
associations; an individual or individuals with disabilities, 
or their representatives who have special knowledge or 
expertise in the area of vocational rehabilitation; 
representatives of education, including local educational 
agencies and postsecondary institutions, selected from among 
individuals nominated by regional or local educational 
agencies, vocational education institutions, institutions of 
postsecondary institutions (including community colleges), or 
general organizations of such institutions within the workforce 
development area; and representatives of community-based 
organizations, employees, and veterans as nominated or 
recommended to the board through a process establish by the 
Governor through the collaborative process.
    Section 106(d) clarifies that in the selection of board 
members in a workforce development area that is comprised of 
only one unit of general local government, the chief elected 
official of such unit shall select the members of the local 
workforce development board for such area, in accordance with 
the State criteria. In the case of a workforce development area 
that is comprised of more than one unit of general local 
government, the chief elected official of each such unit shall 
select the members of the local workforce development board for 
such area in accordance with an agreement entered into by such 
officials, in accordance with the State criteria. In the 
absence of such agreement (in the case of multiple units of 
local government), appointments shall be made by the Governor, 
through the collaborative process. This subsection further 
clarifies that the Governor shall biennially certify one local 
workforce development board for each workforce development 
area.
    Section 106(e) outlines the duties of Local Workforce 
Development Boards, which include: the development of a local 
workforce development plan; the identification of occupations 
in demand and the training needs of the local workforce 
development area; and budget and program oversight 
responsibilities over programs established under chapter 2 of 
title II, title III, and title I of the Rehabilitation Act of 
1973, and one-stop career center systems established or 
designated under section 107, (with local plans and budgets 
subject to the approval of the appropriate chief elected 
official or officials in the workforce development area). This 
subsection further clarifies that the local workforce 
development board may receive and disburse funds made available 
for carrying out programs authorized under chapter 2 of title 
II, title III, and title I of the Rehabilitation Act of 1973 of 
this Act, or may designate a fiscal agent (which may include 
the State through a mutual agreement between the local board 
and the State), for the purpose of disbursement of funds to 
one-stop centers and other service providers, as designated by 
the local board. The Board may employ its own staff, 
independent of local programs and service providers. However, 
it may not operate programs established under this Act. This 
section also contains conflict of interest language which says 
that no member of a workforce development board may cast a vote 
or participate in the consideration of the provision of 
services by that member (or any organization which that member 
directly represents) or on any matter that would provide direct 
financial benefit to such member. In addition, a Governor may 
enforce more rigorous conflict of interest standards, as 
determined appropriate. This subsection further clarifies that 
the board shall elect its own chairperson from among members of 
the board, and may adopt bylaws and other operating procedures 
as consistent with the purposes of the Act, and with the State 
workforce development and literacy plan.
    Section 107 (a) and (b) require the Governor of a State 
which desires to receive a grant under this Act, to establish 
the criteria for, and ensure the establishment, by local 
workforce development boards, of a one-stop career center 
system within each local workforce development area.
    Section 107(c) requires that, at a minimum, one-stop career 
center systems must include: common intake; preliminary 
assessment; integrated job search assistance; and to the extent 
practicable, as determined by the Governor, unified and linked 
computer systems (including labor market information), and at 
least one physical, co-located site which provides 
comprehensive and fully integrated workforce development 
services to any individual seeking such services. Local 
workforce development areas are encouraged to establish a 
network of comprehensive and fully-integrated co-located one-
stop career centers, combined with multiple affiliated sites 
that are linked through electronic and technological access 
points.
    Section 107(d) requires that information pertaining to the 
labor market which is compiled pursuant to the Wagner-Peyser 
Act, shall be available, to the extent practicable, through 
integrated electronic networks, at all one-stop career centers 
and affiliated sites.
    Section 107(e) establishes that any entity or consortium of 
entities located in the workforce development area may be 
designated by the local workforce development board to operate 
a one-stop career center or to participate in a one-stop career 
center system. Such entities may include: Institutions of 
higher education; local educational agencies; area vocational 
education schools; local employment service offices; private 
nonprofit organizations, (including community-based 
organizations); private for-profit entities; agencies of local 
governments; and other interested organizations and entities of 
demonstrated effectiveness (including local chambers of 
commerce and other business organizations), consistent with 
State criteria established pursuant to subsection (b).
    Section 107(f) lists the duties of one-stop career centers. 
Such duties include the provision of core services which are to 
be provided to individuals in the workforce development area, 
on a universal basis, which include: Outreach and intake for 
services provided under programs established under chapter 2 of 
title II, title III, title IV, and title I of the 
Rehabilitation Act of 1973; a preliminary assessment of the 
skill levels and the need for services of individuals for such 
programs; information relating to local and State, and if 
appropriate, to regional or national, occupations in demand and 
skill requirements for such occupations; information relating 
to youth services, including information on at-risk youth 
workforce development programs authorized under title II, on 
school-to-work opportunities, and on youth apprenticeship 
opportunities; career counseling and planning; Job search 
assistance; information related to vocational rehabilitation 
services; information relating to federally funded education 
and job training programs, including student aid programs; 
information on, and assistance in accessing additional services 
through programs established or amended by this Act; 
information on the extent to which the services provided under 
titles II through IV, and title I of the Vocational 
Rehabilitation Act of 1973, meet or exceed the performance 
standards described in the State plan, and the performance-
based information provided by the State to local workforce 
development boards on certified providers of education and 
training; information on industry-recognized skill standards 
and assessments; job listings for local labor market 
opportunities; acceptance of applications for unemployment 
compensation; and other appropriate activities to assist 
individuals into employment. A one-stop center shall also serve 
as the point of distribution of vouchers or skill grants for 
education, training, and vocational rehabilitation services to 
eligible individuals. In addition to core services, one-stop 
career centers may provide customized workforce development 
service to employers on a fee-for-service basis, and may 
arrange to have core services provided to individuals with 
severe disabilities provided by certified providers through 
contract or through the use of vouchers or skill grants.
    Section 107(g) allows the one-stop career centers to 
provide customized workforce development services to employers.
    Section 107(h) allows the Governor to develop alternative 
procedures to the one-stop career center system.
    Section 108 establishes a certification process for 
determining which providers of education and training services 
shall be eligible to receive funds under title III, or title I 
of the Vocational Rehabilitation Act of 1973, through the 
receipt of vouchers or skill grants, or otherwise. 
Specifically, subsection (a) clarifies that providers are 
eligible if: they are currently eligible to participate in 
title IV of the Higher Education Act of 1965; or they are 
determined to be eligible under an alternative procedure 
developed by the Governor, described in subsection (b); and 
they provide performance-based information on non-degree 
programs, as required by the Governor as described in 
subsection (c).
    Section 108(b) establishes an alternative eligibility 
procedure, requiring that the Governor establish such a 
procedure to determine eligibility for providers of education, 
training, and vocational rehabilitation services in any State 
desiring to receive funds under title III of this Act and title 
I of the Vocational Rehabilitation Act of 1973, but that are 
not eligible to participate in title IV of the Higher Education 
Act of 1965. Such procedure shall establish minimum acceptable 
levels of performance for such providers, and shall utilize 
local workforce development boards, for the identification and 
certification of providers of education, training, and 
vocational rehabilitation services. This section further 
stipulates that if the participation of an institution of 
higher education in any of the programs is terminated, such 
institution shall not be eligible to receive funds under this 
Act for a period of not less than two years.
    Section 108(c) identifies performance-based information 
that is to be submitted by providers of education and training 
services desiring to be eligible under this section. Such 
information may include information relating to the percentage 
of students completing the programs conducted by the provider; 
the rates of licensure of graduates of the programs conducted 
by the provider; the percentage of graduates of the programs 
meeting skill standards and certification requirements endorsed 
by the National Skill Standards Board established under the 
Goals 2000: Educate America Act; the rates of placement and 
retention in employment, and earnings of the graduates of the 
programs conducted by the provider; the percentage of students 
who obtained employment in an occupation related to the program 
conducted by the provider; the warranties or guarantees 
provided by such provider relating to the skill levels or 
employment to be attained by students; and other information 
for providers of services under title I of the Rehabilitation 
Act of 1973 that reflects the goal of serving individuals with 
the most severe disabilities.
    Section 108(d) requires the Governor to designate a State 
agency to collect, verify, and disseminate the performance-
based information submitted pursuant to subsection (c). This 
subsection further establishes: a procedure by which providers 
of education and training submit the performance based 
information to such State agency; requires that the list of 
eligible providers be provided by the State agency to local 
workforce development boards; that an institution or entity 
intentionally providing false information will be banned from 
program participation for 2 years; and allows the State agency 
to provide technical assistance.
    Section 108(e) clarifies that providers of on-the-job 
training are not subject to the requirements of this section, 
but that local workforce development boards collect information 
regarding the performance of such providers.
    Section 109 requires that States, to the extent practicable 
as determined by the Governor, use funds provided under this 
Act to establish a unified management information system for 
all programs established or amended under titles II through V 
of this Act, that is in accordance with guidelines established 
jointly by the Secretaries of Education and Labor, in 
consultation with the Governors and establishes requirements 
for each united management information system.
    Section 110(a) states that each State receiving funds under 
this Act, shall develop, or have developed, a statewide 
performance accountability system.
    Section 110(b) requires that each State identify indicators 
of performance for each of the programs established under 
titles II through IV of this Act, and title I of the Vocational 
Rehabilitation Act of 1973, consistent with State goals as 
described in the State plan, that at a minimum, include core 
indicators described in titles II through V of this Act. Such 
indicators should also take into account post-program surveys 
measuring customer satisfaction of both employers and program 
participants. This subsection further requires that the 
Secretaries of Education and Labor, in collaboration with the 
States and with representative of business and industry, 
employees, educational agencies, service providers, 
participants, and others, promulgate technical definitions of 
each of the core indicators described in this Act, and shall be 
used in measuring performance.
    Section 110(c), paragraph requires each State to identify 
the level of performance, consistent with State goals, that is 
expected for local workforce development areas and other 
applicable local administrative entities, taking in account 
world class levels identified pursuant to paragraph (2) of this 
subsection, and develop baseline levels of performance upon 
which to measure continuous improvement. This subsection 
clarifies that the Governor may adjust the expected level of 
performance for each local area taking into account economic, 
demographic, and geographic factors, and the characteristics of 
the population to be served. Paragraph (2) requires the 
Secretaries of Education and Labor, in collaboration with the 
States and with representative of business and industry, 
employees, educational agencies, service providers, 
participants, and others, to identify world class levels of 
performance with respect to appropriate core indicators 
selected from among the core indicators described under this 
Act. Where appropriate, such standards shall reflect industry-
recognized skill standards and national education goals.
    Section 110(d) requires States to report to the Secretaries 
of Education and Labor, the levels of performance achieved by 
local workforce development areas and other applicable local 
administrative entities with respect to the indicators 
established by the State for each program year. The Secretaries 
are required to make such information available to the general 
public and to disseminate State-by-State comparisons, and where 
appropriate, comparisons to other industrialized nations. 
States are encouraged to utilize unemployment insurance wage 
data records in the collection and reporting of such data.
    Section 110(e) requires that the Governor, through the 
collaborative process, establish criteria for determining 
whether or not local workforce development areas or other 
applicable local administrative entities have met expected 
levels of performance. This subsection further specifies that 
if a State fails to meet expected levels of performance for any 
program year, the Secretaries may provide technical assistance, 
including assistance in development of a performance 
improvement plan. If such failure continues for a second 
consecutive year, the Secretary may reduce by not more than 5 
percent, the amount of the grant that would be payable to the 
State under the affected program for the following year, with 
such penalty based on the degree of failure. Under this 
subsection, if a local workforce development area or applicable 
local entity fails to meet expected levels of performance, the 
Governor, through the collaborative process, may provide 
technical assistance in after the first year of failure. After 
a second consecutive year of such failure, the Governor may 
take corrective action, such as the withholding of funds, or 
the redesignation of a local administrative entity, or such 
other action as the Governor, through the collaborative 
process, determined appropriate, consistent with State law.

                Subtitle B--Amends the Wagner-Peyser Act

    Section 131(a) amends the definitions to reflect the repeal 
of the Job Training Partnership Act and to conform to 
definitions and terms in the CAREERS Act.
    Section 131(b) amends the duties of the Federal government 
by requiring the Secretary of Labor to assist in the 
coordination and development of a nationwide system of labor 
exchange services for the general public provided through the 
one-stop career center system; to assist in the development of 
performance standards, benchmarks, and continuous improvement 
models for such nationwide system which ensures private sector 
satisfaction and meets the demands of job seekers; and to 
ensure the continued services for individuals receiving 
unemployment compensation.
    Section 131(c) requires the Governor of a State to 
designate a State agency to carry out this Act through the 
collaborative process described in title I of the CAREERS Act.
    Section 131(d) requires that 25% of the funds appropriated 
for this Act go towards establishing a system of labor market 
information.
    Section 131(e) conforms with repeal of JTPA.
    Section 131(f) amends the State plan requirements to 
require the State to submit a planning information consistent 
with the unified State workforce development and literacy plan 
authorized under title I of the CAREERS Act.
    Section 131(g) eliminates the Federal Advisory Council.
    Section 131(h) includes conforming amendments.
    Section 132 amends the Wagner-Peyser Act to establish a new 
``title II'' creating a national labor market information 
system:

          Section 21 states that the purpose of this title is 
        to ensure a comprehensive and coordinated system of 
        labor market information which will provide locally 
        based, accurate, up-to-date, easily accessible, and 
        user friendly labor market information through a 
        cooperative Federal, State, and local governance 
        structure which includes partnerships with the private 
        sector at all levels.
          Section 22 Requires the Secretary of Labor, in 
        accordance with the provisions of title, to oversee the 
        development, maintenance, and continuous improvement of 
        a nationwide system of labor market information using 
        data from all available and appropriate sources. 
        Subsection (1) specifies the types of statistical data 
        to be collected and disseminated. Subsection (2) 
        specifies the types of State and local employment and 
        consumer information to be collected and disseminated. 
        Subsection (3) describes the types of technical 
        standards to be established to ensure consistency of 
        the data and information. Subsection (4) outlines the 
        types and extent to which such data should be analyzed. 
        Subsection (5) outlines the dissemination mechanisms 
        for data and analysis. Subsection (6) establishes a 
        requirement to provide technical assistance to States 
        for the development of this system. Subsection (7) 
        established programs of research and demonstration, 
        which may be carried out by States and other public or 
        private entities, on ways to improve the products and 
        processes authorized in this title; and subsection (8) 
        requires the development of objective performance 
        measures, which will allow for the continuous 
        monitoring of the progress of the labor market 
        information system at national, State, and local 
        levels.
          Section 23 lists the Federal responsibilities under 
        this Title. Subsection (a) clarifies that the Nation's 
        labor market information system shall be planned, 
        administered, overseen, and evaluated by a cooperative 
        governance structure involving the Federal Government 
        and the States. Subsection (b) outlines the duties of 
        the Secretary of Labor which includes the 
        reconciliation of data collection among the agencies 
        within the Department of Labor; the assigning of 
        responsibilities to assist the Bureau of Labor 
        Statistics; working with other Federal departments and 
        agencies to support this system. Subsection (c) 
        requires the Secretary of Labor, in collaboration with 
        the Bureau of Labor Statistics and with the assistance 
        of other agencies in the Department, to carry out 
        additional duties with respect to function of the 
        collection and dissemination of labor market 
        information.
          Section 24(a) requires that the Secretary of Labor, 
        working through the Bureau of Labor Statistics and in 
        consultation with other appropriate agencies, to 
        prepare an annual plan to be the operational mechanism 
        for achieving a cooperative Federal/State governance 
        structure for labor market information. Subsection (b) 
        requires the Secretary to involve the States with the 
        Bureau of Labor Statistics in a cooperative manner in 
        the development of the plan. Subsection (c) allows that 
        State representatives serving on this board be allowed 
        to be employees of the Department for purposes of the 
        development of the annual plan and to meet the 
        provisions of Office of Management and Budget Circular 
        A-11.
          Section 25 outlines the Governor's responsibilities. 
        Subsection (a) requires the Governor of each State to 
        designate a single State agency to be the agency 
        responsible for the management and oversight of a 
        statewide comprehensive labor market information system 
        and for the State's participation in the cooperative 
        Federal/State governance structure for the nationwide 
        labor market information system. Subsection (b) 
        outlines the duties of the State agency which includes 
        the development, maintenance, and continuous 
        improvement of a comprehensive labor market information 
        system; ensure the performance of contract and grant 
        responsibilities for data collection, analysis, and 
        dissemination; conduct such other data collection, 
        analysis, and dissemination activities as will ensure 
        comprehensive State and local labor market information; 
        actively seek the participation of other State and 
        local agencies, with particular attention to State 
        education, economic development, human services, and 
        welfare agencies, in data collection, analysis, and 
        dissemination activities in order to ensure 
        complementarily and compatibility among data; and 
        participate in the development of the national annual 
        plan. Subsection (c) is a rule of construction to make 
        clear that nothing in this Act shall be construed as 
        limiting the State agency's ability to conduct 
        additional data collection, analysis, and dissemination 
        activities with State funds or with Federal funds from 
        sources other than this Act.

                       Subtitle C--Worker Rights

    Section 141 prohibits the displacement of any currently 
employed worker by program participants; prohibits the 
impairment of existing contracts for services or collective 
bargaining agreement; prohibits the replacement of existing 
laid-off workers, or workers terminated with the intention of 
filling the vacancy so created with a student; ensures 
protection of students under applicable Federal, State and 
local health and safety requirements; and clarifies that 
nothing in this act shall be construed to modify or affect any 
Federal or State Civil Rights laws.

 TITLE II--YOUTH DEVELOPMENT AND CAREER PREPARATION CONSOLIDATION GRANT

    Section 201 states that the purpose of this title is to 
design youth development and career preparation programs that 
provide States and local communities with maximum flexibility 
to design youth programs that help individuals attain the 
academic and occupational skills needed to succeed in a global 
economy; best suits the needs of youth and business in local 
communities as well as the needs of the State; promote strong 
connections between in-school and at-risk/out-of-school youth 
programs to ensure that youth are prepared for good jobs and 
further education opportunities and promote youth development 
and career preparation programs that provide opportunities for 
individuals to receive postsecondary education and occupational 
training; promote the formation of business and education 
partnerships; promote high academic and occupational standards; 
and promote quality vocational-technical education, including 
improved secondary and postsecondary programs by focusing on 
program improvement that help prepare students for further 
education and training and high wage jobs.
    Section 202 includes definitions applicable to the youth 
title of this bill.
    Section 211(a) reserves $25 million or 20% of the total 
appropriation, whichever is less, for national programs to be 
administered by the Secretary of Education.
    Section 211(b) provides States with an amount of funding 
which bears the same ratio as the average of funds they 
received in FY 1995 under Section 101 and 101A of the Carl D. 
Perkins Vocational and Applied Technology Education Act and 
Section 252 and 262 of the Job Training Partnership Act. Small 
state minimum of \1/4\ percent included in language.
    Section 211(c) requires Governor to send 90% of funds to 
local level. Of remaining 10% of funds, 8% are for State 
programs and 2% is for administration.
    Section 212(a) of the 90% of funds sent to the local level, 
40% of the funds must be used for programs serving in-school 
youth and 40% of the funds must be used for programs to serve 
at-risk and out-of-school youth. The Governor and collaborative 
process have discretion over the remaining 20% of funds flowing 
to the local level; however, the money must be used to serve 
either in-school or at-risk/out-of-school youth in combination 
with the 40% mandatory use of funds. The Governor, through the 
collaborative process, can use 10% of the remainder to the 
local level for incentive grants, competitive awards, or the 
money can be distributed by formula. The remaining funds may be 
split in any way between the in-school and at-risk/out-of-
school youth programs, or may be applied to one or the other 
programs; however, the money must go out by formula. The 20% of 
discretionary funds cannot be used for any other purpose except 
for programs to serve in-school and at-risk/out-of-school 
youth.
    Section 212(b) requires the Governor, through the 
collaborative process, to develop a formula taking into account 
local poverty rates, the proportion of the State's youth 
population residing within local communities and other factors 
considered appropriate. In establishing the formula, the 
Governor shall ensure that funds are equitably distributed 
throughout the State and that the factors described above do 
not receive disproportionate weighting.
    Section 212(c) establishes minimum grant awards of $15,000 
for a local education agency or consortium of such agencies; 
$15,000 for subgrants made by local workforce development 
boards to serve at-risk/out-of-school youth; $50,000 to 
postsecondary institutions or consortium of such institutions; 
and allows secondary-postsecondary institutions to form 
consortia to receive grant funds with a minimum award of 
$50,000.
    Section 212(d) prevents consortium from forming to receive 
funds and then separate immediately after and dividing the 
funds. Requires that consortia must form for the purposes 
established under this title and to stay in a consortia 
arrangement for purposes of delivering services to youth under 
this title.
    Section 212(e) permits a State to grant a waiver for the 
minimum grant amount in cases where the eligible recipient is 
located in a rural, sparsely populated area; and demonstrates 
that they are unable to enter into a consortium for purposes of 
providing services under this title.
    Section 221 contains the State Plan. In order to receive 
funds under this title, requires State to submit additional 
information with infrastructure plan. Additional information 
that must be included: how State will adopt or develop model 
curricula and innovative instructional methodologies, to be 
used in schools, that integrate academic and vocational 
learning and promote career awareness; State plans for 
expansion of career exploration counseling for students in 
elementary and secondary schools and how State will effectively 
demonstrate system of career preparation for youth; how State 
plans to integrate academic and vocational education and 
description of how State will promote collaboration between 
secondary and postsecondary occupational and academic programs 
and institutions; description of how State will develop 
academic and occupational skills of students providing 
challenging vocational-technical education standards and how 
State will develop a process to issue skill certificates that 
are consistent with the skill standards endorsed by the 
National Skill Standards Board; description of how State will 
promote active involvement of business in planning, development 
and implementation of youth programs; and description of how 
State will coordinate Goals 2000 and Improving America's 
Schools Act and other State education improvement plans.
    Section 222(a) grants general authority to State to conduct 
State programs and activities.
    Section 222(b) requires that of the 8% of funds allotted 
for state activities, the State must use the funds for the 
development of performance standards and measures for programs; 
and program improvement and accountability.
    Section 222(c) additional uses of the 8% state funds 
include: tech-prep programs; workforce preparation programs for 
single parents, displaced homemakers and single pregnant women; 
corrections vocational education; professional development 
activities regarding integration of vocational, academic and 
work-based curricula including support of public teacher-
education programs to ensure vocational teachers stay current 
with industry needs; and in-service and pre-service training of 
teachers in state-of-the-art programs and techniques; 
development, dissemination and field testing of curricula with 
a particular focus on curricula that integrate vocational, 
academic and work-based learning methodologies, curricula 
focusing on a coherent sequence of courses measuring academic 
and occupational skills, and curricula for work-based learning; 
leadership and instructional programs in technology education; 
data collection, including support for management information 
systems; 1-stop career centers; cooperative education and 
family and consumer science programs; creative use of 
technologies, including professional development in the use of 
such technologies for instructional purposes; support for 
vocational student organizations; and improving career guidance 
and counseling.
    Section 223 contains the Incentive Awards. States are 
permitted to use money from the 8% of state-held funds to offer 
incentive awards to local communities. State has discretion as 
to how to construct awards with requirements for awards being 
performance goals exceeded; outstanding workforce development 
system implemented at the local level; or provided exemplary 
education services and activities for at-risk youth.
    Section 224(a) each State is required to have in place, or 
develop and implement, a statewide system of core standards and 
measures of performance for programs serving youth under this 
title. The intent is to coordinate this system with other 
titles included under this Act. Each statewide system must: 
establish or have established, performance goals to measure the 
level of performance achieved by youth served under this title. 
The goals must evaluate the quality and effectiveness of 
services and activities under this title; goals must be 
expressed in an objective, quantifiable and measurable form; 
establish progress indicators that State and local recipients 
of funds will use to measure their progress toward these goals; 
and provide reports every 2 years to the public and to the 
Secretary of Education on the State's progress in achieving 
their goals.
    Section 224(b) requires statewide system of standards and 
measures be developed and include: measures of academic and 
occupational competency gains, including progress in achieving 
academic and occupational competency (including attainment of: 
challenging State academic standards, challenging vocational-
technical education standards; and industry recognized 
occupational standards including basic workplace competencies 
and industry recognized skill standards); retention in school 
or completion of secondary school or equivalent; placement into 
additional training, postsecondary education, military service, 
registered apprenticeship or employment; and employment 
retention and earnings level; reduction of drop-out rate; and 
success of special populations, including nontraditional 
training and employment in meeting the performance standards 
established by the State.
    Section 224(c) the Governor, through the collaborative 
process, shall ensure that the performance goals are consistent 
with challenging State academic standards, industry recognized 
skill standards and State goals established under this title.
    Section 231(a) in order to receive a grant at the local 
level, the local workforce development board and eligible 
institution(s) must form a partnership. The purpose of the 
partnership is to allow for collaborative planning, 
coordination of programs serving in-school and at-risk/out-of-
school youth and allow for effective public participation.
    Section 231(b) the partnership must develop and submit for 
approval to the Governor and State collaborative process, a 
comprehensive plan outlining how they are planning to serve 
both in-school and at-risk/out-of-school youth. The partnership 
must assure the involvement of parents, teachers and the local 
community in the planning process.
    Section 232(a) funds directed to the local level from the 
State to serve in-school youth must go to schools and eligible 
institutions.
    Section 232(b) funds directed to the local level from the 
State to serve out-of-school youth will be sent to the local 
workforce development board to be subgranted to eligible 
entities for programs to serve at-risk and out-of-school youth.
    Section 241(a) requires institutions receiving funds under 
this title to use the monies to improve youth development and 
career-related education programs.
    Section 241(b) requires that funds received for in-school 
youth programs must be used for programs that are of such size, 
scope and quality as to be effective; integrate academic, 
vocational and work-based learning, stressing applied and 
contextual learning, through a coherent sequence of course so 
youth achieve both academic and occupational competencies; 
involve employers in design and implementation of programs; 
establish effective linkages between at-risk/out-of-school 
youth programs at both the secondary and postsecondary levels; 
provide work-based learning experiences with adult mentoring 
where appropriate, and to the extent possible, with strong 
experiences in, and understanding of, all aspects of an 
industry appropriately tied to the student's career major; with 
accommodations to be made for rural areas so that they can meet 
this requirements; and provide career exploration, including 
opportunities in the practical arts and trades at an early age.
    Section 241(c) additional uses of funds at the local level 
for in-school youth programs include: purchasing, leasing or 
upgrading equipment; in-service training of providers on the 
integration of academic and vocational education; tech-prep 
education programs; supplementary services that might be 
required by members of special populations; adaptation of 
equipment; apprenticeship programs; comprehensive mentoring 
programs; activities which enable program participants and 
their parents in decisions influencing programs; local 
education/business partnerships for developing and implementing 
youth programs; and support for vocational student 
organizations.
    Section 245(a) general authority for local workforce 
development boards to subgrant to providers for programs that 
serve at-risk and out-of-school youth.
    Section 245(b) lists requirements for uses of funds for 
programs that serve at-risk and out-of-school youth as: such 
size, scope and quality as to be effective; integrate academic, 
vocational and work-based learning, stressing applied and 
contextual learning, through a coherent sequence of course so 
at-risk and out-of-school youth achieve both academic and 
occupational competencies; involve employers in design and 
implementation of programs; establish effective linkages 
between at-risk/out-of-school youth programs at both the 
secondary and postsecondary levels; provide work-based learning 
experiences, including experiences in the practical arts and 
trades, with accommodations to be made for rural areas so they 
can meet these requirements; provide adult mentoring as a core 
component of the program; provide objective assessment of 
academic level, skill level, and service needs of each 
participant in the program; and career exploration and 
counseling.
    Section 245(c) lists additional uses of funds as: tutoring 
and study skills training leading to completion of high school; 
alternative high school services; community service 
opportunities that are combined with training or education; 
paid work experience; drop-out prevention strategies and 
strategies to encourage out-of-school youth to reenter high 
school or alternative high school programs; preemployment and 
work maturity skills training; peer-centered activities 
encouraging responsible behaviors; and training related 
services for participants who have exhausted all other 
resources.
    Section 245(d) limits the amount of funds to be used for 
administrative purposes by local workforce development boards 
to 10%.
    Section 246(a) provision does not permit local workforce 
boards to operate programs and requires that they subcontract 
to eligible providers.
    Section 246(b) lists eligible providers to receive 
contracts from the local workforce development board as: 
eligible institutions including local educational agencies, 
area vocational schools, intermediate educational agencies; 
postsecondary institutions including community colleges, State 
corrections educational agency and any consortia of the 
aforementioned list; local government entities; private, 
nonprofit organizations including community based 
organizations; private, for-profit entities; 1-stop career 
center; or other organizations or entities that have a 
demonstrated effectiveness and have been approved by the local 
workforce development board to deliver such services to at-risk 
and out-of-school youth.
    Section 251(a) permits Secretary of Education to make 
grants and other agreements to carry out research, development, 
dissemination of materials, replication of model programs, 
demonstration programs, evaluation, capacity building and 
technical assistance activities in regard to services and 
activities administered under this title. Activities may 
include support for occupational and career information 
systems.
    Section 251(b) requires Secretary to establish a system for 
disseminating information gathered though research and 
development efforts under this title.
    Section 252(a) requires Office of Educational Research and 
Improvement at the Department of Education to conduct a 
biennial assessment of services and activities funded under 
this title. Requires that independent studies and analyses be 
conducted through competitive awards.
    Section 252(b) assessment shall examine the extent to which 
services and activities assisted under this title have achieved 
their intended purposes and results. Requires analysis of the 
extent to which State and local services and activities have 
developed, implemented or improved systems established under 
this title; services and activities funded under this title 
have succeeded in preparing students, including members of 
special populations, for postsecondary education, further 
learning, or entry into high-skill, high wage careers; students 
participating in programs funded under this title have 
succeeded in meeting challenging State academic and industry-
based skill standards; and the system improvement, 
participation, local and State assessment, and accountability 
provisions of this title including the effectiveness of the 
performance goals and indicators established under this title 
are effective.
    Section 253(a) gives authority to Secretary of Education to 
establish national center or centers for conducting applied 
research, development, dissemination and technical assistance 
activities focusing on improving the career preparation of 
youth. Eligible entities include institutions of higher 
education, other public or private nonprofit organizations or 
agencies, or any consortia of the aforementioned entities. The 
national center in existence on the date of enactment of this 
Act shall continue to receive assistance under the current 
terms of its contract but shall not be guaranteed continued 
assistance except through a new competitive award. Funding for 
the center or centers shall be provided from funds allocated 
for national programs.
    Section 253(b) required activities of the national center 
or centers include: activities that assist recipients of funds 
under this to develop, implement and measure core standards and 
performance; research and development of activities that 
combine academic, vocational education and work-based learning; 
developing new models of remediation of basic academic skills; 
identifying ways to establish links among education and job 
training activities at the State and local level; new models 
for career guidance, career information and counseling 
services; longitudinal studies on programs funds under this 
title including an analysis of the effectiveness of youth 
development and career preparation programs in serving at-risk 
youth; and other activities that the Secretary of Education 
determines to be appropriate. Requires also that the center or 
centers shall provide assistance to States and local recipients 
in developing and using systems of performance measures and 
standards. Technical assistance and outreach to practitioners 
or organizations in need of assistance is a required activity. 
Annual reports are due to the Secretary of Education and 
Secretary of Labor. The Secretary of Education shall then 
submit the report to the Senate Committee on Labor and Human 
Resources and the House Committee on Economic and Educational 
Opportunities.
    Section 253(c) establishes a clearinghouse within the 
center or center(s) to provide data and information to federal, 
state and local organizations and agencies.

      TITLE III--ADULT EMPLOYMENT AND TRAINING CONSOLIDATION GRANT

              Subtitle A--State and Local Responsibilities

    Section 301 states that the purpose of this title is to 
establish an efficient, high-quality, and equitable system of 
employment and training designed to move adults into productive 
private sector employment.
    Section 302 section establishes that each State submitting 
a State Workforce Development and Literacy Plan to the 
Secretary of Labor under this title, shall receive an amount 
consistent with their allotment as determined under section 
303.
    Section 303 requires that 85% of the funds appropriated for 
the adult employment and training grant be allotted to States, 
and that 15% be reserved by the Secretary of Labor for Federal 
Programs. This section establishes a set aside for the 
territories, set at not more than one-quarter of one percent of 
the 85% of the funds for the States. This section also 
establishes the formula by which funds are allotted to States, 
based on a proportionate share of funds as States currently 
receive under JTPA's title II-A economically disadvantaged, and 
title III dislocated worker programs. A small State minimum is 
set under this section, at one-quarter of one percent of the 
total State allotment.
    Section 304(a) specifies that the Governor may reserve not 
more than 20 percent of the amount allotted to the State for a 
fiscal year, for statewide activities for employment, job 
training, and related assistance for adults. Such activities 
shall include rapid response activities, and additional 
assistance to areas that experience disasters, mass layoffs or 
plant closings, or other events which precipitate substantial 
increases in the number of unemployed workers, to be expended 
in accordance with the local plan of the relevant workforce 
development area. In addition, discretionary activities such as 
capacity building and technical assistance, incentives for 
program coordination, performance awards, research and 
demonstrations, implementation of innovative incumbent worker 
training programs, additional assistance for the development 
and implementation of the one-stop delivery system, and support 
for a common management information system are allowable uses 
of funds. Of this 20 percent, States are limited to not more 
than 5 percent of the State's total allotment for purposes of 
administration.
    Section 304(b) establishes the within State allocation of 
funds under this title. Specifically, the Governor of the 
State, based upon an allocation formula established by the 
Governor, through the collaborative process, shall allocate not 
less than 80 percent of the State's allotment to workforce 
development areas for the purpose of providing employment, job 
training, and related assistance for adults. Such within State 
allocation formula is developed through the collaborative 
process, after consultation with local chief elected officials 
in the local workforce development area, and shall take into 
account: poverty rates; unemployment rates; and the proportion 
of the State's adult population residing within each local 
workforce development area; and such other factors as 
considered appropriate. In addition, the formula must ensure 
that funds are distributed equitably throughout the State, and 
that none of the above-listed factors receive disproportionate 
weighting. This section also allows the Governor to distribute 
10 percent of the State's portion set aside for the within 
State distribution, to be allotted by means other than the 
established formula.
    Section 305. States must provide 2 additional State plan 
requirements to their State Workforce Development and Literacy 
Plan, as established under title I. Specifically, they must 
describe how they will serve the employment and training needs 
of dislocated workers, the economically disadvantaged, older 
workers, veterans, individuals with disabilities, and other 
adults with multiple barriers to employment, and they must 
describe how they will provide rapid response to mass layoffs 
and plant closings.
    Section 306(a) outlines the allowable uses of funds under 
title III. Specifically, it requires that local programs 
provide: Core services to adults through one-stop career 
centers in accordance with section 107; intensive services to 
adults who are unable to obtain employment through core 
services and who have been determined to be in need of more 
intensive services in order to gain employment; and education 
and training to adults who are unable to obtain employment 
through core services and who are in need of education and 
training services in order to gain employment as a result of 
determinations made through preliminary assessments or through 
the provision of intensive services. Additional services may 
also be provided with funds under title III, including 
supportive services and limited needs-related payments.
    Section 306(b) specifies that intensive services must be 
provided directly through one-stop career centers or through 
contract through such centers with service providers approved 
by the local workforce development board. Intensive services 
may include: comprehensive and specialized assessments of the 
skill levels and service needs of adults; development of an 
individual employment plan, to identify the employment goals, 
appropriate achievement objectives, and the appropriate 
combination of services for the adult to achieve the employment 
goal; group or individual counseling and career planning; case 
management for adults receiving education and training 
services; and follow up counseling for adults placed in 
training or employment, for up to 1 year.
    Section 306(c) specifies that education and training 
services be provided through education and training providers 
certified in accordance with section 108, and that such 
services be provided through skill grants except in cases where 
such services are on-the-job training provided by an employer; 
the local workforce development board determines there are an 
insufficient number of certified providers of education and 
training services in the workforce development area to 
accomplish the purpose of a skill grant system; the local 
workforce development board determines that the certified 
providers of education and training in the workforce 
development area are unable to provide effective services to 
special participant populations; or the local workforce 
development board decides to enter into a direct training 
contract with a community based organization serving special 
populations. Further, it is required that education and 
training be directly linked to occupations for which there is a 
demand in the local workforce development area, or in another 
area to which an adult participant is willing to relocate. In 
addition, this section clarifies that performance-based 
payments are allowable under this title. Education and training 
services may include basic skills training, occupational skills 
training, on-the-job training, programs that combine workplace 
training with related instruction, training programs operated 
by the private sector, skill upgrading and retraining, 
entrepreneurial training, employability training to enhance 
basic workplace competencies, and customized training conducted 
with a commitment by an employer or group of employers to 
employ an individual upon successful completion of the 
training.
    Section 306(d) states that supportive services may be 
provided for individuals who are receiving assistance under 
this title, and who are unable to receive such services through 
other programs providing such services. Needs-related payments 
may be provided to adults who are unemployed and who do not 
qualify for (or have ceased to qualify for) unemployment 
compensation for the purpose of enabling such adults to 
participate in education and training programs. However for 
those individuals who have exhausted unemployment insurance 
benefits, such eligibility for receipt of needs-related 
payments is contingent upon that worker's enrollment in 
education or training by the end of the 8th week of the 
worker's initial unemployment compensation benefit period, or, 
if later, by the end of the 8th week after the worker is 
informed that a short-term layoff will in fact exceed 6 months.
    Section 306(e) gives priority to dislocated workers and 
economically disadvantaged individuals, for receipt of 
intensive and education and training services in the event that 
funds are limited within a workforce development area.
    Section 306(f) clarifies that nothing in this section shall 
be construed to establish a right for a participant to bring an 
action to obtain services under a program established under 
this section.
    Section 306(g) limits administrative funds provided under 
this title to a local workforce development board to 10%.
    Section 307 requires that States establish performance 
measurement systems and indicators of performance, based on the 
following outcomes for adults in employment and training 
programs: Placement, retention, and earnings (at placement, 6 
months, and 1 year post-program termination); acquisition of 
skill certificates recognized by the National Skill Standards 
Board; and a measure of the provision of services to dislocated 
workers, the economically disadvantaged, older workers, 
individuals with disabilities, and other individuals with 
multiple barriers to employment. Such measures must be 
consistent with the State's goals and objectives, and 
benchmarking process described in the State plan required under 
section 104, and must be expressed in an objective, 
quantifiable, and measurable form. Further, States are required 
to provide biennial reports to the public and to the Secretary 
on the States progress in achieving its goals.

                      Subtitle B--Federal Programs

    Section 311(a) authorizes the Secretary to award national 
discretionary grants to address major economic dislocations 
that result from plant closures, base closures, or mass 
layoffs. Sets forth the application process. Lists the eligible 
entities to receive the grants.
    Section 311(b) allows the Secretary to provide awards to 
States to assist in the implementation of exemplary statewide 
workforce development system designs; and for the achievement 
of exceptional performance in the statewide workforce 
development system.
    Section 312(a) allows the Secretary of Labor to provide 
assistance to the Governor of any State that has suffered an 
emergency or a major disaster.
    Section 312(b) includes the allowable use of funds.
    Section 313(a) sets up a process for the Secretary to carry 
out research, demonstrations, evaluations, and capacity 
building.
    Section 313(b) describes the types of activities to be 
carried out with respect to research, demonstrations, and 
evaluations, including effectiveness of programs and a national 
partnership and special training, capacity building and 
technical assistance.
    Section 314(a) allows the Secretary to establish a program 
of workforce skills and development loans to assist in 
providing skills upgrading for non-managerial employees which 
may be provided to employers; representatives of employees; 
business associations; trade organizations; and consortiums 
consisting of more than 1 of these entities, or institutions of 
higher education along with 1 or more of the eligible entities.
    Section 314(b) provides that funds may be used to establish 
a loan guarantee program to assist in providing skills 
upgrading for non-managerial employees and requires States to 
meet certain requirements in carrying out this program such as: 
establishing a reserve fund to guarantee the payment of 
principal and interest on loans made by financial institutions; 
establishing criteria for loan guarantees including a payment 
of an insurance premium; assurance that funds will go toward 
skills upgrading for mid- and lower-level employees (both of 
which are defined).
    Section 314(c) prohibits funds be used to pay wages or 
other benefits. Also requires that the State reimburse funds to 
financial institutions that have provided loans to eligible 
entities that have defaulted on their loan. This subsection 
makes clear that the United States Government has no obligation 
or guarantees for these funds; limits the authority of a State 
to extend loan guarantees, and requires interest received from 
such fund to go back into the fund.
    Section 314(d) requires that the Federal share of funds 
provided under this section may not exceed 50 percent of the 
total cost of the program and that the State share shall be 
provided from non-Federal sources and may be in cash or in-
kind.
    Section 315(a) requires the Secretary of Labor to provide 
assistance to eligible entities to provide employment, 
training, vocational rehabilitation, library services, and 
education assistance for Native Americans.
    Section 315(b) allows the Secretary of Labor to transfer 
authority for vocational education activated to the Secretary 
of Education.
    Section 315(c) makes clear that funds made available under 
this part may be used in accordance with the Indian Employment, 
Training and Related Services Demonstration Act (Public Law 
102-477), which allows the consolidation of funds.
    Section 315(d) requires the Secretary to consult with 
Indian, Alaska Native and Hawaiian Native groups in 
establishing regulations to carry out this section.
    Section 316(a) requires the Secretary of Labor to provide 
assistance to eligible entities to provide employment, 
training, and education assistance for migrant and seasonal 
farm workers.
    Section 316(b) describes the eligible entities and the 
allowable activities.
    Section 316(c) allows for the transfer of authority for 
education activities to the Secretary of Education.

 TITLE IV--ADULT EDUCATION AND FAMILY LITERACY CONSOLIDATION GRANT AND 
                 LIBRARY SERVICES AND TECHNOLOGY GRANT

    Section 401 sets forth the findings in this Title.
    Section 402 contains definitions related to Title IV, 
including Correctional Education Agency, Educationally 
Disadvantaged Adult, Family Literacy Services, and Secretary.

  Subtitle A--Adult Education and Family Literacy Consolidation Grant

    Section 411 sets forth the purposes of this Subtitle.

Chapter 1--Funding

    Section 421 sets forth amounts to be reserved at the 
National level for the National Institute for Literacy, and 
National Leadership Activities.
    Section 422 establishes the formula for distributing funds 
to the States and defines the term ``qualifying adult'' for use 
in determining the allotment of funds.

Chapter 2--Grants to States

    Section 431 sets forth requirements which States must meet 
in order to qualify for grants under this Title.
    Section 432 outlines the purposes for which States can use 
funds received under this Title. Three percent of such funds 
are to be used for grants to local providers who are successful 
in providing services to specific target populations; at least 
85 percent of funds are to be used for grants to local service 
providers; not more than 3 percent of funds are to be used for 
administrative expenses, and up to an additional 12 percent of 
funds may be used for other State activities, such as 
professional development programs, technology assistance to 
local providers and State Literacy Resource Centers.
    Outlines the purposes for which local service providers can 
use funds received under this title, including, adult basic 
education, adult secondary education, English literacy 
instruction, and family literacy services.
    Section 433 sets forth additional requirements States must 
meet in order to qualify to receive funds under this Title.
    Section 434 outlines the categories for which States will 
measure performance of programs, services and activities 
carried out by each local service provider.

Chapter 3--National programs

    Section 441 establishes the National Institute for 
Literacy. Sets forth the duties of the Institute, including the 
provision of national leadership for the improvement and 
expansions of the system for delivery of literacy services and 
assisting States in developing levels of performance. Outlines 
authorized activities, including the establishment of a 
national electronic database of information and the 
coordination of literacy and basic skill services across 
Federal agencies and at the State and local level. Establishes 
a National Institute for Literacy Advisory Board consisting of 
10 individuals appointed by the President with the advice and 
consent of the Senate and establishes the duties, terms and 
general operating procedures for the Board.
    Section 442 allows the Secretary to establish and carry out 
a program of national leadership and evaluation activities. 
Sets forth activities for which funds may be used.
    Section 451 sets forth the purposes of the Library Services 
and Technology Consolidation Grant which are to consolidate 
programs, improve access to information through electronic 
networks and to provide linkages among and between libraries 
and one-stop career center systems.
    Section 452(a) authorizes $110 million for libraries for 
each of fiscal years 1997, 1998, 1999, 2000, 2001 and 2002.
    Section 452(b) provides for advance notice of funding.
    Section 453(a)(1) sets forth the allocation formula for 
distribution of the Library Services and Technology 
Consolidation Grant to the States.
    Section 453(a)(1)(A) provides, pursuant to the allocation 
formula, an initial allotment of $40,000 to Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, and 
the Virgin Islands.
    Section 453(a)(1)(B) provides, pursuant to the allocation 
formula, an initial allotment of $200,000 to each of the 
States.
    Section 453(a)(2) provides for a ratable reduction if funds 
are insufficient to pay all of the allotments.
    Section 453(b)(1) provides for a second allotment to each 
State based upon the population of the State to the population 
of all States.
    Section 453(b)(2) provides that population determinations, 
for purposes of the second allotment to each state, will be 
based upon the most recent census data available to the 
Secretary of Education, and the Secretary shall use, if 
available, the annual interim current census data of the 
Secretary of Commerce.
    Section 454(a) sets forth the prerequisites a State must 
meet to receive a library grant.
    Section 454(a)(1) requires a State to submit an annual 
application, approved by the Secretary, to receive a grant.
    Section 454(a)(2) requires a State to submit a written 
agreement to the Secretary providing for transfer of funds to 
the State library administrative agency. The agreement will 
also assure that the State library administrative agency will 
carry out activities in accordance with the subtitle, that 
State and local sources will supply 25% matching funds, and 
that the agency has fiscal and legal authority and capability 
to administer the program.
    Section 454(b) (1) and (2) provide that the grants to each 
state will equal the lesser of: (1) the initial and subsequent 
allotment; or (2) 75 percent of the total costs of carrying out 
the activities under subsection 454(a)(2)(B).
    Section 455(a) sets forth as allowable uses of funds the 
electronic connection of libraries with one-stop centers and 
local service providers under Subtitle A of Title IV of the 
bill, the establishment of linkages among libraries, assistance 
in accessing information, the encouragement of consortia and 
sharing of resources, the acquisition or sharing of computer 
systems and telecommunications technologies, and the 
improvement of library and information services for individuals 
who have difficulty using a library or who need special library 
materials or services.
    Section 455(b) provides a limit of 3 percent of a State's 
grant for planning, administration, evaluations, and 
interagency coordination.
    Section 456(a) requires a State to submit an application to 
receive a grant and sets forth the items to be included in the 
application.
    Section 456(b)(1) requires the Secretary to approve each 
application that satisfies the requirements of Section 456(a).
    Section 456(b)(2) sets forth the rights of a State upon 
disapproval of an application.

         TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973

       Subtitle A--Vocational Rehabilitation Consolidation Grant

Chapter 1--Transition period

    Section 501 would require the Secretary of Education, 
acting through the Commissioner of the Rehabilitation Services 
Administration, to administer the amendment so that: During 
fiscal year 1996, the Secretary shall develop administrative 
policies for implementing the amendment; during fiscal years 
1997 and 1998, the Secretary shall begin implementing the new 
policies; by the first day of fiscal year 1999, the amendment 
is fully implemented. Further, the Secretary shall ensure that 
before the beginning of FY 1999, the state took action to 
encourage the participation of certain service providers, 
established the voucher system for the title, trained staff of 
the one-stop in addressing the needs of disabled individuals, 
and made arrangements for the establishment of one-stop 
centers. This section also clarifies, that during 1996 through 
1998, the provisions of title I of the Rehabilitation Act of 
1973 that were in effect at enactment will continue to be in 
effect, subject to transition requirements. This section also 
clarifies that individuals currently receiving services should 
not have those services unnecessarily disrupted.

Chapter 2--Revision of title I of Rehabilitation Act of 1973

    Section 511 is a comprehensive revision of the 
Rehabilitation Act of 1973. It would transfer the Client 
Assistance program from section 112 to a new section 510 of 
title V, and would amend title I to include the following 
sections:

              Title I--Vocational Rehabilitation Services

          Section 100 establishes the purpose of the title--to 
        assist States in making available to individuals with 
        disabilities a program of employment, training, and 
        rehabilitation services that is consistent with their 
        strengths, resources, priorities, concerns, abilities, 
        and capabilities; that maximizes individuals' control 
        over their vocational and career choices, and is in 
        accordance with the goal of assuring equality of 
        opportunity, full participation, independent living, 
        and economic self-sufficiency for such individuals.
          Section 101 would establish formula grants for States 
        receiving funds under this title. Subsection (a) 
        establishes that, for fiscal 1999 or any subsequent 
        fiscal year, the State receiving funds shall receive an 
        allotment determined for the State under section 107.
          Subsection 101(b) designates the Secretary of 
        Education, acting through the Commissioner of the 
        Rehabilitation Services Administration, to administer 
        the program.
          Subsection 101(c) clarifies that the purpose must be 
        carried out in accordance with the other requirements 
        of the title.
          Subsection 101(d) provides that there are authorized 
        to be appropriated such sums as may be necessary for 
        each of the fiscal years 1999 through 2002, and that 
        each year's appropriation must be adjusted by the 
        previous year's Consumer Price Index, as published by 
        the Secretary of Labor. It further provides that, if 
        legislation has not been enacted to extend the 
        authorization, then the authorization is automatically 
        extended for one additional year.
          Section 102 allocates administrative responsibilities 
        within a State. Subsection (a)(1) allows the State, 
        subject to subsection (b), to reserve not more than 20 
        percent of the grant for carrying out State 
        responsibilities under the title. Subsection (a)(2) 
        requires that not less than 80 percent of the grant 
        will be designated for carrying out the 
        responsibilities of local workforce development boards 
        and one-stop career centers.
          Section 102(b) allows a State to use funds under 
        subsection (a)(1) to carry out certain responsibilities 
        that otherwise would be carried out by local workforce 
        development boards or one-stop career centers if it is 
        necessary to make available goods and services that 
        cannot be provided through the local workforce board, 
        or to meet needs of individuals who cannot utilize the 
        one-stop career centers, or to address other issues of 
        equitable distribution of services, including the 
        provision of services for individuals in rural areas.
          Section (c) identifies the terms ``State 
        administrative agent'', ``local workforce development 
        area'', ``local workforce development board'', and 
        ``one-stop career center'' with the meanings given in 
        title I of the Consolidated and Reformed Education, 
        Employment, and Rehabilitation Systems Act.
          Section 103 designates the responsibilities of the 
        State Administrative Agent. Subsection (a) allows that, 
        in carrying out the requirement to designate an 
        administrative agent to carry out this title, a 
        Governor may designate one State administrative agent 
        to be responsible for carrying out this title for 
        individuals who are blind, and a different State 
        administrative agent to carry out the remaining 
        responsibilities in this title.
          Section (b) designates State responsibilities. 
        Subsection (b)(1) specifies that the title will be 
        carried out in accordance with the collaborative 
        process established under section 103 of the 
        Consolidated and Reformed Education, Employment, and 
        Rehabilitation Systems Act.
          Section (b)(2) requires the State to provide an 
        explanation of how it will provide vocational 
        rehabilitation services to all eligible individuals 
        within all workforce delivery areas within the State, 
        and if it is not able to do so, the justification for 
        the order to be followed in selecting individuals to 
        whom the services will be provided. This order of 
        selection under subparagraph (B) will be determined on 
        the basis of serving first those individuals with the 
        most severe disabilities, in accordance with State 
        criteria.
          Section (b)(3) requires the State to establish 
        guidelines to provide the eligible individual with 
        choice of receiving the services from a provider 
        designated by the one-stop career center or from a 
        provider selected by the individual with the use of 
        vouchers.
          Section (b)(4) requires the State to encourage the 
        participation in the State program of community-based 
        private providers, with special consideration given to 
        providers who have received funds under the projects 
        with industry or supported employment programs or 
        employment and training services under the Javits-
        Wagner-O'Day Act.
          Section (b)(5) requires the State to establish 
        provisions to govern eligibility determinations, based 
        on the criteria for eligibility found in this title.
          Section (b)(6) requires the State to establish 
        provisions to govern assessments of rehabilitation 
        need, including a methodology that will be uniformly 
        applied to prevent substantial disparities among 
        individuals with comparable circumstances in the 
        monetary value of the services to be provided based on 
        the assessments.
          Section (b)(7)(A) requires the State to establish 
        procedures through which an individual may request and 
        obtain an impartial review, utilizing an impartial 
        hearing officer, of whether standards in the title have 
        been correctly applied by the one-stop career center.
          Section (b)(7)(B) requires the State to designate a 
        number of days within which the review will be 
        conducted.
          Section (b)(7)(C) provides that there may be informal 
        methods of dispute resolution utilized, if agreed to by 
        both parties, and that impartial review is not 
        precluded if the informal alternatives do not yield a 
        final disposition of the matter.
          Section (b)(8) requires the State to ensure that 
        vocational rehabilitation services and core services 
        are provided by personnel qualified to provide the 
        services.
          Section (b)(9) requires that State to establish 
        interagency agreements with state education officials 
        responsible for educating students disabilities. The 
        plans, policies, and procedures must facilitate the 
        transition from the provision of a free appropriate 
        public education under the responsibility of an 
        educational agency to the provision of vocational 
        rehabilitation services under this title.
          Section (b)(10) requires the State administrative 
        agent to cooperate with the Statewide Independent 
        Living Council and independent living centers within 
        the State.
          Section (b)(11) requires the State administrative 
        agent to cooperation with on an interagency basis, and 
        coordinate the utilization of the services and 
        facilities of, the State agencies administering 
        programs for individuals with disabilities.
          Section (b)(12) requires the State to provide for the 
        appropriate training of the management and staff of the 
        one-stop career centers regarding effective services to 
        individuals with disabilities.
          Section (b)(13) requires the State to provide 
        technical assistance to local boards, one-stop career 
        centers, and providers regarding vocational 
        rehabilitation services, including development of 
        individualized rehabilitation and employment plans.
          Section (c) establishes the availability of vouchers 
        for services. Subsection (c)(1) requires the State to 
        establish a voucher system. Subsection (c)(2) provides 
        that an eligible individual who has been assessed for 
        rehabilitation needs will receive vocational 
        rehabilitation services through the use of vouchers, at 
        the choice of the individual. Subsection (c)(3) 
        provides that the individual can use the vouchers to 
        purchase services from among a list of approved 
        providers. Subsection (c)(4) ensures that the monetary 
        value of a voucher is calculated at a fair market 
        value. Subsection (c)(5) provides that, when 
        practicable, each workforce development area will have 
        available within it a broad range of services.
          Section (d) lists additional State options. 
        Subsection (d)(1), a State may disseminate research 
        findings, and under Subsection (d)(2), a State may 
        conduct demonstration projects regarding improvements 
        with respect to vocational rehabilitation services.
          Section (e) addresses core standards, performance 
        goals, and measures. Subsection (e)(1) requires the 
        State to develop and implement a statewide system of 
        standards and performance measures for the programs 
        under this title. Subsection (e)(2) provides that the 
        statewide system will establish performance goals and 
        evaluate the services and activities under this title, 
        create objective, measurable goals, and performance 
        indicators, and provide biennial reports on the State's 
        program. Subsection (e)(3) specifies that the State's 
        measures will include: placement, retention, and 
        earnings in integrated employment, including retention 
        and earnings at 6 months and 1 year; the percentage of 
        individuals served with severe disabilities, including 
        SSI and SSDI recipients; and other relevant measures 
        included in PWI standards and indicators and State 
        grant evaluation standards and indicators developed by 
        the Department of Education.
          Section 104 designates the Responsibilities for Local 
        Boards and Service Centers. Subsection (a) designates 
        the provision of vocational rehabilitation services. 
        Subsection (a)(1) provides that local responsibilities 
        will be carried out by the one-stop career centers in 
        the State, acting under the guidance of the local 
        workforce development board. Subsection (a)(2) provides 
        that, under the State's order of selection criteria, 
        the one-stop career center will make eligibility 
        determinations, provide vocational rehabilitation 
        services, and conduct outreach and intake activities 
        for individuals with severe disabilities who are not 
        able to access the one-stop career center system. 
        Subsection (a)(3) provides that the one-stop center 
        will make vocational rehabilitation services available 
        at a variety of locations, and as appropriate, in a 
        variety of environments.
          Section (b) defines ``vocational rehabilitation 
        services'' as goods or services that are necessary to 
        render an individual employable and achieve an 
        employment outcome, and that directly relate to the 
        individual's disability and do not substantially 
        duplicate the core services offered by the one-stop 
        career center.
          Section (c) provides that vocational rehabilitation 
        services offered through the one-stop centers will 
        include: (1) an assessment of the vocational 
        rehabilitation needs; (2) Development of an 
        individualized rehabilitation and employment plan to 
        identify employment goals, intermediate objectives, and 
        a combination of goods and services to achieve the 
        individual's employment goals; (3) Counseling, 
        guidance, and work-related placement services for 
        individuals with disabilities; (4) Vocational and other 
        training services for individuals with disabilities; 
        (5) Rehabilitation technology services; (6) Supported 
        employment services; (7) Physical and mental 
        restoration services; (8) Interpreter services for 
        individuals who are deaf, and reader services for 
        individuals who are blind; (9) Rehabilitation teaching 
        services and orientation and mobility services for 
        individuals who are blind; (10) Referral and other 
        services designed to assist individuals with 
        disabilities in securing needed services from other 
        agencies; (11) Transportation services; (12) 
        Telecommunications, sensory, and other technological 
        aids and devices; (13) on-the-job and other related 
        personal assistance services.
          Section (d) provides that the one-stop career center 
        will provide for necessary arrangements with community-
        based providers regarding supported employment services 
        and extended services, periodic reviews of individuals 
        placed in extended employment, and services to promote 
        movement from extended employment to integrated 
        employment.
          Section (e) allows a one-stop center to provide 
        additional vocational rehabilitation services as the 
        center determines to be appropriate.
          Section (f)(1) provides that a workforce board shall 
        reserve some funds under this title to supplement the 
        provision of core services at the one-stop career 
        center. Subsection (c)(2) clarifies that the amount of 
        vocational rehabilitation funds reserved to supplement 
        core services will be based on the number of eligible 
        individuals with disabilities in the local workforce 
        development area, and the costs of training employees 
        of the one-stop career centers to address disability 
        needs.
          Section (g) establishes criteria for development by 
        the Local Board of performance payments regarding 
        vouchers. The Board will ensure that a provider does 
        not receive full payment until the delivery of the 
        services involved is completed, and for employment, 
        training and placement services, the full payment is 
        not made until the individual has successfully 
        completed the training and been employed for 90 days.
          Section (h) provides that the State will not pay for 
        training services in institutions of higher education, 
        or medical services, unless significant efforts have 
        been made to secure payments from other sources. The 
        provision makes an exception to this requirement if 
        making such efforts would delay services to someone who 
        is at extreme medical risk, or who would lose a job 
        placement due to the delay.
          Section 105 describes criteria for determining an 
        individual's eligibility for services. Subsection (a) 
        provides that the individual cannot receive vocational 
        rehabilitation services under this title unless the 
        individual meets the Act's definition of an individual 
        with a disability, and the individual requires 
        vocational rehabilitation services to prepare for, 
        enter, engage in, or retain gainful employment.
          Section (a)(2) clarifies that, if the individual has 
        a disability or is blind as determined pursuant to 
        title II or title XVI of the Social Security Act, the 
        individual will be considered to have a disability 
        under this title.
          Section (a)(3) provides that it will be presumed that 
        an individual can benefit in terms of an employment 
        outcome from vocational rehabilitation services, unless 
        the one-stop career center provides clear and 
        convincing evidence otherwise.
          Section (b) establishes the process by which 
        eligibility will be determined. Under paragraph (1), 
        once the individual makes a request for an eligibility 
        determination, a qualified rehabilitation adviser will 
        be made available, an initial interview will be 
        conducted, followed by an initial assessment, and a 
        final determination will be made within 30 days. The 
        determination of eligibility will be based on the 
        review of existing data and the preliminary assessment. 
        If it is determined that the individual is not an 
        eligible individual, the individual will be provided a 
        written statement explaining the basis of the 
        determination, the availability of an impartial review, 
        and the availability of services under the client 
        assistance program.
          If, under subsection (b)(2), it is determined that 
        the individual is an eligible individual, the needs of 
        the individual for vocational rehabilitation services 
        will be assessed, and an individual rehabilitation and 
        employment plan will be developed for the individual 
        and mutually agreed upon by the individual and an 
        appropriate staff member of the one-stop career center. 
        A plan is considered to be individualized if it is 
        consistent with the unique strengths, resources, 
        priorities, concerns, abilities, and capabilities of 
        the individual. The subsection also allows the 
        individual to forego developing a plan if the 
        individual signs a waiver.
          Section (c) clarifies that the title does not create 
        an individual entitlement to services.
          Section (d) defines the term ``eligible individual.''
          Section 106 establishes criteria for the State 
        Rehabilitation Advisory Council. Subsection (a)(1) 
        provides that the State will establish a State 
        Rehabilitation Advisory Council. Subsection (a)(2) 
        establishes that the Council will include: 
        Representatives of organizations within the State 
        providing services to individuals with disabilities; 
        Representatives of business, industry, and labor; 
        Representatives of disability advocacy groups 
        representing a cross section of disability; The State 
        administrative agent as an ex officio member; and other 
        members of the Council as appointed by the Governor. 
        Subsection (a) also requires that a majority of Council 
        members will be individuals with disabilities, and not 
        employed by the designated State administrative agent. 
        The subsection also provides for appointment of a 
        chairperson, length of terms, and procedures to fill 
        vacancies on the council.
          Section (b) enumerates the functions of the council 
        as the following: Advise the collaborative process, and 
        the State administrative agent, in the preparation of 
        the State workforce development and literacy plan; 
        conduct a review and analysis of the effectiveness of 
        the delivery of core services and vocational 
        rehabilitation services to individuals with 
        disabilities within the State; Prepare and submit an 
        annual report to the collaborative process or 
        appropriate State administrative agent and the 
        Commissioner on the status of vocational rehabilitation 
        programs operated within the State; and coordinate with 
        other councils within the State established to address 
        the needs of individuals with disabilities.
          Section (c) clarifies the resources available to the 
        Council by the State administrative agent, and that the 
        council may hire staff and other personnel as 
        necessary. The subsection also provides for resolution 
        of disagreements by the governor between the Council 
        and the State administrative agent.
          Section (d) provides a protection against conflict of 
        interest by members the Council.
          Section (e) authorizes the Council to convene 
        meetings and forums or hearings.
          Section (f) allows the use of funds to reimburse 
        members of the Council for reasonable and necessary 
        expenses.
          Section (g) clarifies that a governor may designate a 
        separate council to carry out functions with respect to 
        vocational rehabilitation services for individuals who 
        are blind.
          Section 107 describes the amount of the allotment, as 
        in effect under current law.

       Subtitle B--Other Amendments to Rehabilitation Act of 1973

    Section 521 makes amendments regarding training and 
demonstration projects within the Rehabilitation Act. 
Subsection 521(a) amends the Rehabilitation Act of 1973, 
effective October 1, 1995, by striking section 303, section 
304, section 311(f), section 312; and section 316. The 
subsection also transfers subsection 802(a) to title III and 
redesignate it as section 311(f). The subsection further 
transfers subsection 802(g) to title III as section 311(g), 
transfers section 803(c) to title III and redesignates it as 
Section 311(h), and transfers section 803(b) to title III and 
redesignates it as section 302(j). Finally, the subsection 
strikes the remaining provisions of title VIII.
    Section (b) would take effect October 1, 1998 and would 
amend section 311 of the Rehabilitation Act of 1973, by 
striking subsection (c), and redesignating subsections (d) 
through (g) as subsections (c) through (f), respectively.
    Section 522 would take effect October 1, 1995, and would 
amend title VI to: strike part A; strike part C; strike part D; 
and retain the projects with industry program.
    Section (b), effective October 1, 1998, would repeal the 
Projects With Industry in title VI.
    Section (c) contains conforming amendments.

                TITLE VI--REPEALERS AND OTHER AMENDMENTS

    Section 601 repeals the Carl D. Perkins Vocational and 
Applied Technology Education Act (20 U.S.C. 2301 et seq.).
    Section 602 repeals the School-to-Work Opportunities Act of 
1994 (20 U.S.C. 6101 et seq.).
    Section 603(a) repeals the Adult Education Act (20 U.S.C. 
1201 et seq.).
    Section 603(b)(1) makes technical and conforming changes to 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6301 et seq.) (ESEA) by replacing the words ``Adult Education 
Act'' with ``title IV of the CAREERS Act.'' This subsection 
also replaces the words ``section 312(2) of the Adult Education 
Act'' in Section 9161(2) of ESEA with ``section 5 of the 
CAREERS Act.''
    Section 603(b)(2) makes technical and conforming changes to 
the Technology for Education Act of 1994 by replacing ``section 
312 of the Adult Education Act'' with ``section 5 of the 
CAREERS Act.''
    Section 604 repeals the National Literacy Act of 1991, 
except for section 101.
    Section 605(a) repeals the Library Services and 
Construction Act (20 U.S.C. 351 et seq.).
    Section 605(b) makes technical and conforming changes to 
the Technology for Education Act of 1994 (20 U.S.C. 6801 et 
seq.). This subsection replaces the words ``section 3 of the 
Library Services and Construction Act'' with ``section 5 of the 
CAREERS Act.''
    Section 606 repeals sections 3601 through 3605 of the 
Technology for Education Act of 1994 (20 U.S.C. 7001 et seq.).
    Section 607 repeals the Job Training Partnership Act (29 
U.S.C. 1501), (except sections 421 through 439 relating to the 
Job Corps and section 441 relating to the Veterans' employment 
program), including:
          (1) Title II(a) relating to the Adult Training 
        Program.
          (2) Title II(b) relating to the Summer Youth Program.
          (3) Title II(c) relating to the Year Round Youth 
        Program.
          (4) Title III relating to Employment and Training 
        Assistance for Dislocated Workers.
          (5) Title IV relating to Federal Administered 
        Programs.
          (6) Title V relating to Jobs for Employable 
        Individuals Incentive Bonus Program.
          (7) Title VI relating to Miscellaneous provisions.
          (8) Title VII relating to the State Human Resource 
        Investment Council.
    Section 608(a) repeals section 702 of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11421).
    Section 608(b)(1) repeals subtitle C of Title VII of the 
Stewart B. McKinney Homeless Assistance Act, except section 
738.
    Section 608(b)(2) makes technical and conforming changes to 
the table of contents of the Stewart B. McKinney Homeless 
Assistance Act.
    Section 609 sets an effective date of October 1, 1996, for 
this title.

                  Oversight Findings of the Committee

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives and clause 2(b)(1) of 
rule X of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in the body of this report.

                     Inflationary Impact Statement

    In compliance with clause 2(l)(4) of Rule XI of the Rules 
of the House of Representatives, the Committee estimates that 
the enactment into law of H.R. 1617 will have no significant 
inflationary impact on prices and costs in the operation of the 
national economy. It is the judgment of the Committee that the 
inflationary impact of this legislation as a component of the 
federal budget is negligible.

                    Government Reform and Oversight

    With respect to the requirement of clause 2(l)(3)(D) of 
Rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 1617.

                           Committee Estimate

    Clause 7 of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 1617. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                Application of Law to Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. This bill provides funds to States for programs and 
services to eligible recipients; the bill does not prohibit 
legislative branch employees from otherwise being eligible for 
such services.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget & Impoundment 
Control Act requires a statement of whether the provisions of 
the reported bill include unfunded mandates; the bill provides 
funds for administration of the programs authorized under this 
bill at the state and local level and as such does not contain 
any unfunded mandates.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the House of Representatives and section 308(a) of 
the Congressional Budget Act of 1974 and with respect to 
requirements of clause 2(l)(3)(C) of rule XI of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 1617 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 19, 1995.
Hon. William F. Goodling,
Chairman, Committee on Economic and Educational Opportunities, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 1617, the Consolidated and Reformed Education, 
Employment, and Rehabilitation Systems (CAREERS) Act as ordered 
reported by the House Committee on Economic and Educational 
Opportunities on May 24, 1995.
    Enactment of H.R. 1617 would affect direct spending. 
Therefore, pay-as-you-go procedures would apply to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Christi 
Hawley and Deborah Kalcevic.
            Sincerely,
                                                   June E. O'Neill.

               congressional budget office cost estimate

    1. Bill number: H.R. 1617.
    2. Bill title: Consolidated and Reformed Education, 
Employment, and Rehabilitation Systems (CAREERS) Act.
    3. Bill status: As ordered reported by the House Committee 
on Economic and Educational Opportunities on May 24, 1995.
    4. Bill purpose: H.R 1617 would repeal the authorizations 
of appropriations for many education, job training, and 
vocational rehabilitation programs. This bill also would modify 
other education and labor programs for the purpose of 
consolidating and reforming workforce development and literacy 
programs. In place of the programs repealed, four new 
consolidated state grant programs would be established 
beginning in 1997, and a substantially revised and consolidated 
vocational rehabilitation state grant program would be phased 
in by 1999. The four new consolidated state grants created by 
the bill would be: the Youth Workforce Preparation and 
Development Consolidation Grant; the Adult Employment and 
Training Consolidation Grant; the Adult Education and Family 
Literacy Consolidation Grant; and the Library Technology 
Consolidation Grant.
    5. Estimated cost to the Federal Government: Most of the 
spending that would occur under H.R. 1617 would be subject to 
the availability of appropriated funds. For purposes of this 
estimate, CBO assumes that the bill will be enacted by the end 
of this fiscal year, and that the funds authorized by the bill 
for the 1996-2000 period will be appropriated. In general, the 
effective dates stated in the bill are fiscal year 1997 for 
Titles I, II, III, IV, and VI, and fiscal year 1996 for Title 
V. Estimated outlays are based on historical spending patterns 
of programs administered by the Department of Education and the 
Department of Labor that are similar in nature to the block 
grants created by the bill.
    This bill also would affect direct spending by mandating 
that programs currently authorized under Titles II-VII of the 
Rehabilitation Act of 1973 be subject to annual appropriation 
action. Currently, these programs are considered mandatory 
spending under the Budget Enforcement Act.
    The following table summarizes the estimated budgetary 
impact of the bill, with discretionary authorizations adjusted 
for inflation where such sums as necessary are authorized. 
Total direct spending under this bill would be $11.2 billion in 
outlays over five years from 1996 to 2000, compared with $12.7 
billion under current law. The authorizations of appropriations 
total $34.2 billion for the same five-year period. Table 1 
(attached) provides details on the costs and savings associated 
with individual provisions.

        PROJECTED SPENDING UNDER H.R. 1617--INCLUDING INFLATION ADJUSTMENT FOR UNSPECIFIED AUTHORIZATIONS       
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                   1995       1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
                DIRECT SPENDING                                                                                 
Projected spending under current law:                                                                           
    Estimated budget authority................      2,361      2,408      2,483      2,551      2,627      2,707
    Estimated outlays.........................      2,343      2,391      2,464      2,532      2,607      2,685
Proposed changes:                                                                                               
    Estimated budget authority................         --       -301       -311       -322       -333       -345
    Estimated outlays.........................         --       -232       -297       -319       -330       -342
Direct spending under H.R. 1617:                                                                                
    Estimated budget authority................      2,361      2,106      2,172      2,228      2,294      2,362
    Estimated outlays.........................      2,343      2,160      2,167      2,213      2,277      2,344
                                                                                                                
        AUTHORIZATION OF APPROPRIATIONS                                                                         
Spending under current law:                                                                                     
    Estimated authorizations..................      7,174      7,407      5,967      6,180      6,393      6,469
    Estimated outlays.........................      6,590      6,983      7,108      6,264      6,172      6,337
Proposed changes:                                                                                               
    Estimated authorizations..................         --        297        377        501        230        383
    Estimated outlays.........................         --        229        392        504        287        265
Authorization appropriations under H.R. 1617:                                                                   
    Authorization level.......................      7,174      7,704      6,344      6,680      6,623      6,851
    Estimated outlays.........................      6,590      7,212      7,501      6,768      6,459     6,602 
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding.                                                               
Note:--Authorizations of Education programs assume a one-year extension as provided under the General Education 
  Provisions Act (GEPA).                                                                                        

    The following table shows spending under H.R. 1617 without 
adjustments for inflation where such sums as necessary as 
authorized. When inflation is not considered, estimated direct 
spending is the same as in the above tables, but the 
authorizations of appropriations total is $32.3 billion over 
the 1996-2000 period. The details on the costs and savings 
associated with individual provisions are shown in Table 2 
(attached).

         PROJECTED SPENDING UNDER H.R. 1617--WITH NO INFLATION ADJUSTMENT FOR UNSPECIFIED AUTHORIZATIONS        
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                   1995       1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
                DIRECT SPENDING                                                                                 
                                                                                                                
Project spending under current law:                                                                             
    Estimated budget authority................      2,361      2,408      2,483      2,551      2,627      2,707
    Estimated outlays.........................      2,343      2,391     2,464,      2,532      2,607      2,685
Proposed changes:                                                                                               
    Estimated budget authority................  .........       -301       -311       -322       -333       -345
    Estimated outlays.........................  .........       -232       -297       -319       -330       -342
Direct spending under H.R. 1617:                                                                                
    Estimated budget authority................      2,361      2,106      2,172      2,228      2,294      2,362
    Estimated outlays.........................      2,343      2,160      2,167      2,213      2,277      2,344
                                                                                                                
        AUTHORIZATION OF APPROPRIATIONS                                                                         
                                                                                                                
Spending under current law:                                                                                     
    Estimated authorizations..................      7,174      7,169      5,585      5,585      5,585      5,460
    Estimated outlays.........................      6,589      6,966      6,916      5,907      5,614      5,570
Proposed changes:                                                                                               
    Estimated authorizations..................  .........        287        662        772        524        649
    Estimated outlays.........................  .........        221        386        711        568        549
Authorization of appropriations under H.R.                                                                      
 1617:                                                                                                          
    Authorization level.......................      7,174      7,456      6,247      6,357      6,110      6,110
    Estimated outlays.........................      6,589      7,187      7,301      6,618      6,183      6,119
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding.                                                               
Note.--Authorizations of Education programs assume a one-year extension as provided under the General Education 
  Provisions Act (GEPA).                                                                                        

    The costs of this bill fall within budget function 500.
    6. Basis of estimate:

Direct spending

    H.R. 1617 would mandate that numerous categorical 
vocational rehabilitation programs authorized under Titles II-
VII of the Rehabilitation Act be subject to annual 
appropriations action. Currently, these programs, which 
received a total of $291 million in appropriations for fiscal 
year 1995, are considered mandatory spending under the Budget 
Enforcement Act. Establishing these programs as discretionary 
grant programs as of fiscal year 1996 would reduce direct 
spending outlays by $232 million in 1996, and by $1.5 billion 
over the 1996-2000 period. Most of these programs would remain 
in place but would be subject to appropriations action. 
Therefore, the spending would become subject to control under 
the discretionary spending limits. In addition to requiring 
that these programs be subject to annual appropriations, this 
bill would repeal the authorization of appropriations for 
several of these programs. Beginning in fiscal year 1996, the 
authorizations would be repealed for recreational programs, 
migratory worker programs, innovation and expansion programs, 
loan guarantee programs, and demonstration and training 
programs authorized under Title VIII. Beginning in fiscal year 
1999, the authorizations would be repealed for the supported 
employment grants and the project with industry program.
    Funds for the basic state grants for vocational 
rehabilitation services are considered mandatory spending under 
the Budget Enforcement Act. H.R. 1617 would make substantial 
changes to this program. Current state requirements for the use 
of the funds and the operations of the program would be reduced 
and streamlined. Similar to the new grants established in 
Titles II-IV, vocational rehabilitation training would be 
coordinated through the new one-stop career center system 
established in Title I. In addition, states would be required 
to establish a voucher system for training services. In 1995, 
the basic state grant program was funded at $2.1 billion. The 
revised program authorized under H.R. 1617 would retain the 
current legislative language for the program's funding 
mechanism. Each year's authorized funding level would be the 
preceding year's appropriation level adjusted for projected 
inflation. Because this funding level would not be altered, 
there would be no direct spending effect from the programmatic 
changes. The new program structure is effective for fiscal year 
1999.

Authorizations of appropriations

    Titles II, III, and IV would establish four new 
consolidation grants to states. Each of the four grants would 
serve a particular population or need--youth, adults, families, 
or libraries. If the programs are funded at the authorized 
levels, new budget authority for these grants would total 
nearly $5 billion in fiscal year 1997, the first year in which 
these grants are authorized.
    Title VI would repeal several existing job training and 
education programs. Budget authority savings from these repeals 
relative to current authorization levels without inflation 
adjustments would be 
nearly $4.5 billion in fiscal year 1997, the year in which 
these repeals take effect (see Table 2, attached). After 
accounting for the new authorizations provided by the bill, the 
total 1997 authorization levels for these types of programs 
under H.R. 1617 would be $662 million more than the estimated 
authorized levels under current law without discretionary 
inflation. Two factors account for this increase. One is the 
provisions of Title V that switches close to $300 million for 
vocation rehabilitation programs from mandatory to 
discretionary spending. The other is the fact that many of the 
programs repealed are not authorized past fiscal year 1996, and 
thus, spending for those programs in 1997 and beyond is not 
included in the comparison.
    The effect of the bill becomes more clear when authorized 
levels for 1997 and beyond are compared to 1995 funding levels. 
On this basis, the bill would result in a net reduction in 
budget authority of $1.2 billion for fiscal year 1997 and $1.1 
billion a year over the 1998-2000 period. Table 3 (attached) 
shows the changes proposed in H.R. 1617 relative to the 1995 
funding levels.
    Title II. This title would create a Youth Development and 
Career Preparation Consolidation Grant. The purpose of the 
grant is to provide states and local communities with funding 
and flexibility in designing workforce preparation programs. 
The grant program would be authorized at $2.3 billion for 
fiscal year 1997 and such sums as necessary for each fiscal 
year 1998-2002. Funds are to be appropriated on a forward-
funded, or program-year basis; funds would become available 
July 1 of the year for which funds were appropriated. Because 
both the vocational education and JTPA youth programs are 
currently funded in this manner, estimated outlays reflect the 
spending patterns of the current programs.
    Title III. This title would establish an Adult Employment 
and Training Consolidation Grant. The purpose of the grant is 
to fund a system of employment, job training, and related 
services designed to help adults gain private sector 
employment. The bill would authorize this program at $2.3 
billion for fiscal year 1997 and such sums as necessary for 
each fiscal year 1998-2002. As with the program authorized by 
Title II, these grants are to be forward-funded, an arrangement 
similar to the one currently used by existing JTPA employment 
and training programs for adults and dislocated workers. 
Therefore, estimated outlays reflect the spending patterns of 
the current programs.
    Title IV. This title would create two new grant programs: 
one for adult education and family literacy and one for library 
services and technology. An Adult Education and Family Literacy 
Consolidation Grant program would be established to provide 
adults with basic educational and literacy skills, as well as 
to fund the National Institute on Literacy. The authorization 
of appropriations for this grant would be $280 million for 
fiscal year 1997 and such sums as necessary for each fiscal 
year from 1998 to 2002. This grant would be forward-funded, 
similar to existing adult education and literacy programs. 
Consequently, estimated outlays reflect spending patterns of 
current programs.
    A Library Services and Technology Consolidation Grant 
program also would be established. The purpose of this grant 
would be to consolidate federal library service programs, 
improve public access to information through electronic 
networks, and provide linkages among and between libraries and 
one-stop career center systems. This program would be 
authorized at $110 million for each of the fiscal years 1997 
through 2002. The Library Services and Technology Consolidation 
Grant program would be advance-funded; funds appropriated in 
one fiscal year would not become available for obligation until 
the following year. In contrast, existing library services 
grants are funded on a current-year basis. Estimated outlays 
for the new grant program reflect the assumption that outlays 
in the second year would be similar to the current program's 
pattern over the first two years.
    Title V. As discussed above under direct spending, H.R. 
1617 would mandate that the categorical vocational 
rehabilitation programs authorized under Titles II-VII of the 
rehabilitation Act be subject to annual appropriations action. 
The current authorization of appropriations expires at the end 
of 1998 for the special demonstration programs, supported 
employment projects, projects with industry, client assistance, 
supported employment grants, protection and advocacy, and the 
National Institute on Disability. The training grants are 
permanently authorized. Estimated authorization levels reflect 
the 1995 appropriations, and estimated outlays reflect the 
current programs' spending patterns.
    Title VI. This title would repeal certain existing 
education and job training programs beginning in fiscal year 
1997. Programs repealed under this title include the Vocational 
Education Programs, the School-to-Work Opportunities Act, the 
Adult Education Act, the National Literacy Act, the Library 
Services Construction Act, the Technology for Education Act, 
and the Job Training Partnership Act (except for the Job Corps 
and Veterans portions). Many of the programs that are repealed 
are authorized but have not received an appropriation. In other 
instances, authorizations expire prior to the repeal date. 
Overall, savings from repealing these programs as measured from 
the authorized level are significantly less than the savings as 
measured from baseline projections.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. The pay-as-you-go effects of 
the bill are as follows:

------------------------------------------------------------------------
                                 1995       1996       1997       1998  
------------------------------------------------------------------------
Change in outlays...........  .........       -232       -297       -319
Change in receipts..........      (\1\)      (\1\)      (\1\)      (\1\)
------------------------------------------------------------------------
Not applicable.                                                         

    8. Estimated cost to state and local governments: H.R. 1617 
would require certain actions by the states in order for them 
to receive funding under any of the block grant programs it 
would establish. Many of the processes required in the act are 
similar to current requirements. However, application and 
reporting requirements, as well as funding streams, are 
consolidated under this bill, which could provide for 
administrative efficiencies at the state level.
    This bill would have the effect of reducing federal funding 
for education and job training programs by about $1.1 billion 
per year, as measured from the fiscal year 1995 spending 
levels. No state match of resources or maintenance of effort is 
required for a state to receive funds under titles I, II, and 
III of the CAREERS Act. Some states may choose to devote 
additional state funds to continue current service levels; 
others could maintain their current efforts; and still others 
could choose to reduce current state spending for education and 
job training.
    Title IV requires a state match of 25 percent on programs 
relating to adult education and family literacy services. This 
match is similar to that required under current law for adult 
education state grants. Title V retains the current state 
matching requirements for vocational rehabilitation services.
    H.R. 1617 would require the governors to establish 
statewide criteria for workforce development boards to 
designate one-stop career center systems. These one-stop career 
centers would include common intake, preliminary assessment, 
and integrated job search assistance. Any entity or consortium 
of entities located in the workforce development area may be 
designated to operate a one-stop career center. Some states 
already have received preliminary grants for the development of 
one-stop career centers. Other states may incur some 
incremental costs for establishing such centers.
    The bill also would establish a performance accountability 
system that would require states to establish indicators, which 
would take into account specific attributes of the local 
workforce development areas. If a state is found to have poor 
performance according to the criteria it establishes, it must 
receive technical guidance from the Department of Labor or the 
Department of Education, as appropriate. If the state is found 
to have poor performance for a second consecutive year, the 
state may receive up to a 5 percent reduction in its grant 
funds. At the local level, governors would be permitted to 
sanction workforce development boards that are found to have 
poor performance for two consecutive years. These sanctions may 
include withholding funds or redesignation of the workforce 
development board.
    Under H.R. 1617, funding to states for vocational 
rehabilitation programs would be maintained at about the 1995 
level.
    9. Estimate comparison: None.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Christi Hawley and Deborah 
Kalcevic
    12. Estimate approved by: Robert A. Sunshine, for Paul N. 
Van de Water, Assistant Director for Budget Analysis.

         TABLE 1.--PROJECTED SPENDING UNDER H.R. 1617 INCLUDING INFLATION FOR UNSPECIFIED AUTHORIZATIONS        
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                   1995       1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
                DIRECT SPENDING                                                                                 
                                                                                                                
Projected spending under current law:                                                                           
    Estimated budget authority................      2,361      2,408      2,483      2,551      2,627      2,707
    Outlays...................................      2,343      2,391      2,464      2,532      2,607      2,685
               PROPOSED CHANGES                                                                                 
Vocational Rehabilitation Act Programs:                                                                         
    Estimated budget authority................  .........       -301       -311       -322       -333       -345
    Outlays...................................  .........       -232       -297       -319       -330       -342
Direct spending under H.R. 1617:                                                                                
    Estimated budget authority................      2,361      2,106      2,172      2,228      2,294      2,362
    Outlays...................................      2,343      2,160      2,167      2,213      2,277      2,344
                                                                                                                
        AUTHORIZATION OF APPROPRIATIONS                                                                         
                                                                                                                
Authorizations under current law:                                                                               
    Estimated authorization...................      7,174      7,407      5,967      6,180      6,393      6,469
    Outlays...................................      6,590      6,983      7,108      6,264      6,172      6,337
                                                                                                                
               PROPOSED CHANGES                                                                                 
                                                                                                                
           Titles IHV: New Programs                                                                             
                                                                                                                
Youth development and career preparation                                                                        
 consolidation grant:                                                                                           
    Estimated authorization...................  .........  .........      2,308      2,390      2,472      2,559
    Outlays...................................  .........  .........        146      1,796      2,354      2,459
Adult employment and training consolidation                                                                     
 grant:                                                                                                         
    Estimated authorization...................  .........  .........      2,263      2,344      2,424      2,509
    Outlays...................................  .........  .........         83      1,831      2,269      2,410
Adult education and family literacy                                                                             
 consolidation grant:                                                                                           
    Estimated authorization...................  .........  .........        280        290        300        310
    Outlays...................................  .........  .........         34        225        284        299
Library services and technology consolidation                                                                   
 grant:                                                                                                         
    Estimated authorization...................  .........  .........  .........        110        110        110
    Outlays...................................  .........  .........  .........         85        110        110
      Subtotal, Titles II-IV:                                                                                   
        Estimated authorization...............  .........  .........      4,852      5,134      5,307      5,489
        Outlays...............................  .........  .........        263      3,938      5,017      5,278
                                                                                                                
Title V: Vocational Rehabilitation act Changes                                                                  
                                                                                                                
    Estimated authorization...................  .........        297        307        318         45         47
    Outlays...................................  .........        229        293        315        108         57
                                                                                                                
           Title VI: Program Repeals                                                                            
                                                                                                                
Carl Perkins Vocational Education and Applied                                                                   
 Technology Education Act:                                                                                      
    Estimated authorization...................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
School to Work Opportunities Act:                                                                               
    Estimated authorization...................  .........  .........       -267       -277       -286       -148
    Outlays...................................  .........  .........        -32       -215       -270       -267
Adult Education Act:                                                                                            
    Estimated authorization...................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
National Literacy Act:                                                                                          
    Estimated authorization...................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
Library Services and Construction Act:                                                                          
    Estimated authorization...................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
Technology for Education Act, Part F:                                                                           
    Estimated authorization...................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
Job Training Partnership Act, except Job Corps                                                                  
 and Veterans:                                                                                                  
    Estimated authorization...................  .........  .........     -4,504     -4,665     -4,825     -4,994
    Outlays...................................  .........  .........       -130     -3,526     -4,556     -4,792
Stewart B. McKinney Homeless Programs for                                                                       
 Literacy Training and Job Training:                                                                            
    Estimated authorization...................  .........  .........        -10        -11        -11        -11
    Outlays...................................  .........  .........         -1         -8        -10        -11
                                               =================================================================
      Subtotal, Title VI:                                                                                       
        Estimated authorization...............  .........  .........     -4,781     -4,952     -5,122     -5,153
        Outlays...............................  .........  .........       -163     -3,748     -4,837     -5,070
                                               =================================================================
      Total change:                                                                                             
        Estimated authorization...............  .........        297        377        501        230        383
        Outlays...............................  .........        229        392        504        287        265
Authorizations under H.R. 1617:                                                                                 
    Estimated authorization...................      7,174      7,704      6,344      6,680      6,623      6,851
    Outlays...................................      6,590      7,212      7,501      6,768      6,459      6,602
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding.                                                               
                                                                                                                
Note: Authorizations of education programs assume a one-year extension as provided under the General Education  
  Provisions Act.                                                                                               


         TABLE 2.--PROJECTED SPENDING UNDER H.R. 1617 INCLUDING INFLATION FOR UNSPECIFIED AUTHORIZATIONS        
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                   1995       1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
                DIRECT SPENDING                                                                                 
                                                                                                                
Projected spending under current law:                                                                           
    Estimated budget authority................      2,361      2,408      2,483      2,551      2,627      2,707
    Outlays...................................      2,343      2,391      2,464      2,532      2,607      2,685
                                                                                                                
               PROPOSED CHANGES                                                                                 
                                                                                                                
Vocational Rehabilitation Act Programs:                                                                         
    Estimated budget authority................  .........       -301       -311       -322       -333       -345
    Outlays...................................  .........       -232       -297       -319       -330       -342
Direct spending under H.R. 1617:                                                                                
    Estimated budget authority................      2,361      2,106      2,172      2,228      2,294      2,362
    Outlays...................................      2,343      2,160      2,167      2,213      2,277      2,344
                                                                                                                
        AUTHORIZATION OF APPROPRIATIONS                                                                         
                                                                                                                
Authorizations under current law:                                                                               
    Estimated authorization...................      7,174      7,169      5,585      5,585      5,585      5,460
    Outlays...................................      6,589      6,966      6,916      5,907      5,614      5,570
                                                                                                                
               PROPOSED CHANGES                                                                                 
                                                                                                                
          Titles II-IV: New Programs                                                                            
                                                                                                                
Youth development and career preparation                                                                        
 consolidation grant:                                                                                           
    Estimated authorization...................  .........  .........      2,308      2,308      2,308      2,308
    Outlays...................................  .........  .........        146      1,791      2,285      2,308
Adult employment and training consolidation                                                                     
 grant:                                                                                                         
    Estimated authorization...................  .........  .........      2,263      2,263      2,263      2,263
    Outlays...................................  .........  .........         83      1,828      2,201      2,263
Adult education and family literacy                                                                             
 consolidation grant:                                                                                           
    Estimated authorization...................  .........  .........        280        280        280        280
    Outlays...................................  .........  .........         34        224        274        280
Library services and technology consolidation                                                                   
 grant:                                                                                                         
    Estimated authorization...................  .........  .........  .........        110        110        110
    Outlays...................................  .........  .........  .........         85        110        110
                                               =================================================================
      Subtotal, Titles II-IV:                                                                                   
        Estimated authorization...............  .........  .........      4,852      4,962      4,962      4,962
        Outlays...............................  .........  .........        263      3,928      4,871      4,962
                                                                                                                
Title V: Vocational Rehabilitation Act Changes                                                                  
                                                                                                                
    Estimated authorization...................  .........        287        287        287         40         40
    Outlays...................................  .........        221        276        287         97         50
                                                                                                                
           Title VI: Program Repeals                                                                            
                                                                                                                
Carl Perkins Vocational Education and Applied                                                                   
 Technology Education Act:                                                                                      
    Estimated authorization...................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
School to Work Opportunities Act:                                                                               
    Estimated authorization...................  .........  .........       -250       -250       -250       -125
    Outlays...................................  .........  .........        -30       -200       -245       -235
Adult Education Act:                                                                                            
    Estimated authorization...................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
National Literacy Act:                                                                                          
    Estimated authorization...................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
Library Services and Construction Act:                                                                          
    Estimated authorization...................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
Technology for Education Act, Part F:                                                                           
    Estimated authorization...................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
Job Training Partnership Act, Except Job Corps                                                                  
 and Veterans:                                                                                                  
    Estimated authorization...................  .........  .........     -4,218     -4,218     -4,218     -4,218
    Outlays...................................  .........  .........       -121     -3,297     -4,145     -4,218
Stewart B. McKinney Homeless Programs for                                                                       
 Literacy Training and Job Training:                                                                            
    Estimated authorization...................  .........  .........         -9         -9         -9         -9
    Outlays...................................  .........  .........         -1         -8         -9         -9
                                               =================================================================
      Subtotal, Title VI:                                                                                       
        Estimated authorization...............  .........  .........     -4,477     -4,477     -4,477     -4,352
        Outlays...............................  .........  .........       -153     -3,504     -4,399     -4,462
                                               =================================================================
      Total change:                                                                                             
        Estimated authorization...............  .........        287        662        772        524        649
        Outlays...............................  .........        221        386        711        568        549
Authorizations under H.R. 1617:                                                                                 
    Estimated authorization...................      7,174      7,456      6,247      6,357      6,110      6,110
    Outlays...................................      6,589      7,187      7,301      6,618      6,183      6,119
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding.                                                               
                                                                                                                
Note: Authorizations of education programs assume a one-year extension as provided under the General Education  
  Provisions Act.                                                                                               


 TABLE 3.--PROJECTED DISCRETIONARY SPENDING CHANGES INCLUDED IN H.R. 1617 ESTIMATED RELATIVE TO THE CBO FEBRUARY
1995 BASELINE WITHOUT DISCRETIONARY INFLATION (WODI) ADJUSTMENTS AND EXCLUDING PROGRAMS AUTHORIZED UNDER TITLE V
                                                       \1\                                                      
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                   1995       1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
            DISCRETIONARY SPENDING                                                                              
                                                                                                                
Current programs included in CBO baseline                                                                       
 without discretionary inflation:                                                                               
    Budget authority..........................      7,174      7,174      7,174      7,174      7,174      7,174
    Outlays...................................      6,589      6,966      7,142      7,171      7,174      7,174
                                                                                                                
               PROPOSED CHANGES                                                                                 
                                                                                                                
          Titles II-IV: New Programs                                                                            
                                                                                                                
Youth development and career preparation                                                                        
 consolidation grant:                                                                                           
    Budget authority..........................  .........  .........      2,308      2,308      2,308      2,308
    Outlays...................................  .........  .........        146      1,791      2,285      2,308
Adult employment and training consolidation                                                                     
 grant:                                                                                                         
    Budget authority..........................  .........  .........      2,263      2,263      2,263      2,263
    Outlays...................................  .........  .........         83      1,828      2,201      2,263
Adult education and family literacy                                                                             
 consolidation grant:                                                                                           
    Budget authority..........................  .........  .........        280        280        280        280
    Outlays...................................  .........  .........         34        224        274        280
Library services and technology consolidation                                                                   
 grant:                                                                                                         
    Budget authority..........................  .........  .........  .........        110        110        110
    Outlays...................................  .........  .........  .........         85        110        110
      Subtotal, Titles II-IV:                                                                                   
        Budget authority......................  .........  .........      4,852      4,962      4,962      4,962
        Outlays...............................  .........  .........        263      3,928      4,871      4,962
                                                                                                                
Title V: Vocational Rehabilitation Act Changes                                                                  
                                                                                                                
    Budget authority..........................  .........      (\1\)      (\1\)      (\1\)      (\1\)      (\1\)
    Outlays...................................  .........      (\1\)      (\1\)      (\1\)      (\1\)      (\1\)
                                                                                                                
           Title VI: Program Repeals                                                                            
                                                                                                                
Carl Perkins Vocational Education and Applied                                                                   
 Technology Education Act:                                                                                      
    Budget authority..........................  .........  .........     -1,171     -1,171     -1,171     -1,171
    Outlays...................................  .........  .........       -141       -937     -1,148     -1,171
School to Work Opportunities Act:                                                                               
    Budget authority..........................  .........  .........       -250       -250       -250       -250
    Outlays...................................  .........  .........        -30       -200       -245       -250
Adult Education Act:                                                                                            
    Budget authority..........................  .........  .........       -269       -269       -269       -269
    Outlays...................................  .........  .........        -32       -215       -264       -269
National Literacy Act:                                                                                          
    Budget authority..........................  .........  .........         -5         -5         -5         -5
    Outlays...................................  .........  .........         -1         -4         -5         -5
Library Services and Construction Act:                                                                          
    Budget authority..........................  .........  .........       -133       -133       -133       -133
    Outlays...................................  .........  .........        -48        -98       -133       -133
Technology for Education Act, Part F:                                                                           
    Budget authority..........................  .........  .........          0          0          0          0
    Outlays...................................  .........  .........          0          0          0          0
Job Training Partnership Act, except Job                                                                        
 Corps:                                                                                                         
    Budget authority..........................  .........  .........     -4,218     -4,218     -4,218     -4,218
    Outlays...................................  .........  .........       -121     -3,297     -4,145     -4,218
Stewart B. McKinney Homeless Programs for                                                                       
 Literacy Training and Job Training:                                                                            
    Budget authority..........................  .........  .........        -15        -15        -15        -15
    Outlays...................................  .........  .........         -2        -12        -14        -15
      Subtotal, Title VI:                                                                                       
        Budget authority......................  .........  .........     -6,060     -6,060     -6,060     -6,060
        Outlays...............................  .........  .........       -375     -4,763     -5,953     -6,061
      Total change:                                                                                             
        Budget authority......................  .........  .........     -1,208     -1,098     -1,098     -1,098
        Outlays...............................  .........  .........       -112       -835     -1,082     -1,099
Current Programs Included in CBO Baseline                                                                       
 Without Discretionary Inflation Revised for                                                                    
 H.R. 1617:                                                                                                     
    Budget authority..........................      7,174      7,174      5,966      6,076      6,076      6,076
    Outlays...................................      6,589      6,966      7,030      6,336      6,092      6,075
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding.                                                               
                                                                                                                
\1\ The title V Vocational Rehabilitation Act changes switch the curernt programs from the direct category to   
  the discretionary category but do not, for the most part, alter the programs. Therefore, vocational           
  rehabilitation programs have not been included in this table designed to show program increases and decreases.

             Motion to Order Reported H.R. 1617, as Amended

    The bill H.R. 1617 as amended was ordered reported 
favorably to the House by a vote of 29 ayes to 5 noes, on May 
24, 1995.
    The roll call vote is as follows:
        AYES                          NOES
Chairman Goodling                   Mr. Miller
Mr. Petri                           Mr. Owens
Mrs. Roukema                        Mr. Payne
Mr. Gunderson                       Mrs. Mink
Mr. Fawell                          Mr. Becerra
Mr. Ballenger
Mr. Barrett
Mr. Cunningham
Mr. Hoekstra
Mr. McKeon
Mr. Castle
Mr. Johnson
Mr. Talent
Mr. Hutchinson
Mr. Riggs
Mr. Graham
Mr. Weldon
Mr. Funderburk
Mr. Souder
Mr. Clay
Mr. Kildee
Mr. Williams
Mr. Martinez
Mr. Andrews
Mr. Reed
Mr. Roemer
Mr. Scott
Mr. Green
Ms. Woolsey

Motion to Adopt the Goodling Amendment in the Nature of a Substitute as 
                                Amended

    The Goodling substitute to the bill H.R. 1617 was adopted 
with amendments by voice vote on May 24, 1995. The substitute 
makes a number of technical and clarifying changes to the bill, 
including: changes to several of the definitions included in 
Title I; a clarification that representatives of community 
colleges, employees, and veterans are part of the State 
collaborative process; a clarification that representatives of 
education, community-based organizations, employees, and 
veterans will serve on local workforce development boards; 
changes in the Youth title, reflecting input from the education 
community and others; additional language ensuring that 
vocational rehabilitation services are provided as an integral 
part of this legislation; and number of clarifying changes, 
highlighting the important role of the Governor, and the 
collaborative process at the State level, in the overall design 
of the workforce development and literacy system within each 
State.
                          Votes on Amendments

    The Committee defeated an amendment (13 ayes to 22 noes) 
offered by Mr. Owens as a substitute to Title V of the bill 
relating to Title I of the Rehabilitation Act of 1973. The 
Owens amendment would amend the State plan requirement section 
of the Rehabilitation Act to include, among others, the 
following provisions: requires the State to designate an agency 
to be responsible for vocational rehabilitation; requires the 
State to describe how it will provide vocational rehabilitation 
services through and in coordination with the one-stop career 
centers under the CAREERS Act; requires the State to describe a 
comprehensive system of personnel development within the State 
(including national or State certification and licensing 
requirements); requires development of an individualized 
written rehabilitation program for each participant; requires 
the State to collect data as required by the Commissioner of 
the Rehabilitation Service Administration; requires the State 
to provide for information and referral programs; requires the 
State to conduct public meetings and provide for public 
comment; and establishes a State Rehabilitation Advisory 
Council. The substitute also would require the State to spend 
1.5 percent of its allotment for activities to improve quality 
of vocational rehabilitation services and coordination of 
services with the one-stop career center system in the CAREERS 
Act. The Substitute also would repeal part C of Title I, 
relating to development of strategic plans by the State.
    The roll call vote is as follows:

        AYES                          NOES
Mr. Williams                        Chairman Goodling
Mr. Martinez                        Mr. Petri
Mr. Owens                           Mrs. Roukema
Mr. Sawyer                          Mr. Gunderson
Mr. Payne                           Mr. Fawell
Mrs. Mink                           Mr. Ballenger
Mr. Andrews                         Mr. Barrett
Mr. Reed                            Mr. Cunningham
Mr. Roemer                          Mr. Hoekstra
Mr. Becerra                         Mr. McKeon
Mr. Scott                           Mr. Castle
Mr. Green                           Mr. Johnson
Mr. Reynolds                        Mr. Talent
                                    Mr. Hutchinson
                                    Mr. Knollenberg
                                    Mr. Riggs
                                    Mr. Graham
                                    Mr. Weldon
                                    Mr. Funderburk
                                    Mr. Souder
                                    Mr. McIntosh
                                    Mr. Norwood

    The Committee defeated an amendment (16 ayes to 19 noes) 
offered by Mr. Green of Texas to strike Title V of the bill, 
relating to provision of vocational rehabilitation services to 
individuals with disabilities.

        AYES                          NOES
Mr. Williams                        Chairman Goodling
Mr. Martinez                        Mr. Petri
Mr. Owens                           Mrs. Roukema
Mr. Sawyer                          Mr. Fawell
Mr. Payne                           Mr. Ballenger
Mrs. Mink                           Mr. Barrett
Mr. Andrews                         Mr. Cunningham
Mr. Reed                            Mr. Hoekstra
Mr. Roemer                          Mr. McKeon
Mr. Engel                           Mr. Castle
Mr. Becerra                         Mr. Johnson
Mr. Scott                           Mr. Talent
Mr. Green                           Mr. Hutchinson
Ms. Woolsey                         Mr. Knollenberg
Mr. Romero-Barcelo                  Mr. Riggs
Mr. Reynolds                        Mr. Graham
                                    Mr. Funderburk
                                    Mr. Souder
                                    Mr. McIntosh

    The Committee defeated an amendment (12 ayes to 19 noes) 
offered by Mrs. Mink to Title II of the bill. The amendment 
targeted the 20% of the locally driven youth funds that the 
Governor, through the collaborative process, has discretion to 
apply to the in-school or at-risk/out-of-school youth programs. 
Mrs. Mink's amendment would have required the State provide 
competitive grants with the funds for the purpose of providing 
programs to single parents, displaced homemakers and single 
pregnant women and for programs that eliminate sex bias.
    The roll call vote is as follows:
        AYES                          NOES
Mr. Kildee                          Chairman Goodling
Mr. Martinez                        Mr. Petri
Mr. Owens                           Mrs. Roukema
Mr. Sawyer                          Mr. Gunderson
Mr. Payne                           Mr. Fawell
Mrs. Mink                           Mr. Ballenger
Mr. Andrews                         Mr. Barrett
Mr. Reed                            Mr. Cunningham
Mr. Roemer                          Mr. Hoekstra
Mr. Scott                           Mr. McKeon
Mr. Green                           Mr. Talent
Ms. Woolsey                         Mr. Greenwood
                                    Mr. Knollenberg
                                    Mr. Riggs
                                    Mr. Graham
                                    Mr. Weldon
                                    Mr. Funderburk
                                    Mr. Souder
                                    Mr. McIntosh

    The Committee adopted an amendment (20 ayes to 9 noes) 
offered by Mr. Riggs and Mrs. Roukema to add a new section on 
performance and accountability in Title I, requiring the 
following: that the Secretaries of Education and Labor, in 
collaboration with States and with business, employees, 
educational agencies, service providers, etc., establish 
technical definitions of ``core indicators,'' as established 
within each of the consolidation grants under the bill, to 
ensure comparability of performance data across States; that 
the Secretaries, through this ``collaborative process'', 
identify world class levels of performance with respect to 
appropriate core indicators, selected from among those 
described in Titles II-V of the bill, in order to encourage 
high levels of performance and advance the Nation's 
competitiveness; that States would be required to identify 
indicators of performance for each of the programs established 
under this Act, and for Title I of the Vocational 
Rehabilitation Act of 1973, which at a minimum take into 
account the core indicators included in the bill, and which 
take into account (but are not required to meet) the national 
indicators previously described; that Governors establish 
uniform criteria for determining performance of local 
providers, and establishing that Governors are authorized to 
provide technical assistance to locals who do not meet expected 
levels of performance after one year, and to take appropriate 
corrective action, which may include the withholding of funds 
or the redesignation of service providers, for failure to meet 
expected levels performance after a 2nd year of such failure; 
and that the Secretaries take similar corrective action as 
described above in dealing with States who fail to meet their 
own performance criteria, including the imposition of up to 5% 
of the State's subsequent year's funding from the program in 
which they failed in meeting performance goals.
    The roll call vote is as follows:

        AYES                          NOES
Chairman Goodling                   Mr. Hoekstra
Mr. Petri                           Mr. Talent
Mrs. Roukema                        Mr. Hutchinson
Mr. Cunningham                      Mr. Graham
Mr. McKeon                          Mr. Funderburk
Mr. Castle                          Mr. Souder
Mr. Knollenberg                     Mr. McIntosh
Mr. Riggs                           Mr. Owens
Mr. Weldon                          Mrs. Mink
Mr. Kildee
Mr. Williams
Mr. Martinez
Mr. Sawyer
Mr. Reed
Mr. Roemer
Mr. Engel
Mr. Becerra
Mr. Scott
Mr. Green
Ms. Woolsey

    The Committee defeated an amendment (12 ayes to 20 noes) 
offered by Ms. Woolsey to increase authorization levels for 
each of the consolidation grants established under Titles II, 
III, and IV of H.R. 1617, to the levels proposed by the 
Administration in its FY 1996 budget, equalling $2.905 billion 
for Title II, $3.225 billion for Title III, and $597 million 
for Title IV in FY 1997, and such sums thereafter.
    The roll call vote is as follows:

        AYES                          NOES
Mr. Kildee                          Chairman Goodling
Mr. Williams                        Mr. Petri
Mr. Martinez                        Mrs. Roukema
Mr. Owens                           Mr. Fawell
Mr. Sawyer                          Mr. Barrett
Mr. Reed                            Mr. Cunningham
Mr. Roemer                          Mr. Hoekstra
Mr. Becerra                         Mr. McKeon
Mr. Scott                           Mr. Castle
Mr. Green                           Mr. Johnson
Ms. Woolsey                         Mr. Talent
Mr. Reynolds                        Mr. Hutchinson
                                    Mr. Knollenberg
                                    Mr. Riggs
                                    Mr. Graham
                                    Mr. Weldon
                                    Mr. Funderburk
                                    Mr. Souder
                                    Mr. McIntosh
                                    Mr. Norwood

    The Committee defeated an amendment (12 ayes to 20 noes) 
offered by Mr. Becerra to Title II which would have changed the 
definition of ``at-risk'' youth to include only out-of-school 
youth.
    The roll call vote is as follows:

        AYES                          NOES
Mr. Miller                          Chairman Goodling
Mr. Kildee                          Mr. Petri
Mr. Williams                        Mrs. Roukema
Mr. Martinez                        Mr. Ballenger
Mr. Owens                           Mr. Barrett
Mr. Andrews                         Mr. Cunningham
Mr. Reed                            Mr. Hoekstra
Mr. Becerra                         Mr. McKeon
Mr. Scott                           Mr. Castle
Mr. Green                           Mr. Johnson
Ms. Woolsey                         Mr. Talent
Mr. Reynolds                        Mr. Hutchinson
                                    Mr. Riggs
                                    Mr. Graham
                                    Mr. Weldon
                                    Mr. Funderburk
                                    Mr. Souder
                                    Mr. McIntosh
                                    Mr. Sawyer
                                    Mr. Roemer

                             Correspondence

                     Congress of the United States,
                                  House of Representatives,
                                      Washington, DC, June 8, 1995.
Hon. William Goodling,
Chairman, Economic and Educational Opportunities Committee, Washington, 
        DC.
    Dear Mr. Chairman: I was unavoidably detained during final 
passage of H.R. 1617, the CAREERS bill, on May 24, 1995 and was 
unable to cast my vote.
    Had I been present, I would have voted ``no''. Please enter 
my statement into the record. Thank you for consideration.
            Sincerely,
                                            Eliot L. Engel,
                                                Member of Congress.
                                ------                                

                     Congress of the United States,
                                  House of Representatives,
                                      Washington, DC, May 25, 1995.
Chairman William Goodling,
Committee on Economic and Educational Opportunities, Washington, DC.
    Dear Chairman Goodling: Due to a meeting of the Committee 
on Standards, I was unable to be present for the final vote on 
reporting H.R. 1617 out of the Committee on Economic and 
Educational Opportunities.
    I would like to note for the record that if I had been 
present, I would have voted, ``aye''.
            Sincerely,
                                          Thomas C. Sawyer,
                                                Member of Congress.
         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                          ACT OF JUNE 6, 1933

             (Commonly Known as the ``Wagner-Peyser Act'')

          * * * * * * *

AN ACT To provide for the establishment of a national employment system 
 and for cooperation with the States in the promotion of such system, 
                         and for other purposes

          * * * * * * *
  Sec. 2. For purposes of this Act--
          (1) the term ``chief elected official or officials'' 
        has the same meaning given that term under the [Job 
        Training Partnership Act] Consolidated and Reformed 
        Education, Employment, and Rehabilitation Systems Act;
          [(2) the term ``private industry council'' has the 
        same meaning given that term under the Job Training 
        Partnership Act;]
          (2) the term ``local workforce development board'' 
        means a local workforce development board established 
        under title I of the Consolidated and Reformed 
        Education, Employment, and Rehabilitation Systems Act;
          (3) the term ``Secretary'' means the Secretary of 
        Labor;
          [(4) the term ``service delivery area'' has the same 
        meaning given that term under the Job Training 
        Partnership Act; and]
          (4) the term ``local workforce development area'' 
        means a local workforce development area established 
        under title I of the Consolidated and Reformed 
        Education, Employment, and Rehabilitation Systems Act;
          (5) the term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, and the Virgin Islands[.];
          (6) the term ``local public service office'' means an 
        office which provides employment services to the 
        general public under a one-stop career center system; 
        and
          (7) the term ``one-stop career center system'' means 
        a one-stop career center system established under title 
        I of the Consolidated and Reformed Education, 
        Employment, and Rehabilitation Systems Act.

                 TITLE I--GENERAL PROGRAM REQUIREMENTS
  Sec. 3. [(a) The United States Employment Service shall 
assist in coordinating the State public employment services 
throughout the country and in increasing their usefulness by 
developing and prescribing minimum standards of efficiency, 
assisting them in meeting problems peculiar to their 
localities, promoting uniformity in their administrative and 
statistical procedure, furnishing and publishing information as 
to opportunities for employment and other information of value 
in the operation of the system, and maintaining a system for 
clearing labor between the States.] (a) The Secretary of Labor 
shall, pursuant to title II of the Wagner-Peyser Act--
          (1) assist in the coordination and development of a 
        nationwide system of labor exchange services for the 
        general public, provided through the one-stop career 
        center system, in coordination with the public 
        employment services;
          (2) assist in the development of performance 
        standards, benchmarks, and continuous improvement 
        models for such nationwide system which ensures private 
        sector satisfaction and meets the demands of 
        jobseekers; and
          (3) ensure the continued services for individuals 
        receiving unemployment compensation.
  Sec. 4. In order to obtain the benefits of appropriations 
apportioned under section 5, [a State shall, through its 
legislature] the Governor of a State, through the collaborative 
process described in title I of the Consolidated and Reformed 
Education, Employment, and Rehabilitation Systems Act, accept 
the provisions of this Act and designate or authorize the 
creation of a State agency vested with all powers necessary to 
cooperate with the [United States Employment Service] Secretary 
of Labor under this Act.
  Sec. 5. (a) There is authorized to be appropriated, out of 
any money in the Treasury not otherwise appropriated, such 
amounts from time to time as the Congress may deem necessary to 
carry out the purposes of this Act, of which not less than 25 
percent shall be for carrying out both section 14 and title II 
of this Act.
          * * * * * * *
  Sec. 7. (a) * * *
  (b) Ten percent of the sums allotted to each State pursuant 
to section 6 shall be reserved for use in accordance with this 
subsection by the Governor of each such State to provide--
          (1) * * *
          (2) services for groups with special needs, carried 
        out pursuant to joint agreements between the employment 
        service and the appropriate [private industry council] 
        local workforce development board and chief elected 
        official or officials or other public agencies or 
        private nonprofit organizations; and
          * * * * * * *
  (c)(1) Funds made available to States under this section may 
be used to provide additional funds under an applicable program 
if--
          (A) * * *
  (2) For purposes of this subsection, the term ``applicable 
program'' means any program under [any of the following 
provisions of law:
          [(A) The Carl D. Perkins Vocational and Applied 
        Technology Education Act.
          [(B) Section 123, title II, and title III of the Job 
        Training Partnership Act.] Consolidated and Reformed 
        Education, Employment, and Rehabilitation Systems Act.
  (d) In addition to the services and activities otherwise 
authorized by this Act, the [United States Employment Service] 
Secretary of Labor or any State agency designated under this 
Act may perform such other services and activities as shall be 
specified in contracts for payment or reimbursement of the 
costs thereof made with the Secretary of Labor or with any 
Federal, State, or local public agency, or administrative 
entity under the [Job Training Partnership Act] Consolidated 
and Reformed Education, Employment, and Rehabilitation Systems 
Act, or private nonprofit organization.
  Sec. 8. [(a) Any State desiring to receive the benefits of 
this Act shall, by the agency designated to cooperate with the 
United States Employment Service, submit to the Secretary of 
Labor detailed plans for carrying out the provisions of this 
Act within such State.] (a) Any State desiring to receive 
assistance under this Act shall submit to the Secretary, as 
part of the State workforce development and literacy plan 
authorized under title I of the Consolidated and Reformed 
Education, Employment, and Rehabilitation Systems Act, detailed 
plans for carrying out the provisions of this Act within such 
State.
  [(b) Prior to submission of such plans to the Secretary--
          [(1) the employment service shall develop jointly 
        with each appropriate private industry council and 
        chief elected official or officials for the service 
        delivery area (designated under the Job Training 
        Partnership Act) those components of such plans 
        applicable to such area;
          [(2) such plans shall be developed taking into 
        consideration proposals developed jointly by the 
        appropriate private industry council and chief elected 
        official or officials in the service delivery area 
        affected;
          [(3) such plans shall be transmitted to the State job 
        training coordinating council (established under such 
        Act) which shall certify such plans if it determines 
        (A) that the components of such plans have been jointly 
        agreed to by the employment service and appropriate 
        private industry council and chief elected official or 
        officials; and (B) that such plans are consistent with 
        the Governor's coordination and special services plan 
        under the Job Training Partnership Act;
          [(4) if the State job training coordinating council 
        does not certify that such plans meet the requirements 
        of clauses (A) and (B) of paragraph (3), such plans 
        shall be returned to the employment service for a 
        period of thirty days for it to consider, jointly with 
        the appropriate private industry council and chief 
        elected official or officials, the council's 
        recommendations for modifying such plans; and
          [(5) if the employment service and the appropriate 
        private industry council and chief elected official or 
        officials fail to reach agreement upon such components 
        of such plans to be submitted finally to the Secretary, 
        such plans submitted by the State agency shall be 
        accompanied by such proposed modifications as may be 
        recommended by any appropriate disagreeing private 
        industry council and chief elected official or 
        officials affected, and the State job training 
        coordinating council shall transmit to the Secretary 
        its recommendations for resolution thereof.
  [(c) The Governor of the State shall be afforded the 
opportunity to review and transmit to the Secretary proposed 
modifications of such plans submitted.]
  [(d)] (b) Such plans shall include provision for the 
promotion and development of employment opportunities for 
handicapped persons and for job counseling and placement of 
such persons, and for the designation of at least one person in 
each State or Federal employment office, whose duties shall 
include the effectuation of such purposes. In those States 
where a State board, department, or agency exists which is 
charged with the administration of State laws for vocational 
rehabilitation of physically handicapped persons, such plans 
shall include provision for cooperation between such board, 
department, or agency and the agency designated to cooperate 
with the United States Employment Service under this Act.
  [(e) If such plans are in conformity with the provisions of 
this Act and reasonably appropriate and adequate to carry out 
its purposes, they shall be approved by the Secretary of Labor 
and due notice of such approval shall be given to the State 
agency.]
          * * * * * * *
  [Sec. 11. (a) The Director shall establish a Federal Advisory 
Council composed of men and women representing employers and 
employees in equal numbers and the public for the purpose of 
formulating policies and discussing problems relating to 
employment and insuring impartiality, neutrality, and freedom 
from political influence in the solution of such problems. 
Members of such council shall be selected from time to time in 
such manner as the Director shall prescribe and shall serve 
without compensation, but when attending meetings of the 
council they shall be allowed necessary traveling and 
subsistence expenses, or per diem allowance in lieu thereof, 
within the limitations prescribed by law for civilian employees 
in the executive branch of the Government. The council shall 
have access to all files and records of the United States 
Employment Service. The Director shall also require the 
organization of similar State advisory councils composed of men 
and women representing employers and employees in equal numbers 
and the public. Nothing in this section shall be construed to 
prohibit the Governor from carrying out functions of such State 
advisory council through the State job training coordinating 
council in accordance with section 122(c) of the Job Training 
Partnership Act.
  [(b) In carrying out the provisions of this Act the Director 
is authorized and directed to provide for the giving of notice 
of strikes or lockouts to applicants before they are referred 
to employment.]
  Sec. 12. [The Director, with the approval of the Secretary of 
Labor,] The Secretary of Labor is hereby authorized to make 
such rules and regulations as may be necessary to carry out the 
provisions of this Act.
          * * * * * * *
                   TITLE II--LABOR MARKET INFORMATION

SEC. 21. PURPOSE.

  The purpose of this title is to ensure a comprehensive and 
coordinated system of labor market information which will 
provide locally based, accurate, up-to-date, easily accessible, 
and user friendly labor market information through a 
cooperative Federal, State, and local governance structure 
which includes partnerships with the private sector at all 
levels.

SEC. 22. SYSTEM CONTENT.

  The Secretary of Labor, in accordance with the provisions of 
this title, shall oversee the development, maintenance, and 
continuous improvement of a nationwide system of labor market 
information using data from all available and appropriate 
sources, which shall include--
          (1) statistical data from survey and projection 
        programs and data from administrative reporting 
        systems, which, taken together, shall enumerate, 
        estimate, and project the supply and demand for labor 
        at national, State, and local levels in a timely 
        manner, including data on--
                  (A) the demographic characteristics, as 
                defined in title I of the Careers Act, 
                socioeconomic characteristics, and current 
                employment status of the population, including 
                self-employed, part-time, and seasonal workers, 
                and individuals with severe disabilities;
                  (B) job vacancies, education and training 
                requirements, skills, wages, benefits, working 
                conditions, and industrial distribution of 
                occupations, as well as current and projected 
                employment opportunities and trends by industry 
                and occupation;
                  (C) the educational attainment, training, 
                skills, skill levels, and occupations of the 
                population by demographic characteristics such 
                as unemployment insurance wage data records;
                  (D) information maintained in a longitudinal 
                manner on the quarterly earnings, establishment 
                and industry affiliation, and geographic 
                location of employment for all individuals for 
                whom such information is collected by the 
                States; and
                  (E) the incidence, industrial and 
                geographical location, and number of workers 
                displaced by permanent layoffs and plant 
                closings;
          (2) State and local employment and consumer 
        information on--
                  (A) job openings, locations, hiring 
                requirements, and application procedures, as 
                well as profiles of employers in the local 
                labor market describing the nature of work 
                performed, employment requirements, wages, 
                benefits, and hiring patterns;
                  (B) job seekers, including their education 
                and training, skills, skill levels, employment 
                experience, and employment goals; and
                  (C) education courses, training programs, job 
                placement programs, and vocational 
                rehabilitation programs (where appropriate), 
                including--
                          (i) performance information, such as 
                        the ratio of program completion, 
                        acquisition of industry-recognized 
                        skill standards, job placement, 
                        earnings, and the level of satisfaction 
                        of the participants and their 
                        employers; and
                          (ii) descriptive information, such as 
                        eligibility requirements, costs, 
                        financial support, or other supportive 
                        services, and other appropriate 
                        information which may be available with 
                        these courses and programs;
          (3) technical standards for data and information that 
        will--
                  (A) ensure compatibility and additivity of 
                data and information from local to State and 
                national levels;
                  (B) support standardization and aggregation 
                of data and information from the administrative 
                reporting systems of employment-related 
                programs; and
                  (C) include--
                          (i) classification and coding systems 
                        for industries, occupations, skills, 
                        programs, and courses;
                          (ii) nationally standardized 
                        definitions of terms;
                          (iii) a common system for designating 
                        geographic areas;
                          (iv) quality control mechanisms for 
                        data collection and analysis; and
                          (v) common schedules for data 
                        collection and dissemination;
          (4) analysis of data and information for uses 
        including--
                  (A) national, State, and local economic 
                policymaking;
                  (B) the implementation of Federal policies, 
                including the allocation of Federal funds to 
                States and localities and the facilitation of 
                job search and hiring in local labor markets;
                  (C) national, State, and local program 
                planning and evaluation; and
                  (D) research on labor market dynamics;
          (5) dissemination mechanisms for data and analysis, 
        including mechanisms which may be standardized among 
        the States and technical standards in the design of 
        automated data bases, and the design of user interfaces 
        and communications protocols;
          (6) programs of technical assistance for States and 
        localities in the development, maintenance, and 
        utilization of data, analysis, and dissemination 
        mechanisms, including assistance in adopting and 
        utilizing automated systems and improving the access, 
        through electronic and other means, of youth, adults, 
        and employers to labor market information for 
        localities, States, and the Nation;
          (7) programs of research and demonstration, which may 
        be carried out by States and other public or private 
        entities, on ways to improve the products and processes 
        authorized in this title; and
          (8) objective performance measures, which will allow 
        for the continuous monitoring of the progress of the 
        labor market information system at national, State, and 
        local levels.

SEC. 23. FEDERAL RESPONSIBILITIES.

  (a) In General.--The Nation's labor market information system 
shall be planned, administered, overseen, and evaluated by a 
cooperative governance structure involving the Federal 
Government and the States.
  (b) Duties.--The Secretary, with respect to data collection, 
analysis, and dissemination of labor market information, shall 
carry out the following duties:
          (1) Ensure that all statistical and administrative 
        data collection activities within the Department of 
        Labor, including the Employment and Training 
        Administration, Veterans' Employment and Training 
        Service, Employment Standards Administration, and 
        Occupational Health and Safety Administration, are 
        consistent with those of the Bureau of Labor 
        Statistics.
          (2) Assign responsibilities, as appropriate, to 
        agencies such as the Employment and Training 
        Administration to work with the Bureau of Labor 
        Statistics in the collection, analysis and, 
        particularly, in the dissemination of labor market 
        information, and in the provision of training and 
        technical assistance to users of information, including 
        the States, employers, youth, and adults.
          (3) In cooperation with other Federal agencies, 
        including but not limited to the Departments of 
        Commerce, Defense, Treasury, Education, Health and 
        Human Services, Agriculture, Veterans' Affairs, and the 
        Office of Management and Budget, establish and maintain 
        mechanisms for ensuring complementarity and 
        nonduplication in the development and operation of 
        statistical and administrative data collection 
        activities, in order to ensure a comprehensive labor 
        market information system.
          (4) Actively seek the participation of other Federal 
        agencies, particularly the National Center for 
        Education Statistics and the Division of Adult and 
        Vocational Education, and the Rehabilitation Services 
        Administration of the Department of Education, the 
        Veterans' Employment and Training Service of the 
        Department of Labor and the Department of Veterans' 
        Affairs with respect to vocational rehabilitation 
        programs in the design and provision of standardized 
        information to the States to support section 22(2), and 
        in the dissemination of labor market information.
          (5) Establish confidentiality standards for the labor 
        market information system at national, State, and local 
        levels, including such provisions as may be necessary, 
        to be taken in coordination with the States, to ensure 
        that privacy and confidentiality protections are 
        guaranteed with respect to individuals and firm data.
  (c) Additional Duties.--The Secretary, in collaboration with 
the Bureau of Labor Statistics, with the assistance of other 
agencies of the Department where appropriate, shall--
          (1) establish and maintain, with the cooperation of 
        the States, elements of the system described in 
        sections 22(1) and 22(3);
          (2) develop and promulgate standards, definitions, 
        formats, collection methodologies, and other necessary 
        system elements for the use of the States in their 
        assembling and presentation of the employment 
        information specified in section 22(2);
          (3) eliminate gaps and duplication in statistical 
        undertakings, with the systemization of wage surveys as 
        an early priority;
          (4) recommend any needed improvements in 
        administrative reporting systems to support the 
        development of labor market information from their 
        data; and
          (5) ensure that--
                  (A) data are sufficiently timely and locally 
                detailed for uses including those specified in 
                section 22(4);
                  (B) administrative records are standardized 
                to facilitate the aggregation of data from 
                local to State and national levels and to 
                support the creation of new statistical series 
                from program records; and
                  (C) paperwork and reporting requirements on 
                employers and individuals are reduced.

SEC. 24. ANNUAL PLAN.

  (a) In General.--The Secretary of Labor, working through the 
Bureau of Labor Statistics, and in consultation with other 
appropriate Federal agencies, shall prepare an annual plan, 
which shall be the operational mechanism for achieving a 
cooperative Federal/State governance structure for labor market 
information. The annual plan shall provide the verbal 
justification for the Department of Labor's budget request to 
Congress by describing the activities of the Bureau, other 
agencies of the Department of Labor, and other Federal agencies 
with regard to data collection, analysis, and dissemination of 
labor market information for fiscal years succeeding the fiscal 
year in which the plan is developed and shall include--
          (1) the results of a periodic review of users' needs, 
        including the identification of new employment issues 
        and the attendant emergence of new needs, on the part 
        of Congress, the States, employers, youth, and adults, 
        for data, analysis, and dissemination;
          (2) an evaluation, including the results of objective 
        measures, of the performance of the labor market 
        information system in meeting these needs and the steps 
        to be taken to overcome deficiencies;
          (3) a summary of ongoing data programs and activities 
        under section 22 and a description of the development 
        of new data programs, analytical techniques, 
        definitions and standards, dissemination mechanisms, 
        training and technical assistance, governance 
        mechanisms, and funding processes to meet new needs; 
        and
          (4) the results of an annual review of the costs to 
        the States of meeting contract requirements for data 
        production under this title, including a description of 
        how the Secretary's requested budget will cover these 
        costs.
  (b) Cooperation With the States.--The Secretary shall involve 
the States with the Bureau of Labor Statistics in a cooperative 
manner in the development of the plan by--
          (1) establishing procedures and mechanisms for 
        holding formal and periodic consultations on products 
        and administration of the system, at least once each 
        quarter, with representatives of the States from each 
        of the 10 Federal regions of the Department of Labor, 
        elected by and from among the State directors of labor 
        market information, according to a process set forth by 
        the Secretary; and
          (2) incorporating in the annual plan, for its 
        submission to Congress, the results of these 
        consultations, including any supplementary or 
        dissenting views from representatives of the States.
  (c) Representatives of States Deemed To Be Federal 
Employees.--For purposes of the development of the annual plan 
and to meet the provisions of Office of Management and Budget 
Circular A-11, the representatives of the States, elected in 
accordance with subsection (b)(1), shall be considered to be 
employees of the Department of Labor.

SEC. 25. GOVERNOR'S RESPONSIBILITIES.

  (a) Designation of State Agency.--The Governor of each State 
shall designate a single State agency to be the agency 
responsible for the management and oversight of a statewide 
comprehensive labor market information system and for the 
State's participation in the cooperative Federal/State 
governance structure for the nationwide labor market 
information system.
  (b) Duties.--In order to receive Federal financial assistance 
under this Act, the State agency shall--
          (1) develop, maintain, and continuously improve a 
        comprehensive labor market information system, which 
        shall--
                  (A) include all the elements specified in 
                section 22; and
                  (B) be responsive to the needs of the State 
                and its localities for planning and evaluative 
                data, including employment and economic 
                analyses and projections, as required by this 
                Act, the Consolidated and Reformed Education, 
                Employment, and Rehabilitation Systems Act, the 
                Social Security Act, and other provisions of 
                law under which Congress has required the use 
                of labor market information;
          (2) ensure the performance of contract and grant 
        responsibilities for data collection, analysis, and 
        dissemination;
          (3) conduct such other data collection, analysis, and 
        dissemination activities as will ensure comprehensive 
        State and local labor market information;
          (4) actively seek the participation of other State 
        and local agencies, with particular attention to State 
        education, economic development, human services, and 
        welfare agencies, in data collection, analysis, and 
        dissemination activities in order to ensure 
        complementarity and compatibility among data; and
          (5) participate in the development of the national 
        annual plan.
  (c) Rule of Construction.--Nothing in this Act shall be 
construed as limiting the State agency's ability to conduct 
additional data collection, analysis, and dissemination 
activities with State funds or with Federal funds from sources 
other than this Act.
                              ----------                              

                       REHABILITATION ACT OF 1973

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act, with the following table of contents, may be cited as the 
``Rehabilitation Act of 1973'':
                            TABLE OF CONTENTS

Sec. 2. Declaration of purpose.
Sec. 3. Rehabilitation Services Administration.
Sec. 3A. Availability of funds.
     * * * * * * *

              [TITLE I--VOCATIONAL REHABILITATION SERVICES

                       [Part A--General Provisions

[Sec. 100. Declaration of policy; authorization of appropriations.
[Sec. 101. State plans.
[Sec. 102. Individualized written rehabilitation program.
[Sec. 103. Scope of vocational rehabilitation services.
[Sec. 104. Non-Federal share for construction.
[Sec. 105. State Rehabilitation Advisory Council.
[Sec. 106. Evaluation standards and performance indicators.
[Sec. 107. Monitoring and review.
[Sec. 108. Expenditure of certain amounts.
[Sec. 109. Training of employers with respect to Americans with 
          Disabilities Act of 1990.

            [Part B--Basic Vocational Rehabilitation Services

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

                [Part C--Innovation and Expansion Grants

[Sec. 120. State eligibility.
[Sec. 121. Contents of strategic plans.
[Sec. 122. Process for developing strategic plans.
[Sec. 123. Use of funds.
[Sec. 124. Allotments among States.

       [Part D--American Indian Vocational Rehabilitation Services

[Sec. 130. Vocational rehabilitation services grants.

     [Part E--Vocational Rehabilitation Services Client Information

[Sec. 140. Review of data collection and reporting system.
[Sec. 141. Exchange of data.]
               TITLE I--VOCATIONAL REHABILITATION SERVICES

Sec. 100. Purpose.
Sec. 101. Formula Grants.
Sec. 102. Allocation Within State of Administrative Responsibilities.
Sec. 103. Responsibilities of State Administrative Agent.
Sec. 104. Responsibilities for Local Boards and Service Centers.
Sec. 105. Eligible Individual.
Sec. 106. State Rehabilitation Advisory Council.
Sec. 107. Amount of Allotment.
     * * * * * * *

             TITLE III--TRAINING AND DEMONSTRATION PROJECTS

     Part A--Training Programs and Community Rehabilitation Programs

Sec. 301. Declaration of purpose.
Sec. 302. Training.
[Sec. 303. Vocational rehabilitation services for individuals with 
          disabilities.
[Sec. 304. Loan guarantees for community rehabilitation programs.]
     * * * * * * *
[Sec. 312. Migratory workers.]
     * * * * * * *
[Sec. 316. Special recreational programs.]
     * * * * * * *

                      TITLE V--RIGHTS AND ADVOCACY

     * * * * * * *
Sec. 510. Client assistance program.
  TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

Sec. 601. Short title.

  [Part A--Community Service Employment Programs for Individuals With 
                              Disabilities

[Sec. 611. Establishment of program.
[Sec. 612. Administration.
[Sec. 613. Participants not Federal employees.
[Sec. 614. Interagency cooperation.
[Sec. 615. Equitable distribution of assistance.
[Sec. 616. Definitions.
[Sec. 617. Authorization of appropriations.

                    [Part B--Projects With Industry]

Sec. 621. Projects with industry.
Sec. 622. Authorization of appropriations.
Sec. 623. Authorization of appropriations.

   [Part C--Supported Employment Services for Individuals With Severe 
                              Disabilities

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

    [Part D--Business Opportunities for Individuals With Disabilities

[Sec. 641. Business opportunities for individuals with disabilities.]
     * * * * * * *

        [TITLE VIII--SPECIAL DEMONSTRATIONS AND TRAINING PROJECTS

[Sec. 801. Authorization of appropriations.
[Sec. 802. Demonstration activities.
[Sec. 803. Training activities.]
     * * * * * * *
                         availability of funds


  Sec. 3A. Notwithstanding any other provision of law, funding 
to carry out titles II through VII for any fiscal year is 
available only to such extent as is provided, or in such 
amounts as are provided, in appropriations Acts.
          * * * * * * *
              [TITLE I--VOCATIONAL REHABILITATION SERVICES

                      [Part A--General Provisions

        [declaration of policy; authorization of appropriations

  [Sec. 100. (a)(1) Congress finds that--
          [(A) work--
                  [(i) is a valued activity, both for 
                individuals and society; and
                  [(ii) fulfills the need of an individual to 
                be productive, promotes independence, enhances 
                self-esteem, and allows for participation in 
                the mainstream of life in America;
          [(B) as a group, individuals with disabilities 
        experience staggering levels of unemployment and 
        poverty;
          [(C) individuals with disabilities, including 
        individuals with the most severe disabilities, have 
        demonstrated their ability to achieve gainful 
        employment in integrated settings if appropriate 
        services and supports are provided;
          [(D) reasons for the significant number of 
        individuals with disabilities not working, or working 
        at a level not commensurate with their abilities and 
        capabilities, include--
                  [(i) discrimination;
                  [(ii) lack of accessible and available 
                transportation;
                  [(iii) fear of losing health coverage under 
                the medicare and medicaid programs under titles 
                XVIII and XIX of the Social Security Act (42 
                U.S.C. 1395 et seq. and 1396 et seq.) or fear 
                of losing existing private health insurance; 
                and
                  [(iv) lack of education, training, and 
                supports to meet job qualification standards 
                necessary to enter or retain or advance in 
                employment;
          [(E) enforcement of title V and of the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) 
        holds the promise of ending discrimination for 
        individuals with disabilities; and
          [(F) the provision of vocational rehabilitation 
        services can enable individuals with disabilities, 
        including individuals with the most severe 
        disabilities, to pursue meaningful careers by securing 
        gainful employment commensurate with their abilities 
        and capabilities.
  [(2) The purpose of this title is to assist States in 
operating a comprehensive, coordinated, effective, efficient, 
and accountable program of vocational rehabilitation that is 
designed to assess, plan, develop, and provide vocational 
rehabilitation services for individuals with disabilities, 
consistent with their strengths, resources, priorities, 
concerns, abilities, and capabilities, so that such individuals 
may prepare for and engage in gainful employment.
  [(3) It is the policy of the United States that such a 
program shall be carried out in a manner consistent with the 
following principles:
          [(A) Individuals with disabilities, including 
        individuals with the most severe disabilities, are 
        generally presumed to be capable of engaging in gainful 
        employment and the provision of individualized 
        vocational rehabilitation services can improve their 
        ability to become gainfully employed.
          [(B) Individuals with disabilities must be provided 
        the opportunities to obtain gainful employment in 
        integrated settings.
          [(C) Individuals with disabilities must be active 
        participants in their own rehabilitation programs, 
        including making meaningful and informed choices about 
        the selection of their vocational goals and objectives 
        and the vocational rehabilitation services they 
        receive.
          [(D) Families and natural supports can play an 
        important role in the success of a vocational 
        rehabilitation program, if the individual with a 
        disability requests, desires, or needs such supports.
          [(E) Qualified vocational rehabilitation counselors, 
        other qualified rehabilitation personnel, and other 
        qualified personnel facilitate the accomplishment of 
        the employment goals and objectives of an individual.
          [(F) Individuals with disabilities and their 
        advocates are full partners in the vocational 
        rehabilitation program and must be involved on a 
        regular basis and in a meaningful manner with respect 
        to policy development and implementation.
          [(G) Accountability measures must facilitate and not 
        impede the accomplishment of the goals and objectives 
        of the program, including providing vocational 
        rehabilitation services to, among others, individuals 
        with the most severe disabilities.
  [(b)(1) For the purpose of making grants to States under part 
B (other than grants under section 112) to assist States in 
meeting the costs of vocational rehabilitation services 
provided in accordance with State plans under section 101, 
there are authorized to be appropriated such sums as may be 
necessary for fiscal years 1993 through 1997, except that the 
amount to be appropriated for a fiscal year shall not be less 
than the amount of the appropriation under this subsection for 
the immediately preceding fiscal year, plus the amount of the 
Consumer Price Index addition determined under subsection (c) 
for the immediately preceding fiscal year.
  [(2) There are authorized to be appropriated to carry out 
part C such sums as may be necessary for fiscal years 1993 
through 1997.
  [(c)(1) No later than November 15 of each fiscal year 
(beginning with the fiscal year 1979), the Secretary of Labor 
shall publish in the Federal Register the percentage change in 
the Consumer Price Index published for October of the preceding 
fiscal year and October of the fiscal year in which such 
publication is made.
  [(2)(A) If in any fiscal year the percentage change published 
under paragraph (1) indicates an increase in the Consumer Price 
Index, then the amount to be appropriated under subsection (b) 
for the subsequent fiscal year shall be at least the amount 
appropriated for the fiscal year in which the publication is 
made under paragraph (1) increased by such percentage change.
  [(B) If in any fiscal year the percentage change published 
under paragraph (1) does not indicate an increase in the 
Consumer Price Index, then the amount to be appropriated under 
subsection (b) for the subsequent fiscal year shall be at least 
the amount appropriated for the fiscal year in which the 
publication is made under paragraph (1).
  [(3) For purposes of this section, the term ``Consumer Price 
Index'' means the Consumer Price Index for All Urban Consumers, 
published monthly by the Bureau of Labor Statistics.
  [(d)(1)(A) Unless the Congress in the regular session which 
ends prior to the beginning of the terminal fiscal year--
          [(i) of the authorization of appropriations for the 
        program authorized by the State grant program under 
        part B of this title; or
          [(ii) of the duration of the program authorized by 
        the State grant program under part B of this title;
has passed legislation which would have the effect of extending 
the authorization or duration (as the case may be) of such 
program, such authorization is automatically extended for one 
additional year for the program authorized by this title.
  [(B) The amount authorized to be appropriated for the 
additional fiscal year described in subparagraph (A) shall be 
an amount equal to the amount appropriated for such program for 
fiscal year 1997, plus the amount of the Consumer Price Index 
addition determined under subsection (c) for the immediately 
preceding fiscal year.
  [(2)(A) For the purposes of subdivision (i) of paragraph (1), 
the Congress shall not have been deemed to have passed 
legislation unless such legislation becomes law.
  [(B) In any case where the Commissioner is required under an 
applicable statute to carry out certain acts or make certain 
determinations which are necessary for the continuation of the 
program authorized by this title, if such acts or 
determinations are required during the terminal year of such 
program, such acts and determinations shall be required during 
any fiscal year in which that part of paragraph (1) of this 
subsection which follows subdivision (ii) of paragraph (1) is 
in operation.

                              [state plans

  [Sec. 101. (a) In order to be eligible to participate in 
programs under this title, a State shall submit to the 
Commissioner a State plan for vocational rehabilitation 
services for a 3-year period, or shall submit the plan on such 
date, and at such regular intervals, as the Secretary may 
determine to be appropriate to coincide with the intervals at 
which the State submits State plans under other Federal laws, 
such as part B of the Individuals with Disabilities Education 
Act (20 U.S.C. 1411 et seq.). In order to be eligible to 
participate in programs under this title, a State, upon the 
request of the Commissioner, shall make such annual revisions 
in the plan as may be necessary. Each such plan shall--
  [(1)(A) designate a State agency as the sole State agency to 
administer the plan, or to supervise its administration by a 
local agency, except that (i) where, under the State's law, the 
State agency for individuals who are blind or other agency 
which provides assistance or services to adults who are blind 
is authorized to provide vocational rehabilitation services to 
such individuals, such agency may be designated as the sole 
State agency to administer the part of the plan under which 
vocational rehabilitation services are provided for individuals 
who are blind (or to supervise the administration of such part 
by a local agency) and a separate State agency may be 
designated as the sole State agency with respect to the rest of 
the State plan, (ii) the Commissioner, upon the request of a 
State, may authorize such agency to share funding and 
administrative responsibility with another agency of the State 
or with a local agency in order to permit such agencies to 
carry out a joint program to provide services to individuals 
with disabilities, and may waive compliance with respect to 
vocational rehabilitation services furnished under such 
programs with the requirement of paragraph (4) of this 
subsection that the plan be in effect in all political 
subdivisions of that State, and (iii) in the case of American 
Samoa, the appropriate State agency shall be the Governor of 
American Samoa;
  [(B) provide that the State agency so designated to 
administer or supervise the administration of the State plan, 
or (if there are two State agencies designated under 
subparagraph (A) of this paragraph) to supervise or administer 
the part of the State plan that does not relate to services for 
individuals who are blind, shall be (i) a State agency 
primarily concerned with vocational rehabilitation, or 
vocational and other rehabilitation, of individuals with 
disabilities, (ii) the State agency administering or 
supervising the administration of education or vocational 
education in the State, or (iii) a State agency which includes 
at least two other major organizational units each of which 
administers one or more of the major public education, public 
health, public welfare, or labor programs of the State;
  [(2) provide, except in the case of agencies described in 
paragraph (1)(B)(i)--
          [(A) that the State agency designated pursuant to 
        paragraph (1) (or each State agency if two are so 
        designated) shall include a vocational rehabilitation 
        bureau, division, or other organizational unit which 
        (i) is primarily concerned with vocational 
        rehabilitation, or vocational and other rehabilitation, 
        of individuals with disabilities, and is responsible 
        for the vocational rehabilitation program of such State 
        agency, (ii) has a full-time director, and (iii) has a 
        staff employed on such rehabilitation work of such 
        organizational unit all or substantially all of whom 
        are employed full time on such work; and
          [(B)(i) that such unit shall be located at an 
        organizational level and shall have an organizational 
        status within such State agency comparable to that of 
        other major organizational units of such agency, or 
        (ii) in the case of an agency described in paragraph 
        (1)(B)(ii), either that such unit shall be so located 
        and have such status, or that the director of such unit 
        shall be the executive officer of such State agency; 
        except that, in the case of a State which has 
        designated only one State agency pursuant to paragraph 
        (1) of this subsection, such State may, if it so 
        desires, assign responsibility for the part of the plan 
        under which vocational rehabilitation services are 
        provided for the blind to one organizational unit of 
        such agency, and assign responsibility for the rest of 
        the plan to another organizational unit of such agency, 
        with the provisions of this paragraph applying 
        separately to each of such units;
  [(3) provide for financial participation by the State, or if 
the State so elects, by the State and local agencies to meet 
the amount of the non-Federal share;
  [(4) provide that the plan shall be in effect in all 
political subdivisions, except that in the case of any activity 
which, in the judgment of the Commissioner, is likely to assist 
in promoting the vocational rehabilitation of substantially 
larger numbers of individuals with disabilities or groups of 
individuals with disabilities the Commissioner may waive 
compliance with the requirement herein that the plan be in 
effect in all political subdivisions of the State to the extent 
and for such period as may be provided in accordance with 
regulations prescribed by the Commissioner, but only if the 
non-Federal share of the cost of such vocational rehabilitation 
services is met from funds made available by a local agency 
(including, to the extent permitted by such regulations, funds 
contributed to such agency by a private agency, organization, 
or individual);
  [(5)(A) contain the plans, policies, and methods to be 
followed in carrying out the State plan and in its 
administration and supervision, including the results of a 
comprehensive, Statewide assessment of the rehabilitation needs 
of individuals with severe disabilities residing within the 
State and the State's response to the assessment, a description 
of the method to be used to expand and improve services to 
individuals with the most severe disabilities including 
individuals served under part C of title VI of this Act, and a 
description of the method to be used to utilize community 
rehabilitation programs to the maximum extent feasible, an 
explanation of the methods by which the State will provide 
vocational rehabilitation services to all individuals with 
disabilities within the State who are eligible for such 
services, and, in the event that vocational rehabilitation 
services cannot be provided to all eligible individuals with 
disabilities who apply for such services, (i) show and provide 
the justification for the order to be followed in selecting 
individuals to whom vocational rehabilitation services will be 
provided, and (ii) show the outcomes and service goals, and the 
time within which they may be achieved, for the rehabilitation 
of such individuals, which order of selection for the provision 
of vocational rehabilitation services shall be determined on 
the basis of serving first those individuals with the most 
severe disabilities in accordance with criteria established by 
the State, and shall be consistent with priorities in such 
order of selection so determined, and outcome and service goals 
for serving individuals with disabilities, established in 
regulations prescribed by the Commissioner;
  [(B) provide satisfactory assurances to the Commissioner that 
the State has studied and considered a broad variety of means 
for providing services to individuals with the most severe 
disabilities, including the use of funds under part C of title 
VI to supplement funds under part B of this title to pay for 
the cost of services leading to supported employment; and
  [(C) describe--
          [(i) how a broad range of rehabilitation technology 
        services will be provided at each stage of the 
        rehabilitation process;
          [(ii) how a broad range of such rehabilitation 
        technology services will be provided on a statewide 
        basis; and
          [(iii) the training that will be provided to 
        vocational rehabilitation counselors, client assistance 
        personnel, and other related services personnel;
  [(6)(A) provide for such methods of administration, other 
than methods relating to the establishment and maintenance of 
personnel standards, as are found by the Commissioner to be 
necessary for the proper and efficient administration of the 
plan (including a requirement that the State agency and 
facilities in receipt of assistance under this title shall take 
affirmative action to employ and advance in employment 
qualified individuals with disabilities covered under, and on 
the same terms and conditions as set forth in, section 503); 
and
  [(B) provide satisfactory assurances that facilities used in 
connection with the delivery of services assisted under the 
plan will comply with the Act of August 12, 1968, commonly 
known as the Architectural Barriers Act of 1968, with section 
504 of this Act, and with the Americans with Disabilities Act 
of 1990;
  [(7)(A) include a description (consistent with the purposes 
of this Act) of a comprehensive system of personnel 
development, which shall include--
          [(i) a description of the procedures and activities 
        the State agency will undertake to ensure an adequate 
        supply of qualified State rehabilitation professionals 
        and paraprofessionals for the designated State unit, 
        including the development and maintenance of a system 
        for determining, on an annual basis--
                  [(I) the number and type of personnel that 
                are employed by the State agency in the 
                provision of vocational rehabilitation 
                services, including ratios of counselors to 
                clients; and
                  [(II) the number and type of personnel needed 
                by the State, and a projection of the numbers 
                of such personnel that will be needed in 5 
                years, based on projections of the number of 
                individuals to be served, the number of such 
                personnel who are expected to retire or leave 
                the field, and other relevant factors;
          [(ii) where appropriate, a description of the manner 
        in which activities will be undertaken through this 
        section to coordinate the system of personnel 
        development with personnel development under the 
        Individuals with Disabilities Education Act (20 U.S.C. 
        1400 et seq.);
          [(iii) a description of the development and 
        maintenance of a system of determining, on an annual 
        basis, information on the institutions of higher 
        education within the State that are preparing 
        rehabilitation professionals, including--
                  [(I) the numbers of students enrolled in such 
                programs; and
                  [(II) the number who graduated with 
                certification or licensure, or with credentials 
                to qualify for certification or licensure, 
                during the past year;
          [(iv) a description of the development, updating, and 
        implementation of a plan that--
                  [(I) will address the current and projected 
                vocational rehabilitation services personnel 
                training needs for the designated State unit; 
                and
                  [(II) provides for the coordination and 
                facilitation of efforts between the designated 
                State unit and institutions of higher education 
                (as defined in section 1201(a) of the Higher 
                Education Act of 1965 (20 U.S.C. 1141(a))) and 
                professional associations to recruit, prepare 
                and retain qualified personnel, including 
                personnel from minority backgrounds, and 
                personnel who are individuals with 
                disabilities; and
          [(v) a description of the procedures and activities 
        the State agency will undertake to ensure that all 
        personnel employed by the designated State unit are 
        appropriately and adequately trained and prepared, 
        including--
                  [(I) a system for the continuing education of 
                rehabilitation professionals and 
                paraprofessionals within the designated State 
                unit, particularly with respect to 
                rehabilitation technology; and
                  [(II) procedures for acquiring and 
                disseminating to rehabilitation professionals 
                and paraprofessionals within the designated 
                State unit significant knowledge from research 
                and other sources, including procedures for 
                providing training regarding the amendments to 
                the Rehabilitation Act of 1973 made by the 
                Rehabilitation Act Amendments of 1992;
  [(B) set forth policies and procedures relating to the 
establishment and maintenance of standards to ensure that 
personnel, including professionals and paraprofessionals, 
needed within the State agency to carry out this part are 
appropriately and adequately prepared and trained, including--
          [(i) the establishment and maintenance of standards 
        that are consistent with any national or State approved 
        or recognized certification, licensing, registration, 
        or other comparable requirements that apply to the area 
        in which such personnel are providing vocational 
        rehabilitation services; and
          [(ii) to the extent such standards are not based on 
        the highest requirements in the State applicable to a 
        specific profession or discipline, the steps the State 
        is taking to require the retraining or hiring of 
        personnel within the designated State unit that meet 
        appropriate professional requirements in the State; and
  [(C) contain provisions relating to the establishment and 
maintenance of minimum standards to ensure the availability of 
personnel within the designated State unit, to the maximum 
extent feasible, trained to communicate in the native language 
or mode of communication of the client;
  [(8) provide, at a minimum, for the provision of the 
vocational rehabilitation services specified in paragraphs (1) 
through (3) and paragraph (12) of section 103(a), and for the 
provision of such other services as are specified under such 
section after a determination that comparable services and 
benefits are not available under any other program, except that 
such a determination shall not be required--
          [(A) if the determination would delay the provision 
        of such services to any individual at extreme medical 
        risk; or
          [(B) prior to the provision of such services if an 
        immediate job placement would be lost due to a delay in 
        the provision of such comparable benefits;
  [(9) provide that--
          [(A) to the maximum extent appropriate, and 
        consistent with the requirements of this Act, existing 
        information available from other programs and providers 
        (particularly information used by education officials 
        and the Social Security Administration) and information 
        that can be provided by the individual with a 
        disability or the family of the individual shall be 
        used for purposes of determining eligibility for 
        vocational rehabilitation services and for choosing 
        rehabilitation goals, objectives, and services;
          [(B) an individualized written rehabilitation program 
        meeting the requirements of section 102 will be 
        developed for each individual with a disability 
        eligible for vocational rehabilitation services under 
        this Act;
          [(C) such services will be provided under the plan in 
        accordance with such program; and
          [(D) records of the characteristics of each applicant 
        will be kept, specifying, as to those individuals who 
        apply for services under this title and are determined 
        not to be eligible therefor, the reasons for such 
        determinations in such detail as required by the 
        Commissioner in order for the Commissioner to analyze 
        and evaluate annually the reasons for and numbers of 
        such ineligibility determinations as part of the 
        Commissioner's responsibilities under section 13, and 
        that the State agency will at least annually categorize 
        and analyze such reasons and numbers and report this 
        information to the Commissioner and will, not later 
        than 12 months after each such determination, review 
        each such ineligibility determination in accordance 
        with the criteria set forth in section 102;
  [(10)(A) provide that the State agency will make such reports 
in such form, containing such information (including the data 
described in subparagraph (D) of paragraph (9) of this 
subsection, periodic estimates of the population of individuals 
with disabilities eligible for services under this Act in such 
State, specifications of the number of such individuals who 
will be served with funds provided under this Act and the 
outcomes and service goals to be achieved for such individuals 
in each priority category specified in accordance with 
paragraph (5) of this subsection, and the service costs for 
each such category), and at such time as the Commissioner may 
require to carry out the functions of the Commissioner under 
this title, and comply with such provisions as are necessary to 
assure the correctness and verification of such reports; and
  [(B) provide that reports under subparagraph (A) will include 
information on--
          [(i) the number of such individuals who are evaluated 
        and the number rehabilitated;
          [(ii) the costs of administration, counseling, 
        provision of direct services, development of community 
        rehabilitation programs, and other functions carried 
        out under this Act; and
          [(iii) the utilization by such individuals of other 
        programs pursuant to paragraph (11);
  [(11)(A) provide for interagency cooperation with, and the 
utilization of the services and facilities of, the State 
agencies administering the State's public assistance programs, 
other programs for individuals with disabilities, veterans 
programs, community mental health programs, manpower programs, 
and public employment offices, and the Social Security 
Administration of the Department of Health and Human Services, 
the Department of Veterans Affairs, and other Federal, State, 
and local public agencies providing services related to the 
rehabilitation of individuals with disabilities (specifically 
including arrangements for the coordination of services to 
individuals eligible for services under this Act, the 
Individuals with Disabilities Education Act (20 U.S.C. 1400 et 
seq.), the Carl D. Perkins Vocational and Applied Technology 
Education Act (20 U.S.C. 2301 et seq.), and the Act entitled 
``An Act to create a Committee on Purchases of Blind-made 
Products, and for other purposes'', approved June 25, 1938 
(commonly known as the Wagner-O'Day Act; 41 U.S.C. 46 et seq.);
  [(B) provide that cooperation under subparagraph (A) shall 
include, to the extent practicable, means for providing 
training to staff of the agencies described in subparagraph (A) 
as to the availability and benefits of, and eligibility 
standards for, vocational rehabilitation services, in order to 
enhance the opportunity of individuals receiving the services 
described in subparagraph (A) to obtain vocational 
rehabilitation services; and
  [(C) in providing for interagency cooperation under 
subparagraph (A), provide for such cooperation by means 
including, if appropriate--
          [(i) establishing interagency working groups; and
          [(ii) entering into formal interagency cooperative 
        agreements that--
                  [(I) identify policies, practices, and 
                procedures that can be coordinated among the 
                agencies (particularly definitions, standards 
                for eligibility, the joint sharing and use of 
                evaluations and assessments, and procedures for 
                making referrals);
                  [(II) identify available resources and define 
                the financial responsibility of each agency for 
                paying for necessary services (consistent with 
                State law) and procedures for resolving 
                disputes between agencies; and
                  [(III) include all additional components 
                necessary to ensure meaningful cooperation and 
                coordination;
  [(12)(A) provide satisfactory assurances to the Commissioner 
that, in the provision of vocational rehabilitation services, 
maximum utilization shall be made of public or other vocational 
or technical training programs or other appropriate resources 
in the community; and
  [(B) provide (as appropriate) for entering into agreements 
with the operators of community rehabilitation programs for the 
provision of services for the rehabilitation of individuals 
with disabilities;
  [(13)(A) provide that vocational rehabilitation services 
provided under the State plan shall be available to any civil 
employee of the United States who is disabled while in the 
performance of the employee's duty on the same terms and 
conditions as apply to other persons, and
  [(B) provide that special considerations will be given to the 
rehabilitation under this Act of an individual with a 
disability whose disability was sustained in the line of duty 
while such individual was performing as a public safety officer 
if the proximate cause of such disability was a criminal act, 
apparent criminal act, or hazardous condition resulting 
directly from the officer's performance of duties in direct 
connection with the enforcement, execution, and administration 
of law or fire prevention, firefighting, or related public 
safety activities;
  [(14) provide that no residence requirement will be imposed 
which excludes from services under the plan any individual who 
is present in the State;
  [(15) provide for continuing statewide studies of the needs 
of individuals with disabilities and how these needs may be 
most effectively met, including--
          [(A) a full needs assessment for serving individuals 
        with severe disabilities;
          [(B) an assessment of the capacity and effectiveness 
        of community rehabilitation programs, plans for 
        improving such programs, and policies for the use 
        thereof by the State agency;
          [(C) review of the efficacy of the criteria employed 
        with respect to ineligibility determinations described 
        in paragraph (9)(C) of this subsection with a view 
        toward the relative need for services to significant 
        segments of the population of individuals with 
        disabilities and the need for expansion of services to 
        those individuals with the most severe disabilities; 
        and
          [(D) outreach procedures to identify and serve 
        individuals with disabilities who are minorities and 
        individuals with disabilities who have been unserved or 
        underserved by the vocational rehabilitation system;
  [(16) provide for--
          [(A)(i) at least annual review and reevaluation of 
        the status of each individual with a disability placed 
        in an extended employment setting in a community 
        rehabilitation program (including a workshop) or other 
        employment under section 14(c) of the Fair Labor 
        Standards Act (29 U.S.C. 214(c)), to determine the 
        interests, priorities, and needs of the individual for 
        employment, or training for competitive employment, in 
        an integrated setting in the labor market; and
          [(ii) input into the review and reevaluation by the 
        individual with a disability, or, in an appropriate 
        case, a parent, a family member, a guardian, an 
        advocate, or an authorized representative, of the 
        individual, if the individual requests, desires, or 
        needs assistance;
          [(B) maximum efforts, including the identification of 
        vocational rehabilitation services, reasonable 
        accommodations, and other support services, to enable 
        such an individual to benefit from training or to be 
        placed in employment in an integrated setting; and
          [(C) services designed to promote movement from 
        extended employment to integrated employment, including 
        supported employment, independent living, and community 
        participation;
  [(17) provide that if, under special circumstances, the State 
plan includes provisions for the construction of facilities for 
community rehabilitation programs--
          [(A) the Federal share of the cost of construction 
        thereof for a fiscal year will not exceed an amount 
        equal to 10 per centum of the State's allotment for 
        such year,
          [(B) the provision of section 306 shall be applicable 
        to such construction and such provisions shall be 
        deemed to apply to such construction, and
          [(C) there shall be compliance with regulations the 
        Commissioner shall prescribe designed to assure that no 
        State will reduce its efforts in providing other 
        vocational rehabilitation services (other than for the 
        establishment of facilities for community 
        rehabilitation programs) because its plan includes such 
        provisions for construction;
  [(18) provide satisfactory assurances to the Commissioner 
that the State agency designated pursuant to paragraph (1) (or 
each State agency if two are so designated) and any sole local 
agency administering the plan in a political subdivision of the 
State will take into account, in connection with matters of 
general policy arising in the administration of the plan, the 
views of individuals and groups thereof who are recipients of 
vocational rehabilitation services (or, in appropriate cases, 
their parents or guardians), personnel working in the field of 
vocational rehabilitation, providers of vocational 
rehabilitation services, and the Director of the client 
assistance program under section 112;
  [(19) provide satisfactory assurances to the Commissioner 
that the continuing studies required under paragraph (15) of 
this subsection, as well as an annual evaluation of the 
effectiveness of the program in meeting the goals and 
priorities set forth in the plan, will form the basis for the 
submission, from time to time as the Commissioner may require, 
of appropriate amendments to the plan, and for developing and 
updating the strategic plan required under part C;
  [(20) provide satisfactory assurances to the Commissioner 
that, as appropriate, the State shall actively consult with 
Indian tribes and tribal organizations and native Hawaiian 
organizations in the development of the State plan, and that, 
except as otherwise provided in section 130, the State shall 
provide vocational rehabilitation services to American Indians 
who are individuals with disabilities residing in the State to 
the same extent as the State provides such services to other 
significant segments of the population of individuals with 
disabilities residing in the State;
  [(21) provide that the State agency has the authority to 
enter into contracts with profitmaking organizations for the 
purpose of providing on-the-job training and related programs 
for individuals with disabilities under part B of title VI upon 
a determination by such agency that such profitmaking 
organizations are better qualified to provide such 
rehabilitation services than nonprofit agencies and 
organizations;
  [(22) provide for the establishment and maintenance of 
information and referral programs (the staff of which shall 
include, to the maximum extent feasible, interpreters for 
individuals who are deaf) in sufficient numbers to assure that 
individuals with disabilities within the State are afforded 
accurate vocational rehabilitation information and appropriate 
referrals to other Federal and State programs and activities 
which would benefit them;
  [(23)(A) provide satisfactory assurances that in the 
formulation of policies governing the provision of the 
rehabilitation services consistent with the State plan, and any 
revisions, that the State agency conducts public meetings 
throughout the State, after appropriate and sufficient notice, 
to allow interested groups and organizations and all segments 
of the public an opportunity to comment on the State plan 
before development of the plan by the State, (B) include a 
summary of such comments and the State agency's response to 
such comments, and (C) provide satisfactory assurances that the 
State agency will consult with the Director of the client 
assistance program under section 112 in the formulation of 
policies governing the provision of vocational rehabilitation 
services consistent with the State plan and other revisions;
  [(24) contain plans, policies, and procedures to be followed 
(including entering into a formal interagency cooperative 
agreement, in accordance with paragraph (11)(C)(ii), with 
education officials responsible for the provision of a free 
appropriate public education to students who are individuals 
with disabilities) that are designed to--
          [(A) facilitate the development and accomplishment 
        of--
                  [(i) long-term rehabilitation goals;
                  [(ii) intermediate rehabilitation objectives; 
                and
                  [(iii) goals and objectives related to 
                enabling a student to live independently before 
                the student leaves a school setting,
        to the extent the goals and objectives described in 
        clauses (i) through (iii) are included in an 
        individualized education program of the student, 
        including the specification of plans for coordination 
        with the educational agencies in the provision of 
        transition services;
          [(B) facilitate the transition from the provision of 
        a free appropriate public education under the 
        responsibility of an educational agency to the 
        provision of vocational rehabilitation services under 
        the responsibility of the designated State unit, 
        including the specification of plans for coordination 
        with educational agencies in the provision of 
        transition services authorized under section 103(a)(14) 
        to an individual, consistent with the individualized 
        written rehabilitation program of the individual; and
          [(C) provide that such plans, policies, and 
        procedures will address--
                  [(i) provisions for determining State lead 
                agencies and qualified personnel responsible 
                for transition services;
                  [(ii) procedures for outreach to and 
                identification of youth in need of such 
                services; and
                  [(iii) a timeframe for evaluation and 
                followup of youth who have received such 
                services;
  [(25) provide assurances satisfactory to the Secretary that 
the State has an acceptable plan for carrying out part C of 
title VI, including the use of funds under that part to 
supplement funds under part B of this title for the cost of 
services leading to supported employment;
  [(26) describe the manner in which on-the-job or other 
related personal assistance services will be provided to assist 
individuals with disabilities while the individuals are 
receiving vocational rehabilitation services;
  [(27) describe the manner in which cooperative agreements 
with private nonprofit vocational rehabilitation service 
providers will be established;
  [(28) identify the needs and utilization of community 
rehabilitation programs under the Act commonly known as the 
Wagner-O'Day Act (41 U.S.C. 46 et seq.);
  [(29) describe the manner in which individuals with 
disabilities will be given choice and increased control in 
determining their vocational rehabilitation goals and 
objectives;
  [(30) describe the manner in which students who are 
individuals with disabilities and who are not in special 
education programs can access and receive vocational 
rehabilitation services, where appropriate;
  [(31) describe the manner in which assistive technology 
devices and services will be provided, or worksite assessments 
will be made as part of the assessment for determining 
eligibility and vocational rehabilitation needs of an 
individual;
  [(32) describe the manner in which the State will modify the 
policies and procedures of the State based on consumer 
satisfaction surveys conducted by the State Rehabilitation 
Advisory Council or independent commission described in 
paragraph (36);
  [(33) provide for coordination and working relationships with 
the Statewide Independent Living Council established under 
section 705 and independent living centers within the State;
  [(34) provide satisfactory assurances to the Commissioner 
that the State--
          [(A) has developed and implemented a strategic plan 
        for expanding and improving vocational rehabilitation 
        services for individuals with disabilities on a 
        statewide basis in accordance with part C of this 
        title; and
          [(B) will use at least 1.5 percent of the allotment 
        of the State under section 110 for the uses described 
        in section 123;
  [(35)(A) describe how the system for evaluating the 
performance of rehabilitation counselors, coordinators, and 
other personnel used in the State facilitates the 
accomplishment of the purpose and policy of this title, 
including the policy of serving, among others, individuals with 
the most severe disabilities; and
  [(B) provide satisfactory assurances that the system in no 
way impedes such accomplishment; and
  [(36) provide satisfactory assurances to the Commissioner 
that--
          [(A)(i) the State has established a State 
        Rehabilitation Advisory Council that meets the criteria 
        set forth in section 105;
          [(ii) the designated State agency and the designated 
        State unit seek and seriously consider on a regular and 
        ongoing basis advice from the Council regarding the 
        development and implementation of the State plan and 
        the strategic plan and amendments to the plans, and 
        other policies and procedures of general applicability 
        pertaining to the provision of vocational 
        rehabilitation services in the State;
          [(iii) the designated State agency includes, in its 
        State plan or an amendment to the plan, a summary of 
        advice provided by the Council, including 
        recommendations from the annual report of the Council, 
        the survey of consumer satisfaction, and other reports 
        prepared by the Council, and the response of the 
        designated State agency to such advice and 
        recommendations (including explanations with respect to 
        advice and recommendations that were rejected); and
          [(iv) the designated State unit transmits to the 
        Council--
                  [(I) all plans, reports, and other 
                information required under the Act to be 
                submitted to the Commissioner;
                  [(II) all policies, practices, and procedures 
                of general applicability provided to or used by 
                rehabilitation personnel; and
                  [(III) copies of due process hearing 
                decisions, which shall be transmitted in such a 
                manner as to preserve the confidentiality of 
                the participants in the hearings;
          [(B) an independent commission--
                  [(i) is responsible under State law for 
                operating, or overseeing the operation of, the 
                vocational rehabilitation program in the State;
                  [(ii) is consumer-controlled by persons who--
                          [(I) are individuals with physical or 
                        mental impairments that substantially 
                        limit major life activities; and
                          [(II) represent individuals with a 
                        broad range of disabilities;
                  [(iii) includes individuals representing 
                family members, advocates, and authorized 
                representatives of individuals with mental 
                impairments; and
                  [(iv) undertakes the function set forth in 
                section 105(c)(3); or
          [(C) in the case of a State that, under section 
        101(a)(1)(A)(i), designates a State agency to 
        administer the part of the State plan under which 
        vocational rehabilitation services are provided for 
        individuals who are blind and designates a separate 
        State agency to administer the remainder of the State 
        plan--
                          [(i) an independent commission is 
                        responsible under State law for 
                        operating, or overseeing the operation 
                        of, the vocational rehabilitation 
                        programs of both such agencies and 
                        meets the requirements of clauses (ii) 
                        and (iv) of subparagraph (B);
                          [(ii)(I) an independent commission is 
                        responsible under State law for 
                        operating, or overseeing the operation 
                        of, the vocational rehabilitation 
                        program in the State for individuals 
                        who are blind, is consumer-controlled 
                        by and represents individuals who are 
                        blind, and undertakes the function set 
                        forth in section 105(c)(3); and
                          [(II) an independent commission is 
                        responsible under State law for 
                        operating, or overseeing the operation 
                        of, the vocational rehabilitation 
                        program in the State for all 
                        individuals with disabilities except 
                        for individuals who are blind and meets 
                        the requirements of clauses (ii) and 
                        (iv) of subparagraph (B); or
                          [(iii)(I) an independent commission 
                        is responsible under State law for 
                        operating, or overseeing the operation 
                        of, the vocational rehabilitation 
                        program in the State for individuals 
                        who are blind, is consumer-controlled 
                        by and represents individuals who are 
                        blind, and undertakes the function set 
                        forth in section 105(c)(3); and
                          [(II) the State has established a 
                        State Rehabilitation Advisory Council 
                        that meets the criteria set forth in 
                        section 105 and carries out the duties 
                        of such a Council with respect to 
                        functions for, and services provided 
                        to, individuals with disabilities 
                        except for individuals who are blind.
  [(b) The Commissioner shall approve any plan which the 
Commissioner finds fulfills the conditions specified in 
subsection (a) of this section, and shall disapprove any plan 
which does not fulfill such conditions. Prior to such 
disapproval, the Commissioner shall notify a State of the 
intention to disapprove its plan, and shall afford such State 
reasonable notice and opportunity for hearing.

             [individualized written rehabilitation program

  [Sec. 102. (a)(1) An individual is eligible for assistance 
under this title if the individual--
          [(A) is an individual with a disability under section 
        7(8)(A); and
          [(B) requires vocational rehabilitation services to 
        prepare for, enter, engage in, or retain gainful 
        employment.
  [(2) An individual who has a disability or is blind as 
determined pursuant to title II or title XVI of the Social 
Security Act (42 U.S.C. 401 et seq. and 1381 et seq.) shall be 
considered to have--
          [(A) a physical or mental impairment which for such 
        individual constitutes or results in a substantial 
        impediment to employment under section 7(8)(A)(i); and
          [(B) a severe physical or mental impairment which 
        seriously limits one or more functional capacities in 
        terms of an employment outcome under section 
        7(15)(A)(i).
  [(3) Determinations made by officials of other agencies, 
particularly the education officials described in section 
101(a)(24), regarding whether an individual satisfies one or 
more factors relating to whether an individual is an individual 
with a disability under section 7(8)(A) or an individual with a 
severe disability under section 7(15)(A), shall be used (to the 
extent appropriate and available and consistent with the 
requirements under this Act) for making such determinations 
under this Act.
  [(4)(A) It shall be presumed that an individual can benefit 
in terms of an employment outcome from vocational 
rehabilitation services under section 7(8)(A)(ii), unless the 
designated State unit can demonstrate by clear and convincing 
evidence that such individual is incapable of benefiting from 
vocational rehabilitation services in terms of an employment 
outcome.
  [(B) In making the demonstration required under subparagraph 
(A) with respect to cases in which the issue concerns the 
severity of the disability of an individual, the designated 
State unit shall first conduct an extended evaluation by 
providing the services described in subparagraph (C)(iii)(I), 
and conducting the assessment described in subparagraph 
(C)(iii)(II), of section 7(22).
  [(5)(A) The designated State unit shall determine whether an 
individual is eligible for vocational rehabilitation services 
under this title within a reasonable period of time, not to 
exceed 60 days after the individual has submitted an 
application to receive the services unless--
          [(i) the designated State unit notifies the 
        individual that exceptional and unforeseen 
        circumstances beyond the control of the agency preclude 
        the agency from completing the determination within the 
        prescribed time and the individual agrees that an 
        extension of time is warranted; or
          [(ii) such an extended evaluation is required.
  [(B) The determination of eligibility shall be based on the 
review of existing data described in section 7(22)(A)(i), and, 
to the extent necessary, the preliminary assessment described 
in section 7(22)(A)(ii).
  [(6) The designated State unit shall ensure that a 
determination of ineligibility made with respect to an 
individual prior to the initiation of an individualized written 
rehabilitation program, based on the review, and to the extent 
necessary, the preliminary assessment, shall include 
specification of--
          [(A) the reasons for such a determination;
          [(B) the rights and remedies available to the 
        individual, including, if appropriate, recourse to the 
        processes set forth in subsections (b)(2) and (d); and
          [(C) the availability of services provided by the 
        client assistance program under section 112 to the 
        individual.
  [(b)(1)(A) As soon as a determination has been made that an 
individual is eligible for vocational rehabilitation services, 
the designated State unit shall complete an assessment for 
determining eligibility and vocational rehabilitation needs 
described in subparagraphs (B) and (C) of section 7(22) (if 
such assessment is necessary) and ensure that--
          [(i) an individualized written rehabilitation program 
        is jointly developed, agreed upon, and signed by--
                  [(I) such eligible individual (or, in an 
                appropriate case, a parent, a family member, a 
                guardian, an advocate, or an authorized 
                representative, of such individual); and
                  [(II) the vocational rehabilitation counselor 
                or coordinator; and
          [(ii) such program meets the requirements set forth 
        in subparagraph (B).
  [(B) Each individualized written rehabilitation program 
shall--
          [(i) be designed to achieve the employment objective 
        of the individual, consistent with the unique 
        strengths, resources, priorities, concerns, abilities, 
        and capabilities, of the individual;
          [(ii) include a statement of the long-term 
        rehabilitation goals based on the assessment for 
        determining eligibility and vocational rehabilitation 
        needs described in section 7(22)(B), including an 
        assessment of career interests, for the individual, 
        which goals shall, to the maximum extent appropriate, 
        include placement in integrated settings;
          [(iii) include a statement of the intermediate 
        rehabilitation objectives related to the attainment of 
        such goals, determined through such assessment carried 
        out in the most individualized and integrated setting 
        (consistent with the informed choice of the 
        individual);
          [(iv)(I) include a statement of the specific 
        vocational rehabilitation services to be provided, and 
        the projected dates for the initiation and the 
        anticipated duration of each such service;
          [(II) if appropriate, include a statement of the 
        specific rehabilitation technology services to be 
        provided to assist in the implementation of 
        intermediate rehabilitation objectives and long-term 
        rehabilitation goals for the individual; and
          [(III) if appropriate, include a statement of the 
        specific on-the-job and related personal assistance 
        services to be provided to the individual, and, if 
        appropriate and desired by the individual, the training 
        in managing, supervising, and directing personal 
        assistance services to be provided to the individual;
          [(v) include an assessment of the expected need for 
        postemployment services and, if appropriate, extended 
        services;
          [(vi) provide for--
                  [(I) a reassessment of the need for 
                postemployment services and, if appropriate, 
                extended services prior to the point of 
                successful rehabilitation, in accordance with 
                this subsection; and
                  [(II) if appropriate, the development of a 
                statement detailing how such services shall be 
                provided or arranged through cooperative 
                agreements with other service providers;
          [(vii) include objective criteria and an evaluation 
        procedure and schedule for determining whether such 
        goals and objectives are being achieved;
          [(viii) include the terms and conditions under which 
        goods and services described above will be provided to 
        the individual in the most integrated settings;
          [(ix) identify the entity or entities that will 
        provide the vocational rehabilitation services and the 
        process used to provide or procure such services;
          [(x) include a statement by the individual, in the 
        words of the individual (or, if appropriate, in the 
        words of a parent, a family member, a guardian, an 
        advocate, or an authorized representative, of the 
        individual), describing how the individual was informed 
        about and involved in choosing among alternative goals, 
        objectives, services, entities providing such services, 
        and methods used to provide or procure such services;
          [(xi) include, if necessary, an amendment 
        specifying--
                  [(I) the reasons that an individual for whom 
                a program has been prepared is no longer 
                eligible for vocational rehabilitation 
                services; and
                  [(II) the rights and remedies available to 
                such an individual including, if appropriate, 
                recourse to the processes set forth in 
                subsections (b)(2) and (d);
          [(xii) set forth the rights and remedies available to 
        such an individual including, if appropriate, recourse 
        to the processes set forth in subsections (b)(2) and 
        (d);
          [(xiii) provide a description of the availability of 
        a client assistance program established pursuant to 
        section 112;
          [(xiv) to the maximum extent possible, be provided in 
        the native language, or mode of communication, of the 
        individual, or, in an appropriate case, of a parent, a 
        family member, a guardian, an advocate, or an 
        authorized representative, of such individual; and
          [(xv) include information identifying other related 
        services and benefits provided pursuant to any Federal, 
        State, or local program that will enhance the capacity 
        of the individual to achieve the vocational objectives 
        of the individual.
  [(C) The designated State unit shall furnish a copy of the 
individualized written rehabilitation program and amendments to 
the program to the individual with a disability or, in an 
appropriate case, a parent, a family member, a guardian, an 
advocate, or an authorized representative, of the individual.
  [(2) Each individualized written rehabilitation program shall 
be reviewed annually, at which time such individual (or, in 
appropriate cases, the parents or guardian of the individual) 
will be afforded an opportunity to review such program and 
jointly redevelop and agree to its terms. Any revisions or 
amendments to the program resulting from such review shall be 
incorporated into or affixed to such program. Such revisions or 
amendments shall not take effect until agreed to and signed by 
the individual with a disability, or, if appropriate, by a 
parent, a family member, a guardian, an advocate, or an 
authorized representative, of such individual. Each 
individualized written rehabilitation program shall be revised 
as needed.
  [(c) The Director of the designated State unit shall also 
ensure that (1) in making any determination of ineligibility 
referred to in subsection (a) of this section, or in developing 
and carrying out the individualized written rehabilitation 
program required by section 101 in the case of each individual 
with a disability, emphasis is placed upon the determination 
and achievement of a vocational goal for such individual, (2) a 
decision that such an individual is not capable of achieving 
such a goal and thus is not eligible for vocational 
rehabilitation services provided with assistance under this 
part, is made only in full consultation with such individual 
(or, in appropriate cases, such individual's parents or 
guardians), and only upon the certification, as an amendment to 
such written program, or as a part of the specification of 
reasons for an ineligibility determination, as appropriate, 
that the preliminary diagnosis or assessment for determining 
eligibility and vocational rehabilitation needs described in 
subparagraphs (B) and (C) of section 7(22), as appropriate, has 
demonstrated that such individual is not then capable of 
achieving such a goal, and (3) any such decision, as an 
amendment to such written program, shall be reviewed at least 
annually in accordance with the procedure and criteria 
established in this section.
  [(d)(1) Except as provided in paragraph (4), the Director of 
any designated State unit shall establish procedures for the 
review of determinations made by the rehabilitation counselor 
or coordinator under this section, upon the request of an 
individual with a disability (or, in appropriate cases, such 
individual's parents or guardian).
  [(2)(A) Such review procedures shall provide an opportunity 
to such individuals for the submission of additional evidence 
and information to an impartial hearing officer who shall make 
a decision based on the provisions of the State plan approved 
under section 101(a).
  [(B) The impartial hearing officer shall be selected to hear 
a particular case--
          [(i) on a random basis; or
          [(ii) by agreement between--
                  [(I) the Director of the designated State 
                unit and the individual with a disability; or
                  [(II) in an appropriate case, the Director 
                and a parent, a family member, a guardian, an 
                advocate, or an authorized representative, of 
                such individual.
  [(C) The impartial hearing officer shall be selected from 
among a pool of qualified persons identified jointly by--
          [(i) the designated State unit; and
          [(ii)(I) the members of the State Rehabilitation 
        Advisory Council established under section 105 who were 
        appointed under one of clauses (v) through (viii) of 
        section 105(b)(1)(A), or under one of clauses (v) 
        through (ix) of section 105(b)(1)(B), as appropriate;
          [(II) the commission described in subparagraph (B) or 
        (C)(i) of section 101(a)(36); or
          [(III) the commissions described in section 
        101(a)(36)(C)(ii).
  [(3)(A) Within 20 days of the mailing of the decision to the 
individual with a disability (or, in appropriate cases, such 
individual's parents or guardian), the Director shall notify 
such individuals of the intent to review such decision in whole 
or in part.
  [(B) If the Director decides to review the decision, such 
individuals shall be provided an opportunity for the submission 
of additional evidence and information relevant to a final 
decision.
  [(C)(i) The Director may not overturn or modify a decision of 
an impartial hearing officer, or part of such a decision, that 
supports the position of the individual unless the Director 
concludes, based on clear and convincing evidence, that the 
decision of the independent hearing officer is clearly 
erroneous on the basis of being contrary to Federal or State 
law, including policy.
  [(ii) A final decision shall be made in writing by the 
Director and shall include a full report of the findings and 
the grounds for such decision.
  [(iii) Upon making a final decision, the Director shall 
provide a copy of such decision to such individual.
  [(D) Except as provided in paragraph (4), the Director may 
not delegate responsibility to make any such final decision to 
any other officer or employee of the designated State unit.
  [(4)(A) A fair hearing board, established by a State before 
January 1, 1985, and authorized under State law to review 
determinations under this Act, is authorized to carry out the 
responsibilities of the Director under this subsection.
  [(B) The provisions of paragraphs (1) through (3) of this 
subsection shall not apply to any State to which subparagraph 
(A) of this paragraph applies.
  [(5) Unless the individual with a disability so requests, or, 
in an appropriate case, a parent, a family member, a guardian, 
an advocate, or an authorized representative, of such 
individual so requests, pending a final determination of such 
hearing or other final resolution under this subsection, the 
designated State unit shall not institute a suspension, 
reduction, or termination of services being provided under the 
individualized written rehabilitation program, unless such 
services have been obtained through misrepresentation, fraud, 
collusion, or criminal conduct on the part of the individual 
with a disability.
  [(6)(A) The Director shall collect data described in 
subparagraph (B) and prepare and submit to the Commissioner a 
report containing such data. For the report submitted on or 
before February 1, 1988, the Commissioner shall prepare a 
summary of the information furnished under this paragraph and 
include the summary in the annual report submitted under 
section 13.
  [(B) The data required to be collected under this paragraph 
shall include--
          [(i) a description of State procedures for review;
          [(ii) the number of appeals to the independent 
        hearing officer and the State Director, including the 
        type of complaint and the issues involved;
          [(iii) the number of decisions by the State Director 
        reversing in whole or in part the decision of the 
        impartial hearing officer; and
          [(iv) the number of decisions affirming the position 
        of the individual with a disability assisted through 
        the client assistance program.

              [scope of vocational rehabilitation services

  [Sec. 103. (a) Vocational rehabilitation services provided 
under this Act are any goods or services necessary to render an 
individual with a disability employable, including, but not 
limited to, the following:
          [(1) an assessment for determining eligibility and 
        vocational rehabilitation needs by qualified personnel, 
        including, if appropriate, an assessment by personnel 
        skilled in rehabilitation technology;
          [(2) counseling, guidance, and work-related placement 
        services for individuals with disabilities, including 
        job search assistance, placement assistance, job 
        retention services, personal assistance services, and 
        followup, follow-along, and specific postemployment 
        services necessary to assist such individuals to 
        maintain, regain, or advance in employment;
          [(3) vocational and other training services for 
        individuals with disabilities, which shall include 
        personal and vocational adjustment, books, or other 
        training materials, and such services to the families 
        of such individuals as are necessary to the adjustment 
        or rehabilitation of such individuals, except that no 
        training services in institutions of higher education 
        shall be paid for with funds under this title unless 
        maximum efforts have been made to secure grant 
        assistance, in whole or in part, from other sources to 
        pay for such training;
          [(4) physical and mental restoration services, 
        including, but not limited to, (A) corrective surgery 
        or therapeutic treatment necessary to correct or 
        substantially modify a physical or mental condition 
        which is stable or slowly progressive and constitutes a 
        substantial impediment to employment, but is of such 
        nature that such correction or modification may 
        reasonably be expected to eliminate or reduce such 
        impediment to employment within a reasonable length of 
        time, (B) necessary hospitalization in connection with 
        surgery or treatment, (C) prosthetic and orthotic 
        devices, (D) eyeglasses and visual services as 
        prescribed by qualified personnel, under State 
        licensure laws, that are selected by the individual, 
        (E) special services (including transplantation and 
        dialysis), artificial kidneys, and supplies necessary 
        for the treatment of individuals with end-stage renal 
        disease, and (F) diagnosis and treatment for mental and 
        emotional disorders by qualified personnel under State 
        licensure laws;
          [(5) maintenance for additional costs incurred while 
        participating in rehabilitation;
          [(6) interpreter services for individuals who are 
        deaf, and reader services for those individuals 
        determined to be blind after an examination by 
        qualified personnel under State licensure laws;
          [(7) recruitment and training services for 
        individuals with disabilities to provide them with new 
        employment opportunities in the fields of 
        rehabilitation, health, welfare, public safety, and law 
        enforcement, and other appropriate service employment;
          [(8) rehabilitation teaching services and orientation 
        and mobility services for individuals who are blind;
          [(9) occupational licenses, tools, equipment, and 
        initial stocks and supplies;
          [(10) transportation in connection with the rendering 
        of any vocational rehabilitation service;
          [(11) telecommunications, sensory, and other 
        technological aids and devices;
          [(12) rehabilitation technology services;
          [(13) referral and other services designed to assist 
        individuals with disabilities in securing needed 
        services from other agencies through agreements 
        developed under section 101(a)(11), if such services 
        are not available under this Act;
          [(14) transition services that promote or facilitate 
        the accomplishment of long-term rehabilitation goals 
        and intermediate rehabilitation objectives;
          [(15) on-the-job or other related personal assistance 
        services provided while an individual with a disability 
        is receiving services described in this section; and
          [(16) supported employment services.
  [(b) Vocational rehabilitation services, when provided for 
the benefit of groups of individuals, may also include the 
following:
          [(1) In the case of any type of small business 
        operated by individuals with the most severe 
        disabilities the operation of which can be improved by 
        management services and supervision provided by the 
        State agency, the provision of such services and 
        supervision, along or together with the acquisition by 
        the State agency of vending facilities or other 
        equipment and initial stocks and supplies.
          [(2) The establishment, development, or improvement 
        of community rehabilitation programs, including, under 
        special circumstances, the construction of a facility, 
        and the provision of other services (including services 
        offered at community rehabilitation programs) which 
        promise to contribute substantially to the 
        rehabilitation of a group of individuals but which are 
        not related directly to the individualized 
        rehabilitation written program of any one individual 
        with a disability. Such programs shall be used to 
        provide services that promote integration and 
        competitive employment.
          [(3) The use of existing telecommunications systems 
        (including telephone, television, satellite, radio, and 
        other similar systems) which have the potential for 
        substantially improving service delivery methods, and 
        the development of appropriate programing to meet the 
        particular needs of individuals with disabilities.
          [(4) The use of services providing recorded material 
        for individuals who are blind and captioned films or 
        video cassettes for individuals who are deaf.
          [(5) Technical assistance and support services to 
        businesses that are not subject to title I of the 
        Americans with Disabilities Act of 1990 (42 U.S.C. 
        12111 et seq.) and that are seeking to employ 
        individuals with disabilities.

                  [non-federal share for construction

  [Sec. 104. For the purpose of determining the amount of 
payments to States for carrying out part B of this title (or to 
an Indian tribe under part D of this title), the non-Federal 
share, subject to such limitations and conditions as may be 
prescribed in regulations by the Commissioner, shall include 
contributions of funds made by any private agency, 
organization, or individual to a State or local agency to 
assist in meeting the costs of establishment of a community 
rehabilitation program or construction, under special 
circumstances, of a facility for such a program, which would be 
regarded as State or local funds except for the condition, 
imposed by the contributor, limiting use of such funds to 
establishment of such a program or construction of such a 
facility.
[SEC. 105. STATE REHABILITATION ADVISORY COUNCIL.

  [(a) Establishment.--
          [(1) In general.--Except as provided in subparagraph 
        (B) or (C) of section 101(a)(36), to be eligible to 
        receive financial assistance under this title a State 
        shall establish a State Rehabilitation Advisory Council 
        (referred to in this section as the ``Council'') in 
        accordance with this section.
          [(2) Separate agency for individuals who are blind.--
        A State that designates a State agency to administer 
        the part of the State plan under which vocational 
        rehabilitation services are provided for individuals 
        who are blind under section 101(a)(1)(A)(i) may 
        establish a separate Council in accordance with this 
        section to perform the duties of such a Council with 
        respect to such State agency.
  [(b) Composition and Appointment.--
          [(1) Composition.--
                  [(A) In general.--Except in the case of a 
                separate Council established under subsection 
                (a)(2), the Council shall be composed of--
                          [(i) at least one representative of 
                        the Statewide Independent Living 
                        Council established under section 705, 
                        which representative may be the 
                        chairperson or other designee of the 
                        Council;
                          [(ii) at least one representative of 
                        a parent training and information 
                        center established pursuant to section 
                        631(e)(1) of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 
                        1431(e)(1));
                          [(iii) at least one representative of 
                        the client assistance program 
                        established under section 112;
                          [(iv) at least one vocational 
                        rehabilitation counselor, with 
                        knowledge of and experience with 
                        vocational rehabilitation programs, who 
                        shall serve as an ex officio, nonvoting 
                        member of the Council if the counselor 
                        is an employee of the designated State 
                        agency;
                          [(v) at least one representative of 
                        community rehabilitation program 
                        service providers;
                          [(vi) four representatives of 
                        business, industry, and labor;
                          [(vii) representatives of disability 
                        advocacy groups representing a cross 
                        section of--
                                  [(I) individuals with 
                                physical, cognitive, sensory, 
                                and mental disabilities; and
                                  [(II) parents, family 
                                members, guardians, advocates, 
                                or authorized representatives, 
                                of individuals with 
                                disabilities who have 
                                difficulty in representing 
                                themselves or are unable due to 
                                their disabilities to represent 
                                themselves; and
                          [(viii) current or former applicants 
                        for, or recipients of, vocational 
                        rehabilitation services.
                  [(B) Separate council.--In the case of a 
                separate Council established under subsection 
                (a)(2), the Council shall be composed of--
                          [(i) at least one representative 
                        described in subparagraph (A)(i);
                          [(ii) at least one representative 
                        described in subparagraph (A)(ii);
                          [(iii) at least one representative 
                        described in subparagraph (A)(iii);
                          [(iv) at least one vocational 
                        rehabilitation counselor described in 
                        subparagraph (A)(iv), who shall serve 
                        as described in such subparagraph;
                          [(v) at least one representative 
                        described in subparagraph (A)(v);
                          [(vi) four representatives described 
                        in subparagraph (A)(vi);
                          [(vii) at least one representative of 
                        a disability advocacy group 
                        representing individuals who are blind;
                          [(viii) at least one parent, family 
                        member, guardian, advocate, or 
                        authorized representative, of an 
                        individual who--
                                  [(I) is an individual who is 
                                blind and has multiple 
                                disabilities; and
                                  [(II) has difficulty in 
                                representing himself or herself 
                                or is unable due to 
                                disabilities to represent 
                                himself or herself; and
                          [(ix) applicants or recipients 
                        described in subparagraph (A)(viii).
                  [(C) Exception.--In the case of a separate 
                Council established under subsection (a)(2), 
                any Council that is required by State law, as 
                in effect on the date of enactment of the 
                Rehabilitation Act Amendments of 1992, to have 
                fewer than 13 members shall be deemed to be in 
                compliance with subparagraph (B) if the 
                Council--
                          [(i) meets the requirements of 
                        subparagraph (B), other than the 
                        requirements of clauses (vi) and (ix) 
                        of such subparagraph; and
                          [(ii) includes at least--
                                  [(I) one representative 
                                described in subparagraph 
                                (B)(vi); and
                                  [(II) one applicant or 
                                recipient described in 
                                subparagraph (B)(ix).
          [(2) Ex officio member.--The Director of the 
        designated State unit shall be an ex officio member of 
        the Council.
          [(3) Appointment.--Members of the Council shall be 
        appointed by the Governor. In the case of a State that, 
        under State law, vests appointment authority in an 
        entity in lieu of, or in conjunction with, the 
        Governor, such as one or more houses of the State 
        legislature, or an independent board that has general 
        appointment authority, that entity shall make the 
        appointments. The appointing authority shall select 
        members after soliciting recommendations from 
        representatives of organizations representing a broad 
        range of individuals with disabilities and 
        organizations interested in individuals with 
        disabilities.
          [(4) Qualifications.--A majority of Council members 
        shall be persons who are--
                  [(A) individuals with disabilities described 
                in section 7(8)(B); and
                  [(B) not employed by the designated State 
                unit.
          [(5) Chairperson.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), the Council shall select a 
                chairperson from among the membership of the 
                Council.
                  [(B) Designation by governor.--In States in 
                which the Governor does not have veto power 
                pursuant to State law, the Governor shall 
                designate a member of the Council to serve as 
                the chairperson of the Council or shall require 
                the Council to so designate such a member.
          [(6) Terms of appointment.--
                  [(A) Length of term.--Each member of the 
                Council shall serve for a term of not more than 
                3 years, except that--
                          [(i) a member appointed to fill a 
                        vacancy occurring prior to the 
                        expiration of the term for which a 
                        predecessor was appointed, shall be 
                        appointed for the remainder of such 
                        term; and
                          [(ii) the terms of service of the 
                        members initially appointed shall be 
                        (as specified by the appointing 
                        authority) for such fewer number of 
                        years as will provide for the 
                        expiration of terms on a staggered 
                        basis.
                  [(B) Number of terms.--No member of the 
                Council may serve more than two consecutive 
                full terms.
          [(7) Vacancies.--Any vacancy occurring in the 
        membership of the Council shall be filled in the same 
        manner as the original appointment. The vacancy shall 
        not affect the power of the remaining members to 
        execute the duties of the Council.
  [(c) Functions of Council.--The Council shall--
          [(1) review, analyze, and advise the designated State 
        unit regarding the performance of the responsibilities 
        of the unit under this title, particularly 
        responsibilities relating to--
                  [(A) eligibility (including order of 
                selection);
                  [(B) the extent, scope, and effectiveness of 
                services provided; and
                  [(C) functions performed by State agencies 
                that affect or that potentially affect the 
                ability of individuals with disabilities in 
                achieving rehabilitation goals and objectives 
                under this title;
          [(2) advise the designated State agency and the 
        designated State unit, and, at the discretion of the 
        designated State agency, assist in the preparation of 
        applications, the State plan, the strategic plan and 
        amendments to the plans, reports, needs assessments, 
        and evaluations required by this title;
          [(3) to the extent feasible, conduct a review and 
        analysis of the effectiveness of, and consumer 
        satisfaction with--
                  [(A) the functions performed by State 
                agencies and other public and private entities 
                responsible for performing functions for 
                individuals with disabilities; and
                  [(B) vocational rehabilitation services--
                          [(i) provided, or paid for from funds 
                        made available, under this Act or 
                        through other public or private 
                        sources; and
                          [(ii) provided by State agencies and 
                        other public and private entities 
                        responsible for providing vocational 
                        rehabilitation services to individuals 
                        with disabilities;
          [(4) prepare and submit an annual report to the 
        Governor or appropriate State entity and the 
        Commissioner on the status of vocational rehabilitation 
        programs operated within the State, and make the report 
        available to the public;
          [(5) coordinate with other councils within the State, 
        including the Statewide Independent Living Council 
        established under section 705, the advisory panel 
        established under section 613(a)(12) of the Individuals 
        with Disabilities Education Act (20 U.S.C. 
        1413(a)(12)), the State Planning Council described in 
        section 124 of the Developmental Disabilities 
        Assistance and Bill of Rights Act (42 U.S.C. 6024), and 
        the State mental health planning council established 
        under section 1916(e) of the Public Health Service Act 
        (42 U.S.C. 300x-4(e));
          [(6) advise the State agency designated under section 
        101(a)(1) and provide for coordination and the 
        establishment of working relationships between the 
        State agency and the Statewide Independent Living 
        Council and centers for independent living within the 
        State; and
          [(7) perform such other functions, consistent with 
        the purpose of this title, as the State Rehabilitation 
        Advisory Council determines to be appropriate, that are 
        comparable to the other functions performed by the 
        Council.
  [(d) Resources.--
          [(1) Plan.--The Council shall prepare, in conjunction 
        with the designated State unit, a plan for the 
        provision of such resources, including such staff and 
        other personnel, as may be necessary to carry out the 
        functions of the Council under this section. The 
        resource plan shall, to the maximum extent possible, 
        rely on the use of resources in existence during the 
        period of implementation of the plan.
          [(2) Resolution of disagreements.--To the extent that 
        there is a disagreement between the Council and the 
        designated State unit in regard to the resources 
        necessary to carry out the functions of the Council as 
        set forth in this section, the disagreement shall be 
        resolved by the Governor or appointing agency 
        consistent with paragraph (1).
          [(3) Supervision and evaluation.--Each Council shall, 
        consistent with State law, supervise and evaluate such 
        staff and other personnel as may be necessary to carry 
        out its functions under this section.
          [(4) Personnel conflict of interest.--While assisting 
        the Council in carrying out its duties, staff and other 
        personnel shall not be assigned duties by the 
        designated State unit or any other agency or office of 
        the State, that would create a conflict of interest.
  [(e) Conflict of Interest.--No member of the Council shall 
cast a vote on any matter that would provide direct financial 
benefit to the member or otherwise give the appearance of a 
conflict of interest under State law.
  [(f) Meetings.--The Council shall convene at least 4 meetings 
a year in such places as it determines to be necessary to 
conduct Council business and conduct such forums or hearings as 
the Council considers appropriate. The meetings, hearings, and 
forums shall be publicly announced. The meetings shall be open 
and accessible to the general public unless there is a valid 
reason for an executive session.
  [(g) Compensation and Expenses.--The Council may use funds 
appropriated under this title (except for funds appropriated to 
carry out the client assistance program under section 112 and 
funds reserved pursuant to section 110(d) to carry out part D 
of this title) to reimburse members of the Council for 
reasonable and necessary expenses of attending Council meetings 
and performing Council duties (including child care and 
personal assistance services), and to pay compensation to a 
member of the Council, if such member is not employed or must 
forfeit wages from other employment, for each day the member is 
engaged in performing the duties of the Council.
  [(h) Hearings and Forums.--The Council is authorized to hold 
such hearings and forums as the Council may determine to be 
necessary to carry out the duties of the Council.
  [(i) Use of Existing Councils.--To the extent that a State 
has established a Council before September 30, 1992, that is 
comparable to the Council described in this section, such 
established Council shall be considered to be in compliance 
with this section. Within 1 year after the date of enactment of 
the Rehabilitation Act Amendments of 1992, such State shall 
establish a Council that complies in full with this section.

[SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

  [(a) Establishment.--
          [(1) In general.--The Commissioner shall, not later 
        than September 30, 1994, establish and publish 
        evaluation standards and performance indicators for the 
        vocational rehabilitation program under this title.
          [(2) Measures.--The standards and indicators shall 
        include outcome and related measures of program 
        performance that facilitate and in no way impede the 
        accomplishment of the purpose and policy of this title.
          [(3) Comment.--The standards and indicators shall be 
        developed with input from State vocational 
        rehabilitation agencies, related professional and 
        consumer organizations, recipients of vocational 
        rehabilitation services, and other interested parties. 
        The Commissioner shall publish in the Federal Register 
        a notice of intent to regulate regarding the 
        development of proposed standards and indicators. 
        Proposed standards and indicators shall be published in 
        the Federal Register for review and comment. Final 
        standards and indicators shall be published in the 
        Federal Register.
  [(b) Compliance.--
          [(1) State reports.--In accordance with regulations 
        established by the Secretary, each State shall report 
        to the Commissioner after the end of each fiscal year 
        the extent to which the State is in compliance with the 
        standards and indicators.
          [(2) Program improvement.--
                  [(A) Plan.--If the Commissioner determines 
                that the performance of any State is below 
                established standards, the Commissioner shall 
                provide technical assistance to the State and 
                the State and the Commissioner shall jointly 
                develop a program improvement plan outlining 
                the specific actions to be taken by the State 
                to improve program performance.
                  [(B) Review.--The Commissioner shall--
                          [(i) review the program improvement 
                        efforts of the State on a biannual 
                        basis and, if necessary, request the 
                        State to make further revisions to the 
                        plan to improve performance; and
                          [(ii) continue to conduct such 
                        reviews and request such revisions 
                        until the State sustains satisfactory 
                        performance over a period of more than 
                        1 year.
  [(c) Withholding.--If the Commissioner determines that a 
State whose performance falls below the established standards 
has failed to enter into a program improvement plan, or is not 
complying substantially with the terms and conditions of such a 
program improvement plan, the Commissioner shall, consistent 
with subsections (c) and (d) of section 107, reduce or make no 
further payments to the State under this program, until the 
State has entered into an approved program improvement plan, or 
satisfies the Commissioner that the State is complying 
substantially with the terms and conditions of such a program 
improvement plan, as appropriate.
  [(d) Report to Congress.--Beginning in fiscal year 1996, the 
Commissioner shall include in each annual report to the 
Congress under section 13 an analysis of program performance, 
including relative State performance, based on the standards 
and indicators.

[SEC. 107. MONITORING AND REVIEW.

  [(a) In General.--
          [(1) Duties.--In carrying out the duties of the 
        Commissioner under this title, the Commissioner shall--
                  [(A) provide for the annual review and 
                periodic on-site monitoring of programs under 
                this title; and
                  [(B) determine whether, in the administration 
                of the State plan, a State is complying 
                substantially with the provisions of such plan 
                and with evaluation standards and performance 
                indicators established under section 106.
          [(2) Procedures for reviews.--In conducting reviews 
        under this section the Commissioner shall consider, at 
        a minimum--
                  [(A) State policies and procedures;
                  [(B) guidance materials;
                  [(C) decisions resulting from hearings 
                conducted in accordance with due process;
                  [(D) strategic plans and updates;
                  [(E) plans and reports prepared under section 
                106(b);
                  [(F) consumer satisfaction surveys described 
                in section 101(a)(32);
                  [(G) information provided by the State 
                Rehabilitation Advisory Council established 
                under section 105;
                  [(H) reports; and
                  [(I) budget and financial management data.
          [(3) Procedures for monitoring.--In conducting 
        monitoring under this section the Commissioner shall 
        conduct--
                  [(A) on-site visits, including on-site 
                reviews of records to verify that the State is 
                following requirements regarding the order of 
                selection set forth in section 101(a)(5)(A);
                  [(B) public hearings and other strategies for 
                collecting information from the public;
                  [(C) meetings with the State Rehabilitation 
                Advisory Council;
                  [(D) reviews of individual case files, 
                including individualized written rehabilitation 
                programs and ineligibility determinations; and
                  [(E) meetings with rehabilitation counselors 
                and other personnel.
          [(4) Areas of inquiry.--In conducting the review and 
        monitoring, the Commissioner shall examine--
                  [(A) the eligibility process;
                  [(B) the provision of services, including, if 
                applicable, the order of selection;
                  [(C) whether the personnel evaluation system 
                described in section 101(a)(35) facilitates and 
                does not impede the accomplishments of the 
                program;
                  [(D) such other areas as may be identified by 
                the public or through meetings with the State 
                Rehabilitation Advisory Council; and
                  [(E) such other areas of inquiry as the 
                Commissioner may consider appropriate.
  [(b) Technical Assistance.--The Commissioner shall--
          [(1) provide technical assistance to programs under 
        this title regarding improving the quality of 
        vocational rehabilitation services provided; and
          [(2) provide technical assistance and establish a 
        corrective action plan for a program under this title 
        if the Commissioner finds that the program fails to 
        comply substantially with the provisions of the State 
        plan, or with evaluation standards or performance 
        indicators established under section 106, in order to 
        ensure that such failure is corrected as soon as 
        practicable.
  [(c) Failure To Comply With Plan.--
          [(1) Withholding payments.--Whenever the 
        Commissioner, after providing reasonable notice and an 
        opportunity for a hearing to the State agency 
        administering or supervising the administration of the 
        State plan approved under section 101, finds that--
                  [(A) the plan has been so changed that it no 
                longer complies with the requirements of 
                section 101(a); or
                  [(B) in the administration of the plan there 
                is a failure to comply substantially with any 
                provision of such plan or with an evaluation 
                standard or performance indicator established 
                under section 106,
        the Commissioner shall notify such State agency that no 
        further payments will be made to the State under this 
        title (or, in the discretion of the Commissioner, that 
        such further payments will be reduced, in accordance 
        with regulations the Commissioner shall prescribe, or 
        that further payments will not be made to the State 
        only for the projects under the parts of the State plan 
        affected by such failure), until the Commissioner is 
        satisfied there is no longer any such failure.
          [(2) Period.--Until the Commissioner is so satisfied, 
        the Commissioner shall make no further payments to such 
        State under this title (or shall reduce payments or 
        limit payments to projects under those parts of the 
        State plan in which there is no such failure).
          [(3) Disbursal of withheld funds.--The Commissioner 
        may, in accordance with regulations the Secretary shall 
        prescribe, disburse any funds withheld from a State 
        under paragraph (1) to any public or nonprofit private 
        organization or agency within such State or to any 
        political subdivision of such State submitting a plan 
        meeting the requirements of section 101(a). The 
        Commissioner may not make any payment under this 
        paragraph unless the entity to which such payment is 
        made has provided assurances to the Commissioner that 
        such entity will contribute, for purposes of carrying 
        out such plan, the same amount as the State would have 
        been obligated to contribute if the State received such 
        payment.
  [(d) Review.--
          [(1) Petition.--Any State that is dissatisfied with a 
        final determination of the Commissioner under section 
        101(b) or subsection (c) may file a petition for 
        judicial review of such determination in the United 
        States Court of Appeals for the circuit in which the 
        State is located. Such a petition may be filed only 
        within the 30-day period beginning on the date that 
        notice of such final determination was received by the 
        State. The clerk of the court shall transmit a copy of 
        the petition to the Commissioner or to any officer 
        designated by the Commissioner for that purpose. In 
        accordance with section 2112 of title 28, United States 
        Code, the Commissioner shall file with the court a 
        record of the proceeding on which the Commissioner 
        based the determination being appealed by the State. 
        Until a record is so filed, the Commissioner may modify 
        or set aside any determination made under such 
        proceedings.
          [(2) Submissions and determinations.--If, in an 
        action under this subsection to review a final 
        determination of the Commissioner under section 101(b) 
        or subsection (c), the petitioner or the Commissioner 
        applies to the court for leave to have additional oral 
        submissions or written presentations made respecting 
        such determination, the court may, for good cause 
        shown, order the Commissioner to provide within 30 days 
        an additional opportunity to make such submissions and 
        presentations. Within such period, the Commissioner may 
        revise any findings of fact, modify or set aside the 
        determination being reviewed, or make a new 
        determination by reason of the additional submissions 
        and presentations, and shall file such modified or new 
        determination, and any revised findings of fact, with 
        the return of such submissions and presentations. The 
        court shall thereafter review such new or modified 
        determination.
          [(3) Standards of review.--
                  [(A) In general.--Upon the filing of a 
                petition under paragraph (1) for judicial 
                review of a determination, the court shall have 
                jurisdiction--
                          [(i) to grant appropriate relief as 
                        provided in chapter 7 of title 5, 
                        United States Code, except for interim 
                        relief with respect to a determination 
                        under subsection (c); and
                          [(ii) except as otherwise provided in 
                        subparagraph (B), to review such 
                        determination in accordance with 
                        chapter 7 of title 5, United States 
                        Code.
                  [(B) Substantial evidence.--Section 706 of 
                title 5, United States Code, shall apply to the 
                review of any determination under this 
                subsection, except that the standard for review 
                prescribed by paragraph (2)(E) of such section 
                706 shall not apply and the court shall hold 
                unlawful and set aside such determination if 
                the court finds that the determination is not 
                supported by substantial evidence in the record 
                of the proceeding submitted pursuant to 
                paragraph (1), as supplemented by any 
                additional submissions and presentations filed 
                under paragraph (2).

[SEC. 108. EXPENDITURE OF CERTAIN AMOUNTS.

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

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

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

           [Part B--Basic Vocational Rehabilitation Services

                           [state allotments

  [Sec. 110. (a)(1) Subject to the provisions of subsection 
(d), for each fiscal year beginning before October 1, 1978, 
each State shall be entitled to an allotment of an amount 
bearing the same ratio to the amount authorized to be 
appropriated under section 100(b)(1) for allotment under this 
section as the product of (A) the population of the State, and 
(B) the square of its allotment percentage, bears to the sum of 
the corresponding products for all the States.
  [(2)(A) For each fiscal year beginning on or after October 1, 
1978, each State shall be entitled to an allotment in an amount 
equal to the amount such State received under paragraph (1) for 
the fiscal year ending September 30, 1978, and an additional 
amount determined pursuant to subparagraph (B) of this 
paragraph.
  [(B) For each fiscal year beginning on or after October 1, 
1978, each State shall be entitled to an allotment, from any 
amount authorized to be appropriated for such fiscal year under 
section 100(b)(1)(A) for allotment under this section in excess 
of the amount appropriated under section 100(b)(1)(A) for the 
fiscal year ending September 30, 1978, in an amount equal to 
the sum of--
          [(i) an amount bearing the same ratio to 50 percent 
        of such excess amount as the product of the population 
        of the State and the square of its allotment percentage 
        bears to the sum of the corresponding products for all 
        the States; and
          [(ii) an amount bearing the same ratio to 50 percent 
        of such excess amount as the product of the population 
        of the State and its allotment percentage bears to the 
        sum of the corresponding products for all the States.
  [(3) The sum of the payment to any State (other than Guam, 
American Samoa, the Virgin Islands, the Northern Mariana 
Islands, and the Republic of Palau) under this subsection for 
any fiscal year which is less than one-third of 1 percent of 
the amount appropriated under section 100(b)(1)(A), or 
$3,000,000, whichever is greater, shall be increased to that 
amount, the total of the increases thereby required being 
derived by proportionately reducing the allotment to each of 
the remaining such States under this subsection, but with such 
adjustments as may be necessary to prevent the sum of the 
allotments made under this subsection to any such remaining 
State from being thereby reduced to less than that amount.
  [(4) For each fiscal year beginning on or after October 1, 
1984, for which any amount is appropriated pursuant to section 
100(b)(1)(B), each State shall receive an allocation (from such 
appropriated amount) in addition to the allotment to which such 
State is entitled under paragraphs (2) and (3) of this 
subsection. Such additional allocation shall be an amount which 
bears the same ratio to the amount so appropriated as that 
State's allotment under paragraphs (2) and (3) of this 
subsection bears to the sum of such allotments of all the 
States.
  [(5) The Republic of Palau may receive allotments or 
allocations under this section only until the Compact of Free 
Association with Palau takes effect.
  [(b)(1) If the payment to a State under section 111(a) for a 
fiscal year is less than the total payments such State received 
under section 2 of the Vocational Rehabilitation Act for the 
fiscal year ending June 30, 1973, such State shall be entitled 
to an additional payment (subject to the same terms and 
conditions applicable to other payments under this part) equal 
to the difference between such payment under section 111(a) and 
the amount so received by it.
  [(2) If a State receives as its Federal share under section 
111(a) for any fiscal year less than the applicable Federal 
share of the expenditure of such State for fiscal year 1972 for 
vocational rehabilitation services under the plan for such 
State approved under section 101 (including any amount expended 
by such State for the administration of the State plan but 
excluding any amount expended by such State from non-Federal 
sources for construction under such plan), such State shall be 
entitled to an additional payment for such fiscal year, subject 
to the same terms and conditions applicable to other payments 
under this part, equal to the difference between such payment 
under section 111(a) and an amount equal to the applicable 
Federal share of such expenditure for vocational rehabilitation 
services.
  [(3) Any payment attributable to the additional payment to a 
State under this subsection shall be made only from 
appropriations specifically made to carry out this subsection, 
and such additional appropriations are hereby authorized.
  [(c)(1) Not later than forty-five days prior to the end of 
the fiscal year, the Commissioner shall determine, after 
reasonable opportunity for the submission to the Commissioner 
of comments by the State agency administering or supervising 
the program established under this title, that any payment of 
an allotment to a State under section 111(a) for any fiscal 
year will not be utilized by such State in carrying out the 
purposes of this title.
  [(2) As soon as practicable but not later than the end of the 
fiscal year, the Commissioner shall make such amount available 
for carrying out the purposes of this title to one or more 
other States to the extent the Commissioner determines such 
other State will be able to use such additional amount during 
that fiscal year or the subsequent fiscal year for carrying out 
such purposes. The Commissioner shall make such amount 
available only if such other State will be able to make 
sufficient payments from non-Federal sources to pay for the 
non-Federal share of the cost of vocational rehabilitation 
services under the State plan for the fiscal year for which the 
amount was appropriated.
  [(3) For the purposes of this part, any amount made available 
to a State for any fiscal year pursuant to this subsection 
shall be regarded as an increase of such State's allotment (as 
determined under the preceding provisions of this section) for 
such year.
  [(d)(1) For fiscal year 1987 and for each subsequent fiscal 
year, the Commissioner shall reserve from the amount 
appropriated under section 100(b)(1) for allotment under this 
section a sum, determined under paragraph (2), to carry out the 
purposes of part D of this title.
  [(2) The sum referred to in paragraph (1) shall be, as 
determined by the Secretary--
          [(A) not less than one-third of one percent and not 
        more than 1.5 percent of the amount under paragraph 
        (1), for fiscal years 1993 and 1994; and
          [(B) not less than one-half of one percent and not 
        more than 1.5 percent of the amount under paragraph 
        (1), for fiscal years 1995, 1996, and 1997.

                          [payments to states

  [Sec. 111. (a)(1) Except as provided in paragraph (2), from 
each State's allotment under this part for any fiscal year, the 
Commissioner shall pay to a State an amount equal to the 
Federal share of the cost of vocational rehabilitation services 
under the plan for that State approved under section 101, 
including expenditures for the administration of the State plan 
and development and implementation of the strategic plan as 
provided in section 101(a)(34)(A). Any State that receives such 
an amount shall expend, for development and implementation of 
the strategic plan, not less than the percentage of the 
allotment of the State referred to in section 101(a)(34)(B).
  [(2)(A) The total of payments under paragraph (1) to a State 
for a fiscal year may not exceed its allotment under subsection 
(a) of section 110 for such year and such payments shall not be 
made in an amount which would result in a violation of the 
provisions of the State plan required by section 101(a)(17).
  [(B)(i) For fiscal year 1993, the amount otherwise payable to 
a State for a fiscal year under this section shall be reduced 
by the amount by which expenditures from non-Federal sources 
under the State plan under this title for the previous fiscal 
year are less than the average of the total of such 
expenditures for the 3 fiscal years preceding the previous 
fiscal year.
  [(ii) For fiscal year 1994 and each fiscal year thereafter, 
the amount otherwise payable to a State for a fiscal year under 
this section shall be reduced by the amount by which 
expenditures from non-Federal sources under the State plan 
under this title for the previous fiscal year are less than the 
total of such expenditures for the second fiscal year preceding 
the previous fiscal year.
  [(C) The Commissioner may waive or modify any requirement or 
limitation under paragraphs (A) and (B) if the Commissioner 
determines that a waiver or modification is an equitable 
response to exceptional or uncontrollable circumstances 
affecting the State.
  [(3)(A) Except as provided in subparagraph (B), the amount of 
a payment under this section with respect to any construction 
project in any State shall be equal to the same percentage of 
the cost of such project as the Federal share that is 
applicable in the case of rehabilitation facilities (as defined 
in section 645(g) of the Public Health Service Act (42 U.S.C. 
291o(a))), in such State.
  [(B) If the Federal share with respect to rehabilitation 
facilities in such State is determined pursuant to section 
645(b)(2) of such Act (42 U.S.C. 291o(b)(2)), the percentage of 
the cost for purposes of this section shall be determined in 
accordance with regulations prescribed by the Commissioner 
designed to achieve as nearly as practicable results comparable 
to the results obtained under such section.
  [(b) The method of computing and paying amounts pursuant to 
subsection (a) shall be as follows:
          [(1) The Commissioner shall, prior to the beginning 
        of each calendar quarter or other period prescribed by 
        the Commissioner, estimate the amount to be paid to 
        each State under the provisions of such subsection for 
        such period, such estimate to be based on such records 
        of the State and information furnished by it, and such 
        other investigation as the Commissioner may find 
        necessary.
          [(2) The Commissioner shall pay, from the allotment 
        available therefor, the amount so estimated by the 
        Commissioner for such period, reduced or increased, as 
        the case may be, by any sum (not previously adjusted 
        under this paragraph) by which the Commissioner finds 
        that the estimate of the amount to be paid the State 
        for any prior period under such subsection was greater 
        or less than the amount which should have been paid to 
        the State for such prior period under such subsection. 
        Such payment shall be made prior to audit or settlement 
        by the General Accounting Office, shall be made through 
        the disbursing facilities of the Treasury Department, 
        and shall be made in such installments as the 
        Commissioner may determine.
                       [client assistance program

  [Sec. 112. (a) From funds appropriated under subsection (i), 
the Secretary shall, in accordance with this section, make 
grants to States to establish and carry out client assistance 
programs to provide assistance in informing and advising all 
clients and client applicants of all available benefits under 
this Act, and, upon request of such clients or client 
applicants, to assist and advocate for such clients or 
applicants in their relationships with projects, programs, and 
community rehabilitation programs providing services to them 
under this Act, including assistance and advocacy in pursuing 
legal, administrative, or other appropriate remedies to ensure 
the protection of the rights of such individuals under this Act 
and to facilitate access to the services funded under this Act 
through individual and systemic advocacy. The client assistance 
program shall provide information on the available services and 
benefits under this Act and title I of the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) to 
individuals with disabilities in the State, especially with 
regard to individuals with disabilities who have traditionally 
been unserved or underserved by vocational rehabilitation 
programs. In providing assistance and advocacy under this 
subsection with respect to services under this title, a client 
assistance program may provide the assistance and advocacy with 
respect to services that are directly related to facilitating 
the employment of the individual.
  [(b) No State may receive payments from its allotment under 
this Act in any fiscal year unless the State has in effect not 
later than October 1, 1984, a client assistance program which--
          [(1) has the authority to pursue legal, 
        administrative, and other appropriate remedies to 
        ensure the protection of rights of individuals with 
        disabilities who are receiving treatments, services, or 
        rehabilitation under this Act within the State; and
          [(2) meets the requirements of designation under 
        subsection (c).
  [(c)(1)(A) The Governor shall designate a public or private 
agency to conduct the client assistance program under this 
section. Except as provided in the last sentence of this 
paragraph, the Governor shall designate an agency which is 
independent of any agency which provides treatment, services, 
or rehabilitation to individuals under this Act. If there is an 
agency in the State which has, or had, prior to the date of 
enactment of the Rehabilitation Amendments of 1984, served as a 
client assistance agency under this section and which received 
Federal financial assistance under this Act, the Governor may, 
in the initial designation, designate an agency which provides 
treatment, services, or rehabilitation to individuals with 
disabilities under this Act.
  [(B) The Governor may not redesignate the agency designated 
under subparagraph (A) without good cause and unless--
          [(i) the Governor has given the agency 30 days notice 
        of the intention to make such redesignation, including 
        specification of the good cause for such redesignation 
        and an opportunity to respond to the assertion that 
        good cause has been shown;
          [(ii) individuals with disabilities or their 
        representatives have timely notice of the redesignation 
        and opportunity for public comment; and
          [(iii) the agency has the opportunity to appeal to 
        the Commissioner on the basis that the redesignation 
        was not for good cause.
  [(2) In carrying out the provisions of this section, the 
Governor shall consult with the director of the State 
vocational rehabilitation agency, the head of the developmental 
disability protection and advocacy agency, and with 
representatives of professional and consumer organizations 
serving individuals with disabilities in the State.
  [(3) The agency designated under this subsection shall be 
accountable for the proper use of funds made available to the 
agency.
  [(4) For the purpose of this subsection, the term 
``Governor'' means the chief executive of the State.
  [(d) The agency designated under subsection (c) of this 
section may not bring any class action in carrying out its 
responsibilities under this section.
  [(e)(1)(A) The Secretary shall allot the sums appropriated 
for each fiscal year under this section among the States on the 
basis of relative population of each State, except that no 
State shall receive less than $50,000.
  [(B) The Secretary shall allot $30,000 each to American 
Samoa, Guam, the Virgin Islands, the Northern Mariana Islands, 
and the Republic of Palau, except that the Republic of Palau 
may receive such allotment under this section only until the 
Compact of Free Association with Palau takes effect.
  [(C) For the purpose of this paragraph, the term ``State'' 
does not include American Samoa, Guam, the Virgin Islands, the 
Northern Mariana Islands, and the Republic of Palau.
  [(D)(i) In any fiscal year that the funds appropriated for 
such fiscal year exceed $7,500,000, the minimum allotment shall 
be $100,000 for States and $45,000 for territories.
  [(ii) For any fiscal year in which the total amount 
appropriated under subsection (h) exceeds the total amount 
appropriated under such subsection for the preceding fiscal 
year by a percentage greater than the most recent percentage 
change in the Consumer Price Index For All Urban Consumers 
published by the Secretary of Labor under section 100(c)(1), 
the Secretary shall increase each of the minimum allotments 
under clause (i) by such percentage change in the Consumer 
Price Index For All Urban Consumers.
  [(2) The amount of an allotment to a State for a fiscal year 
which the Secretary determines will not be required by the 
State during the period for which it is available for the 
purpose for which allotted shall be available for reallotment 
by the Secretary at appropriate times to other States with 
respect to which such a determination has not been made, in 
proportion to the original allotments of such States for such 
fiscal year, but with such proportionate amount for any of such 
other States being reduced to the extent it exceeds the sum the 
Secretary estimates such State needs and will be able to use 
during such period; and the total of such reduction shall be 
similarly reallotted among the States whose proportionate 
amounts were not so reduced. Any such amount so reallotted to a 
State for a fiscal year shall be deemed to be a part of its 
allotment for such fiscal year.
  [(3) Except as specifically prohibited by or as otherwise 
provided in State law, the Secretary shall pay to the agency 
designated under subsection (c) the amount specified in the 
application approved under subsection (f).
  [(f) No grant may be made under this section unless the State 
submits an application to the Secretary at such time, in such 
manner, and containing or accompanied by such information as 
the Secretary deems necessary to meet the requirements of this 
section.
  [(g) The Secretary shall prescribe regulations applicable to 
the client assistance program which shall include the following 
requirements:
          [(1) No employees of such programs shall, while so 
        employed, serve as staff or consultants of any 
        rehabilitation project, program, or facility receiving 
        assistance under this Act in the State.
          [(2) Each program shall be afforded reasonable access 
        to policymaking and administrative personnel in the 
        State and local rehabilitation programs, projects, or 
        facilities.
          [(3) Each program shall contain provisions designed 
        to assure that to the maximum extent possible mediation 
        procedures are used prior to resorting to 
        administrative or legal remedies.
          [(4) The agency designated under subsection (c) shall 
        submit an annual report to the Secretary on the 
        operation of the program during the previous year, 
        including a summary of the work done and the uniform 
        statistical tabulation of all cases handled by such 
        program. A copy of each such report shall be submitted 
        to the appropriate committees of the Congress by the 
        Secretary, together with a summary of such reports and 
        the Secretary's evaluation of the program, including 
        appropriate recommendations.
          [(5) Each such report shall contain information on 
        the number of requests the client assistance program 
        under this section receives annually, the number of 
        requests such program is unable to serve, and the 
        reasons that the program is unable to serve all the 
        requests.
          [(6) For purposes of such report or for any other 
        periodic audit, report, or evaluation of the 
        performance of a client assistance program under this 
        section, the Secretary shall not require such a program 
        to disclose the identity of, or any other personally 
        identifiable information related to, any individual 
        requesting assistance under such program.
  [(h) There are authorized to be appropriated such sums as may 
be necessary for fiscal years 1993 through 1997 to carry out 
the provisions of this section.

                [Part C--Innovation and Expansion Grants

[SEC. 120. STATE ELIGIBILITY.

  [Effective October 1, 1993, any State desiring to receive 
assistance under this part and part B of this title shall 
prepare and submit to the Commissioner a statewide strategic 
plan for developing and using innovative approaches for 
achieving long-term success in expanding and improving 
vocational rehabilitation services, including supported 
employment services, provided under the State plan submitted 
under section 101 and the supplement to the State plan 
submitted under part C of title VI.

[SEC. 121. CONTENTS OF STRATEGIC PLANS.

  [(a) Purpose and Policy.--The strategic plan shall be 
designed to achieve the purpose and policy of this title and 
carry out the State plan and the supplement to the State plan 
submitted under part C of title VI.
  [(b) Contents.--The strategic plan shall include--
          [(1) a statement of the mission, philosophy, values, 
        and principles of the vocational rehabilitation program 
        in the State;
          [(2) specific goals and objectives for expanding and 
        improving the system for providing the vocational 
        rehabilitation program;
          [(3) specific multifaceted and systemic approaches 
        for accomplishing the objectives, including interagency 
        coordination and cooperation, that build upon state-of-
        the-art practices and research findings and that 
        implement the State plan and the supplement to the 
        State plan submitted under part C of title VI;
          [(4) a description of the specific programs, 
        projects, and activities funded under this part and how 
        the programs, projects, and activities accomplish the 
        objectives; and
          [(5) specific criteria for determining whether the 
        objectives have been achieved, an assurance that the 
        State will conduct an annual evaluation to determine 
        the extent to which the objectives have been achieved, 
        and, if specific objectives have not been achieved, the 
        reasons that the objectives have not been achieved and 
        a description of alternative approaches that will be 
        taken.

[SEC. 122. PROCESS FOR DEVELOPING STRATEGIC PLANS.

  [(a) Period and Updates.--The strategic plan shall cover a 3-
year period and shall be updated on an annual basis to reflect 
actual experience over the previous year and input from the 
State Rehabilitation Advisory Council established under section 
105, individuals with disabilities, and other interested 
parties.
  [(b) Recommendations.--Prior to developing the strategic 
plan, the State shall hold public forums and meet with and 
receive recommendations from members of the State 
Rehabilitation Advisory Council and the Statewide Independent 
Living Council established under section 705.
  [(c) Consideration of Recommendations.--The State shall 
consider the recommendations and, if the State rejects the 
recommendations, shall include a written explanation of the 
rejection in the strategic plan.
  [(d) Procedure.--The State shall develop a procedure for 
ensuring ongoing comment from the councils described in 
subsection (b) as the plan is being implemented.
  [(e) Dissemination.--The State shall widely disseminate the 
strategic plan to individuals with disabilities, disability 
organizations, rehabilitation professionals, and other 
interested persons.

[SEC. 123. USE OF FUNDS.

  [A State may use funds made available under this part, 
directly or by grant, contract, or other arrangement, to carry 
out--
          [(1) programs to initiate and expand employment 
        opportunities for individuals with severe disabilities 
        in integrated settings that allow for the use of on-
        the-job training to promote the objectives of title I 
        of the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12111 et seq.);
          [(2) programs or activities to improve the provision 
        of, and expand, employment services in integrated 
        settings to individuals with sensory, cognitive, 
        physical, and mental impairments who have traditionally 
        not been served by the State vocational rehabilitation 
        agency;
          [(3) programs and activities to maximize the ability 
        of individuals with disabilities to use rehabilitation 
        technology in employment settings;
          [(4) programs and activities that--
                  [(A) assist employers in accommodating, 
                evaluating, training, or placing individuals 
                with disabilities in the workplace of the 
                employer consistent with provisions of this Act 
                and title I of the Americans with Disabilities 
                Act of 1990; and
                  [(B) may include short-term technical 
                assistance or other effective strategies;
          [(5) programs and activities that expand and improve 
        the extent and type of client involvement in the review 
        and selection of the training and employment goals of 
        the client;
          [(6) programs and activities that expand and improve 
        opportunities for career advancement for individuals 
        with severe disabilities;
          [(7) programs, projects, and activities designed to 
        initiate, expand, or improve working relationships 
        between vocational rehabilitation services provided 
        under this title and independent living services 
        provided under title VII;
          [(8) programs, projects, and activities designed to 
        improve functioning of the system for delivering 
        vocational rehabilitation services and to improve 
        coordination and working relationships with other State 
        and local agencies, business, industry, labor, 
        community rehabilitation programs, and centers for 
        independent living, including projects designed to--
                  [(A) increase the ease of access to, 
                timeliness of, and quality of vocational 
                rehabilitation services through the development 
                and implementation of policies, procedures, and 
                systems and interagency mechanisms for 
                providing vocational rehabilitation services;
                  [(B) improve the working relationships 
                between State vocational rehabilitation 
                agencies, and other State agencies, centers for 
                independent living, community rehabilitation 
                programs, educational agencies involved in 
                higher education, adult basic education, and 
                continuing education, and businesses, industry, 
                and labor organizations, in order to create and 
                facilitate cooperation in--
                          [(i) planning and implementing 
                        services; and
                          [(ii) the development of an 
                        integrated system of community-based 
                        vocational rehabilitation service that 
                        includes appropriate transitions 
                        between service systems; and
                  [(C) improve the ability of professionals, 
                clients, advocates, business, industry, and 
                labor to work in cooperative partnerships to 
                improve the quality of vocational 
                rehabilitation services and job and career 
                opportunities for individuals with 
                disabilities;
          [(9) support efforts to ensure that the annual 
        evaluation of the effectiveness of the program in 
        meeting the goals and objectives set forth in the State 
        plan, including the system for evaluating the 
        performance of rehabilitation counselors, coordinators, 
        and other personnel used in the State, facilitates and 
        does not impede the accomplishment of the purpose and 
        policy of this title, including serving, among others, 
        individuals with the most severe disabilities;
          [(10) support the initiation, expansion, and 
        improvement of a comprehensive system of personnel 
        development;
          [(11) support the provision of training and technical 
        assistance to clients, business, industry, labor, 
        community rehabilitation programs, and others regarding 
        the implementation of the amendments made by the 
        Rehabilitation Act Amendments of 1992, of title V of 
        this Act, and of the Americans with Disabilities Act of 
        1990; and
          [(12) support the funding of the State Rehabilitation 
        Advisory Council and the Statewide Independent Living 
        Council established under section 705.

[SEC. 124. ALLOTMENTS AMONG STATES.

  [(a) In General.--
          [(1) States.--
                  [(A) Population basis.--Except as provided in 
                subparagraph (B), from sums appropriated for 
                each fiscal year to carry out this part (not 
                including sums used in accordance with section 
                101(a)(34)(B)), the Commissioner shall make an 
                allotment to each State whose State plan has 
                been approved under section 101 of an amount 
                bearing the same ratio to such sums as the 
                population of the State bears to the population 
                of all States.
                  [(B) Minimums.--Subject to the availability 
                of appropriations to carry out this part, the 
                allotment to any State under subparagraph (A) 
                shall be not less than $200,000 or one-third of 
                one percent of the sums made available for the 
                fiscal year for which the allotment is made, 
                whichever is greater, and the allotment of any 
                State under this section for any fiscal year 
                that is less than $200,000 or one-third of one 
                percent of such sums shall be increased to the 
                greater of the two amounts.
          [(2) Certain territories.--
                  [(A) In general.--For the purposes of 
                paragraph (1)(B), Guam, American Samoa, the 
                United States Virgin Islands, the Commonwealth 
                of the Northern Mariana Islands, and the 
                Republic of Palau shall not be considered to be 
                States.
                  [(B) Allotment.--Each jurisdiction described 
                in subparagraph (A) shall be allotted under 
                paragraph (1)(A) not less than one-eighth of 
                one percent of the amounts made available for 
                purposes of this part for the fiscal year for 
                which the allotment is made, except that the 
                Republic of Palau may receive such allotment 
                under this section only until the Compact of 
                Free Association with Palau takes effect.
          [(3) Adjustment for inflation.--For any fiscal year, 
        beginning in fiscal year 1994, in which the total 
        amount appropriated to carry out this part exceeds the 
        total amount appropriated to carry out this part for 
        the preceding fiscal year by a percentage greater than 
        the most recent percentage change in the Consumer Price 
        Index For All Urban Consumers published by the 
        Secretary of Labor under section 100(c)(1), the 
        Commissioner shall increase the minimum allotment under 
        paragraph (1)(B) by such percentage change in the 
        Consumer Price Index For All Urban Consumers.
  [(b) Proportional Reduction.--To provide minimum allotments 
to States (as increased under subsection (a)(3)) under 
subsection (a)(1)(B), or to provide minimum allotments to 
States under subsection (a)(2)(B), the Commissioner shall 
proportionately reduce the allotments of the remaining States 
under subsection (a)(1)(A), with such adjustments as may be 
necessary to prevent the allotment of any such remaining State 
from being reduced to less than the minimum allotment for a 
State (as increased under subsection (a)(3)) under subsection 
(a)(1)(B), or the minimum allotment for a State under 
subsection (a)(2)(B), as appropriate.
  [(c) Reallotment.--Whenever the Commissioner determines that 
any amount of an allotment to a State for any fiscal year will 
not be expended by such State for carrying out the provisions 
of this part, the Commissioner shall make such amount available 
for carrying out the purposes of this part to one or more of 
the States that the Commissioner determines will be able to use 
additional amounts during such year for carrying out such 
provisions. Any amount made available to a State for any fiscal 
year pursuant to the preceding sentence shall, for the purposes 
of this section, be regarded as an increase in the allotment of 
the State (as determined under the preceding provisions of this 
section) for such year.
      [Part D--American Indian Vocational Rehabilitation Services

               [vocational rehabilitation services grants

  [Sec. 130. (a) The Commissioner, in accordance with the 
provisions of this part, may make grants to the governing 
bodies of Indian tribes located on Federal and State 
reservations (and consortia of such governing bodies) to pay 90 
percent of the costs of vocational rehabilitation services for 
American Indians who are individuals with disabilities residing 
on such reservations. The non-Federal share of such costs may 
be in cash or in kind, fairly valued, and the Commissioner may 
waive such non-Federal share requirement in order to carry out 
the purposes of this Act.
  [(b)(1) No grant may be made under this part for any fiscal 
year unless an application therefor has been submitted to and 
approved by the Commissioner. The Commissioner may not approve 
an application unless the application--
          [(A) is made at such time, in such manner, and 
        contains such information as the Commissioner may 
        require;
          [(B) contains assurances that the rehabilitation 
        services provided under this part to American Indians 
        who are individuals with disabilities residing on a 
        reservation in a State shall be, to the maximum extent 
        feasible, comparable to rehabilitation services 
        provided under this title to other individuals with 
        disabilities residing in the State and that, where 
        appropriate, may include services traditionally used by 
        Indian tribes; and
          [(C) contains assurances that the application was 
        developed in consultation with the designated State 
        unit of the State.
  [(2) The provisions of sections 5, 6, 7, and 102(a) of the 
Indian Self-Determination and Education Assistance Act shall be 
applicable to any application submitted under this part. For 
purposes of this paragraph, any reference in any such provision 
to the Secretary of Education or to the Secretary of the 
Interior shall be considered to be a reference to the 
Commissioner.
  [(3) Any application approved under this part shall be 
effective for not less than twelve months or more than 36 
months, except as determined otherwise by the Commissioner 
pursuant to prescribed regulations. The State shall continue to 
provide vocational rehabilitation services under its State plan 
to American Indians residing on a reservation whenever such 
State includes any such American Indians in its State 
population under section 110(a)(1).
  [(4) In making grants under this part, the Secretary shall 
give priority consideration to applications for the 
continuation of programs which have been funded under this 
part.
  [(5) Nothing in this section may be construed to authorize a 
separate service delivery system for Indian residents of a 
State who reside in non-reservation areas.
  [(c) The term ``reservation'' includes Indian reservations, 
public domain Indian allotments, former Indian reservations in 
Oklahoma, and land held by incorporated Native groups, regional 
corporations, and village corporations under the provisions of 
the Alaska Native Claims Settlement Act.

     [Part E--Vocational Rehabilitation Services Client Information

[SEC. 140. REVIEW OF DATA COLLECTION AND REPORTING SYSTEM.

  [(a) Review.--The Commissioner shall conduct a comprehensive 
review of the current system for collecting and reporting data 
on clients of programs carried out under this Act, particularly 
data on clients of the programs carried out under this title.
  [(b) Considerations.--
          [(1) Current data.--In conducting the review, the 
        Commissioner shall examine the kind, quantity, and 
        quality of the data that are currently collected and 
        reported, taking into consideration the range of 
        purposes that the data serve at the Federal, State, and 
        local levels.
          [(2) Additional information.--In conducting the 
        review, the Commissioner shall examine the feasibility 
        of collecting and reporting under the system 
        information, if such information can be determined, 
        with respect to each client participating in a program 
        under this Act, regarding--
                  [(A) other programs in which the client 
                participated during the 3 years before the date 
                on which the client applied to participate in a 
                program under this Act;
                  [(B) the number of jobs held, hours worked, 
                and earnings received by the client during such 
                3 years;
                  [(C) the types of major and secondary 
                disabilities of the client;
                  [(D) the dates of the onset of the 
                disabilities;
                  [(E) the severity of the disabilities;
                  [(F) the source from which the client was 
                referred to a program under this Act;
                  [(G) the hours worked by the client;
                  [(H) the size and industry code of the place 
                of employment of the client at the time of 
                entry into such a program and at the 
                termination of services under the program;
                  [(I) the number of services provided to the 
                client under the programs and the cost of each 
                service;
                  [(J) the types of public support received by 
                the client;
                  [(K) the primary sources of economic support 
                and amounts of public assistance received by 
                the client before and after receiving the 
                services;
                  [(L) whether the client is covered by health 
                insurance from any source and whether health 
                insurance is available through the employer of 
                the client;
                  [(M) the supported employment status of the 
                client; and
                  [(N) the reasons for terminating the services 
                received by the client.
  [(c) Recommendations.--Based on the review, the Commissioner 
shall recommend improvements in the data collection and 
reporting system.
  [(d) Views.--In developing the recommendations, the 
Commissioner shall seek views of persons and entities providing 
or using such data, including State agencies, State 
Rehabilitation Advisory Councils, providers of vocational 
rehabilitation services, professionals in the field of 
vocational rehabilitation, clients and organizations 
representing clients, the National Council on Disability, other 
Federal agencies, non-Federal researchers, other analysts using 
the data, and other members of the public.
  [(e) Publication and Submission of Report.--Not later than 18 
months after the date of the enactment of the Rehabilitation 
Act Amendments of 1992 (Public Law 102-569), the Commissioner 
shall publish the recommendations in the Federal Register and 
shall prepare and submit a report containing the 
recommendations to the appropriate committees of Congress. The 
Commissioner shall not implement the recommendations earlier 
than 90 days after the date on which the Commissioner submits 
the report.

[SEC. 141. EXCHANGE OF DATA.

  [(a) Exchange.--The Secretary of Education and the Secretary 
of Health and Human Services shall enter into a memorandum of 
understanding for the purposes of exchanging data of mutual 
importance--
          [(1) that concern clients of State vocational 
        rehabilitation agencies; and
          [(2) that are data maintained either by--
                  [(A) the Rehabilitation Services 
                Administration, as required by section 13; or
                  [(B) the Social Security Administration, from 
                its Summary Earnings and Records and Master 
                Beneficiary Records.
  [(b) Treatment of Information.--For purposes of the exchange, 
the data described in subsection (a)(2)(B) shall not be 
considered return information (as defined in section 6103(b)(2) 
of the Internal Revenue Code of 1986) and, as appropriate, the 
confidentiality of all client information shall be maintained 
by both agencies.]
              TITLE I--VOCATIONAL REHABILITATION SERVICES

SEC. 100. PURPOSE.

  The purpose of this title is to assist States in making 
available to individuals with disabilities a program of 
employment, training, and rehabilitation services that is 
consistent with their strengths, resources, priorities, 
concerns, abilities, and capabilities; that maximizes 
individuals' control over their vocational and career choices; 
and that is in accordance with the goal of assuring equality of 
opportunity, full participation, independent living, and 
economic self-sufficiency for such individuals.

SEC. 101. FORMULA GRANTS.

  (a) In General.--
          (1) Formula grants.--In the case of each State that 
        submits to the Secretary a workforce development and 
        literacy plan for fiscal year 1999 or any subsequent 
        fiscal year that meets the requirement of section 104 
        of the Consolidated and Reformed Education, Employment, 
        and Rehabilitation Systems Act, the Secretary shall 
        make a grant for the year to the State as the Federal 
        share of carrying out the purposes specified in this 
        title. The grant shall consist of the allotment 
        determined for the State under section 107.
          (2) Conditions for grant.--A State may receive a 
        grant under paragraph (1) for a fiscal year only if the 
        State meets the conditions described in this title for 
        the State for the fiscal year.
  (b) Administrator of Federal Program.--The Secretary shall 
carry out this title acting through the Commissioner of the 
Rehabilitation Services Administration, except as indicated 
otherwise.
  (c) Rule of Construction.--The purpose specified in section 
100 shall be carried out only in accordance with the other 
provisions of this title.
  (d) Funding.--
          (1) Authorization of appropriations.--For the purpose 
        of carrying out this title, there are authorized to be 
        appropriated such sums as may be necessary for each of 
        the fiscal years 1999 through 2002, except that the 
        amount to be appropriated for a fiscal year shall not 
        be less than the amount of the appropriation under this 
        subsection for the immediately preceding fiscal year, 
        plus the amount of the Consumer Price Index addition 
        determined under paragraph (2) for the immediately 
        preceding fiscal year.
          (2) Adjustments pursuant to consumer price index.--
                  (A) Not later than November 15 of each fiscal 
                year, the Secretary of Labor shall publish in 
                the Federal Register the percentage change in 
                the Consumer Price Index published for October 
                of the preceding fiscal year and October of the 
                fiscal year in which such publication is made.
                  (B) If in any fiscal year the percentage 
                change published under subparagraph (A) 
                indicates an increase in the Consumer Price 
                Index, then the amount to be appropriated under 
                paragraph (1) for the subsequent fiscal year 
                shall be at least the amount appropriated for 
                the fiscal year in which the publication is 
                made under subparagraph (A) increased by such 
                percentage change.
                  (C) If in any fiscal year the percentage 
                change published under subparagraph (A) does 
                not indicate an increase in the Consumer Price 
                Index, then the amount to be appropriated under 
                paragraph (1) for the subsequent fiscal year 
                shall be at least the amount appropriated for 
                the fiscal year in which the publication is 
                made under subparagraph (A).
                  (D) For purposes of this paragraph, the term 
                ``Consumer Price Index'' means the Consumer 
                Price Index for All Urban Consumers, published 
                monthly by the Bureau of Labor Statistics.
          (3) Automatic extension of authorization.--
                  (A) Unless, in the regular session that ends 
                prior to the beginning of the last fiscal year 
                for which an authorization of appropriations is 
                provided in paragraph (1), legislation has been 
                enacted that has the effect of extending such 
                authorization, such authorization is 
                automatically extended for one additional year.
                  (B) The amount authorized to be appropriated 
                for the additional fiscal year described in 
                subparagraph (A) shall be an amount equal to 
                the amount appropriated for such program for 
                fiscal year 2002, plus the amount of the 
                Consumer Price Index addition determined under 
                paragraph (2) for the immediately preceding 
                fiscal year.
                  (C) In any case where the Commissioner is 
                required under an applicable statute to carry 
                out certain acts or make certain determinations 
                that are necessary for the continuation of the 
                program authorized by this title, and such acts 
                or determinations are required during the last 
                fiscal year for which an authorization of 
                appropriations is provided in paragraph (1), 
                such acts and determinations shall be required 
                during any fiscal year for which subparagraph 
                (A) is in operation.

SEC. 102. ALLOCATION WITHIN STATE OF ADMINISTRATIVE RESPONSIBILITIES.

  (a) In General.--For purposes of section 101(a), a State 
will--
          (1) subject to subsection (b), reserve not more than 
        20 percent of the grant under such section for the 
        fiscal year involved for carrying out the 
        responsibilities of a State administrative agent under 
        section 103; and
          (2) reserve not less than 80 percent of the grant for 
        carrying out the responsibilities under section 104 of 
        local workforce development boards and one-stop career 
        centers with respect to workforce development areas.
  (b) Additional State Responsibilities.--Amounts reserved by a 
State under subsection (a)(1) may be expended by the State 
administrative agent to carry out responsibilities that 
otherwise would be carried out under section 104 by local 
workforce development boards or one-stop career centers, if the 
State determines that such expenditures are justified to make 
available goods and services that could not otherwise be 
obtained within a local workforce development area, to provide 
services to individuals unable to utilize the one-stop career 
centers, or to otherwise ensure the efficient and equitable 
provision in the State of services under this title, including 
the provision of services for individuals in rural areas.
  (c) Certain Definitions.--For purposes of this Act, the terms 
``State administrative agent'', ``local workforce development 
area'', ``local workforce development board'', and ``one-stop 
career center'' have the meanings given such terms in sections 
105 through 108, respectively, of the Consolidated and Reformed 
Education, Employment, and Rehabilitation Systems Act.

SEC. 103. RESPONSIBILITIES OF STATE ADMINISTRATIVE AGENT.

  (a) State Administrative Agent.--In carrying out the 
requirements of the Consolidated and Reformed Education, 
Employment, and Rehabilitation Systems Act, a Governor may 
designate--
          (1) one State administrative agent to be responsible 
        for carrying out this title for individuals who are 
        blind; and
          (2) a different State administrative agent to carry 
        out the remaining responsibilities in this title.
  (b) Responsibilities.--For purposes of section 101(a) and the 
operation in a State of the program under this title:
          (1) This subsection, and the subsequent provisions of 
        this section, will be carried out by State 
        administrative agents designated by the Governor in 
        accordance with subsection (a), through the 
        collaborative process established under section 103 of 
        the Consolidated and Reformed Education, Employment, 
        and Rehabilitation Systems Act.
          (2)(A) The State will provide to the public an 
        explanation of the methods by which the State will 
        provide vocational rehabilitation services (as defined 
        in section 104(b))--
                  (i) to all eligible individuals (as defined 
                in section 105(d)); and
                  (ii) within all local workforce delivery 
                areas in the State.
          (B) In the event that such services cannot be 
        provided to all eligible individuals who apply for the 
        services, the State will show and provide the 
        justification for the order to be followed in selecting 
        individuals to whom the services will be provided.
          (C) The order of selection under subparagraph (B) 
        will be determined on the basis of serving first those 
        individuals with the most severe disabilities, in 
        accordance with criteria established by the State.
          (3) The State will establish guidelines providing 
        that, in the case of an individual to whom the State 
        will provide a service (in accordance with the order of 
        selection under paragraph (2) and the assessment of 
        needs under section 104(c)(1)), the individual will 
        have the option of receiving the service from a 
        provider designated by the center or from a provider 
        selected by the individual pursuant to vouchers under 
        subsection (c).
          (4) Pursuant to section 109 of the Consolidated and 
        Reformed Education, Employment, and Rehabilitation 
        Systems Act, the State will make significant efforts to 
        encourage the participation in the State program of 
        community-based private providers, with special 
        consideration given to providers who have received 
        funds under this Act regarding projects with industry 
        or supported employment services, or under the Act 
        commonly known as the Javits-Wagner-O'Day Act (41 
        U.S.C. 46 et seq.) for employment and training 
        services.
          (5) The State will establish provisions to govern 
        determinations under section 105 (relating to the 
        eligibility of individuals).
          (6) The State will establish standards to govern the 
        conduct under section 104(c)(1) of assessments of need, 
        including the development of a methodology that will be 
        applied in a reasonably uniform manner to all 
        individuals for whom such assessments are conducted, 
        and that (subject to the order of selection under 
        paragraph (2)) will be designed to prevent substantial 
        disparities, among individuals with comparable 
        circumstances, in the monetary value of the services to 
        be provided pursuant to the assessments.
          (7)(A) The State will establish procedures through 
        which an individual may request and obtain an impartial 
        review, utilizing an impartial hearing officer, of 
        whether standards for determinations of eligibility for 
        services, assessments of vocational rehabilitation 
        needs, and development of individualized rehabilitation 
        and employment plans under this title were correctly 
        applied to the individual by the one-stop career center 
        involved.
          (B) The State will designate a number of days 
        (applied uniformly to all individuals) within which 
        review under subparagraph (A) will be conducted once a 
        request for such review is made by an individual, 
        subject to subparagraph (C).
          (C)(i) The State will provide that there may be an 
        informal hearing, mediation, or alternatives to such 
        review, if agreed upon by the individual and the one-
        stop career center involved.
          (ii) The State will provide that if, in a process 
        utilized under clause (i) by an individual, there is a 
        not a final disposition of the matter involved, review 
        under subparagraph (A) will remain available to the 
        individual.
          (8) The State will ensure that vocational 
        rehabilitation services under this title, and related 
        core services, are provided by personnel who are 
        qualified to provide the services involved. For 
        purposes of the preceding sentence, the term ``core 
        services'' has the meaning indicated for such term 
        under title I of the Consolidated and Reformed 
        Education, Employment, and Rehabilitation Systems Act.
          (9) The State will establish plans, policies, and 
        procedures to be followed in carrying out the program 
        under this title in the State (including entering into 
        a formal interagency cooperative agreement with 
        education officials responsible for the provision of a 
        free appropriate public education to students who are 
        individuals with disabilities). The State will ensure 
        that such plans, policies, and procedures are designed 
        in accordance with the following:
                  (A)(i) To facilitate the development and 
                accomplishment of the goals and objectives 
                described in clause (ii) (including the 
                specification of plans for coordination with 
                the educational agencies in the provision of 
                transition services), to the extent that the 
                goals and objectives are included in an 
                individualized education program of a student.
                  (ii) The goals and objectives referred to in 
                clause (i) are long-term rehabilitation goals; 
                intermediate rehabilitation objectives; and 
                goals and objectives related to enabling a 
                student to live independently before the 
                student leaves a school setting.
                  (B) To facilitate the transition from the 
                provision of a free appropriate public 
                education under the responsibility of an 
                educational agency to the provision of 
                vocational rehabilitation services under this 
                title, including the specification of plans for 
                coordination with educational agencies in the 
                provision of transition services to an 
                individual.
                  (C) To provide for--
                          (i) provisions for determining State 
                        lead agencies and qualified personnel 
                        responsible for transition services;
                          (ii) procedures for outreach to and 
                        identification of youth in need of such 
                        services; and
                          (iii) a timeframe for evaluation and 
                        followup of youth who have received 
                        such services.
          (10) The State will provide for coordination and 
        working relationships with the Statewide Independent 
        Living Council established under section 705 and 
        independent living centers within the State.
          (11) The State will provide for interagency 
        cooperation with, and the utilization of the services 
        and facilities of, the State agencies administering the 
        State's public assistance programs, and other programs 
        for individuals with disabilities.
          (12) With respect to the one-stop career centers 
        operated pursuant to section 104, the State will 
        provide for the appropriate training of the management 
        and staff of the centers regarding the effective 
        provision of services to individuals with disabilities.
          (13) The State will provide technical assistance to 
        local boards, one-stop career centers, and providers 
        relating to the effective provision of vocational 
        rehabilitation services under this title, including the 
        effective development of individualized rehabilitation 
        and employment plans, and will ensure that such 
        technical assistance is provided through appropriate 
        means.
  (c) Availability of Voucher System Regarding Services.--For 
purposes of section 101(a) and the operation in a State of the 
program under this title:
          (1) The State will provide for the establishment of a 
        system to carry out this subsection.
          (2) In the case of an eligible individual who (in 
        accordance with the order of selection under subsection 
        (b)(2) and the assessment of needs under section 
        105(b)(2)(A)) will receive vocational rehabilitation 
        services under this title, the one-stop career center 
        involved will, upon request of the individual, provide 
        to the individual vouchers in accordance with this 
        subsection.
          (3) Vouchers under this subsection will enable such 
        individual to obtain the vocational rehabilitation 
        services involved from providers selected by the 
        individual from among a list of providers approved by 
        the State for such purpose in accordance with section 
        109 of the Consolidated and Reformed Education, 
        Employment, and Rehabilitation Systems Act.
          (4) The monetary value of a voucher provided to the 
        individual for a particular type of service will be 
        calculated at a fair market value.
          (5) To the extent practicable, the list of providers 
        under paragraph (3) will provide for the availability 
        within each local workforce development area of a broad 
        range of services.
          (5)(A) *[The aggregate value of the vouchers 
        available to the individual will be established in 
        proportion to the degree of the individual's need for 
        rehabilitation (as determined under section 104(c)(1)). 
        Such value regarding the individuals will be adjusted 
        to address emerging needs that arise during the course 
        of the individual's rehabilitation and employment 
        program.
          (B) *[With respect to the order of selection under 
        subsection (b)(2), subparagraph (A) will be carried out 
        for the individual before amounts under this title are 
        expended for eligible individuals whose eligibility was 
        first determined after the individual for whom such 
        subparagraph is being carried out]. deg.
  (d) State Options.--With respect to compliance with this 
section, a State may, in the discretion of the State, expend a 
grant under section 101 for the following:
          (1) To disseminate findings from research regarding 
        vocational rehabilitation services, after consideration 
        of requests from local workforce development boards and 
        one-stop career centers regarding the types of 
        information needed by such boards and centers.
          (2) To conduct demonstration projects regarding 
        improvements with respect to vocational rehabilitation 
        services, subject to providing the results of such 
        projects to the Commissioner and as appropriate 
        disseminating the results within the State.
  (e) Core Standards, Performance Goals, and Measures.--For 
purposes of section 101(a):
          (1) The State involved will develop and implement a 
        statewide system of core standards and measures of 
        performance for programs established under this title, 
        based upon performance standards described in paragraph 
        (3), and consistent with the State's goals and 
        objectives and the benchmarking process described in 
        the workforce development and literacy plan submitted 
        by the State under section 104 of the Consolidated and 
        Reformed Education, Employment, and Rehabilitation 
        Systems Act.
          (2) The statewide system will--
                  (A) establish performance goals to define the 
                level of performance to be achieved by 
                individuals served under this title and to 
                evaluate the quality and effectiveness of 
                services and activities under this title;
                  (B) express such goals in an objective, 
                quantifiable, and measurable form;
                  (C) establish performance indicators or 
                benchmarks that the State and local recipients 
                of funds will use in measuring or assessing 
                progress toward achieving such goals; and
                  (D) provide biennial reports to the public 
                and to the Secretary on the State's progress in 
                achieving its goals.
          (3) The statewide system will include measures of--
                  (A) placement, retention, and earnings of 
                participants in integrated employment, 
                including retention and earnings at 6 months, 
                and at 1 year after program termination, 
                respectively;
                  (B) the percentage of individuals served who 
                had severe disabilities, including those 
                individuals determined to have a disability 
                under title II or title XVI of the Social 
                Security Act; and
                  (C) other relevant measures of program 
                performance included in the standards and 
                indicators promulgated by the Commissioner 
                under sections 621 and 106 (relating to 
                projects with industry, and relating to 
                evaluation standards and indicators for 
                vocational rehabilitation, respectively), as 
                such sections were in effect for fiscal year 
                1995.

SEC. 104. RESPONSIBILITIES FOR LOCAL BOARDS AND SERVICE CENTERS.

  (a) Provision of Vocational Rehabilitation Services.--For 
purposes of section 101(a) and the operation in a State of the 
program under this title:
          (1) This section will be carried out by the one-stop 
        career centers in the State, with each such center 
        acting under the guidance of the local workforce 
        development board for the local workforce area within 
        which the center operates. Such centers will provide 
        services under this section directly or through 
        contract.
          (2) In accordance with the order of selection under 
        section 103(b)(2), a one-stop career center will, in 
        expending amounts provided to the center from a grant 
        under section 101, carry out the following:
                  (A) Make determinations under section 105 of 
                the eligibility of individuals for vocational 
                rehabilitation services (as defined in 
                subsection (b)).
                  (B) Provide for vocational rehabilitation 
                services for eligible individuals.
                  (C) In the case of individuals with severe 
                disabilities, conduct outreach and intake 
                activities for such individuals who are not 
                able to directly access the one-stop career 
                centers because of the nature of their 
                disabilities.
          (3) A one-stop career center will, in expending 
        amounts provided to the center from a grant under 
        section 101, make vocational rehabilitation services 
        available at a variety of locations and, as appropriate 
        for particular populations, in a variety of 
        environments.
  (b) Definition.--For purposes of this title, the term 
``vocational rehabilitation services'' means such goods or 
services for eligible individuals as are--
          (1) necessary to render the individuals employable 
        and achieve an employment outcome; and
          (2) provided in response to needs that arise, to a 
        significant extent, from the disability involved and do 
        not duplicate, to any significant extent, the core 
        services available under title I of the Consolidated 
        and Reformed Education, Employment, and Rehabilitation 
        Systems Act.
  (c) Certain Services.--For purposes of section 101(a), the 
vocational rehabilitation services available through one-stop 
career centers will include the following:
          (1) An assessment of the needs of eligible 
        individuals for such services.
          (2) Development, in accordance with section 
        105(b)(2), of an individualized rehabilitation and 
        employment plan for the purpose of identifying 
        employment goals, appropriate intermediate 
        rehabilitation objectives, and an appropriate 
        combination of goods and services for the individual to 
        achieve the employment goals.
          (3) Counseling, guidance, and work-related placement 
        services for individuals with disabilities, including 
        job search assistance, placement assistance, job 
        retention services, personal assistance services, and 
        followup, follow-along, and specific postemployment 
        services necessary to assist such individuals to 
        maintain, regain, or advance in employment.
          (4) Vocational and other training services for 
        individuals with disabilities, including personal and 
        vocational adjustment, books, or other training 
        materials, and such services to the families of such 
        individuals as are necessary to the adjustment or 
        rehabilitation of such individuals.
          (5) Rehabilitation technology services.
          (6) Supported employment services.
          (7) Physical and mental restoration services.
          (8) Interpreter services for individuals who are 
        deaf, and reader services for individuals who are 
        blind.
          (9) Rehabilitation teaching services and orientation 
        and mobility services for individuals who are blind.
          (10) Referral and other services designed to assist 
        individuals with disabilities in securing needed 
        services from other agencies through agreements 
        developed under section 103(b)(10), if such services 
        are not available under this Act.
          (11) Transportation in connection with the rendering 
        of any vocational rehabilitation service.
          (12) Telecommunications, sensory, and other 
        technological aids and devices.
          (13) On-the-job, or other related personal-assistance 
        services, provided while eligible individuals are 
        receiving other vocational rehabilitation services 
        under this title.
  (d) Certain Arrangements.--For purposes of section 101(a), a 
one-stop career center will, with respect to the provision of 
vocational rehabilitation services to individuals with the most 
severe disabilities, provide for necessary arrangements with 
community-based providers, including arrangements regarding 
supported employment services and extended services, periodic 
reviews of individuals placed in extended employment, and 
services to promote movement from extended employment to 
integrated employment.
  (e) Optional Provision of Other Services.--For purposes of 
this title, a one-stop career center may provide such 
vocational rehabilitation services in addition to the services 
specified in subsection (c) as the center determines to be 
appropriate.
  (f) Allocation for Core Services.--For purposes of section 
101(a):
          (1) With respect to a fiscal year, a local workforce 
        development board receiving amounts from a grant under 
        section 101 will reserve an amount for the provision of 
        core services under title I of the Consolidated and 
        Reformed Education, Employment, and Rehabilitation 
        Systems Act.
          (2) The amount so reserved will be based on the 
        number of eligible individuals with disabilities in the 
        local workforce development area and the costs of 
        training employees of the one-stop career centers to 
        provide high-quality services to individuals with 
        disabilities.
  (g) Performance Payments Regarding Vouchers.--For purposes of 
section 101(a):
          (1) The local workforce development board involved 
        will ensure that, in providing for the payment of 
        services provided pursuant to vouchers, a portion of 
        the total payment is withheld from the provider until 
        the delivery of the services involved is completed in 
        reasonable accordance with the outcome designated for 
        the service pursuant to a prior understanding with the 
        provider.
          (2) In the case of education, training, and placement 
        services that are designed to lead to an employment 
        outcome, a portion of the total payment will be 
        withheld from the provider until--
                  (A) the participant has successfully 
                completed the training; and
                  (B) the participant has been employed, and 
                has retained employment for a period of not 
                less than 90 days.
  (h) Payor of Last Resort Regarding Medical Services and 
Educational Assistance.--For purposes of section 101(a), a 
State will not expend a grant under section 101 to pay for 
training services in institutions of higher education, or to 
pay for medical services, unless significant efforts have been 
made to secure payments, in whole or in part, from other 
sources, except that such efforts are not required if making 
the efforts would delay the provision of such services to any 
eligible individual who is at extreme medical risk, or if 
making the efforts would result in the loss of a job placement 
that (but for the efforts) would be immediately available to an 
eligible individual.

SEC. 105. ELIGIBLE INDIVIDUAL.

  (a) In General.--For purposes of section 101:
          (1) An individual will not receive vocational 
        rehabilitation services under this title unless the 
        individual--
                  (A) is an individual with a disability under 
                section 7(8)(A); and
                  (B) requires vocational rehabilitation 
                services to prepare for, enter, engage in, or 
                retain gainful employment.
          (2) If the individual has a disability or is blind as 
        determined pursuant to title II or title XVI of the 
        Social Security Act, the individual will be considered 
        to have--
                  (A) a physical or mental impairment which for 
                such individual constitutes or results in a 
                substantial impediment to employment under 
                section 7(8)(A)(i); and
                  (B) a severe physical or mental impairment 
                which seriously limits one or more functional 
                capacities in terms of an employment outcome 
                under section 7(15)(A)(i).
          (3) It will be presumed that an individual can 
        benefit in terms of an employment outcome from 
        vocational rehabilitation services for purposes of 
        section 7(8)(A)(ii), unless the one-stop career center 
        involved can demonstrate by clear and convincing 
        evidence that such individual is incapable of 
        benefiting from vocational rehabilitation services in 
        terms of an employment outcome.
  (b) Process.--For purposes of section 101(a), a State will 
ensure that, subject to the order of selection under section 
102(b)(2), the following applies to an individual:
          (1) Once the individual makes a request in person for 
        a determination of eligibility:
                  (A) A qualified rehabilitation adviser will 
                be made available to the individual regarding 
                the process of obtaining services under this 
                title.
                  (B) An initial interview will be conducted, 
                followed by an initial assessment.
                  (C) A final determination will be made not 
                later than 30 days after the request (subject 
                to the cooperation of the individual in the 
                process of determination).
                  (D) The determination of eligibility will be 
                based on the review of existing data described 
                in clause (i) of section 7(22)(A), and, to the 
                extent necessary, the preliminary assessment 
                described in clause (ii) of such section.
                  (E) If it is determined that the individual 
                is not an eligible individual, the individual 
                will be provided a written statement explaining 
                the following:
                          (i) The basis of the determination.
                          (ii) The availability of impartial 
                        review under section 103(b)(7).
                          (iii) The availability of services 
                        under the client assistance program 
                        under section 510.
          (2)(A) If it is determined that the individual is an 
        eligible individual--
                          (i) the needs of the individual for 
                        vocational rehabilitation services will 
                        be assessed; and
                          (ii) subject to subparagraph (D), an 
                        individualized rehabilitation and 
                        employment plan will be developed for 
                        the individual regarding the provision 
                        of services pursuant to clause (i).
          (B) The plan under subparagraph (A) will be developed 
        and mutually agreed upon by the individual and an 
        appropriate staff member of the one-stop career center 
        involved.
          (C) A plan under subparagraph (A) is individualized 
        if the plan is consistent with the unique strengths, 
        resources, priorities, concerns, abilities, and 
        capabilities of the individual for whom the plan is 
        developed.
          (D) A plan under subparagraph (A) is not required for 
        an individual if the individual signs a waiver stating 
        that such a plan is not necessary for the individual.
  (c) Rule of Construction.--This title may not be construed as 
establishing an entitlement in any individual.
  (d) Definition.--For purposes of this title, the term 
``eligible individual'' means an individual described in 
subsection (a)(1).

SEC. 106. STATE REHABILITATION ADVISORY COUNCIL.

  (a) In General.--For purposes of section 101(a):
          (1) A State will establish a State Rehabilitation 
        Advisory Council (referred to in this section as the 
        ``Council'') in accordance with this section.
          (2) The Council will be composed of the following:
                  (A) Representatives of organizations within 
                the State providing services to individuals 
                with disabilities and their families, including 
                representatives of the client assistance 
                program under section 510.
                  (B) Representatives of business, industry, 
                and labor.
                  (C) Representatives of disability advocacy 
                groups representing a cross section of--
                          (i) individuals with physical, 
                        cognitive, sensory, and mental 
                        disabilities; and
                          (ii) parents, family members, 
                        guardians, advocates, or authorized 
                        representatives, of individuals with 
                        disabilities who have difficulty in 
                        representing themselves or are unable 
                        due to their disabilities to represent 
                        themselves.
          (3) The State administrative agent will be an ex 
        officio member of the Council.
          (4) Members of the Council will be appointed by the 
        Governor or another entity that has appointment 
        authority under State law.
          (5) A majority of Council members will be persons who 
        are--
                  (A) individuals with disabilities described 
                in section 7(8)(B); and
                  (B) not employed by the designated State 
                administrative agent.
          (6)(A) Except as provided in subparagraph (B), the 
        Council will select a chairperson from among the 
        membership of the Council.
          (B) In States in which the Governor does not have 
        veto power pursuant to State law, the Governor will 
        designate a member of the Council to serve as the 
        chairperson of the Council or will require the Council 
        to so designate such a member.
          (7) Each member of the Council will serve for a term 
        determined by the Governor or another entity that has 
        appointment authority under State law.
          (8) Any vacancy occurring in the membership of the 
        Council will be filled in the same manner as the 
        original appointment. The vacancy will not affect the 
        power of the remaining members to execute the duties of 
        the Council.
  (b) Functions of Council.--For purposes of section 101(a), 
the Council will carry out the following:
          (1) Advise the collaborative process under section 
        103 of the Consolidated and Reformed Education, 
        Employment, and Rehabilitation Systems Act, and the 
        State administrative agent, in the preparation of the 
        State workforce development and literacy plan and other 
        plans, reports, needs assessments, and evaluations 
        required by this title.
          (2) To the extent feasible, conduct a review and 
        analysis of the effectiveness of, and consumer 
        satisfaction with, the delivery of core services and 
        vocational rehabilitation services to individuals with 
        disabilities within the State.
          (3) Prepare and submit an annual report to the 
        collaborative process or appropriate State 
        administrative agent and the Commissioner on the status 
        of vocational rehabilitation programs operated within 
        the State, and make the report available to the public.
          (4) Coordinate with other councils within the State 
        established to address the needs of individuals with 
        disabilities.
          (5) Perform such other functions, consistent with the 
        purpose of this title, as the State Rehabilitation 
        Advisory Council determines to be appropriate, that are 
        comparable to the other functions performed by the 
        Council.
  (c) Resources.--
          (1) Plan.--For purposes of section 101(a), the 
        Council will prepare, in conjunction with the State 
        administrative agent, a plan for the provision of such 
        resources, including such staff and other personnel, as 
        may be necessary to carry out the functions of the 
        Council under this section. The resource plan shall, to 
        the maximum extent possible, rely on the use of 
        resources in existence during the period of 
        implementation of the plan.
          (2) Resolution of disagreements.--For purposes of 
        section 101(a), to the extent that there is a 
        disagreement between the Council and the State 
        administrative agent in regard to the resources 
        necessary to carry out the functions of the Council as 
        set forth in this section, the disagreement will be 
        resolved by the Governor or appointing agency 
        identified in subsection (a)(4).
          (3) Supervision and evaluation.--For purposes of 
        section 101(a), the Council will, consistent with State 
        law, supervise and evaluate such staff and other 
        personnel as may be necessary to carry out its 
        functions under this section.
          (4) Personnel conflict of interest.--For purposes of 
        section 101(a), while assisting the Council in carrying 
        out its duties, staff and other personnel will not be 
        assigned duties by the State administrative agent or 
        any other agency or office of the State, that would 
        create a conflict of interest.
  (d) Conflict of Interest.--For purposes of section 101(a), no 
member of the Council will cast a vote on any matter that would 
provide direct financial benefit to the member or otherwise 
give the appearance of a conflict of interest under State law.
  (e) Meetings.--For purposes of section 101(a), the Council 
will convene meetings and conduct such forums or hearings as 
the Council considers appropriate. The meetings, hearings, and 
forums will be publicly announced. The meetings will be open 
and accessible to the general public unless there is a valid 
reason for an executive session.
  (f) Compensation and Expenses.--For purposes of section 
101(a), the Council may use funds appropriated under this title 
to reimburse members of the Council for reasonable and 
necessary expenses of attending Council meetings and performing 
Council duties (including child care and personal assistance 
services), and to pay compensation to a member of the Council, 
if such member is not employed or must forfeit wages from other 
employment, for each day the member is engaged in performing 
the duties of the Council.
  (g) Rule of Construction.--Nothing in this section prohibits 
a State from establishing and providing funds to a separate 
council to carry out functions described in subsection (b) with 
respect to vocational rehabilitation services for individuals 
who are blind.

SEC. 107. AMOUNT OF ALLOTMENT.

  (a)(1) Subject to the provisions of subsection (d), for each 
fiscal year beginning before October 1, 1978, each State shall 
be entitled to an allotment of an amount bearing the same ratio 
to the amount authorized to be appropriated under section 
101(d) for allotment under this section as the product of (A) 
the population of the State, and (B) the square of its 
allotment percentage, bears to the sum of the corresponding 
products for all the States.
  (2)(A) For each fiscal year beginning on or after October 1, 
1978, each State shall be entitled to an allotment in an amount 
equal to the amount such State received under paragraph (1) for 
the fiscal year ending September 30, 1978, and an additional 
amount determined pursuant to subparagraph (B) of this 
paragraph.
  (B) For each fiscal year beginning on or after October 1, 
1978, each State shall be entitled to an allotment, from any 
amount authorized to be appropriated for such fiscal year under 
section 101(d) for allotment under this section in excess of 
the amount appropriated under such section for the fiscal year 
ending September 30, 1978, in an amount equal to the sum of--
          (i) an amount bearing the same ratio to 50 percent of 
        such excess amount as the product of the population of 
        the State and the square of its allotment percentage 
        bears to the sum of the corresponding products for all 
        the States; and
          (ii) an amount bearing the same ratio to 50 percent 
        of such excess amount as the product of the population 
        of the State and its allotment percentage bears to the 
        sum of the corresponding products for all the States.
  (3) The sum of the payment to any State (other than Guam, 
American Samoa, the Virgin Islands, and the Northern Mariana 
Islands) under this subsection for any fiscal year which is 
less than one-third of 1 percent of the amount appropriated 
under section 101(d), or $3,000,000, whichever is greater, 
shall be increased to that amount, the total of the increases 
thereby required being derived by proportionately reducing the 
allotment to each of the remaining such States under this 
subsection, but with such adjustments as may be necessary to 
prevent the sum of the allotments made under this subsection to 
any such remaining State from being thereby reduced to less 
than that amount.
  (4) For each fiscal year beginning on or after October 1, 
1984, for which any amount is appropriated pursuant to section 
101(d), each State shall receive an allocation (from such 
appropriated amount) in addition to the allotment to which such 
State is entitled under paragraphs (2) and (3) of this 
subsection. Such additional allocation shall be an amount which 
bears the same ratio to the amount so appropriated as that 
State's allotment under paragraphs (2) and (3) of this 
subsection bears to the sum of such allotments of all the 
States.
  (b)(1) If the payment to a State pursuant to this section for 
a fiscal year is less than the total payments such State 
received under section 2 of the Vocational Rehabilitation Act 
for the fiscal year ending June 30, 1973, such State shall be 
entitled to an additional payment (subject to the same terms 
and conditions applicable to other payments under this title) 
equal to the difference between the payment under this section 
and the amount so received by it.
  (2) If a State receives as its Federal share pursuant to this 
section for any fiscal year less than the applicable Federal 
share of the expenditure of such State for fiscal year 1972 for 
vocational rehabilitation services under the plan for such 
State approved under section 101 as in effect for such year 
(including any amount expended by such State for the 
administration of the State plan but excluding any amount 
expended by such State from non-Federal sources for 
construction under such plan), such State shall be entitled to 
an additional payment for such fiscal year, subject to the same 
terms and conditions applicable to other payments under this 
title, equal to the difference between such the payment 
pursuant to this section and an amount equal to the applicable 
Federal share of such expenditure for vocational rehabilitation 
services.
  (3) Any payment attributable to the additional payment to a 
State under this subsection shall be made only from 
appropriations specifically made to carry out this subsection, 
and such additional appropriations are hereby authorized.
          * * * * * * * deg.


             TITLE III--TRAINING AND DEMONSTRATION PROJECTS

    Part A--Training Programs and Community Rehabilitation Programs

          * * * * * * *

                                training

  Sec. 302. (a) * * *
          * * * * * * *
  (j) Braille Training Projects.--
          (1) Establishment.--The Commissioner shall make 
        grants to and enter into contracts with States and 
        public or nonprofit agencies and organizations, 
        including institutions of higher education, to pay all 
        or part of the cost of training in the use of Braille 
        for personnel providing vocational rehabilitation 
        services or educational services to youth and adults 
        who are blind.
          (2) Projects.--Such grants shall be used for the 
        establishment or continuation of projects that may 
        provide--
                  (A) development of Braille training 
                materials; and
                  (B) in-service or pre-service training in the 
                use of Braille and methods of teaching Braille 
                to youth and adults who are blind.
          (3) Application.--To be eligible to receive a grant, 
        or enter into a contract, under paragraph (1), an 
        agency or organization shall submit an application to 
        the Commissioner at such time, in such manner, and 
        containing such information as the Commissioner may 
        require.
 [vocational rehabilitation services for individuals with disabilities

  [Sec. 303. (a) For the purpose of making grants and entering 
into contracts under this section, there are authorized to be 
appropriated such sums as may be necessary for each of the 
fiscal years 1993 through 1997.
  [(b)(1) The Commissioner is authorized to make grants to 
States and public or nonprofit organizations and agencies to 
pay up to 90 per centum of the cost of projects for providing 
vocational rehabilitation services or employment support 
services to individuals with disabilities, especially those 
with the most severe disabilities, in public or nonprofit 
community rehabilitation programs.
  [(2)(A) For purposes of this section, vocational 
rehabilitation services shall include--
          [(i) training with a view toward career advancement;
          [(ii) training (including on-the-job training) in 
        occupational skills; and
          [(iii) services, including rehabilitation technology 
        services, personal assistance services, and supported 
        employment services and extended services, that--
                  [(I) are related to training described in 
                clause (i) or (ii); and
                  [(II) are required by the individual to 
                engage in such training.
  [(B) Pursuant to regulations, payment of weekly allowances 
may be made to individuals receiving vocational rehabilitation 
services and related services under this section. Such 
allowances may not be paid to any individual for any period in 
excess of two years. In determining the amount of such 
allowances for any individual, consideration shall be given to 
the individual's need for such an allowance, including any 
expenses reasonably attributable to receipt of vocational 
rehabilitation services, the extent to which such an allowance 
will help assure entry into and satisfactory completion of 
training, and such other factors, specified by the 
Commissioner, as will promote such individual's capacity to 
engage in competitive employment.
  [(3) The Commissioner may make a grant for a project pursuant 
to this subsection only if the Commissioner determines that (A) 
the purpose of such project is to prepare individuals with 
disabilities, especially those with the most severe 
disabilities, for competitive employment, or to place or retain 
such individual in competitive employment, including supported 
employment; (B) the individuals to receive vocational 
rehabilitation services under such project will include only 
those who have been determined to be in need of such vocational 
rehabilitation services by the State agency or agencies 
designated as provided in section 101(a)(1) of the State in 
which the community rehabilitation program is located; (C) the 
full range of vocational rehabilitation services will be made 
available to each such individual, to the extent of that 
individual's need for such services; and (D) the project, 
including the participating community rehabilitation program 
and the vocational rehabilitation services provided, meets such 
other requirements as the Commissioner may prescribe in 
regulations for carrying out the purposes of this subsection.
  [(c) The Commissioner is also authorized to make grants, upon 
applications approved by the designated State agency, to public 
or nonprofit agencies, institutions, or organizations to assist 
them in meeting the cost of planning community rehabilitation 
programs, the cost of the services to be provided by such 
programs, and initial staffing costs of such programs.
  [(d)(1) The Commissioner is authorized to make grants to 
public or nonprofit community rehabilitation programs, or to an 
organization or combination of such programs, to pay the 
Federal share of the cost of projects to analyze, improve, and 
increase their professional services to individuals with 
disabilities, their management effectiveness, or any other part 
of their operations affecting their capacity to provide 
employment and services for such individuals.
  [(2) No part of any grant made pursuant to this subsection 
may be used to pay costs of acquiring, constructing, expanding, 
remodeling, or altering any building.

         [loan guarantees for community rehabilitation programs

  [Sec. 304. (a) It is the purpose of this section to assist 
and encourage the provision of needed community rehabilitation 
programs for individuals with disabilities primarily served by 
State rehabilitation programs.
  [(b) The Commissioner may, under special circumstances and in 
accordance with this section and subject to section 306, 
guarantee the payment of principal and interest on loans made 
to nonprofit private entities by non-Federal lenders and by the 
Federal Financing Bank for the construction of facilities for 
community rehabilitation programs, including equipment used in 
their operation.
  [(c) In the case of a guarantee of any loan to a nonprofit 
private entity under this section, the Commissioner shall pay, 
to the holder of such loan and for and on behalf of the project 
for which the loan was made, amounts sufficient to reduce by 2 
percent per annum the net effective interest rate otherwise 
payable on such loan. Each holder of a loan which is guaranteed 
under this section shall have a contractual right to receive 
from the United States interest payments required by the 
preceding sentence.
  [(d) The cumulative total of the principal of the loans 
outstanding at any time with respect to which guarantees have 
been issued, or which have been directly made, may not exceed 
$100,000,000.
  [(e)(1) The Commissioner may not approve a loan guarantee for 
a project under this section unless the Commissioner determines 
that (A) the terms, conditions, security (if any), and schedule 
and amount of repayments with respect to the loan are 
sufficient to protect the financial interests of the United 
States and are otherwise reasonable, including a determination 
that the rate of interest does not exceed such per centum per 
annum on the principal obligation outstanding as the 
Commissioner determines to be reasonable, taking into account 
the range of interest rates prevailing in the private market 
for similar loans and the risks assumed by the United States, 
and (B) the loan would not be available on reasonable terms and 
conditions without the guarantee under this section.
  [(2)(A) The United States shall be entitled to recover from 
the applicant for a loan guarantee under this section the 
amount of any payment made pursuant to such guarantee, unless 
the Commissioner for good cause waives such right of recovery. 
Upon making any such payment, the United States shall be 
subrogated to all of the rights of the recipient of the 
payments with respect to which the guarantee was made.
  [(B) To the extent permitted by subparagraph (C), any terms 
and conditions applicable to a loan guarantee under this 
section (including terms and conditions imposed under paragraph 
(1)) may be modified by the Commissioner to the extent 
considered consistent with the interests of the United States.
  [(C) Any loan guarantee made by the Commissioner under this 
section shall be incontestable (i) in the hands of an applicant 
on whose behalf such guarantee is made unless the applicant 
engaged in fraud or misrepresentation in securing such 
guarantee, and (ii) as to any person (or a successor in 
interest) who makes or contracts to make a loan to such 
applicant in reliance thereon unless such person (or a 
successor in interest) engaged in fraud or misrepresentation in 
making or contracting to make such loan.
  [(D) Guarantees of loans under this section shall be subject 
to such further terms and conditions as the Commissioner 
considers necessary to assure that the purposes of this section 
will be achieved.
  [(f)(1) There is established in the Treasury a loan guarantee 
fund (hereinafter in this subsection referred to as the 
``fund'') which shall be available to the Commissioner without 
fiscal year limitation, in such amounts as may be specified 
from time to time in appropriation Acts--
          [(A) to enable the Commissioner to discharge the 
        responsibilities under loan guarantees issued under 
        this section; and
          [(B) for payment of interest under subsection (c) on 
        loans guaranteed under this section.
There are authorized to be appropriated such amounts as may be 
necessary to provide the sums required for the fund. There 
shall also be deposited in the fund amounts received by the 
Commissioner in connection with loan guarantees under this 
section and other property or assets derived by the 
Commissioner from operations respecting such loan guarantees, 
including any money derived from the sale of assets.
  [(2)(A) If at any time the sums in the fund are insufficient 
to enable the Commissioner--
          [(i) to make payments of interest under subsection 
        (c); or
          [(ii) to otherwise comply with guarantees under this 
        section of loans to nonprofit private entities;
the Commissioner is authorized to issue to the Secretary of the 
Treasury notes or other obligations in such forms and 
denominations, bearing such maturities, and subject to such 
terms and conditions, as may be prescribed by the Commissioner 
with the approval of the Secretary of the Treasury.
  [(B) Such notes or other obligations shall bear interest at a 
rate determined by the Secretary of the Treasury, taking into 
consideration the current average market yield on outstanding 
marketable obligations of the United States of comparable 
maturities during the month preceding the issuance of the notes 
or other obligations.
  [(C) The Secretary of the Treasury shall purchase any notes 
and other obligations issued under this paragraph, and for that 
purpose the Secretary may use as a public debt transaction the 
proceeds from the sale of any securities issued under the 
Second Liberty Bond Act. The purposes for which securities may 
be issued under that Act are extended to include any purchase 
of such notes and obligations. The Secretary of the Treasury 
may at any time sell any of the notes or other obligations 
acquired by the Secretary under this paragraph. All 
redemptions, purchases, and sales by the Secretary of the 
Treasury of such notes or other obligations shall be treated as 
a public debt transaction of the United States.
  [(D) Sums borrowed under this paragraph shall be deposited in 
the fund and redemption of such notes and obligations shall be 
made by the Commissioner from the fund.]
          * * * * * * *
          Part B--Special Projects and Supplementary Services

          * * * * * * *

                     special demonstration programs

  Sec. 311. (a) * * *
          * * * * * * *
  [(f)(1) Consistent with paragraph (2), and consistent with 
the general authority set forth in this section to fund special 
demonstration programs, projects, and activities, nothing in 
this Act shall be construed to prohibit the Commissioner from 
exercising authority under this title, or making available 
funds appropriated to carry out this title, to fund programs, 
projects, and activities described in section 802.
  [(2) If the amount of funds appropriated for a fiscal year to 
carry out this section exceeds the amount of funds appropriated 
for the preceding fiscal year to carry out this section, 
adjusted by the percent by which the average of the estimated 
gross domestic product fixed-weight price index for that fiscal 
year differs from that estimated index for the preceding fiscal 
year, the amount of the excess shall be treated as if the 
excess were appropriated under title VIII.]
  (f) Transportation Services Grants.--
          (1) Grants.--The Commissioner shall make grants to 
        States and to public or nonprofit agencies and 
        organizations for the purpose of providing 
        transportation services to individuals with 
        disabilities who--
                  (A)(i) are employed or seeking employment; or
                  (ii) are receiving vocational rehabilitation 
                services from public or private organizations; 
                and
                  (B) reside in geographic areas in which fixed 
                route public transportation or comparable 
                paratransit service is not available.
          (2) Use of grant.--The Commissioner may make a grant 
        under this subsection only if the applicant involved 
        agrees that transportation services under this 
        subsection will be provided on a regular and continuing 
        basis between--
                  (A) the home of the individual; and
                  (B) the place of employment of the 
                individual, the place where the individual is 
                seeking employment, or the place where the 
                individual is receiving vocational 
                rehabilitation services.
          (3) Charges.--The Commissioner may make a grant under 
        paragraph (1) only if the applicant involved agrees 
        that, in providing transportation services under this 
        subsection--
                  (A) a charge for the transportation will be 
                imposed on each employed eligible individual 
                who uses the transportation; and
                  (B) the amount of the charge for an instance 
                of use of the transportation for the distance 
                involved will be in a fair and reasonable 
                amount that is consistent with fees for 
                comparable services in comparable geographic 
                areas.
          (4) Report.--The Commissioner may make a grant under 
        this subsection only if the applicant involved agrees 
        to prepare and submit to the Commissioner, not later 
        than December 31 of the fiscal year following the 
        fiscal year for which the grant is made, a report 
        containing--
                  (A) a description of the goals of the program 
                carried out with the grant;
                  (B) a description of the activities and 
                services provided under the program;
                  (C) a description of the number of eligible 
                individuals served under the program;
                  (D) a description of methods used to ensure 
                that the program serves the eligible 
                individuals most in need of the transportation 
                services provided under the program; and
                  (E) such additional information as the 
                Commissioner may require.
          (5) Construction.--Nothing in this subsection may be 
        construed as limiting the rights or responsibilities of 
        any individual under any other provision of this Act, 
        under the Americans with Disabilities Act of 1990, or 
        under any other provision of law.
  (g) Demonstration Projects To Increase Client Choice.--
          (1) Grants.--The Commissioner may make grants to 
        States and public or nonprofit agencies and 
        organizations to pay all or part of the costs of 
        projects to demonstrate ways to increase client choice 
        in the rehabilitation process, including the selection 
        of providers of vocational rehabilitation services.
          (2) Use of funds.--An entity that receives a grant 
        under this subsection shall use the grant only--
                  (A) for activities that are directly related 
                to planning, operating, and evaluating the 
                demonstration projects; and
                  (B) to supplement, and not supplant, funds 
                made available from Federal and non-Federal 
                sources for such projects.
          (3) Application.--Any eligible entity that desires to 
        receive a grant under this subsection shall submit an 
        application at such time, in such manner, and 
        containing such information and assurances as the 
        Commissioner may require, including--
                  (A) a description of--
                          (i) how the applicant intends to 
                        promote increased client choice in the 
                        rehabilitation process, including a 
                        description, if appropriate, of how an 
                        applicant will determine the cost of 
                        any service or product offered to an 
                        eligible client;
                          (ii) how the applicant intends to 
                        ensure that any vocational 
                        rehabilitation service or related 
                        service is provided by a qualified 
                        provider who is accredited or meets 
                        such other quality assurance and cost-
                        control criteria as the State may 
                        establish; and
                          (iii) the outreach activities to be 
                        conducted by the applicant to obtain 
                        eligible clients; and
                  (B) assurances that a written plan will be 
                established with the full participation of the 
                client, which plan shall, at a minimum, 
                include--
                          (i) a statement of the vocational 
                        rehabilitation goals to be achieved;
                          (ii) a statement of the specific 
                        vocational rehabilitation services to 
                        be provided, the projected dates for 
                        their initiation, and the anticipated 
                        duration of each such service; and
                          (iii) objective criteria, an 
                        evaluation procedure, and a schedule, 
                        for determining whether such goals are 
                        being achieved.
          (4) Award of grants.--In selecting entities to 
        receive grants under paragraph (1), the Commissioner 
        shall take into consideration the--
                  (A) diversity of strategies used to increase 
                client choice, including selection among 
                qualified service providers;
                  (B) geographic distribution of projects; and
                  (C) diversity of clients to be served.
          (5) Records.--Entities that receive grants under 
        paragraph (1) shall maintain such records as the 
        Commissioner may require and comply with any request 
        from the Commissioner for such records.
          (6) Direct services.--At least 80 percent of the 
        funds awarded for any project under this subsection 
        shall be used for direct services, as specifically 
        chosen by eligible clients.
          (7) Evaluation.--The Commissioner shall conduct an 
        evaluation of the demonstration projects with respect 
        to the services provided, clients served, client 
        outcomes obtained, implementation issues addressed, the 
        cost effectiveness of the project, and the effects of 
        increased choice on clients and service providers. The 
        Commissioner may reserve funds for the evaluation for a 
        fiscal year from the amounts appropriated to carry out 
        projects under this subsection for the fiscal year.
          (8) Definitions.--For the purposes of this 
        subsection:
                  (A) Direct services.--The term ``direct 
                services'' means vocational rehabilitation 
                services, as described in section 103(a).
                  (B) Eligible client.--The term ``eligible 
                client'' means an individual with a disability, 
                as defined in section 7(8)(A), who is not 
                currently receiving services under an 
                individualized written rehabilitation program 
                established through a designated State unit.
  (h) Parent Information and Training Programs.--
          (1) Grants.--The Commissioner is authorized to make 
        grants through a separate competition to private 
        nonprofit organizations for the purpose of establishing 
        programs to provide training and information to enable 
        individuals with disabilities, and the parents, family 
        members, guardians, advocates, or other authorized 
        representatives of the individuals to participate more 
        effectively with professionals in meeting the 
        vocational and rehabilitation needs of individuals with 
        disabilities. Such grants shall be designed to meet the 
        unique training and information needs of individuals 
        with disabilities, and the parents, family members, 
        guardians, advocates, or other authorized 
        representatives of the individuals, who live in the 
        area to be served, particularly those who are members 
        of populations that have been unserved or underserved 
        by programs under this Act.
          (2) Use of grants.--An organization that receives a 
        grant to establish training and information programs 
        under this subsection shall use the grant to assist 
        individuals with disabilities, and the parents, family 
        members, guardians, advocates, or authorized 
        representatives of the individuals to--
                  (A) better understand vocational 
                rehabilitation and independent living programs 
                and services;
                  (B) provide followup support for transition 
                and employment programs;
                  (C) communicate more effectively with 
                transition and rehabilitation personnel and 
                other relevant professionals;
                  (D) provide support in the development of the 
                individualized written rehabilitation program;
                  (E) provide support and expertise in 
                obtaining information about rehabilitation and 
                independent living programs, services, and 
                resources that are appropriate; and
                  (F) understand the provisions of this Act, 
                particularly provisions relating to employment, 
                supported employment, and independent living.
          (3) Award of grants.--The Commissioner shall ensure 
        that grants under this subsection shall--
                  (A) be distributed geographically to the 
                greatest extent possible throughout all States; 
                and
                  (B) be targeted to individuals with 
                disabilities, and the parents, family members, 
                guardians, advocates, or authorized 
                representatives of the individuals, in both 
                urban and rural areas or on a State or regional 
                basis.
          (4) Eligible organizations.--In order to receive a 
        grant under this subsection, a private nonprofit 
        organization shall--
                  (A) submit an application to the Commissioner 
                at such time, in such manner, and containing 
                such information as the Commissioner may 
                require, including information demonstrating 
                the capacity and expertise of the organization 
                to--
                          (i) coordinate and work closely with 
                        parent training and information centers 
                        established under section 631 of the 
                        Individuals with Disabilities Education 
                        Act (20 U.S.C. 1431); and
                          (ii) effectively conduct the training 
                        and information activities authorized 
                        under this subsection;
                  (B)(i) be governed by a board of directors--
                          (I) that includes professionals in 
                        the field of vocational rehabilitation; 
                        and
                          (II) on which a majority of the 
                        members are individuals with 
                        disabilities or the parents, family 
                        members, guardians, advocates, or 
                        authorized representatives of the 
                        individuals; or
                  (ii)(I) have a membership that represents the 
                interests of individuals with disabilities; and
                  (II) establish a special governing committee 
                that meets the requirements specified in 
                subclauses (I) and (II) of clause (i) to 
                operate a training and information program 
                under this subsection; and
                  (C) serve individuals with a full range of 
                disabilities, and the parents, family members, 
                guardians, advocates, or authorized 
                representatives of the individuals.
          (5) Consultation.--Each private nonprofit 
        organization carrying out a program receiving 
        assistance under this subsection shall consult with 
        appropriate agencies that serve or assist individuals 
        with disabilities, and the parents, family members, 
        guardians, advocates, or authorized representatives of 
        the individuals, located in the jurisdiction served by 
        the program.
          (6) Coordination.--The Commissioner shall provide 
        coordination and technical assistance by grant or 
        cooperative agreement for establishing, developing, and 
        coordinating the training and information programs. To 
        the extent practicable, such assistance shall be 
        provided by the parent training and information centers 
        established under section 631 of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1431).
          (7) Review.--
                  (A) Quarterly review.--The board of directors 
                or special governing committee of a nonprofit 
                private organization receiving a grant under 
                this subsection shall meet at least once in 
                each calendar quarter to review the training 
                and information program, and each such 
                committee shall directly advise the governing 
                board regarding the views and recommendations 
                of the committee.
                  (B) Review for grant renewal.--If a nonprofit 
                private organization requests the renewal of a 
                grant under this subsection, the board of 
                directors or the special governing committee 
                shall prepare and submit to the Commissioner a 
                written review of the training and information 
                program conducted by the nonprofit private 
                organization during the preceding fiscal year.
          * * * * * * *

                           [migratory workers

  [Sec. 312. (a) The Commissioner, subject to the provisions of 
section 306, is authorized to make grants to any State agency 
designated pursuant to a State plan approved under section 101, 
to nonprofit agencies working in collaboration with such State 
agency, or to any local agency participating in the 
administration of such a plan, to pay up to 90 per centum of 
the cost of projects or demonstrations for the provision of 
vocational rehabilitation services to individuals with 
disabilities, as determined in accordance with rules prescribed 
by the Secretary of Labor, who are migratory agricultural 
workers or seasonal farmworkers, and to members of their 
families (whether or not such family members are individuals 
with disabilities) who are with them, including maintenance and 
transportation of such individuals and members of their 
families where necessary to the rehabilitation of such 
individuals. Maintenance payments under this section shall be 
consistent with any maintenance payments made to other 
individuals with disabilities in the State under this Act. Such 
grants shall be conditioned upon satisfactory assurance that in 
the provision of such services there will be appropriate 
cooperation between the grantee and other public or nonprofit 
agencies and organizations having special skills and experience 
in the provision of services to migratory agricultural workers, 
seasonal farmworkers, or their families. This section shall be 
administered in coordination with other programs serving 
migrant agricultural workers and seasonal farmworkers, 
including programs under title I of the Elementary and 
Secondary Education Act of 1965, section 311 of the Economic 
Opportunity Act of 1964, the Migrant Health Act, and the Farm 
Labor Contractor Registration Act of 1963.
  [(b) Authorization of Appropriations.--There are authorized 
to be appropriated for fiscal years 1993 through 1997 such sums 
as may be necessary to carry out this section.]
          * * * * * * *

                     [special recreational programs

  [Sec. 316. (a)(1) The Commissioner, subject to the provisions 
of section 306, shall make grants to States, public agencies, 
and non-profit private organizations for paying the Federal 
share of the cost of initiation of recreation programs to 
provide individuals with disabilities with recreational 
activities and related experiences to aid in the employment, 
mobility, socialization, independence, and community 
integration of such individuals. The programs authorized to be 
assisted under this section may include, but are not limited 
to, vocational skills development, leisure education, leisure 
networking, leisure resource development, physical education 
and sports, scouting and camping, 4-H activities, music, 
dancing, handicrafts, art, and homemaking. Whenever possible 
and appropriate, such programs and activities should be 
provided in settings with peers who are not individuals with 
disabilities. Programs and activities under this section shall 
be designed to demonstrate ways in which such programs assist 
in maximizing the independence and integration of individuals 
with disabilities.
  [(2) Each such grant shall be made for a period of not more 
than 3 years. Such a grant shall not be renewable, except that 
the Commissioner may renew such a grant if the Commissioner 
determines that the grant recipient will continue to develop 
model or innovative programs of exceptional merit or will 
contribute substantially to the development or improvement of 
special recreational programs in other locations.
  [(3) No grant may be made under this section unless the 
agreement with respect to such grant contains provisions to 
assure that, to the extent possible, existing resources will be 
used to carry out the activities for which the grant is to be 
made.
  [(4) To be eligible to receive a grant under this section, a 
State, agency, or organization shall submit an application to 
the Commissioner at such time, in such manner, and containing 
such information as the Commissioner may require, including a 
description of--
          [(A) the manner in which the findings and results of 
        the project will be made generally available; and
          [(B) the means by which the service program will be 
        continued after Federal assistance ends.
  [(5) Recreation programs funded under this section shall 
maintain, at a minimum, the same level of services over a 3-
year project period.
  [(6) The Commissioner shall, not later than 180 days after 
the date of enactment of the Rehabilitation Act Amendments of 
1992, develop means to objectively evaluate, and encourage the 
replication of, activities assisted by this section.
  [(7) The Commissioner shall require each recipient of a grant 
under this section to annually prepare and submit a report on 
the results of the activities assisted by the grant. The 
Commissioner shall not make financial assistance available to a 
grant recipient for a subsequent year until the Commissioner 
has received and evaluated such a report from the recipient 
regarding the current year.
  [(8) The Commissioner shall annually issue and provide for 
the dissemination of a report describing the findings and 
results of programs funded by this section.
  [(9) The Federal share of the costs of the recreation 
programs shall be 100 percent for the first year of the grant, 
75 percent for the second year, and 50 percent for the third 
year.
  [(b) There are authorized to be appropriated such sums as may 
be necessary for each of the fiscal years 1993 through 1997.]
          * * * * * * *

                      TITLE V--RIGHTS AND ADVOCACY

          * * * * * * *

                       client assistance program

  Sec. [112.] 510. (a) From funds appropriated under subsection 
(i), the Secretary shall, in accordance with this section, make 
grants to States to establish and carry out client assistance 
programs to provide assistance in informing and advising all 
clients and client applicants of all available benefits under 
this Act, and, upon request of such clients or client 
applicants, to assist and advocate for such clients or 
applicants in their relationships with projects, programs, and 
community rehabilitation programs providing services to them 
under this Act, including assistance and advocacy in pursuing 
legal, administrative, or other appropriate remedies to ensure 
the protection of the rights of such individuals under this Act 
and to facilitate access to the services funded under this Act 
through individual and systemic advocacy. The client assistance 
program shall provide information on the available services and 
benefits under this Act and title I of the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) to 
individuals with disabilities in the State, especially with 
regard to individuals with disabilities who have traditionally 
been unserved or underserved by vocational rehabilitation 
programs. In providing assistance and advocacy under this 
subsection with respect to services under this title, a client 
assistance program may provide the assistance and advocacy with 
respect to services that are directly related to facilitating 
the employment of the individual.
  (b) No State may receive payments from its allotment under 
this Act in any fiscal year unless the State has in effect not 
later than October 1, 1984, a client assistance program which--
          (1) has the authority to pursue legal, 
        administrative, and other appropriate remedies to 
        ensure the protection of rights of individuals with 
        disabilities who are receiving treatments, services, or 
        rehabilitation under this Act within the State; and
          (2) meets the requirements of designation under 
        subsection (c).
  (c)(1)(A) The Governor shall designate a public or private 
agency to conduct the client assistance program under this 
section. Except as provided in the last sentence of this 
paragraph, the Governor shall designate an agency which is 
independent of any agency which provides treatment, services, 
or rehabilitation to individuals under this Act. If there is an 
agency in the State which has, or had, prior to the date of 
enactment of the Rehabilitation Amendments of 1984, served as a 
client assistance agency under this section and which received 
Federal financial assistance under this Act, the Governor may, 
in the initial designation, designate an agency which provides 
treatment, services, or rehabilitation to individuals with 
disabilities under this Act.
  (B) The Governor may not redesignate the agency designated 
under subparagraph (A) without good cause and unless--
          (i) the Governor has given the agency 30 days notice 
        of the intention to make such redesignation, including 
        specification of the good cause for such redesignation 
        and an opportunity to respond to the assertion that 
        good cause has been shown;
          (ii) individuals with disabilities or their 
        representatives have timely notice of the redesignation 
        and opportunity for public comment; and
          (iii) the agency has the opportunity to appeal to the 
        Commissioner on the basis that the redesignation was 
        not for good cause.
  (2) In carrying out the provisions of this section, the 
Governor shall consult with the director of the State 
vocational rehabilitation agency, the head of the developmental 
disability protection and advocacy agency, and with 
representatives of professional and consumer organizations 
serving individuals with disabilities in the State.
  (3) The agency designated under this subsection shall be 
accountable for the proper use of funds made available to the 
agency.
  (4) For the purpose of this subsection, the term ``Governor'' 
means the chief executive of the State.
  (d) The agency designated under subsection (c) of this 
section may not bring any class action in carrying out its 
responsibilities under this section.
  (e)(1)(A) The Secretary shall allot the sums appropriated for 
each fiscal year under this section among the States on the 
basis of relative population of each State, except that no 
State shall receive less than $50,000.
  (B) The Secretary shall allot $30,000 each to American Samoa, 
Guam, the Virgin Islands, the Northern Mariana Islands, and the 
Republic of Palau, except that the Republic of Palau may 
receive such allotment under this section only until the 
Compact of Free Association with Palau takes effect.
  (C) For the purpose of this paragraph, the term ``State'' 
does not include American Samoa, Guam, the Virgin Islands, the 
Northern Mariana Islands, and the Republic of Palau.
  (D)(i) In any fiscal year that the funds appropriated for 
such fiscal year exceed $7,500,000, the minimum allotment shall 
be $100,000 for States and $45,000 for territories.
  (ii) For any fiscal year in which the total amount 
appropriated under subsection (h) exceeds the total amount 
appropriated under such subsection for the preceding fiscal 
year by a percentage greater than the most recent percentage 
change in the Consumer Price Index For All Urban Consumers 
published by the Secretary of Labor under section 100(c)(1), 
the Secretary shall increase each of the minimum allotments 
under clause (i) by such percentage change in the Consumer 
Price Index For All Urban Consumers.
  (2) The amount of an allotment to a State for a fiscal year 
which the Secretary determines will not be required by the 
State during the period for which it is available for the 
purpose for which allotted shall be available for reallotment 
by the Secretary at appropriate times to other States with 
respect to which such a determination has not been made, in 
proportion to the original allotments of such States for such 
fiscal year, but with such proportionate amount for any of such 
other States being reduced to the extent it exceeds the sum the 
Secretary estimates such State needs and will be able to use 
during such period; and the total of such reduction shall be 
similarly reallotted among the States whose proportionate 
amounts were not so reduced. Any such amount so reallotted to a 
State for a fiscal year shall be deemed to be a part of its 
allotment for such fiscal year.
  (3) Except as specifically prohibited by or as otherwise 
provided in State law, the Secretary shall pay to the agency 
designated under subsection (c) the amount specified in the 
application approved under subsection (f).
  (f) No grant may be made under this section unless the State 
submits an application to the Secretary at such time, in such 
manner, and containing or accompanied by such information as 
the Secretary deems necessary to meet the requirements of this 
section.
  (g) The Secretary shall prescribe regulations applicable to 
the client assistance program which shall include the following 
requirements:
          (1) No employees of such programs shall, while so 
        employed, serve as staff or consultants of any 
        rehabilitation project, program, or facility receiving 
        assistance under this Act in the State.
          (2) Each program shall be afforded reasonable access 
        to policymaking and administrative personnel in the 
        State and local rehabilitation programs, projects, or 
        facilities.
          (3) Each program shall contain provisions designed to 
        assure that to the maximum extent possible mediation 
        procedures are used prior to resorting to 
        administrative or legal remedies.
          (4) The agency designated under subsection (c) shall 
        submit an annual report to the Secretary on the 
        operation of the program during the previous year, 
        including a summary of the work done and the uniform 
        statistical tabulation of all cases handled by such 
        program. A copy of each such report shall be submitted 
        to the appropriate committees of the Congress by the 
        Secretary, together with a summary of such reports and 
        the Secretary's evaluation of the program, including 
        appropriate recommendations.
          (5) Each such report shall contain information on the 
        number of requests the client assistance program under 
        this section receives annually, the number of requests 
        such program is unable to serve, and the reasons that 
        the program is unable to serve all the requests.
          (6) For purposes of such report or for any other 
        periodic audit, report, or evaluation of the 
        performance of a client assistance program under this 
        section, the Secretary shall not require such a program 
        to disclose the identity of, or any other personally 
        identifiable information related to, any individual 
        requesting assistance under such program.
  (h) There are authorized to be appropriated such sums as may 
be necessary for fiscal years 1993 through 1997 to carry out 
the provisions of this section.

  TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

                              short title
  Sec. 601. This title may be cited as the ``Employment 
Opportunities for Individuals With Disabilities Act''.

 [Part A--Community Service Employment Pilot Programs for Individuals 
                           With Disabilities

                    [establishment of pilot program
  [Sec. 611. (a) In order to promote useful opportunities in 
community service activities for individuals with disabilities 
who have poor employment prospects, the Secretary of Labor 
(hereinafter in this part referred to as the ``Secretary'') is 
authorized to establish a community service employment pilot 
program for individuals with disabilities. For purposes of this 
part, the term ``eligible individuals'' means persons who are 
individuals with disabilities (as defined in section 7(8)(A) of 
this Act) and who are referred to programs under this part by 
designated State units.
  [(b)(1) The Secretary may enter into agreements with public 
or private nonprofit agencies or organizations, including 
national organizations, agencies of a State government or a 
political subdivision of a State (having elected or duly 
appointed governing officials), or a combination of such 
political subdivisions, or tribal organizations in order to 
carry out the pilot program referred to in subsection (a). Such 
agreements may include provisions consistent with subsection 
(c) for the payment of the costs of projects developed by such 
organizations and agencies in cooperation with the Secretary. 
No payment shall be made by the Secretary toward the cost of 
any such project unless the Secretary determines that:
          [(A) Such project will provide employment only for 
        eligible individuals, except that if eligible 
        individuals are not available to serve as technical, 
        administrative, or supervisory personnel for a project 
        then such personnel may be recruited from among other 
        individuals.
          [(B) Such project will provide employment for 
        eligible individuals in the community in which such 
        individuals reside, or in nearby communities.
          [(C) Such project will employ eligible individuals in 
        services related to publicly owned and operated 
        facilities and projects, or projects sponsored by 
        organizations, other than political parties, exempt 
        from taxation under section 501(c)(3) of the Internal 
        Revenue Code of 1954, except for projects involving the 
        construction, operation, or maintenance of any facility 
        used or to be used as a place for sectarian religious 
        instruction or worship.
          [(D) Such project will contribute to the general 
        welfare of the community in which eligible individuals 
        are employed under such project.
          [(E) Such project (i) will result in an increase in 
        employment opportunities over those opportunities which 
        would otherwise be available, (ii) will not result in 
        any displacement of currently employed workers 
        (including partial displacement, such as a reduction in 
        the hours of nonovertime work or wages or employment 
        benefits), and (iii) will not impair existing contracts 
        or result in the substitution of Federal funds for 
        other funds in connection with work that would 
        otherwise be performed.
          [(F) Such project will not employ any eligible 
        individual to perform work which is the same or 
        substantially the same as that performed by any other 
        person who is on layoff from employment with the agency 
        or organization sponsoring such project.
          [(G) Such project will utilize methods of recruitment 
        and selection (including the listing of job vacancies 
        with the State agency units designated under section 
        101(a)(2)(A) to administer vocational rehabilitation 
        services under this Act) which will assure that the 
        maximum number of eligible individuals will have an 
        opportunity to participate in the project.
          [(H) Such project will provide for (i) such training 
        as may be necessary to make the most effective use of 
        the skills and talents of individuals who are 
        participating in the project, and (ii) during the 
        period of such training, a reasonable subsistence 
        allowance for such individuals and the payment of any 
        other reasonable expenses related to such training.
          [(I) Such project will provide safe and healthy 
        working conditions for any eligible individual employed 
        under such project and will pay any such individual at 
        a rate of pay not lower than the rate of pay described 
        in paragraph (2).
          [(J) Such project will be established or administered 
        with the advice of (i) persons competent in the field 
        of service in which employment is being provided, and 
        (ii) persons who are knowledgeable with regard to the 
        needs of individuals with disabilities.
          [(K) Such project will pay any reasonable costs for 
        work-related expenses, transportation, and personal 
        assistance services incurred by eligible individuals 
        employed under such project in accordance with 
        regulations prescribed by the Secretary.
          [(L) Such project will provide appropriate placement 
        services for employees under the project to assist them 
        in locating unsubsidized employment when the Federal 
        assistance for the project terminates.
  [(2) The rate of pay referred to in subparagraph (I) of 
paragraph (1) is the highest of the following:
          [(A) the prevailing rate of pay for persons employed 
        in similar occupations by the same employer.
          [(B) The minimum wage which would be applicable to 
        the employee under the Fair Labor Standards Act of 1938 
        if such employee were not exempt from such Act under 
        section 13 thereof.
          [(C) The State or local minimum wage for the most 
        nearly comparable covered employment.
The Department of Labor shall not issue any certificate of 
exemption under section 14(c) of the Fair Labor Standards Act 
of 1938 with respect to any person employed in a project under 
this section.
  [(c)(1) The Secretary may pay not to exceed 90 percent of the 
cost of any project which is the subject of an agreement 
entered into under subsection (b). Notwithstanding the 
preceding sentence, the Secretary may pay all of the costs of 
any such project which is (A) an emergency or disaster project, 
or (B) a project located in an economically depressed area, as 
determined by the Secretary in consultation with the Secretary 
of Commerce and the Director of the Community Services 
Administration.
  [(2) The non-Federal share of any project under this part may 
be in cash or in kind. In determining the amount of the non-
Federal share, the Secretary may attribute fair market value to 
services and facilities contributed from non-Federal sources.
  [(d) Payments under this part may be made in advance or by 
way of reimbursement, and in such installments as the Secretary 
may determine.

                            [administration

  [Sec. 612. (a) In order to effectively carry out the 
provisions of this part, the Secretary shall, through the 
Commissioner of the Rehalibitation Services Administration, 
consult with any designated State unit with regard to--
          [(1) the localities in which community service 
        projects of the type authorized by this part are most 
        needed;
          [(2) the employment situations and types of skills 
        possessed by eligible individuals in such localities; 
        and
          [(3) potential projects suitable for funding in such 
        localities.
  [(b) The Secretary shall coordinate the pilot program 
established under this part with the Job Training Partnership 
Act and the Community Services Block Grant Act.
  [(c) In carrying out this part, the Secretary may, with the 
consent of any other Federal, State, or local agency, use the 
services, equipment, personnel, and facilities of such agency 
with or without providing such agency with reimbursement and 
may use the services, equipment, and facilities of any other 
public or private entity on a similar basis.
  [(d) Within one hundred and eighty days after the effective 
date of this part, the Secretary shall issue and publish in the 
Federal Register such regulations as may be necessary to carry 
out this part.
  [(e) The Secretary shall not delegate any function of the 
Secretary under this part to any other department or agency of 
the Federal Government.

                  [participants not federal employees

  [Sec. 613. (a) Eligible individuals who are employed in any 
project funded under this part shall not be considered to be 
Federal employees as a result of such employment and shall not 
be subject to the provisions of part III of title 5, United 
States Code.
  [(b) No contract shall be entered into under this part with a 
contractor who is, or whose employees are, under State law, 
exempted from operation of any State workmen's compensation law 
generally applicable to employees, unless the contractor shall 
undertake to provide for persons to be employed under such 
contract, through insurance by a recognized carrier or by self-
insurance authorized by State law, workmen's compensation 
coverage equal to that provided by law for covered employment.
  [(c) No part of the wages, allowances, or reimbursement for 
transportation and personal assistance services costs made 
available to an eligible individual employed in any project 
funded under this part shall be treated as income or benefits 
for the purpose of any other program or provision of State or 
Federal law, unless the Secretary makes a case by case 
determination that disallowance of such income or benefits is 
inequitable or does not carry out the purposes of this title.

                        [interagency cooperation

  [Sec. 614. (a) The Secretary shall consult with, and obtain 
the written views of, the Commissioner of the Rehabilitation 
Services Administration before establishing rules or general 
policy in the administration of this part.
  [(b) The Secretary shall consult and cooperate with the 
Director of the Community Services Administration, the 
Secretary of Health and Human Services, and the heads of other 
Federal agencies carrying out related programs, in order to 
achieve maximum coordination between such programs and the 
program established under this part. Each Federal agency shall 
cooperate with the Secretary in disseminating information 
relating to the availability of assistance under this part and 
in identifying individuals eligible for employment in projects 
assisted under this part.

                 [equitable distribution of assistance

  [Sec. 615. (a)(1) Preference in awarding grants or contracts 
under this part shall be given to organizations of proven 
ability in providing employment services to individuals with 
disabilities under this program and similar programs. The 
Secretary, in awarding grants and contracts under this section, 
shall, to the extent feasible, assure an equitable distribution 
of activities under such grants and contracts among the States, 
taking into account the needs of underserved States and the 
needs of Indian tribes.
  [(2) The Secretary shall allot for projects within each State 
the sums appropriated for any fiscal year under section 617 so 
that each State will receive an amount which bears the same 
ratio to such sums as the population of the State bears to the 
population of all the States.
  [(b) The amount allotted for projects within any State under 
subsection (a) for any fiscal year which the Secretary 
determines will not be required for such year shall be 
reallotted, from time to time and on such dates during such 
year as the Secretary may fix, to projects within other States 
in proportion to the original allotments to projects within 
such States under subsection (a) for such year, but with such 
proportionate amount for any of such other States being reduced 
to the extent it exceeds the sum the Secretary estimates that 
projects within such State need and will be able to use for 
such year. The total of such reductions shall be similarly 
reallotted among the States whose proportionate amounts were 
not so reduced. Any amount reallotted to a State under this 
subsection during a year shall be deemed part of its allotment 
under subsection (a) for such year.
  [(c) The amount apportioned for projects within each State 
under subsection (a) shall be apportioned among areas within 
each such State in an equitable manner, taking into 
consideration (1) the proportion which eligible individuals in 
each such area bears to the total number of such individuals, 
respectively, in that State, and (2) the relative distribution 
of such individuals residing in rural and urban areas within 
the State (including individuals residing on Indian 
reservations).

                              [definitions

  [Sec. 616. For purposes of this part--
          [(1) the term ``community service'' means social, 
        health, welfare, and educational services, legal and 
        other counseling services and assistance, including tax 
        counseling and assistance and financial counseling, and 
        library, recreational, and other similar services; 
        conservation, maintenance, or restoration of natural 
        resources; community betterment or beautification; 
        antipollution and environmental quality efforts; 
        economic development; and such other services essential 
        and necessary to the community as the Secretary, by 
        regulation, may prescribe; and
          [(2) the term ``pilot program'' means the community 
        service employment program for individuals with 
        disabilities established under this part.

                    [authorization of appropriations

  [Sec. 617. There are authorized to be appropriated to carry 
out the provisions of this part such sums as may be necessary 
for each of the fiscal years 1993 through 1997.
                    [Part B--Projects With Industry]

                         projects with industry

  Sec. 621. (a)(1) The purpose of this part is to create and 
expand job and career opportunities for individuals with 
disabilities in the competitive labor market by engaging the 
talent and leadership of private industry as partners in the 
rehabilitation process, to identify competitive job and career 
opportunities and the skills needed to perform such jobs, to 
create practical job and career readiness and training 
programs, and to provide job placements and career advancement.
  (2) The Commissioner, in consultation with the Secretaries of 
Labor and Commerce and with designated State units, may award 
grants to individual employers, community rehabilitation 
program providers, labor unions, trade associations, Indian 
tribes, tribal organizations, designated State units, and other 
entities to establish jointly financed Projects With Industry 
to create and expand job and career opportunities for 
individuals with disabilities, which projects shall--
          (A) * * *
          * * * * * * *

  [Part C--Supported Employment Services for Individuals With Severe 
                              Disabilities

[SEC. 631. PURPOSE.

  [It is the purpose of this part to authorize allotments, in 
addition to grants for vocational rehabilitation services under 
title I, to assist States in developing collaborative programs 
with appropriate entities to provide supported employment 
services for individuals with the most severe disabilities who 
require supported employment services to enter or retain 
competitive employment.

[SEC. 632. ALLOTMENTS.

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

[SEC. 633. AVAILABILITY OF SERVICES.

  [Funds provided under this part may be used to provide 
supported employment services to individuals who are eligible 
under this part. Funds provided under this part, title I, or 
subsection (b) or (c) of section 311 may not be used to provide 
extended services to individuals who are eligible under this 
part or title I.

[SEC. 634. ELIGIBILITY.

  [An individual shall be eligible under this part to receive 
supported employment services authorized under this Act if--
          [(1) the individual is eligible for vocational 
        rehabilitation services;
          [(2) the individual is determined to be an individual 
        with the most severe disabilities; and
          [(3) a comprehensive assessment of rehabilitation 
        needs of the individual provided under section 
        102(b)(1)(A), including an evaluation of 
        rehabilitation, career, and job needs, identifies 
        supported employment as the appropriate rehabilitation 
        objective for the individual.

[SEC. 635. STATE PLAN.

  [(a) State Plan Supplements.--To be eligible for an allotment 
under this part, a State shall submit to the Commissioner, as 
part of the State plan under section 101, a State plan 
supplement for providing supported employment services 
authorized under this Act to individuals who are eligible under 
this Act to receive the services. Each State shall make such 
annual revisions in the plan supplement as may be necessary.
  [(b) Contents.--Each such plan supplement shall--
          [(1) designate each agency that the State designated 
        under section 101(a)(1) as the agency to administer the 
        program assisted under this part;
          [(2) summarize the results of the comprehensive, 
        statewide assessment conducted under section 101(a)(5), 
        with respect to the rehabilitation and career needs of 
        individuals with severe disabilities and the need for 
        supported employment services, including needs related 
        to coordination and use of information within the State 
        relating to section 618(b)(1)(C) of the Individuals 
        with Disabilities Education Act (20 U.S.C. 
        1418(b)(1)(C));
          [(3) describe the quality, scope, and extent of 
        supported employment services authorized under this Act 
        to be provided to individuals who are eligible under 
        this Act to receive the services and specify the goals 
        and plans of the State with respect to the distribution 
        of funds received under section 632;
          [(4) demonstrate evidence of the efforts of the 
        designated State agency to identify and make 
        arrangements (including entering into cooperative 
        agreements) with other State agencies and other 
        appropriate entities to assist in the provision of 
        supported employment services;
          [(5) demonstrate evidence of the efforts of the 
        designated State agency to identify and make 
        arrangements (including entering into cooperative 
        agreements) with other public or nonprofit agencies or 
        organizations within the State, employers, natural 
        supports, and other entities with respect to the 
        provision of extended services;
          [(6) provide assurances that--
                  [(A) funds made available under this part 
                will only be used to provide supported 
                employment services authorized under this Act 
                to individuals who are eligible under this part 
                to receive the services;
                  [(B) that the comprehensive assessments of 
                individuals with severe disabilities conducted 
                under section 102(b)(1)(A) and funded under 
                title I will include consideration of supported 
                employment as an appropriate rehabilitation 
                objective;
                  [(C) an individualized written rehabilitation 
                program, as required by section 102, will be 
                developed and updated using funds under title I 
                in order to--
                          [(i) specify the supported employment 
                        services to be provided;
                          [(ii) specify the expected extended 
                        services needed; and
                          [(iii) identify the source of 
                        extended services, which may include 
                        natural supports, or to the extent that 
                        it is not possible to identify the 
                        source of extended services at the time 
                        the individualized written 
                        rehabilitation program is developed, a 
                        statement describing the basis for 
                        concluding that there is a reasonable 
                        expectation that such sources will 
                        become available;
                  [(D) the State will use funds provided under 
                this part only to supplement, and not supplant, 
                the funds provided under title I, in providing 
                supported employment services specified in the 
                individualized written rehabilitation program;
                  [(E) services provided under an 
                individualized written rehabilitation program 
                will be coordinated with services provided 
                under other individualized plans established 
                under other Federal or State programs;
                  [(F) to the extent jobs skills training is 
                provided, the training will be provided on-
                site; and
                  [(G) supported employment services will 
                include placement in an integrated setting for 
                the maximum number of hours possible based on 
                the unique strengths, resources, interests, 
                concerns, abilities, and capabilities of 
                individuals with the most severe disabilities;
          [(7) provide assurances that the State agencies 
        designated under paragraph (1) will expend not more 
        than 5 percent of the allotment of the State under this 
        part for administrative costs of carrying out this 
        part; and
          [(8) contain such other information and be submitted 
        in such manner as the Commissioner may require.

[SEC. 636. RESTRICTION.

  [Each State agency designated under section 635(b)(1) shall 
collect the client information required by section 13 
separately for supported employment clients under this part and 
for supported employment clients under title I.

[SEC. 637. SAVINGS PROVISION.

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

[SEC. 638. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
part such sums as may be necessary for each of fiscal years 
1993 through 1997.

   [Part D--Business Opportunities for Individuals With Disabilities.

       [business opportunities for individuals with disabilities

  [Sec. 641. (a) The Commissioner, in consultation with the 
Secretary of Labor and the Secretary of Commerce, may make 
grants to, or enter into contracts with, individuals with 
disabilities to enable them to establish or operate commercial 
or other enterprises to develop or market their products or 
services. Within ninety days after the effective date of this 
section, the Commissioner shall promulgate regulations to carry 
out this section, including regulations specifying (1) the 
maximum amount of money which may be provided under this 
section to any participant, and (2) procedures for 
certification, by designated State units, of individuals 
eligible to participate in any program under this section.
  [(b) There are authorized to be appropriated to carry out 
this section such sums as may be necessary for each of the 1993 
through 1997 fiscal years.]
          * * * * * * *

       [TITLE VIII--SPECIAL DEMONSTRATIONS AND TRAINING PROJECTS

[SEC. 801. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Demonstration Projects.--There are authorized to be 
appropriated to carry out section 802, such sums as may be 
necessary for each of the fiscal years 1993 through 1997.
  [(b) Training Initiatives.--There are authorized to be 
appropriated to carry out section 803, such sums as may be 
necessary for each of the fiscal years 1993 through 1997.

[SEC. 802. DEMONSTRATION ACTIVITIES.

  [(a) Transportation Services Grants.----
          [(1) Grants.--The Commissioner shall make grants to 
        States and to public or nonprofit agencies and 
        organizations for the purpose of providing 
        transportation services to individuals with 
        disabilities who----
                  [(A)(i) are employed or seeking employment; 
                or
                  [(ii) are receiving vocational rehabilitation 
                services from public or private organizations; 
                and
                  [(B) reside in geographic areas in which 
                fixed route public transportation or comparable 
                paratransit service is not available.
          [(2) Use of grant.--The Commissioner may make a grant 
        under this subsection only if the applicant involved 
        agrees that transportation services under this 
        subsection will be provided on a regular and continuing 
        basis between----
                  [(A) the home of the individual; and
                  [(B) the place of employment of the 
                individual, the place where the individual is 
                seeking employment, or the place where the 
                individual is receiving vocational 
                rehabilitation services.
          [(3) Charges.--The Commissioner may make a grant 
        under paragraph (1) only if the applicant involved 
        agrees that, in providing transportation services under 
        this subsection----
                  [(A) a charge for the transportation will be 
                imposed on each employed eligible individual 
                who uses the transportation; and
                  [(B) the amount of the charge for an instance 
                of use of the transportation for the distance 
                involved will be in a fair and reasonable 
                amount that is consistent with fees for 
                comparable services in comparable geographic 
                areas.
          [(4) Report.--The Commissioner may make a grant under 
        this subsection only if the applicant involved agrees 
        to prepare and submit to the Commissioner, not later 
        than December 31 of the fiscal year following the 
        fiscal year for which the grant is made, a report 
        containing----
                  [(A) a description of the goals of the 
                program carried out with the grant;
                  [(B) a description of the activities and 
                services provided under the program;
                  [(C) a description of the number of eligible 
                individuals served under the program;
                  [(D) a description of methods used to ensure 
                that the program serves the eligible 
                individuals most in need of the transportation 
                services provided under the program; and
                  [(E) such additional information as the 
                Commissioner may require.
          [(5) Construction.--Nothing in this subsection may be 
        construed as limiting the rights or responsibilities of 
        any individual under any other provision of this Act, 
        under the Americans with Disabilities Act of 1990, or 
        under any other provision of law.
  [(b) Projects To Achieve High Quality Placements.----
          [(1) Special projects and demonstrations.--The 
        Commissioner shall make grants to public or nonprofit 
        community rehabilitation programs, designated State 
        units, and other public or nonprofit agencies and 
        organizations to pay for the cost of developing special 
        projects and demonstrations related to vocational 
        rehabilitation outcomes. Such projects and 
        demonstrations may include activities providing 
        alternatives to case closure practice and identifying 
        and implementing appropriate incentives to vocational 
        rehabilitation counselors to achieve high quality 
        placements for individuals with the most severe 
        disabilities.
          [(2) Certain requirements.--Each recipient of such a 
        grant shall----
                  [(A) identify, develop, and test exemplary 
                models that can be replicated; and
                  [(B) identify innovative methods, such as 
                weighted case closures, to evaluate the 
                performance of vocational rehabilitation 
                counselors that in no way impede the 
                accomplishment of the purposes and policy of 
                serving, among others, those individuals with 
                the most severe disabilities.
  [(c) Early Intervention Demonstration Programs.----
          [(1) Grants.--The Commissioner shall make grants to 
        public or nonprofit agencies and organizations to carry 
        out demonstration programs designed to demonstrate the 
        utility of early intervention in furnishing vocational 
        evaluation, training, and counseling services to 
        working adults recently determined to have chronic and 
        progressive diseases that may be severely disabling, 
        such as multiple sclerosis.
          [(2) Grant activities.--In carrying out a 
        demonstration program under paragraph (1), an eligible 
        entity shall conduct a program intended to demonstrate 
        the effectiveness of such early intervention in 
        improving the job retention of the working adults or in 
        facilitating the entry of the working adults to new 
        careers and employment. The demonstration program shall 
        test a number of alternative service systems, including 
        an employer assistance program, a system involving 
        early intervention by State vocational rehabilitation 
        agencies, and a private nonprofit agency joint venture 
        with an employer or State vocational rehabilitation 
        agency.
  [(d) Transition Demonstration Projects.----
          [(1) Grants.--The Commissioner may make grants to 
        public or nonprofit agencies and organizations to pay 
        part or all of the costs of special projects and 
        demonstration projects to support models for providing 
        community-based, coordinated services to facilitate the 
        transition of individuals with disabilities from 
        rehabilitation hospital or nursing home programs or 
        comparable programs, to programs providing independent 
        living services in the community, including services 
        such as personal assistance services, health 
        maintenance services, counseling, and social and 
        vocational services.
          [(2) Application.--To be eligible to receive a grant 
        under this subsection, an agency or organization shall 
        submit an application to the Commissioner at such time, 
        in such manner, and containing such information as the 
        Commissioner may require.
          [(3) Evaluation.--An agency or organization that 
        receives a grant under this subsection shall evaluate 
        the effectiveness of such models and prepare and submit 
        to the Commissioner a report containing the evaluation.
  [(e) Barriers to Successful Rehabilitation Outcomes for 
Minorities.--The Commissioner may award grants to public or 
nonprofit agencies and organizations----
          [(1) to conduct a study to examine the factors that 
        have created barriers to successful rehabilitation 
        outcomes for individuals with disabilities from 
        minority backgrounds, and develop and evaluate policy, 
        research, and training strategies for overcoming the 
        barriers;
          [(2) to conduct a study to examine the factors that 
        have created significant underrepresentation of 
        individuals from minority backgrounds in the 
        rehabilitation professions, including such 
        underrepresentation among researchers, and develop and 
        evaluate policy, research, and training strategies for 
        overcoming the underrepresentation; and
          [(3) to conduct a study to examine the factors that 
        have created barriers to successful rehabilitation 
        outcomes for individuals with neurological or other 
        related disorders, and examine how the hidden or 
        episodic nature of the disability affects eligibility 
        and the provision of services.
  [(f) Studies, Special Projects, and Demonstration Projects To 
Study Management and Service Delivery.----
          [(1) Grants.--The Commissioner may make grants to 
        public or nonprofit agencies and organizations to pay 
        part or all of the costs of conducting studies, special 
        projects, or demonstration projects relating to the 
        management and service delivery systems of the 
        vocational rehabilitation programs authorized under 
        this Act.
          [(2) Application.--To be eligible to receive a grant 
        under this subsection, an agency or organization shall 
        submit an application to the Commissioner at such time, 
        in such manner, and containing such information as the 
        Commissioner may require.
  [(g) Demonstration Projects To Increase Client Choice.--
          [(1) Grants.--The Commissioner may make grants to 
        States and public or nonprofit agencies and 
        organizations to pay all or part of the costs of 
        projects to demonstrate ways to increase client choice 
        in the rehabilitation process, including the selection 
        of providers of vocational rehabilitation services.
          [(2) Use of funds.--An entity that receives a grant 
        under this subsection shall use the grant only--
                  [(A) for activities that are directly related 
                to planning, operating, and evaluating the 
                demonstration projects; and
                  [(B) to supplement, and not supplant, funds 
                made available from Federal and non-Federal 
                sources for such projects.
          [(3) Application.--Any eligible entity that desires 
        to receive a grant under this subsection shall submit 
        an application at such time, in such manner, and 
        containing such information and assurances as the 
        Commissioner may require, including--
                  [(A) a description of--
                          [(i) how the applicant intends to 
                        promote increased client choice in the 
                        rehabilitation process, including a 
                        description, if appropriate, of how an 
                        applicant will determine the cost of 
                        any service or product offered to an 
                        eligible client;
                          [(ii) how the applicant intends to 
                        ensure that any vocational 
                        rehabilitation service or related 
                        service is provided by a qualified 
                        provider who is accredited or meets 
                        such other quality assurance and cost-
                        control criteria as the State may 
                        establish; and
                          [(iii) the outreach activities to be 
                        conducted by the applicant to obtain 
                        eligible clients; and
                  [(B) assurances that a written plan will be 
                established with the full participation of the 
                client, which plan shall, at a minimum, 
                include--
                          [(i) a statement of the vocational 
                        rehabilitation goals to be achieved;
                          [(ii) a statement of the specific 
                        vocational rehabilitation services to 
                        be provided, the projected dates for 
                        their initiation, and the anticipated 
                        duration of each such service; and
                          [(iii) objective criteria, an 
                        evaluation procedure, and a schedule, 
                        for determining whether such goals are 
                        being achieved.
          [(4) Award of grants.--In selecting entities to 
        receive grants under paragraph (1), the Commissioner 
        shall take into consideration the--
                  [(A) diversity of strategies used to increase 
                client choice, including selection among 
                qualified service providers;
                  [(B) geographic distribution of projects; and
                  [(C) diversity of clients to be served.
          [(5) Records.--Entities that receive grants under 
        paragraph (1) shall maintain such records as the 
        Commissioner may require and comply with any request 
        from the Commissioner for such records.
          [(6) Direct services.--At least 80 percent of the 
        funds awarded for any project under this subsection 
        shall be used for direct services, as specifically 
        chosen by eligible clients.
          [(7) Evaluation.--The Commissioner shall conduct an 
        evaluation of the demonstration projects with respect 
        to the services provided, clients served, client 
        outcomes obtained, implementation issues addressed, the 
        cost effectiveness of the project, and the effects of 
        increased choice on clients and service providers. The 
        Commissioner may reserve funds for the evaluation for a 
        fiscal year from the amounts appropriated to carry out 
        projects under this subsection for the fiscal year.
          [(8) Definitions.--For the purposes of this 
        subsection:
                  [(A) Direct services.--The term ``direct 
                services'' means vocational rehabilitation 
                services, as described in section 103(a).
                  [(B) Eligible client.--The term ``eligible 
                client'' means an individual with a disability, 
                as defined in section 7(8)(A), who is not 
                currently receiving services under an 
                individualized written rehabilitation program 
                established through a designated State unit.
  [(h) National Commission on Rehabilitation Services.--
          [(1) Establishment.--
                  [(A) In general.--Subject to the availability 
                of appropriations, there is hereby established 
                a National Commission on Rehabilitation 
                Services (referred to in this section as the 
                ``National Commission'') for the purpose of 
                studying the nature, quality, and adequacy of 
                vocational rehabilitation, independent living, 
                supported employment, research, training, and 
                other programs authorized under this Act, and 
                submitting to the President and to Congress 
                recommendations that will further the 
                successful employment outcomes, independence, 
                and integration of individuals with 
                disabilities into the workplace and community.
                  [(B) Composition.--
                          [(i) Qualifications.--The National 
                        Commission shall consist of 15 members 
                        who are recognized by knowledge, 
                        experience, and education as experts in 
                        the field of rehabilitation. At least a 
                        majority of the members of the National 
                        Commission shall be individuals with 
                        disabilities representing a cross-
                        section of individuals with different 
                        types of disabilities.
                          [(ii) Appointment.--Members of the 
                        National Commission shall be appointed 
                        as follows:
                                  [(I) Presidential 
                                appointees.--Five members shall 
                                be appointed by the President, 
                                or, if the President delegates 
                                the authority to make the 
                                appointment, by the Secretary 
                                of Education.
                                  [(II) Senate appointees.--
                                Five members shall be appointed 
                                by the president pro tempore of 
                                the Senate, with the advice and 
                                approval of the Majority Leader 
                                and Minority Leader of the 
                                Senate.
                                  [(III) House of 
                                representatives appointees.--
                                Five members shall be appointed 
                                by the Speaker of the House of 
                                Representatives with the  
                                advice  and  approval  of  the  
                                Majority Leader and Minority 
                                Leader of the House of 
                                Representatives.
                  [(C) Term.--Members shall be appointed for 
                the life of the National Commission.
                  [(D) Vacancies.--Any vacancy in the National 
                Commission shall not affect its powers, but 
                shall be filled in the same manner as the 
                original appointment.
                  [(E) Chairperson.--The National Commission 
                shall select a Chairperson from among its 
                members.
                  [(F) Meetings.--The National Commission shall 
                meet at the call of the Chairperson, but not 
                less often than four times each year.
                  [(G) Quorum.--Ten members of the National 
                Commission shall constitute a quorum.
                  [(H) Committees.--The Chairperson, upon 
                approval by the National Commission, may 
                establish such committees as the Chairperson 
                determines to be necessary to fulfill the 
                duties of the National Commission.
          [(2) Duties.--
                  [(A) Studies and analyses.--The National 
                Commission shall conduct studies and analyses 
                with respect to--
                          [(i) the effectiveness of vocational 
                        rehabilitation and independent living 
                        services in enhancing the employment 
                        outcomes of individuals with 
                        disabilities;
                          [(ii) the adequacy of research and 
                        training activities in fostering 
                        innovative approaches that further the 
                        employment of individuals with 
                        disabilities;
                          [(iii) the capacity of supported 
                        employment and independent living 
                        services in promoting the integration 
                        of individuals with disabilities into 
                        the workplace and community;
                          [(iv) methods for enhancing access to 
                        services authorized under this Act by 
                        minorities who are individuals with 
                        disabilities and individuals with 
                        disabilities who are members of 
                        populations that have traditionally 
                        been unserved or underserved by 
                        programs under this Act that provide 
                        such vocational rehabilitation services 
                        and independent living services;
                          [(v) means for enhancing interagency 
                        coordination among Federal and State 
                        agencies to promote the maximization of 
                        employment-related programs, services, 
                        and benefits on behalf of individuals 
                        with disabilities; and
                          [(vi) such other issues as the 
                        National Commission may identify as 
                        relevant to promoting the employment, 
                        independence, and integration of 
                        individuals with disabilities.
                  [(B) Policy analyses.--The National 
                Commission shall conduct policy analyses to--
                          [(i) develop options for improving 
                        fiscal equity in the allotment of 
                        grants under section 110;
                          [(ii) provide guidance on 
                        implementing the order of selection 
                        described in section 101(a)(5)(A); and
                          [(iii) address the shortage of 
                        rehabilitation professionals.
                  [(C) Reports.--
                          [(i) Interim report.--Not later than 
                        January 30, 1995, the National 
                        Commission shall prepare and issue a 
                        comprehensive interim report to the 
                        President, the Committee on Education 
                        and Labor of the House of 
                        Representatives, and the Committee on 
                        Labor and Human Resources of the 
                        Senate, containing the results of the 
                        studies and analyses described in 
                        subparagraphs (A) and (B) and specific 
                        recommendations for amendments to this 
                        Act needed to promote the provision of 
                        comprehensive vocational rehabilitation 
                        and independent living services on 
                        behalf of individuals with 
                        disabilities.
                          [(ii) Final report.--Not later than 
                        January 30, 1997, the National 
                        Commission shall prepare and issue a 
                        comprehensive final report to the 
                        President, the Committee on Education 
                        and Labor of the House of 
                        Representatives, and the Committee on 
                        Labor and Human Resources of the 
                        Senate, containing the results and 
                        recommendations described in clause 
                        (i).
          [(3) Powers.--
                  [(A) Hearings.--The National Commission may 
                hold such hearings, sit and act at such times 
                and places, take such testimony, and receive 
                such evidence as the National Commission 
                determines to be necessary to carry out its 
                functions.
                  [(B) Information.--
                          [(i) Federal entities.--The National 
                        Commission may secure directly from any 
                        Federal department or agency such 
                        information (including statistics) as 
                        the National Commission considers 
                        necessary to carry out the functions of 
                        the National Commission. Upon request 
                        of the Chairperson of the National 
                        Commission, the head of such department 
                        or agency shall furnish such 
                        information to the National Commission.
                          [(ii) Other entities.--The National 
                        Commission may secure, directly or by 
                        contract or other means, such 
                        additional information as the National 
                        Commission determines to be necessary 
                        from universities, research 
                        institutions, foundations, State and 
                        local agencies, and other public or 
                        private agencies.
                  [(C) Consultation.--The National Commission 
                is authorized to consult with--
                          [(i) any organization representing 
                        individuals with disabilities;
                          [(ii) public or private service 
                        providers;
                          [(iii) Federal, State, and local 
                        agencies;
                          [(iv) individual experts;
                          [(v) institutions of higher education 
                        involved in the preparation of 
                        vocational rehabilitation services 
                        personnel; and
                          [(vi) such other entities and persons 
                        as will aid the National Commission in 
                        carrying out its duties.
          [(4) Compensation and travel expenses.--
                  [(A) Compensation.--Each member of the 
                National Commission who is not an officer or 
                full-time employee of the Federal Government 
                shall receive a payment of $150 for each day 
                (including travel time) during which the member 
                is engaged in the performance of duties for the 
                National Commission. Members of the National 
                Commission who are officers or full-time 
                employees of the United States shall serve 
                without compensation in addition to 
                compensation received for their services as 
                officers or employees of the United States.
                  [(B) Travel expenses.--Each member of the 
                National Commission may receive travel 
                expenses, including per diem in lieu of 
                subsistence, as authorized by section 5703 of 
                title 5, United States Code, for employees 
                serving intermittently in the Government 
                service, for each day the member is engaged in 
                the performance of duties away from the home or 
                regular place of business of the member.
          [(5) Staff.--
                  [(A) Appointment.--
                          [(i) Staff director.--The Chairperson 
                        of the National Commission may, without 
                        regard to provisions of title 5, United 
                        States Code, governing appointments in 
                        the competitive service, appoint and 
                        terminate a staff director of the 
                        National Commission. The employment of 
                        the staff director shall be subject to 
                        confirmation by the National 
                        Commission. The staff director shall be 
                        appointed from among individuals who 
                        are experienced in the planning, 
                        administration, or operation of 
                        vocational rehabilitation and 
                        independent living services or 
                        programs.
                          [(ii) Additional personnel.--The 
                        staff director of the National 
                        Commission may, without regard to 
                        provisions of title 5, United States 
                        Code, governing appointments in the 
                        competitive service, appoint and 
                        terminate such additional personnel as 
                        may be necessary, but not more than ten 
                        full-time equivalent positions, to 
                        enable the National Commission to carry 
                        out its duties.
                  [(B) Compensation.--The Chairperson of the 
                National Commission may fix the compensation of 
                the staff director, and the staff director may 
                fix the compensation of the additional 
                personnel, without regard to the provisions of 
                chapter 51 and subchapter III of chapter 53 of 
                title 5, United States Code, relating to 
                classification and General Schedule pay rates, 
                except that the rate of pay for the staff 
                director and other personnel may not exceed the 
                rate of pay for level 4 of the Senior Executive 
                Service Schedule under section 5382 of title 5, 
                United States Code.
          [(6) Cooperation.--The heads of all Federal agencies 
        are, to the extent not prohibited by law, directed to 
        cooperate with the National Commission in carrying out 
        its duties. The National Commission may utilize the 
        services, personnel, information, and facilities of 
        other Federal, State, local, and private agencies with 
        or without reimbursement, upon the consent of the heads 
        of such agencies.
          [(7) Detail of government employees.--Any Federal 
        Government employee may be detailed to the National 
        Commission without reimbursement, and such detail shall 
        be without interruption or loss of civil service status 
        or privilege.
          [(8) Termination.--The National Commission shall 
        terminate not later than 90 days following the 
        submission of the final report as described in 
        paragraph (2)(C)(ii).
  [(i) Model Personal Assistance Services Systems.--The 
Commissioner may award grants to public or nonprofit agencies 
and organizations to establish model personal assistance 
services systems and other innovative service programs to 
maximize the full inclusion and integration into society, 
employment, independent living, and economic and social self-
sufficiency of individuals with disabilities.
  [(j) Demonstration Projects To Upgrade Worker Skills.--
          [(1) Grants.--Consistent with the purposes of section 
        621, the Commissioner may make grants to partnerships 
        or consortia that include private business concerns or 
        industries to pay for the Federal share of developing 
        and carrying out model demonstration projects for 
        workers with disabilities who need new or upgraded 
        skills to adapt to emerging technologies, work methods, 
        and markets and to ensure that such individuals possess 
        the knowledge and skills necessary to compete in the 
        workplace.
          [(2) Period.--Grants made under this subsection shall 
        be for 3-year periods.
          [(3) Application.--Any partnership or consortia 
        desiring to receive a grant under this subsection shall 
        submit an application to the Commissioner at such time, 
        in such manner, and containing such information and 
        assurances as the Commissioner may require, including--
                  [(A) information identifying at least one 
                member of the partnership or consortium that is 
                a private business concern or industry; and
                  [(B) assurances that--
                          [(i) each member of the eligible 
                        partnership or consortium will pay a 
                        portion of the non-Federal share of the 
                        cost of developing and carrying out the 
                        project;
                          [(ii) the partnership or consortium 
                        will carry out all of the activities 
                        described in subparagraphs (A) through 
                        (E) of section 621(a)(2);
                          [(iii) the partnership or consortium 
                        will disseminate information on the 
                        model program conducted;
                          [(iv) the partnership or consortium 
                        will utilize, if available, job skill 
                        standards established jointly by 
                        management and labor to assist in 
                        evaluating the job skills of an 
                        individual and assessing the skills 
                        that are needed for the individual to 
                        compete in the workplace;
                          [(v) the partnership or consortium 
                        will prepare and submit an evaluation 
                        report containing data specified by the 
                        Commissioner at the end of each project 
                        year; and
                          [(vi) the partnership or consortium 
                        will take such steps as are necessary 
                        to continue the activities of the 
                        project after the period for which 
                        Federal assistance is sought.
          [(4) Definition.--For the purposes of this 
        subsection, the term ``workers with disabilities'' 
        shall mean individuals with disabilities who are 
        working in competitive employment and who need new or 
        upgraded skills to improve their employment and career 
        advancement opportunities.
  [(k) Model Systems Regarding Severe Disabilities.--The 
Commissioner may award grants to public or nonprofit agencies 
and organizations to establish model systems of comprehensive 
service delivery to individuals with severe disabilities, other 
than spinal cord injuries, requiring a multidisciplinary system 
of providing vocational and other rehabilitation services, 
where the Commissioner determines that the development of such 
systems is needed.

[SEC. 803. TRAINING ACTIVITIES.

  [(a) Distance Learning Through Telecommunications.--
          [(1) Grants.--The Commissioner shall award at least 
        three grants to eligible institutions of higher 
        education, to support the formation of regional 
        partnerships with other public or private entities for 
        the purpose of developing and implementing in-service 
        training programs, including certificate or degree 
        granting programs concerning vocational rehabilitation 
        services and related services, for vocational 
        rehabilitation professionals through the use of 
        telecommunications.
          [(2) Applications.--Any eligible entity that desires 
        to receive a grant under this subsection shall submit 
        an application at such time, in such manner, and 
        containing such information and assurances as the 
        Commissioner may require, including--
                  [(A) a detailed explanation of how the 
                applicant will utilize interactive audio, 
                video, and computer technologies between 
                distant locations to provide in-service 
                training programs to the region;
                  [(B) a description of how the applicant 
                intends to utilize and build upon existing 
                telecommunications networks within the region 
                to be served;
                  [(C) a copy of all agreements governing the 
                division of functions within the partnership, 
                including an assurance that all States within 
                the region will be served;
                  [(D) a copy of a binding commitment entered 
                into between the partnership and each entity 
                that is legally permitted to provide, and from 
                which the partnership is to obtain, the 
                telecommunications services and facilities 
                required for the project, that stipulates that 
                if the partnership receives the grant the 
                entity will provide such telecommunications 
                services and facilities in the area to be 
                served within a reasonable time and at a charge 
                that is in accordance with State law;
                  [(E) a description of the curriculum to be 
                provided, frequency of providing service, and 
                sites of service;
                  [(F) a description of the need to purchase or 
                lease--
                          [(i) computer hardware and software;
                          [(ii) audio and video equipment;
                          [(iii) telecommunications terminal 
                        equipment; or
                          [(iv) interactive video equipment;
                  [(G) an assurance that the partnership will 
                use not less than 75 percent of the amount of 
                the grant for instructional curriculum 
                development and programming; and
                  [(H) a description of the means by which the 
                project will be evaluated.
          [(3) Award of grants.--In awarding grants under 
        paragraph (1), the Commissioner shall take into 
        consideration the sparsity of State populations in the 
        region to be served.
          [(4) Definitions.--For the purposes of this 
        subsection:
                  [(A) Eligible entity.--The term ``eligible 
                entity'' means any institution of higher 
                education with demonstrated experience in the 
                area of continuing education for vocational 
                rehabilitation personnel.
                  [(B) Interactive video equipment.--The term 
                ``interactive video equipment'' means equipment 
                used to produce and prepare video and audio 
                signals for transmission between distant 
                locations so that individuals at such locations 
                can see and hear each other, and related 
                equipment.
                  [(C) Region.--The term ``region'' means one 
                of the ten regions served by the Rehabilitation 
                Services Administration.
                  [(D) Rehabilitation professionals.--The term 
                ``rehabilitation professionals'' means 
                personnel described in section 301(a)(1).
  [(b) Braille Training Projects.--
          [(1) Establishment.--The Commissioner shall make 
        grants to and enter into contracts with States and 
        public or nonprofit agencies and organizations, 
        including institutions of higher education, to pay all 
        or part of the cost of training in the use of Braille 
        for personnel providing vocational rehabilitation 
        services or educational services to youth and adults 
        who are blind.
          [(2) Projects.--Such grants shall be used for the 
        establishment or continuation of projects that may 
        provide--
                  [(A) development of Braille training 
                materials; and
                  [(B) in-service or pre-service training in 
                the use of Braille and methods of teaching 
                Braille to youth and adults who are blind.
          [(3) Application.--To be eligible to receive a grant, 
        or enter into a contract, under paragraph (1), an 
        agency or organization shall submit an application to 
        the Commissioner at such time, in such manner, and 
        containing such information as the Commissioner may 
        require.
  [(c) Parent Information and Training Programs.--
          [(1) Grants.--The Commissioner is authorized to make 
        grants through a separate competition to private 
        nonprofit organizations for the purpose of establishing 
        programs to provide training and information to enable 
        individuals with disabilities, and the parents, family 
        members, guardians, advocates, or other authorized 
        representatives of the individuals to participate more 
        effectively with professionals in meeting the 
        vocational and rehabilitation needs of individuals with 
        disabilities. Such grants shall be designed to meet the 
        unique training and information needs of individuals 
        with disabilities, and the parents, family members, 
        guardians, advocates, or other authorized 
        representatives of the individuals, who live in the 
        area to be served, particularly those who are members 
        of populations that have been unserved or underserved 
        by programs under this Act.
          [(2) Use of grants.--An organization that receives a 
        grant to establish training and information programs 
        under this subsection shall use the grant to assist 
        individuals with disabilities, and the parents, family 
        members, guardians, advocates, or authorized 
        representatives of the individuals to--
                  [(A) better understand vocational 
                rehabilitation and independent living programs 
                and services;
                  [(B) provide followup support for transition 
                and employment programs;
                  [(C) communicate more effectively with 
                transition and rehabilitation personnel and 
                other relevant professionals;
                  [(D) provide support in the development of 
                the individualized written rehabilitation 
                program;
                  [(E) provide support and expertise in 
                obtaining information about rehabilitation and 
                independent living programs, services, and 
                resources that are appropriate; and
                  [(F) understand the provisions of this Act, 
                particularly provisions relating to employment, 
                supported employment, and independent living.
          [(3) Award of grants.--The Commissioner shall ensure 
        that grants under this subsection shall--
                  [(A) be distributed geographically to the 
                greatest extent possible throughout all States; 
                and
                  [(B) be targeted to individuals with 
                disabilities, and the parents, family members, 
                guardians, advocates, or authorized 
                representatives of the individuals, in both 
                urban and rural areas or on a State or regional 
                basis.
          [(4) Eligible organizations.--In order to receive a 
        grant under this subsection, a private nonprofit 
        organization shall--
                  [(A) submit an application to the 
                Commissioner at such time, in such manner, and 
                containing such information as the Commissioner 
                may require, including information 
                demonstrating the capacity and expertise of the 
                organization to--
                          [(i) coordinate and work closely with 
                        parent training and information centers 
                        established under section 631 of the 
                        Individuals with Disabilities Education 
                        Act (20 U.S.C. 1431); and
                          [(ii) effectively conduct the 
                        training and information activities 
                        authorized under this subsection;
                  [(B)(i) be governed by a board of directors--
                          [(I) that includes professionals in 
                        the field of vocational rehabilitation; 
                        and
                          [(II) on which a majority of the 
                        members are individuals with 
                        disabilities or the parents, family 
                        members, guardians, advocates, or 
                        authorized representatives of the 
                        individuals; or
                  [(ii)(I) have a membership that represents 
                the interests of individuals with disabilities; 
                and
                  [(II) establish a special governing committee 
                that meets the requirements specified in 
                subclauses (I) and (II) of clause (i) to 
                operate a training and information program 
                under this subsection; and
                  [(C) serve individuals with a full range of 
                disabilities, and the parents, family members, 
                guardians, advocates, or authorized 
                representatives of the individuals.
          [(5) Consultation.--Each private nonprofit 
        organization carrying out a program receiving 
        assistance under this subsection shall consult with 
        appropriate agencies that serve or assist individuals 
        with disabilities, and the parents, family members, 
        guardians, advocates, or authorized representatives of 
        the individuals, located in the jurisdiction served by 
        the program.
          [(6) Coordination.--The Commissioner shall provide 
        coordination and technical assistance by grant or 
        cooperative agreement for establishing, developing, and 
        coordinating the training and information programs. To 
        the extent practicable, such assistance shall be 
        provided by the parent training and information centers 
        established under section 631 of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1431).
          [(7) Review.--
                  [(A) Quarterly review.--The board of 
                directors or special governing committee of a 
                nonprofit private organization receiving a 
                grant under this subsection shall meet at least 
                once in each calendar quarter to review the 
                training and information program, and each such 
                committee shall directly advise the governing 
                board regarding the views and recommendations 
                of the committee.
                  [(B) Review for grant renewal.--If a 
                nonprofit private organization requests the 
                renewal of a grant under this subsection, the 
                board of directors or the special governing 
                committee shall prepare and submit to the 
                Commissioner a written review of the training 
                and information program conducted by the 
                nonprofit private organization during the 
                preceding fiscal year.
  [(d) Training Regarding Impartial Hearing Officers.--The 
Commissioner may award grants to public or nonprofit agencies 
and organizations to provide training designed to provide 
impartial hearing officers with the skills necessary to fairly 
decide appeals under this Act.
  [(e) Recruitment and Retention of Urban Personnel.--The 
Commissioner may award grants to public or nonprofit agencies 
and organizations to develop and demonstrate innovative methods 
to attract and retain professionals to serve in urban areas in 
the rehabilitation of individuals with disabilities, including 
individuals with severe disabilities.
  [(f) Certain Requirements.--The requirements of subsections 
(a) (except the first sentence), (b), and (c), of section 302, 
and paragraphs (1) and (2) of subsection (g) of such section, 
shall apply with respect to grants made available under this 
section, other than subsection (c). The requirements of section 
306 shall apply with respect to grants made available under 
this section.]
                              ----------                              

  THE CARL D. PERKINS VOCATIONAL AND APPLIED TECHNOLOGY EDUCATION ACT

 AN ACT To strengthen and improve the quality of vocational education 
and to expand the vocational education opportunities in the Nation, to 
 extend for three years the National Defense Education Act of 1958 and 
  Public Laws 815 and 874, Eighty-first Congress (federally affected 
                    areas), and for other purposes.

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

[SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  [(a) Short Title.--This Act may be cited as the ``Carl D. 
Perkins Vocational and Applied Technology Education Act''.
  [(b) Table of Contents.--The table of contents for this Act 
is as follows:
                           [TABLE OF CONTENTS

[Sec. 1. Short title; table of contents.
[Sec. 2. Statement of purpose.
[Sec. 3. Authorization of appropriations.

         [TITLE I--VOCATIONAL EDUCATION ASSISTANCE TO THE STATES

                    [Part A--Allotment and Allocation

[Sec. 101. Allotment.
[Sec. 101A. The territories.
[Sec. 102. Within State allocation.
[Sec. 103. Indian and Hawaiian natives programs.

       [Part B--State Organizational and Planning Responsibilities

[Sec. 111. State administration.
[Sec. 112. State council on vocational education.
[Sec. 113. State plan.
[Sec. 114. State plan approval.
[Sec. 115. State and local standards and measures.
[Sec. 116. State assessment and evaluation.
[Sec. 117. Program evaluation and improvement.
[Sec. 118. Criteria for services and activities for individuals who are 
          members of special populations.

         [TITLE II--BASIC STATE GRANTS FOR VOCATIONAL EDUCATION

                         [Part A--State Programs

[Sec. 201. State programs and State leadership.

               [Part B--Other State-Administered Programs

 [Subpart 1--Programs to Provide Single Parents, Displaced Homemakers, 
  and Single Pregnant Women With Marketable Skills and to Promote the 
                        Elimination of Sex Bias.

[Sec. 221. Programs for single parents, displaced homemakers, and single 
          pregnant women.
[Sec. 222. Sex equity programs.
[Sec. 223. Competitive award of amounts; evaluation of programs.

                    [Subpart 2--Corrections Education

[Sec. 225. Programs for criminal offenders.

   [Part C--Secondary, Postsecondary, and Adult Vocational Education 
                                Programs

                   [Subpart 1--Within State Allocation

[Sec. 231. Distribution of funds to secondary school programs.
[Sec. 232. Distribution of funds to postsecondary and adult programs.
[Sec. 233. Special rule for minimal allocation.
[Sec. 234. Reallocation.

                        [Subpart 2--Uses of Funds

[Sec. 235. Uses of funds.

                      [Subpart 3--Local Application

[Sec. 240. Local application.

                      [TITLE III--SPECIAL PROGRAMS

 [Part A--State Assistance for Vocational Education Support Programs by 
                      Community-Based Organizations

[Sec. 301. Applications.
[Sec. 302. Uses of funds.

               [Part B--Consumer and Homemaking Education

[Sec. 311. Consumer and homemaking education grants.
[Sec. 312. Use of funds from consumer and homemaking education grants.
[Sec. 313. Information dissemination and leadership.

     [Part C--Comprehensive Career Guidance and Counseling Programs

[Sec. 321. Grants for career guidance and counseling.
[Sec. 322. Use of funds from career guidance and counseling grants.
[Sec. 323. Information dissemination and leadership.

       [Part D--Business-Labor-Education Partnership for Training

[Sec. 331. Findings and purpose.
[Sec. 332. Authorization of grants.
[Sec. 333. Use of funds.

                      [Part E--Tech-Prep Education

[Sec. 341. Short title.
[Sec. 342. Findings and purpose.
[Sec. 343. Program authorized.
[Sec. 344. Tech-prep education programs.
[Sec. 345. Applications.
[Sec. 346. Reports.
[Sec. 347. Definitions.

  [Part F--Supplementary State Grants for Facilities and Equipment and 
                  Other Program Improvement Activities

[Sec. 351. Statement of purpose.
[Sec. 352. Allotment to States.
[Sec. 353. Allocation to local educational agencies.
[Sec. 354. Uses of funds.
[Sec. 355. State applications.
[Sec. 356. Local applications.

[Part G--Community Education Employment Centers and Vocational Education 
                           Lighthouse Schools

           [Subpart 1--Community Education Employment Centers

[Sec. 361. Short title.
[Sec. 362. Purpose.
[Sec. 363. Program authorized.
[Sec. 364. Program requirements.
[Sec. 365. Support services requirements.
[Sec. 366. Parental and community participation.
[Sec. 367. Professional staff.
[Sec. 368. Eligibility.
[Sec. 369. Application.
[Sec. 370. Evaluation and report.
[Sec. 371. Definitions.

           [Subpart 2--Vocational Education Lighthouse Schools

[Sec. 375. Vocational education lighthouse schools.

   [Part H--Tribally Controlled Postsecondary Vocational Institutions

[Sec. 381. Short title.
[Sec. 382. Purpose.
[Sec. 383. Grants authorized.
[Sec. 384. Eligible grant recipients.
[Sec. 385. Grants to tribally controlled postsecondary vocational 
          institutions.
[Sec. 386. Amounts of grants.
[Sec. 387. Effect on other programs.
[Sec. 388. Grant adjustments.
[Sec. 389. Report on facilities and facilities improvement.
[Sec. 390. Definitions.

                      [TITLE IV--NATIONAL PROGRAMS

                    [Part A--Research and Development

[Sec. 401. Research objectives.
[Sec. 402. Research activities.
[Sec. 403. National assessment of vocational education programs.
[Sec. 404. National Center or Centers for Research in Vocational 
          Education.

                     [Part B--Demonstration Programs

[Sec. 411. Programs authorized.
[Sec. 412. Materials development in telecommunications.
[Sec. 413. Demonstration centers for the training of dislocated workers.
[Sec. 414. Professional development.
[Sec. 415. Blue ribbon vocational education programs.
[Sec. 416. Development of business and education standards.
[Sec. 417. Educational programs for Federal correctional institutions.
[Sec. 418. Dropout prevention.
[Sec. 419. Model programs of regional training for skilled trades.
[Sec. 420. Demonstration projects for the integration of vocational and 
          academic learning.
[Sec. 420A. Cooperative Demonstration Programs.

 [Part C--Vocational Education and Occupational Information Data Systems

[Sec. 421. Data systems authorized.
[Sec. 422. National Occupational Information Coordinating Committee.
[Sec. 423. Information base for vocational education data system.
[Sec. 424. Miscellaneous provisions.
                 [Part E--Bilingual Vocational Training

[Sec. 441. Program authorized.

                       [Part F--General Provisions

[Sec. 451. Distribution of assistance.

                      [TITLE V--GENERAL PROVISIONS

               [Part A--Federal Administrative Provisions

[Sec. 501. Payments.
[Sec. 502. Maintenance of effort.
[Sec. 503. Authority to make payments.
[Sec. 504. Regional meetings and negotiated rulemaking.
[Sec. 505. Requirements relating to reports, plans, and regulations.
[Sec. 506. Federal laws guaranteeing civil rights.
[Sec. 507. Student assistance and other Federal programs.
[Sec. 508. Federal monitoring.
                [Part B--State Administrative Provisions
[Sec. 511. Joint funding.
[Sec. 512. Review of regulations.
[Sec. 513. Identification of State-imposed requirements.
[Sec. 514. Prohibition on use of funds to induce out-of-State relocation 
          of businesses.
[Sec. 515. State administrative costs.
[Sec. 516. Additional administrative requirements.
                          [Part C--Definitions
[Sec. 521. Definitions.

[SEC. 2. STATEMENT OF PURPOSE.

  [It is the purpose of this Act to make the United States more 
competitive in the world economy by developing more fully the 
academic and occupational skills of all segments of the 
population. This purpose will principally be achieved through 
concentrating resources on improving educational programs 
leading to academic and occupational skill competencies needed 
to work in a technologically advanced society.

                    [Authorization of Appropriations

[SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

  [(a) In General.--There are authorized to be appropriated 
$1,600,000,000 for the fiscal year 1991 and such sums as may be 
necessary for each of the fiscal years 1992, 1993, 1994, and 
1995 to carry out the provisions of titles I, II, III, and IV 
of this Act.
  [(b) Title I.--(1) Of the amounts remaining from amounts made 
available under subsection (a) after providing amounts for the 
programs described in paragraph (2) and subsections (d) and 
(f)--
          [(A) 1.5 percent shall be available to carry out the 
        provisions of section 103, relating to Indian and 
        Hawaiian natives programs; and
          [(B) .2 percent shall be available to carry out the 
        provisions of section 101A, relating to the 
        territories.
  [(2) Of the amounts made available in the fiscal year 1991 
under subsection (a), not more than $9,000,000 shall be 
available to carry out the provisions of section 112, relating 
to State councils on vocational education.
  [(c) Basic Programs.--Of the amounts remaining from amounts 
made available under subsection (a) after providing amounts for 
the programs described in subsections (b)(2), (d), and (f), 
95.8 percent shall be available to carry out the provisions of 
title II, relating to basic programs.
  [(d) Special Programs.--(1) Subject to paragraph (2), of the 
amounts made available under subsection (a) for the fiscal year 
1991--
          [(A) not more than $15,000,000 shall be available to 
        carry out the provisions of part A of title III, 
        relating to State assistance for vocational education 
        support programs by community-based organizations;
          [(B) not more than $38,500,000 shall be available to 
        carry out the provisions of part B of title III, 
        relating to consumer and homemaking education;
          [(C) not more than $20,000,000 shall be available to 
        carry out the provisions of part C of title III, 
        relating to comprehensive career guidance and 
        counseling programs;
          [(D) not more than $10,000,000 shall be available to 
        carry out the provisions of part D of title III, 
        relating to business-labor-education partnerships;
          [(E) not more than $125,000,000 shall be available to 
        carry out the provisions of part E of title III, 
        relating to tech-prep education;
          [(F) not more than $100,000,000 shall be available to 
        carry out the provisions of part F of title III, 
        relating to supplementary State grants for facilities 
        and equipment and other program improvement activities;
          [(G) not more than $10,000,000 shall be available to 
        carry out the provisions of part G of title III, of 
        which--
                  [(i) an amount equal to 75 percent of the 
                amounts made available to carry out such part 
                shall be available to carry out the provisions 
                of subpart 1 of such part, relating to 
                community education employment centers; and
                  [(ii) an amount equal to 25 percent of the 
                amounts made available to carry out such part 
                shall be available to carry out the provisions 
                of subpart 2 of such part, relating to 
                vocational education lighthouse schools; and
          [(H) not more than $4,000,000 shall be available to 
        carry out the provisions of part H of title III, 
        relating to tribally controlled postsecondary 
        vocational institutions.
  [(2) Notwithstanding the provisions of paragraph (1), amounts 
shall be available to carry out the provisions of part C, D, or 
G of title III in any fiscal year only to the extent that the 
amount available for such fiscal year to carry out the 
provisions of title II exceeds $1,000,000,000.
  [(e) National Programs.--For each fiscal year, of the amounts 
remaining from amounts available pursuant to subsection (a) 
after providing amounts for the programs described in 
subsections (b)(2), (d), and (f), 2.5 percent of such remainder 
shall be available to carry out the provisions of title IV 
(other than parts D and E), relating to national programs.
  [(f) Other National Programs.--(1) Of amounts made available 
under subsection (a) for the fiscal year 1991, not more than 
$350,000 shall be available to carry out the provisions of part 
D of title IV, relating to the National Council on Vocational 
Education.
  [(2) Of amounts made available under subsection (a) for the 
fiscal year 1991, not more than $10,000,000 shall be available 
to carry out the provisions of part E of title IV, relating to 
bilingual vocational training programs.
        [TITLE I--VOCATIONAL EDUCATION ASSISTANCE TO THE STATES

                   [Part A--Allotment and Allocation

                               [Allotment

  [Sec. 101. (a)(1) In each fiscal year, of the amounts 
remaining from amounts made available under section 3(a) after 
providing amounts for the programs described in subsections 
(b)(2), (d), and (f) of section 3, the Secretary shall 
reserve--
          [(A) 2.5 percent for the activities described in 
        title IV (other than parts D and E);
          [(B) 1.5 percent for the purpose of carrying out 
        section 103, of which--
                  [(i) 1.25 percent shall be for the purpose of 
                carrying out section 103(b); and
                  [(ii) .25 percent shall be for the purpose of 
                carrying out section 103(c); and
          [(C) .2 percent for the purpose of carrying out 
        section 101A.
  [(2) Subject to the provisions of paragraph (3), from the 
remainder of the sums appropriated pursuant to sections 3(a) 
and 3(b), the Secretary shall allot to each State for each 
fiscal year--
          [(A) an amount which bears the same ratio to 50 
        percent of the sums being allotted as the product of 
        the population aged fifteen to nineteen inclusive, in 
        the State in the fiscal year preceding the fiscal year 
        for which the determination is made and the State's 
        allotment ratio bears to the sum of the corresponding 
        products for all the States;
          [(B) an amount which bears the same ratio to 20 
        percent of the sums being allotted as the product of 
        the population aged twenty to twenty-four, inclusive, 
        in the State in the fiscal year preceding the fiscal 
        year for which the determination is made and the 
        State's allotment ratio bears to the sum of the 
        corresponding products for all the States;
          [(C) an amount which bears the same ratio to 15 
        percent of the sums being allotted as the product of 
        the population aged twenty-five to sixty-five, 
        inclusive, in the State in the fiscal year preceding 
        the fiscal year for which the determination is made and 
        the State's allotment ratio bears to the sum of the 
        corresponding products for all the States; and
          [(D) an amount which bears the same ratio to 15 
        percent of the sums being allotted as the amounts 
        allotted to the State under clauses (A), (B), and (C) 
        for such years bears to the sum of the amounts allotted 
        to all the States under clauses (A), (B), and (C) for 
        such year.
  [(3)(A)(i) Notwithstanding any other provision of law and 
subject to clause (ii), for any fiscal year for programs 
authorized by title II or part B of title III of this Act, no 
State shall receive less than the payments made to the State 
for each such program for fiscal year 1985 under Public Laws 
98-619 and 99-88. Amounts necessary for increasing such 
payments to States to comply with the preceding sentence shall 
be obtained by ratably reducing the amounts to be paid to other 
States, but no such amount shall be reduced to an amount which 
is less than the amount a State received under the Act for each 
such program for fiscal year 1985.
  [(ii) If for any fiscal year the amount appropriated for 
programs authorized by title II or part B of title III and 
available for allotment under this section is insufficient to 
satisfy the provisions of clause (i), the payments to all 
States for each such program shall be ratably reduced as 
necessary.
  [(B)(i) Notwithstanding any other provision of law and 
subject to subparagraphs (A), (C), and (D) and clause (ii), for 
any fiscal year for which the amounts appropriated for programs 
authorized by title II or part A, B, C, D, or E of title III 
(and available for allotment under this section) exceed the 
amounts so available for fiscal year 1985, no State shall 
receive less than one-half of one percent of the amount 
available for each such program for that fiscal year under this 
subsection. Amounts necessary for increasing such payments to 
States to comply with the preceding sentence shall be obtained 
by ratably reducing the amounts to be paid to other States.
  [(ii) Due to the application of the provisions of clause (i), 
for any fiscal year, no State shall receive more than 150 
percent of the payments made to the State for each program 
authorized by title II, or part A, B, C, D, or E of title III 
for the preceding fiscal year.
                  [(C) In the case of the Virgin Islands, the 
                minimum allotment for all programs under this 
                Act shall not be less than $200,000.
  [(D)(i) Subject to clause (iii), no State shall, by reason of 
subparagraph (B), be allotted more than the lesser of--
          [(I) 150 percent of the amount that the State 
        received in the preceding fiscal year; and
          [(II) the amount calculated under clause (ii).
  [(ii) The amount calculated under this clause shall be 
determined by multiplying--
          [(I) the number of individuals in the State counted 
        under paragraph (2) in the preceding fiscal year; by
          [(II) 150 percent of the national average per pupil 
        payment made with funds available under this section 
        for that year.
  [(iii) Notwithstanding the provisions of clauses (i) and 
(ii), no State shall be allotted an amount under this section 
in any fiscal year that is less than the amount such State is 
allotted in the fiscal year 1991.
  [(b) If the Secretary determines that any amount of any 
State's allotment under subsection (a) for any fiscal year will 
not be required for such fiscal year for carrying out the 
program for which such amount has been allotted, the Secretary 
shall make such amount available for reallotment. Any such 
reallotment among other States shall occur on such dates during 
the same year as the Secretary shall fix, and shall be made on 
the basis of criteria established by regulation. No funds may 
be reallotted for any use other than the use for which they 
were appropriated. Any amount reallotted to a State under this 
subsection for any fiscal year shall remain available for 
obligation during the succeeding fiscal year and shall be 
deemed to be part of its allotment for the year in which it is 
obligated.
  [(c)(1) The allotment ratio for any State shall be 1.00 less 
the product of--
          [(A) 0.50; and
          [(B) the quotient obtained by dividing the per capita 
        income for the State by the per capita income for all 
        the States (exclusive of Puerto Rico and the Virgin 
        Islands), except that (i) the allotment ratio in no 
        case shall be more than 0.60 or less than 0.40 and (ii) 
        the allotment ratio for Puerto Rico and the Virgin 
        Islands shall be 0.60.
  [(2) The allotment ratios shall be promulgated by the 
Secretary for each fiscal year between October 1 and December 
31 of the fiscal year preceding the fiscal year for which the 
determination is made. Allotment ratios shall be computed on 
the basis of the average of the appropriate per capita incomes 
for the three most recent consecutive fiscal years for which 
satisfactory data are available.
  [(3) The term ``per capita income'' means, with respect to a 
fiscal year, the total personal income in the calendar year 
ending in such year, divided by the population of the area 
concerned in such year.
  [(4) For the purposes of this section, population shall be 
determined by the Secretary on the basis of the latest 
estimates available to the Department.
  [(d) For the purpose of this section, the term ``State'' 
means any 1 of the 50 States, the Commonwealth of Puerto Rico, 
the District of Columbia, and the Virgin Islands.

[SEC. 101A. THE TERRITORIES.

  [(a) The Territories.--From funds reserved pursuant to 
section 101(a)(1)(C), the Secretary shall--
          [(1) make a grant in the amount of $500,000 to Guam; 
        and
          [(2) make a grant in the amount of $190,000 to each 
        of American Samoa and the Commonwealth of the Northern 
        Mariana Islands.
  [(b) Remainder.--Subject to the provisions of subsection (a), 
the Secretary shall make a grant of the remainder of funds 
reserved pursuant to section 101(a)(1)(C) to the Pacific Region 
Educational Laboratory in Honolulu, Hawaii, to make grants for 
vocational education and training in Guam, American Samoa, the 
Republic of Palau, the Commonwealth of the Northern Mariana 
Islands, the Federated States of Micronesia, and the Republic 
of the Marshall Islands, for the purpose of providing direct 
educational services, including--
          [(1) teacher and counselor training and retraining;
          [(2) curriculum development; and
          [(3) improving vocational education and training 
        programs in secondary schools and institutions of 
        higher education, or improving cooperative education 
        programs involving both secondary schools and 
        institutions of higher education.
  [(c) Limitation.--The Pacific Region Educational Laboratory 
may use not more than 5 percent of the funds received pursuant 
to subsection (b) for administrative costs.

[SEC. 102. WITHIN STATE ALLOCATION.

  [(a) Programs Other Than State Grants.--From the allotment 
made to each State from funds appropriated under section 3(a) 
for each fiscal year--
          [(1) an amount equal to at least 75 percent of the 
        allotment shall be available only for basic programs 
        under part C of title II;
          [(2) an amount equal to 10.5 percent of the allotment 
        shall be available only for the program for single 
        parents, displaced homemakers, and single pregnant 
        women described in section 221 and the sex equity 
        program described in section 222, of which--
                  [(A) not less than 7 percent of such 
                allotment shall be reserved for the program for 
                single parents, displaced homemakers, and 
                single pregnant women; and
                  [(B) not less than 3 percent of such 
                allotment shall be reserved for the sex equity 
                program;
          [(3) an amount equal to not more than 8.5 percent of 
        the allotment shall be available only for State 
        programs and activities described in section 201;
          [(4) the State may use for administration of the 
        State plan an amount that does not exceed 5 percent of 
        the allotment or $250,000, whichever is greater, of 
        which--
                  [(A) not less than $60,000 shall be available 
                only for purposes of carrying out the 
                provisions of section 111(b)(1); and
                  [(B) remaining amounts may be used for the 
                costs of--
                          [(i) developing the State plan;
                          [(ii) reviewing local applications;
                          [(iii) monitoring and evaluating 
                        program effectiveness;
                          [(iv) providing technical assistance; 
                        and
                          [(v) assuring compliance with all 
                        applicable Federal laws, including 
                        required services and activities for 
                        individuals who are members of special 
                        populations; and
          [(5) an amount equal to 1 percent of the allotment 
        shall be available only for programs for criminal 
        offenders under section 225.
  [(b) Matching Requirement.--Each State receiving financial 
assistance under this Act shall match, from non-Federal sources 
and on a dollar-for-dollar basis, the funds reserved pursuant 
to subsection (a)(4).
  [(c) Hold Harmless Provision.--(1) Except as provided in 
paragraph (3) and notwithstanding the provisions of subsection 
(a), each State shall reserve for the program for single 
parents, displaced homemakers, and single pregnant women under 
section 221, and the sex equity program under section 222, 
respectively, an amount that is not less than the amount such 
State reserved for each such program in the fiscal year 1990.
          [(2) Except as provided in paragraph (3) and 
        notwithstanding the provisions of subsection (a), each 
        State shall reserve for the program for criminal 
        offenders under section 225, an amount that is not less 
        than the amount such State expended under this Act for 
        such program for the fiscal year 1990.
  [(3) In any year in which a State receives an amount for 
purposes of carrying out programs under title II that is less 
than the amount such State received for such purposes in the 
fiscal year 1990, such State shall ratably reduce the amounts 
reserved under paragraph (1).

                 [Indian and Hawaiian Natives Programs

  [Sec. 103. (a)(1) For the purpose of this section--
  [(1)(A) From the funds reserved pursuant to section 
101(a)(1)(B)(i), the Secretary is directed--
          [(i) upon the request of any Indian tribe which is 
        eligible to contract with the Secretary of the Interior 
        for the administration of programs under the Indian 
        Self-Determination Act or under the Act of April 16, 
        1934; or
          [(ii) upon an application received from a Bureau 
        funded school (as such term is defined in section 
        1139(3) of the Education Amendments of 1978) offering 
        secondary programs filed at such time and under such 
        conditions as the Secretary may prescribe,
to make grants to or enter into contracts with any tribal 
organization of any such Indian tribe or to make a grant to 
such Bureau funded school, as appropriate, to plan, conduct, 
and administer programs or portions of programs authorized by 
and consistent with the purposes of this Act, except that--
          [(I) such grants or contracts with any tribal 
        organization shall be subject to the terms and 
        conditions of section 102 of the Indian Self-
        Determination Act and shall be conducted in accordance 
        with the provisions of sections 4, 5, and 6 of the Act 
        of April 16, 1934, which are relevant to the programs 
        administered under this sentence; and
          [(II) such grants to Bureau funded schools shall not 
        be subject to the requirements of the Indian Self-
        Determination Act or the Act of April 16, 1934.
  [(B)(i) Any tribal organization or school eligible to receive 
assistance under this paragraph may apply individually or as 
part of a consortium with another such tribal organization or 
school.
  [(ii) In the case of a Bureau funded school, the minimum 
amount of a grant made under this section shall be $35,000.
  [(C) The Secretary may not place upon grants made or 
contracts entered into under this paragraph any restrictions 
relating to programs or outcomes other than restrictions which 
apply to grants made to or contracts entered into with States 
under section 101. The Secretary, in making grants under this 
paragraph, shall give special consideration to--
          [(i) grants which involve, coordinate with, or 
        encourage tribal economic development plans; and
          [(ii) applications from tribally controlled community 
        colleges which--
                  [(I) are accredited or are candidates for 
                accreditation by a nationally recognized 
                accreditation organization as an institution of 
                postsecondary vocational education; or
                  [(II) operate vocational education programs 
                that are accredited or are candidates for 
                accreditation by a nationally recognized 
                accreditation organization and issue 
                certificates for completion of vocational 
                education programs.
  [(2) From the funds reserved pursuant to section 
101(a)(1)(B), the Secretary shall enter into contracts for 
Indian and Hawaiian native programs in accordance with the 
provisions of this section.
  [(b)(1)(A) From the funds reserved pursuant to section 
101(a)(1)(B)(i), the Secretary is directed--
          [(i) upon the request of any Indian tribe which is 
        eligible to contract with the Secretary of the Interior 
        for the administration of programs under the Indian 
        Self-Determination Act or under the Act of April 16, 
        1934; or
          [(ii) upon an application received from a Bureau 
        funded school (as such term is defined in section 
        1139(3) of the Education Amendments of 1978) offering 
        secondary programs filed at such time and under such 
        conditions as the Secretary may prescribe,
to make grants to or enter into contracts with any tribal 
organization of any such Indian tribe or to make a grant to 
such Bureau funded school, as appropriate, to plan, conduct, 
and administer programs or portions of programs authorized by 
and consistent with the purposes of this Act, except that--
          [(I) such grants or contracts with any tribal 
        organization shall be subject to the terms and 
        conditions of section 102 of the Indian Self-
        Determination Act and shall be conducted in accordance 
        with the provisions of sections 4, 5, and 6 of the Act 
        of April 16, 1934, which are relevant to the programs 
        administered under this sentence; and
          [(II) such grants to Bureau funded schools shall not 
        be subject to the requirements of the Indian Self-
        Determination Act or the Act of April 16, 1934.
  [(B)(i) Any tribal organization or school eligible to receive 
assistance under this paragraph may apply individually or as 
part of a consortium with another such tribal organization or 
school.
  [(ii) In the case of a Bureau funded school, the minimum 
amount of a grant made under this section shall be $35,000.
  [(C) The Secretary may not place upon grants made or 
contracts entered into under this paragraph any restrictions 
relating to programs or outcomes other than restrictions which 
apply to grants made to or contracts entered into with States 
under section 101. The Secretary, in making grants under this 
paragraph, shall give special consideration to--
          [(i) grants which involve, coordinate with, or 
        encourage tribal economic development plans; and
          [(ii) applications from tribally controlled community 
        colleges which--
                  [(I) are accredited or are candidates for 
                accreditation by a nationally recognized 
                accreditation organization as an institution of 
                postsecondary vocational education; or
                  [(II) operate vocational education programs 
                that are accredited or are candidates for 
                accreditation by a nationally recognized 
                accreditation organization and issue 
                certificates for completion of vocational 
                education programs.
          [(D)(i) Funds received pursuant to grants and 
        contracts described in subparagraph (A) may be used to 
        provide stipends to students who are enrolled in 
        vocational education programs and who have acute 
        economic needs which cannot be met through work-study 
        programs.
          [(ii) Stipends described in clause (i) shall not 
        exceed reasonable amounts as prescribed by the 
        Secretary.
  [(2) The Bureau of Indian Affairs shall expend an amount 
equal to the amount made available under this subsection, 
relating to programs for Indians, to pay a part of the costs of 
programs funded under this subsection. During each fiscal year 
the Bureau of Indian Affairs shall expend no less than the 
amount expended during the prior fiscal year on vocational 
education programs, services, and activities administered 
either directly by, or under contract with, the Bureau of 
Indian Affairs. The Secretary and the Assistant Secretary of 
the Interior for Indian Affairs shall jointly prepare a plan 
for the expenditure of funds made available and for the 
evaluation of programs assisted under this subsection. Upon the 
completion of a joint plan for the expenditure of these funds 
and the evaluation of the programs, the Secretary shall assume 
responsibility for the administration of the program, with the 
assistance and consultation of the Bureau of Indian Affairs.
  [(3) Programs funded under this subsection shall be in 
addition to such other programs, services, and activities as 
are made available to eligible Indians under other provisions 
of this Act.
  [(4) For the purposes of this Act, the Bureau of Indian 
Affairs shall be deemed to be a State board; and all the 
provisions of this Act shall be applicable to the Bureau as if 
it were a State board.
  [(c) From the funds reserved pursuant to section 
101(a)(1)(B)(ii), the Secretary is directed, to enter into 
contracts with organizations primarily serving and representing 
Hawaiian natives which are recognized by the Governor of the 
State of Hawaii to plan, conduct, and administer programs, or 
portions thereof, which are authorized by and consistent with 
the provisions of this section for the benefit of Hawaiian 
natives.

      [Part B--State Organizational and Planning Responsibilities

                         [State Administration

  [Sec. 111. (a)(1) Any State desiring to participate in the 
vocational education program authorized by this Act shall, 
consistent with State law, designate or establish a State board 
of vocational education which shall be the sole State agency 
responsible for the administration or the supervision of the 
State vocational education program. The responsibilities of the 
State board shall include--
          [(A) coordination of the development, submission, and 
        implementation of the State plan, and the evaluation of 
        the program, services, and activities assisted under 
        this Act pursuant to section 113(b)(8), section 116, 
        and section 117; and
          [(B) the development, in consultation with the State 
        council on vocational education, and the submission to 
        the Secretary, of the State plan required by section 
        113 and by section 114;
          [(C) consultation with the State council established 
        pursuant to section 112, and other appropriate 
        agencies, groups, and individuals, including business, 
        industry, and labor, involved in the planning, 
        administration, evaluation, and coordination of 
        programs funded under this Act;
          [(D) convening and meeting as a State board 
        (consistent with State law and procedure for the 
        conduct of such meetings) at such time as the State 
        board determines necessary to carry out its functions 
        under this Act, but not less than four times annually; 
        and
          [(E) the adoption of such procedures as the State 
        board considers necessary to implement State level 
        coordination with the State job training coordinating 
        council to encourage cooperation in the conduct of 
        their respective programs.
Except with respect to the functions set forth in the preceding 
sentence, the State board may delegate any of its other 
responsibilities involving administration, operation, or 
supervision, in whole or in part, to one or more appropriate 
State agencies.
  [(2) Each State shall include a description of any delegation 
of its functions under paragraph (1) in its State plan, or 
amendments to such plan, submitted to the Secretary.
  [(b)(1) Any State desiring to participate in the programs 
authorized by this Act shall assign one individual within the 
appropriate agency established or designated by the State board 
under the last sentence of subsection (a)(1) to administer 
vocational education programs within the State, to work full 
time to assist the State board to fulfill the purposes of this 
Act by--
          [(A) administering the program of vocational 
        education for single parents and homemakers described 
        in section 221 and the sex equity program described in 
        section 222;
          [(B) gathering, analyzing, and disseminating data on 
        the adequacy and effectiveness of vocational education 
        programs in the State in meeting the education and 
        employment needs of women (including preparation for 
        employment in technical occupations, new and emerging 
        occupational fields, and occupations regarded as 
        nontraditional for women), and on the status of men and 
        women students and employees in such programs;
                  [(C) reviewing and commenting upon, and 
                making recommendations concerning, the plans of 
                local educational agencies, area vocational 
                education schools, intermediate educational 
                agencies, and postsecondary educational 
                institutions to ensure that the needs of women 
                and men for training in nontraditional jobs are 
                met;
          [(D) reviewing vocational education programs 
        (including career guidance and counseling) for sex 
        stereotyping and sex bias, with particular attention to 
        practices which tend to inhibit the entry of women in 
        high technology occupations, and submitting (i) 
        recommendations for inclusion in the State plan of 
        programs and policies to overcome sex bias and sex 
        stereotyping in such programs, and (ii) an assessment 
        of the State's progress in meeting the purposes of this 
        Act with regard to overcoming sex discrimination and 
        sex stereotyping;
          [(E) reviewing proposed actions on grants, contracts, 
        and the policies of the State board to ensure that the 
        needs of women are addressed in the administration of 
        this Act;
          [(F) developing recommendations for programs of 
        information and outreach to women concerning vocational 
        education and employment opportunities for women 
        (including opportunities for careers as technicians and 
        skilled workers in technical fields and new and 
        emerging occupational fields);
          [(G) providing technical assistance and advice to 
        local educational agencies, postsecondary institutions, 
        and other interested parties in the State, in expanding 
        vocational opportunities for women; and
          [(H) assisting administrators, instructors, and 
        counselors in implementing programs and activities to 
        increase access for women (including displaced 
        homemakers and single heads of households) to 
        vocational education and to increase male and female 
        students' enrollment in nontraditional programs.
                  [(I) developing an annual plan for the use of 
                all funds available for such programs;
                  [(J) managing the distribution of funds 
                pursuant to section 223;
                  [(K) monitoring the use of funds distributed 
                to recipients under such programs; and
                  [(L) evaluating the effectiveness of programs 
                and activities supported by such funds.
  [(2) For the purpose of this subsection, the term ``State'' 
means any one of the fifty States and the District of Columbia.
  [(3) Each State shall from funds allocated under section 
102(a)(4)(A) expend not less than $60,000 in each fiscal year 
to carry out the provisions of this subsection.
  [(c) Review of Plans With Respect to Students With 
Handicaps.--(1) Any State desiring to participate in the 
programs authorized by this Act shall designate or assign the 
head of the State office responsible for administering part B 
of the Individuals with Disabilities Education Act to review 
the implementation of the provisions of this Act as such 
provisions relate to students with handicaps by reviewing all 
or a representative sample of plans of eligible recipients to--
          [(A) assure that individuals with handicaps are 
        receiving vocational educational services;
          [(B) assure that the plans of the eligible recipient 
        provide assurances of compliance with the provisions of 
        section 504 of the Rehabilitation Act of 1973 and the 
        Education of Handicapped Act regarding equal access to 
        programs; and
          [(C) assure that the eligible recipients have--
                  [(i) identified the number of students with 
                handicaps enrolled in vocational programs 
                operated by the eligible recipient;
                  [(ii) assessed the vocational needs of the 
                students identified pursuant to clause (i); and
                  [(iii) developed an adequate plan to provide 
                supplementary services sufficient to meet the 
                needs of such students.
  [(2) For purposes of this subsection and subsections (d) and 
(e), the term ``State'' means any 1 of the 50 States, the 
District of Columbia, and the Commonwealth of Puerto Rico.
  [(d) Needs of Economically Disadvantaged Students.--Any State 
desiring to participate in the programs authorized by this Act 
shall assign the head of the State office or other appropriate 
individual responsible for coordinating services under title I 
of the Elementary and Secondary Education Act of 1965 to review 
all or a representative sample of plans of the eligible 
recipients to ensure that the number of economically 
disadvantaged students have been identified, and that the needs 
of such students are being met as outlined by such plans.
  [(e) Needs of Students of Limited English Proficiency.--Any 
State desiring to participate in the programs authorized by 
this Act shall designate or assign the head of the State office 
or other appropriate individual responsible for administering 
programs for students of limited English proficiency to review 
all or a representative sample of the plans of the eligible 
recipients to ensure the numbers of students of limited English 
proficiency have been identified and that the needs of such 
students for participation in vocational education programs are 
being met as outlined by such plans.
  [(f) The State board shall make available to each private 
industry council established under section 102 of the Job 
Training Partnership Act within the State a listing of all 
programs assisted under this Act.
  [(g) Each State board, in consultation with the State 
council, shall establish a limited number of technical 
committees to advise the council and the board on the 
development of model curricula to address State labor market 
needs. Technical committees shall develop an inventory of 
skills that may be used by the State board to define state-of-
the-art model curricula. Such inventory will provide the type 
and level of knowledge and skills needed for entry, retention, 
and advancement in occupational areas taught in the State. The 
State board shall establish procedures for membership, 
operation, and duration of such committees consistent with the 
purposes of this Act. The membership shall be representatives 
of (1) employers from any relevant industry or occupation for 
which the committee is established; (2) trade or professional 
organizations representing any relevant occupations; and (3) 
organized labor, where appropriate.

                 [State Council on Vocational Education

  [Sec. 112. (a) Each State which desires to participate in 
vocational education programs authorized by this Act for any 
fiscal year shall establish a State council, which shall be 
appointed by the Governor or, in the case of States in which 
the members of the State board of education are elected 
(including election by the State legislature), by such board. 
Each State council shall be composed of 13 individuals, and 
shall be broadly representative of citizens and groups within 
the State having an interest in vocational education. Each 
State council shall consist of--
          [(1) seven individuals who are representative of the 
        private sector in the State who shall constitute a 
        majority of the membership--
                  [(A) five of whom shall be representative of 
                business, industry, trade organizations, and 
                agriculture including--
                          [(i) one member who is representative 
                        of small business concerns; and
                          [(ii) one member who is a private 
                        sector member of the State job training 
                        coordinating council (established 
                        pursuant to section 122 of the Job 
                        Training Partnership Act), and
                  [(B) two of whom shall be representatives of 
                labor organizations;
          [(2) six individuals who are representative of 
        secondary and postsecondary vocational institutions 
        (equitably distributed among such institutions), career 
        guidance and counseling organizations within the State, 
        individuals who have special knowledge and 
        qualifications with respect to the special educational 
        and career development needs of special populations 
        (including women, the disadvantaged, the handicapped, 
        individuals with limited English proficiency, and 
        minorities) and of whom one member shall be 
        representative of special education and may include 
        members of vocational student organizations and school 
        board members.
In selecting individuals under subsection (a) to serve on the 
State council, due consideration shall be given to the 
appointment of individuals who serve on a private industry 
council under the Job Training Partnership Act, or on State 
councils established under other related Federal Acts. No 
employee of the State board shall serve on the State council.
  [(b) The State shall certify to the Secretary the 
establishment and membership of the State council by the 
beginning of each State plan period described in section 
113(a)(1).
  [(c) Each State council shall meet as soon as practical after 
certification has been accepted by the Secretary and shall 
select from among its membership a chairperson who shall be 
representative of the private sector. The time, place, and 
manner of meeting, as well as council operating procedures and 
staffing, shall be as provided by the rules of the State 
council, except that such rules must provide for not less than 
one public meeting each year at which the public is given an 
opportunity to express views concerning the vocational 
education program of the State.
  [(d) During each State plan period described in section 
113(a)(1), each State council shall--
          [(1) meet with the State board or its representatives 
        to advise on the development of the subsequent State 
        plan;
          [(2) make recommendations to the State board and make 
        reports to the Governor, the business community, and 
        general public of the State, concerning--
                  [(A) the State plan;
                  [(B) policies the State should pursue to 
                strengthen vocational education (with 
                particular attention to programs for the 
                handicapped); and
                  [(C) initiatives and methods the private 
                sector could undertake to assist in the 
                modernization of vocational education programs;
          [(3) analyze and report on the distribution of 
        spending for vocational education in the State and on 
        the availability of vocational education activities and 
        services within the State;
          [(4) furnish consultation to the State board on the 
        establishment of evaluation criteria for vocational 
        education programs within the State;
          [(5) submit recommendations to the State board on the 
        conduct of vocational education programs conducted in 
        the State which emphasize the use of business concerns 
        and labor organizations;
          [(6) assess the distribution of financial assistance 
        furnished under this Act, particularly with the 
        analysis of the distribution of financial assistance 
        between secondary vocational education programs and 
        postsecondary vocational education programs;
          [(7) recommend procedures to the State board to 
        ensure and enhance the participation of the public in 
        the provision of vocational education at the local 
        level within the State, particularly the participation 
        of local employers and local labor organizations;
          [(8) report to the State board on the extent to which 
        individuals who are members of special populations are 
        provided with equal access to quality vocational 
        education programs;
          [(9) analyze and review corrections education 
        programs; and
          [(10)(A) evaluate at least once every 2 years--
                  [(i) the extent to which vocational 
                education, employment, and training programs in 
                the State represent a consistent, integrated, 
                and coordinated approach to meeting the 
                economic needs of the State;
                  [(ii) the vocational education program 
                delivery system assisted under this Act, and 
                the job training program delivery system 
                assisted under the Job Training Partnership 
                Act, in terms of such delivery systems' 
                adequacy and effectiveness in achieving the 
                purposes of each of the 2 Acts; and
                  [(iii) make recommendations to the State 
                board on the adequacy and effectiveness of the 
                coordination that takes place between 
                vocational education and the Job Training 
                Partnership Act;
          [(B) comment on the adequacy or inadequacy of State 
        action in implementing the State plan;
          [(C) make recommendations to the State board on ways 
        to create greater incentives for joint planning and 
        collaboration between the vocational education system 
        and the job training system at the State and local 
        levels; and
          [(D) advise the Governor, the State board, the State 
        job training coordinating council, the Secretary, and 
        the Secretary of Labor regarding such evaluation, 
        findings, and recommendations.
  [(e) Each State council is authorized to obtain the services 
of such professional, technical, and clerical, personnel as may 
be necessary to enable it to carry out its functions under this 
Act and to contract for such services as may be necessary to 
enable the Council to carry out its evaluation functions, 
independent of programmatic and administrative control by other 
State boards, agencies, and individuals. Each State Council may 
submit a statement to the Secretary reviewing and commenting 
upon the State plan. Such statement shall be sent to the 
Secretary with the State plan.
  [(f)(1)(A) Except as provided in subparagraph (B), from the 
sums appropriated pursuant to section 3(c), the Secretary shall 
first make grants of $150,000 to each State council. From the 
remainder of such sums the Secretary shall allot to each State 
council an amount in accordance with the method of allotment 
set forth in section 101(a)(2) of this Act, provided that--
          [(i) no State council shall receive more than 
        $250,000 for each fiscal year;
          [(ii) no State council shall receive less than 
        $150,000 for each fiscal year; and
          [(iii) no State council shall receive less than such 
        State council was allotted in the fiscal year 1990;
  [(B) From the sums appropriated pursuant to section 3(c) for 
each fiscal year, the Secretary shall make grants of--
          [(i) $60,000 to each of the State councils of the 
        Virgin Islands and Guam; and
          [(ii) $25,000 to each of the State councils of 
        American Samoa, Palau (until the Compact of Free 
        Association with Palau takes effect pursuant to section 
        101(a) of Public Law 99-658), and the Commonwealth of 
        the Northern Mariana Islands.
  [(2) The expenditure of the funds paid pursuant to this 
subsection is to be determined solely by the State council for 
carrying out its functions under this Act, and may not be 
diverted or reprogramed for any other purpose by any State 
board, agency, or individual. Each State council shall 
designate an appropriate State agency or other public agency, 
eligible to receive funds under this Act, to act as its fiscal 
agent for purposes of disbursement, accounting, and auditing.

[SEC. 113. STATE PLAN.

  [(a) In General.--(1)(A) Any State desiring to receive funds 
from its allotment for any fiscal year shall submit to the 
Secretary a State plan for a 3-year period, in the case of the 
initial plan, and a 2-year period thereafter, together with 
such annual revisions as the State board determines to be 
necessary.
  [(B) The planning periods required by subparagraph (A) shall 
be coterminous with the planning program periods required under 
section 104(a) of the Job Training Partnership Act.
  [(2)(A) In formulating the State plan (and amendments 
thereto), the State board shall meet with and utilize the State 
council established pursuant to section 112.
  [(B) The State board shall conduct public hearings in the 
State, after appropriate and sufficient notice, for the purpose 
of affording all segments of the public and interested 
organizations and groups an opportunity to present their views 
and make recommendations regarding the State plan. A summary of 
such recommendations and the State board's response shall be 
included with the State plan.
  [(3) In developing the State plan, the State shall conduct an 
assessment according to section 116. Such assessment shall 
include analysis of--
          [(A) the relative academic, occupational, training, 
        and retraining needs of secondary, adult, and 
        postsecondary students; and
          [(B) the capability of vocational education programs 
        to provide vocational education students, to the extent 
        practicable, with--
                  [(i) strong experience in and understanding 
                of all aspects of the industry the students are 
                preparing to enter (including planning, 
                management, finances, technical and production 
                skills, underlying principles of technology, 
                labor and community issues, and health, safety, 
                and environmental issues); and
                  [(ii) strong development and use of problem-
                solving skills and basic and advanced academic 
                skills (including skills in the areas of 
                mathematics, reading, writing, science, and 
                social studies) in a technological setting.
  [(b) Contents.--Each State plan shall--
          [(1) describe the procedures and the results of each 
        of the assessments required by section 116(a), 
        including the needs identified by such assessments;
          [(2) describe how uses of funds reflect the needs 
        described in paragraph (1);
          [(3) provide assurances that, and where necessary a 
        description of the manner in which, eligible recipients 
        will comply with the requirements of titles I and II, 
        including--
                  [(A) a description of the manner in which the 
                State will comply with the criteria required 
                for programs for individuals who are members of 
                special populations and a description of the 
                responsiveness of such programs to the special 
                needs of such students;
                  [(B) assurances that the State board will 
                develop measurable goals and accountability 
                measures for meeting the needs of individuals 
                who are members of special populations;
                  [(C) assurances that the State board will 
                conduct adequate monitoring of programs 
                conducted by eligible recipients to ensure that 
                programs within the State are meeting the goals 
                described in subparagraph (B); and
                  [(D) assurances that, to the extent 
                consistent with the number and location of 
                individuals who are members of special 
                populations who are enrolled in private 
                secondary schools, provision is made for the 
                participation of such individuals in the 
                vocational education programs assisted under 
                section 231;
          [(4) describe the estimated distribution of funds to 
        corrections educational agencies as prescribed by 
        section 225, the estimated distribution of funds to 
        local educational agencies, area vocational education 
        schools, or intermediate educational agencies as 
        prescribed by section 231, and the planned estimated 
        distribution of funds to eligible institutions as 
        prescribed by section 232;
          [(5) provide assurances that the State will comply 
        with the provisions of section 102, including 
        assurances that the State will distribute not less than 
        75 percent of the funds made available for title II to 
        eligible recipients pursuant to such title;
          [(6) describe the criteria the State board will use--
                  [(A) in approving applications of eligible 
                recipients; and
                  [(B) for spending the amounts reserved for 
                the State under paragraphs (2) through (5) of 
                section 102(a);
          [(7) describe how funds expended for occupationally 
        specific training will be used for occupations in which 
        job openings are projected or available, based on a 
        labor market analysis;
          [(8) provide assurances that the State will develop 
        and implement a system of standards for performance and 
        measures of performance for vocational education 
        programs at the State level that meets the requirements 
        of section 115;
          [(9) describe, in each State plan submitted after the 
        fiscal year 1991, the progress the State has made in 
        achieving the goals described in previous State plans;
          [(10) provide such methods of administration as are 
        necessary for the prompt and efficient administration 
        of programs under this Act;
          [(11) provide assurances that, in the use of funds 
        available for single parents, displaced homemakers, and 
        single pregnant women under section 221, the State will 
        emphasize assisting individuals with the greatest 
        financial need, and that the State will give special 
        consideration to displaced homemakers who because of 
        divorce, separation, or the death or disability of a 
        spouse must prepare for paid employment;
          [(12) provide assurances that the State will furnish 
        relevant training and vocational education activities 
        to men and women who desire to enter occupations that 
        are not traditionally associated with their sex;
          [(13) describe how the State is implementing 
        performance evaluations with eligible recipients as 
        prescribed in section 117;
          [(14) describe the methods proposed for the joint 
        planning and coordination of programs carried out under 
        this Act with programs conducted under the Job Training 
        Partnership Act, the Adult Education Act, title I of 
        the Elementary and Secondary Education Act of 1965, the 
        Individuals with Disabilities Education Act, and the 
        Rehabilitation Act of 1973, and with apprenticeship 
        programs;
          [(15) provide assurances that programs of personnel 
        development and curriculum development shall be funded 
        to further the goals identified in the State plan;
          [(16) provide assurances that the vocational 
        education needs of identifiable segments of the 
        population in the State that have the highest rates of 
        unemployment have been thoroughly assessed, and that 
        such needs are reflected in and addressed by the State 
        plan;
          [(17) provide assurances that the State board will 
        cooperate with the State council in carrying out the 
        Board's duties under this part;
          [(18) provide assurances that none of the funds 
        expended under this Act will be used to acquire 
        equipment (including computer software) in any instance 
        in which such acquisition results in a direct financial 
        benefit to any organization representing the interests 
        of the purchasing entity or its employees or any 
        affiliate of such an organization;
          [(19) provide assurances that State and local funds 
        will be used in the schools of each local educational 
        agency that are receiving funds under this Act to 
        provide services which, taken as a whole, are at least 
        comparable to services being provided in schools in 
        such agency which are not receiving such funds;
          [(20)(A) provide assurances that the State will 
        provide leadership, supervision, and resources for 
        comprehensive career guidance, vocational counseling, 
        and placement programs;
          [(B) as a component of the assurances described in 
        subparagraph (A), annually assess and report on the 
        degree to which expenditures aggregated within the 
        State for career guidance and vocational counseling 
        from allotments under title II are not less than such 
        expenditures for such guidance and counseling within 
        the State in the fiscal year 1988;
          [(21) provide assurances that the State will provide 
        for such fiscal control and fund accounting procedures 
        as may be necessary to assure the proper disbursement 
        of, and accounting for, Federal funds paid to the State 
        (including such funds paid by the State to eligible 
        recipients under this Act);
          [(22) provide procedures by which an area vocational 
        education school, intermediate educational agency, or 
        local educational agency may appeal decisions adverse 
        to its interests with respect to programs assisted 
        under this Act; and
          [(23) describe how the State will comply with the 
        provisions of section 118.
  [(c) Amendments to State Plan.--When changes in program 
conditions, labor market conditions, funding, or other factors 
require substantial amendment to an approved State plan, the 
State board, in consultation with the State council, shall 
submit amendments to such State plan to the Secretary. Any such 
amendments shall be subject to review by the State job training 
coordinating council and the State council.

[SEC. 114. STATE PLAN APPROVAL.

  [(a) In General.--The State board shall develop the portion 
of each State plan relating to the amount and uses of any funds 
proposed to be reserved for adult education, postsecondary 
education, tech-prep education, and secondary education after 
consultation with the State agency responsible for supervision 
of community colleges, technical institutes, or other 2-year 
postsecondary institutions primarily engaged in providing 
postsecondary vocational education, and the State agency 
responsible for secondary education. The State board shall, in 
developing such plan, take into consideration the relative 
training and retraining needs of secondary, adult, and 
postsecondary students, and shall include the State's rationale 
for distribution of funds. If a State agency finds that a 
portion of the final State plan is objectionable, such agency 
shall file such objections with the State board. The State 
board shall respond to any objections of such agency in 
submitting such plan to the Secretary. The Secretary shall 
consider such comments in reviewing the State plan.
  [(b) Time for Submission; Approval.--Each State plan shall be 
submitted to the Secretary by May 1 preceding the beginning of 
the first fiscal year for which such plan is to be in effect. 
The Secretary shall approve each plan before the expiration of 
the 60-day period beginning on the date the plan is submitted, 
if the plan meets the requirements of section 113 and is of 
sufficient quality to meet the objectives of this Act 
(including the objective of developing and implementing program 
evaluations and improvements), and shall subsequently take 
appropriate actions to monitor the State's compliance with the 
provisions of its plan and the requirements of this Act on a 
regular basis. The Secretary shall not finally disapprove a 
State plan except after giving reasonable notice and an 
opportunity for a hearing to the State board.

[SEC. 115. STATE AND LOCAL STANDARDS AND MEASURES.

  [(a) General Authority.--Each State board receiving funds 
under this Act shall develop and implement a statewide system 
of core standards and measures of performance for secondary and 
postsecondary vocational education programs. Each State board 
receiving funds under this Act, before the expiration of the 
30-day period beginning on the date of the enactment of the 
Carl D. Perkins Vocational and Applied Technology Education Act 
Amendments of 1990, shall appoint the State Committee of 
Practitioners (in this section referred to as the 
``Committee'') as prescribed by section 512(a) after consulting 
with local school officials representing eligible recipients, 
and representatives of organized labor, business, 
superintendents, community-based organizations, private 
industry councils established under section 102(a) of the Job 
Training Partnership Act, State councils, parents, special 
populations, correctional institutions, the administrator 
appointed under section 111(b)(1), the State administrator of 
programs assisted under part B of the Individuals with 
Disabilities Education Act, the State administrator of programs 
assisted under title I of the Elementary and Secondary 
Education Act of 1965, the State administrator of programs for 
students of limited English proficiency, and guidance 
counselors. Such system shall be developed and implemented 
before the end of the 2-year period beginning on the date of 
the enactment of the Carl D. Perkins Vocational and Applied 
Technology Education Act Amendments of 1990 and shall apply to 
all programs assisted under this Act. Eligible recipients may 
make local modifications to such system based on economic, 
geographic, or demographic factors, or the characteristics of 
the population to be served. Such modifications shall conform 
to the assessment criteria contained in the State plan. The 
State board shall convene the Committee on a regular basis to 
review, comment on, and propose revisions to a draft State 
proposal, which the State board shall develop, for a system of 
core standards and measures of performance for vocational 
programs.
  [(b) Requirements.--Each system developed under subsection 
(a) shall include--
          [(1) measures of learning and competency gains, 
        including student progress in the achievement of basic 
        and more advanced academic skills;
          [(2) 1 or more measures of performance, which shall 
        include only--
                  [(A) competency attainment;
                  [(B) job or work skill attainment or 
                enhancement including student progress in 
                achieving occupational skills necessary to 
                obtain employment in the field for which the 
                student has been prepared, including 
                occupational skills in the industry the student 
                is preparing to enter;
                  [(C) retention in school or completion of 
                secondary school or its equivalent; and
                  [(D) placement into additional training or 
                education, military service, or employment;
          [(3) incentives or adjustments that are--
                  [(A) designed to encourage service to 
                targeted groups or special populations; and
                  [(B) for each student, consistent with the 
                student's individualized education program 
                developed under section 614(a)(5) of the 
                Individuals with Disabilities Education Act, 
                where appropriate; and
          [(4) procedures for using existing resources and 
        methods developed in other programs receiving Federal 
        assistance.
  [(c) Consistency With Other Programs.--In developing the 
standards and measures included in a system developed under 
subsection (a), the State board shall take into consideration--
          [(1) standards and measures developed under job 
        opportunities and basic skills training programs 
        established and operated under a plan approved by the 
        Secretary of Health and Human Services that meets the 
        requirements of section 402(a)(19) of the Social 
        Security Act; and
          [(2) standards prescribed by the Secretary of Labor 
        under section 106 of the Job Training Partnership Act.
  [(d) Information Provided by State Board.--(1) The Committee 
shall make recommendations to the State board with respect to 
modifying standards and measures to be used under this section, 
based on the information provided under paragraph (2).
  [(2) To assist the Committee in formulating recommendations 
under paragraph (1), the State board shall provide to the 
Committee information concerning differing types of standards 
and measurement, including--
          [(A) the advantages and disadvantages of each type of 
        standard or measurement;
          [(B) instances in which such standards and measures 
        have been effective; and
          [(C) instances in which such standards and measures 
        have not been effective.
  [(3) In the event that the State board does not accept the 
Committee's recommendations made as required by paragraph (1), 
the State board shall set forth in the State plan its reasons 
for not accepting such recommendations.
  [(e) Technical Assistance.--The Secretary shall provide 
technical assistance to the States with respect to the 
development of systems under subsection (a). In providing such 
assistance, the Secretary shall utilize existing resources in 
other Federal agencies.
  [(f) Report.--The Secretary shall submit a report to the 
appropriate committees of the Congress not later than the 
expiration of the 4-year period beginning on the date of the 
enactment of the Carl D. Perkins Vocational and Applied 
Technology Education Act Amendments of 1990. Such report shall 
include--
          [(1) a detailed description of the status of each 
        State's system of standards and measures developed as 
        required by this section;
          [(2) an assessment of the validity, predictiveness, 
        and reliability of such standards and measures, 
        unbiased to special populations, in the areas of 
        academic achievement, vocational skill competencies, 
        employment outcomes, and postsecondary continuation and 
        attainment; and
          [(3) an evaluation of the comparability of State-
        developed performance standards across States to 
        establish a core of common indicators.

[SEC. 116. STATE ASSESSMENT.

  [(a) In General.--Each State board receiving assistance under 
this Act shall conduct an assessment using measurable objective 
criteria developed by the State board to assess program 
quality. Such criteria shall be developed in consultation with 
representatives of the groups described in section 115(a) and 
shall use information gathered by the National Occupational 
Information Coordinating Committee and, if appropriate, other 
information. Each State board shall widely disseminate such 
criteria. State boards shall develop such criteria no later 
than the beginning of the 1991-1992 school year. Such criteria 
shall include such factors as--
          [(1) integration of academic and vocational 
        education;
          [(2) sequential course of study leading to both 
        academic and occupational competencies;
          [(3) increased student work skill attainment and job 
        placement;
          [(4) increased linkages between secondary and 
        postsecondary educational institutions;
          [(5) instruction and experience, to the extent 
        practicable, in all aspects of the industry the 
        students are preparing to enter;
          [(6) the ability of the eligible recipients to meet 
        the needs of special populations with respect to 
        vocational education;
          [(7) raising the quality of vocational education 
        programs in schools with high concentrations of poor 
        and low-achieving students;
          [(8) the relevance of programs to the workplace and 
        to the occupations for which students are to be 
        trained, and the extent to which such programs reflect 
        a realistic assessment of current and future labor 
        market needs, including needs in areas of emerging 
        technologies;
          [(9) the ability of the vocational curriculum, 
        equipment, and instructional materials to meet the 
        demands of the workforce;
          [(10) basic and higher order current and future 
        workplace competencies which will reflect the hiring 
        needs of employers; and
          [(11) other factors considered appropriate by the 
        State board.
  [(b) Deadline for Assessment.--Each State board shall 
complete the assessment required by subsection (a) before the 
expiration of the 6-month period beginning on the date of the 
enactment of the Carl D. Perkins Vocational and Applied 
Technology Education Act Amendments of 1990.

[SEC. 117. PROGRAM EVALUATION AND IMPROVEMENT.

  [(a) Annual Evaluation.--Each recipient of financial 
assistance under part C of title II shall annually evaluate the 
effectiveness of the program conducted with assistance under 
this Act based on the standards and measures (or modifications 
thereto) developed as required by section 115. As part of each 
such evaluation, each such recipient shall--
          [(1) review programs, with the full and informed 
        participation of representatives of individuals who are 
        members of special populations, to--
                  [(A) identify and adopt strategies to 
                overcome any barriers which are resulting in 
                lower rates of access to vocational education 
                programs or success in such programs for 
                individuals who are members of special 
                populations; and
                  [(B) evaluate the progress of individuals who 
                are members of special populations in 
                vocational education programs assisted under 
                this Act; and
          [(2) evaluate the progress of vocational education 
        programs assisted under this Act in providing 
        vocational education students with strong experience in 
        and understanding of all aspects of the industry the 
        students are preparing to enter.
  [(b) Local Program Improvement Plan.--Beginning not less than 
1 year after the implementation of the provisions of section 
115, if any recipient described in subsection (a) determines 
that the recipient is not making substantial progress in 
meeting the standards and measures developed as required by 
section 115, such recipient shall develop a plan, in 
consultation with teachers, parents, and students concerned, 
for program improvement for the succeeding school year. Such 
plan shall describe how the recipient will identify and modify 
programs funded under part C of title II, including--
          [(1) a description of vocational education and career 
        development strategies designed to achieve progress in 
        improving the effectiveness of the program conducted 
        with assistance under this Act; and
          [(2) if necessary, a description of strategies 
        designed to improve supplementary services provided to 
        individuals who are members of special populations.
  [(c) State and Local Joint Plan.--If, after 1 year of 
implementation of the plan described in subsection (b), 
sufficient progress in meeting the standards and measures 
developed as required by section 115 has not been made, the 
State shall work jointly with the recipient and teachers, 
parents, and students concerned to develop a plan for program 
improvement. Each such plan shall contain--
          [(1) a description of the technical assistance and 
        program activities the State will provide to enhance 
        the performance of the eligible recipient;
          [(2) a reasonable timetable to improve the school 
        performance under the plan;
          [(3) a description of vocational education strategies 
        designed to improve the performance of the program as 
        measured by the evaluation; and
          [(4) if necessary, a description of strategies 
        designed to improve supplementary services provided to 
        individuals who are members of special populations.
  [(d) Further Action.--The State shall, in conjunction with 
the eligible recipient, annually review and revise the joint 
plan developed under subsection (c) in order to improve 
performance and will continue to do so each consecutive year 
until the recipient sustains, for more than 1 year, fulfillment 
of the State and local standards and measures developed under 
section 115.

[SEC. 118. CRITERIA FOR SERVICES AND ACTIVITIES FOR INDIVIDUALS WHO ARE 
                    MEMBERS OF SPECIAL POPULATIONS.

  [(a) Assurances of Equal Access for Members of Special 
Populations.--The State board, in its State plan, shall provide 
assurances that--
          [(1) individuals who are members of special 
        populations will be provided with equal access to 
        recruitment, enrollment, and placement activities;
          [(2) individuals who are members of special 
        populations will be provided with equal access to the 
        full range of vocational education programs available 
        to individuals who are not members of special 
        populations, including occupationally specific courses 
        of study, cooperative education, apprenticeship 
        programs, and, to the extent practicable, comprehensive 
        career guidance and counseling services, and shall not 
        be discriminated against on the basis of their status 
        as members of special populations;
          [(3)(A) vocational education programs and activities 
        for individuals with handicaps will be provided in the 
        least restrictive environment in accordance with 
        section 612(5)(B) of the Individuals with Disabilities 
        Education Act and will, whenever appropriate, be 
        included as a component of the individualized education 
        program developed under section 614(a)(5) of such Act;
          [(B) students with handicaps who have individualized 
        education programs developed under section 614(a)(5) of 
        the Individuals with Disabilities Education Act shall, 
        with respect to vocational education programs, be 
        afforded the rights and protections guaranteed such 
        students under sections 612, 614, and 615 of such Act;
          [(C) students with handicaps who do not have 
        individualized education programs developed under 
        section 614(a)(5) of the Individuals with Disabilities 
        Education Act or who are not eligible to have such a 
        program shall, with respect to vocational education 
        programs, be afforded the rights and protections 
        guaranteed such students under section 504 of the 
        Rehabilitation Act of 1973 and, for the purpose of this 
        Act, such rights and protections shall include making 
        vocational education programs readily accessible to 
        eligible individuals with disabilities through the 
        provision of services described in subsection (c)(3);
          [(D) vocational education planning for individuals 
        with handicaps will be coordinated between appropriate 
        representatives of vocational education, special 
        education, and State vocational rehabilitation 
        agencies; and
          [(E) the provision of vocational education to each 
        student with handicaps will be monitored to determine 
        if such education is consistent with the individualized 
        education program developed for such student under 
        section 614(a)(5) of the Individuals with Disabilities 
        Education Act, in any case in which such a program 
        exists;
          [(4) the provision of vocational education will be 
        monitored to ensure that disadvantaged students and 
        students of limited English proficiency have access to 
        such education in the most integrated setting possible; 
        and
          [(5)(A) the requirements of this Act relating to 
        individuals who are members of special populations--
                  [(i) will be carried out under the general 
                supervision of individuals in the appropriate 
                State educational agency or State board who are 
                responsible for students who are members of 
                special populations; and
                  [(ii) will meet education standards of the 
                State educational agency or State board; and
          [(B) with respect to students with handicaps, the 
        supervision carried out under subparagraph (A) shall be 
        carried out consistent with and in conjunction with 
        supervision by the State educational agency or State 
        board carried out under section 612(6) of the 
        Individuals with Disabilities Education Act.
  [(b) Provision of Information.--(1) Each local educational 
agency shall provide to students who are members of special 
populations and parents of such students at least 1 year before 
the students enter or are of an appropriate age for the grade 
level in which vocational education programs are first 
generally available in the State, but in no event later than 
the beginning of the ninth grade, information concerning--
          [(A) the opportunities available in vocational 
        education;
          [(B) the requirements for eligibility for enrollment 
        in such vocational education programs;
          [(C) specific courses that are available;
          [(D) special services that are available;
          [(E) employment opportunities; and
          [(F) placement.
  [(2) Each eligible institution that receives assistance under 
title II shall provide the information described in paragraph 
(1) to each individual who requests information concerning or 
seeks admission to vocational education programs offered by the 
institution, and, when appropriate, assist in the preparation 
of applications relating to such admission.
  [(3) The information provided under this subsection shall, to 
the extent practicable, be in a language and form that the 
parents and students understand.
  [(c) Assurances.--Each eligible recipient that receives 
assistance under title II shall provide assurances that such 
eligible recipient shall--
          [(1) assist students who are members of special 
        populations to enter vocational education programs, 
        and, with respect to students with handicaps, assist in 
        fulfilling the transitional service requirements of 
        section 626 of the Individuals with Disabilities 
        Education Act;
          [(2) assess the special needs of students 
        participating in programs receiving assistance under 
        title II with respect to their successful completion of 
        the vocational education program in the most integrated 
        setting possible;
          [(3) provide supplementary services to students who 
        are members of special populations, including, with 
        respect to individuals with handicaps--
                  [(A) curriculum modification;
                  [(B) equipment modification;
                  [(C) classroom modification;
                  [(D) supportive personnel; and
                  [(E) instructional aids and devices;
          [(4) provide guidance, counseling, and career 
        development activities conducted by professionally 
        trained counselors and teachers who are associated with 
        the provision of such special services; and
          [(5) provide counseling and instructional services 
        designed to facilitate the transition from school to 
        post-school employment and career opportunities.
  [(d) Participatory Planning.--The State board shall--
          [(1) establish effective procedures, including an 
        expedited appeals procedure, by which parents, 
        students, teachers, and area residents concerned will 
        be able to directly participate in State and local 
        decisions that influence the character of programs 
        under this Act affecting their interests; and
          [(2) provide technical assistance and design such 
        procedures to ensure that such individuals are given 
        access to the information needed to use such 
        procedures.

         [TITLE II--BASIC STATE GRANTS FOR VOCATIONAL EDUCATION

                        [PART A--STATE PROGRAMS

[SEC. 201. STATE PROGRAMS AND STATE LEADERSHIP.

  [(a) General Authority.--From amounts reserved under section 
102(a)(3), each State shall conduct State programs and State 
leadership activities.
  [(b) Required Uses of Funds.--The programs and activities 
described in subsection (a) shall include--
          [(1) professional development activities for 
        vocational teachers and academic teachers working with 
        vocational education students, including corrections 
        educators and counselors, and educators and counselors 
        in community-based organizations, including inservice 
        and preservice training of teachers in state-of-the-art 
        programs and techniques, including integration of 
        vocational and academic curricula, with particular 
        emphasis on inservice and preservice training of 
        minority teachers;
          [(2) development, dissemination, and field testing of 
        curricula, especially--
                  [(A) curricula that integrate vocational and 
                academic methodologies; and
                  [(B) curricula that provide a coherent 
                sequence of courses through which academic and 
                occupational skills may be measured; and
          [(3) assessment of programs conducted with assistance 
        under this Act, including the development of--
                  [(A) performance standards and measures for 
                such programs; and
                  [(B) program improvement and accountability 
                with respect to such programs.
  [(c) Authorized Activities.--The programs and activities 
described in subsection (a) may include--
          [(1) the promotion of partnerships among business, 
        education (including educational agencies), industry, 
        labor, community-based organizations, or governmental 
        agencies;
          [(2) the support for tech-prep education as described 
        in section 344;
          [(3) the support of vocational student organizations, 
        especially with respect to efforts to increase minority 
        participation in such organizations;
          [(4) leadership and instructional programs in 
        technology education; and
          [(5) data collection.

               [PART B--OTHER STATE-ADMINISTERED PROGRAMS

 [Subpart 1--Programs to Provide Single Parents, Displaced Homemakers, 
  and Single Pregnant Women With Marketable Skills and to Promote the 
                        Elimination of Sex Bias

[SEC. 221. PROGRAMS FOR SINGLE PARENTS, DISPLACED HOMEMAKERS, AND 
                    SINGLE PREGNANT WOMEN.

  [(a) General Authority.--Each State shall use the amount 
reserved under section 102(a)(2)(A) only to--
          [(1) provide, subsidize, reimburse, or pay for 
        preparatory services, including instruction in basic 
        academic and occupational skills, necessary educational 
        materials, and career guidance and counseling services, 
        in preparation for vocational education and training 
        that will furnish single parents, displaced homemakers, 
        and single pregnant women with marketable skills;
          [(2) make grants to eligible recipients for expanding 
        preparatory services and vocational education services 
        when the expansion directly increases the eligible 
        recipients' capacity for providing single parents, 
        displaced homemakers, and single pregnant women with 
        marketable skills;
          [(3) make grants to community-based organizations for 
        the provision of preparatory and vocational education 
        services to single parents, displaced homemakers, and 
        single pregnant women if the State determines that the 
        community-based organization has demonstrated 
        effectiveness in providing comparable or related 
        services to single parents, displaced homemakers, and 
        single pregnant women, taking into account the 
        demonstrated performance of such an organization in 
        terms of cost, the quality of training, and the 
        characteristics of the participants;
          [(4) make preparatory services and vocational 
        education and training more accessible to single 
        parents, displaced homemakers, and single pregnant 
        women by assisting such individuals with dependent 
        care, transportation services, or special services and 
        supplies, books, and materials, or by organizing and 
        scheduling the programs so that such programs are more 
        accessible; or
          [(5) provide information to single parents, displaced 
        homemakers, and single pregnant women to inform such 
        individuals of vocational education programs, related 
        support services, and career counseling.
  [(b) Settings.--The programs and services described in 
subsection (a) may be provided in postsecondary or secondary 
school settings, including area vocational education schools, 
that serve single parents, displaced homemakers, and single 
pregnant women.

[SEC. 222. SEX EQUITY PROGRAMS.

  [(a) General Authority.--Except as provided in subsection 
(b), each State shall use the amount reserved under section 
102(a)(2)(B) only for--
          [(1) programs, services, comprehensive career 
        guidance and counseling, and activities to eliminate 
        sex bias and stereotyping in secondary and 
        postsecondary vocational education;
          [(2) preparatory services and vocational education 
        programs, services, and activities for girls and women, 
        aged 14 through 25, designed to enable the participants 
        to support themselves and their families; and
          [(3) support services for individuals participating 
        in vocational education programs, services, and 
        activities described in paragraphs (1) and (2), 
        including dependent-care services and transportation.
  [(b) Waiver of Age Limit.--The administrator appointed under 
section 111(b)(1) may waive the requirement with respect to age 
limitations contained in subsection (a)(2) whenever the 
administrator determines that the waiver is essential to meet 
the objectives of this section.

[SEC. 223. COMPETITIVE AWARD OF AMOUNTS; EVALUATION OF PROGRAMS.

  [The administrator appointed under section 111(b)(1)--
          [(1) shall, on a competitive basis, allocate and 
        distribute to eligible recipients or community-based 
        organizations the amounts reserved under section 
        102(a)(2) for carrying out this subpart, ensuring that 
        each grant made under this subpart is for a program 
        that is of sufficient size, scope, and quality to be 
        effective; and
          [(2) shall develop procedures for the collection from 
        eligible recipients, including community-based 
        organizations, that receive funds under this subpart of 
        data appropriate to the individuals served in order to 
        permit evaluation of the effectiveness of such programs 
        as required by section 111(b)(1)(L).

                   [Subpart 2--Corrections Education

[SEC. 225. PROGRAMS FOR CRIMINAL OFFENDERS.

  [(a) Designation of State Corrections Educational Agency.--
(1) Each State board shall designate 1 or more State 
corrections agencies as State corrections educational agencies 
to administer vocational education programs assisted under this 
Act for juvenile and adult criminal offenders in correctional 
institutions in the State, including correctional institutions 
operated by local authorities.
  [(2) Any corrections agency that desires to be designated 
under paragraph (1) shall submit to the State board a plan for 
the use of funds provided to such corrections agency from the 
amounts reserved by the State under section 102(a)(5).
  [(b) Duties of State Corrections Educational Agency.--In 
administering programs receiving funds under this section, each 
State corrections educational agency designated under 
subsection (a) shall, in carrying out a vocational education 
program for criminal offenders--
          [(1) give special consideration to--
                  [(A) providing services to offenders who are 
                completing their sentences and preparing for 
                release; and
                  [(B) providing grants for the establishment 
                of vocational education programs in 
                correctional institutions that do not have such 
                programs;
          [(2) provide vocational education programs for women 
        who are incarcerated;
          [(3) improve equipment; and
          [(4) in cooperation with eligible recipients, 
        administer and coordinate vocational education services 
        to offenders before and after their release.

   [PART C--SECONDARY, POSTSECONDARY, AND ADULT VOCATIONAL EDUCATION 
                         PROGRAMS deg.


                  [Subpart 1--Within-State Allocation

[SEC. 231. DISTRIBUTION OF FUNDS TO SECONDARY SCHOOL PROGRAMS.

  [(a) General Rule.--Except as otherwise provided in this 
section and section 233, each State shall distribute funds 
available in any fiscal year for secondary school vocational 
education programs to local educational agencies within the 
State as follows:
          [(1) From 70 percent of such funds, each local 
        educational agency shall be allocated an amount that 
        bears the same relationship to such 70 percent as the 
        amount such local educational agency was allocated 
        under section 1124 or such section's predecessor 
        authority of the Elementary and Secondary Education Act 
        of 1965 in the preceding fiscal year bears to the total 
        amount received under such section by local educational 
        agencies in the State in such year.
          [(2) From 20 percent of such funds, each local 
        educational agency shall be allocated an amount that 
        bears the same relationship to such 20 percent as the 
        number of students with handicaps who have 
        individualized education programs under section 
        614(a)(5) of the Individuals with Disabilities 
        Education Act served by such local educational agency 
        in the preceding fiscal year bears to the total number 
        of such students served by local educational agencies 
        in the State in such year.
          [(3) From 10 percent of such funds, each local 
        educational agency shall be allocated an amount that 
        bears the same relationship to such 10 percent as the 
        number of students enrolled in schools and adults 
        enrolled in training programs under the jurisdiction of 
        such local educational agency in the preceding fiscal 
        year bears to the number of students enrolled in 
        schools and adults enrolled in training programs under 
        the jurisdiction of all local educational agencies in 
        the State in such year.
  [(b) Minimum Grant Amount.--(1) Except as provided in 
paragraph (2), no local educational agency shall be eligible 
for a grant under this part unless the amount allocated to such 
agency under subsection (a) is not less than $15,000. A local 
educational agency may enter into a consortium with other local 
educational agencies for purposes of meeting the minimum grant 
requirement of this paragraph.
  [(2) The State may waive the application of paragraph (1) in 
any case in which the local educational agency--
          [(A) is located in a rural, sparsely-populated area; 
        and
          [(B) demonstrates that the agency is unable to enter 
        into a consortium for purposes of providing services 
        under this part.
  [(3) Any amounts which are not allocated by reason of 
paragraph (1) or paragraph (2) shall be redistributed to local 
educational agencies that meet the requirements of paragraph 
(1) or paragraph (2) in accordance with the provisions of this 
section.
  [(c) Limited Jurisdiction Agencies.--(1) In applying the 
provisions of subsection (a), no State board receiving 
assistance under this Act shall allocate funds to a local 
educational agency that serves only elementary schools, but 
shall distribute such funds to the local or regional 
educational agency which provides secondary school services to 
secondary school students in the same attendance area.
  [(2) The amount to be allocated under paragraph (1) to a 
local educational agency that has jurisdiction only over 
secondary schools shall be determined based on the number of 
students that entered such secondary schools in the previous 
year from the elementary schools involved.
  [(d) Allocations to Area Vocational Education Schools and 
Intermediate Educational Agencies.--(1) The State shall 
distribute funds available for secondary school vocational 
education programs to the appropriate area vocational education 
school or intermediate educational agency in any case in 
which--
          [(A) the area vocational education school or 
        intermediate educational agency and the local 
        educational agency concerned--
                  [(i) have formed or will form a consortium 
                for the purpose of receiving funds under this 
                section; or
                  [(ii) have entered into or will enter into a 
                cooperative arrangement for such purpose; and
          [(B)(i) the area vocational education school or 
        intermediate educational agency serves an approximately 
        equal or greater proportion of students with handicaps 
        and students who are economically disadvantaged than 
        the proportion of such students attending the secondary 
        schools under the jurisdiction of all of the local 
        educational agencies sending students to the area 
        vocational education school or the intermediate 
        educational agency; or
          [(ii) the area vocational education school, 
        intermediate educational agency, or local educational 
        agency demonstrates that it is unable to meet the 
        criterion described in clause (i) due to the lack of 
        interest by students described in clause (i) in 
        attending vocational education programs in that area 
        school or intermediate educational agency.
  [(2) If an area vocational education school or intermediate 
educational agency meets the requirements of paragraph (1), 
then--
          [(A) the amount that would otherwise be distributed 
        to the local educational agency shall be allocated to 
        the area vocational education school, the intermediate 
        educational agency, and the local educational agency 
        based on each school's or entity's relative share of 
        students described in paragraph (1)(B)(i) who are 
        attending vocational education programs that meet the 
        requirements of section 235 (based, if practicable, on 
        the average enrollment for the prior 3 years); or
          [(B) such amount may be allocated on the basis of an 
        agreement between the local educational agency and the 
        area vocational education school or intermediate 
        educational agency.
  [(3)(A) For the purposes of this subsection, the State may 
determine the number of economically disadvantaged students 
attending vocational education programs on the basis of 
eligibility for any of the following:
          [(i) Free or reduced-price meals under the National 
        School Lunch Act.
          [(ii) The program for aid to dependent children under 
        part A of title IV of the Social Security Act.
          [(iii) Benefits under the Food Stamp Act of 1977.
          [(iv) Services under title I of the Elementary and 
        Secondary Education Act of 1965.
          [(v) Other indices of economic status including 
        estimates of such indices, if the State demonstrates to 
        the satisfaction of the Secretary that such indices are 
        more representative of such number.
  [(B) If a State elects to use more than 1 factor described in 
subparagraph (A) for purposes of making the determination 
described in such subparagraph, the State shall ensure that the 
data used is not duplicative.
  [(4) The State board shall establish an appeals procedure for 
resolution of any dispute arising between a local educational 
agency and an area vocational education school or an 
intermediate educational agency with respect to the allocation 
procedures described in this section, including the decision of 
a local educational agency to leave a consortium.
  [(5) Notwithstanding the provisions of paragraphs (1), (2), 
(3), and (4) any local educational agency receiving an 
allocation which is not sufficient to conduct a program which 
meets the requirements of section 235(c) is encouraged to--
          [(A) form a consortium or enter into a cooperative 
        agreement with an area vocational education school or 
        intermediate educational agency offering programs that 
        meet the requirements of section 235(c) and that are 
        accessible to economically disadvantaged students and 
        students with handicaps served by such local 
        educational agency; and
          [(B) transfer such allocation to the area vocational 
        education school or intermediate educational agency.

[SEC. 232. DISTRIBUTION OF FUNDS TO POSTSECONDARY AND ADULT PROGRAMS.

  [(a) General Rule.--(1) Except as provided in subsection (b) 
and section 233, each State shall distribute funds available in 
any fiscal year for postsecondary and adult vocational 
education programs to eligible institutions or consortia 
thereof within the State. Each such eligible institution or 
consortium shall receive an amount that bears the same 
relationship to the amount of funds available under such 
section as the number of Pell Grant recipients and recipients 
of assistance from the Bureau of Indian Affairs enrolled in 
programs meeting the requirements of section 235 offered by 
such institution or consortium in the preceding fiscal year 
bears to the number of such recipients enrolled in such 
programs within the State in such year.
  [(2) In order for a consortium of eligible institutions 
described in paragraph (1) to receive assistance pursuant to 
such paragraph such consortium shall operate joint projects 
that--
          [(A) provide services to all postsecondary 
        institutions participating in the consortium; and
          [(B) are of sufficient size, scope and quality as to 
        be effective.
  [(b) Waiver for More Equitable Distribution.--The Secretary 
may waive the application of subsection (a) in the case of any 
State that submits to the Secretary an application for such a 
waiver that--
          [(1) demonstrates that the formula described in 
        subsection (a) does not result in a distribution of 
        funds to the institutions or consortia within the State 
        that have the highest numbers of economically 
        disadvantaged individuals and that an alternative 
        formula would result in such a distribution; and
          [(2) includes a proposal for an alternative formula 
        that may include criteria relating to the number of 
        individuals attending institutions or consortia within 
        the State who--
                  [(A) receive need-based postsecondary 
                financial aid provided from public funds;
                  [(B) are members of families participating in 
                the program for aid to families with dependent 
                children under part A of title IV of the Social 
                Security Act;
                  [(C) are enrolled in postsecondary 
                educational institutions that--
                          [(i) are funded by the State;
                          [(ii) do not charge tuition; and
                          [(iii) serve only economically 
                        disadvantaged students;
                  [(D) are enrolled in programs serving 
                economically disadvantaged adults;
                  [(E) are participants in programs assisted 
                under the Job Training Partnership Act; or
                  [(F) are recipients of Pell Grants.
  [(c) Minimum Grant Amount.--(1) No grant provided to any 
institution or consortium under this section shall be for an 
amount that is less than $50,000.
  [(2) Any amounts which are not allocated by reason of 
paragraph (1) shall be redistributed to eligible institutions 
or consortia in accordance with the provisions of this section.
  [(d) Definition.--For the purposes of this section--
          [(1) the term ``eligible institution'' means an 
        institution of higher education, a local educational 
        agency serving adults, or an area vocational education 
        school serving adults that offers or will offer a 
        program that meets the requirements of section 235 and 
        seeks to receive assistance under this part;
          [(2) the term ``institution of higher education'', 
        notwithstanding section 427(b)(2) of the Higher 
        Education Amendments of 1992, has the meaning given 
        that term in section 435(b) of the Higher Education Act 
        of 1965 as such section was in effect on July 22, 1992; 
        and
          [(3) the term ``Pell Grant recipient'' means a 
        recipient of financial aid under subpart 1 of part A of 
        title IV of the Higher Education Act of 1965.

[SEC. 233. SPECIAL RULE FOR MINIMAL ALLOCATION.

  [(a) General Authority.--In any fiscal year in which a 
minimal amount is made available by a State for distribution 
under section 231 or section 232 such State may, 
notwithstanding the provisions of section 231 or section 232, 
as appropriate, in order to result in a more equitable 
distribution of funds for programs serving the highest numbers 
of economically disadvantaged individuals, distribute such 
minimal amount--
          [(1) on a competitive basis; or
          [(2) through any alternative method determined by the 
        State.
  [(b) Minimal Amount.--For purposes of this section, the term 
``minimal amount'' means not more than 15 percent of the total 
amount made available for distribution under this part.

[SEC. 234. REALLOCATION.

  [(a) In General.--In any academic year that a local 
educational agency or eligible institution does not expend all 
of the amounts it is allocated for such year under section 231 
or section 232, such local educational agency or eligible 
institution shall return any unexpended amounts to the State to 
be reallocated under section 231 or section 232, as 
appropriate.
  [(b) Reallocation of Amounts Returned Late in an Academic 
Year.--In any academic year in which amounts are returned to 
the State under sections 231 or 232 and the State is unable to 
reallocate such amounts according to such sections in time for 
such amounts to be expended in such academic year, the State 
shall retain such amounts to be distributed in combination with 
amounts provided under this title for the following academic 
year.

                       [Subpart 2--Uses of Funds

[SEC. 235. USES OF FUNDS.

  [(a) General Authority.--Each eligible recipient that 
receives a grant under this part shall use funds provided under 
such grant to improve vocational education programs, with the 
full participation of individuals who are members of special 
populations, at a limited number of sites or with respect to a 
limited number of program areas.
  [(b) Priority.--Each eligible recipient that receives a grant 
under this part shall give priority for assistance under this 
part to sites or programs that serve the highest concentrations 
of individuals who are members of special populations.
  [(c) Requirements for Uses of Funds.--(1) Funds made 
available under a grant under this part shall be used to 
provide vocational education in programs that--
          [(A) are of such size, scope, and quality as to be 
        effective;
          [(B) integrate academic and vocational education in 
        such programs through coherent sequences of courses so 
        that students achieve both academic and occupational 
        competencies; and
          [(C) provide equitable participation in such programs 
        for the special populations consistent with the 
        assurances and requirements in section 118.
  [(2) In carrying out the provisions of paragraph (1), grant 
funds may be used for activities such as--
          [(A) upgrading of curriculum;
          [(B) purchase of equipment, including instructional 
        aids;
          [(C) inservice training of both vocational 
        instructors and academic instructors working with 
        vocational education students for integrating academic 
        and vocational education;
          [(D) guidance and counseling;
          [(E) remedial courses;
          [(F) adaptation of equipment;
          [(G) tech-prep education programs;
          [(H) supplementary services designed to meet the 
        needs of special populations;
          [(I) a special populations coordinator paid in whole 
        or in part from such funds who shall be a qualified 
        counselor or teacher to ensure that individuals who are 
        members of special populations are receiving adequate 
        services and job skill training;
          [(J) apprenticeship programs;
          [(K) programs that are strongly tied to economic 
        development efforts in the State;
          [(L) programs which train adults and students for all 
        aspects of the occupation, in which job openings are 
        projected or available;
          [(M) comprehensive mentor programs in institutions of 
        higher education offering comprehensive programs in 
        teacher preparation, which seek to fully use the skills 
        and work experience of individuals currently or 
        formerly employed in business and industry who are 
        interested in becoming classroom instructors and to 
        meet the need of vocational educators who wish to 
        upgrade their teaching competencies;
          [(N) provision of education and training through 
        arrangements with private vocational training 
        institutions, private postsecondary educational 
        institutions, employers, labor organizations, and joint 
        labor-management apprenticeship programs whenever such 
        institutions, employers, labor organizations, or 
        programs can make a significant contribution to 
        obtaining the objectives of the State plan and can 
        provide substantially equivalent training at a lesser 
        cost, or can provide equipment or services not 
        available in public institutions.
  [(3) Equipment purchases pursuant to sections 231 and 232, 
when not being used to carry out the provisions of this Act, 
may be used for other instructional purposes if--
          [(A) the acquisition of the equipment was reasonable 
        and necessary for the purpose of conducting a properly 
        designed project or activity under this title;
          [(B) is used after regular school hours or on 
        weekends; and
          [(C) such other use is--
                  [(i) incidental to the use of that equipment 
                under this title;
                  [(ii) does not interfere with the use of that 
                equipment under this title; and
                  [(iii) does not add to the cost of using that 
                equipment under this title.
  [(4) Each eligible recipient receiving funds under this part 
shall use no more than 5 percent of such funds for 
administrative costs.

                     [Subpart 3--Local Application

[SEC. 240. LOCAL APPLICATION.

  [Any eligible recipient desiring financial assistance under 
this part shall, according to requirements established by the 
State board, submit to the State board an application, covering 
the same period as the State plan, for the use of such 
assistance. The State board shall determine requirements for 
local applications, except that each such application shall--
          [(1) contain a description of the vocational 
        education programs to be funded, including--
                  [(A) the extent to which the program 
                incorporates each of the elements described in 
                section 235;
                  [(B) how the eligible recipient will use the 
                funds available under this part and from other 
                resources to improve the program with regard to 
                each use of funds described in section 235;
          [(2) contain a report on the number of individuals in 
        each of the special populations;
          [(3) contain a description of how the needs of 
        individuals who are members of special populations will 
        be assessed and a description of the planned use of 
        funds to meet such needs;
          [(4) describe how access to programs of good quality 
        will be provided to students who are economically 
        disadvantaged (including foster children), students 
        with handicaps, and students of limited English 
        proficiency through affirmative outreach and 
        recruitment efforts;
          [(5) provide assurances that the programs funded 
        under this part shall be carried out according to the 
        criteria for programs for each special population;
          [(6) describe the program evaluation standards the 
        applicant will use to measure its progress;
          [(7) describe methods to be used to coordinate 
        vocational education services with relevant programs 
        conducted under the Job Training Partnership Act, 
        including cooperative arrangements established with 
        private industry councils established under section 
        102(a) of such Act, in order to avoid duplication and 
        to expand the range of and accessibility to vocational 
        education services;
          [(8) describe methods used to develop vocational 
        educational programs in consultation with parents and 
        students of special populations;
          [(9) provide a description of coordination with 
        community-based organizations;
          [(10) consider the demonstrated occupational needs of 
        the area in assisting programs funded by this Act;
          [(11) provide a description of how the eligible 
        recipient will provide a vocational education program 
        that--
                  [(A) integrates academic and occupational 
                disciplines so that students participating in 
                the program are able to achieve both academic 
                and occupational competence; and
                  [(B) offers coherent sequences of courses 
                leading to a job skill;
          [(12) provide assurances that the eligible recipient 
        will provide a vocational education program that--
                  [(A) encourages students through counseling 
                to pursue such coherent sequences of courses;
                  [(B) assists students who are economically 
                disadvantaged, students of limited English 
                proficiency, and students with handicaps to 
                succeed through supportive services such as 
                counseling, English-language instruction, child 
                care, and special aids;
                  [(C) is of such size, scope, and quality as 
                to bring about improvement in the quality of 
                education offered by the school; and
                  [(D) seeks to cooperate with the sex equity 
                program carried out under section 222;
          [(13) provide an assurance that the eligible 
        recipient will provide sufficient information to the 
        State to enable the State to comply with the provisions 
        of section 231(d); and
          [(14) describe how the eligible recipient will 
        monitor the provision of vocational education to 
        individuals who are members of special populations.

                      [TITLE III--SPECIAL PROGRAMS

[Part A--State Assistance for Vocational Education Support Programs by 
                     Community-Based Organizations

                             [Applications

  [Sec. 301. (a) Each community-based organization which 
desires to receive assistance under this part shall prepare 
jointly with the appropriate eligible recipient and submit an 
application to the State board at such time, in such manner, 
and containing or accompanied by such information as the State 
board may require. Each such application shall--
          [(1) contain an agreement between the community-based 
        organization and the eligible recipients in the area to 
        be served, which includes the designation of fiscal 
        agents established for the program;
          [(2) provide a description of the uses for which 
        assistance is sought pursuant to section 302(b) 
        together with evaluation criteria to be applied to the 
        program;
          [(3) provide assurances that the community-based 
        organization will give special consideration to the 
        needs of severely economically and educationally 
        disadvantaged youth ages sixteen through twenty-one, 
        inclusive;
          [(4) provide assurances that business concerns will 
        be involved, as appropriate, in services and activities 
        for which assistance is sought;
          [(5) describe the collaborative efforts with the 
        eligible recipients and the manner in which the 
        services and activities for which assistance is sought 
        will serve to enhance the enrollment of severely 
        economically and educationally disadvantaged youth into 
        the vocational education programs; and
          [(6) provide assurances that the programs conducted 
        by the community-based organization will conform to the 
        applicable standards of performance and measures of 
        effectiveness required of vocational education programs 
        in the State.

                             [Uses of Funds

  [Sec. 302. (a) From the portion of the allotment of each 
State under section 101 available for this part, each State 
shall provide financial assistance to joint programs of 
eligible recipients and community-based organizations within 
the State for the conduct of special vocational education 
services and activities described in subsection (b).
  [(b) Funds provided under this section may be used in 
accordance with State plans for--
          [(1) outreach programs to facilitate the entrance of 
        youth into a program of transitional services and 
        subsequent entrance into vocational education, 
        employment or other education and training;
          [(2) transitional services such as attitudinal and 
        motivational prevocational training programs;
          [(3) prevocational educational preparation and basic 
        skills development conducted in cooperation with 
        business concerns;
          [(4) special prevocational preparations programs 
        targeted to inner-city youth, non-English speaking 
        youth, Appalachian youth, and the youth of other urban 
        and rural areas having a high density of poverty who 
        need special prevocational education programs;
          [(5) career intern programs;
          [(6) model programs for school dropouts;
          [(7) assessment of students needs in relation to 
        vocational education and jobs; and
          [(8) guidance and counseling to assist students with 
        occupational choices and with the selection of a 
        vocational education program.

               [Part B--Consumer and Homemaking Education

               [consumer and homemaking education grants

  [Sec. 311. From the portion of the allotment of each State 
under section 101 available for this part, the Secretary is 
authorized to make grants to States to assist them in 
conducting consumer and homemaking education programs. Such 
programs may include (1) instructional programs, services, and 
activities that prepare youth and adults for the occupation of 
homemaking, and (2) instruction in the areas of food and 
nutrition, individual and family health, consumer education, 
family living and parenthood education, child development and 
guidance, housing, home management (including resource 
management), and clothing and textiles.

      [use of funds from consumer and homemaking education grants

  [Sec. 312. (a) Grants to any State under this part shall be 
used, in accordance with State plans approved under section 
114--
          [(1) to conduct programs for residents of 
        economically depressed areas;
          [(2) to encourage participation of traditionally 
        underserved populations;
          [(3) to encourage, in cooperation with the individual 
        appointed under section 111(b)(1), the elimination of 
        sex bias and sex stereotyping;
          [(4) to improve, expand, and update programs with an 
        emphasis on those which specifically address needs 
        described under clauses (1), (2), and (3); and
          [(5) to address priorities and emerging concerns at 
        the local, State, and national levels.
  [(b) Grants for the purposes set forth in subsection (a) may 
be used for--
          [(1) program development and improvement of 
        instruction and curricula relating to managing 
        individual and family resources, making consumer 
        choices, balancing work and family, improving responses 
        to individual and family crises (including family 
        violence and child abuse), strengthening parenting 
        skills (especially among teenage parents), preventing 
        teenage pregancy, assisting aged and individuals with 
        handicaps, and members of at-risk populations 
        (including the homeless), improving individual, child, 
        and family nutrition and wellness, conserving limited 
        resources, understanding the impact of new technology 
        on life and work, applying consumer and homemaking 
        education skills to jobs and careers, and other needs 
        as determined by the State; and
          [(2) support services and activities designed to 
        ensure the quality and effectiveness of programs, 
        including demonstration of innovative and exemplary 
        projects, community outreach to underserved 
        populations, application of academic skills (such as 
        reading, writing, mathematics, and science) through 
        consumer and homemaking education programs, curriculum 
        development, research, program evaluation, development 
        of instructional materials, teacher education, 
        upgrading of equipment, teacher supervision, and State 
        administration and leadership, including activities of 
        the student organization.
  [(c) Not less than one-third of the Federal funds made 
available to any State under this section shall be expended in 
economically depressed areas or areas with high rates of 
unemployment for programs designed to assist consumers and to 
help improve home environments and the quality of family life.

               [Information Dissemination and Leadership

  [Sec. 313. (a) The State board shall ensure that the 
experience and information gained through carrying out programs 
assisted under this part is shared with administrators for the 
purpose of program planning. Funds available under this part 
shall be used to assist in providing State leadership and full 
time State administrators qualified by experience and 
educational preparation in home economics education.
  [(b) Not more than 6 percent of the funds available under 
this part may be used for State administration of projects, 
services, and activities under this part.

     [Part C--Comprehensive Career Guidance and Counseling Programs

               [Grants for Career Guidance and Counseling

  [Sec. 321. From the portion of the allotment of each State 
under section 101 available for this part, the Secretary is 
authorized to make grants to States to assist them in 
conducting career guidance and counseling programs authorized 
by this part.

        [Use of Funds From Career Guidance and Counseling Grants

  [Sec. 322. (a) Grants to any State under this part shall be 
used, in accordance with State plans (and amendments thereto), 
for programs (organized and administered by certified 
counselors) designed to improve, expand, and extend career 
guidance and counseling programs to meet the career 
development, vocational education, and employment needs of 
vocational education students and potential students. Such 
programs shall be designed to assist individuals--
          [(1) to acquire self-assessment, career planning, 
        career decisionmaking, and employability skills;
          [(2) to make the transition from education and 
        training to work;
          [(3) to maintain marketability of current job skills 
        in established occupations;
          [(4) to develop new skills to move away from 
        declining occupational fields and enter new and 
        emerging fields in high-technology areas and fields 
        experiencing skill shortages;
          [(5) to develop midcareer job search skills and to 
        clarify career goals; and
          [(6) to obtain and use information on financial 
        assistance for postsecondary and vocational education, 
        and job training.
  [(b) Programs of career guidance and counseling under this 
part shall encourage the elimination of sex, age, handicapping 
condition, and race bias and stereotyping, provide for 
community outreach, enlist the collaboration of the family, the 
community, business, industry, and labor and be accessible to 
all segments of the population, including women, minorities, 
the handicapped, and the economically disadvantaged. The 
programs authorized by this part shall consist of--
          [(1) instructional activities and other services at 
        all educational levels to help students with the skills 
        described in clauses (1) through (6) of subsection (a); 
        and
          [(2) services and activities designed to ensure the 
        quality and effectiveness of career guidance and 
        counseling programs and projects assisted under this 
        part, such as counselor education (including education 
        of counselors working with individuals with limited 
        English proficiency), training of support personnel, 
        curriculum development, research and demonstration 
        projects, experimental programs, instructional 
        materials development, equipment acquisition, 
        development of career information delivery systems, and 
        State and local leadership and supervision; and
          [(3) projects which provide opportunities for 
        counselors to obtain firsthand experience in business 
        and industry, and projects which provide opportunities 
        to acquaint students with business, industry, the labor 
        market, and training opportunities (including secondary 
        educational programs that have at least one 
        characteristic of an apprenticeable occupation as 
        recognized by the Department of Labor or the State 
        Apprenticeship Agency in accordance with the Act of 
        August 16, 1937, known as the National Apprenticeship 
        Act, in concert with local business, industry, labor, 
        and other appropriate apprenticeship training entities, 
        designed to prepare participants for an apprenticeable 
        occupation or provide information concerning 
        apprenticeable occupations and their prerequisites).
  [(c) Not less than 20 percent of the sums made available to a 
State under this part shall be used for programs designed to 
eliminate sex, age, and race bias and stereotyping under 
subsection (b) and for activities to ensure that programs under 
this part are accessible to all segments of the population, 
including women, the disadvantaged, the handicapped, 
individuals with limited English proficiency, and minorities.

               [Information Dissemination and Leadership

  [Sec. 323. (a) The State board shall ensure that the 
experience and information gained through programs assisted 
under this part is shared with administrators for the purpose 
of program planning. Funds available under this part shall be 
used to assist in providing State leadership qualified by 
experience and knowledge in guidance and counseling.
  [(b) Not more than 6 percent of the funds available under 
this part may be used for State administration of projects, 
services, and activities under this part.

  (20 U.S.C. 2383)
       [PART D--BUSINESS-LABOR-EDUCATION PARTNERSHIP FOR TRAINING

[SEC. 331. FINDINGS AND PURPOSE.

  [The Congress finds that--
          [(1) there is a need to infuse resources into the 
        schools for the purpose of improving the quality of 
        vocational education; and
          [(2) there is a need to fulfill the needs of business 
        for skilled employees who meet certain minimal 
        standards in key occupational areas.

  (20 U.S.C. 2391)

  [Sec. 332. (a)(1) From amounts authorized under section 
3(d)(1)(D) that are made available for this part, the Secretary 
shall make grants to States to enable States to award grants to 
partnerships among--
          [(A) an area vocational education school, a State 
        agency, a local educational agency, a secondary school 
        funded by the Bureau of Indian Affairs, an institution 
        of higher education, a State corrections educational 
        agency or an adult learning center; and
          [(B) business, industry, labor organizations, or 
        apprenticeship programs;
to carry out business-labor-education partnership training 
programs in accordance with this part.
  [(2) The Secretary shall ensure an equitable geographic 
distribution of grants under this part.
  [(b) Grants to any State under this part shall be used in 
accordance with State plans and shall provide incentives for 
the coordination of programs assisted with funds under this 
part with related efforts under part E and under the Job 
Training Partnership Act. Each such State plan shall contain 
assurances to the Secretary that--
          [(1) funds received under this part will be awarded 
        on a competitive basis solely for vocational education 
        programs, including programs--
                  [(A) to provide apprenticeships and 
                internships in industry;
                  [(B) to provide new equipment;
                  [(C) to provide teacher internships or 
                teacher training;
                  [(D) that bring representatives of business 
                and organized labor into the classroom;
                  [(E) to increase the access to, and quality 
                of, programs for individuals who are members of 
                special populations;
                  [(F) to strengthen coordination between 
                vocational education programs, and the labor 
                and skill needs of business and industry;
                  [(G) to address the economic development 
                needs of the area served by the partnership;
                  [(H) to provide training and career 
                counseling that will enable workers to retain 
                their jobs;
                  [(I) to provide training and career 
                counseling that will enable workers to upgrade 
                their jobs; and
                  [(J) that address the needs of new and 
                emerging industries, particularly industries in 
                high-technology fields.
          [(2) the State will give preference to partnerships 
        that coordinate with local chambers of commerce (or the 
        equivalent), local labor organizations, or local 
        economic development plans;
          [(3) the State will give priority to programs offered 
        by partnerships that provide job training in areas or 
        skills where there are significant labor shortages;
          [(4) the State shall ensure an equitable distribution 
        of assistance under this part between urban and rural 
        areas;
          [(5) except as provided in paragraph (6), not less 
        than 50 percent of the aggregate cost of programs and 
        projects assisted under this part will be provided from 
        non-Federal sources, and not less than 50 percent of 
        such non-Federal share will be provided by businesses 
        or labor organizations participating in the 
        partnership; and
          [(6) in the event that the partnership includes a 
        small business or labor organization, 40 percent of the 
        aggregate cost of the programs and projects assisted 
        under this part will be provided from non-Federal 
        sources and not less than 50 percent of such non-
        Federal share will be provided by participating 
        businesses or labor organizations.
  [(c) Not less than 20 percent of the sums made available to a 
State under this part shall be used for programs designed to 
eliminate sex, age, and race bias and stereotyping under 
subsection (b) and for activities to ensure that programs under 
this part are accessible to all segments of the population, 
including women, the disadvantaged, the handicapped, 
individuals with limited English proficiency, and minorities.
  [(d) The Secretary shall prescribe policies for vocational 
education programs carried out with assistance under this part. 
Such policies shall include examples of allowable expenses for 
business-labor-education partnerships.

  (20 U.S.C. 2392)

                             [use of funds

  [Sec. 333. (a) Funds made available to the States by grants 
under this part may be used solely for the establishment and 
operation of programs and projects described by section 342(b) 
and for--
          [(1) necessary administrative costs of the State 
        board and of eligible recipients associated with the 
        establishment and operation of programs authorized by 
        this part;
          [(2) training and retraining of instructional and 
        guidance personnel;
          [(3) curriculum development and the development or 
        acquisition of instructional and guidance equipment and 
        materials;
          [(4) acquisition and operation of communications and 
        telecommunications equipment and other high-technology 
        equipment for programs authorized by this part; and
          [(5) such other activities authorized by this title 
        as may be essential to the successful establishment and 
        operation of programs and projects authorized by this 
        part, including activities and related services to 
        ensure access of women, minorities, the handicapped, 
        and the economically disadvantaged.
  [(b) In approving programs and projects assisted under this 
part, the State board shall give special consideration to--
          [(1) the level and degree of business and industry 
        participation in the development and operation of the 
        program;
          [(2) the current and projected demand within the 
        State or relevant labor market area for workers with 
        the level and type of skills the program is designed to 
        produce;
          [(3) the overall quality of the proposal, with 
        particular emphasis on the probability of successful 
        completion of the program by prospective trainees and 
        the capability of the eligible recipient (with 
        assistance from participating business or industry) to 
        provide high quality training for skilled workers and 
        technicians in high technology; and
          [(4) the commitment to serve all segments of the 
        population, including women, minorities, the 
        handicapped, and the economically disadvantaged (as 
        demonstrated by special efforts to provide outreach, 
        information, and counseling, and by the provision of 
        remedial instruction and other assistance).
  [(c) Expenditures for administrative costs pursuant to 
subsection (a)(1) may not exceed 10 per centum of the State's 
allotment for this part in the first year and 5 per centum of 
such allotment in each subsequent year.
  [(d)(1) Funds made available pursuant to section 3(b)(5)(B) 
of this Act may be used, in accordance with this part, to 
provide vocational education to individuals in order to assist 
their entry into, or advancement in, high technology 
occupations or to meet the technological needs of other 
industries or businesses.
  [(2) Special consideration shall be given to individuals 
described in paragraph (1) who have attained 55 years of age.

  (20 U.S.C. 2393)

                      [PART E--TECH-PREP EDUCATION

[SEC. 341. SHORT TITLE.

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

[SEC. 342. FINDINGS AND PURPOSE.

  [(a) Findings.--The Congress finds that--
          [(1) rapid technological advances and global economic 
        competition demand increased levels of skilled 
        technical education preparation and readiness on the 
        part of youths entering the workforce;
          [(2) effective strategies reaching beyond the 
        boundaries of traditional schooling are necessary to 
        provide early and sustained intervention by parents, 
        teachers, and educational institutions in the lives of 
        students;
          [(3) a combination of nontraditional school-to-work 
        technical education programs, using state-of-the-art 
        equipment and appropriate technologies, will reduce the 
        dropout rate for high school students in the United 
        States and will produce youths who are mature, 
        responsible, and motivated to build good lives for 
        themselves;
          [(4) the establishment of systematic technical 
        education articulation agreements between secondary 
        schools and postsecondary educational institutions is 
        necessary for providing youths with skills in the 
        liberal and practical arts and in basic academics, 
        including literacy instruction in the English language, 
        and with the intense technical preparation necessary 
        for finding a position in a changing workplace;
          [(5) by the year 2000 an estimated 15,000,000 
        manufacturing jobs will require more advanced technical 
        skills, and an equal number of service jobs will become 
        obsolete;
          [(6) more than 50 percent of jobs that are developing 
        will require skills greater than those provided by 
        existing educational programs;
          [(7) dropout rates in urban schools are 50 percent or 
        higher, and more than 50 percent of all Hispanic youth 
        drop out of high school; and
          [(8) employers in the United States pay an estimated 
        $210,000,000,000 annually for formal and informal 
        training, remediation, and lost productivity as a 
        result of untrained and unprepared youth joining, or 
        attempting to join, the workforce of the United States.
  [(b) Purpose.--It is the purpose of this part--
          [(1) to provide planning and demonstration grants to 
        consortia of local educational agencies and 
        postsecondary educational institutions, for the 
        development and operation of 4-year programs designed 
        to provide a tech-prep education program leading to a 
        2-year associate degree or a 2-year certificate; and
          [(2) to provide, in a systematic manner, strong, 
        comprehensive links between secondary schools and 
        postsecondary educational institutions.

[SEC. 343. PROGRAM AUTHORIZED.

  [(a) Discretionary Amounts.--In any fiscal year in which the 
amount made available under section 3(d)(1)(E) to carry out the 
provisions of this part is equal to or less than $50,000,000, 
the Secretary, in accordance with the provisions of this part 
which are not inconsistent with this paragraph, shall award 
grants for tech-prep education programs to consortia of--
          [(1) local educational agencies, intermediate 
        educational agencies or area vocational education 
        schools serving secondary school students, or secondary 
        schools funded by the Bureau of Indian Affairs; and
          [(2)(A) nonprofit institutions of higher education 
        which offer a 2-year associate degree program, a 2-year 
        certificate program, and which are qualified as 
        institutions of higher education pursuant to section 
        481(a) of the Higher Education Act of 1965, including 
        institutions receiving assistance under the Tribally 
        Controlled Community College Assistance Act of 1978, or 
        a 2-year apprenticeship program that follows secondary 
        instruction, if such nonprofit institutions of higher 
        education are not prohibited from receiving assistance 
        under part B of the Higher Education Act of 1965 
        pursuant to the provisions of section 435(a)(3) of such 
        Act; or
          [(B) proprietary institutions of higher education 
        which offer a 2-year associate degree program and which 
        are qualified as institutions of higher education 
        pursuant to section 481(a) of the Higher Education Act 
        of 1965 if such proprietary institutions of higher 
        education are not subject to a default management plan 
        required by the Secretary.
  [(b) State Grants.--(1) In any fiscal year for which the 
amount made available under section 3(d)(1)(E) to carry out the 
provisions of this part exceeds $50,000,000, the Secretary 
shall allot such amount to the States in accordance with the 
provisions of section 101(a)(2).
  [(2) From amounts made available to each State under 
paragraph (1), the State board, in accordance with the 
provisions of this part which are not inconsistent with this 
paragraph, shall award grants on a competitive basis or on the 
basis of a formula determined by the State board, for tech-prep 
education programs to consortia described in subsection (a)(1).

[SEC. 344. TECH-PREP EDUCATION PROGRAMS.

  [(a) General Authority.--Each grant recipient shall use 
amounts provided under the grant to develop and operate a 4-
year tech-prep education program.
  [(b) Contents of Program.--Any such program shall--
          [(1) be carried out under an articulation agreement 
        between the participants in the consortium;
          [(2) consist of the 2 years or 4 years of secondary 
        school preceding graduation and 2 years of higher 
        education, or an apprenticeship program of at least 2 
        years following secondary instruction, with a common 
        core of required proficiency in mathematics, science, 
        communications, and technologies designed to lead to an 
        associate degree or certificate in a specific career 
        field;
          [(3) include the development of tech-prep education 
        program curricula appropriate to the needs of the 
        consortium participants;
          [(4) include in-service training for teachers that--
                  [(A) is designed to train teachers to 
                effectively implement tech-prep education 
                curricula;
                  [(B) provides for joint training for teachers 
                from all participants in the consortium; and
                  [(C) may provide such training in weekend, 
                evening, and summer sessions, institutes or 
                workshops;
          [(5) include training programs for counselors 
        designed to enable counselors to more effectively--
                  [(A) recruit students for tech-prep education 
                programs;
                  [(B) ensure that such students successfully 
                complete such programs; and
                  [(C) ensure that such students are placed in 
                appropriate employment;
          [(6) provide equal access to the full range of 
        technical preparation programs to individuals who are 
        members of special populations, including the 
        development of tech-prep education program services 
        appropriate to the needs of such individuals; and
          [(7) provide for preparatory services which assist 
        all participants in such programs.
  [(c) Additional Authorized Activities.--Each such program 
may--
          [(1) provide for the acquisition of tech-prep 
        education program equipment; and
          [(2) as part of the program's planning activities, 
        acquire technical assistance from State or local 
        entities that have successfully designed, established 
        and operated tech-prep programs.

[SEC. 345. APPLICATIONS.

  [(a) In General.--Each consortium that desires to receive a 
grant under this part shall submit an application to the 
Secretary or the State board, as appropriate, at such time and 
in such manner as the Secretary or the State board, as 
appropriate, shall prescribe.
  [(b) Three-Year Plan.--Each application submitted under this 
section shall contain a 3-year plan for the development and 
implementation of activities under this part.
  [(c) Approval.--The Secretary or the State board, as 
appropriate, shall approve applications based on their 
potential to create an effective tech-prep education program as 
provided for in section 344.
  [(d) Special Consideration.--The Secretary or the State 
board, as appropriate, shall give special consideration to 
applications which--
          [(1) provide for effective employment placement 
        activities or transfer of students to 4-year 
        baccalaureate degree programs;
          [(2) are developed in consultation with business, 
        industry, labor unions, and institutions of higher 
        education that award baccalaureate degrees; and
          [(3) address effectively the issues of dropout 
        prevention and re-entry and the needs of minority 
        youths, youths of limited English proficiency, youths 
        with handicaps, and disadvantaged youths.
  [(e) Equitable Distribution of Assistance.--In making grants 
under this part, the Secretary shall ensure an equitable 
distribution of assistance among States and the Secretary or 
the State board, as appropriate, shall ensure an equitable 
distribution of assistance between urban and rural consortium 
participants.
  [(f) Notice.--(1) In the case of grants to be made by the 
Secretary, each consortium that submits an application under 
this section shall provide notice of such submission and a copy 
of such application to the State educational agency and the 
State agency for higher education of the State in which the 
consortium is located.
  [(2) The Secretary shall notify the State educational agency, 
the State agency for higher education, and the State council on 
vocational education of any State each time a consortium 
located in such State is selected to receive a grant under this 
part.

[SEC. 346. REPORTS.

  [(a) Report to the Secretary.--In the case of grants made by 
the Secretary, each grant recipient shall, with respect to 
assistance received under this part, submit to the Secretary 
such reports as may be required by the Secretary to ensure that 
such grant recipient is complying with the requirements of this 
part.
  [(b) Report to the Congress.--After grant recipients who 
receive grants in the first year in which grants are made under 
this part complete their eligibility under the program, the 
Secretary shall submit to the Congress a report evaluating the 
effectiveness of the program under this part.

[SEC. 347. DEFINITIONS.

  [For purposes of this part:
          [(1) The term ``articulation agreement'' means a 
        commitment to a program designed to provide students 
        with a nonduplicative sequence of progressive 
        achievement leading to competencies in a tech-prep 
        education program.
          [(2) The term ``community college''--
                  [(A) has the meaning provided in section 
                1201(a) of the Higher Education Act of 1965 for 
                an institution which provides not less than a 
                2-year program which is acceptable for full 
                credit toward a bachelor's degree; and
                  [(B) includes tribally controlled community 
                colleges.
          [(3) The term ``tech-prep education program'' means a 
        combined secondary and postsecondary program which--
                  [(A) leads to an associate degree or 2-year 
                certificate;
                  [(B) provides technical preparation in at 
                least 1 field of engineering technology, 
                applied science, mechanical, industrial, or 
                practical art or trade, or agriculture, health, 
                or business;
                  [(C) builds student competence in 
                mathematics, science, and communications 
                (including through applied academics) through a 
                sequential course of study; and
                  [(D) leads to placement in employment.
          [(4) The terms ``institution of higher education'' 
        and ``higher education'' include institutions offering 
        apprenticeship programs of at least 2 years beyond the 
        completion of secondary school.

 [PART F--SUPPLEMENTARY STATE GRANTS FOR FACILITIES AND EQUIPMENT AND 
                  OTHER PROGRAM IMPROVEMENT ACTIVITIES

[SEC. 351. STATEMENT OF PURPOSE.

  [It is the purpose of this part to provide funding to local 
educational agencies in economically depressed areas for 
program improvement activities, especially the improvement of 
facilities and acquisition or leasing of equipment to be used 
to carry out vocational education programs that receive 
assistance under this Act.

[SEC. 352. ALLOTMENT TO STATES.

  [In each fiscal year, from any amounts appropriated for 
purposes of carrying out this part, the Secretary shall allot 
to each State an amount which bears the same ratio to such 
appropriated amounts as the aggregate amount allocated to 
counties in such State for such fiscal year under section 1006 
of the Elementary and Secondary Education Act of 1965 bears to 
the total amount appropriated for carrying out such section for 
such fiscal year.

[SEC. 353. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

  [(a) Distribution of All Grant Amounts.--In each fiscal year 
for which a State receives a grant under this part, the State 
shall distribute not less than 100 percent of the amounts made 
available under the grant to eligible local educational 
agencies as provided in subsection (b).
  [(b) Grant Amounts.--In each fiscal year for which a State 
receives a grant under this part, each eligible local 
educational agency or consortium of such agencies in the State 
shall receive an amount under this part that bears the same 
relationship to the amount received by such local educational 
agency or agencies under section 1006 of the Elementary and 
Secondary Education Act of 1965 bears to the aggregate amount 
received by local educational agencies in such State under such 
section in such fiscal year.

[SEC. 354. USES OF FUNDS.

  [Each local educational agency or consortium of such agencies 
that receives a grant under this part shall--
          [(1) give first priority to using funds provided 
        under the grant for improving facilities and acquiring 
        or leasing equipment for carrying out vocational 
        education programs that receive assistance under this 
        Act; and
          [(2) then may use any funds not required to carry out 
        the provisions of paragraph (1) for other program 
        improvement activities, such as curriculum development 
        or teacher training.

[SEC. 355. STATE APPLICATIONS.

  [(a) In General.--Each State that desires to receive a grant 
under this part shall submit to the Secretary an application at 
such time, in such manner, and containing or accompanied by 
such information as the Secretary may reasonably require. Each 
such application shall--
          [(1) designate the sole State agency described in 
        section 111(a)(1) as the State agency responsible for 
        the administration and supervision of activities 
        carried out with assistance under this part;
          [(2) provide for a process of consultation with the 
        State council established under section 112;
          [(3) describes how funds will be allocated in a 
        manner consistent with section 353;
          [(4) provide for an annual submission of data 
        concerning the use of funds and students served with 
        assistance under this part;
          [(5) provide that the State educational agency will 
        keep such records and provide such information to the 
        Secretary as may be required for purposes of financial 
        audits and program evaluations; and
          [(6) contain assurances that the State will comply 
        with the requirements of this part.
  [(b) Period of Application.--An application submitted by the 
State under subsection (a) shall be for a period of not more 
than 3 years and shall be amended annually.

[SEC. 356. LOCAL APPLICATIONS.

  [Each local educational agency or consortium of such agencies 
that desires to receive a grant under this part shall submit to 
the State an application at such time, in such manner, and 
containing or accompanied by such information as the State may 
reasonably require.

    [PART G--COMMUNITY EDUCATION EMPLOYMENT CENTERS AND VOCATIONAL 
               EDUCATION LIGHTHOUSE SCHOOLS deg.


           [Subpart 1--Community Education Employment Centers

[SEC. 361. SHORT TITLE.

  [This part may be cited as the ``Community Education 
Employment Center Act of 1990''.

[SEC. 362. PURPOSE.

  [It is the purpose of this part to establish and evaluate 
model high school community education employment centers to 
meet the education needs of low-income urban and rural youth by 
awarding grants to eligible recipients to enable such eligible 
recipients to establish community education employment centers 
to provide students with the education, skills, support 
services, and enrichment necessary to ensure--
          [(1) graduation from secondary school;
          [(2) successful transition from secondary schools to 
        a broad range of postsecondary institutions; and
          [(3) employment, including military service.

[SEC. 363. PROGRAM AUTHORIZED.

  [(a) In General.--The Secretary is authorized to make grants 
to eligible recipients having applications approved pursuant to 
section 369 to establish and operate not more than 10 community 
education employment centers nationwide.
  [(b) Grant Period.--Grants awarded under this section may be 
for a period of 5 years.

[SEC. 364. PROGRAM REQUIREMENTS.

  [Each eligible recipient receiving a grant under this part 
shall--
          [(1) operate a community education employment center 
        on an extended year and extended day basis;
          [(2) establish a collegial working environment, with 
        substantial opportunities for staff training and 
        development and shared decisionmaking;
          [(3) maintain small class sizes, and to the extent 
        possible, maintain an average class size of 15 students 
        or less;
          [(4) have the option to organize community education 
        and employment centers into 1 or more programs, 
        specializing in different areas of study of particular 
        interest and employment opportunities for the student 
        population;
          [(5) offer a broad array of secondary school 
        coursework, including, to the extent possible--
                  [(A) English, mathematics, history, 
                geography, biology, chemistry, physics, and 
                computer science;
                  [(B) opportunities for student participation 
                in a wide range of extracurricular activities, 
                including community service and exploration, 
                sports, fine and performing arts and tutorial 
                study sessions;
                  [(C) a comprehensive vocational-technical 
                education program developed through regular 
                consultation with employer-labor panels with 
                knowledge of relevant industries, and which 
                offers skills in planning, management, 
                finances, technical and production skills, 
                underlying principles of technology, labor and 
                community issues, economic development and 
                health, safety, and environment issues;
                  [(D) courses in health, nutrition, and 
                parenting;
          [(6) offer students on-site opportunities for 
        assistance with career planning and decisionmaking, 
        employability, entrepreneurial abilities, interpersonal 
        communication skills, and remedial studies;
          [(7) maintain an emphasis on the development of 
        academic skills, regardless of student career 
        objectives;
          [(8) provide technical assistance and training to 
        staff from other schools and local education agencies 
        within the State who wish to replicate community 
        education employment center capabilities;
          [(9) seek to utilize community organizations to 
        provide support for educational activities and services 
        to parents and students; and
          [(10) offer school-to-work transition services.

[SEC. 365. SUPPORT SERVICES REQUIREMENTS.

  [Each eligible recipient receiving a grant under this part 
shall establish in each community education employment center a 
support system to coordinate services for students, including--
          [(1) a comprehensive program of confidential guidance 
        counseling, providing--
                  [(A) guidance for career and personal 
                decisionmaking and postsecondary institution 
                placement;
                  [(B) mentoring and referral to appropriate 
                social services; and
                  [(C) an accessible counseling service to help 
                parents to focus on the enhancement of student 
                education;
          [(2) an on-site job service office to offer 
        students--
                  [(A) career guidance, development, and 
                employment counseling, which provides 
                information about a broad range of occupations 
                and alternative career paths;
                  [(B) labor market information, job 
                development, career testing, and occupational 
                placement services for part-time and summer 
                employment, internships, cooperative programs, 
                and part-time and full-time employment 
                opportunities upon graduation; and
                  [(C) assistance in arranging part-time 
                employment, so long as such employment does not 
                adversely affect academic performance;
          [(3) assistance in arranging a summer program of 
        work, education, or enrichment sessions;
          [(4) to the extent possible, providing transportation 
        to and from the community education employment center 
        and part-time job sites; and
          [(5) access to day care services for children of 
        participating students.

[SEC. 366. PARENTAL AND COMMUNITY PARTICIPATION.

  [(a) In General.--Each eligible recipient receiving a grant 
under this part shall employ a parent/community coordinator to 
provide for the active and informed participation of parents 
and appropriate community representatives in each community 
education employment center by--
          [(1) encouraging parents and students to make 
        informed decisions in reviewing and selecting the 
        choice of community education employment center 
        programs for their children;
          [(2) conducting regular parent seminars to--
                  [(A) inform parents about community education 
                employment center operations;
                  [(B) obtain parent input; and
                  [(C) disseminate information on how parents 
                can encourage student performance;
          [(3) providing the parents of each student with a 
        regular opportunity to meet with counselors, teachers, 
        and the student to discuss student progress, plans, and 
        needs;
          [(4) providing a range of roles in which parents may 
        work with students at home or as class assistants or 
        volunteer coordinators;
          [(5) establishing an advisory Council of Advisors (in 
        this part referred to as the ``Council'') consisting of 
        1 individual representing each of the following 
        entities:
                  [(A) the local educational agency;
                  [(B) the State council on vocational 
                education and the State agency responsible for 
                secondary vocational education;
                  [(C) the student body;
                  [(D) the local teacher organization;
                  [(E) guidance counselors;
                  [(F) community-based organizations;
                  [(G) parents; and
                  [(H) the appropriate private industry 
                council.
  [(b) Functions of the Council.--The Council shall provide 
recommendations to, and work with, eligible recipients to--
          [(1) establish annual community education employment 
        center priorities, programs, and procedures;
          [(2) establish student selection criteria to ensure 
        that all students in the school district have an equal 
        opportunity to attend the community education 
        employment center and that participants will be 
        representative of the secondary school population in 
        the school district;
          [(3) promulgate a student code of conduct that shall 
        be developed in consultation with the students and 
        teachers;
          [(4) assist in the selection of the community 
        education employment center principal, administrators, 
        department chairpersons, and teachers;
          [(5) assist in the selection and application of 
        assessment tools for continuous evaluation of student 
        learning progress;
          [(6) make recommendations for the selection of 
        curriculum textbooks, software, and other learning 
        resources and equipment; and
          [(7) make recommendations regarding the coordination 
        of activities assisted under this part with activities 
        assisted under the Job Training Partnership Act and 
        school to work transitions.

[SEC. 367. PROFESSIONAL STAFF.

  [(a) In General.--Each eligible recipient receiving a grant 
under this part shall only employ professional staff who 
demonstrate the highest of academic, teaching, guidance, or 
administrative standards.
  [(b) Teachers.--(1) Each eligible recipient receiving a grant 
under this part shall ensure that community education 
employment center teachers receive inservice training at least 
annually in techniques, procedures and policies relevant to the 
community education employment center.
  [(2) Each eligible recipient receiving a grant under this 
part shall employ a sufficient number of full-time certified or 
licensed guidance and career counselors to assist, enhance and 
monitor student progress.
[SEC. 368. ELIGIBILITY.

  [An eligible recipient shall be eligible to receive a grant 
under this part if--
          [(1) the eligible recipient is located in or serves 1 
        or more local educational agencies that are eligible 
        for assistance under section 1006 of the Elementary and 
        Secondary Education Act of 1965; and
          [(2) the eligible recipient demonstrates that it will 
        serve a student population which is predominantly 
        educationally and economically disadvantaged.

[SEC. 369. APPLICATION.

  [(a) Application Required.--Each eligible recipient desiring 
to participate in the demonstration grant program authorized by 
this part shall prepare and submit an application to the 
Secretary at such time, in such manner, and containing or 
accompanied by such information as the Secretary may require.
  [(b) Contents of Application.--Each application submitted 
pursuant to subsection (a) shall--
          [(1) demonstrate that the area where the center is to 
        be located has a high concentration of children from 
        low-income families, relative to the county and State 
        as a whole;
          [(2) describe the activities and services for which 
        assistance is sought;
          [(3) provide assurances that the eligible recipient 
        will comply with the provisions of sections 364, 365, 
        366, 367, and 368;
          [(4) contain assurances that the State and local 
        educational agency will, in any fiscal year, at least 
        supply the same fiscal effort per student with respect 
        to the free provision of public education to community 
        education employment center students as such local 
        educational agency provides for students attending 
        secondary schools in such local educational agency;
          [(5) utilize funding available from appropriate 
        employment, training, and education programs in the 
        State;
          [(6) contain assurances that the community education 
        employment center will coordinate the operations of 
        such center to help meet local economic needs; and
          [(7) provide such additional assurances as the 
        Secretary may reasonably require.

[SEC. 370. EVALUATION AND REPORT.

  [(a) Local Evaluation.--Each community education employment 
center shall submit annually to the Secretary a comprehensive 
and continuous evaluation of student learning progress, 
including--
          [(1) academic and vocational competencies;
          [(2) dropout rates;
          [(3) information concerning employment and earnings 
        while the students are attending a community education 
        employment center and upon the graduation of such 
        students from such center;
          [(4) information concerning student attendance at 
        postsecondary institutions or student enlistment into 
        military service upon the graduation of such students 
        from the community employment education center; and
          [(5) parental, student and community participation in 
        the activities of the community employment education 
        center.
  [(b) Report.--The Secretary shall report to the Congress on 
the evaluations submitted pursuant to subsection (a) not later 
than October 1, 1995.

[SEC. 371. DEFINITIONS.

  [As used in this part--
          [(1) the term ``eligible recipient'' means a 
        secondary school or an area vocational school; and
          [(2) the term ``parent'' includes a legal guardian or 
        other person standing in loco parentis.

          [Subpart 2--Vocational Education Lighthouse Schools

[SEC. 375. VOCATIONAL EDUCATION LIGHTHOUSE SCHOOLS.

  [(a) Program Authorized.--The Secretary is authorized to make 
grants to secondary schools and area vocational education 
schools to enable such schools to establish and operate 
vocational education lighthouse schools.
  [(b) Use of Funds.--Grants awarded under this section shall 
be used to establish vocational education lighthouse schools 
which--
          [(1) serve as a model vocational education program--
                  [(A) to provide each student with knowledge 
                of, and experience in, all aspects of the 
                industry or enterprise the student is preparing 
                to enter;
                  [(B) to provide each student with basic and 
                higher order skills and develop the student's 
                problem solving abilities in a vocational 
                setting;
                  [(C) to offer exceptionally high quality 
                programs for disadvantaged and minority 
                students;
                  [(D) to provide the special services and 
                modifications necessary to help individual 
                students successfully complete the program;
                  [(E) which is planned, developed and 
                implemented with the participation of staff, 
                local employers and local community; and
                  [(F) which offers a full range of programs, 
                including comprehensive career guidance and 
                counseling, for students who plan to seek 
                employment upon graduation or who will enroll 
                in a 2- or 4-year college;
          [(2) provide information and assistance to other 
        grant recipients, vocational programs, vocational 
        education personnel, parents, students, other 
        educators, community members and community 
        organizations throughout the State regarding--
                  [(A) curriculum materials;
                  [(B) curriculum development, especially the 
                integration of vocational and academic 
                education;
                  [(C) inservice and preservice staff 
                development, training, and assistance, through 
                off-site activities and through a range of 
                short-term and long-term opportunities to 
                participate in activities at the demonstration 
                site;
                  [(D) opportunities to systematically observe 
                the model program; and
                  [(E) technical assistance and staff 
                development, as appropriate;
          [(3) use funds received under this section, together 
        with funds from non-Federal sources, to develop and 
        implement model programs containing the elements 
        described in paragraph (1);
          [(4) develop comprehensive linkages with other local 
        schools, community colleges, 4-year colleges, private 
        vocational schools, community-based organizations, 
        labor unions, employers, and other business groups, as 
        appropriate; and
          [(5) develop and disseminate model approaches--
                  [(A) for meeting the education training needs 
                and career counseling needs of minority 
                students, disadvantaged students, students with 
                handicaps, and students of limited English 
                proficiency; and
                  [(B) to reduce and eliminate sex bias and 
                stereotyping.

   [PART H--TRIBALLY CONTROLLED POSTSECONDARY VOCATIONAL INSTITUTIONS

[SEC. 381. SHORT TITLE.

  [This part may be cited as the ``Tribally Controlled 
Vocational Institutions Support Act of 1990''.

[SEC. 382. PURPOSE.

  [It is the purpose of this part to provide grants for the 
operation and improvement of tribally controlled postsecondary 
vocational institutions to ensure continued and expanded 
educational opportunities for Indian students, and to allow for 
the improvement and expansion of the physical resources of such 
institutions.

[SEC. 383. GRANTS AUTHORIZED.

  [(a) General Authority.--The Secretary shall, subject to the 
availability of appropriations, make grants pursuant to this 
section to tribally controlled postsecondary vocational 
institutions to provide basic support for the education and 
training of Indian students.
  [(b) Use of Grants.--Amounts made available under grants made 
pursuant to this section may be used for--
          [(1) training costs;
          [(2) educational costs;
          [(3) equipment costs;
          [(4) administrative costs; and
          [(5) costs of operation and maintenance of the 
        institution.

[SEC. 384. ELIGIBLE GRANT RECIPIENTS.

  [To be eligible for assistance under this part a tribally 
controlled postsecondary vocational institution shall--
          [(1) be governed by a board of directors or trustees, 
        a majority of whom are Indians;
          [(2) demonstrate adherence to stated goals, a 
        philosophy or a plan of operation which fosters 
        individual Indian economic and self-sufficiency 
        opportunity, including programs which are appropriate 
        to stated tribal goals of developing individual 
        entrepreneurships and self-sustaining economic 
        infrastructures on reservations;
          [(3) have been in operation for at least 3 years;
          [(4) hold accreditation with or be a candidate for 
        accreditation by a nationally recognized accrediting 
        authority for postsecondary vocational education; and
          [(5) enroll the full-time equivalency of not less 
        than 100 students, of whom a majority are Indians.

[SEC. 385. GRANTS TO TRIBALLY CONTROLLED POSTSECONDARY VOCATIONAL 
                    INSTITUTIONS.

  [(a) Applications.--Any tribally controlled postsecondary 
vocational institution that desires to receive a grant under 
this part shall submit an application to the Secretary. Such 
application shall include a description of recordkeeping 
procedures for the expenditure of funds received under this 
part which will allow the Secretary to audit and monitor 
programs.
  [(b) Initial Grants.--In the first year for which amounts are 
appropriated to carry out this part, the number of grants 
issued shall be not less than 2.
  [(c) Consultation.--In making grants pursuant to this part, 
the Secretary shall, to the extent practicable, consult with 
the boards of trustees and the tribal governments chartering 
the institutions being considered.
  [(d) Limitation.--Amounts made available under grants made 
pursuant to this part shall not be used in connection with 
religious worship or sectarian instruction.

[SEC. 386. AMOUNT OF GRANTS.

  [(a) Allowable Expenses.--Except as provided in subsection 
(d), the Secretary shall, subject to the availability of 
appropriations, provide for each program year to each tribally 
controlled vocational institution having an application 
approved by the Secretary, an amount necessary to pay expenses 
associated with--
          [(1) the maintenance and operation of the program, 
        including development costs, costs of basic and special 
        instruction (including special programs for individuals 
        with handicaps and academic instruction), materials, 
        student costs, administrative expenses, boarding costs, 
        transportation, student services, day care and family 
        support programs for students and their families 
        (including contributions to the costs of education for 
        dependents);
          [(2) capital expenditures, including operations and 
        maintenance and minor improvements and repair, physical 
        plant maintenance costs; and
          [(3) costs associated with repair, upkeep, 
        replacement, and upgrading of the instructional 
        equipment.
  [(b) Payments.--(1) For each fiscal year, the Secretary shall 
provide amounts to institutions that are approved for grants 
under section 385 in 2 payments.
  [(2)(A) The first payment shall be made before the end of the 
30-day period beginning on the date of the enactment of an Act 
providing appropriations for such fiscal year for purposes of 
carrying out this part. Except as provided in subparagraph (B), 
such payment shall be in an amount that is equal to at least 50 
percent of the amount determined to be required under 
subsection (a) for the preceding year.
  [(B) In the first year that an institution receives a grant 
under this part, the Secretary shall determine the amount of 
the first payment by estimating the costs described in 
subsection (a) based upon information submitted by the 
institution.
  [(3) Each institution that receives a grant under section 385 
shall receive a final payment of amounts to which it is 
entitled based on its costs under subsection (a) not later than 
January 1 of the fiscal year in which the costs are incurred.
  [(c) Accounting.--Each institution receiving payments under 
this part shall annually provide to the Secretary an accurate 
and detailed accounting of its operating and maintenance 
expenses and such other information concerning costs as the 
Secretary may reasonably require.
  [(d) Additional Grants Authorized.--(1) After providing 
grants to all eligible institutions under subsection (a), the 
Secretary shall, from any amounts remaining--
          [(A) first allocate to institutions receiving their 
        first grant under this part an amount equal to the 
        training equipment costs necessary to implement 
        training programs; and
          [(B) from any remaining funds, review training 
        equipment needs at each institution receiving 
        assistance under this part at the end of the 5-year 
        period beginning on the first day of the first year for 
        which the institution received a grant under this part, 
        and provide allocations for other training equipment 
        needs if it is demonstrated by the institution that its 
        training equipment has become obsolete for its 
        purposes, or that the development of other training 
        programs is appropriate.
  [(2) For the purposes of carrying out this subsection, the 
Secretary may require from each institution the submission of 
such information relating to the feasibility of such training 
programs as is reasonable and practical.

[SEC. 387. EFFECT ON OTHER PROGRAMS.

  [(a) In General.--Except as specifically provided in this 
Act, eligibility for assistance under this part shall not 
preclude any tribally controlled postsecondary vocational 
institution from receiving Federal financial assistance under 
any program authorized under the Higher Education Act of 1965 
or any other applicable program for the benefit of institutions 
of higher education or vocational education.
  [(b) Prohibition on Alteration of Grant Amount.--The amount 
of any grant for which tribally controlled postsecondary 
vocational institutions are eligible under this part shall not 
be altered because of funds allocated to any such institution 
from funds appropriated under the Act of November 2, 1921.
  [(c) Prohibition on Contract Denial.--No tribally controlled 
postsecondary vocational institution for which an Indian tribe 
has designated a portion of the funds appropriated for the 
tribe from funds appropriated under the Act of November 2, 
1921, may be denied a contract for such portion under the 
Indian Self-Determination and Education Assistance Act (except 
as provided in that Act), or denied appropriate contract 
support to administer such portion of the appropriated funds.

[SEC. 388. GRANT ADJUSTMENTS.

  [(a) Allocation.--(1) If the sums appropriated for any fiscal 
year for grants under this part are not sufficient to pay in 
full the total amount which approved applicants are eligible to 
receive under this part for such fiscal year, the Secretary 
shall first allocate to each such applicant which received 
funds under this part for the preceding fiscal year an amount 
equal to 100 percent of the product of the per capita payment 
for the preceding fiscal year and such applicant's Indian 
student count for the current program year, plus an amount 
equal to the actual cost of any increase to the per capita 
figure resulting from inflationary increases to necessary costs 
beyond the institution's control.
  [(2) For purposes of paragraph (1), the per capita payment 
for any fiscal year shall be determined by dividing the amount 
available for grants to tribally controlled postsecondary 
vocational institutions under this part for such program year 
by the sum of the Indian student counts of such institutions 
for such program year. The Secretary shall, on the basis of the 
most accurate data available from the institutions, compute the 
Indian student count for any fiscal year for which such count 
was not used for the purpose of making allocations under this 
part.
  [(b) Needs Estimate.--The Secretary shall, based on the most 
accurate data available from the institutions and Indian tribes 
whose Indian students are served under this part, in 
consideration of employment needs, economic development needs, 
population training needs, prepare an actual budget needs 
estimate for each institution eligible under this part for each 
subsequent program year, and submit such budget needs estimate 
to the Congress in such a timely manner as will enable the 
appropriate committees of the Congress to consider such needs 
data for purposes of the uninterrupted flow of adequate 
appropriations to such institutions.

[SEC. 389. REPORT ON FACILITIES AND FACILITIES IMPROVEMENT.

  [(a) Study of Training and Housing Needs.--(1) The Secretary 
shall conduct a detailed study of the training and housing 
needs of each institution eligible under this part.
  [(2) The study required by paragraph (1) shall include an 
examination of--
          [(A) training equipment needs; and
          [(B) housing needs of families whose heads of 
        household are students and whose dependents have no 
        alternate source of support while such heads of 
        household are students.
  [(3) The Secretary shall report to the Congress not later 
than July 1, 1991, on the results of the study required by 
paragraph (1).
  [(4) The report required by paragraph (3) shall--
          [(A) include the number, type, and cost of meeting 
        the needs described in paragraph (2); and
          [(B) rank each institution by relative need.
  [(5) In conducting the study required by paragraph (1), the 
Secretary shall give priority to institutions which are 
receiving assistance under this part.
  [(b) Long-Term Study of Facilities.--(1) The Secretary shall 
provide for the conduct of a long-term study of facilities of 
each institution eligible for assistance under this part.
  [(2) The study required by paragraph (1) shall include a 5-
year projection of training facilities and equipment and 
housing needs and shall consider such factors as projected 
service population, employment and economic development 
forecasting, based on the most current and accurate data 
available from the institutions and Indian tribes affected.
  [(3) The Secretary shall submit to the Congress a detailed 
report on the results of such study not later than the end of 
the 18-month period beginning on the date of the enactment of 
this Act.
  [(4) The Secretary shall submit to the Congress a progress 
report not less often than once every 6 months, beginning on 
the date of the enactment of this Act, concerning activities 
conducted pursuant to this section.
  [(c) Construction and Renovation Grants.--Pursuant to the 
studies conducted and the report submitted under subsections 
(a) and (b), the Secretary is authorized to make grants to the 
tribally controlled vocational institutions for construction, 
rehabilitation, major alterations and renovation of buildings 
and other physical structures for the conduct of programs 
funded under this part. Such grants shall be made in such time 
and pursuant to such applications as the Secretary shall by 
regulation determine.

[SEC. 390. DEFINITIONS.

  [For the purposes of this part:
          [(1) The terms ``Indian'' and ``Indian tribe'' have 
        the meaning given such terms in section 2 of the 
        Tribally Controlled Community College Assistance Act of 
        1978.
          [(2) The term ``tribally controlled postsecondary 
        vocational institution'' means an institution of higher 
        education which is formally controlled, or has been 
        formally sanctioned or chartered by the governing body 
        of an Indian tribe or tribes which offers technical 
        degrees or certificate granting programs.
          [(3) The term ``Indian student count'' means a number 
        equal to the total number of Indian students enrolled 
        in each tribally controlled vocational institution, 
        determined as follows:
                  [(A) The registrations of Indian students as 
                in effect on October 1 of each year.
                  [(B) Credits or clock hours toward a 
                certificate earned in classes offered during a 
                summer term shall be counted toward the 
                computation of the Indian student count in the 
                succeeding fall term.
                  [(C) Credits or clock hours toward a 
                certificate earned in classes during a summer 
                term shall be counted toward the computation of 
                the Indian student count if the institution at 
                which the student is in attendance has 
                established criteria for the admission of such 
                student on the basis of the student's ability 
                to benefit from the education or training 
                offered. The institution shall be presumed to 
                have established such criteria if the admission 
                procedures for such studies include counseling 
                or testing that measures the student's aptitude 
                to successfully complete the course in which 
                the student has enrolled. No credit earned by 
                such student for purposes of obtaining a high 
                school degree or its equivalent shall be 
                counted toward the computation of the Indian 
                student count.
                  [(D) Indian students earning credits in any 
                continuing education program of a tribally 
                controlled vocational institution shall be 
                included in determining the sum of all credit 
                or clock hours.
                  [(E) Credits or clock hours earned in a 
                continuing education program shall be converted 
                to the basis that is in accordance with the 
                institution's system for providing credit for 
                participation in such programs.

                      [TITLE IV--NATIONAL PROGRAMS

                   [PART A--RESEARCH AND DEVELOPMENT

                          [Research Objectives

  [Sec. 401. It is the purpose of this part--
          [(1) to authorize research activities which 
        contribute to improving the access to vocational 
        education programs of individuals who are 
        disadvantaged, who are handicapped, women who are 
        entering nontraditional occupations, adults who are in 
        need of retraining, individuals who are single parents, 
        displaced homemakers, or single pregnant women, 
        individuals with limited English proficiency, and 
        individuals who are incarcerated in correctional 
        institutions;
          [(2) to authorize additional research and development 
        activities that are related to the purposes of this Act 
        as stated in section 2;
          [(3) to improve the competitive process by which 
        research projects are awarded;
          [(4) to encourage the dissemination of findings of 
        research projects assisted under this Act to all 
        States; and
          [(5) to authorize research activities which are 
        readily applicable to the vocational education setting 
        and are of practical application to vocational 
        education administrators, counselors, and instructors 
        and others involved in vocational education.

                          [Research Activities

  [Sec. 402. (a) In order to carry out the objectives set forth 
in section 401, the Secretary shall conduct applied research on 
aspects of vocational education specifically related to this 
Act. Such research may be conducted through the Office of 
Educational Research and Improvement. Such research shall 
include--
          [(1) effective methods for providing quality 
        vocational education to handicapped individuals, 
        disadvantaged individuals, men and women in 
        nontraditional fields, adults, single parents, 
        displaced homemakers, single pregnant women, 
        individuals with limited English proficiency, and 
        individuals who are incarcerated in correctional 
        institutions;
          [(2) research on the development and implementation 
        of performance standards and measures that fit within 
        the needs of State boards or eligible recipients in 
        carrying out the provisions of this Act and on the 
        relationship of such standards and measures to the data 
        system established under section 421, which may include 
        evaluation of existing performance standards and 
        measures and dissemination of such information to the 
        State board and eligible recipients;
          [(3) evaluation of the use of performance standards 
        and measures under this Act and the effect of such 
        standards and measures on the participation of students 
        in vocational education programs and on the outcomes of 
        students in such programs, especially students who are 
        members of special populations;
          [(4) strategies for coordinating local, State, and 
        Federal vocational education; employment training, and 
        economic development programs to maximize their 
        efficacy and for improving worker training and 
        retraining;
          [(5) the constructive involvement of the private 
        sector in public vocational education;
          [(6) successful methods of reinforcing and enhancing 
        basic and more advanced academic and problem-solving 
        skills in vocational settings;
          [(7) successful methods for providing students, to 
        the maximum extent practicable, with experience in and 
        understanding of all aspects of the industry such 
        students are preparing to enter; and
          [(8) the development of effective methods for 
        providing quality vocational education to individuals 
        of limited English proficiency, including research 
        related to bilingual vocational training.
  [(b) In addition, the Secretary shall support meritorious, 
unsolicited research proposals from individual researchers, 
community colleges, State advisory councils, and State and 
local educators relating to the goals of this Act.
  [(c) Dissemination.--(1) The Secretary shall establish a 
system for disseminating information resulting from research 
and development activities carried out under this Act. In 
establishing such system, the Secretary shall use existing 
dissemination systems, including the National Diffusion 
Network, the National Center or Centers for Research in 
Vocational Education, and the National Network for Curriculum 
Coordination in Vocational and Technical Education, in order to 
assure broad access at the State and local levels to the 
information being disseminated.
  [(2)(A) In order to comply with paragraph (1), the Secretary 
shall establish through grants or contracts a National Network 
for Curriculum Coordination in Vocational and Technical 
Education (in this paragraph referred to as the ``Network'') 
consisting of 6 regional curriculum coordination centers. The 
Network shall--
          [(i) provide national dissemination of information on 
        effective vocational education programs and materials, 
        with particular attention to regional programs;
          [(ii) be accessible by electronic means;
          [(iii) provide leadership and technical assistance in 
        the design, development, and dissemination of curricula 
        for vocational education;
          [(iv) coordinate the sharing of information among the 
        States with respect to vocational education curricula;
          [(v) reduce duplication of effort in State activities 
        for the development of vocational education curricula; 
        and
          [(vi) promote the use of research findings with 
        respect to vocational education curricula.
  [(B) The Secretary shall encourage the designation by each 
State of a liaison representative for the Network.
  [(d) The Secretary shall give preference in carrying out the 
provisions of this part to public and private postsecondary 
institutions in conducting vocational education research.
  [(e) The Secretary shall institute measures designed to 
ensure that program improvement activities carried out under 
this section represent a coordinated effort to improve the 
quality of vocational education.

[SEC. 403. NATIONAL ASSESSMENT OF VOCATIONAL EDUCATION PROGRAMS.

  [(a) In General.--(1) The Office of Education Research and 
Improvement (in this section referred to as the ``Office'') 
shall conduct a national assessment of vocational education 
programs assisted under this Act, through studies and analyses 
conducted independently through competitive awards.
  [(2) The Office shall appoint an independent advisory panel, 
consisting of vocational education administrators, educators, 
researchers, and representatives of business, industry, labor, 
and other relevant groups, to advise the Office on the 
implementation of such assessment, including the issues to be 
addressed, the methodology of the studies, and the findings and 
recommendations. The panel, at its discretion, may submit to 
the Congress an independent analysis of the findings and 
recommendations of the assessment. The Federal Advisory 
Committee Act shall not apply to the panel established under 
this paragraph.
  [(b) Contents.--The assessment required under subsection (a) 
shall include descriptions and evaluations of--
          [(1) the effect of this Act on State and tribal 
        administration of vocational education programs and on 
        local vocational education practices, including the 
        capacity of State, tribal and local vocational 
        education systems to address the priorities identified 
        in this Act;
          [(2) expenditures at the Federal, State, tribal and 
        local levels to address program improvement in 
        vocational education, including the impact of Federal 
        allocation requirements (such as within-State 
        allocation formulas) on the delivery of services;
          [(3) preparation and qualifications of teachers of 
        vocational and academic curricula in vocational 
        education programs, as well as shortages of such 
        teachers;
          [(4) participation in vocational education programs, 
        including, in particular, access of individuals who are 
        members of special populations to high-quality 
        vocational education programs and the effect on the 
        delivery of services to such populations, of Federal 
        legislation giving States flexibility in allocating 
        funds to serve such populations;
          [(5) academic and employment outcomes of vocational 
        education, including analyses of--
                  [(A) the effect of educational reform on 
                vocational education;
                  [(B) the extent and success of integration of 
                academic and vocational curricula;
                  [(C) the success of the school-to-work 
                transition; and
                  [(D) the degree to which vocational training 
                is relevant to subsequent employment;
          [(6) employer involvement in, and satisfaction with, 
        vocational education programs;
          [(7) the effect of performance standards and other 
        measures of accountability on the delivery of 
        vocational education services;
          [(8) the effect of Federal requirements regarding 
        criteria for services to special populations, 
        participatory planning in the States, and articulation 
        between secondary and postsecondary programs;
          [(9) coordination of services under this Act, the 
        Adult Education Act, the Job Training Partnership Act, 
        the National Apprenticeship Act, the Rehabilitation Act 
        of 1973, and the Wagner-Peyser Act; and
          [(10) the degree to which minority students are 
        involved in vocational student organizations.
  [(c) Consultation.--(1) The Secretary shall consult with the 
Committee on Labor and Human Resources of the Senate and the 
Committee on Education and Labor of the House of 
Representatives in the design and implementation of the 
assessment required under subsection (a).
  [(2) The Secretary shall submit to the Congress--
          [(A) an interim report on or before January 1, 1994; 
        and
          [(B) a final report, summarizing all studies and 
        analyses completed after the assessment, on or before 
        July 1, 1994.
  [(3) Notwithstanding any other provision of law or 
regulation, the reports required by this subsection shall not 
be subject to any review outside of the Office of Educational 
Research and Improvement before their transmittal to the 
Congress, but the President, the Secretary, and the independent 
advisory council established under subsection (a)(2) may make 
such additional recommendations to the Congress with respect to 
the assessment as they deem appropriate.
  [(d) Study.--(1) The assessment required by subsection (a) 
shall include a study of the distribution of Federal vocational 
education funds to the States. The study shall--
          [(A) consider the distributional effects of the 
        formula for allocation to the States established in 
        section 101(a)(2), including the age cohorts and the 
        per capita income allotment ratios;
          [(B) examine the impact that various other factors 
        such as State tax capacity, tax effort, per capita 
        income, poverty and educational achievement, could have 
        in achieving the Federal goals and policy objectives of 
        this Act;
          [(C) specifically address the appropriate 
        distribution mechanism to serve the target populations 
        of this Act; and
          [(D) explore the use of other possible methods of 
        targeting funds to individuals who are members of 
        special populations, particularly individuals who are 
        economically disadvantaged, including the poverty rate 
        of the school-aged population, the gross State product 
        per school-aged child, relative tax capacity, and tax 
        effort of the State, unemployment figures, and dropout 
        rates.
  [(2) The findings of the study required by paragraph (1) 
shall be used to formulate recommendations on the most 
appropriate criteria and methods to direct Federal funds to the 
States and to achieve the Federal goals and policy objectives 
of this Act.
  [(3) The study required under paragraph (1) shall be 
completed by January 1, 1994.

[SEC. 404. NATIONAL CENTER OR CENTERS FOR RESEARCH IN VOCATIONAL 
                    EDUCATION.

  [(a) General Authority.--(1) In order to address the purposes 
of this Act through the involvement of a broad array of 
individuals, including both vocational and academic teachers 
and administrators, the Secretary is authorized to award a 
grant or grants for the establishment of 1 or 2 national 
centers in the areas of--
          [(A) applied research and development; and
          [(B) dissemination and training.
  [(2)(A) Each entity selected to establish and operate a 
Center pursuant to paragraph (1) shall operate such Center for 
a period of 5 years.
  [(B) Beginning after December 31, 1992, the Secretary shall 
award an annual grant to the National Center or Centers 
selected pursuant to paragraph (1) for each of the 5 years such 
National Center is operated. After the third year in which the 
National Center or Centers receive a grant under this section 
the Secretary shall review the research priorities of the 
National Center or Centers.
  [(3) Of the amount available pursuant to section 451(a)(1) 
for purposes of carrying out this section, at least \2/3\ of 
such amount shall be available for applied research and 
development.
  [(4)(A) The Secretary shall hold a competition at the same 
point in time for the grant or grants for the activities 
described in paragraph (1). Any institution of higher education 
or consortium of such institutions may compete for either or 
both sets of activities.
  [(B) For the purpose of this section the term ``institution 
of higher education'', notwithstanding section 427(b)(2) of the 
Higher Education Amendments of 1992, has the same meaning as 
provided by section 435(b) of the Higher Education Act of 1965 
as such section was in effect on July 22, 1992.
  [(5) If an institution or consortium demonstrates that it can 
effectively carry out both activities either directly or 
through contracting, such institution or consortium shall be 
given a preference in the grant selection. If no institution or 
consortium demonstrates such capability and 2 grants are 
awarded, the Secretary must assure coordination of the 
activities under both grants.
  [(6) Not more than 10 percent of each year's budget for the 
Center or for each of the Centers may be used to respond to 
field-initiated needs unanticipated prior to the annual funding 
period and which are in the mission of the Center but not part 
of the scope of work of the grant.
  [(7) The National Center in existence on the date of the 
enactment of the Carl D. Perkins Vocational and Applied 
Technology Education Act Amendments of 1990 shall continue to 
operate through its 5-year cycle ending December 31, 1992.
  [(b) Activities.--(1) The applied research and development 
activities shall include--
          [(A) economic changes that affect the skills which 
        employers seek and entrepreneurs need;
          [(B) integration of academic and vocational 
        education;
          [(C) efficient and effective practices for addressing 
        the needs of special populations;
          [(D) efficient and effective methods for delivering 
        vocational education;
          [(E) articulation of school and college instruction 
        with high quality work experience;
          [(F) recruitment, education, and enhancement of 
        vocational teachers and other professionals in the 
        field;
          [(G) accountability processes in vocational 
        education, to include identification and evaluation of 
        the use of appropriate performance standards for 
        student, program, and State-level outcomes;
          [(H) effective practices that educate students in all 
        aspects of the industry the students are preparing to 
        enter;
          [(I) effective methods for identifying and 
        inculcating literacy and other communication skills 
        essential for effective job preparation and job 
        performance;
          [(J) identification of strategic, high priority 
        occupational skills and skills formation approaches 
        needed to maintain the competitiveness of the United 
        States workforce, sustain high-wage, high-technology 
        jobs and which address national priorities such as 
        technical jobs needed to protect and restore the 
        environment;
          [(K) identification of practices and strategies that 
        address entrepreneurial development for minority-owned 
        enterprises; and
          [(L) upon negotiation with the Center, and if funds 
        are provided pursuant to subsection (d), such other 
        topics as the Secretary may designate.
  [(2) The Center conducting the activities described in 
paragraph (1) shall annually prepare a study on the research 
conducted on approaches that lead to effective articulation for 
the education-to-work transition, including tech-prep programs, 
cooperative education or other work-based programs, such as 
innovative apprenticeship or mentoring approaches, and shall 
submit copies of such study to the Secretary of Education, the 
Secretary of Labor, the Secretary of Health and Human Services, 
the Committee on Labor and Human Resources of the Senate, and 
the Committee on Education and Labor of the House of 
Representatives.
  [(c) Dissemination and Training.--(1) The dissemination and 
training activities shall include--
          [(A) teacher and administrator training and 
        leadership development;
          [(B) technical assistance to assure that programs 
        serving special populations are effective in delivering 
        well-integrated and appropriately articulated 
        vocational and academic offerings for secondary, 
        postsecondary, and adult students;
          [(C) needs assessment, design, and implementation of 
        new and revised programs with related curriculum 
        materials to facilitate vocational-academic 
        integration;
          [(D) evaluation and follow-through to maintain and 
        extend quality programs;
          [(E) assistance in technology transfer and 
        articulation of program offerings from advanced 
        technology centers to minority enterprises;
          [(F) assistance to programs and States on the use of 
        accountability indicators, including appropriate and 
        innovative performance standards;
          [(G) delivery of information and services using 
        advanced technology, where appropriate, to increase the 
        effectiveness and efficiency of knowledge transfer;
          [(H) development of processes for synthesis of 
        research, in cooperation with a broad array of users, 
        including vocational and non-vocational educators, 
        employers and labor organizations;
          [(I) dissemination of exemplary curriculum and 
        instructional materials, and development and 
        publication of curriculum materials (in conjunction 
        with vocational and non-vocational constituency groups, 
        where appropriate);
          [(J) technical assistance in recruiting, hiring, and 
        advancing minorities in vocational education; and
          [(K) upon negotiation with the Center and if funds 
        are provided pursuant to subsection (d), such other 
        topics as the Secretary may designate.
  [(2) The Center conducting the activities described in 
paragraph (1) shall annually prepare a study on the 
dissemination and training activities described in paragraph 
(1) and shall submit copies of such study to the Secretary of 
Education, the Secretary of Labor, the Secretary of Health and 
Human Services, the Committee on Labor and Human Resources of 
the Senate, and the Committee on Education and Labor of the 
House of Representatives.
  [(d) Authorization of Other Research.--There are authorized 
to be appropriated $3,000,000 for the fiscal year 1991 and such 
sums as may be necessary for each of the fiscal years 1992, 
1993, 1994, and 1995 to carry out such additional activities 
assigned by the Secretary to the National Center in existence 
on the date of enactment of the Carl D. Perkins Vocational and 
Applied Technology Education Act Amendments of 1990 until the 
termination of its grant on December 31, 1992 and to carry out 
the provisions of subsections (b)(1)(L) and (c)(1)(K).

                    [PART B--DEMONSTRATION PROGRAMS

[SEC. 411. PROGRAMS AUTHORIZED.

  [(a) In General.--From amounts available pursuant to section 
101(a)(1)(A) in each fiscal year, the Secretary shall make 
demonstration grants in accordance with the provisions of this 
part.
  [(b) Priority.--In awarding demonstration grants pursuant to 
this part, the Secretary shall give priority to the programs 
described in sections 412 and 413.

[SEC. 412. MATERIALS DEVELOPMENT IN TELECOMMUNICATIONS.

  [(a) General Authority.--The Secretary is authorized to make 
grants to nonprofit educational telecommunications entities to 
pay the Federal share of the costs of the development, 
production, and distribution of instructional 
telecommunications materials and services for use in local 
vocational and technical educational schools and colleges.
  [(b) Federal Share.--(1) The Federal share of the cost of 
each project assisted under this section shall be 50 percent.
  [(2) The non-Federal share of the cost of each project 
assisted under this section shall be provided from non-Federal 
sources.
  [(c) Use of Funds.--Grants awarded pursuant to this section 
may be used to provide--
          [(1) a sequential course of study that includes 
        either preproduced video courseware or direct 
        interactive teaching delivered via satellite, 
        accompanied by a variety of print and computer-based 
        instructional materials;
          [(2) the development of individual videocassettes or 
        a series of videocassettes that supplement instruction, 
        which shall be distributed both via broadcast and 
        nonbroadcast means;
          [(3) videodiscs that produce simulated hands-on 
        training; and
          [(4) teacher training programs for vocational 
        educators and administrators and correctional 
        educators.
  [(d) Priority.--In awarding grants under this section the 
Secretary shall give priority to programs or projects which 
serve--
          [(1) students in area vocational and technical 
        schools;
          [(2) teachers, administrators, and counselors in need 
        of training or retraining;
          [(3) out-of-school adults in need of basic skills 
        improvement or a high school equivalency diploma to 
        improve the employability of such individuals;
          [(4) college students, particularly college students 
        who are working toward a 2-year associate degree from a 
        technical or community college;
          [(5) workers in need of basic skills, vocational 
        instruction, or career counseling to retain employment; 
        and
          [(6) workers who need to improve their skills to 
        obtain jobs in high-growth industries.

[SEC. 413. DEMONSTRATION CENTERS FOR THE TRAINING OF DISLOCATED 
                    WORKERS.

  [(a) General Authority.--The Secretary is authorized to 
establish 1 or more demonstration centers for the retraining of 
dislocated workers. Such center or centers may provide for the 
recruitment of unemployed workers, vocational evaluation, 
assessment and counseling services, vocational and technical 
training, support services, and job placement assistance. The 
design and operation of each center shall provide for the 
utilization of appropriate existing Federal, State, and local 
programs.
  [(b) Evaluation.--The Secretary shall provide for the 
evaluation of each center established under subsection (a).
  [(c) Dissemination of Information.--The Secretary shall 
disseminate information on successful retraining models 
developed by any center established under subsection (a) 
through dissemination programs operated by the Secretary and 
the Secretary of Labor.
  [(d) Eligible Organizations.--Any private, nonprofit 
organization that is eligible to receive funding under the Job 
Training Partnership Act is eligible to receive funding under 
this section.

[SEC. 414. PROFESSIONAL DEVELOPMENT.

  [(a) Training and Study Grants.--(1) The Secretary is 
authorized to provide grants to institutions of higher 
education, State educational agencies, or State correctional 
education agencies to provide grants, awards, or stipends--
          [(A) to individuals who are entering the field of 
        vocational education;
          [(B) for graduate training in vocational education;
          [(C) for vocational teacher education; and
          [(D) for attracting gifted and talented students in 
        vocational programs into further study and professional 
        development.
  [(2) Grants, awards, and stipends awarded under paragraph (1) 
shall provide--
          [(A) opportunities for experienced vocational 
        educators;
          [(B) opportunities for--
                  [(i) certified teachers who have been trained 
                to teach in other fields to become vocational 
                educators, including teachers with skills 
                related to vocational fields who can be trained 
                as vocational educators, and especially 
                minority instructors and instructors with 
                experience in teaching individuals who are 
                economically disadvantaged, individuals with 
                handicaps, students of limited English 
                proficiency, and adult and juvenile criminal 
                offenders;
                  [(ii) individuals in industry who have skills 
                and experience in vocational fields to be 
                trained as vocational educators; and
                  [(iii) vocational educators to improve or 
                maintain technological currency in their 
                fields; and
          [(C) opportunities for gifted and talented vocational 
        education secondary and postsecondary students to 
        intern with Federal or State agencies, nationally 
        recognized vocational education associations and 
        student organizations or the National Center or Centers 
        for Research in Vocational Education.
  [(b) Leadership Development Awards.--(1) In order to meet the 
needs of all States for qualified vocational education leaders 
(such as administrators, supervisors, teacher educators, 
researchers, career guidance and vocational counseling 
personnel, vocational student organization leadership personnel 
and teachers in vocational education programs), the Secretary 
shall make grants to institutions of higher education for 
leadership development awards. Individuals selected for such 
awards shall--
          [(A) have not less than 3 years of experience in 
        vocational education or in industrial training, or, in 
        the case of researchers, experience in social science 
        research which is applicable to vocational education;
          [(B) are currently employed or are reasonably assured 
        of employment in vocational education and have 
        successfully completed at least a baccalaureate degree 
        program;
          [(C) are recommended by their employer, or others, as 
        having leadership potential in the field of vocational 
        education and have been accepted for admission as a 
        graduate student in a program of higher education 
        approved by the Secretary; and
          [(D) have made a commitment to return to the field of 
        vocational education upon completion of education 
        provided through the leadership development award.
  [(2) For a period of not more than 3 years, stipends shall be 
paid to individuals selected for leadership development awards. 
Such stipends shall be paid (including allowances for tuition, 
nonrefundable fees, and other expenses for such individuals and 
their dependents) as may be determined to be consistent with 
prevailing practices.
  [(3) The Secretary may provide grants to institutions for 
stipends to individuals, which shall not exceed $9,000 per 
individual per academic year or its equivalent and $3,000 per 
individual per summer session or its equivalent.
  [(4) The Secretary shall approve the application of the 
vocational education program of an institution of higher 
education for the purposes of this section only upon finding 
that--
          [(A) the institution offers a comprehensive program 
        in vocational education with adequate supporting 
        services and disciplines such as education 
        administration, career guidance and vocational 
        counseling, research, and curriculum development;
          [(B) such program is designed to substantially 
        advance the objective of improving vocational education 
        through providing opportunities for graduate training 
        of vocational teachers, supervisors, and 
        administrators, and of university-level vocational 
        education teacher educators and researchers; and
          [(C) such programs are conducted by a school of 
        graduate study in the institution of higher education.
  [(5) The Secretary, in carrying out this subsection shall 
apportion leadership development awards to institutions of 
higher education equitably among the States, taking into 
account such factors as the State's vocational education 
enrollments and the need for additional vocational education 
personnel in the State.
  [(6) Each individual who receives a leadership development 
award under this subsection shall receive payments as provided 
in paragraph (2) for not more than a 3-year period during which 
such individual is--
          [(A) pursuing a full-time course of study in 
        vocational education in an approved institution of 
        higher education;
          [(B) maintaining satisfactory proficiency in such 
        course of study; and
          [(C) not engaged in gainful employment other than 
        part-time employment by such institution in teaching, 
        research, or similar activities.
  [(c) Vocational Educator Training Fellowships.--(1) The 
purpose of this subsection is to provide fellowships--
          [(A) to meet the need to provide adequate numbers of 
        teachers and related classroom instructors in 
        vocational education who are technologically current in 
        their fields;
          [(B) to take full advantage of the education which 
        has been provided to already certified teachers who are 
        unable to find employment in their fields of training 
        and of individuals employed in industry who have skills 
        and experience in vocational fields; and
          [(C) to encourage more instructors from minority 
        groups and teachers with skills and experience with 
        individuals of limited English proficiency to become 
        vocational education teachers.
  [(2) The Secretary shall make available fellowships, in 
accordance with the provisions of this subsection, to 
individuals (especially minority instructors and instructors 
with experience in teaching individuals who are economically 
disadvantaged, individuals with disabilities, students of 
limited English proficiency, and adult and juvenile criminal 
offenders) who--
          [(A)(i)(I) are employed in vocational education and 
        need an opportunity to improve or maintain 
        technological skills;
          [(II) are certified by a State, or were so certified 
        during the 10-year period preceding their application 
        for a fellowship under this subsection, as teachers in 
        secondary schools, area vocational education schools or 
        institutes, or in community or junior colleges; and
          [(III) have skills and experiences in vocational 
        fields so that such individuals can be trained to be 
        vocational educators; or
          [(ii) are employed in agriculture, business, or 
        industry (and may or may not hold a baccalaureate 
        degree) and have skills and experience in vocational 
        fields for which there is a need for vocational 
        educators;
          [(B) have been accepted in a program to become a 
        vocational educator by an institution of higher 
        education approved by the Secretary; and
          [(C) have made a commitment to work in the field of 
        vocational education upon completion of such program.
  [(2) The Secretary shall, for a period of not more than 2 
years, provide stipends to individuals who are awarded 
fellowships under this subsection (including such allowances 
for tuition, nonrefundable fees, subsistence and other expenses 
for such individuals and the dependents of such individuals) as 
the Secretary may determine to be consistent with prevailing 
practices.
  [(3) The Secretary shall approve an institution of higher 
education under this subsection if--
          [(A) the institution offers a comprehensive program 
        in vocational education with adequate supporting 
        services and disciplines such as education 
        administration, career guidance and vocational 
        counseling, research and curriculum development; and
          [(B) such program is available to individuals 
        receiving fellowships under this subsection so that 
        such individuals receive the same quality of education 
        and training provided for undergraduate students at 
        such institution who are preparing to become vocational 
        education teachers.
  [(4) The Secretary shall apportion the fellowships available 
under this subsection equitably among the States, taking into 
account such factors as the State's vocational education 
enrollments, and the need in the State for additional 
vocational educators, especially minority educators and 
individuals with skills and experience in teaching individuals 
of limited English proficiency.
  [(5) Individuals receiving fellowships under this subsection 
shall continue to receive payments provided in paragraph (2) 
only during such period as such individuals--
          [(A) are maintaining satisfactory proficiency;
          [(B) are devoting full time to study in the field of 
        vocational education in an institution of higher 
        education; and
          [(C) are not engaging in gainful employment other 
        than part-time employment by such institution.
  [(6)(A) The Secretary shall, before the beginning of each 
fiscal year for which amounts are appropriated or otherwise 
made available to carry out this subsection, publish a listing 
of--
          [(i) the areas of teaching in vocational education in 
        need of additional personnel;
          [(ii) the areas of teaching which will likely have 
        need of additional personnel in the future; and
          [(iii) areas of teaching in which technological 
        upgrading may be especially critical.
  [(B) The listing required by subparagraph (A) shall be based 
on information from the National Occupational Information 
Coordinating Committee, State occupational information 
coordinating committees, the vocational education data system 
established pursuant to section 421, and other appropriate 
sources.
  [(7) In selecting recipients for fellowships under this 
subsection, the Secretary shall, to the maximum extent 
practicable, grant fellowships to individuals seeking to become 
teachers or improve their skills in the areas identified in the 
listing required by paragraph (6)(A).
  [(d) Internships for Gifted and Talented Students.--(1) The 
purpose of this subsection is to provide stipends for 
internships to meet the need of attracting gifted and talented 
vocational education students into further study and 
professional development in the field of vocational education.
  [(2)(A) The Secretary shall, from recommendations provided by 
State directors of vocational education, select gifted and 
talented students from vocational education secondary and 
postsecondary programs to work as interns for Federal and State 
agencies, nationally recognized vocational education 
associations, or the National Center or Centers for Research in 
Vocational Education. Each such student shall receive a stipend 
for the period of the student's internship, which shall not 
exceed 9 months. Such stipend shall cover subsistence and other 
expenses for such individuals and shall be in such amount as 
the Secretary may determine to be consistent with prevailing 
practices.
  [(B) Each individual selected under this paragraph shall have 
been recommended as gifted and talented by a vocational 
educator at the secondary or postsecondary school the student 
attends.
  [(C) Each individual selected under this paragraph shall, 
during the period of such individual's internship, be provided 
with professional supervision by an individual qualified and 
experienced in the field of vocational education at the agency 
or institution at which the internship is offered.

[SEC. 415. BLUE RIBBON VOCATIONAL EDUCATION PROGRAMS.

  [(a) Information Dissemination.--The Secretary is authorized 
to disseminate information and exemplary materials regarding 
effective vocational education.
  [(b) Standards of Excellence.--(1) The Secretary, in 
consultation with the National Center or Centers for Research 
in Vocational Education (in this section referred to as the 
``National Center or Centers for Research''), the National 
Diffusion Network, and the Blue Ribbon Schools Program, is 
authorized to carry out programs to recognize secondary and 
postsecondary schools or programs which have established 
standards of excellence in vocational education and which have 
demonstrated a high level of quality. Such schools and programs 
shall be known as ``Blue Ribbon Vocational Programs''. The 
Secretary shall competitively select schools and programs to be 
recognized from among public and private schools or programs 
within the States and schools funded by the Department of the 
Interior.
  [(2) In the case of a private school or vocational education 
program that is designated as a Blue Ribbon Vocational 
Education Program, the Secretary shall make suitable 
arrangements to provide the award to such school.
  [(c) Awards.--(1) The Secretary, in consultation with the 
National Center or Centers for Research and the National 
Occupational Information Coordinating Committee (in this 
section referred to as the ``Committee''), is authorized to 
designate each fiscal year a category or several categories of 
vocational education, which may include tech-prep education, in 
which Blue Ribbon Vocational Education Program awards will be 
named. Such categories shall emphasize the expansion or 
strengthening of the participation of individuals who are 
members of special populations and may give special 
consideration to any of the following:
          [(A) program improvement;
          [(B) academic and occupational competencies; and
          [(C) other categories determined by the Secretary in 
        consultation with the National Center or Centers for 
        Research and the Committee.
  [(2) Within each category, the Secretary shall determine the 
criteria and procedures for selection. Selection for such 
awards shall be based solely on merit. Schools or programs 
selected for awards under this section shall not be required to 
be representative of the States.
  [(d) Consultation.--(1) The Secretary shall carry out the 
provisions of this section, including the establishment of the 
selection procedures, after consultation with appropriate 
outside parties.
  [(2) No award may be made under this section unless the local 
educational agency, area vocational education school, 
intermediate educational agency, tribal authority, Bureau of 
Indian Affairs, or appropriate State agency with jurisdiction 
over the school or program involved submits an application to 
the Secretary at such time, in such manner and containing such 
information as the Secretary may reasonably require.

[SEC. 416. DEVELOPMENT OF BUSINESS AND EDUCATION STANDARDS.

  [(a) Findings.--The Congress finds that, in order to meet the 
needs of business for competent entry-level workers who have 
received a quality vocational education, national standards 
should be developed for competencies in industries and trades.
  [(b) General Authority.--(1) The Secretary, in consultation 
with the Secretary of Labor, is authorized to establish a 
program of grants to industrial trade associations, labor 
organizations, or comparable national organizations for 
purposes of organizing and operating business-labor-education 
technical committees.
  [(2) The committees established with assistance under this 
section shall propose national standards for competencies in 
industries and trades. Such standards shall at least include 
standards for--
          [(A) major divisions or specialty areas identified 
        within occupations studied;
          [(B) minimum hours of study to be competent in such 
        divisions or specialty areas;
          [(C) minimum tools and equipment required in such 
        divisions or specialty areas;
          [(D) minimum qualifications for instructional staff; 
        and
          [(E) minimum tasks to be included in any course of 
        study purporting to prepare individuals for work in 
        such divisions or specialty areas.
  [(c) Matching Requirement.--Each recipient of a grant under 
this section shall agree to provide for the committee to be 
established under the grant an amount equal to the amount 
provided under the grant.
  [(d) Application.--Any industrial trade association, labor 
organization, national joint apprenticeship committee, or 
comparable national organization that desires to receive a 
grant under this section shall submit to the Secretary an 
application at such time, in such manner, and containing or 
accompanied by such information as the Secretary may reasonably 
require.

[SEC. 417. EDUCATIONAL PROGRAMS FOR FEDERAL CORRECTIONAL INSTITUTIONS.

  [(a) Program Authorized.--The Secretary is authorized to make 
grants to Federal correctional institutions in consortia with 
educational institutions, community-based organizations of 
demonstrated effectiveness, or business and industry, to 
provide education and training for criminal offenders in such 
institutions.
  [(b) Use of Funds.--Grants awarded pursuant to this section 
may be used for--
          [(1) basic education programs with an emphasis on 
        literacy instruction;
          [(2) vocational training programs;
          [(3) guidance and counseling programs; and
          [(4) supportive services for criminal offenders, with 
        special emphasis on the coordination of educational 
        services with agencies furnishing services to criminal 
        offenders after such offenders are released from 
        correctional institutions.
[SEC. 418. DROPOUT PREVENTION.

  [(a) Program Authorized.--The Secretary is authorized to make 
grants to partnerships between--
          [(1) local educational agencies or area vocational 
        education schools; and
          [(2) institutions of higher education or public or 
        private nonprofit organizations which have an 
        established record of vocational education strategies 
        that prevent students from dropping out of school.
  [(b) Use of Funds.--Grants awarded under this section shall 
be used to develop, implement, and operate vocational education 
programs designed to prevent students from dropping out of 
school. Such programs shall--
          [(1) serve special populations, including significant 
        numbers of economically disadvantaged dropout-prone 
        youth;
          [(2) provide inservice training for teachers and 
        administrators in dropout prevention; and
          [(3) disseminate information relating to successful 
        dropout prevention strategies and programs through the 
        National Dropout Prevention Network and the Center on 
        Adult, Career and Vocational Education of the 
        Educational Resources Information Clearinghouse.
  [(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to partnerships which--
          [(1) provide the special support services necessary 
        to help individual students successfully complete the 
        program such as mentoring, basic skills education, and 
        services which address barriers to learning; and
          [(2) utilize measures to integrate basic and academic 
        skills instruction with work experience and vocational 
        education.

[SEC. 419. MODEL PROGRAMS OF REGIONAL TRAINING FOR SKILLED TRADES.

  [(a) Program Authorized.--The Secretary is authorized to make 
grants to regional model centers which provide--
          [(1) training for skilled tradesmen within a region 
        serving several States, and
          [(2) technical assistance for programs which train 
        such tradesmen within a region serving several States.
  [(b) Use of Funds.--The regional model centers described in 
subsection (a) shall--
          [(1) provide training and career counseling for 
        skilled tradesmen in areas of skill shortages or 
        projected skilled shortages;
          [(2) provide prejob and apprenticeship training and 
        career counseling in skilled trades;
          [(3) upgrade specialized craft training; and
          [(4) improve the access of women, minorities, 
        economically disadvantaged individuals, individuals 
        with handicaps and ex-criminal offenders to trade 
        occupations and training.
  [(c) Special Rule.--In awarding grants under this section, 
and to the extent practicable, the Secretary shall ensure an 
equitable distribution of funds available under this section to 
the various skilled trades.

[SEC. 420. DEMONSTRATION PROJECTS FOR THE INTEGRATION OF VOCATIONAL AND 
                    ACADEMIC LEARNING.

  [(a) Program Authorized.--The Secretary is authorized to make 
grants to institutions of higher education, area vocational 
education schools, local educational agencies, secondary 
schools funded by the Bureau of Indian Affairs, State boards, 
public or private nonprofit organizations, or any consortia 
thereof, to develop, implement and operate programs using 
different models of curricula which integrate vocational and 
academic learning by--
          [(1) designing integrated curricula and courses;
          [(2) providing inservice training for teachers and 
        administrators in integrated curricula; and
          [(3) disseminating information regarding effective 
        integrative strategies to other school districts 
        through the National Diffusion Network established 
        under part B of title XIII of the Elementary and 
        Secondary Education Act of 1965.
  [(b) Requirements Relating to Grant Awards.--In awarding 
grants under this section, the Secretary shall ensure--
          [(1) an equitable geographic distribution of funds 
        awarded pursuant to this section;
          [(2) that programs supported under this section offer 
        significantly different approaches to integrating 
        curricula;
          [(3) that the programs supported under this section 
        serve individuals who are members of special 
        populations;
          [(4) that programs supported under this section 
        serve--
                  [(A) vocational students in secondary schools 
                and at postsecondary institutions;
                  [(B) individuals enrolled in adult programs; 
                and
                  [(C) single parents, displaced homemakers, 
                and single pregnant women; and
          [(5) that adequate evaluation measures will be 
        employed to measure the effectiveness of the curriculum 
        approaches supported under this section.

[SEC. 420A. COOPERATIVE DEMONSTRATION PROGRAMS.

  [(a) Program Authorized.--The Secretary is authorized to 
carry out, directly or through grants to or contracts with 
State and local educational agencies, postsecondary educational 
institutions, institutions of higher education, and other 
public and private agencies, organizations, and institutions, 
programs and projects which support--
          [(1) model programs providing improved access to 
        quality vocational education programs for those 
        individuals described in section 521(31) of this Act 
        and for men and women seeking nontraditional 
        occupations;
          [(2) examples of successful cooperation between the 
        private sector and public agencies in vocational 
        education, involving employers or consortia of 
        employers or labor organizations and building trade 
        councils, and State boards or eligible recipients 
        designed to demonstrate ways in which vocational 
        education and the private sector of the economy can 
        work together effectively to assist vocational 
        education students to attain the advanced level of 
        skills needed to make the transition from school to 
        productive employment, including--
                  [(A) work experience and apprenticeship 
                programs;
                  [(B) transitional worksite job training for 
                vocational education students which is related 
                to their occupational goals and closely linked 
                to classroom and laboratory instruction 
                provided by an eligible recipient;
                  [(C) placement services in occupations which 
                the students are preparing to enter;
                  [(D) where practical, projects (such as the 
                rehabilitation of public schools or housing in 
                inner cities or economically depressed rural 
                areas) that will benefit the public; and
                  [(E) employment-based learning programs;
          [(3) programs to overcome national skill shortages, 
        as designated by the Secretary in cooperation with the 
        Secretary of Labor, Secretary of Defense, and Secretary 
        of Commerce;
          [(4) model programs described in section 312(b)(1), 
        including child growth and development centers;
          [(5) grants to community-based organizations in 
        partnerships with local schools, institutions of higher 
        education, and businesses for programs and projects 
        that assist disadvantaged youths in preparing for 
        technical and professional health careers (which 
        partnerships should include in-kind contributions from 
        such schools, institutions, and businesses and involve 
        health professionals serving as preceptors and 
        counselors); and
          [(6) model programs providing improved access to 
        vocational education programs through centers to be 
        known as agriculture action centers, which programs 
        shall be operated under regulations developed by the 
        Secretary in consultation with the Secretary of Labor 
        and--
                  [(A) shall assist--
                          [(i) individuals who are adversely 
                        affected by farm and rural economic 
                        downturns;
                          [(ii) individuals who are dislocated 
                        from farming; and
                          [(iii) individuals who are dislocated 
                        from agriculturally-related businesses 
                        and industries that are adversely 
                        affected by farm and rural economic 
                        downturns;
                  [(B) shall provide services, including--
                          [(i) crisis management counseling and 
                        outreach counseling that would include 
                        members of the family of the affected 
                        individual;
                          [(ii) evaluation of vocational skills 
                        and counseling on enhancement of such 
                        skills;
                          [(iii) assistance in obtaining 
                        training in basic, remedial, and 
                        literacy skills;
                          [(iv) assistance in seeking 
                        employment and training in employment-
                        seeking skills; and
                          [(v) assistance in obtaining training 
                        related to operating a business or 
                        enterprise;
                  [(C) shall provide for formal and on-the-job 
                training to the extent practicable; and
                  [(D) shall be coordinated with activities and 
                discretionary programs conducted under title 
                III of the Job Training Partnership Act.
  [(b)(1) Projects described in clause (2) of subsection (a) 
may include institutional and on-the-job training, supportive 
services authorized by this Act, and such other necessary 
assistance as the Secretary determines to be necessary for the 
successful completion of the project.
  [(2) Not less than 25 percent of the cost of the 
demonstration programs authorized by this subpart shall be 
provided by the recipient of the grant or contract, and such 
share may be in the form of cash or in-kind contributions, 
including facilities, overhead, personnel, and equipment fairly 
valued.
  [(c) All programs assisted under this section shall be--
          [(1) of direct service to individuals enrolled in 
        such programs; and
          [(2) capable of wide replication by service 
        providers.
  [(d) The Secretary shall disseminate the results of the 
programs and projects assisted under this section in a manner 
designed to improve the training of teachers, other 
instructional personnel, counsellors, and administrators who 
are needed to carry out the purposes of this Act.

[Part C--Vocational Education and Occupational Information Data Systems

[SEC. 421. DATA SYSTEMS AUTHORIZED.

  [(a) Establishment of System.--(1) The Secretary shall, 
directly, or by grant, contract or cooperative agreement, 
establish a vocational educational data system (in this section 
referred to as the ``system''), using comparative information 
elements and uniform definitions, to the extent practicable.
  [(2) The Secretary shall establish the system not later than 
the end of the 6-month period beginning on the date of the 
enactment of the Carl D. Perkins Vocational and Applied 
Technology Education Act Amendments of 1990.
  [(3) The National Center for Education Statistics (in this 
section referred to as the ``National Center'') shall 
coordinate the development and implementation of the system.
  [(b) Functions of System.--Through the system, the Secretary 
shall collect data and analyze such data in order to provide--
          [(1) the Congress with information relevant to 
        policymaking; and
          [(2) Federal, State, and local agencies and Tribal 
        agencies with information relevant to program 
        management, administration and effectiveness with 
        respect to education and employment opportunities.
  [(c) Contents of System.--(1)(A) The system shall include 
information--
          [(i) describing the major elements of the vocational 
        education system on at least a national basis, 
        including information with respect to teachers, 
        administrators, students, facilities, and, to the 
        extent practicable, equipment; and
          [(ii) describing the condition of vocational 
        education with respect to the elements described in 
        clause (i).
  [(B) The information described in subparagraph (A) shall be 
provided, to the extent practicable, in the context of other 
educational data relating to the condition of the overall 
education system.
  [(C) The Secretary, in consultation with the Task Force, the 
National Center, and the Office of Adult and Vocational 
Education (in this section referred to as the ``Office''), 
shall modify existing general purpose and program data systems 
to ensure that an appropriate vocational education component is 
included in the design, implementation and reporting of such 
systems in order to fulfill the information requirements of 
this section.
  [(2) The information system shall include data reflecting the 
extent of participation of the following populations:
          [(A) women;
          [(B) Indians;
          [(C) individuals with handicaps;
          [(D) individuals of limited English proficiency;
          [(E) economically disadvantaged students (including 
        information on students in rural and urban areas);
          [(F) adults who are in need of training and 
        retraining;
          [(G) single parents;
          [(H) youths incarcerated in juvenile detention or 
        correctional facilities or criminal offenders who are 
        serving time in correctional institutions;
          [(I) individuals who participate in programs designed 
        to eliminate gender bias and sex stereotyping in 
        vocational education;
          [(J) minorities; and
          [(K) displaced homemakers.
  [(3) The Secretary, in consultation with the National Center 
and the Office, shall maintain and update the system at least 
every 3 years and assure the system provides the highest 
quality statistics and is adequate to meet the information 
needs of this Act. In carrying out the requirements of this 
paragraph, the Secretary shall ensure that appropriate 
methodologies are used in assessments of students of limited 
English proficiency and students with handicaps to ensure valid 
and reliable comparisons with the general student population 
and across program areas. With respect to standardized tests 
and assessments administered under this Act, test results shall 
be used as 1 of multiple independent indicators in assessment 
of performance and achievement.
  [(d) Assessment of International Competitiveness.--The Center 
shall carry out an assessment of data availability and adequacy 
with respect to international competitiveness in vocational 
skills. To the extent practicable, the assessment shall include 
comparative policy-relevant data on vocational education in 
nations which are major trade partners of the United States. 
The assessment shall at a minimum identify available 
internationally comparative data on vocational education and 
options for obtaining and upgrading such data. The results of 
the assessment required by this paragraph shall be reported to 
the appropriate committees of the Congress not later than 
August 31, 1994.
  [(e) Use of and Compatibility With Other Data Collection 
Systems.--(1) In establishing, maintaining, and updating the 
system, the Secretary shall--
          [(A) use existing data collection systems operated by 
        the Secretary and, to the extent appropriate, data 
        collection systems operated by other Federal agencies;
          [(B) conduct additional data collection efforts to 
        augment the data collection systems described in 
        subparagraph (A) by providing information necessary for 
        policy analysis required by this section; and
          [(C) use any independent data collection efforts that 
        are complementary to the data collection efforts 
        described in subparagraphs (A) and (B).
  [(2) In carrying out the responsibilities imposed by this 
part, the Secretary shall cooperate with the Secretary of 
Commerce, the Secretary of Labor, and the National Occupational 
Information Coordinating Committee established under section 
422 with respect to the development of an information system 
under section 463 of the Job Training Partnership Act to ensure 
that the information system operated under this section is 
compatible with and complementary to other occupational supply 
and demand information systems developed or maintained with 
Federal assistance. The Secretary shall also ensure that the 
system allows international comparisons to the extent feasible.
  [(3) The Secretary shall assure that the system, to the 
extent practicable, uses data definitions common to State 
plans, performance standards, local applications and 
evaluations required by this Act. The data in the system shall 
be available for use in preparing such plans, standards, 
applications, and evaluations.
  [(f) Reports.--The Secretary shall report to the Congress at 
least biennially with respect to--
          [(1) the performance of the system established under 
        subsection (a); and
          [(2) strategies to improve the system and expand its 
        implementation.
  [(g) Vocational Education Advisory Task Force.--(1) The 
Secretary, in consultation with the National Center and the 
Office shall establish a Vocational Education Advisory Task 
Force.
  [(2) The Secretary shall establish the Task Force before the 
expiration of the 90-day period beginning on the date of the 
enactment of the Carl D. Perkins Vocational and Applied 
Technology Education Act Amendments of 1990, and shall 
terminate upon the expiration of the 2-year period beginning on 
such date.
  [(3) The Task Force shall advise the Secretary on the 
development and implementation of an information reporting and 
accounting system responsive to the diverse programs supported 
by this Act.
  [(4) The membership of the Task Force shall be representative 
of Federal, State, and local agencies and Tribal agencies 
affected by technological information, representatives of 
secondary and vocational postsecondary educational 
institutions, representatives of vocational student 
organizations, representatives of special populations, 
representatives of adult training programs funded under this 
Act, and representatives of apprenticeships, business, and 
industry.
  [(5) The National Center shall provide the Task Force with 
staff for the purpose of carrying out its functions.
  [(h)(1) Assessment of Educational Progress Activities.--As a 
regular part of its assessments, the National Assessment of 
Educational Progress shall collect and report information for 
at least a nationally representative subsample of vocational 
education students, including students who are members of 
special populations, which shall allow for fair and accurate 
assessment and comparison of the educational achievement of 
vocational education students and other students in the areas 
assessed. Such assessment may include international 
comparisons.
  [(2)(A) Notwithstanding any provision of section 406 of the 
General Education Provisions Act, the Commissioner of Education 
Statistics may authorize a State educational agency or a 
consortium of such agencies to use items and data from the 
National Assessment of Educational Progress for the purpose of 
evaluating a course of study related to vocational education, 
if the Commissioner has determined, in writing, that such use 
will not--
          [(i) result in the identification of characteristics 
        or performance of individual students or schools;
          [(ii) result in the ranking or comparing of schools 
        or local educational agencies;
          [(iii) be used to evaluate the performance of 
        teachers, principals, or other local educators for the 
        purpose of dispensing rewards or punishments; or
          [(iv) corrupt or harm the use and value of data 
        collected for the National Assessment of Educational 
        Progress.
  [(B) Not later than 60 days after making an authorization 
under subsection (a), the Commissioner shall submit to the 
Committee on Education and Labor of the House of 
Representatives and to the Committee on Labor and Human 
Resources of the Senate, a report which contains--
          [(i) a copy of the request for such authorization;
          [(ii) a copy of the written determination under 
        subsection (a); and
          [(iii) a description of the details and duration of 
        such authorization.
  [(C) The Commissioner may not grant more than one such 
authorization in any fiscal year and shall ensure that the 
authorized use of items or data from the National Assessment is 
evaluated for technical merit and for its affect on the 
National Assessment of Educational Progress. The results of 
such evaluations shall be promptly reported to the committees 
specified in subparagraph (B).

       [national occupational information coordinating committee

  [Sec. 422. (a) There is established a National Occupational 
Information Coordinating Committee (in this section referred to 
as the ``Committee'') which shall consist of the Assistant 
Secretary for Vocational and Adult Education, the Commissioner 
of the Rehabilitative Services Administration, the Director of 
the Office of Bilingual Education and Minority Language 
Affairs, the Assistant Secretary for Postsecondary Education, 
and the Administrator of the National Center for Education 
Statistics of the Department of Education, the Commissioner of 
Labor Statistics and the Assistant Secretary for Employment and 
Training of the Department of Labor, the Undersecretary for 
Small Community and Rural Development of the Department of 
Agriculture, the Assistant Secretary for Economic Development 
of the Department of Commerce, and the Assistant Secretary of 
Defense (Force Management and Personnel). The Committee, with 
funds available to it under section 451, shall provide funds, 
on an annual basis, to State occupational information 
coordinating committees and to eligible recipients and shall--
          [(1) in the use of program data and employment data, 
        improve coordination and communication among 
        administrators and planners of programs authorized by 
        this Act and by the Job Training Partnership Act, 
        employment security agency administrators, research 
        personnel, and personnel of employment and training 
        planning and administering agencies (including 
        apprenticeship training agencies) at the Federal, 
        State, and local levels;
          [(2) develop and implement, in cooperation with State 
        and local agencies, an occupational information system 
        to meet the common occupational information needs of 
        vocational education programs and employment and 
        training programs (including postsecondary employment 
        and training programs) at the national, State, and 
        local levels, which system shall include data on 
        occupational demand and supply based on uniform 
        definitions, standardized estimating procedures, and 
        standardized occupational classifications, including 
        regularly updated data on employment demand for 
        agribusiness;
          [(3) conduct studies to improve the quality and 
        delivery of occupational information systems to assist 
        economic development activities, and examine the 
        effects of technological change on new and existing 
        occupational areas and the required changes in 
        knowledge and job skills;
          [(4) continue training, technical assistance 
        activities to support comprehensive career guidance, 
        and vocational counseling programs designed to promote 
        improved career decisionmaking by individuals 
        (especially in areas of career information delivery and 
        use);
          [(5) coordinate the efforts of Federal, State, and 
        local agencies and Tribal agencies with respect to such 
        programs; and
          [(6) assist State occupational information 
        coordinating committees established pursuant to 
        subsection (b).
  [(b) Each State receiving assistance under this Act shall 
establish a State occupational information coordinating 
committee composed of representatives of the State board, the 
State employment security agency, the State economic 
development agency, the State job training coordinating 
council, the State board or agency governing higher education, 
and the agency administering the vocational rehabilitation 
program. Such committee shall, with funds available to it from 
the National Occupational Information Coordinating Committee 
established pursuant to subsection (a)--
          [(1) implement an occupational information system in 
        the State which will meet the common needs for the 
        planning for, and the operation of, programs of the 
        State board assisted under this Act, of the 
        administering agencies under the Job Training 
        Partnership Act and of the State board or agency 
        governing higher education; and
          [(2) use the occupational information system to 
        implement a career information delivery system.
  [(c)(1)(A) The Committee, in consultation with the National 
Center or Centers for Research in Vocational Education, 
appropriate Federal agencies, and the States, shall establish a 
demonstration program to monitor educational outcomes for 
vocational education using wage and other records. The 
Committee shall develop procedures for establishing and 
maintaining nationally accessible information on a sample of 
wage and earning records maintained by States on earnings, 
establishment and industry affiliation and geographical 
location, and on educational activities. This information shall 
be collected on at least an annual basis. The program shall 
ensure that a scientific sample of vocational education 
students and nonvocational education students, local 
educational agencies, and States participate in the program. 
The Committee shall maintain, analyze, and report data 
collected under the program and shall provide technical 
assistance to States, local educational agencies, and others 
that wish to participate in the study.
  [(B)(i) Participation in the program described in 
subparagraph (A) shall be voluntary. The Committee shall enter 
into an agreement with any State which desires to carry out a 
study for the State under this subsection. Each such agreement 
shall contain provisions designed to assure--
          [(I) that the State will participate in the study;
          [(II) that the State will pay from non-Federal 
        sources the non-Federal share of participation; and
          [(III) that the State agrees to the terms and 
        conditions specified in this section.
  [(ii) For each fiscal year, the non-Federal share for the 
purpose of this program shall be the cost of conducting the 
study in the State, including the cost of administering the 
assessment for the State sample and the cost of coordination 
within the State.
  [(2) The program shall provide for an independent evaluation 
conducted by the Office of Technology Assessment of the 
Congress to assess the validity, fairness, accuracy, and 
utility of the data it produces. The report shall also describe 
the technical problems encountered and a description of what 
was learned about how to best implement and utilize data from 
the program.
  [(3) The provision of wage and other records to the Committee 
by a State employment security agency shall be voluntary and 
pursuant to an agreement between the Committee and the agency. 
Such agreement shall take into consideration issues such as--
          [(A) reimbursing the State employment security agency 
        for the costs to the agency of providing the 
        information; and
          [(B) compliance with safeguards established by the 
        State employment security agency and determined by the 
        Secretary of Labor to be appropriate to ensure that the 
        information disclosed to the Committee is used only for 
        the purposes of this subsection.
  [(4) The Executive Director of the Committee, in consultation 
with the Secretary, shall ensure that all personally 
identifiable information about students, their educational 
performance and their families and information with respect to 
individual schools shall remain confidential in accordance with 
the provisions of section 552 of title 5, United States Code. 
The data gathered under this subsection shall not be used to 
rank, compare, or otherwise evaluate individual students or 
individual schools. No individual may be included in the 
program without that individual's written consent. At least 
once every 3 years the Secretary shall remind participants in 
writing of their inclusion in the program.
  [(d) Data Collection System.--In the development and design 
of a system to provide data on graduation or completion rates, 
job placement rates from occupationally specific programs, 
licensing rates, and awards of high school graduate equivalency 
diplomas (GED), each State board for higher education shall 
develop a data collection system the results of which can be 
integrated into the occupational information system developed 
under this section.
  [(e) Of amounts reserved under section 451(a)(3)(A) to carry 
out the provisions of this section, the Committee shall use--
          [(1) to support State occupational information 
        coordinating committees for the purpose of operating 
        State occupational information systems and career 
        information delivery systems, the greater of--
                  [(A) an amount equal to the aggregate amount 
                appropriated or otherwise made available for 
                that purpose for the fiscal year 1990; or
                  [(B) an amount equal to 75 percent of the 
                aggregate amount appropriated or otherwise made 
                available to carry out this section; and
          [(2) for purposes of carrying out subsection (c)--
                  [(A) an amount equal to not less than 10 
                percent of the amounts available to carry out 
                this section; or
                  [(B) if the amount remaining after carrying 
                out paragraph (1) is insufficient to provide 
                the amount described in subparagraph (A), such 
                remaining amount.

[SEC. 423. INFORMATION BASE FOR VOCATIONAL EDUCATION DATA SYSTEM.

  [(a) Information Relating to Students With Handicaps.--(1) 
The Secretary shall ensure that adequate information on access 
to vocational education by secondary school students with 
handicaps is maintained in the data system established under 
section 421.
  [(2) The system shall include detailed information obtained 
through scientific sample surveys concerning--
          [(A) types of programs available; and
          [(B) enrollment of students with handicaps by--
                  [(i) type of program;
                  [(ii) type of instructional setting; and
                  [(iii) type of handicap.
  [(3)(A) The General Accounting Office shall conduct a 3-year 
study, using representative samples, of the effects of the 
amendments made by title II of the Carl D. Perkins Vocational 
and Applied Technology Education Amendments of 1990 on the 
access to and participation in vocational education of 
disadvantaged students, students with handicaps, students of 
limited English proficiency, and, to the extent practicable, 
foster children.
  [(B) The study shall include consideration of issues such 
as--
          [(i) the proportion of students described in 
        paragraph (1) who are enrolled in vocational education 
        programs during the first 3 program years to which the 
        amendments made by the Carl D. Perkins Vocational and 
        Applied Technology Education Amendments Act of 1990 
        apply compared to the program year preceding such 
        years;
          [(ii) the number of such students who enroll in 
        vocational education programs for the first time during 
        the period of study;
          [(iii) the number of such students who participate in 
        vocational education programs that lead to an 
        occupational skill or job placement;
          [(iv) the extent to which academics are incorporated 
        with vocational education courses;
          [(v) the manner in which vocational education 
        programs have addressed special needs of such students 
        for supportive services, material, and equipment;
          [(vi) the comparability of vocational education 
        services provided to such students with vocational 
        education services provided to students who are not 
        members of special populations; and
          [(vii) in the case of students with handicaps--
                  [(I) the types and severity of handicaps of 
                such students who enroll in vocational 
                education programs;
                  [(II) the extent to which such students 
                participate in the same vocational education 
                programs as students who do not have handicaps;
                  [(III) the number of such students with 
                individualized education programs developed 
                under section 614(a)(5) of the Individuals with 
                Disabilities Education Act who have 
                individualized education programs that include 
                vocational education programs;
                  [(IV) the extent to which special personnel 
                such as special education personnel or 
                vocational rehabilitation personnel assist in 
                the selection and provision of vocational 
                education programs with respect to such 
                students;
                  [(V) the extent to which such students and 
                their parents are involved in selecting 
                vocational education courses and programs;
                  [(VI) the number of such students who have 
                returned to secondary vocational education 
                programs after dropping out of or formally 
                exiting the local educational system; and
                  [(VII) the ages of such students.
  [(C) In conducting the study required by this subsection, the 
General Accounting Office may consider and include information 
from other sources to address or augment the issues considered 
in the study.
  [(4) The General Accounting Office shall submit to the 
appropriate committees of the Congress a report describing the 
results of the study conducted as required by this subsection 
not later than July 1, 1995.
  [(b) Information Relating to Students Who Have Completed 
Secondary School.--(1) To carry out the provisions of this 
section, in accordance with the provisions of section 3 of the 
Technology Assessment Act of 1972, the Office of Technology 
Assessment shall conduct an assessment of a sample of tests 
designed to be administered to students who have completed 
secondary school to assess the level of technical knowledge 
relating to broad technical fields possessed by such students. 
The assessment shall include at least--
          [(A) an assessment of the quality, validity, 
        reliability, and predictive capability of widely used 
        vocational aptitude and competency tests and 
        assessments, with particular attention to--
                  [(i) the use of such assessments with respect 
                to students who are members of special 
                populations; and
                  [(ii) patterns of actual usage with respect 
                to entry into vocational education programs, 
                promotion within such programs, completion of 
                such programs, and placement in appropriate 
                positions;
          [(B) identification of trends in such tests and 
        assessments, including any relationship to vocational 
        education curricula; and
          [(C) identification of policy options for--
                  [(i) strengthening development and quality of 
                such tests and assessments to ensure that such 
                tests and assessments are conducted in an 
                impartial manner that does not penalize 
                students on the basis of race, sex, or economic 
                background; and
                  [(ii) means of sustaining competition in the 
                development of such tests and assessments.
          [(2) The results of the study required by paragraph 
        (1) shall be reported to the appropriate committees of 
        the Congress not later than September 30, 1994.

[SEC. 424. MISCELLANEOUS PROVISIONS.

  [(a) Collection of Information at Reasonable Cost.--The 
Secretary shall take such action as may be necessary to secure 
at reasonable cost the information required by this part. To 
ensure reasonable cost, the Secretary, in consultation with the 
Vocational Education Task Force, the National Center for 
Education Statistics, the Office of Vocational and Adult 
Education, and the National Occupational Information 
Coordinating Committee shall determine the methodology to be 
used and the frequency with which information is to be 
collected.
  [(b) Cooperation of States.--All States receiving assistance 
under this Act shall cooperate with the Secretary in 
implementing the information systems developed pursuant to this 
part.

                 [Part E--Bilingual Vocational Training

                          [Program Authorized

  [Sec. 441. (a)(1) From the sums made available to carry out 
this section in each fiscal year under section 3(d), the 
Secretary is authorized to make grants to and to enter into 
contracts with appropriate State agencies, local educational 
agencies, postsecondary educational institutions, private 
nonprofit vocational training institutions, and other nonprofit 
organizations specially created to serve individuals who 
normally use a language other than English, for bilingual 
vocational education and training for individuals with limited 
English proficiency to prepare such individuals for jobs in 
recognized occupations and new and emerging occupations. Such 
training shall include instruction in the English language to 
ensure that participants in such training will be equipped to 
pursue such occupations in an English language environment. The 
Secretary may also enter into contracts with private for-profit 
agencies and organizations for bilingual vocational education 
and training programs.
  [(2) Grants and contracts under this subsection may be used 
for--
          [(A) bilingual vocational training programs for 
        individuals who have completed or left elementary or 
        secondary school and who are available for education in 
        a postsecondary educational institution;
          [(B) bilingual vocational education and training 
        programs for individuals who have already entered the 
        labor market and who desire or need training or 
        retraining to achieve year-round employment, adjust to 
        changing manpower needs, expand their range of skills, 
        or advance in employment; and
          [(C) training allowances for participants in 
        bilingual vocational training programs.
  [(b)(1) From the sums made available to carry out this 
section, the Secretary is authorized to make grants to and to 
enter into contracts with State agencies and public and private 
nonprofit educational institutions and to enter into contracts 
with private for-profit educational institutions to assist such 
entities in conducting training for instructors of bilingual 
vocational education and training programs.
  [(2) Grants and contracts under this subsection may be used 
for--
          [(A) preservice and inservice training for 
        instructors, aides, counselors, or other ancillary 
        personnel participating or preparing to participate in 
        bilingual vocational training programs; and
          [(B) fellowships and traineeships for individuals 
        participating in preservice or inservice training.
  [(3) The Secretary may not make a grant or enter into a 
contract under this subsection unless the Secretary determines 
that the applicant has an ongoing vocational training program 
in the field in which participants will be trained and can 
provide instructors with adequate language capabilities in the 
language other than English to be used in the program.
  [(c)(1) From the sums made available to carry out this 
section, the Secretary is authorized to make grants to and to 
enter into contracts with State agencies, educational 
institutions, and appropriate nonprofit organizations, and to 
enter into contracts with private for-profit organizations and 
individuals, to assist in the development of instructional and 
curriculum materials, methods, or techniques for bilingual 
vocational training.
  [(2) Grants and contracts under this subsection may be used 
for--
          [(A) research in bilingual vocational training;
          [(B) training programs to familiarize State agencies 
        and training institutions with research findings and 
        with successful pilot and demonstration projects in 
        bilingual vocational education and training; and
          [(C) experimental, developmental, pilot, and 
        demonstration projects.
  [(d)(1) Any eligible entity which desires to receive a grant 
from the Secretary under subsection (a), (b), or (c) shall 
submit an application to the Secretary in such form, at such 
times, and accompanied by such information as the Secretary may 
require. Such application shall provide that the activities and 
services for which assistance is sought will be administered by 
or under the supervision of the applicant.
  [(2) An application pursuant to subsection (a) shall (A) set 
forth a program of such size, scope, and design as will make a 
substantial contribution toward carrying out the purposes of 
this section, and (B) be submitted to the State board or agency 
under section 111 for review and comment. Any such comments 
shall be included for submission to the Secretary.
  [(3) An application pursuant to subsection (c) shall set 
forth the qualifications of staff responsible for any such 
program.
  [(4) An application pursuant to subsection (b) shall--
          [(A) describe the capabilities of the applicant 
        (including vocational training or education courses 
        offered by the applicant, accreditation, and any 
        certification of courses by appropriate State 
        agencies);
          [(B) describe the qualifications of principal staff 
        responsible for any program under subsection (b); and
          [(C) describe minimum qualifications for individuals 
        participating or to participate in any program, 
        describe the selection process for such individuals, 
        and the projected amount of the fellowships or 
        traineeships, if any.
  [(5) Prior to making grants or contracts under subsection (a) 
or (b), the Secretary shall consult with the State board under 
section 111 to ensure an equitable distribution of assistance 
among populations of individuals with limited English 
proficiency within the State.
  [(6) The Secretary may approve an application for assistance 
under this section only if the application meets the 
requirements set forth under this section. An amendment to an 
application shall, except as the Secretary may otherwise 
provide, be subject to approval in the same manner as the 
initial application.
  [(e)(1) The Secretary shall administer programs under this 
section in consultation with the Secretary of Labor.
  [(2) Programs of bilingual vocational education and training 
under this section in the Commonwealth of Puerto Rico may 
provide for the needs of students of limited Spanish 
proficiency.
  [(3) The Secretary of Education, in consultation with the 
Secretary of Labor, shall gather and disseminate information 
concerning the status of bilingual vocational education in all 
geographic regions and shall evaluate the impact of bilingual 
vocational education on occupational shortages of skilled 
workers, the unemployment or underemployment of individuals 
with limited English proficiency, and the ability of such 
individuals to acquire sufficient job skills and English 
language skills to fully contribute to the economy. The 
Secretary of Education and the Secretary of Labor shall 
annually report their findings to the President and the 
Congress.
  [(f)(1) For each fiscal year, not less than 75 per centum of 
sums appropriated for the purposes of this section shall be 
available only for grants and contracts under subsection (a).
  [(2) For each fiscal year, not less than 15 per centum of the 
sums appropriated for the purposes of this section shall be 
available only for grants and contracts under subsection (b).
  [(3) For each fiscal year, not less than 10 per centum of 
sums appropriated for the purposes of this section shall be 
available only for grants and contracts under subsection (c).

                      [Part F--General Provisions

[SEC. 451. DISTRIBUTION OF ASSISTANCE.

  [(a) In General.--Subject to the provisions of subsection (b) 
and section 504, of the amounts available pursuant to section 
3(e)(1) for any fiscal year for this title--
          [(1) 30 percent shall be available for part A, 
        relating to research and development, of which 90 
        percent shall be available for section 404, relating to 
        the National Center or Centers;
          [(2) 30 percent shall be available for part B, 
        relating to demonstration programs; and
          [(3) 40 percent shall be available for part C, 
        relating to vocational education and occupational 
        information data systems, of which not less than--
                  [(A) 22 percent of the total amount 
                appropriated pursuant to the authority of 
                section 3(e) shall be available to carry out 
                section 422, relating to the National 
                Occupational Information Coordinating 
                Committee;
                  [(B) 8 percent shall be available to carry 
                out the provisions of section 421, relating to 
                data systems; and
                  [(C) 10 percent shall be available to carry 
                out the provisions of section 402(c), relating 
                to the National Network for Curriculum 
                Coordination.
  [(b) Hold Harmless.--Notwithstanding the provisions of 
subsection (a), the amounts available to carry out the 
activities described in subsection (a)(1) and in subsections 
(a)(3)(A) and (a)(3)(C) shall be at least equal to the amounts 
made available for such activities in the fiscal year 1990.

                      [TITLE V--GENERAL PROVISIONS

               [Part A--Federal Administrative Provisions

                               [Payments

  [Sec. 501. (a) The Secretary shall pay from its allotment 
under section 101 to each State for any fiscal year for which 
the State has a State plan approved in accordance with section 
114 (including any amendment to such plan) the Federal share of 
the costs of carrying out the State plan.
  [(b) The Secretary shall pay to each State council of a State 
which has a State plan approved in accordance with section 114, 
from its allotment under section 112(f), an amount equal to the 
reasonable amounts expended by the State council in carrying 
out its functions under this Act in such fiscal year.

                         [maintenance of effort

  [Sec. 502. (a) No payments shall be made under this Act for 
any fiscal year to a State unless the Secretary determines that 
the fiscal effort per student or the aggregate expenditures of 
such State for vocational education for the fiscal year 
preceding the fiscal year for which the determination is made, 
equaled or exceeded such effort or expenditures for vocational 
education for the second preceding fiscal year.
  [(b) The Secretary may waive the requirements of this section 
(with respect to not more than 5 percent of expenditures by any 
State educational agency) for one fiscal year only, upon making 
a determination that such waiver would be equitable due to 
exceptional or uncontrollable circumstances affecting the 
ability of the applicant to meet such requirements, such as a 
natural disaster or an unforeseen and precipitous decline in 
financial resources. No level of funding permitted under such a 
waiver may be used as the basis for computing the fiscal effort 
required under this section for years subsequent to the year 
covered by such waiver; such fiscal effort shall be computed on 
the basis of the level of funding which would, but for such 
waiver, have been required.

                      [Authority to Make Payments

  [Sec. 503. Any authority to make payments or to enter into 
contracts under this Act shall be available only to such extent 
or in such amounts as are provided in advance appropriation 
Acts.

[SEC. 504. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

  [(a) In General.--(1) The Secretary shall convene regional 
meetings to obtain public involvement in the development of 
proposed regulations under the Carl D. Perkins Vocational and 
Applied Technology Education Act Amendments of 1990. Such 
meetings shall include individuals and representatives of 
groups involved in vocational education programs under this 
Act, such as Federal, State, tribal and local administrators, 
parents, teachers, members of local boards of education and 
special populations.
  [(2) During each meeting described in paragraph (1), the 
Secretary shall provide for a comprehensive discussion and 
exchange of information on at least 4 key issues, selected by 
the Secretary, concerning implementation of the Carl D. Perkins 
Vocational and Applied Technology Education Act Amendments of 
1990. The Secretary shall take into account information 
received at such meetings in the development of proposed 
regulations, and shall publish a summary of such information in 
the Federal Register together with such proposed regulations.
  [(b) Draft Regulations.--After holding regional meetings and 
before publishing proposed regulations in the Federal Register, 
the Secretary shall prepare draft regulations under this Act 
and submit regulations on at least 2 key issues to a negotiated 
rulemaking process. The Secretary shall follow the guidance 
provided in the Administrative Conference of the United States 
in Recommendation 82-4 and 85-5, ``Procedures for Negotiating 
Proposed Regulations'' (1 C.F.R. 305.82-4 and 85-5) and any 
successor recommendation, regulation, or law. Participants in 
the negotiation process shall be chosen by the Secretary from 
among participants in the regional meetings, representing the 
groups described in subsection (a)(1) and all geographic 
regions. At least 10 participants, 1 from each of the regions 
served by a regional office established pursuant to section 416 
of the Department of Education Organization Act, representing 
the groups described in subsection (a)(1), shall be chosen 
under the preceding sentence. The negotiation process shall be 
conducted in a timely manner in order that final regulations 
may be issued by the Secretary within the 360-day period 
required by section 437(e) of the General Education Provisions 
Act.
  [(c) Special Rule.--If a regulation must be issued within a 
very limited time period to assist States and eligible 
recipients with the operation of a program under this Act, the 
Secretary may issue a regulation without fulfilling the 
requirements of subsections (a) and (b), but shall immediately 
convene regional meetings to review the regulation before such 
regulation is issued in final form.
  [(d) Applicability of Federal Advisory Committee Act.--The 
Federal Advisory Committee Act shall not apply to activities 
carried out under this section.
  [(e) Reservation of Amounts.--For the fiscal year 1991, the 
Secretary may reserve for purposes of carrying out subsection 
(b) not more than $300,000 from amounts made available under 
section 3(e).

[SEC. 505. REQUIREMENTS RELATING TO REPORTS, PLANS, AND REGULATIONS.

  [The General Accounting Office shall, upon the request of any 
Member of the Congress--
          [(1) investigate the circumstances of any failure by 
        the Secretary to submit any report or research finding 
        or issue any regulation required by this Act by the 
        time specified in the provision of this Act requiring 
        the submission of such report or research finding or 
        issuance of such regulation; and
          [(2) submit to the Committee on Education and Labor 
        of the House of Representatives and the Committee on 
        Labor and Human Resources of the Senate a report 
        containing the results of any investigation conducted 
        pursuant to paragraph (1), including an identification 
        of the cause of delay and of the office or offices of 
        the Department of Education or of the Office of 
        Management and Budget responsible for the delay.

[SEC. 506. FEDERAL LAWS GUARANTEEING CIVIL RIGHTS.

  [Nothing in this Act shall be construed to be inconsistent 
with appropriate Federal laws guaranteeing civil rights.

[SEC. 507. STUDENT ASSISTANCE AND OTHER FEDERAL PROGRAMS.

  [(a) Attendance Costs Not Treated as Income or Resources.--
The portion of any student financial assistance received under 
this Act that is made available for attendance costs described 
in subsection (b) shall not be considered as income or 
resources in determining eligibility for assistance under any 
other program funded in whole or in part with Federal funds.
  [(b) Attendance Costs.--The attendance costs described in 
this subsection are--
          [(1) tuition and fees normally assessed a student 
        carrying the same academic workload as determined by 
        the institution, and including costs for rental or 
        purchase of any equipment, materials, or supplies 
        required of all students in the same course of study; 
        and
          [(2) an allowance for books, supplies, 
        transportation, dependent care, and miscellaneous 
        personal expenses for a student attending the 
        institution on at least a half-time basis, as 
        determined by the institution.

[SEC. 508. FEDERAL MONITORING.

  [The Secretary shall make every effort to provide adequate 
monitoring of compliance by recipients of assistance under this 
Act with the provisions of this Act. Such monitoring activities 
shall be developed by the Secretary in consultation with 
parents, students, and advocacy organizations, and shall--
          [(1) consider items such as whether the provisions of 
        the State plan are being fully implemented;
          [(2) consider items such as whether the State board's 
        monitoring of local recipients of assistance under this 
        Act is adequate to assure full compliance with the 
        provisions of this Act by such recipients;
          [(3) consider items such as whether the State-level 
        coordinators for individuals who are members of special 
        populations are able to review the local plans for 
        serving such individuals;
          [(4) consider items such as whether the other State 
        responsibilities under this Act are being implemented; 
        and
          [(5) provide for input from students, parents, 
        teachers, and special populations in the States.

                [PART B--STATE ADMINISTRATIVE PROVISIONS

[SEC. 511. JOINT FUNDING.

  [(a) General Authority.--Funds made available to States under 
this Act may be used to provide additional funds under an 
applicable program if--
          [(1) such program otherwise meets the requirements of 
        this Act and the requirements of the applicable 
        program;
          [(2) such program serves the same individuals that 
        are served under this Act;
          [(3) such program provides services in a coordinated 
        manner with services provided under this Act; and
          [(4) such funds would be used to supplement, and not 
        supplant, funds provided from non-Federal sources.
  [(b) Applicable Programs.--For the purposes of this section, 
the term ``applicable program'' means any program under any of 
the following provisions of law:
          [(1) Section 123, title II, and title III of the Job 
        Training Partnership Act.
          [(2) The Wagner-Peyser Act.
  [(c) Issuance of Regulations.--Notwithstanding the provisions 
of section 504, the Secretary shall develop regulations to be 
issued under this section in consultation with the Secretary of 
Labor.
  [(d) Use of Funds as Matching Funds.--For the purposes of 
this section, the term ``additional funds'' includes the use of 
funds as matching funds.

[SEC. 512. REVIEW OF REGULATIONS.

  [(a) Establishment of Review Committee.--Except as provided 
in subsection (b), before any State publishes any proposed or 
final State rule or regulation pursuant to this Act, the State 
shall establish and convene a State Committee of Practitioners 
(in this section referred to as the ``Committee'') for the 
purpose of reviewing such rule or regulation. The Committee 
shall be selected from nominees solicited from State 
organizations representing school administrators, teachers, 
parents, members of local boards of education, and appropriate 
representatives of institutions of higher education. The 
Committee shall consist of--
          [(1) representatives of local educational agencies, 
        who shall constitute a majority of the members of the 
        Committee;
          [(2) school administrators;
          [(3) teachers;
          [(4) parents;
          [(5) members of local boards of education;
          [(6) representatives of institutions of higher 
        education; and
          [(7) students.
  [(b) Limited Exception.--In an emergency, where a regulation 
must be issued within a very limited time period to assist 
eligible recipients with the operation of a program, the State 
may issue a regulation without fulfilling the requirements of 
subsection (a), but shall immediately convene the Committee to 
review the regulation before it is issued in final form.

[SEC. 513. IDENTIFICATION OF STATE-IMPOSED REQUIREMENTS.

  [Any State rule or policy imposed on the administration or 
operation of programs funded by this Act, including any rule or 
policy based on State interpretation of any Federal law, 
regulation, or guideline, shall be identified as a State 
imposed requirement.

[SEC. 514. PROHIBITION ON USE OF FUNDS TO INDUCE OUT-OF-STATE 
                    RELOCATION OF BUSINESSES.

  [No funds provided under this Act shall be used for the 
purpose of directly providing incentives or inducements to an 
employer to relocate a business enterprise from 1 State to 
another State if such relocation would result in a reduction in 
the number of jobs available in the State where the business 
enterprise is located before such incentives or inducements are 
offered.

[SEC. 515. STATE ADMINISTRATIVE COSTS.

  [For each fiscal year for which a State receives assistance 
under this Act, the State shall provide from non-Federal 
sources for costs the State incurs for administration of 
programs under this Act an amount that is not less than the 
amount provided by the State from non-Federal sources for such 
costs for the preceding fiscal year.
[SEC. 516. ADDITIONAL ADMINISTRATIVE PROVISIONS.

  [(a) In General.--(1)(A) Funds made available under title II 
shall be used to supplement, and to the extent practicable 
increase the amount of State and local funds that would in the 
absence of such Federal funds be made available for the uses 
specified in the application, and in no case supplant such 
State or local funds.
  [(B) Notwithstanding subparagraph (A), funds made available 
under title II may be used to pay for the costs of vocational 
education services required in an individualized education plan 
developed pursuant to sections 612(4) and 614(a)(5) of the 
Individuals with Disabilities Education Act, in a manner 
consistent with section 614(a)(1) of such Act, and services 
necessary to meet the requirements of section 504 of the 
Rehabilitation Act of 1973 with respect to ensuring equal 
access to vocational education.
  [(2) No State shall take into consideration payments under 
this Act in determining, for any educational agency or 
institution in that State, the eligibility for State aid, or 
the amount of State aid, with respect to public education 
within the State.
  [(b) Limitation.--Any project assisted with funds made 
available under title II shall be of sufficient size, scope, 
and quality to give reasonable promise of meeting the 
vocational education needs of the students involved in the 
project.
  [(c) Permissible Services and Activities.--(1) Vocational 
education services and activities authorized in title II may 
include work-site programs such as cooperative vocational 
education, programs with community-based organizations, work-
study, and apprenticeship programs.
  [(2) Vocational education services and activities described 
in title II may include placement services for students who 
have successfully completed vocational education programs.
  [(3) Vocational education services and activities described 
in title II may include programs which involve students in 
addressing the needs of the community in the production of 
goods or services which contribute to the community's welfare 
or which involve the students with other community development 
planning, institutions, and enterprises.
  [(d) Academic Credit.--Each State board receiving financial 
assistance under title II may consider granting academic credit 
for vocational education courses which integrate core academic 
competencies.

                          [Part C--Definitions

[SEC. 521. DEFINITIONS.

  [As used in this Act:
          [(1) The term ``administration'' means activities of 
        a State necessary for the proper and efficient 
        performance of its duties under this Act, including 
        supervision, but does not include curriculum 
        development activities, personnel development, or 
        research activities.
          [(2) The term ``all aspects of the industry'' means 
        strong experience in, and understanding of, all aspects 
        of the industry the students are preparing to enter, 
        including planning, management, finances, technical and 
        production skills, underlying principles of technology, 
        labor issues, and health and safety.
          [(3) The term ``apprenticeship training program'' 
        means a program registered with the Department of Labor 
        or the State apprenticeship agency in accordance with 
        the Act of August 16, 1937, commonly known as the 
        National Apprenticeship Act, which is conducted or 
        sponsored by an employer, a group of employers, or a 
        joint apprenticeship committee representing both 
        employers and a union, and which contains all terms and 
        conditions for the qualification, recruitment, 
        selection, employment, and training of apprentices.
          [(4) The term ``area vocational education school'' 
        means--
                  [(A) a specialized high school used 
                exclusively or principally for the provision of 
                vocational education to individuals who are 
                available for study in preparation for entering 
                the labor market;
                  [(B) the department of a high school 
                exclusively or principally used for providing 
                vocational education in not less than 5 
                different occupational fields to individuals 
                who are available for study in preparation for 
                entering the labor market;
                  [(C) a technical institute or vocational 
                school used exclusively or principally for the 
                provision of vocational education to 
                individuals who have completed or left high 
                school and who are available for study in 
                preparation for entering the labor market; or
                  [(D) the department or division of a junior 
                college, community college or university 
                operating under the policies of the State board 
                and which provides vocational education in not 
                less than 5 different occupational fields 
                leading to immediate employment but not 
                necessarily leading to a baccalaureate degree, 
                if, in the case of a school, department, or 
                division described in subparagraph (C) or this 
                subparagraph, it admits as regular students 
                both individuals who have completed high school 
                and individuals who have left high school.
          [(5) The term ``career guidance and counseling'' 
        means programs--
                  [(A) which pertain to the body of subject 
                matter and related techniques and methods 
                organized for the development in individuals of 
                career awareness, career planning, career 
                decisionmaking, placement skills, and knowledge 
                and understanding of local, State, and national 
                occupational, educational, and labor market 
                needs, trends, and opportunities; and
                  [(B) which assist such individuals in making 
                and implementing informed educational and 
                occupational choices.
          [(6) The term ``community-based organization'' means 
        any such organization of demonstrated effectiveness 
        described in section 4(5) of the Job Training 
        Partnership Act.
          [(7) The term ``construction'' includes construction 
        of new buildings and acquisition, and expansion, 
        remodeling, and alternation of existing buildings, and 
        includes site grading and improvement and architect 
        fees.
          [(8) The term ``cooperative education'' means a 
        method of instruction of vocational education for 
        individuals who, through written cooperative 
        arrangements between the school and employers, receive 
        instruction, including required academic courses and 
        related vocational instruction by alternation of study 
        in school with a job in any occupational field. Such 
        alternation shall be planned and supervised by the 
        school and employers so that each contributes to the 
        student's education and to his or her employability. 
        Work periods and school attendance may be on alternate 
        half days, full days, weeks, or other periods of time 
        in fulfilling the cooperative program.
          [(9) The term ``criminal offender'' means any 
        individual who is charged with or convicted of any 
        criminal offense, including a youth offender or a 
        juvenile offender.
          [(10) 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.
          [(11) The term ``Council'' means the National Council 
        on Vocational Education.
          [(12) The term ``curriculum materials'' means 
        instructional and related or supportive material, 
        including materials using advanced learning technology, 
        in any occupational field which is designed to 
        strengthen the academic foundation and prepare 
        individuals for employment at the entry level or to 
        upgrade occupational competencies of those previously 
        or presently employed in any occupational field, and 
        appropriate counseling and guidance material.
          [(13) The term ``disadvantaged'' means individuals 
        (other than individuals with handicaps) who have 
        economic or academic disadvantages and who require 
        special services and assistance in order to enable such 
        individuals to succeed in vocational education 
        programs. Such term includes individuals who are 
        members of economically disadvantaged families, 
        migrants, individuals of limited English proficiency 
        and individuals who are dropouts from, or who are 
        identified as potential dropouts from, secondary 
        school.
          [(14) The term ``displaced homemaker'' means an 
        individual who--
                  [(A) is an adult; and
                  [(B)(i) has worked as an adult primarily 
                without remuneration to care for the home and 
                family, and for that reason has diminished 
                marketable skills;
                  [(ii) has been dependent on public assistance 
                or on the income of a relative but is no longer 
                supported by such income;
                  [(iii) is a parent whose youngest dependent 
                child will become ineligible to receive 
                assistance under the program for aid to 
                families with dependent children under part A 
                of title IV of the Social Security Act within 2 
                years of the parent's application for 
                assistance under this Act; or
                  [(iv) is unemployed or underemployed and is 
                experiencing difficulty in obtaining any 
                employment or suitable employment, as 
                appropriate, or
                  [(C) is described in subparagraph (A) or (B) 
                and is a criminal offender.
        The Secretary may not prescribe the manner in which the 
        States will comply with the application of the 
        definition contained in this paragraph.
          [(15) The term ``economically disadvantaged family or 
        individual'' means such families or individuals who are 
        determined by the Secretary to be low-income according 
        to the latest available data from the Department of 
        Commerce.
          [(16) Except as otherwise provided, the term 
        ``eligible recipient'' means a local educational 
        agency, an area vocational education school, an 
        intermediate educational agency, a postsecondary 
        educational institution, a State corrections 
        educational agency, or an eligible institution (as such 
        term is defined in section 232(d)(1)).
          [(17) The term ``general occupational skills'' means 
        experience in and understanding of all aspects of the 
        industry the student is preparing to enter, including 
        planning, management, finances, technical and 
        production skills, underlying principles of technology, 
        labor and community issues, and health, safety, and 
        environmental issues.
          [(18) The term ``high technology'' means state-of-
        the-art computer, microelectronic, hydraulic, 
        pneumatic, laser, nuclear, chemical, telecommunication, 
        and other technologies being used to enhance 
        productivity in manufacturing, communication, 
        transportation, agriculture, mining, energy, 
        commercial, and similar economic activity, and to 
        improve the provision of health care.
          [(19) The term ``individual with handicaps'' means 
        any individual who is an individual with any disability 
        (as defined in section 3(2) of the Americans With 
        Disabilities Act of 1990).
          [(20) The term ``intermediate educational agency'' 
        means a combination of school districts or counties (as 
        defined in section 14101 of the Elementary and 
        Secondary Education Act of 1965) as are recognized in a 
        State as an administrative agency for such State's 
        vocational or technical education schools or for 
        vocational programs within its public elementary or 
        secondary schools. Such term includes any other public 
        institution or agency having administrative control and 
        direction over a public elementary or secondary school.
          [(21) The term ``limited English proficiency'' has 
        the meaning given such term in section 7004(a) of the 
        Elementary and Secondary Education Act of 1965.
          [(22) The term ``local educational agency'' means a 
        board of education or other legally constituted local 
        school authority having administrative control and 
        direction of public elementary or secondary schools in 
        a city, county, township, school district, or political 
        subdivision in a State, or any other public educational 
        institution or agency having administrative control and 
        direction of a vocational education program. For the 
        purposes of sections 114, 115, 116, 117, and 240, such 
        term shall include a State corrections educational 
        agency.
          [(23) The term ``postsecondary educational 
        institution'' means an institution legally authorized 
        to provide postsecondary education within a State, a 
        Bureau of Indian Affairs controlled postsecondary 
        institution, or any postsecondary educational 
        institution operated by or on behalf of any Indian 
        tribe which is eligible to contract with the Secretary 
        of the Interior for the administration of programs 
        under the Indian Self-Determination Act or under the 
        Act of April 16, 1934.
          [(24) The term ``preparatory services'' means 
        services, programs, or activities designed to assist 
        individuals who are not enrolled in vocational 
        education programs in the selection of, or preparation 
        for participation in, an appropriate vocational 
        education or training program, such as--
                  [(A) services, programs, or activities 
                related to outreach to or recruitment of 
                potential vocational education students;
                  [(B) career counseling and personal 
                counseling;
                  [(C) vocational assessment and testing; and
                  [(D) other appropriate services, programs, or 
                activities.
          [(25) The term ``private vocational training 
        institution'' means a business or trade school, or 
        technical institution or other technical or vocational 
        school, in any State, which--
                  [(A) admits as regular students only persons 
                who have completed or left elementary or 
                secondary school and who have the ability to 
                benefit from the training offered by such 
                institution;
                  [(B) is legally authorized to provide, and 
                provides within that State, a program of 
                postsecondary vocational or technical education 
                designed to fit individuals for useful 
                employment in recognized occupations;
                  [(C) has been in existence for 2 years or has 
                been specially accredited by the Secretary as 
                an institution meeting the other requirements 
                of this subsection; and
                  [(D) is accredited--
                          [(i) by a nationally recognized 
                        accrediting agency or association 
                        listed by the Secretary pursuant to 
                        this clause;
                          [(ii) if the Secretary determines 
                        that there is no nationally recognized 
                        accrediting agency or association 
                        qualified to accredit schools of a 
                        particular category, by a State agency 
                        listed by the Secretary pursuant to 
                        this clause; or
                          [(iii) if the Secretary determines 
                        that there is no nationally recognized 
                        or State agency or association 
                        qualified to accredit schools of a 
                        particular category, by an advisory 
                        committee appointed by the Secretary 
                        and composed of persons specially 
                        qualified to evaluate training provided 
                        by schools of that category, which 
                        committee shall prescribe the standards 
                        of content, scope, and quality which 
                        must be met by those schools and shall 
                        also determine whether particular 
                        schools meet those standards.
        For the purpose of this paragraph, the Secretary shall 
        publish a list of nationally recognized accrediting 
        agencies or associations and State agencies which the 
        Secretary determines to be reliable authority as to the 
        quality of education or training afforded.
          [(26) The term ``school facilities'' means classrooms 
        and related facilities (including initial equipment) 
        and interests in lands on which such facilities are 
        constructed. Such term shall not include any facility 
        intended primarily for events for which admission is to 
        be charged to the general public.
          [(27) The term ``Secretary'' means the Secretary of 
        Education.
          [(28) The term ``small business'' means for-profit 
        enterprises employing 500 or fewer employees.
          [(29) The term ``sequential course of study'' means 
        an integrated series of courses which are directly 
        related to the educational and occupational skills 
        preparation of individuals for jobs, or preparation for 
        postsecondary education.
          [(30) The term ``single parent'' means an individual 
        who--
                  [(A) is unmarried or legally separated from a 
                spouse; and
                  [(B)(i) has a minor child or children for 
                which the parent has either custody or joint 
                custody; or
                  [(ii) is pregnant.
          [(31) The term ``special populations'' includes 
        individuals with handicaps, educationally and 
        economically disadvantaged individuals (including 
        foster children), individuals of limited English 
        proficiency, individuals who participate in programs 
        designed to eliminate sex bias, and individuals in 
        correctional institutions.
          [(32) The term ``specific job training'' means 
        training and education for skills required by the 
        employer that provides the individual student with the 
        ability to obtain employment and to adapt to the 
        changing demands of the workplace.
          [(33) The term ``State'' includes, in addition to the 
        several States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
        American Samoa, the Northern Mariana Islands, and Palau 
        (until the Compact of Free Association with Palau takes 
        effect pursuant to section 101(a) of Public Law 99-
        658).
          [(34) The term ``State board'' means a State board 
        designated or created by State law as the sole State 
        agency responsible for the administration of vocational 
        education, or for supervision of the administration of 
        vocational education in the State.
          [(35) The term ``State corrections educational 
        agency'' means the State agency or agencies responsible 
        for carrying out corrections education programs in the 
        State.
          [(36) The term ``State council'' means the State 
        council on vocational education established in 
        accordance with section 112.
          [(37) The term ``State educational agency'' means the 
        State board of education or other agency or officer 
        primarily responsible for the State supervision of 
        public elementary or secondary schools, or, if there is 
        no such officer or agency, an officer or agency 
        designated by the Governor or by State law.
          [(38) The term ``supplementary services'' means 
        curriculum modification, equipment modification, 
        classroom modification, supportive personnel, and 
        instructional aids and devices.
          [(39) The term ``technology education'' means an 
        applied discipline designed to promote technological 
        literacy which provides knowledge and understanding of 
        the impacts of technology including its organizations, 
        techniques, tools and skills to solve practical 
        problems and extend human capabilities in areas such as 
        construction, manufacturing, communication, 
        transportation, power and energy.
          [(40) The term ``tribally controlled community 
        college'' means an institution which receives 
        assistance under the Tribally Controlled Community 
        College Assistance Act of 1976 or the Navajo Community 
        College Act.
          [(41) The term ``vocational education'' means 
        organized educational programs offering a sequence of 
        courses which are directly related to the preparation 
        of individuals in paid or unpaid employment in current 
        or emerging occupations requiring other than a 
        baccalaureate or advanced degree. Such programs shall 
        include competency-based applied learning which 
        contributes to an individual's academic knowledge, 
        higher-order reasoning, and problem-solving skills, 
        work attitudes, general employability skills, and the 
        occupational-specific skills necessary for economic 
        independence as a productive and contributing member of 
        society. Such term also includes applied technology 
        education.
          [(42) The term ``vocational student organizations'' 
        means those organizations for individuals enrolled in 
        vocational education programs which engage in 
        activities as an integral part of the instructional 
        program. Such organizations may have State and national 
        units which aggregate the work and purposes of 
        instruction in vocational education at the local 
        level.]

                              ----------                              

                SCHOOL-TO-WORK OPPORTUNITIES ACT OF 1994

AN ACT To establish a national framework for the development of School-
  to-Work Opportunities systems in all States, and for other purposes.

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

[SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  [(a) Short Title.--This Act may be cited as the ``School-to-
Work Opportunities Act of 1994''.
  [(b) Table of Contents.--The table of contents is as follows:

[Sec. 1. Short title; table of contents.
[Sec. 2. Findings.
[Sec. 3. Purposes and congressional intent.
[Sec. 4. Definitions.
[Sec. 5. Federal administration.

     [TITLE I--SCHOOL-TO-WORK OPPORTUNITIES BASIC PROGRAM COMPONENTS

[Sec. 101. General program requirements.
[Sec. 102. School-based learning component.
[Sec. 103. Work-based learning component.
[Sec. 104. Connecting activities component.

     [TITLE II--SCHOOL-TO-WORK OPPORTUNITIES SYSTEM DEVELOPMENT AND 
                     IMPLEMENTATION GRANTS TO STATES

                  [Subtitle A--State Development Grants

[Sec. 201. Purpose.
[Sec. 202. Authorization.
[Sec. 203. Application.
[Sec. 204. Approval of application.
[Sec. 205. Use of amounts.
[Sec. 206. Maintenance of effort.
[Sec. 207. Reports.

                [Subtitle B--State Implementation Grants

[Sec. 211. Purpose.
[Sec. 212. Authorization.
[Sec. 213. Application.
[Sec. 214. Review of application.
[Sec. 215. Use of amounts.
[Sec. 216. Allocation requirement.
[Sec. 217. Limitation on administrative costs.
[Sec. 218. Reports.

 [Subtitle C--Development and Implementation Grants for School-to-Work 
                       Programs for Indian Youths

[Sec. 221. Authorization.
[Sec. 222. Requirements.

     [TITLE III--FEDERAL IMPLEMENTATION GRANTS TO LOCAL PARTNERSHIPS

[Sec. 301. Purposes.
[Sec. 302. Authorization.
[Sec. 303. Application.
[Sec. 304. Use of amounts.
[Sec. 305. Conformity with approved State plan.
[Sec. 306. Reports.
[Sec. 307. High poverty area defined.

                      [TITLE IV--NATIONAL PROGRAMS

[Sec. 401. Research, demonstration, and other projects.
[Sec. 402. Performance outcomes and evaluation.
[Sec. 403. Training and technical assistance.
[Sec. 404. Capacity building and information and dissemination network.
[Sec. 405. Reports to Congress.
[Sec. 406. Funding.

        [TITLE V--WAIVER OF STATUTORY AND REGULATORY REQUIREMENTS

[Sec. 501. State and local partnership requests and responsibilities for 
          waivers.
[Sec. 502. Waiver authority of Secretary of Education.
[Sec. 503. Waiver authority of Secretary of Labor.
[Sec. 504. Combination of Federal funds for high poverty schools.
[Sec. 505. Combination of Federal funds by States for school-to-work 
          activities.

                      [TITLE VI--GENERAL PROVISIONS

[Sec. 601. Requirements.
[Sec. 602. Sanctions.
[Sec. 603. State authority.
[Sec. 604. Prohibition on Federal mandates, direction, and control.
[Sec. 605. Authorization of appropriations.

                       [TITLE VII--OTHER PROGRAMS

     [Subtitle A--Reauthorization of Job Training for the Homeless 
Demonstration Program Under the Stewart B. McKinney Homeless Assistance 
                                   Act

[Sec. 701. Reauthorization.

                     [Subtitle B--Tech-Prep Programs

[Sec. 711. Tech-prep education.

               [Subtitle C--Alaska Native Art and Culture

[Sec. 721. Short title.
[Sec. 722. Alaska Native art and culture.

                        [Subtitle D--Job Training

[Sec. 731. Amendment to Job Training Partnership Act to provide 
          allowances for child care costs to certain individuals 
          participating in the Job Corps.

                    [TITLE VIII--TECHNICAL PROVISIONS

[Sec. 801. Effective date.
[Sec. 802. Sunset.

[SEC. 2. FINDINGS.

  [Congress finds that--
          [(1) three-fourths of high school students in the 
        United States enter the workforce without baccalaureate 
        degrees, and many do not possess the academic and 
        entry-level occupational skills necessary to succeed in 
        the changing United States workplace;
          [(2) a substantial number of youths in the United 
        States, especially disadvantaged students, students of 
        diverse racial, ethnic, and cultural backgrounds, and 
        students with disabilities, do not complete high 
        school;
          [(3) unemployment among youths in the United States 
        is intolerably high, and earnings of high school 
        graduates have been falling relative to earnings of 
        individuals with more education;
          [(4) the workplace in the United States is changing 
        in response to heightened international competition and 
        new technologies, and such forces, which are ultimately 
        beneficial to the Nation, are shrinking the demand for 
        and undermining the earning power of unskilled labor;
          [(5) the United States lacks a comprehensive and 
        coherent system to help its youths acquire the 
        knowledge, skills, abilities, and information about and 
        access to the labor market necessary to make an 
        effective transition from school to career-oriented 
        work or to further education and training;
          [(6) students in the United States can achieve high 
        academic and occupational standards, and many learn 
        better and retain more when the students learn in 
        context, rather than in the abstract;
          [(7) while many students in the United States have 
        part-time jobs, there is infrequent linkage between--
                  [(A) such jobs; and
                  [(B) the career planning or exploration, or 
                the school-based learning, of such students;
          [(8) the work-based learning approach, which is 
        modeled after the time-honored apprenticeship concept, 
        integrates theoretical instruction with structured on-
        the-job training, and this approach, combined with 
        school-based learning, can be very effective in 
        engaging student interest, enhancing skill acquisition, 
        developing positive work attitudes, and preparing 
        youths for high-skill, high-wage careers;
          [(9) Federal resources currently fund a series of 
        categorical, work-related education and training 
        programs, many of which serve disadvantaged youths, 
        that are not administered as a coherent whole; and
          [(10) in 1992 approximately 3,400,000 individuals in 
        the United States age 16 through 24 had not completed 
        high school and were not currently enrolled in school, 
        a number representing approximately 11 percent of all 
        individuals in this age group, which indicates that 
        these young persons are particularly unprepared for the 
        demands of a 21st century workforce.

[SEC. 3. PURPOSES AND CONGRESSIONAL INTENT.

  [(a) Purposes.--The purposes of this Act are--
          [(1) to establish a national framework within which 
        all States can create statewide School-to-Work 
        Opportunities systems that--
                  [(A) are a part of comprehensive education 
                reform;
                  [(B) are integrated with the systems 
                developed under the Goals 2000: Educate America 
                Act and the National Skill Standards Act of 
                1994; and
                  [(C) offer opportunities for all students to 
                participate in a performance-based education 
                and training program that will--
                          [(i) enable the students to earn 
                        portable credentials;
                          [(ii) prepare the students for first 
                        jobs in high-skill, high-wage careers; 
                        and
                          [(iii) increase their opportunities 
                        for further education, including 
                        education in a 4-year college or 
                        university;
          [(2) to facilitate the creation of a universal, high-
        quality school-to-work transition system that enables 
        youths in the United States to identify and navigate 
        paths to productive and progressively more rewarding 
        roles in the workplace;
          [(3) to utilize workplaces as active learning 
        environments in the educational process by making 
        employers joint partners with educators in providing 
        opportunities for all students to participate in high-
        quality, work-based learning experiences;
          [(4) to use Federal funds under this Act as venture 
        capital, to underwrite the initial costs of planning 
        and establishing statewide School-to-Work Opportunities 
        systems that will be maintained with other Federal, 
        State, and local resources;
          [(5) to promote the formation of local partnerships 
        that are dedicated to linking the worlds of school and 
        work among secondary schools and postsecondary 
        educational institutions, private and public employers, 
        labor organizations, government, community-based 
        organizations, parents, students, State educational 
        agencies, local educational agencies, and training and 
        human service agencies;
          [(6) to promote the formation of local partnerships 
        between elementary schools and secondary schools 
        (including middle schools) and local businesses as an 
        investment in future workplace productivity and 
        competitiveness;
          [(7) to help all students attain high academic and 
        occupational standards;
          [(8) to build on and advance a range of promising 
        school-to-work activities, such as tech-prep education, 
        career academies, school-to-apprenticeship programs, 
        cooperative education, youth apprenticeship, school-
        sponsored enterprises, business-education compacts, and 
        promising strategies that assist school dropouts, that 
        can be developed into programs funded under this Act;
          [(9) to improve the knowledge and skills of youths by 
        integrating academic and occupational learning, 
        integrating school-based and work-based learning, and 
        building effective linkages between secondary and 
        postsecondary education;
          [(10) to encourage the development and implementation 
        of programs that will require paid high-quality, work-
        based learning experiences;
          [(11) to motivate all youths, including low-achieving 
        youths, school dropouts, and youths with disabilities, 
        to stay in or return to school or a classroom setting 
        and strive to succeed, by providing enriched learning 
        experiences and assistance in obtaining good jobs and 
        continuing their education in postsecondary educational 
        institutions;
          [(12) to expose students to a broad array of career 
        opportunities, and facilitate the selection of career 
        majors, based on individual interests, goals, 
        strengths, and abilities;
          [(13) to increase opportunities for minorities, 
        women, and individuals with disabilities, by enabling 
        individuals to prepare for careers that are not 
        traditional for their race, gender, or disability; and
          [(14) to further the National Education Goals set 
        forth in title I of the Goals 2000: Educate America 
        Act.
  [(b) Congressional Intent.--It is the intent of Congress that 
the Secretary of Labor and the Secretary of Education jointly 
administer this Act in a flexible manner that--
          [(1) promotes State and local discretion in 
        establishing and implementing statewide School-to-Work 
        Opportunities systems and School-to-Work Opportunities 
        programs; and
          [(2) contributes to reinventing government by--
                  [(A) building on State and local capacity;
                  [(B) eliminating duplication in education and 
                training programs for youths by integrating 
                such programs into 1 comprehensive system;
                  [(C) maximizing the effective use of 
                resources;
                  [(D) supporting locally established 
                initiatives;
                  [(E) requiring measurable goals for 
                performance; and
                  [(F) offering flexibility in meeting such 
                goals.

[SEC. 4. DEFINITIONS.

  [As used in this Act:
          [(1) All aspects of an industry.--The term ``all 
        aspects of an industry'' means all aspects of the 
        industry or industry sector a student is preparing to 
        enter, including planning, management, finances, 
        technical and production skills, underlying principles 
        of technology, labor and community issues, health and 
        safety issues, and environmental issues, related to 
        such industry or industry sector.
          [(2) All students.--The term ``all students'' means 
        both male and female students from a broad range of 
        backgrounds and circumstances, including disadvantaged 
        students, students with diverse racial, ethnic, or 
        cultural backgrounds, American Indians, Alaska Natives, 
        Native Hawaiians, students with disabilities, students 
        with limited-English proficiency, migrant children, 
        school dropouts, and academically talented students.
          [(3) Approved state plan.--The term ``approved State 
        plan'' means a statewide School-to-Work Opportunities 
        system plan that is submitted by a State under section 
        213, is determined by the Secretaries to include the 
        program components described in sections 102 through 
        104 and otherwise meet the requirements of this Act, 
        and is consistent with the State improvement plan for 
        the State, if any, under the Goals 2000: Educate 
        America Act.
          [(4) Career guidance and counseling.--The term 
        ``career guidance and counseling'' means programs--
                  [(A) that pertain to the body of subject 
                matter and related techniques and methods 
                organized for the development in individuals of 
                career awareness, career planning, career 
                decisionmaking, placement skills, and knowledge 
                and understanding of local, State, and national 
                occupational, educational, and labor market 
                needs, trends, and opportunities;
                  [(B) that assist individuals in making and 
                implementing informed educational and 
                occupational choices; and
                  [(C) that aid students to develop career 
                options with attention to surmounting gender, 
                race, ethnic, disability, language, or 
                socioeconomic impediments to career options and 
                encouraging careers in nontraditional 
                employment.
          [(5) Career major.--The term ``career major'' means a 
        coherent sequence of courses or field of study that 
        prepares a student for a first job and that--
                  [(A) integrates academic and occupational 
                learning, integrates school-based and work-
                based learning, establishes linkages between 
                secondary schools and postsecondary educational 
                institutions;
                  [(B) prepares the student for employment in a 
                broad occupational cluster or industry sector;
                  [(C) typically includes at least 2 years of 
                secondary education and at least 1 or 2 years 
                of postsecondary education;
                  [(D) provides the students, to the extent 
                practicable, with strong experience in and 
                understanding of all aspects of the industry 
                the students are planning to enter;
                  [(E) results in the award of--
                          [(i) a high school diploma or its 
                        equivalent, such as--
                                  [(I) a general equivalency 
                                diploma; or
                                  [(II) an alternative diploma 
                                or certificate for students 
                                with disabilities for whom such 
                                alternative diploma or 
                                certificate is appropriate;
                          [(ii) a certificate or diploma 
                        recognizing successful completion of 1 
                        or 2 years of postsecondary education 
                        (if appropriate); and
                          [(iii) a skill certificate; and
                  [(F) may lead to further education and 
                training, such as entry into a registered 
                apprenticeship program, or may lead to 
                admission to a 2- or 4-year college or 
                university.
          [(6) Community-based organizations.--The term 
        ``community-based organizations'' has the meaning given 
        such term in section 4(5) of the Job Training 
        Partnership Act (29 U.S.C. 1503(5)).
          [(7) Elementary school.--The term ``elementary 
        school'' means a day or residential school that 
        provides elementary education, as determined under 
        State law.
          [(8) Employer.--The term ``employer'' includes both 
        public and private employers.
          [(9) Governor.--The term ``Governor'' means the chief 
        executive of a State.
          [(10) Local educational agency.--The term ``local 
        educational agency'' means a public board of education 
        or other public authority legally constituted within a 
        State for either administrative control or direction 
        of, or to perform a service function for, public 
        elementary or secondary schools in a city, county, 
        township, school district, or other political 
        subdivision of a State, or such combination of school 
        districts or counties as are recognized in a State as 
        an administrative agency for its public elementary or 
        secondary schools. Such term includes any other public 
        institution or agency having administrative control and 
        direction of a public elementary or secondary school.
          [(11) Local partnership.--The term ``local 
        partnership'' means a local entity that is responsible 
        for local School-to-Work Opportunities programs and 
        that--
                  [(A) consists of employers, representatives 
                of local educational agencies and local 
                postsecondary educational institutions 
                (including representatives of area vocational 
                education schools, where applicable), local 
                educators (such as teachers, counselors, or 
                administrators), representatives of labor 
                organizations or nonmanagerial employee 
                representatives, and students; and
                  [(B) may include other entities, such as--
                          [(i) employer organizations;
                          [(ii) community-based organizations;
                          [(iii) national trade associations 
                        working at the local levels;
                          [(iv) industrial extension centers;
                          [(v) rehabilitation agencies and 
                        organizations;
                          [(vi) registered apprenticeship 
                        agencies;
                          [(vii) local vocational education 
                        entities;
                          [(viii) proprietary institutions of 
                        higher education (as defined in section 
                        481(b) of the Higher Education Act of 
                        1965 (20 U.S.C. 1088(b)) that continue 
                        to meet the eligibility and 
                        certification requirements under title 
                        IV of such Act (20 U.S.C. 1070 et 
                        seq.);
                          [(ix) local government agencies;
                          [(x) parent organizations;
                          [(xi) teacher organizations;
                          [(xii) vocational student 
                        organizations;
                          [(xiii) private industry councils 
                        established under section 102 of the 
                        Job Training Partnership Act (29 U.S.C. 
                        1512);
                          [(xiv) federally recognized Indian 
                        tribes, Indian organizations, and 
                        Alaska Native villages within the 
                        meaning of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1601 et 
                        seq.); and
                          [(xv) Native Hawaiian entities.
          [(12) Postsecondary educational institution.--The 
        term ``postsecondary educational institution'' means an 
        institution of higher education (as such term is 
        defined in section 481 of the Higher Education Act of 
        1965 (20 U.S.C. 1088)) which continues to meet the 
        eligibility and certification requirements under title 
        IV of such Act (20 U.S.C. 1070 et seq.).
          [(13) Registered apprenticeship agency.--The term 
        ``registered apprenticeship agency'' means the Bureau 
        of Apprenticeship and Training in the Department of 
        Labor or a State apprenticeship agency recognized and 
        approved by the Bureau of Apprenticeship and Training 
        as the appropriate body for State registration or 
        approval of local apprenticeship programs and 
        agreements for Federal purposes.
          [(14) Registered apprenticeship program.--The term 
        ``registered apprenticeship program'' means a program 
        registered by a registered apprenticeship agency.
          [(15) Related services.--The term ``related 
        services'' includes the types of services described in 
        section 602(17) of the Individuals with Disabilities 
        Education Act (20 U.S.C. 1401(17)).
          [(16) Rural community with low population density.--
        The term ``rural community with low population 
        density'' means a county, block number area in a 
        nonmetropolitan county, or consortium of counties or of 
        such block number areas, that has a population density 
        of 20 or fewer individuals per square mile.
          [(17) School dropout.--The term ``school dropout'' 
        means a youth who is no longer attending any school and 
        who has not received a secondary school diploma or a 
        certificate from a program of equivalency for such a 
        diploma.
          [(18) School site mentor.--The term ``school site 
        mentor'' means a professional employed at a school who 
        is designated as the advocate for a particular student, 
        and who works in consultation with classroom teachers, 
        counselors, related services personnel, and the 
        employer of the student to design and monitor the 
        progress of the School-to-Work Opportunities program of 
        the student.
          [(19) School-to-work opportunities program.--The term 
        ``School-to-Work Opportunities program'' means a 
        program that meets the requirements of this Act, other 
        than a program described in section 401(a).
          [(20) Secondary school.--The term ``secondary 
        school'' means--
                  [(A) a nonprofit day or residential school 
                that provides secondary education, as 
                determined under State law, except that it does 
                not include any education provided beyond grade 
                12; and
                  [(B) a Job Corps center under part B of title 
                IV of the Job Training Partnership Act (29 
                U.S.C. 1691 et seq.).
          [(21) Secretaries.--The term ``Secretaries'' means 
        the Secretary of Education and the Secretary of Labor.
          [(22) Skill certificate.--The term ``skill 
        certificate'' means a portable, industry-recognized 
        credential issued by a School-to-Work Opportunities 
        program under an approved State plan, that certifies 
        that a student has mastered skills at levels that are 
        at least as challenging as skill standards endorsed by 
        the National Skill Standards Board established under 
        the National Skill Standards Act of 1994, except that 
        until such skill standards are developed, the term 
        ``skill certificate'' means a credential issued under a 
        process described in the approved State plan.
          [(23) State.--The term ``State'' means each of the 
        several States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Commonwealth of the 
        Northern Mariana Islands, American Samoa, Guam, the 
        Virgin Islands, the Federated States of Micronesia, the 
        Republic of the Marshall Islands, and the Republic of 
        Palau.
          [(24) State educational agency.--The term ``State 
        educational agency'' means the officer or agency 
        primarily responsible for the State supervision of 
        public elementary and secondary schools.
          [(25) Workplace mentor.--The term ``workplace 
        mentor'' means an employee or other individual, 
        approved by the employer at a workplace, who possesses 
        the skills and knowledge to be mastered by a student, 
        and who instructs the student, critiques the 
        performance of the student, challenges the student to 
        perform well, and works in consultation with classroom 
        teachers and the employer of the student.

[SEC. 5. FEDERAL ADMINISTRATION.

  [(a) Joint Administration.--
          [(1) In general.--Notwithstanding the Department of 
        Education Organization Act (20 U.S.C. 3401 et seq.), 
        the General Education Provisions Act (20 U.S.C. 1221 et 
        seq.), the Act entitled ``An Act To Create a Department 
        of Labor'', approved March 4, 1913 (29 U.S.C. 551 et 
        seq.), and section 166 of the Job Training Partnership 
        Act (29 U.S.C. 1576), the Secretaries shall jointly 
        provide for, and shall exercise final authority over, 
        the administration of this Act, and shall have final 
        authority to jointly issue whatever procedures, 
        guidelines, and regulations, in accordance with section 
        553 of title 5, United States Code, the Secretaries 
        consider necessary and appropriate to administer and 
        enforce the provisions of this Act.
          [(2) Submission of plan.--Not later than 120 days 
        after the date of enactment of this Act, the 
        Secretaries shall prepare a plan for the joint 
        administration of this Act and submit such plan to 
        Congress for review and comment.
  [(b) Acceptance of Gifts.--The Secretaries are authorized, in 
carrying out this Act, to accept, purchase, or lease in the 
name of the Department of Labor or the Department of Education, 
and employ or dispose of in furtherance of the purposes of this 
Act, any money or property, real, personal, or mixed, tangible 
or intangible, received by gift, devise, bequest, or otherwise.
  [(c) Use of Voluntary and Uncompensated Services.--
Notwithstanding section 1342 of title 31, United States Code, 
the Secretaries are authorized to accept voluntary and 
uncompensated services in furtherance of the purposes of this 
Act.

    [TITLE I--SCHOOL-TO-WORK OPPORTUNITIES BASIC PROGRAM COMPONENTS

[SEC. 101. GENERAL PROGRAM REQUIREMENTS.

  [A School-to-Work Opportunities program under this Act 
shall--
          [(1) integrate school-based learning and work-based 
        learning, as provided for in sections 102 and 103, 
        integrate academic and occupational learning, and 
        establish effective linkages between secondary and 
        postsecondary education;
          [(2) provide participating students with the 
        opportunity to complete career majors;
          [(3) incorporate the program components provided in 
        sections 102 through 104;
          [(4) provide participating students, to the extent 
        practicable, with strong experience in and 
        understanding of all aspects of the industry the 
        students are preparing to enter; and
          [(5) provide all students with equal access to the 
        full range of such program components (including both 
        school-based and work-based learning components) and 
        related activities, such as recruitment, enrollment, 
        and placement activities, except that nothing in this 
        Act shall be construed to provide any individual with 
        an entitlement to services under this Act.

[SEC. 102. SCHOOL-BASED LEARNING COMPONENT.

  [The school-based learning component of a School-to-Work 
Opportunities program shall include--
          [(1) career awareness and career exploration and 
        counseling (beginning at the earliest possible age, but 
        not later than the 7th grade) in order to help students 
        who may be interested to identify, and select or 
        reconsider, their interests, goals, and career majors, 
        including those options that may not be traditional for 
        their gender, race, or ethnicity;
          [(2) initial selection by interested students of a 
        career major not later than the beginning of the 11th 
        grade;
          [(3) a program of study designed to meet the same 
        academic content standards the State has established 
        for all students, including, where applicable, 
        standards established under the Goals 2000: Educate 
        America Act, and to meet the requirements necessary to 
        prepare a student for postsecondary education and the 
        requirements necessary for a student to earn a skill 
        certificate;
          [(4) a program of instruction and curriculum that 
        integrates academic and vocational learning (including 
        applied methodologies and team-teaching strategies), 
        and incorporates instruction, to the extent 
        practicable, in all aspects of an industry, 
        appropriately tied to the career major of a 
        participant;
          [(5) regularly scheduled evaluations involving 
        ongoing consultation and problem solving with students 
        and school dropouts to identify their academic 
        strengths and weaknesses, academic progress, workplace 
        knowledge, goals, and the need for additional learning 
        opportunities to master core academic and vocational 
        skills; and
          [(6) procedures to facilitate the entry of students 
        participating in a School-to-Work Opportunities program 
        into additional training or postsecondary education 
        programs, as well as to facilitate the transfer of the 
        students between education and training programs.

[SEC. 103. WORK-BASED LEARNING COMPONENT.

  [(a) Mandatory Activities.--The work-based learning component 
of a School-to-Work Opportunities program shall include--
          [(1) work experience;
          [(2) a planned program of job training and work 
        experiences (including training related to 
        preemployment and employment skills to be mastered at 
        progressively higher levels) that are coordinated with 
        learning in the school-based learning component 
        described in section 102 and are relevant to the career 
        majors of students and lead to the award of skill 
        certificates;
          [(3) workplace mentoring;
          [(4) instruction in general workplace competencies, 
        including instruction and activities related to 
        developing positive work attitudes, and employability 
        and participative skills; and
          [(5) broad instruction, to the extent practicable, in 
        all aspects of the industry.
  [(b) Permissible Activities.--Such component may include such 
activities as paid work experience, job shadowing, school-
sponsored enterprises, or on-the-job training.

[SEC. 104. CONNECTING ACTIVITIES COMPONENT.

  [The connecting activities component of a School-to-Work 
Opportunities program shall include--
          [(1) matching students with the work-based learning 
        opportunities of employers;
          [(2) providing, with respect to each student, a 
        school site mentor to act as a liaison among the 
        student and the employer, school, teacher, school 
        administrator, and parent of the student, and, if 
        appropriate, other community partners;
          [(3) providing technical assistance and services to 
        employers, including small- and medium-sized 
        businesses, and other parties in--
                  [(A) designing school-based learning 
                components described in section 102, work-based 
                learning components described in section 103, 
                and counseling and case management services; 
                and
                  [(B) training teachers, workplace mentors, 
                school site mentors, and counselors;
          [(4) providing assistance to schools and employers to 
        integrate school-based and work-based learning and 
        integrate academic and occupational learning into the 
        program;
          [(5) encouraging the active participation of 
        employers, in cooperation with local education 
        officials, in the implementation of local activities 
        described in section 102, section 103, or this section;
          [(6)(A) providing assistance to participants who have 
        completed the program in finding an appropriate job, 
        continuing their education, or entering into an 
        additional training program; and
          [(B) linking the participants with other community 
        services that may be necessary to assure a successful 
        transition from school to work;
          [(7) collecting and analyzing information regarding 
        post-program outcomes of participants in the School-to-
        Work Opportunities program, to the extent practicable, 
        on the basis of socioeconomic status, race, gender, 
        ethnicity, culture, and disability, and on the basis of 
        whether the participants are students with limited-
        English proficiency, school dropouts, disadvantaged 
        students, or academically talented students; and
          [(8) linking youth development activities under this 
        Act with employer and industry strategies for upgrading 
        the skills of their workers.
    [TITLE II--SCHOOL-TO-WORK OPPORTUNITIES SYSTEM DEVELOPMENT AND 
                    IMPLEMENTATION GRANTS TO STATES

                 [Subtitle A--State Development Grants

[SEC. 201. PURPOSE.

  [The purpose of this subtitle is to assist States in planning 
and developing comprehensive statewide School-to-Work 
Opportunities systems.

[SEC. 202. AUTHORIZATION.

  [(a) Grants to States.--
          [(1) In general.--On the application of the Governor 
        on behalf of a State in accordance with section 203, 
        the Secretaries may provide a development grant to the 
        State in such amounts as the Secretaries determine to 
        be necessary to enable such State to complete planning 
        and development of a comprehensive statewide School-to-
        Work Opportunities system.
          [(2) Amount.--The amount of a development grant under 
        this section may not exceed $1,000,000 for any fiscal 
        year.
          [(3) Completion.--The Secretaries may provide such 
        grant to complete development of a statewide School-to-
        Work Opportunities systems initiated with funds 
        received under the Job Training Partnership Act (29 
        U.S.C. 1501 et seq.) or the Carl D. Perkins Vocational 
        and Applied Technology Education Act (20 U.S.C. 2301 et 
        seq.).
  [(b) Grants to Territories.--In providing grants under this 
section to the Commonwealth of the Northern Mariana Islands, 
American Samoa, Guam, the Virgin Islands, the Federated States 
of Micronesia, the Republic of the Marshall Islands, or the 
Republic of Palau, the Secretaries shall use amounts reserved 
under section 605(b)(1).

[SEC. 203. APPLICATION.

  [(a) In General.--The Secretaries may not provide a 
development grant under section 202 to a State unless the 
Governor of the State, on behalf of the State, submits to the 
Secretaries an application, at such time, in such form, and 
containing such information as the Secretaries may reasonably 
require.
  [(b) Contents.--Such application shall include--
          [(1) a timetable and an estimate of the amount of 
        funding needed to complete the planning and development 
        necessary to implement a comprehensive statewide 
        School-to-Work Opportunities system for all students;
          [(2) a description of how--
                  [(A) the Governor;
                  [(B) the State educational agency;
                  [(C) the State agency officials responsible 
                for economic development;
                  [(D) the State agency officials responsible 
                for employment;
                  [(E) the State agency officials responsible 
                for job training;
                  [(F) the State agency officials responsible 
                for postsecondary education;
                  [(G) the State agency officials responsible 
                for vocational education;
                  [(H) the State agency officials responsible 
                for vocational rehabilitation;
                  [(I) the individual assigned by the State 
                under section 111(b)(1) of the Carl D. Perkins 
                Vocational and Applied Technology Education Act 
                (20 U.S.C. 2321(b)(1));
                  [(J) other appropriate officials, including 
                the State human resource investment council 
                established in accordance with title VII of the 
                Job Training Partnership Act (29 U.S.C. 1792 et 
                seq.), if the State has established such a 
                council; and
                  [(K) representatives of the private sector;
        will collaborate in the planning and development of the 
        statewide School-to-Work Opportunities system;
          [(3) a description of the manner in which the State 
        has obtained and will continue to obtain the active and 
        continued participation, in the planning and 
        development of the statewide School-to-Work 
        Opportunities system, of employers and other interested 
        parties, such as locally elected officials, secondary 
        schools and postsecondary educational institutions (or 
        related agencies), business associations, industrial 
        extension centers, employees, labor organizations or 
        associations of such organizations, teachers, related 
        services personnel, students, parents, community-based 
        organizations, rehabilitation agencies and 
        organizations, Indian tribes, registered apprenticeship 
        agencies, vocational educational agencies, vocational 
        student organizations, and human service agencies;
          [(4) a description of the manner in which the State 
        will coordinate planning activities with any local 
        school-to-work programs, including programs funded 
        under title III, if any;
          [(5) a designation of a fiscal agent to receive and 
        be accountable for funds provided from a grant under 
        section 202; and
          [(6) a description of how the State will provide 
        opportunities for students from low-income families, 
        low-achieving students, students with limited-English 
        proficiency, students with disabilities, students 
        living in rural communities with low population 
        densities, school dropouts, and academically talented 
        students to participate in School-to-Work Opportunities 
        programs.
  [(c) Coordination With Goals 2000: Educate America Act.--A 
State seeking assistance under both this subtitle and the Goals 
2000: Educate America Act may--
          [(1) submit a single application containing plans 
        that meet the requirements of such subtitle and such 
        Act and ensure that the plans are coordinated and not 
        duplicative; or
          [(2) if such State has already submitted its 
        application for funds under the Goals 2000: Educate 
        America Act, submit its application under this subtitle 
        as an amendment to the Goals 2000: Educate America Act 
        application if such amendment meets the requirements of 
        this subtitle and is coordinated with and not 
        duplicative of the Goals 2000: Educate America Act 
        application.

[SEC. 204. APPROVAL OF APPLICATION.

  [The Secretaries may approve an application submitted by a 
State under section 203 only if the State demonstrates in such 
application that the activities proposed to be undertaken by 
the State to develop a statewide School-to-Work Opportunities 
system are consistent with the State improvement plan for the 
State, if any, under the Goals 2000: Educate America Act.

[SEC. 205. USE OF AMOUNTS.

  [The Secretaries may not provide a development grant under 
section 202 to a State unless the State agrees that the State 
will use all amounts received from such grant for activities to 
develop a statewide School-to-Work Opportunities system, which 
may include--
          [(1) identifying or establishing an appropriate State 
        structure to administer the statewide School-to-Work 
        Opportunities system;
          [(2) identifying secondary and postsecondary school-
        to-work programs in existence on or after the date of 
        the enactment of this Act that might be incorporated 
        into such system;
          [(3) identifying or establishing broad-based 
        partnerships among employers, labor, education, 
        government, and other community-based organizations and 
        parent organizations to participate in the design, 
        development, and administration of School-to-Work 
        Opportunities programs;
          [(4) developing a marketing plan to build consensus 
        and support for such programs;
          [(5) promoting the active involvement of business 
        (including small- and medium-sized businesses) in 
        planning, developing, and implementing local School-to-
        Work Opportunities programs, and in establishing 
        partnerships between business and elementary schools 
        and secondary schools (including middle schools);
          [(6) identifying ways that local school-to-work 
        programs in existence on or after the date of the 
        enactment of this Act could be coordinated with the 
        statewide School-to-Work Opportunities system;
          [(7) supporting local planning and development 
        activities to provide guidance, training and technical 
        assistance for teachers, employers, mentors, 
        counselors, administrators, and others in the 
        development of School-to-Work Opportunities programs;
          [(8) identifying or establishing mechanisms for 
        providing training and technical assistance to enhance 
        the development of the statewide School-to-Work 
        Opportunities system;
          [(9) developing a training and technical support 
        system for teachers, employers, mentors, counselors, 
        related services personnel, and others that includes 
        specialized training and technical support for the 
        counseling and training of women, minorities, and 
        individuals with disabilities for high-skill, high-wage 
        careers in nontraditional employment;
          [(10) initiating pilot programs for testing key 
        components of the program design of programs under the 
        statewide School-to-Work Opportunities system;
          [(11) developing a State process for issuing skill 
        certificates that is, to the extent feasible, 
        consistent with the skill standards certification 
        systems endorsed under the National Skill Standards Act 
        of 1994;
          [(12) designing challenging curricula, in cooperation 
        with representatives of local partnerships, that take 
        into account the diverse learning needs and abilities 
        of the student population served by the statewide 
        School-to-Work Opportunities system;
          [(13) developing a system for labor market analysis 
        and strategic planning for local targeting of industry 
        sectors or broad occupational clusters that can provide 
        students with placements in high-skill workplaces;
          [(14) analyzing the post-high school employment 
        experiences of recent high school graduates and school 
        dropouts;
          [(15) preparing the plan described in section 213(d);
          [(16) working with localities to develop strategies 
        to recruit and retain all students in programs under 
        this Act through collaborations with community-based 
        organizations, where appropriate, and other entities 
        with expertise in working with such students;
          [(17) coordinating recruitment of out-of-school, at-
        risk, and disadvantaged youths with those organizations 
        and institutions that have a successful history of 
        working with such youths; and
          [(18) providing technical assistance to rural areas 
        in planning, developing, and implementing local School-
        to-Work Opportunities programs that meet the needs of 
        rural communities with low population densities.

[SEC. 206. MAINTENANCE OF EFFORT.

  [(a) In General.--A State may receive a development grant 
under section 202 for a fiscal year only if the State provides 
assurances, satisfactory to the Secretaries, that--
          [(1) the amount of State funds expended per student 
        by the State for school-to-work activities of the type 
        described in title I for the preceding fiscal year was 
        not less than 90 percent of the amount so expended for 
        the second preceding fiscal year; or
          [(2) the aggregate amount of State funds expended by 
        the State for such activities for the preceding fiscal 
        year was not less than 90 percent of the amount so 
        expended for the second preceding fiscal year.
  [(b) Waiver.--
          [(1) Determination.--The Secretaries may jointly 
        waive the requirements described in subsection (a) for 
        a State that requests such a waiver if the Secretaries 
        determine that such a waiver would be equitable due 
        to--
                  [(A) exceptional or uncontrollable 
                circumstances such as a natural disaster; or
                  [(B) a precipitous decline in the financial 
                resources of the State.
          [(2) Request.--To be eligible to receive such a 
        waiver, a State shall submit a request at such time, in 
        such form, and containing such information as the 
        Secretaries may require.

[SEC. 207. REPORTS.

  [The Secretaries may not provide a development grant under 
section 202 to a State unless the State agrees that the State 
will submit to the Secretaries such reports as the Secretaries 
may reasonably require, relating to the use of amounts from 
such grant, except that the Secretaries may not require more 
than 1 such report during any 3-month period.

                [Subtitle B--State Implementation Grants

[SEC. 211. PURPOSE.

  [The purpose of this subtitle is to assist States in the 
implementation of comprehensive statewide School-to-Work 
Opportunities systems.

[SEC. 212. AUTHORIZATION.

  [(a) Grants to States.--On the application of the Governor on 
behalf of a State in accordance with section 213, the 
Secretaries may provide an implementation grant to the State in 
such amounts as the Secretaries determine to be necessary to 
enable such State to implement a comprehensive statewide 
School-to-Work Opportunities system.
  [(b) Grants to Territories.--In providing grants under this 
section to the Commonwealth of the Northern Mariana Islands, 
American Samoa, Guam, the Virgin Islands, the Federated States 
of Micronesia, the Republic of the Marshall Islands, or the 
Republic of Palau, the Secretaries shall use amounts reserved 
under section 605(b)(1).
  [(c) Period of Grant.--The provision of payments under a 
grant under subsection (a) shall not exceed 5 fiscal years and 
shall be subject to the annual approval of the Secretaries and 
subject to the availability of appropriations for the fiscal 
year involved to make the payments.
  [(d) Limitation.--A State shall be eligible to receive only 1 
implementation grant under subsection (a).

[SEC. 213. APPLICATION.

  [(a) In General.--
          [(1) Submission by governor on behalf of state.--
        Subject to paragraph (2), the Secretaries may not 
        provide an implementation grant under section 212 to a 
        State unless the Governor of the State, on behalf of 
        the State, submits to the Secretaries an application, 
        at such time, in such form, and containing such 
        information as the Secretaries may reasonably require.
          [(2) Review and comment by certain individuals and 
        entities.--If, after a reasonable effort, the Governor 
        is unable in accordance with subsection (d)(4) to 
        obtain the support of the individuals and entities 
        described in subparagraphs (A) through (J) of 
        subsection (b)(4) for the State plan described in 
        subsection (d), then the Governor shall--
                  [(A) provide such individuals and entities 
                with copies of such application;
                  [(B) allow such individuals and entities to 
                submit to the Governor, not later than the end 
                of the 30-day period beginning on the date on 
                which the Governor provides such individuals 
                and entities with copies of such application 
                under subparagraph (A), comments on those 
                portions of the plan that address matters that, 
                under State or other applicable law, are under 
                the jurisdiction of such individuals or 
                entities; and
                  [(C) include any such comments in the 
                application in accordance with subsection 
                (b)(5).
  [(b) Contents.--Such application shall include--
          [(1) a plan for a comprehensive, statewide School-to-
        Work Opportunities system that meets the requirements 
        of subsection (d);
          [(2) a description of the manner in which the State 
        will allocate funds made available through such a grant 
        to local partnerships under section 215(b)(7);
          [(3) a request, if the State decides to submit such a 
        request, for 1 or more waivers of certain statutory or 
        regulatory requirements, as provided for under title V;
          [(4) a description of the manner in which--
                  [(A) the Governor;
                  [(B) the State educational agency;
                  [(C) the State agency officials responsible 
                for economic development;
                  [(D) the State agency officials responsible 
                for employment;
                  [(E) the State agency officials responsible 
                for job training;
                  [(F) the State agency officials responsible 
                for postsecondary education;
                  [(G) the State agency officials responsible 
                for vocational education;
                  [(H) the State agency officials responsible 
                for vocational rehabilitation;
                  [(I) the individual assigned for the State 
                under section 111(b)(1) of the Carl D. Perkins 
                Vocational and Applied Technology Education Act 
                (20 U.S.C. 2321(b)(1));
                  [(J) other appropriate officials, including 
                the State human resource investment council 
                established in accordance with title VII of the 
                Job Training Partnership Act (29 U.S.C. 1792 et 
                seq.), if the State has established such a 
                council; and
                  [(K) representatives of the private sector;
        collaborated in the development of the application;
          [(5) the comments submitted to the Governor under 
        subsection (a)(2), where applicable; and
          [(6) such other information as the Secretaries may 
        require.
  [(c) Coordination With Goals 2000: Educate America Act.--A 
State seeking assistance under both this subtitle and the Goals 
2000: Educate America Act may--
          [(1) submit a single application containing plans 
        that meet the requirements of such subtitle and such 
        Act and ensure that the plans are coordinated and not 
        duplicative; or
          [(2) if such State has already submitted its 
        application for funds under the Goals 2000: Educate 
        America Act, submit its application under this subtitle 
        as an amendment to the Goals 2000: Educate America Act 
        application if such amendment meets the requirements of 
        this subtitle and is coordinated with and not 
        duplicative of the Goals 2000: Educate America Act 
        application.
  [(d) State Plan.--A State plan referred to in subsection 
(b)(1) shall--
          [(1) designate the geographical areas, including 
        urban and rural areas, to be served by local 
        partnerships that receive grants under section 215(b), 
        which geographic areas shall, to the extent feasible, 
        reflect local labor market areas;
          [(2) describe the manner in which the State will 
        stimulate and support local School-to-Work 
        Opportunities programs and the manner in which the 
        statewide School-to-Work Opportunities system will be 
        expanded over time to cover all geographic areas in the 
        State, including urban and rural areas;
          [(3) describe the procedure by which the individuals 
        and entities described in subsection (b)(4) will 
        collaborate in the implementation of the School-to-Work 
        Opportunities system;
          [(4) demonstrate the support of individuals and 
        entities described in subparagraphs (A) through (J) of 
        subsection (b)(4) for the plan, except in the case 
        where the Governor is unable to obtain the support of 
        such individuals and entities as provided in subsection 
        (a)(2);
          [(5) describe the manner in which the State has 
        obtained and will continue to obtain the active and 
        continued involvement, in the statewide School-to-Work 
        Opportunities system, of employers and other interested 
        parties such as locally elected officials, secondary 
        schools and postsecondary educational institutions (or 
        related agencies), business associations, industrial 
        extension centers, employees, labor organizations or 
        associations of such organizations, teachers, related 
        services personnel, students, parents, community-based 
        organizations, rehabilitation agencies and 
        organizations, registered apprenticeship agencies, 
        local vocational educational agencies, vocational 
        student organizations, State or regional cooperative 
        education associations, and human service agencies;
          [(6) describe the manner in which the statewide 
        School-to-Work Opportunities system will coordinate 
        with or integrate local school-to-work programs in 
        existence on or after the date of the enactment of this 
        Act, including programs financed from State and private 
        sources, with funds available from such related Federal 
        programs as programs under--
                  [(A) the Adult Education Act (20 U.S.C. 1201 
                et seq.);
                  [(B) the Carl D. Perkins Vocational and 
                Applied Technology Education Act (20 U.S.C. 
                2301 et seq.);
                  [(C) the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 2701 et seq.);
                  [(D) the Higher Education Act of 1965 (20 
                U.S.C. 1001 et seq.);
                  [(E) part F of title IV of the Social 
                Security Act (42 U.S.C. 681 et seq.);
                  [(F) the Goals 2000: Educate America Act;
                  [(G) the National Skills Standards Act of 
                1994;
                  [(H) the Individuals with Disabilities 
                Education Act (20 U.S.C. 1400 et seq.);
                  [(I) the Job Training Partnership Act (29 
                U.S.C. 1501 et seq.);
                  [(J) the Act of August 16, 1937 (commonly 
                known as the ``National Apprenticeship Act''; 
                50 Stat. 664, chapter 663; 29 U.S.C. 50 et 
                seq.);
                  [(K) the Rehabilitation Act of 1973 (29 
                U.S.C. 701 et seq.); and
                  [(L) the National and Community Service Act 
                of 1990 (42 U.S.C. 12501 et seq.);
          [(7) describe the strategy of the State for providing 
        training for teachers, employers, mentors, counselors, 
        related services personnel, and others, including 
        specialized training and technical support for the 
        counseling and training of women, minorities, and 
        individuals with disabilities for high-skill, high-wage 
        careers in nontraditional employment, and provide 
        assurances of coordination with similar training and 
        technical support under other provisions of law;
          [(8) describe how the State will adopt, develop, or 
        assist local partnerships to adopt or develop model 
        curricula and innovative instructional methodologies, 
        to be used in the secondary, and where possible, the 
        elementary grades, that integrate academic and 
        vocational learning and promote career awareness, and 
        that are consistent with academic and skill standards 
        established pursuant to the Goals 2000: Educate America 
        Act and the National Skill Standards Act of 1994;
          [(9) describe how the State will expand and improve 
        career and academic counseling in the elementary and 
        secondary grades, which may include linkages to career 
        counseling and labor market information services 
        outside of the school system;
          [(10) describe the strategy of the State for 
        integrating academic and vocational education;
          [(11) describe the resources, including private 
        sector resources, the State intends to employ in 
        maintaining the statewide School-to-Work Opportunities 
        system when funds under this Act are no longer 
        available;
          [(12) describe the extent to which the statewide 
        School-to-Work Opportunities system will include 
        programs that will require paid high-quality, work-
        based learning experiences, and the steps the State 
        will take to generate such paid experiences;
          [(13) describe the manner in which the State will 
        ensure effective and meaningful opportunities for all 
        students in the State to participate in School-to-Work 
        Opportunities programs;
          [(14) describe the goals of the State and the methods 
        the State will use, such as awareness and outreach, to 
        ensure opportunities for young women to participate in 
        School-to-Work Opportunities programs in a manner that 
        leads to employment in high-performance, high-paying 
        jobs, including nontraditional employment, and goals to 
        ensure an environment free from racial and sexual 
        harassment;
          [(15) describe how the State will ensure 
        opportunities for low achieving students, students with 
        disabilities, school dropouts, and academically 
        talented students to participate in School-to-Work 
        Opportunities programs;
          [(16) describe the process of the State for assessing 
        the skills and knowledge required in career majors, and 
        the process for awarding skill certificates that is, to 
        the extent feasible, consistent with the skills 
        standards certification systems endorsed under the 
        National Skill Standards Act of 1994;
          [(17) describe the manner in which the State will 
        ensure that students participating in the programs are 
        provided, to the greatest extent possible, with 
        flexibility to develop new career goals over time and 
        to change career majors;
          [(18) describe the manner in which the State will, to 
        the extent feasible, continue programs funded under 
        title III in the statewide School-to-Work Opportunities 
        system;
          [(19) describe how the State will serve students from 
        rural communities with low population densities;
          [(20) describe how local School-to-Work Opportunities 
        programs, including those funded under title III, if 
        any, will be integrated into the statewide School-to-
        Work Opportunities system;
          [(21) describe the performance standards that the 
        State intends to meet in establishing and carrying out 
        the statewide School-to-Work Opportunities system, 
        including how such standards relate to those 
        performance standards established under other related 
        programs;
          [(22) designate a fiscal agent to receive and be 
        accountable for funds provided from a grant under 
        section 212; and
          [(23) describe the procedures to facilitate the entry 
        of students participating in a School-to-Work 
        Opportunities program into additional training or 
        postsecondary education programs, as well as to 
        facilitate the transfer of the students between 
        education and training programs.

[SEC. 214. REVIEW OF APPLICATION.

  [(a) Considerations.--In evaluating applications submitted 
under section 213, the Secretaries shall--
          [(1) give priority to applications that describe the 
        highest levels of concurrence by the individuals and 
        entities described in section 213(b)(4) with the State 
        plan for the statewide School-to-Work Opportunities 
        system;
          [(2) give priority to applications that require paid, 
        high-quality work-based learning experiences as an 
        integral part of such system; and
          [(3) take into consideration the quality of the 
        application, including the replicability, 
        sustainability, and innovation of School-to-Work 
        Opportunities programs described in the application.
  [(b) Approval Criteria.--The Secretaries--
          [(1) shall approve only those applications submitted 
        under section 213 that demonstrate the highest levels 
        of collaboration by the individuals and entities 
        described in section 213(b)(4) in the development and 
        implementation of the statewide School-to-Work system;
          [(2) shall approve an application submitted under 
        section 213 only if the State provides the assurances 
        described in section 206(a) (relating to maintenance of 
        effort) in accordance with such section, except that 
        this requirement may be waived in accordance with 
        section 206(b); and
          [(3) may approve an application submitted under 
        section 213 only if the State demonstrates in the 
        application--
                  [(A) that other Federal, State, and local 
                resources will be used to implement the 
                proposed State plan;
                  [(B) the extent to which such plan would 
                limit administrative costs and increase amounts 
                spent on delivery of services to students 
                enrolled in programs under this Act;
                  [(C) that the State, where appropriate, will 
                ensure the establishment of a partnership in at 
                least 1 urban and 1 rural area in the State; 
                and
                  [(D) that the State plan contained in such 
                application is consistent with the State 
                improvement plan for the State, if any, under 
                the Goals 2000: Educate America Act.
  [(c) Actions.--
          [(1) In general.--In reviewing each application 
        submitted under section 213, the Secretaries shall 
        determine whether the application and the plan 
        described in such application meet the approval 
        criteria in subsection (b).
          [(2) Actions after affirmative determination.--If the 
        determination under paragraph (1) is affirmative, the 
        Secretaries may take 1 or more of the following 
        actions:
                  [(A) Provide an implementation grant under 
                section 212 to the State submitting the 
                application.
                  [(B) Approve the request of the State, if 
                any, for a waiver in accordance with the 
                procedures set forth in title V.
          [(3) Action after nonaffirmative determination.--If 
        the determination under paragraph (1) is not 
        affirmative, the Secretaries shall inform the State of 
        the opportunity to apply for development funds under 
        subtitle A in accordance with such subtitle.
  [(d) Use of Funds for Review of Applications.--The 
Secretaries may use amounts reserved under section 605(b)(4) 
for the review of applications submitted under section 213.

[SEC. 215. USE OF AMOUNTS.

  [(a) In General.--The Secretaries may not provide an 
implementation grant under section 212 to a State unless the 
State agrees that the State will use all amounts received from 
such grant to implement the statewide School-to-Work 
Opportunities system in accordance with this section.
  [(b) Subgrants to Local Partnerships.--
          [(1) Authority.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), the State shall provide 
                subgrants to local partnerships, according to 
                criteria established by the State, for the 
                purpose of carrying out School-to-Work 
                Opportunities programs.
                  [(B) Prohibition.--The State shall not 
                provide subgrants to local partnerships that 
                have received implementation grants under title 
                III, except that this prohibition shall not 
                apply with respect to local partnerships that 
                are located in high poverty areas, as such term 
                is defined in section 307.
          [(2) Application.--A local partnership that seeks a 
        subgrant to carry out a local School-to-Work 
        Opportunities program, including a program initiated 
        under section 302, shall submit an application to the 
        State that--
                  [(A) describes how the program will include 
                the program components described in sections 
                102, 103, and 104 and otherwise meet the 
                requirements of this Act;
                  [(B) sets forth measurable program goals and 
                outcomes;
                  [(C) describes the local strategies and 
                timetables of the local partnership to provide 
                opportunities for all students in the area 
                served to participate in a School-to-Work 
                Opportunities program;
                  [(D) describes the extent to which the 
                program will require paid high-quality, work-
                based learning experiences, and the steps the 
                local partnerships will take to generate such 
                paid experiences;
                  [(E) describes the process that will be used 
                to ensure employer involvement in the 
                development and implementation of the local 
                School-to-Work Opportunities program;
                  [(F) provides assurances that, to the extent 
                practicable, opportunities provided to students 
                to participate in a School-to-Work 
                Opportunities program will be in industries and 
                occupations offering high-skill, high-wage 
                employment opportunities;
                  [(G) provides such other information as the 
                State may require; and
                  [(H) is submitted at such time and in such 
                form as the State may require.
          [(3) Disapproval of application.--If the State 
        determines that an application submitted by a local 
        partnership does not meet the criteria under paragraph 
        (2), or that the application is incomplete or otherwise 
        unsatisfactory, the State shall--
                  [(A) notify the local partnership of the 
                reasons for the failure to approve the 
                application; and
                  [(B) permit the local partnership to resubmit 
                a corrected or amended application.
          [(4) Allowable activities.--A local partnership shall 
        expend funds provided through subgrants under this 
        subsection only for activities undertaken to carry out 
        local School-to-Work Opportunities programs, and such 
        activities may include, for each such program--
                  [(A) recruiting and providing assistance to 
                employers, including small- and medium-size 
                businesses, to provide the work-based learning 
                components described in section 103;
                  [(B) establishing consortia of employers to 
                support the School-to-Work Opportunities 
                program and provide access to jobs related to 
                the career majors of students;
                  [(C) supporting or establishing 
                intermediaries (selected from among the members 
                of the local partnership) to perform the 
                activities described in section 104 and to 
                provide assistance to students or school 
                dropouts in obtaining jobs and further 
                education and training;
                  [(D) designing or adapting school curricula 
                that can be used to integrate academic, 
                vocational, and occupational learning, school-
                based and work-based learning, and secondary 
                and postsecondary education for all students in 
                the area served;
                  [(E) providing training to work-based and 
                school-based staff on new curricula, student 
                assessments, student guidance, and feedback to 
                the school regarding student performance;
                  [(F) establishing, in schools participating 
                in the School-to-Work Opportunities program, a 
                graduation assistance program to assist at-risk 
                students, low-achieving students, and students 
                with disabilities, in graduating from high 
                school, enrolling in postsecondary education or 
                training, and finding or advancing in jobs;
                  [(G) providing career exploration and 
                awareness services, counseling and mentoring 
                services, college awareness and preparation 
                services, and other services (beginning at the 
                earliest possible age, but not later than the 
                7th grade) to prepare students for the 
                transition from school to work;
                  [(H) providing supplementary and support 
                services, including child care and 
                transportation, when such services are 
                necessary for participation in a local School-
                to-Work Opportunities program;
                  [(I) conducting or obtaining an in-depth 
                analysis of the local labor market and the 
                generic and specific skill needs of employers 
                to identify high-demand, high-wage careers to 
                target;
                  [(J) integrating school-based and work-based 
                learning into job training programs that are 
                for school dropouts and that are in existence 
                on or after the date of the enactment of this 
                Act;
                  [(K) establishing or expanding school-to-
                apprenticeship programs in cooperation with 
                registered apprenticeship agencies and 
                apprenticeship sponsors;
                  [(L) assisting participating employers, 
                including small- and medium-size businesses, to 
                identify and train workplace mentors and to 
                develop work-based learning components;
                  [(M) promoting the formation of partnerships 
                between elementary schools and secondary 
                schools (including middle schools) and local 
                businesses as an investment in future workplace 
                productivity and competitiveness;
                  [(N) designing local strategies to provide 
                adequate planning time and staff development 
                activities for teachers, school counselors, 
                related services personnel, and school site 
                mentors, including opportunities outside the 
                classroom that are at the worksite;
                  [(O) enhancing linkages between after-school, 
                weekend, and summer jobs, career exploration, 
                and school-based learning; and
                  [(P) obtaining the assistance of 
                organizations and institutions that have a 
                history of success in working with school 
                dropouts and at-risk and disadvantaged youths 
                in recruiting such school dropouts and youths 
                to participate in the local School-to-Work 
                Opportunities program.
          [(5) Local partnership compact.--The State may not 
        provide a subgrant under paragraph (1) to a local 
        partnership unless the partnership agrees that the 
        local partnership will establish a process by which the 
        responsibilities and expectations of students, parents, 
        employers, and schools are clearly established and 
        agreed upon at the point of entry of the student into a 
        career major program of study.
          [(6) Administrative costs.--The local partnership may 
        not use more than 10 percent of amounts received from a 
        subgrant under paragraph (1) for any fiscal year for 
        administrative costs associated with activities in 
        carrying out, but not including, activities under 
        paragraphs (4) and (5) for such fiscal year.
          [(7) Allocation requirements.--
                  [(A) First year.--In the 1st fiscal year for 
                which a State receives amounts from a grant 
                under section 212, the State shall use not less 
                than 70 percent of such amounts to provide 
                subgrants to local partnerships under paragraph 
                (1).
                  [(B) Second year.--In the 2d fiscal year for 
                which a State receives amounts from a grant 
                under section 212, the State shall use not less 
                than 80 percent of such amounts to provide 
                subgrants to local partnerships under paragraph 
                (1).
                  [(C) Third year and succeeding years.--In the 
                3d fiscal year for which a State receives 
                amounts from a grant under section 212, and in 
                each succeeding year, the State shall use not 
                less than 90 percent of such amounts to provide 
                subgrants to local partnerships under paragraph 
                (1).
  [(c) Additional State Activities.--In carrying out the 
statewide School-to-Work Opportunities system, the State may 
also--
          [(1) recruit and provide assistance to employers to 
        provide work-based learning for all students;
          [(2) conduct outreach activities to promote and 
        support collaboration, in School-to-Work Opportunities 
        programs, by businesses, labor organizations, and other 
        organizations;
          [(3) provide training for teachers, employers, 
        workplace mentors, school site mentors, counselors, 
        related services personnel, and other parties;
          [(4) provide labor market information to local 
        partnerships that is useful in determining which high-
        skill, high-wage occupations are in demand;
          [(5) design or adapt model curricula that can be used 
        to integrate academic, vocational, and occupational 
        learning, school-based and work-based learning, and 
        secondary and postsecondary education, for all students 
        in the State;
          [(6) design or adapt model work-based learning 
        programs and identify best practices for such programs;
          [(7) conduct outreach activities and provide 
        technical assistance to other States that are 
        developing or implementing School-to-Work Opportunities 
        systems;
          [(8) reorganize and streamline school-to-work 
        programs in the State to facilitate the development of 
        a comprehensive statewide School-to-Work Opportunities 
        system;
          [(9) identify ways that local school-to-work programs 
        in existence on or after the date of the enactment of 
        this Act could be integrated with the statewide School-
        to-Work Opportunities system;
          [(10) design career awareness and exploration 
        activities (beginning at the earliest possible age, but 
        not later than the 7th grade), such as job shadowing, 
        job site visits, school visits by individuals in 
        various occupations, and mentoring;
          [(11) design and implement school-sponsored work 
        experiences, such as school-sponsored enterprises and 
        community development projects;
          [(12) promote the formation of partnerships between 
        elementary schools and secondary schools (including 
        middle schools) and local businesses as an investment 
        in future workplace productivity and competitiveness;
          [(13) obtain the assistance of organizations and 
        institutions that have a history of success in working 
        with school dropouts and at-risk and disadvantaged 
        youths in recruiting such school dropouts and youths to 
        participate in the statewide School-to-Work 
        Opportunities system;
          [(14) conduct outreach to all students in a manner 
        that most appropriately meets their needs and the needs 
        of their communities; and
          [(15) provide career exploration and awareness 
        services, counseling and mentoring services, college 
        awareness and preparation services, and other services 
        (beginning at the earliest possible age, but not later 
        than the 7th grade) to prepare students for the 
        transition from school to work.

[SEC. 216. ALLOCATION REQUIREMENT.

  [The Secretaries shall establish the minimum and maximum 
amounts available for an implementation grant under section 
212, and shall determine the actual amount granted to any State 
under such section, based on such criteria as the scope and 
quality of the plan described in section 213(d) and the number 
of projected participants in programs carried out through the 
system.

[SEC. 217. LIMITATION ON ADMINISTRATIVE COSTS.

  [A State that receives an implementation grant under section 
212 may not use more than 10 percent of the amounts received 
through the grant for any fiscal year for administrative costs 
associated with implementing the statewide School-to-Work 
Opportunities system for such fiscal year.

[SEC. 218. REPORTS.

  [The Secretaries may not provide an implementation grant 
under section 212 to a State unless the State agrees that the 
State will submit to the Secretaries such reports as the 
Secretaries may reasonably require, relating to the use of 
amounts from such grant, except that the Secretaries may not 
require more than 1 such report during any 3-month period.

 [Subtitle C--Development and Implementation Grants for School-to-Work 
                       Programs for Indian Youths

[SEC. 221. AUTHORIZATION.

  [(a) In General.--From amounts reserved under section 
605(b)(2), the Secretaries shall provide grants to establish 
and carry out School-to-Work Opportunities programs for Indian 
youths that involve Bureau funded schools (as defined in 
section 1139(3) of the Education Amendments of 1978 (25 U.S.C. 
2019(3))).
  [(b) Additional Authorities.--The Secretaries may carry out 
subsection (a) through such means as the Secretaries find 
appropriate, including--
          [(1) the transfer of funds to the Secretary of the 
        Interior; and
          [(2) the provision of financial assistance to Indian 
        tribes and Indian organizations.

[SEC. 222. REQUIREMENTS.

  [In providing grants under section 221, the Secretaries shall 
require recipients of such grants to comply with requirements 
similar to those requirements imposed on States under subtitles 
A and B of this title.
    [TITLE III--FEDERAL IMPLEMENTATION GRANTS TO LOCAL PARTNERSHIPS

[SEC. 301. PURPOSES.

  [The purposes of this title are--
          [(1) to authorize the Secretaries to provide 
        competitive grants directly to local partnerships in 
        order to provide funding for communities that have 
        built a sound planning and development base for School-
        to-Work Opportunities programs and are ready to begin 
        implementing a local School-to-Work Opportunities 
        program; and
          [(2) to authorize the Secretaries to provide 
        competitive grants to local partnerships to implement 
        School-to-Work Opportunities programs in high poverty 
        areas of urban and rural communities to provide support 
        for a comprehensive range of education, training, and 
        support services for youths residing in such areas.

[SEC. 302. AUTHORIZATION.

  [(a) Grants to Local Partnerships.--
          [(1) In general.--Subject to paragraph (2), the 
        Secretaries may provide implementation grants, in 
        accordance with competitive criteria established by the 
        Secretaries, directly to local partnerships in States 
        in such amounts as the Secretaries determine to be 
        necessary to enable such partnerships to implement 
        School-to-Work Opportunities programs.
          [(2) Restrictions.--A local partnership--
                  [(A) shall be eligible to receive only 1 
                grant under this subsection; and
                  [(B) shall not be eligible to receive a grant 
                under this subsection if such partnership is 
                located in a State that--
                          [(i) has been provided an 
                        implementation grant under section 212; 
                        and
                          [(ii) has received amounts from such 
                        grant for any fiscal year after the 1st 
                        fiscal year under such grant.
  [(b) Grants to Local Partnerships in High Poverty Areas.--
          [(1) In general.--Subject to paragraphs (2) and (3), 
        the Secretaries shall, from amounts reserved under 
        section 605(b)(3), provide grants to local partnerships 
        that are located in high poverty areas in States in 
        such amounts as the Secretaries determine to be 
        necessary to enable such partnerships to implement 
        School-to-Work Opportunities programs in such areas.
          [(2) Restriction.--A local partnership shall be 
        eligible to receive only 1 grant under this subsection.
          [(3) Priority.--In providing grants under paragraph 
        (1), the Secretaries shall give priority to local 
        partnerships that have a demonstrated effectiveness in 
        the delivery of comprehensive vocational preparation 
        programs with successful rates in job placement through 
        cooperative activities among local educational 
        agencies, local businesses, labor organizations, and 
        other organizations.
  [(c) Period of Grant.--The provision of payments under a 
grant under subsection (a) or (b) shall not exceed 5 fiscal 
years and shall be subject to the annual approval of the 
Secretaries and subject to the availability of appropriations 
for the fiscal year involved to make the payments.

[SEC. 303. APPLICATION.

  [(a) In General.--A local partnership that desires to receive 
a Federal implementation grant under section 302 shall submit 
an application to the Secretaries at such time and in such form 
as the Secretaries may require. The local partnership shall 
submit the application to the State for review and comment 
before submitting the application to the Secretaries.
  [(b) Time Limit for State Review and Comment.--
          [(1) In general.--The State shall provide for review 
        and comment on the application under subsection (a) not 
        later than 30 days after the date on which the State 
        receives the application from the local partnership.
          [(2) Submission without state review and comment.--If 
        the State does not provide review and comment within 
        the 30-day time period specified in paragraph (1), the 
        local partnership may submit the application to the 
        Secretaries without first obtaining such review and 
        comment.
  [(c) Contents.--The application described in subsection (a) 
shall include a plan for local School-to-Work Opportunities 
programs that--
          [(1) describes the manner in which the local 
        partnership will meet the requirements of this Act;
          [(2) includes the comments of the State on the plan, 
        if any;
          [(3) contains information that is consistent with the 
        information required to be submitted as part of a State 
        plan in accordance with paragraphs (5) through (17) and 
        paragraph (23) of section 213(d);
          [(4) designates a fiscal agent to receive and be 
        accountable for funds under this section; and
          [(5) provides such other information as the 
        Secretaries may require.
  [(d) Use of Funds for Review of Applications.--The 
Secretaries may use amounts reserved under section 605(b)(4) 
for the review of applications submitted under subsection (a).

[SEC. 304. USE OF AMOUNTS.

  [The Secretaries may not provide an implementation grant 
under section 302 to a local partnership unless the partnership 
agrees that it will use all amounts from such grant to carry 
out activities to implement a School-to-Work Opportunities 
program, including the activities described in section 
215(b)(4).

[SEC. 305. CONFORMITY WITH APPROVED STATE PLAN.

  [The Secretaries shall not provide a grant under section 302 
to a local partnership in a State that has an approved State 
plan unless the Secretaries determine, after consultation with 
the State, that the plan submitted by the partnership is in 
accordance with such approved State plan.

[SEC. 306. REPORTS.

  [The Secretaries may not provide an implementation grant 
under section 302 to a local partnership unless the partnership 
agrees that the local partnership will submit to the 
Secretaries such reports as the Secretaries may reasonably 
require, relating to the use of amounts from such grant, except 
that the Secretaries may not require more than 1 such report 
during any 3-month period.

[SEC. 307. HIGH POVERTY AREA DEFINED.

  [For purposes of this title, the term ``high poverty area'' 
means an urban census tract, a contiguous group of urban census 
tracts, a block number area in a nonmetropolitan county, a 
contiguous group of block number areas in a nonmetropolitan 
county, or an Indian reservation (as defined in section 403(9) 
of the Indian Child Protection and Family Violence Prevention 
Act (25 U.S.C. 3202(9))), with a poverty rate of 20 percent or 
more among individuals who have not attained the age of 22, as 
determined by the Bureau of the Census.

                      [TITLE IV--NATIONAL PROGRAMS

[SEC. 401. RESEARCH, DEMONSTRATION, AND OTHER PROJECTS.

  [(a) In General.--The Secretaries shall conduct research and 
development projects and establish a program of experimental 
and demonstration projects, to further the purposes of this 
Act.
  [(b) Additional Use of Funds.--The Secretaries may provide 
assistance for programs or services authorized under any other 
provision of this Act that are most appropriately administered 
at the national level and that will operate in, or benefit, 
more than 1 State.

[SEC. 402. PERFORMANCE OUTCOMES AND EVALUATION.

  [(a) In General.--The Secretaries, in collaboration with the 
States, shall by grant, contract, or otherwise, establish a 
system of performance measures for assessing State and local 
programs regarding--
          [(1) progress in the development and implementation 
        of State plans described in section 213(d) that include 
        the basic program components described in sections 102, 
        103, and 104 and otherwise meet the requirements of 
        title I;
          [(2) participation in School-to-Work Opportunities 
        programs by employers, schools, students, and school 
        dropouts, including information on the gender, race, 
        ethnicity, socioeconomic background, limited-English 
        proficiency, and disability of all participants and 
        whether the participants are academically talented 
        students;
          [(3) progress in developing and implementing 
        strategies for addressing the needs of students and 
        school dropouts;
          [(4) progress in meeting the goals of the State to 
        ensure opportunities for young women to participate in 
        School-to-Work Opportunities programs, including 
        participation in nontraditional employment through such 
        programs;
          [(5) outcomes for participating students and school 
        dropouts, by gender, race, ethnicity, socioeconomic 
        background, limited-English proficiency, and disability 
        of the participants, and whether the participants are 
        academically talented students, including information 
        on--
                  [(A) academic learning gains;
                  [(B) staying in school and attaining--
                          [(i) a high school diploma, or a 
                        general equivalency diploma, or an 
                        alternative diploma or certificate for 
                        those students with disabilities for 
                        whom such alternative diploma or 
                        certificate is appropriate;
                          [(ii) a skill certificate; and
                          [(iii) a postsecondary degree;
                  [(C) attainment of strong experience in and 
                understanding of all aspects of the industry 
                the students are preparing to enter;
                  [(D) placement and retention in further 
                education or training, particularly in the 
                career major of the student; and
                  [(E) job placement, retention, and earnings, 
                particularly in the career major of the 
                student; and
          [(6) the extent to which the program has met the 
        needs of employers.
  [(b) Evaluation.--Not later than September 30, 1998, the 
Secretaries shall complete a national evaluation of School-to-
Work Opportunities programs funded under this Act by grants, 
contracts, or otherwise, that will track and assess the 
progress of implementation of State and local programs and 
their effectiveness based on measures such as those measures 
described in subsection (a).
  [(c) Reports to the Secretaries.--
          [(1) In general.--Each State shall prepare and submit 
        to the Secretaries periodic reports, at such intervals 
        as the Secretaries may determine, containing 
        information regarding the matters described in 
        paragraphs (1) through (6) of subsection (a).
          [(2) Federal programs.--Each State shall prepare and 
        submit reports to the Secretaries, at such intervals as 
        the Secretaries may determine, containing information 
        on the extent to which Federal programs that are in 
        existence on the date of submission of the report and 
        that are implemented at the State or local level may be 
        duplicative, outdated, overly restrictive, or otherwise 
        counterproductive to the development of comprehensive 
        statewide School-to-Work Opportunities systems.

[SEC. 403. TRAINING AND TECHNICAL ASSISTANCE.

  [(a) Purpose.--The Secretaries shall work in cooperation with 
the States, the individuals assigned under section 111(b)(1) of 
the Carl D. Perkins Vocational and Applied Technology Education 
Act (20 U.S.C. 2321(b)(1)), employers and their associations, 
secondary schools and postsecondary educational institutions, 
student and teacher organizations, labor organizations, and 
community-based organizations, to increase their capacity to 
develop and implement effective School-to-Work Opportunities 
programs.
  [(b) Authorized Activities.--The Secretaries shall provide, 
through grants, contracts, or otherwise--
          [(1) training, technical assistance, and other 
        activities that will--
                  [(A) enhance the skills, knowledge, and 
                expertise of the personnel involved in planning 
                and implementing State and local School-to-Work 
                Opportunities programs, such as training of the 
                personnel to assist students; and
                  [(B) improve the quality of services provided 
                to individuals served under this Act;
          [(2) assistance to States and local partnerships 
        involved in carrying out School-to-Work Opportunities 
        programs in order to integrate resources available 
        under this Act with resources available under other 
        Federal, State, and local authorities;
          [(3) assistance to States and such local 
        partnerships, including local partnerships in rural 
        communities with low population densities or in urban 
        areas, to recruit employers to provide the work-based 
        learning component, described in section 103, of 
        School-to-Work Opportunities programs; and
          [(4) assistance to States and local partnerships 
        involved in carrying out School-to-Work Opportunities 
        programs to design and implement school-sponsored 
        enterprises.

[SEC. 404. CAPACITY BUILDING AND INFORMATION AND DISSEMINATION NETWORK.

  [The Secretaries, acting through such mechanisms as the 
Capacity Building and Information and Dissemination Network 
established under section 453(b) of the Job Training 
Partnership Act (29 U.S.C. 1733(b)), the Educational Resources 
Information Center Clearinghouses referred to in the 
Educational Research, Development, Dissemination, and 
Improvement Act of 1994, and the National Network for 
Curriculum Coordination in Vocational and Technical Education 
under section 402(c) of the Carl D. Perkins Vocational and 
Applied Technology Education Act (20 U.S.C. 2402(c)), shall--
          [(1) collect and disseminate information--
                  [(A) on successful School-to-Work 
                Opportunities programs and innovative school- 
                and work-based curricula;
                  [(B) on research and evaluation conducted 
                concerning school-to-work activities;
                  [(C) that will assist States and local 
                partnerships in undertaking labor market 
                analysis, surveys, or other activities related 
                to economic development;
                  [(D) on skill certificates, skill standards, 
                and related assessment technologies; and
                  [(E) on methods for recruiting and building 
                the capacity of employers to provide work-based 
                learning opportunities; and
          [(2) facilitate communication and the exchange of 
        information and ideas among States and local 
        partnerships carrying out School-to-Work Opportunities 
        programs.

[SEC. 405. REPORTS TO CONGRESS.

  [(a) In General.--Not later than 24 months after the date of 
the enactment of this Act, and every 12 months thereafter, the 
Secretaries shall prepare and submit a report to the Congress 
on all activities carried out pursuant to this Act.
  [(b) Contents.--The Secretaries shall, at a minimum, include 
in each such report--
          [(1) information concerning the programs that receive 
        assistance under this Act;
          [(2) a summary of the information contained in the 
        State and local partnership reports submitted under 
        titles II and III and section 402(c); and
          [(3) information regarding the findings and actions 
        taken as a result of any evaluation conducted by the 
        Secretaries.

[SEC. 406. FUNDING.

  [The Secretaries shall use funds reserved under section 
605(b)(4) to carry out activities under this title.
       [TITLE V--WAIVER OF STATUTORY AND REGULATORY REQUIREMENTS

[SEC. 501. STATE AND LOCAL PARTNERSHIP REQUESTS AND RESPONSIBILITIES 
                    FOR WAIVERS.

  [(a) State Request for Waiver.--A State may submit to the 
Secretaries a request for a waiver of 1 or more requirements of 
the provisions of law referred to in sections 502 and 503, or 
of the regulations issued under such provisions, in order to 
carry out the statewide School-to-Work Opportunities system 
established by such State under subtitle B of title II. The 
State may submit the request as a part of the application 
described in section 213 (or as an amendment to the application 
at any time after submission of the application). Such request 
may include a request for different waivers with respect to 
different areas within the State.
  [(b) Local Partnership Request for Waiver.--
          [(1) In general.--A local partnership that seeks a 
        waiver of such a requirement shall submit an 
        application for such waiver to the State, and the State 
        shall determine whether to submit a request for a 
        waiver to the Secretaries, as provided in subsection 
        (a).
          [(2) Time limit.--
                  [(A) In general.--The State shall make a 
                determination to submit or not submit the 
                request for a waiver under paragraph (1) not 
                later than 30 days after the date on which the 
                State receives the application from the local 
                partnership.
                  [(B) Direct submission.--
                          [(i) In general.--If the State does 
                        not make a determination to submit or 
                        not submit the request within the 30-
                        day time period specified in 
                        subparagraph (A), the local partnership 
                        may submit the application to the 
                        Secretaries.
                          [(ii) Requirements.--In submitting 
                        such an application, the local 
                        partnership shall obtain the agreement 
                        of the State involved to comply with 
                        the requirements of section 
                        502(a)(1)(C) or 503(a)(1)(C), as 
                        appropriate, and comply with the other 
                        requirements of section 502 or 503, as 
                        appropriate, and of subsections (c) and 
                        (d), that would otherwise apply to a 
                        State submitting a request for a 
                        waiver. In reviewing such an 
                        application, the Secretaries shall 
                        comply with the requirements of such 
                        section and such subsections that would 
                        otherwise apply to the Secretaries with 
                        respect to review of such a request.
  [(c) Waiver Criteria.--Any such request by the State shall 
meet the criteria contained in section 502 or 503 and shall 
specify the provisions or regulations referred to in such 
sections with respect to which the State seeks a waiver.
  [(d) Support by Appropriate State Agencies.--In requesting 
such a waiver, the State shall provide evidence of support for 
the waiver request by the State agencies or officials with 
jurisdiction over the provisions or regulations that would be 
waived.

[SEC. 502. WAIVER AUTHORITY OF SECRETARY OF EDUCATION.

  [(a) Waiver Authority.--
          [(1) In general.--Except as provided in subsection 
        (c), the Secretary of Education may waive any 
        requirement under any provision of law referred to in 
        subsection (b), or of any regulation issued under such 
        provision, for a State that requests such a waiver and 
        has an approved State plan--
                  [(A) if, and only to the extent that, the 
                Secretary of Education determines that such 
                requirement impedes the ability of the State or 
                a local partnership to carry out the purposes 
                of this Act;
                  [(B) if the State provides the Secretary of 
                Education with documentation of the necessity 
                for the waiver, including information 
                concerning--
                          [(i) the specific requirement that 
                        will be waived;
                          [(ii) the specific positive outcomes 
                        expected from the waiver and why those 
                        outcomes cannot be achieved while 
                        complying with the requirement;
                          [(iii) the process that will be used 
                        to monitor the progress of the State or 
                        local partnership in implementing the 
                        waiver; and
                          [(iv) such other information as the 
                        Secretary of Education may require;
                  [(C) if the State waives, or agrees to waive, 
                similar requirements of State law; and
                  [(D) if the State--
                          [(i) has provided all local 
                        partnerships that carry out programs 
                        under this Act, and local educational 
                        agencies participating in such a local 
                        partnership, in the State with notice 
                        and an opportunity to comment on the 
                        proposal of the State to seek a waiver;
                          [(ii) provides, to the extent 
                        feasible, to students, parents, 
                        advocacy and civil rights groups, and 
                        labor and business organizations an 
                        opportunity to comment on the proposal 
                        of the State to seek a waiver; and
                          [(iii) has submitted the comments of 
                        the local partnerships and local 
                        educational agencies to the Secretary 
                        of Education.
          [(2) Approval or disapproval.--The Secretary of 
        Education shall promptly approve or disapprove any 
        request submitted pursuant to paragraph (1) and shall 
        issue a decision that shall--
                  [(A) include the reasons for approving or 
                disapproving the request, including a response 
                to comments on the proposal; and
                  [(B) in the case of a decision to approve the 
                request, be disseminated by the State seeking 
                the waiver to interested parties, including 
                educators, parents, students, advocacy and 
                civil rights organizations, labor and business 
                organizations, and the public.
          [(3) Approval criteria.--In approving a request under 
        paragraph (2), the Secretary of Education shall 
        consider the amount of State resources that will be 
        used to implement the approved State plan.
          [(4) Term.--Each waiver approved pursuant to this 
        subsection shall be for a period not to exceed 5 years, 
        except that the Secretary of Education may extend such 
        period if the Secretary of Education determines that 
        the waiver has been effective in enabling the State or 
        local partnership to carry out the purposes of this 
        Act.
  [(b) Included Programs.--The provisions subject to the waiver 
authority of this section are--
          [(1) chapter 1 of title I of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 2701 et 
        seq.), including the Even Start programs carried out 
        under part B of such chapter (20 U.S.C. 2741 et seq.);
          [(2) part A of chapter 2 of title I of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 2921 et 
        seq.);
          [(3) part A of title II of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 2981 et 
        seq.);
          [(4) part D of title IV of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 3121 et 
        seq.);
          [(5) title V of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 3171 et seq.); and
          [(6) the Carl D. Perkins Vocational and Applied 
        Technology Education Act (20 U.S.C. 2301 et seq.).
  [(c) Waivers Not Authorized.--The Secretary of Education may 
not waive any requirement of any provision referred to in 
subsection (b), or of any regulation issued under such 
provision, relating to--
          [(1) the basic purposes or goals of such provision;
          [(2) maintenance of effort;
          [(3) comparability of services;
          [(4) the equitable participation of students 
        attending private schools;
          [(5) student and parental participation and 
        involvement;
          [(6) the distribution of funds to State or local 
        educational agencies;
          [(7) the eligibility of an individual for 
        participation in a program under such provision;
          [(8) public health or safety, labor standards, civil 
        rights, occupational safety and health, or 
        environmental protection; or
          [(9) prohibitions or restrictions relating to the 
        construction of buildings or facilities.
  [(d) Termination of Waivers.--The Secretary of Education 
shall periodically review the performance of any State, local 
partnership, or local educational agency, for which the 
Secretary of Education has granted a waiver under this section 
and shall terminate the waiver under this section if the 
Secretary of Education determines that the performance of the 
State, local partnership, or local educational agency that is 
affected by the waiver has been inadequate to justify a 
continuation of the waiver, or the State fails to waive similar 
requirements of State law as required or agreed to in 
accordance with subsection (a)(1)(C).

[SEC. 503. WAIVER AUTHORITY OF SECRETARY OF LABOR.

  [(a) Waiver Authority.--
          [(1) In general.--Except as provided in subsection 
        (b), the Secretary of Labor may waive any requirement 
        under any provision of the Job Training Partnership Act 
        (29 U.S.C. 1501 et seq.), or of any regulation issued 
        under such provision, for a State that requests such a 
        waiver and has an approved State plan--
                  [(A) if, and only to the extent that, the 
                Secretary of Labor determines that such 
                requirement impedes the ability of the State or 
                a local partnership to carry out the purposes 
                of this Act;
                  [(B) if the State provides the Secretary of 
                Labor with documentation of the necessity for 
                the waiver, including information concerning--
                          [(i) the specific requirement that 
                        will be waived;
                          [(ii) the specific positive outcomes 
                        expected from the waiver and why those 
                        outcomes cannot be achieved while 
                        complying with the requirement;
                          [(iii) the process that will be used 
                        to monitor the progress of the State or 
                        local partnership in implementing the 
                        waiver; and
                          [(iv) such other information as the 
                        Secretary of Labor may require;
                  [(C) if the State waives, or agrees to waive, 
                similar requirements of State law; and
                  [(D) if the State--
                          [(i) has provided all local 
                        partnerships that carry out programs 
                        under this Act in the State with notice 
                        and an opportunity to comment on the 
                        proposal of the State to seek a waiver;
                          [(ii) provides, to the extent 
                        feasible, to students, parents, 
                        advocacy and civil rights groups, and 
                        labor and business organizations an 
                        opportunity to comment on the proposal 
                        of the State to seek a waiver; and
                          [(iii) has submitted the comments of 
                        the local partnerships to the Secretary 
                        of Labor.
          [(2) Approval or disapproval.--The Secretary of Labor 
        shall promptly approve or disapprove any request 
        submitted pursuant to paragraph (1) and shall issue a 
        decision that shall--
                  [(A) include the reasons for approving or 
                disapproving the request, including a response 
                to comments on the proposal; and
                  [(B) in the case of a decision to approve the 
                request, be disseminated by the State seeking 
                the waiver to interested parties, including 
                educators, parents, students, advocacy and 
                civil rights organizations, labor and business 
                organizations, and the public.
          [(3) Approval criteria.--In approving a request under 
        paragraph (2), the Secretary of Labor shall consider 
        the amount of State resources that will be used to 
        implement the approved State plan.
          [(4) Term.--Each waiver approved pursuant to this 
        subsection shall be for a period not to exceed 5 years, 
        except that the Secretary of Labor may extend such 
        period if the Secretary of Labor determines that the 
        waiver has been effective in enabling the State or 
        local partnership to carry out the purposes of this 
        Act.
  [(b) Waivers Not Authorized.--The Secretary of Labor may not 
waive any requirement under any provision of the Job Training 
Partnership Act (29 U.S.C. 1501 et seq.), or of any regulation 
issued under such provision, relating to--
          [(1) the basic purposes or goals of such provision;
          [(2) maintenance of effort;
          [(3) the distribution of funds;
          [(4) the eligibility of an individual for 
        participation in a program under such provision;
          [(5) public health or safety, labor standards, civil 
        rights, occupational safety and health, or 
        environmental protection; or
          [(6) prohibitions or restrictions relating to the 
        construction of buildings or facilities.
  [(c) Termination of Waivers.--The Secretary of Labor shall 
periodically review the performance of any State or local 
partnership for which the Secretary of Labor has granted a 
waiver under this section and shall terminate the waiver under 
this section if the Secretary of Labor determines that the 
performance of the State or local partnership affected by the 
waiver has been inadequate to justify a continuation of the 
waiver, or the State fails to waive similar requirements of 
State law as required or agreed to in accordance with 
subsection (a)(1)(C).

[SEC. 504. COMBINATION OF FEDERAL FUNDS FOR HIGH POVERTY SCHOOLS.

  [(a) In General.--
          [(1) Purposes.--The purposes of this section are--
                  [(A) to integrate activities under this Act 
                with school-to-work activities carried out 
                under other Acts; and
                  [(B) to maximize the effective use of 
                resources.
          [(2) Combination of funds.--To carry out such 
        purposes, a local partnership that receives assistance 
        under title II or III may carry out schoolwide school-
        to-work activities in schools that meet the 
        requirements of subparagraphs (A) and (B) of section 
        263(g)(1) of the Job Training Partnership Act (29 
        U.S.C. 1643(g)(1) (A) and (B)) with funds obtained by 
        combining--
                  [(A) Federal funds under this Act; and
                  [(B) other Federal funds made available from 
                among programs under--
                          [(i) the provisions of law listed in 
                        paragraphs (2) through (6) of section 
                        502(b); and
                          [(ii) the Job Training Partnership 
                        Act (29 U.S.C. 1501 et seq.).
  [(b) Use of Funds.--A local partnership may use the Federal 
funds combined under subsection (a) under the requirements of 
this Act, except that the provisions relating to the matters 
specified in paragraphs (1) through (6) and paragraphs (8) and 
(9) of section 502(c), and paragraphs (1) through (3) and 
paragraphs (5) and (6) of section 503(b), that relate to the 
program through which the funds described in subsection 
(a)(2)(B) were made available, shall remain in effect with 
respect to the use of such funds.
  [(c) Additional Information in Application.--A local 
partnership seeking to combine funds under subsection (a) shall 
include in the application of the local partnership under title 
II or III--
          [(1) a description of the funds the local partnership 
        proposes to combine under the requirements of this Act;
          [(2) the activities to be carried out with such 
        funds;
          [(3) the specific outcomes expected of participants 
        in schoolwide school-to-work activities; and
          [(4) such other information as the State, or 
        Secretaries, as the case may be, may require.
  [(d) Provision of Information.--The local partnership shall, 
to the extent feasible, provide information on the proposed 
combination of Federal funds under subsection (a) to educators, 
parents, students, advocacy and civil rights organizations, 
labor and business organizations, and the public.

[SEC. 505. COMBINATION OF FEDERAL FUNDS BY STATES FOR SCHOOL-TO-WORK 
                    ACTIVITIES.

  [(a) In General.--
          [(1) Purposes.--The purposes of this section are--
                  [(A) to integrate activities under this Act 
                with State school-to-work activities carried 
                out under other Acts; and
                  [(B) to maximize the effective use of 
                resources.
          [(2) Combination of funds.--To carry out such 
        purposes, a State that has an approved State plan may 
        carry out activities necessary to develop and implement 
        a statewide School-to-Work Opportunities system with 
        funds obtained by combining--
                  [(A) Federal funds under this Act; and
                  [(B) other Federal funds that are made 
                available under--
                          [(i) section 102(a)(3) of the Carl D. 
                        Perkins Vocational Education and 
                        Applied Technology Education Act (20 
                        U.S.C. 2312(a)(3));
                          [(ii) section 202(c)(1)(C) or section 
                        262(c)(1)(C) of the Job Training 
                        Partnership Act (29 U.S.C. 
                        1602(c)(1)(C) or 1642(c)(1)(C));
                          [(iii) section 202(c)(1)(B) of the 
                        Job Training Partnership Act that would 
                        otherwise be available for the purposes 
                        described in section 202(c)(3) of such 
                        Act; or
                          [(iv) section 262(c)(1)(B) of the Job 
                        Training Partnership Act that would 
                        otherwise be available for the purposes 
                        described in section 262(c)(3) of such 
                        Act.
  [(b) Use of Funds.--A State may use, under the requirements 
of this Act, Federal funds that are made available to the State 
and combined under subsection (a) to carry out school-to-work 
activities, except that the provisions relating to the matters 
specified in section 502(c), and section 503(b), that relate to 
the program through which the funds described in subsection 
(a)(2)(B) were made available, shall remain in effect with 
respect to the use of such funds.
  [(c) Additional Information in Application.--A State seeking 
to combine funds under subsection (a) shall include in the 
application described in section 213--
          [(1) a description of the funds the State proposes to 
        combine under the requirements of this Act;
          [(2) the activities to be carried out with such 
        funds;
          [(3) the specific outcomes expected of participants 
        in school-to-work activities;
          [(4) formal evidence of support for the request by 
        the State agencies or officials with jurisdiction over 
        the funds that would be combined; and
          [(5) such other information as the Secretaries may 
        require.
  [(d) Extension.--The authority of a State to combine funds 
under this section shall not exceed 5 years, except that the 
Secretaries may extend such period if the Secretaries determine 
that an extension of such authority would further the purposes 
of this Act.
  [(e) Limitation.--Nothing in this section shall be construed 
to relieve a State of an obligation to conduct the activities 
required under section 201(b) of the Carl D. Perkins Vocational 
Education and Applied Technology Education Act.

                     [TITLE VI--GENERAL PROVISIONS

[SEC. 601. REQUIREMENTS.

  [The following requirements shall apply to programs under 
this Act:
          [(1) Prohibition on displacement.--No student 
        participating in such a program shall displace any 
        currently employed worker (including a partial 
        displacement, such as a reduction in the hours of 
        nonovertime work, wages, or employment benefits).
          [(2) Prohibition on impairment of contracts.--No such 
        program shall impair existing contracts for services or 
        collective bargaining agreements, and no such program 
        that would be inconsistent with the terms of a 
        collective bargaining agreement shall be undertaken 
        without the written concurrence of the labor 
        organization and employer concerned.
          [(3) Prohibition on replacement.--No student 
        participating in such a program shall be employed or 
        fill a job--
                  [(A) when any other individual is on 
                temporary layoff, with the clear possibility of 
                recall, from the same or any substantially 
                equivalent job with the participating employer; 
                or
                  [(B) when the employer has terminated the 
                employment of any regular employee or otherwise 
                reduced the workforce of the employer with the 
                intention of filling the vacancy so created 
                with the student.
          [(4) Workplaces.--Students participating in such 
        programs shall be provided with adequate and safe 
        equipment and safe and healthful workplaces in 
        conformity with all health and safety requirements of 
        Federal, State, and local law.
          [(5) Effect on other laws.--Nothing in this Act shall 
        be construed to modify or affect any Federal or State 
        law prohibiting discrimination on the basis of race, 
        religion, color, ethnicity, national origin, gender, 
        age, or disability, or to modify or affect any right to 
        enforcement of this Act that may exist under other 
        Federal laws, except as expressly provided by this Act.
          [(6) Prohibition concerning wages.--Funds 
        appropriated under authority of this Act shall not be 
        expended for wages of students or workplace mentors 
        participating in such programs.
          [(7) Other requirements.--The Secretaries shall 
        establish such other requirements as the Secretaries 
        may determine to be appropriate, in order to ensure 
        that participants in programs under this Act are 
        afforded adequate supervision by skilled adult workers, 
        or to otherwise further the purposes of this Act.

[SEC. 602. SANCTIONS.

  [(a) Termination or Suspension of Assistance.--
          [(1) In general.--The Secretaries may terminate or 
        suspend any financial assistance under this Act, in 
        whole or in part, or not make payments under a grant 
        awarded under this Act, if the Secretaries determine 
        that a recipient has failed to meet any requirements of 
        this Act, including--
                  [(A) reporting requirements under section 
                402(c);
                  [(B) regulations under this Act; or
                  [(C) requirements of an approved State plan.
          [(2) Notice and opportunity for hearing.--If the 
        Secretaries terminate or suspend such financial 
        assistance, or do not make such payments under 
        paragraph (1), with respect to a recipient, then the 
        Secretaries shall provide--
                  [(A) prompt notice to such recipient; and
                  [(B) the opportunity for a hearing to such 
                recipient not later than 30 days after the date 
                on which such notice is provided.
  [(b) Nondelegation.--The Secretaries shall not delegate any 
of the functions or authority specified in this section, other 
than to an officer whose appointment is required to be made by 
and with the advice and consent of the Senate.

[SEC. 603. STATE AUTHORITY.

  [Nothing in this Act shall be construed to negate or 
supersede the legal authority, under State law or other 
applicable law, of any State agency, State entity, or State 
public official over programs that are under the jurisdiction 
of the agency, entity, or official. Nothing in this Act shall 
be construed to interfere with the authority of such agency, 
entity, or official to enter into a contract under any 
provision of law.

[SEC. 604. PROHIBITION ON FEDERAL MANDATES, DIRECTION, AND CONTROL.

  [Nothing in this Act shall be construed to authorize an 
officer or employee of the Federal Government to mandate, 
direct, or control a State's, local educational agency's, or 
school's curriculum, program of instruction, or allocation of 
State or local resources or mandate a State or any subdivision 
thereof to spend any funds or incur any costs not paid for 
under this Act.
[SEC. 605. AUTHORIZATION OF APPROPRIATIONS.

  [(a) In General.--There are authorized to be appropriated to 
the Secretaries to carry out this Act $300,000,000 for fiscal 
year 1995 and such sums as may be necessary for each of the 
fiscal years 1996 through 1999.
  [(b) Reservations.--From amounts appropriated under 
subsection (a) for any fiscal year, the Secretaries--
          [(1) shall reserve not more than \1/2\ of 1 percent 
        of such amounts for such fiscal year to provide grants 
        under sections 202 and 212 to the jurisdictions 
        described in section 202(b);
          [(2) shall reserve not more than \1/2\ of 1 percent 
        of such amounts for such fiscal year to provide grants 
        under subtitle C of title II to establish and carry out 
        School-to-Work Opportunities programs for Indian youths 
        that involve Bureau funded schools (as defined in 
        section 1139(3) of the Education Amendments of 1978 (25 
        U.S.C. 2019(3)));
          [(3) shall reserve 10 percent of such amounts for 
        such fiscal year to provide grants under section 302(b) 
        to local partnerships located in high poverty areas, 
        which reserved funds may be used in conjunction with 
        funds available under the Youth Fair Chance Program set 
        forth in part H of title IV of the Job Training 
        Partnership Act (29 U.S.C. 1782 et seq.); and
          [(4)(A) shall reserve 2.5 percent of such amounts for 
        such fiscal year to carry out section 404; and
          [(B) shall reserve not more than an additional 5 
        percent of such amounts for such fiscal year to carry 
        out other activities under title IV, and activities 
        under sections 214(d) and 303(d).
  [(c) Availability of Funds.--Funds appropriated for any 
fiscal year for programs authorized under this Act shall remain 
available until expended.

                       [TITLE VII--OTHER PROGRAMS

     [Subtitle A--Reauthorization of Job Training for the Homeless 
Demonstration Program Under the Stewart B. McKinney Homeless Assistance 
                                  Act

[SEC. 701. REAUTHORIZATION.

  [(a) In General.--Section 739(a) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11449(a)) is amended by 
striking ``the following amounts:'' and all that follows and 
inserting ``such sums as may be necessary for each of the 
fiscal years 1994 and 1995.''.
  [(b) Conforming Amendment.--Section 741 of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11450) is amended 
by striking ``1993'' and inserting ``1995''.

                    [Subtitle B--Tech-Prep Programs

[SEC. 711. TECH-PREP EDUCATION.

  [(a) Contents of Program.--Section 344(b)(2) of the Tech-Prep 
Education Act (20 U.S.C. 2394b(b)(2)) is amended by inserting 
``or 4 years'' before ``of secondary school''.
  [(b) Special Consideration; Priority.--Section 345(d)(2) of 
the Tech-Prep Education Act (20 U.S.C. 2394c(d)(2)) is amended 
to read as follows:
          [``(2) are developed in consultation with business, 
        industry, labor unions, and institutions of higher 
        education that award baccalaureate degrees; and''.

               [Subtitle C--Alaska Native Art and Culture

[SEC. 721. SHORT TITLE.

  [This title may be cited as the ``Alaska Native Culture and 
Arts Development Act''.

[SEC. 722. ALASKA NATIVE ART AND CULTURE.

  [Part B of title XV of the Higher Education Amendments of 
1986 (20 U.S.C. 4441 et seq.) is amended--
          [(1) in the part heading, to read as follows:

           [``Part B--Native Hawaiians and Alaska Natives'';

        and
          [(2) in section 1521, to read as follows:

[``SEC. 1521. PROGRAM FOR NATIVE HAWAIIAN AND ALASKA NATIVE CULTURE AND 
                    ARTS DEVELOPMENT.

  [``(a) In General.--The Secretary of the Interior is 
authorized to make grants for the purpose of supporting 
programs for Native Hawaiian or Alaska Native culture and arts 
development to any private, nonprofit organization or 
institution which--
          [``(1) primarily serves and represents Native 
        Hawaiians or Alaska Natives, and
          [``(2) has been recognized by the Governor of the 
        State of Hawaii or the Governor of the State of Alaska, 
        as appropriate, for the purpose of making such 
        organization or institution eligible to receive such 
        grants.
  [``(b) Purpose of Grants.--Grants made under subsection (a) 
shall, to the extent deemed possible by the Secretary and the 
recipient of the grant, be used--
          [``(1) to provide scholarly study of, and instruction 
        in, Native Hawaiian or Alaska Native art and culture,
          [``(2) to establish programs which culminate in the 
        awarding of degrees in the various fields of Native 
        Hawaiian or Alaska Native art and culture, or
          [``(3) to establish centers and programs with respect 
        to Native Hawaiian or Alaska Native art and culture 
        that are similar in purpose to the centers and programs 
        described in subsections (b) and (c) of section 1510.
  [``(c) Management of Grants.--
          [``(1) Any organization or institution which is the 
        recipient of a grant made under subsection (a) shall 
        establish a governing board to manage and control the 
        program with respect to which such grant is made.
          [``(2) For any grants made with respect to Native 
        Hawaiian art and culture, the members of the governing 
        board which is required to be established under 
        paragraph (1) shall--
                  [``(A) be Native Hawaiians or individuals 
                widely recognized in the field of Native 
                Hawaiian art and culture,
                  [``(B) include a representative of the Office 
                of Hawaiian Affairs of the State of Hawaii,
                  [``(C) include the president of the 
                University of Hawaii,
                  [``(D) include the president of the Bishop 
                Museum, and
                  [``(E) serve for a fixed term of office.
          [``(3) For any grants made with respect to Alaska 
        Native art and culture, the members of the governing 
        board which is required to be established under 
        paragraph (1) shall--
                  [``(A) include Alaska Natives and individuals 
                widely recognized in the field of Alaska Native 
                art and culture,
                  [``(B) represent the Eskimo, Indian and Aleut 
                cultures of Alaska, and
                  [``(C) serve for a fixed term.''.

                       [Subtitle D--Job Training

[SEC. 731. AMENDMENT TO JOB TRAINING PARTNERSHIP ACT TO PROVIDE 
                    ALLOWANCES FOR CHILD CARE COSTS TO CERTAIN 
                    INDIVIDUALS PARTICIPATING IN THE JOB CORPS.

  [Section 429 of the Job Training Partnership Act (29 U.S.C. 
1699) is amended by adding at the end the following new 
subsection:
  [``(e) In addition to child care assistance provided under 
section 428(e), the Secretary shall provide enrollees who 
otherwise could not participate in the Job Corps with 
allowances to pay for child care costs, such as food, clothing, 
and health care for the child. Allowances under this subsection 
may only be provided during the first 2 months of an enrollee's 
participation in the program and shall be in an amount that 
does not exceed the maximum amount that may be provided by the 
State pursuant to section 402(g)(1)(C) of the Social Security 
Act (42 U.S.C. 602(g)(1)(C)).''.

                   [TITLE VIII--TECHNICAL PROVISIONS

[SEC. 801. EFFECTIVE DATE.

  [This Act shall take effect on the date of enactment of this 
Act.

[SEC. 802. SUNSET.

  [The authority provided by this Act shall terminate on 
October 1, 2001.]

                              ----------                              

                          ADULT EDUCATION ACT

                  [TITLE III--ADULT EDUCATION PROGRAMS

[SEC. 301. SHORT TITLE.

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

                   [PART A--BASIC PROGRAM PROVISIONS

[SEC. 311. STATEMENT OF PURPOSE.

  [It is the purpose of this title to assist the States to 
improve educational opportunities for adults who lack the level 
of literacy skills requisite to effective citizenship and 
productive employment, to expand and improve the current system 
for delivering adult education services including delivery of 
such services to educationally disadvantaged adults, and to 
encourage the establishment of adult education programs that 
will--
          [(1) enable these adults to acquire the basic 
        educational skills necessary for literate functioning;
          [(2) provide these adults with sufficient basic 
        education to enable them to benefit from job training 
        and retraining programs and obtain and retain 
        productive employment so that they might more fully 
        enjoy the benefits and responsibilities of citizenship; 
        and
          [(3) enable adults who so desire to continue their 
        education to at least the level of completion of 
        secondary school.

[SEC. 312. DEFINITIONS.

  [As used in this title--
          [(1) The term ``adult'' means an individual who has 
        attained 16 years of age or who is beyond the age of 
        compulsory school attendance under State law, except 
        that for the purpose of section 313(b), the term 
        ``adult'' means an individual 16 years of age or older.
          [(2) The term ``adult education'' means services or 
        instruction below the college level for adults--
                  [(A) who are not enrolled in secondary 
                school;
                  [(B) who lack sufficient mastery of basic 
                educational skills to enable them to function 
                effectively in society or who do not have a 
                certificate of graduation from a school 
                providing secondary education and who have not 
                achieved an equivalent level of education;
                  [(C) who are not currently required to be 
                enrolled in school; and
                  [(D) whose lack of mastery of basic skills 
                results in an inability to speak, read, or 
                write the English language which constitutes a 
                substantial impairment of their ability to get 
                or retain employment commensurate with their 
                real ability, and thus are in need of programs 
                to help eliminate such inability and raise the 
                level of education of such individuals with a 
                view to making them less likely to become 
                dependent on others.
          [(3) The term ``educationally disadvantaged adult'' 
        means an adult who--
                  [(A) demonstrates basic skills equivalent to 
                or below that of students at the fifth grade 
                level; or
                  [(B) has been placed in the lowest or 
                beginning level of an adult education program 
                when that program does not use grade level 
                equivalencies as a measure of students' basic 
                skills.
          [(4) The term ``community school program'' is a 
        program in which a public building, including but not 
        limited to a public elementary or secondary school or a 
        community or junior college, is used as a community 
        center operated in conjunction with other groups in the 
        community, community organizations, and local 
        governmental agencies, to provide educational, 
        recreational, cultural, and other related community 
        services for the community which the center serves in 
        accordance with the needs, interest, and concerns of 
        that community.
          [(5) The term ``local educational agency'' means a 
        public board of education or other public authority 
        legally constituted within a State for either 
        administrative control or direction of, or to perform a 
        service function for, public elementary or secondary 
        schools in a city, county, township, school district, 
        or other political subdivision of a State, or such 
        combination of school districts or counties as are 
        recognized in a State as an administrative agency for 
        its public elementary or secondary schools, except 
        that, if there is a separate board or other legally 
        constituted local authority having administrative 
        control and direction of adult education in public 
        schools therein, such term means such other board or 
        authority.
          [(6) The term ``Secretary'' means the Secretary of 
        Education.
          [(7) The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, Guam, 
        American Samoa, Palau (until the Compact of Free 
        Association with Palau takes effect pursuant to section 
        101(a) of Public Law 99-658), the Northern Mariana 
        Islands, and the Virgin Islands.
          [(8) The term ``State educational agency'' means the 
        State board of education or other agency or officer 
        primarily responsible for the State supervision of 
        public elementary and secondary schools, or, if there 
        is a separate State agency or officer primarily 
        responsible for supervision of adult education in 
        public schools, then such agency or officer may be 
        designated for the purpose of this title by the 
        Governor or by State law. If no agency or officer 
        qualifies under the preceding sentence, such term shall 
        mean an appropriate agency or officer designated for 
        the purposes of this title by the Governor.
          [(9) The term ``academic education'' means the 
        theoretical, the liberal, the speculative, and 
        classical subject matter found to compose the 
        curriculum of the public secondary school.
          [(10) The term ``institution of higher education'' 
        means any such institution as defined by section 481 of 
        the Higher Education Act of 1965.
  [(11) The term ``individual of limited English proficiency'' 
means an adult or out-of-school youth who has limited ability 
in speaking, reading, writing, or understanding the English 
language and--
          [(A) whose native language is a language other than 
        English; or
          [(B) who lives in a family or community environment 
        where a language other than English is the dominant 
        language.
  [(12) The term ``out-of-school youth'' means an individual 
who is under 16 years of age and beyond the age of compulsory 
school attendance under State law who has not completed high 
school or the equivalent.
  [(13) The term ``English literacy program'' means a program 
of instruction designed to help limited English proficient 
adults, out-of-school youths, or both, achieve full competence 
in the English language.
  [(14) The term ``community-based organization'' means a 
private nonprofit organization which is representative of a 
community or significant segments of a community and which 
provides education, vocational education or rehabilitation, job 
training, or internship services and programs and includes 
neighborhood groups and organizations, community action 
agencies, community development corporations, union-related 
organizations, employer-related organizations, tribal 
governments, and organizations serving Native Alaskans and 
Indians.
  [(15) The term ``private industry council'' means the private 
industry council established under section 102 of the Job 
Training Partnership Act.

[SEC. 313. AUTHORIZATION OF APPROPRIATIONS; ALLOTMENTS.

  [(a) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary for the fiscal 
year 1991, $260,000,000 for the fiscal year 1992, and such sums 
as may be necessary for each of the fiscal years 1993, 1994, 
and 1995 to carry out the provisions of this title (other than 
sections 371 and 372).
  [(b) Allotment.--From the sums available for the purposes of 
section 311 for any fiscal year, the Secretary shall allot (1) 
$100,000 each to Guam, American Samoa, the Northern Mariana 
Islands, the Virgin Islands, the Federated States of 
Micronesia, the Republic of the Marshall Islands, and Palau, 
and (2) $250,000 to each of the other States. From the 
remainder of such sums the Secretary shall allot to each State 
an amount which bears the same ratio to such remainder as the 
number of adults who do not have a certificate of graduation 
from a school providing secondary education (or its equivalent) 
and who are not currently required to be enrolled in schools of 
such State bears to the number of such adults in all States.
  [(c) Reallotment.--The portion of any State's allotment under 
subsection (b) for a fiscal year which the Secretary determines 
will not be required for the period such allotment is available 
for carrying out the State plan approved 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 States 
in proportion to the original allotments to such States under 
subsection (b) for such year, but with such proportionate 
amount for any of such other State being reduced to the extent 
it exceeds the sum which the Secretary estimates such State 
needs and will be able to use for such period for carrying out 
its State plan approved under this title, and the total of such 
reductions shall be similarly reallotted among the States whose 
proportionate amounts are not so reduced. Any amount allotted 
to a State under this subsection during a year shall be deemed 
part of its allotment under subsection (b) for such year.
  [(d) Reservation of Funds for National Programs.--For any 
fiscal year, if the amount appropriated to carry out the 
purposes of this title exceeds $108,000,000, not more than 
$3,000,000 of such amount shall be reserved to carry out the 
programs described in part D, relating to national programs.

                        [PART B--STATE PROGRAMS

                     [Subpart 1--Basic State Grants

[SEC. 321. BASIC GRANTS.

  [From the sums allotted to States for this subpart pursuant 
to section 313, the Secretary is authorized to make grants to 
States to assist them in funding adult education programs, 
services, and activities carried out by eligible recipients to 
achieve the purposes of this title.

[SEC. 322. USE OF FUNDS; LOCAL APPLICATIONS.

  [(a) Use of Funds.--
          [(1) Grants to States under this subpart shall be 
        used in accordance with State plans (and amendments 
        thereto) approved under sections 341 and 351, to pay 
        the Federal share of the cost of the establishment or 
        expansion of adult education programs to be carried out 
        by local educational agencies, correctional education 
        agencies, community-based organizations, public or 
        private nonprofit agencies, postsecondary educational 
        institutions, and other institutions that have the 
        ability to provide literacy services to adults and 
        families. Each State educational agency receiving 
        financial assistance under this subpart shall provide 
        assurance that local educational agencies, public or 
        private nonprofit agencies, community-based 
        organizations, correctional education agencies, 
        postsecondary educational institutions, and 
        institutions which serve educationally disadvantaged 
        adults will be provided direct and equitable access to 
        all Federal funds provided under this subpart. Failure 
        to provide the assurance required by the preceding 
        sentence shall disqualify a State from receiving its 
        allotment under this title. In determining which 
        programs shall receive assistance under this paragraph, 
        the State shall consider--
                  [(A) the past effectiveness of applicants in 
                providing services (especially with respect to 
                recruitment and retention of educationally 
                disadvantaged adults and the learning gains 
                demonstrated by such adults);
                  [(B) the degree to which the applicant will 
                coordinate and utilize other literacy and 
                social services available in the community; and
                  [(C) the commitment of the applicant to serve 
                individuals in the community that are most in 
                need of literacy services.
          [(2) Grants to States provided under this section may 
        also be used to carry out programs by a consortium 
        which includes a for-profit agency, organization, or 
        institution if such agency, organization, or 
        institution can make a significant contribution to 
        attaining the objectives of this Act. Whenever the 
        establishment or expansion of programs includes a for-
        profit agency, organization, or institution, as part of 
        a consortium, a contract with such agency, 
        organization, or institution, for the establishment or 
        expansion of such programs shall be entered into by the 
        public or private nonprofit agency, institution, or 
        organization.
          [(3)(A) Grants to States provided under this section 
        shall also be used for competitive 2-year grants to 
        public housing authorities for literacy programs and 
        related activities. Any public housing authority that 
        receives a grant under this subparagraph shall consult 
        with local adult education providers in conducting 
        programs and activities with assistance provided under 
        the grant. Any grant provided under this subparagraph 
        shall be referred to as a ``Gateway Grant''.
          [(B) The Secretary shall, not less often than every 2 
        years, evaluate any grants made under this paragraph 
        and report the results of such evaluation to the 
        Committee on Education and Labor of the House of 
        Representatives and the Committee on Labor and Human 
        Resources of the Senate.
          [(4) Such application shall contain such information 
        as the State educational agency considers necessary, 
        including a description of current programs, 
        activities, and services receiving assistance from 
        Federal, State, and local sources; the projected goals 
        of the applicant with respect to participant 
        recruitment, retention, and educational achievement and 
        how the applicant will measure and report progress in 
        meeting its goals; cooperative arrangements (including 
        arrangements with business, industry, and volunteer 
        literacy organizations as appropriate) that have been 
        made to deliver services to adults as well as 
        assurances that adult educational programs, services, 
        or activities provided under this title are coordinated 
        with and not duplicative of services, programs, or 
        activities made available to adults under other 
        Federal, State, and local programs, including the Job 
        Training Partnership Act, the Carl D. Perkins 
        Vocational and Applied Technology Education Act, the 
        Rehabilitation Act of 1973, the Individuals with 
        Disabilities Education Act, title IX of the Elementary 
        and Secondary Education Act of 1965, the Higher 
        Education Act of 1965, and the Domestic Volunteer 
        Service Act.
          [(5) The State educational agency shall give 
        preference to those applicants who have demonstrated or 
        can demonstrate a capability to recruit and serve 
        educationally disadvantaged adults, particularly in 
        areas with a high proportion of adults who do not have 
        a certificate of graduation from a school providing 
        secondary education or its equivalent.
  [(b) Limitations on Use of Funds.--
          [(1) Not less than 10 percent of the funds paid to a 
        State under subsection (a) shall be used for 
        corrections education and education for other 
        institutionalized individuals in accordance with 
        subpart 2.
          [(2) Not more than 20 percent of a State's allotment 
        shall be used for programs of equivalency for a 
        certificate of graduation from a secondary school.

[SEC. 323. LOCAL ADMINISTRATIVE COST LIMITS.

  [(a) Of the funds provided by the State agency to eligible 
recipients, at least 95 percent must be expended for provision 
of adult education instructional activities. The remainder 
shall be used for planning, administration, personnel 
development, and interagency coordination.
  [(b) In cases where the administrative cost limits under 
subsection (a) would be insufficient for adequate planning, 
administration, evaluation, and coordination of programs 
supported under this Act, the State agency shall negotiate with 
the local grant recipient in order to determine an adequate 
level of funds to be used for noninstructional purposes.

[Subpart 2--Programs for Corrections Education and Education for Other 
                     Institutionalized Individuals

[SEC. 326. PROGRAM AUTHORIZED.

  [Funds set aside under section 322(b)(1) by a State shall be 
used for the cost of educational programs for criminal 
offenders in corrections institutions and for other 
institutionalized individuals, including--
          [(1) academic programs for--
                  [(A) basic education with special emphasis on 
                reading, writing, vocabulary, and arithmetic;
                  [(B) special education programs as defined by 
                State law;
                  [(C) bilingual or English as a second 
                language programs; and
                  [(D) secondary school credit programs;
          [(2) vocational training programs;
          [(3) library development and library service 
        programs;
          [(4) corrections education programs, training for 
        teacher personnel specializing in corrections 
        education, particularly courses in social education, 
        basic skills instruction, and abnormal psychology;
          [(5) guidance and counseling programs;
          [(6) supportive services for criminal offenders, with 
        special emphasis on the coordination of educational 
        services with agencies furnishing services to criminal 
        offenders after their release; and
          [(7) cooperative programs with educational 
        institutions, community-based organizations of 
        demonstrated effectiveness, and the private sector, 
        designed to provide education and training.
  [(b) As used in this section, the term--
          [(1) ``criminal offender'' means any individual who 
        is charged with or convicted of any criminal offense; 
        and
          [(2) ``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.

           [Subpart 3--State Administrative Responsibilities

[SEC. 331. STATE ADMINISTRATION.

  [(a) State Agency Responsibilities.--Any State desiring to 
participate in the programs authorized by this title shall 
designate the State educational agency to be the sole State 
agency responsible for the administration and supervision of 
such programs. The responsibilities of the State agency shall 
include--
          [(1) the development, submission, and implementation 
        of the State application and plan and any amendments 
        thereto (pursuant to sections 342 and 351), and the 
        State evaluation (pursuant to section 352);
          [(2) within 2 years of the enactment of the National 
        Literacy Act of 1991, the development and 
        implementation, in consultation with a widely 
        representative group of appropriate experts, educators, 
        and administrators, of indicators of program quality to 
        be used to evaluate programs assisted under this title, 
        as required by section 352, to determine whether such 
        programs are effective, including whether such programs 
        are successfully recruiting, retaining, and improving 
        the literacy skills of the individuals served in such 
        programs;
          [(3) consultation with the State advisory council 
        established pursuant to section 332, and other 
        appropriate agencies, groups, and individuals involved 
        in the planning, administration, evaluation, and 
        coordination of programs funded under this title; and
          [(4) the assignment of such personnel as may be 
        necessary for State administration of programs under 
        this title.
  [(b) State Imposed Requirements.--Whenever any State imposes 
any rule or policy relating to the administration and operation 
of programs funded by this title (including any rule or policy 
based on State interpretation of any Federal law, regulation, 
or guideline) the rule or policy shall be identified as a State 
imposed requirement.
  [(c) Limitation on State Administrative Costs.--Effective for 
fiscal years beginning after September 30, 1990, a State 
educational agency may use no more than 5 percent of the 
State's grant or $50,000, whichever is greater, to pay the cost 
of its administration of the State's program.

[ H4  deg.SEC. 332. STATE ADVISORY COUNCIL ON ADULT EDUCATION 
                    AND LITERACY.

  [(a) Requirement.--(1) Any State may designate a body, or 
establish a new body if there is no suitable existing body, to 
act as a State advisory council on adult education and 
literacy, appointed by, and responsible to, the Governor. The 
membership of the State advisory council shall be broadly 
representative of citizens and groups within the State having 
an interest in adult education and literacy, and shall consist 
of--
                  [(i) representatives of public education;
                  [(ii) representatives of public and private 
                sector employment;
                  [(iii) representatives of recognized State 
                labor organizations;
                  [(iv) representatives of private literacy 
                organizations, voluntary literacy 
                organizations, and community-based literacy 
                organizations;
                  [(v) the chief administrative officer of a 
                State, or the designee of such officer;
                  [(vi) representatives of--
                          [(I) the State educational agency;
                          [(II) the State job training agency;
                          [(III) the State human services 
                        agency;
                          [(IV) the State public assistance 
                        agency;
                          [(V) the State library program; and
                          [(VI) the State economic development 
                        agency;
                  [(vii) officers of the State government whose 
                agencies provide funding for literacy services 
                or who may be designated by the Governor or the 
                Chairperson of the council to serve whenever 
                matters within the jurisdiction of the agency 
                headed by such an officer are to be considered 
                by the council; and
                  [(viii) classroom teachers who have 
                demonstrated outstanding results in teaching 
                children or adults to read.
  [(2) A State which elects to designate or establish a State 
advisory council available for this subsection may use funds 
under this subpart for the purposes of this subsection.
  [(b) Representation on Council.--The State shall ensure that 
there is appropriate representation on the State advisory 
council of urban as well as rural areas, of women, persons with 
handicaps, and racial and ethnic minorities.
  [(c) Certification.--The State shall certify the 
establishment and membership of the State advisory council to 
the Secretary prior to the beginning of any fiscal year in 
which the State desires to receive a grant under this title.
  [(d) Procedures.--(1) Subject to paragraphs (2) and (3), the 
State advisory council shall determine its own procedures, 
staffing needs (subject to funding levels authorized by the 
chief executive officer of the State), and the number, time, 
place, and conduct of meetings.
  [(2) The State advisory council shall meet at least 4 times 
each year. At least 1 such meeting shall provide an opportunity 
for the general public to express views concerning adult 
education in the State.
  [(3) One member more than one-half of the members on the 
council shall constitute a quorum for the purpose of 
transmitting recommendations and proposals to the chief 
executive officer of the State, but a lesser number of members 
may constitute a quorum for other purposes.
  [(e) Terms.--Members shall be appointed for fixed and 
staggered terms and may serve until their successors are 
appointed. Any vacancy in the membership of the council shall 
be filled in the same manner as the original appointment. Any 
member of the council may be removed for cause in accordance 
with procedures established by the council.
  [(f) Duties.--Each State advisory council shall--
          [(1) meet with the State agencies responsible for 
        literacy training during the planning year to advise on 
        the development of a State plan for literacy and for 
        adult education that fulfills the literacy and adult 
        education needs of the State, especially with respect 
        to the needs of the labor market, economic development 
        goals, and the needs of the individuals in the State;
          [(2) advise the Governor, the State educational 
        agency, and other State agencies concerning--
                  [(A) the development and implementation of 
                measurable State literacy and adult education 
                goals consistent with section 342(c)(2), 
                especially with respect to--
                          [(i) improving levels of literacy in 
                        the State by ensuring that all 
                        appropriate State agencies have 
                        specific objectives and strategies for 
                        such goals in a comprehensive approach;
                          [(ii) improving literacy programs in 
                        the State; and
                          [(iii) fulfilling the long-term 
                        literacy goals of the State;
                  [(B) the coordination and monitoring of State 
                literacy training programs in order to progress 
                toward the long-term literacy goals of the 
                State;
                  [(C) the improvement of the quality of 
                literacy programs in the State by supporting 
                the integration of services, staff training, 
                and technology-based learning and the 
                integration of resources of literacy programs 
                conducted by various agencies of State 
                government; and
                  [(D) private sector initiatives that would 
                improve adult education programs and literacy 
                programs, especially through public-private 
                partnerships;
          [(3) review and comment on the plan submitted 
        pursuant to section 356(h) and submit such comments to 
        the Secretary;
          [(4) measure progress on meeting the goals and 
        objectives established pursuant to paragraph (2)(A);
          [(5) recommend model systems for implementing and 
        coordinating State literacy programs for replication at 
        the local level;
          [(6) develop reporting requirements, standards for 
        outcomes, performance measures, and program 
        effectiveness in State programs, that are consistent 
        with those proposed by the Interagency Task Force on 
        Literacy; and
          [(7)(A) approve the plan for evaluations required in 
        section 352 and participate in the implementation and 
        dissemination of such evaluations, (B) advise the 
        Governor, the State legislature, and the general public 
        of the State of the findings of such evaluations, and 
        (C) include in any report of such evaluations its 
        comments and recommendations.

                 [Subpart 4--Planning and Applications

[SEC. 341. STATE PLAN AND APPLICATION.

  [(a) Requirement.--Any State desiring to receive funds under 
this title shall submit to the Secretary, during the fiscal 
year 1989 and during each fourth fiscal year thereafter, a 
State plan and application for adult education (in one 
document) for the four fiscal years succeeding each fiscal year 
in which the State plan and application are submitted.
  [(b) Procedure for Submission and Consideration.--Each State 
plan and application shall be submitted to the Secretary by 
July 1 preceding the beginning of the first fiscal year for 
which the plan is in effect. The Secretary shall approve, 
within 60 days, each such plan and application which is 
formulated in accordance with sections 342 and 343 and which 
meets the requirements of such sections, and shall not finally 
disapprove a State plan except after giving reasonable notice 
and an opportunity for a hearing to the State agency.
  [(c) GEPA Provision.--Such document shall be considered to be 
the general application required to be submitted by the State 
for funds received under this Act for the purpose of the 
provisions of section 435 of the General Education Provisions 
Act.

[SEC. 342. FOUR-YEAR STATE PLAN.

  [(a) Procedures Required in Formulating State Plan.--(1) In 
formulating the State plan, the State agency shall meet with 
and utilize the State advisory council, if established pursuant 
to section 332 of this title.
  [(2) The State agency shall conduct public hearings in the 
State, after appropriate and sufficient notice, for the purpose 
of affording all segments of the public, including groups 
serving educationally disadvantaged adults, and interested 
organizations and groups an opportunity to present their views 
and make recommendations regarding the State plan. A summary of 
such recommendations and the State agency's response shall be 
included with the State plan submitted to the Secretary.
  [(3)(A) Not less than 60 days before submission of the State 
plan to the Secretary under section 341, the State agency shall 
simultaneously submit the proposed State plan to (i) the State 
Board or agency for vocational education, (ii) the State Job 
Training Coordinating Council under the Job Training 
Partnership Act, and (iii) the State Board responsible for 
postsecondary education for review and comment. Such comments 
(to the extent such comments are received in a timely fashion) 
and the State's response shall be included with the State plan 
submitted to the Secretary. The Secretary shall consider such 
comments in reviewing such plan.
  [(B) Not less than 60 days before the submission of the State 
plan to the Secretary, such plan shall be submitted to the 
State advisory council (if such a council exists). Should the 
State advisory council find that it has substantial 
disagreement with the final State plan, the Council may file 
timely objections with the State agency. The State agency shall 
respond to all substantial objections of the State advisory 
council in submitting such plan to the Secretary. The Secretary 
shall consider such comments in reviewing the State plan.
  [(b) Required Assessments.--In developing the 4-year State 
plan, each State shall (1) make a thorough assessment of (A) 
the needs of adults, including educationally disadvantaged 
adults, eligible to be served as well as adults proposed to be 
served and those served and (B) the capability of existing 
programs and institutions to meet those needs, and (2) state 
the changes and improvements required in adult education to 
fulfill the purposes of this title, and the options for 
implementing these changes and improvements.
  [(c) Components of State Plan.--Consistent with the 
assessments described in subsection (b) each such plan shall--
          [(1) describe and provide for the fulfillment of the 
        literacy needs of individuals in the State;
          [(2) set forth measurable goals for improving 
        literacy levels, retention in literacy programs, and 
        long-term learning gains of individuals in the State 
        and describe a comprehensive approach for achieving 
        such goals, including the development of indicators of 
        program quality as required by section 331(a)(2);
          [(3) describe the curriculum, equipment, and 
        instruments that are being used by instruction 
        personnel and indicate how current these elements are;
          [(4) describe the means by which the delivery of 
        adult education services will be significantly expanded 
        (including efforts to reach typically underserved 
        groups such as educationally disadvantaged adults, 
        individuals with limited English proficiency and 
        individuals with handicaps) through coordination by 
        agencies, institutions, and organizations including the 
        public school system, businesses, labor unions, 
        libraries, institutions of higher education, public 
        health authorities, employment or training programs, 
        antipoverty programs, organizations providing 
        assistance to the homeless, and community and voluntary 
        organizations;
          [(5) describe the means by which representatives of 
        the public and private sector are involved in the 
        development and implementation of the plan, especially 
        in the expansion of the delivery of adult education 
        services by cooperation and collaboration with those 
        public and private agencies, institutions, and 
        organizations;
          [(6) describe specialized efforts to attract and 
        assist meaningful participation in adult education 
        programs through flexible course schedules, provision 
        of auxiliary aids and services, convenient locations, 
        adequate transportation, and meeting child care needs;
          [(7) provide for the needs of persons with limited 
        English proficiency (as defined in section 7004(a) of 
        the Elementary and Secondary Education Act of 1965 or 
        no English proficiency by providing adequate 
        appropriate language assistance to the extent necessary 
        to all such persons so they may progress effectively 
        through adult education programs;
          [(8) describe how the particular educational needs of 
        adult immigrants, the incarcerated, persons with 
        handicaps, the chronically unemployed, the homeless, 
        the disadvantaged, and minorities will be addressed;
          [(9) describe the progress the State has made in 
        achieving the goals set forth in each State plan 
        subsequent to the initial State plan;
          [(10) set forth the criteria the State agency will 
        use in approving applications by eligible recipients 
        and allocating funds made available under this title to 
        such recipients;
          [(11) describe the methods proposed for the joint 
        planning and coordination of programs carried out under 
        this title with those conducted under applicable 
        Federal and State programs, including the Carl D. 
        Perkins Vocational Education Act of 1963, Even Start, 
        the Job Training Partnership Act, the Rehabilitation 
        Act of 1973, the Education of the Handicapped Act, the 
        Immigration Reform and Control Act of 1986, the Higher 
        Education Act of 1965, and the Domestic Volunteer 
        Service Act, to assure maximum use of funds under these 
        Acts and to avoid duplication of services;
          [(12) describe the steps taken to utilize volunteers, 
        particularly volunteers assigned to the Literacy Corps 
        established under the Domestic Volunteer Service Act 
        and volunteers trained in programs carried out by 
        section 382 of this title, but only to the extent that 
        such volunteers supplement and do not supplant salaried 
        employees;
          [(13) describe the measures to be taken to ensure 
        that adult education programs, services, and activities 
        assisted under this title will take into account the 
        findings or program reviews and evaluations carried out 
        pursuant to section 352;
          [(14) report the amount of administrative funds spent 
        on program improvements; and
          [(15) contain assurances that financial assistance 
        provided pursuant to this title shall be used to assist 
        and expand existing programs and to develop new 
        programs for adults whose lack of basic skills--
                  [(A) renders them unemployable;
                  [(B) keeps them, whether employed or 
                unemployed, from functioning independently in 
                society; and
                  [(C) severely reduces their ability to have a 
                positive effect on the literacy of their 
                children.
  [(d) Limited English Proficiency Rule.--Programs conducted 
under subsection (c)(6) shall be designed to teach English to 
limited English proficient adults and, as appropriate, to allow 
such adults to progress effectively through the adult education 
program or to prepare them to enter the regular program of 
adult education as quickly as possible. Such programs may 
provide instruction in the native language, to the extent 
necessary, or may provide instruction exclusively in English, 
and shall be carried out in coordination with programs assisted 
under the Bilingual Education Act and with bilingual vocational 
education programs under the Carl D. Perkins Vocational 
Education Act.

[SEC. 343. STATE APPLICATIONS.

  [The State application submitted pursuant to section 341 
shall provide assurances--
          [(1) that the State will provide such methods of 
        administration as are necessary for the proper and 
        efficient administration of this title;
          [(2) that Federal funds made available under this 
        title will be so used as to supplement the amount of 
        State and local funds available for uses specified in 
        this title, and in no case to supplant such State and 
        local funds;
          [(3) that the programs, services, and activities 
        funded in accordance with the uses specified in section 
        322 are designed to expand or improve the quality of 
        adult education programs including programs for 
        educationally disadvantaged adults, to initiate new 
        programs of high quality, or where necessary, to 
        maintain programs;
          [(4) that the State will provide such fiscal control 
        and fundings accounting procedures as may be necessary 
        to ensure proper disbursement of, and accounting for, 
        Federal funds paid to the State (including such funds 
        paid by the State to eligible recipients under this 
        title); and
          [(5) that the State has instituted policies and 
        procedures to ensure that copies of the State plan and 
        all statements of general policy, rules, regulations, 
        and procedures will be made available to the public.

            [Subpart 5--Evaluation and State Plan Amendments

[SEC. 351. STATE PLAN AMENDMENTS.

  [(a) Timely Submission.--When changes are necessary in a 
State plan, the State shall submit amendments to its plan by 
July 1 preceding the fiscal year of operation to which the 
amendments apply.
  [(b) Consideration by Secretary.--The Secretary shall 
approve, within 60 days of submission, State plan amendments 
which meet the requirements of this section, unless such 
amendments propose changes that are inconsistent with the 
requirements and purposes of this title. The Secretary shall 
not finally disapprove such amendments except after giving 
reasonable notice and an opportunity for hearing to the State 
agency.
  [(c) Transition Rule.--Upon a written request from a State, 
the Secretary shall approve an extension of 1 year, from June 
30, 1988, to June 30, 1989, for the revision of any plan 
already approved under this section for the period July 1, 
1985, through June 30, 1988.

[SEC. 352. EVALUATION.

  [In order to assist grant recipients receiving funds under 
this title to plan and operate the best possible programs of 
adult education, each State agency during the 4-year period of 
the State plan shall--
          [(1) annually submit to the Secretary and make public 
        within the State data with respect to grant recipients, 
        including--
                  [(A) the number and percentage of local 
                educational agencies, community-based 
                organizations, volunteer groups, and other 
                organizations that are grant recipients; and
                  [(B) results of the evaluations carried out 
                as required by paragraph (2) in the year 
                preceding the year for which the data is 
                submitted;
          [(2) evaluate 20 percent of the grant recipients each 
        year so that at the end of such period 80 percent of 
        all grant recipients shall have been evaluated once and 
        such evaluations shall consider, at a minimum--
                  [(A) the projected goals of the grant 
                recipient as described in its application 
                pursuant to section 322(a)(3);
                  [(B) the planning and content of the program;
                  [(C) the curriculum, instructional materials, 
                equipment, and qualifications of all personnel;
                  [(D) the success of the grant recipient in 
                meeting the State's indicators of program 
                quality after such indicators are developed as 
                required by section 331(a)(2); and
                  [(E) other factors determined to affect 
                program operation;
          [(3) gather and analyze data (including standardized 
        test data) to determine the extent to which the adult 
        programs are achieving the goals set forth in the plan 
        including the goal of serving educationally 
        disadvantaged adults, and the extent to which grant 
        recipients have improved their capacity to achieve the 
        purposes of this title as set forth in section 311.

                   [Subpart 6--Demonstration Projects

[SEC. 353. SPECIAL EXPERIMENTAL DEMONSTRATION PROJECTS AND TEACHER 
                    TRAINING.

  [(a) Use of Funds.--Of the funds allotted to a State under 
section 313 for a fiscal year, not less than 15 percent shall 
be used for--
          [(1) special projects which will be carried out in 
        furtherance of the purposes of this title, which will 
        be coordinated with other programs funded under this 
        title and which--
                  [(A) involve the use of innovative methods 
                (including methods for educating persons with 
                handicaps, the homeless, and persons of limited 
                English proficiency), systems, materials, or 
                programs which may have national significance 
                or will be of special value in promoting 
                effective programs under this title, or
                  [(B) involve programs of adult education, 
                including education for persons with handicaps, 
                the homeless, and persons of limited English 
                proficiency, which are part of community school 
                programs, carried out in cooperation with other 
                Federal, State, or local programs which have 
                unusual promise in promoting a comprehensive or 
                coordinated approach to the problems of persons 
                with educational deficiencies;
          [(2) training persons engaged, or preparing to 
        engage, as personnel in programs designed to carry out 
        the purposes of this title; and
          [(3) training professional teachers, volunteers, and 
        administrators, with particular emphasis on--
                  [(A) training--
                          [(i) full-time professional adult 
                        educators;
                          [(ii) minority adult educators;
                          [(iii) educators of adults with 
                        limited English proficiency; and
                  [(B) training teachers to recognize and more 
                effectively serve illiterate individuals with 
                learning disabilities and individuals who have 
                a reading ability below the fifth grade level.
  [(b) Special Rule.--At least \2/3\ of the 15 percent reserved 
pursuant to subsection (a) shall be used to carry out the 
provisions of paragraphs (2) and (3) of subsection (a).

       H5  deg.Subpart 7--State Literacy Resource Centers

[SEC. 356. STATE LITERACY RESOURCE CENTERS.

  [(a) Purpose.--It is the purpose of this section to assist 
State and local public and private nonprofit efforts to 
eliminate illiteracy through a program of State literacy 
resource center grants to--
          [(1) stimulate the coordination of literacy services,
          [(2) enhance the capacity of State and local 
        organizations to provide literacy services, and
          [(3) serve as a reciprocal link between the National 
        Institute for Literacy and service providers for the 
        purpose of sharing information, data, research, and 
        expertise and literacy resources.
  [(b) Establishment.--From amounts appropriated pursuant to 
subsection (k), the Secretary is authorized to make grants for 
purposes of establishing a network of State or regional adult 
literacy resource centers.
  [(c) Allotment.--(1) From sums available for purposes of 
making grants under this section for any fiscal year, the 
Secretary shall allot to each State having an approved 
application under subsection (h) an amount that bears the same 
ratio to such sums as the amount allotted to such State under 
section 313(b) for the purpose of making grants under section 
321 bears to the aggregate amount allotted to all States under 
such section for such purpose.
  [(2) The chief executive officer of each State that receives 
its allotment under this section shall contract on a 
competitive basis with the State educational agency, 1 or more 
local educational agencies, a State office on literacy, a 
volunteer organization, a community-based organization, 
institution of higher education, or other nonprofit entity to 
operate a State literacy resource center. No applicant 
participating in a competition pursuant to the preceding 
sentence shall participate in the review of its own 
application.
  [(d) Use of Funds.--Funds provided to each State under 
subsection (c)(1) to carry out this section shall be used to 
conduct activities to--
          [(1) improve and promote the diffusion and adoption 
        of state-of-the-art teaching methods, technologies and 
        program evaluations;
          [(2) develop innovative approaches to the 
        coordination of literacy services within and among 
        States and with the Federal Government;
          [(3) assist public and private agencies in 
        coordinating the delivery of literacy services;
          [(4) encourage government and industry partnerships, 
        including partnerships with small businesses, private 
        nonprofit organizations, and community-based 
        organizations;
          [(5) encourage innovation and experimentation in 
        literacy activities that will enhance the delivery of 
        literacy services and address emerging problems;
          [(6) provide technical and policy assistance to State 
        and local governments and service providers to improve 
        literacy policy and programs and access to such 
        programs;
          [(7) provide training and technical assistance to 
        literacy instructors in reading instruction and in--
                  [(A) selecting and making the most effective 
                use of state-of-the-art methodologies, 
                instructional materials, and technologies such 
                as--
                          [(i) computer assisted instruction;
                          [(ii) video tapes;
                          [(iii) interactive systems; and
                          [(iv) data link systems; or
                  [(B) assessing learning style, screening for 
                learning disabilities, and providing 
                individualized remedial reading instruction; or
          [(8) encourage and facilitate the training of full-
        time professional adult educators.
  [(e) Alternative Uses of Equipment.--Equipment purchases 
pursuant to this section, when not being used to carry out the 
provisions of this section, may be used for other instructional 
purposes if--
          [(1) the acquisition of the equipment was reasonable 
        and necessary for the purpose of conducting a properly 
        designed project or activity under this section;
          [(2) the equipment is used after regular program 
        hours or on weekends; and
          [(3) such other use is--
                  [(A) incidental to the use of the equipment 
                under this section;
                  [(B) does not interfere with the use of the 
                equipment under this section; and
                  [(C) does not add to the cost of using the 
                equipment under this section.
  [(f) Limitation.--Not more than 10 percent of amounts 
received under any grant received under this section shall be 
used to purchase computer hardware or software.
  [(g) Special Rule.--(1) Each State receiving funds pursuant 
to this section may not use more than 5 percent of such funds 
to establish a State advisory council on adult education and 
literacy (in this section referred to as the ``State council'') 
pursuant to section 332.
  [(2) Each State receiving funds pursuant to this section may 
use such funds to support an established State council to the 
extent that such State council meets the requirements of 
section 332.
  [(3) Each State receiving funds pursuant to this paragraph to 
establish or support a State council pursuant to section 332 
shall provide matching funds on a dollar-for-dollar basis.
  [(h) Applications.--Each State or group of States, as 
appropriate, that desires to receive a grant under this section 
for a regional adult literacy resource center, a State adult 
literacy resource center, or both shall submit to the Secretary 
an application that has been reviewed and commented on by the 
State council, where appropriate, and that describes how the 
State or group of States will--
          [(1) develop a literacy resource center or expand an 
        existing literacy resource center;
          [(2) provide services and activities with the 
        assistance provided under this section;
          [(3) assure access to services of the center for the 
        maximum participation of all public and private 
        programs and organizations providing or seeking to 
        provide basic skills instruction, including local 
        educational agencies, agencies responsible for 
        corrections education, service delivery areas under the 
        Job Training Partnership Act, welfare agencies, labor 
        organizations, businesses, volunteer groups, and 
        community-based organizations;
          [(4) address the measurable goals for improving 
        literacy levels as set forth in the plan submitted 
        pursuant to section 342; and
          [(5) develop procedures for the coordination of 
        literacy activities for statewide and local literacy 
        efforts conducted by public and private organizations, 
        and for enhancing the systems of service delivery.
  [(i) Payments; Federal Share.--(1) The Secretary shall pay to 
each State having an application approved pursuant to 
subsection (h) the Federal share of the cost of the activities 
described in the application.
  [(2) The Federal share--
          [(A) for each of the first 2 fiscal years in which 
        the State receives funds under this section shall not 
        exceed 80 percent;
          [(B) for each of the third and fourth fiscal years in 
        which the State receives funds under this section shall 
        not exceed 70 percent; and
          [(C) for the fifth and each succeeding fiscal year in 
        which the State receives funds under this section shall 
        not exceed 60 percent.
  [(3) The non-Federal share of payments under this section may 
be in cash or in kind, fairly evaluated, including plant, 
equipment, or services.
  [(j) Regional Centers.--(1) A group of States may enter into 
an interstate agreement to develop and operate a regional adult 
literacy resource center for purposes of receiving assistance 
under this section if the States determine that a regional 
approach is more appropriate for their situation.
  [(2) Any State that receives assistance under this section as 
part of a regional center shall only be required to provide 
under subsection (i) 50 percent of the funds such State would 
otherwise be required to provide under such subsection.
  [(3) In any fiscal year in which the amount a State will 
receive under this section is less than $100,000, the Secretary 
may designate the State to receive assistance under this 
section only as part of a regional center.
  [(4) The provisions of paragraph (3) shall not apply to any 
State that can demonstrate to the Secretary that the total 
amount of Federal, State, local and private funds expended to 
carry out the purposes of this section would equal or exceed 
$100,000.
  [(5) In any fiscal year in which paragraph (2) applies, the 
Secretary may allow certain States that receive assistance as 
part of a regional center to reserve a portion of such 
assistance for a State adult literacy resource center pursuant 
to this section.
  [(k) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out the provisions of this section 
$25,000,000 for each of the fiscal years 1992 and 1993, and 
such sums as may be necessary for each of the fiscal years 1994 
and 1995.

   [Subpart 8--Federal Share; Federal Administrative Responsibilities

[SEC. 361. PAYMENTS.

  [(a) Federal Share.--The Federal share of expenditures to 
carry out a State plan shall be paid from a State's allotment 
available for grants to that State. The Federal share shall 
be--
          [(1) 90 percent of the cost of carrying out the 
        State's programs for fiscal year 1988;
          [(2) 85 percent of such cost for fiscal year 1990;
          [(3) 80 percent of such cost for fiscal year 1991; 
        and
          [(4) 75 percent of such cost for fiscal year 1992 and 
        for each fiscal year thereafter,
except that with respect to Guam, American Samoa, the Virgin 
Islands, the Northern Mariana Islands, the Federated States of 
Micronesia, the Republic of the Marshall Islands, and Palau, 
the Federal share of such cost shall be 100 percent.
  [(b) Maintenance of Effort.--(1) No payment may be made to 
any State from its allotment for any fiscal year unless the 
Secretary finds that the fiscal effort per student or the 
amount available for expenditure by such State for adult 
education from non-Federal sources for the second preceding 
fiscal year was not less than such fiscal effort per student or 
such amount available for expenditure for such purposes from 
such sources during the third preceding fiscal year.
  [(2) The Secretary may waive the requirements of this 
subsection for 1 fiscal year only, upon making a determination 
that such waiver would be equitable due to exceptional or 
uncontrollable circumstances affecting the ability of the 
applicant to meet such requirements, such as a natural disaster 
or an unforeseen and precipitous decline in financial 
resources.
  [(c) Federal Responsibility.--Within 1 year after the 
enactment of the National Literacy Act of 1991, the Secretary, 
in consultation with appropriate experts, educators, and 
administrators, shall develop indicators of program quality 
that may be used by State and local programs receiving 
assistance under this title as models by which to judge the 
success of such programs, including success in recruitment and 
retention of students and improvement in the literacy skills of 
students. Such indicators shall take into account different 
conditions under which programs operate and shall be modified 
as better means of assessing program quality are developed.

        [PART C--WORKPLACE LITERACY AND ENGLISH LITERACY GRANTS

[SEC. 371. BUSINESS, INDUSTRY, LABOR, AND EDUCATION PARTNERSHIPS FOR 
                    WORKPLACE LITERACY.

  [(a) Grants for Exemplary Demonstration Partnerships for 
Workplace Literacy.--(1) Subject to subsection (b), the 
Secretary, in consultation with the Secretary of Labor and the 
Administrator of the Small Business Administration, shall make 
demonstration grants to exemplary education partnerships for 
workplace literacy to pay the Federal share of the cost of 
adult education programs which teach literacy skills needed in 
the workplace through partnerships between--
          [(A) business, industry, labor organizations, or 
        private industry councils; and
          [(B) State educational agencies, local educational 
        agencies, institutions of higher education, or schools 
        (including employment and training agencies or 
        community-based organizations).
  [(2) Grants under paragraph (1) may be used--
          [(A) to fund 70 percent of the cost of programs which 
        meet the requirements of paragraph (3); and
          [(B) for administrative costs incurred by State 
        educational agencies, local educational agencies, and 
        other entities described in paragraph (1) that receive 
        grants under this subsection in establishing programs 
        funded under subparagraph (A).
  [(3) Programs funded under paragraph (2)(A) shall be designed 
to improve the productivity of the workforce through 
improvement of literacy skills needed in the workplace by--
          [(A) providing adult literacy and other basic skills 
        services and activities;
          [(B) providing adult secondary education services and 
        activities which may lead to the completion of a high 
        school diploma or its equivalent;
          [(C) meeting the literacy needs of adults with 
        limited English proficiency;
          [(D) upgrading or updating basic skills of adult 
        workers in accordance with changes in workplace 
        requirements, technology, products, or processes;
          [(E) improving the competency of adult workers in 
        speaking, listening, reasoning, and problem solving; or
          [(F) providing education counseling, transportation, 
        and nonworking hours child care services to adult 
        workers while they participate in a program funded 
        under paragraph (2)(A).
  [(4) An application to receive funding for a program out of a 
grant made to a partnership under this subsection shall--
          [(A) be submitted jointly by--
                  [(i) a business, industry, or labor 
                organization, or private industry council; and
                  [(ii) a State educational agency, local 
                educational agency, institution of higher 
                education, or school (including an area 
                vocational school, an employment and training 
                agency, or community-based organization);
          [(B) set forth the respective roles of each member of 
        the partnership;
          [(C) contain such additional information as the 
        Secretary may require, including evidence of the 
        applicant's experience in providing literacy services 
        to working adults;
          [(D) describe the plan for carrying out the 
        requirements of paragraph (3); and
          [(E) provide assurances that the applicant will use 
        the funds to supplement and not supplant funds 
        otherwise available for the purpose of this section.
  [(5) In awarding grants under this section, the Secretary 
shall give priority to applications from partnerships that 
include small businesses.
  [(6) The Secretary is authorized to award grants under this 
section for a period not to exceed 3 years.
  [(b) Grants to States.--(1) Whenever in any fiscal year, 
appropriations under subsection (e) are equal to or exceed 
$50,000,000, the Secretary shall make grants to States which 
have State plans approved by the Secretary under section 342 to 
pay the Federal share of the cost of adult education programs 
which teach literacy skills needed in the workplace through 
partnerships between--
          [(A) business, industry, or labor organizations, or 
        private industry councils; and
          [(B) State educational agencies, local educational 
        agencies, institutions of higher education, or schools 
        (including employment and training agencies or 
        community-based organizations).
  [(2) Grants under paragraph (1) may be used--
          [(A) to fund 70 percent of the cost of programs which 
        meet the requirements of paragraph (4);
          [(B) for administrative costs incurred by State 
        educational agencies, local educational agencies, and 
        other entities described in paragraph (1) that receive 
        grants under this subsection in establishing programs 
        funded under subparagraph (A); and
          [(C) for costs incurred by State educational agencies 
        in obtaining evaluations described in paragraph 
        (3)(A)(iii).
  [(3) A State shall be eligible to receive its allotment under 
paragraph (7)(B) if it--
          [(A) includes in a State plan submitted to the 
        Secretary under section 342 a description of--
                  [(i) the requirements for State approval of 
                funding of a program;
                  [(ii) the procedures under which applications 
                for such funding may be submitted; and
                  [(iii) the method by which the State shall 
                obtain annual third-party evaluation of student 
                achievement in, and overall effectiveness of 
                services provided by, all programs which 
                receive funding out of a grant made to the 
                State under this section; and
          [(B) satisfies the requirements of section 306(a).
  [(4) The program requirements set forth in subsection (a)(3) 
shall apply to the program authorized by this subsection.
  [(5) An application to receive funding for a program from a 
grant made to a State under paragraph (1) shall contain the 
same information required in subparagraphs (A) through (E) of 
subsection (a)(4).
  [(6) If a State is not eligible for a grant under paragraph 
(1) of this subsection, the Secretary shall use the State's 
allotment under paragraph (7) to make direct grants to 
applicants in that State who are qualified to teach literacy 
skills needed in the workplace.
  [(7)(A) The Federal share of expenditures for programs in a 
State funded under this subsection shall be paid from a State's 
allotment under this paragraph.
  [(B) From the sum appropriated for each fiscal year under 
subsection (c) for any fiscal year in which appropriations 
equal or exceed $50,000,000, the Secretary shall allot to each 
State (as defined in section 312(7)) an amount proportionate to 
the amount such State receives under section 313.
  [(C) At the end of each fiscal year, the portion of any 
State's allotment for that fiscal year which--
          [(i) exceeds 10 percent of the total allotment for 
        the State under paragraph (2) for the fiscal year; and
          [(ii) remains unobligated;
shall be reallocated among the other States in the same 
proportion as each State's allocation for such fiscal year 
under paragraph (2).
  [(c) Grant for National Workforce Literacy Strategies.--(1) 
In any fiscal year in which amounts appropriated pursuant to 
the authorization contained in subsection (e) equal or exceed 
$25,000,000, the Secretary shall reserve not more than 
$5,000,000 to establish a program of grants to facilitate the 
design and implementation of national strategies to assist 
unions, unions in collaboration with programs eligible for 
assistance under this Act and businesses, and small- and 
medium-sized businesses to effectively provide literacy and 
basic skills training to workers.
  [(2) Grants awarded under this subsection shall pay the 
Federal share of the cost of programs to establish large-scale 
national strategies in workforce literacy, which may include 
the following activities:
          [(A) Basic skills training that is--
                  [(i) cost-effective;
                  [(ii) needed by employees; and
                  [(iii) required by employers to establish a 
                trainable workforce that can take advantage of 
                further job specific training and advance the 
                productivity of the labor force on an 
                individual, industry, or national level.
          [(B) Specific program offerings, which may include--
                  [(i) English as a second language 
                instruction;
                  [(ii) communications skill building;
                  [(iii) interpersonal skill building;
                  [(iv) reading and writing skill building; and
                  [(v) computation and problem solving.
          [(C) Appropriate assessments of the literacy and 
        basic skills needs of individual workers and the skill 
        levels required by business.
          [(D) Cooperative arrangements with other 
        organizations involved in providing literacy and basic 
        skills training, including adult education 
        organizations, vocational education organizations, 
        community and junior colleges, community-based 
        organizations, State level agencies, and private 
        industry councils.
          [(E) The establishment as appropriate of technology-
        based learning environments, such as computer-based 
        learning centers.
  [(3) Any partnership described in subsection (a)(1) that 
desires to receive a grant under this subsection shall submit a 
proposal to the Secretary. The proposal shall contain a plan 
specifying a strategy for designing and implementing workforce 
literacy and basic skills training for workers, and justifying 
the national, statewide, or industry-wide importance of this 
strategy. The proposal shall include--
          [(A) a demonstration of need for literacy and basic 
        skills training;
          [(B) a description of the business or industry for 
        which the strategy is to be established;
          [(C) a statement of specific, measurable goals and 
        participant outcomes;
          [(D) a strategy for achieving the goals, including a 
        description of the process to identify literacy and 
        basic skills required by employers and the skills of 
        individual workers, and a description of the specific 
        services to be provided; and
          [(E) a description of the costs of the activities to 
        be undertaken.
  [(4) The Secretary shall develop a formal process for the 
submission of proposals and publish an announcement in the 
Federal Register with respect to that process and the 
availability of grants under this subsection.
  [(5) The Federal share of the cost of a program assisted 
under this subsection shall not exceed 70 percent.
  [(6) The Secretary shall give priority for grants under this 
subsection to proposals to carry out activities described in 
paragraph (2)(D).
  [(7) In awarding grants under this subsection, the Secretary 
may consider geographic factors, such as rural and urban areas 
and national distribution.
  [(8) Of the grants awarded under this subsection each year, 
not less than 5 shall each be for an amount that is not less 
than $500,000.
  [(d) Evaluation.--The Secretary shall reserve not more than 2 
percent of any amount appropriated pursuant to the 
authorization contained in subsection (e) for the purpose of 
carrying out an independent evaluation of the effectiveness of 
programs assisted under this section in improving the literacy 
and basic skills of workers and the productivity of employees, 
including potential for the replicability or adaption of such 
programs.
  [(e) Authorization of Appropriations.--(1) There are 
authorized to be appropriated for purposes of carrying out this 
section such sums as may be necessary for the fiscal year 1991, 
$60,000,000 for the fiscal year 1992, and such sums as may be 
necessary for each of the fiscal years 1993, 1994, and 1995.
  [(2) No funds may be appropriated under paragraph (1) of this 
subsection for any fiscal year unless the appropriation for 
this Act (other than this part) for that year is equal to or 
greater than $110,000,000.
  [(3) Amounts appropriated under this subsection shall remain 
available until expended.

[SEC. 372. ENGLISH LITERACY GRANTS.

  [(a) Grants to States.--(1) The Secretary may make grants to 
States which have State plans approved by the Secretary under 
section 342 for the establishment, operation, and improvement 
of English literacy programs for individuals of limited English 
proficiency. Such grants may provide for support services for 
program participants, including child care and transportation 
costs.
  [(2) A State shall be eligible to receive a grant under 
paragraph (1) if the State includes in a State plan submitted 
to the Secretary under section 342 a description of--
          [(A) the number of individuals of limited English 
        proficiency in the State who need or could benefit from 
        programs assisted under this chapter;
          [(B) the activities which would be undertaken under 
        the grant and the manner in which such activities will 
        promote English literacy and enable individuals in the 
        State to participate fully in national life;
          [(C) how the activities described in subparagraph (B) 
        will serve individuals of limited English proficiency, 
        including the qualifications and training of personnel 
        who will participate in the proposed activities;
          [(D) the resources necessary to develop and operate 
        the proposed activities and the resources to be 
        provided by the State; and
          [(E) the specific goals of the proposed activities 
        and how achievement of these goals will be measured.
  [(3) The Secretary may terminate a grant only if the 
Secretary determines that--
          [(A) the State has not made substantial progress in 
        achieving the specific educational goals set out in the 
        application; or
          [(B) there is no longer a need in the State for the 
        activities funded by the grant.
  [(b) Set-Aside for Community-Based Organizations.--A State 
that is awarded a grant under subsection (a) shall use not less 
than 50 percent of funds awarded under the grant to fund 
programs operated by community-based organizations with the 
demonstrated capability to administer English proficiency 
programs.
  [(c) Report.--A State that is awarded a grant under 
subsection (a) shall submit to the Secretary a report 
describing the activities funded under the grant for each 
fiscal year covered by the grant.
  [(d) Demonstration Program.--The Secretary, subject to the 
availability of funds appropriated pursuant to this section, 
shall directly, and through grants and contracts with public 
and private nonprofit agencies, institutions, and 
organizations, carry out a program--
          [(1) through the Adult Education Division to develop 
        innovative approaches and methods of literacy education 
        for individuals of limited English proficiency 
        utilizing new instructional methods and technologies; 
        and
          [(2) to designate the Center for Applied Linguistics 
        of the Office of Educational Research and Improvement 
        as a national clearinghouse on literacy education for 
        individuals of limited English proficiency to collect 
        and disseminate information concerning effective 
        approaches or methods, including coordination with 
        employment training and other education programs.
  [(e) Evaluation and Audit.--The Secretary shall evaluate the 
effectiveness of programs conducted under this section. 
Programs funded under this section shall be audited in 
accordance with chapter 75 of title 31, United States Code.
  [(f) Authorization of Appropriations.--(1) There are 
authorized to be appropriated $25,000,000 for the fiscal year 
1988, $26,300,000 for the fiscal year 1989, $27,600,000 for the 
fiscal year 1990, $29,000,000 for the fiscal year 1991, 
$30,500,000 for the fiscal year 1992, and $32,000,000 for the 
fiscal year 1993 to carry out this section.
  [(2) Funds appropriated pursuant to this section shall remain 
available until expended.
  [(3) Funds appropriated under this subsection may be combined 
with other funds made available for the State by the Federal 
Government for literacy training for individuals with limited 
English proficiency.
  [(4) Not more than 10 percent of funds available under this 
section may be used to carry out the provisions of subsection 
(d).
  [(5) Not more than 5 percent of funds available under this 
section may be used for State administration, technical 
assistance, and training.

[SEC. 373. EDUCATION PROGRAMS FOR COMMERCIAL DRIVERS.

  [(a) Program Authorized.--The Secretary is authorized to make 
grants on a competitive basis to pay the Federal share of the 
costs of establishing and operating adult education programs 
which increase the literacy skills of eligible commercial 
drivers so that such drivers may successfully complete the 
knowledge test requirements under the Commercial Motor Vehicle 
Safety Act of 1986.
  [(b) Federal Share.--The Federal share of the costs of the 
adult education programs authorized under subsection (a) shall 
be 50 percent. Nothing in this subsection shall be construed to 
require States to meet the non-Federal share from State funds.
  [(c) Eligible Entities.--Entities eligible to receive a grant 
under this section include--
          [(1) private employers employing commercial drivers 
        in partnership with agencies, colleges, or universities 
        described in paragraph (2);
          [(2) local educational agencies, State educational 
        agencies, colleges, universities, or community 
        colleges;
          [(3) approved apprentice training programs; and
          [(4) labor organizations, the memberships of which 
        include commercial drivers.
  [(d) Referral Program.--Grantees shall refer to appropriate 
adult education programs as authorized under this Act 
individuals who are identified as having literacy skill 
problems other than or beyond those which prevent them from 
successfully completing the knowledge test requirements under 
the Commercial Motor Vehicle Driver Safety Act of 1986.
  [(e) Definitions.--For purposes of this section:
          [(1) The term ``approved apprentice training 
        programs'' has the meaning given such term in the 
        National Apprenticeship Act of 1937.
          [(2) The term ``eligible commercial driver'' means a 
        driver licensed prior to the requirements of the 
        Commercial Motor Vehicle Safety Act of 1986.
  [(f) Authorization of Appropriations.--There are authorized 
to be appropriated $3,000,000 for each of fiscal years 1991, 
1992, and 1993.

                       [PART D--NATIONAL PROGRAMS

[SEC. 381. ADULT MIGRANT FARMWORKER AND IMMIGRANT EDUCATION.

  [(a) General Authority.--The Secretary is authorized to carry 
out a program of making grants to States and local eligible 
recipients to support planning, developing, and evaluating 
programs which are designed to provide adult education 
programs, services, and activities to meet the special needs of 
migrant farmworkers and immigrants. Programs operated from such 
grants shall be included in a State's plan and must conform to 
all requirements of programs provided for by the State's basic 
grant. In carrying out this section, the Secretary may enter 
into interagency agreements with the Secretary of Health and 
Human Services to conduct programs in conjunction with 
activities authorized under the Immigration Reform and Control 
Act of 1986.
  [(b) Priority.--In carrying out the provisions of this part, 
the Secretary shall from funds reserved under section 313(d) 
give first priority to the portion of the program described in 
subsection (a) for migrant farmworkers.

[SEC. 382. ADULT LITERACY VOLUNTEER TRAINING.

  [(a) General Authority.--The Secretary is authorized to carry 
out a program of making grants to States and local eligible 
recipients to support planning, implementation, and evaluation 
of programs designed to train adult volunteers, especially the 
elderly, who wish to participate as tutors in local adult 
education programs.
  [(b) Priority.--In carrying out the provisions of this part 
the Secretary shall from funds reserved under section 313(d) 
give second priority to the portion of the program described in 
subsection (a) for adult volunteers.

[SEC. 383. STATE PROGRAM ANALYSIS ASSISTANCE AND POLICY STUDIES.

  [(a) Federal Assistance.--(1) The Secretary is authorized to 
assist States in evaluating the status and progress of adult 
education in achieving the purposes of this title, and 
activities designed to provide such assistance shall include, 
but are not limited to--
          [(A) an analysis of State plans and of the findings 
        of evaluations conducted pursuant to section 352, with 
        suggestions to State agencies for improvements in 
        planning or program operation; and
          [(B) the provision of an information network (in 
        conjunction with the National Diffusion Network) on the 
        results of research in adult education, the operation 
        of model or innovative programs (including efforts to 
        continue activities and services, under the program 
        after the Federal funding has been discontinued) 
        successful experiences in the planning, administration, 
        and conduct of adult education programs, advances in 
        curriculum and instructional practices, and other 
        information useful in the improvement of adult 
        education.
  [(2) Priority.--In carrying out the provisions of this part 
the Secretary shall from funds reserved under section 313(d) 
give third priority to the portion of the program described in 
paragraph (1) for evaluation and research.
  [(b) Determination of Literacy.--The Secretary, in 
consultation with the Congress shall, within the first 2 years 
after enactment of the Adult Education Amendments of 1988, make 
a determination of the criteria for defining literacy, taking 
into consideration reports prepared by the National Assessment 
of Educational Progress and others and shall identify 
concretely those skills that comprise the basic educational 
skills needed for literate functioning. The Secretary, once the 
definition of literacy has been determined, shall, in 
consultation with the Congress and using the appropriate 
statistical sampling methodology, determine an accurate 
estimate of the number of illiterate adults in the Nation.
  [(c) Report on Status of Literacy and Adult Education.--
Subsequent to the determination of literacy and the number of 
illiterate individuals required in subsection (b), the 
Secretary shall submit a report every 4 years to the President 
and to the appropriate committees of the Congress on the status 
of literacy and adult education in the Nation.
  [(d) Evaluation Report.--Three years after the date of 
enactment of the Adult Education Amendments of 1988, and 
thereafter in conjunction with the report under subsection (c), 
the Secretary shall report to the appropriate committees of the 
Congress on the results of program evaluations required under 
this title and conclusions drawn therefrom regarding progress 
toward meeting the goals and purposes of this title, together 
with such recommendations as the Secretary may wish to make.
[SEC. 384. NATIONAL RESEARCH ACTIVITIES.

  [(a) Approved Activities.--The Secretary shall, through the 
Office of Educational Research and Improvement, support applied 
research, development, demonstration, dissemination, 
evaluation, and related activities which will contribute to the 
improvement and expansion of adult education in the Nation. 
Such activities shall include the operation of the Institute 
established by subsection (c) and the establishment of a 
national clearinghouse to compile information on literacy 
curriculum and resources for adults, including youth and adults 
of limited English proficiency and adults with handicaps. The 
Secretary may support such activities directly, or through 
grants to, or cooperative agreements with, public or private 
institutions, agencies, or organizations, or individuals.
  [(b) Research Concerning Special Needs.--In addition to the 
responsibilities of the Assistant Secretary for Educational 
Research and Improvement under section 405 of the General 
Education Provisions Act, the Assistant Secretary may, with 
funds available under that section, with funds available under 
other Federal programs, or with funds set aside under section 
313(d) of this title, support research on the special needs of 
persons requiring adult education including a study of the 
magnitude and nature of the needs of adults with learning 
disabilities who are eligible for participation in adult 
education programs. The Assistant Secretary may support such 
research directly or through grants to, or contracts or 
cooperative agreements with, public or private institutions, 
agencies, or organizations.
  [(c) Establishment.--(1) There is established the National 
Institute for Literacy (in this section referred to as the 
``Institute''). The Institute shall be administered under the 
terms of an interagency agreement entered into by the Secretary 
with the Secretary of Labor and the Secretary of Health and 
Human Services (in this section referred to as the 
``Interagency Group''). The head of any other agency designated 
by the President may be involved in the operation of the 
Institute as fits the involvement of such agency in 
accomplishing the purposes of the Institute. The Secretary may 
include in the Institute any research and development center 
supported under section 405(d)(4)(A)(ii) of the General 
Education Provisions Act and any other center, institute, or 
clearinghouse established within the Department of Education 
whose purpose is determined by the Secretary to be related to 
the purpose of the Institute.
  [(2) The Institute shall have offices separate from the 
offices of any agency or department involved in the operation 
of the Institute.
  [(3) The Interagency Group shall consider the Board's 
recommendations in planning the goals of the Institute and in 
the implementation of any programs to achieve such goals. The 
daily operations of the Institute shall be carried out by the 
Director. If the Board's recommendations are not followed, the 
Interagency Group shall provide a written explanation to the 
Board concerning actions the Interagency Group has taken that 
includes the Interagency Group's reasons for not following the 
Board's recommendations with respect to such actions. The Board 
may also request a meeting with the Interagency Group to 
discuss the Board's recommendations.
  [(d) Duties.--(1) The Institute is authorized, in order to 
improve and expand the system for delivery of literacy 
services, to--
          [(A) assist appropriate Federal agencies in setting 
        specific objectives and strategies for meeting the 
        goals of this title and in measuring the progress of 
        such agencies in meeting such goals;
          [(B) conduct basic and applied research and 
        demonstrations on literacy, including--
                  [(i) how adults learn to read and write and 
                acquire other skills;
                  [(ii) how the literacy skills of parents 
                affect the ability of children to learn 
                literacy skills;
                  [(iii) the assessment of literacy skills and 
                the development of instructional techniques;
                  [(iv) the best methods for assisting adults 
                and families to acquire literacy skills, 
                including the use of technology;
                  [(v) the special literacy needs of 
                individuals with learning disabilities and 
                individuals with limited English proficiency;
                  [(vi) how to effectively reach and teach the 
                most educationally disadvantaged individuals;
                  [(vii) the use of technology and other 
                studies which will increase the literacy 
                knowledge base, use but not duplicate the work 
                of other research services, and build on the 
                efforts of such other research services; and
                  [(viii) how to attract, train, and retrain 
                professional and volunteer teachers of 
                literacy;
          [(C) assist Federal, State, and local agencies in the 
        development, implementation, and evaluation of policy 
        with respect to literacy by--
                  [(i) establishing a national data base with 
                respect to--
                          [(I) literacy and basic skills 
                        programs, including programs in Federal 
                        departments, State agencies, and local 
                        agencies, and programs that are 
                        privately supported through nonprofit 
                        entities and for profit entities;
                          [(II) assessment tools and outcome 
                        measures;
                          [(III) the amount and quality of 
                        basic education provided in the 
                        workplace by businesses and industries; 
                        and
                          [(IV) progress made toward the 
                        national literacy goals; and
                  [(ii) providing technical and policy 
                assistance to government entities for the 
                improvement of policy and programs relating to 
                literacy and the development of model systems 
                for implementing and coordinating Federal 
                literacy programs that can be replicated at the 
                State and local level;
          [(D) provide program assistance, training, and 
        technical assistance for literacy programs throughout 
        the United States in order to improve the effectiveness 
        of such programs and to increase the number of such 
        programs, which assistance and training shall--
                  [(i) be based on the best available research 
                and knowledge; and
                  [(ii) be coordinated with activities 
                conducted by--
                          [(I) regional educational 
                        laboratories supported under section 
                        405(d)(4)(A)(i) of the General 
                        Education Provisions Act;
                          [(II) curriculum centers assisted 
                        under section 251(a)(8) of the Carl D. 
                        Perkins Vocational and Applied 
                        Technology Education Act; and
                          [(III) other educational and training 
                        entities that provide relevant 
                        technical assistance;
          [(E) collect and disseminate information to Federal, 
        State, and local entities with respect to literacy 
        methods that show great promise (including effective 
        methods of assessment, effective literacy programs, and 
        other information obtained through research or practice 
        relating to adult and family learning that would 
        increase the capacity and quality of literacy programs 
        in the United States), using a variety of methods to 
        ensure that the best information is received by State 
        and local providers of literacy services;
          [(F) review and make recommendations regarding--
                  [(i) ways to achieve uniformity among 
                reporting requirements;
                  [(ii) the development of performance 
                measures; and
                  [(iii) the development of standards for 
                program effectiveness of literacy-related 
                Federal programs; and
          [(G) provide a toll-free long-distance telephone line 
        for literacy providers and volunteers.
  [(2) The Institute may enter into contracts or cooperative 
agreements with, or make grants to, individuals, public or 
private nonprofit institutions, agencies, organizations, or 
consortia of such institutions, agencies, or organizations to 
carry out the activities of the Institute. Such grants, 
contracts, or agreements shall be subject to the laws and 
regulations that generally apply to grants, contracts, or 
agreements entered into by Federal agencies.
  [(e) Literacy Leadership.--(1) The Institute is, in 
consultation with the Board, authorized to award fellowships, 
with such stipends and allowances that the Director considers 
necessary, to outstanding individuals pursuing careers in adult 
education or literacy in the areas of instruction, management, 
research, or innovation.
  [(2) Fellowships awarded under this subsection shall be used, 
under the auspices of the Institute, to engage in research, 
education, training, technical assistance, or other activities 
to advance the field of adult education or literacy, including 
the training of volunteer literacy providers at the national, 
State, or local level.
  [(3) Individuals receiving fellowships pursuant to this 
subsection shall be known as ``Literacy Leader Fellows''.
  [(f) National Institute Board.--(1)(A) There is established 
the National Institute Board (in this section referred to as 
the ``Board''). The Board shall consist of 10 individuals 
appointed by the President with the advice and consent of the 
Senate from individuals who--
          [(i) are not otherwise officers or employees of the 
        Federal Government;
          [(ii) are representative of entities or groups 
        described in subparagraph (B); and
          [(iii) are chosen from recommendations made to the 
        President by individuals who represent such entities or 
        groups.
  [(B) Entities or groups described in this subparagraph are--
          [(i) literacy organizations and providers of literacy 
        services, including--
                  [(I) providers of literacy services receiving 
                assistance under this Act; and
                  [(II) nonprofit providers of literacy 
                services;
          [(ii) businesses that have demonstrated interest in 
        literacy programs;
          [(iii) literacy students;
          [(iv) experts in the area of literacy research;
          [(v) State and local governments; and
          [(vi) organized labor.
  [(2) The Board shall--
          [(A) make recommendations concerning the appointment 
        of the Director and staff of the Institute;
          [(B) provide independent advice on the operation of 
        the Institute; and
          [(C) receive reports from the Interagency Group and 
        the Director.
  [(3) The Interagency Group may carry out the duties of the 
Board until the expiration of the 180-day period beginning on 
the date of the enactment of the National Literacy Act of 1991.
  [(4) Except as otherwise provided, the Board established by 
this subsection shall be subject to the provisions of the 
Federal Advisory Committee Act.
  [(5)(A) Each member of the Board shall be appointed for a 
term of 3 years. Any such member may be appointed for not more 
than 2 consecutive terms.
  [(B) 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 members' 
term until a successor has taken office. A vacancy in the Board 
shall be filled in the manner in which the original appointment 
was made. A vacancy in the Board shall not affect the powers of 
the Board.
  [(6) A majority of the members of the Board shall constitute 
a quorum but a lesser number may hold hearings. Any 
recommendation may be passed only by a majority of its members 
present.
  [(7) The Chairperson and Vice Chairperson of the Board shall 
be elected by the members. The term of office of the 
Chairperson and Vice Chairperson shall be 2 years.
  [(8) The Board shall meet at the call of the Chairperson or a 
majority of its members.
  [(g) Gifts, Bequests, and Devises.--The Institute and the 
Board may accept (but not solicit), use, and dispose of gifts, 
bequests, or devises of services or property, both real and 
personal, for the purpose of aiding or facilitating the work of 
the Institute or the Board, respectively. Gifts, bequests, or 
devises of money and proceeds from sales of other property 
received as gifts, bequests, or devises shall be deposited in 
the Treasury and shall be available for disbursement upon order 
of the Institute or the Board, respectively.
  [(h) 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.
  [(i) Staff.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the 
pay of a Director.
  [(j) Applicability of Certain Civil Service Laws.--The 
Director and staff of the Institute may be appointed without 
regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and may be 
paid without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of that title relating to 
classification and General Schedule pay rates, except that an 
individual so appointed may not receive pay in excess of the 
annual rate of basic pay payable for GS-18 of the General 
Schedule.
  [(k) Experts and Consultants.--The Board and the Institute 
may procure temporary and intermittent services under section 
3109(b) of title 5, United States Code.
  [(l) Report.--The Institute shall submit a report to the 
Congress in each of the first 2 years in which it receives 
assistance under this section, and shall submit a report 
biennially thereafter. Each report submitted under this 
subsection shall include--
          [(1) a comprehensive and detailed description of the 
        Institute's operations, activities, financial 
        condition, and accomplishments in the field of literacy 
        for such fiscal year;
          [(2) a description of how plans for the operation of 
        the Institute for the succeeding fiscal year will 
        facilitate achievement of the goals of the Institute 
        and the goals of the literacy programs within the 
        Department of Education, the Department of Labor, and 
        the Department of Health and Human Services; and
          [(3) any additional minority, or dissenting views 
        submitted by members of the Board.
  [(m) Nonduplication.--The Institute shall not duplicate any 
functions carried out by the Secretary pursuant to subsection 
(a) or (b). This subsection shall not be construed to prohibit 
the Secretary from delegating such functions to the Institute.
  [(n) Authorization of Appropriations.--(1) There are 
authorized to be appropriated for purposes of operating the 
Institute established by subsection (c) $15,000,000 for each of 
the fiscal years 1992, 1993, 1994, 1995, and 1996.
  [(2) Any amounts appropriated to the Secretary, the Secretary 
of Labor, the Secretary of Health and Human Services, or any 
other department that participates in the Institute for 
purposes that the Institute is authorized to perform under this 
section may be provided to the Institute for such purposes.

[SEC. 385. LIMITATION.

  [No grant may be made under this title for any educational 
program, activity, or service related to sectarian instruction 
or religious worship, or provided by a school or department of 
divinity. For purposes of this section, the term ``school or 
department of divinity'' means an institution or a department 
or branch of an institution whose program is specifically for 
the education of students to prepare them to become ministers 
of religion or to enter upon some other religious vocation, or 
to prepare them to teach theological subjects.]

                              ----------                              

             ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965

          * * * * * * *

      TITLE I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS

          * * * * * * *

              PART B--EVEN START FAMILY LITERACY PROGRAMS

          * * * * * * *

SEC. 1202. PROGRAM AUTHORIZED.

  (a) * * *
          * * * * * * *
  (c) Reservation for Grants.--
          (1) Grants authorized.--In any fiscal year in which 
        the amount appropriated to carry out this part exceeds 
        the amount appropriated to carry out this part for the 
        preceding fiscal year, the Secretary may reserve such 
        funds in excess of the amount appropriated for such 
        preceding fiscal years as do not exceed $1,000,000 to 
        award grants, on a competitive basis, to States to 
        enable such States to plan and implement, statewide 
        family literacy initiatives to coordinate and integrate 
        existing Federal, State, and local literacy resources 
        consistent with the purposes of this part. Such 
        coordination and integration shall include funds 
        available under [the Adult Education Act,] title IV of 
        the CAREERS Act, Head Start, Even Start, and the Family 
        Support Act of 1988.
          * * * * * * *

SEC. 1205. PROGRAM ELEMENTS.

  Each program assisted under this part shall--
          (1) * * *
          * * * * * * *
          (8) be coordinated with--
                  (A) programs assisted under other parts of 
                this title and this Act;
                  (B) any relevant programs under [the Adult 
                Education Act,] title IV of the CAREERS Act, 
                the Individuals with Disabilities Education 
                Act, and the Job Training Partnership Act; and
          * * * * * * *

SEC. 1206. ELIGIBLE PARTICIPANTS.

  (a) In General.--Except as provided in subsection (b), 
eligible participants in an Even Start program are--
          (1) a parent or parents--
                  (A) who are eligible for participation in an 
                adult basic education program under [the Adult 
                Education Act;] title IV of the CAREERS Act; or
          * * * * * * *

                  TITLE III--TECHNOLOGY FOR EDUCATION

SEC. 3101. SHORT TITLE.

  This title may be cited as the ``Technology for Education Act 
of 1994''.

            PART A--TECHNOLOGY FOR EDUCATION OF ALL STUDENTS

          * * * * * * *

SEC. 3113. DEFINITIONS.

  For purposes of this title--
          (1) the term ``adult education'' has the same meaning 
        given such term by [section 312 of the Adult Education 
        Act;] section 5 of the CAREERS Act;
          * * * * * * *
          (10) the term ``State library administrative agency'' 
        has the same meaning given to such term in [section 3 
        of the Library Services and Construction Act;] section 
        5 of the CAREERS Act; and
          * * * * * * *

   [PART F--ELEMENTARY AND SECONDARY SCHOOL LIBRARY MEDIA RESOURCES 
                                PROGRAM

[SEC. 3601. PROGRAM AUTHORIZED.

  [The Secretary shall award grants or make allocations in 
accordance with section 3602 for the acquisition of school 
library media resources for the use of students, library media 
specialists, and teachers in elementary and secondary schools 
in accordance with this part.
[SEC. 3602. ALLOCATION TO STATES.

  [(a) From the amount appropriated pursuant to section 3605 in 
each fiscal year, the Secretary shall award funds to each State 
having an approved plan under section 3603 as follows:
          [(1) Amounts below $50,000,000.--If the amount made 
        available under subsection (a) for a fiscal year is 
        less than $50,000,000, then the Secretary shall award 
        grants to States, on a competitive basis, taking into 
        account such factors as age and condition of existing 
        school library media collections and the relative 
        economic need of the students to be served.
          [(2) Amounts equal to or exceeding $50,000,000.--If 
        the amount made available under subsection (a) for a 
        fiscal year equals or exceeds $50,000,000, then the 
        Secretary shall allocate to each State an amount which 
        bears the same relationship to such amount as the 
        amount such State received under title II for such year 
        bears to the amount all States received under such 
        title for such year.

[SEC. 3603. STATE PLANS.

  [(a) In General.--In order for a State to receive a grant or 
an allocation of funds under this part for any fiscal year, 
such State shall have in effect for such fiscal year a State 
plan. Such plan shall--
          [(1) designate the State educational agency as the 
        State agency responsible for the administration of the 
        program assisted under this part;
          [(2) set forth a program under which funds paid to 
        the State in accordance with section 3602 will be 
        expended solely for--
                  [(A) acquisition of school library media 
                resources, including books and foreign language 
                resources, for the use of students, school 
                library media specialists, and teachers in 
                elementary and secondary schools in the United 
                States; and
                  [(B) administration of the State plan, 
                including development and revision of 
                standards, relating to school library media 
                resources, except that the amount used for 
                administration of the State plan in any fiscal 
                year shall not exceed three percent of the 
                amount available to such State under section 
                3602 for such fiscal year; and
          [(3) set forth criteria to be used in allotting funds 
        for school library media resources among the local 
        educational agencies of the State, which allotment 
        shall take into consideration the relative need of the 
        students, school media specialists, and teachers to be 
        served.
  [(b) Plan Submission.--The State plan may be submitted as 
part of a consolidated application under section 14302.

[SEC. 3604. DISTRIBUTION OF ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

  [From the funds allocated to a State under section 3602(2) in 
each fiscal year, such State shall distribute not less than 97 
percent of such funds in such year to local educational 
agencies within such State according to the relative enrollment 
of students in elementary and secondary schools within the 
school districts of such State, adjusted to provide higher per 
pupil allotments to local educational agencies that have the 
greatest number or percentages of students whose education 
imposes a higher than average cost per child, such as those 
students--
          [(1) living in areas with high concentrations of low-
        income families;
          [(2) from low-income families; and
          [(3) living in sparsely populated areas.

[SEC. 3605. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
part $200,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.]
          * * * * * * *

     TITLE IX--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

          * * * * * * *

                        PART A--INDIAN EDUCATION

          * * * * * * *

        Subpart 6--Definitions; Authorizations of Appropriations

SEC. 9161. DEFINITIONS.

  As used in this part:
          (1) * * *
          (2) Adult education.--The term ``adult education'' 
        has the meaning given such term in [section 312(2) of 
        the Adult Education Act.] section 5 of the CAREERS Act.
          * * * * * * *
                              ----------                              

                     NATIONAL LITERACY ACT OF 1991

 AN ACT To enhance the literacy and basic skills of adults, to ensure 
that all adults in the United States acquire the basic skills necessary 
 to function effectively and achieve the greatest possible opportunity 
  in their work and in their lives, and to strengthen and coordinate 
                        adult literacy programs.

  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 ``National Literacy Act of 
1991''.

[SEC. 2. FINDINGS.

  [The Congress finds that--
          [(1) nearly 30,000,000 adults in the United States 
        have serious problems with literacy;
          [(2) literacy problems are intergenerational and 
        closely associated with poverty and pose a major threat 
        to the economic well-being of the United States;
          [(3) present public and private literacy programs 
        reach only a small portion of the population in need 
        and often result in only minimal learning gains;
          [(4) the prevention of illiteracy is essential to 
        stem further growth in national illiteracy rates;
          [(5) literacy programs generally lack adequate 
        funding, adequate coordination with other literacy 
        programs, and an adequate investment in teacher 
        training and technology;
          [(6) access to better information about the best 
        practices in the literacy field and more research in 
        order to provide better diagnostic and instructional 
        tools are essential for the improvement of literacy and 
        employability in the United States;
          [(7) as many as 50,000,000 workers may have to be 
        trained or retrained before the year 2000;
          [(8) the supply of unskilled workers is increasing 
        while the demand for unskilled labor is decreasing;
          [(9) programs under the Adult Education Act, which 
        are the largest Federal source of direct literacy 
        services in the United States, serve only 10 percent of 
        eligible participants; and
          [(10) all public and private literacy programs serve 
        only about 19 percent of those who need help.

[SEC. 3. DEFINITION.

  [For purposes of this Act the term ``literacy'' means an 
individual's ability to read, write, and speak in English, and 
compute and solve problems at levels of proficiency necessary 
to function on the job and in society, to achieve one's goals, 
and develop one's knowledge and potential.

  [TITLE I--LITERACY: STRATEGIC PLANNING, RESEARCH, AND COORDINATION]

SEC. 101. LITERACY RELATED PROGRAMS IN THE DEPARTMENT OF EDUCATION.

  Section 202 of the Department of Education Organization Act 
(20 U.S.C. 3412) is amended by adding at the end the following:
  ``(h) The Assistant Secretary for Vocational and Adult 
Education, in addition to performing such functions as the 
Secretary may prescribe, shall have responsibility for 
coordination of all literacy related programs and policy 
initiatives in the Department. The Assistant Secretary for 
Vocational and Adult Education shall assist in coordinating the 
related activities and programs of other Federal departments 
and agencies.''.

[SEC. 102. NATIONAL INSTITUTE FOR LITERACY.

  [(a) Purpose.--It is the purpose of the amendment made by 
this section to enhance the national effort to eliminate the 
problem of illiteracy by the year 2000 by improving research, 
development and information dissemination through a national 
research center.
  [(b) Findings.--The Congress finds that--
          [(1) much too little is known about how to improve 
        access to, and enhance the effectiveness of, adult 
        literacy programs, assessment tools, and evaluation 
        efforts;
          [(2) there is neither a reliable nor a central source 
        of information about the knowledge base in the area of 
        literacy;
          [(3) a national institute for literacy would--
                  [(A) provide a national focal point for 
                research, technical assistance and research 
                dissemination, policy analysis, and program 
                evaluation in the area of literacy; and
                  [(B) facilitate a pooling of ideas and 
                expertise across fragmented programs and 
                research efforts.
  [(c) Amendment to the Adult Education Act.--Section 384 of 
the Adult Education Act (20 U.S.C. 1213c) is amended--
          [(1) in the second sentence of subsection (a), by 
        inserting after ``shall include'' the following: ``the 
        operation of the Institute established by subsection 
        (c) and''; and
          [(2) by adding at the end the following:
  [``(c) Establishment.--(1) There is established the National 
Institute for Literacy (in this section referred to as the 
`Institute'). The Institute shall be administered under the 
terms of an interagency agreement entered into by the Secretary 
with the Secretary of Labor and the Secretary of Health and 
Human Services (in this section referred to as the `Interagency 
Group'). The head of any other agency designated by the 
President may be involved in the operation of the Institute as 
fits the involvement of such agency in accomplishing the 
purposes of the Institute. The Secretary may include in the 
Institute any research and development center supported under 
section 405(d)(4)(A)(ii) of the General Education Provisions 
Act and any other center, institute, or clearinghouse 
established within the Department of Education whose purpose is 
determined by the Secretary to be related to the purpose of the 
Institute.
  [``(2) The Institute shall have offices separate from the 
offices of any agency or department involved in the operation 
of the Institute.
  [``(3) The Interagency Group shall consider the Board's 
recommendations in planning the goals of the Institute and in 
the implementation of any programs to achieve such goals. The 
daily operations of the Institute shall be carried out by the 
Director. If the Board's recommendations are not followed, the 
Interagency Group shall provide a written explanation to the 
Board concerning actions the Interagency Group has taken that 
includes the Interagency Group's reasons for not following the 
Board's recommendations with respect to such actions. The Board 
may also request a meeting with the Interagency Group to 
discuss the Board's recommendations.
  [``(d) Duties.--(1) The Institute is authorized, in order to 
improve and expand the system for delivery of literacy 
services, to--
          [``(A) assist appropriate Federal agencies in setting 
        specific objectives and strategies for meeting the 
        goals of this title and in measuring the progress of 
        such agencies in meeting such goals;
          [``(B) conduct basic and applied research and 
        demonstrations on literacy, including--
                  [``(i) how adults learn to read and write and 
                acquire other skills;
                  [``(ii) how the literacy skills of parents 
                affect the ability of children to learn 
                literacy skills;
                  [``(iii) the assessment of literacy skills 
                and the development of instructional 
                techniques;
                  [``(iv) the best methods for assisting adults 
                and families to acquire literacy skills, 
                including the use of technology;
                  [``(v) the special literacy needs of 
                individuals with learning disabilities and 
                individuals with limited English proficiency;
                  [``(vi) how to effectively reach and teach 
                the most educationally disadvantaged 
                individuals;
                  [``(vii) the use of technology and other 
                studies which will increase the literacy 
                knowledge base, use but not duplicate the work 
                of other research services, and build on the 
                efforts of such other research services; and
                  [``(viii) how to attract, train, and retrain 
                professional and volunteer teachers of 
                literacy;
          [``(C) assist Federal, State, and local agencies in 
        the development, implementation, and evaluation of 
        policy with respect to literacy by--
                  [``(i) establishing a national data base with 
                respect to--
                          [``(I) literacy and basic skills 
                        programs, including programs in Federal 
                        departments, State agencies, and local 
                        agencies, and programs that are 
                        privately supported through nonprofit 
                        entities and for profit entities;
                          [``(II) assessment tools and outcome 
                        measures;
                          [``(III) the amount and quality of 
                        basic education provided in the 
                        workplace by businesses and industries; 
                        and
                          [``(IV) progress made toward the 
                        national literacy goals; and
                  [``(ii) providing technical and policy 
                assistance to government entities for the 
                improvement of policy and programs relating to 
                literacy and the development of model systems 
                for implementing and coordinating Federal 
                literacy programs that can be replicated at the 
                State and local level;
          [``(D) provide program assistance, training, and 
        technical assistance for literacy programs throughout 
        the United States in order to improve the effectiveness 
        of such programs and to increase the number of such 
        programs, which assistance and training shall--
                  [``(i) be based on the best available 
                research and knowledge; and
                  [``(ii) be coordinated with activities 
                conducted by--
                          [``(I) regional educational 
                        laboratories supported under section 
                        405(d)(4)(A)(i) of the General 
                        Education Provisions Act;
                          [``(II) curriculum centers assisted 
                        under section 251(a)(8) of the Carl D. 
                        Perkins Vocational and Applied 
                        Technology Education Act; and
                          [``(III) other educational and 
                        training entities that provide relevant 
                        technical assistance;
          [``(E) collect and disseminate information to 
        Federal, State, and local entities with respect to 
        literacy methods that show great promise (including 
        effective methods of assessment, effective literacy 
        programs, and other information obtained through 
        research or practice relating to adult and family 
        learning that would increase the capacity and quality 
        of literacy programs in the United States), using a 
        variety of methods to ensure that the best information 
        is received by State and local providers of literacy 
        services;
          [``(F) review and make recommendations regarding--
                  [``(i) ways to achieve uniformity among 
                reporting requirements;
                  [``(ii) the development of performance 
                measures; and
                  [``(iii) the development of standards for 
                program effectiveness of literacy-related 
                Federal programs; and
          [``(G) provide a toll-free long-distance telephone 
        line for literacy providers and volunteers.
  [``(2) The Institute may enter into contracts or cooperative 
agreements with, or make grants to, individuals, public or 
private nonprofit institutions, agencies, organizations, or 
consortia of such institutions, agencies, or organizations to 
carry out the activities of the Institute. Such grants, 
contracts, or agreements shall be subject to the laws and 
regulations that generally apply to grants, contracts, or 
agreements entered into by Federal agencies.
  [``(e) Literacy Leadership.--(1) The Institute is, in 
consultation with the Board, authorized to award fellowships, 
with such stipends and allowances that the Director considers 
necessary, to outstanding individuals pursuing careers in adult 
education or literacy in the areas of instruction, management, 
research, or innovation.
  [``(2) Fellowships awarded under this subsection shall be 
used, under the auspices of the Institute, to engage in 
research, education, training, technical assistance, or other 
activities to advance the field of adult education or literacy, 
including the training of volunteer literacy providers at the 
national, State, or local level.
  [``(3) Individuals receiving fellowships pursuant to this 
subsection shall be known as `Literacy Leader Fellows'.
  [``(f) National Institute Board.--(1)(A) There is established 
the National Institute Board (in this section referred to as 
the `Board'). The Board shall consist of 10 individuals 
appointed by the President with the advice and consent of the 
Senate from individuals who--
          [``(i) are not otherwise officers or employees of the 
        Federal Government;
          [``(ii) are representative of entities or groups 
        described in subparagraph (B); and
          [``(iii) are chosen from recommendations made to the 
        President by individuals who represent such entities or 
        groups.
  [``(B) Entities or groups described in this subparagraph 
are--
          [``(i) literacy organizations and providers of 
        literacy services, including--
                  [``(I) providers of literacy services 
                receiving assistance under this Act; and
                  [``(II) nonprofit providers of literacy 
                services;
          [``(ii) businesses that have demonstrated interest in 
        literacy programs;
          [``(iii) literacy students;
          [``(iv) experts in the area of literacy research;
          [``(v) State and local governments; and
          [``(vi) organized labor.
  [``(2) The Board shall--
          [``(A) make recommendations concerning the 
        appointment of the Director and staff of the Institute;
          [``(B) provide independent advice on the operation of 
        the Institute; and
          [``(C) receive reports from the Interagency Group and 
        the Director.
  [``(3) The Interagency Group may carry out the duties of the 
Board until the expiration of the 180-day period beginning on 
the date of the enactment of the National Literacy Act of 1991.
  [``(4) Except as otherwise provided, the Board established by 
this subsection shall be subject to the provisions of the 
Federal Advisory Committee Act.
  [``(5)(A) Each member of the Board shall be appointed for a 
term of 3 years. Any such member may be appointed for not more 
than 2 consecutive terms.
  [``(B) 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 members' term until a successor has taken office. A 
vacancy in the Board shall be filled in the manner in which the 
original appointment was made. A vacancy in the Board shall not 
affect the powers of the Board.
  [``(6) A majority of the members of the Board shall 
constitute a quorum but a lesser number may hold hearings. Any 
recommendation may be passed only by a majority of its members 
present.
  [``(7) The Chairperson and Vice Chairperson of the Board 
shall be elected by the members. The term of office of the 
Chairperson and Vice Chairperson shall be 2 years.
  [``(8) The Board shall meet at the call of the Chairperson or 
a majority of its members.
  [``(g) Gifts, Bequests, and Devises.--The Institute and the 
Board may accept (but not solicit), use, and dispose of gifts, 
bequests, or devises of services or property, both real and 
personal, for the purpose of aiding or facilitating the work of 
the Institute or the Board, respectively. Gifts, bequests, or 
devises of money and proceeds from sales of other property 
received as gifts, bequests, or devises shall be deposited in 
the Treasury and shall be available for disbursement upon order 
of the Institute or the Board, respectively.
  [``(h) 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.
  [``(i) Staff.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the 
pay of a Director.
  [``(j) Applicability of Certain Civil Service Laws.--The 
Director and staff of the Institute may be appointed without 
regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and may be 
paid without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of that title relating to 
classification and General Schedule pay rates, except that an 
individual so appointed may not receive pay in excess of the 
annual rate of basic pay payable for GS-18 of the General 
Schedule.
  [``(k) Experts and Consultants.--The Board and the Institute 
may procure temporary and intermittent services under section 
3109(b) of title 5, United States Code.
  [``(l) Report.--The Institute shall submit a report to the 
Congress in each of the first 2 years in which it receives 
assistance under this section, and shall submit a report 
biennially thereafter. Each report submitted under this 
subsection shall include--
          [``(1) a comprehensive and detailed description of 
        the Institute's operations, activities, financial 
        condition, and accomplishments in the field of literacy 
        for such fiscal year;
          [``(2) a description of how plans for the operation 
        of the Institute for the succeeding fiscal year will 
        facilitate achievement of the goals of the Institute 
        and the goals of the literacy programs within the 
        Department of Education, the Department of Labor, and 
        the Department of Health and Human Services; and
          [``(3) any additional minority, or dissenting views 
        submitted by members of the Board.
  [``(m) Nonduplication.--The Institute shall not duplicate any 
functions carried out by the Secretary pursuant to subsection 
(a) or (b). This subsection shall not be construed to prohibit 
the Secretary from delegating such functions to the Institute.
  [``(n) Authorization of Appropriations.--(1) There are 
authorized to be appropriated for purposes of operating the 
Institute established by subsection (c) $15,000,000 for each of 
the fiscal years 1992, 1993, 1994, and 1995.
  [``(2) Any amounts appropriated to the Secretary, the 
Secretary of Labor, the Secretary of Health and Human Services, 
or any other department that participates in the Institute for 
purposes that the Institute is authorized to perform under this 
section may be provided to the Institute for such purposes.''.

[SEC. 103. STATE LITERACY RESOURCE CENTERS.

  [Part B of the Adult Education Act (20 U.S.C. 1203 et seq.) 
is amended--
          [(1) by redesignating subpart 7 as subpart 8; and
          [(2) by inserting after subpart 6 the following:

             [``Subpart 7--State Literacy Resource Centers

[``SEC. 356. STATE LITERACY RESOURCE CENTERS.

  [``(a) Purpose.--It is the purpose of this section to assist 
State and local public and private nonprofit efforts to 
eliminate illiteracy through a program of State literacy 
resource center grants to--
          [``(1) stimulate the coordination of literacy 
        services,
          [``(2) enhance the capacity of State and local 
        organizations to provide literacy services, and
          [``(3) serve as a reciprocal link between the 
        National Institute for Literacy and service providers 
        for the purpose of sharing information, data, research, 
        and expertise and literacy resources.
  [``(b) Establishment.--From amounts appropriated pursuant to 
subsection (k), the Secretary is authorized to make grants for 
purposes of establishing a network of State or regional adult 
literacy resource centers.
  [``(c) Allotment.--(1) From sums available for purposes of 
making grants under this section for any fiscal year, the 
Secretary shall allot to each State having an approved 
application under subsection (h) an amount that bears the same 
ratio to such sums as the amount allotted to such State under 
section 313(b) for the purpose of making grants under section 
321 bears to the aggregate amount allotted to all States under 
such section for such purpose.
  [``(2) The chief executive officer of each State that 
receives its allotment under this section shall contract on a 
competitive basis with the State educational agency, 1 or more 
local educational agencies, a State office on literacy, a 
volunteer organization, a community-based organization, 
institution of higher education, or other nonprofit entity to 
operate a State literacy resource center. No applicant 
participating in a competition pursuant to the preceding 
sentence shall participate in the review of its own 
application.
  [``(d) Use of Funds.--Funds provided to each State under 
subsection (c)(1) to carry out this section shall be used to 
conduct activities to--
          [``(1) improve and promote the diffusion and adoption 
        of state-of-the-art teaching methods, technologies and 
        program evaluations;
          [``(2) develop innovative approaches to the 
        coordination of literacy services within and among 
        States and with the Federal Government;
          [``(3) assist public and private agencies in 
        coordinating the delivery of literacy services;
          [``(4) encourage government and industry 
        partnerships, including partnerships with small 
        businesses, private nonprofit organizations, and 
        community-based organizations;
          [``(5) encourage innovation and experimentation in 
        literacy activities that will enhance the delivery of 
        literacy services and address emerging problems;
          [``(6) provide technical and policy assistance to 
        State and local governments and service providers to 
        improve literacy policy and programs and access to such 
        programs;
          [``(7) provide training and technical assistance to 
        literacy instructors in reading instruction and in--
                  [``(A) selecting and making the most 
                effective use of state-of-the-art 
                methodologies, instructional materials, and 
                technologies such as--
                          [``(i) computer assisted instruction;
                          [``(ii) video tapes;
                          [``(iii) interactive systems; and
                          [``(iv) data link systems; or
                  [``(B) assessing learning style, screening 
                for learning disabilities, and providing 
                individualized remedial reading instruction; or
          [``(8) encourage and facilitate the training of full-
        time professional adult educators.
  [``(e) Alternative Uses of Equipment.--Equipment purchases 
pursuant to this section, when not being used to carry out the 
provisions of this section, may be used for other instructional 
purposes if--
          [``(1) the acquisition of the equipment was 
        reasonable and necessary for the purpose of conducting 
        a properly designed project or activity under this 
        section;
          [``(2) the equipment is used after regular program 
        hours or on weekends; and
          [``(3) such other use is--
                  [``(A) incidental to the use of the equipment 
                under this section;
                  [``(B) does not interfere with the use of the 
                equipment under this section; and
                  [``(C) does not add to the cost of using the 
                equipment under this section.
  [``(f) Limitation.--Not more than 10 percent of amounts 
received under any grant received under this section shall be 
used to purchase computer hardware or software.
  [``(g) Special Rule.--(1) Each State receiving funds pursuant 
to this section may not use more than 5 percent of such funds 
to establish a State advisory council on adult education and 
literacy (in this section referred to as the `State council') 
pursuant to section 332.
  [``(2) Each State receiving funds pursuant to this section 
may use such funds to support an established State council to 
the extent that such State council meets the requirements of 
section 332.
  [``(3) Each State receiving funds pursuant to this paragraph 
to establish or support a State council pursuant to section 332 
shall provide matching funds on a dollar-for-dollar basis.
  [``(h) Applications.--Each State or group of States, as 
appropriate, that desires to receive a grant under this section 
for a regional adult literacy resource center, a State adult 
literacy resource center, or both shall submit to the Secretary 
an application that has been reviewed and commented on by the 
State council, where appropriate, and that describes how the 
State or group of States will--
          [``(1) develop a literacy resource center or expand 
        an existing literacy resource center;
          [``(2) provide services and activities with the 
        assistance provided under this section;
          [``(3) assure access to services of the center for 
        the maximum participation of all public and private 
        programs and organizations providing or seeking to 
        provide basic skills instruction, including local 
        educational agencies, agencies responsible for 
        corrections education, service delivery areas under the 
        Job Training Partnership Act, welfare agencies, labor 
        organizations, businesses, volunteer groups, and 
        community-based organizations;
          [``(4) address the measurable goals for improving 
        literacy levels as set forth in the plan submitted 
        pursuant to section 342; and
          [``(5) develop procedures for the coordination of 
        literacy activities for statewide and local literacy 
        efforts conducted by public and private organizations, 
        and for enhancing the systems of service delivery.
  [``(i) Payments; Federal Share.--(1) The Secretary shall pay 
to each State having an application approved pursuant to 
subsection (h) the Federal share of the cost of the activities 
described in the application.
  [``(2) The Federal share--
          [``(A) for each of the first 2 fiscal years in which 
        the State receives funds under this section shall not 
        exceed 80 percent;
          [``(B) for each of the third and fourth fiscal years 
        in which the State receives funds under this section 
        shall not exceed 70 percent; and
          [``(C) for the fifth and each succeeding fiscal year 
        in which the State receives funds under this section 
        shall not exceed 60 percent.
  [``(3) The non-Federal share of payments under this section 
may be in cash or in kind, fairly evaluated, including plant, 
equipment, or services.
  [``(j) Regional Centers.--(1) A group of States may enter 
into an interstate agreement to develop and operate a regional 
adult literacy resource center for purposes of receiving 
assistance under this section if the States determine that a 
regional approach is more appropriate for their situation.
  [``(2) Any State that receives assistance under this section 
as part of a regional center shall only be required to provide 
under subsection (i) 50 percent of the funds such State would 
otherwise be required to provide under such subsection.
  [``(3) In any fiscal year in which the amount a State will 
receive under this section is less than $100,000, the Secretary 
may designate the State to receive assistance under this 
section only as part of a regional center.
  [``(4) The provisions of paragraph (3) shall not apply to any 
State that can demonstrate to the Secretary that the total 
amount of Federal, State, local and private funds expended to 
carry out the purposes of this section would equal or exceed 
$100,000.
  [``(5) In any fiscal year in which paragraph (2) applies, the 
Secretary may allow certain States that receive assistance as 
part of a regional center to reserve a portion of such 
assistance for a State adult literacy resource center pursuant 
to this section.
  [``(k) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out the provisions of this section 
$25,000,000 for each of the fiscal years 1992 and 1993, and 
such sums as may be necessary for each of the fiscal years 1994 
and 1995.''.

                     [TITLE II--WORKFORCE LITERACY

[SEC. 201. NATIONAL WORKFORCE LITERACY ASSISTANCE COLLABORATIVE.

  [(a) Establishment.--There is established in the Department 
of Labor a National Workforce Literacy Assistance Collaborative 
(in this subsection referred to as the ``Collaborative'') to 
improve the basic skills of individuals, especially those 
individuals who are marginally employed or unemployed with low 
basic skills and limited opportunity for long-term employment 
and advancement, by assisting small- and medium-sized 
businesses, business associations that represent small- and 
medium-sized businesses, and labor organizations to develop and 
implement literacy programs tailored to the needs of the 
workforce.
  [(b) Functions.--The Collaborative shall--
          [(1) develop and implement a plan for providing 
        small- and medium-sized businesses with the technical 
        assistance required to address the literacy needs of 
        their workforce;
          [(2) monitor the development of workforce literacy 
        training programs and identify best practices and 
        successful small- and medium-sized business program 
        models;
          [(3) inform businesses and unions of research 
        findings and best practices regarding exemplary 
        curricula, instructional techniques, training models, 
        and the use of technology as a training tool in the 
        workplace;
          [(4) provide technical assistance to help businesses 
        assess individual worker literacy skill needs, 
        implement workforce literacy training programs, and 
        evaluate training program effectiveness;
          [(5) promote cooperation and coordination among State 
        and local agencies and the private sector to obtain 
        maximum uses of existing literacy and basic skills 
        training resources;
          [(6) conduct regional and State small business 
        workforce literacy meetings to increase program 
        effectiveness and accountability;
          [(7) establish cooperative arrangements with the 
        National Institute for Literacy and other centers 
        involved in literacy and basic skills research and 
        development activities; and
          [(8) prepare and produce written and video materials 
        necessary to support technical assistance and 
        information dissemination efforts.
  [(c) Authorization of Appropriations.--There are authorized 
to be appropriated for purposes of carrying out this section 
$5,000,000 for each of the fiscal years 1992, 1993, 1994, and 
1995.

[SEC. 202. GRANTS FOR NATIONAL WORKFORCE LITERACY STRATEGIES.

  [Section 371 of the Adult Education Act (20 U.S.C. 1211) is 
amended--
          [(1) in subsection (a)--
                  [(A) in paragraph (1), by inserting after 
                ``Secretary'' the following: ``, in 
                consultation with the Secretary of Labor and 
                the Administrator of the Small Business 
                Administration,'';
                  [(B) in subparagraph (B) of paragraph (2)--
                          [(i) by striking ``and'' and 
                        inserting a comma; and
                          [(ii) by inserting after ``local 
                        educational agencies'' the following: 
                        ``, and other entities described in 
                        paragraph (1) that receive grants under 
                        this subsection''; and
                  [(C) by adding at the end the following:
  [``(5) In awarding grants under this section, the Secretary 
shall give priority to applications from partnerships that 
include small businesses.
  [``(6) The Secretary is authorized to award grants under this 
section for a period not to exceed 3 years.'';
          [(2) in subsection (b)--
                  [(A) in paragraph (1), by striking 
                ``subsection (c)'' and inserting ``subsection 
                (e)'';
                  [(B) in subparagraph (B) of paragraph (2)--
                          [(i) by striking ``and'' the first 
                        place it appears and inserting a comma; 
                        and
                          [(ii) by inserting after ``local 
                        educational agencies'' the following: 
                        ``, and other entities described in 
                        paragraph (1) that receive grants under 
                        this subsection''; and
                  [(C) in paragraph (7), by amending 
                subparagraph (B) to read as follows:
  [``(B) From the sum appropriated for each fiscal year under 
subsection (c) for any fiscal year in which appropriations 
equal or exceed $50,000,000, the Secretary shall allot to each 
State (as defined in section 312(7)) an amount proportionate to 
the amount such State receives under section 313.'';
          [(3) by redesignating subsection (c) as subsection 
        (e);
          [(4) by inserting after subsection (b) the following:
  [``(c) Grant for National Workforce Literacy Strategies.--(1) 
In any fiscal year in which amounts appropriated pursuant to 
the authorization contained in subsection (e) equal or exceed 
$25,000,000, the Secretary shall reserve not more than 
$5,000,000 to establish a program of grants to facilitate the 
design and implementation of national strategies to assist 
unions, unions in collaboration with programs eligible for 
assistance under this Act and businesses, and small- and 
medium-sized businesses to effectively provide literacy and 
basic skills training to workers.
  [``(2) Grants awarded under this subsection shall pay the 
Federal share of the cost of programs to establish large-scale 
national strategies in workforce literacy, which may include 
the following activities:
          [``(A) Basic skills training that is--
                  [``(i) cost-effective;
                  [``(ii) needed by employees; and
                  [``(iii) required by employers to establish a 
                trainable workforce that can take advantage of 
                further job specific training and advance the 
                productivity of the labor force on an 
                individual, industry, or national level.
          [``(B) Specific program offerings, which may 
        include--
                  [``(i) English as a second language 
                instruction;
                  [``(ii) communications skill building;
                  [``(iii) interpersonal skill building;
                  [``(iv) reading and writing skill building; 
                and
                  [``(v) computation and problem solving.
          [``(C) Appropriate assessments of the literacy and 
        basic skills needs of individual workers and the skill 
        levels required by business.
          [``(D) Cooperative arrangements with other 
        organizations involved in providing literacy and basic 
        skills training, including adult education 
        organizations, vocational education organizations, 
        community and junior colleges, community-based 
        organizations, State level agencies, and private 
        industry councils.
          [``(E) The establishment as appropriate of 
        technology-based learning environments, such as 
        computer-based learning centers.
  [``(3) Any partnership described in subsection (a)(1) that 
desires to receive a grant under this subsection shall submit a 
proposal to the Secretary. The proposal shall contain a plan 
specifying a strategy for designing and implementing workforce 
literacy and basic skills training for workers, and justifying 
the national, statewide, or industry-wide importance of this 
strategy. The proposal shall include--
          [``(A) a demonstration of need for literacy and basic 
        skills training;
          [``(B) a description of the business or industry for 
        which the strategy is to be established;
          [``(C) a statement of specific, measurable goals and 
        participant outcomes;
          [``(D) a strategy for achieving the goals, including 
        a description of the process to identify literacy and 
        basic skills required by employers and the skills of 
        individual workers, and a description of the specific 
        services to be provided; and
          [``(E) a description of the costs of the activities 
        to be undertaken.
  [``(4) The Secretary shall develop a formal process for the 
submission of proposals and publish an announcement in the 
Federal Register with respect to that process and the 
availability of grants under this subsection.
  [``(5) The Federal share of the cost of a program assisted 
under this subsection shall not exceed 70 percent.
  [``(6) The Secretary shall give priority for grants under 
this subsection to proposals to carry out activities described 
in paragraph (2)(D).
  [``(7) In awarding grants under this subsection, the 
Secretary may consider geographic factors, such as rural and 
urban areas and national distribution.
  [``(8) Of the grants awarded under this subsection each year, 
not less than 5 shall each be for an amount that is not less 
than $500,000.
  [``(d) Evaluation.--The Secretary shall reserve not more than 
2 percent of any amount appropriated pursuant to the 
authorization contained in subsection (e) for the purpose of 
carrying out an independent evaluation of the effectiveness of 
programs assisted under this section in improving the literacy 
and basic skills of workers and the productivity of employees, 
including potential for the replicability or adaption of such 
programs.''; and
          [(5) in subsection (e) (as redesignated by paragraph 
        (3)) by striking paragraph (1) and inserting the 
        following:
          [``(1) There are authorized to be appropriated for 
        purposes of carrying out this section such sums as may 
        be necessary for the fiscal year 1991, $60,000,000 for 
        the fiscal year 1992, and such sums as may be necessary 
        for each of the fiscal years 1993, 1994, and 1995.''.

                   [TITLE III--INVESTMENT IN LITERACY

[SEC. 301. AMENDMENTS TO THE ADULT EDUCATION ACT.

  [(a) Authorization of Appropriations.--Section 313 of the 
Adult Education Act (20 U.S.C. 1201b) is amended in subsection 
(a) by striking ``$200,000,000'' and all that follows through 
``1993'' and inserting the following: ``such sums as may be 
necessary for the fiscal year 1991, $260,000,000 for the fiscal 
year 1992, and such sums as may be necessary for each of the 
fiscal years 1993, 1994, and 1995''.
  [(b) Use of Funds.--Subsection (a) of section 322 of the 
Adult Education Act (20 U.S.C. 1203b(a)) is amended--
          [(1) by amending paragraph (1) to read as follows:
          [``(1) Grants to States under this subpart shall be 
        used in accordance with State plans (and amendments 
        thereto) approved under sections 341 and 351, to pay 
        the Federal share of the cost of the establishment or 
        expansion of adult education programs to be carried out 
        by local educational agencies, correctional education 
        agencies, community-based organizations, public or 
        private nonprofit agencies, postsecondary educational 
        institutions, and other institutions that have the 
        ability to provide literacy services to adults and 
        families. Each State educational agency receiving 
        financial assistance under this subpart shall provide 
        assurance that local educational agencies, public or 
        private nonprofit agencies, community-based 
        organizations, correctional education agencies, 
        postsecondary educational institutions, and 
        institutions which serve educationally disadvantaged 
        adults will be provided direct and equitable access to 
        all Federal funds provided under this subpart. Failure 
        to provide the assurance required by the preceding 
        sentence shall disqualify a State from receiving its 
        allotment under this title. In determining which 
        programs shall receive assistance under this paragraph, 
        the State shall consider--
                  [``(A) the past effectiveness of applicants 
                in providing services (especially with respect 
                to recruitment and retention of educationally 
                disadvantaged adults and the learning gains 
                demonstrated by such adults);
                  [``(B) the degree to which the applicant will 
                coordinate and utilize other literacy and 
                social services available in the community; and
                  [``(C) the commitment of the applicant to 
                serve individuals in the community that are 
                most in need of literacy services.'';
          [(2) in paragraph (3)--
                  [(A) by striking the first sentence;
                  [(B) by inserting after ``sources;'' the 
                following: ``the projected goals of the 
                applicant with respect to participant 
                recruitment, retention, and educational 
                achievement and how the applicant will measure 
                and report progress in meeting its goals;'';
                  [(C) by striking ``the Carl D. Perkins 
                Vocational Education Act'' and inserting ``the 
                Carl D. Perkins Vocational and Applied 
                Technology Education Act''; and
                  [(D) by striking ``the Education of the 
                Handicapped Act'' and inserting ``the 
                Individuals with Disabilities Education Act'';
          [(3) in paragraph (4)--
                  [(A) by striking ``(A)'';
                  [(B) by inserting after ``adults'' the 
                following: ``, particularly in areas with a 
                high proportion of adults who do not have a 
                certificate of graduation from a school 
                providing secondary education or its 
                equivalent''; and
                  [(C) by striking subparagraph (B);
          [(4) by redesignating paragraphs (3) and (4) (as 
        amended by paragraphs (2) and (3) of this subsection) 
        as paragraphs (4) and (5), respectively; and
          [(5) by inserting after paragraph (2) the following:
          [``(3)(A) Grants to States provided under this 
        section shall also be used for competitive 2-year 
        grants to public housing authorities for literacy 
        programs and related activities. Any public housing 
        authority that receives a grant under this subparagraph 
        shall consult with local adult education providers in 
        conducting programs and activities with assistance 
        provided under the grant. Any grant provided under this 
        subparagraph shall be referred to as a `Gateway Grant'.
          [``(B) The Secretary shall, not less often than every 
        2 years, evaluate any grants made under this paragraph 
        and report the results of such evaluation to the 
        Committee on Education and Labor of the House of 
        Representatives and the Committee on Labor and Human 
        Resources of the Senate.''.
  [(c) State Administration.--Section 331(a) of the Adult 
Education Act (20 U.S.C. 1205(a)) is amended--
          [(1) by redesignating paragraphs (2) and (3) as 
        paragraphs (3) and (4), respectively; and
          [(2) by inserting after paragraph (1) the following:
          [``(2) within 2 years of the enactment of the 
        National Literacy Act of 1991, the development and 
        implementation, in consultation with a widely 
        representative group of appropriate experts, educators, 
        and administrators, of indicators of program quality to 
        be used to evaluate programs assisted under this title, 
        as required by section 352, to determine whether such 
        programs are effective, including whether such programs 
        are successfully recruiting, retaining, and improving 
        the literacy skills of the individuals served in such 
        programs;''.
  [(d) State Advisory Council.--(1) The heading for section 332 
of the Adult Education Act is amended to read as follows:

[``SEC. 332. STATE ADVISORY COUNCIL ON ADULT EDUCATION AND LITERACY.''.

  [(2) Section 332 of the Adult Education Act (20 U.S.C. 1205a) 
is amended--
          [(A) in the first sentence of subsection (a)(1), by 
        striking ``adult education, appointed by the Governor'' 
        and inserting ``adult education and literacy, appointed 
        by, and responsible to, the Governor'';
          [(B) in the second sentence of subsection (a)(1)--
                  [(i) by inserting ``and literacy'' after 
                ``adult education''; and
                  [(ii) by striking ``consist'' and all that 
                follows through the period at the end and 
                inserting the following: ``consist of--
                  [``(i) representatives of public education;
                  [``(ii) representatives of public and private 
                sector employment;
                  [``(iii) representatives of recognized State 
                labor organizations;
                  [``(iv) representatives of private literacy 
                organizations, voluntary literacy 
                organizations, and community-based literacy 
                organizations;
                  [``(v) the chief administrative officer of a 
                State, or the designee of such officer;
                  [``(vi) representatives of--
                          [``(I) the State educational agency;
                          [``(II) the State job training 
                        agency;
                          [``(III) the State human services 
                        agency;
                          [``(IV) the State public assistance 
                        agency;
                          [``(V) the State library program; and
                          [``(VI) the State economic 
                        development agency;
                  [``(vii) officers of the State government 
                whose agencies provide funding for literacy 
                services or who may be designated by the 
                Governor or the Chairperson of the council to 
                serve whenever matters within the jurisdiction 
                of the agency headed by such an officer are to 
                be considered by the council; and
                  [``(viii) classroom teachers who have 
                demonstrated outstanding results in teaching 
                children or adults to read.'';
          [(C) by amending subsection (d) to read as follows:
  [``(d) Procedures.--(1) Subject to paragraphs (2) and (3), 
the State advisory council shall determine its own procedures, 
staffing needs (subject to funding levels authorized by the 
chief executive officer of the State), and the number, time, 
place, and conduct of meetings.
  [``(2) The State advisory council shall meet at least 4 times 
each year. At least 1 such meeting shall provide an opportunity 
for the general public to express views concerning adult 
education in the State.
  [``(3) One member more than one-half of the members on the 
council shall constitute a quorum for the purpose of 
transmitting recommendations and proposals to the chief 
executive officer of the State, but a lesser number of members 
may constitute a quorum for other purposes.'';
          [(D) in subsection (f)--
                  [(i) by amending paragraph (1) to read as 
                follows:
          [``(1) meet with the State agencies responsible for 
        literacy training during the planning year to advise on 
        the development of a State plan for literacy and for 
        adult education that fulfills the literacy and adult 
        education needs of the State, especially with respect 
        to the needs of the labor market, economic development 
        goals, and the needs of the individuals in the 
        State;'';
                  [(ii) by amending paragraph (2) to read as 
                follows:
          [``(2) advise the Governor, the State educational 
        agency, and other State agencies concerning--
                  [``(A) the development and implementation of 
                measurable State literacy and adult education 
                goals consistent with section 342(c)(2), 
                especially with respect to--
                          [``(i) improving levels of literacy 
                        in the State by ensuring that all 
                        appropriate State agencies have 
                        specific objectives and strategies for 
                        such goals in a comprehensive approach;
                          [``(ii) improving literacy programs 
                        in the State; and
                          [``(iii) fulfilling the long-term 
                        literacy goals of the State;
                  [``(B) the coordination and monitoring of 
                State literacy training programs in order to 
                progress toward the long-term literacy goals of 
                the State;
                  [``(C) the improvement of the quality of 
                literacy programs in the State by supporting 
                the integration of services, staff training, 
                and technology-based learning and the 
                integration of resources of literacy programs 
                conducted by various agencies of State 
                government; and
                  [``(D) private sector initiatives that would 
                improve adult education programs and literacy 
                programs, especially through public-private 
                partnerships;'';
                  [(iii) by redesignating paragraph (3) as 
                paragraph (7); and
                  [(iv) by inserting after paragraph (2) the 
                following:
          [``(3) review and comment on the plan submitted 
        pursuant to section 356(h) and submit such comments to 
        the Secretary;
          [``(4) measure progress on meeting the goals and 
        objectives established pursuant to paragraph (2)(A);
          [``(5) recommend model systems for implementing and 
        coordinating State literacy programs for replication at 
        the local level;
          [``(6) develop reporting requirements, standards for 
        outcomes, performance measures, and program 
        effectiveness in State programs, that are consistent 
        with those proposed by the Interagency Task Force on 
        Literacy; and''.
  [(e) State Plan.--Subsection (c) of section 342 of the Adult 
Education Act (20 U.S.C. 1206a) is amended--
          [(1) by amending paragraph (1) to read as follows:
          [``(1) describe and provide for the fulfillment of 
        the literacy needs of individuals in the State;'';
          [(2) by striking paragraph (9);
          [(3) by redesignating paragraphs (2) through (8) as 
        paragraphs (3) through (9), respectively;
          [(4) by inserting after paragraph (1) the following:
          [``(2) set forth measurable goals for improving 
        literacy levels, retention in literacy programs, and 
        long-term learning gains of individuals in the State 
        and describe a comprehensive approach for achieving 
        such goals, including the development of indicators of 
        program quality as required by section 331(a)(2);'';
          [(5) in paragraph (4) (as redesignated by paragraph 
        (3) of this section)--
                  [(A) by striking ``the use of'' and inserting 
                ``coordination by'';
                  [(B) by striking ``other than'' and inserting 
                ``including''; and
                  [(C) by striking ``such as'' the second place 
                such term appears;
          [(6) by striking ``and'' at the end of paragraph 
        (12);
          [(7) by striking the period at the end of paragraph 
        (13) and inserting a semicolon; and
          [(8) by adding at the end the following:
          [``(14) report the amount of administrative funds 
        spent on program improvements; and
          [``(15) contain assurances that financial assistance 
        provided pursuant to this title shall be used to assist 
        and expand existing programs and to develop new 
        programs for adults whose lack of basic skills--
                  [``(A) renders them unemployable;
                  [``(B) keeps them, whether employed or 
                unemployed, from functioning independently in 
                society; and
                  [``(C) severely reduces their ability to have 
                a positive effect on the literacy of their 
                children.''.
  [(f) Evaluation.--Section 352 of the Adult Education Act (20 
U.S.C. 1207a) is amended--
          [(1) in paragraph 1--
                  [(A) by striking ``data to the Secretary'' 
                and inserting the following: ``to the Secretary 
                and make public within the State data'';
                  [(B) by inserting before the semicolon the 
                following: ``, including--
                  [``(A) the number and percentage of local 
                educational agencies, community-based 
                organizations, volunteer groups, and other 
                organizations that are grant recipients; and
                  [``(B) results of the evaluations carried out 
                as required by paragraph (2) in the year 
                preceding the year for which the data is 
                submitted'';
          [(2) in paragraph (2)--
                  [(A) by striking ``before the end'' and all 
                that follows through ``shall consider'' and 
                inserting the following: ``evaluate 20 percent 
                of the grant recipients each year so that at 
                the end of such period 80 percent of all grant 
                recipients shall have been evaluated once and 
                such evaluations shall consider, at a 
                minimum'';
                  [(B) by redesignating subparagraphs (A) 
                through (D) as subparagraphs (B) through (E), 
                respectively;
                  [(C) by inserting before subparagraph (B) (as 
                redesignated by subparagraph (B) of this 
                paragraph) the following:
                  [``(A) the projected goals of the grant 
                recipient as described in its application 
                pursuant to section 322(a)(3);'';
                  [(D) by amending subparagraph (D) (as 
                redesignated by subparagraph (B) of this 
                paragraph) to read as follows:
                  [``(D) the success of the grant recipient in 
                meeting the State's indicators of program 
                quality after such indicators are developed as 
                required by section 331(a)(2); and''; and
                  [(E) by striking ``and'' at the end.
  [(g) Teacher Training.--(1) Subsection (a) of section 353 of 
the Adult Education Act (20 U.S.C. 1208(a)) is amended--
          [(A) by striking ``and'' at the end of paragraph (1);
          [(B) by striking the period at the end of paragraph 
        (2) and inserting ``; and''; and
          [(C) by adding at the end the following:
          [``(3) training professional teachers, volunteers, 
        and administrators, with particular emphasis on--
                  [``(A) training--
                          [``(i) full-time professional adult 
                        educators;
                          [``(ii) minority adult educators;
                          [``(iii) educators of adults with 
                        limited English proficiency; and
                  [``(B) training teachers to recognize and 
                more effectively serve illiterate individuals 
                with learning disabilities and individuals who 
                have a reading ability below the fifth grade 
                level.''.
  [(2) Section 353 of the Adult Education Act (as amended by 
paragraph (1) of this subsection) (20 U.S.C. 1208) is amended--
          [(A) in subsection (a), by striking ``10'' and 
        inserting ``15''; and
          [(B) by amending subsection (b) to read as follows:
  [``(b) Special Rule.--At least \2/3\ of the 15 percent 
reserved pursuant to subsection (a) shall be used to carry out 
the provisions of paragraphs (2) and (3) of subsection (a).''.
  [(h) Federal Responsibility.--Section 361 of the Adult 
Education Act (20 U.S.C. 1209) is amended by adding at the end 
the following:
  [``(c) Federal Responsibility.--Within 1 year after the 
enactment of the National Literacy Act of 1991, the Secretary, 
in consultation with appropriate experts, educators, and 
administrators, shall develop indicators of program quality 
that may be used by State and local programs receiving 
assistance under this title as models by which to judge the 
success of such programs, including success in recruitment and 
retention of students and improvement in the literacy skills of 
students. Such indicators shall take into account different 
conditions under which programs operate and shall be modified 
as better means of assessing program quality are developed.''.

[SEC. 302. TARGETED ASSISTANCE.

  [Section 1531(b) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 2941) is amended by--
          [(1) redesignating paragraphs (5) and (6) as 
        paragraphs (6) and (7), respectively; and
          [(2) inserting the following new paragraph (5) after 
        paragraph (4):
          [``(5) programs of training to enhance the ability of 
        teachers and school counselors to identify, 
        particularly in the early grades, students with reading 
        and reading-related problems that place such students 
        at risk for illiteracy in their adult years;''.

[SEC. 303. AMENDMENTS TO THE EVEN START PROGRAM.

  [(a) Amendment to Part Heading.--The heading for part B of 
chapter 1 of title I of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 2741 et seq.) is amended to read as 
follows:

           [``PART B--EVEN START FAMILY LITERACY PROGRAMS''.

  [(b) State Grant Program.--Section 1052 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 2742) is amended--
          [(1) in subsection (a), by striking ``local 
        educational agencies or consortia of such agencies'' 
        and inserting ``eligible entities'';
          [(2) in subsection (b)--
                  [(A) by inserting ``(1)'' before ``In''; and
                  [(B) by adding at the end the following:
  [``(2) In any fiscal year in which this subsection applies, 
no State shall award a grant under this part for an amount less 
than $75,000.
  [``(3) In any year in which this subsection applies, each 
State that receives a grant under this part may use not more 
than 5 percent of assistance provided under the grant for costs 
of--
          [``(A) administration; and
          [``(B) the provision, through grant or contract, of 
        technical assistance for program improvement and 
        replication to eligible entities that receive grants 
        under this part.'';
          [(3) by redesignating subsection (c) as subsection 
        (d);
          [(4) by inserting after subsection (b) the following 
        new subsection:
  [``(c) Reservation.--From amounts appropriated for purposes 
of carrying out this part, the Secretary may reserve an amount 
equal to not more than 2 percent of such amounts or the amount 
reserved for such purposes in the fiscal year 1991, whichever 
is greater, for purposes of--
          [``(1) carrying out the evaluation required by 
        section 1058; and
          [``(2) providing, through grant or contract, 
        technical assistance for program improvement and 
        replication to eligible entities that receive grants 
        under this part.''; and
          [(5) by amending subsection (d) (as redesignated by 
        paragraph (3)) to read as follows:
  [``(d) Definitions.--For the purpose of this part:
          [``(1) The term `eligible entity' means--
                  [``(A) a local educational agency applying in 
                collaboration with a community-based 
                organization, public agency, institution of 
                higher education, or other nonprofit 
                organization; or
                  [``(B) a community-based organization, or 
                other nonprofit organization of demonstrated 
                quality applying in collaboration with a local 
                educational agency.
          [``(2) The terms `Indian tribe' and `tribal 
        organization' have the respective meanings given such 
        terms in section 4 of the Indian Self-Determination and 
        Education Assistance Act.
          [``(3) The term `State' includes each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.''.
  [(c) Allocation.--Subsection (a) of section 1053 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2743) 
is amended to read as follows:
  [``(a) Reservation for Migrant Programs and Territories.--(1) 
In each fiscal year in which section 1052(a) applies, the 
Secretary shall first reserve for programs consistent with the 
purpose of this part--
          [``(A) for programs for migrant children, which shall 
        be conducted through the Office of Migrant Education, 
        an amount equal to 3 percent of the amount appropriated 
        for purposes of carrying out this part; and
          [``(B) for allocations to Guam, American Samoa, the 
        Virgin Islands, the Commonwealth of the Northern 
        Mariana Islands, and Palau (until the Compact of Free 
        Association with Palau takes effect pursuant to section 
        101(a) of Public Law 99-658), and to Indian tribes and 
        tribal organizations, an amount comparable to their 
        relative need.
  [``(2) In each fiscal year in which section 1052(b) applies, 
the Secretary shall first reserve for programs consistent with 
the purpose of this part, an amount equal to 5 percent of the 
amount appropriated for purposes of carrying out this part, of 
which--
          [``(A) amounts shall be allocated for programs for 
        migrant children, Guam, American Samoa, the Virgin 
        Islands, the Commonwealth of the Northern Mariana 
        Islands, and Palau (until the Compact of Free 
        Association with Palau takes effect pursuant to section 
        101(a) of Public Law 99-658), and Indian tribes and 
        tribal organizations, according to their relative need; 
        but
          [``(B) in no case shall the amount reserved for 
        programs for migrant children be less than the amount 
        reserved for such programs in the preceding fiscal 
        year.''.
  [(d) Federal Share Limitation.--Section 1054 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2744) 
is amended--
          [(1) in subsection (a), by striking ``local 
        educational agencies'' and all that follows through 
        ``nonprofit organizations,'' and inserting ``an 
        eligible entity'';
          [(2) in paragraph (2) of subsection (b), by inserting 
        after ``counseling,'' the following: ``other 
        developmental and support services,''; and
          [(3) in subsection (c)--
                  [(A) by redesignating paragraphs (1) through 
                (4) as subparagraphs (A) through (D), 
                respectively;
                  [(B) by inserting ``(1)'' before ``The 
                Federal share'';
                  [(C) in subparagraph (A) (as redesignated by 
                subparagraph (A) of this paragraph), by 
                striking ``local educational agency'' and 
                inserting ``eligible entity'';
                  [(D) by striking the last sentence and 
                inserting the following: ``The remaining cost 
                may be provided in cash or in kind, fairly 
                evaluated, and may be obtained from any source 
                other than funds made available for programs 
                under this chapter.''; and
                  [(E) by adding at the end the following:
  [``(2) The Secretary (in any fiscal year in which section 
1052(a) applies) or the State educational agency (in any fiscal 
year in which section 1052(b) applies) may waive, in whole or 
in part, the requirement that all or part of the remaining cost 
described in paragraph (1) be obtained from sources other than 
funds made available under this chapter if an eligible entity--
          [``(A) demonstrates that it otherwise would not be 
        able to participate in the program under this part; and
          [``(B) negotiates an agreement with the Secretary or 
        the State educational agency, as appropriate, with 
        respect to the amount of the remaining cost to which 
        the waiver would be applicable.''.
  [(e) Eligible Participants.--Section 1055 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 2745) is 
amended--
          [(1) by striking ``Eligible'' and inserting the 
        following: ``(a) In General.--Except as provided in 
        subsection (b), eligible'';
          [(2) in paragraph (2) of subsection (a) (as 
        designated by paragraph (1)), by striking ``(aged 1 to 
        7,'' and inserting ``(from birth to age 7,''; and
          [(3) by adding at the end the following:
  [``(b) Continuation of Eligibility for Certain 
Participants.--Any family participating in the program under 
this part that becomes ineligible for such participation as a 
result of 1 or more members of the family becoming ineligible 
for such participation, may continue to participate in the 
program until all members of the family become ineligible for 
participation, which--
          [``(1) in the case of a family in which ineligibility 
        was due to the child or children of such family 
        attaining the age of 8, shall be when the parent or 
        parents become ineligible due to educational 
        advancement; and
          [``(2) in the case of a family in which ineligibility 
        was due to the educational advancement of the parent or 
        parents of such family, shall be when all children in 
        the family attain the age of 8.''.
  [(f) Applications.--Section 1056 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 2746) is amended--
          [(1) in subsection (a), by striking ``a local 
        educational agency'' and inserting ``an eligible 
        entity''; and
          [(2) in subsection (b), by striking ``the local 
        educational agency'' and inserting ``the eligible 
        entity''.
  [(g) Selection Process.--Section 1057 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 2747) is amended--
          [(1) in subsection (a)--
                  [(A) by redesignating paragraphs (1) through 
                (7) as subparagraphs (A) through (G), 
                respectively;
                  [(B) by inserting ``(1)'' before ``The'';
                  [(C) in paragraph (1) (as designated by 
                subparagraph (B) of this paragraph)--
                          [(i) by amending subparagraph (B) (as 
                        redesignated by subparagraph (A) of 
                        this paragraph) to read as follows:
          [``(B) demonstrate that the area to be served by such 
        program has a high percentage or a large number of 
        children and adults who are in need of such services as 
        indicated by high levels of poverty, illiteracy, 
        unemployment, limited English proficiency, or other 
        need-related indicators;'';
                          [(ii) in subparagraph (E) (as 
                        redesignated by subparagraph (A) of 
                        this paragraph), by striking ``the 
                        local educational agency's'' and 
                        inserting ``the eligible entity's''; 
                        and
                          [(iii) by adding at the end the 
                        following:
  [``(2) The review panel shall give priority for grants under 
this subsection to proposals which--
          [``(A) make the demonstration described in paragraph 
        (1)(B); and
          [``(B) demonstrate an ability to operate an effective 
        program.'';
          [(2) by amending subsection (c) to read as follows:
  [``(c) Distribution of Assistance.--(1) In approving grants 
under this part pursuant to section 1052(a), the Secretary 
shall ensure a representative distribution of assistance among 
the States and among urban and rural areas of the United 
States.
  [``(2) In approving grants under this part pursuant to 
section 1052(b), the review panel shall ensure a representative 
distribution of assistance between urban and rural areas of the 
State.''; and
          [(3) in paragraph (1) of subsection (d)--
                  [(A) by striking ``a local educational 
                agency'' and inserting ``an eligible entity''; 
                and
                  [(B) by striking ``such local educational 
                agency'' and inserting ``such eligible 
                entity''.
  [(h) Authorization of Appropriations.--Section 1059 of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2749) 
is amended to read as follows:

[``SEC. 1059. AUTHORIZATION OF APPROPRIATIONS.

  [``There are authorized to be appropriated for purposes of 
carrying out this part such sums as may be necessary for the 
fiscal year 1991, $100,000,000 for the fiscal year 1992, and 
such sums as may be necessary for the fiscal year 1993.''.

[SEC. 304. FAMILY LITERACY PUBLIC BROADCASTING PROGRAM.

  [(a) Program Authorized.--(1) The Secretary is authorized, 
subject to the availability of appropriations, to enter into a 
contract with the Corporation for Public Broadcasting to 
arrange for the production and dissemination of family literacy 
programming and accompanying materials which would assist 
parents in improving family literacy skills and language 
development. In producing and developing such programming, the 
Corporation for Public Broadcasting shall work in cooperation 
with local public broadcasting stations to avoid duplication of 
efforts.
  [(2) After the program described in paragraph (1) is 
produced, the Corporation for Public Broadcasting shall arrange 
to have audio and video instructional media materials for 
distribution at sites chosen from among--
          [(A) State and local libraries operating literacy 
        programs, and
          [(B) nonprofit entities serving hard-to-serve 
        populations as defined in section 304(b)(2), including 
        community-based organizations, volunteer organizations 
        and other nongovernmental entities.
  [(3) The audio and video instructional media materials 
described in paragraph (2) shall be used at sites described in 
paragraph (2), and on a loan basis, distributed to families.
  [(4) One year after distribution of the audio and video 
instructional media materials, the Corporation for Public 
Broadcasting shall report to the Congress on the distribution 
and use of the audio and video instructional media materials 
produced pursuant to this subsection and such audio and video 
instructional media materials' contribution in promoting 
literacy.
  [(b) Authorization of Appropriations.--There are authorized 
to be appropriated $2,000,000 for fiscal year 1992 to carry out 
the provisions of subsection (i), of which $100,000 shall be 
reserved for reproducing and distributing programming or audio 
and video instructional media materials.
          [TITLE IV--BUSINESS LEADERSHIP FOR EMPLOYMENT SKILLS

[SEC. 401. EDUCATION PROGRAMS FOR COMMERCIAL DRIVERS.

  [(a) In General.--Part C of the Adult Education Act (20 
U.S.C. 1211 et seq.) is amended by adding at the end the 
following:

[``SEC. 373. EDUCATION PROGRAMS FOR COMMERCIAL DRIVERS.

  [``(a) Program Authorized.--The Secretary is authorized to 
make grants on a competitive basis to pay the Federal share of 
the costs of establishing and operating adult education 
programs which increase the literacy skills of eligible 
commercial drivers so that such drivers may successfully 
complete the knowledge test requirements under the Commercial 
Motor Vehicle Safety Act of 1986.
  [``(b) Federal Share.--The Federal share of the costs of the 
adult education programs authorized under subsection (a) shall 
be 50 percent. Nothing in this subsection shall be construed to 
require States to meet the non-Federal share from State funds.
  [``(c) Eligible Entities.--Entities eligible to receive a 
grant under this section include--
          [``(1) private employers employing commercial drivers 
        in partnership with agencies, colleges, or universities 
        described in paragraph (2);
          [``(2) local educational agencies, State educational 
        agencies, colleges, universities, or community 
        colleges;
          [``(3) approved apprentice training programs; and
          [``(4) labor organizations, the memberships of which 
        include commercial drivers.
  [``(d) Referral Program.--Grantees shall refer to appropriate 
adult education programs as authorized under this title 
individuals who are identified as having literacy skill 
problems other than or beyond those which prevent them from 
successfully completing the knowledge test requirements under 
the Commercial Motor Vehicle Safety Act of 1986.
  [``(e) Definitions.--For purposes of this section:
          [``(1) The term `approved apprentice training 
        programs' has the meaning given such term in the 
        National Apprenticeship Act of 1937.
          [``(2) The term `eligible commercial driver' means a 
        driver licensed prior to the requirements of the 
        Commercial Motor Vehicle Safety Act of 1986.
  [``(f) Authorization of Appropriations.--There are authorized 
to be appropriated for purposes of carrying out this section 
$3,000,000 for each of the fiscal years 1991, 1992, and 
1993.''.
  [(b) Avoidance of Duplicate Enactment.--The amendment made by 
subsection (a) shall not take effect if the Higher Education 
Amendments of 1991 are enacted before the enactment of this 
Act.

                      [TITLE V--BOOKS FOR FAMILIES

[SEC. 501. INEXPENSIVE BOOK DISTRIBUTION PROGRAM.

  [(a) Priority.--Section 1563(b) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 2963) is amended 
by--
          [(1) striking ``and'' at the end of paragraph (2);
          [(2) by redesignating paragraph (3) as paragraph (4); 
        and
          [(3) by inserting after paragraph (2) the following:
          [``(3) in the fiscal year 1991 and each succeeding 
        fiscal year, the contractor will give priority in the 
        selection of additional local programs to programs and 
        projects which serve children and students with special 
        needs including, at a minimum--
                  [``(A) low-income children (particularly such 
                children in high poverty areas);
                  [``(B) children at risk for school failure;
                  [``(C) children with disabilities;
                  [``(D) emotionally disturbed children;
                  [``(E) foster children;
                  [``(F) homeless children;
                  [``(G) migrant children;
                  [``(H) children without access to libraries;
                  [``(I) institutionalized or incarcerated 
                children; and
                  [``(J) children whose parents are 
                institutionalized or incarcerated; and''.
  [(b) Study.--The contractor shall report to the Secretary of 
Education annually regarding the number and description of the 
additional programs funded under subsection 1563(a)(3) of the 
Elementary and Secondary Education Act of 1965.

[SEC. 502. LIBRARY LITERACY PROGRAMS.

  [Section 601 of the Library Services and Construction Act (20 
U.S.C. 375) is amended by inserting at the end thereof the 
following new subsection:
  [``(f) In awarding grants under this section the Secretary 
shall give priority to programs and services which--
          [``(1) will be delivered in areas of greatest need 
        which have highest concentrations of adults who do not 
        have a secondary education or its equivalent, and 
        which--
                  [``(A) have few community or financial 
                resources to establish the program described 
                under this section without Federal assistance, 
                or
                  [``(B) have low per capita income, 
                unemployment or underemployment; and
          [``(2) coordinate with literacy organizations and 
        community based organizations providing literacy 
        services.''.

            [TITLE VI--LITERACY FOR INCARCERATED INDIVIDUALS

[SEC. 601. FUNCTIONAL LITERACY AND LIFE SKILLS PROGRAMS FOR STATE AND 
                    LOCAL PRISONERS.

  [(a) Establishment.--The Secretary is authorized to make 
grants to eligible entities to assist such entities in 
establishing, improving, and expanding a demonstration or 
system-wide functional literacy program.
  [(b) Program Requirements.--(1) To qualify for funding under 
subsection (d), each functional literacy program shall--
          [(A) to the extent possible, make use of advanced 
        technologies, such as interactive video- and computer-
        based adult literacy learning; and
          [(B) include--
                  [(i) a requirement that each person 
                incarcerated in the system, prison, jail, or 
                detention center who is not functionally 
                literate, except a person described in 
                paragraph (2), shall participate in the program 
                until the person--
                          [(I) achieves functional literacy, or 
                        in the case of an individual with a 
                        disability, achieves a level of 
                        functional literacy commensurate with 
                        his or her ability;
                          [(II) is granted parole;
                          [(III) completes his or her sentence; 
                        or
                          [(IV) is released pursuant to court 
                        order; and
                  [(ii) a prohibition on granting parole to any 
                person described in clause (i) who refuses to 
                participate in the program, unless the State 
                parole board determines that the prohibition 
                should be waived in a particular case; and
                  [(iii) adequate opportunities for appropriate 
                education services and the screening and 
                testing of all inmates for functional literacy 
                and disabilities affecting functional literacy, 
                including learning disabilities, upon arrival 
                in the system or at the prison, jail, or 
                detention center.
  [(2) The requirement of paragraph (1)(B)(i) may not apply to 
a person who--
          [(A) is serving a life sentence without possibility 
        of parole;
          [(B) is terminally ill; or
          [(C) is under a sentence of death.
  [(c) Annual Report.--(1) Within 90 days after the close of 
the first calendar year in which a literacy program authorized 
by subsection (a) is placed in operation, and annually for each 
of the 4 years thereafter, a grantee shall submit a report to 
the Secretary with respect to its literacy program.
  [(2) A report under paragraph (1) shall disclose--
          [(A) the number of persons who were tested for 
        eligibility during the preceding year;
          [(B) the number of persons who were eligible for the 
        literacy program during the preceding year;
          [(C) the number of persons who participated in the 
        literacy program during the preceding year;
          [(D) the names and types of tests that were used to 
        determine functional literacy and the names and types 
        of tests that were used to determine disabilities 
        affecting functional literacy;
          [(E) the average number of hours of instruction that 
        were provided per week and the average number per 
        student during the preceding year;
          [(F) sample data on achievement of participants in 
        the program, including the number of participants who 
        achieved functional literacy;
          [(G) data on all direct and indirect costs of the 
        program; and
          [(H) information on progress toward meeting the 
        program's goals.
  [(d) Compliance Grants.--(1) The Secretary shall make grants 
to eligible entities that elect to establish a program 
described in subsection (a) for the purpose of assisting in 
carrying out the programs, developing the plans, and submitting 
the reports required by this section.
  [(2) An eligible entity may receive a grant under this 
subsection if the entity--
          [(A) submits an application to the Secretary at such 
        time, in such manner, and containing such information 
        as the Secretary may require;
          [(B) agrees to provide the Secretary--
                  [(i) such data as the Secretary may request 
                concerning the cost and feasibility of 
                operating the functional literacy programs 
                authorized by subsection (a), including the 
                annual reports required by subsection (c); and
                  [(ii) a detailed plan outlining the methods 
                by which the provisions of subsections (a) and 
                (b) will be met, including specific goals and 
                timetables.
  [(e) Life Skills Training Grants.--(1) The Secretary is 
authorized to make grants to eligible entities to assist them 
in establishing and operating programs designed to reduce 
recidivism through the development and improvement of life 
skills necessary for reintegration into society.
  [(2) To receive a grant under this subsection, an eligible 
entity shall--
          [(A) submit an application to the Secretary at such 
        time, in such manner, and containing such information 
        as the Secretary shall require; and
          [(B) agree to report annually to the Secretary on the 
        participation rate, cost, and effectiveness of the 
        program and any other aspect of the program on which 
        the Secretary may request information.
  [(3) In awarding grants under this subsection, the Secretary 
shall give priority to programs that have the greatest 
potential for innovation, effectiveness, and replication in 
other systems, jails, and detention centers.
  [(4) Grants awarded under this subsection shall be for a 
period not to exceed 3 years, except that the Secretary may 
establish a procedure for renewal of the grants under paragraph 
(1).
  [(f) Definitions.--For the purposes of this section--
          [(1) the term ``eligible entity'' means a State 
        correctional agency, a local correctional agency, a 
        State correctional education agency, and a local 
        correctional education agency;
          [(2) the term ``functional literacy'' means at least 
        an eighth grade equivalence or a functional criterion 
        score on a nationally recognized literacy assessment; 
        and
          [(3) the term ``life skills'' includes self-
        development, communication skills, job and financial 
        skills development, education, interpersonal and family 
        relationship development, and stress and anger 
        management.
  [(g) Panel.--The Secretary is authorized to consult with and 
convene a panel of experts in correctional education, including 
program administrators and field-based professionals in adult 
corrections, juvenile services, jails, and community 
corrections programs, to--
          [(1) develop measures for evaluating the 
        effectiveness of the programs funded under this 
        section; and
          [(2) evaluate the effectiveness of such programs.
  [(h) Use of Funds.--Notwithstanding any other provision of 
law, the Secretary may use not more than five percent of funds 
appropriated under subsection (i) in any fiscal year to carry 
out grant-related activities such as monitoring, technical 
assistance, and replication and dissemination.
  [(i) Authorization of Appropriations.--There are authorized 
to be appropriated for purposes of carrying out this section 
$10,000,000 for fiscal year 1992, $15,000,000 for fiscal year 
1993, $20,000,000 for fiscal year 1994, and $25,000,000 for 
fiscal year 1995.

[SEC. 602. BLUE RIBBON AWARDS FOR CORRECTIONAL EDUCATION PROGRAMS.

  [(a) In General.--Section 1566 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 2966) is amended--
          [(1) in subsection (a), by striking ``The'' and 
        inserting ``Subject to subsection (d), the''; and
          [(2) by adding at the end the following:
  [``(d) Blue Ribbon Awards for Correctional Education 
Programs.--The Secretary, through nominations provided by the 
Office on Correctional Education after consultation with 
representatives of correctional education organizations and 
others active in literacy education, shall annually make 1 or 
more awards under this section to effective and innovative 
programs for inmate education and literacy.''.
  [(b) Effective Date.--The amendment made by subsection (a) 
shall take effect on October 1, 1992.
                  [TITLE VII--VOLUNTEERS FOR LITERACY

[SEC. 701. LITERACY CHALLENGE GRANTS.

  [(a) General Authority.--
          [(1) Program authorized.--Part C of title I of the 
        Domestic Volunteer Service Act of 1973 (42 U.S.C. 4991 
        et seq.) is amended by adding at the end the following:

                      [``literacy challenge grants

  [``Sec. 125. (a) The Director is authorized to award 
challenge grants to eligible public agencies and private 
organizations to pay the Federal share of the costs of 
establishing, operating or expanding community or employee 
literacy programs or projects that include the use of full-time 
or part-time volunteers as one method of addressing illiteracy.
  [``(b) Each eligible organization desiring a grant under this 
section shall submit to the ACTION Agency an application in 
such form and accompanied by such information as the Director 
may reasonably require. Each such application shall--
          [``(1) describe the activities for which assistance 
        is sought,
          [``(2) contain assurances that the eligible 
        organization will provide from non-Federal sources the 
        non-Federal share of the cost of the program or 
        project,
          [``(3) provide assurances, satisfactory to the 
        Director, that the literacy project will be operated in 
        cooperation with other public and private agencies and 
        organizations interested in, and qualified to, combat 
        illiteracy in the community where the project is to be 
        conducted, and
          [``(4) contain such other information and assurances 
        as the Director may reasonably require.
  [``(c)(1)(A) The Federal share of the cost of a program or 
project authorized by this section administered by a public 
agency, a nonprofit organization other than an organization 
described in paragraph (2), or a private, for-profit 
organization shall not exceed--
          [``(i) 80 percent in the first fiscal year;
          [``(ii) 70 percent in the second fiscal year; and
          [``(iii) 60 percent in the third fiscal year.
  [``(B) The non-Federal share paid by a private, for-profit 
organization shall be in cash.
  [``(2) The Federal share of the cost of a program or project 
administered by a nonprofit or community-based organization 
shall not exceed--
          [``(A) 90 percent in the first fiscal year;
          [``(B) 80 percent in the second fiscal year; and
          [``(C) 70 percent in the third fiscal year.
  [``(3) The non-Federal share provided by a public agency or a 
nonprofit or community-based organization may be provided in 
cash, or in kind, fairly evaluated, and may include the use of 
plant, equipment, and services.''.
          [(2) Conforming amendment.--The table of contents 
        contained in the first section of the Domestic 
        Volunteer Service Act of 1973 (42 U.S.C. 4951 note) is 
        amended by inserting after the item relating to section 
        124 the following new item.

[``Sec. 125. Literacy challenge grants.''.

  [(b) Authorization of Appropriations.--Section 501(c) of the 
Domestic Volunteer Service Act of 1973 (42 U.S.C. 5081(c)) is 
amended--
          [(1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
          [(2) by inserting ``(1)'' after the subsection 
        designation; and
          [(3) by inserting at the end the following:
  [``(2) Except as provided in paragraph (3) and in addition to 
the amounts authorized to be appropriated pursuant to paragraph 
(1) there is authorized to be appropriated $2,500,000 for the 
fiscal year 1992 and such sums as may be necessary for 1993 for 
Literacy Challenge Grants under section 125.
  [``(3) No funds shall be appropriated pursuant to paragraph 
(2) in any fiscal year unless--
          [``(A) the funds available in such fiscal year for 
        the VISTA Program under part A of title I are 
        sufficient to provide the years of volunteer service 
        specified for such fiscal year under section 501(d)(1) 
        for the VISTA Program; and
          [``(B) the funds available in such fiscal year for 
        the VISTA Literacy Corps under part A of title I are 
        sufficient to provide at least the same years of 
        volunteer service as were provided in the fiscal year 
        preceding such fiscal year.''.
   [TITLE VIII--AMENDMENTS AFFECTING THE TERRITORIES AND THE FREELY 
                           ASSOCIATED STATES

[SEC. 801. ELIGIBILITY FOR EDUCATION PROGRAMS.

  [(a) Higher Education.--Section 484 of the Act (20 U.S.C. 
1091) is amended by adding at the end thereof the following new 
subsection:
  [``(k) Students Attending Institutions in the Freely 
Associated States and Eligibility for Trio Programs.--
Notwithstanding any other provision of law, a student who meets 
the requirements of paragraph (a)(5) of this section or who is 
a resident of the freely associated states, and who attends a 
public or nonprofit institution of higher education located in 
any of the freely associated states rather than a State, shall 
be eligible, if otherwise qualified, for assistance under 
subpart 1, 2, or 4 of part A or part C of this title.''.
  [(b) Territorial Teacher Training Assistance Program.--
Section 4502 of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 3142) is amended by striking ``the Northern 
Mariana Islands, and the Trust Territory of the Pacific 
Islands'' each place it appears and inserting in lieu thereof 
``the Commonwealth of the Northern Mariana Islands, Palau, the 
Republic of the Marshall Islands, and the Federated States of 
Micronesia.''.
  [(c) Treatment of Territories and Territorial Student 
Assistance.--Section 1204 of the Act (20 U.S.C. 1144a) is 
amended by adding at the end thereof the following new 
subsection:
  [``(d) Notwithstanding any other provision of law, an 
institution of higher education that is located in any of the 
freely associated states, rather than a State, shall be 
eligible, if otherwise qualified, for assistance under subpart 
4 of part A of title IV of this Act.''.

[SEC. 802. TREATMENT OF TERRITORIES AND FREELY ASSOCIATED STATES.

  [(a) Elementary and Secondary Education Act of 1965.--
Subsection (a) of section 1005 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 2711) is amended--
          [(1) by redesignating paragraphs (3) and (4) as 
        paragraphs (4) and (5), respectively; and
          [(2) by inserting after paragraph (2) the following:
          [``(3) Competitive Grants.--(A) From amounts 
        appropriated for purposes of carrying out this section, 
        the Secretary shall reserve an amount equal to the 
        amount described in subparagraph (B) for purposes of 
        making competitive grants to local educational agencies 
        in Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, Palau, the Federated States 
        of Micronesia, and the Republic of the Marshall 
        Islands. The Secretary shall make such grants according 
        to the recommendations of the Pacific Regional 
        Laboratory in Honolulu, Hawaii, which shall conduct a 
        competition for such grants.
          [``(B) The amount described in this subparagraph is 
        the portion of the aggregate amount reserved in the 
        fiscal year 1989 under sections 1005(a), 1291, 1404, 
        1405(a)(2)(A), and 1405(a)(2)(B) for the Trust 
        Territory of the Pacific Islands that was attributable 
        to the Republic of the Marshall Islands and the 
        Federated States of Micronesia.
          [``(C) Subject to subparagraph (D), grants awarded 
        under this paragraph may only be used for--
                  [``(i) activities consistent with the 
                purposes of--
                          [``(I) title I;
                          [``(II) the Adult Education Act;
                          [``(III) the Education of the 
                        Handicapped Act;
                          [``(IV) the Library Services and 
                        Construction Act; or
                          [``(V) the Dwight D. Eisenhower 
                        Mathematics and Science Education Act;
                  [``(ii) teacher training;
                  [``(iii) curriculum development;
                  [``(iv) instructional materials; or
                  [``(v) general school improvement and reform.
          [``(D) Grants awarded under this paragraph may only 
        be used to provide direct educational services.
          [``(E) The Secretary shall provide 5 percent of 
        amounts made available for grants under this paragraph 
        to pay the administrative costs of the Pacific Regional 
        Laboratory with respect to the program under this 
        paragraph.''.
  [(b) Adult Education Act.--The Adult Education Act is 
amended--
          [(1) in sections 312(7) and 371(b)(7)(B)(i) (20 
        U.S.C. 1201a(7) and 1211(b)(7)(B)(i)) by striking ``the 
        Trust Territory of the Pacific Islands'' and inserting 
        ``Palau (until the Compact of Free Association with 
        Palau takes effect pursuant to section 101(a) of Public 
        Law 99-658)''; and
          [(2) in sections 313(b) and 361(a) (20 U.S.C. 
        1201b(b) and 1209a(a)) by striking ``and the Trust 
        Territory of the Pacific Islands'' and inserting ``the 
        Federated States of Micronesia, the Republic of the 
        Marshall Islands, and Palau''.
  [(c) Star Schools Program.--Section 907(8) of the Star 
Schools Program Assistance Act (20 U.S.C. 4086(7)) is amended 
by striking ``the Trust Territory of the Pacific Islands'' and 
inserting ``the Federated States of Micronesia, the Republic of 
the Marshall Islands, Palau''.
  [(d) Education of the Handicapped.--The Education of the 
Handicapped Act is amended in--
          [(1) section 602(a)(6) (20 U.S.C. 1401(a)(6)) by 
        striking ``or the Trust Territory of the Pacific 
        Islands'' and inserting ``or Palau (until the Compact 
        of Free Association with Palau takes effect pursuant to 
        section 101(a) of Public Law 99-658)'';
          [(2) section 611(a)(2) (20 U.S.C. 1411(a)(2)) by 
        striking ``and the Trust Territory of the Pacific 
        Islands'' and inserting ``the Federated States of 
        Micronesia, the Republic of the Marshall Islands, and 
        Palau''; and
          [(3) section 611(e)(1) (20 U.S.C. 1411(e)(1)) by 
        striking ``and the Trust Territory of the Pacific 
        Islands'' and inserting ``the Federated States of 
        Micronesia, the Republic of the Marshall Islands, and 
        Palau (until the Compact of Free Association with Palau 
        takes effect pursuant to section 101(a) of Public Law 
        99-658)''.
  [(e) Library Services and Construction Act.--The Library 
Services and Construction Act is amended in--
          [(1) section 3(g) (20 U.S.C. 351a(g)) by striking 
        ``or the Trust Territory of the Pacific Islands'' and 
        inserting ``Palau (until the Compact of Free 
        Association with Palau takes effect pursuant to section 
        101(a) of Public Law 99-658)'';
          [(2) section 5(a)(3) (20 U.S.C. 351c(a)(3)) by 
        striking ``and the Trust Territory of the Pacific 
        Islands'' each place such term appears and inserting 
        ``Palau (until the Compact of Free Association with 
        Palau takes effect pursuant to section 101(a) of Public 
        Law 99-658)'';
          [(3) section 7(a) (20 U.S.C. 351e(a)) by striking 
        ``the Trust Territory of the Pacific Islands'' and 
        inserting ``Palau (until the Compact of Free 
        Association with Palau takes effect pursuant to section 
        101(a) of Public Law 99-658)''; and
          [(4) section 7(b) (20 U.S.C. 351e(b)) by striking 
        ``and the Trust Territory of the Pacific Islands'' each 
        place such term appears and inserting ``the 
        Commonwealth of the Northern Mariana Islands and Palau 
        (until the Compact of Free Association with Palau takes 
        effect pursuant to section 101(a) of Public Law 99-
        658)''.]
                              ----------                              

                 LIBRARY SERVICES AND CONSTRUCTION ACT

 AN ACT To promote the further development of public library services.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this 
Act may be cited as the ``Library Services and Construction 
Act''.

                         [declaration of policy

  [Sec. 2. (a) It is the purpose of this Act to assist the 
States in the extension and improvement of public library 
services to areas and populations of the States which are 
without such services or to which such services are inadequate 
and to assist Indian tribes in planning and developing library 
services to meet their needs. It is the further purpose of this 
Act to assist with (1) public library construction and 
renovation; (2) improving State and local public library 
services for older Americans, and for handicapped, 
institutionalized, and other disadvantaged individuals; (3) 
strengthening State library administrative agencies; (4) 
promoting interlibrary cooperation and resource sharing among 
all types of libraries; (5) strengthening major urban resource 
libraries; and (6) increasing the capacity of libraries to keep 
up with rapidly changing information technology.
  [(b) Nothing in this Act shall be construed to interfere with 
State and local initiative and responsibility in the conduct of 
library services. The administration of libraries, the 
selection of personnel and library books and materials, and, 
insofar as consistent with the purposes of this Act, the 
determination of the best uses of the funds provided under this 
Act shall be reserved to the States and their local 
subdivisions and Indian tribes.

                              [definitions

  [Sec. 3. The following definitions shall apply to this Act:
  [(1) ``Secretary'' means the Secretary of Education.
  [(2) ``Construction'' includes construction of new buildings 
and acquisition, expansion, remodeling, and alteration of 
existing buildings, and for the purchase, lease, and 
installation of equipment of any such buildings, or any 
combination of such activities (including architects' fees and 
the cost of acquisition of land). Such term includes remodeling 
to meet standards under the Act of August 12, 1968, commonly 
known as the ``Architectural Barriers Act of 1968'', remodeling 
designed to ensure safe working environments and to conserve 
energy, renovation or remodeling to accommodate new 
technologies, and the purchase of existing historic buildings 
for conversion to public libraries. For the purposes of this 
paragraph, the term ``equipment'' includes information and 
building technologies, video and telecommunications equipment, 
machinery, utilities, and built-in equipment and any necessary 
enclosures or structures to house them; and such term includes 
all other items necessary for the functioning of a particular 
facility as a facility for the provision of library services.
  [(3) ``Library service'' means the performance of all 
activities of a library relating to the collection and 
organization of library materials and to making the materials 
and information of a library available to a clientele.
  [(4) ``Library services for the physically handicapped'' 
means the providing of library services, through public or 
other nonprofit libraries, agencies, or organizations, to 
physically handicapped persons (including the blind and other 
visually handicapped) certified by competent authority as 
unable to read or to use conventional printed materials as a 
result of physical limitations.
  [(5) ``Public library'' means a library that serves free of 
charge all residents of a community, district, or region, and 
receives its financial support in whole or in part from public 
funds. Such term also includes a research library, which, for 
the purposes of this sentence, means a library, which--
          [(A) makes its services available to the public free 
        of charge;
          [(B) has extensive collections of books, manuscripts, 
        and other materials suitable for scholarly research 
        which are not available to the public through public 
        libraries;
          [(C) engages in the dissemination of humanistic 
        knowledge through services to readers, fellowships, 
        educational and cultural programs, publication of 
        significant research, and other activities; and
          [(D) is not an integral part of an institution of 
        higher education.
  [(6) ``Public library services'' means library services 
furnished by a public library free of charge.
  [(7) ``State'' means a State, the District of Columbia, the 
Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin 
Islands, the Northern Mariana Islands, or the Trust Territory 
of the Pacific Islands.
  [(8) ``State Advisory Council on Libraries'' means an 
advisory council for the purposes of clause (3) of section 6(a) 
of this Act which shall--
          [(A) be broadly representative of the public, school, 
        academic, special, and institutional libraries, and 
        libraries serving the handicapped, in the State and of 
        persons using such libraries, including disadvantaged 
        persons within the State;
          [(B) advise the State library administrative agency 
        on the development of, and policy matters arising in 
        the administration of, State plan; and
          [(C) assist the State library administrative agency 
        in the evaluation of activities assisted under this 
        Act;
  [(9) ``State institutional library services'' means the 
providing of books and other library materials, and of library 
services, to (A) inmates, patients, or residents of penal 
institutions, reformatories, residential training schools, 
orphanages, or general or special institutions or hospitals 
operated or substantially supported by the State, or (B) 
students in residential schools for the physically handicapped 
(including mentally retarded, hearing impaired, speech 
impaired, visually handicapped, seriously emotionally 
disturbed, orthopedically impaired, or other health impaired 
persons who by reason thereof require special education) 
operated or substantially supported by the State.
  [(10) ``State library administrative agency'' means the 
official agency of a State charged by law of that State with 
the extension and development of public library services 
throughout the State, which has adequate authority under law of 
the State to administer State plans in accordance with the 
provisions of this Act.
  [(11) ``Basic State plan'' means the document which gives 
assurances that the officially designated State library 
administrative agency has the fiscal and legal authority and 
capability to administer all aspects of this Act; provides 
assurances for establishing the State's policies, priorities, 
criteria, and procedures necessary to the implementation of all 
programs under provisions of this Act; and submits copies for 
approval as required by regulations promulgated by the 
Secretary.
  [(12) ``Long-range program'' means the comprehensive program 
of not less than three nor more than five years which 
identifies a State's library needs and sets forth the 
activities to be taken toward meeting the identified needs 
supported with the assistance of Federal funds made available 
under this Act. Such long-range programs shall be developed by 
the State library administrative agency and shall specify the 
State's policies, criteria, priorities, and procedures 
consistent with the Act as required by the regulations 
promulgated by the Secretary and shall be updated as library 
progress requires.
  [(13) ``Annual program'' means the projects which are 
developed and submitted to describe the specific activities to 
be carried out annually toward achieving fulfillment of the 
long-range program. These annual programs shall be submitted in 
such detail as required by regulations promulgated by the 
Secretary.
  [(14) ``Major urban resource library'' means any public 
library located in a city having a population of 100,000 or 
more individuals, as determined by the Secretary.
  [(15) ``Indian tribe'' means any Indian tribe, band, nation, 
or other organized group or community, including any Alaskan 
Native village or regional or village corporation as defined in 
or established pursuant to the Alaskan Native Claims Settlement 
Act, which is recognized by the Secretary of the Interior as 
eligible for the special programs and services provided by the 
United States to Indians because of their status as Indians.
  [(16) ``Hawaiian native'' means any individual any of whose 
ancestors were natives prior to 1778 in the area which now 
comprises the State of Hawaii.
  [(17) The term ``handicapped individual'' means an individual 
who is physically or mentally impaired, visually impaired, or 
hearing impaired.
  [(18) The term ``network'' means any local, statewide, 
regional, interstate, or international cooperative association 
of library entities which provide for the systematic and 
effective coordination of the resources of school, public, 
academic, and special libraries and information centers for 
improved supplementary services for the clientele served by 
each type of library entity.
  [(19) The term ``technology enhancement'' means the 
acquisition, installation, maintenance, or replacement, of 
substantial technological equipment (including library 
bibliographic automation equipment) necessary to provide access 
to information in electronic and other formats made possible by 
new information and communications technologies.
  [(20) The term ``educationally disadvantaged adult'' has the 
meaning given that term in section 312(3)(A) of the Adult 
Education Act of 1988 (20 U.S.C. 2101a).
  [(21) The term ``adult with limited literacy skills'' means 
an adult whose minimal skills in reading, writing, or 
computation or in performing basic arithmetical computations 
preclude the individual from functioning in society without 
assistance from others.

                   [authorizations of appropriations

  [Sec. 4. (a) There are authorized to be appropriated--
          [(1) for the purpose of making grants as provided in 
        title I, $100,000,000 for fiscal year 1995;
          [(2) for the purpose of making grants as provided in 
        title II, $55,000,000 for fiscal year 1995;
          [(3) for the purpose of making grants as provided in 
        title III, $35,000,000 for fiscal year 1995;
          [(4) for the purpose of making grants as provided in 
        title V, $1,000,000 for fiscal year 1995;
          [(5) for the purpose of making grants as provided in 
        title VI, $10,000,000 for fiscal year 1995;
          [(6) for the purpose of activities as provided in 
        title VII, $500,000 for fiscal year 1995; and
          [(7) for the purpose of making grants as provided in 
        title VIII, $6,000,000 for fiscal year 1995, except 
        that no amounts are authorized to be appropriated under 
        this paragraph for any fiscal year unless the total 
        amount appropriated pursuant to paragraphs (1), (2), 
        and (3) for such fiscal year equals or exceeds sum of 
        the total amount appropriated pursuant to such 
        paragraphs for the preceding fiscal year, plus 4 
        percent of such total amount.
There shall be available for the purpose of making grants under 
title IV for fiscal year 1995, 1.5 percent of the amount 
appropriated pursuant to each of paragraphs (1), (2), and (3) 
for each such fiscal year. There shall be available for the 
purpose of making grants under section 5(d) for such fiscal 
years 0.5 percent of the amount appropriated pursuant to each 
of such paragraphs for each such fiscal year.
  [(b) Notwithstanding any other provision of law, unless 
enacted in express limitation of the provisions of this 
subsection, any sums appropriated pursuant to subsection (a) 
shall (1), in the case of sums appropriated pursuant to 
paragraphs (1) and (3) thereof, be available for obligation and 
expenditure for the period of time specified in the Act making 
such appropriation, and (2), in the case of sums appropriated 
pursuant to paragraph (2) thereof, subject to regulations of 
the Secretary promulgated in carrying out the provisions of 
section 5(b), be available for obligation and expenditure for 
the year specified in the Appropriation Act and is authorized 
to remain available until expended.
  [(c)(1) For the purpose of affording adequate notice of 
funding available under this Act, appropriations under this Act 
are authorized to be included in an appropriation Act for the 
fiscal year preceding the fiscal year for which they are first 
available for obligation.
  [(2) In order to effect a transition to the advance funding 
method of timing appropriation action, the provisions of this 
subsection shall apply notwithstanding that its initial 
application will result in the enactment in the same year 
(whether in the same appropriation Act or otherwise) of two 
separate appropriations, one for the then current fiscal year 
and one for the succeeding fiscal year.

                [allotments to states and indian tribes

  [Sec. 5. (a)(1) From the sums appropriated pursuant to clause 
(1), (2), or (3) of section 4(a) for any fiscal year, the 
Secretary shall allot the minimum allotment, as determined 
under paragraph (3) of this subsection, to each State. Any sums 
remaining after minimum allotments have been made shall be 
allotted in the manner set forth in paragraph (2) of this 
subsection.
  [(2) From the remainder of any sums appropriated pursuant to 
clause (1), (2), or (3) of section 4(a) for any fiscal year, 
the Secretary shall allot to each State such part of such 
remainder as the population of the State bears to the 
population of all the States.
  [(3) For the purposes of this subsection, the ``minimum 
allotment'' shall be--
          [(A) with respect to appropriations for the purposes 
        of title I, $200,000 for each State, except that it 
        shall be $40,000 in the case of Guam, American Samoa, 
        the Virgin Islands, the Northern Mariana Islands, Palau 
        (until the Compact of Free Association with Palau takes 
        effect pursuant to section 101(a) of Public Law 99-
        658);
          [(B) with respect to appropriations for the purposes 
        of title II, $100,000 for each State, except that it 
        shall be $20,000 in the case of Guam, American Samoa, 
        the Virgin Islands, the Northern Mariana Islands, Palau 
        (until the Compact of Free Association with Palau takes 
        effect pursuant to section 101(a) of Public Law 99-
        658); and
          [(C) with respect to appropriations for the purposes 
        of title III, $40,000 for each State, except that it 
        shall be $10,000 in the case of Guam, American Samoa, 
        the Virgin Islands, the Northern Mariana Islands, Palau 
        (until the Compact of Free Association with Palau takes 
        effect pursuant to section 101(a) of Public Law 99-
        658).
If the sums appropriated pursuant to clause (1), (2), or (3) of 
section 4(a) for any fiscal year are insufficient to fully 
satisfy the aggregate of the minimum allotments for that 
purpose, each of such minimum allotments shall be reduced 
ratably.
  [(4) The population of each State and of all the States shall 
be determined by the Secretary on the basis of the most recent 
satisfactory data available to him.
  [(b) The amount of any State's allotment under subsection (a) 
for any fiscal year from any appropriation made pursuant to 
clause (1), (2), or (3) of section 4(a) which the Secretary 
deems will not be required for the period and the purpose for 
which such allotment is available for carrying out the State's 
annual program shall be available for reallotment from time to 
time on such dates during such year as the Secretary shall fix. 
Such amount shall be available for reallotment to other States 
in proportion to the original allotments for such year to such 
States under subsection (a) but with such proportionate amount 
for any of such other State being reduced to the extent that if 
it exceeds the amount which the Secretary estimates the State 
needs and will be able to use for such period of time for which 
the original allotments were made and the total of such 
reductions shall be similarly reallotted among the States not 
suffering such a reduction. Any amount reallotted to a State 
under this subsection for any fiscal year shall be deemed to be 
a part of its allotment for such year pursuant to subsection 
(a).
  [(c)(1) From one-half of the sums available pursuant to the 
second sentence of section 4(a) for any fiscal year, the 
Secretary shall allot an equal amount to each Indian tribe that 
submits an approved application under section 403.
  [(2) From the remaining one-half of the sums available 
pursuant to such second sentence, the Secretary shall make 
allocations to Indian tribes that (A) are receiving an 
allocation under paragraph (1) of this subsection for such 
fiscal year; and (B) have submitted approved applications under 
section 404.
  [(3) In making allocations under paragraph (2)--
          [(A) no funds shall be allocated to an Indian tribe 
        unless such funds will be administered by a librarian; 
        and
          [(B) the Secretary shall take into account the needs 
        of Indian tribes for such allocations to carry out the 
        activities described in section 402(b).
  [(4) In making allocations under this subsection, the 
Secretary shall take such actions as may be necessary to 
prevent an allocation from being received to serve the same 
population by any 2 or more of the following entities (as 
defined in or established pursuant to the Alaskan Native Claims 
Settlement Act): an Alaskan native village, a regional 
corporation, or a village corporation.
  [(d)(1) From the sums available pursuant to the last sentence 
of section 4(a) for any fiscal year, the Secretary shall make 
grants to organizations primarily serving and representing 
Hawaiian natives that are recognized by the Governor of the 
State of Hawaii.
  [(2) Grants under this subsection shall be made on the basis 
of applications and plans submitted by such organizations that 
are consistent with the requirements imposed pursuant to 
sections 402(b), 403 and 404. Funds made available by grants 
under this subsection may be used for the purposes specified in 
clauses (1) through (8) of section 402(a), to contract to 
provide public library services to Native Hawaiians, and to 
carry out any other activities authorized under this sentence 
by contract. Section 402(c) shall apply with respect to the 
cultural materials of Hawaiian natives. The Secretary shall 
issue criteria for the approval of applications and plans but 
the criteria may not include an allotment formula and may not 
contain a matching of funds requirement.

                          [plans and programs

  [Sec. 6. (a) Any State desiring to receive its allotment for 
any purpose under this Act for any fiscal year shall (1) have 
in effect for such fiscal year a basic State plan as defined in 
section 3(11) and meeting the requirements set forth in 
subsection (b), (2) submit an annual program as defined in 
section 3(13) for the purposes for which allotments are 
desired, meeting the appropriate requirements set forth in 
titles I, II, and III and shall submit (no later than July 1, 
1972) a long-range program as defined in section 3(12) for 
carrying out the purposes of this Act as specified in 
subsection (d), and (3) establish a State Advisory Council on 
Libraries which meets the requirements of section 3(8).
  [(b) A basic State plan under this Act shall--
          [(1) provide for the administration, or supervision 
        of the administration, of the programs authorized by 
        this Act by the State library administrative agency;
          [(2) provide that any funds paid to the State in 
        accordance with a long-range program and an annual 
        program shall be expended solely for the purposes for 
        which funds have been authorized and appropriated and 
        that such fiscal control and fund accounting procedures 
        have been adopted as may be necessary to assure proper 
        disbursement of, and account for, Federal funds paid to 
        the State (including any such funds paid by the State 
        to any other agency) under this Act;
          [(3) provide satisfactory assurance that the State 
        agency administering the plan (A) will make such 
        reports, in such form and containing such information, 
        as the Secretary may reasonably require to carry out 
        his functions under this Act and to determine the 
        extent to which funds provided under this Act have been 
        effective in carrying out its purposes, including 
        reports of evaluations made under the State plans, and 
        (B) will keep such records and afford such access 
        thereto as the Secretary may find necessary to assure 
        the correctness and verification of such reports;
          [(4) provide assurances that libraries within the 
        State that receive funds under this Act shall not 
        discriminate on the basis of race, religion, age, 
        gender, national origin, or handicapping condition in 
        providing space for public meetings; and
          [(5) provide that priority will be given to programs 
        and projects--
                  [(A) that improve access to public library 
                resources and services for the least served 
                populations in the State, including programs 
                for individuals with limited English-speaking 
                proficiency (as defined in section 703(a) of 
                the Bilingual Education Act) or handicapping 
                conditions, and programs and projects in urban 
                and rural areas;
                  [(B) that serve the elderly;
                  [(C) that are designed to combat illiteracy; 
                and
                  [(D) that increase services and access to 
                services through effective use of technology.
  [(c)(1) The Secretary shall not approve any basic State plan 
pursuant to this Act for any fiscal year unless--
          [(A) the plan fulfills the conditions specified in 
        section 3(11) and subsection (b) of this section and 
        the appropriate titles of this Act;
          [(B) he has made specific findings as to the 
        compliance of such plan with requirements of this Act 
        and he is satisfied that adequate procedures are 
        subscribed to therein insure that any assurances and 
        provisions of such plan will be carried out.
  [(2) The State plan shall be made public as finally approved.
  [(3) The Secretary shall not finally disapprove any basic 
State plan submitted pursuant to subsection (a)(1), or any 
modification thereof, without first affording the State 
reasonable notice and opportunity for hearing.
  [(d) The long-range program of any State for carrying out the 
purposes of this Act shall be developed in consultation with 
the Secretary and shall--
          [(1) set forth a program under which the funds 
        received by the State under the programs authorized by 
        this Act will be used to carry out a long-range program 
        of library services, construction, and interlibrary 
        cooperation and resource sharing covering a period of 
        not less than three nor more than five years;
          [(2) be annually reviewed and revised in accordance 
        with changing needs for assistance under this Act and 
        the results of the evaluation and surveys of the State 
        library administrative agency;
          [(3) set forth policies and procedures (A) for the 
        periodic evaluation of the effectiveness of programs 
        and projects supported under this Act, and (B) for 
        appropriate dissemination of the results of such 
        evaluations and other information pertaining to such 
        programs or projects; and
          [(4) set forth effective policies and procedures for 
        the coordination of programs and projects supported 
        under this Act with library programs and projects 
        operated by institutions of higher education or local 
        elementary or secondary schools and with other public 
        or private library services programs.
Such program shall be developed with advice of the State 
Advisory council and in consultation with the Secretary and 
shall be made public as it is finally adopted.
  [(e) Whenever the Secretary, after reasonable notice and 
opportunity for hearing to the State agency administering a 
program submitted under this Act, finds--
          [(1) that the program has been so changed that it no 
        longer complies with the provisions of this Act, or
          [(2) that in the administration of the program there 
        is a failure to comply substantially with any such 
        provisions or with any assurance or other provision 
        contained in the basic State plan,
then, until he is satisfied that there is no longer any such 
failure to comply, after appropriate notice to such State 
agency, he shall make no further payments to the State under 
this Act or shall limit payments to programs or projects under, 
or parts of, the programs not affected by the failure, or shall 
require that payments by such State agency under this Act shall 
be limited to local or other public library agencies not 
affected by the failure.
  [(f)(1) If any State is dissatisfied with the Secretary's 
final action with respect to the approval of a plan submitted 
under this Act or with his final action under subsection (e) 
such State may, within sixty days after notice of such action, 
file with the United States court of appeals for the circuit in 
which such State is located a petition for review of that 
action. A copy of the petition shall be forthwith transmitted 
by the clerk of the court to the Secretary. The Secretary 
thereupon shall file in the court the record of the proceedings 
on which he based his action as provided in section 2112 of 
title 28, United States Code.
  [(2) The findings of fact by the Secretary, if supported by 
substantial evidence, shall be conclusive; but the court, for 
good cause shown, may remand the case to the Secretary to take 
further evidence, and the Secretary may thereupon take new or 
modified findings of fact and may modify his previous action, 
and shall certify to the court the record of further 
proceedings.
  [(3) The court shall have jurisdiction to affirm the action 
of the Secretary or to set it aside, in whole or in part. The 
judgment of the court shall be subject to review by the Supreme 
Court of the United States upon certiorari or certification as 
provided in section 1254 of title 28, United States Code.
  [(g)(1) Any Indian tribe desiring to receive its allotment 
under section 5(c)(1) shall submit an application to the 
Secretary in accordance with section 403.
  [(2) Any Indian tribe desiring to receive an additional 
allocation under section 5(c)(2) in the same fiscal year in 
which it has received an allocation under section 5(c)(1) shall 
submit a plan in accordance with section 404.
  [(h) The Secretary shall coordinate programs under titles V 
and VI of this Act with the programs assisted by titles I, II, 
and III of this Act, and shall provide to the head of the State 
library administrative agency the opportunity to comment on any 
application for a grant under title V or VI of this Act prior 
to the awarding of the grant, in order to assure that such 
grants from the Secretary are for purposes consistent with the 
long-range program required under subsection (d) of this 
section.

                               [payments

  [Sec. 7. (a) From the allotments available therefor under 
section 5 from appropriations pursuant to clause (1), (2), or 
(3) of section 4(a), the Secretary shall pay to each State 
which has a basic State plan approved under section 6(a)(1), an 
annual program and a long-range program as defined in sections 
3 (12) and (13) an amount equal to the Federal share of the 
total sums expended by the State and its political subdivisions 
in carrying out such plan, except that no payments shall be 
made from appropriations pursuant to such paragraph (1) for the 
purposes of title I to any State (other than Palau (until the 
Compact of Free Association with Palau takes effect pursuant to 
section 101(a) of Public Law 99-658)) for any fiscal year 
unless the Secretary determines that--
          [(1) there will be available from State and local 
        sources for expenditure under the programs, during the 
        fiscal year for which the allotment is made, an amount 
        that equals or exceeds the amount required to provide 
        the State percentage as required by subsection (b); and
          [(2)(A) there will be available for expenditure for 
        State aid to public libraries and library systems, 
        during the fiscal year for which the allotment is made, 
        an aggregate amount equal to 90 percent of the amount 
        actually expended for such purposes in the second 
        preceding fiscal year; and
          [(B) there will be available for expenditure, during 
        the fiscal year for which the allotment is made, for 
        the State library administrative agency, or for the 
        part thereof charged by State law with the extension 
        and development of public library services throughout 
        the State, an aggregate amount equal to 90 percent of 
        the amount actually expended for such purpose in the 
        second preceding fiscal year.
The Secretary may, in accordance with regulations, waive the 
requirements of paragraph (2) of this subsection, if the 
Secretary determines that the application of such paragraph 
would be unjust or unreasonable in the light of exceptional 
extenuating circumstances.
  [(b)(1) For the purpose of this section, the ``Federal 
share'' for any State shall be, except as is provided otherwise 
in title III, 100 per centum less the State percentage, and the 
State percentage shall be that percentage which bears the same 
ratio to 50 per centum as the per capita income of such State 
bears to the per capita income of all the States (excluding 
Puerto Rico, Guam, American Samoa, and the Northern Mariana 
Islands the Virgin Islands, the Commonwealth of the Northern 
Mariana Islands and Palau (until the Compact of Free 
Association with Palau takes effect pursuant to section 101(a) 
of Public Law 99-658)), except that (A) the Federal share shall 
in no case be more than 66 per centum, or less than 33 per 
centum, and (B) the Federal share for Puerto Rico, Guam, 
American Samoa, and the Northern Mariana Islands and the Virgin 
Islands shall be 66 per centum, and (C) the Federal share for 
the Trust Territory of the Pacific Islands shall be 100 per 
centum.
  [(2) The ``Federal share'' for each State shall be 
promulgated by the Secretary within sixty days after the 
beginning of the fiscal year ending June 30, 1971, and of every 
second fiscal year thereafter, on the basis of the average per 
capita incomes of each of the States and of all the States 
(excluding Puerto Rico, Guam, American Samoa, the Virgin 
Islands, the Northern Mariana Islands, the Commonwealth of the 
Northern Mariana Islands and Palau (until the Compact of Free 
Association with Palau takes effect pursuant to section 101(a) 
of Public Law 99-658)), for the three most recent consecutive 
years for which satisfactory data are available to him from the 
Department of Commerce. Such promulgation shall be conclusive 
for each of the two fiscal years beginning after the 
promulgation.
  [(c) From the sums available pursuant to the second sentence 
of section 4(a), the Secretary shall pay to each Indian tribe 
which has an approved application under section 403 an amount 
equal to such tribe's allotment under section 5(c)(1) and shall 
pay to each Indian tribe which has an approved plan under 
section 404 an amount equal to such tribe's additional 
allocation under section 6(g)(2), except that such additional 
allocation shall not exceed 80 percent of the cost of carrying 
out such plan.

                         [administrative costs

  [Sec. 8. A State may expend funds received under titles I and 
II for administrative costs in connection with programs and 
activities carried out under titles I, II, and III, but such 
administrative expenditures under such titles for any fiscal 
year may not exceed the greater of (1) 6 per centum of the sum 
of the amounts allotted to such State under such titles for 
such fiscal year, or (2) $60,000.

                      [education research library

  [Sec. 9. None of the activities or functions of the 
Department of Education Research Library which are utilized, 
directly or indirectly, by the Secretary in carrying out this 
Act and which were not performed by contractors as of July 26, 
1989, shall be contracted out or otherwise transferred from the 
Federal Government before September 30, 1991, unless such 
transfer is expressly authorized by statute, or unless the 
value of all work performed under the contract and related 
contracts in each fiscal year does not exceed $50,000.

                   [TITLE I--PUBLIC LIBRARY SERVICES

             [grants to states for public library services

  [Sec. 101. The Secretary shall carry out a program of making 
grants from sums appropriated pursuant to section 4(a)(1) to 
States which have approved basic State plans under section 6 
and have submitted annual programs under section 103--
          [(1) for the extension of public library services to 
        areas and populations without such services and the 
        improvement of such services to areas and populations 
        to ensure that such services are adequate to meet user 
        needs and to make library services accessible to 
        individuals who, by reason of distance, residence, 
        handicap, age, literacy level, or other disadvantage, 
        are unable to receive the benefits of public library 
        services regularly made available to the public;
          [(2) for adapting public library services to meet 
        particular needs of individuals within the States;
          [(3) for assisting libraries to serve as community 
        information referral centers;
          [(4) for assisting libraries in providing literacy 
        programs for adults and school dropouts in cooperation 
        with other agencies and organizations, if appropriate;
          [(5) for assisting libraries in developing 
        intergenerational library programs that will match 
        older adult volunteers with libraries interested in 
        developing after school literacy and reading skills 
        programs for unsupervised school children during 
        afterschool hours;
          [(6) for assisting libraries in providing mobile 
        library services and programs to child-care providers 
        or child-care centers which are licensed or certified 
        by the State, or otherwise meet the requirements of 
        State law;
          [(7) to establish and support model library literacy 
        centers, coordinated by the State library 
        administrative agency with other interested State 
        agencies and nonprofit organizations to reduce the 
        number of functionally illiterate individuals and to 
        help them reach full employment;
          [(8) for assisting libraries in providing and 
        displaying educational materials, and conducting 
        community-wide programs, aimed at preventing and 
        eliminating drug abuse, in cooperation with local 
        education agencies or other agencies or organizations, 
        if appropriate;
          [(9) for strengthening State library administrative 
        agencies; and
          [(10) for strengthening major urban resource 
        libraries; and
          [(11) for assisting public libraries in making 
        effective use of technology to improve library and 
        information services.

                         [uses of federal funds

  [Sec. 102. (a) Funds appropriated pursuant to paragraph (1) 
of section 4(a) shall be available for grants to States from 
allotments under section 5(a) for the purpose of paying the 
Federal share of the cost of carrying out State plans submitted 
and approved under section 6 and section 103. Except as is 
provided in subsection (b), grants to States under this title 
may be used solely--
          [(1) for planning for, and taking other steps leading 
        to the development of, programs and projects designed 
        to assist libraries to serve as community centers for 
        information and referral and to extend and improve 
        library services, as provided in clause (2);
          [(2) for (A) extending public library services to 
        geographical areas and groups of persons without such 
        services and improving such services in such areas and 
        for such groups as may have inadequate public library 
        services; and (B) establishing, expanding, and 
        operating programs and projects to provide (i) State 
        institutional library services, (ii) library services 
        to the physically handicapped, and (iii) library 
        services for the disadvantaged in urban and rural 
        areas; and (C) strengthening metropolitan public 
        libraries which serve as national or regional resource 
        centers; and
          [(3) for supporting and expanding library services of 
        major urban resource libraries which, because of the 
        value of the collections of such libraries to 
        individual users and to other libraries, need special 
        assistance to furnish services at a level required to 
        meet the demands made for such services.
No grant may be made under clause (3) of this subsection unless 
the major urban resource library provides services to users 
throughout the regional area in which such library is located. 
In carrying out its program to accomplish the purposes of this 
title, a State may make subgrants to library systems or 
networks which include libraries other than public libraries, 
if the purpose of the subgrant is to improve services for 
public library patrons.
  [(b) Subject to the provisions of section 8 and such 
limitations and criteria as the Secretary shall establish by 
regulation, grants to States under this Act may be used (1) to 
pay the cost of administering the State plans submitted and 
approved under this Act (including obtaining the services of 
consultants), statewide planning for and evaluation of library 
services, dissemination of information concerning library 
services, and the activities of such advisory groups and panels 
as may be necessary to assist the State library administrative 
agency in carrying out its functions under this title, and (2) 
for strengthening the capacity of State library administrative 
agencies for meeting the needs of the people of the States.
  [(c)(1) Subject to such criteria as the Secretary shall 
establish by regulation, in any fiscal year in which sums 
appropriated pursuant to paragraph (1) of section 4(a) 
(excluding the amount made available for Indian tribes and 
Hawaiian natives) exceed $60,000,000, each State which is 
subject to the provisions of this subsection shall reserve that 
portion of the allotment of each State attributable to the 
amount in excess of $60,000,000 in that fiscal year in the 
manner required in paragraph (2).
  [(2)(A) In each State having one or more cities with a 
population of 100,000 or more individuals, as determined by the 
Secretary, and in which the aggregate population of such cities 
does not exceed 50 percent of the total population of the 
State, the portion of the excess amount specified in paragraph 
(1) shall be reserved for the purposes described in subsection 
(a)(3) of this section in accordance with clause (2) of section 
103 in an amount which bears the same ratio to the total of 
such excess amount as the aggregate population of such cities 
bears to the total population of such State.
  [(B) In each State having one or more cities with a 
population of 100,000 or more individuals, as determined by the 
Secretary, and in which the aggregate population of such cities 
exceeds 50 percent of the total population of the State, 50 
percent of the excess amount specified in paragraph (1) shall 
be reserved for the purposes described in subsection (a)(3) in 
accordance with clause (2) of section 103.
  [(C) Any State which does not include any city with a 
population of 100,000 or more individuals, as determined by the 
Secretary, shall not be subject to the provisions of this 
subsection.
  [(3) No State shall, in carrying out the provisions of 
paragraph (2) of this subsection, reduce the amount paid to any 
major urban resource library below the amount that such library 
received in the fiscal year preceding the fiscal year for which 
the determination is made under such paragraph (2), except that 
such amount may be ratably reduced to the extent that (A) the 
total Federal allocations to the State under section 5 for 
purposes of this title for the applicable fiscal year are 
reduced, or (B) the 1990 Census shows the population of the 
city served by such library has decreased.

               [state annual program for library services

  [Sec. 103. Any State desiring to receive a grant from its 
allotment for the purposes of this title for any fiscal year 
shall, in addition to having submitted, and having had 
approved, a basic State plan under section 6, submit for that 
fiscal year an annual program for library services. Such 
program shall be submitted at such time, in such form, and 
contain such information as the Secretary may require by 
regulation, and shall--
          [(1) set forth a program, subject to clause (2) of 
        this section, for the year submitted under which funds 
        paid to the State from appropriations pursuant to 
        paragraph (1) of section 4(a) for that year will be 
        used, consistent with its long-range program, solely 
        for the purposes set forth in section 102;
          [(2) set forth a program for the year submitted under 
        which the amount reserved by the State under section 
        102(c), if applicable, will be used for the purposes 
        set forth in clause (3) of section 102(a);
          [(3) set forth the criteria used in allocating such 
        funds among such purposes, which criteria shall insure 
        that the State will expend from Federal, State, and 
        local sources an amount not less than the amount 
        expended by the State from such sources for State 
        institutional library services, and library services to 
        the physically handicapped and institutionalized 
        individuals during the second fiscal year preceding the 
        fiscal year for which the determination is made;
          [(4) describe the uses of funds for programs for the 
        elderly;
          [(5) describe the uses of funds to make library 
        services and programs more accessible to handicapped 
        individuals;
          [(6) include such information, policies, and 
        procedures as will assure that the activities to be 
        carried out during that year are consistent with the 
        long-range program; and
          [(7) include an extension of the long-range program, 
        taking into consideration the results of evaluations.
No State shall, in carrying out the provisions of clause (2) of 
this section, reduce the amount paid to an urban resource 
library below the amount that such library received in the year 
preceding the year for which the determination is made under 
such clause (2). The amount which a State is required to expend 
pursuant to clause (3) of this section shall be ratably reduced 
to the extent that Federal allocations to the State are reduced 
and to the extent that the Secretary determines that the 
populations served by such expenditures has declined.

   [TITLE II--PUBLIC LIBRARY CONSTRUCTION AND TECHNOLOGY ENHANCEMENT

   [grants to states for public library construction and library and 
                   information technology enhancement

  [Sec. 201. The Secretary shall carry out a program of making 
grants to States which have had approved a basic State plan 
under section 6 and have submitted a long-range program and 
submit annually appropriately updated programs under section 
203 for the construction and technology enhancement of public 
libraries.

                         [uses of federal funds

  [Sec. 202. (a) Funds appropriated pursuant to paragraph (2) 
of section 4(a) shall be available for grants to States from 
allotments under section 5(a) for the purpose of paying the 
Federal share of the cost of construction and technology 
enhancement projects carried under State plans. Such grants 
shall be used for the construction and technology enhancement 
(as defined in sections 3(2) and 3(19), respectively of public 
libraries.
  [(b) For the purposes of subsection (a), the Federal share of 
the cost of construction and technology enhancement of any 
project assisted under this title shall not exceed one-half of 
the total cost of such project.
  [(c) If, within 20 years after completion of construction of 
any library facility which has been constructed in part with 
funds made available under this title--
          [(1) the recipient (or its successor in title or 
        possession) ceases or fails to be a public or nonprofit 
        institution, or
          [(2) the facility ceases to be used as a library 
        facility, unless the Secretary determines that there is 
        good cause for releasing the institution from its 
        obligation,
the United States shall be entitled to recover from such 
recipient (or successor) an amount which bears the same ratio 
to the value of the facility at that time (or part thereof 
constituting an approved project or projects) as the amount of 
the Federal grant bore to the cost of such facility (or part 
thereof). The value shall be determined by the parties or by 
action brought in the United States district court for the 
district in which the facility is located.

 [state annual program for the construction and technology enhancement 
                          of public libraries

  [Sec. 203. Any State desiring to receive a grant from its 
allotment for the purpose of this title for any fiscal year 
shall, in addition to having submitted, and having had 
approved, a basic State plan under section 6, submit such 
projects as the State may approve and are consistent with its 
long-range program.
  [Such projects shall be submitted at such time and contain 
such information as the Secretary may require by regulation and 
shall--
          [(1) for the year submitted under which funds are 
        paid to the State from appropriations pursuant to 
        paragraph (2) of section 4(a) for that year, be used, 
        consistent with the State's long-range program, for the 
        construction and technology enhancement of public 
        libraries in areas of the State which are without the 
        library facilities necessary to provide adequate 
        library services;
          [(2) follow the criteria, policies, and procedures 
        for the approval of applications for the construction 
        and technology enhancement of public library facilities 
        under the long-range program;
          [(3) follow policies and procedures which will insure 
        that every local or other public agency whose 
        application for funds under the plan with respect to a 
        project for construction and technology enhancement of 
        public library facilities is denied will be given an 
        opportunity for a hearing before the State library 
        administrative agency;
          [(4) include an extension of the long-range program 
        taking into consideration the results of evaluations; 
        and
          [(5) follow policies and procedures in the 
        construction of public libraries that will promote the 
        preservation of library and information resources to be 
        utilized in the facilities.
       [TITLE III--INTERLIBRARY COOPERATION AND RESOURCE SHARING

        [grants to states for interlibrary cooperation programs

  [Sec. 301. The Secretary shall carry out a program of making 
grants to States which have an approved basic State plan under 
section 6, have submitted a long-range program and an annual 
program under section 303 for interlibrary cooperation 
programs, and have submitted long-range and annual programs 
which are directed toward attaining compliance with the 
requirements of section 304.

                         [uses of federal funds

  [Sec. 302. (a) Funds appropriated pursuant to paragraph (3) 
of section 4(a) shall be available for grants to States from 
allotments under paragraphs (1) and (3) of section 5(a) for the 
purpose of carrying out the Federal share of the cost of 
carrying out State plans submitted and approved under section 
303. Such grants shall be used (1) for planning for, and taking 
other steps leading to the development of, cooperative library 
networks; (2) establishing, expanding, and operating local, 
regional, and interstate cooperative networks of libraries, 
which provide for the systematic and effective coordination of 
the resources of school, public, academic, and special 
libraries and information centers for improved supplementary 
services for the special clientele served by each type of 
library or center; and (3) developing the technological 
capacity of libraries for interlibrary cooperation and resource 
sharing.
  [(b) For the purposes of this title, the Federal share shall 
be 100 per centum of the cost of carrying out the State plan.

           [state annual program for interlibrary cooperation

  [Sec. 303. Any State desiring to receive a grant from its 
allotment for the purposes of this title for any fiscal year 
shall, in addition to having submitted, and having had 
approved, a basic State plan under section 6, submit for that 
fiscal year an annual program for interlibrary cooperation. 
Such program shall be submitted at such time, in such form, and 
contain such information as the Secretary may require by 
regulation and shall comply with the requirements of section 
304, shall--
          [(1) set forth a program for the year submitted under 
        which funds paid to the State from appropriations 
        pursuant to paragraph (3) of section 4(a) will be used, 
        consistent with its long-range program for the purposes 
        set forth in section 302,
          [(2) include an extension of the long-range program 
        taking into consideration the results of evaluations.

                           [resource sharing

  [Sec. 304. (a) The long-range program and annual program of 
each State shall include a statewide resource sharing plan 
which is directed toward attaining compliance with the 
provisions of this section.
  [(b) In developing the State basic and long-range programs, 
the State library agency with the assistance of the State 
advisory council on libraries shall consider recommendations 
from current and potential participating institutions in the 
interlibrary and resource sharing programs authorized by this 
title.
  [(c) The State's long-range program shall identify 
interlibrary and resource sharing objectives to be achieved 
during the period covered by the basic and long-range plans 
required by section 6. The long-range program may include--
          [(1) criteria for participation in statewide resource 
        sharing to ensure equitable participation by libraries 
        of all types that agree to meet requirements for 
        resource sharing;
          [(2) an analysis of the needs for development and 
        maintenance of bibliographic access, including data 
        bases for monographs, serials, and audiovisual 
        materials;
          [(3) an analysis of the needs for development and 
        maintenance of communications systems for information 
        exchange among participating libraries;
          [(4) an analysis of the needs for development and 
        maintenance of delivery systems for exchanging library 
        materials among participating libraries;
          [(5) a projection of the computer and other 
        technological needs for resource sharing;
          [(6) an identification of means which will be 
        required to provide users access to library resources, 
        including collection development and maintenance in 
        major public, academic, school, and private libraries 
        serving as resource centers;
          [(7) a proposal, where appropriate, for the 
        development, establishment, demonstration, and 
        maintenance of intrastate multitype library systems;
          [(8) an analysis of the State's needs for development 
        and maintenance of links with State and national 
        resource sharing systems; and
          [(9) a description of how the evaluations required by 
        section 6(d) will be conducted.
  [(d) Libraries participating in resource sharing activities 
under this section may be reimbursed for their expenses in 
loaning materials to public libraries.
  [(e) Public and school libraries which cooperate to make 
school library resources available to the public during periods 
when school is not in session may be reimbursed for such 
expenses.

                         [preservation programs

  [Sec. 305. (a) The long-range program and annual program of 
each State under this title may--
          [(1) include a statewide preservation cooperation 
        plan that complies with this section; and
          [(2) identify the preservation objectives to be 
        achieved during the period covered by the long-range 
        plans required by section 6.
  [(b) A statewide preservation cooperation plan complies with 
this section if--
          [(1) such plan specifies the methods by which the 
        State library administrative agency will work with 
        libraries, archives, historical societies, scholarly 
        organizations, and other agencies, within or outside 
        the State, in planning, education and training, 
        coordinating, outreach and public information, and 
        service programs to ensure that endangered library and 
        information resources are preserved systematically; and
          [(2) such preservation plan is developed in 
        consultation with such parties and agencies as the 
        State archives, historical societies, libraries, 
        scholarly organizations, and other interested parties.
  [(c) A State which has a statewide preservation cooperation 
plan that complies with this section may use funds under this 
title to carry out such plan.
  [(d) The State library administrative agency may contract 
part or all of the preservation program under this section to 
other agencies or institutions.

             [TITLE IV--LIBRARY SERVICES FOR INDIAN TRIBES

             [findings and purpose; authorization of grants

  [Sec. 401. (a) The Congress finds that--
          [(1) most Indian tribes receive little or no funds 
        under titles I, II, and III of this Act;
          [(2) Indian tribes and reservations are generally 
        considered to be separate nations and seldom are 
        eligible for direct library allocations from States;
          [(3) the vast majority of Indians living on or near 
        reservations do not have access to adequate libraries 
        or have access to no libraries at all; and
          [(4) this title is therefor required specifically to 
        promote special efforts to provide Indian tribes with 
        library services.
  [(b) It is therefor the purpose of this title (1) to promote 
the extension of public library services to Indian people 
living on or near reservations; (2) to provide incentives for 
the establishment and expansion of tribal library programs; and 
(3) to improve the administration and implementation of library 
services for Indians by providing funds to establish and 
support ongoing library programs.
  [(c) The Secretary shall carry out a program of making grants 
from allotments under section 5(c)(1) to Indian tribes that 
have submitted an approved application under section 403 for 
library services to Indians living on or near reservations.
  [(d) The Secretary shall carry out a program of making 
special project grants from funds available under section 
5(c)(2) to Indian tribes that have submitted approved plans for 
the provision of library services as described in section 404.

                             [use of funds

  [Sec. 402. (a) Funds made available by grant under subsection 
(c) or (d) of section 401 may be used for--
          [(1) inservice or preservice training of Indians as 
        library personnel;
          [(2) purchase of library materials;
          [(3) conduct of special library programs for Indians;
          [(4) salaries of library personnel;
          [(5) construction, purchase, renovation, or 
        remodeling of library buildings and facilities;
          [(6) transportation to enable Indians to have access 
        to library services;
          [(7) dissemination of information about library 
        services;
          [(8) assessment of tribal library needs; and
          [(9) contracts to provide public library services to 
        Indians living on or near reservations or to accomplish 
        any of the activities described in clauses (1) through 
        (8).
  [(b) Any tribe that supports a public library system shall 
continue to expend from Federal, State, and local sources an 
amount not less than the amount expended by the tribe from such 
sources for public library services during the second fiscal 
year preceding the fiscal year for which the determination is 
made.
  [(c) Nothing in this Act shall be construed to prohibit 
restricted collections of tribal cultural materials with funds 
made available under this Act.

             [applications for library services to indians

  [Sec. 403. Any Indian tribe which desires to receive its 
allotment under section 5(c)(1) shall submit an application 
which contains such information as the Secretary may require by 
regulation.

                 [plans for library services to indians

  [Sec. 404. Any Indian tribe which desires to receive a 
special project grant from funds available under section 
5(c)(2) shall submit a plan for library services on or near an 
Indian reservation. Such plans shall be submitted at such time, 
in such form, and contain such information as the Secretary may 
require by regulation and shall set forth a program for the 
year under which funds paid to the Indian tribe will be used, 
consistent with--
          [(1) a long-range program, and
          [(2) the purposes set forth in section 402(a).

                [coordination with programs for indians

  [Sec. 405. The Secretary, with the Secretary of the Interior, 
shall coordinate programs under this title with the programs 
assisted under the various Acts and programs administered by 
the Department of the Interior that pertain to Indians.

    [services in states with indian tribes not residing on or near 
                              reservations

  [Sec. 406. The provisions of this title requiring that 
services be provided on or near Indian reservations, or to only 
those Indians who live on or near Indian reservations, shall 
not apply in the case of Indian tribes and Indians in 
California, Oklahoma, and Alaska.

            [TITLE V--FOREIGN LANGUAGE MATERIALS ACQUISITION

           [grants for foreign language material acquisition

  [Sec. 501. (a) The Secretary shall carry out a program of 
making grants from sums appropriated pursuant to section 
4(a)(4) to State and local public libraries for the acquisition 
of foreign language materials.
  [(b) Recipients of grants under this title shall be selected 
on a competitive basis.
  [(c) No grant under this title for any fiscal year shall 
exceed $35,000, except that--
          [(1) not more than 30 percent of the funds available 
        for grants under this title in any fiscal year may be 
        used to make grants in amounts between $35,000 and 
        $125,000; and
          [(2) no recipient may receive more than one grant 
        under this title for any fiscal year.

                  [TITLE VI--LIBRARY LITERACY PROGRAMS

                    [state and local library grants

  [Sec. 601. (a) The Secretary shall carry out a program of 
making grants from sums appropriated pursuant to section 
4(a)(5) to State and local public libraries for the purposes of 
supporting literacy programs.
  [(b) Grants to State public libraries under this title shall 
be for the purposes of--
          [(1) coordinating and planning library literacy 
        programs; and
          [(2) making arrangements for training librarians and 
        volunteers to carry out such programs.
  [(c) Grants to local public libraries shall be for the 
purposes of--
          [(1) promoting the use of the voluntary services of 
        individuals, agencies, and organizations in providing 
        literacy programs;
          [(2) acquisition of materials for literacy programs; 
        and
          [(3) using library facilities for such programs.
  [(d) Recipients of grants under this title shall be selected 
on a competitive basis.
  [(e) No grant under this title for any fiscal year shall 
exceed $35,000.
  [(f) In awarding grants under this section the Secretary 
shall give priority to programs and services which--
          [(1) will be delivered in areas of greatest need 
        which have highest concentrations of adults who do not 
        have a secondary education or its equivalent, and 
        which--
                  [(A) have few community or financial 
                resources to establish the program described 
                under this section without Federal assistance, 
                or
                  [(B) have low per capita income, unemployment 
                or underemployment; and
          [(2) coordinate with literacy organizations and 
        community based organizations providing literacy 
        services.

                 [TITLE VII--EVALUATION AND ASSESSMENT

                           [program authority

  [Sec. 701. The Secretary is authorized to carry out a program 
for the purpose of evaluation and assessment (directly or by 
grants or contracts) of programs authorized under this Act.
             [TITLE VIII--LIBRARY LEARNING CENTER PROGRAMS

                    [Part A--Family Learning Centers

                         [statement of purpose

  [Sec. 801. It is the purpose of this part to expand and 
improve opportunities for lifetime learning and the involvement 
of the Nation's families as partners in their children's 
education by providing comprehensive, family-oriented library 
services through Family Learning Centers.

                  [grants for family learning centers

  [Sec. 802. The Secretary shall carry out a program of making 
grants from sums appropriated pursuant to paragraph (7) of 
section 4(a) to local public libraries for the purposes of 
supporting family learning centers.

                             [use of funds

  [Sec. 803. (a) Funds made available to a grantee under this 
part shall be used to initiate, expand, or improve public 
library services to families.
  [(b) Not less than 25 percent of the funds made available 
under this part shall be used for the acquisition of resources 
and materials in print and electronic formats--
          [(1) which are intended for use by and with adults, 
        including materials in such areas as child care, child 
        development, nutrition, parenting skills, and job and 
        career information; and
          [(2) which are intended for use by and with children 
        and adolescents.
  [(c) Not less than 10 percent of the funds made available to 
a grantee under this part shall be used for--
          [(1) the acquisition or leasing of computer hardware 
        for use by library patrons, including services 
        necessary for the operation, installation, and 
        maintenance of such equipment; and
          [(2) the acquisition of computer software and 
        complementary explanatory material for use by library 
        patrons.

                              [application

  [Sec. 804. (a) Any local public library which wishes to 
receive a grant under this part shall submit an application to 
the Secretary at such time, in such form, and containing such 
information as the Secretary determines is necessary to 
evaluate the quality of the applicant's proposal and the 
applicant's ability to carry it out.
  [(b) Each such application shall--
          [(1) describe the manner in which the funds will be 
        used to initiate, expand, or improve library services 
        to families;
          [(2) provide assurances that the library will be open 
        on weekday evenings, Saturdays, and some Sundays and 
        legal public holidays to enable families in which both 
        parents work outside the home to utilize the library's 
        services;
          [(3) demonstrate that the library has or will have 
        sufficient qualified staff with specialized training in 
        providing library services to children, adolescents, 
        and adults;
          [(4) provide for the establishment of an advisory 
        committee consisting of parents, teachers, local school 
        administrators, librarians, library administrators, 
        library trustees, local elected officials, and business 
        leaders, at least one-third of whom are parents who 
        regularly use the services of the library;
          [(5) provide for the establishment of a family 
        library loan program through which families may borrow 
        sets of books for extended periods, and other 
        innovative programs and policies designed to encourage 
        greater use of the library by families;
          [(6) provide for a job and career information program 
        to provide information and assistance to parents and 
        others who are unemployed or seeking a new job;
          [(7) describe, if appropriate, any special services 
        and outreach activities which will be offered to meet 
        the needs of--
                  [(A) adolescent parents;
                  [(B) single-parent families;
                  [(C) families in which both parents are 
                employed outside the home;
                  [(D) parents and children with limited 
                English language proficiency; and
                  [(E) educationally disadvantaged adults and 
                their children;
          [(8) describe the methods by which the library will 
        publicize and promote the services of the Center in 
        cooperation with the local media, schools, businesses, 
        social service agencies, and other appropriate 
        entities; and
          [(9) provide assurances that the funds provided will 
        be used to supplement and not supplant funds otherwise 
        available for the purposes of this part.

                 [selection of family learning centers

  [Sec. 805. (a) The Secretary shall select family learning 
centers on a competitive basis from among the local public 
libraries submitting applications under section 804. In making 
such selection, the Secretary shall give priority to 
applications which--
          [(1) promise to serve a significant number of 
        families on a regular basis; and
          [(2) offer innovative approaches to improving library 
        services for families and approaches which show promise 
        for replication and dissemination.
  [(b) In making grants under this title, the Secretary shall 
assure that there is an equitable distribution of grants among 
the States and between urban and rural communities.
  [(c) No grant made under this title for any fiscal year shall 
exceed $200,000.

                    [authorization of appropriations

  [Sec. 806. There are authorized to be appropriated such sums 
as may be necessary for fiscal year 1995 to carry out this 
part.

                   [Part B--Library Literacy Centers

                         [statement of purpose

  [Sec. 811. The purposes of this part are to--
          [(1) establish model library literacy centers 
        throughout the country to serve as resource centers for 
        the dissemination of literacy materials and equipment 
        to local public libraries in order to help overcome the 
        high incidence of adults with limited literacy skills 
        in the United States;
          [(2) help adults with limited literacy skills reach 
        full employment through nonthreatening learning 
        experiences in their local public library or in their 
        own home; and
          [(3) offer innovative approaches to improving library 
        literacy services to adults and approaches which show 
        promise for replication and dissemination.

             [grants to states for library literacy centers

  [Sec. 812. (a) The Secretary shall carry out a program of 
making grants on a competitive basis to States which have an 
approved basic State plan under section 6 of this Act and an 
approved application under section 813 of this Act.
  [(b)(1) The total grant amount awarded to each State shall 
not exceed--
          [(A) $350,000 in the first fiscal year in which a 
        State receives a grant under this part; and
          [(B) $100,000 in the second and third fiscal years in 
        which a State receives a grant under this part.
  [(2) Funds received in the first fiscal year in which a State 
receives a grant under this part shall remain available until 
expended. Funds received in the second and third fiscal year in 
which a State receives a grant under this part shall be 
available only for the fiscal year for which funds are 
received.
  [(3) Funds received in the second and third fiscal years in 
which a State receives a grant under this part shall be 
matched, on a dollar for dollar basis, from non-Federal 
sources.

                           [state application

  [Sec. 813. (a) Funds appropriated pursuant to section 818 
shall be available for grants to States for the purpose of 
supporting not more than 1 library literacy center in each 
State to coordinate the state-wide distribution of library 
literacy materials and equipment on a loan basis to local 
public libraries within the State.
  [(b) Any State wishing to receive a grant shall, through its 
State library administrative agency, in conjunction with the 
advisory committee established under section 816, submit an 
application to the Secretary at such time, in such form, and 
containing such information and assurances as the Secretary may 
reasonably require. No application may be approved by the 
Secretary unless it contains assurances that the State will--
          [(1) designate the State library administrative 
        agency, or select a local public library through a 
        competitive process, to serve as a library literacy 
        center in accordance with the provisions of this part;
          [(2) provide assurances that the library literacy 
        center will--
                  [(A) select local public libraries to 
                participate in a literacy materials and 
                equipment loan program;
                  [(B) select at least 25 percent of the local 
                libraries that participate in the literacy 
                materials and equipment loan program from rural 
                areas;
                  [(C) give priority in the selection of local 
                public libraries to participate in the literacy 
                materials and equipment loan program to public 
                libraries within the State which serve those in 
                greatest need;
                  [(D) coordinate the distribution of equipment 
                and materials;
                  [(E) provide training to local public library 
                personnel;
          [(3) describe how the results of the grant program 
        will be evaluated and disseminated;
          [(4) set forth the potential of the grant program for 
        achieving replicability and for serving as a model 
        program; and
          [(5) distribute 100 percent of the amounts received 
        pursuant to this part to the library literacy center as 
        designated or selected under section 817.
  [(c) The Secretary shall give priority to applicants whose 
applications comply with the provisions of this part and 
describe programs and services to be delivered in States which 
have--
          [(1) the highest concentrations of adults who do not 
        have a secondary education or its equivalent,
          [(2)(A) few community or financial resources to 
        establish the program described under this part without 
        Federal assistance, or
          [(B) low per capita income, or high concentrations of 
        unemployment or underemployment.

                             [use of funds

  [Sec. 814. (a) Funds made available under this part shall be 
used by the library literacy centers to establish coordination 
centers to make literacy materials and equipment available to 
local public libraries on a loan basis to initiate, expand, or 
improve public library literacy services and programs. Such 
services and programs may include--
          [(1) the acquisition of literacy education equipment 
        including, but not limited to, video recorders and 
        television monitors;
          [(2) the acquisition of print materials, audio tapes 
        and video tapes designed to train adults with limited 
        literacy skills, including materials and tapes prepared 
        by public television;
          [(3) the acquisition of library resource materials 
        for literacy instruction purposes;
          [(4) the acquisition of literacy training materials 
        including but not limited to General Education 
        Development (GED) print materials and video tapes; and
          [(5) staffing for coordination and training of local 
        library personnel on literacy services.
  [(b) Each library literacy center receiving a grant under 
this part may use no more than 25 percent of such funds for the 
acquisition of literacy education computers and computer 
software.

                           [local application

  [Sec. 815. (a) Any local public library desiring to 
participate in programs and services conducted pursuant to this 
part shall submit an application to the State or the library 
literacy center as selected by the State under section 817 at 
such time, in such form, and containing such information as the 
State or the library literacy center determines is necessary to 
evaluate the quality of the local public library's proposal and 
the local public library's ability to carry out such proposal.
  [(b) Each such application shall--
          [(1) describe the manner in which the equipment and 
        materials will be used to initiate, expand, or improve 
        local library literacy services;
          [(2) demonstrate that the library has or will have 
        sufficient qualified staff and volunteers with 
        specialized training in providing library literacy 
        services to adults;
          [(3) provide for the establishment of--
                  [(A) a library literacy loan program through 
                which adults with limited literacy skills or 
                individuals helping illiterate adults to learn 
                to read may borrow books, video tapes, and 
                other learning materials;
                  [(B) other innovative programs and policies 
                designed to encourage greater use of the 
                library by adults with limited literacy skills 
                or individuals helping illiterate adults learn 
                to read;
          [(4) provide assurances that coordination will take 
        place with literacy organizations and community-based 
        organizations providing literacy services;
          [(5) provide job and career information to adults 
        with limited literacy skills who are unemployed or 
        seeking a new job;
          [(6) provide information or referrals to other adult 
        education opportunities in the community;
          [(7) describe, if appropriate, any special services 
        and outreach activities which will be offered to meet 
        the needs of adults with limited literacy skills;
          [(8) describe the methods by which the library will 
        publicize and promote the services of the library in 
        cooperation with the local media, schools, businesses, 
        social service agencies, and other appropriate 
        entities; and
          [(9) provide assurances that the materials, equipment 
        and training provided will be used to supplement and 
        not supplant materials, equipment and training 
        otherwise available for the purposes of this part.

                          [advisory committee

  [Sec. 816. Each State receiving a grant under this part shall 
establish an advisory committee to assist in coordinating the 
services and programs assisted under this part. Such committee 
shall consist of, but not be limited to, representatives of--
          [(1) the Governor's office;
          [(2) the State library administrative agency;
          [(3) the State Advisory Council on Libraries;
          [(4) the State department of education;
          [(5) the State employment office;
          [(6) public television; and
          [(7) adult literacy community organizations.

                [selection of literacy learning centers

  [Sec. 817. Each State receiving a grant under this part shall 
designate the State library administrative agency as the 
library literacy center or shall select a library literacy 
center on a competitive basis from among the local public 
libraries submitting applications under section 815. In making 
such selection, the State shall give priority to applications 
which--
          [(1) demonstrate the greatest ability to carry out 
        the requirements of section 813 and to serve other 
        local libraries; and
          [(2) offer innovative approaches to improving library 
        literacy services to adults and approaches which show 
        promise for replication and dissemination.

                    [authorization of appropriations

  [Sec. 818. There are authorized to be appropriated such sums 
as may be necessary for fiscal year 1995 to carry out this 
part.]

                      JOB TRAINING PARTNERSHIP ACT

  AN ACT To provide for a job training program and for other purposes.

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

                    short title[; table of contents]

  Section 1. This Act may be cited as the ``Job Training 
Partnership Act''.

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

                   [TITLE I--JOB TRAINING PARTNERSHIP

                    [Part A--Service Delivery System

[Sec. 101. Establishment of service delivery areas.
[Sec. 102. Establishment of private industry council.
[Sec. 103. Functions of private industry council.
[Sec. 104. Job training plan.
[Sec. 105. Review and approval of plan.
[Sec. 106. Performance standards.
[Sec. 107. Selection of service providers.
[Sec. 108. Limitation on certain costs.
[Sec. 109. Recapture and reallotment of unobligated funds.

               [Part B--Additional State Responsibilities

[Sec. 121. Governor's coordination and special services plan.
[Sec. 122. State job training coordinating council.
[Sec. 123. State education coordination and grants.
[Sec. 124. Identification of additional imposed requirements.
[Sec. 125. State labor market information programs.
[Sec. 126. Authority of State legislature.
[Sec. 127. Interstate agreements.

        [Part C--Program Requirements for Service Delivery System

[Sec. 141. General program requirements.
[Sec. 142. Benefits.
[Sec. 143. Labor standards.
[Sec. 144. Grievance procedure.
[Sec. 145. Prohibition against Federal control of education.

          [Part D--Federal and Fiscal Administrative Provisions

[Sec. 161. Program year.
[Sec. 162. Prompt allocation of funds.
[Sec. 163. Monitoring.
[Sec. 164. Fiscal controls; sanctions.
[Sec. 165. Reports, recordkeeping, and investigations.
[Sec. 166. Administrative adjudication.
[Sec. 167. Nondiscrimination.
[Sec. 168. Judicial review.
[Sec. 169. Administrative provisions.
[Sec. 170. Utilization of services and facilities.
[Sec. 171. Obligational authority.
[Sec. 172. Presidential awards for outstanding private sector 
          involvement in job training programs.
[Sec. 173. Construction.

                    [Part E--Miscellaneous Provisions

[Sec. 182. Criminal provisions.
[Sec. 183. Reference.
[Sec. 184. Repealers.

           [TITLE II--TRAINING SERVICES FOR THE DISADVANTAGED

                     [Part A--Adult Training Program

[Sec. 201. Statement of purpose.
[Sec. 202. Allotment and allocation.
[Sec. 203. Eligibility for services.
[Sec. 204. Program design.
[Sec. 205. Linkages.
[Sec. 206. Transfer of funds.

         [Part B--Summer Youth Employment and Training Programs

[Sec. 251. Purpose.
[Sec. 252. Authorization of appropriations; allotment and allocation.
[Sec. 253. Use of funds.
[Sec. 254. Limitations.
[Sec. 255. Applicable provisions.
[Sec. 256. Transfer of funds.

                     [Part C--Youth Training Program

[Sec. 261. Statement of purpose.
[Sec. 262. Allotment and allocation.
[Sec. 263. Eligibility for services.
[Sec. 264. Program design.
[Sec. 265. Linkages.
[Sec. 266. Transfer of funds.

  [TITLE III--EMPLOYMENT AND TRAINING ASSISTANCE FOR DISLOCATED WORKERS

[Sec. 301. Definitions.
[Sec. 302. Allotment.
[Sec. 303. Recapture and reallotment of unexpended funds.

                   [Part A--State Delivery of Services

[Sec. 311. State plan.
[Sec. 312. Substate grantees.
[Sec. 313. Substate plan.
[Sec. 314. Use of funds; services to be provided.
[Sec. 315. Limitations on uses of funds.
[Sec. 316. Retraining services availability.
[Sec. 317. Functions of State job training coordinating council.

                    [Part B--Federal Responsibilities

[Sec. 321. Federal administration.
[Sec. 322. Federal delivery of dislocated worker services.
[Sec. 323. Allowable activities.
[Sec. 324. Demonstration programs.
[Sec. 325. Defense conversion adjustment program.
[Sec. 325A. Defense Diversification Program.
[Sec. 326. Clean Air Employment Transition Assistance.

               [TITLE IV--FEDERALLY ADMINISTERED PROGRAMS

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

[Sec. 401. Native American programs.
[Sec. 402. Migrant and seasonal farmworker programs.
[Sec. 403. Grant procedures.
                           [Part B--Job Corps
[Sec. 421. Statement of purpose.
[Sec. 422. Establishment of the Job Corps.
[Sec. 423. Individuals eligible for the Job Corps.
[Sec. 424. Screening and selection of applicants: general provisions.
[Sec. 425. Screening and selection: special limitations.
[Sec. 426. Enrollment and assignment.
[Sec. 427. Job Corps centers.
[Sec. 428. Program activities.
[Sec. 429. Allowances and support.
[Sec. 430. Standards of conduct.
[Sec. 431. Community participation.
[Sec. 432. Counseling and job placement.
[Sec. 433. Experimental and developmental projects and coordination with 
          other programs.
[Sec. 433A. Job Corps centers for homeless families.
[Sec. 434. Advisory boards and committees.
[Sec. 435. Participation of the States.
[Sec. 436. Application of provisions of Federal law.
[Sec. 437. Special provisions.
[Sec. 438. General provisions.
[Sec. 439. Donations.
                 [Part C--Veterans' Employment Programs

[Sec. 441. Programs authorized.
                      [Part D--National Activities
[Sec. 451. National partnership and special training programs.
[Sec. 452. Research, demonstration, and evaluation.
[Sec. 453. Capacity building, information, dissemination, and 
          replication activities.
[Sec. 454. Guidance and technical assistance.
[Sec. 455. Uniform requirements.
[Sec. 456. Nontraditional employment demonstration program.

                    [Part E--Labor Market Information

[Sec. 461. Labor market information; availability of funds.
[Sec. 462. Cooperative labor market information program.
[Sec. 463. Special Federal responsibilities.
[Sec. 464. National occupational information coordinating committee.
[Sec. 465. Job bank program.

           [Part F--National Commission for Employment Policy

[Sec. 471. Statement of purpose.
[Sec. 472. Commission established.
[Sec. 473. Functions of the commission.
[Sec. 474. Administrative provisions.
[Sec. 475. Reports.
       [Part G--Training to Fulfill Affirmative Action Obligations
[Sec. 481. Affirmative action.

                   [Part H--Youth Fair Chance Program

[Sec. 491. Statement of purpose.
[Sec. 492. Program authorized.
[Sec. 493. Application.
[Sec. 494. Grant agreement.
[Sec. 495. Job guarantees.
[Sec. 496. Payments; Federal share.
[Sec. 497. Reporting.
[Sec. 498. Federal responsibilities.
[Sec. 498A. Definitions.

                 [Part I--Microenterprise Grants Program

[Sec. 499. Microenterprise grants.

             [Part J--Disaster Relief Employment Assistance

[Sec. 499A. General authority.
[Sec. 499B. Use of funds.
[Sec. 499C. Definitions.

  [TITLE V--JOBS FOR EMPLOYABLE DEPENDENT INDIVIDUALS INCENTIVE BONUS 
                                 PROGRAM

[Sec. 501. Statement of purpose.
[Sec. 502. Payments.
[Sec. 503. Amount of incentive bonus.
[Sec. 504. Use of incentive bonus funds.
[Sec. 505. Notice and application.
[Sec. 506. Eligibility for incentive bonuses.
[Sec. 507. Information and data collection.
[Sec. 508. Evaluation and report.
[Sec. 509. Implementing regulations.

                   [TITLE VI--MISCELLANEOUS PROVISIONS

[Sec. 601. Amendments to the Wagner-Peyser Act.
[Sec. 602. Amendments to part C of title IV of the Social Security Act.
[Sec. 603. Earnings disregard.
[Sec. 604. Enforcement of Military Selective Service Act.
[Sec. 605. State job bank systems.

           [TITLE VII--STATE HUMAN RESOURCE INVESTMENT COUNCIL

[Sec. 701. Establishment and functions.
[Sec. 702. Composition.
[Sec. 703. Administration.
                         [statement of purpose

  [Sec. 2. It is the purpose of this Act to establish programs 
to prepare youth and adults facing serious barriers to 
employment for participation in the labor force by providing 
job training and other services that will result in increased 
employment and earnings, increased educational and occupational 
skills, and decreased welfare dependency, thereby improving the 
quality of the work force and enhancing the productivity and 
competitiveness of the Nation.

                    [authorization of appropriations

  [Sec. 3. (a)(1) There are authorized to be appropriated to 
carry out parts A and C of title II such sums as may be 
necessary for fiscal year 1993 and for each succeeding fiscal 
year. Of the sums appropriated to carry out parts A and C of 
title II for each such fiscal year, an amount not less than 40 
percent of such sums shall be made available to carry out part 
A of such title and an amount not less than 40 percent of such 
sums shall be made available to carry out part C of such title.
  [(2) There are authorized to be appropriated to carry out 
part B of title II such sums as may be necessary for fiscal 
year 1993 and for each succeeding fiscal year.
  [(b) There are authorized to be appropriated to carry out 
title III (other than section 326 thereof)--
          [(1) $980,000,000 for fiscal year 1989; and
          [(2) such sums as may be necessary for each 
        succeeding fiscal year.
  [(c)(1) There are authorized to be appropriated to carry out 
parts A, C, D, E, F, and G of title IV for fiscal year 1993 and 
each succeeding fiscal year an amount equal to not more than 7 
percent of the total amount appropriated to carry out this Act 
for each such fiscal year.
  [(2) From the amount appropriated under paragraph (1) for any 
fiscal year, the Secretary--
          [(A) shall first reserve--
                  [(i) an amount of not less than 3.3 percent 
                of the amount available for parts A and C of 
                title II for such fiscal year to carry out 
                section 401; and
                  [(ii) an amount of not less than 3.2 percent 
                of the amount available for parts A and C of 
                title II for such fiscal year to carry out 
                section 402; and
          [(B) after making such reservations, shall reserve--
                  [(i) an amount equal to 7 percent of the 
                amount appropriated under paragraph (1) to 
                carry out part C of title IV;
                  [(ii) $15,000,000 to carry out section 453, 
                of which--
                          [(I) not less than 20 percent shall 
                        be used to carry out section 453(b);
                          [(II) not less than 20 percent shall 
                        be used to carry out section 453(c); 
                        and
                          [(III) $1,000,000 shall be used to 
                        carry out section 453(d);
                  [(iii) $6,000,000 to carry out subsections 
                (e) and (f) of section 462; and
                  [(iv) $2,000,000 to carry out part F of title 
                IV.
  [(3) There are authorized to be appropriated to carry out 
part H of title IV $100,000,000 for fiscal year 1993 and such 
sums as may be necessary for each of the fiscal years 1994 
through 1997.
  [(4) There are authorized to be appropriated to carry out 
part I of title IV $5,000,000 for each of the fiscal years 1993 
through 1997.
  [(5) There are authorized to be appropriated to carry out 
part J of title IV, $15,000,000 for fiscal year 1993 and such 
sums as may be necessary for each succeeding fiscal year.
  [(d) There are authorized to be appropriated $618,000,000 for 
fiscal year 1983, and such sums as may be necessary for each 
succeeding fiscal year, to carry out part B of title IV of this 
Act.
  [(e) There are authorized to be appropriated for each of 
fiscal years 1990 through 1996 such sums as may be necessary to 
carry out title V.
  [(f) The authorizations of appropriations contained in this 
section are subject to the program year provisions of section 
161.

                              [definitions

  [Sec. 4. For the purposes of this Act, the following 
definitions apply:
          [(1) The term ``academic credit'' means credit for 
        education, training, or work experience applicable 
        toward a secondary school diploma, a postsecondary 
        degree, or an accredited certificate of completion, 
        consistent with applicable State law and regulation and 
        the requirements of an accredited educational agency or 
        institution in a State.
          [(2) The term ``administrative entity'' means the 
        entity designated to administer a job training plan 
        under section 103(b)(1)(B).
          [(3) The term ``area of substantial unemployment'' 
        means any area of sufficient size and scope to sustain 
        programs under parts A and C of title II of this Act 
        and which has an average rate of unemployment of at 
        least 6.5 percent for the most recent twelve months as 
        determined by the Secretary. Determinations of areas of 
        substantial unemployment shall be made once each fiscal 
        year.
          [(4) The term ``chief elected official'' includes--
                  [(A) in the case of a State, the Governor;
                  [(B) in the District of Columbia, the mayor; 
                and
                  [(C) in the case of a service delivery area 
                designated under section 101(a)(4)(A)(iii), the 
                governing body.
          [(5) The term ``community-based organizations'' means 
        private nonprofit organizations which are 
        representative of communities or significant segments 
        of communities and which provide job training services 
        (for example, Opportunities Industrialization Centers, 
        the National Urban League, SER-Jobs for Progress, 
        United Way of America, Mainstream, the National Puerto 
        Rican Forum, National Council of La Raza, 70,001, Jobs 
        for Youth, the Association of Farmworker Opportunity 
        Programs, the Center for Employment Training, literacy 
        organizations, agencies or organizations serving older 
        individuals, organizations that provide service 
        opportunities, youth corps programs, organizations 
        operating career intern programs, neighborhood groups 
        and organizations, community action agencies, community 
        development corporations, vocational rehabilitation 
        organizations, rehabilitation facilities (as defined in 
        section 7(10) of the Rehabilitation Act of 1973), 
        agencies serving youth, agencies serving individuals 
        with disabilities, including disabled veterans, 
        agencies serving displaced homemakers, union-related 
        organizations, and employer-related nonprofit 
        organizations), and organizations serving 
        nonreservation Indians, as well as tribal governments 
        and Native Alaskan groups.
          [(6) Except as otherwise provided therein, the term 
        ``council'' means the private industry council 
        established under section 102.
          [(7) The term ``economic development agencies'' 
        includes local planning and zoning commissions or 
        boards, community development agencies, and other local 
        agencies and institutions responsible for regulating, 
        promoting, or assisting in local economic development.
          [(8) The term ``economically disadvantaged'' means an 
        individual who (A) receives, or is a member of a family 
        which receives, cash welfare payments under a Federal, 
        State, or local welfare program; (B) has, or is a 
        member of a family which has, received a total family 
        income for the six-month period prior to application 
        for the program involved (exclusive of unemployment 
        compensation, child support payments, and welfare 
        payments) which, in relation to family size, was not in 
        excess of the higher of (i) the official poverty line 
        (as defined by the Office of Management and Budget, and 
        revised annually in accordance with section 673(2) of 
        the Omnibus Budget Reconciliation Act of 1981 (42 
        U.S.C. 9902(2)), or (ii) 70 percent of the lower living 
        standard income level; (C) is receiving (or has been 
        determined within the 6-month period prior to the 
        application for the program involved to be eligible to 
        receive) food stamps pursuant to the Food Stamp Act of 
        1977; (D) qualifies as a homeless individual under 
        subsections (a) and (c) of section 103 of the Stewart 
        B. McKinney Homeless Assistance Act; (E) is a foster 
        child on behalf of whom State or local government 
        payments are made; or (F) in cases permitted by 
        regulations of the Secretary, is an individual with a 
        disability whose own income meets the requirements of 
        clause (A) or (B), but who is a member of a family 
        whose income does not meet such requirements.
          [(9) The term ``Governor'' means the chief executive 
        of any State.
          [(10)(A) The term ``individual with a disability'' 
        means any individual who has a physical or mental 
        disability which for such individual constitutes or 
        results in a substantial handicap to employment.
          [(B) The term ``individuals with disabilities'' means 
        more than one individual with a disability.
          [(11) The term ``Hawaiian native'' means any 
        individual any of whose ancestors were natives, prior 
        to 1778, of the area which now comprises the State of 
        Hawaii.
          [(12) The term ``institution of higher education'' 
        means any institution of higher education as that term 
        is defined in section 1201(a) of the Higher Education 
        Act of 1965.
          [(13) The term ``labor market area'' means an 
        economically integrated geographic area within which 
        individuals can reside and find employment within a 
        reasonable distance or can readily change employment 
        without changing their place of residence. Such areas 
        shall be identified in accordance with criteria used by 
        the Bureau of Labor Statistics of the Department of 
        Labor in defining such areas or similar criteria 
        established by a Governor.
          [(14) The term ``local educational agency'' means 
        such an agency as defined in section 521(22) of the 
        Carl D. Perkins Vocational Education Act.
          [(15) The term ``low-income level'' means $7,000 with 
        respect to income in 1969, and for any later year means 
        that amount which bears the same relationship to $7,000 
        as the Consumer Price Index for that year bears to the 
        Consumer Price Index for 1969, rounded to the nearest 
        $1,000.
          [(16) The term ``lower living standard income level'' 
        means that income level (adjusted for regional, 
        metropolitan, urban, and rural differences and family 
        size) determined annually by the Secretary based on the 
        most recent ``lower living family budget'' issued by 
        the Secretary.
          [(17) The term ``offender'' means any adult or 
        juvenile who is or has been subject to any stage of the 
        criminal justice process for whom services under this 
        Act may be beneficial or who requires assistance in 
        overcoming artificial barriers to employment resulting 
        from a record of arrest or conviction.
          [(18) The term ``postsecondary institution'' means an 
        institution of higher education as that term is defined 
        in section 481(a)(1) of the Higher Education Act of 
        1965.
          [(19) The term ``private sector'' means, for purposes 
        of the State job training councils and private industry 
        councils, persons who are owners, chief executives or 
        chief operating officers of private for-profit 
        employers and major nongovernmental employers, such as 
        health and educational institutions or other executives 
        of such employers who have substantial management or 
        policy responsibility.
          [(20) The term ``public assistance'' means Federal, 
        State, or local government cash payments for which 
        eligibility is determined by a needs or income test.
          [(21) The term ``Secretary'' means the Secretary of 
        Labor.
          [(22) The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, the Northern 
        Mariana Islands, American Samoa, the Federated States 
        of Micronesia, the Republic of the Marshall Islands, 
        and Palau.
          [(23) The term ``State educational agency'' means 
        such an agency as defined in section 14101 of the 
        Elementary and Secondary Education Act of 1965.
          [(24) The term ``supportive services'' means services 
        which are necessary to enable an individual eligible 
        for training under this Act, but who cannot afford to 
        pay for such services, to participate in a training 
        program funded under this Act. Such supportive services 
        may include transportation, health care, financial 
        assistance (except as a post-termination service), drug 
        and alcohol abuse counseling and referral, individual 
        and family counseling, special services, and materials 
        for individuals with disabilities, job coaches, child 
        care and dependent care, meals, temporary shelter, 
        financial counseling, and other reasonable expenses 
        required for participation in the training program and 
        may be provided in-kind or through cash assistance.
          [(25) The term ``unemployed individuals'' means 
        individuals who are without jobs and who want and are 
        available for work. The determination of whether 
        individuals are without jobs shall be made in 
        accordance with the criteria used by the Bureau of 
        Labor Statistics of the Department of Labor in defining 
        individuals as unemployed.
          [(26) The term ``unit of general local government'' 
        means any general purpose political subdivision of a 
        State which has the power to levy taxes and spend 
        funds, as well as general corporate and police powers.
          [(27)(A) The term ``veteran'' means an individual who 
        served in the active military, naval, or air service, 
        and who was discharged or released therefrom under 
        conditions other than dishonorable.
          [(B) The term ``disabled veteran'' means (i) a 
        veteran who is entitled to compensation under laws 
        administered by the Secretary of Veterans Affairs, or 
        (ii) an individual who was discharged or released from 
        active duty because of service-connected disability.
          [(C) The term ``recently separated veteran'' means 
        any veteran who applies for participation under any 
        title of this Act within 48 months of the discharge or 
        release from active military, naval, or air service.
          [(D) The term ``Vietnam era veteran'' means a veteran 
        any part of whose active military service occurred 
        between August 5, 1964, and May 7, 1975.
          [(28) The term ``vocational education'' has the 
        meaning provided in section 521(41) of the Carl D. 
        Perkins Vocational Education Act.
          [(29) The term ``displaced homemaker'' means an 
        individual who has been providing unpaid services to 
        family members in the home and who--
                  [(A) has been dependent either--
                          [(i) on public assistance and whose 
                        youngest child is within 2 years of 
                        losing eligibility under part A of 
                        title IV of the Social Security Act (42 
                        U.S.C. 601 et seq.); or
                          [(ii) on the income of another family 
                        member but is no longer supported by 
                        that income; and
                  [(B) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or 
                upgrading employment.
          [(30) The term ``nontraditional employment'' as 
        applied to women refers to occupations or fields of 
        work where women comprise less than 25 percent of the 
        individuals employed in such occupation or field of 
        work.
          [(31) The term ``basic skills deficient'' means, with 
        respect to an individual, that the individual has 
        English reading or computing skills at or below the 8th 
        grade level on a generally accepted standardized test 
        or a comparable score on a criterion-referenced test.
          [(32) The term ``case management'' means the 
        provision of a client-centered approach in the delivery 
        of services, designed to--
                  [(A) prepare and coordinate comprehensive 
                employment plans, such as service strategies, 
                for participants to ensure access to the 
                necessary training and supportive services, 
                using, where feasible, computer-based 
                technologies; and
                  [(B) provide job and career counseling during 
                program participation and after job placement.
          [(33) The term ``citizenship skills'' means skills 
        and qualities, such as teamwork, problem-solving 
        ability, self-esteem, initiative, leadership, 
        commitment to life-long learning, and an ethic of civic 
        responsibility, that are characteristic of productive 
        workers and good citizens.
          [(34) The term ``family'' means two or more persons 
        related by blood, marriage, or decree of court, who are 
        living in a single residence, and are included in one 
        or more of the following categories:
                  [(A) A husband, wife, and dependent children.
                  [(B) A parent or guardian and dependent 
                children.
                  [(C) A husband and wife.
          [(35) The term ``hard-to-serve individual'' means an 
        individual who is included in one or more of the 
        categories described in section 203(b) or subsection 
        (b) or (d) of section 263.
          [(36) The term ``JOBS'' means the Job Opportunities 
        and Basic Skills Training Program authorized under part 
        F of title IV of the Social Security Act (42 U.S.C. 681 
        et seq.).
          [(37) The term ``participant'' means an individual 
        who has been determined to be eligible to participate 
        in and who is receiving services (except post-
        termination services authorized under sections 
        204(c)(4) and 264(d)(5) and followup services 
        authorized under section 253(d)) under a program 
        authorized by this Act. Participation shall be deemed 
        to commence on the first day, following determination 
        of eligibility, on which the participant began 
        receiving subsidized employment, training, or other 
        services provided under this Act.
          [(38) The term ``school dropout'' means an individual 
        who is no longer attending any school and who has not 
        received a secondary school diploma or a certificate 
        from a program of equivalency for such a diploma.
          [(39) The term ``termination'' means the separation 
        of a participant who is no longer receiving services 
        (except post-termination services authorized under 
        sections 204(c)(4) and 264(d)(5) and followup services 
        authorized under section 253(d)) under a program 
        authorized by this Act.
          [(40) The term ``youth corps program'' means a 
        program, such as a conservation corps or youth service 
        program, that offers productive work with visible 
        community benefits in a natural resource or human 
        service setting and that gives participants a mix of 
        work experience, basic and life skills, education, 
        training, and supportive services.

                   [TITLE I--JOB TRAINING PARTNERSHIP

                    [Part A--Service Delivery System

                [establishment of service delivery areas

  [Sec. 101. (a)(1) The Governor shall, after receiving the 
proposal of the State job training coordinating council, 
publish a proposed designation of service delivery areas for 
the State each of which--
          [(A) is comprised of the State or one or more units 
        of general local government;
          [(B) will promote effective delivery of job training 
        services; and
          [(C)(i) is consistent with labor market areas or 
        standard metropolitan statistical areas, but this 
        clause shall not be construed to require designation of 
        an entire labor market area; or
          [(ii) is consistent with areas in which related 
        services are provided under other State or Federal 
        programs.
  [(2) The Council shall include in its proposal a written 
explanation of the reasons for designating each service 
delivery area.
  [(3) Units of general local government (and combinations 
thereof), business organizations, and other affected persons or 
organizations shall be given an opportunity to comment on the 
proposed designation of service delivery areas and to request 
revisions thereof.
  [(4)(A) The Governor shall approve any request to be a 
service delivery area from--
          [(i) any unit of general local government with a 
        population of 200,000 or more;
          [(ii) any consortium of contiguous units of general 
        local government with an aggregate population of 
        200,000 or more which serves a substantial part of one 
        or more labor market areas; and
          [(iii) any concentrated employment program grantee 
        for a rural area which served as a prime sponsor under 
        the Comprehensive Employment and Training Act.
  [(B) The Governor may approve a request to be a service 
delivery area from any unit of general local government or 
consortium of contiguous units of general local government, 
without regard to population, which serves a substantial 
portion of a labor market area.
  [(C) If the Governor denies a request submitted under 
subparagraph (A) and the entity making such request alleges 
that the decision of the Governor is contrary to the provisions 
of this section, such entity may appeal the decision to the 
Secretary, who shall make a final decision within 30 days after 
such appeal is received.
  [(b) The Governor shall make a final designation of service 
delivery areas within the State. Before making a final 
designation of service delivery areas for the State, the 
Governor shall review the comments submitted under subsection 
(a)(3) and requests submitted under subsection (a)(4).
  [(c)(1) In accordance with subsection (a), the Governor may 
redesignate service delivery areas no more frequently than 
every two years, except as provided for in sections 
106(j)(4)(B) and 164(b)(1)(B). Such redesignations shall be 
made not later than 4 months before the beginning of a program 
year.
  [(2) Subject to paragraph (1), the Governor shall make such a 
redesignation if a petition to do so is filed by an entity 
specified in subsection (a)(4)(A).
  [(3) The provisions of this subsection are subject to section 
105(c).

               [establishment of private industry council

  [Sec. 102. (a) There shall be a private industry council for 
every service delivery area established under section 101, to 
be selected in accordance with this subsection. Each council 
shall consist of--
          [(1) representatives of the private sector, who shall 
        constitute a majority of the membership of the council 
        and who shall be owners of business concerns, chief 
        executives or chief operating officers of 
        nongovernmental employers, or other private sector 
        executives who have substantial management or policy 
        responsibility;
          [(2) representatives of organized labor and 
        community-based organizations, who shall constitute not 
        less than 15 percent of the membership of the council; 
        and
          [(3) representatives of each of the following:
                  [(A) Educational agencies (which agencies 
                shall be representative of all educational 
                agencies in the service delivery area).
                  [(B) Vocational rehabilitation agencies.
                  [(C) Public assistance agencies.
                  [(D) Economic development agencies.
                  [(E) The public employment service.
  [(b) The Chairman of the council shall be selected from among 
members of the council who are representatives of the private 
sector.
  [(c)(1)(A) Private sector representatives on the council 
shall be selected from among individuals nominated by general 
purpose business organizations after consulting with, and 
receiving recommendations from, other business organizations in 
the service delivery area. The number of such nominations shall 
be at least 150 percent of the number of individuals to be 
appointed under subsection (a)(1). Such nominations, and the 
individuals selected from such nominations, shall reasonably 
represent the industrial and demographic composition of the 
business community. Whenever possible, at least one-half of 
such business and industry representatives shall be 
representatives of small business, including minority business.
  [(B) For the purpose of this paragraph, the term--
          [(i) ``general purpose business organizations'' means 
        organizations which admit to membership any for-profit 
        business operating within the service delivery area; 
        and
          [(ii) ``small business'' means private for-profit 
        enterprises employing 500 or fewer employees.
  [(2) The education representatives on the council shall be 
selected from among individuals nominated by regional or local 
educational agencies, vocational education institutions, 
institutions of higher education (including entities offering 
adult education) or general organizations of such institutions, 
within the service delivery area.
  [(3) The labor representatives on the council shall be 
selected from individuals recommended by recognized State and 
local labor federations. If the State or local labor federation 
fails to nominate a sufficient number of individuals to meet 
the labor representation requirements of subsection (a)(2), 
individual workers may be included on the council to complete 
the labor representation.
  [(4) The remaining members of the council shall be selected 
from individuals recommended by interested organizations.
  [(d)(1) In any case in which there is only one unit of 
general local government with experience in administering job 
training programs within the service delivery area, the chief 
elected official of that unit shall appoint members to the 
council from the individuals nominated or recommended under 
subsection (c).
  [(2) In any case in which there are two or more such units of 
general local government in the service delivery area, the 
chief elected officials of such units shall appoint members to 
the council from the individuals so nominated or recommended in 
accordance with an agreement entered into by such units of 
general local government. In the absence of such an agreement, 
the appointments shall be made by the Governor from the 
individuals so nominated or recommended.
  [(e) The initial number of members of the council shall be 
determined--
          [(1) by the chief elected official in the case 
        described in subsection (d)(1),
          [(2) by the chief elected officials in accordance 
        with the agreement in the case described in subsection 
        (d)(2), or
          [(3) by the Governor in the absence of such 
        agreement.
[Thereafter, the number of members of the council shall be 
determined by the council.
  [(f) Members shall be appointed for fixed and staggered terms 
and may serve until their successors are appointed. Any vacancy 
in the membership of the council shall be filled in the same 
manner as the original appointment. Any member of the council 
may be removed for cause in accordance with procedures 
established by the council.
  [(g) The Governor shall certify a private industry council if 
the Governor determines that its composition and appointments 
are consistent with the provisions of this subsection. Such 
certification shall be made or denied within 30 days after the 
date on which a list of members and necessary supporting 
documentation are submitted to the Governor. When the Governor 
certifies the council, it shall be convened within 30 days by 
the official or officials who made the appointments to such 
council under subsection (d).
  [(h) In any case in which the service delivery area is a 
State, the State job training coordinating council or a portion 
of such council may be reconstituted to meet the requirements 
of this section.

                 [functions of private industry council

  [Sec. 103. (a) It shall be the responsibility of the private 
industry council to provide policy guidance for, and exercise 
oversight with respect to, activities under the job training 
plan for its service delivery area in partnership with the unit 
or units of general local government within its service 
delivery area.
  [(b)(1) The council, in accordance with an agreement or 
agreements with the appropriate chief elected official or 
officials specified in subsection (c), shall--
          [(A) determine procedures for the development of the 
        job training plan, which may provide for the 
        preparation of all or any part of the plan (i) by the 
        council, (ii) by any unit of general local government 
        in the service delivery area, or by an agency thereof, 
        or (iii) by such other methods or institutions as may 
        be provided in such agreement; and
          [(B) select as a grant recipient and entity to 
        administer the job training plan (which may be separate 
        entities), (i) the council, (ii) a unit of general 
        local government in its service delivery area, or an 
        agency thereof, (iii) a nonprofit private organization 
        or corporation, or (iv) any other agreed upon entity or 
        entities.
  [(2) The council is authorized to provide oversight of the 
programs conducted under the job training plan in accordance 
with procedures established by the council. In order to carry 
out this paragraph, the council shall have access to such 
information concerning the operations of such programs as is 
necessary.
  [(c) For purposes of subsection (b), the appropriate chief 
elected official or officials means--
          [(1) the chief elected official of the sole unit of 
        general local government in the service delivery area,
          [(2) the individual or individuals selected by the 
        chief elected officials of all units of general local 
        government in such area as their authorized 
        representative, or
          [(3) in the case of a service delivery area 
        designated under section 101(a)(4)(A)(iii), the 
        representative of the chief elected official for such 
        area (as defined in section 4(4)(C)).
  [(d) No job training plan prepared under section 104 may be 
submitted to the Governor unless (1) the plan has been approved 
by the council and by the appropriate chief elected official or 
officials specified in subsection (c), and (2) the plan is 
submitted jointly by the council and such official or 
officials.
  [(e) In order to carry out its functions under this Act, the 
council--
          [(1) shall, in accordance with the job training plan, 
        prepare and approve a budget for itself, and
          [(2) may hire staff, incorporate, and solicit and 
        accept contributions and grant funds (from other public 
        and private sources).
  [(f) As used in this section, the term ``oversight'' means 
reviewing, monitoring, and evaluating.

                           [job training plan

  [Sec. 104. (a) No funds appropriated under title II for any 
fiscal year may be provided to any service delivery area under 
this Act except pursuant to a job training plan for two program 
years which is prepared in accordance with section 103 and 
which meets the requirements of this section.
  [(b) Each job training plan for the programs conducted under 
title II shall contain--
          [(1) an identification of the entity that will 
        administer the program and be the grant recipient of 
        funds from the State;
          [(2) if there is more than one service delivery area 
        in a single labor market area, provisions for 
        coordinating particular aspects of the service delivery 
        area program with other programs and service providers 
        in the labor market area, including provisions for--
                  [(A) assessing needs and problems in the 
                labor market that form the basis for program 
                planning;
                  [(B) ensuring access by program participants 
                in each service delivery area to skills 
                training and employment opportunities 
                throughout the entire labor market;
                  [(C) coordinating or jointly implementing job 
                development, placement, and other employer 
                outreach activities; and
                  [(D) entering into agreements and contracts, 
                established pursuant to section 141(e)(2), 
                between service delivery areas to pay or share 
                the cost of services;
          [(3) a description of methods of complying with the 
        coordination criteria contained in the Governor's 
        coordination and special services plan;
          [(4) a description of linkages established with 
        appropriate agencies, pursuant to sections 205 and 265, 
        designed to enhance the provision of services and avoid 
        duplication, including--
                  [(A) agreements with appropriate educational 
                agencies;
                  [(B) arrangements with other education, 
                training, and employment programs authorized by 
                Federal law;
                  [(C) if appropriate, joint programs in which 
                activities supported with assistance under this 
                Act are coordinated with activities (such as 
                service opportunities and youth corps programs) 
                supported with assistance made available under 
                the National and Community Service Act of 1990 
                (42 U.S.C. 12501 et seq.); and
                  [(D) efforts to ensure the effective delivery 
                of services to participants in coordination 
                with local welfare agencies and other local 
                agencies, community-based organizations, 
                volunteer groups, business and labor 
                organizations, and other training, education, 
                employment, and social service programs;
          [(5) goals and objectives for the programs, 
        including--
                  [(A) a description of the manner in which the 
                program will contribute to the economic self-
                sufficiency of participants, and the 
                productivity of the local area and the Nation; 
                and
                  [(B) performance standards established in 
                accordance with standards prescribed under 
                section 106;
          [(6) procedures for identifying and selecting 
        participants, including--
                  [(A) goals for the training and placement of 
                hard-to-serve individuals, and a description of 
                efforts to be undertaken to accomplish such 
                goals;
                  [(B) outreach efforts to recruit and expand 
                awareness of training and placement 
                opportunities for such individuals; and
                  [(C) types of services to be provided to 
                address the special needs of such individuals;
          [(7)(A) goals for--
                  [(i) the training of women in nontraditional 
                employment; and
                  [(ii) the training-related placement of women 
                in nontraditional employment and 
                apprenticeships; and
          [(B) a description of efforts to be undertaken to 
        accomplish the  goals  described  in  subparagraph  
        (A),  including  efforts to increase awareness of such 
        training and placement opportunities;
          [(8) adult and youth program budgets for 2 program 
        years and any proposed expenditures for the succeeding 
        2 program years;
          [(9) a description of--
                  [(A) the assessment process that will 
                identify participant skill levels;
                  [(B) the process for providing information 
                and referrals for applicants and participants 
                relating to appropriate programs and service 
                providers;
                  [(C) the services to be provided, including 
                the means for involving labor organizations and 
                community-based organizations in the provision 
                of services, the estimated duration of service, 
                and the estimated training cost per 
                participant;
                  [(D) the competency levels to be achieved by 
                participants as a result of program 
                participation; and
                  [(E) the procedures for evaluating the 
                progress of participants in achieving 
                competencies;
          [(10) a description of the procedures and methods of 
        carrying out title V, where applicable, relating to 
        incentive bonus payments for the placement of 
        individuals eligible under such title;
          [(11) procedures, consistent with sections 107 and 
        164, for selecting service providers, which procedures 
        shall take into account--
                  [(A) past performance of the providers 
                regarding--
                          [(i) job training, basic skills 
                        training, or related activities;
                          [(ii) fiscal accountability; and
                          [(iii) ability to meet performance 
                        standards; and
                  [(B) the ability of the providers to provide 
                services that can lead to achievement of 
                competency standards for participants with 
                identified deficiencies;
          [(12) fiscal control (including procurement, 
        monitoring, and management information system 
        requirements), accounting, audit, and debt collection 
        procedures, consistent with section 164, to assure the 
        proper disbursal of, and accounting for, funds received 
        under title II; and
          [(13) procedures for the preparation and submission 
        of an annual report to the Governor, which report shall 
        include--
                  [(A) a description of activities conducted 
                during the program year;
                  [(B) characteristics of participants;
                  [(C) information on the extent to which 
                applicable performance standards were met;
                  [(D) information on the extent to which the 
                service delivery area has met the goals of the 
                area for the training and training-related 
                placement of women in nontraditional employment 
                and apprenticeships; and
                  [(E) a statistical breakdown of women trained 
                and placed in nontraditional occupations, 
                including information regarding--
                          [(i) the type of training received, 
                        by occupation;
                          [(ii) whether the participant was 
                        placed in a job or apprenticeship, and, 
                        if so, the occupation and wage at 
                        placement;
                          [(iii) the age of the participant;
                          [(iv) the race of the participant; 
                        and
                          [(v) retention of the participant in 
                        nontraditional employment.
  [(c) If changes in labor market conditions, funding, or other 
factors require substantial deviation from an approved job 
training plan, the private industry council and the appropriate 
chief elected official or officials (as described in section 
103(c)) shall submit a modification of such plan (including 
modification of the budget under subsection (b)(6)), which 
shall be subject to review in accordance with section 105.

                      [review and approval of plan

  [Sec. 105. (a)(1) Not less than 120 days before the beginning 
of the first of the two program years covered by the job 
training plan--
          [(A) the proposed plan or summary thereof shall be 
        published; and
          [(B) such plan shall be made available for review and 
        comment to--
                  [(i) each house of the State legislature for 
                appropriate referral;
                  [(ii) appropriate community-based 
                organizations and local educational and other 
                public agencies in the service delivery area; 
                and
                  [(iii) labor organizations in the area which 
                represent employees having the skills in which 
                training is proposed; and
          [(C) such plan shall be reasonably available to the 
        general public through such means as public hearings 
        and local news facilities.
  [(2) The final plan, or a summary thereof, shall be published 
not later than 80 days before the first of the two program 
years and shall be submitted to the Governor in accordance with 
section 103(d)(2). Any modification shall be published not 
later than 80 days before it is effective and shall be 
submitted to the Governor in accordance with such section.
  [(b)(1) The Governor shall approve the job training plan or 
modification thereof unless he finds that--
          [(A) corrective measures for deficiencies found in 
        audits or in meeting performance standards from 
        previous years have not been taken or are not 
        acceptably underway;
          [(B) the entity proposed to administer the program 
        does not have the capacity to administer the funds;
          [(C) there are inadequate safeguards for the 
        protection of funds received;
          [(D) the plan (or modification) does not comply with 
        a particular provision or provisions of this Act or of 
        regulations of the Secretary under this Act; or
          [(E) the plan (or modification) does not comply with 
        the criteria under sections 121(b), 205, and 265 for 
        coordinating activities under this Act with related 
        program activities.
  [(2) The Governor shall approve or disapprove a job training 
plan (or modification) within 30 days after the date that the 
plan (or modification) is submitted, except that if a petition 
is filed under paragraph (3) such period shall be extended to 
45 days. Any disapproval by the Governor may be appealed to the 
Secretary, who shall make a final decision of whether the 
Governor's disapproval complies with paragraph (1) of this 
subsection within 45 days after receipt of the appeal.
  [(3)(A) Interested parties may petition the Governor within 
15 days of the date of submission for disapproval of the plan 
or modification thereof if--
          [(i) the party can demonstrate that it represents a 
        substantial client interest,
          [(ii) the party took appropriate steps to present its 
        views and seek resolution of disputed issues prior to 
        submission of the plan to the Governor, and
          [(iii) the request for disapproval is based on a 
        violation of statutory requirements.
  [(B) If the Governor approves the plan (or modification), the 
Governor shall notify the petitioner in writing of such 
decision and the reasons therefor.
  [(c)(1) If a private industry council and the appropriate 
chief elected official or officials fail to reach the agreement 
required under section 103 (b) or (d) and, as a consequence, 
funds for a service delivery area may not be made available 
under section 104, then the Governor shall redesignate, without 
regard to sections 101 (a)(4) and (c)(1), the service delivery 
areas in the State to merge the affected area into one or more 
other service delivery areas, in order to promote the reaching 
of agreement.
  [(2) In any State in which service delivery areas are 
redesignated under paragraph (1), private industry councils 
shall, to the extent necessary for the redesignation, be 
reconstituted and job training plans modified as required to 
comply with sections 102 and 103. Services under an approved 
plan shall not be suspended while the council is reconstituted 
and the plan is modified.
  [(d) In any case in which the service delivery area is a 
State, the plan (or modification) shall be submitted to the 
Secretary for approval. For the purpose of this subsection, the 
Secretary shall have the same authority as the Governor has 
under this section.

                [ H3  deg.performance standards

  [Sec. 106. (a) Findings.--The Congress recognizes that job 
training is an investment in human capital and not an expense. 
In order to determine whether that investment has been 
productive, the Congress finds that--
          [(1) it is essential that criteria for measuring the 
        return on this investment be developed; and
          [(2) the basic return on the investment is to be 
        measured by long-term economic self-sufficiency, 
        increased employment and earnings, reductions in 
        welfare dependency, and increased educational 
        attainment and occupational skills.
  [(b) Title II Performance Standards.--
          [(1) General objective.--In prescribing performance 
        standards for programs under parts A and C of title II, 
        the Secretary shall ensure that States and service 
        delivery areas will make efforts to increase services 
        and positive outcomes for hard-to-serve individuals.
          [(2) Achievement of basic measures.--In order to 
        determine whether the basic measures described in 
        subsection (a) are achieved for programs under parts A 
        and C of title II, the Secretary, in consultation with 
        the Secretary of Education and the Secretary of Health 
        and Human Services, shall prescribe performance 
        standards.
          [(3) Factors for adult standards.--The Secretary 
        shall base the performance standards for adult programs 
        under part A of title II on appropriate factors, which 
        may include--
                  [(A) placement in unsubsidized employment;
                  [(B) retention for not less than 6 months in 
                unsubsidized employment;
                  [(C) an increase in earnings, including 
                hourly wages;
                  [(D) a reduction in welfare dependency; and
                  [(E) acquisition of skills, including basic 
                skills, required to promote continued 
                employability in the local labor market 
                (including attainment of the competency levels 
                described in paragraph (5)), or acquisition of 
                a high school diploma or the equivalent of the 
                diploma, if the acquisition of such skills or 
                diploma is in addition to obtaining one or more 
                of the outcomes described in subparagraphs (A) 
                through (D).
          [(4) Factors for youth standards.--
                  [(A) In general.--The Secretary shall base 
                the performance standards for youth programs 
                under part C of title II on appropriate factors 
                described in paragraph (3), and on factors 
                including--
                          [(i) attainment of employment 
                        competencies (including attainment of 
                        the competency levels described in 
                        paragraph (5));
                          [(ii) dropout prevention and 
                        recovery;
                          [(iii) secondary and postsecondary 
                        school completion or the equivalent of 
                        such completion; and
                          [(iv) enrollment in other training 
                        programs, apprenticeships, or 
                        postsecondary education, or enlistment 
                        in the Armed Forces.
                  [(B) Variations.--The Secretary may prescribe 
                variations in the standards described in 
                subparagraph (A) to reflect the differences 
                between in-school and out-of-school programs.
          [(5) Competency levels.--The private industry 
        councils, in consultation with appropriate educational 
        agencies, and, where appropriate, the private sector, 
        labor organizations, and community-based organizations, 
        shall establish youth and adult competency levels, 
        based on such factors as entry level skills and other 
        hiring requirements.
          [(6) Requirements.--The performance standards 
        described in paragraphs (3) and (4) shall include 
        provisions governing--
                  [(A) the base period prior to program 
                participation that will be used for measurement 
                of the factors in such paragraphs, as 
                appropriate;
                  [(B) a representative period after 
                termination from the program that is a 
                reasonable indicator of postprogram employment, 
                earnings, and cash welfare payment reductions; 
                and
                  [(C) cost-effective methods for obtaining 
                such data as are necessary to carry out this 
                section and section 452(d) which, 
                notwithstanding any other provision of law, may 
                include access to earnings records, State 
                employment security records, records collected 
                under the Federal Insurance Contributions Act 
                (chapter 21 of the Internal Revenue Code of 
                1986), State aid to families with dependent 
                children records, statistical sampling 
                techniques, and similar records or measures, 
                with appropriate safeguards to protect the 
                confidentiality of the information obtained.
          [(7) Incentive grants.--From funds available under 
        section 202(c)(1)(B), and under section 262(c)(1)(B), 
        for providing incentive grants under this paragraph, 
        each Governor shall award incentive grants for programs 
        under parts A and C of title II, other than programs 
        under section 204(d), to service delivery areas that--
                  [(A) exceed the performance standards 
                established by the Secretary under this 
                subsection (except for the standards 
                established under paragraph (8)) with respect 
                to services to all participants;
                  [(B) exceed the performance standards 
                established by the Secretary under this 
                subsection (except for the standards 
                established under paragraph (8)) with respect 
                to services to populations of hard-to-serve 
                individuals;
                  [(C) serve more than the minimum percentage 
                of out-of-school youth required by section 
                263(f);
                  [(D) place participants in employment that--
                          [(i) provides post-program earnings 
                        exceeding the applicable performance 
                        criteria; and
                          [(ii) includes employer-assisted 
                        employment benefits, including health 
                        benefits, consistent with the 
                        requirements of section 143(a)(4) 
                        relating to subsidized employment; and
                  [(E) exceed the performance standards 
                established by the Governor under subsection 
                (e) for programs under title II, except that 
                not more than 25 percent of the incentive 
                grants shall be awarded on performance 
                standards established under subsection (e).
          [(8) Program expenditures.--The Secretary shall 
        prescribe performance  standards  relating  gross  
        program  expenditures to various performance measures 
        under this subsection, excluding any cost per 
        participant measure. The Governors shall not take 
        performance standards prescribed under this paragraph 
        into consideration in awarding incentive grants under 
        paragraph (7).
  [(c) Title III Performance Standards.--
          [(1) In general.--The Secretary shall prescribe 
        performance standards for programs under title III 
        based on placement and retention in unsubsidized 
        employment.
          [(2) Needs-related payments.--In prescribing 
        performance standards under paragraph (1), the 
        Secretary shall make appropriate allowance for the 
        difference in cost resulting from serving workers 
        receiving needs-related payments under section 314(e).
  [(d) State Variation of Performance Standards.--
          [(1) Authority of governor.--Each Governor shall 
        prescribe, and report in the Governor's coordination 
        and special services plan, within parameters 
        established by the Secretary, variations in the 
        standards issued under subsections (b) and (c) based 
        upon--
                  [(A) specific economic, geographic, and 
                demographic factors in the State and in service 
                delivery areas and substate areas within the 
                State;
                  [(B) the characteristics of the population to 
                be served;
                  [(C) the demonstrated difficulties in serving 
                the population; and
                  [(D) the type of services to be provided.
          [(2) Responsibilities of secretary.--The Secretary 
        shall--
                  [(A) provide information and technical 
                assistance on performance standards 
                adjustments;
                  [(B) collect data that identifies hard-to-
                serve individuals;
                  [(C) provide guidance on setting performance 
                standards at the service provider level that 
                encourages increased service to such 
                individuals; and
                  [(D) review performance standards to ensure 
                that such standards provide maximum incentive 
                in serving such individuals.
  [(e) Additional State Standards Permitted.--The Governor may 
prescribe performance standards for programs under title II and 
title III in addition to those standards established by the 
Secretary under subsections (b) and (c). Such additional 
standards may include criteria relating to establishment of 
effective linkages with other programs to avoid duplication and 
enhance the delivery of services, the provision of high quality 
services, and successful service to hard-to-serve individuals. 
The additional performance standards established for title II 
shall be reported in the Governor's coordination and special 
services plan.
  [(f) Title IV Standards.--The Secretary shall prescribe 
performance standards for programs under parts A and B of title 
IV.
  [(g) Adjustment for Special Populations.--The Secretary shall 
prescribe a system for variations in performance standards for 
special populations to be served, including Native Americans, 
migrant and seasonal farmworkers, disabled and Vietnam era 
veterans, including veterans who served in the Indochina 
Theater between August 5, 1964 and May 7, 1975, older 
individuals, including those served under section 204(d), and 
offenders, taking into account their special circumstances.
  [(h) Modifications.--
          [(1) In general.--The Secretary may modify the 
        performance standards under this section not more often 
        than once every 2 program years. Such modifications 
        shall not be retroactive.
          [(2) Job corps.--Notwithstanding paragraph (1), the 
        Secretary may modify standards relating to programs 
        under part B of title IV each program year.
  [(i) Functions of NCEP.--The National Commission for 
Employment Policy shall--
          [(1) advise the Secretary in the development of 
        performance standards under this section for measuring 
        results of participation in job training and in the 
        development of parameters for variations of such 
        standards referred to in subsection (d);
          [(2) evaluate the usefulness of such standards as 
        measures of desired performance; and
          [(3) evaluate the impact of such standards (intended 
        or otherwise) on the choice of who is served, what 
        services are provided, and the cost of such services in 
        service delivery areas.
  [(j) Failure To Meet Standards.--
          [(1) Uniform criteria.--The Secretary shall establish 
        uniform criteria for determining whether--
                  [(A) a service delivery area fails to meet 
                performance standards under this section; and
                  [(B) the circumstances under which remedial 
                action authorized under this subsection shall 
                be taken.
          [(2)  Technical assistance.--Each Governor shall 
        provide technical assistance to service delivery areas 
        failing to meet performance standards under the uniform 
        criteria established under paragraph (1)(A).
          [(3) Process for correction.--Not later than 90 days 
        after the end of each program year, each Governor shall 
        report to the Secretary the final performance standards 
        and performance for each service delivery area within 
        the State, along with the plans of the Governor for 
        providing the technical assistance required under 
        paragraph (2).
          [(4) Reorganization plan.--
                  [(A) Plan required for continued failure.--If 
                a service delivery area continues to fail to 
                meet such performance standards for 2 
                consecutive program years, the Governor shall 
                notify the Secretary and the service delivery 
                area of the continued failure, and shall 
                develop and impose a reorganization plan.
                  [(B) Elements.--Such plan may restructure the 
                private industry council, prohibit the use of 
                designated service providers, merge the service 
                delivery area into one or more other existing 
                service delivery areas, or make other changes 
                as the Governor determines to be necessary to 
                improve performance, including the selection of 
                an alternative administrative entity to 
                administer the program for the service delivery 
                area.
                  [(C) Alternative administrative entity 
                selection.--The alternative administrative 
                entity described in subparagraph (B) may be a 
                newly formed private industry council or any 
                agency jointly selected by the Governor and the 
                chief elected official of the largest unit of 
                general local government in the service 
                delivery area or substate area.
          [(5) Secretarial action.--
                  [(A) Plan.--If the Governor has not imposed a 
                reorganization plan as required by paragraph 
                (4) within 90 days of the end of the second 
                program year in which a service delivery area 
                has failed to meet its performance standards, 
                the Secretary shall develop and impose such a 
                plan.
                  [(B) Recapture or withholding.--The Secretary 
                shall recapture or withhold an amount not to 
                exceed one-fifth of the State administration 
                set-aside allocated under section 202(c)(1)(A) 
                and under section 262(c)(1)(A), for the 
                purposes of providing technical assistance 
                under a reorganization plan imposed pursuant to 
                subparagraph (A).
          [(6) Appeal by service delivery area.--
                  [(A) Timing.--A service delivery area that is 
                the subject of a reorganization plan under 
                paragraph (4) may, within 30 days after 
                receiving notice thereof, appeal to the 
                Secretary to rescind or revise such plan.
                  [(B) Recapture or withholding.--
                          [(i) Determination.--If the Secretary 
                        determines, upon appeal under 
                        subparagraph (A), that the Governor has 
                        not provided appropriate technical 
                        assistance as required under paragraph 
                        (2), the Secretary shall recapture or 
                        withhold an amount not to exceed one-
                        fifth of the State administration set-
                        aside allotted under section 
                        202(c)(1)(A) and under section 
                        262(c)(1)(A). The Secretary shall use 
                        funds recaptured or withheld under this 
                        subparagraph to provide appropriate 
                        technical assistance.
                          [(ii) Basis.--If the Secretary 
                        approved the technical assistance plan 
                        provided by the Governor under 
                        paragraph (2), a determination under 
                        this subparagraph shall only be based 
                        on failure to effectively implement 
                        such plan and shall not be based on the 
                        plan itself.
          [(7) Appeal by governor.--A Governor of a State that 
        is subject to recapture or withholding under paragraph 
        (5) or (6)(B) may, within 30 days of receiving notice 
        thereof, appeal such withholding to the Secretary.
  [(k) Clarification or Reference.--For the purposes of this 
section, the term ``employment'' means employment for 20 or 
more hours per week.

                    [selection of service providers

  [Sec. 107. (a) The primary consideration in selecting 
agencies or organizations to deliver services within a service 
delivery area shall be the effectiveness of the agency or 
organization in delivering comparable or related services based 
on demonstrated performance, (in accordance with guidelines 
established by the Secretary), in terms of the likelihood of 
meeting performance goals, cost, quality of training, and 
characteristics of participants. In addition, consideration 
shall be given to demonstrated performance in making available 
appropriate supportive services, including child care. In 
complying with this subsection, proper consideration shall be 
given to community-based organizations as service providers.
  [(b) Funds provided under this Act shall not be used to 
duplicate facilities or services available in the area (with or 
without reimbursement) from Federal, State, or local sources, 
unless it is demonstrated that alternative services or 
facilities would be more effective or more likely to achieve 
the service delivery area's performance goals.
  [(c) Appropriate education agencies in the service delivery 
area shall be provided the opportunity to provide educational 
services, unless the administrative entity demonstrates that 
alternative agencies or organizations would be more effective 
or would have greater potential to enhance the participants' 
continued occupational and career growth.
  [(d) The administrative entity shall not fund any 
occupational skills training program unless the level of skills 
provided in the program are in accordance with guidelines 
established by the private industry council.
  [(e) The selection of service providers shall be made on a 
competitive basis to the extent practicable, and shall 
include--
          [(1) a determination of the ability of the service 
        provider to meet program design specifications 
        established by the administrative entity that take into 
        account the purposes of the Act and the goals 
        established in the Governor's coordination and special 
        services plan; and
          [(2) documentation of compliance with procurement 
        standards established by the Governor under section 
        164, including the reasons for selection.

                      [limitation on certain costs

  [Sec. 108. (a) Except as provided in subparagraph (A) or (B) 
of section 141(d)(3), funds expended under this Act shall be 
charged to the appropriate cost categories.
  [(b)(1) The cost limitations contained in this subsection 
shall apply separately to the funds allocated for programs 
under part A of title II, and to the funds allocated for 
programs under part C of such title.
  [(2) Funds expended under parts A and C of title II shall be 
charged to one of the following categories:
          [(A) Administration.
          [(B) Training-related and supportive services.
          [(C) Direct training services.
  [(3) The Secretary shall, consistent with sections 204(b) and 
264(c), define by regulation the cost categories specified in 
paragraph (2).
  [(4) Of the funds allocated to a service delivery area for 
any program year under parts A or C of title II--
          [(A) not more than 20 percent shall be expended for 
        administration; and
          [(B) not less than 50 percent shall be expended for 
        direct training services.
  [(5) Each service delivery area shall ensure that for all 
services provided to participants through contracts, grants, or 
other agreements with a service provider, such contract, grant, 
or agreement shall include appropriate amounts necessary for 
administration and supportive services.
  [(6) For purposes of paragraph (4), the term ``allocated'' 
means allocated for a program year, as adjusted for 
reallocations and reallotments under section 109 and for 
transfers of funds under sections 206, 256, and 266.
  [(c) Funds available under title III shall be expended in 
accordance with the limitations specified in section 315.
  [(d) The provisions of this section do not apply to any 
service delivery area designated pursuant to section 
101(a)(4)(A)(iii).
  [(e) This section shall not be construed to exempt programs 
under an approved plan from the performance standards 
established under section 106.

   [ H3  deg.recapture and reallotment of unobligated funds

  [Sec. 109. (a) Within State Reallocations.--
          [(1) In general.--For program years beginning on or 
        after July 1, 1993, the Governor shall, in accordance 
        with the requirements of this subsection, reallocate to 
        eligible service delivery areas within the State funds 
        appropriated for such program year that are available 
        for reallocation.
          [(2) Amount.--The amount available for reallocation 
        is equal to the amount by which the unobligated balance 
        of the service delivery area allocation under part A or 
        C of title II for all service delivery areas within the 
        State at the end of the program year prior to the 
        program year for which the determination under this 
        subsection is made exceeds 15 percent of such 
        allocation for the prior program year.
          [(3) Reallocation.--The Governor shall reallocate the 
        amounts available pursuant to paragraph (2) to eligible 
        service delivery areas within the State that have the 
        highest rates of unemployment for an extended period of 
        time and to those with the highest poverty rates.
          [(4) Eligibility.--For purposes of this subsection, 
        an eligible service delivery area means a service 
        delivery area that has obligated at least 85 percent of 
        its allocation under part A or C of title II, 
        respectively, for the program year prior to the program 
        year for which the determination under this subsection 
        is made.
  [(b) Reallotment Among States.--
          [(1) In general.--For program years beginning on or 
        after July 1, 1993, the Secretary shall, in accordance 
        with the requirements of this subsection, reallot to 
        eligible States funds appropriated for such program 
        year that are available for reallotment.
          [(2) Amount.--The amount available for reallotment is 
        equal to the amount by which the unobligated balance of 
        the State allotment under part A or C of title II, 
        respectively, for all States at the end of the program 
        year prior to the program year for which the 
        determination under this subsection is made exceeds 15 
        percent of such allotment for that prior program year.
          [(3) Reallotment.--The Secretary shall reallot the 
        amounts available pursuant to paragraph (2) to each 
        eligible State an amount based on the relative amount 
        allotted to such eligible State under part A or C of 
        title II, respectively, for the program year the 
        determination under this subsection is made compared to 
        the total amount allotted to all eligible States under 
        part A or C of title II, respectively, for such program 
        year.
          [(4) Eligibility.--For purposes of this subsection, 
        an eligible State means a State that has obligated at 
        least 85 percent of its allocation under part A or C of 
        title II, respectively, for the program year prior to 
        the program year for which the determination under this 
        subsection is made.
          [(5) Procedures.--The Governor of each State shall 
        prescribe uniform procedures for the obligation of 
        funds by service delivery areas within the State in 
        order to avoid the requirement that funds be made 
        available for reallotment under this subsection. The 
        Governor shall further prescribe equitable procedures 
        for making funds available from the State and service 
        delivery areas in the event that a State is required to 
        make funds available for reallotment under this 
        subsection.
  [(d) Calculation.--Funds obligated to carry out programs 
under section 204(d) shall not be counted in determining the 
amount available for reallocation under subsection (a)(2) or 
the amount available for reallotment under subsection 
(b)(2). deg.


               [Part B--Additional State Responsibilities

           [governor's coordination and special services plan

  [Sec. 121. (a)(1) The Governor shall annually prepare a 
statement of goals and objectives for job training and 
placement programs within the State to assist in the 
preparation of the plans required under section 104 of this Act 
and section 8 of the Act of June 6, 1933 (known as the Wagner-
Peyser Act).
  [(2) Any State seeking financial assistance under this Act 
shall submit a Governor's coordination and special services 
plan for two program years to the Secretary describing the use 
of all resources provided to the State and its service delivery 
areas under this Act and evaluating the experience over the 
preceding two years.
  [(b)(1) The plan shall establish criteria for coordinating 
activities under this Act (including title III) with programs 
and services provided by State and local education and training 
agencies (including vocational education agencies), public 
assistance agencies, the employment service, rehabilitation 
agencies, postsecondary institutions, economic development 
agencies, programs for the homeless and such other agencies as 
the Governor determines to have a direct interest in employment 
and training and human resource utilization within the State. 
Such criteria shall not affect local discretion concerning the 
selection of eligible participants or service providers in 
accordance with the provisions of sections 107, 203, or 263.
  [(2) The plan shall describe the measures taken by the State 
to ensure coordination and avoid duplication between the State 
agencies administering the JOBS program and programs under 
title II in the planning and delivery of services. The plan 
shall describe the procedures developed by the State to ensure 
that the State JOBS plan is consistent with the coordination 
criteria specified in this plan and identify the procedures 
developed to provide for the review of the JOBS plan by the 
State Job Training Coordinating Council.
  [(3) The plan shall describe the projected use of resources, 
including oversight of program performance, program 
administration, and program financial management, capacity 
building, priorities and criteria for State incentive grants, 
and performance goals for State-supported programs. The 
description of capacity building shall include the Governor's 
plans for technical assistance to service delivery areas and 
service providers, interstate technical assistance and training 
arrangements, other coordinated technical assistance 
arrangements undertaken pursuant to the direction of the 
Secretary, and, where applicable, research and demonstration 
projects.
          [(4) The plan shall include goals for--
                  [(A) the training of women in nontraditional 
                employment through funds available under the 
                Job Training Partnership Act, the Carl D. 
                Perkins Vocational and Applied Technology 
                Education Act, and other sources of Federal and 
                State support;
                  [(B) the training-related placement of women 
                in nontraditional employment and 
                apprenticeships;
                  [(C) a description of efforts to be 
                undertaken to accomplish such goals, including 
                efforts to increase awareness of such training 
                and placement opportunities; and
                  [(D) a description of efforts to coordinate 
                activities provided pursuant to the Job 
                Training Partnership Act and the Carl D. 
                Perkins Vocational and Applied Technology 
                Education Act to train and place women in 
                nontraditional employment.
  [(5) The State plan shall include a description of the manner 
in which the State will encourage the successful carrying out 
of--
          [(A) training activities for eligible individuals 
        whose placement is the basis for the payment to the 
        State of the incentive bonus authorized by title V; and
          [(B) the training services, outreach activities, and 
        preemployment supportive services furnished to such 
        individuals.
  [(6) The Governor shall report to the Secretary the 
adjustments made in the performance standards and the factors 
that are used in making the adjustments.
  [(7) If major changes occur in labor market conditions, 
funding, or other factors during the two-year period covered by 
the plan, the State shall submit a modification to the 
Secretary describing these changes.
  [(c) Governor's coordination and special services activities 
may include--
          [(1) making available to service delivery areas, with 
        or without reimbursement and upon request, appropriate 
        information and technical assistance to assist in 
        developing and implementing plans and programs;
          [(2) carrying out special model training and 
        employment programs and related services (including 
        programs receiving financial assistance from private 
        sources);
          [(3) providing programs and related services for 
        offenders, homeless individuals and other individuals 
        whom the Governor determines require special 
        assistance;
          [(4) providing financial assistance for special 
        programs and services designed to meet the needs of 
        rural areas outside major labor market areas;
          [(5) providing training opportunities in the 
        conservation and efficient use of energy, and the 
        development of solar energy sources as defined in 
        section 3 of the Solar Energy Research, Development and 
        Demonstration Act of 1974;
          [(6) industry-wide training;
          [(7) coordination of activities relating to part A of 
        title II with activities under title III of this Act;
          [(8) developing and providing to service delivery 
        areas information on a State and local area basis 
        regarding economic, industrial, and labor market 
        conditions;
          [(9) providing programs and related services to 
        encourage the recruitment of women for training, 
        placement, and retention in nontraditional employment;
          [(10) providing preservice and inservice training for 
        planning, management, and delivery staffs of 
        administrative entities and private industry councils, 
        as well as contractors for State supported programs;
          [(11) providing statewide programs which provide for 
        joint funding of activities under this Act with 
        services and activities under other Federal, State, or 
        local employment-related programs, including programs 
        of the Department of Veterans Affairs; and
          [(12) making available to service delivery areas 
        appropriate information and technical assistance to 
        assist in developing and  implementing  joint  
        programs,  including  youth  corps programs, in which 
        activities supported under this Act are coordinated 
        with activities supported under the National and 
        Community Service Act of 1990 (42 U.S.C. 12501 et 
        seq.).
  [(d) A Governor's coordination and special services plan 
shall be approved by the Secretary unless the Secretary 
determines that the plan does not comply with specific 
provisions of this Act.

                [state job training coordinating council

  [Sec. 122. (a)(1) Except as provided in subsection (d), any 
State which desires to receive financial assistance under this 
Act shall establish a State job training coordinating council 
(hereinafter in this section referred to as the ``State 
council''). Funding for the council shall be provided pursuant 
to sections 202(c)(1)(A) and 262(c)(1)(A).
  [(2) The State council shall be appointed by the Governor, 
who shall designate one nongovernmental member thereof to be 
chairperson. In making appointments to the State council, the 
Governor shall ensure that the membership of the State council 
reasonably represents the population of the State.
  [(3) The State job training coordinating council shall be 
composed as follows:
          [(A) Thirty percent of the membership of the State 
        council shall be representatives of business and 
        industry (including agriculture, where appropriate) 
        including individuals who are representatives of 
        business and industry on private industry councils 
        within the State.
          [(B) Thirty percent of the membership of the State 
        council shall be--
                  [(i) representatives of the State legislature 
                and State agencies and organizations, such as 
                the State educational agency, the State 
                vocational education board, the State advisory 
                council on vocational education, the State 
                board of education (when not otherwise 
                represented), State public assistance agencies, 
                the State employment security agency, the State 
                rehabilitation agency, the State occupational 
                information coordinating committee, State 
                postsecondary institutions, the State economic 
                development agency, State veterans' affairs 
                agencies or equivalent, and such other agencies 
                as the Governor determines to have a direct 
                interest in employment and training and human 
                resource utilization within the State; and
                  [(ii) representatives of the units or 
                consortia of general local government in the 
                State who shall be nominated by the chief 
                elected officials of the units or consortia of 
                units of general local government, and the 
                representatives of local educational agencies 
                who shall be nominated by local educational 
                agencies.
          [(C) Thirty percent of the membership of the State 
        council shall be representatives of organized labor and 
        representatives of community-based organizations in the 
        State.
          [(D) Ten percent of the membership of the State 
        council shall be appointed from the general public by 
        the Governor of the State.
  [(4) The State council shall meet at such times and in such 
places as it deems necessary. The meetings shall be publicly 
announced, and, to the extent appropriate, open and accessible 
to the general public.
  [(5) The State council is authorized to obtain the services 
of such professional, technical, and clerical personnel as may 
be necessary to carry out its functions under this Act.
  [(6) In order to assure objective management and oversight, 
the State council shall not operate programs or provide 
services directly to eligible participants, but shall exist 
solely to plan, coordinate, and monitor the provision of such 
programs and services.
  [(7) The plans and decisions of the State council shall be 
subject to approval by the Governor.
  [(b) The State council shall--
          [(1) recommend a Governor's coordination and special 
        services plan;
          [(2) recommend to the Governor substate service 
        delivery areas, plan resource allocations not subject 
        to section 202(b) or 262(b), provide management 
        guidance and review for all programs in the State, 
        develop appropriate linkages with other programs, 
        coordinate activities with private industry councils, 
        and develop the Governor's coordination and special 
        services plan and recommend variations in performance 
        standards;
          [(3) advise the Governor and local entities on job 
        training plans and certify the consistency of such 
        plans with criteria under the Governor's coordination 
        and special services plan for coordination of 
        activities under this Act with other Federal, State, 
        and local employment-related programs, including 
        programs operated in designated enterprise zones;
          [(4) review the operation of programs conducted in 
        each service delivery area, and the availability, 
        responsiveness, and adequacy of State services, and 
        make recommendations to the Governor, appropriate chief 
        elected officials, and private industry councils, 
        service providers, the State legislature, and the 
        general public with respect to ways to improve the 
        effectiveness of such programs or services;
          [(5) review the reports made pursuant to 
        subparagraphs (D) and (E) of section 104(b)(12) and 
        make recommendations for technical assistance and 
        corrective action, based on the results of such 
        reports;
          [(6) prepare a summary of the reports made pursuant 
        to subparagraphs (D) and (E) of section 104(b)(12) 
        detailing promising service delivery approaches 
        developed in each service delivery area for the 
        training and placement of women in nontraditional 
        occupations, and disseminate annually such summary to 
        service delivery areas, service providers throughout 
        the State, and the Secretary;
          [(7) review the activities of the Governor to train, 
        place, and retain women in nontraditional employment, 
        including activities under section 123, prepare a 
        summary of activities and an analysis of results, and 
        disseminate annually such summary to service delivery 
        areas, service providers throughout the State, and the 
        Secretary;
          [(8) consult with the sex equity coordinator 
        established under section 111(b) of the Carl D. Perkins 
        Vocational and Applied Technology Education Act, obtain 
        from the sex equity coordinator a summary of activities 
        and an analysis of results in training women in 
        nontraditional employment under the Carl D. Perkins 
        Vocational and Applied Technology Education Act, and 
        disseminate annually such summary to service delivery 
        areas, service providers throughout the State, and the 
        Secretary;
          [(9) review and comment on the State plan developed 
        for the State employment service agency;
          [(10) make an annual report to the Governor which 
        shall be a public document, and issue such other 
        studies, reports, or documents as it deems advisable to 
        assist service delivery areas in carrying out the 
        purposes of this Act;
          [(11)(A) identify, in coordination with the 
        appropriate State agencies, the employment and training 
        and vocational education needs throughout the State, 
        and assess the extent to which employment and training, 
        vocational education, rehabilitation services, public 
        assistance, economic development, and other Federal, 
        State, and local programs and services represent a 
        consistent, integrated, and coordinated approach to 
        meeting such needs; and
          [(B) comment at least once annually on the measures 
        taken pursuant to section 113(b)(14) of the Carl D. 
        Perkins Vocational Education Act; and
          [(12) review plans of all State agencies providing 
        employment, training, and related services, and provide 
        comments and recommendations to the Governor, the State 
        legislature, the State agencies, and the appropriate 
        Federal agencies on the relevancy and effectiveness of 
        employment and training and related service delivery 
        systems in the State.
  [(c) In addition to the functions described in subsection 
(b), the Governor may, to the extent permitted by applicable 
law, transfer functions which are related to functions under 
this Act to the council established under this section from any 
State coordinating committee for the work incentive program 
under title IV of the Social Security Act or any advisory 
council established under the Wagner-Peyser Act.
  [(d)(1) In lieu of establishing the State council required 
under subsection (a), each State may satisfy the requirements 
of this section by designating the State human resource 
investment council established in accordance with title VII (in 
this subsection referred to as the ``State Council'') to carry 
out the duties described in subsection (b).
  [(2) Funding provided to carry out this section may be 
allotted to the State Council to carry out such functions and 
the other functions of the State Council if the Governor and 
the head of the State agency responsible for administration of 
programs under this Act agree to such an allotment.

                [state education coordination and grants

  [Sec. 123. (a) Allotment.--
          [(1) In general.--The Secretary shall allot to the 
        Governor for allocation to any State education agency 
        the sums made available to carry out this section under 
        sections 202(c)(1)(C) and 262(c)(1)(C) to pay for the 
        Federal share of carrying out the projects described in 
        paragraph (2). In allocating such funds to the State 
        education agency, the Governor shall not establish 
        requirements governing the geographic distribution of 
        funds under this section.
          [(2) Projects.--Funds allocated under paragraph (1) 
        may be used to pay for the Federal share of carrying 
        out projects (in accordance with agreements under 
        subsection (b)) that--
                  [(A) provide school-to-work transition 
                services of demonstrated effectiveness that 
                increase the rate of graduation from high 
                school, or completion of the recognized 
                equivalent thereof, including services that 
                increase the rate at which school dropouts 
                return to regular or alternative schooling and 
                obtain a high school degree or its equivalent, 
                and, which may include, services to support 
                multiyear dropout prevention programs of 
                demonstrated effectiveness;
                  [(B) provide literacy and lifelong learning 
                opportunities and services of demonstrated 
                effectiveness that--
                          [(i) enhance the knowledge and skills 
                        of educationally and economically 
                        disadvantaged individuals; and
                          [(ii) result in increasing the 
                        employment and earnings of such 
                        individuals;
                  [(C) provide statewide coordinated 
                approaches, including model programs, to train, 
                place, and retain women in nontraditional 
                employment; and
                  [(D)(i) facilitate coordination of education 
                and training services for eligible participants 
                in projects described in subparagraphs (A), 
                (B), and (C); or
                  [(ii)(I) support activities pertaining to a 
                State human resources investment council that 
                meets the requirements of title VII and 
                includes each of the programs described in 
                clauses (i) through (vii) of section 
                701(b)(2)(A); or
                  [(II) support activities pertaining to a 
                State council, which carries out functions 
                similar to the functions of the State  human  
                resource  investment  council  described  in 
                title VII, if such State council was 
                established prior to July 1, 1992.
          [(3) Federal share.--The Federal share of the cost of 
        carrying out the projects described in paragraph (2) 
        shall be 50 percent.
  [(b) Agreements Required.--
          [(1) Parties to agreements.--The projects described 
        in subsection (a)(2) shall be conducted within a State 
        in accordance with agreements that--
                  [(A) reflect the goals and services described 
                in paragraphs (1), (2), and (3) of subsection 
                (c); and
                  [(B) are developed between the State 
                education agency, administrative entities in 
                service delivery areas in the State, and other 
                entities, such as other State agencies, local 
                educational agencies, and alternative service 
                providers (such as community-based and other 
                nonprofit or for-profit organizations).
          [(2) Contents of agreements.--
                  [(A) Contribution.--The agreements described 
                in paragraph (1) shall provide for the 
                contribution by the State, from funds other 
                than the funds made available under this Act, 
                of a total amount equal to the funds allotted 
                under this section.
                  [(B) Direct cost of services.--Such amount 
                may include the direct cost of employment or 
                training services--
                          [(i) provided by State or local 
                        programs or agencies; or
                          [(ii) provided by other Federal 
                        programs or agencies in accordance with 
                        applicable Federal law.
  [(c) Governor's Plan Requirements.--The State education 
agency shall submit for inclusion in the Governor's 
coordination and special services plan a description developed 
jointly by the State education agency and the Governor of--
          [(1) the goals to be achieved and services to be 
        provided by the school-to-work transition programs 
        specified in subsection (a)(2)(A) that will receive the 
        assistance, which description shall, at a minimum, 
        include information regarding--
                  [(A) the activities and services that will 
                result in increasing the number of youth 
                staying in or returning to school and 
                graduating from high school or the equivalent;
                  [(B) the work-based curriculum that will link 
                classroom learning to work site experience and 
                address the practical and theoretical aspects 
                of work;
                  [(C) the opportunities that will be made 
                available to participants to obtain career-path 
                employment and postsecondary education;
                  [(D) the integration to be achieved, in 
                appropriate circumstances, in the delivery of 
                services between State and local educational 
                agencies and alternative service providers, 
                such as community-based and nonprofit 
                organizations; and
                  [(E) the linkages that will be established, 
                where feasible, to avoid duplication and 
                enhance the delivery of services, with programs 
                under--
                          [(i) title II and part B of title IV;
                          [(ii) the Elementary and Secondary 
                        Education Act (20 U.S.C. 2701 et seq.);
                          [(iii) the Carl D. Perkins Vocational 
                        and Applied Technology Education Act 
                        (20 U.S.C. 2301 et seq.);
                          [(iv) the Individuals with 
                        Disabilities Education Act (20 U.S.C. 
                        1400 et seq.);
                          [(v) the Adult Education Act (20 
                        U.S.C. 1201 et seq.);
                          [(vi) the JOBS program;
                          [(vii) the Stewart B. McKinney 
                        Homeless Assistance Act (Public Law 
                        100-77; 101 Stat. 482); and
                          [(viii) the National and Community 
                        Service Act of 1990 (42 U.S.C. 12501 et 
                        seq.);
          [(2) the goals to be achieved and services to be 
        provided by literacy and lifelong learning programs 
        specified in subsection (a)(2)(B) that will receive the 
        assistance, which description shall, at a minimum, 
        include information regarding--
                  [(A) the activities and services that will 
                increase the knowledge and skills of 
                educationally and economically disadvantaged 
                individuals, and result in increased employment 
                and earnings for such individuals;
                  [(B) the integration to be achieved between 
                projects assisted under this section and the 4-
                year State plan (and related needs assessment 
                carried out for the plan) developed in 
                accordance with section 342 of the Adult 
                Education Act (20 U.S.C. 1206a);
                  [(C) the variety of settings, including 
                workplace settings, in which literacy training 
                and learning opportunities will be provided; 
                and
                  [(D) the linkages that will be established, 
                where feasible, to avoid duplication and 
                enhance the delivery of services, with programs 
                under--
                          [(i) titles II and III;
                          [(ii) the Adult Education Act;
                          [(iii) the Carl D. Perkins Vocational 
                        and Applied Technology Education Act;
                          [(iv) the Stewart B. McKinney 
                        Homeless Assistance Act;
                          [(v) the JOBS program;
                          [(vi) the Rehabilitation Act of 1973 
                        (29 U.S.C. 701 et seq.);
                          [(vii) the National Literacy Act of 
                        1991 (Public Law 102-73);
                          [(viii) the Emergency Immigrant 
                        Education Act of 1984 (20 U.S.C. 3121 
                        et seq.); and
                          [(ix) the National and Community 
                        Service Act of 1990;
          [(3) the goals to be achieved and services to be 
        provided by the nontraditional employment for women 
        programs specified in subsection (a)(2)(C) that will 
        receive the assistance; and
          [(4) the proportion of funds received under this 
        section that will be used to achieve the goals, and 
        provide the services, described in paragraphs (1), (2), 
        and (3).
  [(d) Service Requirements.--
          [(1) Permitted services.--Services funded under this 
        section to carry out the projects described in 
        subsection (a)(2) may include education and training, 
        vocational education services, and related services, 
        provided to participants under title II. In addition, 
        services funded under this section may include services 
        for offenders, veterans, and other individuals who the 
        Governor determines require special assistance.
          [(2) Limitations on expenditures.--
                  [(A) Coordination of services.--Not more than 
                20 percent of the funds allocated under this 
                section may be expended to pay for the Federal 
                share of projects described in subsection 
                (a)(2)(D) at the State and local levels.
                  [(B) School-to-work services; literacy and 
                lifelong learning services.--Not less than 80 
                percent of the funds allocated under this 
                section shall be expended to pay for the 
                Federal share of projects conducted in 
                accordance with subparagraphs (A), (B), and (C) 
                of subsection (a)(2).
                  [(C) Economically disadvantaged 
                individuals.--Not less than 75 percent of the 
                funds allocated for projects under 
                subparagraphs (A), (B), and (C) of subsection 
                (a)(2) shall be expended for projects for 
                economically disadvantaged individuals who 
                experience barriers to employment. Priority for 
                funds not expended for the economically 
                disadvantaged shall be given to title III 
                participants and persons with barriers to 
                employment.
  [(e) Distribution of Funds in Absence of Agreement.--If no 
agreement is reached in accordance with subsection (b) on the 
use of funds under this section, the funds shall be available 
to the Governor to achieve the goals and provide the services 
described in paragraph (1), (2), or (3) of subsection (c).
  [(f) Reports and Records.--
          [(1) Reports by governors.--The Governor shall 
        prepare reports on the projects funded under this 
        section, including such information as the Secretary 
        may require to determine the extent to which the 
        projects supported under this section result in 
        achieving the goals specified in paragraphs (1), (2), 
        and (3) of subsection (c). The Governor shall submit 
        the reports to the Secretary at such intervals as shall 
        be determined by the Secretary.
          [(2) Records and reports of recipients.--Each direct 
        or indirect recipient of funds under this section shall 
        keep records that are sufficient to permit the 
        preparation of reports. Each recipient shall submit 
        such reports to the Secretary, at such intervals as 
        shall be determined by the Secretary.
  [ H3  deg.identification of additional imposed requirements

  [Sec. 124. If a State or service delivery area imposes a 
requirement, including a rule, regulation, policy, or 
performance standard, relating to the administration and 
operation of programs funded by this Act (including 
requirements based on State or service delivery area 
interpretation of any Federal law, regulation, or guideline) 
the State or area shall identify the requirement as a State- or 
service delivery area-imposed requirement.

                [state labor market information programs

  [Sec. 125. (a) In order to be eligible for Federal financial 
assistance for State labor market information programs under 
this Act from funds made available under section 461(b), the 
Governor shall designate the State occupational information 
coordinating committee or other organizational unit to be 
responsible for oversight and management of a statewide 
comprehensive labor market and occupational supply and demand 
information system, which shall--
          [(1) design a comprehensive cost-efficient labor 
        market and occupational supply and demand information 
        system which--
                  [(A) is responsive to the economic demand and 
                education and training supply support needs of 
                the State and areas within the State, and
                  [(B) meets the Federal standards under 
                chapter 35 of title 44, United States Code, and 
                other appropriate Federal standards established 
                by the Bureau of Labor Statistics;
          [(2) standardize available Federal and State multi-
        agency administrative records and direct survey data 
        sources to produce an employment and economic analysis 
        with a published set of projections for the State and 
        designated areas within the State which, at the 
        minimum, includes--
                  [(A) identification of geographic and 
                occupational areas of potential growth or 
                decline; and
                  [(B) an assessment of the potential impact of 
                such growth or decline on individuals, 
                industries, and communities, including 
                occupational supply and demand characteristics 
                data;
          [(3) assure, to the extent feasible, that--
                  [(A) automated technology will be used by the 
                State;
                  [(B) administrative records have been 
                designed to reduce paperwork; and
                  [(C) multiple survey burdens on the employers 
                of the State have been reduced;
          [(4) publish and disseminate labor market and 
        occupational supply and demand information and 
        individualized career information to State agencies, 
        area public agencies, libraries, and private not-for-
        profit users, and individuals who are in the process of 
        making career decision choices;
          [(5) conduct research and demonstration projects 
        designed to improve any aspect of the statewide 
        information system; and
          [(6) provide training and technical assistance to 
        support comprehensive career guidance and participant 
        activities for local programs assisted under this Act.
  [(b)(1) The analysis required under clause (2) of subsection 
(a) shall be used to contribute in carrying out the provisions 
of this Act, the Carl D. Perkins Vocational Education Act, and 
the Act of June 6, 1933, known as the Wagner-Peyser Act.
  [(2) The assurance required by clause (3) of subsection (a) 
shall also include that the State will, to the maximum extent 
possible, assure consolidation of available administrative data 
and surveys to reduce duplication of recordkeeping of State and 
local agencies, including secondary and postsecondary 
educational institutions.
  [(3) If any Federal funds are used to carry out clause (5) of 
subsection (a), access to and information on the results will 
remain in the public domain.
  [(c) The Secretary through the National Occupational 
Information Coordinating Committee shall reimburse the States 
the costs of carrying out the provisions of this section but 
the aggregate reimbursements in any fiscal year shall not 
exceed the amount available under part E of title IV for this 
section.
  [(d) No provision of this part or any other provision of 
Federal law shall be construed to prohibit any State from 
combining or consolidating Federal administrative management 
information reporting requirements relating to employment, 
productivity, or training, if notice is transmitted by the 
Governor to the head of each appropriate Federal and State 
agency responsible for the laws governing the Federal reporting 
requirements. The notice shall specify the intent to combine or 
consolidate such requirements. The head of each appropriate 
Federal agency shall approve the combination or consolidation 
unless, within sixty days after receiving the notice, the 
Federal agency can demonstrate that the combination or 
consolidation will not meet the essential purposes of the 
affected Federal law.

                    [authority of state legislature

  [Sec. 126. Nothing in this Act shall be interpreted to 
preclude the enactment of State legislation providing for the 
implementation, consistent with the provisions of this Act, of 
the programs assisted under this Act.

                         [interstate agreements

  [Sec. 127. In the event that compliance with provisions of 
this Act would be enhanced by cooperative agreements between 
States, the consent of Congress is hereby given to such States 
to enter into such compacts and agreements to facilitate such 
compliance, subject to the approval of the 
Secretary. deg.


       [Part C--Program Requirements for Service Delivery System

                     [general program requirements

  [Sec. 141. Except as otherwise provided, the following 
conditions are applicable to all programs under this Act:
  [(a) Each job training plan shall provide employment and 
training opportunities to those who can benefit from, and who 
are most in need of, such opportunities and shall make efforts 
to provide equitable services among substantial segments of the 
eligible population.
  [(b) Funds provided under this Act shall only be used for 
activities which are in addition to those which would otherwise 
be available in the area in the absence of such funds.
  [(c)(1) No funds provided under this Act shall be used or 
proposed for use to encourage or induce the relocation, of an 
establishment or part thereof, that results in a loss of 
employment for any employee of such establishment at the 
original location.
  [(2) No funds provided under this Act shall be used for 
customized or skill training, on-the-job training, or company 
specific assessments of job applicants or employees, for any 
establishment or part thereof, that has relocated, until 120 
days after the date on which such establishment commences 
operations at the new location, if the relocation of such 
establishment or part thereof, results in a loss of employment 
for any employee of such establishment at the original 
location.
  [(3) If a violation of paragraph (1) or (2) is alleged, the 
Secretary shall conduct an investigation to determine whether a 
violation has occurred.
  [(4) If the Secretary determines that a violation of 
paragraph (1) or (2) has occurred, the Secretary shall require 
the State, service delivery area, or substate grantee that has 
violated paragraph (1) or (2) to--
          [(A) repay to the United States an amount equal to 
        the amount expended in violation of paragraph (1) or 
        (2), in accordance with subsection (d) or (e) of 
        section 164; and
          [(B) pay an additional amount equal to the amount 
        required to be repaid under subparagraph (A), unless 
        the State, service delivery area, or substate grantee 
        demonstrates to the Secretary that it neither knew nor 
        reasonably could have known (after an inquiry 
        undertaken with due diligence) that it provided funds 
        in violation of paragraph (1) or (2).
  [(5) Amounts received under paragraph (4)(B) shall be 
deposited in a special account in the Treasury for use by the 
Secretary for carrying out title III.
  [(d)(1) Training provided with funds made available under 
this Act shall be only for occupations for which there is a 
demand in the area served or in another area to which the 
participant is willing to relocate, and consideration in the 
selection of training programs may be given to training in 
occupations determined to be in sectors of the economy which 
have a high potential for sustained demand or growth.
  [(2) Efforts shall be made to develop programs which 
contribute to occupational development, upward mobility, 
development of new careers, and overcoming sex-stereotyping in 
occupations traditional for the other sex.
  [(3)(A) Commercially available training packages, including 
advanced learning technology, may be purchased for off-the-
shelf prices and without requiring a breakdown of the cost 
components of the package if such packages are purchased 
competitively and include performance criteria.
  [(B) Tuition charges for training or education provided by an 
institution of higher education (as defined in section 1201(a) 
of the Higher Education Act of 1965 (20 U.S.C. 1141(a))) or a 
proprietary institution of higher education (as defined in 
section 481(b) of such Act (20 U.S.C. 1088(b))), that are not 
more than the charges for such training or education made 
available to the general public, do not require a breakdown of 
cost components.
  [(C) With respect to funds provided from the allocation to a 
service delivery area for any program year that are expended by 
any community-based organization or nonprofit organization for 
the cost of administration under part A or C of title II, the 
service delivery area shall not be subject to the limitation 
contained in section 108(b)(4)(A) if--
          [(i) such funds are expended pursuant to an agreement 
        under which not less than 90 percent of the funds 
        provided to the community-based organization or 
        nonprofit organization are to be expended for the costs 
        of direct training and training-related and supportive 
        services;
          [(ii) the expenditures of such funds are charged by 
        the service delivery area to the appropriate cost 
        category;
          [(iii) the expenditure of such funds does not result 
        in the service delivery area exceeding the limitation 
        contained in section 108(b)(4)(A) by more than 25 
        percent of such limitation; and
          [(iv) the service delivery area is in compliance with 
        the limitation contained in section 108(b)(4)(B) for 
        such program year, except that such limitation shall be 
        reduced by a percentage equal to one-half of the 
        percentage by which the expenditures of the service 
        delivery area under this subparagraph exceed the 
        limitation under section 108(b)(4)(A).
  [(4) Placements made in unsubsidized employment shall be, to 
the extent practicable, in occupational areas related to the 
training provided to the participant.
  [(e)(1) Only eligible individuals residing in the service 
delivery area may be served by employment and training 
activities funded under title II, except that the job training 
plan may provide for limited exceptions to this requirement, 
including exceptions necessary to permit services to homeless 
individuals who cannot prove residence within the service 
delivery area.
  [(2) Any service delivery area may enter into an agreement or 
contract with another service delivery area (including a 
service delivery area that is a city or county within the same 
labor market) to pay or share the cost of educating, training, 
or placing individuals participating in programs assisted under 
this Act, including the provision of supportive services. Such 
agreement or contract shall be approved by each private 
industry council providing guidance to the service delivery 
area and shall be described in the job training plan under 
section 104.
  [(f) No member of any council under this Act shall cast a 
vote on the provision of services by that member (or any 
organization which that member directly represents) or vote on 
any matter which would provide direct financial benefit to that 
member.
  [(g)(1) Payments to employers for on-the-job training shall 
not, during the period of such training, average more than 50 
percent of the wages paid by the employer to such participants, 
and payments in such amount shall be deemed to be in 
compensation for the extraordinary costs associated with 
training participants under this Act and in compensation for 
the costs associated with the lower productivity of such 
participants.
  [(2) On-the-job training authorized under the Act for a 
participant shall be limited in duration to a period not in 
excess of that generally required for acquisition of skills 
needed for the position within a particular occupation, but in 
no event shall exceed 6 months, unless the total number of 
hours of such training is less than 500 hours. In determining 
the period generally required for acquisition of the skills, 
consideration shall be given to recognized reference material 
(such as the Dictionary of Occupational Titles), the content of 
the training of the participant, the prior work experience of 
the participant, and the service strategy of the participant.
  [(3)(A) Each on-the-job training contract shall--
          [(i) specify the types and duration of on-the-job 
        training and the other services to be provided in 
        sufficient detail to allow for a fair analysis of the 
        reasonableness of proposed costs; and
          [(ii) comply with the applicable requirements of 
        section 164.
  [(B) Each on-the-job training contract that is not directly 
contracted by a service delivery area with an employer (but 
instead is contracted through an intermediary brokering 
contractor) shall, in addition to meeting the requirements of 
subparagraph (A), specify the outreach, recruitment, 
participant training, counseling, placement, monitoring, 
followup, and other services to be provided directly by the 
brokering contractor within its own organization, the services 
to be provided by the employers conducting the on-the-job 
training, and the services to be provided, with or without 
cost, by other agencies and subcontractors.
  [(C) If a brokering contractor enters into a contract with a 
subcontractor to provide training or other services, the 
brokering contractor shall ensure, through on-site monitoring, 
compliance with subcontract terms prior to making payment to 
the subcontractor.
  [(4) In accordance with regulations issued by the Secretary, 
on-the-job training contracts under this Act shall not be 
entered into with employers who have received payments under 
previous contracts and have exhibited a pattern of failing to 
provide on-the-job training participants with continued long-
term employment as regular employees with wages and employment 
benefits (including health benefits) and working conditions at 
the same level and to the same extent as other employees 
working a similar length of time and doing the same type of 
work.
  [(h) Funds provided under this Act shall not be used to 
duplicate facilities or services available in the area (with or 
without reimbursement) from Federal, State, or local sources, 
unless the plan establishes that alternative services or 
facilities would be more effective or more likely to achieve 
performance goals.
  [(i) Each administrative entity shall be responsible for the 
allocation of funds and the eligibility of those enrolled in 
its programs and shall have responsibility to take action 
against its subcontractors, subgrantees, and other recipients 
to eliminate abuses in the programs they are carrying out, and 
to prevent any misuse of funds by such subcontractors, 
subgrantees, and other recipients. Administrative entities may 
delegate the responsibility for determination of eligibility 
under reasonable safeguards, including provisions for 
reimbursement of cost incurred because of erroneous 
determinations made with insufficient care, if such an 
arrangement is included in an approved job training plan.
  [(j) No person or organization may charge an individual a fee 
for the placement or referral of such individual in or to a 
training program under this Act.
  [(k) No funds may be provided under this Act for any 
subsidized employment with any private for-profit employer 
unless the individual employed is a youth aged 16 to 21, 
inclusive, who is economically disadvantaged and the employment 
is provided in accordance with subparagraphs (F) and (H) of 
section 264(c)(1).
  [(l) The Secretary shall not provide financial assistance for 
any program under this Act which involves political activities.
  [(m)(1) Income under any program administered by a public or 
private nonprofit entity may be retained by such entity only if 
used to continue to carry out the program.
  [(2) Income subject to the requirements of paragraph (1) 
shall include--
          [(A) receipts from goods or services (including 
        conferences) provided as a result of activities funded 
        under the Act;
          [(B) funds provided to a service provider under the 
        Act that are in excess of the costs associated with the 
        services provided; and
          [(C) interest income earned on funds received under 
        this Act.
  [(3) For the purposes of this subsection, each entity 
receiving financial assistance under this Act shall maintain 
records sufficient to determine the amount of income received 
and the purposes for which such income is expended.
  [(n) The Secretary shall notify the Governor and the 
appropriate private industry councils and chief elected 
officials of, and consult with the Governor and such councils 
and officials concerning, any activity to be funded by the 
Secretary under this Act within the State or service delivery 
area; and the Governor shall notify the appropriate private 
industry councils and chief elected officials of, and consult 
with such concerning, any activity to be funded by the Governor 
under this Act within the service delivery area.
  [(o)(1) All education programs for youth supported with funds 
provided under title II shall be consistent with applicable 
State and local educational standards.
  [(2) Standards and procedures with respect to the awarding of 
academic credit and certifying educational attainment in 
programs conducted under such title shall be consistent with 
the requirements of applicable State and local law and 
regulation.
  [(p) No funds available under part B of this title or part A 
or C of title II may be used for public service employment.
  [(q) No funds available under this Act shall be used for 
employment generating activities, economic development 
activities, investment  in  revolving  loan  funds,  
capitalization  of businesses, investment in contract bidding 
resource centers, and similar activities. No funds under title 
II or III of this Act shall be used for foreign travel.
  [(r) The Federal requirements governing the title, use, and 
disposition of real property, equipment, and supplies purchased 
with funds provided under this Act shall be the Federal 
requirements generally applicable to Federal grants to States 
and local governments.
  [(s)(1) Notwithstanding title II of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481 et seq.) and 
any other provision of law, the Secretary and the Secretary of 
Education shall receive priority by the Secretary of Defense 
for the direct transfer, on a nonreimbursable basis, of the 
property described in paragraph (2) for use in carrying out 
programs under this Act or under any other Act.
  [(2) The property described in this paragraph is both real 
and personal property under the control of the Department of 
Defense that is not used by such Department, including property 
that the Secretary of Defense determines is in excess of 
current and projected requirements of such Department.
                               [benefits

  [Sec. 142. (a) Except as otherwise provided in this Act, the 
following provisions shall apply to all activities financed 
under this Act:
          [(1) A trainee shall receive no payments for training 
        activities in which the trainee fails to participate 
        without good cause.
          [(2) Individuals in on-the-job training shall be 
        compensated by the employer at the same rates, 
        including periodic increases, as similarly situated 
        employees or trainees and in accordance with applicable 
        law, but in no event less than the higher of the rate 
        specified in section 6(a)(1) of the Fair Labor 
        Standards Act of 1938 or the applicable State or local 
        minimum wage law.
          [(3) Individuals employed in activities authorized 
        under this Act shall be paid wages which shall not be 
        less than the highest of (A) the minimum wage under 
        section 6(a)(1) of the Fair Labor Standards Act of 
        1938, (B) the minimum wage under the applicable State 
        or local minimum wage law, or (C) the prevailing rates 
        of pay for individuals employed in similar occupations 
        by the same employer.
  [(4) References in paragraphs (2) and (3) to section 6(a)(1) 
of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1))--
          [(A) shall be deemed to be references to section 6(c) 
        of that Act for individuals in the Commonwealth of 
        Puerto Rico;
          [(B) shall be deemed to be references to section 
        6(a)(3) of that Act for individuals in American Samoa; 
        and
          [(C) shall not be applicable for individuals in other 
        territorial jurisdictions in which section 6 of the 
        Fair Labor Standards Act of 1938 does not apply.
  [(b) Allowances, earnings and payments to individuals 
participating in programs under this Act shall not be 
considered as income for the purposes of determining 
eligibility for and the amount of income transfer and in-kind 
aid furnished under any Federal or federally assisted program 
based on need, other than as provided under the Social Security 
Act.

                            [labor standards

  [Sec. 143. (a)(1) Conditions of employment and training shall 
be appropriate and reasonable in light of such factors as the 
type of work, geographical region, and proficiency of the 
participant.
  [(2) Health and safety standards established under State and 
Federal law, otherwise applicable to working conditions of 
employees, shall be equally applicable to working conditions of 
participants. With respect to any participant in a program 
conducted under this Act who is engaged in activities which are 
not covered by health and safety standards under the 
Occupational Safety and Health Act of 1970, the Secretary shall 
prescribe, by regulation, such standards as may be necessary to 
protect the health and safety of such participants.
  [(3) To the extent that a State workers' compensation law is 
applicable, workers' compensation benefits in accordance with 
such law shall be available with respect to injuries suffered 
by participants. To the extent that such law is not applicable, 
each recipient of funds under this Act shall secure insurance 
coverage for injuries suffered by such participants, in 
accordance with regulations prescribed by the Secretary.
  [(4) All individuals employed in subsidized jobs shall be 
provided benefits and working conditions at the same level and 
to the same extent as other employees working a similar length 
of time and doing the same type of work.
  [(5) No funds available under this Act may be used for 
contributions on behalf of any participant to retirement 
systems or plans.
  [(b)(1) No currently employed worker shall be displaced by 
any participant (including partial displacement such as a 
reduction in the hours of nonovertime work, wages, or 
employment benefits).
  [(2) No program under this Act shall impair--
          [(A) existing contracts for services; or
          [(B) existing collective bargaining agreements, 
        unless the employer and the labor organization concur 
        in writing with respect to any elements of the proposed 
        activities which affect such agreement, or either such 
        party fails to respond to written notification 
        requesting its concurrence within 30 days of receipt 
        thereof.
  [(3) No participant shall be employed or job opening filled 
(A) when any other individual is on layoff from the same or any 
substantially equivalent job, or (B) when the employer has 
terminated the employment of any regular employee or otherwise 
reduced its workforce with the intention of filling the vacancy 
so created by hiring a participant whose wages are subsidized 
under this Act.
  [(4) No jobs shall be created in a promotional line that will 
infringe in any way upon the promotional opportunities of 
currently employed individuals.
  [(c)(1) Each recipient of funds under this Act shall provide 
to the Secretary assurances that none of such funds will be 
used to assist, promote, or deter union organizing.
  [(2) Where a labor organization represents a substantial 
number of employees who are engaged in similar work or training 
in the same area as that proposed to be funded under this Act, 
an opportunity shall be provided for such organization to 
submit comments with respect to such proposal.
  [(d) All laborers and mechanics employed by contractors or 
subcontractors in any construction, alteration, or repair, 
including painting and decorating, of projects, buildings, and 
works which are federally assisted under this Act, shall be 
paid wages at rates not less than those prevailing on similar 
construction in the locality as determined by the Secretary in 
accordance with the Act of March 3, 1931 (40 U.S.C. 276a-276a-
5), popularly known as the Davis-Bacon Act. The Secretary shall 
have, with respect to such labor standards, the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 
(15 F.R. 3176; 64 Stat. 1267) and section 2 of the Act of June 
1, 1934, as amended (48 Stat. 948, as amended; 40 U.S.C. 
276(c)). The provisions of this subsection shall not apply to a 
bona fide trainee in a training program under this Act. The 
provisions of section 167(a)(4) shall apply to such trainees.

                          [grievance procedure

  [Sec. 144. (a) Each administrative entity, contractor, and 
grantee under this Act shall establish and maintain a grievance 
procedure for grievances or complaints about its programs and 
activities from participants, subgrantees, subcontractors, and 
other interested persons. Hearings on any grievance shall be 
conducted within 30 days of filing of a grievance and decisions 
shall be made not later than 60 days after the filing of a 
grievance. Except for complaints alleging fraud or criminal 
activity, complaints shall be made within one year of the 
alleged occurrence.
  [(b) Each recipient of financial assistance under this Act 
which is an employer of participants under this Act shall 
continue to operate or establish and maintain a grievance 
procedure relating to the terms and conditions of employment.
  [(c) Upon exhaustion of a recipient's grievance procedure 
without decision, or where the Secretary has reason to believe 
that the recipient is failing to comply with the requirements 
of this Act or the terms of the job training plan, the 
Secretary shall investigate the allegation or belief and 
determine within 120 days after receiving the complaint whether 
such allegation or complaint is true.
  [(d)(1) If a person alleges a violation of section 143 and 
such person exhausts the recipient's grievance procedure or the 
60-day time period described in subsection (a) has elapsed 
without a decision, either party to such procedure may submit 
the grievance to the Secretary. The Secretary shall investigate 
the allegations contained in the grievance and make a 
determination as to whether a violation of section 143 has 
occurred.
  [(2) If the results of the investigation conducted pursuant 
to paragraph (1) indicate that a modification or reversal of 
the decision issued pursuant to the recipient's grievance 
procedure is warranted, or the 60-day time period described in 
subsection (a) has elapsed without a decision, the Secretary 
may modify or reverse the decision, or issue a decision if no 
decision has been issued, as the case may be, after an 
opportunity for a hearing in accordance with the procedures 
under section 166.
  [(3) If the Secretary determines that the decision issued 
pursuant to the recipient's grievance procedure is appropriate, 
the determination shall become the final decision of the 
Secretary.
  [(e)(1) A person alleging a violation of section 143 may, as 
an alternative to the procedures described in this section, 
submit the grievance involving such violation to a binding 
grievance procedure if a collective bargaining agreement 
covering the parties to the grievance so provides.
  [(2) The remedies available under paragraph (1) shall be 
limited to the remedies available under subsection (f)(1)(C) 
and subsection (f)(2).
  [(f)(1) Except as provided in paragraph (2), remedies 
available to grievants under this section for violations of 
section 143 shall be limited to--
          [(A) suspension or termination of payments under this 
        Act;
          [(B) prohibition of placement of a participant, for 
        an appropriate period of time, in a program under this 
        Act with an employer that has violated section 143, as 
        determined under subsection (d) or (e); and
          [(C) appropriate equitable relief (other than back 
        pay).
  [(2) In addition to the remedies available under paragraph 
(1), remedies available under this section for violations of 
subsection (a)(4), paragraphs (1) and (3) of subsection (b), 
and subsection (d) of section 143 may include--
          [(A) reinstatement of the grievant to the position 
        held by such grievant prior to displacement;
          [(B) payment of lost wages and benefits; and
          [(C) reestablishment of other relevant terms, 
        conditions, and privileges of employment.
  [(g) Nothing in subsection (f) shall be construed to prohibit 
a grievant from pursuing a remedy authorized under another 
Federal, State, or local law for a violation of section 143.

           [prohibition against federal control of education

  [Sec. 145. No provision of this Act shall be construed to 
authorize any department, agency, officer, or employee of the 
United States to exercise any direction, supervision, or 
control over the curriculum, program of instruction, 
administration, or personnel of any educational institution, 
school, or school system, or over the selection of library 
resources, textbooks, or other printed or published 
instructional materials by any educational institution or 
school system. deg.


         [Part D--Federal and Fiscal Administrative Provisions

                             [program year

  [Sec. 161. (a) Beginning with fiscal year 1985 and 
thereafter, appropriations for any fiscal year for programs and 
activities under this Act 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)(1) Funds obligated for any program year may be expended 
by each recipient during that program year and the two 
succeeding program years and no amount shall be deobligated on 
account of a rate of expenditure which is consistent with the 
job training plan.
  [(2) Notwithstanding paragraph (1), funds obligated for any 
program year for programs authorized by section 452 of part D 
of title IV of this Act shall remain available until expended.
                      [prompt allocation of funds

  [Sec. 162. (a) All allotments and allocations under this Act 
shall be based on the latest available data and estimates 
satisfactory to the Secretary. All data relating to 
economically disadvantaged and low-income persons shall be 
based on 1980 Census or later data.
  [(b) Whenever the Secretary allots and allocates funds 
required to be allotted or allocated by formula under this Act, 
the Secretary shall publish in a timely fashion in the Federal 
Register the proposed amount to be distributed to each 
recipient.
  [(c) All funds required to be distributed by formula under 
this Act shall be allotted within 45 days after enactment of 
the appropriations, except that, if such funds are appropriated 
in advance as authorized by section 161, such funds shall be 
allotted not later than the March 31 preceding the program year 
for which such funds are to be available for obligation.
  [(d) Whenever the Secretary utilizes a formula to allot or 
allocate funds made available for distribution at the 
Secretary's discretion under this Act, the Secretary shall, not 
later than 30 days prior to such allotment or allocation, 
publish such formula in the Federal Register for comments along 
with the rationale for the formula and the proposed amounts to 
be distributed to each State and area. After consideration of 
any comments received, the Secretary shall publish final 
allotments and allocations in the Federal Register.
  [(e) Funds shall be made available to the grant recipient for 
the service delivery area not later than 30 days after the date 
they are made available to the Governor or 7 days after the 
date the plan is approved, whichever is later.
  [(f) When contracting with nonprofit organizations of 
demonstrated effectiveness, the Secretary, States, substate 
areas, and service delivery areas may make advance payments, 
provided that such payments are based on the financial need of 
such organization and are not in excess of 20 percent of the 
total contract amount.

                              [monitoring

  [Sec. 163. (a) The Secretary is authorized to monitor all 
recipients of financial assistance under this Act to determine 
whether they are complying with the provisions of this Act and 
the regulations issued under this Act.
  [(b) The Secretary may investigate any matter the Secretary 
deems necessary to determine compliance with this Act and 
regulations issued under this Act. The investigations 
authorized by this subsection may include examining records 
(including making certified copies thereof), questioning 
employees, and entering any premises or onto any site in which 
any part of a program of a recipient is conducted or in which 
any of the records of the recipient are kept.
  [(c) For the purpose of any investigation or hearing under 
this Act, the provisions of section 9 of the Federal Trade 
Commission Act (15 U.S.C. 49) (relating to the attendance of 
witnesses and the production of books, papers, and documents) 
are made applicable to the Secretary.

                      [fiscal controls; sanctions

  [Sec. 164. (a)(1) Each State shall establish such fiscal 
control and fund accounting procedures as may be necessary to 
assure the proper disbursal of, and accounting for, Federal 
funds paid to the recipient under titles II and III. Such 
procedures shall ensure that all financial transactions are 
conducted and records maintained in accordance with generally 
accepted accounting principles applicable in each State.
  [(2) The Secretary shall prescribe regulations establishing 
uniform  cost  principles  substantially  equivalent  to  such  
principles generally applicable to recipients of Federal grants 
funds. At a minimum, such standards shall provide that, to be 
allowable, costs must--
          [(A) be necessary and reasonable for proper and 
        efficient administration of the program under this Act;
          [(B) be allocable to the program under this Act; and
          [(C) not be a general expense required to carry out 
        the overall responsibilities of State, local, or 
        federally recognized Indian tribal governments except 
        as specifically provided by this Act.
  [(3) The Governor, in accordance with minimum requirements 
established by the Secretary in regulations, shall prescribe 
and implement procurement standards to ensure fiscal 
accountability and prevent fraud and abuse in programs 
administered under this Act. The Secretary, in establishing 
such minimum requirements, shall consult with the Inspector 
General of the Department of Labor and take into consideration 
relevant aspects of the circulars issued by the Director of the 
Office of Management and Budget. Such minimum requirements 
shall include provisions to ensure that for States, substate 
areas, and service delivery areas--
          [(A) procurements shall be conducted in a manner 
        providing full and open competition;
          [(B) the use of sole source procurements shall be 
        minimized to the extent practicable, but in every case 
        shall be justified;
          [(C) procurements shall include an appropriate 
        analysis of the reasonableness of costs and prices;
          [(D) procurements shall not provide excess program 
        income (for nonprofit and governmental entities) or 
        excess profit (for private for-profit entities), and 
        that appropriate factors shall be utilized in 
        determining whether such income or profit is excessive, 
        such as--
                  [(i) the complexity of the work to be 
                performed;
                  [(ii) the risk borne by the contractor; and
                  [(iii) market conditions in the surrounding 
                geographical area;
          [(E) procurements shall clearly specify deliverables 
        and the basis for payment;
          [(F) written procedures shall be established for 
        procurement transactions;
          [(G) no grantee, contractor, subgrantee, or 
        subcontractor shall engage in any conflict of interest, 
        actual or apparent, in the selection, award, or 
        administration of a contract or grant under this Act;
          [(H) all grantees and subgrantees shall conduct 
        oversight to ensure compliance with procurement 
        standards; and
          [(I) procurement transactions between units of State 
        or local governments, and any other entities organized 
        principally as the administrative entity for service 
        delivery areas, shall be conducted on a cost 
        reimbursable basis.
  [(4) The Governor shall annually conduct on-site monitoring 
of each service delivery area and substate area within the 
State to ensure compliance with the procurement standards 
established pursuant to paragraph (3).
  [(5) If the Governor determines that a service delivery area 
or substate area is not in compliance with the procurement 
standards established pursuant to paragraph (3), the Governor 
shall--
          [(A) require corrective action to secure prompt 
        compliance; and
          [(B) impose the sanctions provided under subsection 
        (b) in the event of failure to take the required 
        corrective action.
  [(6) The Governor shall biennially certify to the Secretary 
that--
          [(A) the State has implemented the procurement 
        standards established under paragraph (3);
          [(B) the State has monitored substate areas and 
        service delivery areas to ensure compliance with the 
        procurement standards as required under paragraph (4); 
        and
          [(C) the State has taken appropriate action to secure 
        compliance pursuant to paragraph (5).
  [(7) If the Secretary determines that the Governor has not 
fulfilled the requirements of this subsection, the Secretary 
shall--
          [(A) require corrective action to secure prompt 
        compliance; and
          [(B) impose the sanctions provided under subsection 
        (f) in the event of failure of the Governor to take the 
        required corrective action.
  [(8) The Secretary, in consultation with the Inspector 
General, shall review the implementation of this subsection and 
submit a report to the appropriate committees of the Congress, 
not later than October 1, 1995, evaluating the effectiveness of 
this subsection in ensuring fiscal accountability and 
containing such recommendations as the Secretary determines to 
be appropriate.
  [(b)(1) If, as a result of financial and compliance audits or 
otherwise, the Governor determines that there is a substantial 
violation of a specific provision of this Act or the 
regulations under this Act, and corrective action has not been 
taken, the Governor shall--
          [(A) issue a notice of intent to revoke approval of 
        all or part of the plan affected; or
          [(B) impose a reorganization plan, which may 
        include--
                  [(i) restructuring the private industry 
                council involved;
                  [(ii) prohibiting the use of designated 
                service providers;
                  [(iii) selecting an alternative entity to 
                administer the program for the service delivery 
                area involved;
                  [(iv) merging the service delivery area into 
                1 or more other existing service delivery 
                areas; or
                  [(v) other such changes as the Secretary or 
                Governor determines necessary to secure 
                compliance.
  [(2)(A) The actions taken by the Governor pursuant to 
paragraph (1)(A) may be appealed to the Secretary under the 
same terms and conditions as the disapproval of the plan and 
shall not become effective until--
          [(i) the time for appeal has expired; or
          [(ii) the Secretary has issued a decision.
  [(B) The actions taken by the Governor pursuant to paragraph 
(1)(B) may be appealed to the Secretary, who shall make a final 
decision not later than 60 days of the receipt of the appeal.
  [(3) If the Governor fails to promptly take the actions 
required under paragraph (1), the Secretary shall take such 
actions.
  [(c)(1) The Comptroller General of the United States shall, 
on a selective basis, evaluate the expenditures by the 
recipients of grants under this Act in order to assure that 
expenditures are consistent with the provisions of this Act and 
to determine the effectiveness of each recipient in 
accomplishing the purposes of this Act. The Comptroller General 
shall conduct the evaluations whenever he determines it 
necessary and he shall periodically report to the Congress on 
the findings of such evaluations.
  [(2) Nothing in this Act shall be deemed to relieve the 
Inspector General of the Department of Labor of his 
responsibilities under the Inspector General Act.
  [(3) For the purpose of evaluating and reviewing programs 
established or provided for by this Act, the Comptroller 
General shall have access to and the right to copy any books, 
accounts, records, correspondence, or other documents pertinent 
to such programs that are in the possession, custody, or 
control of the State, a private industry council established 
under section 102 of this Act, any recipient of funds under 
this Act, or any subgrantee or contractor of such recipients.
  [(d) Every recipient shall repay to the United States amounts 
found not to have been expended in accordance with this Act. 
The Secretary may offset such amounts against any other amount 
to which the recipient is or may be entitled under this Act 
unless he determines that such recipient should be held liable 
pursuant to subsection (e). No such action shall be taken 
except after notice and opportunity for a hearing have been 
given to the recipient.
  [(e)(1) Each recipient shall be liable to repay such amounts, 
from funds other than funds received under this Act, upon a 
determination that the misexpenditure of funds was due to 
willful disregard of the requirements of this Act, gross 
negligence, or failure to observe accepted standards of 
administration. No such finding shall be made except after 
notice and opportunity for a fair hearing.
  [(2) In determining whether to impose any sanction authorized 
by this section against a recipient for violations by a 
subgrantee of such recipient under this Act or the regulations 
under this Act, the Secretary shall first determine whether 
such recipient has adequately demonstrated that it has--
          [(A) established and adhered to an appropriate system 
        for the award and monitoring of contracts with 
        subgrantees which contains acceptable standards for 
        ensuring accountability;
          [(B) entered into a written contract with such 
        subgrantee which established clear goals and 
        obligations in unambiguous terms;
          [(C) acted with due diligence to monitor the 
        implementation of the subgrantee contract, including 
        the carrying out of the appropriate monitoring 
        activities (including audits) at reasonable intervals; 
        and
          [(D) taken prompt and appropriate corrective action 
        upon becoming aware of any evidence of a violation of 
        this Act or the regulations under this Act by such 
        subgrantee.
  [(3) If the Secretary determines that the recipient has 
demonstrated substantial compliance with the requirements of 
paragraph (2), the Secretary may waive the imposition of 
sanctions authorized by this section upon such recipient. The 
Secretary is authorized to impose any sanction consistent with 
the provisions of this Act and any applicable Federal or State 
law directly against any subgrantee for violation of this Act 
or the regulations under this Act.
  [(f) In emergency situations, if the Secretary determines it 
is necessary to protect the integrity of the funds or ensure 
the proper operation of the program, the Secretary may 
immediately terminate or suspend financial assistance, in whole 
or in part, if the recipient is given prompt notice and the 
opportunity for a subsequent hearing within 30 days after such 
termination or suspension. The Secretary shall not delegate any 
of the functions or authority specified in this subsection, 
other than to an officer whose appointment was required to be 
made by and with the advice and consent of the Senate.
  [(g) If the Secretary determines that any recipient under 
this Act has discharged or in any other manner discriminated 
against a participant or against any individual in connection 
with the administration of the program involved, or against any 
individual because such individual has filed any complaint or 
instituted or caused to be instituted any proceeding under or 
related to this Act, or has testified or is about to testify in 
any such proceeding or investigation under or related to this 
Act, or otherwise unlawfully denied to any individual a benefit 
to which that individual is entitled under the provisions of 
this Act or the Secretary's regulations, the Secretary shall, 
within thirty days, take such action or order such corrective 
measures, as necessary, with respect to the recipient or the 
aggrieved individual, or both.
  [(h) The remedies under this section shall not be construed 
to be exclusive remedies.

              [reports, recordkeeping, and investigations

  [Sec. 165. (a)(1) Recipients shall keep records that are 
sufficient to permit the preparation of reports required by 
this Act and to permit the tracing of funds to a level of 
expenditure adequate to insure that the funds have not been 
spent unlawfully.
  [(2) Every recipient shall maintain such records and submit 
such reports, in such form and containing such information, as 
the Secretary requires regarding the performance of its 
programs. Such records and reports shall be submitted to the 
Secretary but shall not be required to be submitted more than 
once each quarter unless specifically requested by the Congress 
or a committee thereof.
  [(3) In order to allow for the preparation of national 
estimates necessary to meet the requirements of subsection (c), 
recipients shall maintain standardized records for all 
individual participants and provide to the Secretary a 
sufficient number of such records to provide for an adequate 
analysis.
  [(4)(A) Except as provided in subparagraph (B), records 
maintained by recipients pursuant to this subsection shall be 
made available to the public upon request.
  [(B) Subparagraph (A) shall not apply to--
          [(i) information, the disclosure of which would 
        constitute a clearly unwarranted invasion of personal 
        privacy; and
          [(ii) trade secrets, or commercial or financial 
        information, obtained from a person and privileged or 
        confidential.
  [(C) Recipients may charge fees sufficient to recover costs 
applicable to the processing of requests for records under 
subparagraph (A).
  [(b)(1)(A) In order to evaluate compliance with the 
provisions of this Act, the Secretary shall conduct, in several 
States, in each fiscal year investigations of the use of funds 
received by recipients under this Act.
  [(B) In order to insure compliance with the provisions of 
this Act, the Comptroller General of the United States may 
conduct investigations of the use of funds received under this 
Act by any recipient.
  [(2) In conducting any investigation under this Act, the 
Secretary or the Comptroller General of the United States may 
not request the compilation of any new information not readily 
available to such recipient.
  [(3)(A) In carrying out any audit under this Act (other than 
any initial audit survey or any audit investigating possible 
criminal or fraudulent conduct), either directly or through 
grant or contract, the Secretary, the Inspector General, or the 
Comptroller General shall furnish to the State, administrative 
entity, recipient, or other entity to be audited, advance 
notification of the overall objectives and purposes of the 
audit, and any extensive recordkeeping or data requirements to 
be met, not fewer than 14 days (or as soon as practicable), 
prior to the commencement of the audit.
  [(B) If the scope, objectives, or purposes of the audit 
change substantially during the course of the audit, the entity 
being audited shall be notified of the change as soon as 
practicable.
  [(C) The reports on the results of such audits shall cite the 
law, regulation, policy, or other criteria applicable to any 
finding.
  [(D) Nothing contained in this Act shall be construed so as 
to be inconsistent with the Inspector General Act of 1978 (5 
U.S.C. App.) or government auditing standards issued by the 
Comptroller General.
  [(c) Each State, each administrative entity, and each 
recipient (other than a subrecipient, grantee or contractor of 
a recipient) receiving funds under this Act shall--
          [(1) make readily accessible reports concerning its 
        operations and expenditures as shall be prescribed by 
        the Secretary;
          [(2) prescribe and maintain comparable management 
        information systems, in accordance with guidelines that 
        shall be prescribed by the Secretary, designed to 
        facilitate the uniform compilation, cross tabulation, 
        and analysis of programmatic, participant, and 
        financial data, on statewide and service delivery area 
        bases, necessary for reporting, monitoring, and 
        evaluating purposes, including data necessary to comply 
        with section 167; and
          [(3) monitor the performance of service providers in 
        complying with the terms of grants, contracts, or other 
        agreements made pursuant to this Act.
  [(d)(1) The reports required in subsection (c) shall include 
information pertaining to--
          [(A) the relevant demographic characteristics 
        (including race, ethnicity, sex, and age) and other 
        related information regarding participants;
          [(B) the activities in which participants are 
        enrolled, and the length of time that participants are 
        engaged in such activities;
          [(C) program outcomes, including occupations, for 
        participants;
          [(D) specified program costs; and
          [(E) information necessary to prepare reports to 
        comply with section 167.
  [(2) The Secretary shall ensure that all elements of the 
information required for the reports described in paragraph (1) 
are defined and reported uniformly.
  [(e) The Governor shall ensure that requirements are 
established for retention of all records pertinent to all 
grants awarded, and contracts and agreements entered into, 
under this Act, including financial, statistical, property and 
participant records and supporting documentation. For funds 
allotted to a State for any program year, records shall be 
retained for 2 years following the date on which the annual 
expenditure report containing the final expenditures charged to 
such program year's allotment is submitted to the Secretary. 
Records for nonexpendable property shall be retained for a 
period of 3 years after final disposition of the property.
  [(f)(1) Each substate grantee and service delivery area shall 
submit quarterly financial reports to the Governor with respect 
to programs under this Act. Such reports shall include 
information identifying all program costs by cost category in 
accordance with generally accepted accounting principles and by 
year of the appropriation.
  [(2) Each State shall submit a summary of the reports 
submitted pursuant to paragraph (1) to the Secretary on a 
quarterly basis.
  [(g) Each State, substate grantee, and service delivery area 
shall maintain records with respect to programs under this Act 
that identify--
          [(1) any program income or profits earned, including 
        such income or profits earned by subrecipients; and
          [(2) any costs incurred (such as stand-in costs) that 
        are otherwise allowable except for funding limitations.
  [(h)(1) The Secretary shall conduct a biennial study on the 
provision of supportive services under programs conducted 
pursuant to title II. Such study shall identify--
          [(A) the amount and proportion of funds expended for 
        supportive services under title II;
          [(B) the types of supportive services provided;
          [(C) the relative share of funds expended for each 
        type of supportive service;
          [(D) the characteristics of the participants 
        receiving supportive services; and
          [(E) such other factors as the Secretary determines 
        to be appropriate.
  [(2) The Secretary shall submit a report to the Congress 
containing the results of each study conducted pursuant to 
paragraph (1).

                      [administrative adjudication

  [Sec. 166. (a) Whenever any applicant for financial 
assistance under this Act is dissatisfied because the Secretary 
has made a determination not to award financial assistance in 
whole or in part to such applicant, the applicant may request a 
hearing before an administrative law judge of the Department of 
Labor. A similar hearing may also be requested by any recipient 
upon whom a corrective action or a sanction has been imposed by 
the Secretary. Except to the extent provided for in section 
141(c), subsections (d) and (e) of section 144, or section 167, 
all other disputes arising under this Act shall be adjudicated 
under grievance procedures established by the recipient or 
under applicable law other than this Act.
  [(b) The decision of the administrative law judge shall 
constitute final action by the Secretary unless, within 20 days 
after receipt of the decision of the administrative law judge, 
a party dissatisfied with the decision or any part thereof has 
filed exceptions with the Secretary specifically identifying 
the procedure, fact, law, or policy to which exception is 
taken. Any exception not specifically urged shall be deemed to 
have been waived. Thereafter the decision of the administrative 
law judge shall become the final decision of the Secretary 
unless the Secretary, within 30 days of such filing, has 
notified the parties that the case has been accepted for 
review.
  [(c) Any case accepted for review by the Secretary shall be 
decided within one hundred and eighty days of such acceptance. 
If not so decided, the decision of the administrative law judge 
shall become the final decision of the Secretary.
  [(d) The provisions of section 168 of this Act shall apply to 
any final action of the Secretary under this section.

                           [nondiscrimination

  [Sec. 167. (a)(1) For the purpose of applying the 
prohibitions against discrimination on the basis of age under 
the Age Discrimination Act of 1975, on the basis of handicap 
under section 504 of the Rehabilitation Act, on the basis of 
sex under title IX of the Education Amendments of 1972, or on 
the basis of race, color, or national origin under title VI of 
the Civil Rights Act of 1964, programs and activities funded or 
otherwise financially assisted in whole or in part under this 
Act are considered to be programs and activities receiving 
Federal financial assistance.
  [(2) No individual shall be excluded from participation in, 
denied the benefits of, subjected to discrimination under, or 
denied employment in the administration of or in connection 
with any such program because of race, color, religion, sex, 
national origin, age, disability, or political affiliation or 
belief.
  [(3) Participants shall not be employed on the construction, 
operation, or maintenance of so much of any facility as is used 
or to be used for sectarian instruction or as a place for 
religious worship.
  [(4) With respect to terms and conditions affecting, or 
rights provided to, individuals who are participants in 
activities supported by funds provided under this Act, such 
individuals shall not be discriminated against solely because 
of their status as such participants.
  [(5) Participation in programs and activities financially 
assisted in whole or in part under this Act shall be open to 
citizens and nationals of the United States, lawfully admitted 
permanent resident aliens, lawfully admitted refugees and 
parolees, and other individuals authorized by the Attorney 
General to work in the United States.
  [(b) Whenever the Secretary finds that a State or other 
recipient has failed to comply with a provision of law referred 
to in subsection (a)(1), with paragraph (2), (3), (4), or (5) 
of subsection (a), or with an applicable regulation prescribed 
to carry out such paragraphs, the Secretary shall notify such 
State or recipient and shall request it to comply. If within a 
reasonable period of time, not to exceed sixty days, the State 
or recipient fails or refuses to comply, the Secretary may--
          [(1) refer the matter to the Attorney General with a 
        recommendation that an appropriate civil action be 
        instituted;
          [(2) exercise the powers and functions provided by 
        title VI of the Civil Rights Act of 1964, the Age 
        Discrimination Act of 1975, or section 504 of the 
        Rehabilitation Act, as may be applicable; or
          [(3) take such other action as may be provided by 
        law.
  [(c) When a matter is referred to the Attorney General 
pursuant to subsection (b)(1), or whenever the Attorney General 
has reason to believe that a State or other recipient is 
engaged in a pattern or practice in violation of a provision of 
law referred to in subsection (a)(1) or in violation of 
paragraph (2), (3), (4), or (5) of subsection (a), the Attorney 
General may bring a civil action in any appropriate district 
court of the United States for such relief as may be 
appropriate, including injunctive relief.
  [(d) For purposes of this section, Job Corps members shall be 
considered as the ultimate beneficiaries of Federal financial 
assistance.
  [(e)(1) The head of the office of the Department of Labor 
referred to as the ``Directorate for Civil Rights'' shall 
annually prepare a report on the administration and enforcement 
of this section.
  [(2) The report required by paragraph (1) shall include--
          [(A) an identification of the service delivery areas 
        and States that have been determined, during the 
        preceding program year, not to be in compliance with 
        this section;
          [(B) for each such identification, the date on which 
        the inquiry was begun and whether the inquiry was 
        initiated on the basis of a complaint or at the 
        initiative of the Department;
          [(C) an identification of the service delivery areas 
        and States awaiting findings by the Directorate;
          [(D) the number of service delivery areas and States 
        that, during the preceding year, were determined not to 
        be in compliance with this section, and the number for 
        which insufficient data prevented the making of such a 
        determination, identifying the type of data which is 
        missing or inadequate;
          [(E) a statistical summary, broken down by race, sex, 
        national origin, disability, or age, of the number of 
        inquiries undertaken and their outcomes;
          [(F) an identification of any service delivery area 
        or State that has been determined, during the preceding 
        year, to have failed to conduct objective assessments 
        as required by sections 204 and 264 on a 
        nondiscriminatory basis;
          [(G) the amount expended by the Directorate for the 
        administration and enforcement of this section, and the 
        number and percentage of full-time employees, and the 
        full-time equivalent of the part-time employees, 
        engaged in such administration and enforcement;
          [(H) the number of onsite visits conducted each year, 
        and whether the visits were initiated by the Department 
        or by complaint;
          [(I) the number of cases referred to the Attorney 
        General, and for such cases--
                  [(i) the civil actions taken by the Attorney 
                General thereon; and
                  [(ii) the use, by the Secretary, of the 
                authority of title VI of the Civil Rights Act 
                of 1964 (42 U.S.C. 2000d et seq.), the Age 
                Discrimination Act of 1975 (29 U.S.C. 621 et 
                seq.), or section 504 of the Rehabilitation Act 
                of 1973 (29 U.S.C. 794); and
          [(J) a description of any other actions taken by the 
        Secretary under or related to the administration and 
        enforcement of this section.
  [(3) The report required by this subsection shall be 
submitted to the Congress as part of the Secretary's annual 
report under section 169(d).
  [(f) In addition to any other sums authorized to be 
appropriated under Federal law, there are authorized to be 
appropriated for the operations and expenses of the Directorate 
such sums as may be necessary for the purpose of increasing the 
number of full-time equivalent personnel available to the 
Directorate in order to comply with the requirements of this 
section.
  [(g) The Secretary shall issue final regulations implementing 
this section not later than 90 days after the date of the 
enactment of the Job Training Reform Amendments of 1992.

                            [judicial review

  [Sec. 168. (a)(1) With respect to any final order by the 
Secretary under section 166 whereby the Secretary determines to 
award, to not award, or to only conditionally award, financial 
assistance, with respect to any final order of the Secretary 
under section 166 with respect to a corrective action or 
sanction imposed under section 164, and with respect to a 
denial of an appeal under section 101(4)(C) or 105(b)(2), any 
party to a proceeding which resulted in such final order may 
obtain review of such final order in the United States Court of 
Appeals having jurisdiction over the applicant or recipient of 
funds, by filing a review petition within 30 days of such final 
order.
  [(2) The clerk of the court shall transmit a copy of the 
review petition to the Secretary who shall file the record upon 
which the final order was entered as provided in section 2112 
of title 28, United States Code. Review petitions unless 
ordered by the court, shall not stay the Secretary's order. 
Petitions under this Act shall be heard expeditiously, if 
possible within ten days of the filing of a reply brief.
  [(3) No objection to the order of the Secretary shall be 
considered by the court unless the objection shall have been 
specifically and timely urged before the Secretary. Review 
shall be limited to questions of law and the Secretary's 
findings of fact shall be conclusive if supported by 
substantial evidence.
  [(b) The court shall have jurisdiction to make and enter a 
decree affirming, modifying, or setting aside the order of the 
Secretary in whole or in part. The court's judgment shall be 
final, subject to certiorari review by the Supreme Court of the 
United States as provided in section 1254(1) of title 28, 
United States Code.

                       [administrative provisions

  [Sec. 169. (a) The Secretary may, in accordance with chapter 
5 of title 5, United States Code, prescribe such rules and 
regulations (including performance standards) as the Secretary 
deems necessary. Such rules and regulations may include 
adjustments authorized by section 204 of the Intergovernmental 
Cooperation Act of 1968. All such rules and regulations shall 
be published in the Federal Register at least thirty days prior 
to their effective date. Copies of all such rules and 
regulations shall be transmitted to the appropriate committees 
of the Congress at the same time and shall contain, with 
respect to each material provision of such rules and 
regulations, citations to the particular substantive section of 
law which is the basis therefor.
  [(b) The Secretary is authorized, in carrying out this Act, 
to accept, purchase, or lease in the name of the department, 
and employ or dispose of in furtherance of the purposes of this 
Act, any money or property, real, personal, or mixed, tangible 
or intangible, received by gift, devise, bequest, or otherwise, 
and to accept voluntary and uncompensated services 
notwithstanding the provisions of section 3679(b) of the 
Revised Statutes of the United States.
  [(c) The Secretary may make such grants, contracts, or 
agreements, establish such procedures and make such payments, 
in installments and in advance or by way of reimbursement, or 
otherwise allocate or expend funds under this Act as necessary 
to carry out this Act, including (without regard to the 
provisions of section 4774(d) of title 10, United States Code) 
expenditures for construction, repairs, and capital 
improvements, and including necessary adjustments in payments 
on account of overpayments or underpayments.
  [(d) The Secretary shall prepare and submit to the Congress 
an annual report for employment and training programs. The 
Secretary shall include in such report--
          [(1) a summary of the achievements, failures, and 
        problems of the programs authorized in this Act in 
        meeting the objective of this Act;
          [(2) a summary of major findings from research, 
        evaluation, pilot projects, and experiments conducted 
        in the previous fiscal year;
          [(3) recommendations for program modifications based 
        upon analysis of such findings; and
          [(4) such other recommendations for legislative or 
        administrative action as the Secretary deems 
        appropriate.
  [(e) The Secretary shall develop methods to ascertain, and 
shall ascertain annually, energy development and conservation 
employment impact data by type and scale of energy technologies 
used. The Secretary shall present the best available data to 
the Secretary of Energy, the Secretary of Housing and Urban 
Development, and the Director of the Office of Management and 
Budget as part of the budgetary process and to the appropriate 
Committees of Congress annually.

                [utilization of services and facilities

  [Sec. 170. The Secretary is authorized, in carrying out this 
Act, under the same conditions applicable under section 169(c) 
or to the extent permitted by law other than this Act, to 
accept and use the services and facilities of departments, 
agencies, and establishments of the United States. The 
Secretary is also authorized to accept and use the services and 
facilities of the agencies of any State or political 
subdivision of a State, with its consent.

                        [obligational authority

  [Sec. 171. Notwithstanding any other provision of this Act, 
no authority to enter into contracts or financial assistance 
agreements under this Act shall be effective except to such 
extent or in such amount as are provided in advance in 
appropriation Acts.

[presidential awards for outstanding private sector involvement in job 
                           training programs

  [Sec. 172. (a)(1)(A) The President is authorized to make 
Presidential awards for outstanding achievement by the private 
sector in the job training partnership program authorized by 
this Act. The President is authorized to make such awards to 
individuals who, and organizations which, have demonstrated 
outstanding achievement in planning and administering job 
training partnership programs or in contributing to the success 
of the job training partnership program.
  [(B) In making the awards pursuant to subparagraph (A) of 
this paragraph, the President shall consider the effectiveness 
of the program for which the award is made.
  [(2) The President is authorized to make Presidential awards 
for model programs in the job training partnership program 
authorized by this Act which demonstrate effectiveness in 
addressing the job training needs of groups of individuals with 
multiple barriers to employment.
  [(b)(1) Each year the President is authorized to make such 
awards under subsection (a) of this section as the President 
determines will carry out the objectives of this Act.
  [(2) The President shall establish such selection procedures, 
after consultation with the Secretary and the Governors of the 
States, as may be necessary.

[SEC. 173. CONSTRUCTION.

  [(a) Eligibility.--Nothing in this Act shall be construed to 
limit the right of persons to remain eligible for assistance 
under title XIX of the Social Security Act, relating to 
Medicaid pursuant to section 1619(b) of such Act.
  [(b) Use of Funds.--Nothing in this Act shall be construed to 
authorize the use of funds under this Act for the ongoing 
support services provided to individuals with disabilities 
placed in supported employment, as such term is defined in 
section 7(18) of the Rehabilitation Act of 1973.

                   [Part E--Miscellaneous Provisions

                          [criminal provisions

  [Sec. 182. Section 665 of title 18, United States Code, is 
amended to read as follows:

 [``theft of embezzlement from employment and training funds: improper 
               inducement: obstruction of investigations

  [``Sec. 665. (a) Whoever, being an officer, director, agent, 
or employee of, or connected in any capacity with any agency or 
organization receiving financial assistance or any funds under 
the Comprehensive Employment and Training Act or the Job 
Training Partnership Act knowingly enrolls an ineligible 
participant, embezzles, willfully misapplies, steals, or 
obtains by fraud any of the moneys, funds, assets, or property 
which are the subject of a financial assistance agreement or 
contract pursuant to such Act shall be fined not more than 
$10,000 or imprisoned for not more than 2 years, or both; but 
if the amount so embezzled, misapplied, stolen, or obtained by 
fraud does not exceed $100, such person shall be fined not more 
than $1,000 or imprisoned not more than 1 year, or both.
  [``(b) Whoever, by threat or procuring dismissal of any 
person from employment or of refusal to employ or refusal to 
renew a contract of employment in connection with a financial 
assistance agreement or contract under the Comprehensive 
Employment and Training Act or the Job Training Partnership Act 
induces any person to give up any money or thing of any value 
to any person (including such organization or agency receiving 
funds) shall be fined not more than $1,000, or imprisoned not 
more than 1 year, or both.
  [``(c) Any person whoever willfully obstructs or impedes or 
willfully endeavors to obstruct or impede, an investigation or 
inquiry under the Comprehensive Employment and Training Act or 
the Job Training Partnership Act, or the regulations 
thereunder, shall be punished by a fine of not more than 
$5,000, or by imprisonment for not more than 1 year, or by both 
such fine and imprisonment.''.

                               [reference

  [Sec. 183. Effective on the date of enactment of this Act, 
all references in any other statute other than this Act, and 
other than in section 665 of title 18, United States Code, to 
the Comprehensive Employment and Training Act shall be deemed 
to refer to the Job Training Partnership Act.

                               [repealers

  [Sec. 184. (a) Effective on the date of enactment of this 
Act--
          [(1) the Comprehensive Employment and Training Act is 
        repealed;
          [(2) section 5(b) of the Comprehensive Employment and 
        Training Act Amendments of 1978 is repealed.

           [TITLE II--TRAINING SERVICES FOR THE DISADVANTAGED

                     Part A--Adult Training Program

[SEC. 201. STATEMENT OF PURPOSE.

  [It is the purpose of this part to establish programs to 
prepare adults for participation in the labor force by 
increasing their occupational and educational skills, resulting 
in improved long-term employability, increased employment and 
earnings, and reduced welfare dependency.

[SEC. 202. ALLOTMENT AND ALLOCATION.

  [(a) Allotment.--
          [(1) Territories.--Of the amount appropriated under 
        section 3(a)(1) for each fiscal year and available to 
        carry out this part, not more than one-quarter of 1 
        percent shall be allotted among Guam, the Virgin 
        Islands, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, the Federated States of 
        Micronesia, the Republic of the Marshall Islands, and 
        Palau.
          [(2) State reservation.--After determining the 
        amounts to be allotted under paragraph (1), the 
        Secretary shall allot 77 percent of the remainder to 
        the States for allocation to service delivery areas 
        within each State. Each State shall allocate to each 
        service delivery area within the State the amount 
        determined by the Secretary for such service delivery 
        area pursuant to the formula contained in subsection 
        (b). The remaining 23 percent shall be allotted in 
        accordance with subsection (c).
  [(b) Allocation to Service Delivery Areas.--
          [(1) Formula.--Subject to the provisions of paragraph 
        (2), of the amounts allocated to service delivery areas 
        for this part for each fiscal year--
                  [(A) 33\1/3\ percent shall be allocated on 
                the basis of the relative number of unemployed 
                individuals residing in areas of substantial 
                unemployment within each service delivery area 
                as compared to the total number of such 
                unemployed individuals in all such areas of 
                substantial unemployment in all service 
                delivery areas in all States;
                  [(B) 33\1/3\ percent shall be allocated on 
                the basis of the relative excess number of 
                unemployed individuals within each service 
                delivery area as compared to the total excess 
                number of unemployed individuals in all service 
                delivery areas in all States; and
                  [(C) 33\1/3\ percent shall be allocated on 
                the basis of the relative number of 
                economically disadvantaged adults within each 
                service delivery area as compared to the total 
                number of economically disadvantaged adults in 
                all service delivery areas in all States, 
                except that for any service delivery area 
                described in section 101(a)(4)(A)(iii), the 
                allocation shall be based on the higher of the 
                number of adults in families with an income 
                below the low-income level in such area or the 
                number of economically disadvantaged adults in 
                such area.
          [(2) Limitations.--
                  [(A) Minimum percentage.--No service delivery 
                area shall be allocated less than 90 percent of 
                its allocation percentage for the fiscal year 
                preceding the fiscal year for which the 
                determination is made.
                  [(B) Maximum percentage.--No service delivery 
                area shall be allocated more than 130 percent 
                of its allocation percentage for the fiscal 
                year preceding the fiscal year for which the 
                determination is made.
                  [(C) State minimum.--Notwithstanding 
                subparagraphs (A) and (B), the total allocation 
                for all service delivery areas within any one 
                State shall not be less than one-quarter of 1 
                percent of the total allocated to all service 
                delivery areas in all States.
                  [(D) Allocation percentage.--
                          [(i) In general.--Except as provided 
                        in clause (ii), for purposes of 
                        subparagraphs (A) and (B), the 
                        allocation percentage of a service 
                        delivery area for a fiscal year shall 
                        be the percentage of funds allocated to 
                        the service delivery area under this 
                        subsection.
                          [(ii) Fiscal year 1992.--For purposes 
                        of subparagraphs (A) and (B), the 
                        allocation percentage of a service 
                        delivery area for fiscal year 1992 
                        shall be the percentage of funds 
                        allocated to the service delivery area 
                        under part A of title II.
  [(c) State Activities.--
          [(1) Division.--Of the remaining 23 percent of funds 
        available for allotment to States under this part for 
        each fiscal year--
                  [(A) 5 percent of the funds available for 
                such allotment under this part shall be 
                allotted to the States in accordance with 
                paragraph (2), for overall administration, 
                management, and auditing activities relating to 
                programs under this title and for activities 
                described in sections 121 and 122;
                  [(B) 5 percent of the funds available for 
                such allotment under this part shall be 
                allotted to the States in accordance with 
                paragraph (2), to provide incentive grants 
                authorized under section 106(b)(7), in 
                accordance with paragraph (3);
                  [(C) 8 percent of the funds available for 
                such allotment under this part shall be 
                allotted to the States in accordance with 
                paragraph (2) to carry out section 123; and
                  [(D) 5 percent of the funds available for 
                such allotment under this part shall be 
                allotted to carry out section 204(d).
          [(2) Formula for allotment.--The allotments to each 
        State described in paragraph (1) shall be based on the 
        relative amount of funds allocated to all service 
        delivery areas within such State under subsection (b) 
        as compared to the amount of funds allocated to all 
        service delivery areas in all States under subsection 
        (b).
          [(3) Other uses.--
                  [(A) Capacity building and technical 
                assistance.--The Governor may use up to 33 
                percent of the amount allotted under paragraph 
                (1)(B) for providing capacity building and 
                technical assistance to service delivery areas 
                and service providers. Such use of funds may 
                include the development and training of service 
                delivery area and service provider staff and 
                the development of exemplary program 
                activities.
                  [(B) Nonduplication and coordination.--Funds 
                used under subparagraph (A)--
                          [(i) may not be used to duplicate the 
                        activities of the Capacity Building and 
                        Information and Dissemination Network 
                        established under section 453(b); and
                          [(ii) shall, to the extent 
                        practicable, be used to coordinate the 
                        activities under subparagraph (A) with 
                        the activities of the Network under 
                        section 453(b).
  [(d) Definitions and Rule.--
          [(1) Definitions.--As used in this section:
                  [(A) Economically disadvantaged adult.--The 
                term ``economically disadvantaged adult'' means 
                an individual who is age 22 through 72 and who 
                has, or is a member of a family that has, 
                received a total family income that, in 
                relation to family size, was not in excess of 
                the higher of--
                          [(i) the official poverty line (as 
                        defined by the Office of Management and 
                        Budget, and revised annually in 
                        accordance with section 673(2) of the 
                        Omnibus Budget Reconciliation Act of 
                        1981 (42 U.S.C. 9902(2)); or
                          [(ii) 70 percent of the lower living 
                        standard income level.
                  [(B) Excess number.--The term ``excess 
                number'' means, with respect to the excess 
                number of unemployed individuals within a 
                service delivery area, the number that 
                represents the number of unemployed individuals 
                in excess of 4.5 percent of the civilian labor 
                force in the service delivery area, or the 
                number that represents the number of unemployed 
                individuals in excess of 4.5 percent of the 
                civilian labor force in areas of substantial 
                unemployment in such service delivery area.
                  [(C) State.--The term ``State'' means any of 
                the several States, the District of Columbia, 
                and the Commonwealth of Puerto Rico.
          [(2) Special rule.--For the purposes of this section, 
        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 economically disadvantaged adults.

[ H4  deg.SEC. 203. ELIGIBILITY FOR SERVICES.

  [(a) In General.--Except as provided in subsection (c), an 
individual shall be eligible to participate in the program 
under this part only if such individual is--
          [(1) 22 years of age or older; and
          [(2) economically disadvantaged.
  [(b) Hard-To-Serve Individuals.--Not less than 65 percent of 
the participants in the program under this part, other than 
participants served under section 204(d), in each service 
delivery area shall be individuals who are included in 1 or 
more of the following categories:
          [(1) Individuals who are basic skills deficient.
          [(2) Individuals who are school dropouts.
          [(3) Individuals who are recipients of cash welfare 
        payments, including recipients under the JOBS program.
          [(4) Individuals who are offenders.
          [(5) Individuals with disabilities.
          [(6) Individuals who are homeless.
          [(7) Individuals who are in a category established 
        under subsection (d).
  [(c) Special Rule.--Not more than 10 percent of participants 
in a program assisted under this part, other than participants 
served under section 204(d), in each service delivery area may 
be individuals who are not economically disadvantaged if such 
individuals are age 22 or older and within 1 or more categories 
of individuals who face serious barriers to employment. Such 
categories may include the categories described in subsection 
(b), or categories such as displaced homemakers, veterans, 
alcoholics, or addicts.
  [(d) Additional Category.--A service delivery area conducting 
a program assisted under this part may add one category of 
individuals who face serious barriers to employment to the 
categories of eligible individuals described in subsection (b) 
if--
          [(1) the service delivery area submits a request to 
        the Governor identifying the additional category of 
        individuals and justifying the inclusion of such 
        category;
          [(2) the additional category of individuals is not 
        solely comprised of--
                  [(A) individuals with a poor work history; or
                  [(B) individuals who are unemployed; and
          [(3) the Governor approves the request submitted 
        under paragraph (1) and transmits a description of the 
        approved request to the Secretary, as part of the 
        Governor's coordination and special services plan under 
        section 121.

[SEC. 204. PROGRAM DESIGN.

  [(a) Essential Elements.--
          [(1) In general.--The programs under this part shall 
        include--
                  [(A) an objective assessment of the skill 
                levels and service needs of each participant, 
                which shall include a review of basic skills, 
                occupational skills, prior work experience, 
                employability, interests, aptitudes (including 
                interests and aptitudes for nontraditional 
                jobs), and supportive service needs, except 
                that a new assessment of a participant is not 
                required if the program determines it is 
                appropriate to use a recent assessment of the 
                participant conducted pursuant to another 
                education or training program (such as the JOBS 
                program);
                  [(B) development of service strategies that 
                shall identify the employment goal (including, 
                in appropriate circumstances, nontraditional 
                employment), appropriate achievement 
                objectives, and appropriate services for 
                participants taking into account the 
                assessments conducted pursuant to subparagraph 
                (A), except that a new service strategy for a 
                participant is not required if the program 
                determines it is appropriate to use a recent 
                service strategy developed for the participant 
                under another education or training program 
                (such as the JOBS program);
                  [(C) a review of the progress of each 
                participant in meeting the objectives of the 
                service strategy; and
                  [(D) each of the following services, which 
                shall be provided either directly or through 
                arrangement with other programs to a 
                participant where the assessment and the 
                service strategy indicate such services are 
                appropriate:
                          [(i) Basic skills training.
                          [(ii) Occupational skills training.
                          [(iii) Supportive services.
          [(2) Additional requirements.--
                  [(A) Information and referrals.--Each service 
                delivery area shall ensure that each 
                participant or applicant who meets the minimum 
                income eligibility criteria shall be provided--
                          [(i) information on the full array of 
                        applicable or appropriate services that 
                        are available through the service 
                        delivery area or other service 
                        providers, including those receiving 
                        funds under this Act; and
                          [(ii) referral to appropriate 
                        training and educational programs that 
                        have the capacity to serve the 
                        participant or applicant either on a 
                        sequential or concurrent basis.
                  [(B) Applicants not meeting enrollment 
                requirements.--
                          [(i) Service providers.--Each service 
                        provider shall ensure that an eligible 
                        applicant who does not meet the 
                        enrollment requirements of its 
                        particular program or who cannot be 
                        served shall be referred to the service 
                        delivery area for further assessment, 
                        as necessary, and referral to 
                        appropriate programs in accordance with 
                        subparagraph (A) to meet the basic 
                        skills and training needs of the 
                        applicant.
                          [(ii) Service delivery area.--The 
                        service delivery area shall ensure that 
                        appropriate referrals are made pursuant 
                        to clause (i), and shall maintain 
                        appropriate records of such referrals 
                        and the basis for such referrals.
  [(b) Authorized Services.--Subject to the limitations 
contained in subsection (c), services that may be made 
available to each participant under this part may include--
          [(1) direct training services, including--
                  [(A) basic skills training, including 
                remedial education, literacy training, and 
                English-as-a-second-language instruction;
                  [(B) institutional skills training;
                  [(C) on-the-job training;
                  [(D) assessment of the skill levels and 
                service needs of participants;
                  [(E) counseling, such as job counseling and 
                career counseling;
                  [(F) case management services;
                  [(G) education-to-work transition activities;
                  [(H) programs that combine workplace training 
                with related instruction;
                  [(I) work experience;
                  [(J) programs of advanced career training 
                that provide a formal combination of on-the-job 
                and institutional training and internship 
                assignments that prepare individuals for career 
                employment;
                  [(K) training programs operated by the 
                private sector, including programs operated by 
                labor organizations or by consortia of private 
                sector employers utilizing private sector 
                facilities, equipment, and personnel to train 
                workers in occupations for which demand exceeds 
                supply;
                  [(L) skill upgrading and retraining;
                  [(M) bilingual training;
                  [(N) entrepreneurial training;
                  [(O) vocational exploration;
                  [(P) training programs to develop work habits 
                to help individuals obtain and retain 
                employment;
                  [(Q) attainment of certificates of high 
                school equivalency;
                  [(R) preapprenticeship programs;
                  [(S) on-site, industry-specific training 
                programs supportive of industrial and economic 
                development;
                  [(T) customized training conducted with a 
                commitment by an employer or group of employers 
                to employ an individual upon successful 
                completion of the training; and
                  [(U) use of advanced learning technology for 
                education, job preparation, and skills 
                training; and
          [(2) training-related and supportive services, 
        including--
                  [(A) job search assistance;
                  [(B) outreach to make individuals aware of, 
                and encourage the use of, employment and 
                training services, including efforts to expand 
                awareness of training and placement 
                opportunities for limited-English proficient 
                individuals and individuals with disabilities;
                  [(C) outreach, to develop awareness of, and 
                encourage participation in, education, training 
                services, and work experience programs to 
                assist women in obtaining nontraditional 
                employment, and to facilitate the retention of 
                women in nontraditional employment, including 
                services at the site of training or employment;
                  [(D) specialized surveys not available 
                through other labor market information sources;
                  [(E) dissemination of information on program 
                activities to employers;
                  [(F) development of job openings;
                  [(G) programs coordinated with other Federal 
                employment-related activities;
                  [(H) supportive services, as defined in 
                section 4(24), necessary to enable individuals 
                to participate in the program;
                  [(I) needs-based payments and financial 
                assistance;
                  [(J) followup services with participants 
                placed in unsubsidized employment; and
                  [(K) services to obtain job placements for 
                individual participants.
  [(c) Design of Services.--
          [(1) Workplace context and integration.--Basic skills 
        training provided under this part shall, in appropriate 
        circumstances, have a workplace context and be 
        integrated with occupational skills training.
          [(2) Basic education or occupational skills.--
                  [(A) Additional services.--Except as provided 
                in subparagraph (B), work experience, job 
                search assistance, job search skills training, 
                and job club activities provided under this 
                part shall be accompanied by additional 
                services designed to increase the basic 
                education or occupational skills of a 
                participant.
                  [(B) Lack of appropriateness and 
                availability.--Each program assisted under this 
                part may only provide job search assistance, 
                job search skills training, and job club 
                activities to a participant without the 
                additional services described in subparagraph 
                (A) if--
                          [(i) the assessment and service 
                        strategy of a participant indicate that 
                        the additional services are not 
                        appropriate; and
                          [(ii) the  activities  are  not  
                        available  to  the  participant through 
                        the employment service or other public 
                        agencies.
          [(3) Needs-based payments.--Needs-based payments and 
        financial assistance provided under this part shall be 
        limited to payments necessary for participation in the 
        program assisted under this part in accordance with a 
        locally developed formula or procedure.
          [(4) Counseling and supportive services.--Counseling 
        and supportive services provided under this part may be 
        provided to a participant for a period up to 1 year 
        after the date on which the participant completes the 
        program.
          [(5) Prohibition on private actions.--Nothing in this 
        section shall be construed to establish a right for a 
        participant to bring an action to obtain services 
        described in the assessment or service strategy 
        developed under subsection (a)(1).
          [(6) Volunteers.--The service delivery area shall 
        make opportunities available for individuals who have 
        successfully participated in programs under this part 
        to volunteer assistance to participants in the form of 
        mentoring, tutoring, and other activities.
  [(d) Services for Older Individuals.--
          [(1) In general.--The Governor is authorized to 
        provide for job training programs that are developed in 
        conjunction with service delivery areas within the 
        State and that are consistent with the plan for the 
        service delivery area prepared and submitted in 
        accordance with section 104, and designed to ensure the 
        training and placement of older individuals in 
        employment opportunities with private business 
        concerns. The Governor shall ensure that the program 
        under this subsection provides services throughout the 
        State to older individuals on an equitable basis, 
        taking into account the relative share of the 
        population of older individuals described in paragraph 
        (6)(A) within the State, residing in each service 
        delivery area.
          [(2) Agreements.--
                  [(A) In general.--In carrying out this 
                subsection, the Governor shall, after 
                consultation with appropriate private industry 
                councils and chief elected officials, enter 
                into agreements with public agencies, nonprofit 
                private organizations (including veterans 
                organizations), private industry councils, 
                service delivery areas, and private business 
                concerns.
                  [(B) Priority.--In entering into the 
                agreements described in subparagraph (A), the 
                Governor shall give priority to national, 
                State, and local agencies and organizations 
                that have a record of demonstrated 
                effectiveness in providing training and 
                employment services to such older individuals.
          [(3) Considerations.--The Governor shall give 
        consideration to assisting programs involving training 
        for jobs in growth industries and jobs reflecting the 
        use of new technological skills.
          [(4) Coordination.--In providing the services 
        required by this subsection, the Governor shall make 
        efforts to coordinate the delivery of such services 
        with the delivery of services under title V of the 
        Older Americans Act of 1965 (42 U.S.C. 3056 et seq.).
          [(5) Eligibility.--
                  [(A) Economically disadvantaged.--Except as 
                provided in subparagraph (B), an individual 
                shall be eligible to participate in a job 
                training program under this subsection only if 
                the individual is economically disadvantaged 
                and is an older individual.
                  [(B) Special rule.--
                          [(i) Individuals facing serious 
                        barriers to employment.--An individual 
                        who is not economically disadvantaged 
                        as described in subparagraph (A) shall 
                        be eligible to participate in a job 
                        training program under this subsection 
                        if the individual faces serious 
                        barriers to employment, is an older 
                        individual, and meets income 
                        eligibility requirements under title V 
                        of the Older Americans Act of 1965 (42 
                        U.S.C. 3056 et seq.) subject to clause 
                        (ii).
                          [(ii) Limitation.--Not more than 10 
                        percent of all participants in a 
                        program assisted under this subsection 
                        shall be individuals who are not 
                        economically disadvantaged.
          [(6) Applicable requirements.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), the requirements of this Act 
                applicable to programs conducted under this 
                subsection shall be the same requirements 
                applicable to the other programs conducted 
                under this part.
                  [(B) Exceptions.--
                          [(i) Provisions not applicable.--The 
                        provisions of section 104, subsections 
                        (b)(7) and (j) of section 106, section 
                        109, section 203, and section 204(a)(2) 
                        shall not be applicable to programs 
                        conducted under this subsection.
                          [(ii) Governor.--With respect to the 
                        application of sections 106(b), 108(b), 
                        141(d)(3)(C), and 205 to programs 
                        conducted under this subsection, the 
                        term ``service delivery area'', as used 
                        in such provisions, means the Governor.
          [(7) Definition.--As used in this subsection, the 
        term ``older individual'' means an individual age 55 or 
        older.

[SEC. 205. LINKAGES.

  [(a) In General.--In conducting the program assisted under 
this part, service delivery areas shall establish appropriate 
linkages with other Federal programs. Such programs shall 
include, where feasible, programs assisted under--
          [(1) the Adult Education Act (20 U.S.C. 1201 et 
        seq.);
          [(2) the Carl D. Perkins Vocational and Applied 
        Technology Education Act (20 U.S.C. 2301 et seq.);
          [(3) the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
          [(4) part F of title IV of the Social Security Act 
        (42 U.S.C. 681 et seq.);
          [(5) the employment program established under section 
        6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
        2015(d)(4));
          [(6) the National Apprenticeship Act (29 U.S.C. 50 et 
        seq.);
          [(7) the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
        seq.);
          [(8) title V of the Older Americans Act of 1965 (42 
        U.S.C. 3056 et seq.);
          [(9) chapter 2 of title II of the Trade Act of 1974 
        (19 U.S.C. 2271 et seq.);
          [(10) the Stewart B. McKinney Homeless Assistance Act 
        (Public Law 100-77; 101 Stat. 482);
          [(11) the United States Housing Act of 1937 (42 
        U.S.C. 1437 et seq.);
          [(12) the National Literacy Act of 1991 (Public Law 
        102-73);
          [(13) the Head Start Act (42 U.S.C. 9831 et seq.) 
        (for purposes of child care services); and
          [(14) any other provisions of this Act.
  [(b) Other Appropriate Linkages.--In addition to the linkages 
required under subsection (a), each service delivery area 
receiving financial assistance under this part shall establish 
other appropriate linkages to enhance the provision of services 
under this part. Such linkages may be established with local 
educational agencies, local service agencies, public housing 
agencies, community-based organizations, business and labor 
organizations, volunteer groups working with disadvantaged 
adults, and other training, education, employment, economic 
development, and social service programs.

[ H4  deg.SEC. 206. TRANSFER OF FUNDS.

  [A service delivery area may transfer up to 10 percent of the 
amounts allocated to the service delivery area under section 
202(b) to the program under part C if such transfer is--
          [(1) described in the job training plan; and
          [(2) approved by the Governor.

          Part B--Summer Youth Employment and Training Program

[SEC. 251. PURPOSE.

  [It is the purpose of programs assisted under this part--
          [(1) to enhance the basic educational skills of 
        youth;
          [(2) to encourage school completion or enrollment in 
        supplementary or alternative school programs;
          [(3) to provide eligible youth with exposure to the 
        world of work; and
          [(4) to enhance the citizenship skills of youth.

[SEC. 252. AUTHORIZATION OF APPROPRIATIONS; ALLOTMENT AND ALLOCATION.

  [(a) Territorial and Native American Allocation.--From the 
funds appropriated under section 3(a)(2), the Secretary shall 
first allocate to Guam, the Virgin Islands, American Samoa, the 
Federated States of Micronesia, the Republic of the Marshall 
Islands, Palau, the Commonwealth of the Northern Mariana 
Islands, and entities eligible under section 401 the same 
percentage of funds as were available to such areas and 
entities for the summer youth program in the fiscal year 
preceding the fiscal year for which the determination is made.
  [(b) Use of Part C Formula for Allotment and Allocation.--The 
remainder of funds appropriated under section 3(a)(2) shall, 
for each fiscal year, be allotted among States and allocated 
among service delivery areas in accordance with section 262, 
except that no portion of such funds shall be reserved to carry 
out subsection (a)(1) or (c) of such section.

[SEC. 253. USE OF FUNDS.

  [(a) In General.--Funds available under this part may be used 
for--
          [(1) basic and remedial education, academic 
        enrichment institutional and on-the-job training, work 
        experience programs, youth corps programs, employment 
        counseling, occupational training, preparation for 
        work, outreach and enrollment activities, employability 
        assessment, job referral and placement, job search 
        assistance and job club activities, activities under 
        programs described in section 265(b), and any other 
        employment or job training activity designed to give 
        employment to eligible individuals or prepare the 
        individuals for, and place the individuals in, 
        employment;
          [(2) supportive services necessary to enable such 
        individuals to participate in the program; and
          [(3) administrative costs, not to exceed 15 percent 
        of the funds available under this part.
  [(b) Basic and Remedial Education.--
          [(1) In general.--A service delivery area shall 
        expend funds (available under this Act or otherwise 
        available to the service delivery area) for basic and 
        remedial education and training as described in the job 
        training plan under section 104.
          [(2) Education or training.--The education and 
        training authorized by paragraph (1) may be provided 
        by--
                  [(A) the year-round program under part C;
                  [(B) the Job Corps;
                  [(C) the JOBS program;
                  [(D) youth corps programs;
                  [(E) alternative or secondary schools; or
                  [(F) other education and training programs.
  [(c) Assessment and Service Strategy.--
          [(1) Assessment.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), the programs under this part 
                shall include an objective assessment of the 
                basic skills and supportive services needs of 
                each participant, which may include a review of 
                occupational skills, prior work experience, 
                employability, interests, and aptitudes.
                  [(B) Recent assessment.--A new assessment, or 
                a factor of such assessment, of a participant 
                is not required if the program determines it is 
                appropriate to use a recent assessment of the 
                participant conducted pursuant to another 
                education or training program (such as the JOBS 
                program or a regular high school academic 
                program).
          [(2) Service strategy.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), the programs under this part 
                shall include a service strategy for 
                participants, which may identify achievement 
                objectives, appropriate employment goals, and 
                appropriate services for participants, taking 
                into account the assessments conducted under 
                paragraph (1).
                  [(B) Recent service strategy.--A new service 
                strategy for a participant is not required if 
                the program determines it is appropriate to use 
                a recent service strategy developed for the 
                participant under another education or training 
                program (such as the JOBS program or a regular 
                high school academic program).
          [(3) Basic education and preemployment training.--The 
        programs under this part shall provide, either directly 
        or through arrangements with other programs, each of 
        the following services to a participant where the 
        assessment and the service strategy indicate such 
        services are appropriate:
                  [(A) Basic and Remedial Education.
                  [(B) Preemployment and Work Maturity Skills 
                Training.
          [(4) Integration of work and learning.--
                  [(A) Work experience.--Work experience 
                provided under this part, to the extent 
                feasible, shall include contextual learning 
                opportunities which integrate the development 
                of general competencies with the development of 
                academic skills.
                  [(B) Classroom training.--Classroom training 
                provided under this part shall, to the extent 
                feasible, include opportunities to apply 
                knowledge and skills relating to academic 
                subjects to the world of work.
  [(d) Followup Services.--Service delivery areas shall make 
followup services available for participants if the service 
strategy indicates such services are appropriate.
  [(e) Educational Linkages.--In conducting the program 
assisted under this part, service delivery areas shall 
establish linkages with the appropriate educational agencies 
responsible for service to participants. Such linkages shall 
include arrangements to ensure that there is a regular exchange 
of information relating to the progress, problems and needs of 
participants, including the results of assessments of the skill 
levels of participants.

[SEC. 254. LIMITATIONS.

  [(a) Use During Summer Months or Equivalent Vacation 
Period.--
          [(1) Summer months.--Except as provided in paragraph 
        (2), programs under this part shall be conducted during 
        the summer months.
          [(2) Vacation period.--A service delivery area may, 
        within the jurisdiction of any local educational agency 
        that operates schools on a year-round, full-time basis, 
        offer the programs under this part to participants 
        during a vacation period treated as the equivalent of a 
        summer vacation.
  [(b) Eligibility.--An individual shall be eligible to 
participate in the program assisted under this part if such 
individual--
          [(1) is age 14 through 21; and
          [(2)(A) is economically disadvantaged; or
          [(B) has been determined to meet the eligibility 
        requirements for free meals under the National School 
        Lunch Act (42 U.S.C. 1751 et seq.) during the most 
        recent school year.
  [(c) Concurrent Enrollment.--
          [(1) In general.--An eligible individual 
        participating in a program assisted under this part may 
        concurrently be enrolled in programs under part C. 
        Appropriate adjustment to the youth performance 
        standards (regarding attainment of competencies) under 
        paragraphs (4)(A)(i) and (5) of section 106(b) shall be 
        made to reflect the limited period of participation.
          [(2) Concurrent enrollment and transfers.--Youth 
        being served under this part or part C youth programs 
        are not required to be terminated from participation in 
        one program in order to enroll in the other. The 
        Secretary shall provide guidance to service delivery 
        areas on simplified procedures for concurrent 
        enrollment and transfers for youth from one program to 
        the other.
  [(d) Prohibition on Private Actions.--Nothing in this part 
shall be construed to establish a right for a participant to 
bring an action to obtain services described in the assessment 
or service strategy developed under section 253(c).

[SEC. 255. APPLICABLE PROVISIONS.

  [(a) Comparable Functions of Agencies and Officials.--Private 
industry councils established under title I, chief elected 
officials, State job training coordinating councils, and 
Governors shall have the same authority, duties, and 
responsibilities with respect to planning and administration of 
funds available under this part as the private industry 
councils, chief elected officials, State job training 
coordinating councils, and Governors have with respect to funds 
available under parts A and C.
  [(b) Program Goals and Objectives.--Each service delivery 
area shall establish written program goals and objectives that 
shall be used for evaluating the effectiveness of programs 
conducted under this part. Such goals and objectives may 
include--
          [(1) improvement in school retention and completion;
          [(2) improvement in academic performance, including 
        mathematics and reading comprehension;
          [(3) improvement in employability skills; and
          [(4) demonstrated coordination with other community 
        service organizations such as local educational 
        agencies, law enforcement agencies, and drug and 
        alcohol abuse prevention and treatment programs.

[ H4  deg.SEC. 256. TRANSFER OF FUNDS.

  [A service delivery area may transfer up to 20 percent of the 
funds provided under this part to the program under part C if 
such transfer is approved by the Governor.

                    [Part C--Youth Training Program

[SEC. 261. STATEMENT OF PURPOSE.

  [It is the purpose of the programs assisted under this part 
to improve the long-term employability of youth, enhance the 
educational, occupational, and citizenship skills of youth, 
encourage school completion or enrollment in alternative school 
programs, increase the employment and earnings of youth, reduce 
welfare dependency, and assist youth in addressing problems 
that impair the ability of youth to make successful transitions 
from school to work, apprenticeship, the military, or 
postsecondary education and training.

[SEC. 262. ALLOTMENT AND ALLOCATION.

  [(a) Allotment.--
          [(1) Territories.--Of the amount appropriated under 
        section 3(a)(1) for each fiscal year and available to 
        carry out this part, not more than one-quarter of 1 
        percent shall be allotted among Guam, the Virgin 
        Islands, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, the Federated States of 
        Micronesia, the Republic of the Marshall Islands, and 
        Palau.
          [(2) State reservation.--After determining the 
        amounts to be allotted under paragraph (1), the 
        Secretary shall allot 82 percent of the remainder to 
        the States for allocation to service delivery areas 
        within each State. Each State shall allocate to each 
        service delivery area within the State the amount 
        determined by the Secretary for such service delivery 
        area pursuant to the formula contained in subsection 
        (b). The remaining 18 percent shall be allotted in 
        accordance with subsection (c).
  [(b) Allocation to Service Delivery Areas.--
          [(1) Formula.--Subject to the provisions of paragraph 
        (2), of the amounts allocated to service delivery areas 
        for this part for each fiscal year--
                  [(A) 33\1/3\ percent shall be allocated on 
                the basis of the relative number of unemployed 
                individuals residing in areas of substantial 
                unemployment within each service delivery area 
                as compared to the total number of such 
                unemployed individuals in all such areas of 
                substantial unemployment in all service 
                delivery areas in all States;
                  [(B) 33\1/3\ percent shall be allocated on 
                the basis of the relative excess number of 
                unemployed individuals within each service 
                delivery area as compared to the total excess 
                number of unemployed individuals in all service 
                delivery areas in all States; and
                  [(C) 33\1/3\ percent shall be allocated on 
                the basis of the relative number of 
                economically disadvantaged youth within each 
                service delivery area as compared to the total 
                number of economically disadvantaged youth in 
                all service delivery areas in all States except 
                that, for any service delivery area described 
                in section 101(a)(4)(A)(iii), the allocation 
                shall be based on the higher of the number of 
                youth in families with an income below the low-
                income level in such area or the number of 
                economically disadvantaged youth in such area.
          [(2) Limitations.--
                  [(A) Minimum percentage.--No service delivery 
                area shall be allocated less than 90 percent of 
                its allocation percentage for the fiscal year 
                preceding the fiscal year for which the 
                determination is made.
                  [(B) Maximum percentage.--No service delivery 
                area shall be allocated more than 130 percent 
                of its allocation percentage for the fiscal 
                year preceding the fiscal year for which the 
                determination is made.
                  [(C) State minimum.--Notwithstanding 
                subparagraphs (A) and (B), the total allocation 
                for all service delivery areas within any one 
                State shall not be less than one-quarter of 1 
                percent of the total allocated to all service 
                delivery areas in all States.
                  [(D) Allocation percentage.--
                          [(i) In general.--Except as provided 
                        in clause (ii), for purposes of 
                        subparagraphs (A) and (B), the 
                        allocation percentage of a service 
                        delivery area for a fiscal year shall 
                        be the percentage of funds allocated to 
                        the service delivery area under this 
                        subsection.
                          [(ii) Fiscal year 1992.--For purposes 
                        of subparagraphs (A) and (B), the 
                        allocation percentage of a service 
                        delivery area for fiscal year 1992 
                        shall be the percentage of funds 
                        allocated to the service delivery area 
                        under part A of title II.
  [(c) State Activities.--
          [(1) Division.--Of the remaining 18 percent of funds 
        available for allotment to States under this part for 
        each fiscal year--
                  [(A) 5 percent of the funds available for 
                such allotment under this part shall be 
                allotted to the States in accordance with 
                paragraph (2), for overall administration, 
                management, and auditing activities relating to 
                programs under this title and for activities 
                described in sections 121 and 122;
                  [(B) 5 percent of the funds available for 
                such allotment under this part shall be 
                allotted to the States in accordance with 
                paragraph (2), to provide incentive grants 
                authorized under section 106(b)(7), in 
                accordance with paragraph (3); and
                  [(C) 8 percent of the funds available for 
                such allotment under this part shall be 
                allotted to the States in accordance with 
                paragraph (2) to carry out section 123.
          [(2) Formula for allocation.--The allotments to each 
        State described in paragraph (1) shall be based on the 
        relative amount of funds allocated to all service 
        delivery areas within such State under subsection (b) 
        as compared to the amount of funds allocated to all 
        service delivery areas in all States under subsection 
        (b).
          [(3) Other uses.--
                  [(A) Capacity building and technical 
                assistance.--The Governor may use up to 33 
                percent of the amount allotted under paragraph 
                (1)(B) for providing capacity building and 
                technical assistance to service delivery areas 
                and service providers. Such use of funds may 
                include the development and training of service 
                delivery area and service provider staff and 
                the development of exemplary program 
                activities.
                  [(B) Nonduplication and coordination.--Funds 
                used under subparagraph (A)--
                          [(i) may not be used to duplicate the 
                        activities of the Capacity Building and 
                        Information and Dissemination Network 
                        established under section 453(b); and
                          [(ii) shall, to the extent 
                        practicable, be used to coordinate the 
                        activities under subparagraph (A) with 
                        the activities of the Network under 
                        section 453(b).
  [(d) Definitions and Rule.--
          [(1) Definitions.--As used in this section:
                  [(A) Economically disadvantaged youth.--The 
                term ``economically disadvantaged youth'' means 
                an individual who is age 16 through 21 and who 
                has, or is a member of a family that has, 
                received a total family income that, in 
                relation to family size, was not in excess of 
                the higher of--
                          [(i) the official poverty line (as 
                        defined by the Office of Management and 
                        Budget, and revised annually in 
                        accordance with section 673(2) of the 
                        Omnibus Budget Reconciliation Act of 
                        1981 (42 U.S.C. 9902(2)); or
                          [(ii) 70 percent of the lower living 
                        standard income level.
                  [(B) Excess number.--The terms ``excess 
                number'' and ``State'' shall have the meanings 
                given the terms in subparagraphs (B) and (C), 
                respectively, of section 202(d)(1).
          [(2) Special rule.--For the purposes of this section, 
        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 economically disadvantaged youth.

[SEC. 263. ELIGIBILITY FOR SERVICES.

  [(a) In-School Youth.--Except as provided in subsections (e) 
and (g), an individual who is in school shall be eligible to 
participate in the program under this part if such individual--
          [(1)(A) is age 16 through 21; or
          [(B) if provided in the job training plan, is age 14 
        through 21; and
          [(2)(A) is economically disadvantaged;
          [(B) is participating in a compensatory education 
        program under title I of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 2711 et seq.); or
          [(C) has been determined to meet the eligibility 
        requirements for free meals under the National School 
        Lunch Act (42 U.S.C. 1751 et seq.) during the most 
        recent school year.
  [(b) Hard-To-Serve Individuals who are In-School Youth.--Not 
less than 65 percent of the in-school individuals who 
participate in a program under this part shall be individuals 
who are included in one or more of the following categories:
          [(1) Individuals who are basic skills deficient.
          [(2) Individuals with educational attainment that is 
        1 or more grade levels below the grade level 
        appropriate to the age of the individuals.
          [(3) Individuals who are pregnant or parenting.
          [(4) Individuals  with  disabilities,  including  a  
        learning  disability.
          [(5) Individuals who are homeless or run-away youth.
          [(6) Individuals who are offenders.
          [(7) Individuals within a category established under 
        subsection (h).
  [(c) Out-Of-School Youth.--Except as provided in subsection 
(e), an individual who is out of school shall be eligible to 
participate in the program under this part if such individual 
is--
          [(1) age 16 through 21; and
          [(2) economically disadvantaged.
  [(d) Hard-To-Serve Individuals who are Out-of-School Youth.--
Not less than 65 percent of the out-of-school individuals who 
participate in a program under this part shall be individuals 
who are included in 1 or more of the following categories:
          [(1) Individuals who are basic skills deficient.
          [(2) Individuals who are school dropouts (subject to 
        the conditions described in section 264(d)(2)).
          [(3) Individuals who are pregnant or parenting.
          [(4) Individuals  with  disabilities,  including  a  
        learning  disability.
          [(5) Individuals who are homeless or run-away youth.
          [(6) Individuals who are offenders.
          [(7) Individuals in a category established under 
        subsection (h).
  [(e) Exceptions.--Not more than 10 percent of participants in 
a program assisted under this part in each service delivery 
area may be individuals who do not meet the requirements of 
subsection (a)(2) or (c)(2), if such individuals are within one 
or more categories of individuals who face serious barriers to 
employment. Such categories may include the categories 
described in subsections (b) and (d), or categories such as 
individuals with limited-English language proficiency, 
alcoholics, or drug addicts.
  [(f) Ratio of Out-Of-School to In-School Youth.--
          [(1) In general.--Except as provided in paragraph 
        (2), not less than 50 percent of the participants in 
        the program under this part in each service delivery 
        area shall be out-of-school individuals who meet the 
        requirements of subsection (c), (d), or (e).
          [(2) Counting of in-school individuals.--In-school 
        individuals served as a part of a schoolwide project 
        under subsection (g) shall not be counted as a part of 
        the ratio of in-school individuals to out-of-school 
        individuals.
  [(g) Schoolwide Projects for Low-Income Schools.--
          [(1) In general.--In addition to the individuals 
        described in subsection (e), an individual who does not 
        meet the requirements of subsection (a)(2) may 
        participate in the programs assisted under this part if 
        such individual is enrolled in a public school--
                  [(A) that is located in a poverty area;
                  [(B) that is served by a local educational 
                agency that is eligible for assistance under 
                title I of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 2711 et seq.);
                  [(C) in which not less than 70 percent of the 
                students enrolled are included in the 
                categories described in subsection (b); and
                  [(D) that conducts a program under a 
                cooperative arrangement that meets the 
                requirements of section 265(d).
          [(2) Definition.--For the purposes of paragraph (1), 
        the term ``poverty area'' means an urban census tract 
        or a nonmetropolitan county with a poverty rate of 30 
        percent or more, as determined by the Bureau of the 
        Census.
  [(h) Additional Category.--A service delivery area conducting 
a program assisted under this part may add one category of 
youth who face serious barriers to employment to the categories 
of eligible individuals specified in subsection (b) and one 
category to the categories of eligible individuals described in 
subsection (d) if--
          [(1) the service delivery area submits a request to 
        the Governor identifying the additional category of 
        individuals and justifying the inclusion of such 
        category;
          [(2) the additional category of individuals is not 
        solely comprised of--
                  [(A) individuals with a poor work history; or
                  [(B) individuals who are unemployed; and
          [(3) the Governor approves the request submitted 
        under paragraph (1) and transmits a description of the 
        approved request to the Secretary, as part of the 
        Governor's coordination and special services plan under 
        section 121.

[ H4  deg.SEC. 264. PROGRAM DESIGN.

  [(a) Year-Round Operation.--The programs under this part 
shall be conducted on a year-round basis. Services shall be 
made available on a multiyear basis as appropriate.
  [(b) Essential Elements.--
          [(1) In general.--The programs under this part shall 
        include--
                  [(A) an objective assessment of the skill 
                levels and service needs of each participant, 
                which assessment shall include a review of 
                basic skills, occupational skills, prior work 
                experience, employability, interests, aptitudes 
                (including interests and aptitudes for 
                nontraditional jobs), and supportive service 
                needs, except that a new assessment of a 
                participant is not required if the program 
                determines it is appropriate to use a recent 
                assessment of the participant conducted under 
                another education or training program (such as 
                the JOBS program);
                  [(B) development of service strategies that 
                shall identify the employment goal (including, 
                in appropriate circumstances, nontraditional 
                employment), appropriate achievement 
                objectives, and appropriate services for 
                participants taking into account the 
                assessments conducted pursuant to subparagraph 
                (A), except that a new service strategy for a 
                participant is not required if the program 
                determines it is appropriate to use a recent 
                service strategy developed for the participant 
                under another education or training program 
                (such as the JOBS program);
                  [(C) a review of the progress of each 
                participant in meeting the objectives of the 
                service strategy; and
                  [(D) each of the following services, which 
                shall be provided either directly or through 
                arrangement with other programs to a 
                participant where the assessment and the 
                service strategy indicate such services are 
                appropriate:
                          [(i) Basic skills training.
                          [(ii) Occupational skills training.
                          [(iii) Preemployment   and   work   
                        maturity   skills training.
                          [(iv) Work experience combined with 
                        skills training.
                          [(v) Supportive services.
          [(2) Additional requirements.--
                  [(A) Information and referrals.--Each service 
                delivery area shall ensure that each 
                participant or applicant who meets the minimum 
                income eligibility criteria shall be provided--
                          [(i) information on the full array of 
                        applicable or appropriate services that 
                        are available through the service 
                        delivery area or other service 
                        providers, including those receiving 
                        funds under this Act; and
                          [(ii) referral to appropriate 
                        training and educational programs that 
                        have the capacity to serve the 
                        participant or applicant either on a 
                        sequential or concurrent basis.
                  [(B) Applicants not meeting enrollment 
                requirements.--
                          [(i) Service providers.--Each service 
                        provider shall ensure that an eligible 
                        applicant who does not meet the 
                        enrollment requirements of its 
                        particular program or who cannot be 
                        served shall be referred to the service 
                        delivery area for further assessment, 
                        as necessary, and referral to 
                        appropriate programs in accordance with 
                        subparagraph (A) to meet the basic 
                        skills and training needs of the 
                        applicant.
                          [(ii) Service delivery area.--The 
                        service delivery area  shall  ensure  
                        that  appropriate  referrals  are made 
                        pursuant to clause (i), and shall 
                        maintain appropriate records of such 
                        referrals and the basis for such 
                        referrals.
  [(c) Authorized Services.--Subject to the limitations 
contained in subsection (d), services which may be made 
available to youth with funds provided under this part may 
include--
          [(1) direct training services, including--
                  [(A) the services described in section 
                204(b)(1);
                  [(B) tutoring and study skills training;
                  [(C) alternative high school services within 
                programs that meet the requirements of section 
                141(o)(1);
                  [(D) instruction leading to high school 
                completion or the equivalent;
                  [(E) mentoring;
                  [(F) limited internships in the private 
                sector;
                  [(G) training or education that is combined 
                with community and youth service opportunities 
                in public agencies, nonprofit agencies, and 
                other appropriate agencies, institutions, and 
                organizations, including youth corps programs;
                  [(H) entry employment experience programs;
                  [(I) school-to-work transition services;
                  [(J) school-to-postsecondary education 
                transition services;
                  [(K) school-to-apprenticeship transition 
                services; and
                  [(L) preemployment and work maturity skills 
                training; and
          [(2) training-related and supportive services, 
        including--
                  [(A) the services described in section 
                204(b)(2);
                  [(B) drug and alcohol abuse counseling and 
                referral;
                  [(C) services encouraging parental, spousal, 
                and other significant adult involvement in the 
                program of the participant; and
                  [(D) cash incentives and bonuses based on 
                attendance and performance in a program.
  [(d) Additional Requirements.--
          [(1) Strategies and services.--In developing service 
        strategies and designing services for the program under 
        this part, the service delivery area and private 
        industry council shall take into consideration 
        exemplary program strategies and practices, including 
        the strategies and practices of model programs selected 
        for replication under section 453(c).
          [(2) School dropouts.--
                  [(A) Participation requirements.--In order to 
                participate in a program assisted under this 
                part, except for interim periods, an individual 
                who is under the age of 18 and a school dropout 
                shall enroll in and attend a school, course, or 
                program described in clause (ii) or (iii) of 
                subparagraph (B).
                  [(B) Service delivery requirements.--
                          [(i) In general.--Each service 
                        delivery area shall make available, in 
                        accordance with this subparagraph, to 
                        each participant in the program who is 
                        under the age of 18 and is a school 
                        dropout, at least 2 options for school 
                        attendance. Such options shall be 
                        provided concurrently or sequentially 
                        with other services provided under this 
                        part to each such participant as a part 
                        of the training of such participant.
                          [(ii) School attendance.--Each 
                        service delivery area shall provide, as 
                        one of the options for school 
                        attendance, an option for each such 
                        participant to enroll in and attend a 
                        high school equivalency program.
                          [(iii) Additional option.--Each 
                        service delivery area shall provide, as 
                        a second option for school attendance 
                        for each such participant--
                                  [(I) an option to reenroll in 
                                and attend school;
                                  [(II) an option to enroll in 
                                and attend an alternative high 
                                school; or
                                  [(III) an option to enroll in 
                                and attend an alternative 
                                course of study approved by the 
                                local educational agency.
          [(3) Skills training.--
                  [(A) Preemployment and work maturity skills 
                training.--Preemployment and work maturity 
                skills training authorized by this part shall 
                be accompanied by either work experience or 
                other additional services designed to increase 
                the basic education or occupational skills of a 
                participant. The additional services may be 
                provided, concurrently or sequentially, under 
                other education and training programs, 
                including the Job Corps and the JOBS program.
                  [(B) Additional services.--Work experience, 
                job search assistance, job search skills 
                training, and job club activities provided 
                under this part shall be accompanied by 
                additional services designed to increase the 
                basic education or occupational skills of a 
                participant. The additional services may be 
                provided, concurrently or sequentially, under 
                other education and training programs, 
                including the Job Corps and the JOBS program.
                  [(C) On-the-job training.--
                          [(i) Positions.--On-the-job training 
                        authorized under this part shall only 
                        be available in positions that--
                                  [(I) pay the participant a 
                                wage that equals or exceeds the 
                                average wage at placement in 
                                the service delivery area for 
                                participants under part A; and
                                  [(II) have career advancement 
                                potential.
                          [(ii) Formal program or structured 
                        job training.--On-the-job training 
                        authorized under this part shall 
                        include a formal program of structured 
                        job training that will provide 
                        participants with an orderly sequence 
                        of instruction in work maturity skills, 
                        general employment competencies, and 
                        occupationally specific skills.
                          [(iii) Participation requirement.--In 
                        order to participate in on-the-job 
                        training authorized under this part, 
                        except for interim periods, an 
                        individual who has not attained a high 
                        school diploma or its equivalent shall 
                        concurrently enroll in and attend a 
                        school, course, or program described in 
                        clause (ii) or (iii) of paragraph 
                        (2)(B).
          [(4) Needs-based payments.--Needs-based payments and 
        financial assistance provided under this part shall be 
        limited to payments necessary for participation in the 
        program assisted under this part in accordance with a 
        locally developed formula or procedure.
          [(5) Counseling and supportive services.--Counseling 
        and supportive services provided under this part may be 
        provided to a participant for a period of up to 1 year 
        after the date on which the participant completes the 
        program.
          [(6) Prohibition on private actions.--Nothing in this 
        section shall be construed to establish a right for a 
        participant to bring an action to obtain services 
        described in the assessment or service strategy 
        developed under subsection (b)(1).
          [(7) Volunteers.--The service delivery area shall 
        make opportunities available for successful individuals 
        who have previously participated in programs under this 
        part to volunteer assistance to participants in the 
        form of mentoring, tutoring, and other activities.

[ H4  deg.SEC. 265. LINKAGES.

  [(a) Educational Linkages.--In conducting the program 
assisted under this part, service delivery areas shall 
establish linkages with the appropriate educational agencies 
responsible for service to participants. Such linkages shall 
include--
          [(1) formal agreements with local educational 
        agencies that will identify--
                  [(A) the procedures for referring and serving 
                in-school youth;
                  [(B) the methods of assessment of in-school 
                youth; and
                  [(C) procedures for notifying the program 
                when a youth drops out of the school system;
          [(2) arrangements to ensure that the program under 
        this part supplements existing programs provided by 
        local educational agencies to in-school youth;
          [(3) arrangements to ensure that the program under 
        this part utilizes, to the extent possible, existing 
        services provided by local educational agencies to out-
        of-school youth; and
          [(4) arrangements to ensure that for in-school 
        participants there is a regular exchange of information 
        between the program and the educational agency relating 
        to participant progress, problems, and needs, 
        including, in appropriate circumstances, interim 
        assessment results.
  [(b) Education and Training Program Linkages.--In conducting 
the program assisted under this part, service delivery areas 
shall establish appropriate linkages with other education and 
training programs authorized under Federal law. Such programs 
shall include, where feasible, programs assisted under--
          [(1) part B of title IV (the Job Corps);
          [(2) parts A through C of title I of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 2711 et 
        seq.);
          [(3) the Carl D. Perkins Vocational and Applied 
        Technology Education Act (20 U.S.C. 2301 et seq.);
          [(4) the Individuals with Disabilities Education Act 
        (20 U.S.C. 1400 et seq.);
          [(5) the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
          [(6) part F of title IV of the Social Security Act 
        (JOBS) (42 U.S.C. 681 et seq.);
          [(7) the Food Stamp Act (7 U.S.C. 2011 et seq.);
          [(8) the National Apprenticeship Act (29 U.S.C. 50 et 
        seq.);
          [(9) the Stewart B. McKinney Homeless Assistance Act 
        (Public Law 100-77; 101 Stat. 482); and
          [(10) any other provisions of this Act.
  [(c) Other Programs.--In addition to the linkages required 
under subsections (a) and (b), service delivery areas receiving 
financial assistance under this part shall establish other 
appropriate linkages to enhance the provision of services under 
this part. Such linkages may be established with State and 
local service agencies, public housing agencies, community-
based organizations, business and labor organizations, 
volunteer groups working with at-risk youth, parents and family 
members, juvenile justice systems, and other training, 
education, employment and social service programs, including 
programs conducted under part A.
  [(d) Schoolwide Projects for Low-Income Schools.--In 
conducting a program serving individuals specified in section 
263(g), the service delivery area shall establish a cooperative 
arrangement with the appropriate local educational agency that 
shall, in addition to the other requirements of this section, 
include--
          [(1) a description of the ways in which the program 
        will supplement the educational program of the school;
          [(2) identification of measurable goals to be 
        achieved by the program and provision for assessing the 
        extent to which such goals are met;
          [(3) a description of the ways in which the program 
        will use resources provided under this part and 
        resources provided under other education programs to 
        achieve the goals identified in paragraph (2);
          [(4) a description of the number of individuals to be 
        served; and
          [(5) assurances that the resources provided under 
        this part shall be used to supplement and not supplant 
        existing sources of funds.

[ H4  deg.SEC. 266. TRANSFER OF FUNDS.

  [A service delivery area may transfer up to 10 percent of the 
amounts allocated to the service delivery area under section 
262(b) to the program under part A if such transfer is--
          [(1) described in the job training plan; and
          [(2) approved by the Governor.

=======================================================================


  Note.--Set forth is section 701 of the Job Training Reform Amendments 
of 1992 (Public Law 102-367) as follows:

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. EFFECTIVE DATE AND TRANSITION PROVISIONS.

  (a) In General.--Except as otherwise provided in this section, this 
Act and the amendments made by this Act shall take effect on July 1, 
1993.
  (b) Performance Standards.--The Secretary of Labor shall issue 
revised performance standards under the amendments made by section 115 
as soon as the Secretary determines sufficient data are available, but 
not later than July 1, 1994, except that with respect to the factor of 
retention in unsubsidized employment specified in section 106(b)(3)(B) 
of the Job Training Partnership Act (as amended by section 115), the 
requirement that such retention be for not less than 6 months shall 
take effect not later than July 1, 1995.
  (c) Interim Training Services Formula.--
          (1) Level of funding.--If the amount appropriated to carry 
        out parts A and C of title II of the Job Training Partnership 
        Act for fiscal year 1993 is less than the sum of--
                  (A) $25,000,000; and
                  (B) the amount appropriated to carry out part A of 
                title II of such Act, as in effect on the day before 
                the date of enactment of this Act, for fiscal year 
                1992,
        the amendment made by section 202 of this Act shall not take 
        effect on July 1, 1993, and section 202 of the Job Training 
        Partnership Act shall be amended to read as follows:

[``SEC. 202. ALLOTMENT AND ALLOCATION.

  [``(a) Allotment.--
          [``(1) Territories.--Not more than $5,000,000 of the amount 
        appropriated pursuant to section 3(a)(1) for each fiscal year 
        and available for this part shall be allotted among Guam, the 
        Virgin Islands, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, the Federated States of Micronesia, 
        the Republic of the Marshall Islands, and Palau.
          [``(2) States.--Subject to the provisions of paragraph (3), 
        of the remainder of the amount available for this part for each 
        fiscal year--
                  [``(A) 33\1/3\ percent shall be allotted on the basis 
                of the relative number of unemployed individuals 
                residing in areas of substantial unemployment in each 
                State as compared to the total number of such 
                unemployed individuals in all such areas of substantial 
                unemployment in all the States;
                  [``(B) 33\1/3\ percent shall be allotted on the basis 
                of the relative excess number of unemployed individuals 
                who reside in each State as compared to the total 
                excess number of unemployed individuals in all the 
                States; and
                  [``(C) 33\1/3\ percent shall be allotted on the basis 
                of the relative number of economically disadvantaged 
                adults within each State compared to the total number 
                of economically disadvantaged adults in all States, 
                except that, for the allotment for any State in which 
                there is any service delivery area described in section 
                101(a)(4)(A)(iii), the allotment shall be based on the 
                higher of the number of adults in families with an 
                income below the low-income level in such area or the 
                number of economically disadvantaged adults in such 
                area.
          [``(3) Limitations.--
                  [``(A) State minimum.--No State shall receive less 
                than one-quarter of 1 percent of the amounts available 
                for allotment to the States under this subsection from 
                the remainder described in paragraph (2) for each 
                fiscal year.
                  [``(B) Minimum percentage.--No State shall be 
                allotted less than 90 percent of its allotment 
                percentage for the fiscal year preceding the fiscal 
                year for which the determination is made.
                  [``(C) Allotment percentage.--
                          [``(i) In general.--Except as provided in 
                        clause (ii), for purposes of subparagraph (B), 
                        the allotment percentage of a State for a 
                        fiscal year shall be the percentage of funds 
                        allotted to the State under this subsection.
                          [``(ii) Fiscal year 1992.--For purposes of 
                        subparagraph (B), the allocation percentage of 
                        a State for fiscal year 1992 shall be the 
                        percentage of funds allotted to the State under 
                        section 201, as in effect on the day before the 
                        date of enactment of the Job Training Reform 
                        Amendments of 1992.
  [``(b) Allocation to Service Delivery Areas.--
          [``(1) Formula.--The Governor shall, in accordance with 
        section 162, allocate 77 percent of the allotment of the State 
        under subsection (a) for each fiscal year among service 
        delivery areas within the State, and shall ensure that, subject 
        to the provisions of paragraph (3), of the amount allocated 
        under this subsection--
                  [``(A) 33\1/3\ percent shall be allocated on the 
                basis of the relative number of unemployed individuals 
                residing in areas of substantial unemployment in each 
                service delivery area as compared to the total number 
                of such unemployed individuals in all such areas of 
                substantial unemployment in the State;
                  [``(B) 33\1/3\ percent shall be allocated on the 
                basis of the relative excess number of unemployed 
                individuals who reside in each service delivery area as 
                compared to the total excess number of unemployed 
                individuals in all service delivery areas in the State; 
                and
                  [``(C) 33\1/3\ percent shall be allocated on the 
                basis of the relative number of economically 
                disadvantaged adults within each service delivery area 
                compared to the total number of economically 
                disadvantaged adults in the State, except that the 
                allocation for any service delivery area described in 
                section 101(a)(4)(A)(iii) shall be based on the higher 
                of the number of adults in families with an income 
                below the low-income level in such area or the number 
                of economically disadvantaged adults in such area.
          [``(2) Limitations.--
                  [``(A) Minimum percentage.--No service delivery area 
                within any State shall be allocated an amount equal to 
                less than 90 percent of the average of its allocation 
                percentage for the 2 preceding fiscal years preceding 
                the fiscal year for which the determination is made. If 
                the amounts appropriated pursuant to section 3(a)(1) 
                for a fiscal year and available to carry out this part 
                are not sufficient to provide an amount equal to at 
                least 90 percent of such allocation percentage to each 
                such area, the amounts allocated to each area shall be 
                ratably reduced.
                  [``(B) Allocation percentage.--
                          [``(i) In general.--Except as provided in 
                        clause (ii), for purposes of subparagraph (A), 
                        the allocation percentage of a service delivery 
                        area for a fiscal year shall be the percentage 
                        of funds allocated to the service delivery area 
                        under this subsection.
                          [``(ii) Fiscal year 1992.--For purposes of 
                        subparagraph (A), the allocation percentage of 
                        a service delivery area for fiscal year 1992 
                        shall be the percentage of funds allocated to 
                        the service delivery area under part A of title 
                        II.
  [``(c) State Activities.--
          [``(1) Division.--Of the remaining 23 percent of the 
        allotment of the State under subsection (a) for each fiscal 
        year--
                  [``(A) 5 percent of such allotment of the State for 
                each fiscal year shall be available to the Governor of 
                the State to be used for overall administration, 
                management, and auditing activities relating to 
                programs under this title and for activities described 
                in sections 121 and 122;
                  [``(B) 5 percent of such allotment of each State for 
                each fiscal year shall be available to provide 
                incentive grants authorized under section 106(b)(7), in 
                accordance with paragraph (2);
                  [``(C) 8 percent of the allotment of each State for 
                each fiscal year shall be available to carry out 
                section 123; and
                  [``(D) 5 percent of such allotment of each State for 
                each fiscal year shall be available to carry out 
                section 204(d).
          [``(2) Other uses.--
                  [``(A) Capacity building and technical assistance.--
                The Governor may use up to 33 percent of the amount 
                allotted under paragraph (1)(B) for providing capacity 
                building and technical assistance to service delivery 
                areas and service providers. Such use of funds may 
                include the development and training of service 
                delivery area and service provider staff and the 
                development of exemplary program activities.
                  [``(B) Nonduplication and coordination.--Funds used 
                under subparagraph (A)--
                          [``(i) may not be used to duplicate the 
                        activities of the Capacity Building and 
                        Information and Dissemination Network 
                        established under section 453(b); and
                          [``(ii) shall, to the extent practicable, be 
                        used to coordinate the activities under 
                        subparagraph (A) with the activities of the 
                        Network under section 453(b).
  [``(d) Definitions and Rule.--As used in this section:
          [``(1) Definitions.--
                  [``(A) Economically disadvantaged adult.--The term 
                `economically disadvantaged adult' means an individual 
                who is age 22 through 72 and who has, or is a member of 
                a family that has, received a total family income 
                (exclusive of unemployment compensation, child support 
                payments, and welfare payments) that, in relation to 
                family size, was not in excess of the higher of--
                          [``(i) the official poverty line (as defined 
                        by the Office of Management and Budget, and 
                        revised annually in accordance with section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981 (42 U.S.C. 9902(2)); or
                          [``(ii) 70 percent of the lower living 
                        standard income level.
                  [``(B) Excess number.--The term `excess number' 
                means--
                          [``(i) with respect to the excess number of 
                        unemployed individuals within a State--
                                  [``(I) the number that represents the 
                                number of unemployed individuals in 
                                excess of 4.5 percent of the civilian 
                                labor force in the State; or
                                  [``(II) the number that represents 
                                the number of unemployed individuals in 
                                excess of 4.5 percent of the civilian 
                                labor force in areas of substantial 
                                unemployment in such State; and
                          [``(ii) with respect to the excess number of 
                        unemployed individuals within a service 
                        delivery area--
                                  [``(I) the number that represents the 
                                number of unemployed individuals in 
                                excess of 4.5 percent of the civilian 
                                labor force in the service delivery 
                                area; or
                                  [``(II) the number that represents 
                                the number of unemployed individuals in 
                                excess of 4.5 percent of the civilian 
                                labor force in areas of substantial 
                                unemployment in such service delivery 
                                area.
                  [``(C) State.--The term `State' means any of the 
                several States, the District of Columbia, and the 
                Commonwealth of Puerto Rico.
          [``(2) Special rule.--For the purposes of this section, 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 economically disadvantaged 
        adults.''.]
          (2) Effective date.--Any amendment made by paragraph (1) 
        shall take effect on July 1, 1993.
  (d) Permanent Training Services Formula.--
          (1) Level of funding.--If section 202 of the Job Training 
        Partnership Act is amended in accordance with subsection (c) 
        and the amount appropriated to carry out parts A and C of title 
        II of the Job Training Partnership Act for a fiscal year is not 
        less than the sum of--
                  (A) $25,000,000; and
                  (B) the amount appropriated to carry out part A of 
                title II of such Act, as in effect on the day before 
                the date of enactment of this Act, for fiscal year 
                1992,
        the amendment made by section 202 of this Act shall take 
        effect.
          (2) Effective date.--Any amendment made by paragraph (1) 
        shall take effect on October 1 of the fiscal year described in 
        paragraph (1).
  (e) Summer Youth Program Transfers.--
          (1) In general.--Section 205 and the amendment made by such 
        section 205 shall take effect on the date of enactment of this 
        Act.
          (2) Transition.--A service delivery area may transfer up to 
        10 percent of the amounts allocated for such area for the 
        summer of 1992 under part B of title II of the Job Training 
        Partnership Act for program year 1992 to provide services to 
        youth pursuant to the program under part A of such title, to 
        provide services to youth under such part A, if such transfer 
        is approved by the Governor.
  (f) Interim Training Services Formula.--
          (1) Level of funding.--If the amount appropriated to carry 
        out parts A and C of title II of the Job Training Partnership 
        Act for fiscal year 1993 is less than the sum of--
                  (A) $25,000,000; and
                  (B) the amount appropriated to carry out part A of 
                title II of such Act, as in effect on the day before 
                the date of enactment of this Act, for fiscal year 
                1992,
        the amendment made by section 207 of this Act shall not take 
        effect on July 1, 1993, and title II of the Job Training 
        Partnership Act shall be amended by inserting after section 261 
        of such Act the following:

[``SEC. 262. ALLOTMENT AND ALLOCATION.

  [``(a) Allotment.--
          [``(1) Territories.--Not more than $5,000,000 of the amount 
        appropriated pursuant to section 3(a)(1) for each fiscal year 
        and available for this part shall be allotted among Guam, the 
        Virgin Islands, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, the Federated States of Micronesia, 
        the Republic of the Marshall Islands, and Palau.
          [``(2) States.--Subject to the provisions of paragraph (3), 
        of the remainder of the amount available for this part for each 
        fiscal year--
                  [``(A) 33\1/3\ percent shall be allotted on the basis 
                of the relative number of unemployed individuals 
                residing in areas of substantial unemployment in each 
                State as compared to the total number of such 
                unemployed individuals in all such areas of substantial 
                unemployment in all the States;
                  [``(B) 33\1/3\ percent shall be allotted on the basis 
                of the relative excess number of unemployed individuals 
                who reside in each State as compared to the total 
                excess number of unemployed individuals in all the 
                States; and
                  [``(C) 33\1/3\ percent shall be allotted on the basis 
                of the relative number of economically disadvantaged 
                youth within each State compared to the total number of 
                economically disadvantaged youth in all States, except 
                that, for the allotment for any State in which there is 
                any service delivery area described in section 
                101(a)(4)(A)(iii), the allotment shall be based on the 
                higher of the number of youth in families with an 
                income below the low-income level in such area or the 
                number of economically disadvantaged youth in such 
                area.
          [``(3) Limitations.--
                  [``(A) State minimum.--No State shall receive less 
                than one-quarter of 1 percent of the amounts available 
                for allotment to the States under this subsection from 
                the remainder described in paragraph (2) for each 
                fiscal year.
                  [``(B) Minimum percentage.--No State shall be 
                allotted less than 90 percent of its allotment 
                percentage for the fiscal year preceding the fiscal 
                year for which the determination is made.
                  [``(C) Allotment percentage.--
                          [``(i) In general.--Except as provided in 
                        clause (ii), for purposes of subparagraph (B), 
                        the allotment percentage of a State for a 
                        fiscal year shall be the percentage of funds 
                        allotted to the State under this subsection.
                          [``(ii) Fiscal year 1992.--For purposes of 
                        subparagraph (B), the allocation percentage of 
                        a State for fiscal year 1992 shall be the 
                        percentage of funds allotted to the State under 
                        section 201, as in effect on the day before the 
                        date of enactment of the Job Training Reform 
                        Amendments of 1992.
  [``(b) Allocation to Service Delivery Areas.--
          [``(1) Formula.--The Governor shall, in accordance with 
        section 162, allocate 82 percent of the allotment of the State 
        under subsection (a) for each fiscal year among service 
        delivery areas within the State, and shall ensure that, subject 
        to the provisions of paragraph (3), of the amount allocated 
        under this subsection--
                  [``(A) 33\1/3\ percent shall be allocated on the 
                basis of the relative number of unemployed individuals 
                residing in areas of substantial unemployment in each 
                service delivery area as compared to the total number 
                of such unemployed individuals in all such areas of 
                substantial unemployment in the State;
                  [``(B) 33\1/3\ percent shall be allocated on the 
                basis of the relative excess number of unemployed 
                individuals who reside in each service delivery area as 
                compared to the total excess number of unemployed 
                individuals in all service delivery areas in the State; 
                and
                  [``(C) 33\1/3\ percent shall be allocated on the 
                basis of the relative number of economically 
                disadvantaged youth within each service delivery area 
                compared to the total number of economically 
                disadvantaged youth in the State, except that the 
                allocation for any service delivery area described in 
                section 101(a)(4)(A)(iii) shall be based on the higher 
                of the number of youth in families with an income below 
                the low-income level in such area or the number of 
                economically disadvantaged youth in such area.
          [``(2) Limitations.--
                  [``(A) Minimum percentage.--No service delivery area 
                within any State shall be allocated an amount equal to 
                less than 90 percent of the average of its allocation 
                percentage for the 2 preceding fiscal years preceding 
                the fiscal year for which the determination is made. If 
                the amounts appropriated pursuant to section 3(a)(1) 
                for a fiscal year and available to carry out this part 
                are not sufficient to provide an amount equal to at 
                least 90 percent of such allocation percentage to each 
                such area, the amounts allocated to each area shall be 
                ratably reduced.
                  [``(B) Allocation percentage.--
                          [``(i) In general.--Except as provided in 
                        clause (ii), for purposes of subparagraph (A), 
                        the allocation percentage of a service delivery 
                        area for a fiscal year shall be the percentage 
                        of funds allocated to the service delivery area 
                        under this subsection.
                          [``(ii) Fiscal year 1992.--For purposes of 
                        subparagraph (A), the allocation percentage of 
                        a service delivery area for fiscal year 1992 
                        shall be the percentage of funds allocated to 
                        the service delivery area under part A of title 
                        II.
  [``(c) State Activities.--
          [``(1) Division.--Of the remaining 18 percent of the 
        allotment of the State under subsection (a) for each fiscal 
        year--
                  [``(A) 5 percent of such allotment of the State for 
                each fiscal year shall be available to the Governor of 
                the State to be used for overall administration, 
                management, and auditing activities relating to 
                programs under this title and for activities described 
                in sections 121 and 122;
                  [``(B) 5 percent of such allotment of each State for 
                each fiscal year shall be available to provide 
                incentive grants authorized under section 106(b)(7), in 
                accordance with paragraph (2); and
                  [``(C) 8 percent of the allotment of each State for 
                each fiscal year shall be available to carry out 
                section 123.
          [``(2) Other uses.--
                  [``(A) Capacity building and technical assistance.--
                The Governor may use up to 33 percent of the amount 
                allotted under paragraph (1)(B) for providing capacity 
                building and technical assistance to service delivery 
                areas and service providers. Such use of funds may 
                include the development and training of service 
                delivery area and service provider staff and the 
                development of exemplary program activities.
                  [``(B) Nonduplication and coordination.--Funds used 
                under subparagraph (A)--
                          [``(i) may not be used to duplicate the 
                        activities of the Capacity Building and 
                        Information and Dissemination Network 
                        established under section 453(b); and
                          [``(ii) shall, to the extent practicable, be 
                        used to coordinate the activities under 
                        subparagraph (A) with the activities of the 
                        Network under section 453(b).
  [``(d) Definitions and Rule.--As used in this section:
          [``(1) Definitions.--
                  [``(A) Economically disadvantaged youth.--The term 
                `economically disadvantaged youth' means an individual 
                who is age 16 through 21 and who has, or is a member of 
                a family that has, received a total family income 
                (exclusive of unemployment compensation, child support 
                payments, and welfare payments) that, in relation to 
                family size, was not in excess of the higher of--
                          [``(i) the official poverty line (as defined 
                        by the Office of Management and Budget, and 
                        revised annually in accordance with section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981 (42 U.S.C. 9902(2)); or
                          [``(ii) 70 percent of the lower living 
                        standard income level.
                  [``(B) Excess number.--The term `excess number' 
                means--
                          [``(i) with respect to the excess number of 
                        unemployed individuals within a State--
                                  [``(I) the number that represents the 
                                number of unemployed individuals in 
                                excess of 4.5 percent of the civilian 
                                labor force in the State; or
                                  [``(II) the number that represents 
                                the number of unemployed individuals in 
                                excess of 4.5 percent of the civilian 
                                labor force in areas of substantial 
                                unemployment in such State; and
                          [``(ii) with respect to the excess number of 
                        unemployed individuals within a service 
                        delivery area--
                                  [``(I) the number that represents the 
                                number of unemployed individuals in 
                                excess of 4.5 percent of the civilian 
                                labor force in the service delivery 
                                area; or
                                  [``(II) the number that represents 
                                the number of unemployed individuals in 
                                excess of 4.5 percent of the civilian 
                                labor force in areas of substantial 
                                unemployment in such service delivery 
                                area.
                  [``(C) State.--The term `State' means any of the 
                several States, the District of Columbia, and the 
                Commonwealth of Puerto Rico.
          [``(2) Special rule.--For the purposes of this section, 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 economically disadvantaged 
        youth.''.]
          (2) Effective date.--Any amendment made by paragraph (1) 
        shall take effect on July 1, 1993.
  (g) Permanent Training Services Formula.--
          (1) Level of funding.--If title II of the Job Training 
        Partnership Act is amended in accordance with subsection (f) 
        and the amount appropriated to carry out parts A and C of title 
        II of the Job Training Partnership Act for a fiscal year is not 
        less than the sum of--
                  (A) $25,000,000; and
                  (B) the amount appropriated to carry out part A of 
                title II of such Act, as in effect on the day before 
                the date of enactment of this Act, for fiscal year 
                1992,
        the amendment made by section 207 of this Act shall take 
        effect.
          (2) Effective date.--Any amendment made by paragraph (1) 
        shall take effect on October 1 of the fiscal year described in 
        paragraph (1).
  (h) Evaluation.--The Secretary of Labor shall evaluate the impact of 
programs under title II of the Job Training Partnership Act on 
participant employment, earnings and welfare dependency in multiple 
sites, using the random assignment of individuals to groups receiving 
services under programs authorized under the Job Training Reform 
Amendments of 1992 to groups not receiving such services.
  (i) Rules and Procedures.--
          (1) In General.--The Secretary of Labor may establish such 
        rules and procedures as may be necessary to provide for an 
        orderly implementation of the amendments made by this Act.
          (2) Review.--The Secretary of Labor, the Governors, and the 
        service delivery areas shall conduct a comprehensive review of 
        the current policies, practices, procedures, and delivery 
        systems relating to programs authorized under the Job Training 
        Partnership Act for the purpose of ensuring the effective 
        implementation of the amendments made by this Act. Such review 
        shall include consideration of the appropriateness of current 
        service delivery area designations, the representativeness of 
        current State and local councils, the adequacy of current 
        administrative systems, the effectiveness of current outreach, 
        service delivery, and coordination activities, and other 
        relevant matters.
  (j) Implementing Regulations.--The Secretary of Labor shall issue 
final regulations relating to the implementation of the amendments made 
by this Act not later than December 18, 1992.

=======================================================================
 [TITLE III--EMPLOYMENT AND TRAINING ASSISTANCE FOR DISLOCATED WORKERS

                              [definitions

  [Sec. 301. (a) Dislocated Workers.--(1) For purposes of this 
title, the term ``eligible dislocated workers'' means 
individuals who--
          [(A) have been terminated or laid off or who have 
        received a notice of termination or layoff from 
        employment, are eligible for or have exhausted their 
        entitlement to unemployment compensation, and are 
        unlikely to return to their previous industry or 
        occupation;
          [(B) have been terminated or have received a notice 
        of termination of employment, as a result of any 
        permanent closure of or any substantial layoff at a 
        plant, facility, or enterprise;
          [(C) are long-term unemployed and have limited 
        opportunities for employment or reemployment in the 
        same or a similar occupation in the area in which such 
        individuals reside, including older individuals who may 
        have substantial barriers to employment by reason of 
        age; or
          [(D) were self-employed (including farmers and 
        ranchers) and are unemployed as a result of general 
        economic conditions in the community in which they 
        reside or because of natural disasters, subject to 
        regulations prescribed by the Secretary.
  [(2) For purposes of this title, the term ``additional 
dislocated worker'' means a displaced homemaker as that term is 
defined in section 4(29) of this Act.
  [(3) The Secretary shall establish categories of self-
employed individuals and of economic conditions and natural 
disasters to which paragraph (1)(D) applies.
  [(b) Additional Definitions.--For the purposes of this 
title--
          [(1) The term ``labor-management committees'' means 
        committees voluntarily established to respond to actual 
        or prospective worker dislocation, which ordinarily 
        include (but are not limited to) the following--
                  [(A) shared and equal participation by 
                workers and management;
                  [(B) shared financial participation between 
                the company and the State, using funds provided 
                under this title, in paying for the operating 
                expenses of the committee;
                  [(C) a chairperson, to oversee and guide the 
                activities of the committee, (i) who shall be 
                jointly selected by the labor and management 
                members of the committee, (ii) who is not 
                employed by or under contract with labor or 
                management at the site, and (iii) who shall 
                provide advice and leadership to the committee 
                and prepare a report on its activities;
                  [(D) the ability to respond flexibly to the 
                needs of affected workers by devising and 
                implementing a strategy for assessing the 
                employment and training needs of each 
                dislocated worker and for obtaining the 
                services and assistance necessary to meet those 
                needs;
                  [(E) a formal agreement, terminable at will 
                by the workers or the company management, and 
                terminable for cause by the Governor; and
                  [(F) local job identification activities by 
                the chairman and members of the committee on 
                behalf of the affected workers.
          [(2) The term ``local elected official'' means the 
        chief elected executive officer of a unit of general 
        local government in a substate area.
          [(3) The term ``service provider'' means a public 
        agency, private nonprofit organization, or private-for-
        profit entity that delivers educational, training, or 
        employment services.
          [(4) The term ``substate area'' means that geographic 
        area in a State established pursuant to section 312(a).
          [(5) The term ``substate grantee'' means that agency 
        or organization selected to administer programs 
        pursuant to section 312(b).
          [(6) The term ``State'' means any of the several 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.
                               [allotment

  [Sec. 302. (a) Allotment of Funds.--From the funds 
appropriated pursuant to section 3(b) for any fiscal year, the 
Secretary shall--
          [(1) allot 80 percent of such funds in accordance 
        with the provisions of subsection (b); and
          [(2) reserve 20 percent for use under part B of this 
        title, subject to the reservation required by 
        subsection (e) of this section.
  [(b) Allotment Among States.--(1) Subject to the provisions 
of paragraph (2), the Secretary shall allot the amount 
available in each fiscal year under subsection (a)(1) on the 
basis of the following factors:
          [(A) One-third of such amount shall be allotted among 
        the States on the basis of the relative number of 
        unemployed individuals who reside in each State as 
        compared to the total number of unemployed individuals 
        in all the States.
          [(B) One-third of such amount shall be allotted among 
        the States on the basis of the relative excess number 
        of unemployed individuals who reside in each State as 
        compared to the total excess number of unemployed 
        individuals in all the States. For purposes of this 
        paragraph, the term ``excess number'' means the number 
        which represents unemployed individuals in excess of 
        4.5 percent of the civilian labor force in the State.
          [(C) One-third of such amount shall be allotted among 
        the States on the basis of the relative number of 
        individuals who have been unemployed for 15 weeks or 
        more and who reside in each State as compared to the 
        total number of such individuals in all the States.
  [(2) As soon as satisfactory data are available under section 
462(e) of this Act, the Secretary shall allot amounts 
appropriated to carry out part A for any fiscal year to each 
State so that--
          [(A) 25 percent of such amount shall be allotted on 
        the basis of each of the factors described in 
        subparagraphs (A), (B), and (C) of paragraph (1), 
        respectively, for a total of 75 percent of the amount 
        allotted; and
          [(B) 25 percent of such amount shall be allotted 
        among the States on the basis of the relative number of 
        dislocated workers in such State in the most recent 
        period for which satisfactory data are available under 
        section 462(e) and, when available, under section 
        462(f) of this Act.
  [(c) Reservations for State Activities and for Substate 
Grantees in Need.--(1) The Governor may reserve not more than 
40 percent of the amount allotted to the State under section 
302(a)(1) for--
          [(A) State administration, technical assistance, and 
        coordination of the programs authorized under this 
        title;
          [(B) statewide, regional, or industrywide projects;
          [(C) rapid response activities as described in 
        section 314(b);
          [(D) establishment of coordination between the 
        unemployment compensation system and the worker 
        adjustment program system; and
          [(E) discretionary allocation for basic readjustment 
        and retraining services to provide additional 
        assistance to areas that experience substantial 
        increases in the number of dislocated workers, to be 
        expended in accordance with the substate plan or 
        modification thereof.
  [(2) In addition, the Governor may reserve not more than 10 
percent of the amount allotted to the State under section 
302(a)(1) for allocation among substate grantees. The amount so 
reserved shall be allocated on the basis of need and 
distributed to such grantees not later than 9 months after the 
beginning of the program year for which the allotment was made.
  [(d) Within State Distribution.--The Governor shall allocate 
the remainder of the amount allotted to the State under this 
part to substate areas for services authorized in this part, 
based on an allocation formula prescribed by the Governor. Such 
formula may be amended by the Governor not more than once for 
each program year. Such formula shall utilize the most 
appropriate information available to the Governor to distribute 
amounts to address the State's worker readjustment assistance 
needs. Such information shall include (but is not limited to)--
          [(1) insured unemployment data;
          [(2) unemployment concentrations;
          [(3) plant closing and mass layoff data;
          [(4) declining industries data;
          [(5) farmer-rancher economic hardship data; and
          [(6) long-term unemployment data.
  [(e) Reservation for the Territories.--Not more than 0.3 
percent of the amounts appropriated pursuant to section 3(b) 
and available under subsection (a)(2) of this section for any 
fiscal year shall be allocated among the Commonwealth of the 
Northern Mariana Islands and the other territories and 
possessions of the United States.

             [recapture and reallotment of unexpended funds

  [Sec. 303. (a) General Reallotment Authority.--For program 
years beginning July 1, 1989, and thereafter, the Secretary 
shall, in accordance with the requirements of this section, 
reallot to eligible States the funds allotted to States from 
funds appropriated for such program year that are available for 
reallotment.
  [(b) Amount Available for Reallotment.--The amount available 
for reallotment is equal to--
          [(1) the amount by which the unexpended balance of 
        the State allotment at the end of the program year 
        prior to the program year for which the determination 
        under this section is made exceeds 20 percent of such 
        allotment for that prior program year; plus
          [(2) the unexpended balance of the State allotment 
        from any program year prior to the program year in 
        which there is such excess.
  [(c) Method of Reallotment.--(1) The Secretary shall 
determine the amount that would be allotted to each eligible 
State by using the factors described in section 302(b) to 
allocate among eligible States the amount available pursuant to 
subsection (b) of this section.
  [(2) The Secretary shall allot to each eligible high 
unemployment State the amount determined for that State under 
the procedure in paragraph (1) of this subsection.
  [(3) The Secretary shall, by using the factors described in 
section 302(b), allot to eligible States the amount available 
that remains after the allotment required by paragraph (2) of 
this subsection.
  [(d) State Procedures With Respect to Reallotment.--The 
Governor of each State shall prescribe uniform procedures for 
the expenditure of funds by substate grantees in order to avoid 
the requirement that funds be made available for reallotment 
under subsection (b). The Governor shall further prescribe 
equitable procedures for making funds available from the State 
and substate grantees in the event that a State is required to 
make funds available for reallotment under such subsection.
  [(e) Definitions.--(1) For the purpose of this section, an 
eligible State means a State which has expended at least 80 
percent of its allotment for the program year prior to the 
program year for which the determination under this section is 
made.
  [(2) For the purpose of this section, an eligible high 
unemployment State means a State--
          [(A) which meets the requirement in subsection 
        (c)(1), and
          [(B) which is among the States which has an 
        unemployment rate greater than the national average 
        unemployment for the most recent 12 months for which 
        satisfactory data are available.
  [(3) For purposes of this section, funds awarded from 
discretionary funds of the Secretary shall not be included in 
calculating any of the reallotments described in this 
section. deg.


                  [Part A--State Delivery of Services

                              [state plan

  [Sec. 311. (a) State Plan Required.--In order to receive an 
allotment of funds under section 302(b), the Governor of a 
State shall submit to the Secretary, on a biennial basis, a 
State plan describing in detail the programs and activities 
that will be assisted with funds provided under this title. The 
State plan shall be submitted on or before the first day of May 
immediately preceding the program year for which funds are 
first to be made available under this title. Such plan shall 
include incentives to provide training of greater duration for 
those who require it, consistent with section 106(c).
  [(b) Contents of Plan.--Each State plan shall contain 
provisions demonstrating to the satisfaction of the Secretary 
that the State will comply with the requirements of this title 
and that--
          [(1) services under this title--
                  [(A) will, except as provided in paragraph 
                (4), only be provided to eligible dislocated 
                workers;
                  [(B) will not be denied to an eligible 
                dislocated worker displaced by a permanent 
                closure or substantial layoff within the State, 
                regardless of the State of residence of such 
                worker; and
                  [(C) may be provided to other eligible 
                dislocated workers regardless of the State of 
                residence of such worker;
          [(2) the State will designate or create an 
        identifiable State dislocated worker unit or office 
        with the capability to respond rapidly, on site, to 
        permanent closures and substantial layoffs throughout 
        the State in order to assess the need for, and 
        initially to provide for, appropriate basic 
        readjustment services;
          [(3) the State unit will--
                  [(A) make appropriate retraining and basic 
                readjustment services available to eligible 
                dislocated workers through the use of rapid 
                response teams, substate grantees, and other 
                appropriate organizations;
                  [(B) work with employers and labor 
                organizations in promoting labor-management 
                cooperation to achieve the goals of this title;
                  [(C) operate a monitoring, reporting, and 
                management system which provides an adequate 
                information base for effective program 
                management, review, and evaluation; and
                  [(D) provide technical assistance and advice 
                to substate grantees, including immediate 
                notification to substate grantees of current or 
                projected permanent closures or substantial 
                layoffs in the substate area of such grantee to 
                continue and expand the services initiated by 
                the rapid response teams;
          [(4) the State will provide to additional dislocated 
        workers (as defined in section 301(a)(2)) the services 
        available under this title to eligible dislocated 
        workers only if the Governor of such State determines 
        that such services may be provided to additional 
        dislocated workers without adversely affecting the 
        delivery of such services to eligible dislocated 
        workers;
          [(5) the State unit will exchange information and 
        coordinate programs with--
                  [(A) the appropriate economic development 
                agency, for the purpose of developing 
                strategies to avert plant closings or mass 
                layoffs and to accelerate the reemployment of 
                affected individuals;
                  [(B) State education, training, and social 
                services programs; and
                  [(C) all other programs available to assist 
                dislocated workers (including the Job Service 
                and the unemployment insurance system);
          [(6) the State unit will disseminate throughout the 
        State information on the availability of services and 
        activities under this title;
          [(7) any program conducted with funds made available 
        under this title which will provide services to a 
        substantial number of members of a labor organization 
        will be established only after full consultation with 
        such labor organization;
          [(8) the State will not prescribe any standard for 
        the operation of programs under this part that is 
        inconsistent with section 106(c);
          [(9) the State job training coordinating council has 
        reviewed and commented in writing on the plan;
          [(10) the delivery of services with funds made 
        available under this title will be integrated or 
        coordinated with services or payments made available 
        under chapter 2 of title II of the Trade Act of 1974 
        and provided by any State or local agencies designated 
        under section 239 of the Trade Act of 1974;
          [(11) the State unit will provide the Secretary with 
        a cost breakdown of all funds made available under this 
        title used by such unit for administrative 
        expenditures; and
          [(12) the State will not transfer the responsibility 
        for the rapid response assistance functions of the 
        State unit under section 314(b) to another entity, but 
        the State may contract with another entity to perform 
        rapid response assistance services.
  [(c) Review and Approval of State Plans.--The Secretary shall 
review any plan submitted under subsection (a), and any 
comments thereon submitted by the State job training 
coordinating council pursuant to subsection (b)(9), and shall 
notify a State as to any deficiencies in such plan within 30 
days after submission. Unless a State has been so notified, the 
Secretary shall approve the plan within 45 days after 
submission. The Secretary shall not finally disapprove the plan 
of any State except after notice and opportunity for a hearing.
  [(d) Modifications--Any plan submitted under subsection (a) 
may be modified to describe changes in or additions to the 
programs and activities set forth in the plan, except that no 
such modification shall be effective unless reviewed and 
approved in accordance with subsection (c).
  [(e) Complaint, Investigation, Penalty.--(1) Whenever the 
Secretary receives a complaint or a report from an aggrieved 
party or a public official that a State is not complying with 
the provisions of the State plan required by this section, the 
Secretary shall investigate such report or complaint.
  [(2)(A) Whenever the Secretary determines that there has been 
such a failure to comply and that other remedies under this Act 
are not available or are not adequate to achieve compliance, 
the Secretary may withhold an amount not to exceed 10 percent 
of the allotment of the State for the fiscal year in which the 
determination is made for each such violation.
  [(B) No determination may be made under this paragraph until 
the State affected is afforded adequate notice and opportunity 
for a hearing.
  [(f) Special Rule.--The provisions of sections 102(h) and 
105(d), relating to cases in which a service delivery area is a 
State, shall apply to this title.

                           [substate grantees

  [Sec. 312. (a) Designation of Substate Areas.--(1) The 
Governor of each State shall, after receiving any 
recommendations from the State job training coordinating 
council, designate substate areas for the State.
  [(2) Each service delivery area within a State shall be 
included within a substate area and no service delivery area 
shall be divided among two or more substate areas.
  [(3) In making designations of substate areas, the Governor 
shall consider--
          [(A) the availability of services throughout the 
        State;
          [(B) the capability to coordinate the delivery of 
        services with other human services and economic 
        development programs; and
          [(C) the geographic boundaries of labor market areas 
        within the State.
  [(4) Subject to paragraphs (2) and (3), the Governor--
          [(A) shall designate as a substate area any single 
        service delivery area that has a population of 200,000 
        or more;
          [(B) shall designate as a substate area any two or 
        more contiguous service delivery areas--
                  [(i) that in the aggregate have a population 
                of 200,000 or more; and
                  [(ii) that request such designation; and
          [(C) shall designate as a substate area any 
        concentrated employment program grantee for a rural 
        area described in section 101(a)(4)(A)(iii) of this 
        Act.
  [(5) The Governor may deny a request for designation under 
paragraph (4)(B) if the Governor determines that such 
designation would not be consistent with the effective delivery 
of services to eligible dislocated workers in various labor 
market areas (including urban and rural areas) within the 
State, or would not otherwise be appropriate to carry out the 
purposes of this title.
  [(6) The designations made under this section may not be 
revised more than once each two years, in accordance with the 
requirements of this section.
  [(b) Designation of Substate Grantees.--A substate grantee 
shall be designated, on a biennial basis, for each substate 
area. Such substate grantee shall be designated in accordance 
with an agreement among the Governor, the local elected 
official or officials of such area, and the private industry 
council or councils of such area. Whenever a substate area is 
represented by more than one such official or council, the 
respective officials and councils shall each designate 
representatives, in accordance with procedures established by 
the Governor (after consultation with the State job training 
coordinating council), to negotiate such agreement. In the 
event agreement cannot be reached on the selection of a 
substate grantee, the Governor shall select the substate 
grantee.
  [(c) Eligibility.--Entities eligible for designation as 
substate grantees include--
          [(1) private industry councils in the substate area;
          [(2) service delivery area grant recipients or 
        administrative entities;
          [(3) private nonprofit organizations;
          [(4) units of general local government in the 
        substate area, or agencies thereof;
          [(5) local offices of State agencies; and
          [(6) other public agencies, such as community 
        colleges and area vocational schools.
  [(d) Functions of Substate Grantees.--The substate grantee 
shall be responsible for providing, within such substate area, 
services described in section 314 (c), (d), and (e) pursuant to 
an agreement with the Governor and in accordance with the State 
plan under section 311 and the substate plan under section 313. 
The substate grantee may provide such services directly or 
through contract, grant, or agreement with service providers.
  [(e) Applicability of General Administrative Provisions to 
Substate Grantees.--The requirements of parts C and D of title 
I of this Act that apply to an administrative entity or a 
recipient of financial assistance under this Act shall also 
apply to substate grantees under this title.

                             [substate plan

  [Sec. 313. (a) General Rule.--No amounts appropriated for any 
fiscal year may be provided to a substate grantee unless the 
Governor (after considering the recommendations of the State 
job training coordinating council) has approved a substate 
plan, or modification thereof, submitted by the substate 
grantee describing the manner in which activities will be 
conducted within the substate area. Prior to the submission to 
the Governor, the plan shall be submitted for review and 
comment to the other parties to the agreement described in 
section 312(b).
  [(b) Contents of Substate Plan.--The substate plan shall 
contain a statement of--
          [(1) the means for delivering services described in 
        section 314 to eligible dislocated workers;
          [(2) the means to be used to identify, select, and 
        verify the eligibility of program participants;
          [(3) the means for implementing the requirements of 
        section 314(f);
          [(4) the means for involving labor organizations in 
        the development and implementation of services;
          [(5) the performance goals to be achieved consistent 
        with the performance goals contained in the State plan 
        pursuant to section 311(b)(8);
          [(6) procedures, consistent with section 107, for 
        selecting service providers which take into account 
        past performance in job training or related activities, 
        fiscal accountability, and ability to meet performance 
        standards;
          [(7) a description of the methods by which the 
        substate grantee will respond expeditiously to worker 
        dislocation where the rapid response assistance 
        required by section 314(b) is inappropriate, including 
        worker dislocation in sparsely populated areas, which 
        methods may include (but are not limited to)--
                  [(A) development and delivery of widespread 
                outreach mechanisms;
                  [(B) provision of financial evaluation and 
                counseling (where appropriate) to assist in 
                determining eligibility for services and the 
                type of services needed;
                  [(C) initial assessment and referral for 
                further basic adjustment and training services; 
                and
                  [(D) establishment of regional centers for 
                the purpose of providing such outreach, 
                assessment, and early readjustment assistance;
          [(8) a description of the methods by which the other 
        parties to the agreement described in section 312(b) 
        may be involved in activities of the substate grantee;
          [(9) a description of training services to be 
        provided, including--
                  [(A) procedures to assess participants' 
                current education skill levels and occupational 
                abilities;
                  [(B) procedures to assess participants' 
                needs, including educational, training, 
                employment, and social services;
                  [(C) methods for allocating resources to 
                provide the services recommended by rapid 
                response teams for eligible dislocated workers 
                within the substate area; and
                  [(D) a description of services and activities 
                to be provided in the substate area;
          [(10) the means whereby coordination with other 
        appropriate programs, services, and systems will be 
        affected, particularly where such coordination is 
        intended to provide access to the services of such 
        other systems for program participants at no cost to 
        the worker readjustment program; and
          [(11) a detailed budget, as required by the State.
  [(c) Plan Approval.--The Governor shall approve or disapprove 
the plan of a substate grantee in the manner required by 
section 105(b) (1), (2), and (3). If a substate grantee fails 
to submit a plan, or submits a plan that is not approved by the 
Governor in accordance with such section, the Governor may 
direct the expenditure of funds allocated to the substate area 
until such time as a plan is submitted and approved or a new 
substate grantee is designated under section 312.
  [(d) By-Pass Authority.--If a substate grantee fails to 
expend funds allocated to it in accordance with its plan, the 
Governor may, subject to appropriate notice and opportunity for 
comment in the manner required by section 105(b) (1), (2), and 
(3), direct the expenditure of funds in accordance with the 
substate plan until--
          [(1) the substate grantee corrects the failure,
          [(2) the substate grantee submits an acceptable 
        modification to its plan pursuant to subsection (a), or
          [(3) a new substate grantee is designated under 
        section 312.

                 [use of funds; services to be provided

  [Sec. 314. (a) In General.--Funds allotted under section 302 
may be used--
          [(1) to provide rapid response assistance in 
        accordance with subsection (b);
          [(2) to deliver, coordinate, and integrate basic 
        readjustment services and support services in 
        accordance with subsection (c);
          [(3) to provide retraining services in accordance 
        with subsection (d);
          [(4) to provide needs-related payments in accordance 
        with subsection (e); and
          [(5) to provide for coordination with the 
        unemployment compensation system in accordance with 
        subsection (f).
  [(b) Rapid Response Assistance.--(1) The dislocated worker 
unit required by section 311(b)(2) shall include specialists 
who may use funds available under this title--
          [(A) to establish on-site contact with employer and 
        employee representatives within a short period of time 
        (preferably 48 hours or less) after becoming aware of a 
        current or projected permanent closure or substantial 
        layoff in order to--
                  [(i) provide information on and facilitate 
                access to available public programs and 
                services; and
                  [(ii) provide emergency assistance adapted to 
                the particular closure or layoff;
          [(B) to promote the formation of labor-management 
        committees, by providing--
                  [(i) immediate assistance in the 
                establishment of the labor-management 
                committee, including providing immediate 
                financial assistance to cover the start-up 
                costs of the committee;
                  [(ii) a list of individuals from which the 
                chairperson of the committee may be selected;
                  [(iii) technical advice as well as 
                information on sources of assistance, and 
                liaison with other public and private services 
                and programs; and
                  [(iv) assistance in the selection of worker 
                representatives in the event no union is 
                present;
          [(C) to collect information related to--
                  [(i) economic dislocation (including 
                potential closings or layoffs); and
                  [(ii) all available resources within the 
                State for displaced workers,
        which information shall be made available on a regular 
        basis to the Governor and the State job training 
        coordinating council to assist in providing an adequate 
        information base for effective program management, 
        review, and evaluation;
          [(D) to provide or obtain appropriate financial and 
        technical advice and liaison with economic development 
        agencies and other organizations to assist in efforts 
        to avert worker dislocations;
          [(E) to disseminate information throughout the State 
        on the availability of services and activities carried 
        out by the dislocated worker unit or office; and
          [(F) to assist the local community in developing its 
        own coordinated response and in obtaining access to 
        State economic development assistance.
  [(2) In a situation involving an impending permanent closure 
or substantial layoff, a State may provide funds, where other 
public or private resources are not expeditiously available, 
for a preliminary assessment of the advisability of conducting 
a comprehensive study exploring the feasibility of having a 
company or group, including the workers, purchase the plant and 
continue it in operation.
          [(3) The Secretary shall oversee the administration 
        by each State of the rapid response assistance services 
        provided in such State and the effectiveness, 
        efficiency, and timeliness of the delivery of such 
        services. If the Secretary determines that such 
        services are not being performed adequately, the 
        Secretary shall implement appropriate corrective 
        action, including, where necessary, the selection of a 
        new rapid response assistance service provider.
          [(4) For purposes of rapid response assistance 
        provided by a State dislocated worker unit, the term 
        ``substantial layoff'' means a layoff of 50 or more 
        individuals.
  [(c) Basic Readjustment Services.--Funds allotted under 
section 302 may be used to provide basic readjustment services 
to eligible dislocated workers. Subject to limitations set 
forth in subsection (e) and section 315(a), the services may 
include (but are not limited to)--
          [(1) development of individual readjustment plans for 
        participants in programs under this title;
          [(2) outreach and intake;
          [(3) early readjustment assistance;
          [(4) job or career counseling;
          [(5) testing;
          [(6) orientation;
          [(7) assessment, including evaluation of educational 
        attainment and participant interests and aptitudes;
          [(8) determination of occupational skills;
          [(9) provision of future world-of-work and 
        occupational information;
          [(10) job placement assistance;
          [(11) labor market information;
          [(12) job clubs;
          [(13) job search;
          [(14) job development;
          [(15) supportive services, including child care, 
        commuting assistance, and financial and personal 
        counseling which shall terminate not later than the 
        90th day after the participant has completed other 
        services under this part, except that counseling 
        necessary to assist participants to retain employment 
        shall terminate not later than 6 months following the 
        completion of training;
          [(16) prelayoff assistance;
          [(17) relocation assistance; and
          [(18) programs conducted in cooperation with 
        employers or labor organizations to provide early 
        intervention in the event of closures of plants or 
        facilities.
  [(d) Retraining Services.--(1) Funds allotted under section 
302 may be used to provide training services under this part to 
eligible dislocated workers. Such services may include (but are 
not limited to)--
          [(A) classroom training;
          [(B) occupational skill training;
          [(C) on-the-job training;
          [(D) out-of-area job search;
          [(E) relocation;
          [(F) basic and remedial education;
          [(G) literacy and English for non-English speakers 
        training;
          [(H) entrepreneurial training; and
          [(I) other appropriate training activities directly 
        related to appropriate employment opportunities in the 
        substate area.
  [(2) No funds under this part may be expended to provide 
wages for public service employment.
  [(e) Needs-Related Payments.--(1) Funds allocated to a 
substate grantee under section 302(d) may be used pursuant to a 
substate plan under section 313 to provide needs-related 
payments to an eligible dislocated worker who is unemployed and 
does not qualify or has ceased to qualify for unemployment 
compensation, in order to enable such worker to participate in 
training or education programs under this title. To be eligible 
for such payments, an eligible dislocated worker who has ceased 
to qualify for unemployment compensation must have been 
enrolled in training by the end of the 13th week of the 
worker's initial unemployment compensation benefit period, or, 
if later, the end of the 8th week after an employee is informed 
that a short-term layoff will in fact exceed 6 months.
  [(2) The level of needs-related payments shall be made 
available at a level not greater than the higher of--
          [(A) the applicable level of unemployment 
        compensation; or
          [(B) the poverty level determined in accordance with 
        criteria established by the Director of the Office of 
        Management and Budget.
  [(f) Coordination With Unemployment Compensation.--(1) Funds 
allocated to a State under section 302 may be used for 
coordination of worker readjustment programs and the 
unemployment compensation system, consistent with the 
limitation on administrative expenses in section 315. Each 
State shall be responsible for coordinating the unemployment 
compensation system and worker readjustment programs within 
such State.
  [(2) An eligible dislocated worker participating in training 
(except for on-the-job training) under this title shall be 
deemed to be in training with the approval of the State agency 
for purposes of section 3304(a)(8) of the Internal Revenue Code 
of 1986.
  [(g) Joint Funding.--(1) Funds allotted under section 302 may 
be used to provide additional funds under an applicable program 
if--
          [(A) such program otherwise meets the requirements of 
        this Act and the requirements of the applicable 
        program;
          [(B) such program serves the same individuals that 
        are served under this title;
          [(C) such program provides services in a coordinated 
        manner with services provided under this title; and
          [(D) such funds would be used to supplement, and not 
        supplant, funds provided from non-Federal sources.
  [(2) For purposes of this subsection, the term ``applicable 
program'' means any program under any of the following 
provisions of law:
          [(A) The Carl D. Perkins Vocational and Applied 
        Technology Education Act.
          [(B) The Wagner-Peyser Act.
  [(h) Clarification of Definition of Eligible Dislocated 
Workers for Certain Services.--(1) The term ``eligible 
dislocated workers'' includes individuals who have not received 
specific notice of termination or lay off and work at a 
facility at which the employer has made a public announcement 
that such facility will close (except those individuals likely 
to remain employed with the same employer or likely to retire 
instead of seeking new employment)--
          [(A) with respect to basic readjustment services 
        provided under paragraphs (1) through (14), (16), and 
        (18) of subsection (c); and
          [(B) with respect to services provided under this 
        section beginning 180 days before the date on which the 
        facility is scheduled to close.
  [(2) Services described in paragraph (1)(A) and provided to 
the individuals described in paragraph (1) shall, to the extent 
practicable, be funded under section 302(c)(1).

                     [limitations on uses of funds

  [Sec. 315. (a) Retraining Services.--(1) Of the funds 
allocated to a substate grantee under part A of this title for 
any program year, not less than 50 percent shall be expended 
for retraining services specified under section 314(d).
  [(2) A substate grantee may apply to the Governor for a 
waiver of the requirement in paragraph (1). Such waiver may not 
permit less than 30 percent of the funds to be spent for such 
retraining services. The wavier may be granted in whole or in 
part if the substate grantee demonstrates that the worker 
readjustment program in the area will be consistent with the 
principle that dislocated workers be prepared for occupations 
or industries with long-term potential. The Governor shall 
prescribe criteria for the demonstration required by the 
previous sentence.
  [(3) An application for such a waiver shall be submitted at 
such time and in such form as the Governor may prescribe. The 
Governor shall provide an opportunity for public comment on the 
application.
  [(b) Of the funds allocated to a substate grantee or to the 
Governor under part A of this title for any program year, not 
more than 25 percent may be expended to provide needs-related 
payments and other supportive services.
  [(c) Administrative Cost Limitation.--Of the funds allocated 
to a substate grantee or to the Governor under part A of this 
title for any program year, not more than 15 percent may be 
expended to cover the administrative cost of programs. For 
purposes of this subsection, administrative cost does not 
include the cost of activities under section 314(b).
  [(d) Combination of Funds.--Substate grantees within a State 
may combine funds under this title for the provision of 
services to eligible dislocated workers from 2 or more substate 
areas.
  [(e) Definition.--As used in this section, the term 
``allocated'', means allocated for a program year, as adjusted 
for reallocations between substate areas, and for reallotments 
in accordance with section 303.

                   [retraining services availability

  [Sec. 316. (a) Alternative Methods of Providing Retraining 
Services.--A substate grantee may provide retraining services 
described in section 314(d) to an eligible dislocated worker--
          [(1) by beginning such services promptly upon the 
        worker's application for the program under this title;
          [(2) by deferring the beginning of such services and 
        providing the worker with a certificate of continuing 
        eligibility in accordance with subsection (b) (1) and 
        (2); or
          [(3) by permitting the worker to obtain such services 
        from a service provider using such certificate in 
        accordance with subsection (b)(3).
  [(b) Certification of Continuing Eligibility.--(1) A substate 
grantee may issue to any eligible dislocated worker who has 
applied for the program authorized in this part a certificate 
of continuing eligibility. Such a certificate of continuing 
eligibility may be effective for periods not to exceed 104 
weeks. No such certificate shall include any reference to any 
specific amount of funds. Any such certificate shall state that 
it is subject to the availability of funds at the time that any 
such training services are to be provided. Acceptance of such a 
certificate shall not be deemed to be enrollment in training.
  [(2) Any individual to whom a certificate of continuing 
eligibility has been issued under paragraph (1) of this 
subsection shall remain eligible for the program authorized 
under this part for the period specified in the certificate, 
notwithstanding section 301(a), and may use the certificate in 
order to receive the retraining services, subject to the 
limitations contained in the certificate.
  [(3) A substate grantee may provide training services through 
systems that permit eligible dislocated workers to use 
certificates of continuing eligibility to seek out and arrange 
their own retraining with service providers approved by that 
substate grantee. Retraining provided pursuant to the 
certificate shall be conducted under a grant, contract, or 
other arrangement between the substate grantee and the service 
provider.

         [functions of state job training coordinating council

  [Sec. 317. For purposes of this title, the State job training 
coordinating council shall--
          [(1) provide advice to the Governor regarding the use 
        of funds under this title, including advice on--
                  [(A) the designation of substate areas and 
                substate grantees, and the procedures for the 
                selection of representatives within such areas 
                under section 312; and
                  [(B) the methods for allocation and 
                reallocation of funds, including the method for 
                distribution of funds reserved under section 
                302(c)(2) and funds subject to reallocation 
                under section 303(d);
          [(2) submit comments to the Governor and the 
        Secretary on the basis of review of the State and 
        substate programs under this title;
          [(3) review, and submit written comments on, the 
        State plan (and any modification thereof) before its 
        submission under section 311;
          [(4) review, and submit written comments on, each 
        substate plan submitted to the Governor under section 
        313; and
          [(5) provide advice to the Governor regarding 
        performance standards. deg.


                   [Part B--Federal Responsibilities

                        [federal administration

  [Sec. 321. (a) Standards.--The Secretary shall promulgate 
standards for the conduct and evaluation of programs under this 
title.
  [(b) By-Pass Authority.--In the event that any State fails to 
submit a plan that is approved under section 311, the Secretary 
shall use the amount that would be allotted to that State to 
provide for the delivery in that State of the programs, 
activities, and services authorized by this title until the 
State plan is submitted and approved under that section.

            [federal delivery of dislocated worker services

  [Sec. 322. (a) General Authority.--The Secretary shall, with 
respect to programs required by this title--
          [(1) distribute funds to States in accordance with 
        the requirements of section 302;
          [(2) provide funds to exemplary and demonstration 
        programs on plant closings and worker dislocation;
          [(3) otherwise allocate discretionary funds to 
        projects serving workers affected by multi-State or 
        industry-wide dislocations and to areas of special need 
        in a manner that efficiently targets resources to areas 
        of most need, encourages a rapid response to economic 
        dislocations, and promotes the effective use of funds;
          [(4) monitor performance and expenditures and 
        annually certify compliance with standards prescribed 
        by the Secretary under section 106(c);
          [(5) conduct research and serve as a national 
        clearinghouse for gathering and disseminating 
        information on plant closings and worker dislocation; 
        and
          [(6) provide technical assistance and staff training 
        services to States, communities, businesses, and 
        unions, as appropriate.
  [(b) Administrative Provisions.--The Secretary shall 
designate or create an identifiable dislocated workers unit or 
office to coordinate the functions of the Secretary under this 
title.

                         [allowable activities

  [Sec. 323. (a) Circumstances and Activities for Use of 
Funds.--Amounts reserved for this part under section 302(a)(2) 
may be used to provide services of the type described in 
section 314 in the following circumstances:
          [(1) mass layoffs, including mass layoffs caused by 
        natural disasters or Federal actions (such as 
        relocations of Federal facilities) when the workers are 
        not expected to return to their previous occupations;
          [(2) industrywide projects;
          [(3) multistate projects;
          [(4) special projects carried out through agreements 
        with Indian tribal entities;
          [(5) special projects to address national or regional 
        concerns;
          [(6) demonstration projects, including the projects 
        described in section 324;
          [(7) to provide additional financial assistance to 
        programs and activities provided by States and substate 
        grantees under part A of this title; and
          [(8) to provide additional assistance under proposals 
        for financial assistance that are submitted to the 
        Secretary and approved by the Secretary after 
        consultation with the Governor of the State in which 
        the project is to operate.
  [(b) Use of Funds in Emergencies.--Amounts reserved for this 
part under section 302(a)(2) may also be used to provide 
services of the type described in section 314 whenever the 
Secretary (with agreement of the Governor) determines that an 
emergency exists with respect to any particular distressed 
industry or any particularly distressed area to provide 
emergency financial assistance to dislocated workers. The 
Secretary may make arrangements for the immediate provision of 
such emergency financial assistance for the purposes of this 
section with any necessary supportive documentation to be 
submitted at a date agreed to by the Governor and the 
Secretary.
  [(c) Staff Training and Technical Assistance.--(1) Amounts 
reserved for this part under section 302(a)(2) may be used to 
provide staff training and technical assistance services to 
States, communities, businesses and labor organizations, and 
other entities involved in providing adjustment assistance to 
workers. Applications for technical assistance funds shall be 
submitted in accordance with procedures issued by the 
Secretary.
  [(2) Not more than 5 percent of the funds reserved for this 
part in any fiscal year shall be used for the purpose of this 
subsection.
  [(d) Training of Rapid Response Staffs.--Amounts reserved for 
this part under section 302(a)(2) shall be used to provide 
training of staff, including specialists, providing rapid 
response services. Such training shall include instruction in 
proven methods of promoting, establishing, and assisting labor-
management committees.

                        [demonstration programs

  [Sec. 324. (a) Authorized Programs.--From the amount reserved 
for this part under section 302(a)(2) for the fiscal years 1992 
through 1996, not less than 10 percent of such amount shall be 
used for demonstration programs. Such demonstration programs 
may be up to three years in length, and shall include (but need 
not be limited to) at least two of the following demonstration 
programs:
          [(1) self-employment opportunity demonstration 
        program;
          [(2) public works employment demonstration program;
          [(3) dislocated farmer demonstration program; and
          [(4) job creation demonstration program.
  [(b) Evaluation and Report.--The Secretary shall conduct or 
provide for an evaluation of the success of each demonstration 
program, and shall prepare and submit to the Congress a report 
of the evaluation not later than October 1, 1992, together with 
such recommendations, including recommendations for 
legislation, as the Secretary deems appropriate.

                 [defense conversion adjustment program

  [Sec. 325. (a) In General.--From funds made available to 
carry out this section, the Secretary may make grants to 
States, substate grantees, employers, employer associations, 
and representatives of employees to provide training, 
adjustment assistance, and employment services to eligible 
employees adversely affected by reductions in expenditures by 
the United States for defense, by closures of United States 
military facilities, or by reductions in the export of defense 
articles and defense services as a result of United States 
policy, including reductions in the amount of defense articles 
and defense services under agreements to provide such articles 
or services or through termination or completion of any such 
agreements. For purposes of this section, an eligible employee 
is an eligible dislocated worker as defined in section 301(a) 
who has been terminated or laid off, or has received a notice 
of termination or lay off, as a consequence of reductions in 
expenditures by the United States for defense, by closures of 
United States military facilities, or by reductions in the 
export of defense articles and defense services as a result of 
United States policy, including reductions in the amount of 
defense articles and defense services under agreements to 
provide such articles or services or through termination or 
completion of any such agreements as determined in accordance 
with regulations of the Secretary.
  [(b) Application.--In reviewing applications for grants under 
subsection (a), the Secretary shall give priority to 
applications from areas which have the greatest number of 
eligible employees.
  [(c) Use of Funds.--Grants under subsection (a) may be used 
for any purpose for which funds may be used under section 314 
or this part.
  [(d) Demonstration Projects.--In carrying out the grant 
program established under subsection (a), the Secretary may 
make grants to entities referred to in that subsection for the 
purpose of developing demonstration projects to encourage and 
promote innovative responses to the dislocation resulting from 
reductions in expenditures by the United States for defense, by 
closures of United States military facilities, or by reductions 
in the export of defense articles and defense services as a 
result of United States policy, including reductions in the 
amount of defense articles and defense services under 
agreements to provide such articles or services or through 
termination or completion of any such agreements. Such 
demonstration projects may include--
          [(1) projects to facilitate the placement of eligible 
        employees in occupations experiencing skill shortages 
        that will make use of the skills acquired by the 
        eligible employees during their employment;
          [(2) projects to assist in retraining and 
        reorganization efforts designed to avert layoffs that 
        would otherwise occur as a result of such reductions or 
        closures; and
          [(3) projects to assist communities in addressing and 
        reducing the impact of such economic dislocation.
  [(e) Notice of Termination for Certain Defense Employees.--
          [(1) In general.--A civilian employee of the 
        Department of Defense employed at a military 
        installation being closed or realigned under the laws 
        referred to in paragraph (2) shall be eligible for 
        training, adjustment assistance, and employment 
        services under subsection (a) beginning on the date on 
        which such employee receives actual notice of 
        termination, or the date determined by the Secretary of 
        Defense under paragraph (3), whichever occurs earlier.
          [(2) Certain defense laws.--The laws referred to in 
        this paragraph are--
                  [(A) the Defense Base Closure and Realignment 
                Act of 1990 (part A of title XXIX of Public Law 
                101-510; 10 U.S.C. 2687 note); and
                  [(B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                (Public Law 100-526; 10 U.S.C. 2687 note).
          [(3) Date.--The date determined under this paragraph 
        is the date that is 24 months before the date on which 
        the military installation is to be closed or the 
        realignment of the installation is to be completed, as 
        the case may be.
  [(f) Definition.--For purposes of this section, the term 
``defense articles and defense services'' means defense 
articles, defense services, or design and construction services 
under the Arms Export Control Act (22 U.S.C. 2751 et seq.), 
including defense articles and defense services licensed or 
approved for export under section 38 of that Act (22 U.S.C. 
2778).

[SEC. 325A. DEFENSE DIVERSIFICATION PROGRAM.

  [(a) In General.--From funds made available to carry out this 
section, the Secretary, in consultation with the Secretary of 
Defense, may make grants to States, substate grantees, 
employers, representatives of employees, labor-management 
committees, and other employer-employee entities to provide for 
training, adjustment assistance, and employment services to 
eligible individuals described in subsection (b) and to develop 
plans for defense diversification or conversion assistance to 
affected facilities located within an area directly affected by 
reductions in expenditures by the United States for defense or 
by closures of United States military facilities.
  [(b) Individuals Eligible for Training, Assistance, and 
Services.--
          [(1) Certain members of the armed forces.--A member 
        of the Armed Forces shall be eligible for training, 
        adjustment assistance, and employment services under 
        this section if the member--
                  [(A) was on active duty or full-time National 
                Guard duty on September 30, 1990;
                  [(B) during the 5-year period beginning on 
                that date--
                          [(i) is involuntarily separated (as 
                        defined in section 1141 of title 10, 
                        United States Code) from active duty or 
                        full-time National Guard duty; or
                          [(ii) is separated from active duty 
                        or full-time National Guard duty 
                        pursuant to a special separation 
                        benefits program under section 1174a of 
                        title 10, United States Code, or the 
                        voluntary separation incentive program 
                        under section 1175 of that title;
                  [(C) is not entitled to retired or retainer 
                pay incident to that separation; and
                  [(D) applies for such training, adjustment 
                assistance, or employment services before the 
                end of the 180-day period beginning on the date 
                of that separation.
          [(2) Certain defense employees.--
                  [(A) In general.--Except as provided in 
                subparagraph (B), a civilian employee of the 
                Department of Defense or the Department of 
                Energy shall be eligible for training, 
                adjustment assistance, and employment services 
                under this section if the employee--
                          [(i) during the 5-year period 
                        beginning on October 1, 1992, is 
                        terminated or laid off (or receives a 
                        notice of termination or lay off) from 
                        such employment as a result of 
                        reductions in defense spending, as 
                        determined by the Secretary of Defense 
                        or the Secretary of Energy, except 
                        that, in the case of a notice of 
                        termination or lay off, the eligibility 
                        of the employee shall not begin until 
                        180 days before the projected date of 
                        the termination or lay off; and
                          [(ii) is not entitled to retired or 
                        retainer pay incident to that 
                        termination or lay off.
                  [(B) Special rule for civilian employees of 
                the department of defense employed at certain 
                military installations.--
                          [(i) In general.--A civilian employee 
                        of the Department of Defense employed 
                        at a military installation being closed 
                        or realigned under the laws referred to 
                        in clause (ii) shall be eligible for 
                        training, adjustment assistance, and 
                        employment services under this section 
                        beginning on the date on which such 
                        employee receives actual notice of 
                        termination, or the date determined by 
                        the Secretary of Defense under clause 
                        (iii), whichever occurs earlier.
                          [(ii) Certain defense laws.--The laws 
                        referred to in this clause are--
                                  [(I) the Defense Base Closure 
                                and Realignment Act of 1990 
                                (part A of title XXIX of Public 
                                Law 101-510; 10 U.S.C. 2687 
                                note);
                                  [(II) title II of the Defense 
                                Authorization Amendments and 
                                Base Closure and Realignment 
                                Act (Public Law 100-526; 10 
                                U.S.C. 2687 note);
                                  [(III) section 2687 of title 
                                10, United States Code; and
                                  [(IV) any other similar law 
                                enacted after the date of the 
                                enactment of the National 
                                Defense Authorization Act for 
                                Fiscal Year 1994.
                          [(iii) Date.--The date determined 
                        under this clause is the date that is 
                        24 months before the date on which the 
                        military installation is to be closed 
                        or the realignment of the installation 
                        is to be completed, as the case may be.
          [(3) Certain defense contractor employees.--An 
        employee of a private defense contractor shall be 
        eligible for training, adjustment assistance, and 
        employment services under this section if the 
        employee--
                  [(A)  during  the  5-year  period  beginning  
                on  October 1, 1992, is terminated or laid off 
                (or receives a notice of termination or lay 
                off) from such employment as a result of 
                reductions in defense spending, the closure or 
                realignment of a military installation, or 
                reductions in the export of defense articles 
                and defense services as a result of United 
                States policy, including reductions in the 
                amount of defense articles and defense services 
                under agreements to provide such articles or 
                services or through termination or completion 
                of any such agreements, as determined by the 
                Secretary of Defense, except that, in the case 
                of a notice of termination or lay off, the 
                eligibility of the employee shall not begin 
                until 180 days before the projected date of the 
                termination or lay off; and
                  [(B) is not entitled to retired or retainer 
                pay incident to that termination.
  [(c) Application Requirements.--
          [(1) In general.--To receive a grant under subsection 
        (a), an applicant shall submit to the Secretary an 
        application which contains such information as the 
        Secretary may require and which meets the following 
        requirements:
                  [(A) Consultation.--
                          [(i) In general.--(I) In the case of 
                        an applicant other than a State, such 
                        applicant shall submit an application 
                        to the Secretary developed in 
                        consultation with the State, and, where 
                        appropriate, in consultation with the 
                        labor-management committee or other 
                        employer-employee entity established 
                        pursuant to subparagraph (C)(ii) at the 
                        affected facility and in consultation 
                        with representatives from the 
                        Department of Defense.
                          [(II) Prior to the submission of an 
                        application under subclause (I) to the 
                        Secretary, the applicant shall submit 
                        the application to the State for 
                        review. The State shall have 30 
                        calendar days to review the 
                        application. The applicant may submit 
                        the application to the Secretary after 
                        the date on which the State completes 
                        its review of the application or upon 
                        expiration of the 30 calendar days, 
                        whichever occurs first.
                          [(ii) States.--In the case of an 
                        applicant that is a State, such State 
                        shall submit an application to the 
                        Secretary developed in consultation 
                        with appropriate substate grantees, 
                        and, where appropriate, in consultation 
                        with the labor-management committee or 
                        other employer-employee entity 
                        established pursuant to subparagraph 
                        (C)(ii) at the affected facility and in 
                        consultation with representatives from 
                        the Department of Defense.
                  [(B) Contents of application.--An application 
                shall contain a local labor market analysis, a 
                general assessment of basic skills, career 
                interests, income needs, and strategies 
                necessary for the training and placement of the 
                population that may be served, and, where 
                appropriate--
                          [(i) a preliminary outline of a 
                        program to convert the affected defense 
                        base or facility;
                          [(ii) preliminary plant or military 
                        base conversion proposals, and 
                        proposals for the effective use or 
                        conversion of surplus Federal property; 
                        and
                          [(iii) assurances that the applicant 
                        will coordinate the activities and 
                        services provided under this section 
                        with the Office of Economic Adjustment 
                        and other relevant agencies.
                  [(C) Provision of state dislocated worker 
                services.--The applicant shall provide 
                verification that the State dislocated worker 
                unit has provided, or is in the process of 
                providing, in addition to the services 
                described in section 311(b)(3) and 314(b), the 
                following activities and services:
                          [(i) The State dislocated worker 
                        unit, in conjunction with the substate 
                        grantee (and where appropriate, 
                        representatives from the Department of 
                        Defense), has established on-site 
                        contact with employers and employee 
                        representatives affected by a 
                        dislocation or potential dislocation of 
                        eligible individuals, preferably not 
                        later than 2 business days after 
                        notification of such dislocation.
                          [(ii) The State dislocated worker 
                        unit has promoted the formation of a 
                        labor-management committee or other 
                        employer-employee entity in the case of 
                        a facility affected by an employee 
                        dislocation or potential dislocation in 
                        accordance with section 314(b)(1)(B), 
                        including the provision of technical 
                        assistance and, where appropriate, 
                        financial assistance to cover the 
                        start-up costs of such committee.
                          [(iii) The State dislocated worker 
                        unit has provided, in conjunction with 
                        the labor-management committee or other 
                        employer-employee entity established 
                        pursuant to clause (ii), the following 
                        services:
                                  [(I) An initial survey of 
                                potential eligible individuals 
                                to determine the approximate 
                                number of such individuals 
                                interested in receiving 
                                services under this section, 
                                orientation sessions, 
                                counseling services, and early 
                                intervention services for 
                                eligible individuals and 
                                management. Such services may 
                                be provided in coordination 
                                with representatives from the 
                                United States Employment 
                                Service, the Interstate Job 
                                Bank, the Department of 
                                Defense, and the National 
                                Occupational Information 
                                Coordinating Committee.
                                  [(II) Initial basic 
                                readjustment services in 
                                conjunction with such services 
                                provided by substate grantees.
                  [(D) Skills upgrading.--The applicant shall 
                provide assurances satisfactory to the 
                Secretary that if the applicant uses amounts 
                from a grant under subsection (a) for skills 
                upgrading at defense facilities pursuant to 
                subsection (f)(2), the applicant will maintain 
                its expenditures from all other sources for 
                skills upgrading at or above the average level 
                of such expenditures in the fiscal year 
                preceding the date of the enactment of this 
                section.
          [(2) Technical assistance.--The Secretary may provide 
        technical assistance to an applicant for the purpose of 
        assisting the applicant to meet the application 
        requirements under paragraph (1).
          [(3) Timely decision.--The Secretary shall make a 
        determination with regard to an application received 
        under paragraph (1) not later than 30 calendar days 
        after the date on which the Secretary receives the 
        application.
          [(4) Timely notification.--The Secretary shall 
        provide timely written notification to an applicant 
        upon determination by the Secretary that the applicant 
        has not satisfied the requirements under paragraph (1).
  [(d) Selection Requirements.--
          [(1) In general.--In reviewing applications for 
        grants under subsection (a), the Secretary--
                  [(A) shall not approve an application for a 
                grant unless the application contains 
                assurances that the applicant will use amounts 
                from a grant to provide needs-related payments 
                in accordance with subsection (i);
                  [(B) shall select applications from areas 
                most severely impacted by the reduction in 
                defense expenditures and base closures, 
                particularly areas with existing high poverty 
                levels or existing high unemployment levels; 
                and
                  [(C) shall select applications from areas 
                which have the greatest number of eligible 
                individuals, taking into account the ratio of 
                eligible individuals in the affected community 
                to the population of such community.
          [(2) Priority.--In reviewing applications for grants 
        under subsection (a), the Secretary shall give priority 
        to each of the following:
                  [(A) Applications received from substate 
                grantees.
                  [(B) Applications received from any applicant 
                on behalf of affected employers in a similar 
                defense-related industry or on behalf of a 
                single employer with multiple bases or plants 
                within a State.
                  [(C) Applications demonstrating employer-
                employee cooperation, including the 
                participation of labor-management committees or 
                other employer-employee entities.
  [(e) Retention of Portion of Grant Amount.--
          [(1) Portion relating to general application 
        requirements.--Subject to paragraph (2), the Secretary 
        shall retain 25 percent of the amount of a grant 
        awarded under subsection (a) and shall disburse the 
        amount to the applicant not later than 90 days after 
        the date on which the Secretary determines that the 
        applicant is satisfactorily implementing the plans and 
        strategies described in subsection (c)(1)(B).
          [(2) Portion relating to state dislocated worker 
        services.--The Secretary shall retain up to 20 percent 
        of the amount retained under paragraph (1) (not to 
        exceed $50,000) and shall disburse the amount to the 
        State dislocated worker unit not later than 90 days 
        after the date on which the Secretary determines that 
        the applicant has provided verification that such unit 
        has satisfactorily provided the activities and services 
        described in subsection (c)(1)(C). The amount disbursed 
        under the preceding sentence shall be used to reimburse 
        such unit for expenses incurred in providing such 
        activities and services.
  [(f) Use of Funds.--Subject to the requirements of 
subsections (g), (h), (i), and (j), grants under subsection (a) 
may be used only for the following purposes:
          [(1) Any purpose for which funds may be used under 
        section 314 or this section.
          [(2) Skills upgrading, which may be provided to--
                  [(A) individuals who are employed in non-
                managerial positions, including individuals in 
                such positions who have received notice of 
                termination or lay off, if such upgrading--
                          [(i) is integral to the conversion of 
                        a defense facility and necessary to 
                        prevent a closure or mass layoff which 
                        would result in the termination or 
                        layoff of such individuals; and
                          [(ii) is to replace or update 
                        obsolete skills of such individuals 
                        with marketable skills; and
                  [(B) individuals who have received notice of 
                termination or lay off from non-managerial 
                positions, including individuals who have been 
                terminated or laid off from such positions, if 
                such upgrading is to replace or update obsolete 
                skills of such individuals with marketable 
                skills, without which reemployment in a high 
                demand occupation or industry would be 
                unlikely.
          [(3) The development and introduction of high 
        performance workplace systems, employee and 
        participative management systems, and workforce 
        participation in the evaluation, selection, and 
        implementation of new production technologies.
  [(g) Limitation.--Not more than 20 percent of amounts 
received from a grant under subsection (a) shall be used for 
administration, conversion planning activities, and the 
activities described in subsection (f)(3).
  [(h) Adjustment Assistance Requirements.--The adjustment 
assistance requirements described in section 326(e) shall apply 
for purposes of grants made under subsection (a) for adjustment 
assistance.
  [(i) Needs-Related Payments Requirements.--The Secretary 
shall prescribe regulations with respect to the use of funds 
from grants under subsection (a) for needs-related payments in 
accordance with the requirements described in section 326(f) in 
order to enable eligible individuals to complete training or 
education programs. Priority for needs-related payments shall 
be given to eligible individuals participating in certificate 
or degree awarding vocational training or education programs of 
1 year or more.
  [(j) Department of Defense Financial Assistance 
Requirement.--The Secretary of Defense, in consultation with 
the Secretary of Labor, shall prescribe regulations to ensure 
that student financial assistance authorized under programs for 
employees of the Department of Defense and veterans is provided 
prior to adjustment assistance under subsection (h), needs-
related payments under subsection (i), and any other student 
financial assistance provided under Federal law.
  [(k) Demonstration Projects.--
          [(1) In general.--In carrying out the grant program 
        established under subsection (a), the Secretary, in 
        consultation with the Secretary of Defense, may make 
        grants to the entities referred to in that subsection 
        for the purpose of developing demonstration projects to 
        encourage and promote innovative responses to the 
        dislocation resulting from reductions in expenditures 
        by the United States for defense, the closure of United 
        States military installations, or reductions in the 
        export of defense articles and defense services as a 
        result of United States policy, including reductions in 
        the amount of defense articles and defense services 
        under agreements to provide such articles or services 
        or through termination or completion of any such 
        agreements. Such demonstration projects may include--
                  [(A) projects to assist in retraining efforts 
                designed to address the needs of individuals 
                who have received notice of termination or lay 
                off and individuals who have been terminated or 
                laid off in communities affected by such 
                reductions or closures;
                  [(B) projects to assist in retraining and 
                reorganization efforts designed to avert 
                layoffs that would otherwise occur as a result 
                of such reductions or closures;
                  [(C) projects to assist communities in 
                addressing and reducing the impact of such 
                economic dislocation;
                  [(D) projects involving teams of transition 
                assistance specialists from Federal, State, and 
                local agencies to provide onsite services, 
                including assisting affected communities in 
                short-term and long-term planning and assisting 
                affected individuals through counseling and 
                referrals to appropriate services, at the site 
                of such reductions or closures within 60 days 
                of the announcement of such reductions or 
                closures;
                  [(E) projects to assist in establishing 
                transition assistance centers at the 
                installations where large dislocations occur to 
                provide comprehensive services to individuals 
                affected by such dislocations;
                  [(F) projects involving the joint efforts of 
                Federal agencies, such as the Department of 
                Labor, the Department of Defense, the 
                Department of Commerce, and the Small Business 
                Administration, to assist communities affected 
                by such reductions or closures in developing 
                integrated community planning processes to 
                facilitate the retraining of affected 
                individuals and the conversion of installations 
                to commercial uses;
                  [(G) projects to develop new information and 
                data systems to assist individuals and 
                communities affected by such reductions or 
                closures, including the development of data 
                bases with the capability to provide an 
                affected individual with a civilian economy 
                skills profile which takes into account the 
                skills acquired while working on defense-
                related matters; and
                  [(H) projects to assist small and medium-
                sized firms affected by such reductions or 
                closures in the formation of learning 
                consortia, which will promote joint efforts for 
                staff training, human resource development, 
                product development, and the marketing of 
                products.
          [(2) Limitation.--Not more than 10 percent of the 
        funds available to the Secretary to carry out this 
        section for any fiscal year may be used to carry out 
        the projects established under paragraph (1).
  [(l) Staff Training and Technical Assistance.--In carrying 
out the grant program established under subsection (a), the 
Secretary may provide staff training and technical assistance 
services to States, communities, businesses, and labor 
organizations, and other entities involved in providing 
adjustment assistance to workers.
  [(m) Administrative Expenses.--Not more than 2 percent of the 
funds available to the Secretary to carry out this section for 
any fiscal year may be retained by the Secretary for the 
administration of activities authorized under this section.
  [(n) Coordination With Technology Reinvestment Projects.--The 
Secretary, in consultation with the Secretary of Defense, shall 
ensure that activities carried out under this section are 
coordinated with relevant activities carried out pursuant to 
title IV of the Department of Defense Appropriations Act, 1993 
(Public Law 102-396; 106 Stat. 1890).
  [(o) Definitions.--For purposes of this section, the 
following definitions apply:
          [(1) Labor-management committee.--The term ``labor-
        management committee''--
                  [(A) has the meaning given such term in 
                section 301(b)(1); and
                  [(B) includes a committee established at a 
                military installation to assist members of the 
                Armed Forces who are being separated and 
                civilian employees of the Department of Defense 
                and the Department of Energy who are being 
                terminated.
          [(2) Defense contractor.--The term ``defense 
        contractor'' means a private person producing goods or 
        services pursuant to--
                  [(A) one or more defense contracts which have 
                a total amount not less than $500,000 entered 
                into with the Department of Defense; or
                  [(B) one or more subcontracts entered into in 
                connection with a defense contract and which 
                have a total amount not less than $500,000.
          [(3) Defense articles and defense services.--The term 
        ``defense articles and defense services'' means defense 
        articles, defense services, or design and construction 
        services under the Arms Export Control Act (22 U.S.C. 
        2751 et seq.), including defense articles and defense 
        services licensed or approved for export under section 
        38 of that Act (22 U.S.C. 2778).

     [ H3  deg.clean air employment transition assistance

  [Sec. 326. (a) Determination of Eligibility.--
          [(1) Definitions.--For purposes of this section, the 
        term ``eligible individual'' means an individual who--
                  [(A) is an eligible dislocated worker, as 
                that term is defined in section 301(a), and
                  [(B) has been terminated or laid off, or has 
                received a notice of termination or lay off, as 
                a consequence of compliance with the Clean Air 
                Act.
          [(2) Determinations.--The determination of 
        eligibility under paragraph (1)(B) of this subsection 
        shall be made by the Secretary of Labor, pursuant to 
        criteria established by the Secretary, in consultation 
        with the Administrator of the Environmental Protection 
        Agency.
  [(b) Grants Authorized.--The Secretary may make grants to 
States, substate grantees (as defined in section 312(c)), 
employers, employer associations, and representatives of 
employees--
          [(1) to provide training, adjustment assistance, and 
        employment services to eligible individuals adversely 
        affected by compliance with the Clean Air Act; and
          [(2) to make needs-related payments to such 
        individuals in accordance with subsection (f) of this 
        section.
  [(c) Priority and Approval.--
          [(1) Priority.--In reviewing applications for grants 
        under subsection (b), the Secretary shall give priority 
        to applications proposing to provide training, 
        adjustment assistance, and services in areas which have 
        the greatest number of eligible individuals.
          [(2) Needs-related payments required.--The Secretary 
        shall not approve an application for a grant under 
        subsection (b) unless the application contains 
        assurances that the applicant will use grant funds to 
        provide needs-related payments in accordance with 
        subsection (f).
  [(d) Use of Funds.--Subject to the requirements of 
subsections (e) and (f) of this section, grants under 
subsection (b) may be used for any purpose for which funds may 
be used under section 314.
  [(e) Adjustment Assistance.--
          [(1) Job search allowance.--
                  [(A) In general.--Grants under subsection (b) 
                for adjustment assistance may be used to 
                provide job search allowances to eligible 
                individuals. Such allowance, if granted, shall 
                provide reimbursement to the individual of not 
                more than 90 percent of the cost of necessary 
                job search expenses, as prescribed by 
                regulations of the Secretary, but may not 
                exceed $800 unless the need for a greater 
                amount is justified in the application and 
                approved by the Secretary.
                  [(B) Criteria for granting job search 
                allowances.--A job search allowance may be 
                granted only--
                          [(i) to assist an eligible individual 
                        who has been totally separated in 
                        securing a job within the United 
                        States; and
                          [(ii) where the Secretary determines 
                        that such employee cannot reasonably be 
                        expected to secure suitable employment 
                        in the commuting area in which the 
                        worker resides.
          [(2) Relocation allowance.--
                  [(A) In general.--Grants under subsection (b) 
                for adjustment assistance may be used to 
                provide relocation allowances to eligible 
                individuals. Such an allowance may only be 
                granted to assist an eligible individual in 
                relocating within the United States and only if 
                the Secretary determines that--
                          [(i) such employee cannot reasonably 
                        be expected to secure suitable 
                        employment in the commuting area in 
                        which the employee resides; and
                          [(ii) such employee--
                                  [(I) has obtained suitable 
                                employment affording a 
                                reasonable expectation of long-
                                term duration in the area in 
                                which the employee wishes to 
                                relocate, or has obtained a 
                                bona fide offer of such 
                                employment, and
                                  [(II) is totally separated 
                                from employment at the time 
                                relocation commences.
                  [(B) Amount of relocation allowance.--The 
                amount of any relocation allowance for any 
                eligible individual may not exceed the amount 
                which is equal to the sum of--
                          [(i) 90 percent of the reasonable and 
                        necessary expenses, specified in 
                        regulations prescribed by the 
                        Secretary, incurred in transporting an 
                        individual and the individual's family, 
                        if any, and household effects, and
                          [(ii) a lump sum equivalent to 3 
                        times the employee's average weekly 
                        wage, up to a maximum payment of $800, 
                        unless the need for a greater amount is 
                        justified in the application and 
                        approved by the Secretary.
  [(f) Needs-Related Payments.--The Secretary shall prescribe 
regulations with respect to the use of funds from grants under 
subsection (b) for needs-related payments in order to enable 
eligible individuals to complete training or education programs 
under this section. Such regulations shall--
          [(1) require that such payments shall be provided to 
        an eligible individual only if such individual--
                  [(A) does not qualify or has ceased to 
                qualify for unemployment compensation;
                  [(B) has been enrolled in training by the end 
                of the 13th week of the individual's initial 
                unemployment compensation benefit period, or, 
                if later, the end of the 8th week after an 
                individual is informed that a short-term layoff 
                will in fact exceed 6 months; and
                  [(C) is participating in training or 
                education programs under this section, except 
                that such regulations shall protect an 
                individual from being disqualified pursuant to 
                this clause for a failure to participate that 
                is not the fault of the individual;
          [(2) provide that to qualify for such payments the 
        individual currently receives, or is a member of a 
        family which currently receives, a total family income 
        (exclusive of unemployment compensation, child support 
        payments, and welfare payments) which, in relation to 
        family size, is not in excess of the lower living 
        standard income level;
          [(3) provide that the levels of such payments shall 
        be equal to the higher of--
                  [(A) the applicable level of unemployment 
                compensation; or
                  [(B) the poverty level determined in 
                accordance with criteria established by the 
                Director of the Office of Management and 
                Budget;
          [(4) provide for the adjustment of payments to 
        reflect changes in total family income; and
          [(5) provide that the grantee shall obtain 
        information with respect to such income, and changes 
        therein, from the eligible individual.
  [(g) Administrative Expenses.--The Secretary of Labor may 
reserve not more than 5 percent of the funds appropriated under 
this section for the administration of activities authorized 
under this section, including the provision of technical 
assistance for the preparation of grant applications.
  [(h) Authorization of Appropriations.--In addition to amounts 
authorized to be appropriated by section 3(b) of this Act, 
there are authorized to be appropriated $50,000,000 for fiscal 
year 1991, and such sums as may be necessary for each of fiscal 
years 1992, 1993, 1994, and 1995 to carry out this section. The 
total amount appropriated for all 5 such fiscal years shall not 
exceed $250,000,000. Amounts appropriated pursuant to this 
subsection shall remain available until expended.
  [(i) Regulations.--The Secretary shall prescribe regulations 
to carry out this section not later than 180 days after the 
date of enactment of this section.
  [(j) GAO Assessment of Effects of Clean Air Act Compliance on 
Employment.--The Comptroller General of the United States 
shall--
          [(1) identify and assess, to the extent possible, the 
        effects on employment that are attributable to 
        compliance with the provisions of the Clean Air Act; 
        and
          [(2) submit to the Congress on the 4th anniversary of 
        the date of the enactment of this subtitle a written 
        report on the assessments required under paragraph (1).
               [TITLE IV--FEDERALLY ADMINISTERED PROGRAMS

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

                       [native american programs

  [Sec. 401. (a) The Congress finds that (1) serious 
unemployment and economic disadvantages exist among members of 
Indian, Alaskan Native, and Hawaiian Native communities; (2) 
there is a compelling need for the establishment of 
comprehensive training and employment programs for members of 
those communities; and (3) such programs are essential to the 
reduction of economic disadvantages among individual members of 
those communities and to the advancement of economic and social 
development in the communities consistent with their goals and 
lifestyles.
  [(b) The Congress therefore declares that, because of the 
special relationship between the Federal Government and most of 
the individuals to be served by the provisions of this section, 
(1) such programs shall be administered at the national level; 
(2) such programs shall be available to federally recognized 
Indian tribes, bands, and groups and to other groups and 
individuals of Native American descent; and (3) such programs 
shall be administered in such a manner as to maximize the 
Federal commitment to support growth and development as 
determined by representatives of the communities and groups 
served by this section.
  [(c)(1)(A) In carrying out responsibilities under this 
section, the Secretary shall, wherever possible, utilize Indian 
tribes, bands, or groups on Federal or State reservations, 
Oklahoma Indians, and including for the purpose of this Act, 
Alaska Native villages or groups as defined in the Alaska 
Native Claims Settlement Act, having a governing body for the 
provision of employment and training services under this 
section. When the Secretary determines that such tribe, band, 
or group has demonstrated the capability to effectively 
administer a comprehensive employment and training program, the 
Secretary shall require such tribe, band, or group to submit a 
comprehensive plan meeting such requirements as the Secretary 
prescribes.
  [(B) The Secretary shall arrange for programs to meet the 
employment and training needs of Hawaiian natives through such 
organizations as the Secretary determines will best meet their 
needs.
  [(2) In carrying out responsibilities under this section, the 
Secretary shall make arrangements with organizations (meeting 
requirements prescribed by the Secretary) serving 
nonreservation Native Americans for programs and projects 
designed to meet the needs of such Native Americans for 
employment and training and related services.
  [(d) Whenever the Secretary determines not to utilize Indian 
tribes, bands, or groups for the provision of employment and 
training services under this section, the Secretary shall, to 
the maximum extent feasible, enter into arrangements for the 
provision of such services with organizations which meet with 
the approval of the tribes, bands, or groups to be served.
  [(e) The Secretary is directed to take appropriate action to 
establish administrative procedures and machinery (including 
personnel having particular competence in this field) for the 
selection, administration, monitoring, and evaluation of Native 
American employment and training programs authorized under this 
Act.
  [(f) Funds available for this section shall be expended for 
programs and activities consistent with the purposes of this 
section including but not limited to such programs and 
activities carried out by recipients under other provisions of 
this Act.
  [(g) No provision of this section shall abrogate in any way 
the trust responsibilities of the Federal Government to Native 
American bands, tribes, or groups.
  [(h)(1) The Secretary shall, after consultation with 
representatives of Indians and other Native Americans, 
prescribe such rules, regulations, and performance standards 
pursuant to section 106 relating to Native American programs 
under this section as may be required to meet the special 
circumstances under which such programs operate.
  [(2) Recipients of funds under this section shall establish 
performance goals, which shall, to the extent required by the 
Secretary, comply with performance standards established by the 
Secretary pursuant to section 106.
  [(i) The Secretary shall provide technical assistance as 
necessary to tribes, bands, and groups eligible for assistance 
under this section.
  [(j)(1) The Secretary shall designate a single organizational 
unit that shall have as its primary responsibility the 
administration of all Native American programs authorized under 
this Act.
  [(2) Such organizational unit shall--
          [(A) be responsible for administering the provisions 
        of the Native American programs authorized under this 
        Act, including monitoring such programs and making 
        recommendations regarding the selection of the 
        recipients of financial assistance;
          [(B) be responsible for the development of the 
        policies and procedures related to the implementation 
        of such programs; and
          [(C) coordinate the development of policy and 
        procedures for the employment and training programs 
        within the Department relating to services for Native 
        American workers.
  [(3) In the hiring and promotion of the professional staff 
for the organizational unit designated under paragraph (1), 
special consideration shall be given to individuals who have 
field experience in the daily operation of service and training 
programs for Native Americans, and individuals who are Indians 
or Alaskan Natives. The Secretary shall take such additional 
actions as may be necessary to promote the recruitment and 
promotion of Indians, Alaskan Natives, and Hawaiian Natives to 
positions in such unit.
  [(k)(1) There is hereby established a Native American 
Employment and Training Council (referred to in this subsection 
as the ``Council''), which shall consist of not fewer than 17 
Indians, Alaskan Natives, and Hawaiian Natives appointed by the 
Secretary from among individuals nominated by Indian tribes or 
Indian, Alaskan Native, or Hawaiian Native organizations. The 
membership of the Council shall represent all geographic areas 
of the United States with a substantial Indian, Alaskan Native, 
or Hawaiian Native population and shall include representatives 
of tribal governments and of nonreservation Native American 
organizations who are service providers under this Act. A 
majority of the members of the Council shall have field 
experience in the daily operation of the program authorized 
under this section.
  [(2) The Council shall select a chairperson from among its 
members by a majority vote. The Council shall meet not less 
often than twice each program year.
  [(3) Members of the Native American Programs Advisory 
Committee that existed before the date of enactment of this 
subsection--
          [(A) shall serve as members of the Council until 
        their successors are appointed; and
          [(B) may be appointed as members of the Council, if 
        such appointment is consistent with the provisions of 
        this subsection.
  [(4) Each member of the Council shall serve for a term of 2 
years, except that--
          [(A) one-half of the members initially appointed (as 
        designated by the Secretary) shall serve for terms of 1 
        year;
          [(B) any vacancy occurring in the membership of the 
        Council shall be filled in the same manner as the 
        original appointment, and shall not affect the power of 
        the remaining members to execute the duties of the 
        Council;
          [(C) any member appointed to such a vacancy shall 
        serve for the remainder of the term for which the 
        predecessor of the member was appointed; and
          [(D) members may be reappointed.
  [(5) The initial membership of the Council shall be appointed 
not later than the beginning of program year 1993.
  [(6) The Council shall--
          [(A) solicit the views of a wide variety of Indian 
        tribes and Native American groups, including groups 
        operating employment and training programs funded under 
        this section, on issues affecting the operation and 
        administration of such programs;
          [(B) advise the Secretary with respect to the 
        implementation of programs under this section and other 
        programs providing services to Native American youth 
        and adults under this Act;
          [(C) advise and make recommendations to the Secretary 
        with respect to the design and implementation of 
        performance standards developed under section 106(f);
          [(D) advise and make recommendations to the Secretary 
        with respect to the services obtained or to be obtained 
        by the Department of Labor through contracts or 
        arrangements with non-Federal agencies or entities that 
        involve the program authorized by this section;
          [(E) evaluate the effectiveness of Native American 
        job training programs and make recommendations with 
        respect to the improvement of such programs;
          [(F) advise the Secretary with respect to individuals 
        to be considered to fill the position of the official 
        in charge of the organizational unit designated under 
        subsection (j)(1) whenever a vacancy in such position 
        occurs; and
          [(G) prepare and submit directly to the Secretary and 
        to the Congress, not later than January 1 of each even 
        numbered year, a report containing information on the 
        progress of Native American job training programs and 
        recommendations for improving their administration and 
        effectiveness.
  [(7) Members of the Council shall serve without compensation. 
Each member of the Council shall receive travel expenses, 
including per diem in lieu of subsistence, at rates authorized 
for employees of agencies under subchapter I of chapter 57 of 
title 5, United States Code, for each day the member is engaged 
in the performance of duties away from the home or regular 
place of business of the member.
  [(8) The Secretary shall provide the Council with such 
administrative support as may be necessary to perform its 
functions.
  [(l) The competition for grants under this section shall be 
conducted every 2 years, except that if a recipient of such a 
grant has performed satisfactorily under the terms of the 
existing grant agreement, the Secretary may waive the 
requirement for such competition on receipt from the recipient 
of a satisfactory 2-year program plan for the succeeding 2-year 
grant period.

               [migrant and seasonal farmworker programs

  [Sec. 402. (a) The Congress finds and declares that--
          [(1) chronic seasonal unemployment and 
        underemployment in the agricultural industry, 
        aggravated by continual advancements in technology and 
        mechanization resulting in displacement, constitute a 
        substantial portion of the Nation's rural employment 
        problem and substantially affect the entire national 
        economy; and
          [(2) because of the special nature of farmworker 
        employment and training problems, such programs shall 
        be centrally administered at the national level.
  [(b) The Secretary is directed to take appropriate action to 
establish administrative procedures and machinery (including 
personnel having particular competence in this field) for the 
selection, administration, monitoring, and evaluation of 
migrant and seasonal employment and training programs 
authorized under this Act.
  [(c)(1) The Secretary shall provide services to meet the 
employment and training needs of migrant and seasonal 
farmworkers through such public agencies and private nonprofit 
organizations as the Secretary determines to have an 
understanding of the problems of migrant and seasonal 
farmworkers, a familiarity with the area to be served, and a 
previously demonstrated capability to administer effectively a 
diversified employability development program for migrant and 
seasonal farmworkers. In awarding any grant or contract for 
services under this section, the Secretary shall use procedures 
consistent with standard competitive Government procurement 
policies.
  [(c)(2) The competition for grants under this section shall 
be conducted every 2 years, except that if a recipient of such 
a grant has performed satisfactorily under the terms of the 
existing grant agreement, the Secretary may waive the 
requirement for such competition upon receipt from the 
recipient of a satisfactory 2-year program plan for the 
succeeding 2-year grant period.
  [(3) Programs and activities supported under this section, 
including those carried out under other provisions of this Act, 
shall enable farmworkers and their dependents to obtain or 
retain employment, to participate in other program activities 
leading to their eventual placement in unsubsidized 
agricultural or nonagricultural employment, and to participate 
in activities leading to stabilization in agricultural 
employment, and shall include related assistance and supportive 
services.
  [(4) Recipients of funds under this section shall establish 
performance goals, which shall, to the extent required by the 
Secretary, comply with performance standards established by the 
Secretary pursuant to section 106.
  [(5) No programs and activities supported under this section 
shall preclude assistance to farmworkers under any other 
provision of this Act.
  [(d) In administering programs under this section, the 
Secretary shall consult with appropriate State and local 
officials.
  [(e) The Secretary is directed to take appropriate action to 
establish administrative procedures and machinery (including 
personnel having particular competence in this field) for the 
selection, administration, monitoring, and evaluation of 
migrant and seasonal farmworker's employment and training 
programs authorized under this Act.

                  [ H3  deg.grant procedures

  Sec. 403. Grants under sections 401 and 402 shall be subject 
to the Single Audit Act of 1984 (31 U.S.C. 7501 et seq.) and 
charging of costs under such sections shall be subject to 
appropriate circulars issued by the Office of Management and 
Budget.
                          [Part B--Job Corps]

  Sec. [421.] 2. This [part] Act maintains a Job Corps for 
economically disadvantaged young men and women which shall 
operate exclusively as a distinct national program, sets forth 
standards and procedures for selecting individuals as enrollees 
in the Job Corps, authorizes the establishment of residential 
and nonresidential centers in which enrollees will participate 
in intensive programs of education, vocational training, work 
experience, counseling and other activities, and prescribes 
various other powers, duties, and responsibilities incident to 
the operation and continuing development of the Job Corps. The 
purpose of this [part] Act is to assist young individuals who 
need and can benefit from an unusually intensive program, 
operated in a group setting, to become more responsible, 
employable, and productive citizens; and to do so in a way that 
contributes, where feasible, to the development of national, 
State, and community resources, and to the development and 
dissemination of techniques for working with the disadvantaged 
that can be widely utilized by public and private institutions 
and agencies.

                     establishment of the job corps

  Sec. [422.] 3. There shall be within the Department of Labor 
a ``Job Corps''.

                 individuals eligible for the job corps

  Sec. [423.] 4. To become an enrollee in the Job Corps, a 
young man or woman must be an eligible youth who--
          (1) has attained age 14 but not attained age 22 at 
        the time of enrollment, except that not more than 20 
        percent of the individuals enrolled may be age 22 
        through 24, and that either such maximum age limitation 
        may be waived, in accordance with regulations of the 
        Secretary, in the case of any individual with a 
        disability;
          * * * * * * *
          (4) is determined, after careful screening as 
        provided for in [sections 424 and 425] sections 5 and 6 
        to have the present capabilities and aspirations needed 
        to complete and secure the full benefit of the Job 
        Corps and to be free of medical and behavioral problems 
        so serious that the individual could not adjust to the 
        standards of conduct, discipline, work, and training 
        which the Job Corps involves; and
          (5) meets such other standards for enrollment as the 
        Secretary may prescribe and agrees to comply with all 
        applicable Job Corps rules and regulations.

       screening and selection of applicants: general provisions

  Sec. [424.] 5. (a) The Secretary shall prescribe specific 
standards and procedures for the screening and selection of 
applicants for the Job Corps. To the extent practicable, these 
rules shall be implemented through arrangements with agencies 
and organizations such as community action agencies, public 
employment offices, [entities administering programs under 
title II of this Act,] professional groups, labor 
organizations, and agencies and individuals having contact with 
youth over substantial periods of time and able to offer 
reliable information as to their needs and problems. The rules 
shall provide for necessary consultation with other individuals 
and organizations, including court, probation, parole, law 
enforcement, education, welfare, and medical authorities and 
advisers. The rules shall also provide for the interviewing of 
each applicant for the purpose of--
          (1) determining whether the applicant's educational 
        and vocational needs can best be met through the Job 
        Corps or an alternative program in the applicant's home 
        community;
          (2) obtaining from the applicant pertinent data 
        relating to background, needs, and interests for 
        determining eligibility and potential assignment; and
          (3) giving the applicant a full understanding of the 
        Job Corps and what will be expected of an enrollee in 
        the event of acceptance.
  (b) The Secretary is authorized to make payments to 
individuals and organizations for the cost of the recruitment, 
screening, and selection of candidates, as provided for in this 
[part] Act. The Secretary shall make no payments to any 
individual or organization solely as compensation for referring 
the names of candidates for Job Corps.
  (c) The Secretary shall assure that Job Corps enrollees 
include an appropriate number of candidates selected from rural 
areas, taking into account the proportions of eligible youth 
who reside in rural areas and the need to provide residential 
facilities for such youth.

              screening and selection: special limitations

  Sec. [425.] 6. (a) No individual shall be selected as an 
enrollee unless there is reasonable expectation that the 
individual can participate successfully in group situations and 
activities, is not likely to engage in behavior that would 
prevent other enrollees from receiving the benefit of the 
program or be incompatible with the maintenance of sound 
discipline and satisfactory relationships between the center to 
which the individual might be assigned and surrounding 
communities, and unless the individual manifests a basic 
understanding of both the rules to which the individual will be 
subject and of the consequences of failure to observe those 
rules.
          * * * * * * *

                       enrollment and assignment

  Sec. [426.] 7. (a) No individual may be enrolled in the Job 
Corps for more than two years, except in any case in which 
completion of an advanced career program under [section 428] 
section 9 would require an individual to participate in excess 
of two years, or except as the Secretary may authorize in 
special cases.
          * * * * * * *
  [(d) Nothing in this Act shall be construed to prohibit an 
individual who has been a participant in the Job Corps from 
concurrently or subsequently participating in programs under 
title II, or to prohibit an individual who has been a 
participant in programs under title II from concurrently or 
subsequently participating in the Job Corps.]

                           job corps centers

  Sec. [427.] 8. (a)(1) The Secretary may make agreements with 
Federal, State, or local agencies, including a State board or 
agency designated pursuant to section 111(a)(1) of the Carl D. 
Perkins Vocational Education Act which operates or wishes to 
develop area vocational education school facilities or 
residential vocational schools (or both) as authorized by such 
Act, or private organizations for the establishment and 
operation of Job Corps centers. Job Corps centers may, subject 
to paragraph (2), be residential or nonresidential in 
character, or both, and shall be designed and operated so as to 
provide enrollees, in a well-supervised setting, with 
education, vocational training, work experience (either in 
direct program activities or through arrangements with 
employers), counseling, and other services appropriate to their 
needs. The centers shall include Civilian Conservation Centers, 
located primarily in rural areas, which shall provide, in 
addition to other training and assistance, programs of work 
experience to conserve, develop, or manage public natural 
resources or public recreational areas or to develop community 
projects in the public interest. The centers shall also include 
training centers located in either urban or rural areas which 
shall provide activities including training and other services 
for specific types of skilled or semiskilled employment.
          * * * * * * *
  [(b) To the extent feasible, Job Corps centers shall offer 
education and vocational training opportunities, together with 
supportive services, on a nonresidential basis to participants 
in other programs under this Act. Such opportunities may be 
offered on a reimbursable basis or through such other 
arrangements as the Secretary may specify.
  [(c)] (b) No funds appropriated to the Department of Labor 
for any fiscal year may be used to carry out any contract with 
a nongovernmental entity to administer or manage a Civilian 
Conservation Center of the Job Corps.

                           program activities

  Sec. [428.] 9. (a) Each Job Corps center shall provide 
enrollees with an intensive, well-organized, and fully 
supervised program of education, vocational training, work 
experience, planned vocational and recreational activities, 
physical rehabilitation and development, and counseling. To the 
fullest extent feasible, the required program shall include 
activities to assist enrollees in choosing realistic career 
goals, coping with problems they may encounter in home 
communities, or in adjusting to new communities, and planning 
and managing their daily affairs in a manner that will best 
contribute to long-term upward mobility. Center programs shall 
include required participation in center maintenance work to 
assist enrollees in increasing their sense of contribution, 
responsibility, and discipline.
          * * * * * * *
                         allowances and support

  Sec. [429.] 10. (a) The Secretary shall provide enrollees 
with such personal, travel, and leave allowances, and such 
quarters, subsistence, transportation, equipment, clothing, 
recreational services, and other expenses as he may deem 
necessary or appropriate to their needs. For the fiscal year 
ending September 30, 1983, personal allowances shall be 
established at a rate not to exceed $65 per month during the 
first six months of an enrollee's participation in the program 
and not to exceed $110 per month thereafter, except that 
allowances in excess of $65 per month, but not exceeding $110 
per month, may be provided from the beginning of an enrollee's 
participation if it is expected to be of less than six months' 
duration and the Secretary is authorized to pay personal 
allowances in excess of the rates specified in this subsection 
in unusual circumstances as determined by him. Such allowances 
shall be graduated up to the maximum so as to encourage 
continued participation in the program, achievement and the 
best use by the enrollee of the funds so provided and shall be 
subject to reduction in appropriate cases as a disciplinary 
measure. To the degree reasonable, enrollees shall be required 
to meet or contribute to costs associated with their individual 
comfort and enjoyment from their personal allowances.
          * * * * * * *

                          standards of conduct

  Sec. [430.] 11. (a) Within Job Corps centers standards of 
conduct shall be provided and stringently enforced. If 
violations are committed by enrollees, dismissal from the Corps 
or transfers to other locations shall be made if it is 
determined that their retention in the Corps, or in the 
particular center, will jeopardize the enforcement of such 
standards or diminish the opportunities of other enrollees.
          * * * * * * *

                        community participation

  Sec. [431.] 12. The Secretary shall encourage and cooperate 
in activities to establish a mutually beneficial relationship 
between Job Corps centers and nearby communities. These 
activities shall include the establishment of community 
advisory councils to provide a mechanism for joint discussion 
of common problems and for planning programs of mutual 
interest. Youth shall be represented on the advisory council 
and separate youth councils may be established composed of 
enrollees and young people from the communities. The Secretary 
shall assure that each center is operated with a view to 
achieving, so far as possible, objectives which shall include--
          (1)  * * *
          * * * * * * *

                      counseling and job placement

  Sec. [432.] 13. (a) The Secretary shall counsel and test each 
enrollee at regular intervals to measure progress in 
educational and vocational programs.
          * * * * * * *

  experimental and developmental projects and coordination with other 
                                programs

  Sec. [433.] 14. (a)(1) The Secretary is authorized to 
undertake experimental, research, or demonstration projects to 
develop or test ways of better using facilities, encouraging a 
more rapid adjustment of enrollees to community life that will 
permit a reduction in their period of enrollment, reducing 
transportation and support costs, or otherwise promoting 
greater efficiency and effectiveness in the program. These 
projects shall include one or more projects providing youth 
with education, training, and other supportive services on a 
combined residential and nonresidential basis.
  (2)  * * *
          * * * * * * *
  (4) Projects under this subsection shall be developed after 
appropriate consultation with other Federal or State agencies 
conducting similar or related programs or projects and with the 
administrative entity in the communities where the projects 
will be carried out. They may be undertaken jointly with other 
Federal or federally assisted programs, and funds otherwise 
available for activities under those programs shall, with the 
consent of the head of any agency concerned, be available for 
projects under this section to the extent they include the same 
or substantially similar activities. The Secretary is 
authorized to waive any provision of this [part] Act which the 
Secretary finds would prevent the carrying out of elements of 
projects under this subsection essential to a determination of 
their feasibility and usefulness. The Secretary shall, in the 
annual report of the Secretary, report to the Congress 
concerning the actions taken under this section, including a 
full description of progress made in connection with combined 
residential and nonresidential projects.
          * * * * * * *
  (c)(1) The Secretary, through the Job Corps [and activities 
authorized under sections 452 and 453], shall develop and 
implement activities designed to disseminate information gained 
from Job Corps program experience which may be of use in the 
innovation and improvement of related programs. To carry out 
this purpose, the Secretary may enter into appropriate 
arrangements with any Federal or State agency.
          * * * * * * *
  (e) In order to determine whether community participation as 
required under [section 431] section 12 can be improved through 
the closer involvement of community-based organizations, the 
Secretary is authorized to undertake one or more pilot projects 
utilizing community-based organizations of demonstrated 
effectiveness for Job Corps center operation. For purposes of 
such pilot projects, the term ``community-based organizations'' 
may include nonprofit educational foundations organized on a 
State or local basis.

                job corps centers for homeless families

  Sec. [433A.] 15. (a) Subject to the availability of 
appropriations therefor, the Secretary is authorized, in 
accordance with [section 427] section 8, to provide services 
and facilities in accordance with this section to eligible 
homeless individuals and their families at Job Corps centers. 
Job Corps centers serving homeless individuals and their 
families shall--
          (1) be residential;
          * * * * * * *
          (4) provide enrollees--
                  (A) program activities that include both 
                activities to sustain the operation of the 
                center and regular Job Corps activities 
                required under [section 428] section 9; and
                  (B) the benefits and services given to any 
                other enrollee under this part.
          * * * * * * *
  (c) To become an enrollee in the Job Corps at a center 
established providing services and facilities to homeless 
individuals under this section, an individual--
          (1) shall qualify as a homeless individual under 
        section 103 of the Stewart B. McKinney Homeless 
        Assistance Act;
          (2) shall have not attained the age of 25 at the time 
        of enrollment; and
          (3) shall meet the requirements of paragraphs (2) 
        through (5) of [section 423] section 4.
  (d) The Secretary shall prescribe special screening standards 
under [sections 424 and 425] sections 5 and 6 to identify and 
select enrollees for purposes of this section.
  (e) The Secretary shall[, pursuant to section 452(d),] 
conduct evaluations of the centers providing services and 
facilities to homeless individuals under this section. The 
Secretary shall submit to the Congress a report on the results 
of such evaluations, together with the Secretary's 
recommendations concerning such centers, not later than 3 years 
after the date of enactment of this section.
          * * * * * * *

                     advisory boards and committees

  Sec. [434.] 16. The Secretary is authorized to make use of 
advisory committees in connection with the operation of the Job 
Corps, and the operation of Job Corps centers, whenever the 
Secretary determines that the availability of outside advice 
and counsel on a regular basis would be of substantial benefit 
in identifying and overcoming problems, in planning program or 
center development, or in strengthening relationships between 
the Job Corps and agencies, institutions, or groups engaged in 
related activities.

                      participation of the states

  Sec. [435.] 17. (a) The Secretary shall take action to 
facilitate the effective participation of States in the Job 
Corps programs, including consultation with appropriate State 
agencies on matters pertaining to the enforcement of applicable 
State laws, standards of enrollee conduct and discipline, 
development of meaningful work experience and other activities 
for enrollees, and coordination with State-operated programs.
  (b) The Secretary is authorized to enter into agreements with 
States to assist in the operation or administration of State-
operated programs which carry out the purpose of this [part] 
Act. The Secretary is authorized, pursuant to regulations, to 
pay part or all of the costs of such programs to the extent 
such costs are attributable to carrying out the purpose of this 
[part] Act.
  (c) No Job Corps center or other similar facility designed to 
carry out the purpose of this [part] Act shall be established 
within a State unless a notice setting forth such proposed 
establishment has been submitted to the Governor, and the 
establishment has not been disapproved by the Governor within 
thirty days of such submission.
  (d) All property which would otherwise be under exclusive 
Federal legislative jurisdiction shall be under concurrent 
jurisdiction with the appropriate State and locality with 
respect to criminal law enforcement as long as a Job Corps 
center is operated on such property.

                application of provisions of federal law

  Sec. [436.] 18. (a) Except as otherwise provided in this 
subsection and in section 8143(a) of title 5, United States 
Code, enrollees in the Job Corps shall not be considered 
Federal employees and shall not be subject to the provisions of 
law relating to Federal employment, including those regarding 
hours of work, rates of compensation, leave, unemployment 
compensation, and Federal employee benefits:
          (1) For purposes of the Internal Revenue Code of 1986 
        (26 U.S.C. 1 et seq.) and title II of the Social 
        Security Act (42 U.S.C. 401 et seq.) enrollees shall be 
        deemed employees of the United States and any service 
        performed by an individual as an enrollee shall be 
        deemed to be performed in the employ of the United 
        States.
          (2) For purposes of subchapter I of chapter 81 of 
        title 5, United States Code (relating to compensation 
        to Federal employees for work injuries), enrollees 
        shall be deemed civil employees of the United States 
        within the meaning of the term ``employee'' as defined 
        in section 8101 of title 5, United States Code, and the 
        provisions of that subchapter shall apply except--
                  (A) the term ``performance of duty'' shall 
                not include any act of an enrollee while absent 
                from the assigned post of duty of such 
                enrollee, except while participating in an 
                activity (including an activity while on pass 
                or during travel to or from such post or duty) 
                authorized by or under the direction and 
                supervision of the Job Corps;
                  (B) in computing compensation benefits for 
                disability or death, the monthly pay of an 
                enrollee shall be deemed that received under 
                the entrance salary for a grade GS-2 employee, 
                and sections 8113 (a) and (b) of title 5, 
                United States Code, shall apply to enrollees; 
                and
                  (C) compensation for disability shall not 
                begin to accrue until the day following the 
                date on which the injured enrollee is 
                terminated.
          (3) For purposes of the Federal tort claims 
        provisions in title 28, United States Code, enrollees 
        shall be considered employees of the Government.
  (b) Whenever the Secretary finds a claim for damages to 
persons or property resulting from the operation of the Job 
Corps to be a proper charge against the United States, and it 
is not cognizable under section 2672 of title 28, United States 
Code, the Secretary is authorized to adjust and settle it in an 
amount not exceeding $1,500.
  (c) Personnel of the uniformed services who are detailed or 
assigned to duty in the performance of agreements made by the 
Secretary for the support of the Corps shall not be counted in 
computing strength under any law limiting the strength of such 
services or in computing the percentage authorized by law for 
any grade in such services.
                           special provisions

  Sec. [437.] 19. (a) The Secretary shall immediately take 
steps to achieve an enrollment of 50 percent women in the Job 
Corps consistent with (1) efficiency and economy in the 
operation of the program, (2) sound administrative practice, 
and (3) the socioeconomic, educational, and training needs of 
the population to be served.
  (b) The Secretary shall assure that all studies, evaluations, 
proposals, and data produced or developed with Federal funds in 
the course of the Job Corps program shall become the property 
of the United States.
  (c) Transactions conducted by a private for-profit contractor 
or a nonprofit contractor in connection with the contractor's 
operation of a Job Corps Center, program, or activity shall not 
be considered as generating gross receipts. Such contractors 
shall not be liable, directly or indirectly, to any State or 
subdivision thereof (nor to any person acting on behalf 
thereof) for any gross receipts taxes, business privilege taxes 
measured by gross receipts, or any similar taxes imposed on, or 
measured by, gross receipts in connection with any payments 
made to or by such contractor for operating a Job Corps Center, 
program, or activity. Such contractors shall not be liable to 
any State or subdivision thereof to collect or pay any sales, 
excise, use, or similar tax imposed upon the sale to or use by 
such contractors of any property, service, or other item in 
connection with the operation of a Job Corps Center, program, 
or activity.
  (d) The Secretary shall provide all Job Corps contractors 
with an equitable and negotiated management fee of not less 
than 1 percent of the contract amount.

                           general provisions

  Sec. [438.] 20. The Secretary is authorized to--
          (1) disseminate, with regard to the provisions of 
        section 3204 of title 39, United States Code, data and 
        information in such forms as the Secretary shall deem 
        appropriate, to public agencies, private organizations, 
        and the general public;
          (2) collect or compromise all obligations to or held 
        by the Secretary and all legal or equitable rights 
        accruing to the Secretary in connection with the 
        payment of obligations until such time as such 
        obligations may be referred to the Attorney General for 
        suit or collection; and
          (3) expend funds made available for purposes of this 
        [part] Act--
                  (A) for printing and binding, in accordance 
                with applicable law and regulation; and
                  (B) without regard to any other law or 
                regulation, for rent of buildings and space in 
                buildings and for repair, alteration, and 
                improvement of buildings and space in buildings 
                rented by the Secretary, except that the 
                Secretary shall not utilize the authority 
                contained in this subparagraph--
                          (i) except when necessary to obtain 
                        an item, service, or facility, which is 
                        required in the proper administration 
                        of this [part] Act, and which otherwise 
                        could not be obtained, or could not be 
                        obtained in the quantity or quality 
                        needed, or at the time, in the form or 
                        under the conditions in which it is 
                        needed; and
                          (ii) prior to having given written 
                        notification to the Administrator of 
                        General Services (if the exercise of 
                        such authority would affect an activity 
                        which otherwise would be under the 
                        jurisdiction of the General Services 
                        Administration) of the Secretary's 
                        intention to exercise such authority, 
                        the item, service, or facility with 
                        respect to which such authority is 
                        proposed to be exercised, and the 
                        reasons and justifications for the 
                        exercise of such authority.

                               donations

  Sec. [439.] 21. The Secretary is authorized to accept on 
behalf of the Job Corps or individual Job Corps centers 
charitable donations of cash or other assistance, including but 
not limited to, equipment and materials, if such donations are 
available for appropriate use for the purposes set forth in 
this [part] Act.

                [Part C--Veterans' Employment Programs]

          [programs authorized] veterans' employment programs

  Sec. [441.] 22. (a)(1) The Secretary shall conduct, directly 
or through grant or contract, programs to meet the employment 
and training needs of service-connected disabled veterans, 
veterans of the Vietnam era, and veterans who are recently 
separated from military service.
  (2) Programs supported under this [part] Act may be conducted 
through public agencies and private nonprofit organizations, 
including recipients under other provisions of this Act that 
the Secretary determines have an understanding of the 
unemployment problems of such veterans, familiarity with the 
area to be served, and the capability to administer effectively 
a program of employment and training assistance for such 
veterans.
  (3) Programs supported under this [part] Act shall include, 
but not be limited to--
          (A) activities to enhance services provided veterans 
        by other providers of employment and training services 
        funded by Federal, State, or local government;
          (B) activities to provide employment and training 
        services to such veterans not adequately provided by 
        other public employment and training service providers; 
        and
          (C) outreach and public information activities to 
        develop and promote maximum job and job training 
        opportunities for such veterans and to inform such 
        veterans about employment, job-training, on-the-job 
        training and educational opportunities under this Act, 
        under title 38, United States Code, and under other 
        provisions of law.
  (b)(1) The Secretary shall administer programs supported 
under this [part] Act through the Assistant Secretary for 
Veterans' Employment.
  (2) In carrying out responsibilities under this [part] Act, 
the Assistant Secretary for Veterans' Employment shall--
          (A) be responsible for the awarding of grants and the 
        distribution of funds under this [part] Act and for the 
        establishment of appropriate fiscal controls, 
        accountability, and program-performance standards for 
        grant recipients under this [part] Act; and
          (B) consult with the Secretary of Veterans Affairs 
        and take steps to ensure that programs supported under 
        this [part] Act are coordinated, to the maximum extent 
        feasible, with related programs and activities 
        conducted under title 38, United States Code, including 
        programs and activities conducted under subchapter II 
        of chapter 77 of such title, chapters 31 and 34 of such 
        title, and sections 1712A, 1720A, 3687, and 4103A of 
        such title.
                    authorization of appropriations


  Sec. 23. There are authorized to be appropriated such sums as 
are necessary to carry out this Act.
                      [Part D--National Activities

          [national partnership and special training programs

  [Sec. 451. (a) Statement of Purpose.--It is the purpose of 
this section to--
          [(1) improve access to employment and training 
        opportunities for individuals with special needs;
          [(2) help alleviate skill shortages and enhance the 
        competitiveness of the labor force;
          [(3) meet special training needs that are best 
        addressed on a multistate or industry-wide basis; and
          [(4) encourage the participation and support of all 
        segments of society to further the purposes of this 
        Act.
  [(b) Program Authorized.--The Secretary may establish a 
system of, and award, special grants to eligible entities to 
carry out programs that are most appropriately administered at 
the national level.
  [(c) Programs.--Programs that are most appropriately 
administered at the national level include--
          [(1) partnership programs with national organizations 
        with special expertise in developing, organizing, and 
        administering employment and training programs at the 
        national, State, and local levels, such as industry and 
        labor associations, public interest groups, community-
        based organizations representative of groups that 
        encounter special difficulties in the labor market, and 
        other organizations with special knowledge or 
        capabilities in education and training;
          [(2) programs that--
                  [(A) address industry-wide skill shortages;
                  [(B) meet training needs that are best 
                addressed on a multistate basis; and
                  [(C) further the goals of increasing the 
                competitiveness of the United States labor 
                force; and
          [(3) programs that require technical expertise 
        available at the national level to serve specialized 
        needs of particular client groups, including at-risk 
        youth, offenders, individuals of limited-English 
        language proficiency, individuals with disabilities, 
        women, immigrants, single parents, substance abusers, 
        displaced homemakers, youth, older individuals, 
        veterans, school dropouts, public assistance 
        recipients, and other individuals who the Secretary 
        determines require special assistance.

                [RESEARCH, DEMONSTRATION, AND EVALUATION

  [Sec. 452. (a) Statement of Purpose.--It is the purpose of 
this section to assist the United States in expanding 
employment opportunities and ensuring access to such 
opportunities for all who desire such opportunities.
  [(b) Program Established.--
          [(1) In general.--The Secretary shall establish a 
        comprehensive program of training and employment 
        research, utilizing the methods, techniques, and 
        knowledge of the behavioral and social sciences and 
        such other methods, techniques, and knowledge as will 
        aid in the solution of the employment and training 
        problems of the United States.
          [(2) Studies.--The program established under this 
        section may include studies concerning--
                  [(A) the development or improvement of 
                Federal, State, local, and privately supported 
                employment and training programs;
                  [(B) labor market processes and outcomes, 
                including improving workplace literacy;
                  [(C) policies and programs to reduce 
                unemployment and the relationships of the 
                policies and programs with price stability and 
                other national goals;
                  [(D) productivity of labor;
                  [(E) improved means of using projections of 
                labor supply and demand, including occupational 
                and skill requirements and areas of labor 
                shortages at the national and subnational 
                levels;
                  [(F) methods of improving the wages and 
                employment opportunities of low-skilled, 
                disadvantaged, and dislocated workers, and 
                workers with obsolete skills;
                  [(G) methods of addressing the needs of at-
                risk populations, such as youth, homeless 
                individuals and other dependent populations, 
                older individuals, and other groups with 
                multiple barriers to employment;
                  [(H) methods of developing information on 
                immigration, international trade and 
                competition, technological change, and labor 
                shortages; and
                  [(I) methods of easing the transition from 
                school to work, from transfer payment receipt 
                to self-sufficiency, from one job to another, 
                and from work to retirement.
  [(c) Pilot and Demonstration Programs.--
          [(1) Program established.--
                  [(A) In general.--The Secretary shall 
                establish a program of pilot and demonstration 
                programs for the purpose of developing and 
                improving techniques and demonstrating the 
                effectiveness of specialized methods in 
                addressing employment and training needs. The 
                Secretary may award grants and enter into 
                contracts with entities to carry out the 
                programs.
                  [(B) Projects.--Such programs may include 
                projects in such areas as--
                          [(i) school-to-work transition;
                          [(ii) new methods of imparting 
                        literacy skills and basic education;
                          [(iii) new training techniques 
                        (including projects undertaken with the 
                        private sector);
                          [(iv) methods to eliminate artificial 
                        barriers to employment;
                          [(v) approaches that foster 
                        participation of groups that encounter 
                        special problems in the labor market 
                        (such as displaced homemakers, teen 
                        parents, welfare recipients, and older 
                        individuals);
                          [(vi) processes that demonstrate 
                        effective methods for alleviating the 
                        adverse effects of dislocations and 
                        plant closings on workers and their 
                        communities; and
                          [(vii) cooperative ventures among 
                        business, industry, labor, trade 
                        associations, community-based 
                        organizations  or  nonprofit  
                        organizations  to  develop  new and 
                        cost-effective approaches to improving 
                        work force literacy.
          [(2) Evaluation component.--Demonstration programs 
        assisted under this subsection shall include a formal, 
        rigorous evaluation component. Pilot programs assisted 
        under this subsection shall include an appropriate 
        evaluation component.
          [(3) Special rule.--No demonstration program under 
        this subsection shall be assisted under this section 
        for a period of more than 7 years. No pilot program 
        under this subsection shall be assisted under this 
        section for a period of more than 3 years.
  [(d) Evaluation.--
          [(1) Programs.--
                  [(A) Job training programs.--The Secretary 
                shall provide for the continuing evaluation of 
                programs conducted under this Act, including 
                the cost effectiveness of the program in 
                achieving the purposes of this Act.
                  [(B) Other programs.--The Secretary may 
                conduct evaluations of other federally funded 
                employment-related activities including 
                programs administered under--
                          [(i) the Wagner-Peyser Act (29 U.S.C. 
                        49 et seq.);
                          [(ii) the National Apprenticeship Act 
                        (29 U.S.C. 50 et seq.);
                          [(iii) the Older Americans Act of 
                        1965 (42 U.S.C. 3001 et seq.);
                          [(iv) chapter 2 of title II of the 
                        Trade Act of 1974 (19 U.S.C. 2271 et 
                        seq.); and
                          [(v) the Federal unemployment 
                        insurance program under titles III, IX, 
                        and XII of the Social Security Act (42 
                        U.S.C. 501 et seq., 1101 et seq., and 
                        1321 et seq.).
          [(2) Techniques.--
                  [(A) Methods.--Evaluations conducted under 
                paragraph (1) shall utilize sound statistical 
                methods and techniques of the behavioral and 
                social sciences, including random assignment 
                methodologies if feasible.
                  [(B) Analysis.--Such evaluations may include 
                cost-benefit analysis of programs, the impact 
                of the programs on community  and  
                participants,  the  extent  to  which  programs 
                meet the needs of various demographic groups, 
                and the effectiveness of the delivery systems 
                used by various programs.
                  [(C) Effectiveness.--The Secretary shall 
                evaluate the effectiveness of programs 
                authorized under this Act with respect to--
                          [(i) the statutory goals;
                          [(ii) the performance standards 
                        established by the Secretary; and
                          [(iii) the extent to which such 
                        programs enhance the employment and 
                        earnings of participants, reduce income 
                        support costs, improve the employment 
                        competencies of participants in 
                        comparison to comparable persons who 
                        did not participate in such programs, 
                        and, to the extent feasible, increase 
                        the level of total employment over the 
                        level that would have existed in the 
                        absence of such programs.

    [CAPACITY BUILDING, INFORMATION, DISSEMINATION, AND REPLICATION 
                               ACTIVITIES

  [Sec. 453. (a) National Strategy.--The Secretary shall 
develop a national strategy for carrying out the activities 
described in subsection (b)(2) and the replication of programs 
described in subsection (c), and shall ensure the 
implementation of the national strategy.
  [(b) Network.--
          [(1) Establishment.--
                  [(A) In general.--The Secretary shall 
                establish a Capacity Building and Information 
                and Dissemination Network (referred to in this 
                section as the ``Network'') to enhance the 
                effectiveness of and to strengthen the caliber 
                of services provided through programs 
                authorized under this Act and other Federal, 
                State, and local employment and training 
                programs.
                  [(B) Administration.--The Secretary shall 
                establish and maintain such Network--
                          [(i) directly;
                          [(ii) under an interagency agreement; 
                        or
                          [(iii) through a grant or contract 
                        awarded on a competitive basis to a 
                        single entity, or to a system of 
                        entities coordinated by the Secretary, 
                        with appropriate expertise.
          [(2) Activities.--The Network shall--
                  [(A) provide, coordinate, and support the 
                development of, appropriate training, technical 
                assistance, staff development, and other 
                activities that will--
                          [(i) enhance the skills, knowledge, 
                        and expertise of the personnel who 
                        staff employment and training and other 
                        closely related human service systems, 
                        including service providers;
                          [(ii) improve the quality of services 
                        provided to individuals served under 
                        this Act and other Federal employment 
                        and training programs and encourage 
                        integrated service delivery under such 
                        programs using--
                                  [(I) where cost effective, 
                                interactive communication 
                                systems and satellite 
                                technology; and
                                  [(II) where possible, staff 
                                trained in a variety of Federal 
                                human resource programs;
                          [(iii) improve the planning, 
                        procurement, and contracting practices 
                        pursuant to this Act; and
                          [(iv) provide broad human services 
                        policy and planning training to--
                                  [(I) private industry council 
                                volunteers; and
                                  [(II) where appropriate, 
                                members of State human resource 
                                investment councils and other 
                                State councils;
                  [(B) prepare and disseminate staff training 
                curricula and materials, primarily using 
                computer-based technologies, for employment and 
                training professionals and support staff, that 
                focus on enhancing staff competencies and 
                professionalism, including instruction on the 
                administrative requirements of this Act, such 
                as procurement and contracting standards and 
                regulations; and
                  [(C)(i) identify, develop, disseminate, and 
                provide training in the techniques learned 
                from, innovative and successful program models, 
                materials, methods, and information, by using 
                computer-based technologies for organizing a 
                data base and dissemination and communication 
                system for the Network, and establishing a 
                computer-based communications and dissemination 
                methodology to share information among 
                employment and training personnel and 
                institutions; and
                  [(ii) in identifying such program models, 
                ensure that consideration shall be given to--
                          [(I) the size and scope of the 
                        program;
                          [(II) the length of time that the 
                        program has been operating;
                          [(III) the nature and reliability of 
                        measurable outcomes for the program;
                          [(IV) the capacity of the sponsoring 
                        organization to provide the technical 
                        assistance necessary for States and 
                        service delivery areas to replicate the 
                        program; and
                          [(V) the likelihood that the program 
                        will be successful in diverse economic, 
                        geographic, and cultural environments.
          [(3) Charges.--The Network may require cost-sharing 
        to offset the actual costs of institute training, 
        materials acquisition, or information dissemination. 
        Any resulting income shall be used in accordance with 
        section 141(m).
          [(4) Coordination.--
                  [(A) In general.--The Secretary shall consult 
                with the Secretaries of Education and Health 
                and Human Services, as appropriate, to 
                coordinate the activities of the Network with 
                other relevant institutes, centers, 
                laboratories, clearinghouses, or dissemination 
                networks, such as the National Diffusion 
                Network.
                  [(B) Coordination with replication grant 
                program.--To the extent possible, the Network 
                shall coordinate the activities of the Network 
                with activities assisted under the replication 
                grant program conducted under subsection (c).
  [(c) Replication.--
          [(1) Replication program authorized.--The Secretary 
        shall make competitive grants to public or private 
        nonprofit organizations for technical assistance, and 
        to States and service delivery areas for planning and 
        program development, to promote the replication of 
        employment and training programs that are successful in 
        improving the employment prospects of populations 
        served under this Act and that are replicable on a 
        large scale. In making such grants, the Secretary shall 
        consider the recommendations described in paragraph 
        (2)(B) of the review panel established under paragraph 
        (2)(A) regarding such programs.
          [(2) Review panel.--
                  [(A) Establishment.--The Secretary shall 
                establish a review panel comprised of not more 
                than 6 individuals appointed by the Secretary 
                who are recognized experts in the operation and 
                evaluation of employment and training programs 
                for economically disadvantaged youth and 
                adults, and dislocated workers.
                  [(B) Recommendations.--The review panel shall 
                make recommendations to the Secretary regarding 
                model programs that the panel considers likely 
                to be successful in improving such employment 
                prospects of populations served under this Act 
                and to be replicable on a large scale.
                  [(C) Considerations.--In recommending such 
                programs the review panel shall use the 
                considerations described in subsection 
                (b)(2)(C)(ii).
                  [(D) Meetings.--The review panel shall meet 
                not more than once each year to carry out the 
                responsibilities described in this paragraph.
                  [(E) Conflict of interest.--No member of such 
                panel shall have a direct financial interest in 
                or affiliation with a potential recipient of 
                funds under the program authorized by this 
                section.
          [(3) Applications.--
                  [(A) Nonprofit organization.--Any public or 
                private nonprofit organization desiring to 
                receive such a grant to provide the technical 
                assistance necessary for program replication 
                may submit an application to the Secretary at 
                such time, in such manner, and containing or 
                accompanied by such information as the 
                Secretary may reasonably require.
                  [(B) State; service delivery area.--Any State 
                or service  delivery  area  desiring  to  
                receive  such  a  grant  for planning and 
                program development associated with a 
                replication effort shall submit an application 
                to the Secretary at such time, in such manner, 
                and containing or accompanied by such 
                information as the Secretary may reasonably 
                require.
                  [(C) Contents.--Each application described in 
                subparagraph (A) or (B) shall contain--
                          [(i) a description of the program 
                        proposed for replication and available 
                        evidence of the success of the program 
                        in improving the employment prospects 
                        of economically disadvantaged youth and 
                        adults, and dislocated workers, within 
                        each such service delivery area; and
                          [(ii) in the case of applications 
                        described in subparagraph (A), an 
                        assurance that the organization will 
                        enter into an agreement with the 
                        service delivery areas in which the 
                        program is to be replicated, to 
                        participate in the replication program.
          [(4) Grant limitations.--
                  [(A) Limitation.--In any 3-year period the 
                Secretary shall not approve grants for the same 
                replication activities in more than 10 States 
                or communities. During such 3-year period, the 
                results of such limited replication efforts 
                shall be carefully evaluated and examined by 
                the Secretary regarding the advisability of 
                replicating the model program in more than 10 
                States or communities or for longer than 3 
                years.
                  [(B) Waiver.--The Secretary may waive the 
                limitation set forth in subparagraph (A) for a 
                program if immediate replication efforts on a 
                larger scale are warranted by extensive 
                evaluation of the program prior to designation 
                as a model program under this subsection.
          [(5) Coordination.--To the extent possible, the 
        Secretary shall coordinate the activities assisted 
        under the replication grant program conducted under 
        this subsection with the activities of the Network 
        under subsection (b). The Secretary shall ensure that 
        information on the programs replicated under this 
        subsection shall be available through the Network.
  [(d) Management Capability.--
          [(1) Grants.--From the amounts reserved under section 
        3(c)(2)(B)(ii)(III) for each fiscal year to carry out 
        this subsection, the Secretary may award grants to 
        States for the purpose of assisting the States in 
        carrying out the activities described in section 
        202(c)(1)(A).
          [(2) Eligibility.--A State that receives an amount 
        under section 202(c)(1)(A) for a fiscal year that is 
        less than $500,000 shall be eligible to receive a grant 
        under this subsection for the fiscal year.
          [(3) Amount of grant.--The amount of a grant awarded 
        to a State for a fiscal year under paragraph (1) shall 
        not exceed the lesser of--
                  [(A) $100,000; or
                  [(B) the difference obtained by subtracting 
                from $500,000 the amount received by the State 
                for the fiscal year under section 202(c)(1)(A).
          [(4) Award of grants.--In determining whether to 
        award a grant to a State under paragraph (1), and in 
        determining the amount of such a grant, the Secretary 
        shall take into account the demonstrated need of the 
        State to receive such a grant, as indicated by--
                  [(A) the number of service delivery areas in 
                the State; and
                  [(B) the demonstrated insufficiency of 
                resources of the State to administer State 
                responsibilities under sections 121 and 122.
          [(5) Application.--To be eligible to receive a grant 
        under this  subsection  for  a  fiscal  year,  a  State 
         shall  submit an application at such time, in such 
        manner, and containing such information as the 
        Secretary may require, including sufficient information 
        to enable the Secretary to make the determinations 
        described in paragraph (4).
          [(6) Use of funds.--The Secretary shall make 
        available to carry out subsections (b) and (c) any 
        amounts reserved under section 3(c)(2)(B)(ii)(III) for 
        a fiscal year and not expended to make grants under 
        paragraph (1) for such year.

                 [guidance on eligibility verification

  [Sec. 454. (a) Establishment.--The Secretary shall provide 
guidance and technical assistance, to States and service 
delivery areas, relating to the documentation required to 
verify the eligibility of participants under parts A, B, and C 
of title II of this Act, particularly the hard-to-serve 
individuals specified in section 203(b) and subsections (b) and 
(d) of section 263. Such documentation shall, to the extent 
practicable, be uniform and standard.
  [(b) Guidance.--The guidance provided pursuant to subsection 
(a), while maintaining program integrity, shall--
          [(1) limit the documentation burden to the minimum 
        necessary to adequately verify such eligibility; and
          [(2) ensure, to the extent practicable, that the 
        documentation requirements shall not discourage the 
        participation of eligible individuals.
  [(c) Contents.--The guidance provided pursuant to subsection 
(a) shall specifically address income eligibility, assessment, 
the determination regarding whether an individual is a hard-to-
serve individual, and specific uniform or standardized 
documentation forms or procedures (including simplified 
standardized forms, automated intake procedures, and self-
certification documents) and other documentation proxies (such 
as JOBS and Job Corps eligibility forms).
  [(d) Date.--The Secretary shall provide the guidance 
described in subsection (a) not later than December 18, 1992.

                    [UNIFORM REPORTING REQUIREMENTS

  [Sec. 455. (a) Finding.--Congress finds that closer 
coordination and more effective use of resources among a 
variety of employment and training programs can be facilitated 
if the programs have common data elements and definitions.
  [(b) Data Elements.--The Secretaries of Labor, Education, and 
Health and Human Services, in consultation with other 
appropriate departments and with the National Occupational 
Information Coordinating Committee, shall identify a core set 
of consistently defined data elements for employment and 
training programs, including those funded under titles II, III, 
and IV of this Act, the Wagner-Peyser Act (29 U.S.C. 49 et 
seq.), the Carl D. Perkins Vocational and Applied Technology 
Education Act (20 U.S.C. 2301 et seq.), the JOBS program, and 
title V of the Older Americans Act of 1965 (42 U.S.C. 3056 et 
seq.).
  [(c) Report.--The Secretary shall prepare and submit to 
Congress not later than January 1, 1994, a report listing 
recommended data elements and their definitions, and containing 
an analysis of the benefits of the adoption of the data 
elements and definitions.
  [(d) Consultation.--The Secretary shall consult with experts 
and practitioners, at the Federal, State, and local levels and 
in the various program areas, in fulfilling the requirements of 
this section. The Secretary shall also consult with the General 
Accounting Office in fulfilling the requirements of this 
section.

            [nontraditional employment demonstration program

  [Sec. 456. (a)(1) From funds available under this part for 
each of the fiscal years 1992, 1993, 1994, and 1995, the 
Secretary shall use $1,500,000 in each such fiscal year to make 
grants to States to develop demonstration and exemplary 
programs to train and place women in nontraditional employment.
  [(2) The Secretary may award no more than 6 grants in each 
fiscal year.
  [(b) In awarding grants pursuant to subsection (a), the 
Secretary shall consider--
          [(1) the level of coordination between the Job 
        Training Partnership Act and other resources available 
        for training women in nontraditional employment;
          [(2) the extent of private sector involvement in the 
        development and implementation of training programs 
        under the Job Training Partnership Act;
          [(3) the extent to which the initiatives proposed by 
        a State supplement or build upon existing efforts in a 
        State to train and place women in nontraditional 
        employment;
          [(4) whether the proposed grant amount is sufficient 
        to accomplish measurable goals;
          [(5) the extent to which a State is prepared to 
        disseminate information on its demonstration training 
        programs; and
          [(6) the extent to which a State is prepared to 
        produce materials that allow for replication of such 
        State's demonstration training programs.
  [(c)(1) Each State receiving financial assistance pursuant to 
this section may use such funds to--
          [(A) award grants to service providers in the State 
        to train and otherwise prepare women for nontraditional 
        employment;
          [(B) award grants to service delivery areas that plan 
        and demonstrate the ability to train, place, and retain 
        women in nontraditional employment; and
          [(C) award grants to service delivery areas on the 
        basis of exceptional performance in training, placing, 
        and retaining women in nontraditional employment.
  [(2) Each State receiving financial assistance pursuant to 
subsection (c)(1)(A) may only award grants to--
          [(A) community based organizations,
          [(B) educational institutions, or
          [(C) other service providers,
that have demonstrated success in occupational skills training.
  [(3) Each State receiving financial assistance under this 
section shall ensure, to the extent possible, that grants are 
awarded for training, placing, and retaining women in growth 
occupations with increased wage potential.
  [(4) Each State receiving financial assistance pursuant to 
subsection (c)(1)(B) or (c)(1)(C) may only award grants to 
service delivery areas that have demonstrated ability or 
exceptional performance in training, placing, and retaining 
women in nontraditional employment that is not attributable or 
related to the activities of any service provider awarded funds 
under subsection (c)(1)(A).
  [(d) In any fiscal year in which a State receives a grant 
pursuant to this section such State may retain an amount not to 
exceed 10 percent of such grant to--
          [(1) pay administrative costs,
          [(2) facilitate the coordination of statewide 
        approaches to training and placing women in 
        nontraditional employment, or
          [(3) provide technical assistance to service 
        providers.
  [(e) The Secretary shall provide for evaluation of the 
demonstration programs carried out pursuant to this section, 
including evaluation of the demonstration programs' 
effectiveness in--
          [(1) preparing women for nontraditional employment, 
        and
          [(2) developing and replicating approaches to train 
        and place women in nontraditional employment.
                   [Part E--Labor Market Information

            [labor market information; availability of funds

  [Sec. 461. (a) The Secretary shall set aside, out of sums 
available to the Department for any fiscal year including sums 
available for this title, such sums as may be necessary to 
maintain a comprehensive system of labor market information on 
a national, regional, State, local, or other appropriate basis, 
which shall be made publicly available in a timely fashion.
  [(b) Funds available for purposes of this part shall also be 
available for purposes of section 125 (relating to State labor 
market information).
  [(c) Notwithstanding any other provision of law, funds 
available to other Federal agencies for carrying out chapter 35 
of title 44, United States Code, the Carl D. Perkins Vocational 
Education Act, and the Act of June 6, 1933 (popularly known as 
the Wagner-Peyser Act), may be made available by the head of 
each such agency to assist in carrying out the provisions of 
this part.

             [cooperative labor market information program

  [Sec. 462. (a) The Secretary shall develop and maintain for 
the Nation, State, and local areas, current employment data by 
occupation and industry, based on the occupational employment 
statistics program, including selected sample surveys, and 
projections by the Bureau of Labor Statistics of employment and 
openings by occupation.
  [(b) The Secretary shall maintain descriptions of job duties, 
training and education requirements, working conditions, and 
characteristics of occupations.
  [(c) In carrying out the provisions of this section, the 
Secretary shall assure that--
          [(1) departmental data collecting and processing 
        systems are consolidated to eliminate overlap and 
        duplication;
          [(2) the criteria of chapter 35 of title 44, United 
        States Code, are met; and
          [(3) standards of statistical reliability and 
        national standardized definitions of employment, 
        unemployment, and industrial and occupational 
        definitions are used.
  [(d)(1) The Secretary is authorized to develop data for an 
annual statistical measure of labor market related economic 
hardship in the Nation. Among the factors to be considered in 
developing such a measure are unemployment, labor force 
participation, involuntary part-time employment, and full-time 
employment at wages less than the poverty level.
  [(2) The Secretary is authorized to develop and maintain, on 
national, State, local, and other appropriate bases, household 
budget data at different levels of living, including a level of 
adequacy, to reflect the differences of household living costs 
in regions and localities, both urban and rural.
  [(3) The Secretary shall publish, at least annually, a report 
relating labor force status to earnings and income.
  [(e) The Secretary shall develop and maintain statistical 
data relating to permanent lay-offs and plant closings. The 
Secretary shall publish a report based upon such data, as soon 
as practicable, after the end of each calendar year. Among the 
data to be included are--
          [(1) the number of such closings;
          [(2) the number of workers displaced;
          [(3) the location of the affected facilities; and
          [(4) the types of industries involved.
  [(f)(1) The Secretary shall develop, in coordination with the 
Secretary of Agriculture, statistical data relating to 
permanent dislocation of farmers and ranchers due to farm and 
ranch failures. Among the data to be included are--
          [(A) the number of such farm and ranch failures;
          [(B) the number of farmers and ranchers displaced;
          [(C) the location of the affected farms and ranches;
          [(D) the types of farms and ranches involved; and
          [(E) the identification of farm family members, 
        including spouses, and farm workers working the 
        equivalent of a full-time job on the farm who are 
        dislocated by such farm and ranch failures.
  [(2) The Secretary shall publish a report based upon such 
data as soon as practicable after the end of each calendar 
year. Such report shall include a comparison of data contained 
therein with data currently used by the Bureau of Labor 
Statistics in determining the Nation's annual employment and 
unemployment rates and an analysis of whether farmers and 
ranchers are being adequately counted in such employment 
statistics. Such report shall also include an analysis of 
alternative methods for reducing the adverse effects of 
displacements of farmers and ranchers, not only on the 
individual farmer or rancher, but on the surrounding community.
  [(g)(1) Taking into consideration research previously 
conducted by the National Commission for Employment Policy and 
other entities, the Commissioner of Labor Statistics, in 
cooperation with the States, shall determine appropriate 
procedures for establishing a nationwide database containing 
information on the quarterly earnings, establishment and 
industry affiliation, and geographic location of employment, 
for all individuals for whom such information is collected by 
the States.
  [(2) The Commissioner of Labor Statistics shall determine 
appropriate procedures for maintaining such information in a 
longitudinal manner and for making such information available 
for policy research or program evaluation purposes or both, 
while ensuring the confidentiality of information and the 
privacy of individuals.
  [(3) The Secretary shall prepare and submit to the Congress, 
not later than 12 months after the date of enactment of the Job 
Training Reform Amendments of 1992, a report that shall 
describe the costs and benefits, including savings on program 
followup surveys, of a nationwide database containing the 
information described in paragraph (1) and a schedule that 
would allow for the establishment of such a database.

                   [special federal responsibilities

  [Sec. 463. (a) The Secretary, in cooperation with the 
Secretary of Commerce, the Secretary of Defense, the Secretary 
of the Treasury, the Secretary of Education, the Secretary of 
Health and Human Services, and the Director of the Office of 
Management and Budget, through the National Occupational 
Information Coordinating Committee established under section 
422 of the Carl D. Perkins Vocational Education Act, shall--
          [(1) review the need for and the application of all 
        operating national data collection and processing 
        systems related to labor market information in order to 
        identify gaps, overlap, and duplications, and integrate 
        at the national level currently available data sources 
        in order to improve the management of information 
        systems;
          [(2) maintain, assure timely review, and implement 
        national standardized definitions with respect to 
        terms, geographic areas, timing of collection, and 
        coding measures related to labor market information, to 
        the maximum extent feasible; and
          [(3) provide technical assistance to the States in 
        the development, maintenance, and utilization of labor 
        market/occupational supply and demand information 
        systems and projections of supply and demand as 
        described in section 125, with special emphasis on 
        assistance in the utilization of cost-efficient 
        automated systems and improving access of individuals 
        to career opportunities information in local and State 
        labor markets.
  [(b) The Secretary, in cooperation with the Secretary of 
Defense, shall assure the development of an integrated 
occupational supply and demand information system to be used by 
States and, in particular, in secondary and postsecondary 
educational institutions in order to assure young persons 
adequate information on career opportunities in the Armed 
Forces.
  [(c) The Secretary and the Director of the Office of 
Management and Budget shall assure that, from the funds 
reserved for this part, sufficient funds are available to 
provide staff at the Federal level to assure the coordination 
functions described in this section.

       [national occupational information coordinating committee

  [Sec. 464. (a)(1) Of the amounts available for this part for 
each fiscal year, $6,000,000 is authorized to be reserved for 
the National Occupational Information Coordinating Committee 
(established pursuant to section 422 of the Carl D. Perkins 
Vocational Education Act).
  [(2) In addition to the members required by such Act, the 
Committee shall include the Assistant Secretary of Commerce for 
Economic Development and the Assistant Secretary of Defense 
Force Management and Personnel.
  [(3) Not less than 75 percent of the funds transferred by the 
Secretary to the National Occupational Information Coordinating 
Committee shall be used to support State occupational 
information coordinating committees and other organizational 
units designated under section 125 for carrying out State labor 
market information programs.
  [(b) In addition to its responsibilities under the Carl D. 
Perkins Vocational Education Act, the National Occupational 
Information Coordinating Committee shall--
          [(1) carry out the provisions of section 463;
          [(2) give special attention to the career development 
        and labor market information needs of youth and adults, 
        including activities such as (A) assisting and 
        encouraging States to adopt methods of translating 
        national occupational outlook information into State 
        and local terms; (B) assisting and encouraging the 
        development of State occupational information systems, 
        including career information delivery systems and the 
        provision of technical assistance for programs of on-
        line computer systems and other facilities to provide 
        career information at sites such as local schools, 
        public employment service offices, and job training 
        programs authorized under this Act; (C) in cooperation 
        with educational agencies and institutions, encouraging 
        programs providing career information, counseling, and 
        employment services for postsecondary youth; and (D) in 
        cooperation with State and local correctional agencies, 
        encouraging programs of counseling and employment 
        services for youth and adults in correctional 
        institutions;
          [(3) provide training and technical assistance, and 
        continuing support to State occupational information 
        coordinating committees, in the development, 
        maintenance, and use of occupational supply and demand 
        information systems, with special emphasis on the use 
        of cost efficient automated systems for delivering 
        occupational information to planners and administrators 
        of education and training programs and on improving the 
        access of such planners and administrators to 
        occupational information systems;
          [(4) publish at least annually a report on the status 
        of occupational information capabilities at the State 
        and national levels, which may include recommendations 
        for improvement of occupational information production 
        and dissemination capabilities;
          [(5) conduct research and demonstration projects 
        designed to improve any aspect of occupational and 
        career information systems and coordination and 
        compatibility of human resources data systems operated 
        by Federal agencies or the States, including systems to 
        assist economic development activities and, where 
        appropriate, provide support to States in the 
        implementation of such system improvements;
          [(6) provide technical assistance for programs 
        designed to encourage public and private employers to 
        list all available job opportunities with occupational 
        information and career counseling programs conducted by 
        administrative entities and with local public 
        employment service offices and to encourage cooperation 
        and contact among such employers and such 
        administrative entities and public employment service 
        offices; and
          [(7) provide assistance to units of general local 
        government and private industry councils to familiarize 
        them with labor market information resources available 
        to meet their needs.
  [(c) All funds available to the National Occupational 
Information Coordinating Committee under this Act, under 
section 422 of the Carl D. Perkins Vocational Education Act, 
and under section 12 of the Career Education Act may be used by 
the Committee to carry out any of its functions and 
responsibilities authorized by law.

                           [job bank program

  [Sec. 465. The Secretary is authorized to establish and carry 
out a nationwide computerized job bank and matching program 
(including the listing of all suitable employment openings with 
local offices of the State employment service agencies by 
Federal contractors and subcontractors and providing for the 
affirmative action as required by section 2012(a) of title 38, 
United States Code, on a regional, State, and local basis, 
using electronic data processing and telecommunications systems 
to the maximum extent possible for the purpose of identifying 
sources of available individuals and job vacancies, providing 
an expeditious means of matching the qualifications of 
unemployed, underemployed, and economically disadvantaged 
individuals with employer requirements and job opportunities, 
and referring and placing such individuals in jobs. An 
occupational information file may be developed, containing 
occupational projections of the numbers and types of jobs on 
regional, State, local, and other appropriate bases, as well as 
labor supply information by occupation.

           [Part F--National Commission for Employment Policy

                         [statement of purpose

  [Sec. 471. The purpose of this part is to establish a 
National Commission for Employment Policy which shall have the 
responsibility for examining broad issues of development, 
coordination, and administration of employment and training 
programs, and for advising the President and the Congress on 
national employment and training issues. For the purpose of 
providing funds for the Commission, the Secretary shall reserve 
$2,000,000 of the sums appropriated for this title for each 
fiscal year.

                        [commission established

  [Sec. 472. (a) There is established a National Commission for 
Employment Policy (hereinafter in this part referred to as the 
``Commission''). The Commission shall be composed of 15 
members, appointed by the President. The members of the 
Commission shall be individuals who are nationally prominent 
and the Commission shall be broadly representative of 
agriculture, business, labor, commerce, education (including 
elementary, secondary, postsecondary, and vocational and 
technical education), veterans, current State and local elected 
officials, community-based organizations, assistance programs, 
and members of the general public with expertise in human 
resource development or employment and training policy. The 
membership of the Commission shall be generally representative 
of significant segments of the labor force, including women and 
minority groups.
  [(b) The term of office of each member of the Commission 
appointed by the President under subsection (a) shall be three 
years, except that--
          [(1) any such member appointed to fill a vacancy 
        shall serve for the remainder of the term for which his 
        predecessor was appointed, and
          [(2) of such members first taking office--
                  [(A) five shall serve for terms of one year;
                  [(B) five shall serve for terms of two years; 
                and
                  [(C) five shall serve for terms of three 
                years;
        as designated by the President at the time of 
        appointment.
  [(c)(1) The Chairman shall be selected by the President.
  [(2) The Commission shall meet not fewer than three times 
each year at the call of the Chairman.
  [(3) A majority of the members of the Commission shall 
constitute a quorum, but a lesser number may conduct hearings. 
Any recommendation may be passed only by a majority of the 
members present. Any vacancy in the Commission shall not affect 
its powers but shall be filled in the same manner in which the 
original appointment was made.
  [(d) The Chairman (with the concurrence of the Commission) 
shall appoint a Director, who shall be chief executive officer 
of the Commission and shall perform such duties as are 
prescribed by the Chairman.

                      [functions of the commission

  [Sec. 473. The Commission shall--
          [(1) identify the employment goals and needs of the 
        Nation, and assess the extent to which employment and 
        training, vocational education, institutional training, 
        vocational rehabilitation, economic opportunity 
        programs, public assistance policies, employment-
        related tax policies, labor exchange policies, and 
        other policies and programs under this Act and related 
        Acts represent a consistent, integrated, and 
        coordinated approach to meeting such needs and 
        achieving such goals;
          [(2) develop and make appropriate recommendations 
        designed to meet the needs and goals described in 
        clause (1);
          [(3) examine and evaluate the effectiveness of 
        federally assisted employment and training programs 
        (including programs assisted under this Act), with 
        particular reference to the contributions of such 
        programs to the achievement of objectives sought by the 
        recommendations made under clause (2);
          [(4) advise the Secretary on the development of 
        national performance standards and the parameters of 
        variations of such standards for programs conducted 
        pursuant to this Act;
          [(5) evaluate the impact of tax policies on 
        employment and training opportunities;
          [(6) examine and evaluate major Federal programs 
        which are intended to, or potentially could, contribute 
        to achieving major objectives of existing employment 
        and training and related legislation or the objectives 
        set forth in the recommendations of the Commission, and 
        particular attention shall be given to the programs 
        which are designed, or could be designed, to develop 
        information and knowledge about employment and training 
        problems through research and demonstration projects or 
        to train personnel in fields (such as occupational 
        counseling, guidance, and placement) which are vital to 
        the success of employment and training programs;
          [(7) identify the employment and training and 
        vocational education needs of the Nation and assess the 
        extent to which employment and training, vocational 
        education, rehabilitation, and other programs assisted 
        under this and related Acts represent a consistent, 
        integrated, and coordinated approach to meeting such 
        needs.
          [(8) study and make recommendations on how, through 
        policies and actions in the public and private sectors, 
        the Nation can attain and maintain full employment, 
        with special emphasis on the employment difficulties 
        faced by the segments of the labor force that 
        experience differentially high rates of unemployment;
          [(9) identify and assess the goals and needs of the 
        Nation with respect to economic growth and work 
        improvements, including conditions of employment, 
        organizational effectiveness and efficiency, 
        alternative working arrangements, and technological 
        changes;
          [(10) evaluate the effectiveness of training provided 
        with Federal funds in meeting emerging skill needs; and
          [(11) study and make recommendations on the use of 
        advanced technology in the management and delivery of 
        services and activities conducted under this Act.

                       [administrative provisions

  [Sec. 474. (a) Subject to such rules and regulations as may 
be adopted by the Commission, the Chairman is authorized to--
          [(1) prescribe such rules and regulations as may be 
        necessary;
          [(2) appoint and fix the compensation of such staff 
        personnel as the Chairman deems necessary, and without 
        regard to the provisions of title 5, United States 
        Code, governing appointments in the competitive 
        service, and without regard to the provisions of 
        chapter 51 and subchapter III of chapter 53 of such 
        title, relating to classification and the General 
        Schedule pay rates, appoint not to exceed five 
        additional professional personnel;
          [(3) procure the services of experts and consultants 
        in accordance with section 3109 of title 5, United 
        States Code;
          [(4) accept voluntary and uncompensated services of 
        professional personnel, consultants, and experts, 
        notwithstanding any other provision of law;
          [(5) accept in the name of the United States and 
        employ or dispose of gifts or bequests to carry out the 
        functions of the Commission under this title;
          [(6) enter into contracts and make such other 
        arrangements and modifications, as may be necessary;
          [(7) conduct such studies, hearings, research 
        activities, demonstration projects, and other similar 
        activities as the Commission deems necessary to enable 
        the Commission to carry out its functions under this 
        title;
          [(8) use the services, personnel, facilities, and 
        information of any department, agency, and 
        instrumentality of the executive branch of the Federal 
        Government and the services, personnel, facilities, and 
        information of State and local public agencies and 
        private research agencies, with the consent of such 
        agencies, with or without reimbursement therefor; and
          [(9) make advances, progress, and other payments 
        necessary under this Act without regard to the 
        provisions of section 3648 of the Revised Statutes (31 
        U.S.C. 529).
  [(b) Upon request made by the Chairman of the Commission, 
each department, agency, and instrumentality of the executive 
branch of the Federal Government is authorized and directed to 
make its services, personnel, facilities, and information 
(including computer-time, estimates, and statistics) available 
to the greatest practicable extent to the Commission in the 
performance of its functions under this Act.

                                [reports

  [Sec. 475. The Commission shall make at least annually a 
report of its findings and recommendations to the President and 
to the Congress. The Commission may make such interim reports 
or recommendations to the Congress, the President, the 
Secretary, or to the heads of other Federal departments and 
agencies, and in such form, as it may deem desirable. The 
Commission shall include in any report made under this section 
any minority or dissenting views submitted by any member of the 
Commission.
      [Part G--Training to Fulfill Affirmative Action Obligations

                          [affirmative action

  [Sec. 481. (a) A contractor subject to the affirmative action 
obligations of Executive Order 11246, as amended, issued 
September 24, 1965, may establish or participate in training 
programs pursuant to this section for individuals meeting the 
eligibility criteria established in sections 203(a)(1), 401, 
and 402, which are designed to assist such contractors in 
meeting the affirmative action obligations of such Executive 
order. To qualify under this section, such a training program 
shall contain--
          [(1) a description of the jobs in the contractor's 
        work force or in the service delivery area, for which 
        the contractor has determined there is a need for 
        training;
          [(2) a description of the recruiting, training, or 
        other functions that the contractor, or the 
        organization that will be engaged to perform the 
        training, will perform and the steps that will be taken 
        to insure that eligible individuals will--
                  [(A) be selected for participation in 
                training,
                  [(B) be trained in necessary skills, and
                  [(C) be referred for job openings,
        in accordance with the objectives of such Executive 
        order;
          [(3) whenever an organization other than the 
        contractor will perform the training, a description of 
        the demonstrated effectiveness of the organization as a 
        provider of employment and training services;
          [(4) a description of how the contractor will monitor 
        the program to keep an accurate accounting of all 
        trainees, including (A) whether the trainees 
        successfully complete the training program, and (B) 
        whether the trainees are or are not placed; and
          [(5) an estimation of the cost of the program and an 
        assurance that the contractor will assume all costs of 
        the program or the pro rata share of costs to the 
        contractor of the program.
  [(b)(1)(A) If the training proposal is designed to meet the 
needs of the community rather than, or in addition to, the 
employment needs of the contractor, and has not been approved 
by another Federal agency, the program shall be submitted to 
the private industry council established under section 102 for 
a determination that there is a need for such training in the 
community.
  [(B) Individuals trained under any program satisfying the 
requirements of this section may be included by the private 
industry council in its performance accomplishments and the 
wage gains of such individuals shall be included in determining 
the compliance of the job training program of the private 
industry council with applicable standards.
  [(2) The Director of the Office of Federal Contract 
Compliance Programs, Department of Labor, shall promulgate 
regulations setting forth how the Office will determine, during 
a compliance review, the degree to which a training program 
will satisfy the contractor's affirmative action obligations. 
The training and placement of trainees with employers other 
than the contractor may be considered in evaluating such 
contractor's overall good faith efforts, but in no event may 
placement of trainees with employers other than the contractor 
be permitted to affect that contractor's affirmative action 
obligations respecting its work force. The content of the 
training program will not be subject to review or regulation by 
the Office of Federal Contract Compliance Programs. If during a 
compliance review the Director of the Office of Federal 
Contract Compliance Programs determines that a training program 
does not comply with its regulations, the Director shall--
          [(A) notify the contractor of the disapproval,
          [(B) set forth the reasons for the disapproval, and
          [(C) provide a list of recommendations which, if 
        accepted, will qualify the training program under this 
        section.
  [(3) A contractor who has a training program which contains 
the criteria set forth in subsection (a) and which is in 
accordance with regulations promulgated under paragraph (2) of 
this subsection shall continue to meet the affirmative action 
obligations of Executive Order 11246, as amended, but the 
contractors required to maintain a written affirmative action 
program need only maintain an abbreviated affirmative action 
program, the content and length of which shall be determined by 
the Director of the Office of Federal Contract Compliance 
Programs, to satisfy the written affirmative action program 
portion of their obligations under Executive Order 11246, as 
amended. Successful performance or operation of a training 
program meeting the criteria set forth in subsection (a) shall 
create a presumption that the contractor has made a good faith 
effort to meet its affirmative action obligations to the degree 
specified by the Director under paragraph (2) of this 
subsection, but that presumption shall not be applicable to the 
satisfaction of other affirmative action obligations not 
directly related to the training and hiring requirements of 
this section, or other affirmative action obligations not 
affected by this section. For the purpose of the preceding 
sentence, ``successful performance or operation'' means 
training and placing in jobs a number of individuals which 
bears a reasonable relationship to the number of job openings 
in the contractors's facilities or in the relevant labor market 
area.
  [(c) Nothing in this section may be interpreted--
          [(1) to compel contractor involvement in such 
        programs,
          [(2) to establish the exclusive criteria by which a 
        contractor can be found to have fulfilled its 
        affirmative action obligations,
          [(3) to provide authority for imposing any additional 
        obligations on contractors not participating in such 
        training activities,
          [(4) to permit the Office of Federal Contract 
        Compliance Programs to intervene or interfere with the 
        authority and responsibilities of the private industry 
        councils,
          [(5) to restrict or limit the authority of the 
        Secretary to investigate the employment practices of 
        any Government contractor, to initiate such 
        investigation by the Director, to determine whether any 
        nondiscrimination contractual provisions have been 
        violated, or to enforce Executive Order 11246, or
          [(6) to prohibit the Secretary or the Director, or 
        other authorized officers of the United States, from 
        requesting or compelling any contractor preparing and 
        maintaining a short form affirmative action plan under 
        subsection (b) to provide information necessary to 
        conduct a compliance review or to provide data 
        necessary to determine whether any violation of 
        Executive Order 11246 has occurred.

                   [Part H--Youth Fair Chance Program

[SEC. 491. STATEMENT OF PURPOSE.

  [It is the purpose of the Youth Fair Chance program under 
this part to--
          [(1) ensure access to education and job training 
        assistance for youth residing in high poverty areas of 
        urban and rural communities;
          [(2) provide a comprehensive range of education, 
        training, and employment services to disadvantaged 
        youth who are not currently served or are underserved 
        by Federal education and job training programs;
          [(3) enable communities with high concentrations of 
        poverty to establish and meet goals for improving the 
        opportunities available to youth within the community; 
        and
          [(4) facilitate the coordination of comprehensive 
        services to serve youth in such communities.

[SEC. 492. PROGRAM AUTHORIZED.

  [(a) Establishment of Program.--The Secretary is authorized 
to establish a national program of Youth Fair Chance grants to 
pay the Federal share attributable to this part of providing 
comprehensive services to youth living in high poverty areas in 
the cities and rural areas of the Nation.
  [(b) Eligibility for Grants.--
          [(1) Recipients.--The Secretary may only award grants 
        under this part to--
                  [(A) the service delivery area (on behalf of 
                the participating community) in which a target 
                area is located;
                  [(B) in the case of a grant involving a 
                target area located in an Indian reservation or 
                Alaska Native village, the grantee designated 
                under subsection (c) or (d) of section 401, or 
                a consortium of such grantees and the State; or
                  [(C) in the case of a grant involving a 
                target area located in a migrant or seasonal 
                farmworker community, the grantee designated 
                under section 402(c), or a consortium of such 
                grantees and the State.
          [(2) Number of grants.--
                  [(A) In general.--The Secretary may award not 
                more than 25 grants during the first fiscal 
                year that the program is authorized.
                  [(B) Indian reservations and alaska native 
                villages.--In awarding grants under this part 
                during the first 5 fiscal years that the 
                program is assisted, the Secretary shall 
                award--
                          [(i) at least 1 grant to a grantee or 
                        consortium described in paragraph 
                        (1)(B); and
                          [(ii) at least 1 grant to a grantee 
                        or consortium described in paragraph 
                        (1)(C).
  [(c) Renewability of Grants.--
          [(1) In general.--Grants awarded under this part 
        shall be for a 1-year period. Such a grant shall be 
        renewable for each of the 2 succeeding fiscal years if 
        the Secretary determines the grant recipient complied 
        with conditions of the grant during the previous fiscal 
        year.
          [(2) Extension.--The Secretary may extend the renewal 
        period set forth in paragraph (1) for an additional 2 
        fiscal years on reapplication.
  [(d) Factors for Awards.--In awarding grants under this part, 
the Secretary shall consider the quality of the proposed 
project, the goals to be achieved, the likelihood of successful 
implementation, the extent of community support, other Federal 
and non-Federal funds available for similar purposes, and 
additional State, local, or private resources that will be 
provided. The Secretary shall give priority to participating 
communities with the highest poverty rates.

[SEC. 493. APPLICATION.

  [(a) Eligibility To Apply.--Participating communities that 
have the highest concentrations of poverty, as determined by 
the Secretary based on the latest Bureau of the Census 
estimates, shall be eligible to apply for a Youth Fair Chance 
grant.
  [(b) Contents of Application.--
          [(1) In general.--Each participating community 
        desiring a grant under this part shall, through the 
        individuals set forth in subsection (c), submit an 
        application to the Secretary at such time, in such 
        manner, and accompanied by such information as the 
        Secretary may reasonably require.
          [(2) Contents.--Each such application shall--
                  [(A) include a comprehensive plan for the 
                Youth Fair Chance initiative designed to 
                achieve identifiable goals for youth in the 
                target area;
                  [(B) set forth measurable program goals and 
                outcomes, which may include increasing the 
                proportion of--
                          [(i) youth completing high school or 
                        its equivalent;
                          [(ii) youth entering into 
                        postsecondary institutions, 
                        apprenticeships, or other advanced 
                        training programs;
                          [(iii) youth placed in jobs; or
                          [(iv) youth participating in 
                        education, training, and employment 
                        services;
                  [(C) include supporting goals for the target 
                area such as increasing security and safety, or 
                reducing the number of drug-related arrests;
                  [(D) provide assurances that the applicant 
                will comply with the terms of the agreement 
                described in section 494;
                  [(E) demonstrate how the participating 
                community will make use of the resources, 
                expertise, and commitment of institutions of 
                higher education, educational agencies, and 
                vocational and technical schools and 
                institutes;
                  [(F) provide an assurance that all youth in 
                the target areas will have access to a 
                coordinated and comprehensive range of 
                education and training opportunities that serve 
                the broadest range of youth interests and needs 
                and simultaneously mobilizes the diverse range 
                of education and training providers in the 
                participating community;
                  [(G) provide assurances that the youth in the 
                target area will have access to supportive 
                services necessary for successful 
                participation, including such services as child 
                care, transportation, and assistance in 
                resolving personal or family crises, such as 
                crises related to substance abuse, 
                homelessness, migration, and family violence;
                  [(H) include a description of a system of 
                common intake procedures or sites, 
                individualized assessment, and case management 
                to be used by the program;
                  [(I) demonstrate how the participating 
                community will make use of the resources, 
                expertise, and commitment of such programs and 
                service providers as--
                          [(i) community-based organizations 
                        providing vocational skills, literacy 
                        skills, remedial education, and general 
                        equivalency preparation, including 
                        community-based organizations serving 
                        youth with limited-English proficiency;
                          [(ii) youth corps programs, including 
                        youth conservation and human service 
                        corps;
                          [(iii) Job Corps centers;
                          [(iv) apprenticeship programs; and
                          [(v) other projects and programs 
                        funded under this Act;
                  [(J) include an estimate of the expected 
                number of youth in the target area to be 
                served;
                  [(K) include a description of the resources 
                available in the participating community from 
                private, local government, State, and Federal 
                sources that will be used to achieve the goals 
                of the program;
                  [(L) include an estimate of funds required to 
                ensure access to appropriate education, 
                training, and support services for all youth in 
                the target area who seek such opportunities; 
                and
                  [(M) provide evidence of support for 
                accomplishing the stated goals of the 
                participating community from--
                          [(i) local elected officials;
                          [(ii) the local school system;
                          [(iii) appropriate postsecondary 
                        education and training institutions;
                          [(iv) the applicable private industry 
                        council;
                          [(v) local community leaders;
                          [(vi) business;
                          [(vii) labor organizations; and
                          [(viii) other appropriate 
                        organizations.
  [(c) Submission of Application.--The application for funds 
described in subsection (b) may only be submitted to the 
Secretary on behalf of a participating community by--
          [(1) the mayor of a city or the chief elected 
        official in a metropolitan statistical area, after the 
        Governor of the State has had an opportunity to comment 
        on the application;
          [(2) the chief elected official of a nonmetropolitan 
        county or the designated chief elected official of 
        contiguous nonmetropolitan counties, after the Governor 
        of the State has had an opportunity to comment on the 
        application; or
          [(3) a grantee or consortium described in 
        subparagraph (B) or (C) of section 492(b)(1) in 
        applications for Native American or migrant or seasonal 
        farmworker communities, respectively.
[SEC. 494. GRANT AGREEMENT.

  [(a) In General.--Each grant recipient receiving a grant 
under this part on behalf of a participating community shall 
enter into an agreement with the Secretary.
  [(b) Contents.--Each such agreement shall--
          [(1) designate a target area that--
                  [(A) will be the focus of the demonstration 
                project; and
                  [(B) shall have a population of--
                          [(i) not more than 25,000; or
                          [(ii) in an appropriate case, not 
                        more than 50,000,
                except that in the event that the population of 
                an area from which a high school draws a 
                substantial portion of its enrollment exceeds 
                either limit, the target area may encompass 
                such boundary;
          [(2) contain assurances that funds provided under 
        this part will be used to support education, training, 
        and supportive activities selected from a set of youth 
        program models designated by the Secretary or from 
        alternative models described in the application and 
        approved by the Secretary, such as--
                  [(A) nonresidential learning centers;
                  [(B) alternative schools;
                  [(C) combined activities including summer 
                remediation, work experience and work readiness 
                training, and school-to-work, apprenticeship, 
                or postsecondary education programs;
                  [(D) teen parent programs;
                  [(E) special programs administered by 
                community colleges;
                  [(F) youth centers;
                  [(G) initiatives aimed at increased rural 
                student enrollment in postsecondary 
                institutions;
                  [(H) public-private collaborations to assure 
                private sector employment and continued 
                learning opportunities for youth; and
                  [(I) initiatives, such as youth corps 
                programs, that combine community and youth 
                service opportunities with education and 
                training activities;
          [(3) provide that funds received under this part will 
        be used for services to youth ages 14 through 30 at the 
        time of enrollment;
          [(4) contain assurances that the local educational 
        agency and any other educational agency that operates 
        secondary schools in the target area shall provide such 
        activities and resources as are necessary to achieve 
        the educational goals specified in the application;
          [(5) contain assurances that the participating 
        community will provide such activities and local 
        resources as are necessary to achieve the goals 
        specified in the application;
          [(6) contain assurances that the participating 
        community will undertake outreach and recruitment 
        efforts in the target area to encourage, to the maximum 
        extent possible, participation by the disadvantaged 
        youth who are currently unserved, or underserved, by 
        education and training programs, including targeted 
        measures specifically designed to enlist the 
        participation of youth, particularly males, under the 
        jurisdiction of the child welfare, juvenile justice, 
        and criminal justice systems;
          [(7) provide that the participating community will 
        carry out special efforts to establish coordination 
        with Federal, State, or local programs that serve the 
        target population;
          [(8) provide assurances that funds provided under 
        this part for a fiscal year will be used only to pay 
        the Federal share attributable to this part of the cost 
        of programs and services not otherwise available in the 
        target area and will supplement, and not supplant, 
        funding from other local, State, and Federal sources 
        available to youth in the target area during the 
        previous year; and
          [(9) permit funds provided under this part to be used 
        to support paid work experience programs if such 
        programs are combined with other education and training 
        activities.

[SEC. 495. JOB GUARANTEES.

  [(a) Program Authority.--The Secretary shall permit a 
reasonable number of the grant recipients under this part to 
enter into an agreement to provide, in accordance with this 
section, a job guarantee program to youths meeting prior school 
attendance and performance standards.
  [(b) Guarantee Agreements.--A grant recipient providing such 
a job guarantee program shall enter into an agreement with the 
Secretary, which agreement shall--
          [(1) provide that the program be available to youth 
        age 16 to 19 who undertake a commitment to continue and 
        complete their high school education;
          [(2) require the grant recipient to guarantee 
        employment to each youth undertaking the commitment if 
        such youth meets school attendance and performance 
        standards for the previous school semester, as 
        established by the Secretary in consultation with the 
        Secretary of Education;
          [(3) provide that the grant recipient will make 
        additional services available to support the 
        undertaking of any such youth, which shall include 
        counseling, job development and placement, and 
        supportive services (including child care and 
        transportation);
          [(4) specify the conditions under which funds 
        provided under this part may be used to provide wage 
        subsidies of up to 50 percent through employers, which 
        conditions shall--
                  [(A) encourage subsidies to employers who 
                provide advanced or specialized training, or 
                who provide a structured and integrated 
                learning experience involving the school and 
                employer; and
                  [(B) limit the duration of such subsidies to 
                not more than 1 year;
          [(5) require that the employment provided to any such 
        youth shall not exceed 15 hours per week during the 
        school year;
          [(6) permit employment to continue through the summer 
        following high school graduation, or until the youth 
        reaches age 19, whichever is later; and
          [(7) contain such other terms and conditions as the 
        Secretary requires by regulation.
  [(c) Selection of Grant Recipients.--In determining which 
grant recipients to permit to enter an agreement under this 
section, the Secretary shall seek to target funds to areas with 
the highest poverty rates.
  [(d) Youth Eligibility.--All youth, regardless of income, 
residing in an eligible high poverty area shall be eligible to 
participate in the job guarantee program.
  [(e) Private Funds.--Nothing in this section shall be 
construed to prohibit the grant recipient from raising funds to 
augment such grant if such funds are utilized under the 
conditions of the grant, except that such funds shall not be 
used for administration.

[SEC. 496. PAYMENTS; FEDERAL SHARE.

  [(a) Payments Required.--In any fiscal year, the amount of a 
grant awarded under this part shall be based on the size of the 
target area and the extent of the poverty in such area, and 
shall be of sufficient size and scope to carry out an effective 
program under this part.
  [(b) Federal Share.--The Federal share attributable to this 
part of the cost of providing comprehensive services as 
provided in section 492(a) shall be not less than 70 percent 
for each fiscal year a grant recipient receives assistance 
under this Act.
  [(c) Other Federal Sources.--In providing for the remaining 
share of such cost, each grant recipient may provide not more 
than 20 percent of such cost from Federal sources other than 
funds received pursuant to this part.
  [(d) Non-Federal Share.--A grant recipient shall provide non-
Federal funds in an amount not less than 10 percent of such 
cost, an in-kind contribution equivalent to such percent (as 
determined by the Secretary), or a combination thereof.

[SEC. 497. REPORTING.

  [The Secretary is authorized to establish such reporting 
procedures as are necessary to carry out the purposes of this 
part.

[SEC. 498. FEDERAL RESPONSIBILITIES.

  [(a) In General.--The Secretary shall provide assistance to 
participating communities in implementing the projects assisted 
under this part.
  [(b) Independent Evaluation.--
          [(1) In general.--The Secretary shall provide for a 
        thorough, independent evaluation of the Youth Fair 
        Chance program to assess the outcomes of youth 
        participating in programs assisted under this part.
          [(2) Evaluation measures.--In conducting the 
        evaluation described in paragraph (1) the Secretary 
        shall include an assessment of--
                  [(A) the impact on youth residing in target 
                areas, including the rates of school 
                completion, enrollment in advanced education or 
                training, and employment of the youth;
                  [(B) the extent to which participating 
                communities fulfilled the goal of guaranteed 
                access to appropriate education, training, and 
                supportive services to all eligible youth 
                residing in target areas who seek to 
                participate;
                  [(C) the effectiveness of guaranteed access 
                to comprehensive services combined with 
                outreach and recruitment efforts in enlisting 
                the participation of previously unserved or 
                underserved youth residing in target areas;
                  [(D) the effectiveness of efforts to 
                integrate service delivery in target areas, 
                including systems of common intake, assessment, 
                and case management; and
                  [(E) the feasibility of extending guaranteed 
                access to comprehensive education, training and 
                support services for youth in all areas of the 
                United States, including possible approaches to 
                incremental extension of such access over time.
  [(c) Report.--The Secretary shall prepare a report detailing 
the results of the independent evaluation described in 
subsection (b) and shall submit such report to the Congress not 
later than December 31, 1996, along with an analysis of 
expenditures made, results achieved, and problems in the 
operations and coordination of programs assisted under this 
part.
  [(d) Reservation of Funds.--The Secretary may reserve not 
more than 5 percent of the amount appropriated under this part 
in each fiscal year to carry out the provisions of this 
section.
[SEC. 498A. DEFINITIONS.

  [For the purposes of this part--
          [(1) Participating community.--The term 
        ``participating community''--
                  [(A) in the case of a community conducting a 
                project in an urban area, means a city in a 
                metropolitan statistical area;
                  [(B) in the case of a community conducting a 
                project in a rural area, means a 
                nonmetropolitan county or contiguous 
                nonmetropolitan counties;
                  [(C) in the case of a community conducting a 
                project in an Indian reservation or Alaska 
                Native village, the grantee designated under 
                subsection (c) or (d) of section 401, or a 
                consortium of such grantees and the State; or
                  [(D) in the case of a community conducting a 
                project in a migrant or seasonal farmworker 
                community, the grantee designated under section 
                402(c), or a consortium of such grantees and 
                the State.
          [(2) High poverty area.--The term ``high poverty 
        area'' means an urban census tract, a nonmetropolitan 
        county, a Native American Indian reservation, or an 
        Alaska Native village, with a poverty rate of 30 
        percent or more, as determined by the Bureau of the 
        Census, or a migrant or seasonal farmworker community.
          [(3) Target area.--The term ``target area'' means a 
        high poverty area or set of contiguous high poverty 
        areas that will be the focus of the program in each 
        participating community.

                [Part I--Microenterprise Grants Program

[SEC. 499. MICROENTERPRISE GRANTS.

  [(a) Program Authority.--From the amount appropriated to 
carry out this section for fiscal years 1993 through 1997, the 
Secretary of Labor shall make grants of not more than $500,000 
per year to not more than 10 States per year to implement and 
enhance community-based microenterprise activities. Such grants 
shall be an amount adequate to ensure that the activities will 
be of sufficient size and scope to produce substantial 
benefits. Such activities shall be for the benefit of 
economically disadvantaged persons.
  [(b) Use of Funds.--Such funds shall be used, notwithstanding 
section 141(q)--
          [(1) to train program staff in such entrepreneurial 
        activities as business plan development, business 
        management, resource inventory design, and marketing 
        approaches, and other activities necessary to provide 
        effective entry level training to persons developing a 
        microenterprise;
          [(2) to provide to owners or potential owners of a 
        microenterprise such technical assistance (including 
        technical assistance with respect to business planning, 
        securing funding, marketing, and production of 
        marketing materials) and other assistance as may be 
        necessary to develop microenterprise activities; and
          [(3) to provide microenterprise support (such as peer 
        support programs and counseling).
  [(c) Application and Selection.--The Secretary shall award 
grants competitively under this section on the basis of--
          [(1) the State commitment, as evidenced by existing 
        or proposed related programs and support;
          [(2) evidence of ability to conduct and monitor the 
        microenterprise activities;
          [(3) evidence of linkage to private, community-based 
        credit and technical assistance providers; and
          [(4) size of the non-Federal match.
  [(d) Timing.--Not later than April 1 of any fiscal year, a 
State may submit to the Secretary an application. Not later 
than the following June 1, the Secretary shall approve not more 
than 10 of the applications. Not later than the following July 
1, the Secretary shall authorize the applicant to begin the 
programs. The Secretary may consider making multiyear grants.
  [(e) Matching Requirement.--
          [(1) In general.--No State shall receive a grant 
        under this section unless the State agrees to provide, 
        to carry out the microenterprise programs, non-Federal 
        contributions in an amount equal to 100 percent of 
        Federal funds provided under such grant.
          [(2) Determination.--The non-Federal contribution may 
        be in cash or in-kind, fairly evaluated, including 
        plant, equipment, or services.
  [(f) Reports.--Each State receiving a grant under this 
section shall, for each fiscal year for which funds are 
received, submit to the Secretary a report that describes--
          [(1) the programs that have been established and 
        developed with such funds, including a description of 
        the persons participating and the microenterprises 
        developed;
          [(2) the quantitative and qualitative benefits of 
        such programs; and
          [(3) the contributions of such programs to economic 
        self-sufficiency and economic development.
  [(g) Definitions.--As used in this section:
          [(1) Microenterprise.--The term ``microenterprise'' 
        means a commercial enterprise if--
                  [(A) the enterprise has 5 or fewer employees, 
                1 or more of whom owns the enterprise; and
                  [(B) each of the owners of the enterprise is 
                economically disadvantaged.
          [(2) State.--The term ``State'' includes--
                  [(A) in the case of a community conducting a 
                project in an Indian reservation or Alaska 
                Native village, the grantee designated under 
                subsection (c) or (d) of section 401, or a 
                consortium of such grantees and the State; and
                  [(B) in the case of a community conducting a 
                project in a migrant or seasonal farmworker 
                community, the grantee designated under section 
                402(c), or a consortium of such grantees and 
                the State.
             [Part J--Disaster Relief Employment Assistance

[SEC. 499A. GENERAL AUTHORITY.

  [(a) Qualification for Funds.--Funds appropriated to carry 
out this part shall be made available in a timely manner by the 
Secretary to the Governor of any State within which is located 
an area that has suffered an emergency or a major disaster as 
defined in paragraphs (1) and (2), respectively, of section 102 
of the Disaster Relief Act of 1974 (42 U.S.C. 5122 (1) and (2)) 
(referred to in this part as the ``disaster area'').
  [(b) Substate Allocation.--Not less than 80 percent of the 
funds made available to any Governor under subsection (a) shall 
be allocated by the Governor to units of general local 
government located, in whole or in part, within such disaster 
areas. The remainder of such funds may be reserved by the 
Governor for use, in concert with State agencies, in cleanup, 
rescue, repair, renovation, and rebuilding activities 
associated with such major disaster.
  [(c) Coordination.--Funds made available under this part to 
Governors and units of general local government shall be 
expended in consultation with--
          [(1) agencies administering programs for disaster 
        relief provided under the Disaster Relief Act of 1974; 
        and
          [(2) the administrative entity and the private 
        industry council in each service delivery area within 
        which disaster employment programs will be conducted 
        under this part.

[SEC. 499B. USE OF FUNDS.

  [(a) Projects Restricted to Disaster Areas.--Funds made 
available under this part to any unit of general local 
government in a disaster area--
          [(1) shall be used exclusively to provide employment 
        on projects to provide food, clothing, shelter, and 
        other humanitarian assistance for disaster victims and 
        on projects regarding demolition, cleanup, repair, 
        renovation, and reconstruction of damaged and destroyed 
        structures, facilities, and lands located within the 
        disaster area; and
          [(2) may be expended through public and private 
        agencies and organizations engaged in such projects.
  [(b) Eligible Participants.--An individual shall be eligible 
to be offered disaster employment under this part if such 
individual is--
          [(1)(A) eligible to participate or enroll, or is a 
        participant or enrolled, under title III of this Act, 
        other than an individual who is actively engaged in a 
        training program; or
          [(B) eligible to participate in programs or 
        activities assisted under section 401 or 402; and
          [(2) unemployed as a consequence of the disaster.
  [(c) Limitations on Disaster Relief Employment.--No 
individual shall be employed under this part for more than 6 
months for work related to recovery from a single natural 
disaster.
  [(d) Regulations.--The Secretary shall prescribe such 
regulations as may be necessary to promote the fiscal integrity 
of programs conducted with funds made available under this 
part.

[SEC. 499C. DEFINITIONS.

  [As used in this part, the term ``unit of general local 
government'' includes--
          [(1) in the case of a community conducting a project 
        in an Indian reservation or Alaska Native village, the 
        grantee designated under subsection (c) or (d) of 
        section 401, or a consortium of such grantees and the 
        State; and
          [(2) in the case of a community conducting a project 
        in a migrant or seasonal farmworker community, the 
        grantee designated under section 402(c), or a 
        consortium of such grantees and the State.

  [TITLE V--JOBS FOR EMPLOYABLE DEPENDENT INDIVIDUALS INCENTIVE BONUS 
                                PROGRAM

[SEC. 501. STATEMENT OF PURPOSE.

  [It is the purpose of this title to provide incentives to 
reduce welfare dependency, promote self-sufficiency, increase 
child support payments, and increase employment and earnings of 
individuals by providing to each participating State a bonus 
for providing job training to--
          [(1) absent parents of children receiving aid to 
        families with dependent children under part A of title 
        IV of the Social Security Act (42 U.S.C. 601 et seq.), 
        who subsequent to such training pay child support for 
        their children; and
          [(2) blind or disabled individuals receiving 
        supplemental security income under title XVI of the 
        Social Security Act (42 U.S.C. 1381 et seq.), who 
        subsequent to such training are successfully placed in 
        and retain employment.

[SEC. 502. PAYMENTS.

  [(a) In General.--For each program year for which funds are 
appropriated to carry out this title, the Secretary shall pay 
to each participating State the amount that State is eligible 
to receive under this title.
  [(b) Ratable Reductions.--If the amount so appropriated is 
not sufficient to pay each State the amount each State is 
eligible to receive, the Secretary shall ratably reduce the 
amount paid to each State.
  [(c) Ratable Increases.--If any additional amount is made 
available for carrying out this title for any program year 
after the application of subsection (b), such additional amount 
shall be allocated among the States by increasing such payments 
in the same manner as they were reduced, except that no such 
State shall be paid an amount that exceeds the amount that the 
State is eligible to receive under this title.
  [(d) Reprogramming.--If the amount appropriated for a program 
year is in excess of the amount necessary to pay each State the 
amount each State is eligible to receive, the Secretary shall 
allot the excess amount to the States for allocation to the 
service delivery areas in accordance with section 202 to carry 
out part A of title II.
[SEC. 503. AMOUNT OF INCENTIVE BONUS.

  [The amount of the incentive bonus paid to each State shall 
be the sum of--
          [(1) an amount equal to the total of the amounts of 
        child support paid by each individual eligible under 
        section 506(1) within the State, for up to 2 years 
        after the termination of the individual from activities 
        provided under this Act; and
          [(2) an amount equal to the total reduction in the 
        Federal contribution to the amounts received under 
        title XVI of the Social Security Act (42 U.S.C. 1381 et 
        seq.) by each individual eligible under section 506(2) 
        within the State, for up to 2 years after the 
        termination of the individual from activities provided 
        under this Act.

[SEC. 504. USE OF INCENTIVE BONUS FUNDS.

  [(a) In General.--
          [(1) Allocation.--
                  [(A) Administrative costs.--During any 
                program year, the Governor may use an amount 
                not to exceed 5 percent of the total bonus 
                payments of a State for administrative costs 
                incurred under this title, including data and 
                information collection and compilation, 
                recordkeeping, or the preparation of 
                applications for incentive bonuses.
                  [(B) Distribution of payments.--The amount of 
                incentive bonus payments that remains after the 
                deduction of administrative costs under 
                subparagraph (A) shall be distributed to 
                service delivery areas and Job Corps centers 
                within the State in accordance with an 
                agreement between the Governor and 
                representatives of such areas and centers. Such 
                agreement shall reflect an equitable method of 
                distribution that is based on the degree to 
                which the efforts of such area or center 
                contributed to the qualification of the State 
                for an incentive bonus payment under this 
                title.
          [(2) Special rule.--Not more than 10 percent of the 
        amounts received under this title in any program year 
        by each service delivery area and Job Corps center may 
        be used for the administrative costs of establishing 
        and maintaining systems necessary for operation of 
        programs under this title, including the costs of 
        providing incentive payments described in subsection 
        (b), technical assistance, data and information 
        collection and compilation, management information 
        systems, post-program followup activities, and research 
        and evaluation activities. The balance of funds not so 
        expended shall be used by each service delivery area 
        for activities described in sections 204 and 264, and 
        by each Job Corps center for activities authorized 
        under part B of title IV.
  [(b) Incentive Payments to Service Providers.--Each service 
delivery area or Job Corps center may make incentive payments 
to service providers, including participating State and local 
agencies, and community-based organizations, that demonstrate 
effectiveness in delivering employment and training services to 
individuals such as those described in section 506.
  [(c) Application of Section Relating to Administrative 
Adjudications.--Section 166 (relating to administrative 
adjudication) shall apply to the distribution of incentive 
bonus payments under this section.

[SEC. 505. NOTICE AND APPLICATION.

  [(a) Notice of Intent To Participate.--Any State seeking to 
participate in the incentive bonus program established under 
this title shall notify the Secretary of the intent of the 
State to participate not later than 30 days before the 
beginning of the first program year of participation.
  [(b) Application.--
          [(1) In general.--Any State seeking to receive an 
        incentive bonus under this title shall submit an 
        application to the Secretary at such time, in such 
        manner, and containing or accompanied by such 
        information as the Secretary may reasonably require in 
        order to ensure compliance with this title.
          [(2) Contents.--Each such application shall contain, 
        at a minimum--
                  [(A) a list of the eligible individuals in 
                the State who satisfied the requirements of 
                section 506 during the program year;
                  [(B) the amount of the incentive bonus 
                attributable to each eligible individual and 
                due the State under section 503; and
                  [(C) certification that documentation is 
                available to verify the eligibility of 
                participants and the amount of the incentive 
                bonus claimed by the State.
  [(c) Notice of Approval or Denial.--The Secretary shall 
promptly inform a State after receipt of the application as to 
whether or not the application of the State has been approved.

[SEC. 506. ELIGIBILITY FOR INCENTIVE BONUSES.

  [An individual shall be eligible to participate in a program 
established under this title if--
          [(1) the individual--
                  [(A) was an absent parent of any child 
                receiving aid to families with dependent 
                children under part A of title IV of the Social 
                Security Act at the time such individual was 
                determined to be eligible to participate in 
                activities provided under this Act;
                  [(B) has participated in education, training 
                or other activities (including the Job Corps) 
                provided under this Act; and
                  [(C) pays child support for a child specified 
                in subparagraph (A) following termination from 
                activities provided under this Act; or
          [(2) the individual--
                  [(A) is blind or disabled;
                  [(B) was receiving benefits under title XVI 
                of the Social Security Act (relating to 
                supplemental security income) at the time such 
                individual was determined to be eligible to 
                participate in activities under this Act;
                  [(C) has participated in education, training, 
                or other activities (including the Job Corps) 
                provided under this Act; and
                  [(D) earns from employment a wage or income.
[SEC. 507. INFORMATION AND DATA COLLECTION.

  [(a) Technical Assistance.--In order to facilitate the 
collection, exchange, and compilation of data and information 
required by this title, the Secretary is authorized to provide 
technical assistance to the States. Such assistance may include 
cost-effective methods for using State and Federal records to 
which the Secretary has lawful access.
  [(b) Joint Regulations.--
          [(1) In general.--The Secretary and the Secretary of 
        Health and Human Services shall jointly issue 
        regulations regarding the sharing, among public 
        agencies participating in the programs assisted under 
        this title, of the data and information necessary to 
        fulfill the requirements of this title.
          [(2) Subjects.--Such regulations shall ensure--
                  [(A) the availability of information 
                necessary to verify the eligibility of 
                participants and the amount of the incentive 
                bonus payable; and
                  [(B) the maintenance of confidentiality of 
                the information so shared in accordance with 
                Federal and State privacy laws.

[SEC. 508. EVALUATION AND REPORT.

  [(a) Evaluation.--
          [(1) In general.--The Secretary shall conduct or 
        provide for an evaluation of the incentive bonus 
        program assisted under this title.
          [(2) Considerations.--The Secretary shall consider--
                  [(A) whether the program results in increased 
                service under this Act to absent parents of 
                children receiving aid to families with 
                dependent children under part A of title IV of 
                the Social Security Act and to recipients of 
                supplemental security income under title XVI of 
                the Social Security Act;
                  [(B) whether the program results in increased 
                child support payments;
                  [(C) whether the program is administratively 
                feasible and cost effective;
                  [(D) whether the services provided to other 
                eligible participants under part A of title II 
                are affected by the implementation and 
                operation of the incentive bonus program; and
                  [(E) such other factors as the Secretary 
                determines to be appropriate.
  [(b) Report to Congress.--Not later than January 1, 1997, the 
Secretary shall submit a report to the appropriate committees 
of the Congress on the effectiveness of the incentive bonus 
program assisted under this title. Such report shall include an 
analysis of the costs of such program and the results of 
program activities.

[SEC. 509. IMPLEMENTING REGULATIONS.

  [The Secretary shall promulgate regulations implementing this 
title not later than January 31, 1993.

                  [TITLE VI--MISCELLANEOUS PROVISIONS
                  [amendments to the wagner-peyser act

    [Sec. 601. (a) The Act of June 6, 1933, known as the 
Wagner-Peyser Act (29 U.S.C. 49 et seq.), is amended by 
striking out all that precedes section 4 of such Act and 
inserting in lieu thereof the following:
    [``Section 1. In order to promote the establishment and 
maintenance of a national system of public employment offices, 
the United States Employment Service shall be established and 
maintained within the Department of Labor.
    [``Sec. 2. For purposes of this Act--
          [``(1) the term `chief elected official or officials' 
        has the same meaning given that term under the Job 
        Training Partnership Act;
          [``(2) the term `private industry council' has the 
        same meaning given that term under the Job Training 
        Partnership Act;
          [``(3) the term `Secretary' means the Secretary of 
        Labor;
          [``(4) the term `service delivery area' has the same 
        meaning given that term under the Job Training 
        Partnership Act; and
          [``(5) the term `State' means any of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, and the Virgin Islands.
    [``Sec. 3. (a) The United States Employment Service shall 
assist in coordinating the State public employment services 
throughout the country and in increasing their usefulness by 
developing and prescribing minimum standards of efficiency, 
assisting them in meeting problems peculiar to their 
localities, promoting uniformity in their administrative and 
statistical procedure, furnishing and publishing information as 
to opportunities for employment and other information of value 
in the operation of the system, and maintaining a system for 
clearing labor between the States.
    [``(b) It shall be the duty of the Secretary of Labor to 
assure that unemployment insurance and employment service 
offices in each State, as appropriate, upon request of a public 
agency administering or supervising the administration of a 
State plan approved under part A of title IV of the Social 
Security Act or of a public agency charged with any duty or 
responsibility under any program or activity authorized or 
required under part D of title IV of such Act, shall (and, 
notwithstanding any other provision of law, is authorized to) 
furnish to such agency making the request, from any data 
contained in the files of any such office, information with 
respect to any individual specified in the request as to (1) 
whether such individual is receiving, has received, or has made 
application for, unemployment compensation, and the amount of 
any such compensation being received by such individual, (2) 
the current (or most recent) home address of such individual, 
and (3) whether such individual has refused an offer of 
employment and, if so, a description of the employment so 
offered and the terms, conditions, and rate of pay therefor.''.
    [(b) Section 5 of such Act is amended by striking out 
subsection (b) and inserting in lieu thereof the following new 
subsections:
    [``(b) The Secretary shall from time to time certify to the 
Secretary of the Treasury for payment to each State which--
          [``(1) except in the case of Guam, has an 
        unemployment compensation law approved by the Secretary 
        under the Federal Unemployment Tax Act and is found to 
        be in compliance with section 303 of the Social 
        Security Act, as amended,
          [``(2) is found to have coordinated the public 
        employment services with the provision of unemployment 
        insurance claimant services, and
          [``(3) is found to be in compliance with this Act,
such amounts as the Secretary determines to be necessary for 
allotment in accordance with section 6.
    [``(c)(1) Beginning with fiscal year 1985 and thereafter 
appropriations for any fiscal year for programs and activities 
assisted or conducted under this Act shall be available for 
obligation only on the basis of a program year. The program 
year shall begin on July 1 in the fiscal year for which the 
appropriation is made.
    [``(2) Funds obligated for any program year may be expended 
by the State during that program year and the two succeeding 
program years and no amount shall be deobligated on account of 
a rate of expenditure which is consistent with the program 
plan.
    [``(3)(A) Appropriations for fiscal year 1984 shall be 
available both to fund activities for the period between 
October 1, 1983, and July 1, 1984, and for the program year 
beginning July 1, 1984.
    [``(B) There are authorized to be appropriated such 
additional sums as may be necessary to carry out the provisions 
of this paragraph for the transition to program year 
funding.''.
    [(c) Such Act is amended by adding at the end of section 5 
the following new sections:
    [``Sec. 6. (a) From the amounts appropriated pursuant to 
section 5 for each fiscal year, the Secretary shall first allot 
to Guam and the Virgin Islands an amount which, in relation to 
the total amount available for the fiscal year, is equal to the 
allotment percentage which each received of amounts available 
under this Act in fiscal year 1983.
    [``(b)(1) Subject to paragraphs (2), (3), and (4) of this 
subsection, the Secretary shall allot the remainder of the sums 
appropriated and certified pursuant to section 5 of this Act 
for each fiscal year among the States as follows:
          [``(A) two-thirds of such sums shall be allotted on 
        the basis of the relative number of individuals in each 
        civilian labor force in each State as compared to the 
        total number of such individuals in all States; and
          [``(B) one-third of such sums shall be allotted on 
        the basis of the relative number of unemployed 
        individuals in each State as compared to the total 
        number of such individuals in all States.
For purposes of this paragraph, the number of individuals in 
the civilian labor force and the number of unemployed 
individuals shall be based on data for the most recent calendar 
year available, as determined by the Secretary of Labor.
    [``(2) No State's allotment under this section for any 
fiscal year shall be less than 90 percent of its allotment 
percentage for the fiscal year preceding the fiscal year for 
which the determination is made. For the purpose of this 
section, the Secretary shall determine the allotment percentage 
for each State (including Guam and the Virgin Islands) for 
fiscal year 1984 which is the percentage that the State 
received under this Act for fiscal year 1983 of the total 
amounts available for payments to all States for such fiscal 
year. For each succeeding fiscal year, the allotment percentage 
for each such State shall be the percentage that the State 
received under this Act for the preceding fiscal year of the 
total amounts available for allotments for all States for such 
fiscal year.
    [``(3) For each fiscal year, no State shall receive a total 
allotment under paragraphs (1) and (2) which is less than 0.28 
percent of the total amount available for allotments for all 
States.
    [``(4) The Secretary shall reserve such amount, not to 
exceed 3 percent of the sums available for allotments under 
this section for each fiscal year, as shall be necessary to 
assure that each State will have a total allotment under this 
section sufficient to provide staff and other resources 
necessary to carry out employment service activities and 
related administrative and support functions on a statewide 
basis.
    [``(5) The Secretary shall, not later than March 15, of 
fiscal year 1983 and each succeeding fiscal year, provide 
preliminary planning estimates and shall, not later than May 15 
of each such fiscal year, provide final planning estimates, 
showing each State's projected allocation for the following 
year.
    [``Sec. 7. (a) Ninety percent of the sums allotted to each 
State pursuant to section 6 may be used--
          [``(1) for job search and placement services to job 
        seekers including counseling, testing, occupational and 
        labor market information, assessment, and referral to 
        employers;
          [``(2) for appropriate recruitment services and 
        special technical services for employers; and
          [``(3) for any of the following activities:
                  [``(A) evaluation of programs;
                  [``(B) developing linkages between services 
                funded under this Act and related Federal or 
                State legislation, including the provision of 
                labor exchange services at education sites;
                  [``(C) providing services for workers who 
                have received notice of permanent layoff or 
                impending layoff, or workers in occupations 
                which are experiencing limited demand due to 
                technological change, impact of imports, or 
                plant closures;
                  [``(D) developing and providing labor market 
                and occupational information;
                  [``(E) developing a management information 
                system and compiling and analyzing reports 
                therefrom; and
                  [``(F) administering the work test for the 
                State unemployment compensation system and 
                providing job finding and placement services 
                for unemployment insurance claimants.
    [``(b) Ten percent of the sums allotted to each State 
pursuant to section 6 shall be reserved for use in accordance 
with this subsection by the Governor of each such State to 
provide--
          [``(1) performance incentives for public employment 
        service offices and programs, consistent with 
        performance standards established by the Secretary, 
        taking into account direct or indirect placements 
        (including those resulting from self-directed job 
        search or group job each activities assisted by such 
        offices or programs), wages on entered employment, 
        retention, and other appropriate factors;
          [``(2) services for groups with special needs, 
        carried out pursuant to joint agreements between the 
        employment service and the appropriate private industry 
        council and chief elected official or officials or 
        other public agencies or private nonprofit 
        organizations; and
          [``(3) the extra costs of exemplary models for 
        delivering services of the types described in 
        subsection (a).
    [``(c) In addition to the services and activities otherwise 
authorized by this Act, the United States Employment Service or 
any State agency designated under this Act may perform such 
other services and activities as shall be specified in 
contracts for payment or reimbursement of the costs thereof 
made with the Secretary of Labor or with any Federal, State, or 
local public agency, or administrative entity under the Job 
Training Partnership Act, or private nonprofit organization.''.
    [``(d) Section 8 of such Act is amended--
          [``(1) by striking out ``Director'' each place it 
        appears and inserting in lieu thereof ``Secretary of 
        Labor'';
          [``(2) by designating the first sentence thereof as 
        subsection (a);
          [``(3) by designating the second and third sentences 
        thereof as subsection (d);
          [``(4) by designating the fourth sentence thereof as 
        subsection (e); and
          [``(5) by inserting after subsection (a) as amended 
        by clause (1) of this subsection the following 
        subsections:
    [``(b) Prior to submission of such plans to the Secretary--
          [``(1) the employment service shall develop jointly 
        with each appropriate private industry council and 
        chief elected official or officials for the service 
        delivery area (designated under the Job Training 
        Partnership Act) those components of such plans 
        applicable to such area;
          [``(2) such plans shall be developed taking into 
        consideration proposals developed jointly by the 
        appropriate private industry council and chief elected 
        official or officials in the service delivery area 
        affected;
          [``(3) such plans shall be transmitted to the State 
        job training coordinating council (established under 
        such Act) which shall certify such plans have been 
        jointly agreed to by the employment service and 
        appropriate private industry council and chief elected 
        official or officials; and (b) that such plans are 
        consistent with the Governor's coordination and special 
        services plan under the Job Training Partnership Act;
          [``(4) if the State job training coordinating council 
        does not certify that such plans meet the requirements 
        of clauses (A) and (B) of paragraph (3), such plans 
        shall be returned to the employment service for a 
        period of thirty days for it to consider, jointly with 
        the appropriate private industry council and chief 
        elected official or officials, the council's 
        recommendations for modifying such plans; and
          [``(5) if the employment service and the appropriate 
        private industry council and chief elected official or 
        officials fail to reach agreement upon such components 
        of such plans to be submitted finally to the Secretary, 
        such plans submitted by the State agency shall be 
        accompanied by such proposed modifications as may be 
        recommended by any appropriate disagreeing private 
        industry council and chief elected official or 
        officials affected, and the State job training 
        coordinating council shall transmit to the Secretary 
        its recommendations for resolution thereof.
    [``(c) The Governor of the State shall be afforded the 
opportunity to review and transmit to the Secretary proposed 
modifications of such plans submitted.'';
    [(e) Section 9 of such Act is amended to read as follows:
    [``Sec. 9. (a)(1) Each State shall establish such fiscal 
control and fund accounting procedures as may be necessary to 
assure the proper disbursal of, and accounting for, Federal 
funds paid to the recipient under this Act. The Director of the 
Office of Management and Budget, in consultation with the 
Comptroller General of the United States, shall establish 
guidance for the proper performance of audits. Such guidance 
shall include a review of fiscal controls and fund accounting 
procedures established by States under this section.
    [``(2) At least once every two years, the State shall 
prepare or have prepared an independent financial and 
compliance audit of funds received under this Act.
    [``(3) Each audit shall be conducted in accordance with 
applicable auditing standards set forth in the financial and 
compliance element of the Standards for Audit of Governmental 
Organizations, Programs, Activities, and Functions issued by 
the Comptroller General of the United States.
    [``(b)(1) The Comptroller General of the United States 
shall evaluate the expenditures by States of funds received 
under this Act in order to assure that expenditures are 
consistent with the provisions of this Act and to determine the 
effectiveness of the State in accomplishing the purposes of 
this Act. The Comptroller General shall conduct evaluations 
whenever determined necessary and shall periodically report to 
the Congress on the findings of such evaluations.
    [``(2) Nothing in this Act shall be deemed to relieve the 
Inspector General of the Department of Labor of his 
responsibilities under the Inspector General Act.
    [``(3) For the purpose of evaluating and reviewing programs 
established or provided for by this Act, the Comptroller 
General shall have access to and the right to copy any books, 
accounts, records, correspondence, or other documents pertinent 
to such programs that are in the possession, custody, or 
control of the State.
    [``(c) Each State shall repay to the Untied States amounts 
found not to have been expended in accordance with this Act. No 
such finding shall be made except after notice and opportunity 
for a fair hearing. The Secretary may offset such amounts 
against any other amount to which the recipient is or may be 
entitled under this Act.''.
    [(f) Section 10 of such Act is amended to read as follows:
    [``Sec. 10. (a) Each State shall keep records that are 
sufficient to permit the preparation of reports required by 
this Act and to permit the tracing of funds to a level of 
expenditure adequate to insure that the funds have not been 
spent unlawfully.
    [``(b)(1) The Secretary may investigate such facts, 
conditions, practices, or other matters which the Secretary 
finds necessary to determine whether any State receiving funds 
under this Act or any official of such State has violated any 
provision of this Act.
    [``(2)(A) In order to evaluate compliance with the 
provisions of this Act, the Secretary shall conduct 
investigations of the use of funds received by States under 
this Act.
    [``(B) In order to insure compliance with the provisions of 
this Act, the Comptroller General of the United States may 
conduct investigations of the use of funds received under this 
Act by any State.
    [``(3) In conducting any investigation under this Act, the 
Secretary or the Comptroller General of the United States may 
not request new compilation of information not readily 
available to such State.
    [``(c) Each State receiving funds under this Act shall--
          [``(1) make such reports concerning its operations 
        and expenditures in such form and containing such 
        information as shall be prescribed by the Secretary, 
        and
          [``(2) establish and maintain a management 
        information system in accordance with guidelines 
        established by the Secretary designed to facilitate the 
        compilation and analysis of programmatic and financial 
        data necessary for reporting, monitoring, and 
        evaluating purposes.''.
    [(g) Section 11(a) of such Act is amended by adding to the 
end thereof the following new sentence: ``Nothing in this 
section shall be construed to prohibit the Governor from 
carrying out functions of such State advisory council through 
the State job training coordinating council in accordance with 
section 122(c) of the Job Training Partnership Act.''.
    [(h) Such Act is amended by adding at the end thereof the 
following new sections:
    [``Sec. 13. (a) The Secretary is authorized to establish 
performance standards for activities under this Act which shall 
take into account the differences in priorities reflected in 
State plans.
    [``(b) Nothing in this Act shall be construed to prohibit 
the referral of any applicant to private agencies as long as 
the applicant is not charged a fee.
    [``Sec. 14. There are authorized to be appropriated such 
sums as may be necessary to enable the Secretary to provide 
funds through reimbursable agreements with the States to 
operate statistical programs which are essential for 
development of estimates of the gross national product and 
other national statistical series, including those related to 
employment and unemployment.
    [``Sec. 15. This Act may be cited as the `Wagner-Peyser 
Act'.''.

      amendments to part c of title iv of the social security act

    [``Sec. 602. (a) Section 432(d) of the Social Security Act 
is amended to read as follows:
    [``(d) In providing the training and employment services 
and opportunities required by this part, the Secretary of Labor 
shall, to the maximum extent feasible, assure that such 
services and opportunities are provided by using all authority 
available under this or any other Act. In order to assure that 
the services and opportunities so required are provided, the 
Secretary of Labor (1) shall assure, when appropriate, that 
registrants under this part are referred for training and 
employment services under the Job Training Partnership Act, and 
(2) may use the funds appropriated under this part to provide 
programs required by this part through such other Acts to the 
same extent and under the same conditions (except as regards 
the Federal matching percentage) as if appropriated under such 
other Act and, in making use of the programs of other Federal, 
State, or local agencies (public or private), the Secretary of 
Labor may reimburse such agencies for services rendered to 
individuals under this part to the extent that such services 
and opportunities are not otherwise available on a 
nonreimbursable basis.''.
    [(b)(1) Section 432(f) of such Act is amended--
          [(A) by amending paragraph (1) to read as follows:
    [``(f)(1) The Secretary of Labor shall utilize the services 
of each private industry council (as established under the Job 
Training Partnership Act) to identify and provide advice on the 
types of jobs available or likely to become available in the 
service delivery area of such council.'';
          [(B) by striking out paragraph (2) and redesignating 
        paragraph (3) as paragraph (2); and
          [(C) by striking out ``Labor Market Advisory 
        Council'' in such paragraph and inserting in lieu there 
        of ``private industry council''.
    [(2) Section 433(b)(2) of such Act is amended by striking 
out ``Labor Market Advisory Council (established pursuant to 
section 432(f))'' and inserting in lieu thereof ``private 
industry council under the Job Training Partnership Act''.
    [(c)(1) Section 432(b)(1)(A) of such Act is amended by 
inserting before the comma at the end thereof the following: 
``, which may include intensive job search services, including 
participation in group job search activities''.
    [(2) Section 433(a) of such Act is amended by striking out 
``unemployed fathers'' and inserting in lieu thereof 
``unemployed parents who are the principal earners (as defined 
in section 407)''.
    [(3) Section 433 of such Act is amended by adding at the 
end thereof the following new subsection:
    [(i) In planning for activities under this section, the 
chief executive officers of each State shall make every effort 
to coordinate such activities with activities provided by the 
appropriate private industry council and chief elected official 
or officials under the Job Training Partnership Act.''.
                          [earnings disregard

  [Sec. 603. (a) Section 402(a)(8)(A) of the Social Security 
Act is amended--
          [(1) by striking out ``and'' at the end of clause 
        (iii);
          [(2) in clause (iv), by striking out ``already 
        disregarded under the preceding provisions of this 
        paragraph'' and inserting in lieu thereof ``disregarded 
        under any other clause of this subparagraph''; and
          [(3) by adding at the end thereof the following new 
        clause;
                  [``(v) may disregard the income of any 
                dependent child applying for or receiving aid 
                to families with dependent children which is 
                derived from a program carried out under the 
                Job Training Partnership Act (as originally 
                enacted), but only in such amounts, and for 
                such period of time (not to exceed six months 
                with respect to earned income) as the Secretary 
                may provide in regulations; and''.
  [(b) Section 402(a)(18) of such Act is amended by inserting 
``, other than paragraph (8)(A)(v)'' after ``without 
application of paragraph (8)''.

             [enforcement of military selective service act

  [Sec. 604. The Secretary shall insure that each individual 
participating in any program established under this Act, or 
receiving any assistance or benefit under this Act, has not 
violated section 3 of the Military Selective Service Act (50 
U.S.C. App. 453) by not presenting and submitting to 
registration as required pursuant to such section. The Director 
of the Selective Service System shall cooperate with the 
Secretary in carrying out this section.

                        [state job bank systems

  [Sec. 605. (a)(1) The Secretary shall carry out the purposes 
of this section with sums appropriated pursuant to paragraph 
(2) for any fiscal year.
  [(2) There are authorized to be appropriated to carry out 
this section $50,000,000 for fiscal year 1989 and such sums as 
may be necessary for each succeeding fiscal year.
  [(b) The Secretary shall make such sums available through the 
United States Employment Service for the development and 
implementation of job bank systems in each State. Such systems 
shall be designed to use computerized electronic data 
processing and telecommunications systems for such purposes 
as--
          [(1) identifying job openings and referring 
        jobseekers to job openings, with continual updating of 
        such information;
          [(2) providing information on occupational supply and 
        demand; and
          [(3) utilization of such systems by career 
        information delivery systems (including career 
        counseling programs in schools).
  [(c) Wherever possible, computerized data systems developed 
with assistance under this section shall be capable of 
utilizing software compatible with other systems (including 
management information systems and unemployment insurance and 
other income maintenance programs) used in the administration 
of employment and training programs. In developing such 
systems, special consideration shall be given to the advice and 
recommendations of the State occupational information 
coordinating committees (established under section 422(b) of 
the Carl D. Perkins Vocational Education Act), and other users 
of such systems for the various purposes described in 
subsection (b) of this section.

          [TITLE VII--STATE HUMAN RESOURCE INVESTMENT COUNCIL

[SEC. 701. ESTABLISHMENT AND FUNCTIONS.

  [(a) In General.--Each State may, in accordance with the 
requirements of this title, establish a single State human 
resource investment council (in this title referred to as the 
``State Council'') that--
          [(1) shall review the provision of services and the 
        use of funds and resources under applicable Federal 
        human resource programs and advise the Governor on 
        methods of coordinating such provision of services and 
        use of funds and resources consistent with the laws and 
        regulations governing such programs;
          [(2) shall advise the Governor on the development and 
        implementation of State and local standards and 
        measures relating to applicable Federal human resource 
        programs and coordination of such standards and 
        measures;
          [(3) shall carry out the duties and functions 
        prescribed for existing State councils described under 
        the laws relating to the applicable Federal human 
        resource programs;
          [(4) may identify the human investment needs in the 
        State and recommend to the Governor goals for meeting 
        such needs;
          [(5) may recommend to the Governor goals for the 
        development and coordination of the human resource 
        system in the State;
          [(6) may prepare and recommend to the Governor a 
        strategic plan to accomplish the goals developed 
        pursuant to paragraphs (4) and (5); and
          [(7) may monitor the implementation of and evaluate 
        the effectiveness of the strategic plan prepared 
        pursuant to paragraph (6).
  [(b) Applicable Federal Human Resource Program Defined.--
          [(1) In General.--(A) Except as provided in 
        subparagraph (B), for purposes of this title, the term 
        ``applicable Federal human resource program'' includes 
        any program authorized under the provisions of law 
        described under paragraph (2)(A) that the Governor and 
        the head of the State agency responsible for the 
        administration of such program jointly agree to include 
        within the jurisdiction of the State Council.
          [(B) With respect to a program authorized under the 
        Carl D. Perkins Vocational and Applied Technology 
        Education Act (20 U.S.C. 2301 et seq.) under paragraph 
        (2)(A)(ii), the term ``applicable Federal human 
        resource program'' shall only apply to such program if, 
        in addition to meeting the requirements of subparagraph 
        (A), the State council on vocational education agrees 
        to include such program under the jurisdiction of the 
        State Council.
          [(2) Programs.--In accordance with the requirements 
        of paragraph (1), applicable Federal human resource 
        programs--
                  [(A) may include the programs authorized 
                under--
                          [(i) this Act;
                          [(ii) the Carl D. Perkins Vocational 
                        and Applied Technology Education Act 
                        (20 U.S.C. 2301 et seq.);
                          [(iii) the National and Community 
                        Service Act of 1990 (42 U.S.C. 12501 et 
                        seq.);
                          [(iv) the Adult Education Act (20 
                        U.S.C. 1201 et seq.);
                          [(v) the Wagner-Peyser Act (29 U.S.C. 
                        49 et seq.);
                          [(vi) part F of title IV of the 
                        Social Security Act (42 U.S.C. 681 et 
                        seq.); and
                          [(vii) the employment program 
                        established under section 6(d)(4) of 
                        the Food Stamp Act of 1977 (7 U.S.C. 
                        2015(d)(4)); and
                  [(B) may not include programs authorized 
                under the Rehabilitation Act of 1973 (29 U.S.C. 
                701 et seq.).
[SEC. 702. COMPOSITION.

  [(a) In  General.--Each  State  Council  shall  be  composed  
as follows:
          [(1) Each State Council shall include the head of 
        each State agency responsible for the administration of 
        an applicable Federal human resource program.
          [(2)(A) Each State Council shall include one or more 
        representatives, appointed by the Governor to the State 
        Council for a minimum of 2 years, from each of the 
        following:
                  [(i) Local public education.
                  [(ii) A postsecondary institution.
                  [(iii) A secondary or postsecondary 
                vocational educational institution.
                  [(iv) A community-based organization.
          [(B) The total number of representatives appointed 
        under clause (i), (ii), and (iii) of subparagraph (A) 
        shall constitute not less than 15 percent of the 
        membership of the State Council.
          [(3)(A) Each State Council shall include individuals, 
        appointed by the Governor to the State Council for a 
        minimum of 2 years, from among the following:
                  [(i) Representatives of business and 
                industry, who shall constitute not less than 15 
                percent of the membership of the State Council, 
                including individuals who are representatives 
                of business and industry on private industry 
                councils established within the State under 
                section 102.
                  [(ii) Representatives of organized labor 
                who--
                          [(I) shall be selected from among 
                        individuals nominated by recognized 
                        State labor federations; and
                          [(II) shall constitute not less than 
                        15 percent of the membership of the 
                        State Council.
          [(B) If the State labor federation fails to nominate 
        a sufficient number of individuals under subclause (I) 
        of subparagraph (A)(ii) to satisfy the requirement 
        under subclause (II) of such subparagraph, individual 
        workers may be included on the State Council to satisfy 
        such requirement.
  [(b) Additional Members.--Each State Council may also include 
additional qualified members, who may be selected from--
          [(1) representatives from local welfare agencies;
          [(2) representatives from public housing agencies;
          [(3) representatives from units of general local 
        government or consortia of such units, appointed from 
        nominations made by the chief elected officials of such 
        units or consortia;
          [(4) representatives from the State legislature;
          [(5) representatives from any State or local program 
        that receives funding under an applicable Federal human 
        resource program that the Governor determines to have a 
        direct interest in the utilization of human resources 
        within the State; and
          [(6) individuals who have special knowledge and 
        qualifications with respect to special education and 
        career development needs of hard-to-serve individuals.
  [(c) Additional Requirements.--
          [(1) Percentage limitation.--None of the following 
        categories of individuals may constitute more than 60 
        percent of the membership of each State Council:
                  [(A) Individuals selected under subsection 
                (a)(1).
                  [(B) Individuals appointed under subsection 
                (a)(2).
                  [(C) Individuals appointed under subsection 
                (a)(3)(A)(i).
                  [(D) Individuals appointed under subsection 
                (a)(3)(A)(ii).
                  [(E) Individuals selected under subsection 
                (b).
          [(2) Expertise.--The Governor shall ensure that both 
        the State Council and the staff of the State Council 
        have sufficient expertise to effectively carry out the 
        duties and functions of existing State councils 
        described under the laws relating to the applicable 
        Federal human resource programs. Such expertise shall 
        include, where appropriate, knowledge of--
                  [(A) the long-term needs of individuals 
                preparing to enter the workforce;
                  [(B) the needs of local, State, and regional 
                labor markets; and
                  [(C) the methods for evaluating the 
                effectiveness of vocational training programs 
                in serving varying populations.

[SEC. 703. ADMINISTRATION.

  [(a) Funding.--In order to carry out the functions of the 
State Council, each State establishing a State Council that 
meets the requirements of this title may--
          [(1) use funds otherwise available for State councils 
        under the applicable Federal human resource programs;
          [(2) use funds otherwise available under the 
        applicable Federal human resource programs, consistent 
        with the laws and regulations governing such programs, 
        including funds available to carry out section 
        123(a)(2)(D), except that, with respect to the Carl D. 
        Perkins Vocational and Applied Technology Education Act 
        (20 U.S.C. 2301 et seq.), such State may use funds only 
        to the extent provided under section 112(g) of such 
        Act; and
          [(3) use funds, services, personnel, facilities and 
        information provided by State and local public 
        agencies, with the consent of such agencies.
  [(b) Personnel.--Each State Council may obtain the services 
of such professional, technical, and clerical personnel as may 
be necessary to carry out its functions.
  [(c) Certification.--Each State shall certify to the 
Secretary the establishment and membership of the State Council 
at least 90 days before the beginning of each period of 2 
program years for which a job training plan is submitted under 
this Act.
  [(d) Equitable Funding.--Each State agency participating in a 
State Council under this title is encouraged to provide funds 
to support such Council in a manner consistent with its 
representation on such Council.]
              STEWART B. MCKINNEY HOMELESS ASSISTANCE ACT

                      TITLE I--GENERAL PROVISIONS

SECTION 101. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Stewart B. 
McKinney Homeless Assistance Act''.
  (b) Table Of Contents.--
                      TITLE I--GENERAL PROVISIONS

          * * * * * * *

    TITLE VII--EDUCATION, TRAINING, AND COMMUNITY SERVICES PROGRAMS

             [Subtitle A--Adult Education for the Homeless
[Sec. 701. Amendment to Adult Education Act.
[Sec. 702. State literacy initiatives.]
          * * * * * * *

               [Subtitle C--Job Training for the Homeless
[Sec. 731. Demonstration program authorized.
[Sec. 732. State coordination with demonstration grant recipients.
[Sec. 733. Application.
[Sec. 734. Authorized activities.
[Sec. 735. Payments; Federal share; limitation.
[Sec. 736. Evaluation.
[Sec. 737. Definitions.]
Sec. 738. Homeless veterans' reintegration projects.
[Sec. 739. Authorization of appropriations; availability of funds.
[Sec. 740. Amendments to the Job Training Partnership Act.
[Sec. 741. Termination.]
          * * * * * * *

    TITLE VII--EDUCATION, TRAINING, AND COMMUNITY SERVICES PROGRAMS

             [Subtitle A--Adult Education for the Homeless

[SEC. 701. STATE LITERACY INITIATIVES.

  [(a) General Authority.--
          [(1) Grants.--The Secretary of Education is 
        authorized to make grants to State educational agencies 
        to enable each such agency to implement, either 
        directly or through contracts and grants, a program of 
        literacy training and academic remediation for adult 
        homeless individuals within the State, which program 
        shall--
                  [(A) include outreach activities; and
                  [(B) be coordinated with other agencies or 
                organizations, such as community-based 
                organizations, nonprofit literacy-action 
                organizations, and recipients of funds under 
                the Adult Education Act, title II of the Job 
                Training Partnership Act, the Youth Fair Chance 
                program under part H of title IV of the Job 
                Training Partnership Act, the Volunteers in 
                Service to America program under part A of 
                title I of the Domestic Volunteer Service Act 
                of 1973, part C of this title, or the Job 
                Opportunity and Basic Skills program under part 
                F of title IV of the Social Security Act.
          [(2) Estimates and amounts.--The Secretary of 
        Education, in awarding grants under this section, shall 
        give special consideration to the estimates submitted 
        in the application submitted under subsection (b) and 
        make such awards in whatever amounts such Secretary 
        determines will best serve the purposes of this 
        section.
  [(b) Application.--Each State educational agency desiring to 
receive a grant under this section shall submit to the 
Secretary of Education an application at such time, in such 
manner, and containing such information as the Secretary may 
reasonably require. Each such application shall include an 
estimate of the number of homeless individuals in the State and 
the number of such individuals expected to be served.
  [(c) Authorization of Appropriations.--For the purpose of 
carrying out the adult literacy training and academic 
remediation programs authorized by this section, there are 
authorized to be appropriated such sums as may be necessary for 
each of the fiscal years 1995 through 1999.
  [(d) Definition.--As used in this section, the term ``State'' 
means each of the 50 States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American 
Samoa, the Commonwealth of the Northern Mariana Islands, and 
Palau (until the effective date of the Compact of Free 
Association with the Government of Palau).]
          * * * * * * *

               [Subtitle C--Job Training for the Homeless

[SEC. 731. DEMONSTRATION PROGRAM AUTHORIZED.

  [(a) General Authority.--The Secretary of Labor shall, from 
funds appropriated pursuant to section 739, make grants for the 
Federal share of job training demonstration projects for 
homeless individuals in accordance with the provisions of this 
subtitle.
  [(b) Contract Authority.--The Secretary is authorized to 
enter into such contracts with State and local public agencies, 
private nonprofit organizations, private businesses, and other 
appropriate entities as may be necessary to carry out the 
provisions of this subtitle.
[SEC. 732. STATE COORDINATION WITH DEMONSTRATION GRANT RECIPIENTS.

  [A State shall describe in the comprehensive plan required 
under section 401 how the State will coordinate projects 
conducted within a State under this subtitle with other 
services for homeless individuals assisted under this Act.

[SEC. 733. APPLICATION.

  [(a) In General.--Each applicant which desires to receive a 
demonstration grant under this subtitle shall submit an 
application to the Secretary at such time, in such manner, and 
containing or accompanied by such information as the Secretary 
may reasonably require. Each such application shall include--
          [(1) a description of the activities for which 
        assistance is sought;
          [(2) plans for the coordination and outreach 
        activities, particularly with case managers and care 
        providers, designed to achieve referral of homeless 
        individuals to the demonstration projects authorized by 
        this subtitle or other related programs providing 
        services necessary to address the multiple needs of 
        homeless individuals;
          [(3) plans to offer on the street or in-shelter 
        outreach and assessment activities and where 
        practicable, preemployment services, so as to increase 
        the participation of homeless individuals in the 
        demonstration project and to contract for, or provide, 
        training services and activities;
          [(4) a description of the standards by which 
        performance may be measured under the demonstration 
        project, together with assurances that a preliminary 
        evaluation of the project will be completed not later 
        than the end of the first year for which assistance is 
        sought;
          [(5) assurances that the recipient of demonstration 
        grants under this subtitle will pay the non-Federal 
        share of the activities for which assistance is sought 
        from non-Federal sources; and
          [(6) such additional assurances as the Secretary 
        determines are necessary to insure compliance with the 
        requirements of this subtitle.
  [(b) Special Consideration.--
          [(1) In general.--In awarding grants under this 
        subtitle, the Secretary of Labor may give special 
        consideration to applicants that will implement 
        projects that will serve areas of greatest need, 
        including urban and rural areas, as demonstrated by--
                  [(A) the large number or concentration of 
                homeless individuals in the project area 
                relative to other similar areas of 
                jurisdiction;
                  [(B) the high rates of poverty in the project 
                area as determined by the census; or
                  [(C) the lack of available low cost or 
                affordable housing within the project area, as 
                measured by such indicators as high average 
                local rents or vacancy rates.
          [(2) Holistic service approach.--In awarding grants 
        under this subtitle, the Secretary of Labor may give 
        special consideration to applicants that will implement 
        programs that include formal reciprocal referral 
        agreements with other programs such as substance abuse 
        counseling, local shelters, and subsidized housing that 
        provide a holistic service approach on an individual 
        case management basis.

[SEC. 734. AUTHORIZED ACTIVITIES.

  [Demonstration grants under this subtitle may be used for--
          [(1) basic skills instruction;
          [(2) remedial education activities;
          [(3) basic literacy instruction;
          [(4) job search activities;
          [(5) job counseling;
          [(6) job preparatory training, including resume 
        writing and interviewing skills; and
          [(7) any other activities described in section 204 of 
        the Job Training Partnership Act which the grant 
        recipient determines will contribute to carrying out 
        the objectives of this subtitle;
for homeless individuals.

[SEC. 735. PAYMENTS; FEDERAL SHARE; LIMITATION.

  [(a) Payments.--The Secretary shall pay to each applicant 
having an application approved under section 733 the Federal 
share of the cost of activities described in the application.
  [(b) Federal Share.--
          [(1)(A) The Federal share for each fiscal year shall 
        be not less than 50 percent nor more than 90 percent.
          [(B) The Federal share shall be determined by the 
        Secretary for each recipient under this subtitle based 
        upon the ability of the recipient to meet the non-
        Federal share of the cost of the program for which 
        assistance is sought.
          [(2) The non-Federal share of payments under this 
        subtitle may be in cash or in kind fairly evaluated, 
        including plant equipment or services.
  [(c) Limitation.--The Secretary may not make grants in any 
State in an aggregate in excess of 15 percent of the amount 
appropriated to carry out this subtitle in each fiscal year.

[SEC. 736. EVALUATION.

  [(a) Demonstration Project Responsibility.--The Secretary 
shall evaluate each project assisted under this subtitle at the 
end of the first fiscal year for which funds are appropriated 
under this subtitle. The Secretary shall submit the findings of 
the evaluations to the Interagency Council. Not later than 6 
months before the termination date specified in section 741, 
the Secretary shall prepare and submit a final report of the 
evaluations required by this subsection to the President, to 
the Congress, and to the Interagency Council.
  [(b) Contents of Evaluations.--Each evaluation required by 
this section shall include--
          [(1) the number of homeless individuals served;
          [(2) the number of homeless individuals placed in 
        jobs;
          [(3) the average length of training time under the 
        project;
          [(4) the average training cost under the project; and
          [(5) the average retention rate of placements of 
        homeless individuals after training with assistance 
        made under this subtitle.
  [(c) Evaluation by Interagency Council.--
          [(1) The Interagency Council shall evaluate each 
        project receiving assistance under this subtitle.
          [(2) The Interagency Council shall prepare and 
        publish a report of its findings in the annual report 
        of the Council. The evaluation of the demonstration 
        projects authorized by this subtitle shall include a 
        determination of the relative effectiveness of programs 
        assisted under this subtitle together with 
        recommendations, including recommendations for 
        legislation, to the Congress on job training programs 
        for homeless individuals to be established on a 
        national basis.

[SEC. 737. DEFINITIONS.

  [As used in this subtitle--
          [(1) the term ``applicant'' means public agencies, 
        private nonprofit organizations, private businesses, 
        and other appropriate entities;
          [(2) the term ``Interagency Council'' means the 
        Interagency Council on the Homeless;
          [(3) the term ``local public agency'' means any 
        public agency of a general purpose political 
        subdivision of a State which has the power to levy 
        taxes and spend funds, as well as general corporate and 
        police powers;
          [(4) the term ``Secretary'' means the Secretary of 
        Labor; and
          [(5) the term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, American Samoa, 
        and the Commonwealth of the Northern Mariana Islands.]

SEC. 738. HOMELESS VETERANS' REINTEGRATION PROJECTS.

  (a) General Authority.--The Secretary, using funds 
appropriated and made available for the purpose of carrying out 
this section, shall conduct, directly or through grant or 
contract, such programs as the Secretary determines appropriate 
to expedite the reintegration of homeless veterans into the 
labor force. Notwithstanding any other provision of law, the 
amount so appropriated shall be available for distribution in 
such manner as the Assistant Secretary of Labor for Veterans' 
Employment and Training considers appropriate and shall remain 
available until expended.
  (b) Authority To Monitor the Expenditure of Funds.--The 
Secretary is authorized to obtain such information as the 
Secretary considers appropriate to enable the Secretary to 
monitor and evaluate the distribution and expenditure of funds 
appropriated pursuant to the authorization contained in 
subsection (a). Such information shall be furnished to the 
Secretary in such form as the Secretary considers appropriate 
for the purpose of this subsection.
  (c) Administration Through the Assistant Secretary of Labor 
for Veterans' Employment and Training.--The Secretary shall 
administer the program provided for by this section through the 
Assistant Secretary of Labor for Veterans' Employment and 
Training.
  (d) Definition.--As used in this section, the term ``homeless 
veteran'' means a homeless individual who is a veteran within 
the meaning of section 101(2) of title 38, United States Code.
  (e) Authorization of Appropriations.--(1) There are 
authorized to be appropriated to carry out this section the 
following amounts:
          (A) $10,000,000 for fiscal year 1993.
          (B) $12,000,000 for fiscal year 1994.
          (C) $14,000,000 for fiscal year 1995.
  (2) Funds obligated for any fiscal year to carry out this 
section may be expended in that fiscal year and the succeeding 
fiscal year.

[SEC. 739. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this subtitle the following 
amounts:
          (1) $14,000,000 for fiscal year 1991, of which 
        $2,200,000 shall be available only to carry out section 
        738.
          [(2) $15,000,000 for fiscal year 1992, of which 
        $2,200,000 shall be available only to carry out section 
        738.
          [(3) $14,800,000 for fiscal year 1993, of which 
        $2,200,000 shall be available to carry out section 738.
          [(b) Ratable Reduction.--If for any fiscal year the 
        appropriation is less than the amount authorized in 
        paragraph (1) to carry out the provisions of this 
        subtitle, the amount available in such fiscal year for 
        the programs under this subtitle other than section 738 
        and for the program under section 738 shall be ratably 
        reduced.
          [(c) Special Rule.--Nothing in this subtitle shall be 
        construed to require the Secretary to carry out the 
        provisions of this subtitle from funds appropriated for 
        programs other than funds appropriated for this 
        subtitle.

[SEC. 740. AMENDMENTS TO THE JOB TRAINING PARTNERSHIP ACT.

  [(a) Definition.--Section 4(8) of the Job Training 
Partnership Act (29 U.S.C. 1503(8)) is amended--
          [(1) by redesignating clauses (D) and (E) as clauses 
        (E) and (F), respectively; and
          [(2) by inserting after clause (C) the following:
                  [``(D) qualifies as a homeless individual 
                under section 103 of the Stewart B. McKinney 
                Homeless Assistance Act;''.
  [(b) Service Requirement.--Section 141(e) of the Job Training 
Partnership Act (29 U.S.C. 1551(e)) is amended by inserting 
before the period at the end the following: ``, including 
exceptions necessary to permit services to homeless individuals 
who cannot prove residence within the service delivery area''.

[SEC. 741. TERMINATION.

  [The provisions of this subtitle other than sections 738 and 
740 shall terminate on October 1, 1993.]
          * * * * * * *
                             MINORITY VIEWS

    Many of us voted to report this bill. We did so in the 
spirit of bi-partisan cooperation that has characterized the 
activities of this committee in the past. By voting to report, 
we did not mean to imply that we agreed with everything in the 
legislation. The bill this committee has reported is still a 
work-in-progress. But it is a work that is progressing, and it 
is moving closer to what we consider a good job training bill 
should look like.
    Many of the concerns that we expressed during the course of 
this bill's development--the need for a dedicated school 
funding stream, the need for some form of a within State 
allocation formula, the need for better targeting for adult 
training services, the need to preserve the rights of States to 
organize themselves in ways that are appropriate to each 
individual State, the importance of retaining a strong 
employment service through a continued Wagner-Peyser Act, and 
the importance of not altering existing trade adjustment 
programs for dislocated workers--have been addressed in this 
bill.
    However, we are dismayed that the majority, in its report, 
rejected suggestions we made that would have enhanced this 
spirit of bipartisanship. For instance, we suggested that the 
majority explicitly acknowledge the contributions President 
Clinton has made toward improving the nations's job training 
system. That suggestion was summarily rejected. We fail to 
understand why.
    President Clinton has embraced many of the provisions 
contained in this bill. He has made the use of career grants 
one of the linchpins of his job training initiatives. One-stop 
centers are a central element of his job training reform 
proposals. Including all the appropriate State and local 
interests in the development of State and local job training 
plans--the collaborative process that is at the heart of this 
bill--is one of the major reforms made by President Clinton's 
School-to-Work Opportunities Act enacted last year with the 
support of a bi-partisan Congress. Yet the majority has decided 
in its report not to give the President the credit he deserves 
for advancing these initiatives.
    We are also dismayed by the ``union bashing'' that pollutes 
the Committee report. We see no reason why this report should 
be used by the majority to settle political scores with the 
labor movement. Whatever one may think of that movement, the 
fact of the matter is that organized labor and the right of 
working men and women to organize in order to represent 
themselves at the bargaining table are realities of economic 
life in this country.
    The majority should respect, and be willing to acknowledge, 
that right, and not use the committee report to add unnecessary 
and previously undiscussed distinctions regarding who should 
represent employees. By making these distinctions, the majority 
is following a path that is unprecedented in this committee. 
The majority is using the committee report to define provisions 
in the bill advanced by the minority. We cannot recall previous 
examples of this occurring. We think this is a terrible 
precedent for the majority to establish in its committee 
reports. We, the minority Members, advanced the notion of 
placing employee representatives on the workforce boards. Thus, 
if anyone should define who we mean by the term ``employee 
representatives,'' it is us. We reject the manipulation of our 
suggestion by the majority so it could inject its anti-labor 
animus into the committee report.
    We also think the majority is setting a bad precedent by 
trying to use the committee report to rewrite the history of 
what occurred during the committee mark-up. We take particular 
exception to the discussion in the committee report regarding 
the Hoekstra amendment. We voted on the Hoekstra amendment in 
the form in which it was presented to the Members. That 
amendment was clear on its face. If the amendment had been 
written to reflect what Mr. Hoekstra apparently now hopes it 
had done, we would not have approved it by a voice vote. And we 
think there is a strong possibility that the ``new'' Hoekstra 
amendment would have failed. To use the committee report now to 
explain what had been hoped for, but never voted on, is in our 
opinion a misuse and abuse of that report.
    We intend to continue to work with the majority to improve 
this bill as we proceed through the legislative process. 
Nevertheless, we still have some concerns we wish to highlight. 
And, unless the following concerns are met, we do not think the 
bill best represents the job training reform initiative we 
intend it to be.

                      school-to-work opportunities

    The bill would repeal the School-to-Work Opportunities Act, 
effective October 1, 1996. The School-to-Work Act is one of the 
most important pieces of education reform legislation enacted 
by Congress in recent years. It was enacted last year with bi-
partisan support and has been embraced by the business 
community. We fail to comprehend why the majority wants to 
repeal this law.
    School-to-Work is not a separate program serving youth, but 
is an investment in reform. It provides States, localities, and 
Indian tribes with venture capital for creating systems that 
will enable all students to make a successful transition from 
school to postsecondary education and high-skilled, high-wage 
careers. School-to-work systems, as the States are implementing 
them, combine challenging academic and technical instruction, 
bridge the gap between secondary and postsecondary education, 
and include a strong focus on work-based instruction with the 
involvement of employers.
    As a seed money program, School-to-Work was never intended 
to involve a long-term commitment of Federal funds. Rather, the 
legislation provides for no appropriations after fiscal year 
1999, and the Act sunsets after 2001. Over time, States and 
localities should be able to complete the implementation of 
their school-to-work system using other education and training 
funding. But by terminating the program abruptly after 1996, 
the Congress would suspend State and local efforts at a 
critical point in the developmental process, when venture 
capital is still badly needed. At that point, 8 States will 
have completed the first three years of their five-year 
development grants, some 20 more will be only two years into 
the process, and others will have barely gotten started at all.
    Experience shows that Federal discretionary grants 
accomplish little if they are terminated midway through a grant 
period. There will be very little return on the Federal 
investment if we do not continue the School-to-Work venture 
capital grants through at least fiscal year 1998. When this 
bill reaches the floor, we will be seeking changes in the bill 
to provide for such continuation.
                 TARGETING OF FUNDS FOR YOUTH PROGRAMS

    A major justification for Federal involvement in employment 
development programs is to ensure that youth living in 
impoverished communities have the same educational and training 
opportunities as those living in more affluent areas. The 
Congress, in enacting the 1990 Perkins Act amendments, mandated 
precise targeting of vocational education funds, at both the 
secondary and post-secondary levels, after national evaluations 
had found that States were spreading funds too thinly and 
providing a major portion of the funding to educational 
institutions in wealthy areas. The 1990 amendments have been 
effective; Perkins Act funds are now reasonably well-targeted.
    Under H.R. 1617, States would have to take local poverty 
rates into account in making allocations, but they would have 
unlimited authority to determine the extent to which poverty 
would be a factor and what other factors to use. This is 
exactly the type of loophole that, according to the research, 
States abused in the past.
    In committee, we supported Rep. Green's (TX) sub-State 
formula amendment, a reasonable compromise that would have 
ensured some targeting, although not as significant as in the 
current Perkins Act or in the Administration's ``Career 
Preparation Education Reform'' bill. Unfortunately, the Green 
compromise was not accepted.
    Title IV of the reported bill also fails to provide for 
adequate targeting of adult literacy funds. The current Adult 
Education Act requires States to give preference to entities 
that serve educationally disadvantaged adults, particularly in 
areas with a high proportion of adults who have not completed 
high school. H.R. 1605, the Clinton Administration's ``Adult 
Education and Family Literacy Reform'' bill would strengthen 
targeting by adding a poverty factor to the State allocation 
formula and by giving a priority, within States, to eligible 
entities that serve areas with high concentrations of poverty 
or limited English proficiency. H.R. 1617, by contrast, would 
eliminate even the very modest targeting requirements of 
current law.
    In sum, the funding distribution provisions of the bill 
need to be improved as the measure moves through Congress.

                       VOCATIONAL REHABILITATION

    Vocational rehabilitation is one of the most important 
mechanisms for enabling individuals with disabilities to obtain 
productive employment, live independently, and thrive in 
mainstream society. Yet H.R. 1617 would disrupt the current 
rehabilitation system by limiting State flexibility, diluting 
accountability, and creating uneven access to services. Our 
rather extensive dissenting views on this issue are included 
separately in this report.
    In committee, we supported an amendment offered by Rep. 
Major Owens (NY) which would have simplified current law and 
consolidated programs, while ensuring continuation of the most 
vital aspects of the rehabilitation system. We also supported 
an amendment offered by Rep. Gene Green (TX) which would have 
deleted all changes to the Rehabilitation Act from this 
legislation, permitting those changes to be considered on a 
more careful basis. We join the voices of the 49 disability 
organizations that have especially spoken out against this 
title of the bill. The provisions affecting vocational 
rehabilitation require major revision.

                    PROGRAMS FOR AT-RISK POPULATIONS

    Under the current Perkins Act, each State must use at least 
10.5 percent of its Basic Grant allocation for programs for 
single parents, displaced homemakers, and single pregnant 
women, and at least 3 percent must be used for sex equity 
programs. Previous Congresses adopted these requirements after 
the General Accounting Office (GAO) and other sources reported 
that vocational programs had perpetuated outmoded sexual 
stereotypes and that displaced homemakers, and other women with 
significant and unique needs, were not adequately served by 
those programs. The current set-aside programs have achieved 
widespread success in preparing women for employment, including 
employment in nontraditional careers.
    In committee, we supported an amendment by Rep. Patsy Mink 
(HI) which would have ensured that the efforts in this 
important area continued under this bill. However, the 
amendment was not acceptable to the majority. This is another 
flaw in the legislation that should be corrected.
    We are also concerned about the bill's lack of focus on 
out-of-school youth, a disadvantaged population traditionally 
served by employment development programs. The bill does not 
include any dedicated funding for young people who are out of 
school, and the funding available for ``at-risk'youth'' could 
be spent entirely on the easier-to-serve, in-school population. 
In committee, we supported an amendment offered by Rep. Xavier 
Becerra (CA) which would have targeted all of the at-risk funds 
on out-of-school youth. We regret that the majority did not 
accept that amendment.

                          AUTHORIZATION LEVELS

    The bill would authorize, for Title II through IV, 
approximately $4.57 billion for fiscal year 1997. This amount 
is a reduction of almost 23 percent from the roughly $6 billion 
available for Perkins Act, JTPA, Adult Education Act, and other 
affected programs in 1995. While we agree with the majority on 
the need to eliminate the Federal budget deficit, it is 
unconscionable to expect programs which provide sorely needed 
services to disadvantaged populations to bear the burden of 
achieving budget savings. Education and training programs can 
enable participants to achieve economic success which, in turn, 
would result in increased tax revenues, a lower cost for social 
services, and eventually less, cost to the government.
    We are dismayed by the apparent willingness of the new 
majority to so passively submit to the whims of the budget and 
appropriations process. We should not forget that we are not 
the Budget or Appropriations Committees. Our responsibility is 
to frame an accurate portrait of what is really needed to get 
the job done. If we do not set a target, but instead allow our 
authorization levels to be influenced by other committees, we 
cannot establish a reliable blueprint for the construction of 
the job training system that this country needs to remain a 
strong and productive economic power. The authorization levels 
in H.R. 1617 are inadequate.
    At committee, we supported an amendment offered by Rep. 
Lynn Woolsey (CA) which would have increased the authorizations 
to the levels requested by President Clinton in his fiscal year 
1996 budget. We believe the President set out a good blueprint 
for progress in that budget. Unfortunately, the majority 
decided to ignore the President's vision and to oppose the 
Woolsey amendment.

                         LOCAL DECISION-MAKING

    Although the majority claims that H.R. 1617 represents a 
positive step in transferring resources and decision-making for 
job training and vocational education closer to the individuals 
being served, we think this bill actually could reduce local 
and individual accountability because it centralizes too much 
control in the hands of one set of decision-makers: the State 
governors. We also think the bill could actually result in the 
undermining of State organizational decisions and in the 
lessening of the ability of local officials to develop job 
training programs most suitable for local needs. Both of these 
issues run counter to what the majority contends is its intent.
    At the committee level we worked with the majority to make 
it clear that this bill in no way was intended to negate, 
supersede, or interfere with State organizational decisions. We 
think it is important to recognize that States have the right 
to decide how best to structure their own education and job 
training systems. In no way should H.R. 1617 be interpreted, in 
our opinion, as imposing a preferred federal method or system 
on the States. We still have concerns that parts of the bill 
may be interpreted by some to give governors the authority to 
bypass the rigid restrictions that have been placed in the 
bill. We intend to revisit this issue as the bill moves through 
the Congress.
    On a similar note, we are also concerned that some may 
interpret this bill as giving governors the authority to bypass 
the local decision-making process. If job training programs are 
to meet the needs of local communities, we cannot permit a 
situation to exist where governors second-guess decisions 
appropriately made at the local community level. Governors do 
not always know, or carry out, what is best for local 
communities. This bill, in our opinion, must foster strong 
local involvement and local decision-making. If there is any 
confusion or disagreement on this point, we intend to work 
torward clarification.
    In sum, H.R. 1617, as reported, does not hit the mark. We 
intend to keep working with the majority to improve this 
legislation so that it becomes a measure that will have a 
profound and positive impact on the educational and career 
opportunities of all Americans.

                                   William L. Clay.
                                   Dale E. Kildee.
                                   Matthew G. Martinez.
                                   Tom Sawyer.
                                   Patsy T. Mink.
                                   Jack Reed.
                                   Eliot L. Engel.
                                   Robert C. Scott.
                                   Lynn Woolsey.
                                   Mel Reynolds.
                                   George Miller.
                                   Pat Williams.
                                   Major R. Owens.
                                   Donald M. Payne.
                                   Robert E. Andrews.
                                   Tim Roemer.
                                   Xavier Becerra.
                                   Gene Green.
                                   Carlos Romero-Barcelo.
                            DISSENTING VIEWS

    With an unemployment rate of more than 69 percent, no group 
of Americans has a more compelling and urgent need for high-
quality services to assist them in improving their 
employability than Americans with disabilities. For this 
reason, we are dismayed by both the process used by the 
Committee to address the concerns of people with disabilities 
in this legislation and by the poor quality of the final 
product. Americans with disabilities deserve better.
    We find it disturbing that even as the majority has been 
professing its commitment to ``empowering'' people with 
disabilities, it has denied people with disabilities an 
opportunity to participate meaningfully in the development of 
this critical legislation. Title V makes the most far-reaching 
changes in Federal vocational rehabilitation programs in more 
than 75 years, but not a single hearing has been held by the 
Committee on the actual provisions of the legislation. The 
general oversight hearing held by the Subcommittee on 
Postsecondary Education, Training and Lifelong Learning on the 
Rehabilitation Act earlier this year did not elicit any calls 
for comprehensive reform or sweeping revisions in the law. The 
majority of witnesses warmly praised current law. To make 
matters worse, the text of the bill was only available to the 
public moments before the Committee marked up H.R. 1617. In 
contrast, during the 102nd Congress when the Committee last 
considered substantive amendments to the Rehabilitation Act of 
1973, it held five legislative hearings and provided 
significant opportunities for persons with disabilities and 
other members of the public to review the pending legislation 
and offer comments and suggestions on how it could be improved. 
The Committee majority, in other words, may preach the gospel 
of empowerment, but it certainly does not practice it.
    This is unfortunate because hearings and an open and 
informed deliberative process would doubtlessly have improved 
the quality of Title V and helped the Committee to craft 
legislative provisions which would be more likely to accomplish 
the sponsors' stated objectives. Expanding consumer choice and 
integrating vocational rehabilitation services into a 
comprehensive ``one-stop'' system are worthwhile goals which we 
fully support. In its current form, however, Title V not only 
will not advance these objectives, it will erode the quality 
and reduce the availability of rehabilitation services for 
persons with disabilities. Perhaps inadvertently, in its quest 
to create a ``seamless'' job training system, this Committee 
has instead reported a bill which rends deep holes in the 
nation's vocational rehabilitation system.
    From its inception, Federal aid for vocational 
rehabilitation services has been provided in the form of a 
block grant to the States. National performance and quality 
standards have been established, but the States have been given 
broad discretion in determining how best to meet them. For 
reasons which are unclear to us, Title V abandons that 
tradition by mandating that each State scrap its current 
approach to providing rehabilitation services and now follow a 
new and extraordinarily prescriptive ``one-size-fits-all'' 
service delivery model. Funding for services provided on a 
statewide basis and through public agencies is sharply limited, 
denying States the flexibility they need to tailor their 
delivery systems to address the State's unique geographic and 
demographic characteristics and service needs. The 
preponderance of Federal funds are instead required to be 
funneled through a host of new local bureaucracies that each 
State is mandated to create.
    Why did the Committee select this particular model to be 
the ``one-size-fits-all'' template each State must follow? We 
frankly do not know. Although States currently take a variety 
of different approaches to delivering rehabilitation services, 
not a single state delivers services in a manner which even 
remotely resembles the detailed model dictated by Title V. Most 
elements of the model seem to have been chosen arbitrarily or 
because they seem to ``look good on paper''. As a result, this 
newly prescriptive ``one-size-fits-all'' model may not, in 
fact, ``fit'' any State at all. It may well be administratively 
unworkable. Neither we, nor the Committee majority, can know 
for sure.
    Perversely, States like New York, Kentucky, and Wisconsin 
which are already providing rehabilitation services through an 
integrated ``one-stop'' system would be forced to dismantle 
their systems and attempt to reconstruct them according to this 
new, congressionally-imposed model. Other States may be able to 
accomplish the goals of the CAREERS Act through less convoluted 
and cumbersome means that those dictated by Title V but would 
be blocked from doing so. Innovation and creativity would be 
stifled under the heavy-handed, multiple, micro-mandates set 
out in Title V. One size fits all and Washington knows best.
    What is most alarming, however, is the damage this 
prescriptive service delivery model would do to the quality and 
availability of rehabilitation services in our communities. 
Under current law, eligible individuals are guaranteed access 
to the same quality and range of rehabilitation services no 
matter where they reside in the State. This guarantee would be 
eliminated under Title V. Instead, the ability of individuals 
to access a needed service would depend on three factors: (1) 
whether the workforce development board in their community had 
decided to support the service; (2) whether the workforce 
development area could afford to support the service with the 
flat sum of funds allocated to them by formula by the State; 
and (3) whether there was a private provider within the 
community who was qualified to provide the service.
    The proponents of Title V like to describe this new 
approach as ``consumer-driven''. It is hardly that. The model 
erects so many new barriers to access that the only place most 
consumers will be able to drive is straight into a brick wall.
    Workforce development boards should have authority to 
tailor their job training strategies to meet local economic 
needs and to assure that individuals are provided job-specific 
training which matches available jobs within the community. But 
since few rehabilitation services are job-specific, it makes 
little sense to give these boards broad discretion over the 
scope of rehabilitation services they offer. An individual's 
need for speech therapy is determined by that person's 
disability, not by where he or she resides within the State.
    Similarly problematic is the allocation of Federal 
rehabilitation funds to communities within the State according 
to a formula which is based on the number of persons with 
disabilities who reside in the community. The underlying 
premise here--that the cost of providing rehabilitation 
services to every individual is roughly equal--is false. A 
rural community may have a small number of residents with 
disabilities, but the needs of those individuals may be severe 
and require intensive services whose costs exceed the lump per-
capita sum allocated by the State. One size does not fit all.
    Finally, the delivery model dictated by Title V is based on 
the false assumption that there is a vast universe of 
qualified, private providers of rehabilitative services 
operating in every community. This is plainly absurd. 
Individuals who live in rural areas or who require highly-
specialized services are now predominantly served by public, 
generally State-supported, providers. In 21 states, for 
example, there is not a single private provider of 
rehabilitation services for the blind. State agencies now fill 
this gap by providing the necessary services for the blind 
directly. How the blind residents of these States will continue 
to receive the services they need under the rigid Title V model 
is unclear. We reiterate: one size does not fit all.
    For all of these reasons, we join the more than 45 national 
organizations representing both persons with disabilities and 
providers of rehabilitative services in expressing our strong 
opposition to Title V of this legislation. The diverse 
community of persons with disabilities rarely speaks in one 
voice, but on this legislation there has been unanimity: not a 
single disability-related organization has endorsed the 
provisions of Title V.
    When H.R. 1617 is considered by the House, we will support 
amendments to remedy the myriad problems with the flawed and 
destructive ``one size fits all'' approach taken by the 
majority. We wholeheartedly endorse the majority's desire to 
maximize consumer choice and integrate vocational 
rehabilitation services into a comprehensive ``one-stop'' 
workforce development system. Where we differ is on the need 
for Congress to micromanage how States achieve these goals.

                                   William L. Clay.
                                   Dale E. Kildee.
                                   Matthew G. Martinez.
                                   Tom Sawyer.
                                   Patsy T. Mink.
                                   Jack Reed.
                                   Eliot L. Engel.
                                   Robert C. Scott.
                                   Lynn Woolsey.
                                   George Miller.
                                   Pat Williams.
                                   Major R. Owens.
                                   Donald M. Payne.
                                   Robert E. Andrews.
                                   Xavier Becerra.
                                   Gene Green.
                                   Carlos Romero-Barcelo.
                            ADDITIONAL VIEWS

    While we appreciate the efforts of Chairman Goodling to 
provide services to the migrant and seasonal farmworkers 
through the inclusion of language in Title III of the bill, we 
are greatly concerned that the language both fails to ensure 
that migrant students would receive the same educational 
services now provided by HEP and CAMP and would create needless 
administrative problems. There are several problems with the 
language, which make it an unacceptable substitute for the 
current HEP-CAMP provisions under the Higher Education Act of 
1965.
    Providing funds for the Secretary of Labor to provide the 
Secretary of Education to make grants creates convoluted layers 
of bureaucracy for administering the programs. The transferring 
of funds from one Department to another is unnecessarily 
cumbersome, creating complexities where none exist and leading 
to new regulations from two Departments. The language goes 
against the objective of the Careers Act to streamline 
programs.
    The language allowing the transferring of funds back to the 
Department of Education indicates there is an accurate 
perception that HEP and CAMP are education, not labor programs. 
Therefore, it is illogical to include them in a Department of 
Labor training block grant.
    HEP and CAMP are extremely successful programs. Their 
effectiveness was documented in the final report of the 
National Commission on Migrant Education, titled, ``Invisible 
Children: A Portrait of Migrant Education in the United 
States.'' For example, the report credits CAMP with helping to 
``reverse some of the devastating effects of the migratory 
lifestyle that makes it difficult for migrant children to 
complete high school, much less college.'' The specific 
activities required under the HEP and CAMP programs are not 
delineated in the bill; thus, the language becomes meaningless 
and will not necessarily produce results similar to those 
demonstrated by existing HEP and CAMP programs.
    There is no evidence that the current academic-based models 
for HEP and CAMP would be maintained in an adult training 
environment. Traditional colleges and universities would have 
little incentive to compete for the new grants, if they believe 
them to be ``training'' programs authorized under the 
Department of Labor. It is already too tempting to ``track'' 
migrant youth into job training (non-academic) programs. 
Consolidating HEP and CAMP into a Department of Labor training 
program would only increase that tracking activity and deny 
needed academic opportunities to youth who are already severely 
disadvantaged.

                                   William L. Clay.
                                   Patsy T. Mink.
                                   Robert C. Scott.
                                   Matthew G. Martinez.
                                   Major R. Owens.
                                   Robert E. Andrews.
                                   Lynn Woolsey.
                                   Pat Williams.
                                   Carlos Romero-Barcelo.
                                   Eliot L. Engel.
                                   George Miller.
                                   Dale E. Kildee.
                                   Tom Sawyer.
                                   Jack Reed.
                                   Gene Green.
                 ADDITIONAL VIEWS BY JAMES C. GREENWOOD

    I strongly support H.R. 1617, the CAREERS Act. The United 
States currently has a fragmented workforce preparation 
program. H.R. 1617 addresses this problem by consolidating 
vocational education, adult education, vocational 
rehabilitation and job training programs into block grants to 
the states to allow for the development of creative and 
comprehensive workforce preparation programs designed to meet 
the needs of local communities.
    During the Committee's consideration of H.R. 1617, I missed 
several roll call votes due to a simultaneous mark-up in the 
House Commerce Committee, and my participation in the floor 
debate on the American Overseas Interests Act (H.R. 1561).
    Had I been present for roll call vote number one, 
Congressman Owens' amendment to delete Title V, the Vocational 
Rehabilitation Consolidation Grant, and insert a substitute, I 
would have voted ``No''. Had I been present for roll call vote 
number two, Congressman Green's amendment to delete Title V, 
the Vocational Rehabilitation Consolidation Grant, I would have 
voted ``No''. In both instances, I was voting in the House 
Commerce Committee on the Telecommunications Act of 1995 (H.R. 
1555).
    Had I been present for roll call vote number four, the 
Riggs/Roukema amendment to insert standards and accountability 
provisions in Title I, I would have voted ``Aye''. Had I been 
present on roll call vote number five, the Woolsey amendment to 
increase the authorization levels of the block grants contained 
in the bill, I would have voted ``No''. Had I been present for 
roll call vote number six, Congressman Becerra's amendment to 
remove ``in-school'' from the definition of ``at-risk'' in 
Title II, I would have voted ``No''. In each instance, I was 
detained on the House floor during consideration of the Morella 
Amendment to the Smith Amendment on the international family 
planning provisions contained in H.R. 1561, the American 
Overseas Interests Act.
    Had I been present for roll call vote number seven, to 
Report the bill, I would have voted ``Aye''. At the time, I was 
meeting with the Speaker of the House on health care issues.
    I believe this important legislation will enable the states 
and localities to create innovative workforce development 
systems that will enable people to gain the proper training and 
skills to get jobs that they will keep. If the United States is 
to remain competitive in the world market, we need to develop a 
comprehensive workforce training program that allows on-the-job 
training and placement services. I am confident that H.R. 1617, 
if enacted, will establish a workforce preparation system that 
will allow us to reduce the number of dislocated workers and 
people on welfare as well as keep our competitive edge in the 
international marketplace. I support H.R. 1617.
                                                James C. Greenwood.