[House Report 104-249]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    104-249
_______________________________________________________________________


            PROVIDING FOR THE CONSIDERATION OF H.R. 1617,
 
CONSOLIDATED AND REFORMED EDUCATION, EMPLOYMENT, AND REHABILITATION SYSTEMS

                          ACT (CAREER ACT)

                                _______


 September 18, 1995.--Referred to the House Calendar and ordered to be 
                                printed

_______________________________________________________________________


  Mrs. Waldholtz, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 222]

    The Committee on Rules, having had under consideration 
House Resolution 222, by a non-record vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

               BRIEF SUMMARY OF PROVISIONS OF RESOLUTION

    The resolution provides for the consideration of H.R. 1617, 
the ``CAREERS Act'' under an open rule. The rule provides one 
hour of general debate divided equally between the chairman and 
ranking minority member of the Committee on Economic and 
Educational Opportunities.
    The rule makes in order an amendment in the nature of a 
substitute as an original bill for purpose of amendment 
consisting of the text of H.R. 2332. The substitute shall be 
considered by title rather than by section, and the first six 
sections and each title shall be considered as read.
    The rule waives section 302(f) (prohibiting consideration 
of legislation providing new entitlement authority in excess of 
a committee's allocation) and section 401(b) (prohibiting 
consideration of legislation providing new entitlement 
authority which becomes effective during the fiscal year which 
ends in the calendar year in which the bill is reported) of the 
Congressional Budget Act and clause 5(a) of rule XXI 
(prohibiting appropriations in a legislative bill) against the 
committee amendment in the nature of a substitute.
    The rule also provides for the consideration of the 
(manager's) amendment printed in the Rules Committee report, 
which is considered as read, not subject to amendment or to a 
division of the question, and is debarable for 10 minutes 
equally divided between the proponent and an opponent. If 
adopted, the amendment is considered as part of the base text 
for further amendment purposes.
    Members who have pre-printed their amendments in the Record 
prior to their consideration will be given priority in 
recognition to offer their amendments if otherwise consistent 
with House rules. Finally, the rule provides for one motion to 
recommit, with or without instructions.

    Waivers Necessary for H.R. 1617, the Consolidated and Reformed 
  Education, Employment, and Rehabilitation Systems Act (CAREERS Act)

    Sec. 302(f), Budget Act: Waiver necessary because the 
original bill and the committee substitute provides new 
entitlement authority in excess of the committee's allocation. 
Sec. 702 of H.R. 2332 increases mandatory spending which 
breaches the Opportunities Committee's total mandatory 
spending. A portion of the savings achieved through Sec. 523 of 
H.R. 2332 is required to cover the increased costs in sec. 702.
    Sec. 401(b), Budget Act: Waiver necessary because Section 
205 of the committee bill and the committee substitute provides 
new entitlement authority which becomes effective during the 
fiscal year which ends in the calendar year in which the bill 
is reported. Sec. 702 of H.R. 2332 increases mandatory spending 
which breaches the Opportunities Committee's total mandatory 
spending. A portion of the savings achieved through Sec. 523 of 
H.R. 2332 is required to cover the increased costs in sec. 702.
    Clause 5(a), rule XXI: Waiver necessary because the 
committee substitute contains an appropriation in a legislative 
bill. Sec. 441e allows the Institute for Literacy to use cash 
donations directly, by passing the appropriations process.

Summary of provisions in Chairman's Floor Amendment

    1. Changes to the Connie Lee privatization language:
          Shortens the time the Secretary of Education has to 
        sell the government's Connie Lee stock to 6 months;
          Prohibits Sallie Mae from buying any new Connie Lee 
        stock until Sallie Mae has privatized;
          Prohibits Sallie Mae from participating in the 
        operation of Connie Lee except Sallie Mae maintains 
        representation on the Board of Connie Lee.
    2. Extends Sallie Mae phase-out by 2 years to comply with 
the 7 year budget agreement.
    3. Adds ``State entities'' to the list of the people that 
are part of the collaborative process to ensure that State 
Boards of Education can participate in the collaborative 
process.
    4. Adds State legislature representatives to the list of 
people who can participate in the collaborative process.
    5. Adds academic and vocational administrators, members of 
local school boards, principals, teachers, and postsecondary 
and other adult education administrators and instructors 
(including community colleges) to the list of education and job 
training individuals that can be nominated to serve on the 
local workforce development board.
    6. Adds language to Title II, the Youth Bloc, to ensure 
that the Title II Federal funds are used to ``supplement, not 
supplant'' State and local funds.
    7. Encourages private sector coordination and development 
of a nationwide system of labor exchange services to the 
public.
    8. Clarifies that the liability language only applies to 
the local workforce development board and not to in-school 
education programs or adult education programs.
    9. Strikes reference to the Secretary of Labor evaluating 
performance standards because there are no Federal performance 
standards.
    10. Changes percentage set-aside for Indians and Migrants 
in Adult Training programs from one-quarter of one percent to 
four percent.
    11. Strikes parent organizations from list of people who 
can participate in collaborative process and just allows 
parents.
    12. Strikes ``out-of-school'' from the definition of 
limited English proficient so that all youth are covered by 
this definition.
    13. Allows States to change the financial distribution 
within the State for vocational rehabilitation services if a 
State panel, appointed by the Governor, chooses to change such 
distribution. The members of this panel must represent a 
majority of individuals with disabilities from the private 
sector, the State Director of Vocational Rehabilitation and the 
State Director of Services for the Blind Service if applicable. 
The current distribution in the CAREERS Act is 80 percent to 
local workforce development boards and 20% held by the State. 
This panel could change that distribution.
    14. Technical changes to the Table of Contents and other 
technical amendments.
    15. Requires Connie Lee to repurchase the government's 
holding in Connie Lee at a price no greater than the stock's 
value as estimated by the Congressional Budget Office if the 
Secretary of the Treasury is not able to sell the stock on the 
open market.

  Amendment Made in Order by the Rule To Be Offered by Representative 
           Goodling or His Designee, Debatable for 10 Minutes

    Page 2, in the matter relating to section 108, strike 
``Education'' and insert ``education''.
    Page 2, in the matter relating to subtitle C, strike 
``Worker Rights'' and insert ``General Provisions''.
    Page 2, in the matter relating to section 141, strike 
``Requirements.'' and insert ``Worker rights.''.
    Page 2, after the matter relating to section 141, insert 
the following:

Sec. 142. Transferability.

    Page 2, strike the matter relating to section 224.
    Page 3, strike the matter relating to section 316.
    Page 3, strike the matter relating to section 434.
    Page 4, in the matter relating to section 702, strike 
``Amendment to Higher Education Act'' and insert ``Eligible 
institutions.''.
    Page 18, line 15, strike ``out-of-school''.
    Page 30, beginning on line 20, strike ``organization 
representing parents''.
    Page 31, line 1, insert ``and entity'' after ``agency''.
    Page 31, after line 22, insert the following:
                  (H) the State entity responsible for setting 
                education policies, consistent with State law, 
                on the date preceding the date of the enactment 
                of this Act.
          (3) representatives of the State legislature.
    Page 32, after line 24, add the following:
          (3) Disagreement.--The Governor shall accept and 
        include with the State plan submitted under section 
        104, 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.
    Page 36, strike lines 8 through 13.
    Page 36, line 14, strike ``(d)'' and insert ``(c)''.
    Page 38, after ``including'' insert ``academic and 
vocational administrators, members of local schools boards, 
principals, teachers, postsecondary and other adult education 
administrators and instructors, including community 
colleges,''.
    Page 62, line 3, strike ``customer'' and insert ``the''.
    Page 63, line 1, strike ``will measure'' and insert ``must 
demonstrate''.
    Page 63, beginning on line 18, strike ``appropriate'' and 
all that follows through ``among'' on line 19.
    Page 71, line 2, insert ``by the Secretary of Labor or the 
Secretary of Education, as the case may be,'' after 
``disallowed''.
    Page 71, line 4, strike ``this Act'' and insert ``chapter 2 
of title II, title III,''.
    Page 71, line 5, strike ``the'' and insert ``such chapter 
or title''.
    Page 72, line 25, strike the semicolon and insert ``, 
which, to the extent practicable, shall be done through the 
private sector;''.
    Page 88, line 3, strike ``elected''.
    Page 89, line 19, strike ``Provision'' and insert 
``Provisions''.
    Page 92, beginning on line 1, strike ``skills'' and all 
that follows through line 3 and insert ``foundation and 
occupational skills needed to be successful in a competitive 
economy and to complete a high school diploma or general 
equivalency diploma;''.
    Page 99, after line 20, insert the following (and 
redesignate any subsequent paragraphs accordingly):
          (4) Federal funds to supplement, not supplant, non-
        federal funds.--Funds received under this title shall 
        be used only to supplement the amount of funds that 
        would, in the absence of such Federal funds, be made 
        available from non-Federal sources for the education of 
        youth participating in programs assisted under this 
        title, and not to supplant such funds.
    Page 139, line 15, insert ``media'' before ``technology''.
    Page 140, line 25, insert ``and'' after the semicolon.
    Page 141, strike lines 1 and 2.
    Page 141, line 3, strike ``(iii)'' and insert ``(ii)''.
    Page 148, line 8, strike ``one quarter of one'' and insert 
``4''.
    Page 149, line 21, strike ``one quarter of one'' and insert 
``4''.
    Page 222, strike line 10 and all that follows through page 
225, line 13, and insert the following (and conform the table 
of contents on page 226, after line 14):

``SEC. 108. STATE OPTION REGARDING ALTERNATIVE DELIVERY SYSTEMS.

    ``(a) In General.--In the case of the requirements referred 
to in subsection (b), a State may, in its discretion, elect to 
use alternative approaches for the implementation of any of the 
requirements if (subject to the other provisions of this 
section) the following conditions are met:
          ``(1) The Governor appoints a board to develop a 
        proposed plan for the alternative approaches.
          ``(2) Individuals with disabilities who are not State 
        officials or employees constitute a majority of the 
        members of such board.
          ``(3) The membership of the board includes--
                  ``(A) each State administrative agent 
                designated pursuant to section 103(a); and
                  ``(B) one or more individuals from private 
                industry.
          ``(4) The State provides that the alternative 
        approaches will be implemented in accordance with the 
        plan developed by the board.
          ``(5) In the development of the plan, the public is 
        afforded a reasonable opportunity to comment on the 
        proposed alternative approaches.
          ``(6) The Governor submits to the Secretary a notice 
        that the State is electing to use alternative 
        approaches, and the notice is submitted to the 
        Secretary not later than 60 days before the beginning 
        of the first fiscal year to which the election applies.
    ``(b) Alternatives Regarding State Administrative Structure 
for Delivery of Services.--For purposes of subsection (a), a 
State may elect to implement alternative approaches to 
requirements in accordance with the following:
          ``(1) The allocation under section 102(a) (allocating 
        amounts between State administrative agents and local 
        workforce development boards) is in the discretion of 
        the State, except that not more than 80 percent of a 
        grant under section 101(a) for a fiscal year may be 
        reserved for activities of local workforce development 
        boards.
          ``(2) With respect to the requirements established in 
        sections 103 and 104, the allocation between State 
        administrative agents and local workforce development 
        boards of responsibilities for carrying out the 
        requirements is in the discretion of the State.
          ``(3) The selection of State officials who are to 
        administer the requirements of section 103 is in the 
        discretion of the State.
    ``(c) Review and Revision of Alternative Approach.--An 
election under subsection (a) ceases to be effective after the 
third fiscal year of being in effect unless, during such third 
year, the plan under the election is reviewed. The plan may be 
reviewed and revised annually. This section applies to the 
review and revision of the plan to the same extent and in the 
same manner as this section applies to an original plan under 
subsection (a).
    ``(d) Performance Accountability System.--An election under 
subsection (a) for a State does not, with respect to carrying 
out the program under this title in the State, affect the 
applicability to the State of section 110 of the Consolidated 
and Reformed Education, Employment, and Rehabilitation Systems 
Act.''.
    Page 236, line 10, strike ``2003'' and insert ``2005''.
    At each of the following locations, strike ``2007'' and 
insert ``2009'': Page 237, line 16; page 242, line 21; page 
243, line 19; and page 249, line 4.
    Page 255, after line 21, insert the following new 
paragraph:
          (3) Limitation on ownership of stock.--Except as 
        provided in subsection (d)(2) of this section, no stock 
        of the Corporation may be sold or issued to an agency, 
        instrumentality, or establishment of the United States 
        Government, to a Government corporation or a Government 
        controlled corporation (as such terms are defined in 
        section 103 of title 5, United States Code), or to a 
        Government sponsored enterprise (as such term is 
        defined in section 622 of title 2, United States Code). 
        The Student Loan Marketing Association shall not own 
        any stock of the Corporation, except that it may retain 
        the stock it owns on the date of enactment. The Student 
        Loan Marketing Association shall not control the 
        operation of the Corporation, except that the Student 
        Loan Marketing Association may participate in the 
        election of directors as a shareholder, and may 
        continue to exercise its right to appoint directors 
        under section 754 of the Higher Education Act of 1965 
        as long as that section is in effect. The Student Loan 
        Marketing Association shall not provide financial 
        support or guarantees to the Corporation. 
        Notwithstanding the prohibitions in this subsection, 
        the United States may pursue any remedy against a 
        holder of the Corporation's stock to which it would 
        otherwise be entitled.
    Page 258, beginning on line 8, strike ``, upon request of 
the Secretary of Education''.
    Page 258, lines 11 and 16, strike ``voting common''.
    Page 258, beginning on line 12, strike ``one year'' and 
insert ``6 months''.
    Page 258, beginning on line 18, strike ``within'' and all 
that follows through ``shall purchase'' on line 20 and insert 
``, the Corporation shall purchase, within the period specified 
in paragraph (1),''.
    Page 258, line 23, insert after ``financial firms'' the 
following: ``, however such price shall not exceed the value of 
the Secretary's stock as determined by the Congressional Budget 
Office in House Report 104-153 dated June 22, 1995''.

                                
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