[House Report 105-93]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-93
_______________________________________________________________________


 
       EMPLOYMENT, TRAINING, AND LITERACY ENHANCEMENT ACT OF 1997


                               ----------                              

                              R E P O R T

                                 of the

                              COMMITTEE ON
                      EDUCATION AND THE WORKFORCE
                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 1385

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]




  May 8, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed



       EMPLOYMENT, TRAINING, AND LITERACY ENHANCEMENT ACT OF 1997



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-93
_______________________________________________________________________


       EMPLOYMENT, TRAINING, AND LITERACY ENHANCEMENT ACT OF 1997


                               __________

                              R E P O R T

                                 of the

                              COMMITTEE ON

                      EDUCATION AND THE WORKFORCE

                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 1385

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]




  May 8, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-93
_______________________________________________________________________


       EMPLOYMENT, TRAINING, AND LITERACY ENHANCEMENT ACT OF 1997

                                _______
                                

  May 8, 1997.--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 Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                        [To accompany H.R. 1385]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 1385) to consolidate, coordinate, and 
improve employment, training, literacy, and vocational 
rehabilitation programs in the United States, 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 ``Employment, Training, and Literacy 
Enhancement Act of 1997''.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

  (a) Divisions.--This Act is organized into two divisions as follows:
          (1) Division A--Employment, Training, and Literacy Programs.
          (2) Division B--Vocational Rehabilitation Programs.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.

        DIVISION A--EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS

   TITLE I--AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM REQUIREMENTS

                     Subtitle A--General Provisions

Sec. 101. Statement of purpose.
Sec. 102. Authorization of appropriations.
Sec. 103. Definitions.

         Subtitle B--State and Local Administrative Provisions

Sec. 111. State administrative provisions.
Sec. 112. Local administrative provisions.

               Subtitle C--Program and Fiscal Provisions

                     Chapter 1--General Provisions

Sec. 121. General program requirements.
Sec. 122. Benefits.
Sec. 123. Labor standards.
Sec. 124. Grievance procedure.
Sec. 125. Identification of additional imposed requirements.
Sec. 126. Authority of State legislature.
Sec. 127. Interstate agreements.

            Chapter 2--Performance Accountability Provisions

Sec. 131. Performance accountability provisions.

                      Chapter 3--Other Provisions

Sec. 141. Prompt allocation of funds.
Sec. 142. Fiscal controls; sanctions.
Sec. 143. Reports; recordkeeping; and investigations.
Sec. 144. Administrative adjudication.
Sec. 145. Nondiscrimination.
Sec. 146. Judicial review.
Sec. 147. Administrative provisions.
Sec. 148. Presidential awards for outstanding private sector 
involvement in job training programs.
Sec. 149. Construction.
Sec. 150. Limitation on certain costs.

                  Subtitle D--Miscellaneous Provisions

Sec. 161. Criminal provisions.
Sec. 162. Reference.
Sec. 163. Repealers.

     TITLE II--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR 
                          DISADVANTAGED YOUTH

Sec. 201. Adult training program.
Sec. 202. Summer youth employment and training program.
Sec. 203. Disadvantaged youth employment and training opportunities 
grants.

  TITLE III--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR ADULTS

Sec. 301. Adult employment and training opportunities grants.

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

 Subtitle A--Employment and Training Programs for Native Americans and 
                    Migrant and Seasonal Farmworkers

Sec. 401. Native American program.
Sec. 402. Migrant and seasonal farmworker program.

                         Subtitle B--Job Corps

Sec. 411. Statement of purpose.
Sec. 412. Individuals eligible for the Job Corps.
Sec. 413. Screening and selection of applicants; general provisions.
Sec. 414. Job Corps centers.
Sec. 415. Standards of conduct.
Sec. 416. Counseling and job placement.
Sec. 417. Experimental and developmental projects and coordination with 
other programs.

                    Subtitle C--National Activities

Sec. 421. Research, demonstration, evaluation, and capacity building.
Sec. 422. Nontraditional employment demonstration program.

                         Subtitle D--Repealers

Sec. 451. Repealers.

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

Sec. 501. Repeal of Jobs for Employable Dependent Individuals Incentive 
Bonus Program.
Sec. 502. Amendment to Adult Education Act.
Sec. 503. Repeal of National Literacy Act of 1991.
Sec. 504. Conforming amendments.

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Repealers.
Sec. 602. Conforming amendments.

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

Sec. 701. Amendments to Council.
Sec. 702. Transfer of Council.
Sec. 703. Conforming amendments.

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

Sec. 801. Definitions.
Sec. 802. Functions.
Sec. 803. Designation of State agencies.
Sec. 804. Appropriations.
Sec. 805. Disposition of allotted funds.
Sec. 806. State plans.
Sec. 807. Federal advisory council.
Sec. 808. Regulations.
Sec. 809. Effective date.

             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

       Subtitle A--Amendments to the Job Training Partnership Act

Sec. 901. Short title; table of contents.
Sec. 902. Definitions.
Sec. 903. Amendments to title I.
Sec. 904. Amendments to title IV.
Sec. 905. Amendments to title VI.
Sec. 906. Clarification.

                  Subtitle B--Amendments to Other Acts

Sec. 911. Amendments to other Acts.

           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

Sec. 1001. Effective date.
Sec. 1002. Transition provisions.

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

              TITLE XXI--AMENDMENTS TO GENERAL PROVISIONS

Sec. 2101. Rehabilitation Services Administration.
Sec. 2102. Definitions.
Sec. 2103. Reports.

      TITLE XXII--AMENDMENTS TO VOCATIONAL REHABILITATION SERVICES

                     Subtitle A--General Provisions

Sec. 2201. Declaration of policy; authorization of appropriations.
Sec. 2202. State plans.
Sec. 2203. Scope of vocational rehabilitation services.
Sec. 2204. State Rehabilitation Advisory Council.
Sec. 2205. Evaluation standards and performance indicators.
Sec. 2206. Monitoring and review.

          Subtitle B--Basic Vocational Rehabilitation Services

Sec. 2211. State allotments.
Sec. 2212. Payments to States.
Sec. 2213. Client assistance program.

            TITLE XXIII--AMENDMENTS TO RESEARCH AND TRAINING

Sec. 2221. Authorization of appropriations.
Sec. 2222. National Institute on Disability and Rehabilitation 
Research.

     TITLE XXIV--AMENDMENTS TO TRAINING AND DEMONSTRATION PROJECTS

  Subtitle A--Training Programs and Community Rehabilitation Programs

Sec. 2231. Training.
Sec. 2232. Repealers.
Sec. 2233. Authorization of appropriations.

        Subtitle B--Special Projects and Supplementary Services

Sec. 2241. Special demonstration programs.
Sec. 2242. Migratory workers.
Sec. 2243. Repealers.
Sec. 2244. Special recreational programs.

        TITLE XXV--AMENDMENTS TO NATIONAL COUNCIL ON DISABILITY

Sec. 2251. Authorization of appropriations.

             TITLE XXVI--AMENDMENTS TO RIGHTS AND ADVOCACY

Sec. 2261. Employment of individuals with disabilities.
Sec. 2262. Architectural and Transportation Barriers Compliance Board.
Sec. 2263. Protection and advocacy of individual rights.

  TITLE XXVII--AMENDMENTS TO EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS 
                           WITH DISABILITIES

Sec. 2271. Authorization of appropriations.
Sec. 2272. Repealers.

TITLE XXVIII--AMENDMENTS TO INDEPENDENT LIVING SERVICES AND CENTERS FOR 
                           INDEPENDENT LIVING

Sec. 2281. Authorization of appropriations.
Sec. 2282. Program authorization for centers for independent living.

 TITLE XXIX--AMENDMENTS TO SPECIAL DEMONSTRATIONS AND TRAINING PROJECTS

Sec. 2291. Authorization of appropriations.
Sec. 2292. Demonstration activities.
Sec. 2293. Training activities.

     TITLE XXX--AMENDMENTS TO THE HELEN KELLER NATIONAL CENTER ACT

Sec. 2295. Authorization of appropriations.

                       TITLE XXXI--EFFECTIVE DATE

Sec. 2297. Effective date.

        DIVISION A--EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS

   TITLE I--AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM REQUIREMENTS

                     Subtitle A--General Provisions

SEC. 101. STATEMENT OF PURPOSE.

  Section 2 of the Job Training Partnership Act (29 U.S.C. 1501) is 
amended to read as follows:

``SEC. 2. STATEMENT OF PURPOSE.

  ``The purpose of this Act is to transform the current array of 
Federal employment, training, and adult education and literacy programs 
from a collection of fragmented and duplicative categorical programs 
into high quality, coherent, and accountable State and local systems 
that are designed--
          ``(1) to provide high quality training for today and for the 
        21st century;
          ``(2) to empower individuals to choose occupations and 
        training programs, based on accurate and up-to-date 
        information, that will develop more fully their academic, 
        occupational, and literacy skills, leading to productive 
        employment and economic self-sufficiency, and reduction in 
        welfare dependency;
          ``(3) to provide resources and authority to States and local 
        communities and increase ease of access to high quality 
        employment, training, and literacy programs;
          ``(4) to provide adults with the adult education services 
        they require to participate fully in society;
          ``(5) to meet the needs of employers in the United States to 
        be competitive; and
          ``(6) to ensure an adequate return on the investment of funds 
        in employment, training, and literacy programs through strong 
        program accountability.''.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

  Section 3 of the Job Training Partnership Act (29 U.S.C. 1502) is 
amended to read as follows:

``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) In General.--There are authorized to be appropriated the 
following amounts for the following purposes (in addition to amounts 
otherwise available for such purposes):
          ``(1) Title ii.--Such sums as may be necessary for each of 
        the fiscal years 1999 through 2003 to carry out title II.
          ``(2) Title iii.--(A) Such sums as may be necessary for each 
        of the fiscal years 1999 through 2003 to carry out section 
        312(a)(1).
          ``(B) Such sums as may be necessary for each of the fiscal 
        years 1999 through 2003 to carry out section 312(a)(2).
          ``(3) Parts a, c, d, and e of title iv.--Subject to 
        subsection (b), such sums as may be necessary for each of the 
        fiscal years 1999 through 2003 to carry out parts A, C, D, and 
        E of title IV.
          ``(4) Part b of title iv.--Such sums as may be necessary for 
        each of the fiscal years 1999 through 2003 to carry out part B 
        of title IV.
  ``(b) Reservations.--Of the amount appropriated under subsection 
(a)(3) for a fiscal year--
          ``(1) not less than $70,000,000 shall be reserved for 
        carrying out section 401;
          ``(2) not less than $70,000,000 shall be reserved for 
        carrying out section 402; and
          ``(3) the remainder shall be reserved for carrying out parts 
        C, D, and E of title IV.
  ``(c) Reallotment.--
          ``(1) In general.--The Secretary of Labor shall, in 
        accordance with this subsection, reallot to eligible States 
        amounts appropriated for programs authorized under titles II 
        and title III of this Act 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 title II or title III, respectively, at the end 
        of the program year prior to the program year for which the 
        determination under this paragraph is made exceeds 15 percent 
        of such allotment for the prior program year.
          ``(3) Reallotment.--In making reallotments to eligible States 
        of amounts available pursuant to paragraph (2) for a program 
        year, the Secretary shall allot to each eligible State an 
        amount based on the relative amount allotted to such State 
        under title II or title III, respectively, for the prior 
        program year as compared to the total amount allotted to all 
        eligible States under title II or title III, respectively, for 
        such prior program year.
          ``(4) Eligibility.--For purposes of this subsection, an 
        eligible State means a State which has obligated at least 85 
        percent of its allotments under title II or title III, 
        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 workforce 
        development 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 
        workforce development areas in the event that a State is 
        required to make funds available for reallotment under this 
        paragraph.''.

SEC. 103. DEFINITIONS.

  Section 4 of the Job Training Partnership Act (29 U.S.C. 1503) is 
amended--
          (1) in paragraph (1) to read as follows:
          ``(1) Adult education and literacy activities.--The term 
        `adult education and literacy activities' means the activities 
        authorized under section 314 of the Adult Education and Family 
        Literacy Act.'';
          (2) by striking paragraph (2);
          (3) by inserting after paragraph (1) the following:
          ``(2) Appropriate secretary.--The term `appropriate 
        Secretary' means--
                  ``(A) the Secretary of Labor, with respect to 
                programs authorized under titles II, III, and IV of 
                this Act; and
                  ``(B) the Secretary of Education, with respect to 
                programs authorized under the Adult Education and 
                Family Literacy Act.'';
          (4) in paragraph (3), by striking ``under parts A and C of 
        title II'' and inserting ``under title II and title III'';
          (5) in paragraph (4) to read as follows:
          ``(4) 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.'';
          (6) in paragraph (5) to read as follows:
          ``(5) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization that 
        is representative of a community or a significant segment of a 
        community and that has demonstrated the ability, or that can 
        demonstrate a capacity, to effectively administer a program 
        under this Act.'';
          (7) by striking paragraph (6);
          (8) by inserting after paragraph (5) the following:
          ``(6) Dislocated worker.--The term `dislocated worker' means 
        an individual who--
                  ``(A)(i) has been terminated or laid off, or who has 
                received a notice of termination or layoff, from 
                employment;
                  ``(ii) is eligible for or has exhausted entitlement 
                to unemployment compensation; and
                  ``(iii) is unlikely to return to a previous industry 
                or occupation;
                  ``(B) has been terminated or laid off, or has 
                received a notice of termination or layoff, from 
                employment as a result of any permanent closure of, or 
                and substantial layoff at, a plant, facility, or 
                enterprise;
                  ``(C) was self-employed (including a farmer and a 
                rancher) but is unemployed as a result of general 
                economic conditions in the community in which the 
                individual resides or because of natural disasters;
                  ``(D) is a displaced homemaker; or
                  ``(E) has become unemployed as a result of a Federal 
                action that limits the use of, or restricts access to, 
                a marine natural resource.'';
          (9) in paragraph (10) to read as follows:
          ``(10) Individual with a disability.--(A) The term 
        `individual with a disability' means an individual with any 
        disability (as defined in section 3 of the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12102)).
          ``(B) The term `individuals with disabilities' means more 
        than one individual with a disability.'';
          (10) by striking paragraph (11);
          (11) in paragraph (14), by striking ``section 521(22) of the 
        Carl D. Perkins Vocational Education Act'' and inserting 
        ``section 14101 of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 8801)'';
          (12) in paragraph (18), by striking all after ``institution 
        of higher education'' and inserting ``(as such term is defined 
        in section 481 of the Higher Education Act of 1965 (20 U.S.C. 
        1088)) that continues to meet the eligibility and certification 
        requirements under title IV of such Act (20 U.S.C. 1070 et 
        seq.).'';
          (13) by striking paragraph (19);
          (14) in paragraph (21) to read as follows:
          ``(21) Secretaries.--The term `Secretaries' means the 
        Secretary of Labor and the Secretary of Education.'';
          (15) in paragraph (22) to read as follows:
          ``(22) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.'';
          (16) in paragraph (24) to read as follows:
          ``(24) Supportive services.--The term `supportive services' 
        means services such as transportation, child care, dependent 
        care, and needs-based payments, that are necessary to enable an 
        individual to participate in programs authorized under title II 
        and title III of this Act, consistent with the provisions of 
        such titles.'';
          (17) in paragraph (27) to read as follows:
          ``(27) Veteran.--The term `veteran' has the meaning given 
        such term in section 101(2) of title 38, United States Code.'';
          (18) by striking paragraph (35);
          (19) by striking paragraph (36);
          (20) in paragraph (37), by striking ``post-termination 
        services authorized under sections 204(c)(4) and 264(d)(5) and 
        follow up services authorized under section 253(d)'' and 
        inserting ``follow up services authorized under this Act''; and
          (21) by adding at the end the following:
          ``(41) Employment, training and literacy programs.--The term 
        `employment, training and literacy programs' means programs 
        authorized under titles II and III of this Act and the Adult 
        Education and Family Literacy Act.
          ``(42) English literacy program.--The term `English literacy 
        program' means a program of instruction designed to help 
        individuals of limited English proficiency achieve full 
        competence in the English language.
          ``(43) Family literacy services.--The term `family literacy 
        services' means services that are of sufficient intensity in 
        terms of hours, and of sufficient duration, to make sustainable 
        changes in a family and that integrate all of the following 
        activities:
                  ``(A) Interactive literacy activities between parents 
                and their children.
                  ``(B) Training for parents on how to be the primary 
                teacher for their children and full partners in the 
                education of their children.
                  ``(C) Parent literacy training that leads to economic 
                self-sufficiency.
                  ``(D) An age-appropriate education to prepare 
                children for success in school and life experiences.
          ``(44) Full service eligible providers.--The term `full 
        service eligible provider' means a provider designated under 
        section 123(c).
          ``(45) Human resource programs.--The term `human resource 
        programs' means programs identified under section 103.
          ``(46) Individual of limited english proficiency.--The term 
        `individual of limited English proficiency' means an 
        individual--
                  ``(A) who has limited ability in speaking, reading, 
                or writing the English language; and
                  ``(B)(i) whose native language is a language other 
                than English; or
                  ``(ii) who lives in a family or community environment 
                where a language other that English is the dominant 
                language.
          ``(47) Literacy.--The term `literacy' used with respect to an 
        individual, means the ability of the individual to speak, read, 
        and write English, and compute and solve problems, at levels of 
        proficiency necessary--
                  ``(A) to function on the job, in the family of the 
                individual, and in society;
                  ``(B) to achieve the goals of the individual; and
                  ``(C) to develop the knowledge potential of the 
                individual.
          ``(48) Local benchmarks.--The term `local benchmarks' means 
        the expected level of performance of a local workforce 
        development area established pursuant to section 153(b).
          ``(49) Local board.--The term `local board' means a local 
        workforce development board established under section 122.
          ``(50) Local workforce development area.--The term `local 
        workforce development area' means an area designated under 
        section 121(a).
          ``(51) On-the-job training.--The term `on-the-job training' 
        means training by an employer that is provided to a paid 
        participant while engaged in productive work in a job that--
                  ``(A) provides knowledge or skills essential to the 
                full and adequate performance of the job;
                  ``(B) provides reimbursement to employers of up to 50 
                percent of the wage rate of the participant, for the 
                extraordinary costs of providing the training and 
                additional supervision related to the training; and
                  ``(C) is limited in duration as appropriate to the 
                occupation for which the participant is being trained, 
                taking into account the content of the training, the 
                prior work experience of the participant, and the 
                service strategy of the participant, as appropriate.
          ``(52) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.
          ``(53) Rapid response assistance.--The term `rapid response 
        assistance' means assistance provided by a State, or by an 
        entity designated by a State, with funds provided by the State 
        under section 313(a)(2) in the case of a permanent closure or 
        mass layoff at a plant, facility, or enterprise, or a natural 
        or other disaster, that results in mass job dislocation, in 
        order to assist dislocated workers in obtaining reemployment as 
        soon as possible, with services including--
                  ``(A) the establishment of onsite contact with 
                employers and employee representatives--
                          ``(i) immediately after the State is notified 
                        of a current or projected permanent closure or 
                        mass layoff; or
                          ``(ii) in the case of a disaster, immediately 
                        after the State is made aware of mass job 
                        dislocation as a result of such disaster;
                  ``(B) the provision of information and access to 
                available employment and training activities;
                  ``(C) assistance in establishing voluntary labor 
                management committees with the ability to devise and 
                implement a strategy for assessing the employment and 
                training needs of dislocated workers and obtaining 
                services to meet those needs;
                  ``(D) the provision of emergency assistance adapted 
                to the particular closure, layoff, or disaster; and
                  ``(E) the provision of assistance to the local 
                community in developing a coordinated response and in 
                obtaining access to State economic development 
                assistance.
          ``(54) Representatives of employees.--For purposes of section 
        122, the term `representatives of employees' means--
                  ``(A) individuals who have been elected by 
                organizations, associations, or a network of similar 
                institutions to represent the economic interests of 
                employees at a significant segment of workplaces 
                located in, or adjacent to, the local workforce 
                development area; or
                  ``(B) individuals from organizations, associations, 
                or a network of similar institutions, with expertise to 
                represent, or experience representing, the interests of 
                employees with respect to the job training priorities 
                in the local workforce development area.
          ``(55) Skill grant.--The term `skill grant' means a voucher 
        or credit issued to a participant under section 314(c)(6)(A) 
        for the purchase of training services from eligible providers 
        of such services.
          ``(56) State adjusted benchmarks.--The term `state adjusted 
        benchmarks' means a state's expected levels of performance 
        established pursuant to 153(a).
          ``(57) State benchmark.--The term `State benchmark' means the 
        benchmarks established by the state pursuant to section 152(a).
          ``(58) Statewide system.--The term `statewide system' means a 
        statewide employment and training and literacy system that 
        includes programs authorized under titles II and III of this 
        Act and the Adult Education and Family Literacy Act.''.

         Subtitle B--State and Local Administrative Provisions

SEC. 111. STATE ADMINISTRATIVE PROVISIONS.

  Part A of title I of the Job Training Partnership Act (29 U.S.C. 1511 
et seq.) is amended to read as follows:

               ``PART A--STATE ADMINISTRATIVE PROVISIONS

``SEC. 101. STATE PLAN.

  ``(a) In General.--For a State to be eligible to receive an allotment 
under title II or III, the Adult Education and Family Literacy Act, or 
section 6 of the Wagner-Peyser Act (29 U.S.C. 49e), the Governor of the 
State shall submit to Secretaries, for consideration by the appropriate 
Secretary, a single comprehensive State plan that provides a 3-year 
strategy and policy guidance with respect to the Statewide system, and 
programs authorized under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), 
operated in the State. Such plan shall meet the requirements of this 
section and section 102.
  ``(b) Contents.--The State plan shall include the following:
          ``(1) A description of the collaborative process described in 
        section 102, including a description of the manner in which the 
        individuals and entities involved in such process collaborated 
        in the development of the plan and will continue to collaborate 
        in carrying out the functions described in section 102(c).
          ``(2) Information describing--
                  ``(A) the needs of the State with regard to current 
                and projected demands for workers, by occupation;
                  ``(B) the skills and economic development needs of 
                the State; and
                  ``(C) the type and availability of employment and 
                training services in the State.
          ``(3)(A) A description of the State long-term goals for the 
        Statewide system.
          ``(B) An identification of the benchmarks that the State will 
        use to measure its progress toward meeting the goals described 
        in subparagraph (A) based on the core indicators of performance 
        described in section 154.
          ``(C) A description of how the goals and benchmarks will 
        ensure continuous improvement of the Statewide system and make 
        such system relevant and responsive to labor market, skill, and 
        literacy needs at the State and local levels.
          ``(4) An identification of local workforce development areas 
        in the State, including a description of the process used for 
        the designation of such areas.
          ``(5) An identification of criteria to be used by local chief 
        elected officials for the appointment of members of local 
        workforce development boards, consistent with the provisions of 
        section 122.
          ``(6)(A) A description of measures that will be taken by the 
        State to assure coordination and consistency and avoid 
        duplication among employment, training, and literacy programs 
        receiving assistance under this Act, and, at a minimum, 
        programs carried out under the Wagner-Peyser Act (29 U.S.C. 49 
        et seq.), the Rehabilitation Act of 1973 (20 U.S.C. 701 et 
        seq.), title I of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996, and programs carried 
        out by the Veterans' Employment and Training Service with funds 
        received under section 4103 of title 38, United States Code, 
        including a description of common data collection and reporting 
        processes.
          ``(B) Information identifying how any funds that a State 
        receives through the allotments made under this Act will be 
        leveraged with other private and public resources (including 
        funds made available to the State under the Wagner-Peyser Act 
        (29 U.S.C. 49 et seq.)) and other human resource programs to 
        maximize the effectiveness of such resources, and expand the 
        participation of business, industry, employees, and individuals 
        in the Statewide system.
          ``(7) A description of the process used by the State to 
        provide an opportunity for public comment, and input into 
        development of the plan, prior to submission of the plan.
          ``(8) A description of the within-State allocation formulas 
        developed through the collaborative process pursuant to 
        sections 204(b)(2) and 313(b), through which the State will 
        distribute funds to local workforce development areas, 
        including--
                  ``(A) a description of how the individuals and 
                entities involved in the collaborative process, 
                including representatives of the State legislature, 
                determined the factors for such formulas;
                  ``(B) a description of how such individuals and 
                entities consulted with chief elected officials in 
                local workforce development areas throughout the State 
                in determining such formulas; and
                  ``(C) assurances that such formulas will result in 
                funds being distributed equitably throughout the State, 
                that no one factor in such formulas receive 
                disproportionate weighting, and that such formulas 
                protect local workforce development areas from 
                significant shifts in funding from year to year.
          ``(9) With respect to employment and training programs for 
        disadvantaged youth authorized under title II, information 
        describing the State's strategy for providing comprehensive 
        services to disadvantaged youth, particularly those youth who 
        are recognized as having significant barriers to employment, 
        and a description of how the State intends to use its State 
        reserve funds (described in section 204(a)) to serve areas in 
        the State with high concentrations of disadvantaged youth.
          ``(10) With respect to employment and training programs for 
        adults and dislocated workers authorized under title III, 
        information--
                  ``(A) describing the employment and training 
                activities that will be carried out with the funds 
                received by the State through the allotments made under 
                section 312, including a description of how the State 
                will provide rapid response assistance to dislocated 
                workers from funds reserved under section 313(a)(2);
                  ``(B) describing the strategy of the State (including 
                the timeframe for such strategy) for development of a 
                fully operational statewide full service employment and 
                training delivery system as described in section 123, 
                including the steps that the State will take over the 3 
                years covered by the plan, working with local workforce 
                development boards, to provide information to 
                individuals through the full service employment and 
                training delivery system on the quality of employment, 
                training, and literacy services;
                  ``(C) describing the procedures the State will use, 
                working with local workforce development boards, to 
                identify eligible providers of training services 
                described in section 314(c), as required under section 
                124; and
                  ``(D) describing how the State will serve the 
                employment and training needs of dislocated workers 
                (including displaced homemakers), economically 
                disadvantaged individuals (including welfare 
                recipients), individuals training for nontraditional 
                employment, and other individuals with multiple 
                barriers to employment (including older workers and 
                individuals with disabilities).
          ``(11) With respect to adult education and literacy 
        activities authorized under part A of the Adult Education and 
        Family Literacy Act--
                  ``(A) a description of the adult education and 
                literacy activities that will be carried out with any 
                funds received such part;
                  ``(B) a description of the assessment that will be 
                made to determine the adult education and family 
                literacy needs of the State;
                  ``(C) a description of how such activities will be 
                integrated with other adult education, career 
                development, and employment and training activities in 
                the State or outlying area of the eligible agency;
                  ``(D) a description of how the eligible agency 
                annually will evaluate the effectiveness of the adult 
                education and literacy activities that are carried out 
                with any funds received under such part;
                  ``(E) an assurance that any funds received under such 
                part will not be expended for any purpose other than 
                the activities described in sections 313 and 314 of the 
                Adult Education and Family Literacy Act;
                  ``(F) an assurance that the eligible agency will 
                expend any funds received under such part only in a 
                manner consistent with the fiscal requirements in 
                section 315 of such Act;
                  ``(G) an assurance that the eligible agency will 
                award grants under such part to providers who offer 
                flexible schedules and necessary support services (such 
                as child care and transportation) to enable 
                individuals, including individuals with disabilities or 
                other special needs to participate in adult education 
                and literacy activities; and
                  ``(H) a description of the steps the State will take 
                to ensure direct and equitable access, as stipulated in 
                section 313(c)(2) of the Adult Education and Family 
                Literacy Act.
          ``(12) With respect to programs authorized under the Wagner-
        Peyser Act (29 U.S.C. 49 et seq.), the plan information 
        required under section 8 of such Act.
  ``(c) Plan Submission.--A State plan submitted to the Secretaries 
under this section shall be approved by the appropriate Secretary 
unless such Secretary determines that such plan does not comply with 
the specific provisions of this Act.
  ``(d) Special Rules.--
          ``(1) Governor.--The Governor of a State shall have final 
        authority to determine the content of the portion of the State 
        plan described in paragraphs (1) through (10) and paragraph 
        (12) of subsection (b).
          ``(2) Eligible agency.--The eligible agency for adult 
        education and literacy in a State shall have final authority to 
        determine the content of the portion of the State plan 
        described in paragraph (11) of subsection (b).
  ``(e) Modifications to Plan.--A State may submit modifications to a 
State plan in accordance with the requirements of this section and 
section 102 as necessary during the 3-year period covered by the plan.

``SEC. 102. COLLABORATIVE PROCESS.

  ``(a) In General.--A State shall use a collaborative process in the 
development of the State plan described in section 101 and in carrying 
out the functions described under subsection (c). Such collaborative 
process shall be carried out by, at a minimum, the following 
individuals and entities:
          ``(1) the Governor;
          ``(2) representatives, appointed by the Governor, of--
                  ``(A) business and industry;
                  ``(B) local chief elected officials (representing 
                both cities and counties, where appropriate);
                  ``(C) local educational agencies (including adult 
                education and literacy providers);
                  ``(D) postsecondary institutions (including community 
                and technical colleges);
                  ``(E) organizations representing individuals served 
                by programs authorized under this Act (including 
                community-based organizations);
                  ``(F) organizations serving individuals participating 
                in programs authorized under this Act and the Adult 
                Education and Family Literacy Act;
                  ``(G) parents; and
                  ``(H) employees (which may include labor);
          ``(3) the lead State agency official or officials for--
                  ``(A) employment security;
                  ``(B) job training;
                  ``(C) the State educational agency;
                  ``(D) the eligible agency for vocational education;
                  ``(E) the eligible agency for adult education and 
                literacy;
                  ``(F) the State agency responsible for postsecondary 
                education;
                  ``(G) the State agency responsible for welfare; and
                  ``(H) the State agency responsible for vocational 
                rehabilitation, and where applicable, the State agency 
                providing vocational rehabilitation program activities 
                for the blind;
          ``(4) such other State agency officials, including officials 
        responsible for economic development, as the Governor may 
        designate;
          ``(5) representatives of the State legislature; and
          ``(6) the representative of the Veterans' Employment and 
        Training Service assigned to the State under section 4103 of 
        title 38, United States Code.
  ``(b) Clarification.--For purposes of complying with subsection (a), 
a State may use any State collaborative process (including a council, 
board, State Human Resource Investment Council established under 
section 103, or a similar entity) that meets or is conformed to meet 
the requirements of such subsection.
  ``(c) Additional Functions of the Collaborative Process.--In addition 
to development of the State plan, the individuals and entities 
described in subsection (a) shall collaborate in--
          ``(1) the designation of local workforce areas as required 
        under section 121;
          ``(2) the development of allocation formulas for the 
        distribution of funds to local workforce development areas for 
        programs authorized under title II and title III;
          ``(3) the development of the State goals and benchmarks as 
        required under part C of this title, including the continued 
        updating of such goals and benchmarks;
          ``(4) the provision of management guidance and review for all 
        programs in the State, including review of the operation of 
        programs conducted in each local workforce development area, 
        and the availability, responsiveness, and adequacy of State 
        services, and make recommendations to the Governor, the State 
        legislature, appropriate chief elected officials, local 
        workforce development boards, and service providers throughout 
        the State regarding the findings of such review;
          ``(5) the continued development of linkages between 
        employment, training, literacy, and other human resource and 
        workforce preparation programs in the State;
          ``(6) comment at least once annually on the measures taken 
        pursuant to section 113(b)(14) of the Carl D. Perkins 
        Vocational Education Act; and
          ``(7) review plans of all State agencies providing 
        employment, training, literacy, 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, 
        training, literacy, and related delivery systems in the 
        State.''.

SEC. 112. LOCAL ADMINISTRATIVE PROVISIONS.

  Part B of title I of the Job Training Partnership Act (29 U.S.C. 1531 
et seq.) is amended by striking sections 121 through 123 and inserting 
the following:

``SEC. 121. LOCAL WORKFORCE DEVELOPMENT AREAS.

  ``(a) In General.--Except as provided in subsection (b), a State that 
desires to receive a grant under title II or title III shall, through 
the collaborative process established under section 102 and after 
consultation with local chief elected officials, and after 
consideration of comments received through the public comment process 
as described in section 101(b)(7) of the State plan, designate local 
workforce development areas within the State that are consistent with 
labor market areas, or a substantial portion of a labor market area, 
and that take into consideration the following:
          ``(1) Units of general local government.
          ``(2) Geographic areas served by local educational agencies 
        and intermediate educational agencies.
          ``(3) Geographic areas served by postsecondary institutions 
        and area vocational education schools.
          ``(4) Service delivery areas established under section 101 of 
        this Act (as such section was in effect on the day before the 
        date of the enactment of the Employment, Training, and Literacy 
        Enhancement Act of 1997).
          ``(5) The distance that individuals will need to travel to 
        receive services.
  ``(b) Small States.--Any State determined to be eligible to receive a 
minimum allotment under section 203(b)(2)(D) or paragraph (1)(B)(iv) or 
paragraph (2)(B)(iv) of section 312(b) may designate itself, through 
the collaborative process established pursuant to section 102, and 
after consultation with local chief elected officials, and 
consideration of comments received through the public comment process 
described in section 101(b)(7) of the State plan, as a single State 
workforce development area for purposes of this Act.

``SEC. 122. LOCAL WORKFORCE DEVELOPMENT BOARDS.

  ``(a) Establishment.--There shall be established in each local 
workforce development area of a State, and certified by the Governor of 
the State, a local workforce development board (hereinafter referred to 
as the `local board'), reflecting business and community interests in 
employment, training, and other workforce preparation activities.
  ``(b) Membership.--
          ``(1) State criteria.--The Governor of the State, through the 
        collaborative process described in section 102, shall establish 
        criteria for use by local chief elected officials in the local 
        workforce development areas for appointment of members of the 
        local boards in such local areas in accordance with the 
        requirements of paragraph (2).
          ``(2) Composition.--Such criteria shall require at a minimum, 
        that the membership of each local board consist of--
                  ``(A) a majority of members who are representatives 
                of business and industry in the local workforce 
                development area, 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, appointed 
                from among individuals nominated by local business 
                organizations and trade associations;
                  ``(B) representatives of local educational entities, 
                including representatives of local educational 
                agencies, local school boards, postsecondary 
                educational institutions (including representatives of 
                community colleges), and representatives of providers 
                of adult education and literacy services, where such 
                schools, institutions, educators, or providers, as 
                appropriate, exist, selected from among individuals 
                nominated by regional or local educational agencies, 
                institutions, or organizations representing such 
                individuals or entities;
                  ``(C) representatives of community-based 
                organizations (including, as appropriate, a community-
                based organization that provides direct job training 
                and placement services to individuals with 
                disabilities), employees (which may include labor), and 
                other representatives of the public who may include 
                program participants, parents, individuals with 
                disabilities, older workers, veterans, or organizations 
                serving such individuals, as nominated to the board by 
                regional or local agencies, institutions, or 
                organizations representing such individuals or 
                entities; and
                  ``(D) representatives of local welfare and economic 
                development agencies.
          ``(3) Chairperson.--The local board shall elect a chairperson 
        from among the members of the board.
  ``(c) Appointment and Certification of Board.--
          ``(1) Appointment of board members and assignment of 
        responsibilities.--
                  ``(A) In general.--The chief elected official in a 
                local workforce development area is authorized to 
                appoint the members of the local board for such area, 
                in accordance with the State criteria established under 
                subsection (b).
                  ``(B) Multiple units of local government in area.--
                          ``(i) In general.--In a case in which a local 
                        workforce development area includes more than 1 
                        unit of general local government, the chief 
                        elected officials of such units may execute an 
                        agreement that specifies the respective roles 
                        of the individual chief elected officials--
                                  ``(I) in the appointment of the 
                                members of the local board from the 
                                individuals nominated or recommended to 
                                be such members in accordance with the 
                                criteria established under subsection 
                                (b); and
                                  ``(II) in carrying out any other 
                                responsibilities assigned to such 
                                officials.
                          ``(ii) Lack of agreement.--If, after a 
                        reasonable effort, the chief elected officials 
                        are unable to reach agreement as provided under 
                        clause (i), the Governor may appoint the 
                        members of the local board from individuals so 
                        nominated or recommended.
          ``(2) Certification.--
                  ``(A) In general.--The Governor is authorized to 
                biennially certify 1 local board for each local 
                workforce development area in the State.
                  ``(B) Criteria.--Such certification shall be based on 
                factors including the criteria established under 
                subsection (b) and, for a second or subsequent 
                certification, the extent to which the local board has 
                ensured that employment and training activities and 
                disadvantaged youth activities carried out in the local 
                workforce development area have met expected levels of 
                performance with respect to the local benchmarks 
                negotiated pursuant to subsection (d)(6)(A).
                  ``(C) Failure to achieve certification.--Failure of a 
                local board to achieve certification shall result in 
                reappointment and certification ofanother local board 
for the local workforce development area pursuant to the process 
described in paragraph (1) and this paragraph.
          ``(3) Decertification.--
                  ``(A) Fiscal noncompliance.--Notwithstanding 
                paragraph (2), the Governor may decertify a local board 
                if it is determined as a result of financial and 
                compliance audits that there is a substantial violation 
                of a specific requirement under this Act and corrective 
                action has not been taken, in accordance with section 
                164. If the Governor decertifies a local board for a 
                local workforce development area under this 
                subparagraph, the Governor may require that a new local 
                board be appointed and certified for the local 
                workforce development area pursuant to a reorganization 
                plan developed by the Governor under section 164(b)(1) 
                and in accordance with the criteria established under 
                subsection (b).
                  ``(B) Nonperformance.--Notwithstanding paragraph (2), 
                the Governor may decertify a local board if a local 
                workforce development area fails to meet the local 
                benchmarks established pursuant to section 153(b) for 
                such local area for two consecutive program years (in 
                accordance with section 156(b)(2)). If the Governor 
                decertifies a local board for a local workforce 
                development area under this subparagraph, the Governor 
                may require that a new local board be appointed and 
                certified for the local area pursuant to a 
                reorganization plan developed by the Governor under 
                section 156(b)(2) and in accordance with the criteria 
                established under subsection (b).
          ``(4) Single state area.--Notwithstanding subsection (b) and 
        paragraphs (1) and (2), if a State described in section 121(b) 
        indicates in the State plan that the State will be treated as a 
        local workforce development area for purposes of the 
        application of this Act, the Governor may designate 
theindividuals and entities involved in the collaborative process 
described in section 105 to carry out the functions described in 
subsection (d).
  ``(d) Functions of Local Board.--The functions of the local board 
shall include the following:
          ``(1) Local plan.--
                  ``(A) In general.--Each local board shall develop and 
                submit to the Governor a comprehensive 3-year strategic 
                local plan. The local plan shall be consistent with the 
                State goals and State plan described in section 101.
                  ``(B) Contents.--The local plan shall include--
                          ``(i) an identification of the workforce 
                        development needs of local industries, job 
                        seekers, and workers;
                          ``(ii) a description of the disadvantaged 
                        youth activities and the employment and 
                        training activities for adults and dislocated 
                        workers to be carried out in the local 
                        workforce development area as required under 
                        titles II and III, that, with activities 
                        authorized under the Wagner-Peyser Act (29 
                        U.S.C. 49 et seq.), will contribute to the 
                        coherent delivery of employment, training and 
                        workforce preparation activities in the local 
                        area;
                          ``(iii) a description of the local benchmarks 
                        negotiated with the Governor pursuant to 
                        paragraph (6)(A), to be used by the local board 
                        for measuring the performance of the local 
                        administrative entity (where appropriate), 
                        eligible providers of services authorized under 
                        titles II and III, and the performance of the 
                        full service employment and training delivery 
                        system in the local workforce development area;
                          ``(iv) a description of the local full 
                        service employment and training delivery system 
                        to be established or designated in the local 
                        workforce development area, including--
                                  ``(I) a description of the process 
                                negotiated with the Governor pursuant 
                                to paragraph (6)(B) that the local 
                                board will use to designate or certify 
                                full service eligible providers in the 
                                local workforce development area, which 
                                ensures that the most effective and 
                                efficient providers will be chosen;
                                  ``(II) a description of how the local 
                                board will ensure the continuous 
                                improvement of such full service 
                                eligible providers and that such 
                                providers will continue to meet the 
                                labor market needs of local employers 
                                and participants; and
                                  ``(III) an identification of the 
                                roles of individual employment, 
                                training, and other human resources 
                                programs, as determined appropriate, 
                                including programs authorized by the 
                                Wagner-Peyser Act (20 U.S.C. 49 et 
                                seq.), in carrying out the functions of 
                                the full service employment and 
                                training delivery system, including a 
                                description of the funding sources to 
                                be used in the operation of the full 
                                service employment and training system;
                          ``(v) an identification of the administrative 
                        entity designated by the local board in 
                        accordance with paragraph (5);
                          ``(vi) a description of the steps the local 
                        board will take to work with local educational 
                        agencies, postsecondary educational 
                        institutions (including community colleges, 
                        where applicable), vocational educators, 
                        providers of adult education and literacy 
                        services, and other representatives of the 
                        educational community to address local 
                        employment, education, and training needs, 
                        including a description of linkages established 
                        with such individuals and entities to enhance 
                        the provision of services, including supportive 
                        services, and avoid duplication;
                          ``(vii) a description of the process that 
                        will be used by the local board to fully 
                        involve representatives of the local community, 
                        including community-based organizations with 
                        experience in serving disadvantaged youth, the 
                        local education community (including vocational 
                        educators and teachers), parents, youth, local 
                        law enforcement agencies, and representatives 
                        of business and employees (which may include 
                        labor) in the development and implementation of 
                        disadvantaged youth programs in the local 
                        workforce development area, including a 
                        description of the process used (involving the 
                        individuals and organizations describedin this 
clause) to ensure that the most effective and efficient providers are 
chosen to carry out the activities authorized under title II; and
                          ``(viii) such other information as the 
                        Governor may require.
                  ``(C) Consultation.--The local board shall--
                          ``(i) consult with the chief elected official 
                        in the appropriate local workforce development 
                        area in the development of the local plan; and
                          ``(ii) provide the chief elected official 
                        with a copy of the local plan.
                  ``(D) Approval.--
                          ``(i) In general.--The chief elected official 
                        shall--
                                  ``(I) approve the local plan; or
                                  ``(II) reject the local plan and make 
                                recommendations to the local board on 
                                how to improve the local plan.
                          ``(ii) Submission.--If, after a reasonable 
                        effort, the local board is unable to obtain the 
                        approval of the chief elected official for the 
                        local plan, the local board may submit the plan 
                        to the Governor for approval under subparagraph 
                        (A), and shall submit the recommendations of 
                        the chief elected official to the Governor 
                        along with the plan, consistent with subsection 
                        (e)(2).
          ``(2) Selection of providers.--
                  ``(A) Selection of full service providers.--
                Consistent with section 123 and the agreement 
                negotiated with the Governor under paragraph (6)(B)(i), 
                the local board is authorized to designate or certify 
                full service eligible providers, and to terminate for 
                cause, the eligibility of such providers.
                  ``(B) Selection of disadvantaged youth providers.--
                Consistent with section 207, the local board is 
                authorized to award grants on a competitive basis to 
                eligible providers of disadvantaged youth activities in 
                the local workforce development area.
          ``(3) Identification of eligible providers of training 
        services.--Consistent with section 124, the local board is 
        authorized to work in partnership with the Governor concerning 
        the identification of eligible providers of training services 
        described in section 314(c) in the local workforce development 
        area.
          ``(4) Budget and program oversight.--
                  ``(A) Budgeting.--
                          ``(i) In general.--The local workforce 
                        development board shall develop a budget for 
                        the purpose of carrying out local programs 
                        established under titles II and III and section 
                        123.
                          ``(ii) Approval of budget.--Such budget shall 
                        be subject to the approval of the chief elected 
                        official or officials in the local workforce 
                        development area.
                  ``(B) Program oversight.--The local workforce 
                development board, in partnership with the chief 
                elected official or officials in the local workforce 
                development area, shall conduct oversight of the 
                programs established under titles II and III and 
                section 123.
          ``(5) Administration.--
                  ``(A) Designation of administrative entity.--
                          ``(i) In general.--The local workforce 
                        development board may designate itself as the 
                        administrative entity for receipt and 
                        disbursement of funds made available for 
                        carrying out programs authorized under title II 
                        and title III of this Act, or the local board 
                        may designate an administrative entity (which 
                        may be the State through a mutual agreement 
                        between the local board and the State), for the 
                        purpose of receipt and disbursement of such 
                        funds.
                          ``(ii) Additional fiscal responsibilities.--
                        Each administrative entity shall be responsible 
                        for the distribution of funds and shall have 
                        responsibility to take action against its 
                        subcontractors, subgrantees, and other 
                        recipients to eliminate abuses in the programs 
                        being carried out in the local workforce 
                        development area and to prevent any misuse of 
                        funds by subcontractors, subgrantees, and other 
                        recipients.
                  ``(B) Staff; grants and other contributions.--The 
                local 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.
                  ``(C) Prohibition on direct provision of services.--
                          ``(i) In general.--Except as provided in 
                        clause (ii), a local board or employees of such 
                        board may not directly provide services under 
                        programs established under this Act.
                          ``(ii) Waiver.--The Governor of the State in 
                        which the local board is located may grant to 
                        the local board a written waiver of the 
                        prohibition under clause (i) where necessary to 
                        improve performance or to provide a full array 
                        of services in the local area as may be 
                        particularly necessary in rural areas.
                  ``(D) Conflict of interest.--A member of a local 
                board may not--
                          ``(i) vote on a matter under consideration by 
                        the local board--
                                  ``(I) regarding the provision of 
                                services by such member (or by an 
                                organization that such member 
                                represents); or
                                  ``(II) that would provide direct 
                                financial benefit to such member or the 
                                immediate family of such member; or
                          ``(ii) engage in any other activity 
                        determined by the Governor to constitute a 
                        conflict of interest.
          ``(6) Negotiations.--
                  ``(A) Local benchmarks.--The local board, the local 
                chief elected official, and the Governor shall 
                negotiate and reach agreement on local benchmarks 
                designed to meet the State goals described in the State 
                plan under section 101 for the local workforce 
                development area. In determining such benchmarks, the 
                Governor, the local chief elected official, and the 
                local board shall take into account the State adjusted 
                benchmarks described in section 153(a) with respect to 
                programs authorized under titles II and III, and 
                specific economic, demographic, and other 
                characteristics of the populations to be served in the 
                local workforce development area.
                  ``(B) Local delivery of services.--
                          ``(i) In general.--The local board, the local 
                        chief elected official, and the Governor shall 
                        negotiate and reach agreement on a process to 
                        be used by the local board that meets the 
                        requirements of subclauses (I) and (II) of 
                        paragraph (1)(B)(iv) for--
                                  ``(I) the designation or 
                                certification of full service eligible 
                                providers (as described in section 
                                123(c)) in the local workforce 
                                development area, including, consistent 
                                with State statute, a determination of 
                                the role of providers of activities 
                                authorized under the Wagner-Peyser Act 
                                (29 U.S.C. 49 et seq.) in the full 
                                service delivery of services in the 
                                local workforce development area; and
                                  ``(II) the continued role of the 
                                local board and the local elected 
                                official in conducting oversight with 
                                respect to full service eligible 
                                providers that are providers of 
                                activities authorized under the Wagner-
                                Peyser Act (29 U.S.C. 49 et seq.).
                          ``(ii) Established full service employment 
                        and training delivery system.--Notwithstanding 
                        this subsection and section 123(c), if a full 
                        service employment and training delivery system 
                        has been established in a local workforce 
                        development area prior to the date of enactment 
                        of this Act, or if approval has been obtained 
                        for a plan for a full service employment and 
                        training delivery system under the Wagner-
                        Peyser Act (29 U.S.C. 49 et seq.) prior to the 
                        date of enactment of this Act, the local board 
                        and the Governor involved may agree to certify 
                        such full service employment and training 
                        delivery system for purposes of this 
                        subparagraph.
  ``(e) Sunshine Provision.--
          ``(1) In general.--The local board shall make available to 
        the public, on a regular basis, information regarding the 
        activities of the local board, including information regarding 
        membership, the designation and certification of full service 
        employment and training center eligible providers, and the 
        award of grants to eligible providers of disadvantaged youth 
        activities.
          ``(2) Local plan.--Prior to the submission of the local plan 
        to the Governor, under subsection (d)(1)(D)(ii), the local 
        board shall make such plan available for review and comment 
        to--
                  ``(A) appropriate community-based organizations and 
                local educational and other public agencies in the 
                local workforce development area;
                  ``(B) local business organizations and 
                representatives of employees in the local workforce 
                development area; and
                  ``(C) the general public through such means as public 
                hearings and local news media.

``SEC. 123. FULL SERVICE EMPLOYMENT AND TRAINING DELIVERY SYSTEM.

  ``(a) In General.--There shall be established in a State that 
receives an allotment under section 312, a full service employment and 
training delivery system that--
          ``(1) shall provide the core services described in subsection 
        (d), including the information described in part E of title IV 
        and labor exchange services authorized under the Wagner-Peyser 
        Act (29 U.S.C. 49 et seq.);
          ``(2) shall provide access to the activities carried out 
        under subsection (e), if any; and
          ``(3) shall provide access to intensive and training services 
        described in section 314, including serving as the point of 
        distribution of skill grants for training services to 
        participants in accordance with section 314(c)(6)(A).
  ``(b) Access to Delivery of Services.--
          ``(1) In general.--The State's full service employment and 
        training delivery system shall provide individuals and 
        employers with access to the services described in subsection 
        (a) through a network of eligible providers that assures 
        participants that such services will be available, regardless 
        of where the participants initially enter the system. At a 
        minimum, such services shall be available--
                  ``(A) through a network of full service employment 
                and training delivery centers, established in all local 
                workforce development areas in the State, that provide 
                all of the services described in subsection (a); or
                  ``(B) at not less than one full service employment 
                and training delivery center in each local workforce 
                development area in the State that provides all of the 
                services described in subsection (a), supplemented with 
                multiple affiliated sites that provide one or more of 
                such services and are linked through electronic and 
                technological access points.
          ``(2) Specialized centers.--Of the full service employment 
        and training delivery centers or affiliated sites described in 
        paragraph (1), such centers or sites may have a specialization 
        in addressing special needs, such as the needs of dislocated 
        workers.
  ``(c) Eligibility for Designation.--Any entity or consortium of 
entities located in a local workforce development area may be 
designated or certified by the local workforce development board (in 
accordance with section 122(d)(2)(A)) through a competitive process, or 
through an agreement reached between the local board and a consortium 
of entities, to operate a full service employment and training delivery 
center or to participate as an affiliated site in the full service 
employment and training delivery system. Such entities shall be known 
as `full service eligible providers' and may include--
          ``(1) institutions of higher education;
          ``(2) local employment service offices established under the 
        Wagner-Peyser Act (29 U.S.C 49 et seq.);
          ``(3) private, nonprofit organizations (including community-
        based organizations);
          ``(4) private for-profit entities;
          ``(5) agencies of local government; and
          ``(6) other interested organizations and entities of 
        demonstrated effectiveness, including local chambers of 
        commerce and other business organizations, consistent with 
        State criteria as described in the State plan under section 
        101.
  ``(d) Core Services.--Funds made available to local workforce 
development areas under section 313(b), in addition to funds made 
available under the Wagner-Peyser Act, part E of title IV, and other 
related programs, shall be used to provide core services, which shall 
be available to all individuals through the full service employment and 
training delivery system and shall, at a minimum, include--
          ``(1) outreach, intake (which may include worker profiling), 
        and orientation to the information and other services available 
        through the full service employment and training delivery 
        system;
          ``(2) initial assessment of skill levels, aptitudes, 
        abilities, and supportive service needs;
          ``(3) job search and placement assistance, and where 
        appropriate, career counseling;
          ``(4) provision of accurate information relating to local, 
        regional, and national labor markets, including--
                  ``(A) job vacancy listings in such markets; and
                  ``(B) information relating to local occupations in 
                demand and the earnings and skill requirements for such 
                occupations;
          ``(5) provision of accurate information relating to the 
        quality and availability of employment, training, and literacy 
        activities authorized under titles II and III of this Act and 
        the Adult Education and Family Literacy Act, and of vocational 
        rehabilitation program activities as appropriate, and referral 
        to such activities;
          ``(6) provision of information relating to unemployment 
        compensation, publicly funded employment and training programs 
        (including registered apprenticeships), and forms of public 
        financial assistance, such as student aid programs, that may be 
        available in order to enable individuals to participate in 
        employment, training, literacy, and other workforce preparation 
        activities;
          ``(7) soliciting and accepting job orders submitted by 
        employers in the local workforce development area, and 
        screening and referring applicants in accordance with such 
        orders;
          ``(8) dissemination of lists of eligible training providers 
        and performance information regarding such providers in 
        accordance with section 124; and
          ``(9) any additional performance information with respect to 
        the full service employment and training delivery system in the 
        local workforce development area.
  ``(e) Permissible Services.--Funds made available to local workforce 
development areas under section 313(b) may be used to contribute to, 
through the full service employment and training delivery system--
          ``(1) co-location of services related to employment, 
        training, and literacy activities, such as unemployment 
        insurance, vocational rehabilitation program activities, 
        veterans' employment services, programs authorized under the 
        Wagner-Peyser Act (29 U.S.C 49 et seq.), employment-related 
        services for welfare recipients, or other public assistance 
        activities;
          ``(2) customized screening and referral of qualified 
        participants to employment; and
          ``(3) customized employment-related services to employers on 
        a fee-for-service basis.

``SEC. 124. IDENTIFICATION OF TRAINING PROVIDERS.

  ``(a) Eligibility Requirements.--
          ``(1) In general.--Except as provided in subsection (e), to 
        be identified as an eligible provider of training services 
        under title III and to receive funds made available for the 
        provision of training services described in section 314(c) 
        (referred to in this section as `training services'), a 
        provider of such services shall meet the requirements of this 
        section.
          ``(2) Postsecondary educational institution.--Subject to the 
        provisions of this section, a postsecondary educational 
        institution shall automatically be eligible to provide training 
        services under title III for--
                  ``(A) a program that leads to an associate, 
                baccalaureate, professional, or graduate degree;
                  ``(B) a program that--
                          ``(i) is at least 2 academic years in length; 
                        and
                          ``(ii) is acceptable for academic credit 
                        toward a baccalaureate degree; or
                  ``(C) a program that--
                          ``(i) is at least 1 academic year in length;
                          ``(ii) is a training program;
                          ``(iii) leads to a certificate, degree, or 
                        other recognized educational credential; and
                          ``(iv) prepares a student for gainful 
                        employment in a recognized occupation.
          ``(3) Other eligible providers.--
                  ``(A) Procedure.--
                          ``(i) In general.--The Governor shall 
                        establish a procedure for use by local 
                        workforce development boards in determining the 
                        eligibility of public and private providers not 
                        described in paragraph (2) (including 
                        eligibility of postsecondary educational 
                        institutions for programs not described in 
                        paragraph (2)) to receive such funds.
                          ``(ii) Factors.--In developing such 
                        procedure, the Governor--
                                  ``(I) shall solicit and take into 
                                consideration the recommendations of 
                                local workforce development boards and 
                                providers of training services within 
                                the State; and
                                  ``(II) shall take into 
                                consideration--
                                          ``(aa) the specific economic, 
                                        geographic, and demographic 
                                        factors in the local areas in 
                                        which eligible providers are 
                                        located; and
                                          ``(bb) the characteristics of 
                                        the populations served by the 
                                        eligible providers, including 
                                        the demonstrated difficulties 
                                        in serving such populations, 
                                        where applicable.
                  ``(B) Levels of performance.--At a minimum, the 
                procedure described in subparagraph (A) shall require 
                such a provider to meet minimum acceptable levels of 
                performance based on verifiable program-specific 
                performance information described in subsection (b) and 
                submitted to the State agency designated under 
                subsection (c), as required under paragraphs (2) and 
                (3) of subsection (c).
  ``(b) Performance Information.--
          ``(1) Required information.--Pursuant to subsection (c)(2), 
        to be eligible to provide training services under title III, a 
        provider shall submit information on--
                  ``(A) program completion rates for individuals in the 
                applicable program conducted by the provider;
                  ``(B) the percentage of individuals in the applicable 
                program who obtain employment, which may also include 
                information specifying the percentage of individuals 
                who obtain employment in an occupation related to the 
                program conducted; and
                  ``(C) the earnings at placement of individuals who 
                complete the program.
          ``(2) Additional information.--Subject to paragraph (3), in 
        addition to the performance information described in paragraph 
        (1), the Governor may require that a provider described in this 
        paragraph submit such other performance information as the 
        Governor determines to be appropriate, which may include 
        information relating to--
                  ``(A) the retention in employment and the subsequent 
                earnings of the individuals who complete the applicable 
                program;
                  ``(B) where appropriate, the rates of licensure or 
                certification of individuals who complete the program;
                  ``(C) the percentage of individuals who complete the 
                program who attain industry-recognized occupational 
                skills in the subject, occupation, or industry for 
                which training is provided, where applicable; and
                  ``(D) the adequacy of space, staff, equipment, 
                instructional materials, and student support services 
                offered by the provider through a program conducted by 
                the provider.
          ``(3) Conditions.--
                  ``(A) In general.--If the Governor requests 
                additional information pursuant to paragraph (2) that 
                imposes extraordinary costs on providers, the Governor 
                shall provide access tocost-effective methods for the 
collection of such information or provide additional resources to 
assist providers in the collection of such information from funds made 
available under section 313(a).
                  ``(B) Transition period for performance-based 
                information.--For program years 1999 and 2000, the 
                performance-based information to be submitted by a 
                provider under this subsection shall only be required 
                to be provided relating to the performance of 
                participants assisted under title III in lieu of all 
                individuals participating in the program of the 
                provider. Nothing in this subparagraph shall be 
                construed to prohibit the submission ofperformance-
based information for all individuals participating in the program of 
the provider as soon as is practicable prior to program year 2001 and 
each provider shall be encouraged to submit such information.
  ``(c) Administration.--
          ``(1) Designation.--The Governor shall designate a State 
        agency to collect and disseminate the performance information 
        described in subsection (b) and to carry out other duties 
        described in this subsection.
          ``(2) Submission.--A provider described in subsection (a) 
        shall submit the performance information described in 
        subsection (b) annually to the designated State agency at such 
        time and in such manner as the designated State agency may 
        require. The designated State agency may accept program-
        specific performance information consistent with the 
        requirements for eligibility under title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1070 et seq.) from such a 
        provider for purposes of enabling the provider to fulfill the 
        applicable requirements of this paragraph, if such information 
        is substantially similar to the information required under 
        subsection (b).
          ``(3) List of eligible providers.--
                  ``(A) In general.--The designated State agency shall 
                compile a list of eligible providers accompanied by the 
                performance information described in subsection (b) 
                consisting of--
                          ``(i) providers determined to be 
                        automatically eligible subject to subsection 
                        (a)(2); and
                          ``(ii) providers determined to be eligible by 
                        local workforce development boards, subject to 
                        subsection (a)(3).
                  ``(B) Availability.--The designated State agency 
                shall disseminate such lists and information to the 
                full service employment and training delivery system 
                and to local boards. Such list and information shall be 
                made widely available to participants in employment and 
                training programs authorized under title III and others 
                through the full service employment and training 
                delivery system described in section 123.
  ``(d) Enforcement.--
          ``(1) Accuracy of information.--If the designated State 
        agency determines that a provider or individual supplying 
        information on behalf of a provider intentionally supplies 
        inaccurate information under this section, the agency shall 
        terminate the eligibility of the eligible provider to receive 
        funds described in subsection (a) for a period of time, but not 
        less than 2 years, as prescribed in regulations issued by the 
        Governor.
          ``(2) Non-compliance.--If the designated State agency, or the 
        local workforce development board working through the State 
        agency, determines that an eligible provider under subsection 
        (a) substantially violates any requirement under this Act, the 
        agency, or the local board through the State agency, may 
        terminate the eligibility of such provider to receive funds 
        described in subsection (a) for such program or take such other 
        action as the agency or local board determines to be 
        appropriate.
          ``(3) Nonperformance.--
                  ``(A) Termination for nonperformance.--(i) If the 
                designated State agency determines that an eligible 
                provider under subsection (a)(2) or a program of 
                training services carried out by an eligible provider 
                under subsection (a)(2) substantially fails to meet for 
                2 or more consecutive years, performance criteria 
                established by the Governor, the agency may terminate 
                the eligibility of such provider.
                  ``(ii) If the designated State agency, or the local 
                workforce development board working through the State 
                agency, determines that an eligible provider under 
                subsection (a)(3) or a program of training services 
                carried out by such an eligible provider fails to meet 
                acceptable levels of performance consistent with the 
                procedure established under subsection (a)(3), 
theagency, or the local board through the State agency, may terminate 
the eligibility of such provider.
                  ``(B) Factors.--In establishing the performance 
                criteria described under subparagraph (A)(i), the 
                Governor shall--
                          ``(i) solicit and take into consideration the 
                        recommendations of local workforce development 
                        boards and providers of training services 
                        within the State; and
                          ``(ii) take into consideration--
                                  ``(I) the specific economic, 
                                geographic, and demographic factors in 
                                the local areas in which eligible 
                                providers are located; and
                                  ``(II) the characteristics of the 
                                populations served by the eligible 
                                providers, including the demonstrated 
                                difficulties in serving such 
                                populations, where applicable.
          ``(4) Eligibility under the higher education act of 1965.--If 
        the designated State agency determines that the eligibility of 
        an eligible provider described in subsection (a)(2) under title 
        IV of the Higher Education Act of 1965 has been terminated, the 
        agency--
                  ``(A) shall terminate the automatic eligibility of 
                the provider under subsection (a)(2); and
                  ``(B) shall require the provider to meet the 
                requirements of subsection (a)(3) to be eligible to 
                receive funds as described in subsection (a).
          ``(5) Repayment.--A provider whose eligibility is terminated 
        under paragraph (1) or (2) for a program shall be liable for 
        repayment of all funds described in subsection (a) received for 
        the program during any period of noncompliance described in 
        such paragraph.
          ``(6) Appeal.--The Governor shall establish a procedure for 
        an eligible provider to appeal a determination by the local 
        board or the designated state agency that results in the denial 
        or termination of eligibility under this subsection. Such 
        procedure shall provide an opportunity for a hearing and 
        prescribe appropriate time limits to ensure prompt resolution 
        of the appeal.
          ``(7) Construction.--This subsection shall be construed to 
        supplement, but not supplant, other civil and criminal remedies 
        and penalties.
  ``(e) On-The-Job Training Exception.--
          ``(1) In general.--Providers of on-the-job training, and 
        apprenticeship programs registered in accordance with the 
        National Apprenticeship Act, shall not be subject to the 
        requirements of subsection (a), (b), (c), or (d).
          ``(2) Collection and dissemination of information.--A full-
        service eligible provider in a local workforce development area 
        shall collect such performance information from on-the-job 
        training providers as the Governor may require, and disseminate 
        such information through the delivery of core services 
        described in section 123, as appropriate.''.

               Subtitle C--Program and Fiscal Provisions

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 121. GENERAL PROGRAM REQUIREMENTS.

  (a) Employment and Training Opportunities.--Section 141(a) of the Job 
Training Partnership Act (29 U.S.C. 1551(a)) is amended--
          (1) by striking ``and shall make efforts'' and all that 
        follows and inserting a period; and
          (2) by adding at the end the following: ``In addition, 
        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.''.
  (b) Relocation.--Section 141(c) of such Act (29 U.S.C. 1551(c)) is 
amended to read as follows:
  ``(c) Relocation.--
          ``(1) Prohibition on use of funds to encourage or induce 
        relocation.--No funds provided under title II, III, or IV shall 
        be used or proposed for use to encourage or induce the 
        relocation, of a business or part of a business, that results 
        in a loss of employment for any employee of such business at 
        the original location, if such original location is within the 
        United States.
          ``(2) Prohibition on use of funds for customized or skill 
        training and related activities after relocation.--No funds 
        provided under title II, III, or IV for an employment and 
        training activity shall be used for customized or skill 
        training, on-the-job training, or company-specific assessments 
        of job applicants or employees, for any business or part of a 
        business, that has relocated, until 120 days after the date on 
        which such business commences operations at the new location, 
        if the relocation of such business or part of a business, 
        results in a loss of employment for any employee of such 
        business at the original location and such original location is 
        within the United States.
          ``(3) Repayment.--If the Secretary of Labor determines that a 
        violation of paragraph (1) or (2) has occurred, the Secretary 
        shall require the State that has violated such paragraph to 
        repay to the United States an amount equal to the amount 
        expended in violation of such paragraph.''.
  (c) Training for Occupations in Demand.--Subsection (d) of section 
141 of such Act (29 U.S.C. 1551(d)) is hereby repealed.
  (d) Agreements Among Areas Relating to Education, Training, and 
Employment of Participants.--Section 141(e) of such Act (29 U.S.C 
1551(e)) is amended--
          (1) by striking paragraph (1); and
          (2) in paragraph (2)--
                  (A) by striking ``(2)'';
                  (B) by striking ``service delivery area'' each place 
                it appears and inserting ``local workforce development 
                area''; and
                  (C) in the second sentence--
                          (i) by striking ``private industry council'' 
                        and inserting ``local workforce development 
                        board''; and
                          (ii) by striking ``section 104'' and 
                        inserting ``section 122(d)(1)''.
  (e) Prohibition on Certain Votes.--Subsection (f) of section 141 of 
such Act (29 U.S.C. 1551(f)) is hereby repealed.
  (f) Payments to Employers for On-the-Job Training.--Section 141(g) of 
such Act (29 U.S.C. 1551(g)) is amended--
          (1) by striking paragraphs (1) through (3); and
          (2) in paragraph (4)--
                  (A) by striking ``(4)'';
                  (B) by striking ``In accordance with regulations 
                issued by the Secretary, on-the-job training 
                contracts'' and inserting ``On-the-job training 
                contracts''; and
                  (C) by striking ``with wages and employment 
                benefits'' and all that follows and inserting a period.
  (g) Duplicate Facilities or Services.--Section 141(h) of such Act (29 
U.S.C. 1551(h)) is amended to read as follows:
  ``(h)(1) Upon the approval of the Governor, real property in which, 
as of July 1, 1998, equity has resulted from funds provided under title 
III of the Social Security Act, section 903(c) of such Act (commonly 
referred to as the `Reed Act'), or the Wagner-Peyser Act (29 U.S.C. 49 
et seq.) may be used for the purposes of a full service employment and 
training delivery center.
  ``(2) Unless otherwise provided in a plan approved pursuant to 
section 101, subsequent to the commencement of the use of the property 
described in paragraph (1) for the purposes of a full service 
employment and training delivery center, funds provided under the 
provisions of law described paragraph (1) may only be used to acquire 
further equity in such property, or to pay operating and maintenance 
expenses relating to such property in proportion to the extent of the 
use of such property attributable to the activities authorized under 
such provisions of law.''.
  (h) Responsibilities of Administrative Entities.--Section 141(i) of 
such Act (29 U.S.C. 1551(i)) is hereby repealed.
  (i) Prohibition on Certain Subsidized Employment.--Section 141(k) of 
such Act (29 U.S.C. 1551(k)) is hereby repealed.
  (j) Consultation Requirements.--Section 141(n) of such Act (29 U.S.C 
1551(n)) is amended--
          (1) by striking ``private industry councils'' each place it 
        appears and inserting ``local workforce development boards'';
          (2) by striking ``councils'' and inserting ``boards'';
          (3) by striking ``service delivery area'' each place it 
        appears and inserting ``local workforce development area''; and
          (4) by striking ``this Act'' each place it appears and 
        inserting ``title II or title III''.
  (k) Prohibition on Use of Funds for Public Service Employment.--
Section 141(p) of such Act (29 U.S.C 1551(p)) is amended--
          (1) by striking ``part B of this title or part A or C of 
        title II'' and inserting ``this Act''; and
          (2) by inserting at the end before the period the following: 
        ``except as specifically authorized under this Act''.
  (l) Prohibition on Use of Funds for Certain Economic Activities.--
Section 141(q) of such Act (29 U.S.C 1551(p)) is amended in the first 
sentence by inserting at the end before the period the following: 
``which are not directly related to training or related services for 
eligible individuals under this Act''.
  (m) Priority for Excess Property of the Department of Defense.--
Section 141(s) of such Act (29 U.S.C. 1551(s)) is hereby repealed.
  (n) Prohibition on Entitlement to Service.--Section 141 of such Act 
(29 U.S.C. 1551) is amended by adding at the end the following:
  ``(s) Prohibition on Entitlement to Service.--Nothing in this Act 
shall be construed to provide an individual with an entitlement to a 
service under this Act.
  ``(t) Fee for Service Authority.--Services, facilities, and equipment 
funded under titles II and III may be used, as appropriate, on a fee 
for service basis, by employers in a local workforce development area 
in order to provide employment and training services to incumbent 
workers--
          ``(1) when such services, facilities, or equipment are not in 
        use for the provision of services for eligible program 
        participants under title II or title III, respectively;
          ``(2) if such use would not have an adverse affect on the 
        provision of services to eligible program participants under 
        title II or title III, respectively; and
          ``(3) if the income derived from such fees is used to carry 
        out the programs authorized under title II or title III, 
        respectively.''.

SEC. 122. BENEFITS.

  Section 142(a) of the Job Training Partnership Act (29 U.S.C. 
1552(a)) is amended--
          (1) by striking all that precedes paragraph (4) and inserting 
        the following:
  ``(a) Wages.--
          ``(1) In general.--Individuals in on-the-job training or 
        individuals employed in activities under this Act shall be 
        compensated at the same rates, including periodic increases, as 
        trainees or employees who are similarly situated in similar 
        occupations by the same employer and who have similar training, 
        experience and skills, and such rates shall be in accordance 
        with applicable law, but in no event less than the higher of 
        the rate specified in section 6(a)(1) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the applicable 
        State or local minimum wage law.''; and
          (2) by redesignating paragraph (4) as paragraph (2).

SEC. 123. LABOR STANDARDS.

  Section 143 of the Job Training Partnership Act (29 U.S.C. 1553) is 
amended to read as follows:

``SEC. 143. LABOR STANDARDS.

  ``(a) Limitations on Activities That Impact Wages of Employees.--No 
funds provided under this title shall be used to pay the wages of 
incumbent employees during their participation in economic development 
activities provided through the statewide system.
  ``(b) Displacement.--
          ``(1) Prohibition.--A participant in an activity authorized 
        under title II, III, or IV of this Act (referred to in this 
        section as a `specified activity') shall not displace 
        (including a partial displacement, such as a reduction in the 
        hours of nonovertime work, wages, or employment benefits) any 
        currently employed employee (as of the date of the 
        participation).
          ``(2) Prohibition on impairment of contracts.--A specified 
        activity shall not impair an existing contract for services or 
        collective bargaining agreement, and no such activity that 
        would be inconsistent with the terms of a collective bargaining 
        agreement shall be undertaken without the written concurrence 
        of the labor organization and employer concerned.
  ``(c) Other Prohibitions.--A participant in a specified activity 
shall not be employed in a job--
          ``(1) when any other individual is on layoff from the same or 
        any substantially equivalent job;
          ``(2) when the employer has terminated the employment of any 
        regular employee or otherwise reduced the workforce of the 
        employer with the intention of filling the vacancy so created 
        with the participant; or
          ``(3) which is created in a promotional line that will 
        infringe in any way upon the promotional opportunities of 
        currently employed individuals.
  ``(d) Health and Safety.--Health and safety standards established 
under Federal and State law otherwise applicable to working conditions 
of employees shall be equally applicable to working conditions of 
participants engaged in specified activities. To the extent that a 
State workers' compensation law applies, workers' compensation shall be 
provided to participants on the same basis as the compensation is 
provided to other individuals in the State in similar employment.
  ``(e) Employment Conditions.--Individuals in on-the-job training or 
individuals employed in activities under this Act, shall be provided 
benefits and working conditions at the same level and to the same 
extent as other trainees or employees working a similar length of time 
and doing the same type of work.
  ``(f) Opportunity To Submit Comments.--Interested parties shall be 
provided an opportunity to submit comments with respect to training 
programs proposed to be funded under this Act.''.

SEC. 124. GRIEVANCE PROCEDURE.

  Section 144 of the Job Training Partnership Act (29 U.S.C. 1554) is 
amended to read as follows:

``SEC. 144. GRIEVANCE PROCEDURE.

  ``(a) In General.--Each State receiving an allotment under this Act 
shall establish and maintain a procedure for grievances or complaints 
alleging violations of the requirements of this Act from participants 
and other interested or affected parties. Such procedure shall include 
an opportunity for a hearing and be completed within 60 days of filing 
the complaint.
  ``(b) Investigation.--
          ``(1) In general.--The Secretary shall investigate an 
        allegation of a violation described in subsection (a) if--
                  ``(A) a decision relating to such violation has not 
                been reached within 60 days after the date of the 
                filing of the grievance or complaint and either party 
                appeals to the Secretary; or
                  ``(B) a decision relating to such violation has been 
                reached within such 60 days and the party to which such 
                decision is adverse appeals such decision to the 
                Secretary.
          ``(2) Additional requirement.--The Secretary shall make a 
        final determination relating to an appeal made under paragraph 
        (1) no later than 120 days after receiving such appeal.
  ``(c) Remedies.--Remedies shall be limited--
          ``(1) to suspension or termination of payments under this 
        Act;
          ``(2) to prohibition of placement of a participant with an 
        employer that has violated any requirements under this Act;
          ``(3) where applicable, to reinstatement of an employee, 
        payment of lost wages and benefits, and reestablishment of 
        other relevant terms, conditions and privileges of employment; 
        and
          ``(4) where appropriate, to other equitable relief.''.

SEC. 125. IDENTIFICATION OF ADDITIONAL IMPOSED REQUIREMENTS.

  Section 124 of the Job Training Partnership Act (29 U.S.C. 1534) is 
amended--
          (1) by redesignating such section as section 146 of such Act; 
        and
          (2) by inserting such section after section 145 of such Act.

SEC. 126. AUTHORITY OF STATE LEGISLATURE.

  Section 126 of the Job Training Partnership Act (29 U.S.C. 1536) is 
amended--
          (1) by adding at the end ``Any funds received by a State 
        under title II or III of this Act shall be subject to 
        appropriation by the State legislature, consistent with the 
        terms and conditions required under this Act.'';
          (2) by redesignating such section as section 147 of such Act; 
        and
          (3) by inserting such section after section 146 of such Act, 
        as amended by this Act.

SEC. 127. INTERSTATE AGREEMENTS.

  Section 127 of the Job Training Partnership Act (29 U.S.C. 1537) is 
amended--
          (1) by redesignating such section as section 148 of such Act; 
        and
          (2) by inserting such section after section 147 of such Act, 
        as amended by this Act.

            CHAPTER 2--PERFORMANCE ACCOUNTABILITY PROVISIONS

SEC. 131. PERFORMANCE ACCOUNTABILITY PROVISIONS.

  The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is amended 
by inserting after part C of title I of such Act the following:

``SEC. 151. PERFORMANCE ACCOUNTABILITY SYSTEM.

  ``In order to promote high levels of performance and to ensure an 
appropriate return on the Nation's investment in employment, training, 
and literacy programs, each State receiving funds under this Act or the 
Adult Education and Family Literacy Act shall implement a statewide 
performance accountability system that meets the requirements of this 
subpart.

``SEC. 152. INDICATORS OF PERFORMANCE.

  ``(a) State Benchmarks.--
          ``(1) In general.--Each State receiving funds under this Act 
        shall identify indicators and related levels of performance 
        (hereinafter referred to as `State benchmarks'), for each of 
        the programs established under titles II, III, and V of this 
        Act, to be used to measure the State's progress in meeting the 
        State long-term goals described in the State plan under section 
        101. Such State benchmarks shall, at a minimum--
                  ``(A) include the core indicators of performance 
                described in section 154;
                  ``(B) be expressed in an objective, quantifiable, and 
                measurable form; and
                  ``(C) show the progress of the State to continuously 
                improve in performance over the 3-year period covered 
                by the State plan.
          ``(2) Customer satisfaction.--Such State benchmarks may also 
        include post-program surveys and other measures of customer 
        satisfaction of both employers and program participants.
  ``(b) 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, 
localities, representatives of business and industry, employees, 
employment and training service providers, State directors of adult 
education, providers of adult education and literacy services, 
individuals with expertise in serving the employment and training needs 
of disadvantaged youth, participants, parents and other interested 
parties with expertise in the provision of employment, training, 
literacy, and related services, shall promulgate definitions of each of 
the core indicators of performance described in section 154, with the 
exception of the indicators described under subsections (a)(6), (b)(1), 
(b)(5), (c)(1), and (c)(5) of such section, to be used under this Act 
in measuring performance.

``SEC. 153. STATE ADJUSTED BENCHMARKS.

  ``(a) Negotiation.--
          ``(1) In general.--In order to ensure an adequate return on 
        the investment of Federal funds in employment, training, and 
        literacy programs authorized under this Act and the Adult 
        Education and Family Literacy Act, the appropriate Secretary is 
        authorized to negotiate with each State the levels of 
        performance expected to be achieved by such State based upon 
        the State's benchmarks established pursuant to section 
        152(a)(1) (hereinafter referred to as the `State adjusted 
        benchmarks'), for the core indicators of performance described 
        in section 154 (except for the indicators described under 
        subsections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5) of such 
        section). Such negotiations shall take into account--
                  ``(A) whether the levels will enable each State to 
                attain the State goals;
                  ``(B) how the levels compare with the levels 
                established by other States, taking into consideration 
                the specific circumstances, including economic 
                circumstances, of each State;
                  ``(C) how the levels compare with the model levels of 
                performance identified pursuant to subsection (c); and
                  ``(D) the extent to which such levels demonstrate 
                continuous improvement in performance by such State and 
                ensure an adequate return on the investment of Federal 
                funds.
          ``(2) Authority of governor.--The Governor of a State is 
        authorized to carry out the negotiation described in paragraph 
        (1) for programs authorized under titles II and III.
          ``(3) Authority of eligible state agency.--The eligible State 
        agency for adult education and literacy programs is authorized 
        to carry out the negotiation described in paragraph (1) for 
        programs authorized under the Adult Education and Family 
        Literacy Act.
  ``(b) Local Benchmarks for Employment and Training Programs.--Based 
on the expected levels of performance established pursuant to 
subsection (a), each State shall negotiate with the local workforce 
development board and the chief local elected official in each local 
workforce development area (consistent with section 122(d)(6)(A)) the 
levels of performance for each indicator that are expected for such 
local workforce development areas. Such levels of performance shall be 
known as `local benchmarks'.
  ``(c) Model Levels of Performance.--In order to encourage high levels 
of performance and advance the Nation's competitiveness, the Secretary 
of Labor and the Secretary of Education, in collaboration with the 
States, localities, and with representatives of business and industry, 
employees, employment and training service providers, State directors 
of adult education, providers of adult education and literacy services, 
individuals with expertise in serving the employment and training needs 
of disadvantaged youth, participants, parents and other interested 
partieswith expertise in the provision of employment, training, 
literacy, and related services, shall identify challenging model levels 
of performance (hereinafter referred to as `model levels of 
performance') with respect to the core indicators of performance 
described in section 154, with the exception of the indicators 
described under subsections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5).

``SEC. 154. CORE INDICATORS OF PERFORMANCE.

  ``(a) Core Indicators for Adult Employment and Training Programs.--
The common core indicators of performance for programs authorized under 
title III of this Act shall include measures of--
          ``(1) placement in unsubsidized employment;
          ``(2) retention in unsubsidized employment for not less than 
        6 months and for not less than 12 months, respectively;
          ``(3) increases in earnings or in earnings in combination 
        with employer-assisted benefits;
          ``(4) reductions in welfare dependency;
          ``(5) attainment of industry-recognized occupational skills;
          ``(6) attainment of a high school diploma or a general 
        equivalency diploma; and
          ``(7) such other measures of performance as the State may 
        wish to collect.
  ``(b) Core Indicators for Adult Education and Literacy Programs.--The 
core indicators of performance for programs conducted under the Adult 
Education and Family Literacy Act shall include measures of--
          ``(1) achievement in the areas of reading, writing, English 
        language acquisition, problem solving, numeracy, and other 
        literacy skills;
          ``(2) receipt of a high school diploma or a general 
        equivalency diploma;
          ``(3) entry into a postsecondary school, job retraining 
        program, employment, or career advancement;
          ``(4) attainment of the literacy skills and knowledge 
        individuals need to be productive and responsible citizens and 
        to become more actively involved in the education of their 
        children; and
          ``(5) such other measures of performance as the State may 
        wish to collect.
  ``(c) Core Indicators for Disadvantaged Youth.--The core indicators 
of performance for programs conducted under title II shall include 
measures of--
          ``(1) attainment of challenging State academic proficiencies;
          ``(2) attainment of secondary school diplomas or general 
        equivalency diplomas;
          ``(3) attainment of industry-recognized work readiness and 
        occupational skills;
          ``(4) placement in, retention in, and completion of 
        postsecondary education or advanced training, or placement and 
        retention in military service, employment, or qualified 
        apprenticeships; and
          ``(5) such other measures of performance as the State may 
        wish to collect.
  ``(d) Population Indicators.--
          ``(1) Adult employment and training programs.--The core 
        indicators of performance for programs conducted under title 
        III, as provided under subsection (a), shall include measures 
        of the success of individuals with multiple barriers to 
        employment, including economically disadvantaged individuals 
        (including welfare recipients), displaced homemakers, older 
        workers, and other individuals as determined by the State.
          ``(2) Adult education and literacy programs.--The core 
        indicators of performance for programs conducted under the 
        Adult Education and Family Literacy Act, as provided under 
        subsections (a) and (b), shall include measures of the success 
        of economically disadvantaged individuals, individuals with 
        limited literacy (as determined by the eligible agency), and 
        other individuals as determined by the eligible agency.
          ``(3) Disadvantaged youth programs.--The core indicators of 
        performance for programs conducted under title II, as provided 
        under subsection (c), shall include measures of the success of 
        hard to serve youth, including individuals who are school 
        dropouts or whose educational attainment is one or more grade 
        levels below the grade level appropriate to the age of the 
        individual, and other individuals as determined by the State.

``SEC. 155. REPORT ON PERFORMANCE.

  ``(a) In General.--Each State that receives funds under titles II and 
III of this Act and the Adult Education and Family Literacy Act shall 
annually prepare and submit to the Secretary of Labor and the Secretary 
of Education (for consideration by the appropriate Secretary) a report 
on the levels of performance achieved by the State with respect to the 
State adjusted benchmarks identified pursuant to section 153(a), and by 
each local workforce development area with respect to the local 
benchmarks identified pursuant to section 153(b) for programs 
authorized under title II and title III for each program year. In 
preparing such report, the State may include information on such 
additional benchmarks as the State may establish to meet the State 
goals.
  ``(b) Information Dissemination.--The Secretary of Labor and the 
Secretary of Education--
          ``(1) shall make the information contained in such reports 
        available to the general public through publication and other 
        appropriate methods;
          ``(2) shall disseminate State-by-State comparisons of the 
        information; and
          ``(3) shall provide the appropriate congressional committees 
        with copies of such reports.

``SEC. 156. INCENTIVE GRANTS AND SANCTIONS.

  ``(a) Incentive Grants.--
          ``(1) Award of grants.--From amounts made available under 
        section 452 and section 502 for any fiscal year, the 
        appropriate Secretary may award incentive grants to States 
        that--
                  ``(A) exceed, during the most recent 12-month period 
                for which data are available, the adjusted State 
                benchmarks described under section 153(a);
                  ``(B) demonstrate continuing progress toward 
                exceeding, during the 3-year period covered by the 
                State plan submitted under section 101, the adjusted 
                State benchmarks described under section 153(a); or
                  ``(C) demonstrate significant progress in the 
                coordination and integration of employment, training, 
                literacy, and other human resource and workforce 
                preparation programs within the State, and demonstrate 
                high performance in such programs.
          ``(2) Technical assistance.--The Secretary, upon request, 
        shall provide technical assistance to any State that does not 
        qualify for receipt of an incentive grant under paragraph (1).
          ``(3) Use of funds.--A State that receives an incentive grant 
        under paragraph (1) may use funds made available under such 
        grant only to carry out employment, training, or literacy 
        activities.
  ``(b) Sanctions.--
          ``(1) States.--
                  ``(A) Technical assistance.--If a State fails to meet 
                expected levels of performance for a program for any 
                program year as established pursuant to section 153(a), 
                the Secretary of Labor for programs established under 
                title II and title III, or the Secretary of Education 
                for programs established under the Adult Education and 
                Family Literacy Act, shall, upon request, provide 
                technical assistance, including assistance in the 
                development of a performance improvement plan.
                  ``(B) Reduction in amount of grant.--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 adjusted levels of performance.
          ``(2) Local areas.--
                  ``(A) Technical assistance.--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 
                section 153(b), the Governor, upon request to the 
                Secretary, shall provide technical assistance, 
                including the development of a performance improvement 
                plan.
                  ``(B) Corrective actions.--
                          ``(i) In general.--If such failure continues 
                        for a second consecutive year, the Governor 
                        shall take corrective actions, which may 
                        include development of a reorganization plan 
                        through which the Governor may require the 
                        appointment of a new local board (consistent 
                        with the criteria established under section 
                        122(b)), prohibit the use of designated service 
                        providers, require the redesignation of a local 
                        administrative entity (in such case chosen 
                        jointly by the Governor and the chief elected 
                        official in the local workforce development 
                        area), or such other actions as the Governor 
                        determines are appropriate, consistent with 
                        State law, and the requirements of this 
                        subparagraph.
                          ``(ii) Appeal by workforce development 
                        area.--A workforce development area that is 
                        subject to a reorganization plan under clause 
                        (i) may, not later than 30 days after receiving 
                        notice thereof, appeal to theSecretary to 
rescind or revise such plan. In such case, the Secretary shall make a 
final decision not later than 45 days after the receipt of the appeal.
                          ``(iii) Effective date.--The actions taken by 
                        the Governor under clause (i) shall not become 
                        effective until the time the appeal has expired 
                        (consistent with clause (ii)), or the Secretary 
                        has issued a final decision.''.

                      CHAPTER 3--OTHER PROVISIONS

SEC. 141. PROMPT ALLOCATION OF FUNDS.

  Section 162 of the Job Training Partnership Act (29 U.S.C. 1572) is 
amended--
          (1) in the second sentence of subsection (a), by striking 
        ``1980 Census or later data'' and inserting ``the most recent 
        satisfactory data from the Bureau of the Census''; and
          (2) by striking subsection (f).

SEC. 142. FISCAL CONTROLS; SANCTIONS.

  (a) Establishment of Fiscal Controls by States.--Section 164(a) of 
the Job Training Partnership Act (29 U.S.C. 1574(a)) is amended--
          (1) in paragraph (2)--
                  (A) in the first sentence of the matter preceding 
                subparagraph (A), before the period at the end insert 
                the following: ``, consistent with appropriate 
                circulars of the Office of Management and Budget''; and
                  (B) in subparagraph (C), by striking ``except as 
                specifically provided by this Act'' and inserting ``, 
                and procurement transactions between workforce 
                development boards and such governments shall be 
                conducted only on a cost-reimbursable basis'';
          (2) in paragraph (3)--
                  (A) by inserting before the second comma in the first 
                sentence ``consistent with appropriate circulars of the 
                Office of Management and Budget''; and
                  (B) by striking the second sentence and all that 
                follows;
          (3) in paragraph (4), by striking ``service delivery area and 
        substate area'' and inserting ``workforce development area'';
          (4) in paragraph (5), by striking ``service delivery area or 
        substate area'' and inserting ``workforce development area'';
          (5) in paragraph (6)(B), by striking ``substate areas and 
        service delivery areas'' and inserting ``workforce development 
        areas''; and
          (6) by striking paragraph (8).
  (b) Sanctions.--Section 164(b) of such Act (29 U.S.C. 1574(b)) is 
amended--
          (1) in paragraph (1)--
                  (A) in the matter preceding subparagraph (A)--
                          (i) by striking ``provision of'' and 
                        inserting ``requirement under''; and
                          (ii) by striking ``or the regulations under 
                        this Act'';
                  (B) in subparagraph (A), by inserting ``local'' 
                before ``plan''; and
                  (C) in subparagraph (B)--
                          (i) in clause (i), by striking ``private 
                        industry council'' and inserting ``workforce 
                        development board'';
                          (ii) in clause (iii), by striking ``service 
                        delivery'' and inserting ``workforce 
                        development''; and
                          (iii) in clause (iv), by striking ``service 
                        delivery'' each place it appears and inserting 
                        ``workforce development''; and
          (2) in paragraph (2)--
                  (A) in subparagraph (A)--
                          (i) in the matter preceding clause (i)--
                                  (I) by striking ``paragraph (1)(A)'' 
                                and inserting ``subparagraphs (A) and 
                                (B) of paragraph (1)''; and
                                  (II) by striking ``under the same 
                                terms and conditions as the disapproval 
                                of the plan''; and
                          (ii) in clause (i), by inserting ``the'' 
                        before ``appeal''; and
                  (B) in subparagraph (B)--
                          (i) by striking ``The actions'' and all that 
                        follows through ``, who'' and inserting ``The 
                        Secretary''; and
                          (ii) by striking ``60'' and inserting ``45''.
  (c) Evaluation by Comptroller General of the United States.--
Subsection (c) of section 164 of such Act (29 U.S.C. 1574(c)) is hereby 
repealed.
  (d) Repayment of Misexpenditures to the United States.--Subsection 
(d) of section 164 of such Act (29 U.S.C. 1574(d)) is amended to read 
as follows:
  ``(d) Repayment of Certain Amounts to the United States.--
          ``(1) In general.--Every recipient of funds under titles II 
        and III of this Act shall repay to the United States amounts 
        found not to have been expended in accordance with this Act.
          ``(2) Offset of repayment.--If the Secretary determines that 
        a State has expended funds made available under this Act in a 
        manner contrary to the requirements of this Act, the Secretary 
        may offset repayment of such expenditures against any other 
        amount to which the State is or may be entitled, except as 
        provided under subsection (e)(1).
          ``(3) Repayment from deduction by state.--If the Secretary 
        requires a State to repay funds as a result of a determination 
        that a local recipient or a subgrantee of such recipient in a 
        local workforce development area of the State has expended 
        funds contrary to the requirements of this Act, the Governor of 
        the State may use an amount deducted under paragraph (4) to 
        repay the funds, except as provided under subsection (e)(1).
          ``(4) Deduction by state.--The Governor may deduct an amount 
        equal to the misexpenditure described in paragraph (3) from 
        subsequent program year allocations to the local workforce 
        development area from funds reserved for the administrative 
        costs of such local programs under title II or title III, as 
        appropriate.
          ``(5) Limitations.--A deduction made by a State as described 
        under paragraph (4) shall not be made until such time as the 
        Governor has taken appropriate corrective action to ensure full 
        compliance within such local workforce development area with 
        regard to appropriate expenditures of funds under this Act.''.
  (e) Repayment of Certain Amounts to the United States.--Subsection 
(e) of section 164 of such Act (29 U.S.C. 1574(e)) is amended--
          (1) in paragraph (1)--
                  (A) in the first sentence--
                          (i) by inserting ``by the Secretary'' after 
                        ``upon a determination'';
                          (ii) by striking ``or failure'' and inserting 
                        ``failure''; and
                          (iii) by inserting before the period at the 
                        end the following: ``, or a pattern of failure 
                        with respect to paragraphs (2) and (3) of 
                        subsection (d)''; and
                  (B) in the second sentence--
                          (i) by inserting ``under this subsection or 
                        subsection (d)'' after ``shall be made''; and
                          (ii) by inserting before the period at the 
                        end the following: ``has been given to the 
                        recipient''; and
          (2) in paragraph (3), by striking the second sentence.
  (f) Remedies Construed as Exclusive Remedies.--Subsection (h) of 
section 164 of such Act (29 U.S.C. 1574(h)) is hereby repealed.

SEC. 143. REPORTS; RECORDKEEPING; INVESTIGATIONS.

  Section 165 of the Job Training Partnership Act (29 U.S.C. 1575) is 
amended--
          (1) in subsection (d)(1)(C)--
                  (A) by striking the comma after ``occupations''; and
                  (B) by striking the semicolon at the end and 
                inserting ``and placement for participants in 
                nontraditional employment;''; and
          (2) by striking subsection (h).

SEC. 144. ADMINISTRATIVE ADJUDICATION.

  Section 166(a) of the Job Training Partnership Act (29 U.S.C. 
1576(a)) is amended by striking the last sentence.

SEC. 145. NONDISCRIMINATION.

  Section 167 of the Job Training Partnership Act (29 U.S.C. 1577) is 
amended to read as follows:

``SEC. 167. NONDISCRIMINATION.

  ``(a) In General.--
          ``(1) Federal financial assistance.--For the purpose of 
        applying the prohibitions against discrimination on the basis 
        of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101 
        et seq.), on the basis of disability under section 504 of the 
        Rehabilitation Act of 1973 (29 U.S.C. 794), on the basis of sex 
        under title IX of the Education Amendments of 1972 (20 U.S.C. 
        1681 et seq.), or on the basis of race, color, or national 
        origin under title VI of the Civil Rights Actof 1964 (42 U.S.C. 
2000d et seq.), 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) Nondiscrimination.--No individual shall be excluded 
        from participation in, denied the benefits of, subjected to 
        discrimination under, or denied employment in the 
        administration of or in connection with any such program or 
        activity because of race, color, religion, sex, national 
        origin, age, political affiliation or belief, or status as a 
        qualified individual with a disability or as a participant of 
        such program or activity.
  ``(b) Secretarial Authority.--Whenever the Secretary finds that a 
State or other recipient has failed to comply with a provision of this 
section, or with an applicable regulation prescribed to carry out this 
section, the Secretary shall notify such State or recipient and seek 
compliance through the processes of conciliation, mediation or 
persuasion, as appropriate. If within a reasonable time the State or 
recipient fails or refuses to comply, the Secretary may--
          ``(1) refer the matter to the Attorney General with a 
        recommendation for appropriate action; or
          ``(2) take such other action as may be provided by law.
  ``(c) Authority of Attorney General.--When a matter is referred to 
the Attorney General pursuant to subsection (b)(1), the Attorney 
General may bring a civil action in any appropriate district court of 
the United States for such relief as may be appropriate, including 
injunctive relief.
  ``(d) Job Corps.--For the purposes of this section, Job Corps members 
shall be considered as the ultimate beneficiaries of Federal financial 
assistance.
  ``(e) Regulations.--The Secretary shall issue regulations necessary 
to implement this section not later than one year after the date of the 
enactment of the Employment, Training, and Literacy Enhancement Act of 
1997. Such regulations shall adopt standards for determining 
discrimination and procedures for enforcement that are consistent with 
the Acts referred to in a subsection (a)(1), as well as procedures to 
ensure that complaints filed under this section and such Acts are 
processed in a manner that avoids duplication of effort.''.

SEC. 146. JUDICIAL REVIEW.

  Section 168 of the Job Training Partnership Act (29 U.S.C. 1578) is 
hereby repealed.

SEC. 147. ADMINISTRATIVE PROVISIONS.

  Section 169 of the Job Training Partnership Act (29 U.S.C. 1579) is 
amended--
          (1) in the first sentence of subsection (a), by striking 
        ``such rules and regulations'' and all that follows and 
        inserting ``rules and regulations only to the extent necessary 
        to administer and ensure compliance with the specific 
        requirements of this Act.''; and
          (2) by striking subsection (e).

SEC. 148. PRESIDENTIAL AWARDS FOR OUTSTANDING PRIVATE SECTOR 
                    INVOLVEMENT IN JOB TRAINING PROGRAMS.

  Section 172 of the Job Training Partnership Act (29 U.S.C. 1582) is 
hereby repealed.

SEC. 149. CONSTRUCTION.

  Section 173 of the Job Training Partnership Act (29 U.S.C. 1583) is 
hereby repealed.

SEC. 150. LIMITATION ON CERTAIN COSTS.

  Part D of title I of the Job Training Partnership Act (29 U.S.C. 1571 
et seq.), as amended by this Act, is further amended by adding at the 
end the following:

``SEC. 172. LIMITATION ON CERTAIN COSTS.

  ``(a) In General.--The Secretary, after consultation with the 
Inspector General of the Department of Labor and the Comptroller 
General of the United States, shall develop regulations that define 
`administrative costs' for purposes of programs under titles II and 
III. Such definition shall reflect generally accepted accounting 
principles.
  ``(b) Limitation.--
          ``(1) In general.--Of the amounts allocated to local 
        workforce development areas for a program year under titles II 
        and III, not more that 10 percent of such amounts may be 
        expended for administrative costs.
          ``(2) Definition.--For purposes of paragraph (1), the term 
        `allocated' means allocated for a program year, as adjusted for 
        reallocations and reallotments and for transfers of funds in 
        accordance with this Act.''.

                  Subtitle D--Miscellaneous Provisions

SEC. 161. CRIMINAL PROVISIONS.

  (a) In General.--Section 182 of the Job Training Partnership Act is 
hereby repealed.
  (b) Savings Provision.--The repeal of section 182 of such Act made by 
subsection (a) does not affect in any way the amendment made by such 
section 182.

SEC. 162. REFERENCE.

  Section 183 of the Job Training Partnership Act (29 U.S.C. 1592) is 
amended to read as follows:

``SEC. 183. REFERENCE.

  ``Effective on the date of the enactment of the Employment, Training, 
and Literacy Enhancement Act of 1997, all references in any other 
provision of law (other than section 665 of title 18, United States 
Code) to the Comprehensive Employment and Training Act, or to the Job 
Training Partnership Act, as the case may be, shall be deemed to refer 
to Employment, Training, and Literacy Enhancement Act.''.

SEC. 163. REPEALERS.

  (a) In General.--Section 184 of the Job Training Partnership Act (29 
U.S.C. 801 et seq.) is hereby repealed.
  (b) Savings Provision.--The repeal of section 184 of such Act made by 
subsection (a) does not affect in any way the repealers made by such 
section 184.

     TITLE II--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR 
                          DISADVANTAGED YOUTH

SEC. 201. ADULT TRAINING PROGRAM.

  Title II of the Job Training Partnership Act (29 U.S.C. 1601 et seq.) 
is amended by striking part A of such title.

SEC. 202. SUMMER YOUTH EMPLOYMENT AND TRAINING PROGRAM.

  Title II of the Job Training Partnership Act (29 U.S.C. 1601 et seq.) 
is amended by striking part B of such title.

SEC. 203. DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                    GRANTS.

  (a) Authorization.--Title II of the Job Training Partnership Act (29 
U.S.C. 1601 et seq.), as amended by this Act, is further amended--
          (1) in the heading to read as follows:

 ``TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                               GRANTS'';

          (2) by striking the heading for part C of such title;
          (3) by redesignating section 261 as section 201; and
          (4) by inserting after section 201 (as redesignated) the 
        following:

``SEC. 202. AUTHORIZATION.

  ``(a) In General.--In the case of each State that in accordance with 
the requirements of sections 101 and 102 submits to the Secretary of 
Labor (hereinafter in this title referred to as the `Secretary') a 
State plan, the Secretary shall provide a grant to the State for the 
purpose of providing employment, job training, educational, and related 
assistance for disadvantaged youth in the State.
  ``(b) Amount.--The grant shall consist of the allotment determined 
for the State under section 203.''.
  (b) Allotment and Allocation Among States.--Title II of the Job 
Training Partnership Act (29 U.S.C. 1601 et seq.), as amended by this 
Act, is further amended--
          (1) by redesignating section 262 as section 203; and
          (2) in section 203 (as redesignated)--
                  (A) in the heading to read as follows:

``SEC. 203. ALLOTMENT AND ALLOCATION AMONG STATES.'';

                  (B) by striking subsections (b) and (c);
                  (C) by redesignating subsections (a) and (d) as 
                subsections (b) and (c), respectively;
                  (D) by inserting before subsection (b) (as 
                redesignated) the following:
  ``(a) In General.--Of the amount appropriated pursuant to section 
3(a)(1) to carry out this title for a fiscal year, the Secretary shall 
allot such amount in accordance with subsection (b).'';
                  (E) in subsection (b) (as redesignated)--
                          (i) in the heading to read as follows:
  ``(b) Allotment Among States.--'';
                          (ii) in paragraph (1) to read as follows:
          ``(1) Outlying areas.--
                  ``(A) In general.--From the amount appropriated for 
                any fiscal year to carry out this title, the Secretary 
                shall reserve not more than one quarter of one percent 
                to provide assistance to--
                          ``(i) the outlying areas; and
                          ``(ii) for each of the fiscal years 1998 
                        through 2001, to carry out the competition 
                        described in subparagraph (B), except that the 
                        amount reserved to carry out such subparagraph 
                        for any such fiscal year shall not exceed the 
                        amount reserved for the freely associated 
                        states for fiscal year 1997, from amounts 
                        reserved under section 262(a)(1) of the Job 
                        Training Partnership Act (29 U.S.C. 1642(a)(1)) 
                        (as such section was in effect on the day 
                        before the date of the enactment of Employment, 
                        Training, and Literacy Enhancement Act of 
                        1997).
                  ``(B) Limitation for freely associated states.--
                          ``(i) Competitive grants.--The Secretary 
                        shall use funds described in subparagraph 
                        (A)(ii) to award grants to Guam, American 
                        Samoa, the Commonwealth of the Northern Mariana 
                        Islands, and the freely associated states to 
                        carry out the purposes of this title.
                          ``(ii) Award basis.--The Secretary shall 
                        award grants pursuant to clause (i) on a 
                        competitive basis and pursuant to the 
                        recommendations of experts in the field of 
                        employment and training, working through the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii.
                          ``(iii) Assistance requirements.--Any freely 
                        associated state that desires to receive 
                        amounts under this title shall include in its 
                        application for assistance--
                                  ``(I) information demonstrating that 
                                it will meet all conditions that apply 
                                to States under this title;
                                  ``(II) an assurance that, 
                                notwithstanding any other provision of 
                                this title, it will use such amounts 
                                only for the direct provision of 
                                services; and
                                  ``(III) such other information and 
                                assurances as the Secretary may 
                                require.
                          ``(iv) Termination of eligibility.--
                        Notwithstanding any other provision of law, the 
                        freely associated states shall not receive any 
                        funds under this title for any program year 
                        that begins after September 30, 2001.
                          ``(v) Administrative costs.--The Secretary 
                        may provide not more than 5 percent of the 
                        amount made available for grants under this 
                        subparagraph to pay the administrative costs of 
                        the Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii, regarding activities assisted 
                        under this section.
                  ``(C) Additional requirement.--The provisions of 
                Public Law 95-134, permitting the consolidation of 
                grants by the outlying areas, shall not apply to funds 
                provided to those areas or to the freely associated 
                states under this section.
                  ``(D) Definition.--For purposes of this paragraph, 
                the term `freely associated states' means the Republic 
                of the Marshall Islands, the Federated States of 
                Micronesia, and the Republic of Palau.''; and
                          (iii) in paragraph (2)--
                                  (I) by inserting after the heading 
                                the following:
                  ``(A) In general.--'';
                                  (II) by striking ``82 percent of the 
                                remainder'' and all that follows and 
                                inserting the following: ``the 
                                remaining amount to the States pursuant 
                                to the formula contained in 
                                subparagraph (B).''; and
                                  (III) by adding at the end the 
                                following:
                  ``(B) Formula.--Subject to the provisions of 
                subparagraphs (C) and (D) of the amounts allotted to 
                States for this title for each fiscal year--
                          ``(i) 33\1/3\ percent shall be allotted on 
                        the basis of the relative number of unemployed 
                        individuals residing in areas of substantial 
                        unemployment within each State as compared to 
                        the total number of such unemployed individuals 
                        in all such areas of substantial unemployment 
                        in all States;
                          ``(ii) 33\1/3\ percent shall be allotted on 
                        the basis of the relative excess number of 
                        unemployed individuals who reside in each State 
                        as compared to the total excess number of 
                        unemployed individuals in all States; and
                          ``(iii) 33\1/3\ percent shall be allotted on 
                        the basis of the relative number of 
                        economically disadvantaged youth within each 
                        State as compared to the total number 
ofeconomically disadvantaged youth in all States.
                  ``(C) Minimum allotment.--
                          ``(i) 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.
                          ``(ii) Maximum percentage.--No State shall be 
                        allotted more than 130 percent of its allotment 
                        percentage for the fiscal year preceding the 
                        fiscal year for which the determination is 
                        made.
                  ``(D) Small state minimum allotment.--No State shall 
                receive less than one-quarter of one percent of the 
                amount available under this title for a fiscal year. 
                Amounts necessary for increasing such payments to 
                States to comply with the preceding sentence shall be 
                obtained by ratably reducing the amounts to be paid to 
                other States.''; and
                  (F) in subsection (c)(1)(A) (as redesignated)--
                          (i) in the heading, by striking 
                        ``Economically disadvantaged'' and inserting 
                        ``Disadvantaged''; and
                          (ii) in the matter preceding clause (i), by 
                        striking ``economically''.
  (c) Allocation Within States.--Title II of the Job Training 
Partnership Act (29 U.S.C. 1601 et seq.), as amended by this Act, is 
further amended by inserting after section 203 the following:

``SEC. 204. ALLOCATION WITHIN STATES.

  ``(a) Reservation for State Activities.--
          ``(1) In general.--
                  ``(A) Reservation.--The Governor of the State shall 
                reserve not more than 25 percent of the amount allotted 
                to the State under section 203(b) for a fiscal year to 
                carry out the activities described in this subsection.
                  ``(B) Matching funds for out-of-school youth 
                programs.--Of the amount reserved under subparagraph 
                (A), the Governor shall reserve 10 percent of the total 
                amount allotted to the State under section 203(b) for 
                any fiscal year to award grants in accordance with this 
                title to programs for disadvantaged youth services 
                that--
                          ``(i) serve only out-of-school youth; and
                          ``(ii) agree to provide funds from non-
                        Federal sources for such services in an amount 
                        equal to the Federal funds received under this 
                        title.
          ``(2) Required activities.--Activities described in paragraph 
        (1)(A) shall include the provision of additional assistance to 
        areas that have high concentrations of disadvantaged youth to 
        carry out the activities described in section 206.
          ``(3) Discretionary activities.--Activities described in 
        paragraph (1)(A) may include--
                  ``(A) subject to paragraph (4), administration by the 
                State of programs under this title;
                  ``(B) capacity building and technical assistance to 
                local workforce development areas and to providers of 
                disadvantaged youth services as authorized under this 
                title, including the development and training of staff, 
                members of local workforce development boards, and 
                employers and workplace mentors providing training 
                through programs authorized under this title;
                  ``(C) incentives for program coordination and 
                integration, performance awards, and research and 
                demonstrations;
                  ``(D) implementation of innovative disadvantaged 
                youth employment and training programs, pilot projects, 
                and demonstration projects which further the purposes 
                of this title; and
                  ``(E) support for a common management information 
                system across employment, training, literacy, and human 
                resource programs as identified in section 103.
          ``(4) Limitation.--Of the amount reserved by the Governor 
        under paragraph (1)(A), not more than 5 percent of the total 
        amount allotted to the State under section 203(b) may be used 
        for administration by the State of programs under this title.
  ``(b) Within State Allocation.--
          ``(1) In general.--The Governor of the State shall allocate 
        the remainder of the amount allotted to the State under section 
        203(b) to workforce development areas designated under section 
        121, for the purpose of providing services for disadvantaged 
        youth in accordance with section 206.
          ``(2) Within state formula.--
                  ``(A) Establishment.--The Governor, through the 
                collaborative process under section 102, and after 
                consultation with local chief elected officials in the 
                local workforce development areas, shall develop a 
                formula for the allocation of the remainder of funds 
                described in paragraph (1) to workforce development 
                areas, taking into account--
                          ``(i) the relative number of unemployed 
                        individuals residing in areas of substantial 
                        unemployment within each local workforce 
                        development area, as compared to the total 
                        number of such unemployed individuals residing 
                        within the State;
                          ``(ii) the relative number of disadvantaged 
                        youth residing within each local workforce 
                        development area as compared to the total 
                        number of disadvantaged youth residing within 
                        the State;
                          ``(iii) the relative excess number of 
                        unemployed individuals who reside within each 
                        local workforce development area as compared to 
                        the total excess number of unemployed 
                        individuals residing within the State; and
                          ``(iv) such additional factors as are 
                        determined appropriate by the State.
                  ``(B) Additional factors.--In establishing such 
                formula, the Governor shall ensure that--
                          ``(i) funds are distributed equitably 
                        throughout the State;
                          ``(ii) factors described in subparagraph (A) 
                        do not receive disproportionate weighting; and
                          ``(iii) such formula protects local workforce 
                        development areas from significant funding 
                        shifts from year to year.''.
  (d) Eligibility for Services.--Title II of the Job Training 
Partnership Act (29 U.S.C. 1601 et seq.), as amended by this Act, is 
further amended--
          (1) by redesignating section 263 as section 205; and
          (2) in section 205 (as redesignated)--
                  (A) in subsection (a)--
                          (i) in the heading to read as follows:
  ``(a) In General.--'';
                          (ii) in the matter preceding paragraph (1)--
                                  (I) by striking ``subsections (e) and 
                                (g)'' and inserting ``subsection (c)'';
                                  (II) by striking ``who is in 
                                school''; and
                                  (III) by striking ``part'' and 
                                inserting ``title''; and
                          (iii) in paragraph (1)(B) to read as follows:
          ``(B) if provided in the local plan developed pursuant to 
        section 122(d)(1), is age 14 through 24; and'';
                  (B) in subsection (b)--
                          (i) by amending the heading to read as 
                        follows:
  ``(b) Priority for Service.--'';
                          (ii) by redesignating paragraphs (1) through 
                        (7) as subparagraphs (B) through (H), 
                        respectively, and moving the margin for each 
                        such subparagraph two ems to the right;
                          (iii) by inserting before subparagraph (B) 
                        (as redesignated) the following:
                  ``(A) Individuals who are school dropouts.'';
                          (iv) in subparagraph (H) (as redesignated) to 
                        read as follows:
                  ``(H) Other disadvantaged youth who face serious 
                barriers to employment as identified by the local 
                workforce development area.''; and
                          (v) by amending the matter preceding 
                        subparagraph (A) (as added by clause (iii)) to 
                        read as follows:
          ``(1) Priority.--Of the disadvantaged youth described in 
        subsection (a), priority for service shall be given to school 
        dropouts and to other hard-to-serve youth.
          ``(2) Definition.--For the purposes of this title, the term 
        `hard-to-serve youth' includes--'';
                  (C) by striking subsections (c), (d), (f), (g), and 
                (h);
                  (D) by redesignating subsection (e) as subsection 
                (c); and
                  (E) in subsection (c) (as redesignated)--
                          (i) by striking ``subsection (a)(2) or 
                        (c)(2)'' and inserting ``subsection (a)''; and
                          (ii) by striking ``of individuals who face'' 
                        and all that follows and inserting ``described 
                        in subparagraphs (A) through (G) of subsection 
                        (b)(2).''.
  (e) Use of Funds.--Title II of the Job Training Partnership Act (29 
U.S.C. 1601 et seq.), as amended by this Act, is further amended--
          (1) by redesignating section 264 as section 206; and
          (2) in section 206 (as redesignated)--
                  (A) by striking subsection (a);
                  (B) by redesignating subsections (b), (c), and (d) as 
                subsections (a), (b), and (c), respectively;
                  (C) in subsection (a) (as redesignated)--
                          (i) in the heading to read as follows:
  ``(a) Program Design.--'';
                          (ii) in paragraph (1)--
                                  (I) in the heading to read as 
                                follows:
          ``(1) Essential elements.--'';
                                  (II) in the matter preceding 
                                subparagraph (A)--
                                          (aa) by striking ``part'' and 
                                        inserting ``title''; and
                                          (bb) by striking ``include'';
                                  (III) in subparagraph (A)--
                                          (aa) by inserting ``provide'' 
                                        after ``(A)'';
                                          (bb) by striking ``skill 
                                        levels and service needs'' and 
                                        inserting ``academic levels, 
                                        skill levels, and service 
                                        needs''; and
                                          (cc) by striking ``and 
                                        supportive service needs'' and 
                                        inserting ``supportive service 
                                        needs, and developmental needs 
                                        of such participants'';
                                  (IV) in subparagraph (B)--
                                          (aa) by striking 
                                        ``development of'' and 
                                        inserting ``develop''; and
                                          (bb) by inserting ``for each 
                                        participant'' after ``service 
                                        strategies''; and
                                  (V) by amending subparagraphs (C) and 
                                (D) to read as follows:
                  ``(C) integrate academic, occupational, and work-
                based learning opportunities;
                  ``(D) provide comprehensive guidance and counseling;
                  ``(E) provide postsecondary educational or training 
                opportunities, where appropriate;
                  ``(F) involve employers and parents in the design and 
                implementation of programs; and
                  ``(G) provide adult mentoring.'';
                          (iii) in paragraph (2)--
                                  (I) in subparagraph (A)--
                                          (aa) in the matter preceding 
                                        clause (i), by striking 
                                        ``service delivery'' and 
                                        inserting ``workforce 
                                        development''; and
                                          (bb) in clause (i), by 
                                        striking ``service delivery'' 
                                        and inserting ``workforce 
                                        development''; and
                                  (II) in subparagraph (B)--
                                          (aa) in clause (i), by 
                                        striking ``(i) Service 
                                        providers.--''; and
                                          (bb) by striking clause (ii);
                  (D) in subsection (b) (as redesignated)--
                          (i) in the matter preceding paragraph (1), by 
                        striking ``part'' and inserting ``title'';
                          (ii) in paragraph (1)--
                                  (I) in subparagraph (A), by striking 
                                ``section 204(b)(1)'' and inserting 
                                ``section 314(c)(4)'';
                                  (II) in subparagraph (C), by striking 
                                ``section 141(o)(1)'' and inserting 
                                ``section 141(11)(A)'';
                                  (III) in subparagraph (F), by 
                                inserting after ``(F)'' the following: 
                                ``paid and unpaid work experience, 
                                including summer 
employmentopportunities that are directly linked to academic, 
occupational, and workbased learning opportunities, which may 
include'';
                                  (IV) in subparagraph (G)--
                                          (aa) by striking ``in public 
                                        agencies, nonprofit agencies, 
                                        and other appropriate agencies, 
                                        institutions, and 
                                        organizations''; and
                                          (bb) by adding ``and'' at the 
                                        end;
                                  (V) by amending subparagraph (H) to 
                                read as follows:
                  ``(H) such other training and transition services 
                that assist disadvantaged youth in making the 
                transition to employment or to postsecondary education 
                or training, as determined appropriate by the local 
                workforce development area.''; and
                                  (VI) by striking subparagraphs (I) 
                                through (L); and
                          (iii) in paragraph (2)--
                                  (I) in subparagraph (A) to read as 
                                follows:
                  ``(A) assessment, outreach, staff development, job 
                development, and job search assistance activities;'';
                                  (II) in subparagraph (C), by striking 
                                ``and'' at the end;
                                  (III) in subparagraph (D)--
                                          (aa) by striking ``cash''; 
                                        and
                                          (bb) by striking the period 
                                        at the end and inserting ``; 
                                        and''; and
                                  (IV) by adding at the end the 
                                following:
                  ``(E) peer-centered activities encouraging 
                responsibility and other positive social behaviors 
                during non-school hours.'';
                  (E) in subsection (c) (as redesignated)--
                          (i) in paragraph (1)--
                                  (I) by striking ``service delivery'' 
                                and inserting ``workforce 
                                development'';
                                  (II) by striking ``private industry 
                                council'' and inserting ``local 
                                board''; and
                                  (III) by striking ``section 453(c)'' 
                                and inserting ``part D of title IV'';
                          (ii) in clauses (i) through (iii) of 
                        paragraph (2)(B), by striking ``service 
                        delivery'' each place it occurs and inserting 
                        ``workforce development'';
                          (iii) in paragraph (3)--
                                  (I) in subparagraph (A)--
                                          (aa) in the heading to read 
                                        as follows:
                  ``(A) Work-related activities.--'';
                                          (bb) in the first sentence, 
                                        by inserting after ``work 
                                        maturity skills training'' the 
                                        following: ``, summer 
                                        employment, job search 
                                        assistance, job club 
                                        activities, and other work-
                                        related activities'';
                                          (cc) in the first sentence, 
                                        by striking ``part'' and 
                                        inserting ``title'';
                                          (dd) in the first sentence, 
                                        by striking ``by either work 
                                        experience or other additional 
                                        services'' and inserting ``by 
                                        occupational and academic 
                                        learning opportunities'';
                                          (ee) in the first sentence, 
                                        by striking ``basic education 
                                        or occupational skills'' and 
                                        inserting ``basic education and 
                                        occupational skills''; and
                                          (ff) in the second sentence, 
                                        by striking ``, including the 
                                        Job Corps'';
                                  (II) by striking subparagraph (B);
                                  (III) by redesignating subparagraph 
                                (C) as subparagraph (B); and
                                  (IV) in subparagraph (B) (as 
                                redesignated)--
                                          (aa) by striking clause (i);
                                          (bb) by redesignating clause 
                                        (ii) as clause (i);
                                          (cc) in clause (i) (as 
                                        redesignated), by striking 
                                        ``part'' and inserting 
                                        ``title''; and
                                          (dd) by redesignating clause 
                                        (iii) as clause (ii);
                          (iv) in paragraph (5)--
                                  (I) in the heading, by striking 
                                ``Counseling'' and inserting ``Follow-
                                up, counseling'';
                                  (II) by striking ``part'' and 
                                inserting ``title''; and
                                  (III) by striking ``for a period of 
                                up to 1 year'';
                          (v) by striking paragraph (6);
                          (vi) in paragraph (7), by striking ``service 
                        delivery'' and inserting ``workforce 
                        development'' and
                          (vii) by redesignating paragraph (7) as 
                        paragraph (6).
  (f) Selection of Service Providers.--Title II of the Job Training 
Partnership Act (29 U.S.C. 1601 et seq.), as amended by this Act, is 
further amended by adding after section 206 (as redesignated), the 
following:

``SEC. 207. SELECTION OF SERVICE PROVIDERS.

  ``From funds made available under section 204(b) to a local workforce 
development area, the local board for such local area shall award 
grants, on a competitive basis, to eligible providers to carry out the 
disadvantaged youth programs described in section 206.''.
  (g) Educational Linkages.--Title II of the Job Training Partnership 
Act (29 U.S.C. 1601 et seq.), as amended by this Act, is further 
amended--
          (1) by redesignating section 265 as section 208; and
          (2) in section 208 (as redesignated)--
                  (A) in subsection (a), by striking ``service 
                delivery'' and inserting ``workforce development'';
                  (B) in subsection (b)--
                          (i) in the matter preceding paragraph (1), by 
                        striking ``service delivery'' and inserting 
                        ``workforce development''; and
                          (ii) in paragraph (6) to read as follows:
          ``(6) title I of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996;'';
                  (C) in subsection (c)--
                          (i) in the first sentence, by striking 
                        ``service delivery'' and inserting ``workforce 
                        development''; and
                          (ii) in the second sentence, by striking ``, 
                        including programs conducted under part A''; 
                        and
                  (D) by striking subsection (d).
  (h) Transfer of Funds.--Title II of the Job Training Partnership Act 
(29 U.S.C. 1601 et seq.), as amended by this Act, is further amended by 
striking section 266.

  TITLE III--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR ADULTS

SEC. 301. ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS.

  Title III of the Job Training Partnership Act (29 U.S.C. 1651 et 
seq.) is amended to read as follows:

    ``TITLE III--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

``SEC. 301. PURPOSE.

  ``The purpose of this title is to establish a high-quality, efficient 
system of employment, job training, and related assistance that--
          ``(1) provides individuals with choice in the selection of 
        employment and training options that will facilitate the 
        transition of such individuals into productive, high skills, 
        private sector jobs;
          ``(2) provides quality training of such individuals for the 
        21st century; and
          ``(3) drives resources and authority to States and local 
        communities for the design of job training programs.

      ``PART A--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

``SEC. 311. AUTHORIZATION.

  ``(a) In General.--In the case of each State that in accordance with 
the requirements of sections 101 and 102 submits to the Secretary of 
Labor (hereinafter in this title referred to as the `Secretary') a 
State plan, the Secretary shall provide fundsto the State for the 
purpose of providing employment, job training, and related assistance 
for adults and dislocated workers in the State, in accordance with this 
title.
  ``(b) Amount.--The funds described in subsection (a) shall consist of 
the allotments determined for the State under section 312.

``SEC. 312. ALLOTMENT AMONG STATES.

  ``(a) In General.--Of the amount appropriated pursuant to section 
3(a)(2) to carry out this title for a fiscal year, the Secretary--
          ``(1) shall allot the total amount appropriated pursuant to 
        section 3(a)(2)(A) in accordance with subsection (b)(1); and
          ``(2)(A) shall allot 80 percent of the amount appropriated 
        pursuant to section 3(a)(2)(B) in accordance with the 
        subsection (b)(2); and
          ``(B) shall reserve the remainder of the amount appropriated 
        pursuant to section 3(a)(2)(B) for use under part B.
  ``(b) Allotment Among States.--
          ``(1) Adult employment and training.--
                  ``(A) Reservation for outlying areas.--
                          ``(i) In general.--Of the amount allotted 
                        under subsection (a)(1), the Secretary shall 
                        allot not more than one quarter of one percent 
                        among the outlying areas.
                          ``(ii) Applicability of additional 
                        requirements.--Of the amount allotted under 
                        clause (i), the Secretary shall award grants to 
                        Guam, American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, and the freely 
                        associated states in accordance with the 
                        requirements of section 203(b)(1).
                  ``(B) States.--
                          ``(i) In general.--After determining the 
                        amount to be allotted under subparagraph (A), 
                        the Secretary shall allot the remaining amount 
                        to the States pursuant to the formula contained 
                        in clause (ii).
                          ``(ii) Formula.--Subject to the provisions of 
                        clause (iii), of the amounts allotted to States 
                        for adult employment and training under this 
                        title for each fiscal year--
                                  ``(I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals 
                                residing in areas of substantial 
                                unemployment within each State as 
                                compared to the total number of such 
                                unemployed individuals in all such 
                                areas of substantial unemployment in 
                                all States;
                                  ``(II) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                excess number of unemployed individuals 
                                within each State as compared tothe 
total excess number of unemployed individuals in all States; and
                                  ``(III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of economically disadvantaged 
                                adults within each State as compared to 
                                the total number of economically 
                                disadvantaged adults in all States.
                          ``(iii) Minimum allotment.--
                                  ``(I) 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.
                                  ``(II) Maximum percentage.--No State 
                                shall be allotted more than 130 percent 
                                of its allotment percentage for the 
                                fiscal year preceding the fiscal year 
                                for which the determination is made.
                          ``(iv) Small state minimum allotment.--No 
                        State shall receive less than one-quarter of 
                        one percent of the amount available under this 
                        subparagraph for a fiscal year. Amounts 
                        necessary for increasing such payments to 
                        States to comply with the preceding sentence 
                        shall be obtained by ratably reducing the 
                        amounts to be paid to other States.
          ``(2) Dislocated workers.--
                  ``(A) Reservation for outlying areas.--
                          ``(i) In general.--Of the amount allotted 
                        under subsection (a)(2)(A), the Secretary shall 
                        allot not more than one quarter of one percent 
                        among the outlying areas.
                          ``(ii) Applicability of additional 
                        requirements.--Of the amount allotted under 
                        clause (i), the Secretary shall award grants to 
                        Guam, American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, and the freely 
                        associated states in accordance with the 
                        requirements of section 203(b)(1).
                  ``(B) States.--
                          ``(i) In general.--After determining the 
                        amount to be allotted under subparagraph (A), 
                        the Secretary shall allot the remaining amount 
                        to the States pursuant to the formula contained 
                        in clause (ii).
                          ``(ii) Formula.--Subject to the provisions of 
                        clause (iii), of the amounts allotted to States 
                        for dislocated worker employment and training 
                        under this title for each fiscal year--
                                  ``(I) 33\1/3\ percent 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;
                                  ``(II) 33\1/3\ percent 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 
                                subclause, 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); and
                                  ``(III) 33\1/3\ percent 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.
                          ``(iii) Minimum allotment.--
                                  ``(I) 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.
                                  ``(II) Maximum percentage.--No State 
                                shall be allotted more than 130 percent 
                                of its allotment percentage for the 
                                fiscal year preceding the fiscal year 
                                for which the determination is made.
                          ``(iv) Small state minimum allotment.--No 
                        State shall receive less than one-quarter of 
                        one percent of the amount available under this 
                        subparagraph for a fiscal year. Amounts 
                        necessary for increasing such payments to 
                        States to comply with the preceding sentence 
                        shall be obtained by ratably reducing the 
                        amounts to be paid to other States.

``SEC. 313. ALLOCATION WITHIN STATES.

  ``(a) Reservations for State Activities.--
          ``(1) Adult employment and training.--
                  ``(A) In general.--The Governor of the State shall 
                reserve not more than 15 percent of the total amount 
                allotted to the State under section 312(b)(1) for a 
                fiscal year for statewide activities for employment, 
                job training, and related assistance for adults.
                  ``(B) Allowable activities.--Such activities may 
                include--
                          ``(i) subject to subparagraph (C), 
                        administration by the State of programs under 
                        this title;
                          ``(ii) capacity building and technical 
                        assistance to local workforce development 
                        areas, full service employment and training 
                        delivery systems, and service providers 
                        including the development and training of staff 
                        and the development of exemplary program 
                        activities;
                          ``(iii) incentives for program coordination 
                        and integration, 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, and 
                        the establishment and implementation of 
                        programs targeted to empowerment zones;
                          ``(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 full 
                        service employment and training delivery system 
                        established in accordance with section 123;
                          ``(vii) support for a common management 
                        information system across employment, training, 
                        literacy, and human resource programs as 
                        identified in section 103;
                          ``(viii) support for the identification of 
                        eligible training providers as required under 
                        section 124; and
                          ``(ix) implementation of innovative programs 
                        for displaced homemakers and programs to 
                        increase the number of individuals training and 
                        placed in nontraditional employment.
                  ``(C) Limitation.--Of the amount reserved by the 
                Governor under subparagraph (A) not more than 5 percent 
                of the total amount allotted to the State under section 
                312(b)(1) for a fiscal year may be used for 
                administration by the State of programs under this 
                part.
          ``(2) Dislocated workers employment and training.--
                  ``(A) In general.--The Governor of the State shall 
                reserve not more than 30 percent of the total amount 
                allotted to the State under section 312(b)(2) for a 
                fiscal year for statewide activities for employment, 
                job training, and related assistance for dislocated 
                workers.
                  ``(B) Required activities.--Such activities shall 
                include--
                          ``(i) rapid response activities carried out 
                        by a designated State dislocated worker unit, 
                        working in conjunction with the local workforce 
                        development board and the chief elected 
                        official in an affected local workforce 
                        development area; and
                          ``(ii) additional assistance to areas that 
                        experience disasters, mass layoffs or plant 
                        closings, or other events that precipitate 
                        substantial increases in the number of 
                        unemployed workers, working in conjunction with 
                        the local workforce development board and the 
                        chief elected official in affected local 
                        workforce development areas.
                  ``(C) Discretionary activities.--Such activities may 
                include those activities described in paragraph (1)(B).
                  ``(D) Limitation.--Of the amount reserved by the 
                Governor under subparagraph (A) not more than 10 
                percent of the total amount allotted to the State under 
                section 312(b)(2) for a fiscal year may be used for 
                activities described in paragraph (1)(B) and of that 
                amount not more than 5 percent of the total amount 
                allotted to the State under section 312(b)(2) for a 
                fiscal year may be used for administration by the State 
                of programs under this part.
  ``(b) Within State Allocation.--
          ``(1) Allocation.--
                  ``(A) In general.--The Governor of the State shall 
                allocate the remainder of the amounts allotted to the 
                State under section 312 to workforce development areas 
                designated under section 121 for the purpose of 
                providing a single system of employment and training 
                services for adults and dislocated workers in 
                accordance with section 314.
                  ``(B) Additional requirements.--(i) Funds allocated 
                under paragraph (2)(B), shall be used by a local 
                workforce development area to contribute 
                proportionately to the costs of the local full service 
                employment and training delivery system, and to pay for 
                services provided to adults, in the local area, 
                consistent with section 314.
                  ``(ii) Funds allocated under paragraph (2)(C), shall 
                be used by a local workforce development area to 
                contribute proportionately to the costs of the local 
                full service employment and training delivery system, 
                and to pay for services provided to dislocated workers, 
                in the local area, consistent with section 314.
          ``(2) Methods.--
                  ``(A) In general.--The Governor, through the 
                collaborative process under section 102, and after 
                consultation with local chief elected officials in the 
                local workforce development areas, shall allocate the 
                remainder of funds described in subsection (a)(1)(A) 
                for adult employment and training in accordance with 
                subparagraph (B), and the funds described in subsection 
                (a)(2)(A) for dislocated workers in accordance with 
                subparagraph (C).
                  ``(B) Adult employment and training formula.--In 
                allocating the funds for adult employment and training, 
                the individuals described in subparagraph (A) shall 
                take into account--
                          ``(i) the relative number of unemployed 
                        individuals residing in local areas of 
                        substantial unemployment within each workforce 
                        development area in the State as compared to 
                        the total number of such unemployed individuals 
                        in all such areas of substantial unemployment 
                        in the State;
                          ``(ii) the relative excess number of 
                        unemployed individuals within each local 
                        workforce development area of the State as 
                        compared to the total excess number of 
                        unemployed individuals in the State;
                          ``(iii) the relative number of economically 
                        disadvantaged adults within each workforce 
                        development area of the State as compared to 
                        the total number of economically disadvantaged 
                        adults in the State; and
                          ``(iv) such other factors as determined 
                        appropriate by the State.
                  ``(C) Dislocated worker formula.--In allocating funds 
                for dislocated workers, individuals described in 
                subparagraph (A) shall take into account--
                          ``(i) the relative number of unemployed 
                        individuals residing in local areas of 
                        substantial unemployment within each workforce 
                        development area in the State as compared to 
                        the total number of such unemployed individuals 
                        in all such areas of substantial unemployment 
                        in the State;
                          ``(ii) the relative excess number of 
                        unemployed individuals within each local 
                        workforce development area of the State as 
                        compared to the total excess number of 
                        unemployed individuals in the State;
                          ``(iii) the relative number of individuals 
                        who have been unemployed for 15 weeks or more 
                        within each workforce development area of the 
                        State as compared to the total number of such 
                        unemployed individuals in the State; and
                          ``(iv) such other factors as determined 
                        appropriate by the State, which may include--
                                  ``(I) insured unemployment data;
                                  ``(II) unemployment concentrations;
                                  ``(III) plant closing and mass layoff 
                                data;
                                  ``(IV) declining industries data;
                                  ``(V) farmer-rancher economic 
                                hardship data; and
                                  ``(VI) long-term unemployment data.
          ``(3) Additional factors.--In establishing the formulas 
        described in paragraph (2), the Governor shall ensure that--
                  ``(A) such formulas distribute funds equitably 
                throughout the State;
                  ``(B) no one factor described in paragraph (2) 
                receives disproportionate weighting; and
                  ``(C) such formulas protect local workforce 
                development areas from significant funding shifts from 
                year to year.
          ``(4) Transfer authority.--A local workforce development area 
        is authorized to transfer up to 20 percent of the funds 
        received under this subsection between adult employment and 
        training and dislocated worker allocations if such transfer is 
        approved by the Governor.

``SEC. 314. USE OF AMOUNTS.

  ``(a) Core Services.--Amounts allocated for adults under section 
313(b)(2)(B) and for dislocated workers under section 313(b)(2)(C) 
shall be used to provide core services described in section 123(d) to 
adults and dislocated workers, respectively, through a full service 
employment and training delivery system in accordance with such 
section.
  ``(b) Intensive Services.--
          ``(1) In general.--Amounts allocated for adults under section 
        313(b)(2)(B) and for dislocated workers under section 
        313(b)(2)(C) shall be used to provide intensive services to 
        adults and dislocated workers, respectively--
                  ``(A)(i) who are unable to obtain employment through 
                core services under subsection (a); and
                  ``(ii) who have been determined to be in need of more 
                intensive services in order to gain employment; or
                  ``(B)(i) who are employed but are economically 
                disadvantaged despite such employment; and
                  ``(ii) who are determined to be in need of such 
                intensive services in order to gain employment that 
                allows for self-sufficiency.
          ``(2) Delivery of services.--Such intensive services shall be 
        provided--
                  ``(A) directly through full service eligible 
                providers identified pursuant to section 123(c); or
                  ``(B) through contracts through full service 
                employment and training delivery systems 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 participant to achieve the 
                employment goal.
                  ``(C) Group counseling.
                  ``(D) Individual counseling and career planning.
                  ``(E) Case management for participants receiving 
                training services under subsection (c).
                  ``(F) Follow-up services for participants placed in 
                training or employment, for up to 1 year, to assist in 
                retention or advancement in employment.
  ``(c) Training Services.--
          ``(1) In general.--Amounts allocated for adults under section 
        313(b)(2)(B) and for dislocated workers under section 
        313(b)(2)(C) shall be used to provide training services to 
        adults and dislocated workers, respectively--
                  ``(A) who are unable to obtain employment through 
                core services under subsection (a);
                  ``(B) who are in need of training services in order 
                to gain employment as a result of determinations made 
                through--
                          ``(i) initial assessments under subsection 
                        (a); or
                          ``(ii) comprehensive and specialized 
                        assessments under subsection (b)(3)(A); or
                  ``(C)(i) who are employed but are economically 
                disadvantaged despite such employment; and
                  ``(ii) who are determined to be in need of such 
                training services in order to gain employment that 
                allows for self-sufficiency.
          ``(2) Participant qualification.--
                  ``(A) Requirements.--Except as provided in 
                subparagraph (B), provision of such training services 
                shall be limited to participants who--
                          ``(i) are unable to obtain other grant 
                        assistance for such services, including Federal 
                        Pell Grants established under title IV of the 
                        Higher Education Act of 1965 (20 U.S.C. 1070 et 
                        seq.); or
                          ``(ii) require assistance beyond the 
                        assistance made available under other grant 
                        assistance programs, including Federal Pell 
                        Grants.
                  ``(B) Reimbursements.--Training services may be 
                provided under this subsection to an individual who 
                otherwise meets the requirements of this subsection 
                while an application for a Federal Pell Grant or other 
                grant assistance is pending, except that if such 
                individual is subsequently awarded a Federal Pell Grant 
                or other grant assistance, appropriate reimbursement 
                shall be made to the local workforce development area 
                from such Federal Pell Grant or other grant assistance.
          ``(3) Provider qualification.--Such training services shall 
        be provided through training providers identified under in 
        accordance with section 124.
          ``(4) Types of services.--Such 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, which may include cooperative 
                education programs.
                  ``(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.
          ``(5) Individual choice requirements.--
                  ``(A) In general.--All training services under this 
                section shall be provided through service delivery 
                methods that, to the extent practicable, maximize 
                consumer choice in the selection of eligible providers 
                of training services.
                  ``(B) Information on eligible providers.--Each local 
                workforce development board, through the full service 
                employment and training delivery system, shall make 
                available--
                          ``(i) the list of eligible providers of 
                        training services required under section 124, 
                        with a description of the training courses 
                        available from such providers and a list of the 
                        names of on-the-job training providers; and
                          ``(ii) the performance information described 
                        in section 124 relating to such providers.
                  ``(C) Purchase of services.--An individual eligible 
                for training services under this section may select an 
                eligible provider of training services from the list of 
                providers described in subparagraph (B)(i). Upon such 
                selection, the full service eligible provider shall, to 
                the extent practicable, refer such individual to the 
                selected eligible provider of training services and 
                arrange for payment for such services.
          ``(6) Additional requirements.--
                  ``(A) Use of skill grants.--
                          ``(i) In general.--Except as provided in 
                        clause (ii) and clause (iii), training services 
                        under this section shall be provided through 
                        the use of skill grants in accordance with this 
                        subsection, and shall be distributed to 
                        eligible individuals through full service 
                        eligible providers or affiliated sites as 
                        described in section 123.
                          ``(ii) Exceptions.--Training services 
                        authorized under this title may be provided 
                        pursuant to a contract for services in lieu of 
                        a skill grant if the requirements of paragraph 
                        (5) are met and 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 qualified 
                                providers of 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 
                                qualified providers of training 
                                services 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.
                          ``(iii) Transition.--Each State shall, not 
                        later than three years after the date of the 
                        enactment of the Employment, Training, and 
                        Literacy Enhancement Act of 1997, fully 
                        implement the requirements of clause (i). 
                        Nothing in this Act shall prohibit a State from 
                        beginning such implementation at an earlier 
                        date.
                  ``(B) Linkage to occupations in demand.--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, except that a local workforce development 
                board may approve training in occupations determined by 
                the local board to be in sectors of the economy which 
                have a high potential for sustained demand or growth in 
                the local workforce development area.
  ``(d) Additional Uses of Amounts.--
          ``(1) Supportive services.--Amounts allocated for adults 
        under section 313(b)(2)(B) and for dislocated workers under 
        section 313(b)(2)(C) may be used to provide supportive services 
        for adults and dislocated workers, respectively--
                  ``(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 
                313(b) may be used to provide needs-related payments to 
                adults and dislocated workers who are unemployed and do 
                not qualify for (or have ceased to qualify for) 
                unemployment compensation for the purpose of enabling 
                such individuals to participate in 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 may be eligible to receive needs-
                related payments under this paragraph only if such 
                worker was enrolled in training by the end of the 13th 
                week of the worker's most recent layoff, 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.--From funds allocated to local workforce development 
areas for adult employment and training under section 313(b)(1)(B)(i), 
priority shall be given to welfare recipients and other economically 
disadvantaged individuals with multiple barriers to employment for 
receipt of intensive services and training services provided under 
subsections (b) and (c) of section 314, respectively.

                      ``PART B--NATIONAL PROGRAMS

``SEC. 321. NATIONAL EMERGENCY GRANTS.

  ``(a) In General.--From the amount reserved under section 312(a)(2), 
the Secretary of Labor is authorized to award national emergency grants 
in a timely manner--
          ``(1) to an entity described in subsection (b) to provide 
        employment and training assistance to workers affected by major 
        economic dislocations, such as plant closures, mass layoffs, or 
        closures and realignments of military installations; and
          ``(2) to provide assistance to the Governor of any State 
        within the boundaries of which is an area that has suffered an 
        emergency or a major disaster as defined in paragraphs (1) and 
        (2), respectively, of section 102 of The Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(1) 
        and (2)) (referred to in this section as the `disaster area').
  ``(b) Employment and Training Assistance Requirements.--
          ``(1) Application.--To be eligible to receive a grant under 
        subsection (a)(1), an entity shall submit an application to the 
        Secretary of Labor at such time, in such manner, and 
        accompanied by such information, as the Secretary may 
        reasonably require.
          ``(2) Eligible entity.--For purposes of this section, the 
        term `entity' means a State, local workforce development board, 
        employer or employer association, worker-management transition 
        assistance committee or other employer-employee entity, 
        representative of employees, community development corporation 
        or community-based organization, or an industry consortia
  ``(c) Disaster Relief Employment Assistance Requirements.--
          ``(1) In general.--Funds made available under subsection 
        (a)(2)--
                  ``(A) shall be used exclusively to provide employment 
                on projects that provide food, clothing, shelter, and 
                other humanitarian assistance for disaster victims, and 
                projects regarding demolition, cleaning, repair, 
                renovation, and reconstruction of damaged and destroyed 
                structures, facilities, and lands located within the 
                disaster area; and
                  ``(B) may be expended through public and private 
                agencies and organizations engaged in such projects.
          ``(2) Eligibility.--An individual shall be eligible to be 
        offered disaster relief 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. 322. SKILL UPGRADING PROJECTS IN ENTERPRISE ZONES OR EMPOWERMENT 
                    COMMUNITIES.

  ``From funds made available under section 312(a)(2), the Secretary of 
Labor is authorized to award grants to assist projects that provide 
training to upgrade the skill of employed workers who reside and are 
employed in enterprise zones or empowerment communities.''.

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

 Subtitle A--Employment and Training Programs for Native Americans and 
                    Migrant and Seasonal Farmworkers

SEC. 401. NATIVE AMERICAN PROGRAM.

  Section 401 of the Job Training Partnership Act (29 U.S.C. 1671) is 
amended to read as follows:

``SEC. 401. NATIVE AMERICAN PROGRAMS.

  ``(a) Purpose.--
          ``(1) In general.--The purpose of this section is to support 
        employment and training activities for Indian, Alaska Native, 
        and Native Hawaiian individuals in order--
                  ``(A) to develop more fully the academic, 
                occupational, and literacy skills of such individuals;
                  ``(B) to make such individuals more competitive in 
                the workforce; and
                  ``(C) to promote the economic and social development 
                of Indian, Alaska Native, and Native Hawaiian 
                communities in accordance with the goals and values of 
                such communities.
          ``(2)  Indian policy.--All programs assisted under this 
        section shall be administered in a manner consistent with the 
        principles of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
        government relationship between the Federal Government and 
        Indian tribal governments.
  ``(b) Definitions.--As used in this section:
          ``(1) Alaska native.--The term `Alaska Native' means a Native 
        as such term is defined in section 3(b) of the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1602(b)).
          ``(2) Indian, indian tribe, and tribal organization.--The 
        terms `Indian', `Indian tribe', and `tribal organization' have 
        the meanings given such terms in subsections (d), (e), and (l), 
        respectively, of section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).
          ``(3) Native hawaiian and native hawaiian organization.--The 
        terms `Native Hawaiian' and `Native Hawaiian organization' have 
        the meanings given such terms in paragraphs (1) and (3), 
        respectively, of section 9212 of the Native Hawaiian Education 
        Act (20 U.S.C. 7912).
  ``(c) Program Authorized.--The Secretary of Labor shall make grants 
to, or enter into contracts or cooperative agreements with, Indian 
tribes, tribal organizations, Alaska Native entities, Indian-controlled 
organizations serving Indians, or Native Hawaiian organizations to 
carry out the authorized activities described in subsection (d).
  ``(d) Authorized Activities.--
          ``(1) In general.--Funds made available under this section 
        shall be used to carry out the activities described in 
        paragraphs (2) and (3) that--
                  ``(A) are consistent with this section; and
                  ``(B) are necessary to meet the needs of Indians or 
                Native Hawaiians preparing to enter, renter, or retain 
                unsubsidized employment.
          ``(2) Employment and training activities and supplemental 
        services.--
                  ``(A) In general.--Funds made available under this 
                section shall be used for--
                          ``(i) comprehensive workforce and career 
                        development activities for Indians or Native 
                        Hawaiians; or
                          ``(ii) supplemental services for Indian or 
                        Native Hawaiian youth on or near Indian 
                        reservations and in Oklahoma, Alaska, or 
                        Hawaii.
                  ``(B) Special rule.--Notwithstanding any other 
                provision of this section, individuals who were 
                eligible to participate in programs under section 401 
                of the Job Training Partnership Act (29 U.S.C. 1671) 
                (as such section was in effect on the day before the 
                date of enactment of this Act) shall be eligible to 
                participate in an activity assisted under subparagraph 
                (A)(i).
  ``(e) Program Plan.--In order to receive a grant or enter into a 
contract or cooperative agreement under this section an entity 
described in subsection (c) shall submit to the Secretary of Labor a 
plan that describes a 2-year strategy for meeting the needs of Indian 
or Native Hawaiian individuals, as appropriate, in the area served by 
such entity. Such plan--
          ``(1) shall be consistent with the purposes of this section;
          ``(2) shall identify the population to be served;
          ``(3) shall identify the education and employment needs of 
        the population to be served and the manner in which the 
        services to be provided will strengthen the ability of the 
        individuals served to obtain or retain unsubsidized employment;
          ``(4) shall describe the services to be provided and the 
        manner in which such services are to be integrated with other 
        appropriate services; and
          ``(5) shall describe the goals and benchmarks to be used to 
        assess the performance of entities in carrying out the 
        activities assisted under this section.
  ``(f) Consolidation of Funds.--Each entity receiving assistance under 
this section may consolidate such assistance with assistance received 
from related programs in accordance with the provisions of the Indian 
Employment, Training and Related Services Demonstration Act of 1992 (25 
U.S.C 3401 et seq.).
  ``(g) Nonduplicative and Nonexclusive Services.--Nothing in this 
section shall be construed--
          ``(1) to limit the eligibility of any entity described in 
        subsection (c) to participate in any activity offered by a 
        State or local entity under this Act; or
          ``(2) to preclude or discourage any agreement, between any 
        entity described in subsection (c) and any State or local 
        entity, to facilitate the provision of services by such entity 
        or to the population served by such entity.
  ``(h) Administrative Provisions.--
          ``(1) Organizational unit established.--The Secretary of 
        Labor shall designate a single organizational unit that shall 
        have as its primary responsibility the administration of the 
        activities authorized under this section.
          ``(2) Regulations.--The Secretary of Labor shall consult with 
        the entities described in subsection (c)(1) in establishing 
        regulations to carry out this section, including performance 
        measures for entities receiving assistance under such 
        subsection, taking into account the economic circumstances of 
        such groups, and in developing a funding distribution plan that 
        takes into consideration previous levels of funding.
          ``(3) Technical assistance.--The Secretary of Labor, through 
        the unit established under paragraph (1), are authorized to 
        provide technical assistance to entities described in 
        subsection (c) that receive assistance under this section to 
        enable such entities to improve the workforce and career 
        development activities provided by such entities.''.

SEC. 402. MIGRANT AND SEASONAL FARMWORKER PROGRAM.

  Section 402 of the Job Training Partnership Act (29 U.S.C. 1672) is 
amended to read as follows:

``SEC. 402. MIGRANT AND SEASONAL FARMWORKER PROGRAM.

  ``(a) In General.--The Secretary of Labor shall make grants to, or 
enter into contracts with, eligible entities to carry out the 
activities described in subsection (d).
  ``(b) Eligible Entities.--To be eligible to receive a grant or enter 
into a contract under this section, an entity shall have an 
understanding of the problems of migrant farmworkers and seasonal 
farmworkers, a familiarity with the area to be served, and the ability 
to demonstrate a capacity to administer effectively a diversified 
program of workforce and career development activities for migrant 
farmworkers and seasonal farmworkers.
  ``(c) Program Plan.--
          ``(1) In general.--To be eligible to receive a grant or enter 
        into a contract under this section, an entity described in 
        subsection (b) shall submit to the Secretary of Labor a plan 
        that describes a 2-year strategy for meeting the needs of 
        migrant farmworkers and seasonal farmworkers and their 
        dependents in the area to be served by such entity.
          ``(2) Contents.--Such plan shall--
                  ``(A) identify the education and employment needs of 
                the population to be served and the manner in which the 
                services to be provided will strengthen the ability of 
                the eligible farmworkers and dependents to obtain or be 
                retained in unsubsidized employment or stabilize their 
                unsubsidized employment;
                  ``(B) describe the related assistance and supportive 
                services to be provided and the manner in which such 
                services are to be integrated and coordinated with 
                other appropriate services; and
                  ``(C) describe the goals and benchmarks to be used to 
                assess the performance of such entity in carrying out 
                the activities assisted under this section.
  ``(d) Authorized Activities.--Funds made available under this section 
shall be used to carry out comprehensive workforce and career 
development activities and related services for migrant farmworkers and 
seasonal farmworkers which may include employment, training, 
educational assistance, literacy assistance, an English literacy 
program, worker safety training, housing, supportive services, and the 
continuation of the case management database on participating migrant 
farmworkers and seasonal farmworkers.
  ``(e) Consultation with Governors and Local Boards.--In making grants 
and entering into contracts under this section, the Secretary of Labor 
shall consult with the Governors and local boards of the States in 
which the eligible entities will carry out the activities described in 
subsection (d).
  ``(f) Regulations.--The Secretaries shall consult with migrant and 
seasonal farmworker groups and States in establishing regulations to 
carry out this section, including performance measures for eligible 
entities which take into account the economic circumstances of migrant 
farmworkers and seasonal farmworkers.
  ``(g) Definitions.--As used in this section:
          ``(1) Migrant farmworker.--The term `migrant farmworker' 
        means a seasonal farmworker whose farm work requires travel 
        such that the worker is unable to return to a permanent place 
        of residence within the same day.
          ``(2) Seasonal farmworker.--The term `seasonal farmworker' 
        means a person who during the eligibility determination period 
        (12 consecutive months out of 24 months prior to application)--
                  ``(A) has been primarily employed in farm work that 
                is characterized by chronic unemployment or under 
                employment; and
                  ``(B) is economically disadvantaged at the time of 
                application.''.

                         Subtitle B--Job Corps

SEC. 411. STATEMENT OF PURPOSE.

  Section 421 of the Job Training Partnership Act (29 U.S.C. 1691) is 
amended in the first sentence by inserting after ``a distinct national 
program'' the following: ``carried out in collaboration with States and 
localities''.

SEC. 412. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

  Section 423 of the Job Training Partnership Act (29 U.S.C. 1693) is 
amended--
          (1) in paragraph (1), by striking ``14'' and inserting 
        ``16'';
          (2) in paragraph (2), by striking ``, and who requires'' and 
        all that follows and inserting a semicolon;
          (3) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (4), (5), and (6), respectively; and
          (4) by inserting after paragraph (2) the following:
          ``(3) is an individual who--
                  ``(A) is deficient in basic skills;
                  ``(B) is a school dropout;
                  ``(C) is homeless or a runaway;
                  ``(D) is a single parent; or
                  ``(E) requires additional education, training, or 
                intensive counseling and related assistance in order to 
                secure and hold meaningful employment, participate 
                successfully in regular school work, qualify for other 
                suitable training programs, or satisfy Armed Forces 
                requirements;''.

SEC. 413. SCREENING AND SELECTION OF APPLICANTS; GENERAL PROVISIONS.

  Section 424(a) of the Job Training Partnership Act (29 U.S.C. 
1694(a)) is amended--
          (1) in the first sentence, by adding at the end before the 
        period the following: ``after considering input from State, 
        local, and community groups and other interested parties'';
          (2) in the second sentence--
                  (A) by inserting after ``public employment offices,'' 
                the following: ``full service eligible providers,''; 
                and
                  (B) by striking ``and agencies'' and inserting ``and 
                entities''; and
          (3) in the third sentence, by inserting after ``The rules 
        shall'' the following: ``require Job Corps applicants to pass 
        background checks, conducted in accordance with procedures 
        established by the Secretary, and''.

SEC. 414. JOB CORPS CENTERS.

  Section 427 of the Job Training Partnership Act (29 U.S.C. 1697) is 
amended--
          (1) in subsection (a)(1), by adding at the end the following: 
        ``In selecting any entity to serve as an operator or to provide 
        services for a Job Corps center, the Secretary shall take into 
        consideration the previous performance of the entity, if any, 
        relating to operating or providing services for a Job Corps 
        center.'';
          (2) in subsection (c) to read as follows:
  ``(c) The Secretary may select an entity to operate a Civilian 
Conservation Center on a competitive basis if such a center fails to 
meet performance criteria established by the Secretary.''; and
          (3) by adding at the end the following:
  ``(d) Notwithstanding any other provision of law, any proceeds from 
the sale of Job Corps center facilities shall be retained by the 
Secretary to carry out the Job Corps program.''.

SEC. 415. STANDARDS OF CONDUCT.

  Section 430(a) of the Job Training Partnership Act (29 U.S.C. 
1700(a)) is amended--
          (1) in the first sentence, by adding at the end before the 
        period the following: ``, including a policy of zero tolerance 
        for violence and illegal drugs under which enrollees will 
        receive mandatory terminations for specific actions in 
        accordance with regulations issued by the Secretary'';
          (2) by inserting after the first sentence the following: ``As 
        part of the zero tolerance policy, drug testing of all students 
        shall be required in accordance with procedures established by 
        the Secretary.''; and
          (3) in the third sentence, by inserting after ``If 
        violations'' the following: ``of center standards other than 
        those covered by the zero tolerance policy''.

SEC. 416. COUNSELING AND JOB PLACEMENT.

  Section 432(b) of the Job Training Partnership Act (29 U.S.C. 
1702(b)) is amended in the first sentence by inserting after 
``determine their capabilities and'' the following: ``, based on these 
capabilities,''.

SEC. 417. EXPERIMENTAL AND DEVELOPMENTAL PROJECTS AND COORDINATION WITH 
                    OTHER PROGRAMS.

  Section 433(c)(1) of the Job Training Partnership Act (29 U.S.C. 
1703(c)(1)) is amended in the first sentence by striking ``disseminate 
information'' and inserting ``disseminate to Federal, State, and local 
workforce development programs information and best practices''.

                    Subtitle C--National Activities

SEC. 421. RESEARCH, DEMONSTRATION, EVALUATION, AND CAPACITY BUILDING.

  Part D of the Job Training Partnership Act (29 U.S.C. 1731 et seq.) 
is amended by striking sections 451 through 454 and inserting the 
following:

``SEC. 451. RESEARCH, DEMONSTRATION, EVALUATION, AND CAPACITY BUILDING.

  ``(a) In General.--The Secretary is authorized to establish and carry 
out research, demonstration, evaluation, and capacity building 
activities described in subsections (b) through (f).
  ``(b) National Partnership and Special Training.--The Secretary may 
award special grants to eligible entities to carry out programs that 
are most appropriately administered at the national level. Such 
activities may include--
          ``(1) partnership programs 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 
        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; and
          ``(2) activities that--
                  ``(A) address industry-wide skill shortages;
                  ``(B) meet training needs that are best addressed on 
                a multi-state basis;
                  ``(C) further the goals of increasing the 
                competitiveness of the United States labor force;
                  ``(D) 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; or
                  ``(E) promote and experiment with model activities, 
                pilot projects, and demonstration projects which 
                further the goals and purposes of this Act.
  ``(c) Research.--The Secretary is authorized to 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 States and localities, to the extent practicable, 
of indicators measuring such self-sufficiency.
  ``(d) Pilot and Demonstration Programs.--
          ``(1) In general.--The Secretary is authorized to conduct 
        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 
        which may include--
                  ``(A) the establishment of advanced manufacturing 
                technology skill centers developed through local 
                partnerships of industry, labor, education, community-
                based organizations, and economic development 
                organizations to meet unmet, high-tech skills of local 
                communities;
                  ``(B) programs conducted jointly with the Department 
                of Defense to develop training programs utilizing 
                computer-based and other innovative learning 
                technologies;
                  ``(C) projects that promote the use of distance 
                learning, enabling students to take courses through the 
                use of media technology such as videos, 
                teleconferencing computers, and the Internet;
                  ``(D) projects that assist in providing comprehensive 
                services to increase the employment rates of out-of-
                school youth residing in targeted high poverty areas 
                within empowerment zones and enterprise communities;
                  ``(E) the establishment of partnerships with national 
                organizations with special expertise in developing, 
                organizing, and administering employment and training 
                services for persons with disabilities at the national, 
                State, and local levels; and
                  ``(F) projects that assist local workforce 
                development areas to develop and implement local self-
                sufficiency standards to evaluate the degree to which 
                program participants are achieving self-sufficiency.
          ``(2) Grants and contracts.--The Secretary may award grants 
        and enter into contracts with entities to carry out this 
        subsection.
          ``(3) Evaluation and effectiveness.--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.
          ``(4) Special rule.--A demonstration program under this 
        subsection may not be assisted under this subsection for a 
        period of more than 7 years. A pilot program under this 
        subsection may not be assisted under this subsection for a 
        period of more than 3 years.
  ``(e) Evaluation.--
          ``(1) Activities.--
                  ``(A) Job training.--The Secretary shall provide for 
                the continuing evaluation of programs conducted under 
                this Act.
                  ``(B) Other programs.--The Secretary may conduct 
                evaluations of federally-funded employment-related 
                activities under other provisions of law.
          ``(2) Techniques.--
                  ``(A) Methods.--Evaluations conducted under paragraph 
                (1) shall utilize sound statistical methods and 
                techniques for the behavioral and social sciences, 
                including the use of control groups chosen by 
                scientific random assignment methodologies when 
                feasible.
                  ``(B) Effectiveness.--The Secretary shall evaluate 
                the effectiveness of programs authorized under this Act 
                with respect to--
                          ``(i) the statutory goals; and
                          ``(ii) the cost effectiveness and return-on-
                        investment of such programs based on the extent 
                        to which the programs--
                                  ``(I) enhance the employment and 
                                earnings of participants;
                                  ``(II) reduce income support costs 
                                (including the receipt of welfare 
                                assistance);
                                  ``(III) improve the employment 
                                competencies of participants in 
                                comparison to comparable persons who 
                                did not participate in such programs; 
                                and
                                  ``(IV) to the extent feasible, 
                                increase the level of total employment 
                                over the level that would have existed 
                                in the absence of such programs.
  ``(f) Technical Assistance, Dissemination, and Replication 
Activities.--The Secretary shall provide, coordinate, and support the 
development of, appropriate training, technical assistance, staff 
development, and other activities, including assistance in replicating 
programs of demonstrated effectiveness, to States and localities.

``SEC. 452. INCENTIVE GRANTS.

  ``From amounts authorized to be appropriated pursuant to section 
3(a)(3) to carry out this part for a fiscal year, the Secretary is 
authorized to award incentive grants to States consistent with the 
requirements of section 156(a).''.

SEC. 422. NONTRADITIONAL EMPLOYMENT DEMONSTRATION PROGRAM.

  Section 456 of the Job Training Partnership Act (29 U.S.C. 1737) is 
hereby repealed.

                         Subtitle D--Repealers

SEC. 451. REPEALERS.

  Parts F, G, H, I, and J of title IV of the Job Training Partnership 
Act (29 U.S.C. 1771 et seq.) are hereby repealed.

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

SEC. 501. REPEAL OF JOBS FOR EMPLOYABLE DEPENDENT INDIVIDUALS INCENTIVE 
                    BONUS PROGRAM.

  Title V of the Job Training Partnership Act (29 U.S.C. 1791 et seq.) 
is repealed.

SEC. 502. AMENDMENT TO ADULT EDUCATION ACT.

  The Adult Education Act (20 U.S.C. 1201 et seq.) is amended to read 
as follows:

       ``TITLE III--ADULT EDUCATION AND FAMILY LITERACY PROGRAMS

``SEC. 301. SHORT TITLE.

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

``SEC. 302. STATEMENT OF PURPOSE.

  ``It is the purpose of this title to assist States and outlying areas 
to provide--
          ``(1) to adults, the basic educational skills necessary for 
        employment and self-sufficiency; and
          ``(2) to adults who are parents, the educational skills 
        necessary to be full partners in the educational development of 
        their children.

``SEC. 303. DEFINITION.

  ``For purposes of this title:
          ``(1) Adult education.--The term `adult education' means 
        services or instruction below the postsecondary level for 
        individuals--
                  ``(A) who have attained 16 years of age;
                  ``(B) who are not enrolled or required to be enrolled 
                in secondary school under State law; and
                  ``(C) who--
                          ``(i) lack sufficient mastery of basic 
                        educational skills to enable the individuals to 
                        function effectively in society;
                          ``(ii) do not have a certificate of 
                        graduation from a school providing secondary 
                        education and who have not achieved an 
                        equivalent level of education; or
                          ``(iii) are unable to speak, read, or write 
                        the English language.
          ``(2) Adult education and literacy activities.--The term 
        `adult education and literacy activities' has the meaning given 
        such term in section 4 of the Employment, Training, and 
        Literacy Enhancement Act.
          ``(3) Community-based organization.--The term `community-
        based organization' has the meaning given such term in section 
        4 of the Employment, Training, and Literacy Enhancement Act.
          ``(4) Direct and equitable access.--The term `direct and 
        equitable access', when used with respect to the requirement in 
        section 313(c)(2), means that--
                  ``(A) all eligible providers are given the same 
                opportunity to apply for and receive funds under part 
                A; and
                  ``(B) the same announcement and application process 
                is used for all eligible providers.
          ``(5) Eligible agency.--The term `eligible agency' means--
                  ``(A) the individual, entity, or agency in a State or 
                an outlying area responsible for administering or 
                setting policies for adult education and literacy 
                services in such State or outlying area pursuant to the 
                law of the State or outlying area; or
                  ``(B) if no individual, entity, or agency is 
                responsible for administering or setting such policies 
                pursuant to the law of the State or outlying area, the 
                individual, entity, or agency in a State or outlying 
                area responsible for administering or setting policies 
                for adult education and literacy services in such State 
                or outlying area on the date of the enactment of the 
                Employment, Training, and Literacy Enhancement Act of 
                1997.
          ``(6) Eligible provider.--The term `eligible provider', used 
        with respect to adult education and literacy activities 
        described in section 314(b), means a provider determined to be 
        eligible for assistance in accordance with section 313.
          ``(7) English literacy program.--The term `English literacy 
        program' has the meaning given such term in section 4 of the 
        Employment, Training, and Literacy Enhancement Act.
          ``(8) Family literacy services.--The term `family literacy 
        services' has the meaning given such term in section 4 of the 
        Employment, Training, and Literacy Enhancement Act.
          ``(9) Individual of limited english proficiency.--The term 
        `individual of limited English proficiency' has the meaning 
        given such term in section 4 of the Employment, Training, and 
        Literacy Enhancement Act.
          ``(10) Individual with a disability.--The terms `individual 
        with a disability' and `individuals with disabilities' have the 
        meaning given such terms in section 4 of the Employment, 
        Training, and Literacy Enhancement Act.
          ``(11) Literacy.--The term `literacy' has the meaning given 
        such term in section 4 of the Employment, Training, and 
        Literacy Enhancement Act.
          ``(12) Local educational agency.--The term `local educational 
        agency' has the meaning given such term in section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801).
          ``(13) Outlying area.--The term `outlying area' has the 
        meaning given such term in section 4 of the Employment, 
        Training, and Literacy Enhancement Act.
          ``(14) Postsecondary educational institution.--The term 
        `postsecondary educational institution' has the meaning given 
        such term in section 4 of the Employment, Training, and 
        Literacy Enhancement Act.
          ``(15) Secretary.--The term `Secretary' means the Secretary 
        of Education.
          ``(16) State.--The term `State' has the meaning given such 
        term in section 4 of the Employment, Training, and Literacy 
        Enhancement Act.

``SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) In General.--There are authorized to be appropriated to carry 
out this title such sums as may be necessary for fiscal years 1998 
through 2003.
  ``(b) Reservation of Funds for National Leadership Activities.--For 
any fiscal year, the Secretary shall reserve--
          ``(1) 1.5 percent of the amount appropriated under subsection 
        (a) (but not more than $6,500,000) to carry out section 321; 
        and
          ``(2) 1.5 percent of the amount appropriated under subsection 
        (a) (but not more than $6,500,000) to establish and carry out 
        the program of national leadership and evaluation activities 
        described in section 322.

                 ``PART A--GRANTS TO ELIGIBLE AGENCIES

``SEC. 311. AUTHORITY TO MAKE GRANTS.

  ``(a) In General.--In the case of each eligible agency that in 
accordance with section 101 of the Employment, Training, and Literacy 
Enhancement Act submits to the Secretary a plan, the Secretary shall 
make a grant for each fiscal year for which such plan is in effect to 
the eligible agency for the purpose specified in subsection (b). The 
grant shall consist of the initial and additional allotments determined 
for the eligible agency under section 312.
  ``(b) Purpose of Grants.--The Secretary may make a grant under 
subsection (a) only if the applicant involved agrees to expend the 
grant for adult education and literacy activities in accordance with 
the provisions of this part.

``SEC. 312. ALLOTMENTS.

  ``(a) Initial Allotments.--From the sums available for the purpose of 
making grants under this part for any fiscal year, the Secretary shall 
allot to each eligible agency that in accordance with section 101 of 
the Employment, Training, and Literacy Enhancement Act submits to the 
Secretary a plan for the year an initial amount as follows:
          ``(1) $100,000, in the case of an eligible agency of the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.
          ``(2) $250,000, in the case of any other eligible agency.
  ``(b) Additional Allotments.--
          ``(1) In general.--From the remainder available for the 
        purpose of making grants under this part for any fiscal year 
        after the application of subsection (a), the Secretary shall 
        allot to each eligible agency that receives an initial 
        allotment under such subsection an additional amount that bears 
        the same relationship to such remainder as the number of 
        qualifying adults in the State or outlying area of the agency 
        bears to the number of such adults in all States and outlying 
        areas.
          ``(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 the law of the State or outlying area;
                  ``(C) does not have a certificate of graduation from 
                a school providing secondary education and has not 
                achieved an equivalent level of education; and
                  ``(D) is not currently enrolled in secondary school.
  ``(c) Special Rule.--
          ``(1) In general.--Using funds not to exceed the amount 
        appropriated and reserved under the Adult Education Act for 
        fiscal year 1997 for the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau, the 
        Secretary shall award grants, from funds made available under 
        subsections (a) and (b), to Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, or 
        the Republic of Palau to carry out activities described in this 
        part in accordance with the provisions of this part that the 
        Secretary determines are not inconsistent with this subsection.
          ``(2) Award basis.--The Secretary shall award grants pursuant 
        to paragraph (1) on a competitive basis and pursuant to 
        recommendations from the Pacific Region Educational Laboratory 
        in Honolulu, Hawaii.
          ``(3) Termination of eligibility.--Notwithstanding any other 
        provision of law, the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau shall 
        not receive any funds under this part for any fiscal year that 
        begins after September 30, 2001.
          ``(4) Administrative costs.--The Secretary may provide not 
        more than 5 percent of the funds made available for grants 
        under this subsection to pay the administrative costs of the 
        Pacific Region Educational Laboratory regarding activities 
        assisted under this subsection.
  ``(d) Hold-harmless.--
          ``(1) In general.--Notwithstanding subsection (a)--
                  ``(A) for fiscal year 1998, no eligible agency shall 
                receive an allotment that is less than 90 percent of 
                the payments made to the State of the agency for fiscal 
                year 1997 for programs for which funds were authorized 
                to be appropriated under section 313 of the Adult 
                Education Act (as such Act was in effect on the day 
                before the date of the enactment of the Employment, 
                Training, and Literacy Enhancement Act of 1997); and
                  ``(B) for fiscal year 1999 and each succeeding fiscal 
                year, no eligible agency shall receive an allotment 
                that is less than 90 percent of the amount the agency 
                received for the preceding fiscal year for programs 
                under this Act.
          ``(2) Ratable reduction.--If for any fiscal year the amount 
        available for allotment under this section is insufficient to 
        satisfy the provisions of paragraph (1), the Secretary shall 
        ratably reduce the payments to all eligible agencies, as 
        necessary.
  ``(e) Reallotment.--The portion of any eligible agency's allotment 
under subsection (a) or (b) for a fiscal year that the Secretary 
determines will not be required for the period such allotment is 
available for carrying out activities under this part, shall be 
available for reallotment from time to time, on such dates during such 
period as the Secretary shall fix, to other eligible agencies in 
proportion to the original allotments to such agencies under such 
subsection for such year.

``SEC. 313. USE OF FUNDS.

  ``(a) In General.--Of the sum that is made available under this part 
to an eligible agency for any program year--
          ``(1) not less than 85 percent shall be made available to 
        award grants in accordance with this section to carry out adult 
        education and literacy activities; and
          ``(2) not more than 15 percent shall be made available to 
        carry out activities described in section 314(a), of which not 
        more than 5 percentage points, or $50,000, whichever is 
        greater, shall be made available for administrative expenses at 
        the State level (or the level of the outlying area).
  ``(b) Grants.--
          ``(1) In general.--Except as provided in paragraph (2), from 
        the amount made available to an eligible agency for adult 
        education and literacy under subsection (a)(1) for a program 
        year, such agency shall award grants, on a competitive basis, 
        to local educational agencies, correctional education agencies, 
        community-based organizations of demonstrated effectiveness, 
        volunteer literacy organizations, libraries, public or private 
        nonprofit agencies, postsecondary educational institutions, 
        public housing authorities, and other nonprofit institutions, 
        that have the ability to provide literacy services to adults 
        and families, or consortia of agencies, organizations, or 
        institutions described in this subsection, to enable such 
        agencies, organizations, institutions, and consortia to carry 
        out adult education and literacy activities.
          ``(2) Consortia.--An eligible agency may award a grant under 
        this section to a consortium that includes a provider described 
        in paragraph (1) and a for-profit agency, organization, or 
        institution, if such agency, organization, or institution--
                  ``(A) can make a significant contribution to carrying 
                out the objectives of this title; and
                  ``(B) enters into a contract with such provider to 
                carry out adult education and literacy activities.
  ``(c) Grant Requirements.--
          ``(1) Required local activities.--An eligible agency shall 
        require that each provider receiving a grant under this section 
        use the grant in accordance with section 314(b).
          ``(2) Equitable access.--Each eligible agency awarding a 
        grant under this section for adult education and literacy 
        activities shall ensure that the providers described in 
        subsection (b) will be provided direct and equitable access to 
        all Federal funds provided under this section.
          ``(3) Special rule.--Each eligible agency awarding a grant 
        under this section shall not use any funds made available under 
        this title for adult education and literacy activities for the 
        purpose of supporting or providing programs, services, or 
        activities for individuals who are not individuals described in 
        subparagraphs (A) and (B) of section 303(1), except that such 
        agency may use such funds for such purpose if such programs, 
        services, or activities are related to family literacy 
        services.
          ``(4) Considerations.--In awarding grants under this section, 
        the eligible agency shall consider--
                  ``(A) the past effectiveness of a provider described 
                in subsection (b) 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 provider will establish 
                measurable goals for client outcomes, such as levels of 
                literacy achieved and the attainment of a high school 
                diploma or its equivalent, that are tied to challenging 
                State performance standards for literacy proficiency;
                  ``(C) the degree to which the program is staffed by 
                well-trained instructors and administrators;
                  ``(D) the degree to which the provider will 
                coordinate with other available resources in the 
                community, such as by establishing strong links with 
                elementary and secondary schools, postsecondary 
                educational institutions, full service employment and 
                training delivery centers, job training programs, and 
                other literacy and social service available in the 
                community;
                  ``(E) the commitment of the provider to serve 
                individuals in the community who are most in need of 
                literacy services, including individuals who are low 
                income, who have minimal literacy skills, or both;
                  ``(F) whether or not the program is of sufficient 
                intensity and duration for participants to achieve 
                substantial learning gains;
                  ``(G) the degree to which the provider will offer 
                flexible schedules and necessary support services (such 
                as child care and transportation) to enable 
                individuals, including individuals with disabilities or 
                other special needs, to participate in adult education 
                and literacy activities;
                  ``(H) whether such provider has been successful in 
                recruiting, retaining, and improving the literacy 
                skills of, individuals; and
                  ``(I) whether, not later than 1 year after the date 
                of the enactment of the Employment, Training, and 
                Literacy Enhancement Act of 1997, such provider has 
                been successful in retraining and improving the 
                literacy skillsof individuals, consistent with the core 
indicators of performance set forth in section 154 of the Employment, 
Training, and Literacy Enhancement Act.
  ``(d) Local Administrative Cost Limits.--
          ``(1) In general.--Except as provided in paragraph (2), of 
        the funds provided under this section by an eligible agency to 
        a provider described in subsection (b), not less than 95 
        percent shall be expended for provision of adult education and 
        literacy activities. The remainder shall be used for planning, 
        administration, personnel development, and interagency 
        coordination.
          ``(2) Special rule.--In cases where the cost limits described 
        in paragraph (1) will be too restrictive to allow for adequate 
        planning, administration, personnel development, and 
        interagency coordination supported under this section, the 
        eligible agency shall negotiate with the provider described in 
        subsection (b) in order to determine an adequate level of funds 
        to be used for noninstructional purposes.

``SEC. 314. ADULT EDUCATION AND LITERACY ACTIVITIES.

  ``(a) Permissible Agency Activities.--An eligible agency may use 
funds made available to the eligible agency under section 313(a)(2) for 
activities that may include--
          ``(1) the establishment or operation of professional 
        development programs to improve the quality of instruction 
        provided pursuant to local activities required under subsection 
        (b), including instruction provided by volunteers or by 
        personnel of a State or outlying area;
          ``(2) the provision of technical assistance to eligible 
        providers of activities authorized under this section;
          ``(3) the provision of technology assistance, including staff 
        training, to eligible providers of activities authorized under 
        this section to enable the providers to improve the quality of 
        such activities;
          ``(4) the support of State or regional networks of literacy 
        resource centers;
          ``(5) the monitoring and evaluation of the quality of, and 
        the improvement in, activities and services authorized under 
        this section;
          ``(6) incentives for--
                  ``(A) program coordination and integration; and
                  ``(B) performance awards;
          ``(7) developing and disseminating curricula;
          ``(8) other activities of statewide significance that promote 
        the purposes of this title; and
          ``(9) the provision of support services, such as 
        transportation, child care, and other assistance designed to 
        increase rates of enrollment in, and successful completion of, 
        adult education and literacy activities, to adults enrolled in 
        such activities.
  ``(b) Required Local Activities.--The eligible agency shall require 
that each eligible provider receiving a grant under section 313 use the 
grant to establish or operate 1 or more programs that provide 
instruction or services in 1 or more of the following categories:
          ``(1) Adult education and literacy services, including 
        services provided on the work site.
          ``(2) Family literacy services.
          ``(3) English literacy programs.
  ``(c) State-Imposed Requirements.--Whenever a State implements any 
rule or policy relating to the administration or operation of a program 
authorized under this title that has the effect of imposing a 
requirement that is not imposed under Federal law (including any rule 
or policy based on a State interpretation of a Federal statute, 
regulation, or guideline), it shall identify, to eligible providers, 
the rule or policy as being State-imposed.

``SEC. 315. FISCAL REQUIREMENTS AND RESTRICTIONS RELATED TO USE OF 
                    FUNDS.

  ``(a) Supplement Not Supplant.--Funds made available under this part 
for adult education and literacy activities shall supplement, and may 
not supplant, other public funds expended to carry out activities 
described in section 314.
  ``(b) Maintenance of Effort.--
          ``(1) In general.--
                  ``(A) Determination.--An eligible agency may receive 
                funds under this Act for any fiscal year if the 
                Secretary finds that the fiscal effort per student or 
                the aggregate expenditures of such eligible agency for 
                adult education and literacy, in the second preceding 
                fiscal year, was not less than 90 percent of the fiscal 
                effort per student or the aggregate expenditures of 
                such eligible agency for adult education and literacy, 
                in the third preceding fiscal year.
                  ``(B) Proportionate reduction.--Subject to paragraphs 
                (2), (3), and (4), for any program year with respect to 
                which the Secretary determines under subparagraph (A) 
                that the fiscal effort and the aggregate expenditures 
                of an eligible agency for the preceding program year 
                were less than such effort and expenditures for the 
                second preceding program year, the Secretary--
                          ``(i) shall determine the percentage 
                        decreases in such effort and in such 
                        expenditures; and
                          ``(ii) shall decrease the payment made under 
                        this part for such program year to the agency 
                        for adult education and literacy activities by 
                        the lesser of such percentages.
          ``(2) Computation.--In computing the fiscal effort and 
        aggregate expenditures under paragraph (1), the Secretary shall 
        exclude capital expenditures and special one-time project 
        costs.
          ``(3) Decrease in federal support.--If the amount made 
        available for adult education and literacy activities under 
        this part for a fiscal year is less than the amount made 
        available for adult education and literacy activities under 
        this part for the preceding fiscal year, then the fiscal effort 
        per student and the aggregate expenditures of an eligible 
        agency required in order to avoid a reduction under paragraph 
        (1)(B) shall be decreased by the same percentage as the 
        percentage decrease in the amount so made available.
          ``(4) Waiver.--The Secretary may waive the requirements of 
        this subsection for 1 fiscal year only, if the Secretary 
        determines that a waiver would be equitable due to exceptional 
        or uncontrollable circumstances, such as a natural disaster or 
        an unforeseen and precipitous decline in the financial 
        resources of the State of the eligible agency. If the Secretary 
        grants a waiver under the preceding sentence for a fiscal year, 
        the level of effort required under paragraph (1) shall not be 
        reduced in the subsequent fiscal year because of the waiver.
  ``(c) Expenditures of Non-Federal Funds for Adult Education and 
Literacy Activities.--For any program year for which a grant is made to 
an eligible agency under this part, the eligible agency shall expend, 
on programs and activities relating to adult education and literacy 
activities, an amount, derived from sources other than the Federal 
Government, equal to 25 percent of the amount made available to the 
eligible agency under this part for adult education and literacy 
activities.

                      ``PART B--NATIONAL PROGRAMS

``SEC. 321. NATIONAL INSTITUTE FOR LITERACY.

  ``(a) Purpose.--The National Institute for Literacy shall--
          ``(1) provide national leadership with respect to literacy in 
        the United States;
          ``(2) coordinate literacy services; and
          ``(3) serve as a national resource for adult education and 
        family literacy by providing the best and most current 
        information available and supporting the creation of new ways 
        to offer services of proven effectiveness.
  ``(b) Establishment.--
          ``(1) In general.--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 
        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 Interagency Group may include in the 
        Institute any research and development center, institute, or 
        clearinghouse established within the Department of Education, 
        the Department of Labor, or the Department of Health and Human 
        Services whose purpose is determined by the Interagency Group 
        to be related to the purpose of the Institute.
          ``(2) Offices.--The Institute shall have offices separate 
        from the offices of the Department of Education, the Department 
        of Labor, and the Department of Health and Human Services.
          ``(3) 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.
          ``(4) Daily operations.--The daily operations of the 
        Institute shall be carried out by the Director of the Institute 
        appointed under subsection (g).
  ``(c) Duties.--
          ``(1) In general.--In order to provide leadership for the 
        improvement and expansion of the system for delivery of 
        literacy services, the Institute is authorized--
                  ``(A) to establish, and make accessible, a national 
                electronic data base of information that disseminates 
                information to the broadest possible audience within 
                the literacy and basic skills field, and that 
                includes--
                          ``(i) effective practices in the provision of 
                        literacy and basic skills instruction, 
                        including the integration of such instruction 
                        with occupational skills training;
                          ``(ii) public and private literacy and basic 
                        skills programs and Federal, State, and local 
                        policies affecting the provision of literacy 
                        services at the national, State, and local 
                        levels;
                          ``(iii) opportunities for technical 
                        assistance, meetings, conferences, and other 
                        opportunities that lead to the improvement of 
                        literacy and basic skills services; and
                          ``(iv) a communication network for literacy 
                        programs, providers, social service agencies, 
                        and students;
                  ``(B) to coordinate support for the provision of 
                literacy and basic skills services across Federal 
                agencies and at the State and local levels;
                  ``(C) to coordinate the support of research and 
                development on literacy and basic skills in families 
                and adults across Federal agencies, especially with the 
                Office of Educational Research and Improvement in the 
                Department of Education, and to carry out basic and 
                applied research and development on topics that are not 
                being investigated by other organizations or agencies;
                  ``(D) to collect and disseminate information on 
                methods of advancing literacy that show great promise;
                  ``(E) funding a network of State or regional adult 
                literacy resource centers to assist State and local 
                public and private nonprofit efforts to improve 
                literacy by--
                          ``(i) encouraging the coordination of 
                        literacy services;
                          ``(ii) carrying out evaluations of the 
                        effectiveness of adult education and literacy 
                        activities;
                          ``(iii) enhancing the capacity of State and 
                        local organizations to provide literacy 
                        services; and
                          ``(iv) serving as a reciprocal link between 
                        the Institute and providers of adult education 
                        and literacy activities for the purpose of 
                        sharing information, data, research, expertise, 
                        and literacy resources;
                  ``(F) to coordinate and share information with 
                national organizations and associations that are 
                interested in literacy and workforce development;
                  ``(G) to inform the development of policy with 
                respect to literacy and basic skills; and
                  ``(H) to undertake other activities that lead to the 
                improvement of the Nation's literacy delivery system 
                and that complement other such efforts being undertaken 
                by public and private agencies and organizations.
          ``(2) Grants, contracts, and agreements.--The Institute may 
        make grants to, or enter into contracts or cooperative 
        agreements with, individuals, public or private institutions, 
        agencies, organizations, or consortia of such institutions, 
        agencies, or organizations to carry out the activities of the 
        Institute. Such grants, contracts, or agreements shall be 
        subject to the laws and regulations that generally apply to 
        grants, contracts, or agreements entered into by Federal 
        agencies.
  ``(d) Literacy Leadership.--
          ``(1) 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.
  ``(e) National Institute for Literacy Advisory Board.--
          ``(1) Establishment.--
                  ``(A) In general.--There is established a National 
                Institute for Literacy Advisory Board. The Board shall 
                consist of 10 individuals, appointed by the Interagency 
                Group, 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 title;
                          ``(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;
                          ``(vi) representatives of employees; and
                          ``(vii) State directors of adult education.
          ``(2) Duties.--The Board--
                  ``(A) shall make recommendations concerning the 
                appointment of the Director and staff of the Institute;
                  ``(B) shall provide independent advice on the 
                operation of the Institute; and
                  ``(C) shall receive reports from the Interagency 
                Group and the Director.
          ``(3) Federal advisory committee act.--Except as otherwise 
        provided, the Board established by this subsection shall be 
        subject to the provisions of the Federal Advisory Committee Act 
        (5 U.S.C. App.).
          ``(4) 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. Any such member may be 
                appointed for not more than 2 consecutive terms.
                  ``(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 
                member's 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.
          ``(5) Quorum.--A majority of the members of the Board shall 
        constitute a quorum but a lesser number may hold hearings. Any 
        recommendation of the Board may be passed only by a majority of 
        the Board's members present.
          ``(6) Election of officers.--The Chairperson and Vice 
        Chairperson of the Board shall be elected by the members of the 
        Board. The term of office of the Chairperson and Vice 
        Chairperson shall be 2 years.
          ``(7) Meetings.--The Board shall meet at the call of the 
        Chairperson or a majority of the members of the Board.
  ``(f) Gifts, Bequests, and Devises.--The Institute may accept, 
administer, and use gifts or donations of services, money, or property, 
both real and personal.
  ``(g) Mails.--The Board and the Institute may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
  ``(h) Director.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the pay of a 
Director.
  ``(i) Applicability of Certain Civil Service Laws.--The Director and 
staff of the Institute may be appointed without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, except that 
anindividual so appointed may not receive pay in excess of the maximum 
rate payable under section 5376 of title 5, United States Code.
  ``(j) Experts and Consultants.--The Board and the Institute may 
procure temporary and intermittent services under section 3109(b) of 
title 5, United States Code.
  ``(k) Report.--The Institute shall submit a report biennially to the 
committees of the United States House of Representatives and the Senate 
having jurisdiction over this title. 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 the period covered 
        by the report;
          ``(2) a description of how plans for the operation of the 
        Institute for the succeeding two fiscal years 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.
  ``(l) Funding.--Any amounts appropriated to the Secretary of 
Education, the Secretary of Labor, or the Secretary of Health and Human 
Services for purposes that the Institute is authorized to perform under 
this section may be provided to the Institute for such purposes.

``SEC. 322. NATIONAL LEADERSHIP ACTIVITIES.

  ``The Secretary shall establish and carry out a program of national 
leadership activities to enhance the quality of adult education and 
family literacy programs nationwide. Such activities may include the 
following:
          ``(1) Providing technical assistance to recipients of 
        assistance under part A in developing and using benchmarks and 
        performance measures for improvement of adult education and 
        literacy activities, including family literacy services.
          ``(2) Awarding grants, on a competitive basis, to a 
        postsecondary educational institution, a public or private 
        organization or agency, or a consortium of such institutions, 
        organizations, or agencies to carry out research and technical 
        assistance--
                  ``(A) for the purpose of developing, improving, and 
                identifying the most successful methods and techniques 
                for addressing the education needs of adults; and
                  ``(B) to increase the effectiveness of, and improve 
                the quality of, adult education and literacy 
                activities, including family literacy services.
          ``(3) Providing for the conduct of an independent evaluation 
        and assessment of adult education and literacy activities, 
        through studies and analyses conducted independently through 
        grants and contracts awarded on a competitive basis. Such 
        evaluation and assessment shall include descriptions of--
                  ``(A) the effect of benchmarks, performance measures, 
                and other measures of accountability on the delivery of 
                adult education and literacy activities, including 
                family literacy services;
                  ``(B) the extent to which the adult education and 
                literacy activities, including family literacy 
                services, increase the literacy skills of adults (and 
                of children, in the case of family literacy services), 
                lead the participants in such activities to involvement 
                in further education and training, enhance the 
                employment and earnings of such participants, and, if 
                applicable, lead to other positive outcomes, such as 
                reductions in recidivism in the case of prison-based 
                adult education and literacy services;
                  ``(C) the extent to which the provision of support 
                services to adults enrolled in adult education and 
                family literacy programs increases the rates of 
                enrollment in, and successful completion of, such 
                programs; and
                  ``(D) the extent to which eligible agencies have 
                distributed funds part A to meet the needs of adults 
                through community-based organizations.
          ``(4) Carrying out demonstration programs, replicating model 
        programs, disseminating best practices information, and 
        providing technical assistance, for the purposes of developing, 
        improving, and identifying the most successful methods and 
        techniques for providing the activities assisted under part A.
          ``(5) Other activities designed to enhance the quality of 
        adult education and literacy nationwide, such as providing 
        incentive grants to States consistent with section 156 of the 
        Employment, Training, and Literacy Enhancement Act.''.

SEC. 503. REPEAL OF NATIONAL LITERACY ACT OF 1991.

  The National Literacy Act of 1991 (Public Law 102-73; 105 Stat. 333) 
is hereby repealed.

SEC. 504. CONFORMING AMENDMENTS.

  (a) Refugee Education Assistance Act.--Subsection (b) of section 402 
of the Refugee Education Assistance Act of 1980 (8 U.S.C. 1522 note) is 
hereby repealed.
  (b) Elementary and Secondary Education Act of 1965.--
          (1) Section 1206 of esea.--Section 1206(a)(1)(A) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6366(a)(1)(A)) is amended by striking ``an adult basic 
        education program'' and inserting ``adult education and 
        literacy activities''.
          (2) Section 3113 of esea.--Section 3113(1) of such Act (20 
        U.S.C. 6813(1)) is amended by striking ``section 312 of the 
        Adult Education Act;'' and inserting ``section 303 of the Adult 
        Education and Family Literacy Act;''.
          (3) Section 9161 of esea.--Section 9161(2) of such Act (20 
        U.S.C. 7881(2)) is amended by striking ``section 312(2) of the 
        Adult Education Act.'' and inserting ``section 303 of the Adult 
        Education and Family Literacy Act.''.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. REPEALERS.

  (a) Amendments to the Wagner-Peyser Act.--Section 601 of the Job 
Training Partnership Act is hereby repealed.
  (b) Amendments to Part C of Title IV of the Social Security Act.--
Section 602 of the Job Training Partnership Act is hereby repealed.
  (c) Earnings Disregard.--Section 603 of the Job Training Partnership 
Act is hereby repealed.
  (d) Savings Provision.--The repeals made by subsections (a), (b), and 
(c), of any provision of law described in any such subsection that 
amended or repealed another provision of law does not in any way affect 
that amendment or repeal.

SEC. 602. CONFORMING AMENDMENTS.

  (a) Enforcement of Military Selective Service Act.--Section 604 of 
the Job Training Partnership Act (29 U.S.C 1504) is amended--
          (1) by redesignating such section as section 182 of such Act; 
        and
          (2) by inserting such section after section 181 of such Act.
  (b) State Job Bank Systems.--Section 605 of such Act (29 U.S.C 1505) 
is amended--
          (1) by striking subsection (a);
          (2) in subsection (b), by striking ``shall make such'' and 
        inserting ``may make'';
          (3) by redesignating subsections (b) and (c) as subsections 
        (a) and (b), respectively;
          (4) by redesignating such section as section 466 of such Act; 
        and
          (5) by adding such section after section 465 of such Act.
  (c) State Labor Market Information Programs.--Section 125 of such Act 
(29 U.S.C. 1535) is amended--
          (1) by redesignating such section as section 467; and
          (2) by inserting such section after section 466.

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

SEC. 701. AMENDMENTS TO COUNCIL.

  (a) Establishment and Functions.--Section 701 of the Job Training 
Partnership Act (29 U.S.C. 1792) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) by striking ``shall review'' and 
                        inserting ``reviews''; and
                          (ii) by striking ``advise'' and inserting 
                        ``advises'';
                  (B) in paragraph (2), by striking ``shall advise'' 
                and inserting ``advises'';
                  (C) in paragraph (3), by striking ``shall carry'' and 
                inserting ``carries'';
                  (D) by striking paragraph (4);
                  (E) in paragraph (5), by striking ``may recommend'' 
                and inserting ``recommends'';
                  (F) in paragraph (6), to read as follows:
          ``(6) prepares and recommends to the Governor a strategy to 
        be included as part of the State plan under section 101 that 
        would accomplish the goals developed pursuant to paragraph 
        (4);'';
                  (G) in paragraph (7)--
                          (i) by striking ``may monitor'' and inserting 
                        ``monitors''; and
                          (ii) by striking the period at the end and 
                        inserting ``; and'';
                  (H) by adding at the end the following:
          ``(8) may serve as the collaborative process described in 
        section 102.''; and
                  (I) by redesignating paragraphs (5) through (8) (as 
                amended or added, as the case may be) as paragraphs (4) 
                through (7), respectively; and
          (2) in subsection (b)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A), by striking ``(A) 
                        Except as provided in subparagraph (B), for 
                        purposes'' and inserting ``For purposes''; and
                          (ii) by striking subparagraph (B); and
                  (B) in paragraph (2)--
                          (i) by striking ``applicable Federal human 
                        resource programs'' and all that follows 
                        through ``may include'' and inserting 
                        ``applicable Federal human resource programs 
                        may include'';
                          (ii) in clause (v), by striking the ``and'' 
                        at the end;
                          (iii) in clause (vii)--
                                  (I) by adding at the end before the 
                                semicolon the following: ``and title I 
                                of the Personal Responsibility and Work 
                                Opportunity Reconciliation Act of 
                                1996''; and
                                  (II) by redesignating such clause as 
                                clause (vi);
                          (iv) in subparagraph (B)--
                                  (I) by striking ``may not include 
                                programs authorized under''; and
                                  (II) by redesignating such 
                                subparagraph as clause (vii); and
                          (v) by redesignating clauses (i) through 
                        (vii) as subparagraphs (A) through (G), 
                        respectively, and moving the margin for each 
                        such subparagraph two ems to the left.
  (b) Composition.--Section 702 of such Act (29 U.S.C. 1792a) is 
amended--
          (1) by striking subsections (a), (b), and (c); and
          (2) by inserting the following:
  ``Each State Council shall be composed of the individuals and 
entities described in section 102(a).''.
  (c) Administration.--Section 703 of such Act (29 U.S.C. 1792b) is 
amended--
          (1) in subsection (a)(2)--
                  (A) by inserting ``for State administrative 
                expenses'' after ``funds otherwise available''; and
                  (B) by striking ``, including funds available'' and 
                all that follows through ``such Act'';
          (2) by striking subsection (c); and
          (3) by redesignating subsection (d) as subsection (c).

SEC. 702. TRANSFER OF COUNCIL.

  Title VII of the Job Training Partnership Act (29 U.S.C. 1792 et 
seq.), as amended by section 701, is transferred to the end of part A 
of title I of such Act, as amended by section 111 of this Act.

SEC. 703. CONFORMING AMENDMENTS.

  (a) In General.--Title VII of the Job Training Partnership Act (29 
U.S.C. 1792 et seq.), as transferred to the end of part A of title I of 
such Act by section 702, is amended--
          (1) by amending the title heading to read as follows:

``SEC. 103. STATE HUMAN RESOURCE INVESTMENT COUNCIL.'';

          (2) by redesignating sections 701 through 703 as subsections 
        (a) through (c), respectively, of section 103 (as redesignated 
        by paragraph (1)) and conforming the subsection headings and 
        margins accordingly;
          (3) by redesignating each subsection, paragraph, and 
        subparagraph of sections 701 through 703 (as such sections 
        existed immediately prior to the amendments made by paragraph 
        (2)) as a paragraph, subparagraph, and clause, respectively, of 
        section 103 (as redesignated by paragraph (1)) and conforming 
        the headings and margins accordingly; and
          (4) in subsection (a)(2)(B) (as redesignated), by striking 
        ``paragraph (1)'' and inserting ``subparagraph (A)''.
  (b) Additional Amendment.--Section 103 of the Job Training 
Partnership Act, as redesignated by subsection (a)(2), is amended by 
striking ``title'' each place it appears (except in subsection 
(a)(2)(B)(vi) of such section) and inserting ``section''.

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

SEC. 801. DEFINITIONS.

  Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is amended--
          (1) in paragraph (1), by striking ``Job Training Partnership 
        Act'' and inserting ``Employment, Training, and Literacy 
        Enhancement Act'';
          (2) by striking paragraphs (2) and (4);
          (3) by redesignating paragraphs (3) and (5) as paragraphs (5) 
        and (6), respectively;
          (4) by inserting after paragraph (1) the following:
          ``(2) the term `local workforce development area' means a 
        local workforce development area designated under section 121 
        of the Employment, Training, and Literacy Enhancement Act;
          ``(3) the term `local workforce development board' means a 
        local workforce development board established under section 122 
        of the Employment, Training, and Literacy Enhancement Act;
          ``(4) the term `full service employment and training delivery 
        system' means a system established under section 123 of the 
        Employment, Training, and Literacy Enhancement Act;''; and
          (5) in paragraph (5) (as redesignated by paragraph (3)), by 
        striking the semicolon and inserting ``; and''.

SEC. 802. FUNCTIONS.

  (a) In General.--Section 3(a) of the Wagner-Peyser Act (29 U.S.C. 
49b(a)) is amended to read as follows:
  ``(a) The Secretary of Labor--
          ``(1) shall assist in the coordination and development of a 
        nationwide system of labor exchange services for the general 
        public, provided as part of the full service employment and 
        training delivery systems of the States;
          ``(2) shall assist in the development of continuous 
        improvement models for such nationwide system that ensure 
        private sector satisfaction with the system and meet the 
        demands of jobseekers relating to the system; and
          ``(3) shall ensure, for individuals otherwise eligible to 
        receive unemployment compensation, the continuation of any 
        activities in which the individuals are required to participate 
        to receive the compensation.''.
  (b) Conforming Amendments.--Section 508(b) of the Unemployment 
Compensation Amendments of 1976 (42 U.S.C. 603a) is amended--
          (1) by striking ``the third sentence of section 3(a)'' and 
        inserting ``section 3(b)''; and
          (2) by striking ``49b(a)'' and inserting ``49b(b))''.

SEC. 803. DESIGNATION OF STATE AGENCIES.

  Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is amended--
          (1) by striking ``, through its legislature,'' and inserting 
        ``pursuant to State statute'';
          (2) by inserting after ``the provisions of this Act and'' the 
        following: ``, in accordance with such State statute, the 
        Governor shall''; and
          (3) by striking ``United States Employment Service'' and 
        inserting ``Secretary''.

SEC. 804. APPROPRIATIONS.

  Section 5(c) of the Wagner-Peyser Act (29 U.S.C. 49d(c)) is amended 
by striking paragraph (3).

SEC. 805. DISPOSITION OF ALLOTTED FUNDS.

  Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is amended--
          (1) in subsection (b)(2), by striking ``private industry 
        council'' and inserting ``local workforce development board'';
          (2) in subsection (c)(2)(B), to read as follows:
          ``(B) Title III of the Employment, Training, and Literacy 
        Enhancement Act.'';
          (3) in subsection (d), by striking ``Job Training Partnership 
        Act'' and inserting ``Employment, Training, and Literacy 
        Enhancement Act''; and
          (4) by adding at the end the following:
  ``(e) All job search, placement, recruitment, labor market 
information, and other labor exchange services authorized under 
subsections (a) and (b) shall be provided as part of the full service 
employment and training delivery system established by the State.''.

SEC. 806. STATE PLANS.

  Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is amended--
          (1) in subsection (a) to read as follows:
  ``(a) Any State desiring to receive assistance under this Act shall 
submit to the Secretary, as part of the State plan submitted under 
section 101 of the Employment, Training, and Literacy Enhancement 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).

SEC. 807. FEDERAL ADVISORY COUNCIL.

  Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is hereby 
repealed.

SEC. 808. REGULATIONS.

  Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k) is amended by 
striking ``The Director, with the approval of the Secretary of Labor,'' 
and inserting ``The Secretary''.

SEC. 809. EFFECTIVE DATE.

  The amendments made by this title shall take effect on July 1, 1998.

             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

       Subtitle A--Amendments to the Job Training Partnership Act

SEC. 901. SHORT TITLE; TABLE OF CONTENTS.

  Section 1 of the Job Training Partnership Act (29 U.S.C 1501 note) is 
amended to read as follows:

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

  ``(a) Short Title.--This Act may be cited as the `Employment, 
Training, and Literacy Enhancement Act'.
  ``(b) Table of Contents.--The table of contents of this Act is as 
follows:

``Sec. 1. Short title; table of contents.
``Sec. 2. Statement of purpose.
``Sec. 3. Authorization of appropriations.
``Sec. 4. Definitions.

          ``TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS

               ``Part A--State Administrative Provisions

``Sec. 101. State plan.
``Sec. 102. Collaborative process.
``Sec. 103. State Human Resource Investment Council.

               ``Part B--Local Administrative Provisions

``Sec. 121. Local workforce development areas.
``Sec. 122. Local workforce development boards.
``Sec. 123. Full service employment and training delivery system.
``Sec. 124. Identification of training providers.

                ``Part C--Program and Fiscal Provisions

                      ``Subpart 1--General Provisions

``Sec. 141. General program requirements.
``Sec. 142. Benefits.
``Sec. 143. Labor standards.
``Sec. 144. Grievance procedure.
``Sec. 145. Prohibition against Federal control of education.
``Sec. 146. Identification of additional imposed requirements.
``Sec. 147. Authority of State legislature.
``Sec. 148. Interstate agreements.

            ``Subpart 2--Performance Accountability Provisions

``Sec. 151. Performance accountability system.
``Sec. 152. Indicators of performance.
``Sec. 153. State adjusted benchmarks.
``Sec. 154. Core indicators of performance.
``Sec. 155. Report on performance.
``Sec. 156. Incentive grants and sanctions.

                       ``Subpart 3--Other Provisions

``Sec. 161. Program year.
``Sec. 162. Prompt allocation of funds.
``Sec. 163. Monitoring.
``Sec. 164. Fiscal controls; sanctions.
``Sec. 165. Reports; recordkeeping; investigations.
``Sec. 166. Administrative Adjudication.
``Sec. 167. Nondiscrimination.
``Sec. 168. Administrative provisions.
``Sec. 169. Utilization of services and facilities.
``Sec. 170. Obligational authority.
``Sec. 171. Limitation on certain costs.

                   ``Part D--Miscellaneous Provisions

``Sec. 181. Reference.
``Sec. 182. Enforcement of Military Selective Service Act.

 ``TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                                 GRANTS

``Sec. 201. Statement of purpose.
``Sec. 202. Authorization.
``Sec. 203. Allotment and allocation among States.
``Sec. 204. Allocation within States.
``Sec. 205. Eligibility for services.
``Sec. 206. Use of funds.
``Sec. 207. Selection of service providers.
``Sec. 208. Linkages.

    ``TITLE III--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

``Sec. 301. Purpose.

      ``Part A--Adult Employment and Training Opportunities Grants

``Sec. 311. Authorization.
``Sec. 312. Allotment among States.
``Sec. 313. Allocation within States.
``Sec. 314. Use of amounts.

                      ``Part B--National Programs

``Sec. 321. National emergency grants.
``Sec. 322. Skill upgrading projects in enterprise zones or empowerment 
communities.

              ``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 program.

                          ``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. Authorization of programs.

                     ``Part D--National Activities

``Sec. 451. Research, demonstration, evaluation, and capacity building.
``Sec. 452. Incentive grants.
``Sec. 453. Uniform reporting requirements.

                   ``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.
``Sec. 466. State job bank systems.
``Sec. 467. State labor market information programs.''.

SEC. 902. DEFINITIONS.

  Section 4 of such Act (29 U.S.C. 1503), as amended by section 103, is 
further amended, as follows:
          (1) By striking the heading and the matter preceding 
        paragraph (1) and inserting the following:

``SEC. 4. DEFINITIONS.

  ``As used in this Act, the following definitions apply:''.
          (2) In paragraph (3), by striking ``The term'' and inserting 
        ``Area of substantial unemployment.--The term''.
          (3) In paragraph (7), by striking ``The term'' and inserting 
        ``Economic development agencies.--The term''.
          (4) In paragraph (8), by striking ``The term'' and inserting 
        ``Economically disadvantaged.--The term''.
          (5) In paragraph (9), by striking ``The term'' and inserting 
        ``Governor.--The term''.
          (6) In paragraph (12), by striking ``The term'' and inserting 
        ``Institution of higher education.--The term''.
          (7) In paragraph (13), by striking ``The term'' and inserting 
        ``Labor market area.--The term''.
          (8) In paragraph (14), by striking ``The term'' and inserting 
        ``Local educational agency.--The term''.
          (9) In paragraph (15), by striking ``The term'' and inserting 
        ``Low-income level.--The term''.
          (10) In paragraph (16), by striking ``The term'' and 
        inserting ``Lower living standard income level.--The term''.
          (11) In paragraph (17), by striking ``The term'' and 
        inserting ``Offender.--The term''.
          (12) In paragraph (18), by striking ``The term'' and 
        inserting ``Postsecondary institution.--The term''.
          (13) In paragraph (20), by striking ``The term'' and 
        inserting ``Public assistance.--The term''.
          (14) In paragraph (23), by striking ``The term'' and 
        inserting ``State educational agency.--The term''.
          (15) In paragraph (25), by striking ``The term'' and 
        inserting ``Unemployed individuals.--The term''.
          (16) In paragraph (26), by striking ``The term'' and 
        inserting ``Unit of general local government.--The term''.
          (17) In paragraph (28), by striking ``The term'' and 
        inserting ``Vocational education.--The term''.
          (18) In paragraph (29), by striking ``The term'' and 
        inserting ``Displaced homemaker.--The term''.
          (19) In paragraph (30), by striking ``The term'' and 
        inserting ``Nontraditional employment.--The term''.
          (20) In paragraph (31), by striking ``The term'' and 
        inserting ``Basic skills deficient.--The term''.
          (21) In paragraph (32), by striking ``The term'' and 
        inserting ``Case management.--The term''.
          (22) In paragraph (33), by striking ``The term'' and 
        inserting ``Citizenship skills.--The term''.
          (23) In paragraph (34), by striking ``The term'' and 
        inserting ``Family.--The term''.
          (24) In paragraph (37), by striking ``The term'' and 
        inserting ``Participant.--The term''.
          (25) In paragraph (38), by striking ``The term'' and 
        inserting ``School dropout.--The term''.
          (26) In paragraph (39), by striking ``The term'' and 
        inserting ``Termination.--The term''.
          (27) In paragraph (40), by striking ``The term'' and 
        inserting ``Youth corps program.--The term''.
          (28) By redesignating paragraphs (31), (32), (4), (33), (5), 
        (6), (29), (7), (8), (41), (42), (34), (43), (44), (9), (45), 
        (46), (10), (12), (13), (47), (48), (49), (14), (50), (15), 
        (16), (30), (17), (51), (52), (37), (18), (20), (53), (54), 
        (38), (21), (55), (22), (57), (56), (23), (58), (24), (39), 
        (25), (26), (27), (28), and (40) as paragraphs (4) through 
        (54), respectively.

SEC. 903. AMENDMENTS TO TITLE I.

  (a) Heading.--The heading of title I of the Job Training Partnership 
Act (29 U.S.C. 1501 et seq.) is amended to read as follows:

        ``TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS''.

  (b) Part B.--Part B of title I of such Act (29 U.S.C. 1531 et seq.), 
as amended by this Act, is further amended in the heading of such part 
to read as follows:

              ``PART B--LOCAL ADMINISTRATIVE PROVISIONS''.

  (c) Part C.--
          (1) Headings.--Part C of title I of such Act (29 U.S.C. 1551 
        et seq.), as amended by this Act, is further amended--
                  (A) in the heading of such part to read as follows:

               ``PART C--PROGRAM AND FISCAL PROVISIONS'';

                  (B) by inserting after the heading for such part the 
                following:

                   ``Subpart 1--General Provisions'';

                  (C) by inserting after section 148, as amended by 
                this Act, the following:

         ``Subpart 2--Performance Accountability Provisions'';

                and
                  (D) by inserting after section 156 (as amended by 
                this Act) the following:

                    ``Subpart 3--Other Provisions''.

          (2) Section 141.--Section 141 of such Act (29 U.S.C 1551), as 
        amended by this Act, is further amended--
                  (A) in the section heading to read as follows:

``SEC. 141. GENERAL PROGRAM REQUIREMENTS.'';

                and
                  (B)(i) by redesignating subsections (a), (b), (c), 
                (e), (g), (h), (j), and (l) through (t) as paragraphs 
                (1) through (16), respectively, and moving the margin 
                for each such paragraph two ems to the right; and
                  (ii) by redesignating each paragraph and subparagraph 
                of such subsections (a), (b), (c), (e), (g), (h), (j), 
                and (l) through (t) (as such subsections existed before 
                the amendment made by clause (i)) as a subparagraph and 
                clause, respectively.
          (3) Section 142.--Section 142 of such Act (29 U.S.C. 1552), 
        as amended by this Act, is further amended--
                  (A) in the section heading to read as follows:

``SEC. 142. BENEFITS.'';

                  (B) in subsection (a)(2) (as redesignated), by 
                striking ``References'' and inserting ``References.--
                References''; and
                  (C) in subsection (b), by striking ``Allowances'' and 
                inserting ``Additional Requirement.--Allowances''.
          (4) Section 145.--Section 145 of such Act (29 U.S.C 1555) is 
        amended in the section heading to read as follows:

``SEC. 145. PROHIBITION AGAINST FEDERAL CONTROL OF EDUCATION.''.

          (5) Section 146.--Section 146 of such Act (as redesignated) 
        is amended--
                  (A) in the section heading to read as follows:

``SEC. 146. IDENTIFICATION OF ADDITIONAL IMPOSED REQUIREMENTS.'';

                and
                  (B) by striking ``service delivery area'' each place 
                it appears and inserting ``workforce development 
                area''.
          (6) Section 147.--Section 147 of such Act (as redesignated) 
        is amended in the section heading to read as follows:

``SEC. 147. AUTHORITY OF STATE LEGISLATURE.''.

          (7) Section 148.--Section 148 of such Act (as redesignated) 
        is amended in the section heading to read as follows:

``SEC. 148. INTERSTATE AGREEMENTS.''.

  (d) Part D.--
          (1) Heading.--Part D of title I of such Act is amended by 
        striking the heading for such part.
          (2) Section 161.--Section 161 of such Act (29 U.S.C 1571), as 
        amended by this Act, is further amended--
                  (A) in the section heading to read as follows:

``SEC. 161. PROGRAM YEAR.'';

                  (B) in subsection (a), by striking ``(a)'' and 
                inserting the following:
  ``(a) Program Year.--''; and
                  (C) in subsection (b), by striking ``(b)'' and 
                inserting the following:
  ``(b) Availability.--''.
          (3) Section 162.--Section 162 of such Act (29 U.S.C 1572), as 
        amended by this Act, is further amended--
                  (A) in the section heading to read as follows:

``SEC. 162. PROMPT ALLOCATION OF FUNDS.'';

                  (B) in subsection (a), by striking ``(a)'' and 
                inserting ``(a) Allotments and Allocations Based on 
                Latest Available Data.--'';
                  (C) in subsection (b), by striking ``(b)'' and 
                inserting ``(b) Publication in Federal Register 
                Relating to Mandatory Funds.--'';
                  (D) in subsection (c), by striking ``(c)'' and 
                inserting ``(c) Requirement for Funds Distributed by 
                Formula.--'';
                  (E) in subsection (d), by striking ``(d)'' and 
                inserting ``(d) Publication in Federal Register 
                Relating to Discretionary Funds.--''; and
                  (F) in subsection (e)--
                          (i) by striking ``(e)'' and inserting ``(e) 
                        Availability of Funds.--''; and
                          (ii) by striking ``service delivery area'' 
                        and inserting ``local workforce development 
                        area''.
          (4) Section 163.--Section 163 of such Act (29 U.S.C 1573) is 
        amended--
                  (A) in the section heading to read as follows:

``SEC. 163. MONITORING.'';

                  (B) in subsection (a), by striking ``(a)'' and 
                inserting ``(a) In Gen- eral.--'';
                  (C) in subsection (b), by striking ``(b)'' and 
                inserting ``(b) Investigations.--''; and
                  (D) in subsection (c), by striking ``(c)'' and 
                inserting ``(c) Additional Requirement.--''.
          (5) Section 164.--Section 164 of such Act (29 U.S.C 1574) is 
        amended--
                  (A) in the section heading to read as follows:

``SEC. 164. FISCAL CONTROLS; SANCTIONS.'';

                  (B) in subsection (a)--
                          (i) by striking ``(a)(1)'' and inserting the 
                        following:
  ``(a) Establishment of Fiscal Controls by States.--
          ``(1) In general.--''; and
                          (ii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Regulations.--'' and moving 
                        such paragraph two ems to the right;
                  (C) in subsection (e)--
                          (i) by striking ``(e)(1)'' and inserting the 
                        following:
  ``(e) Repayment of Amounts.--
          ``(1) In general.--'';
                          (ii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Factors in imposing 
                        sanctions.--'' and moving such paragraph two 
                        ems to the right; and
                          (iii) in paragraph (3), by striking ``(3)'' 
                        and inserting ``(3) Waiver.--'' and moving such 
                        paragraph two ems to the right;
                  (D) in subsection (f), by striking ``(f)'' and 
                inserting ``(f) Immediate Termination or Suspension of 
                Assistance in Emergency Situations.--'';
                  (E) in subsection (g), by striking ``(g)'' and 
                inserting ``(g) Discrimination Against Participants.--
                ''; and
                  (F) by redesignating subsections (d), (e), (f), (g) 
                as subsections (c), (d), (e), and (f), respectively.
          (6) Section 165.--Section 165 of such Act (29 U.S.C 1575) is 
        amended--
                  (A) in the section heading to read as follows:

``SEC. 165. REPORTS; RECORDKEEPING; INVESTIGATIONS.'';

                  (B) in subsection (a)--
                          (i) by striking ``(a)(1)'' and inserting the 
                        following:
  ``(a) Reports.--
          ``(1) In general.--'';
                          (ii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Submission to the 
                        secretary.--'' and moving such paragraph two 
                        ems to the right; and
                          (iii) in paragraph (3), by striking ``(3)'' 
                        and inserting ``(3) Maintenance of standardized 
                        records.--'' and moving such paragraph two ems 
                        to the right; and
                          (iv) in paragraph (4)--
                                  (I) by striking ``(4)(A)'' and 
                                inserting ``(4) Availability to the 
                                public.--(A)'' and moving such 
                                paragraph two ems to the right;
                                  (II) in subparagraph (B), by striking 
                                ``(B)'' and inserting ``(B) 
                                Exception.--'' and moving such 
                                subparagraph two ems to the right; and
                                  (III) in subparagraph (C), by 
                                striking ``(C)'' and inserting ``(C) 
                                Fees to recover costs.--'' and moving 
                                such subparagraph two ems to the right;
                  (C) in subsection (b)--
                          (i) by striking ``(b)(1)(A)'' and inserting 
                        the following:
  ``(b) Investigations of Use of Funds.--
          ``(1) In general.--(A)'';
                          (ii) in subparagraph (B) of paragraph (1), by 
                        moving such subparagraph two ems to the right;
                          (iii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Prohibition.--'' and moving 
                        such paragraph two ems to the right; and
                          (iv) in paragraph (3)--
                                  (I) by striking ``(3)(A)'' and 
                                inserting the following:
          ``(3) Audits.--
                  ``(A) In general.--'';
                                  (II) in subparagraph (B), by striking 
                                ``(B)'' and inserting ``(B) 
                                Notification requirement.--'' and 
                                moving such subparagraph two ems to the 
                                right;
                                  (III) in subparagraph (C), by 
                                striking ``(C)'' and inserting ``(C) 
                                Additional requirement.--'' and moving 
                                such subparagraph two ems to the right; 
                                and
                                  (IV) in subparagraph (D), by striking 
                                ``(D)'' and inserting ``(D) Rule of 
                                construction.--'' and moving such 
                                subparagraph two ems to the right;
                  (D) in subsection (c)--
                          (i) by striking ``(c)'' and inserting ``(c) 
                        Accessibility of Reports.--''; and
                          (ii) in paragraph (2), by striking ``service 
                        delivery area'' and inserting ``local workforce 
                        development area'';
                  (E) in subsection (d)--
                          (i) by striking ``(d)(1)'' and inserting the 
                        following;
  ``(d) Information To Be Included in Reports.--
          ``(1) In general.--''; and
                          (ii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Additional requirement.--'' 
                        and moving such paragraph two ems to the right;
                  (F) in subsection (e), by striking ``(e)'' and 
                inserting ``(e) Retention of Records.--'';
                  (G) in subsection (f)--
                          (i) by striking ``(f)(1)'' and inserting the 
                        following:
  ``(f) Quarterly Financial Reports.--
          ``(1) In general.--'';
                          (ii) by striking ``service delivery area'' 
                        and inserting ``local workforce development 
                        area''; and
                          (iii) in paragraph (2), by striking ``(2)'' 
                        and inserting ``(2) Additional requirement.--'' 
                        and moving such paragraph two ems to the right; 
                        and
                  (H) in subsection (g), by striking ``(g)'' and 
                inserting ``(g) Maintenance of Additional Records.--''.
          (7) Section 166.--Section 166 of such Act (29 U.S.C. 1576) is 
        amended--
                  (A) in the section heading to read as follows:

``SEC. 166. ADMINISTRATIVE ADJUDICATION.'';

                  (B) in subsection (a), by striking ``(a)'' and 
                inserting the following:
  ``(a) In General.--'';
                  (C) in subsection (b), by striking ``(b)'' and 
                inserting the following:
  ``(b) Appeal.--'';
                  (D) in subsection (c), by striking ``(c)'' and 
                inserting the following:
  ``(c) Time Limit.--''; and
                  (E) in subsection (d), by striking ``(d)'' and 
                inserting the following:
  ``(d) Additional Requirement.--'';
          (8) Section 169.--Section 169 of such Act (29 U.S.C 1579) is 
        amended--
                  (A) in the section heading to read as follows:

``SEC. 169. ADMINISTRATIVE PROVISIONS.'';

                  (B) in subsection (a), by striking ``(a)'' and 
                inserting ``(a) In Gen- eral.--'';
                  (C) in subsection (b), by striking ``(b)'' and 
                inserting ``(b) Acquisition of Certain Property and 
                Services.--'';
                  (D) in subsection (c), by striking ``(c)'' and 
                inserting ``(c) Authority To Enter Into Certain 
                Agreements and To Make Certain Expenditures.--''; and
                  (D) in subsection (d), by striking ``(d)'' and 
                inserting ``(d) Annual Report.--''.
          (9) Section 170.--Section 170 of such Act (29 U.S.C 1580) is 
        amended--
                  (A) in the section heading to read as follows:

``SEC. 170. UTILIZATION OF SERVICES AND FACILITIES.''; AND

                  (B) in the first sentence, by striking ``section 
                169(c)'' and inserting ``section 168(c)''.
          (10) Section 171.--Section 171 of such Act (29 U.S.C 1581) is 
        amended in the section heading to read as follows:

``SEC. 171. OBLIGATIONAL AUTHORITY.''.

          (11) Redesignation.--Sections 169, 170, 171, and 172 of the 
        Job Training Partnership Act (29 U.S.C. 1579, 1580, and 1581), 
        as amended or added by this Act, as the case may be, are 
        further amended by redesignating such sections as sections 168, 
        169, 170, and 171 of such Act, respectively.
  (e) Part E.--
          (1) Heading.--The heading for part E of title I of such Act 
        is amended by redesignating such heading as the heading for 
        part D of title I of such Act (and conforming the typeface for 
        such heading in a manner similar to the typeface for the 
        heading for part C of title I of such Act (as amended by 
        subsection (b)(1)(A)).
          (2) Section 183.--Section 183 of such Act (29 U.S.C 1592), as 
        amended by this Act, is further amended by redesignating such 
        section as section 181.

SEC. 904. AMENDMENTS TO TITLE IV.

  (a) Part Headings.--The following part headings of title IV of the 
Job Training Partnership Act (29 U.S.C. 1671 et seq.) are amended as 
follows:
          (1) The heading for part A of title IV of such Act is amended 
        to read as follows:

  ``PART A--EMPLOYMENT AND TRAINING PROGRAMS FOR NATIVE AMERICANS AND 
                  MIGRANT AND SEASONAL FARMWORKERS''.

          (2) The heading for part B of title IV of such Act is amended 
        to read as follows:

                         ``PART B--JOB CORPS''.

          (3) The heading for part C of title IV of such Act is amended 
        to read as follows:

               ``PART C--VETERANS' EMPLOYMENT PROGRAMS''.

          (4) The heading for part D of title IV of such Act is amended 
        to read as follows:

                    ``PART D--NATIONAL ACTIVITIES''.

          (5) The heading for part E of title IV of such Act is amended 
        to read as follows:

                 ``PART E--LABOR MARKET INFORMATION''.

  (b) Section 441.--Section 441 of such Act (29 U.S.C 1721) is 
amended--
          (1) in the section heading to read as follows:

``SEC. 441. AUTHORIZATION OF PROGRAMS.'';

          (2) in subsection (a)--
                  (A) by striking ``(a)(1)'' and inserting the 
                following:
  ``(a) Authorization.--
          ``(1) In general.--'';
                  (B) in paragraph (2), by striking ``(2)'' and 
                inserting ``(2) Conduct of pro- grams.--'' and moving 
                such paragraph two ems to the right; and
                  (C) in paragraph (3), by striking ``(3)'' and 
                inserting ``(3) Required activities.--'' and moving 
                such paragraph two ems to the right; and
          (3) in subsection (b)--
                  (A) by striking ``(b)(1)'' and inserting the 
                following:
  ``(b) Administration of Programs.--
          ``(1) In general.--''; and
                  (B) in paragraph (2), by striking ``(2)'' and 
                inserting ``(2) Additional responsibilities.--'' and 
                moving such paragraph two ems to the right.
  (c) Section 455.--Section 455 of such Act (29 U.S.C 1735) is 
amended--
          (1) in the section heading to read as follows:

``SEC. 455. UNIFORM REPORTING REQUIREMENTS.'';

        and
          (2) by redesignating such section as section 453.
  (d) Section 461.--Section 461 of such Act (29 U.S.C 1751) is 
amended--
          (1) in the section heading to read as follows:

``SEC. 461. LABOR MARKET INFORMATION; AVAILABILITY OF FUNDS.'';

          (2) in subsection (a), by striking ``(a)'' and inserting 
        ``(a) Set-Aside of Funds.--'';
          (3) in subsection (b)--
                  (A) by striking ``(b)'' and inserting ``(b) 
                Availability for Additional Purpose.--''; and
                  (B) by striking ``section 125'' and inserting 
                ``section 467''; and
          (4) in subsection (c), by striking ``(c)'' and inserting 
        ``(c) Availability of Other Funds.--''.
  (e) Section 462.--Section 462 of such Act (29 U.S.C 1752) is 
amended--
          (1) in the section heading to read as follows:

``SEC. 462. COOPERATIVE LABOR MARKET INFORMATION PROGRAM.'';

          (2) in subsection (a), by striking ``(a)'' and inserting 
        ``(a) Data on Current Employment.--'';
          (3) in subsection (b), by striking ``(b)'' and inserting 
        ``(b) Maintenance of Descriptions of Job Duties and Related 
        Information.--'';
          (4) in subsection (c), by striking ``(c)'' and inserting 
        ``(c) Additional Requirements.--'';
          (5) in subsection (d)--
                  (A) by striking ``(d)(1)'' and inserting the 
                following:
  ``(d) Data for Annual Statistical Measure of Labor Market Related 
Economic Hardship.--
          ``(1) In general.--'';
                  (B) in paragraph (2), by striking ``(2)'' and 
                inserting ``(2) Household budget data.--'' and moving 
                such paragraph two ems to the right; and
                  (C) in paragraph (3), by striking ``(3)'' and 
                inserting ``(3) Report.--'' and moving such paragraph 
                two ems to the right;
          (6) in subsection (e), by striking ``(e)'' and inserting 
        ``(e) Statistical Data Relating to Permanent Lay-Offs and Plant 
        Closings.--''
          (7) in subsection (f)--
                  (A) by striking ``(f)(1)'' and inserting the 
                following:
  ``(f) Data Relating to Permanent Dislocation of Farmers and 
Ranchers.--
          ``(1) In general.--'';
                  (B) in paragraph (1), by moving subparagraphs (A) 
                through (E) two ems to the right; and
                  (C) in paragraph (2), by striking ``(2)'' and 
                inserting ``(2) Report.--'' and moving such paragraph 
                two ems to the right; and
          (8) by striking subsection (g).
  (f) Section 463.--Section 463 of such Act (29 U.S.C 1753) is 
amended--
          (1) in the section heading to read as follows:

``SEC. 463. SPECIAL FEDERAL RESPONSIBILITIES.'';

          (2) in subsection (a), by striking ``(a)'' and inserting 
        ``(a) Review and Application of Labor Market Information.--'';
          (3) in subsection (b), by striking ``(b)'' and inserting 
        ``(b) Integrated Occupational Supply and Demand Information 
        System.--''; and
          (4) in subsection (c), by striking ``(c)'' and inserting 
        ``(c) Sufficient Funds for Staffing.--''.
  (g) Section 464.--Section 464 of such Act (29 U.S.C 1754) is 
amended--
          (1) in the section heading to read as follows:

``SEC. 464. NATIONAL OCCUPATIONAL INFORMATION COORDINATING 
                    COMMITTEE.'';

          (2) in subsection (a)--
                  (A) by striking ``(a)(1)'' and inserting the 
                following:
  ``(a) Reservation.--
          ``(1) In general.--'';
                  (B) in paragraph (2), by striking ``(2)'' and 
                inserting ``(2) Additional members.--'' and moving such 
                paragraph two ems to the right; and
                  (C) in paragraph (3), by striking ``(3)'' and 
                inserting ``(3) Additional requirement.--'' and moving 
                such paragraph two ems to the right;
          (3) in subsection (b), by striking ``(b)'' and inserting 
        ``(b) Additional Responsibilities.--''; and
          (4) in subsection (c), by striking ``(c)'' and inserting 
        ``(c) Use of Funds.--''.
  (h) Section 465.--Section 465 of such Act (29 U.S.C 1755) is amended 
in the section heading to read as follows:

``SEC. 465. JOB BANK PROGRAM.''.

  (i) Section 466.--Section 466 of such Act (as redesignated) is 
amended--
          (1) in the section heading to read as follows:

``SEC. 466. STATE JOB BANK SYSTEMS.'';

          (2) in subsection (a) (as redesignated), by striking ``(a)'' 
        and inserting ``(a) In General.--''; and
          (3) in subsection (b) (as redesignated), by striking ``(b)'' 
        and inserting ``(b) Computerized Data Systems.--''.
  (j) Section 467.--Section 467 of such Act (as redesignated) is 
amended--
          (1) in the section heading to read as follows:

``SEC. 467. STATE LABOR MARKET INFORMATION PROGRAMS.'';

          (2) in subsection (a), by striking ``(a)'' and inserting the 
        following:
  ``(a) In General.--'';
          (3) in subsection (b), by striking ``(b)'' and inserting the 
        following:
  ``(b) Additional Requirements.--'';
          (4) in subsection (c), by striking ``(c)'' and inserting the 
        following:
  ``(c) Reimbursements.--''; and
          (5) in subsection (d), by striking ``(d)'' and inserting the 
        following:
  ``(d) Combination or Consolidation of Certain Reporting 
Requirements.--''.

SEC. 905. AMENDMENTS TO TITLE VI.

  The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is amended 
by striking the heading for title VI of such Act.

SEC. 906. CLARIFICATION.

  Nothing in this Act, the amendments made by this Act, or any law 
amended by this Act shall be construed to supplant or modify the 
requirements for registration of an apprenticeship program under the 
National Apprenticeship Act.

                  Subtitle B--Amendments to Other Acts

SEC. 911. AMENDMENTS TO OTHER ACTS.

  The following Acts are amended as follows:
          (1) Title 5, united states code.--Section 3502(d) of title 5, 
        United States Code, is amended--
                  (A) in paragraph (3)--
                          (i) in subparagraph (A)(i), by striking ``or 
                        units (referred to in section 311(b)(2) of the 
                        Job Training Partnership Act)'' and inserting 
                        ``referred to in section 313(a)(2)(B)(i) of the 
                        Employment, Training, and Literacy Enhancement 
                        Act''; and
                          (ii) in subparagraph (B)(iii), by striking 
                        ``Job Training Partnership Act'' and inserting 
                        ``Employment, Training, and Literacy 
                        Enhancement Act''; and
                  (B) in paragraph (4), in the second sentence, by 
                striking ``Job Training Partnership Act'' and inserting 
                ``Employment, Training, and Literacy Enhancement Act''.
          (2) Food stamp act of 1977.--
                  (A) Section 5.--Section 5(l) of the Food Stamp Act of 
                1977 (7 U.S.C. 2014(l)) is amended by striking 
                ``section 142(b) of the Job Training Partnership Act 
                (29 U.S.C. 1552(b))'' and inserting ``title II, III, or 
                IV of the Employment, Training, and Literacy 
                Enhancement Act''.
                  (B) Section 6.--Section 6 of the Food Stamp Act of 
                1977 (7 U.S.C. 2015) is amended--
                          (i) in subsection (d)(4)(M), by striking 
                        ``Job Training Partnership Act'' and inserting 
                        ``Employment, Training, and Literacy 
                        Enhancement Act''; and
                          (ii) in subsection (e)(3), by striking 
                        subparagraph (A) and inserting the following:
                  ``(A) a program under title II, III, or IV of the 
                Employment, Training, and Literacy Enhancement Act;''.
                  (C) Section 17.--The second sentence of section 
                17(b)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
                2026(b)(2)) is amended--
                          (i) by striking ``to accept an offer of 
                        employment from a political subdivision or a 
                        prime sponsor pursuant to the Comprehensive 
                        Employment and Training Act of 1973, as amended 
                        (29 U.S.C. 812),'' and inserting ``to accept an 
                        offer of employment from a service provider 
                        carrying out employment and training activities 
                        through a program carried out under title II, 
                        III, or IV of the Employment, Training, and 
                        Literacy Enhancement Act,''; and
                          (ii) by striking ``: Provided, That all of 
                        the political subdivision's'' and all that 
                        follows and inserting ``, if all of the jobs 
                        supported under the program have been made 
                        available to participants in the program before 
                        the service provider providing the jobs extends 
                        an offer of employment under this paragraph, 
                        and if the service provider, in employing the 
                        person, complies with the requirements of 
                        Federal law that relate to the program.''.
          (3) Immigration and nationality act.--Section 245A(h)(4)(F) 
        of the Immigration and Nationality Act (8 U.S.C. 
        1255a(h)(4)(F)) is amended by striking ``The Job Training 
        Partnership Act.'' and inserting ``The Employment, Training, 
        and Literacy Enhancement Act.''.
          (4) Refugee education assistance act of 1980.--Section 
        402(a)(4) of the Refugee Education Assistance Act of 1980 (8 
        U.S.C. 1522 note) is amended by striking ``the Comprehensive 
        Employment and Training Act of 1973'' and inserting ``the 
        Employment, Training, and Literacy Enhancement Act''.
          (5) National defense authorization act for fiscal year 
        1993.--
                  (A) Section 3161.--Section 3161(c)(6) of the National 
                Defense Authorization Act for Fiscal Year 1993 (42 
                U.S.C. 7274h(c)(6)) is amended by striking ``Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                inserting ``title II, III, or IV of the Employment, 
                Training, and Literacy Enhancement Act''.
                  (B) Section 4461.--Section 4461(1) of the National 
                Defense Authorization Act for Fiscal Year 1993 (10 
                U.S.C. 1143 note) is amended by striking ``The Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.).'' 
                and inserting ``The Employment, Training, and Literacy 
                Enhancement Act.''.
                  (C) Section 4471.--Section 4471 of the National 
                Defense Authorization Act for Fiscal Year 1993 (10 
                U.S.C. 2501 note) is amended--
                          (i) in subsection (c)(2), by striking 
                        ``section 311(b)(2) of the Job Training 
                        Partnership Act (29 U.S.C. 1661(b)(2))'' and 
                        inserting ``313(a)(2)(B)(i) of the Employment, 
                        Training, and Literacy Enhancement Act'';
                          (ii) in subsection (d)--
                                  (I) in the first sentence, by 
                                striking ``for training, adjustment 
                                assistance, and employment services'' 
                                and all that follows through ``except 
                                where'' and inserting ``to participate 
                                in employment and training activities 
                                carried out under the Employment, 
                                Training, and Literacy Enhancement Act, 
                                except in a case in which''; and
                                  (II) by striking the second sentence; 
                                and
                          (iii) in subsection (e), by striking ``for 
                        training,'' and all that follows through 
                        ``beginning'' and inserting ``to participate in 
                        employment and training activities under the 
                        Employment, Training, and Literacy Enhancement 
                        Act beginning''.
          (6) National defense authorization act for fiscal year 
        1991.--Section 4003(5)(C) of the National Defense Authorization 
        Act for Fiscal Year 1991 (10 U.S.C. 2391 note) is amended by 
        inserting before the period the following: ``, as in effect on 
        the day before the date of the enactment of the Employment, 
        Training, and Literacy Enhancement Act of 1997''.
          (7) National defense authorization act for fiscal year 
        1994.--Section 1333(c)(2)(B) of the National Defense 
        Authorization Act for Fiscal Year 1994 (10 U.S.C. 2701 note) is 
        amended by striking ``Private industry councils (as described 
        in section 102 of the Job Training Partnership Act (29 U.S.C. 
        1512)).'' and inserting ``Local workforce development boards 
        established under section 122 of the Employment, Training, and 
        Literacy Enhancement Act.''.
          (8) Small business act.--The fourth sentence of section 
        7(j)(13)(E) of the Small Business Act (15 U.S.C. 636(j)(13)(E)) 
        is amended by striking ``under the Job Training Partnership Act 
        (29 U.S.C. 1501 et seq.)'' and inserting ``under section 124 of 
        the Employment, Training, and Literacy Enhancement Act''.
          (9) Employment act of 1946.--Section 4(f)(2)(B) of the 
        Employment Act of 1946 (15 U.S.C. 1022a(f)(2)(B)) is amended by 
        striking ``and include these in the annual Employment and 
        Training Report of the President required under section 705(a) 
        of the Comprehensive Employment and Training Act of 1973 
        (hereinafter in this Act referred to as `CETA')'' and inserting 
        ``and prepare and submit to the President an annual report 
        containing the recommendations''.
          (10) Full employment and balanced growth act of 1978.--
                  (A) Section 206.--Section 206 of the Full Employment 
                and Balanced Growth Act of 1978 (15 U.S.C. 3116) is 
                amended--
                          (i) in subsection (b)--
                                  (I) in the matter preceding paragraph 
                                (1), by striking ``CETA'' and inserting 
                                ``the Employment, Training, and 
                                Literacy Enhancement Act''; and
                                  (II) in paragraph (1), by striking 
                                ``(including use of section 110 of CETA 
                                when necessary)''; and
                          (ii) in subsection (c)(1), by striking 
                        ``through the expansion of CETA and other''.
                  (B) Section 401.--Section 401(d) of the Full 
                Employment and Balanced Growth Act of 1978 (15 U.S.C. 
                3151(d)) is amended by striking ``include, in the 
                annual Employment and Training Report of the President 
                provided under section 705(a) of CETA,'' and inserting 
                ``include, in the annual report referred to in section 
                4(f)(2)(B) of the Employment Act of 1946 (15 U.S.C. 
                1022a(f)(2)(B)),''.
          (11) Title 18, united states code.--Subsections (a), (b), and 
        (c) of section 665 of title 18, United States Code are amended 
        by striking ``or the Job Training Partnership Act'' and 
        inserting ``the Job Training Partnership Act, or the 
        Employment, Training, and Literacy Enhancement Act''.
          (12) Trade act of 1974.--Section 239(e) of the Trade Act of 
        1974 (19 U.S.C. 2311(e)) is amended by striking ``Job Training 
        Partnership Act'' and inserting ``Employment, Training, and 
        Literacy Enhancement Act''.
          (13) Higher education act of 1965.--Section 480(b)(14) of the 
        Higher Education Act of 1965 (20 U.S.C. 1087vv(b)(14)) is 
        amended by striking ``Job Training Partnership Act'' and 
        inserting ``received through participation under title II, III, 
        or IV of the Employment, Training, and Literacy Enhancement 
        Act''.
          (14) Individuals with disabilities education act.--Section 
        626 of the Individuals with Disabilities Education Act (20 
        U.S.C. 1425) is amended--
                  (A) in the first sentence of subsection (a), by 
                striking ``(including the State job training 
                coordinating councils and service delivery area 
                administrative entities established under the Job 
                Training Partnership Act)'' and inserting ``(including 
                the State collaborative process under of section 102 of 
                the Employment, Training, and Literacy Enhancement Act 
                and local workforce development boards established 
                under section 122 of such Act)'';
                  (B) in subsection (e)--
                          (i) in paragraph (3)(C), by striking ``local 
                        Private Industry Councils (PICS) authorized by 
                        the Job Training Partnership Act (JTPA),'' and 
                        inserting ``local workforce development boards 
                        established under section 122 of the 
                        Employment, Training, and Literacy Enhancement 
                        Act,'';
                          (ii) in paragraph (4)(A)(iii), by striking 
                        ``local Private Industry Councils (PICS) 
                        authorized by the JTPA,'' and inserting ``local 
                        workforce development boards established under 
                        section 122 of the Employment, Training, and 
                        Literacy Enhancement Act,''; and
                          (iii) in clauses (iii), (iv), (v), and (vii) 
                        of paragraph (4)(B), by striking ``PICS 
                        authorized by the JTPA'' and inserting ``local 
                        workforce development boards established under 
                        section 122 of the Employment, Training, and 
                        Literacy Enhancement Act''; and
                  (C) in subsection (g), by striking ``the Job Training 
                Partnership Act (JTPA),'' and inserting ``the 
                Employment, Training, and Literacy Enhancement Act,''.
          (15) Department of education organization act.--Subsection 
        (a) of section 302 of the Department of Education Organization 
        Act (20 U.S.C. 3443(a)) (as redesignated in section 271(a)(2) 
        of the Improving America's Schools Act of 1994) is amended by 
        striking ``under section 303(c)(2) of the Comprehensive 
        Employment and Training Act'' and inserting ``relating to such 
        education''.
          (16) National skill standards act of 1994.--
                  (A) Section 504.--Section 504(c)(3) of the National 
                Skill Standards Act of 1994 (20 U.S.C. 5934(c)(3)) is 
                amended by striking ``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)) and''.
                  (B) Section 508.--Section 508(1) of the National 
                Skill Standards Act of 1994 (20 U.S.C. 5938(1)) is 
                amended to read as follows:
          ``(1) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization of 
        demonstrated effectiveness that is representative of a 
        community or a significant segment of a community and that 
        provides workforce and career development activities, as 
        defined in section 4 of the Employment, Training, and Literacy 
        Enhancement Act.''.
          (17) Elementary and secondary education act of 1965.--
                  (A) Section 1205.--Section 1205(8)(B) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6365(8)(B)) is amended by striking ``, the Adult 
                Education Act, the Individuals with Disabilities 
                Education Act, and the Job Training Partnership Act'' 
                and inserting ``the Individuals with Disabilities 
                Education Act, and the Employment, Training, and 
                Literacy Enhancement Act''.
                  (B) Section 1414.--Section 1414(c)(8) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6434(c)(8)) is amended by striking ``programs 
                under the Job Training Partnership Act,'' and inserting 
                ``activities under the Employment, Training, and 
                Literacy Enhancement Act,''.
                  (C) Section 1423.--Section 1423(9) of the Elementary 
                and Secondary Education Act of 1965 (20 U.S.C. 6453(9)) 
                is amended by striking ``programs under the Job 
                Training and Partnership Act'' and inserting 
                ``activities under the Employment, Training, and 
                Literacy Enhancement Act''.
                  (D) Section 1425.--Section 1425(9) of the Elementary 
                and Secondary Education Act of 1965 (20 U.S.C. 6455(9)) 
                is amended by striking ``, such as funds under the Job 
                Training Partnership Act,'' and inserting ``, such as 
                funds made available under the Employment, Training, 
                and Literacy Enhancement Act,''.
          (18) Freedom support act.--The last sentence of section 505 
        of the FREEDOM Support Act (22 U.S.C. 5855) is amended by 
        striking ``, through the Defense Conversion'' and all that 
        follows through ``or through'' and inserting ``or through''.
          (19) Emergency jobs and unemployment assistance act of 
        1974.--
                  (A) Section 204.--Section 204(b) of the Emergency 
                Jobs and Unemployment Assistance Act of 1974 (26 U.S.C. 
                3304 note) is amended by striking ``designate as an 
                area'' and all that follows and inserting ``designate 
                as an area under this section an area that is a local 
                workforce development area under the Employment, 
                Training, and Literacy Enhancement Act.''.
                  (B) Section 223.--Section 223 of the Emergency Jobs 
                and Unemployment Assistance Act of 1974 (26 U.S.C. 3304 
                note) is amended--
                          (i) in paragraph (3), by striking 
                        ``assistance provided'' and all that follows 
                        and inserting ``assistance provided under the 
                        Employment, Training, and Literacy Enhancement 
                        Act;''; and
                          (ii) in paragraph (4), by striking ``funds 
                        provided'' and all that follows and inserting 
                        ``funds provided under the Employment, 
                        Training, and Literacy Enhancement Act;''.
          (20) Job training reform amendments of 1992.--Section 701 of 
        the Job Training Reform Amendments of 1992 (29 U.S.C. 1501 
        note) is repealed.
          (21) Public law 98-524.--Section 7 of Public Law 98-524 (29 
        U.S.C. 1551 note) is repealed.
          (22) Veterans' benefits and programs improvement act of 
        1988.--Section 402 of the Veterans' Benefits and Programs 
        Improvement Act of 1988 (29 U.S.C. 1721 note) is amended--
                  (A) in subsection (a), by striking ``title III of the 
                Job Training Partnership Act (29 U.S.C. 1651 et seq.)'' 
                and inserting ``the Employment, Training, and Literacy 
                Enhancement Act'';
                  (B) in subsection (c), by striking ``Training, in 
                consultation with the office designated or created 
                under section 322(b) of the Job Training Partnership 
                Act,'' and inserting ``Training''; and
                  (C) in subsection (d)--
                          (i) in paragraph (1), by striking ``under--'' 
                        and all that follows through ``the Veterans' '' 
                        and inserting ``under the Veterans' ''; and
                          (ii) in paragraph (2), by striking 
                        ``Employment and training'' and all that 
                        follows and inserting ``Employment, training, 
                        and literacy activities under the Employment, 
                        Training, and Literacy Enhancement Act.''.
          (23) Veterans' job training act.--
                  (A) Section 13.--Section 13(b) of the Veterans' Job 
                Training Act (29 U.S.C. 1721 note) is amended by 
                striking ``assistance under the Job Training 
                Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                inserting ``assistance under the Employment, Training, 
                and Literacy Enhancement Act''.
                  (B) Section 14.--Section 14(b)(3)(B)(i)(II) of the 
                Veterans' Job Training Act (29 U.S.C. 1721 note) is 
                amended by striking ``under part C of title IV of the 
                Job Training Partnership Act (29 U.S.C. 1501 et seq.)'' 
                and inserting ``under the Employment, Training, and 
                Literacy Enhancement Act''.
                  (C) Section 15.--Section 15(c)(2) of the Veterans' 
                Job Training Act (29 U.S.C. 1721 note) is amended--
                          (i) in the second sentence, by striking 
                        ``part C of title IV of the Job Training 
                        Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                        inserting ``the Employment, Training, and 
                        Literacy Enhancement Act''; and
                          (ii) in the third sentence, by striking 
                        ``title III of''.
          (24) Worker adjustment and retraining notification act.--
        Section 3(a)(2) of the Worker Adjustment and Retraining 
        Notification Act (29 U.S.C. 2102(a)(2)) is amended by striking 
        ``title III of the Job Training Partnership
        Act'' and inserting ``title II, III, or IV of the Employment, 
        Training, and Literacy Enhancement Act''.
          (25) Title 31, united states code.--Section 6703(a) of title 
        31, United States Code, is amended by striking paragraph (4) 
        and inserting the following:
          ``(4) Programs under title III or IV of the Employment, 
        Training, and Literacy Enhancement Act.''.
          (26) Veterans' rehabilitation and education amendments of 
        1980.--Section 512 of the Veterans' Rehabilitation and 
        Education Amendments of 1980 (38 U.S.C. 4101 note) is amended 
        by striking ``the Comprehensive Employment and Training Act (29 
        U.S.C. et seq.),'' and inserting ``the Employment, Training, 
        and Literacy Enhancement Act,''.
          (27) Title 38, united states code.--
                  (A) Section 4102a.--Section 4102A(d) of title 38, 
                United States Code, is amended by striking ``the Job 
                Training Partnership Act'' and inserting ``the 
                Employment, Training, and Literacy Enhancement Act''.
                  (B) Section 4103a.--Section 4103A(c)(4) of title 38, 
                United States Code, is amended by striking ``Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.))'' 
                and inserting ``Employment, Training, and Literacy 
                Enhancement Act)''.
                  (C) Section 4213.--Section 4213 of title 38, United 
                States Code, is amended by striking ``Job Training 
                Partnership Act (29 U.S.C. 1501 et seq.),'' and 
                inserting ``Employment, Training, and Literacy 
                Enhancement Act,''.
          (28) United states housing act of 1937.--Section 23 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437u) is 
        amended--
                  (A) in subsection (b)(2)(A), by striking ``the Job 
                Training'' and all that follows through ``or the'' and 
                inserting ``the Employment, Training, and Literacy 
                Enhancement Act or the'';
                  (B) in the first sentence of subsection (f)(2), by 
                striking ``programs under the'' and all that follows 
                through ``and the'' and inserting ``programs under 
                title II, III, or IV of the Employment, Training, and 
                Literacy Enhancement Act and the''; and
                  (C) in subsection (g)--
                          (i) in paragraph (2), by striking ``programs 
                        under the'' and all that follows through ``and 
                        the'' and inserting ``programs under title II, 
                        III, or IV of the Employment, Training, and 
                        Literacy Enhancement Act and the''; and
                          (ii) in paragraph (3)(H), by striking 
                        ``program under'' and all that follows through 
                        ``and any other'' and inserting ``program under 
                        title II, III, or IV of the Employment, 
                        Training, and Literacy Enhancement Act and any 
                        other''.
          (29) Housing act of 1949.--Section 504(c)(3) of the Housing 
        Act of 1949 (42 U.S.C. 1474(c)(3)) is amended by striking 
        ``pursuant to'' and all that follows through ``or the'' and 
        inserting ``pursuant to the Employment, Training, and Literacy 
        Enhancement Act or the''.
          (30) Older americans act of 1965.--
                  (A) Section 203.--Section 203 of the Older Americans 
                Act of 1965 (42 U.S.C. 3013) is amended--
                          (i) in subsection (a)(2), by striking the 
                        last sentence and inserting the following: ``In 
                        particular, the Secretary of Labor and the 
                        Secretary of Education shall consult and 
                        cooperate with the Assistant Secretary in 
                        carrying out the Employment, Training, and 
                        Literacy Enhancement Act of 1997.''; and
                          (ii) in subsection (b), by striking paragraph 
                        (1) and inserting the following:
          ``(1) the Employment, Training, and Literacy Enhancement 
        Act,''.
                  (B) Section 502.--Section 502 of the Older Americans 
                Act of 1965 (42 U.S.C. 3056) is amended--
                          (i) in subsection (b)(1)(N)(i), by striking 
                        ``the Job Training Partnership Act (29 U.S.C. 
                        1501 et seq.)'' and inserting ``the Employment, 
                        Training, and Literacy Enhancement Act''; and
                          (ii) in subsection (e)(2)(C), by striking 
                        ``programs carried out under section 124 of the 
                        Job Training Partnership Act (29 U.S.C. 1534)'' 
                        and inserting ``employment and training 
                        activities carried out under title III of the 
                        Employment, Training, and Literacy Enhancement 
                        Act''.
                  (C) Section 503.--Section 503(b)(1) of the Older 
                Americans Act of 1965 (42 U.S.C. 3056a(b)(1)) is 
                amended by striking ``the Job Training Partnership 
                Act,'' each place it appears and inserting ``the 
                Employment, Training, and Literacy Enhancement Act,''.
          (31) Omnibus crime control and safe streets act of 1968.--
        Section 1801(b)(3) of the Omnibus Crime Control and Safe 
        Streets Act of 1968 (42 U.S.C. 3796ee(b)(3)) is amended by 
        striking ``Job Training Partnership Act (relating to Job Corps) 
        (29 U.S.C. 1691 et seq.)'' and inserting ``Employment, 
        Training, and Literacy Enhancement Act''.
          (32) Environmental programs assistance act of 1984.--The 
        second sentence of section 2(a) of the Environmental Programs 
        Assistance Act of 1984 (42 U.S.C. 4368a(a)) is amended by 
        striking ``Job Training Partnership Act'' and inserting 
        ``Employment, Training, and Literacy Enhancement Act''.
          (33) Domestic volunteer service act of 1973.--
                  (A) Section 103.--Section 103(d) of the Domestic 
                Volunteer Service Act of 1973 (42 U.S.C. 4953(d)) is 
                amended in the second sentence to read as follows: 
                ``Whenever feasible, such efforts shall be coordinated 
                with a local workforce development board established 
                under section 122 of the Employment, Training, and 
                Literacy Enhancement Act.''.
                  (B) Section 109.--Subsections (c)(2) and (d)(2) of 
                section 109 of the Domestic Volunteer Service Act of 
                1973 (42 U.S.C. 4959) is amended by striking ``Job 
                Training Partnership Act'' and inserting ``Employment, 
                Training, and Literacy Enhancement Act''.
          (34) Age discrimination act of 1975.--Section 304(c)(1) of 
        the Age Discrimination Act of 1975 (42 U.S.C. 6103(c)(1)) is 
        amended by striking ``the Comprehensive Employment and Training 
        Act of 1974 (29 U.S.C. 801 et seq.), as amended,'' and 
        inserting ``the Employment, Training, and Literacy Enhancement 
        Act''.
          (35) Energy conservation and production act.--Section 
        414(b)(3) of the Energy Conservation and Production Act (42 
        U.S.C. 6864(b)(3)) is amended by striking ``the Comprehensive 
        Employment and Training Act of 1973'' and inserting ``the 
        Employment, Training, and Literacy Enhancement Act''.
          (36) National energy conservation policy act.--Section 233 of 
        the National Energy Conservation Policy Act (42 U.S.C. 6873) is 
        amended, in the matter preceding paragraph (1), by striking 
        ``the Comprehensive Employment and Training Act of 1973'' and 
        inserting ``the Employment, Training, and Literacy Enhancement 
        Act''.
          (37) Community economic development act of 1981.--Section 
        617(a)(3) of the Community Economic Development Act of 1981 (42 
        U.S.C. 9806(a)(3)) is amended by striking ``activities such as 
        those described in the Comprehensive Employment and Training 
        Act'' and inserting ``employment and training activities 
        described in the Employment, Training, and Literacy Enhancement 
        Act''.
          (38) Stewart b. mckinney homeless assistance act.--Section 
        103(b)(2) of the Stewart B. McKinney Homeless Assistance Act 
        (42 U.S.C. 11302(b)(2)) is amended by striking ``the Job 
        Training Partnership Act'' and inserting ``the Employment, 
        Training, and Literacy Enhancement Act''.
          (39) National and community service act of 1990.--
                  (A) Section 177.--Section 177(d) of the National and 
                Community Service Act of 1990 (42 U.S.C. 12637(d)) is 
                amended by striking ``Job Training Partnership Act'' 
                each place it appears and inserting ``Employment, 
                Training, and Literacy Enhancement Act''.
                  (B) Section 198c.--Section 198C of the National and 
                Community Service Act of 1990 (42 U.S.C. 12653c) is 
                amended--
                          (i) in subsection (b)(1), by striking ``a 
                        military installation described in section 
                        325(e)(1) of the Job Training Partnership Act 
                        (29 U.S.C. 1662d(e)(1)).'' and inserting ``a 
                        military installation being closed or realigned 
                        under--
                  ``(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).''; and
                          (ii) in subsection (e)(1)(B), by striking 
                        clause (iii) and inserting the following:
                  ``(iii) an at-risk youth (as defined in section 4 of 
                the Employment, Training, and Literacy Enhancement 
                Act).''.
                  (C) Section 199l.--Section 199L(a) of the National 
                and Community Service Act of 1990 (42 U.S.C. 12655m(a)) 
                is amended by striking ``the Job Training Partnership 
                Act (29 U.S.C. 1501 et seq.)'' and inserting ``the 
                Employment, Training, and Literacy Enhancement Act''.
          (40) Cranston-gonzalez national affordable housing act.--
                  (A) Section 454.--Subparagraphs (H) and (M) of 
                subsection (c)(2), and subsection (d)(7), of section 
                454 of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 12899c) are amended by striking 
                ``the Job Training Partnership Act'' and inserting 
                ``the Employment, Training, and Literacy Enhancement 
                Act''.
                  (B) Section 456.--The first sentence of section 
                456(e) of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 12899e(e)) is amended by 
                striking ``the Job Training Partnership Act'' each 
                place it appears and inserting ``the Employment, 
                Training, and Literacy Enhancement Act''.
          (41) Violent crime control and law enforcement act of 1994.--
        Section 31113(a)(4)(C) of the Violent Crime Control and Law 
        Enforcement Act of 1994 (42 U.S.C. 13823(a)(4)(C)) is amended 
        by inserting after ``the Job Training Partnership Act (29 
        U.S.C. 1501 et seq.)'' the following: ``, title II, III, or IV 
        of the Employment, Training, and Literacy Enhancement Act,''.
          (42) Personal responsibility and work opportunity 
        reconciliation act of 1996.--Section 403(c)(2)(K) and section 
        423(d)(11) of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)(K) and 1138a 
        note) are amended by striking ``Job Training Partnership Act'' 
        each place it appears and inserting ``Employment, Training, and 
        Literacy Enhancement Act''.

           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

SEC. 1001. EFFECTIVE DATE.

  This division and the amendments made by this division shall take 
effect on July 1, 1998.

SEC. 1002. TRANSITION PROVISIONS.

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

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

              TITLE XXI--AMENDMENTS TO GENERAL PROVISIONS

SEC. 2101. REHABILITATION SERVICES ADMINISTRATION.

  Section 3 of the Rehabilitation Act of 1973 (29 U.S.C. 702) is 
amended--
          (1) in subsection (b), by striking ``, as well as unexpended 
        appropriations for carrying out the Vocational Rehabilitation 
        Act (29 U.S.C. 31-42),''; and
          (2) by striking subsection (c).

SEC. 2102. DEFINITIONS.

  Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 706) is 
amended--
          (1) by striking paragraph (12);
          (2) in paragraph (15)(A), by inserting a comma after 
        ``subparagraph (B) or (C)'';
          (3) by adding at the end the following:
  ``(36) The term `administrative costs' means--
          ``(A) expenditures not incurred by the State unit for--
                  ``(i) rehabilitation counselors;
                  ``(ii) rehabilitation case coordinators; or
                  ``(iii) other direct service personnel; and
          ``(B) notwithstanding subparagraph (A) includes expenditures 
        incurred by the State unit in the performance of administrative 
        functions under the vocational rehabilitation program, 
        including expenses related to program planning, development, 
        monitoring, and evaluation, including--
                  ``(i) quality assurance;
                  ``(ii) budgeting, accounting, financial management, 
                information systems, and related data processing;
                  ``(iii) providing information about the program to 
                the public;
                  ``(iv) technical assistance to other State agencies, 
                private nonprofit organizations, and businesses and 
                industries;
                  ``(v) the State Rehabilitation Advisory Council and 
                other advisory committees;
                  ``(vi) professional organization membership dues for 
                State unit employees;
                  ``(vii) the removal architectural barriers in State 
                vocational rehabilitation agency offices and State 
                operated rehabilitation facilities;
                  ``(viii) operating and maintaining State unit 
                facilities, equipment, and grounds;
                  ``(ix) supplies;
                  ``(x) administration of the comprehensive system of 
                personnel development, including personnel 
                administration, administration of affirmative action 
                plans, and training and staff development, 
                administrative salaries, including clerical and other 
                support staff salaries, in support of these functions;
                  ``(xi) travel costs related to carrying out the 
                program, other than travel costs related to the 
                provision of services;
                  ``(xii) costs incurred in conducting reviews of 
                rehabilitation counselor or coordinator determinations; 
                and
                  ``(xiii) legal expenses required in the 
                administration of the program.''; and
          (4) by redesignating paragraphs (36), (22), (23), (24), (25), 
        (1), (2), (3), (26), (4), (5), (6), (27), (7), (28), (29), 
        (30), (20), (21), (8), (31), (15), (32), (9), (10), (33), (11), 
        (19), (13), (14), (16), (18), (34), (35), and (17) as 
        paragraphs (1) through (35), respectively.

SEC. 2103. REPORTS.

  Section 13 of the Rehabilitation Act of 1973 (29 U.S.C. 712) is 
amended by inserting after the third sentence ``The Commissioner shall 
also annually collect information with respect to the title I, 
vocational rehabilitation services program, on administrative costs and 
other expenditures under the program.''.

      TITLE XXII--AMENDMENTS TO VOCATIONAL REHABILITATION SERVICES

                     Subtitle A--General Provisions

SEC. 2201. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS.

  Section 100(b) of the Rehabilitation Act of 1973 (29 U.S.C. 720(b)) 
is amended in each of paragraphs (1) and (2) by striking ``fiscal years 
1993 through 1997'' and inserting ``fiscal years 1998, 1999, and 
2000''.

SEC. 2202. STATE PLANS.

  Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) 
is amended--
          (1) in paragraph (4)--
                  (A) by striking ``, except that in the case'' and 
                inserting ``, except that--
          ``(A) in the case'';
                  (B) by striking ``to the extent permitted by such 
                regulations,'';
                  (C) by inserting ``and'' after the semicolon; and
                  (D) by adding at the end the following:
          ``(B) in the case of earmarked funds used as the State match 
        for Federal funds, where such funds are earmarked for 
        particular geographic areas within a State;'';
          (2) in paragraph (7)(A)--
                  (A) by striking clause (i)(II) and all that follows;
                  (B) by striking ``which shall include--
          ``(i) a description'' and inserting ``which shall include a 
        description'';
                  (C) by striking ``on an annual basis--
                  ``(I) the number and type'' and inserting ``on an 
                annual basis the number and type''; and
                  (D) by striking ``counselors to clients; and'' and 
                inserting ``counselors to clients;'';
          (3) in paragraph (11)(A)--
                  (A) by striking ``(20 U.S.C. 2301 et seq.), and'' and 
                inserting ``(20 U.S.C. 2301 et seq.),''; and
                  (B) by inserting after ``(41 U.S.C. 46 et seq.)'' the 
                following: ``, and State use contracting programs'';
          (4) by striking paragraph (13);
          (5) by striking paragraph (17);
          (6) in paragraph (24)--
                  (A) in the matter preceding subparagraph (A), by 
                striking ``students who are individuals'' and inserting 
                ``students''; and
                  (B) in subparagraph (B), by striking ``individualized 
                written rehabilitation program'' and inserting 
                ``individualized education program'';
          (7) in paragraph (25), by striking ``Secretary'' and 
        inserting ``Commissioner'';
          (8) in paragraph (28), by adding at the end before the 
        semicolon the following: ``and State use contracting 
        programs'';
          (9) by striking paragraph (30);
          (10) in paragraph (33), by striking ``and working 
        relationships'';
          (11) in paragraph (36)--
                  (A) in subparagraph (B)(i), by moving the margin two 
                ems to the left; and
                  (B) in clauses (i), (ii), and (iii) of subparagraph 
                (C) (including subclause (II) of each of such clauses 
                (ii) and (iii)), by moving the margin two ems to the 
                left; and
          (12) by redesignating paragraphs (14), (15), (16), (18) 
        through (22), (24) through (29), and (31) through (36) as 
        paragraphs (13) through (32), respectively.

SEC. 2203. SCOPE OF VOCATIONAL REHABILITATION SERVICES.

  Section 103(a) of the Rehabilitation Act of 1973 (29 U.S.C. 723(a)) 
is amended--
          (1) by striking paragraph (7); and
          (2) by redesignating paragraphs (8) through (16) as 
        paragraphs (7) through (15), respectively.

SEC. 2204. STATE REHABILITATION ADVISORY COUNCIL.

  Section 105 of the Rehabilitation Act of 1973 (29 U.S.C. 725) is 
amended by striking subsection (i).

SEC. 2205. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

  Section 106(a) of the Rehabilitation Act of 1973 (29 U.S.C. 726(a)) 
is amended in paragraph (1) by adding at the end the following: ``After 
such date, the Commissioner shall review and, if necessary, revise the 
evaluation standards and performance indicators every three years. Any 
necessary revisions shall be developed with input from State vocational 
rehabilitation agencies, related professional and consumer 
organizations, recipients of vocational rehabilitation services, and 
other interested parties. Any proposed revisions shall be subject to 
the notice, publication, and comment provisions described in paragraph 
(3).''.

SEC. 2206. MONITORING AND REVIEW.

  Section 107(a) of the Rehabilitation Act of 1973 (29 U.S.C. 727(a)) 
is amended by adding at the end the following:
          ``(5) Monitoring and review reports.--Any reports detailing 
        the findings of the annual reviews and periodic on-site 
        monitoring visits shall be made available to the State 
        Rehabilitation Advisory Council for use in the development and 
        modification of the State plan.''.

          Subtitle B--Basic Vocational Rehabilitation Services

SEC. 2211. STATE ALLOTMENTS.

  Section 110(d)(2) of the Rehabilitation Act of 1973 (29 U.S.C. 
730(d)(2)) is amended--
          (1) by striking ``the Secretary--'' and all that follows 
        through ``(B) not less than'' and inserting ``the Secretary, 
        not less than''; and
          (2) by striking ``fiscal years 1995, 1996, and 1997'' and 
        inserting ``fiscal years 1998, 1999, and 2000''.

SEC. 2212. PAYMENTS TO STATES.

  Section 111(a)(2)(B) of the Rehabilitation Act of 1973 (29 U.S.C. 
731(a)(2)(B)) is amended--
          (1) by striking clause (i); and
          (2) by striking ``(ii)''.

SEC. 2213. CLIENT ASSISTANCE PROGRAM.

  Section 112(h) of the Rehabilitation Act of 1973 (29 U.S.C. 732(h)) 
is amended by striking ``fiscal years 1993 through 1997'' and inserting 
``fiscal years 1998, 1999, and 2000''.

            TITLE XXIII--AMENDMENTS TO RESEARCH AND TRAINING

SEC. 2221. AUTHORIZATION OF APPROPRIATIONS.

  Section 201(a) of the Rehabilitation Act of 1973 (29 U.S.C. 761(a)) 
is amended--
          (1) in paragraph (1), by striking ``each of fiscal years 1993 
        through 1997'' and inserting ``fiscal years 1998, 1999, and 
        2000''; and
          (2) in paragraph (2), by striking ``each of fiscal years 1993 
        through 1997'' and inserting ``fiscal years 1998, 1999, and 
        2000''.

SEC. 2222. NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION 
                    RESEARCH.

  Section 202(c) of the Rehabilitation Act of 1973 (29 U.S.C. 761a(c)) 
is amended--
          (1) by striking ``, except that'' and all that follows 
        through ``regular technical and professional employees of the 
        Institute''; and
          (2) by redesignating paragraph (4) as paragraph (2).

     TITLE XXIV--AMENDMENTS TO TRAINING AND DEMONSTRATION PROJECTS

  Subtitle A--Training Programs and Community Rehabilitation Programs

SEC. 2231. TRAINING.

  Section 302 of the Rehabilitation Act of 1973 (29 U.S.C. 771a) is 
amended--
          (1) in subsection (b)(1)(B)(iv), by moving the margin two ems 
        to the left;
          (2) by striking subsection (e);
          (3) in subsection (g)(3)(A)--
                  (A) in clause (ii), by adding ``and'' at the end;
                  (B) in clause (iii), by striking ``; and'' and 
                inserting a period; and
                  (C) by striking clause (iv); and
          (4) in subsection (h), by striking ``fiscal years 1993 
        through 1997'' and inserting ``fiscal years 1998, 1999, and 
        2000''; and
          (5) by redesignating subsections (f) through (i) as 
        subsections (e) through (h), respectively.

SEC. 2232. REPEALERS.

  (a) In General.--Sections 303, 304, 305, and 306 of the 
Rehabilitation Act of 1973 (29 U.S.C. 772, 773, 775, and 776) are 
hereby repealed.
  (b) Conforming Amendment.--The table of contents of such Act (29 
U.S.C. 701 note) is amended by striking the items relating to sections 
303, 304, 305, and 306.

SEC. 2233. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--Section 310 of the Rehabilitation Act of 1973 (29 
U.S.C. 777) is amended--
          (1) by striking ``each of fiscal years 1993 through 1997'' 
        and inserting ``fiscal years 1998, 1999, and 2000'';
          (2) by redesignating such section as section 303; and
          (3) by inserting such section after section 302.
  (b) Conforming Amendment.--The table of contents of such Act (29 
U.S.C. 701 note) is amended--
          (1) by striking the item relating to section 310 (as such 
        section was in effect prior to the redesignation of such 
        section under subsection (a)(2)); and
          (2) by inserting after the item relating to section 302 the 
        following:

``Sec. 303. Authorization of appropriations.''.

        Subtitle B--Special Projects and Supplementary Services

SEC. 2241. SPECIAL DEMONSTRATION PROGRAMS

  Section 311 of the Rehabilitation Act of 1973 (29 U.S.C. 777a) is 
amended--
          (1) in subsection (a), by striking ``Subject to the 
        provisions of section 306, the'' and inserting ``The'';
          (2) by striking subsection (b);
          (3) in subsections (c) and (d), by striking ``fiscal years 
        1993 through 1997'' each place it appears and inserting 
        ``fiscal years 1998, 1999, and 2000''
          (4) by striking subsection (e); and
          (5) by redesignating subsections (c), (d), and (f) as 
        subsections (b), (c), and (d), respectively.

SEC. 2242. MIGRATORY WORKERS.

  Section 312(b) of the Rehabilitation Act of 1973 (29 U.S.C. 777b(b)) 
is amended by striking ``fiscal years 1993 through 1997'' and inserting 
``fiscal years 1998, 1999, and 2000''.

SEC. 2243. REPEALERS.

  (a) In General.--Sections 314 and 315 of the Rehabilitation Act of 
1973 (29 U.S.C. 777d and 777e) are hereby repealed.
  (b) Conforming Amendment.--The table of contents of such Act (29 
U.S.C. 701 note) is amended by striking the items relating to sections 
314 and 315.

SEC. 2244. SPECIAL RECREATIONAL PROGRAMS.

  (a) In General.--Section 316 of the Rehabilitation Act of 1973 (29 
U.S.C. 777f) is amended--
          (1) in subsection (b), by striking ``fiscal years 1993 
        through 1997'' and inserting ``fiscal years 1998, 1999, and 
        2000'';
          (2) by redesignating such section as section 313; and
          (3) by inserting such section after section 312, as amended 
        by this Act.
  (b) Conforming Amendment.--The table of contents of such Act (29 
U.S.C. 701 note) is amended--
          (1) by striking the item relating to section 316 (as such 
        section was in effect prior to the redesignation of such 
        section under subsection (a)(2)); and
          (2) by inserting after the item relating to section 312 the 
        following:

``Sec. 313. Special recreational programs.''.

        TITLE XXV--AMENDMENTS TO NATIONAL COUNCIL ON DISABILITY

SEC. 2251. AUTHORIZATION OF APPROPRIATIONS.

  Section 405 of the Rehabilitation Act of 1973 (29 U.S.C. 785) is 
amended by striking ``fiscal years 1993 through 1997'' and inserting 
``fiscal years 1998, 1999, and 2000''.

             TITLE XXVI--AMENDMENTS TO RIGHTS AND ADVOCACY

SEC. 2261. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

  Section 501(a) of the Rehabilitation Act of 1973 (29 U.S.C. 791(a)) 
is amended in the third sentence by striking ``the Handicapped'' and 
inserting ``People With Disabilities''.

SEC. 2262. ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD.

  Section 502 of the Rehabilitation Act of 1973 (29 U.S.C. 792) is 
amended--
          (1) in subsection (a), by striking ``Chairperson'' and 
        inserting ``chairperson''; and
          (2) in subsection (g)(2), by striking ``Committee on 
        Education and Labor'' and inserting ``Committee on Education 
        and the Workforce''.

SEC. 2263. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

  Section 509 of the Rehabilitation Act of 1973 (29 U.S.C. 794e) is 
amended--
          (1) by redesignating subsection (n) as subsection (i);
          (2) in subsection (l), by striking ``Committee on Education 
        and Labor'' and inserting ``Committee on Education and the 
        Workforce''; and
          (3) in subsection (m), by striking ``each of the fiscal years 
        1993, 1994, 1995, 1996, and 1997'' and inserting ``each of the 
        fiscal years 1998, 1999, and 2000''.

  TITLE XXVII--AMENDMENTS TO EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS 
                           WITH DISABILITIES

SEC. 2271. AUTHORIZATION OF APPROPRIATIONS.

  Sections 622 and 638 of the Rehabilitation Act of 1973 (29 U.S.C. 
795i and 795q) are each amended by striking ``each of fiscal years 1993 
through 1997'' and inserting ``each of the fiscal years 1998, 1999, and 
2000''.

SEC. 2272. REPEALERS.

  (a) In General.--Parts A and D of title VI of the Rehabilitation Act 
of 1973 (29 U.S.C. 795 et seq. and 795r) are hereby repealed.
  (b) Conforming Amendments.--
          (1) In general.--Parts B and C of title VI of such Act (29 
        U.S.C. 795g et seq. and 795k et seq.) are redesignated as parts 
        A and B of title VI of such Act, respectively.
          (2) Table of contents.--The table of contents of such Act (29 
        U.S.C. 701 note) is amended--
                  (A) by striking the items relating to parts A and D 
                of title VI (as such parts were in effect prior to the 
                repeal of such parts under subsection (a)); and
                  (B) by redesignating the items relating to parts B 
                and C of title VI (as such parts were in effect prior 
                to the redesignation of such parts under paragraph (1)) 
                as items relating to parts A and B of title VI of such 
                Act, respectively.

TITLE XXVIII--AMENDMENTS TO INDEPENDENT LIVING SERVICES AND CENTERS FOR 
                           INDEPENDENT LIVING

SEC. 2281. AUTHORIZATION OF APPROPRIATIONS.

  (a) Sections 714 and 727.--Sections 714 and 727 of the Rehabilitation 
Act of 1973 (29 U.S.C. 796e-3 and 796f-6) are amended by striking 
``each of the fiscal years 1993, 1994, 1995, 1996, and 1997'' and 
inserting ``each of the fiscal years 1998, 1999, and 2000''.
  (b) Section 753.--Section 753 of such Act (29 U.S.C. 796l) is amended 
by striking ``each of the fiscal years 1993 through 1997'' and 
inserting ``each of the fiscal years 1998, 1999, and 2000''.

SEC. 2282. PROGRAM AUTHORIZATION FOR CENTERS FOR INDEPENDENT LIVING.

  Section 721(c)(1)(A) of the Rehabilitation Act of 1973 (29 U.S.C. 
796f(c)(1)(A)) is amended by striking ``,,'' and inserting a comma.

 TITLE XXIX--AMENDMENTS TO SPECIAL DEMONSTRATIONS AND TRAINING PROJECTS

SEC. 2291. AUTHORIZATION OF APPROPRIATIONS.

  Section 801 of the Rehabilitation Act of 1973 (29 U.S.C. 797) is 
amended by striking ``1993 through 1997.'' each place such term appears 
and inserting ``1998 through 2000.''.

SEC. 2292. DEMONSTRATION ACTIVITIES.

  Section 802 of the Rehabilitation Act of 1973 (29 U.S.C. 797a) is 
amended to read as follows:

``SEC. 802. DEMONSTRATION PROJECTS TO INCREASE CLIENT CHOICE.

  ``(a) 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.
  ``(b) Use of Funds.--An entity that receives a grant under this 
section shall use the grant only--
          ``(1) for activities that are directly related to planning, 
        operating, and evaluating the demonstration projects; and
          ``(2) to supplement, and not supplant, funds made available 
        from Federal and non-Federal sources for such projects.
  ``(c) Application.--Any eligible entity that desires to receive a 
grant under this section shall submit an application at such time, in 
such manner, and containing such information and assurances as the 
Commissioner may require, including--
          ``(1) a description of--
                  ``(A) 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;
                  ``(B) 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
                  ``(C) the outreach activities to be conducted by the 
                applicant to obtain eligible clients; and
          ``(2) assurances that a written plan will be established with 
        the full participation of the client, which plan shall, at a 
        minimum, include--
                  ``(A) a statement of the vocational rehabilitation 
                goals to be achieved;
                  ``(B) 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
                  ``(C) objective criteria, an evaluation procedure, 
                and a schedule, for determining whether such goals are 
                being achieved.
  ``(d) Award of Grants.--In selecting entities to receive grants under 
subsection (a), the Commissioner shall take into consideration the--
          ``(1) diversity of strategies used to increase client choice, 
        including selection among qualified service providers;
          ``(2) geographic distribution of projects; and
          ``(3) diversity of clients to be served.
  ``(e) Records.--Entities that receive grants under subsection (a) 
shall maintain such records as the Commissioner may require and comply 
with any request from the Commissioner for such records.
  ``(f) Direct Services.--At least 80 percent of the funds awarded for 
any project under this section shall be used for direct services, as 
specifically chosen by eligible clients.
  ``(g) 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 section for the fiscal 
year.
  ``(h) Definitions.--For the purposes of this section:
          ``(1) Direct services.--The term `direct services' means 
        vocational rehabilitation services, as described in section 
        103(a).
          ``(2) 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.''.

SEC. 2293. TRAINING ACTIVITIES.

  (a) In General.--Section 803 of the Rehabilitation Act of 1973 (29 
U.S.C. 797b) is amended--
          (1) by striking subsections (d) and (e) and redesignating 
        subsection (f) as subsection (d);
          (2) in subsection (d) (as so redesignated by paragraph (1))--
                  (A) by striking ``(g)'' and inserting ``(f)''; and
                  (B) by striking the last sentence; and
          (3) by striking subsection (a) and redesignating subsections 
        (b) through (d) (as so redesignated by paragraph (1)) as 
        subsections (a) through (c).
  (b) Effective Dates.--
          (1) Paragraphs (1) and (2).--The amendments made by 
        paragraphs (1) and (2) of subsection (a) shall take effect on 
        October 1, 1997.
          (2) Subsection (a)(3).--The amendment made by paragraph (3) 
        of subsection (a) shall take effect on October 1, 1998.

     TITLE XXX--AMENDMENTS TO THE HELEN KELLER NATIONAL CENTER ACT

SEC. 2295. AUTHORIZATION OF APPROPRIATIONS.

  Section 205(a) of the Helen Keller National Center Act (29 U.S.C. 
1904(a)) and section 208(h) of such Act (29 U.S.C. 1907(h)) are each 
amended by striking ``1993 through 1997'' and inserting ``1998, 1999, 
and 2000''.

                       TITLE XXXI--EFFECTIVE DATE

SEC. 2297. EFFECTIVE DATE.

  Except as provided in section 2293, this division and the amendments 
made by this division shall take effect on October 1, 1997.

                                Purpose

    The purpose of this Act is--
          (1) to transform the current array of Federal 
        employment, training and adult education and literacy 
        programs from a collection of fragmented and 
        duplicative categorical programs into high quality, 
        coherent, and accountable State and local systems that 
        are designed to provide high quality training for today 
        and the 21st century;
          (2) to empower individuals to choose occupations and 
        training programs, based on accurate and up-to-date 
        information, that will develop more fully their 
        academic, occupational, and literacy skills, leading to 
        productive employment and economic self-sufficiency, 
        and reduction in welfare dependency;
          (3) to provide resources and authority to States and 
        local communities and increase ease of access to high 
        quality employment, training and literacy programs;
          (4) to provide adults with the adult education 
        services they require to participate fully in society;
          (5) to meet the needs of employers in the United 
        States to be competitive; and
          (6) to ensure an adequate return on the investment of 
        funds in employment, training and literacy programs 
        through strong program accountability.

                            Committee Action

    The Subcommittee on Postsecondary Education, Training, and 
Life-Long Learning held hearings on February 11, 1997, February 
25, 1997, February 27, 1997, and March 4, 1997, on the reform 
of the major Federal employment, job training, adult education, 
literacy and vocational rehabilitation programs.
    The February 11, 1997, hearing in Washington, D.C., 
examined how job training laws can be changed to encourage and 
support State and local innovation and reform. The Subcommittee 
received testimony from the Honorable John Engler, Governor, 
State of Michigan, and the Honorable David Steele, State 
Senator, State of Utah. The Subcommittee also received 
testimony from the Honorable William A. Johnson, Jr., Mayor, 
City of Rochester, New York; the Honorable Tom Collins, 
Commissioner, Adams County, Pennsylvania; Jeffrey Howe, 
Chairman, North Central Indiana Private Industry Council, Peru, 
Indiana; and, David Smith, Director of Policy, AFL-CIO, 
Washington, D.C.
    The February 25, 1997, hearing in Washington, D.C., focused 
on the Adult Education Act and family literacy programs. The 
Subcommittee received testimony from the Honorable Lamar Smith, 
U.S. Congressman, State of Texas, and the Honorable Patricia 
McNeil, Assistant Secretary for Vocational and Adult Education, 
U.S. Department of Education, Washington, D.C. The Subcommittee 
also received testimony from Marian Jackson, an adult education 
program participant, Reston, Virginia; Andrew Hartman, 
Director, National Institute for Literacy, Washington, D.C.; 
Sam Drew, Director, Office of Community Education, South 
Carolina Department of Education, Columbia, South Carolina; 
Sharon Darling, President, National Center for Family Literacy, 
Louisville, Kentucky; L.E. Bunch, Assistant Director, UAW-GM 
Center for Human Resources, Auburn Hills, Michigan; and, Evelyn 
Renner, State Liaison, Literacy Volunteers of America, Anaheim, 
California.
    The February 27, 1997, hearing in Washington, D.C., 
examined the Rehabilitation Act of 1973. The Subcommittee 
received testimony from the Honorable Judy Heumann, Assistant 
Secretary, Office of Special Education and Rehabilitative 
Services, U.S. Department of Education, Washington, D.C. The 
Subcommittee also received testimony from Paul Spooner, 
Executive Director, MetroWest Center for Independent Living, 
Inc., Framingham, Massachusetts; Suzanne Hutcheson, President, 
Tri-County TEC, Stuart, Florida; and, P. Charles LaRosa, 
Commissioner, South Carolina Vocational Rehabilitation 
Department, West Columbia, South Carolina.
    The March 4, 1997, hearing in Washington, D.C., continued 
examination of how job training laws can be changed to 
encourage and support State and local innovation and reform. 
The Subcommittee received testimony from Raymond J. Uhalde, 
Acting Assistant Secretary of the Employment and Training 
Administration at the U.S. Department of Labor. The 
Subcommittee also received testimony from Donna DeWeerd, 
Director, Napa County Training and Employment Center, Napa, 
California; Jan Vogel, Executive Director, South Bay Private 
Industry Council, Inglewood, California; Susan Kelley, Vice 
President, Valencia Community College, Orlando, Florida; Thomas 
M. Buzbee, Executive Director, Gulf Coast Trades Center, New 
Waverly, Texas; Adrian Garcia, Student, Gulf Coast Trades 
Center, New Waverly, Texas; and, Chuck McIlhinney, Manager of 
Administration, Bucks County Office of Employment and Training, 
Doylestown, Pennsylvania.

   Introduction of Employment, Training and Literacy Enhancement Act

    On April 17, 1997, Representatives McKeon, Goodling, and 
Kildee introduced H.R. 1385, the Employment, Training, and 
Literacy Enhancement Act of 1997.

                           Legislative Action

    On April 24, 1997, the Subcommittee on Postsecondary 
Education, Training, and Life-Long Learning favorably reported 
the bill with amendments to the full Committee on Education and 
the Workforce by a voice vote.
    On April 30, 1997, the Committee on Education and the 
Workforce assembled to consider H.R. 1385, the Employment, 
Training and Literacy Enhancement Act of1997. H.R. 1385, as 
amended, was favorably reported by the Education and the Workforce 
Committee on April 30, 1997, by a voice vote.

                                Summary

    The Employment, Training, and Literacy Enhancement Act of 
1997 includes two Divisions. Division A of the legislation 
amends, consolidates and improves existing programs established 
under the Job Training Partnership Act (JTPA), the Adult 
Education Act, and the Wagner-Peyser Act. Overall, H.R. 1385, 
the ``Employment, Training, and Literacy Enhancement Act of 
1997'' consolidates over 60 existing employment, training, and 
literacy programs through the establishment of three block 
grants to States and localities, and through amendments to the 
Rehabilitation Act of 1973.
    Division A consists of ten separate titles as outlined 
below:

                      TITLE I--GENERAL PROVISIONS

    Title I includes significant reform of the current JTPA 
State and local delivery structure as well as its fiscal and 
performance accountability provisions, and provides greater 
authority to States and localities in the design and operation 
of their individual employment, training and literacy systems. 
Under the new provisions, Governors would establish a 
collaborative process including representatives of the State 
legislature, key State agency heads, and leaders from business, 
local officials, education and training experts, 
representatives of employees, and others, to develop a single 
State plan for the three block grants authorized under this Act 
and for programs authorized under the Wagner-Peyser Act, and a 
performance measurement system for the three block grants.
    The collaborative process would also be used to carry out 
other duties including designation of local workforce 
development areas, development of criteria for appointment of 
local workforce development boards, and development of criteria 
for the Statewide full-service employment and training delivery 
system.
    Title I also includes provisions for the establishment of 
Workforce Development Boards, replacing the current Private 
Industry Councils (PICs) under JTPA. Unlike PICs these 
business-led boards would generally not run programs but 
instead provide policy guidance and oversight over local 
systems and would be responsible for the establishment of local 
full service employment and training delivery systems-easily 
accessible single points of entry into the employment and 
training system. Locally elected officials would continue to 
play an important role in the development and implementation of 
the local system.
    In addition, this title includes provisions for the 
selection of service providers eligible to provide training 
services under the Adult Employment and Training Block Grant 
and also includes numerous amendments to the general 
programmatic and fiscal provisions under title I of JTPA.

  TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                                 GRANT

    Title II of the bill would amend JTPA by merging the 
existing summer youth employment and year-round training 
programs for Disadvantaged Youth into a single Disadvantaged 
Youth Employment and Training Opportunities block grant.
    The bill maintains the current JTPA title II-C formula for 
the allotment of funds to the States. At the State level, the 
Governor may reserve up to 25 percent of the State allotment to 
carry out certain State level activities, including the 
provision of assistance to local areas with high concentrations 
of disadvantaged youth. From the amount reserved by the 
Governor, at least 10 percent of the State's allotment must be 
used to provide incentive grants to local communities for 
programs that serve school dropouts.
    Under the bill, funds would be allocated to local areas 
based on a State-determined formula (developed through the 
collaborative process). Consistent with JTPA, the amended 
disadvantaged youth program would serve only economically 
disadvantaged youth age 16-21, except that as under current 
law, 10 percent of funds may be used to serve youth who are not 
economically disadvantaged, but who are determined to have 
substantial barriers to employment (and who fall in defined 
categories of ``hard-to-serve'' youth). The bill gives priority 
for services to individuals who, in addition to being 
economically disadvantaged, are determined to be hard to serve, 
including school dropouts.
    Building on existing provisions within JTPA, the 
legislation outlines essential program elements for 
disadvantaged youth programs including: development of 
assessments and service strategies for participants; 
integration of academic, occupational, and work-based learning; 
provision of comprehensive guidance and counseling; provision 
of postsecondary education and training opportunities, where 
appropriate; involvement of employers and parents in the design 
and implementation of programs; and provision of adult 
mentoring. Authorized uses of funds include: direct training 
services; tutoring and study skills training; instruction 
leading to completion of high school or the equivalent; 
alternative high school services; paid and unpaid work 
experience, including summer employment opportunities, which 
are directly linked to academic, occupational, and work-based 
learning; mentoring; training-related supportive services; 
peer-centered activities encouraging responsibility and other 
positive social behaviors during non-school hours; and other 
training and transition services that assist disadvantaged 
youth make the transition to employment, as determined 
appropriate by the local area.

             TITLE III--ADULT EMPLOYMENT AND TRAINING GRANT

    Title III of the bill amends JTPA by turning the current 
Dislocated Worker grant program and the Economically 
Disadvantaged Adult program (along with numerous other 
categorical training programs for adults) into a block grant 
for all adults. While a single employment and training system 
would be established through such consolidation, funding for 
dislocated workers would remain protected through a separate 
funding stream.
    The federal-to-State formulas for allotment of funds to 
States would be based upon current law, with funds flowing to 
States based on the current title II-A (Disadvantaged Adults) 
and the title III (Dislocated Workers) formulas. Using up to 15 
percent of funds allotted to the State from the adult funding 
stream, Governors may carry out incentive grant programs and 
other specified discretionary activities. Governors may use up 
to 30 percent of funds reserved under the dislocated worker 
funding allotment to provide rapid response, to provide 
additional assistance to local areas experiencing worker 
dislocation, and for other specified activities.
    Funds under both the adult and dislocated worker funding 
streams, would be allocated to local workforce development 
areas based upon State-determined formulas developed through 
the collaborative process. Such funds would be available to 
local workforce development areas for the establishment of 
full-service employment and training delivery systems; and for 
the provision of core, intensive, and training services for 
adults and for dislocated workers, respectively.
    Availability of training is based on a ``work first'' 
approach. Individuals who are unable to obtain initial 
employment, or employment that will lead to self-sufficiency, 
through the core services and who after an interview, 
evaluation, or assessment and counseling and have been 
determined to be in need of training services, may receive 
training. In addition, under the adult funding stream, priority 
for intensive and training services must be given to welfare 
recipients and other economically disadvantaged individuals 
with multiple barriers to employment.
    Training services for adults must be provided through the 
use of skill grants distributed through the full-service 
employment and training delivery system. Exceptions to this 
requirement include: on-the-job training; situations where 
there is an insufficient number of qualified providers of 
training services in a local area; situations where there is an 
insufficient number of qualified providers of services for 
special participant populations in the local area; or where the 
local board decides to enter into a direct training contract 
with a community based organization. However, in all cases, 
training services under this title must be provided through 
service delivery methods that, to the extent practicable, 
maximize consumer choice in the selection of eligible providers 
of training services.
    Title III also authorizes the Secretary of Labor to award 
national emergency grants to areas affected by major economic 
dislocations and disasters.

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

    Title IV of the bill would amend current federal programs 
and national activities under JTPA--including: programs for 
Native Americans; programs for Migrant and Seasonal 
Farmworkers; the Job Corps; national research, demonstration 
and evaluation authority; and labor market information. Under 
this title, certain programs are amended, while other 
unnecessary programs and statutory provisions are eliminated.

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

    Title V 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. The authorization for 
the National Institute for Literacy is contained under this 
Title. Title V also provides a framework to help ensure that 
adult education programs are closely aligned with federal job 
training programs.

                   TITLE VI--MISCELLANEOUS PROVISIONS

    Title VI includes repealers and conforming amendments.

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

    Title VII includes amendments to the State Human Resource 
Council, existing councils which States may choose to utilize 
in establishing a collaborative process.

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

    Title VIII includes amendments to the Wagner-Peyser Act, 
ensuring additional coordination with the Employment, Training 
and Literacy Enhancement Act.

             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

    Title IX includes additional technical and conforming 
amendments.

           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

    Title X includes an effective date of July 1, 1998, and 
transition provisions.

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

    Division B amends the Rehabilitation Act of 1973, a major 
Federal law which provides rehabilitation and employment 
training to adults with disabilities. These amendments extend 
the Act's authorization for three years, repeal numerous 
unfunded programs, and make certain technical and other changes 
to the Act.

                            Committee Views

    For years, concerns have mounted regarding this nation's 
confusing array of job training and employment-assistance 
programs. In 1993, the U.S. General Accounting Office 
identified as many as 163 different Federal programs 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 inefficiency.
    After careful consideration of this issue, and 
comprehensive hearings over the past three years, the Committee 
has developed legislation to take an important step in 
addressing these concerns. H.R. 1385, the ``Employment, 
Training, and Literacy Enhancement Act of 1997'' consolidates 
over 60 existing employment, training, and literacy programs 
through the establishment of three block grants to States and 
localities, and through amendments to the Rehabilitation Act of 
1973. However, in development of this legislation the Committee 
determined not to include K-12 school-based programs for 
consolidation or reform in this bill, which accounted for many 
of the programs identified by the GAO in its earlier reports.
    The consolidation in H.R. 1385 eliminates unnecessary 
duplication and fragmentation within employment, training, and 
literacy programs, while providing States and localities with 
the necessary flexibility to design programs to meet the needs 
in their communities of disadvantaged youth, dislocated workers 
and other adults in need of employment and training assistance, 
and individuals with basic skills deficiencies. The bill is 
based upon three guiding principles for reform:
    Individual choice:
          Providing individuals with choice in the selection of 
        employment options and training providers to meet their 
        personal needs through vouchers (skill grants).
    Quality training For the 21st century:
          Establishing a level playing field, where the best 
        providers of employment and training services, 
        including private sector providers, are able to compete 
        to provide services.
          Providing up-to-date information on jobs that are 
        available within local communities, the skills that are 
        necessary for such jobs, and training opportunities 
        within the community.
          Involving employers in the design and implementation 
        of employment and training programs to ensure they are 
        relevant to the skill needs of business in the 
        community.
    Reforming the system by driving resources and authority to 
local communities:
          Transferring responsibility for the design and 
        implementation of programs to States and local 
        communities.
          Consolidating existing Federal job training 
        programs--providing States and local communities easier 
        access to funding for workforce development programs 
        that best meet the needs of their individual States and 
        localities.
          Encouraging further program consolidation and 
        integration at the State and local levels, by removing 
        barriers in Federal statutes to such reforms.
          Increasing ease of access to high quality employment, 
        training, and adult education and literacy services.
    These principles appear to be very consistent with those 
expressed by Utah's State Senator David Steele in testimony 
provided to the Committee at the February 11 hearing on reform 
of employment and training programs. At that hearing, Senator 
Steele, testifying on behalf of the National Conference of 
State Legislatures, described the features that are included in 
Utah's reform legislation and that he considered as essential 
in the reform of workforce programs--``These features include: 
a user friendly or customer driven design; regional workforce 
service councils; a provision for ``one stop'' services; a 
planning process that involved both the legislative and 
executive branches of State government; and a commitment to the 
continuous improvement of the system.''

           TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS

    Title I of the bill amends title I of the Job Training 
Partnership Act (JTPA) by replacing or significantly amending 
most of JTPA's delivery system provisions, such as its State 
planning and administrative authority, local service delivery 
system, performance accountability, and program and fiscal 
requirement provisions.

            State Plan and Collaborative Process Provisions

    The bill requires that Governors, through a collaborative 
process, bring representatives of the State legislature, all 
relevant State agencies that are responsible for employment, 
training and literacy programs, and representatives of business 
and industry, locally-elected officials (representing both 
cities and counties, where appropriate), local educational 
agencies (including adult education and literacy providers), 
postsecondary institutions (including community colleges), 
community based organizations, representatives of employees, 
parents, and others as appropriate, together to plan for 
development of the employment, training, and literacy systems 
in each State.
    It is the intent of the Committee that the Governor and the 
State agency responsible for Adult Education and Literacy 
programs, along with the other individuals and entities 
involved in the collaborative process, develop a single State 
plan for all three block grants, and for programs authorized 
under the Wagner-Peyser Act, and a single performance 
measurement system for the three block grants. In addition, the 
Committee intends for the Governor, through the collaborative 
process, 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 full service employment and training delivery system; 
development of substate formulas for driving program dollars to 
local communities under title II and title III of the bill; and 
the identification of eligible providers of training under the 
Adult Employment and Training program. This consolidation of 
administrative, planning, and reporting requirements, in 
addition to the consolidation of numerous Federal programs and 
funding streams, are expected to reduce significantly 
duplicative and costly planning, paperwork, and reporting 
requirements, resulting in a significant reduction in 
bureaucracy and 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 
employment, training, and literacy systems. Governors are given 
a great deal more flexibility and authority to provide policy 
guidance and to design integrated and innovative statewide 
efforts. Through an amendment offered by Mr. Schaffer and 
accepted during full committee consideration of the bill, State 
legislatures are required to appropriate all funds received by 
the State under titles II and III of this Act. Localities are 
provided with the flexibility and authority to design and to 
operate local programs that meet the employment, training, and 
literacy needs of their individual communities, consistent with 
the statewide policies set by the Governor through the 
collaborative process.

                               State Plan

    Title I of the bill requires a State that desires to 
receive a grant under titles II or III of this Act, under the 
Adult Education and Family Literacy Act, or under the Wagner-
Peyser Act, to submit a single State plan for all such 
programs, to the Secretaries of Education and Labor, for 
consideration by the appropriate Secretary. Such State plan 
must include: a description of the collaborative process used 
in developing the plan; a statement of the long-term goals of 
the State employment, training, and literacy system, including 
the identification of performance benchmarks that the State 
will use to measure its progress in meeting such goals; 
identification of the local workforce development areas in the 
State, including a description of the process that was used in 
the designation of such areas; a description of the criteria to 
be used by local chief elected officials in the appointment of 
local workforce development boards; 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 how the State will 
leverage funds received under this Act; a description of the 
process used by the State to provide an opportunity for public 
comment and input into the development of the plan; and, 
descriptions of how the State will carry out its 
responsibilities with respect to programs authorized under 
title II or title III, under the Adult Education and Family 
Literacy Act, and under the Wagner-Peyser Act, including the 
inclusion of certain other key information as required under 
the bill. It is the intent of the Committee that in development 
of the State plan, the Governor and the individuals and 
entities involved in the collaborative process provide the 
public with an opportunity for review and comment on the plan, 
which may include the holding of public hearings, prior to 
submission of the plan to the Secretaries.

                         Collaborative Process

    As a State's highest ranking elected official, the Governor 
is central to workforce preparation efforts in every State. As 
such, the Committee provides Governors with the lead role in 
pulling together the overall employment, training, and literacy 
planning effort within each State and submission of the plan to 
the Secretaries. However, Members of the Committee recognize 
that Governors alone cannot and should not be solely 
responsible for development and operation of these programs if 
we are to effect meaningful reform in this area. While the 
Governor is ultimately responsible for those portions of the 
State plan that pertain to employment and training programs 
authorized under titles II and III of the bill, the State 
agency responsible for adult education and literacy has final 
authority over those portions of the State plan that deal with 
adult education and literacy programs, as well as the authority 
to administer such programs. Further, the Committee bill places 
great emphasis on the establishment and utilization of the 
collaborative process, for purposes of establishing the State 
plan, as well as for making most major State-level decisions 
affecting these 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, the Committee intends 
that such process be open, active, participatory, and 
significant. The Committee feels very strongly that 
representatives of the State legislature must be fully involved 
in this process, in order to ensure that employment, training, 
and literacy programs are an integral part of each State's 
workforce preparation effort. Members also strongly agree that 
business and industry must be integrally and actively 
involvedwith the Governor, the legislature, and key State agency heads 
in the design of the State-wide programs. It is imperative that 
business and industry participate in the State-level collaborative 
process to ensure their concerns are understood and addressed in 
development of these programs. Only through enhanced employer 
involvement will these programs reflect the changing demands and skill 
needs of the workplace. The Committee recognizes that employers' 
involvement alone will not guarantee successful workforce development 
programs. Therefore, it is imperative that representatives of 
employees, education, local officials, and other stakeholders be 
involved in the collaborative process as well. For these programs to 
work effectively, the Committee believes that the collaborative process 
should seek to have all the stakeholders at the table.
    In recognition of the fact that many States have already 
established State-level collaborative mechanisms for the 
purpose of establishing employment, training, and other human 
resource programs, the Committee bill allows the utilization of 
such pre-existing processes, that substantially meet the 
collaborative process requirements of the bill. Specifically, 
States may utilize existing councils (including State Human 
Resource Investment Councils), for carrying out the 
collaborative process described under this section. In fact, 
the bill maintains the authority originally established under 
title VII of JTPA for State Human Resource Investment Councils. 
The major change to such authority is the relaxation of its 
previously prescriptive membership composition requirements. 
While Committee Members did not want to require that Governors 
establish State level councils or boards, the Committee 
recognizes the leadership that these bodies have provided in 
States where such councils exist, and therefore encourage their 
establishment to fulfill the collaboration requirements 
provided under H.R. 1385.

           Establishment of Local Workforce Development Areas

    The bill requires that States desiring to receive a grant 
under this Act, designate local geographic areas, called 
workforce development areas for the purpose of distributing 
funds and the delivery of services in local employment and 
training programs. 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 the public participation process (described in 
the State plan). Such areas must be consistent with local labor 
market areas, and must be designated taking into consideration 
existing 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 previously 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

    The bill requires Governors, through the collaborative 
process, to establish 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 this bill, the Committee decided 
to assign responsibility for the actual design and operation of 
local employment and training programs to the local level. 
Further, there was a decision made to fully involve employers 
in the design of such local 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 local 
workforce development systems. The establishment of local 
boards is consistent with the testimony received by the 
Committee on job training reform, including testimony provided 
at the March 4th hearing by Ms. Susan Kelley, Vice President of 
Valencia Community College in Orlando, Florida. In her remarks, 
Ms. Kelley explained that ``results that are meaningful to 
local business and industry should drive the system. While 
broad benchmark categories should be included in the federal 
legislation, the only people who can truly tell us what 
improvements are desirable and attainable, and which areas of 
concentration will produce the greatest good in terms of local 
economic development, are in our local business community. We 
all know that is true, and there is no excuse not to place the 
system in their hands. Local boards must be required, and they 
must have a minimum of 51 percent private sector membership.''
    By amending the Job Training Partnership Act, replacing 
existing Private Industry Councils (PICs) with local workforce 
development boards, there is no longer the assumption that 
private industry councils (PICs) as established under JTPA will 
continue to exist, and as such, there is no presumptive 
designation of PICs as workforce development boards. However, 
local areas 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 consider 
carefully 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, local 
elected officials, and other decision makers, to ensure that 
changes are made where change needs to occur, in order to have 
the strongest employment and training programs possible.
    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: representatives 
of education, including representatives of local educational 
agencies, school boards, postsecondary institutions(including 
community colleges), and representatives of adult education and 
literacy providers, selected from among individuals nominated by 
regional or local educational agencies, institutions, or organizations 
representing such individuals or entities. The bill also requires that 
the following groups be appointed to serve on the local boards: 
representatives of community-based organizations (including as 
appropriate, organizations with experience in serving individuals with 
disabilities); representatives of employees (which may include labor); 
and representatives of the public who may include program participants, 
parents, individuals with disabilities, older workers, veterans, or 
organizations serving such individuals. Such members of local boards 
shall also be selected from nominations of regional or local agencies, 
institutions, or organizations representing such individuals or 
entities in the local area. Finally, representatives of local welfare 
and economic development agencies are required to serve on local boards 
as well.
    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, we 
recommend that individuals representing postsecondary 
institutions be chosen from nominees including college 
presidents and college board members or trustees. These boards 
will only be as successful as the collective abilities of their 
membership.
    Governors are provided the authority to certify biennially 
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 their 
members, and to establish bylaws and other operating procedures 
as consistent with the purposes of the Act and with the State 
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 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: the 
selection of service providers (for both the full service 
employment and training delivery system, and for disadvantaged 
youth programs); budget and program oversight over 
disadvantaged youth programs established under title II, adult 
employment and training programs established under title III, 
and the local full service employment and training delivery 
systems.
    Local boards are authorized to receive and disburse funds 
made available for carrying out the above-listed programs or 
may designate an administrative entity for the purpose of 
disbursement of funds to full service providers 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 directly 
provide services authorized under this legislation, unless they 
receive a waiver from the Governor to do so. While the 
Committee bill includes the waiver authority, Members of the 
Committee strongly urge Governors to provide such waivers only 
on rare occasions, where necessary either to improve program 
performance, or in order to provide a full array of services, 
as may be particularly necessary in rural areas where a 
competitive selection process has produced no other qualified 
service providers with demonstrated expertise. In other words, 
the local boards should be the service providers of last 
resort. This is a significant change from current law.
    Local boards, in combination with local chief elected 
officials are also assigned the responsibility of negotiating 
with the Governor on local benchmarks for the workforce 
development area and on the role of local boards in the 
selection of service providers in the full service employment 
and training delivery system.

                    Role of Local Elected Officials

    Local elected officials continue to play a key role in the 
design and implementation of local employment and training 
systems for adults and for disadvantaged youth. Local officials 
appoint members of the local workforce development board under 
the bill. The local board is required to consult with the chief 
elected official in development of the local plan and the local 
official may approve the plan or reject it and make 
recommendations to the board on how to improve the plan. If 
after a reasonable effort the local board is unable to obtain 
approval of the local chief elected official, the plan may be 
submitted to the Governor, but only with the recommendations of 
the chief elected official. In addition, consistent with 
current law, local boards are required to provide opportunity 
for review and comment on the local plan to community-based 
organizations, local education and other social service 
agencies, local business organizations, representatives of 
employees, and the general public, prior to submission of the 
plan to the Governor.
    Local officials are authorized to approve local budgets and 
have joint oversight authority with the local board over 
programs authorized under titles II and III of this Act. Local 
governments may also be designated by the board as the 
administrative entity for local workforce development systems, 
and may compete to provide services through the full service 
employment and training delivery system. Finally, as previously 
mentioned, local officials, along with local boards, negotiate 
with the Governor on local benchmarks against which the 
performance of the local workforce development area will be 
measured and on the role of the local board in designating 
providers for participation in the full service employment and 
training delivery system.
    This legislation intentionally elevates the role of local 
boards in local employment and training delivery systems, 
illustrating the Committee's recognition of the importance of 
employer buy-in and involvement in the design of the local 
system. However, the Committee also recognizes the important 
role of local elected officials to an effective employment and 
training system and is committed to the continuance of such a 
vital role.
    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. Therefore the bill provides 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, an organization that 
such member represents, or to an immediate family member of 
such member. In addition, a Governor may enforce more rigorous 
conflict of interest standards, as determined appropriate.

 Establishment of Local Full Service Employment and Training Delivery 
                                Systems

    In order to provide easy access to employment and training 
services, H.R. 1385 requires local workforce development areas 
to establish a full service employment and training delivery 
system that provides both individuals and employers access to 
services through a network of eligible providers--assuring 
participants that such services will be available regardless of 
where they initially enter the system. These provisions build 
on what many States and local communities are already doing.
    The bill leaves the design of such full service systems up 
to the States and local communities, just asking that there be 
at least one physical location or center in each local 
workforce development area, where individuals can receive all 
of the core services described below, and through which they 
may access more intensive employment and training services. 
Full service sites may include community colleges, local 
employment service offices, local government agencies, private 
non-profit organizations, private for-profit providers, or 
other interested entities of demonstrated effectiveness.
    Core services made available through the full service 
delivery system include: outreach, intake, and orientation for 
services; initial assessment of skill levels, abilities, and 
supportive service needs; job search and placement assistance, 
and, where appropriate career counseling; provision of 
information relating to job vacancies and occupations in 
demand; provision of information on the quality and 
availability of employment, training, literacy, and vocational 
rehabilitation programs, and referral to such programs; 
provision of information relating to Unemployment Insurance 
(U.I.), student financial aid, and other public training 
programs; soliciting and accepting job orders from employers; 
and, the availability of the list of eligible training 
providers and performance information regarding such providers. 
Full service systems may also provide customized screening and 
referrals for employers and customized employment-related 
services on a fee-for-service basis.
    The Committee believes it is important that a workforce 
board have the flexibility to designate a variety of types of 
entities to serve as full service providers and that private 
sector entities be given the opportunity to participate fully. 
Therefore, there should be no presumptive deliverers of 
services through these systems.

                  Identification of Training Providers

    H.R. 1385 establishes a process for identifying training 
providers who are qualified to provide training services under 
the Adult Employment and Training program authorized under 
title III of the bill. Because this legislation builds on the 
use of skill grants (vouchers) for the provision of training 
services, establishment of such an identification process is 
essential to identify qualified providers and to guard against 
``fly-by-night'' providers that may take advantage of program 
participants.
    Eligibility. The bill establishes two ways for training 
programs to become eligible to provide services under the title 
III program. First, training programs that lead to an 
associate, baccalaureate, professional, or graduate degree; 
that are at least two academic years in length and acceptable 
for academic credit toward a baccalaureate degree; or are at 
least one academic year in length, lead to a certificate, 
degree, or other recognized educational credential and prepare 
a participant for gainful employment in a recognized 
occupation; and that are offered by postsecondary institutions 
that are currently eligible under title IV of the Higher 
Education Act of 1965 are automatically eligible to provide 
training services under the adult employment and training 
programs. Second, all other providers may become eligible to 
provide training if determined eligible by a local workforce 
development board, through an alternative eligibility procedure 
developed by the Governor for use by all local boards in the 
State. As part of each State's alternative eligibility 
procedure, Governors must establish minimum acceptable levels 
of performance for training programs which must be taken into 
account by local boards when determining eligibility.
    Performance Reporting. All participating training providers 
under the title III program must submit performance-based 
information on participating programs to a State agency 
designated by the Governor that is responsible for compiling 
and disseminating such information. This State agency is also 
responsible for compiling the list of eligible providers of 
training throughout the State. This information is then sent to 
local boards, who in turn provide such information, through the 
full service employment and training delivery system to 
individuals in need of training assistance. This information 
gathering and dissemination process is essential so individuals 
are empowered to make informed choices in their selection of 
occupations and training providers.
    Performance information that is required for submission 
includes: program completion rates for individuals in the 
applicable programs conducted by the provider; the percentage 
of individuals in the applicable programs who obtain 
employment, which may also specify the percentage of 
individuals who obtain employment in an occupation related to 
the program conducted; and, the earnings at placement of 
individuals who complete the program.
    The Governor may also require that providers submit 
additional performance information, which may include 
information relating to: the retention in employment and the 
subsequent earnings of the individuals who complete the 
applicable program; where appropriate, the rates of licensure 
or certification of individuals who complete the program; the 
percentage of individuals who complete the program who attain 
industry-recognized occupational skills in the subject, 
occupation, or industry for which training is provided, where 
applicable; and the adequacy of space, staff, equipment, 
instructional materials, and student support services offered 
by the provider through a program conducted by the provider. 
However, if the additional information requested by the 
Governor imposes extraordinary costs on providers, the Governor 
must provide access to cost-effective methods for the 
collection of such information or provide additional resources 
to assist providers in the collection of such information from 
funds made available under the adult employment and training 
program.
    Transition. For program years 1999 and 2000, the 
performance-based information that is required of training 
providers need only to pertain to participants who are actually 
served through the title III adult employment and training 
programs.
    Enforcement Authority. In addition to other enforcement 
authority, the State is vested with authority to terminate the 
eligibility of training providers for consistent and 
substantial failure to meet performance criteria established by 
the State. The State is also authorized to terminate such 
eligibility if the State agency or a local board determines 
that an eligible provider substantially violates any 
requirement under this Act. The bill includes an appeal process 
for training providers that are either denied eligibility or 
whose eligibility is terminated.
    Exceptions. Providers of on-the-job training and registered 
apprenticeship programs are not subject to the eligibility 
requirements under this section, but on-the-job training 
providers must provide performance information if required by 
the Governor.
    The bill recognizes the importance of including the private 
sector as providers of training services under local employment 
and training programs. 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 H.R. 
1385 enables a wide variety of training and education providers 
to participate in adult job training programs. This expanded 
provider involvement allows participants to access training 
that will best enable them to enter or re-enter the workforce.

                       Performance Accountability

    Throughout all of the hearings held on reform of our U.S. 
employment, training, and literacy programs over the past 
several years, witnesses have expressed the need for strong 
accountability provisions in any new legislative measure. In 
his testimony before the Committee at the February 11 hearing, 
Governor John Engler of Michigan stated that one of the main 
problems with the current federal job training system is that 
``there is virtually no accountability for results.'' The 
Governor went on to say while current law contains language 
setting performance standards and possible sanctions for 
failure to meet them, ``the sanctions are simply too hard to 
get to, the performance standards are too weak'' and ``they are 
too easy to meet.'' In fact, at that February 11 hearing, 
nearly every witness from both the State and local levels, 
argued in favor of strong performance accountability provisions 
that measure the return on investment in employment and 
training programs.
    Subsequently, Members of the Committee determined that this 
legislation should require States to establish their own 
challenging performance goals and benchmarks, recognizing the 
special characteristics and needs of their individual States. 
Similarly, we ask States to work with local boards and locally 
elected officials in each workforce development area to develop 
local benchmarks, against which the performance of local 
employment and training programs can be measured. Performance 
benchmarks set by the State must measure the continuous 
progress of the State toward meeting its long-term goals for 
employment, training, and literacy programs.
    Specifically, each State would establish indicators of 
performance, or benchmarks, for measuring the progress of the 
State in meeting its long-term goals for each of the three 
block grants authorized under this Act, which include measures 
of the specific ``core indicators'' of performance described in 
the legislation. In order to have comparability in measuring 
performance across States, common definitions for such 
indicators, as well as model levels of performance, would be 
developed through a national collaborative process involving 
States, business leaders, representatives of employees, 
education and training leaders, literacy experts, and others 
with an interest in these programs.
    Because Members of the Committee want to ensure an adequate 
return on the federal investment in employment, training, and 
literacy programs, the Secretary of Labor (for employment and 
training programs) and the Secretary of Education (for adult 
education and literacy programs) are authorized to negotiate 
with each State, the levels of performance expected to be 
achieved by the State based upon the benchmarks identified in 
their State plan, for the core indicators of performance 
described under the bill.
    While we expect the Secretaries and the States to reach 
agreement on these adjusted State benchmarks, and that the 
States will adopt challenging goals and benchmarks that will 
result in high returns on the investment in these programs, 
this negotiation process does not empower the federal 
government to impose a unilateral, one-size-fits-all set of 
national standards upon States and localities. These benchmarks 
are intended to be developed through a ``bottom-up'' process 
and should take into account each State's individual 
circumstances and priorities. This bottom-up and participatory 
performance measurement process contrasts to current law, where 
since 1982 national standards have been established by the 
Secretary of Labor for federal JTPA programs.
    Core Indicators for Adult Employment and Training Programs. 
Indicators identified in the bill that all States must use in 
measuring their performance under the adult employment and 
training programs include: placement of program participants in 
unsubsidized employment; retention in employment (at six 
months, and at one year after placement); increases in earnings 
or in earnings in combination with employer-assisted benefits; 
attainment of industry-recognized occupational skills; 
reduction in welfare dependency; attainment of a high school 
diploma or a general equivalency diploma; and, other such 
measures as States determine appropriate.
    Core Indicators for Adult Education and Literacy. 
Indicators identified in the bill that all States must use in 
measuring their performance under the adult education and 
literacy programs include: achievement in the areas of reading, 
writing, English language acquisition, problem solving, 
numeracy and other literacy skills (for which there would be no 
model levels of performance, definitions, or negotiations with 
the Secretary); receipt of a high school diploma or a general 
equivalency diploma; entry into a postsecondary school, job 
retraining program, employment, or career advancement; 
attainment of the literacy skills and knowledge individuals 
need to be productive and responsible citizens and to become 
more actively involved in the education of their children; and, 
such other measures as States determine appropriate.
    Core Indicators for Economically Disadvantaged Youth. 
Indicators identified in the bill that all States must use in 
measuring their performance under the disadvantaged youth 
employment and training program include: attainment of 
secondary school diplomas or general equivalency diplomas; 
attainment of industry-recognized work readiness and 
occupational skills; placement in, retention in, and completion 
of postsecondary education or advanced training; placement and 
retention in military service, employment, or qualified 
apprenticeships; attainment of challenging State academic 
proficiencies (for which there would be no model levels of 
performance, definitions, or negotiation with the Secretary); 
and, such other measures as States determine appropriate.
    Population Indicators. To encourage services for the 
hardest to serve populations under programs authorized under 
this Act, the legislation asks that the success of certain 
hard-to-serve populations be measured for each of the 
performance indicators described above. For example, the 
success of economically disadvantaged individuals (including 
welfare recipients), older workers, and displaced homemakers 
would be measured under the Adult Training block grant; the 
success of individuals with limited literacy levels and 
economically disadvantaged individuals would be measured under 
the Adult Education and Literacy block grant; and, the success 
of hard to serve disadvantaged youth, including school dropouts 
or individuals with low educational attainment, would be 
measured under the Disadvantaged Youth block grant.
    To provide incentives for high performance, both 
Secretaries would be authorized to provide grants to States 
that exceed expected levels of performance, demonstrate 
continuing progress in program performance, or demonstrate 
continuing progress in coordination and integration of programs 
as well as demonstrating high performance in such programs. 
Similarly, Governors would be authorized to provide incentive 
grants to local areas that reach or exceed their local 
benchmarks.
    The Secretaries would also be authorized to sanction a 
State (by not more than five percent of their allotment for the 
given program) for failure to meet its expected levels of 
performance for two consecutive program years. Specifically the 
bill authorizes the Secretaries to provide technical 
assistance, upon request, to States failing to meet their 
expected benchmarks, and after two years, if failure continues, 
the Secretary may impose the five percent sanction. Similarly, 
Governors would be authorized to sanction local areas for 
failure, for two or more consecutive years, to meet local 
benchmarks (established pursuant to the negotiation carried out 
between a Governor, a local board, and the local chief elected 
official). Governors are also authorized to provide technical 
assistance to local areas. Finally, each State is required to 
annually submit to the Secretaries a report on its level of 
performance for the prior year.

                Fiscal and General Program Requirements

    For programs authorized under titles II, III, and IV, the 
legislation includes significant changes with respect to 
general program requirements under JTPA. A number of provisions 
under this part of JTPA have been eliminated in order to 
provide States and localities with additional flexibility to 
more administer effectively programs. However, prohibitions on 
the uses of funds to encourage or induce relocation of 
businesses are retained as are prohibitions on the uses of 
funds for customized or skill training and related activities 
after relocation that results in job loss at the original site 
if it is within the United States.
    It should be noted, that although current ``conflict of 
interest'' provisions are deleted under this part, the 
Committee has replaced these provisions with stronger 
requirements under title I of the new Act.
    This legislation also includes modifications to current 
provisions under JTPA with respect to labor standards 
applicable to the job training programs authorized by the 
legislation. These provisions represent a consolidation and 
streamlining of the standards that are in current law and are 
largely directed at two goals. First, they ensure that 
currently employed workers are not displaced in any way by 
participants in the training programs funded under the bill. 
Second, they ensure that the training programs funded under the 
bill are operated under safe and healthy conditions and that 
individuals in on the job training or otherwise employed under 
the bill are treated the same as similarly situated trainees or 
employees with respect to wages and working conditions. In 
addition, the legislation also requires States to establish a 
grievance procedure for hearing complaints that the 
requirements of the bill have not been met. The States are 
given discretion to establish a grievance process they deem 
appropriate with a limited remedial scheme specified in the 
bill. The Secretary of Labor is given a limited review over the 
grievance process in the case of an appeal by either party, or 
if no decision is reached through the grievance process within 
60 days.
    The legislation maintains many of the necessary fiscal 
controls which currently exist under JTPA. However, several 
modifications have been made in order to reduce overly 
prescriptive requirements while ensuring that programs adhere 
to minimum fiscal accountability standards. Specific changes 
include: a less burdensome process under which Governors are 
required to prescribe and implement procurement standards to 
ensure fiscal accountability, a streamlined and timely process 
for Governors to take action upon local workforce development 
boards for not complying with fiscal accountability standards, 
and additional flexibility with respect to the terms of 
repayment of certain mis-expended funds (not to include mis-
expenditures resulting from fraud, gross negligence, or other 
such forms of abuse). The legislation maintains certain 
reporting requirements under existing law. The bill also 
clarifies that services, facilities, and equipment funded under 
title II and title III programs, may be used on a fee for 
service basis, by employers in a local area to provide 
employment and training services to incumbent workers as long 
as such use does not have an adverse affect on the provision of 
services to eligible program participants under those titles, 
and the income derived from such fees is used to carry out 
programs authorized under title II or title III, as 
appropriate.
    The legislation also includes modifications to current 
provisions under JTPA dealing with administrative adjudication 
and administrative provisions. With respect to administrative 
provisions, the Committee recognizes the need for the Secretary 
to issue regulations in order to oversee properly and to ensure 
a smooth transition of this legislation. However it is the 
Committee's intent that such regulations be limited only to the 
extent necessary to administer and ensure compliance with the 
specific requirements of this Act. One area in particular in 
which the Committee recognizes the need for the Secretary to 
develop regulations is with respect to the definition of 
``administrative costs'' for programs authorized under titles 
II, III, and IV of this Act, which shall reflect generally 
accepted accounting principles.
    The language of JTPA section 167 has been amended as part 
of a streamlining effort. Section 167 (a)(5), relating to the 
participation in JTPA of individuals authorized to work in the 
United States, is no longer necessary in light of similar 
requirements providing these protections in the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996. 
Language authorizing the Attorney General to bring a pattern or 
practice case under Section 167 on his or her own initiative 
has been eliminated as unnecessary. The amendment does not 
modify the enforcement authority of the Department of Labor.

  TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                                 GRANTS

    Title II of the bill consolidates and amends several 
programs established under the Job Training Partnership Act for 
disadvantaged youth, including the Summer Youth Employment 
Program (title II-B) and the ``year-round'' Youth Training 
Program (title II-C), into a single block grant to States and 
to local communities. While the bill strikes the title II-B 
summer employment provisions of JTPA, we did not intend to end 
summer youth employment activities as an allowable use of funds 
by local communities. It is our intent to combine the best 
parts of the summer and the year-round programs into a single, 
comprehensive block grant for disadvantaged youth employment 
and training. Therefore the Committee wishes to clarify that 
the ``such sums'' authorization level established for the title 
II program, assumes the combination of these two programs as 
well as funding for these two programs.
    The main thrust of reform under this block grant is to 
increase the focus of these programs on longer-term academic 
and occupational learning opportunities for disadvantaged 
youth, rather than short-term, stand-alone employment fixes 
which have not proven to work for hard-to-serve, disadvantaged 
youth.
    Under the bill, communities may continue to carry out 
programs such as summer youth employment, if linked to more 
comprehensive additional learning opportunities. The block 
grant attempts to improve academic and occupational 
opportunities for disadvantaged youth in the community, as well 
as result in the completion of high school, or its equivalent, 
and other positive results such as placement and retention in 
employment or continuation into postsecondary education or 
training.
    Building on existing provisions within JTPA, the 
legislation outlines essential program elements for 
disadvantaged youth programs including: development of 
assessments and service strategies for participants; 
integration of academic, occupational, and work-based learning; 
provision of comprehensive guidance and counseling; provision 
of postsecondary education and training opportunities, where 
appropriate; involvement of employers and parents in the design 
and implementation of programs; and, provision of adult 
mentoring.
    Experience and research over the years have found that one 
of the most effective program elements in determining the 
success of hard-to-serve disadvantaged youth, is a positive 
relationship with a caring, responsible adult. For this reason, 
this legislation includes as a required program element, adult 
mentoring. In addition, the bill removes the current one year 
limitation on follow-up and counseling services for program 
participants, recognizing the need for longer-term service 
delivery.
    In addition to the required program elements, authorized 
uses of funds include: direct training services; tutoring and 
study skills training; instruction leading to completion of 
high school or the equivalent; alternative high school 
services, paid and unpaid work experience, including summer 
employment opportunities, which are directly linked to 
academic, occupational, and work-based learning; mentoring; 
training-related supportive services; peer-centered activities 
encouraging responsibility and other positive social behaviors, 
during non-school hours; and other training and transition 
services that assist disadvantaged youth make the transition to 
employment.
    Important provisions in current law were retained, such as 
requiring that linkages with local educational agencies, local 
welfare agencies, and numerous other programs serving 
disadvantaged youth within the community be established and 
maintained, in order to avoid duplication of programs and to 
enhance service delivery. Members of the Committee recognize 
that many communities are working to pull fragmented funding 
sources together to establish comprehensive youth development 
strategies at the local level. To that end, this Committee 
encourages that funds from programs authorized under this title 
be used to leverage other resources in the community so that 
young people, especially those in high poverty areas, may take 
advantage of a comprehensive range of services.
    Consistent with current law under JTPA, the amended 
disadvantaged youth program would serve only economically 
disadvantaged youth age 16-21. As under current law, ten 
percent of funds may however be spent on youth who are not 
economically disadvantaged, but are determined to have 
substantial barriers to employment and are identified as hard-
to-serve. Provisions in JTPA allowing local areas to serve 
youth beginning at age 14 if described in the local plan (which 
is subject to the Governor's approval), were retained. The bill 
also allows a similar expansion of the age of eligibility to 
age 24 at local community discretion.
    Under the legislation, priority is given to disadvantaged 
youth who are school dropouts and to other hard to serve 
disadvantaged youth who are: basic skills deficient; one or 
more grade levels below the grade level appropriate to the age 
of the individual; pregnant or parenting; individuals with 
disabilities, homeless or run-away; offenders; or are other 
disadvantaged youth who face serious barriers to employment as 
identified by the local workforce development area. Members of 
the Committee determined that such prioritization, as opposed 
to the imposition of percentage requirements was a more 
appropriate way of ensuring that school dropouts and others 
with multiple barriers to employment are served.
    The Committee intends that a significant proportion of 
youth served under this program will be school dropouts. 
However, 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. To provide further incentives for serving school 
dropouts, during Committee consideration of H.R. 1385, an 
amendment offered by Mr. Payne was accepted that requires 
Governors to spend ten percent of their State's total allotment 
on incentive grants to local communities, with a 50 percent 
matching requirement, for programs serving out-of-school youth.
    Another change from current law requires that from funds 
distributed to local workforce development areas under this 
title, local workforce development boards must award grants, on 
a competitive basis, to disadvantaged youth providers in the 
local area. As described in the local plan, local boards are 
expected to fully involve representatives of the local 
community, including community-based organizations with 
experience in serving disadvantaged youth, the local education 
community, parents, youth, local law enforcement agencies, and 
representatives of business and employees in the development 
and implementation of these programs, and in determining that 
the most effective and efficient providers of services are 
chosen to carry out disadvantaged youth programs and 
activities. The Committee encourages local boards to award 
grants to providers of demonstrated effectiveness, or to 
providers who will utilize methodologies that have proven 
effective in serving hard-to-serve disadvantaged youth.
    Finally, the Committee-reported bill maintains the existing 
title II-C funding formula for sending title II funds to the 
States. The bill allows States, through the collaborative 
process, to establish within-State allocation formulas for the 
distribution of funds to local workforce development areas. 
Such formulas must distribute funds equitably throughout the 
State, must ensure against significant funding shifts from year 
to year for local workforce development areas, and must not 
weigh factors disproportionately. Members of the Committee 
again want to stress their strong intent that State formulas 
distribute funds equitably to rural, as well as to urban and 
suburban areas.

     TITLE III--ADULT EMPLOYMENT AND TRAINING CONSOLIDATION GRANTS

    Title III of the bill would amend the current adult 
employment and training programs authorized under JTPA by 
establishing a single delivery system for all adults, that 
maximizes individual choice in the selection of occupations and 
training providers. The bill encourages an ``employment first'' 
approach to job training--providing training services to 
individuals who are unable to obtain initial employment, or 
employment that will lead to self-sufficiency, through core 
services and intensive job search assistance. With limited 
exceptions, training services for adults would be provided 
through the use of vouchers (referred to as skill grants in the 
bill), distributed through an easily accessible local full 
service employment and training delivery system. Members of the 
Committee feel that this legislation will significantly improve 
services for dislocated workers, for welfare recipients who 
must make the transition from welfare to work, and for other 
adults in need of such assistance.
    While a single employment and training system is 
established through this block grant for all adults, funding 
for dislocated workers remains protected. Specifically, funds 
are authorized separately for adult employment and training 
activities, and for dislocated worker employment and training 
activities. The Federal-to-State formulas for allotment of 
funds to States would be based on the current title II-A 
(Disadvantaged Adults) formula and title III (Dislocated 
Workers) formula, protecting against major funding shifts among 
States. In addition, funds would be separately allocated to 
local workforce development areas, based upon State-determined 
formulas for both the adult and dislocated worker funding 
streams. The bulk of funding under the adult and dislocated 
worker funding streams would be sent to local workforce 
development areas (85 percent of each State's funds for adults, 
and 70 percent of each State's funds for dislocated workers). 
These funds would proportionately contribute to the 
establishment of local full service employment and training 
delivery systems, and for the provision of core or ``up-front'' 
services, intensive services, and training services for adults 
and for dislocated workers respectively.
    It is the Committee's intent that Governors will use a 
majority of the funds reserved by States from the dislocated 
worker funding stream, to provide rapid response activities, 
and additional funding to local areas that experience major 
worker dislocation. The Committee feels that this is a very 
important role for States--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 or 
anticipated through locally-driven formula funds.
    Of amounts reserved by the State from the adult employment 
and training funding allotment, and from up to 10 percent of 
funds reserved under the dislocated worker allotment, States 
have the ability to carry out other discretionary activities to 
ensure high quality and effective statewide employment and 
training efforts. These activities may include: staff 
development and technical assistance; incentive grants and 
performance awards, also available at the Governor's discretion 
to further leverage local program integration; funding of model 
programs, including innovative programs designed to meet the 
training and skills needs of incumbent workers; additional 
assistance for the development of the full service system; and 
innovative programs for displaced homemakers and programs 
encouraging training in nontraditional employment.
    At the local level, local workforce development areas, 
under the guidance of local boards, are expected to use funds 
from the adult and dislocated worker funding streams to 
contribute proportionately to the local delivery system. Local 
communities must use funds to pay for the core or ``up-front'' 
services, through the full service system, and for intensive 
and training services for program participants. Funds for 
dislocated workers would be used to provide core, intensive, 
and training services to dislocated workers exclusively. Core 
services funded from the adult funding stream would be 
available on a universal basis with no eligibility 
requirements. However, local areas are to give priority in the 
provision of intensive and training services to welfare 
recipients and to other economically disadvantaged individuals 
with multiple barriers to employment with funds provided under 
the adult funding stream. Local workforce development areas are 
allowed however, to transfer up to 20 percent of the funds from 
amounts allocated to the local area for adults and for 
dislocated workers, between such allocations, if such transfer 
is approved by the Governor. This transfer authority is 
consistent with current appropriations authority, and it 
important to allow localities to meet the economic and training 
needs of their individual communities.
    All training services under this title must be provided 
through service delivery methods that maximize consumer choice 
in the selection of eligible providers of training services. 
The Committee intends that most training authorized under this 
title will be provided through the use of skill grants 
distributed through the full-service employment and training 
delivery system. Exceptions to this requirement include: on-
the-job training, when there is an insufficient number of 
qualified providers of training services in a local area, when 
there is an insufficient number of qualified providers of 
services for special participant populations in the local area, 
or when the local board decides to enter into a direct training 
contract with a community based organization. However in each 
of these cases, individual choice should continue to be 
provided to individuals in the selection of training providers, 
to the maximum extent possible.
    During the March 4 hearing, Mr. Jan Vogel, Executive 
Director of the South Bay Private Industry Council in 
Inglewood, California testified about the positive results that 
the use of vouchers has brought as part of the Aerospace 
Network program in southern California. ``Prior to the 
Aerospace Network, training agencies entered into contracts 
with all 17 PICs in Southern California. Each of these 
contracts having different tuition prices, different payment 
points, different performance standards, and unfortunately 
different quality standards. The creation of a central point 
has finally standardized all aspects of our training provider 
system. We have developed a regional training vendor directory. 
This directory has been certified by the State of California. 
The directory is saving hundreds of thousands of dollars in 
tuition costs (as many agencies were previously overpaying for 
services) and has finally brought a ``quality'' standard to 
training which has been desperately needed in southern 
California.'' Mr. Vogel went on to say ``We strongly believe 
that this vouchering process will be critical to the success of 
welfare reform projects in our area.''
    The Committee strongly supports the use of skill grants 
under the adult training system. However, Members recognize 
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, must establish effective procedures for the 
identification of qualified providers of education and training 
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 eligible 
individuals have a full range of accurate information on the 
quality of providers, including information on program costs, 
program completion rates, placement rates, and wages at 
placement. Where possible, information on the rates of 
licensure, receipt of employer recognized skills, information 
on job retention, and on customer satisfaction should also be 
provided to consumers. Any requirements for such additional 
information however must be accompanied with assistance to 
providers in accessing cost-effective methods of gathering such 
information, or with resources to defray the extraordinary 
costs of such information gathering.
    This legislation allows for the provision of supportive 
services, such as transportation and child care assistance, to 
enable individuals to participate in core, intensive, and 
training services. The Committee recognizes that the provision 
of supportive services is essential in many cases to allow 
participants to fully participate in programs, and to move into 
employment. Members are concerned however, that funds from this 
program not be used to supplant existing resources that are 
specifically designed to provide such supportive services. 
Therefore, funds are allowed for supportive services under this 
program, but only for those individuals who are unable to 
receive such services through other programs specifically 
designed to provide supportive services. Assessment of each 
individual's need for supportive services should, however, be 
part of any comprehensive service strategy, and programs 
authorized under this title should at the very least assist 
individuals in accessing such services.

                       National Emergency Grants

    While this Committee strongly supports moving funds to the 
State and local levels, Members recognize that there are 
certain functions which due to their nature, are most 
efficiently done at the Federal level. One example are programs 
assisted under Part B of title III. Under this bill, 20 percent 
of funds appropriated for dislocated workers under this title 
may be reserved by the Secretary of Labor to provide assistance 
to those areas suffering major economic and worker 
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, and cannot be 
planned for, making it sensible that the Secretary of Labor be 
allowed to provide direct emergency assistance to such areas.

                     TITLE IV--NATIONAL ACTIVITIES

                            Native Americans

    The Committee has provided for a continuation of services 
to Indians, Alaska Natives and Native Hawaiians. Section 401 
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.
    The committee is aware that these groups experience the 
highest unemployment rates of all other populations in the 
American work force. This is due, in large part, to a lack of 
educational and employment and training opportunities. As a 
result, the ability of Native Americans to locate and retain 
employment and to successfully compete in the work force is 
seriously impaired.
    This section authorizes a wide range of services and 
support for a variety of types of Native American service 
providers. In general, the Committee intends that available 
funds be distributed in such a way that the various 
constituencies served by these programs continue to receive 
services proportional to those received in the past.
    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 
Native Hawaiian 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 
source of Federal assistance in meeting migrant and seasonal 
farmworkers' and their dependents' employment, training, 
education, 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 stabilize and improve their 
agricultural employment situation. In addition, the Committee 
recognizes that eligible activities under this part include 
single purpose grants for training and technical assistance for 
housing and related facilities for migrant and seasonal 
farmworkers.
    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 anddevelopments 
that can further improve the capabilities of grantees funded under this 
part. 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.

                     Labor Market Information (LMI)

    In general, this legislation retains the current labor 
market information provisions under JTPA. However, provisions 
requiring the Secretary to prepare and submit a report on the 
development of a nationwide database containing information 
with respect to quarterly earnings reports, have been repealed.

            TITLE V--ADULT EDUCATION AND FAMILY LITERACY ACT

 Ensuring Program Flexibility to Meet the Diverse Needs of Participants

    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.
    In developing the Employment, Training and Literacy 
Enhancement Act, the Committee took these needs into 
consideration. The Committee also recognized 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 as demonstrated in the following examples.
    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 of 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 everyone participates in these 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. Service 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.
    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 percent of the teaching force is 
full time. Almost 75 percent of all programs have volunteers, 
most serving as tutors.
    Based on the diverse needs of adult students and the unique 
characteristics of the service delivery system, the Committee 
felt that the Adult Education and Family Literacy Act should 
provide the eligible agency within the state with the maximum 
flexibility to meet the needs of its constituency. The existing 
Adult Education law contained a number of set asides and caps. 
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. 1385 eliminates these caps and 
set asides in the belief that the needs of those currently 
servedthrough the set-asides and reserves can be better met 
with a highly flexible, consolidated State grant.
    Section 313 of this legislation provides that States may 
retain 15 percent of their allotment for administrative 
expenses and State level activities related to adult education 
and literacy including technology assistance, professional 
development, State literacy resource centers, and support 
services such as transportation and child care for individuals 
who otherwise would be unable to participate in programs under 
this Act. Eligible agencies can use no more than 5 percentage 
points for State administration. Agencies which use less than 
five percentage points for administration can use remaining 
funds for other State level activities related to literacy.
    Eligible providers at the local level can use funds for 
adult education and literacy services, including services 
provided on the work site; family literacy services; and 
English literacy programs. They may retain 5 percent of their 
grant for administrative purposes.

           Focusing Our Efforts to Create a Literate Society

    According to a 1992 report entitled ``Study of Federal 
Funding Sources and Services for Adult Education,'' 84 programs 
in 11 agencies were 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, the Adult Education Act and the National 
Literacy Act authorizes a variety of small literacy programs 
which provide services which can be provided through basic 
adult education programs operated in each State. The Committee 
believes 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 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 and Direct and Equitable Access

    Section 313 outlines the entities eligible to receive funds 
under this Act and ensures that such entities will have direct 
and equitable access to funds available under this Act. 
Eligible local service providers include: local educational 
agencies, correctional agencies, community-based organizations 
of demonstrated effectiveness, volunteer literacy 
organizations, libraries, public or private nonprofit agencies, 
postsecondary educational institutions, public housing 
authorities, and other nonprofit institutions that have the 
ability to provide literacy services to adults and families. A 
consortia of such agencies, organizations, or institutions may 
also apply for funds under this Act.
    Consistent with current law, eligible agencies are to 
provide direct and equitably access to all federal funds 
provided under this Act to such providers. The Committee is 
concerned that not all States are complying with the intent of 
the direct and equitable access provisions contained in current 
law, which ensure the funding of a variety of providers of 
adult education services. The Committee would like to stress 
that we believe it is very important for States to comply with 
this provision in order to assure that all communities are able 
to participate under this Act. As such, we have included a 
definition of ``direct and equitable access'' and have 
requested that each State, in its State plan, describe how it 
is complying with this requirement.

                            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, Executive Director, National Center for Family 
Literacy, in her testimony before the Committee stated,

          Family literacy is an approach to addressing the 
        literacy needs of the nation by simultaneously 
        addressing the educational needs of at least two 
        generations. Family literacy is the integration of the 
        best practices of adult education, early childhood, and 
        parent education--designed to restore the family as the 
        focus in education.

    Unfortunately, many children have parents who 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. Participation in family literacy programs not only 
helps adults become self-sufficient, it empowers parents and 
provides them with the skills they need to work with schools to 
ensure their child receives the best possible education.
    Sharon Darling cited the results of a recent follow-up 
study of 200 representative families in four states, performed 
one to six years after attending a family literacy program and 
found that:
          51 percent of the adults had received a high school 
        equivalency certificate;
          43 percent were employed, compared to 14 percent 
        before enrolling;
          13 percent have enrolled in higher education or 
        training programs and another 11 percent are continuing 
        in adult education programs working toward GED 
        certification;
          Dependence on public assistance was reduced by 50 
        percent; and,
          The present primary teachers rate almost 80 percent 
        of former family literacy children at or above the 
        class average on such factors as attendance, classroom 
        behavior, relations with other children, motivation to 
        learn, family support for education, and probability of 
        success in school.
    For these reasons, we have added family literacy as one of 
the uses of funds for which these block grant dollars may be 
used under Section 314.

                      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.
    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. Testimony provided to the Committee 
by Mr. L. E. Bunch, Assistant Director, UAW-GM Center for Human 
Resources, which recognized the need to offer skill upgrading 
classes to employees and their spouses, pointed out the 
benefits of their adult education program:

          As UAW-represented employees of General Motors, they 
        have used these programs as building blocks to move on 
        to more advanced job-related training. They now can 
        successfully undertake team building activities, 
        perform statistical process control functions, and 
        engage in sophisticated problem-solving techniques. 
        They can, as a result of their increasing skills, 
        achieve the degree of performance necessary to function 
        in the new high performance workplace.

    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 Employment, Training and Literacy Enhancement Act 
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 acknowledgment will address some of the current problems 
facing individuals with low literacy skills who are seeking 
training and employment. 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.

                         Maintenance of Effort

    The Adult Education Act contains one of the most 
restrictive maintenance of effort provisions in federal 
education programs, totally eliminating funds for states when 
the fiscal effort per student or the amount available for 
expenditure by such state for adult education is reduced by as 
little as $1. While the law contains a 25 percent match 
requirement, the percentage share of total expenditures of many 
States far exceed this amount. For example, Michigan and 
California match by more than 90 percent and Arkansas, 
Connecticut, Florida, Indiana, Maine, Minnesota and Oregon 
match by more than 80 percent. While these states are to be 
commended for their extraordinary effort, the Committee is 
concerned their past effort could restrict their ability to 
move funds to fill other important needs should such a 
situation arise in the future. While we believe adult education 
programs to be a vital component of any state's education 
system, we do realize that emergency situations arise and 
states may be forced to divert funding from the system at one 
time or another. As such, the Committee has revised the current 
maintenance of effort provisions to: 1) allow states to reduce 
their effort comparable to any reduction in federal dollars; 2) 
reduce federal contributions by the same percentage reduction 
in state contributions rather than totally eliminate the 
availability of federal dollars for such state. In addition, 
current law has been modified to limit reductions in federal 
funds to those instances where a state reduces its effort by 
more than 10 percent. The Committee believes these changes will 
introduce an element of fairness into the maintenance of effort 
provisions. While the Committee would encourage states to 
continue their level of support for adult education programs, 
it does not want to penalize program participants by 
eliminating all federal funds in instances where this is not 
possible.

             Using Adult Education Funds For Other Purposes

    While the Employment, Training and Literacy Enhancement Act 
ties adult education to the job training system, it 
acknowledges there are important uses of adult education other 
than assisting individuals who need to increase their literacy 
skills for purposes of employment. Marian Jackson, in her 
testimony before the Committee on February 25, 1997, explained 
that she had dropped out of school in the eleventh grade to 
care for a sick mother. While she has been in and out of adult 
education classes because of family responsibilities, she is 
still working toward her GED. She has also used her 
participation in adult education, among other things, as a way 
of encouraging her children to stay in school and graduate. 
According to Marian Jackson:

          Every day I use the skills I have learned in my adult 
        education classes. Because my math skills are better, I 
        can now shop and plan so that I have money left over. 
        My writing skills are better and I can write letters to 
        friends. I have written several of my government 
        representatives about problems in my community. I can 
        read a lot better and understanding what I'm reading 
        and, I'm not afraid to speak out anymore. I am now a 
        full time care giver for my six year old grandson. My 
        skills will help me be able to help him with his school 
        work. In my job, I use the skills I learn to make me a 
        better care giver to the elderly people I work for. In 
        addition to books skills, my self esteem and self 
        confidence have grown.

    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.
    These are but a few examples of the types of assistance 
provided to individuals which are not related to employment but 
which assist them in completing the types of everyday tasks 
which individuals with good literacy skills take for granted. 
The Committee felt, therefore, that it was important to allow 
the continued use of funds for purposes other than employment-
related literacy programs.

                       Measuring Program Success

    In Section 154 of this Act, the Committee has set forth 
core indicators of performance for adult education and literacy 
programs, which States can use to monitor the success of adult 
education and literacy programs funded under this Act. 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, particularly for individuals with low 
literacy levels. 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 improve 
programs and make decisions on the allocation of resources.

The National Institute for Literacy and State Literacy Resource Centers

    Section 321 of the Committee bill continues the 
authorization of 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, and local employment and 
education programs as they implement the Employment, Training 
and Literacy Enhancement 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 with the Departments of Labor, Education, and 
Health and Human Services and expects these Federal agencies to 
work closely with the NIFL to support its mission.
    In order to speed the replacement of members of the 
National Institute for Literacy Advisory Board, the Committee 
has modified current law to allow the Interagency Group (the 
Departments of Education, Labor, and Health and Human Services) 
to appoint members to the board. This is no reflection on the 
important role played by the Institute. Rather a response to a 
concern about the length of the Presidential appointment 
process.
    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 314 allows 
individual States to fund these centers out of the funds they 
receive under this Act. Section 321 of the bill permits the 
National Institute for Literacy to fund a network of State or 
regional adult literacy resource centers to assist State and 
local public and private nonprofit efforts to improve literacy. 
The Institute is already funding a variety of activities 
through these centers and the Committee supports the continued 
funding of such activities.

            TITLE VIII--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 is an obligation to ensure 
that these funds are used for their intended purpose to 
maintain a national system of employment services. The 
amendments to the Wagner-Peyser Act ensure that its programs 
are fully coordinated with the full service employment and 
training delivery system proposed under this legislation.
    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 H.R. 1385. Specifically, 
conforming amendments have been changed throughout. In order to 
ensure coordination between the Employment Service Offices 
within the full service employment and training delivery 
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, in accordance with State statute. In 
the past, some Governors have found it difficult to ensure that 
Employment Service funds in their State are coordinated with 
the overall employment and training strategy.
    In order to reduce the burden upon States in submitting 
multiple plans, amendments to Subsection (f), in combination 
with the State plan provisions of this legislation, require 
that the State plan under Wagner-Peyser be submitted as part of 
the State employment, training, and literacy plan. It is the 
Committee's intention that this will ensure even greater 
coordination between these systems. The bill also eliminates 
the statutory authority of the Federal Advisory Council.

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

                               Background

    The Rehabilitation Act of 1973 provides comprehensive 
Vocational Rehabilitation (VR) services to help individuals 
with physical and mental disabilities become employable and 
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; increased client choice of VR services; 
and increased requirements for consumer control of 
rehabilitation policy and service delivery.

               The Need for a Future Comprehensive Review

    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 disabilities who have the 
greatest needs. The Committee believes that the 1992 amendments 
to the Act made important changes to improve the nation's State 
vocational rehabilitation systems. Based on the Committee's 
review of the Act and its implementation, and evidence of 
difficulties with the program that have come out over the last 
five years, the Committee believes that the Act, particularly 
the Title I Vocational Rehabilitation Services program, merits 
a comprehensive review. Strong evidence supports the need for 
such a review.
    Testimony before this Committee has been mixed on the need 
for change and the scope of that change. During hearings this 
year, Judith Heumann, Assistant Secretary for the Office of 
Special Education and Rehabilitative Services noted that, 
``State VR agencies have been successful in increasing the 
numbers of individuals achieving an employment outcome.'' Yet 
later in her statement, she conceded that, ``we must increase 
employer involvement [and] continue our efforts to streamline 
the rehabilitation process.''
    At the same hearing, Paul Spooner, Executive Director of 
MetroWest Center for Independent Living in Framingham, 
Massachusetts presented a similarly mixed view of the current 
state of the vocational rehabilitation system. He said:

          Many positive changes came out of the 1992 
        amendments, including the simplification of the 
        eligibility process, consumer choice, and changes to 
        the Centers for Independent Living Program. Overall, 
        the changes have been very positive and have led to 
        greater consumer control and involvement. * * * Many 
        States have implemented the 1992 amendments * * * even 
        though there are still no new regulations from the 
        Rehabilitation Services Administration. The process of 
        eligibility has been streamlined. Greater consumer 
        choice has been provided. * * * Some States continue to 
        ignore consumer choice, continue to practice lengthy 
        and unnecessary eligibility processes, and do not place 
        consumers in competitive employment situations. * * * 
        In many cases, State agencies only give lip service to 
        the concept of consumer control and consumer choice.

    There has also been division in the view of the system 
among those who direct it--State vocational rehabilitation 
service directors. This year, Paul Charles LaRosa, Commissioner 
of the South Carolina Vocational Rehabilitation Department 
testified during Committee hearings:

          Nationwide, as in South Carolina, competitive job 
        placements have risen substantially every year since 
        the passage of the 1992 Amendments. * * * It is of 
        interest to note here that the level of effectiveness 
        of the Public Vocational Rehabilitation Program with * 
        * * Social Security recipients would be even further 
        enhanced if the ``disincentives to work'' inherent in 
        the Social Security Program were to be addressed.

    Yet during hearings in 1995, Patrick W. McKenna, Director 
of the Maryland Rehabilitative Services, said:

          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.

    Public reports have been critical of the current system. In 
its 1993 study, 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.
    In January 1997, the National Alliance for the Mentally Ill 
released a report entitled, ``A Legacy of Failure: The 
Inability of the Federal-State Vocational Rehabilitation System 
to Serve People with Mental Illness.'' That report strongly 
criticized the State system, stating that, ``the federal-state 
vocational rehabilitation system has achieved dismal outcomes 
in serving people with severe mental illness. It achieves a 
lower rate of closure into meaningful jobs as compared to 
others with physical disabilities and mental retardation.'' The 
report went on to conclude that, ``Most state vocational 
rehabilitation agencies show little initiative to revise 
existing procedures or to adopt systems that would create real 
incentives for counselors to serve consumers with complex 
needs, including those with severe mental illness.''
    Given the calls to action, the heavy criticism of the 
vocational rehabilitation system, and the dissent from that 
criticism, the Committee strongly believes that the 
Rehabilitation Act needs significant and careful review. 
Unfortunately, the Committee believes that it is unable at this 
time to provide the kind of in-depth legislative oversight that 
this program merits. The primary problem has been the uneven 
implementation of the 1992 Amendments. As noted by Mr. Spooner 
during the Committee's hearings, some States have implemented 
the regulations and some have not.
    The Department of Education bears significant 
responsibility for this problem. The Department failed to 
propose and finalize regulations implementing the 1992 State-
Federal program changes until February, 1997. It failed to 
implement changes to the Title VI Projects With Industry 
regulations until 1997. And, as of this time, the Department 
has yet to release even draft versions of the Standards and 
Indicators implementing regulations a full four and a half 
years after the passage of the 1992 Amendments. Although the 
historic practice in reviewing and authorizing this law has 
been to review the implementation of the Act, based on its 
implementation over the previous five years, the Committee does 
not believe that the 1992 Amendments have been implemented 
sufficiently or uniformly enough to properly review their 
results.

          Length of Authorization, Scope of Reforms and Views

    For the reasons outlined above in the Background section, 
the Committee has chosen a three-year authorization of the 
Rehabilitation Act and its programs. The Committee believes 
that the implementation of this Act and its 1992 Amendments is 
too important to defer beyond the 106th Congress. For similar 
reasons, other amendments in this authorization have been 
limited as well to those that are measured in scope and for 
which there is a consensus on the propriety for change.

                    Explanation of Other Amendments

    One of the most significant amendments to the legislation 
has been the repeal of 22 authorized by unfunded programs. Many 
of these programs have been authorized for over twenty years 
and have never received appropriations. In these times of 
budgetary constraint and scarce resources, the Committee 
believes that the primary focus of resources should be on the 
Title I program.
    Substantive changes and additions to the Rehabilitation Act 
include the definition of administrative costs. The Committee 
believes that previous accountings of program administration in 
the Title I program have been inadequate. The Committee 
complements the Secretary's recent definition of administrative 
costs as part of its February 1997 regulations, and has 
codified much of that definition for the Title I program.
    The Committee reaffirms the distinct original purposes of 
the statewideness and private earmarked funds provisions of 
Title I. The statewideness provision is intended to ensure 
that, in general, State efforts are not purposely skewed to 
particular areas of a State, without permission from the 
Department of Education. The private earmarked funds 
provisions, which were created two years earlier, were intended 
to permit the private earmarking of funds for construction of 
rehabilitation facilities and later, for direct services by the 
same principle, when State tax dollars are insufficient to 
match Federal funds. Particularly in light of its construction 
project origins, the earmarking provision was clearly intended 
to permit earmarked funds to assist particular areas.
    When the statewideness concept was added to the law a few 
years after the earmarking authority, statewideness was not 
intended to cover the private earmarking of funds. This was 
clearly demonstrated by the fact that the practice of private 
earmarking without a waiver of statewideness occurred on a 
regular basis in the 1970's. Contrary to recent Department 
interpretations of these statutory provisions, the bill 
clarifies that earmarking of private funds for service delivery 
in particular geographic areas of the State is permitted 
without a waiver of the State's statewideness obligations.
    For the purposes of this Act, the Committee creates parity 
between the treatment of community rehabilitation programs that 
participate in the Javits-Wagner-O'Day program and those that 
participate in ``state use'' contracting programs. State use 
programs are those State government procurement set-aside 
programs authorized under various State laws.
    For purposes of interpreting the meaning of the term 
``state use,'' the following statutes are listed as example of 
state use laws: California (West's California Codes Annotated 
Welfare and Institutions Code secs. 19403 and 19404); 
Connecticut (General Statutes of Connecticut secs. 10-100, 10-
103, 10-103a, 10-294a, and 10-298 through 298d); Delaware 
(Delaware Code Annotated title 16, secs. 9601 through 9605); 
Florida (Florida Statutes secs. 413.031 through 413.037); 
Indiana (Indiana Statutes secs. 16-7-11.5-1 to 16-7-11.5-3); 
Maryland (Maryland State Finance and Procurement Code Annotated 
secs. 14-101 through 14-108); New Jersey (New Jersey Revised 
Statutes secs. 30:6-23 through 30:6-33); New York (New York 
State Finance Law secs. 175-a through 175-c); North Carolina 
(General Statutes of North Carolina sec. 143-48); Ohio (Ohio 
Revised Code Annotated secs. 4115.31 through 4115.35); Oregon 
(Oregon Revised Statutes secs. 279.835 through 279.855); 
Pennsylvania (71 Pennsylvania Consolidated Statutes sec. 
639.1); Tennessee (Tennessee Code Annotated secs. 71-4-201 
through 71-4-205, and 71-4-701 through 71-4-705); Texas (Texas 
Human Resources Code sec. 122.001 through 122.019); Washington 
(Revised Code of Washington secs. 43.19.520 through 43.19.530); 
West Virginia (West Virginia Code secs. 5A-3-10, and 5A-3A-1 
through 5A-3A-6); and Wisconsin (Wisconsin Statutes sec. 
15.105(22) and 16.752). This list should not be interpreted as 
excluding other similar laws, but is added for the convenience 
of identifying examples of such statutes.
    The Committee also clarifies the original intent of Title I 
State plan provisions relating to students with disabilities 
who have Individualized Education Programs (IEPs). The Senate 
report for the 1992 Amendments stated that the intent of the 
transition services amendments was not ``to shift the 
responsibility of service delivery from education to 
rehabilitation during the transition years. The role of the 
rehabilitation system is primarily one of planning for the 
student's years after leaving school.'' The Committee believes 
that its changes to this provision will effectuate that intent 
by permitting the delivery of transition services under an IEP 
without the development of an Individualized Written 
Rehabilitation Plan. This will reverse the current effect of 
discouraging vocational rehabilitation counselor participation 
by requiring an IWRP for every student with an IEP.
    The bill also reduces the prescriptive Federal design of 
State counselor training programs. It instead permits States to 
determine what their own needs are by their own means, without 
abdicating their responsibility for providing training to their 
staff. The Committee also believes that Congress should not use 
the Title I program to push particular careers and has amended 
the Act's scope of services provisions to effectuate that 
intent.
    The Committee intends that Standards and Indicators, when 
at long last they are released by the Department of Education, 
will be reviewed every three years and revised after public 
comment. The Committee strongly intends, however, that this 
public comment not delay the timely review and revision of 
these long-overdue program performance evaluation tools. The 
Committee believes that scrutiny by an interested public is one 
of the strongest means of assuring program responsiveness, and 
to that end has required that findings and reports from annual 
reviews and periodic on-site monitoring visits shall be made 
available to State Rehabilitation Advisory Councils.

                               Conclusion

    The scope of amendments in this bill is limited because the 
Committee believes that it needs time to review the 
implementation of the 1992 amendments to the Rehabilitation Act 
and its regulations. The Committee expects, however, that there 
will be major reforms of this program during its next 
authorization in the 106th Congress.

                      Section-by-Section Analysis

    H.R. 1385, the ``Employment, Training, and Literacy 
Enhancement Act of 1997,'' as reported by the Committee on 
Education and the Workforce on April 30, 1997.
    Section 1 contains the short title of the bill.
    Section 2 contains the table of contents of the bill; 
including two divisions: Division A, Employment, Training and 
Literacy Programs; and Division B, Vocational Rehabilitation 
Programs.

        DIVISION A--EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS

   TITLE I--AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM REQUIREMENTS

                     Subtitle A--General Provisions

    Section 101 amends Section 2 of the Job Training 
Partnership Act (JTPA) to include a new purpose for the Act.
    Section 102 amends section three of JTPA to provide 
authorizations for Titles II, III and IV under the amended Act.
    Section 103 includes definitions for the following terms: 
Adult Education and Literacy Activities; Appropriate Secretary; 
Chief Elected Official; Community-Based Organization; 
Dislocated Worker; Individual with a Disability; Secretaries; 
State; Supportive Services; Veteran; Employment, Training and 
Literacy Programs; English Literacy Program; Family Literacy 
Services; Full Service Eligible Providers; Human Resource 
Programs; Individual of Limited English Proficiency; Literacy; 
Local Benchmarks; Local Workforce Development Area; On-The-Job 
Training; Outlying Area; Rapid Response Assistance; Skill 
Grant; State Adjusted Benchmarks; State Benchmark; Statewide 
System; and Representatives of Employees.

         Subtitle B--State and Local Administrative Provisions

    Section 111 amends title I of JTPA, to include the 
following sections.
    ``Section 101(a) requires that in order for States to be 
eligible to receive funds under title II, title III, and title 
IV, they must provide to the appropriate Secretaries a three-
year plan which shall meet the requirements of this section.
    ``Section 101(b) specifies the contents of the State plan.
    ``Section 101(c) requires the plan to be approved by the 
appropriate Secretaries unless such plan does not comply with 
the specific provisions of this Act.
    ``Section 101(d) contains special rules for the authority 
over the content of State plans.
    ``Section 101(e) allows States to submit modifications to 
the State plan.
    ``Section 102(a) requires States to establish a 
collaborative process and includes specific individuals and 
entities to be included under such process.
    ``Section 102(b) clarifies that current State councils 
meeting the requirements of Section 103 may serve as the 
collaborative process.
    ``Section 102(c) contains additional functions of the 
collaborative process.''
    Section 112 amends Part B of title I of JTPA by striking 
sections 121 through 123 and inserting the following:
    ``Section 121(a) requires States receiving funds under 
title II or title III to designate workforce development areas 
and includes requirements for that designation.
    ``Section 121(b) includes conditions allowing States to 
designate the entire state as a workforce development area.
    ``Section 122(a) requires local boards be established in 
each workforce development area.
    ``Section 122(b) specifies the criteria and composition of 
local boards.
    ``Section 122(c) specifies the process for the appointment 
of local board members, the certification of such boards and 
the grounds for decertification.
    ``Section 122(d) specifies the functions of the local 
board, including their role with respect to development of the 
local plan, selection of providers, identification of eligible 
providers of training services, budget and program oversight, 
and negotiations regarding local benchmarks and local delivery 
of services.
    ``Section 122(e) specifies the information, including the 
local plan, to be made available to the public by local boards.
    ``Section 123(a) requires States receiving funds under 
Section 312 to establish an employment and training delivery 
system.
    ``Section 123(b) provides framework with respect to access 
to delivery of services.
    ``Section 123(c) specifies eligibility for designation as a 
service provider.
    ``Section 123(d) requires funds available to workforce 
development areas under 313(b) (in addition to related funds) 
be used to provide core services.
    ``Section 123(e) lists permissible services to be provided 
through the full service employment and training delivery 
system.
    ``Section 124(a) specifies requirements for designation of 
an entity as an eligible provider of training services under 
title III.
    ``Section 124(b) specifies the performance information 
required to be submitted by eligible training providers.
    ``Section 124(c) specifies the administration of such 
information by the Governor.
    ``Section 124(d) specifies enforcement with respect to 
eligibility.
    ``Section 124(e) provides exceptions for on-the-job 
training providers and registered apprenticeship programs.''

               Subtitle C--Program and Fiscal Provisions

    Section 121(a) amends section 141(a) of JTPA with respect 
to the job training plan.
    Section 121(b) amends section 141(c) of JTPA with respect 
to the prohibition on use of funds to encourage or induce 
relocation or to use funds for certain activities after 
relocation and sets forth penalties for any such violation.
    Section 121(c) repeals section 141(d) of JTPA with respect 
to certain program requirements.
    Section 121(d) amends section 141(e) of JTPA by repealing a 
provision with respect to a condition of eligibility.
    Section 121(e) repeals section 141(f) of JTPA with respect 
to prohibitions on certain votes.
    Section 121(f) amends section 141(g) of JTPA with respect 
to on-the-job training.
    Section 121(g) amends section 141(h) of JTPA with respect 
to non duplication of facilities or services.
    Section 121(h) repeals section 141(i) of JTPA with respect 
to certain responsibilities of administrative entities.
    Section 121(i) repeals section 141(k) of JTPA with respect 
to the prohibition on certain subsidized employment.
    Section 121(j) amends section 141(n) of JTPA with respect 
to consultation requirements.
    Section 121(k) amends section 141(p) of JTPA with respect 
to the prohibition on use of funds for public service 
employment.
    Section 121(l) amends section 141(q) of JTPA with respect 
to the prohibition on use of funds for certain economic 
activities.
    Section 121(m) repeals section 141(s) of JTPA with respect 
to priority for excess property of the Department of Defense.
    Section 121(n) amends section 141 by inserting at the end:
    ``Section 141(s) clarifying prohibition on entitlement to 
service under this Act.
    ``Section 141(t), allowing services, facilities, and 
equipment funded under title II or title III to be used on a 
fee for service basis to provide employment and training 
services to incumbent workers.''
    Section 122 amends section 142(a) of JTPA with respect to 
benefits for individuals in on-the-job training and individuals 
employed in activities under this Act.
    Section 123 amends section 143 of JTPA by striking 
subsections (a) through (d) and inserting the following:
    ``Section 143(a) includes limitation on the activities that 
impact the wages of employees.
    ``Section 143(b) specifies prohibitions on displacement of 
currently employed workers by certain participants under this 
Act and prohibitions on impairment of contracts.
    ``Section 143(c) specifies further prohibitions with 
respect to non-displacement.
    ``Section 143(d) applies certain health and safety 
standards to participants engaged in specified activities.
    ``Section 143(e) includes provisions with respect to 
employment conditions for individuals in on-the-job training or 
individuals employed in activities under this Act.
    ``Section 143(f) provides interested parties to submit 
comments with respect to certain training programs.''
    Section 124 amends section 144 of JTPA by striking sections 
(a) through (g) and inserts a grievance procedure for 
grievances or complaints alleging violations of the 
requirements of this Act.
    Section 125 amends section 124 of JTPA with respect to 
identification of additional imposed requirements.
    Section 126 amends section 126 of JTPA with respect to the 
authority of the State legislature, including the requirement 
that funds under title II and title III be appropriated by the 
State legislature.
    Section 127 amends section 127 of JTPA with respect to 
interstate agreements.
    Section 131 amends part C of title I of JTPA to include the 
following:
    ``Section 151 requires States receiving funds under this 
Act to implement a statewide performance accountability system.
    ``Section 152(a) requires States to identify benchmarks for 
programs established under titles II, III or V.
    ``Section 152(b) specifies a procedure for determining 
technical definitions of core indicators.
    ``Section 153(a) specifies the process through which States 
negotiate benchmarks with the appropriate Secretary.
    ``Section 153(b) specifies the process through which local 
workforce development boards negotiate levels of performance.
    ``Section 153(c) specifies the process for identifying 
model levels of performance.
    ``Section 154 requires common core performance indicators 
for programs authorized under title III, and includes those 
common core indicators, additional core indicators for programs 
under the Adult Education and Family Literacy Act, common core 
indicators for disadvantaged youth, and population indicators.
    ``Section 155 requires States receiving funds under titles 
II and III of this Act, and the Adult Education and Family 
Literacy Act, to annually report to the appropriate Secretary 
the levels of performance achieved with respect to State 
adjusted benchmarks.
    ``Section 156(a) authorizes the Secretaries to award 
incentive grants to States with respect to high performance.
    ``Section 156(b) authorizes the Secretaries to sanction 
States for failure to meet expected levels of performance; that 
the Secretaries may provide technical assistance upon the 
request of States not meeting expected performance levels, and 
includes the criteria for an appeals process.''
    Section 141 amends section 162 of JTPA requiring the 
allocation of funds be based on the most recent Census Bureau 
data.
    Section 142(a) amends section 164(a) of JTPA concerning the 
establishment of fiscal controls and sanctions by States.
    Section 142(b) amends section 164(b) of JTPA concerning 
sanctions for substantial violations.
    Section 142(c) repeals section 164(c) of JTPA concerning 
the evaluation by the Comptroller General of the United States.
    Section 142(d) amends section 164(d) of JTPA with respect 
to repayment of misexpenditures to the United States.
    Section 142(e) amends section 164(e) of JTPA with respect 
to repayments to the United States of misexpenditures of funds 
in certain cases.
    Section 142(f) repeals section 164(h) of JTPA with respect 
to remedies construed as exclusive remedies.
    Section 143 amends section 165 of JTPA by striking 
subsection (h).
    Section 144 amends section 166(a) of JTPA by striking the 
last sentence concerning administrative adjudication.
    Section 145 amends section 167 of JTPA with respect to 
nondiscrimination.
    Section 146 repeals section 168 of JTPA concerning judicial 
review.
    Section 147 amends section 169 of JTPA to clarify that the 
Secretary shall prescribe rules and regulations only to the 
extent necessary to ensure compliance with this Act.
    Section 148 repeals section 172 of JTPA concerning 
Presidential awards for outstanding private sector involvement 
in job training programs.
    Section 149 repeals section 173 of JTPA concerning a rule 
of construction.
    Section 150 amends section 172 of JTPA to include the 
following:
    ``Section 172 (a) requires the Secretary to define, within 
provided limitations, administrative costs for programs under 
titles II and III that reflect generally accepted accounting 
principles.''

                  Subtitle D--Miscellaneous Provisions

    Section 161 repeals section 182 of JTPA but does not affect 
in any way amendments made by such section 182.
    Section 162 amends section 183 of JTPA to clarify that 
references to the ``Comprehensive Employment and Training 
Act'', or to ``JTPA'', be referred to as the ``Employment, 
Training, and Literacy Enhancement Act'' upon enactment of such 
Act.
    Section 163 repeals Section 184 of JTPA but does not affect 
in any way the repealers made by such section 184.

     TITLE II--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR 
                          DISADVANTAGED YOUTH

    Section 201 strikes part A of title II of JTPA concerning 
the adult training program.
    Section 202 strikes part B of title II of JTPA concerning 
the summer youth employment and training program.
    Section 203 amends title II, Part C of JTPA to create the 
new block grant delivery system.
    Subsection 203 (a) strikes the heading for Part C, and 
renames title II as ``TITLE II--DISADVANTAGED YOUTH EMPLOYMENT 
AND TRAINING OPPORTUNITIES GRANTS''. This subsection 
redesignates the purpose section 261 in Part C of JTPA, as 
section 201, and establishes a new section 202 requiring the 
Secretaries to make grants under title II to States that meet 
the State plan and collaborative process requirements under 
sections 101 and 102 of the bill.
    Subsection 203(b) amends section 262 of JTPA, establishing 
a new section 203 for the allotment and allocation of funds 
among States, provides criteria for such allotment and 
allocation of funds among states and outlying areas and 
specifies the allotment formula for the remaining funds to 
States. Contains additional requirements for the allotment of 
funds to the outlying areas and the freely associated states 
and the definition of disadvantaged youth, for the purposes of 
title II.
    Subsection 203(c) establishes a new section 204 for the 
allocation of funds within States which provides that the 
Governor of each State may reserve not more than 25 percent of 
funds allotted to the State to carry out certain State level 
activities. This section also describes both required and 
discretionary activities that are authorized to be carried out 
with such State reserve funds. In addition, out of the 25 
percent of reserved funds, States shall reserve 10 percent of 
the total amount allotted to the State for out of school youth 
incentive grants; and establishes a limitation of 5 percent of 
total funds allotted for State administrative expenses.
    Section 203 is further amended to require the remainder of 
funds be distributed to local workforce delivery areas 
throughout the State, based upon a formula developed by the 
Governor, through the collaborative process, specifies certain 
criteria which must be taken into account in development of 
such within-State formula.
    Subsection 203(d) amends title II of JTPA by redesignating 
section 263 as section 205, establishing eligibility criteria 
for participation in programs under this title. Also requires 
that no less than 90 percent of program participants be 
economically disadvantaged, and between the ages of 16 to 21, 
and that priority for the provision of services be given to 
hard to serve disadvantaged youth, and describes certain 
criteria for the identification of such hard to serve youth.
    Subsection 203(e) amends title II of JTPA by redesignating 
section 264 as section 206, which describes essential program 
design elements of disadvantaged youth programs, and describes 
the allowable uses of funds for programs authorized under this 
title. Contains additional program requirements, including the 
requirement that all employment and job search activities for 
disadvantaged youth be supplemented with occupational and 
academic learning opportunities designed to increase the basic 
education and occupational skills of the participant.
    Subsection 203(f) establishes a new section 207, requiring 
that local workforce development boards award competitive 
grants to eligible providers to carry out disadvantaged youth 
programs described under section 206, from funds allocated to 
local workforce development areas under this title.
    Subsection 203(g) redesignates section 265 as section 208, 
which establishes educational linkages between disadvantaged 
youth programs carried out under this title, and programs 
established outside of this Act.
    Subsection 203(h), eliminates section 266 of JTPA which 
provides transfer authority between Parts B and C of JTPA, as 
this provision is no longer relevant.

  TITLE III--AMENDMENTS TO EMPLOYMENT AND TRAINING PROGRAMS FOR ADULTS

    Section 301 amends title III of JTPA by: renaming title III 
as ``Title III--Adult Employment and Training Opportunities 
Grants''; and establishing the following new sections under 
this title:
    Section 301 sets forth the purposes of this title.

       PART A--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

    Section 311 requires the Secretary of Labor to make grants 
to States (for adult employment and training and for dislocated 
workers) that meet the State plan and collaborative process 
requirements under sections 101 and 102, in amounts determined 
under section 312.
    Section 312 establishes provisions for the allotment of 
funds to States and outlying areas, and establishes the 
authority for 20 percent of funds for dislocated workers to be 
reserved by the Secretary of Labor under Part B for National 
Emergency Grants and for Skill Upgrading Grants in enterprise 
zones and empowerment communities. Also establishes the formula 
for the allotment of funds for adult employment and training 
and for dislocated workers.
    Section 313 establishes criteria for the distribution of 
adult employment and training and dislocated worker funds 
within States. This section includes authority to Governors to 
reserve a set percentage of funds from the State's adult 
employment and training and the dislocated worker allotments 
for specific required and discretionary activities. This 
section also requires that the remainder of such funds be 
allocated to local workforce development areas throughout the 
State, based upon a formula developed by the Governor, through 
the collaborative process, and specifies certain criteria which 
must be taken into account in development of such within-State 
formula.
    Section 314 describes the allowable uses of funds under 
title III, and establishes additional requirements in the 
provision of training services, including a requirement that 
training services be provided through the use of skill grants.

                       PART B--NATIONAL PROGRAMS

    Section 321 provides authority to the Secretary of Labor to 
award national emergency grants for employment and training 
assistance for dislocated workers, and for disaster relief 
employment assistance; and establishes criteria for carrying 
out such emergency assistance.
    Section 322 provides authority to the Secretary of Labor to 
award grants to provide skill upgrade training for workers in 
enterprise zones or empowerment communities.

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

    Section 401 amends section 401 by striking sections (a) 
through (l) and inserting the following sections:
    ``Section 401(a) includes a purpose with respect to Native 
American programs.
    ``Section 401(b) includes definitions for Native American 
programs.
    ``Section 401(c) specifies the programs authorized under 
this section and the entities authorized to carry out such 
programs.
    ``Section 401(d) specifies the activities authorized under 
this section.
    ``Section 401(e) requires entities administering programs 
under this section to submit a plan to the Secretary of Labor.
    ``Section 401(f) allows for consolidation of certain 
related programs in accordance with the provisions of the 
Indian Employment, Training and Related Services Demonstration 
Act of 1992 (25 U.S.C. 3401 et seq.).
    ``Section 401(g) specifies provisions with respect to 
nonduplicative and nonexclusive Services.
    ``Section 401(h) contains administrative provisions for 
programs under this section.''
    Section 402 of the JTPA by striking sections (a) through 
(e) and inserting the following:
    ``Section 402(a) requiring the Secretary of Labor to make 
grants to, or enter into contracts with, eligible entities to 
carry activities under this section.
    ``Section 402(b) specifies entities eligible to provide 
services under this section.
    ``Section 402(c) requires entities providing services under 
this section to submit a plan to the Secretary and includes the 
contents required under such plan.
    ``Section 402(d) specifies the activities authorized under 
this section.
    ``Section 402(e) includes provisions related to 
consultation with Governors and local boards.
    ``Section 402(f) authorizes the Secretary to issue 
regulations with respect to this part and specifies the 
components of such regulations.
    ``Section 402(g) includes definitions.''

                         Subtitle B--Job Corps

    Section 411 amends section 421 of JTPA, the purpose section 
of Job Corps.
    Section 412 amends section 423 of JTPA with respect to 
individuals eligible to participate under Job Corps.
    Section 413 amends section 424(a) of JTPA with respect to 
the screening and selection of applicants.
    Section 414 amends section 427 of JTPA with respect to the 
selection of Job Corps centers.
    Section 415 amends section 430(a) of JTPA with respect to 
standards of conduct.
    Section 416 amends section 432(b) of JTPA with respect to 
counseling and job placement.
    Section 417 amends section 433(c)(1) of JTPA with respect 
to experimental and developmental programs and coordination 
with other programs.

                    Subtitle C--National Activities

    Section 421 amends JTPA by striking sections 451 through 
454 and inserting the following sections.
    ``Section 451(a) authorizes the Secretary to establish and 
carry out research, demonstration, evaluation, and capacity 
building activities described in subsection (b) through (f).
    ``Section 451(b) authorizes certain activities with respect 
to national partnerships and special training.
    ``Section 451(c) authorizes the Secretary to conduct 
research with respect to employment and training.
    ``Section 451(d) authorizes the Secretary to carry out 
pilot and demonstration programs.
    ``Section 451(e) authorizes the Secretary to carry out 
evaluation activities with respect to programs under this Act.
    ``Section 451(f) authorizes the Secretary to provide 
certain technical assistance activities.
    ``Section 452 authorizes the Secretary to award certain 
incentive grants.''
    Section 422, repeals section 456 of JTPA with respect to 
nontraditional employment demonstration program.

                         Subtitle D--Repealers

    Section 451 repeals Parts F, G, H, I, and J of title IV of 
the JTPA.

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

    Section 501 repeals title V of the JTPA.
    Section 502 amends the Adult Education Act as follows:

       ``TITLE III--ADULT EDUCATION AND FAMILY LITERACY PROGRAMS

    ``Section 301 contains the short title of the Act, and 
renames the Adult Education Act the Adult Education and Family 
Literacy Act.
    ``Section 302 sets forth the purpose of this title.
    ``Section 303 includes definitions for the following terms 
for the purpose of this title: Adult Education; Adult Education 
and Literacy Activities; Community-Based Organization; Direct 
and Equitable Access; Eligible Agency; Eligible Provider; 
English Literacy Program; Family Literacy Services; Individual 
of Limited English Proficiency; Individual with a Disability; 
Literacy; Local Educational Agency; Outlying Area; 
Postsecondary Educational Institution; Secretary; and State.
    ``Section 304 (a) authorizes appropriations for the fiscal 
years 1998, 1999, 2000, 2001, 2002, and 2003.
    ``Section 304 (b) sets forth amounts to be reserved at the 
National level for National Leadership Activities, including 
funds for the National Institute for Literacy.

                 ``Part A--Grants To Eligible Agencies

    ``Section 311 (a) authorizes the Secretary to make grants 
consisting of the initial and additional allotments as 
determined under section 312, to eligible States that submit a 
plan in accordance with section 101.
    ``Section 311 (b) requires States receiving grants under 
section 311 (a) to expend the grant amount for adult education 
and literacy activities in accordance with the provisions of 
this part.
    ``Section 312 sets forth the initial and additional 
allotments to States, defines qualifying adults for purposes of 
allotting funds to states, addresses payments to the Marshall 
Islands, Micronesia and Palau and establishes criteria for the 
reallotment of funds.
    ``Section 313 sets forth the purposes for which States can 
receive funds under this title. Requires 85 percent of a 
state's allotment to be used to award grants to local providers 
for adult education and literacy services, but allows states to 
retain 5 percent for state administration and 10 percent for a 
variety of activities related to the purposes of this Act. 
Requires grants to be provided, on a competitive basis, to a 
variety of providers of adult education and literacy services, 
including a consortia of such providers. Sets forth the 
considerations a state must use in awarding grants to local 
providers. Caps local administrative funds at 5 percent.
    ``Section 314 outlines the purposes for which states can 
use funds received under this title, including state literacy 
resource centers, professional development programs, technical 
assistance to local providers and technology assistance. 
Requires local providers to use funds for adult education and 
literacy services, family literacy services, and English 
literacy programs. Requires states to identify to local 
providers any requirements which are imposed by the state.
    ``Section 315 sets forth the fiscal requirements and 
restrictions related to the use of funds under this Act, 
including supplement not supplant, maintenance of effort and 
state match requirements. States must meet these requirements 
in order to qualify to receive funds under this title.

                      ``Part B--National Programs

    ``Section 321 sets forth the purposes, establishment, and 
duties of the National Institute for Literacy. Outlines 
authorized activities. Establishes and outlines the terms and 
operating procedures for a National Institute for Literacy 
Advisory Board.
    ``Section 322 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 503 repeals the National Literacy Act of 1991.
    Section 504 repeals subsection (b) of section 402 of the 
Refugee Education Assistance Act of 1980 and makes other Act 
conforming amendments.

                   TITLE VI--MISCELLANEOUS PROVISIONS

    Section 601 (a) repeals section 601 of the JTPA concerning 
amendments to the Wagner-Peyser Act.
    Section 601 (b) repeals section 602 of the JTPA concerning 
amendments to part C of the title IV of the Social Security 
Act.
    Section 601 (c) repeals section 603 of the JTPA.
    Section 601 (d) the repeals made in subsections (a), (b), 
and (c) in no way affects other provisions of law affected by 
those provisions.
    Section 602 (a) redesignates section 604 of the Job 
Training and Partnership Act as section 182 of such Act.
    Section 602 (b) amends section 605 of the Job Training and 
Partnership Act.
    Section 602 (c) redesignates section 125 of the Job 
Training and Partnership Act as section 467 of such Act.

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

    Section 701 makes amendments to section 701 of the Job 
Training and Partnership Act.
    Section 702 transfers title VII of the JTPA, as amended by 
section 701, to the end of part A of title I of such Act, as 
amended by section 111 of this Act.
    Section 703 further amends title VII of the JTPA, as 
transferred to the end of part A of title I of such Act by 
section 702.

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

    Section 801 replaces ``JTPA'' with ``Employment, Training, 
and Literacy Enhancement Act'', and clarifies the definitions 
of the terms local workforce development area, local workforce 
development board, and full service employment and training 
delivery system.
    Section 802 amends section 3(a) of the Wagner-Peyser Act 
concerning the functions of the Secretary of Labor.
    Section 803 amends section 4 of the Wagner-Peyser Act 
concerning the designation of state agencies.
    Section 804 strikes paragraph (3) of section 5(c) of the 
Wagner-Peyser Act concerning appropriations.
    Section 805 amends section 7 of the Wagner-Peyser Act 
concerning the disposition of allotted funds.
    Section 806 requires States to submit to the Secretary a 
plan in accordance with the requirements of section 101 of this 
Act in order to be eligible to receive funds under this Act.
    Section 807 repeals section 11 of the Wagner-Peyser Act 
concerning the Federal Advisory Council.
    Section 808 amends section 12 of the Wagner-Peyser Act 
concerning regulations.
    Section 809 sets an effective date of July 1, 1998, for 
this title.

             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

                     Subtitle A--Amendments to JTPA

    Section 901 amends JTPA as follows:
    ``Section 1. Short Title; Table of Contents
    ``Section 1(a) sets forth the short title of the Act as the 
Employment, Training, and Literacy Enhancement Act.
    Section 1(b) sets forth the table of contents.
    Section 902 further amends the definitions in section 4 of 
such Act.
    Section 903 amends the headings in title I of JTPA.
    Section 904 amends part headings in title IV of JTPA.
    Section 905 strikes the heading for title VI of JTPA.

                  Subtitle B--Amendments to Other Acts

    Section 911 makes amendments to Section 3502 (d) of United 
States Code; the Food Stamp Act of 1977; the Immigration and 
Nationality Act; the Refugee Education Assistance Act of 1980; 
the National Defense Authorization Act for Fiscal Year 1993; 
the National Defense Authorization Act for Fiscal Year 1991; 
the National Defense Authorization Act for Fiscal Year 1994; 
the Small Business Act; the Employment Act of 1946; the Full 
Employment and Balanced Growth Act of 1978; Title 18, United 
States Code; the Trade Act of 1974; the Higher Education Act; 
the Individuals with Disabilities Education Act; the Department 
of Education Organization Act; the National Skill Standards Act 
of 1994; the Elementary and Secondary Education Act of 1965; 
the Freedom Support Act; the Emergency Jobs and Unemployment 
Assistance Act of 1974; the Rehabilitation Act; the Job 
Training Reform Amendments of 1992; the Veterans' Benefits and 
Programs Improvement Act of 1988; the Veterans' Job Training 
Act; the Worker Adjustment and Retraining Notification Act; the 
Veterans' Rehabilitation and Education Amendments of 1980; 
Title 38, United States Code; the United States Housing Act; 
the Housing Act of 1949; the Older Americans Act of 1965; the 
Omnibus Crime Control and Safe Streets Act of 1968; the 
Environmental Programs Assistance Act of 1984; the Domestic 
Volunteer Service Act of 1973; the Energy Conservation and 
Production Act; the National Energy Conservation Policy Act; 
the Community Economic Development Act of 1981; the National 
and Community Service Act of 1990; the Cranston-Gonzalez 
National Affordable Housing Act; and, the Violent Crime Control 
and Law Enforcement Act of 1994.

           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

    Section 1001 sets forth July 1, 1998, as the effective date 
of this division and its amendments.
    Section 1002 requires the appropriate Secretaries to 
provide for the orderly transition from any authority under or 
related to the provisions of law amended or repealed by this 
division.

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

              TITLE XXI--AMENDMENTS TO GENERAL PROVISIONS

    Section 2101 amends section 3 of the Rehabilitation Act by 
striking an expired provision in subsection (b), and by 
striking subsection (c).
    Section 2102 amends section 7 of the Rehabilitation Act by 
striking the definition of ``public safety officer,'' adding a 
definition of administrative costs, making technical changes to 
the definition of ``individual with a severe disability,'' and 
alphabetizing all of the definitions in section 7.
    Section 2103 amends section 13 of the Rehabilitation Act by 
requiring the Commissioner to collect information on 
administrative costs and other expenditures in the Title I 
Vocational Rehabilitation Services program.
    Section 2201 amends section 100(b) of the Rehabilitation 
Act by extending the authorization of the Title I program 
through 2000.
    Section 2202 amends section 101(a) of the Rehabilitation 
Act by permitting the earmarking of private local funds for 
particular geographic areas without a waiver of statewideness, 
making technical changes to the subsection, and striking the 
construction authority.
    Section 2203 amends section 103(a) of the Rehabilitation 
Act by striking obligations to direct individuals into certain 
careers.
    Section 2204 amends section 105 of the Rehabilitation Act 
by striking an expired provision.
    Section 2205 amends section 106(a) of the Rehabilitation 
Act by providing for the regular review of standards and 
indicators.
    Section 2206 amends section 107(a) of the Rehabilitation 
Act by requiring that monitoring and review reports of the 
Commissioner be made available to the State Rehabilitation 
Advisory Council.
    Section 2211 amends section 110(d)(2) of the Rehabilitation 
Act by extending current funding distribution requirements 
through 2000.
    Section 2212 amends section 111 of the Rehabilitation Act 
by extending current funding distribution requirements through 
2000.
    Section 2213 amends section 112(h) of the Rehabilitation 
Act by extending current funding distribution requirements 
through 2000.
    Section 2221 amends section 201 of the Rehabilitation Act 
by extending the authorization of the Title II program through 
2000.
    Section 2222 amends section 100(b) of the Rehabilitation 
Act by permitting the Secretary of Education to determine 
staffing levels and position responsibilities for the National 
Institute on Disability and Rehabilitation Research.
    Section 2231 amends section 302 of the Rehabilitation Act 
by making technical changes to the section, repealing the 
program authorized under subsection (e), and authorizing other 
programs through 2000.
    Section 2232 amends sections 303, 304, 305, and 306 of the 
Rehabilitation Act by repealing those programs.
    Section 2233 amends section 310 of the Rehabilitation Act 
by extending the authorization of that section through 2000, 
and making conforming amendments.
    Section 2241 amends section 311 of the Rehabilitation Act 
by striking the programs in subsections (b) and (e), and 
extending the authorization of the subparagraph (c) and (d) 
programs through 2000.
    Section 2242 amends section 312 of the Rehabilitation Act 
by extending the authorization of the program through 2000.
    Section 2243 amends sections 314 and 315 of the 
Rehabilitation Act by striking those sections.
    Section 2244 amends section 316 of the Rehabilitation Act 
by extending the authorization of the program through 2000, and 
making conforming amendments.
    Section 2251 amends section 405 of the Rehabilitation Act 
by extending the authorization in that section through 2000.
    Section 2261 amends section 501 of the Rehabilitation Act 
by making updating the name of the President's Committee on the 
Employment of People with Disabilities.
    Section 2262 amends section 502 of the Rehabilitation Act 
by making technical changes and updating the name of the 
Committee on Education and the Workforce.
    Section 2263 amends section 509 of the Rehabilitation Act 
by making technical changes, updating the name of the Committee 
on Education and the Workforce, and extending the authorization 
in that section through 2000.
    Section 2271 amends sections 622 and 638 of the 
Rehabilitation Act by extending the authorizations in those 
sections through 2000.
    Section 2272 amends Parts A and D of Title VI of the 
Rehabilitation Act by repealing them and making conforming 
changes.
    Section 2281 amends Title VII of the Rehabilitation Act by 
extending the authorizations in that title through 2000.
    Section 2282 amends Title VII of the Rehabilitation Act by 
striking a double comma and inserting a single comma.
    Section 2291 amends Title VIII of the Rehabilitation Act by 
extending the authorizations in that title through 2000.
    Section 2292 extends the Demonstration Projects to Increase 
Client Choice through fiscal year 2000.
    Section 2293 amends Title VIII of the Rehabilitation Act by 
repealing the programs in subsections (d) and (e), repealing 
the program in subsection (a) effective October 1, 1998, and 
making technical and conforming changes to subsection (f).
    Section 2295 amends the Helen Keller National Center Act by 
extending its the authorization through 2000.
    Section 2297 establishes an effective date for amendments 
made in Division B of the bill, except as otherwise noted in 
section 2293, as October 1, 1997.

                        Explanation of Amendment

    The Amendment in the Nature of a Substitute is explained in 
this report.

                  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.

                    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 form the Committee on Government Reform and 
Oversight on the subject of H.R. 1385.

                           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. 1385. 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.

                        Constitutional Authority

    The Job Training Partnership Act, The Adult Education Act, 
The Wagner-Peyser Act, the Rehabilitation Act, and the 
amendments made thereto by H.R. 1385, the Employment, Training, 
and Literacy Enhancement Act of 1997 are Constitutional under 
the spending clause of the constitution, Article I section 8, 
clause 1.

                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 Committee 
received a letter regarding unfunded mandates from the Director 
of the Congressional Budget Office and as such the Committee 
agrees that the bill does not contain any unfunded mandates. 
See infra.

     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. 1385 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 8, 1997.
Hon. William F. Goodling,
Chairman, Committee on Education and the Workforce, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1385, the 
Education, Training, and Literacy Enhancement Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Deborah 
Kalcevic, Justin Latus, and Christina Hawley Sadoti.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

H.R. 1385--Employment, Training, and Literacy Enhancement Act of 1997

                                Summary

    H.R. 1385 would restructure federal programs that provide 
grants to state and local governments for the provision of 
employment, training, literacy, and vocational rehabilitation 
services. The bill addresses these issues in two divisions. 
Division A of the bill would simplify the process by which 
states could apply for aid by requiring a single state plan for 
grants to fund employment service operations, literary 
programs, and job training for youth, adults, and dislocated 
workers. This portion of the bill also would eliminate the 
authorizations for a number of job training programs that 
currently receive no federal appropriation. Division B would 
extend the current authorizations for programs under the 
Vocational Rehabilitation Act (VRA) of 1973 and the Helen 
Keller National Center Act, but also would eliminate a number 
of the VRA programs that currently receive no federal 
appropriations. Because most of the programs under the VRA 
currently are classified as direct spending programs, pay-as-
you-go procedures would apply.
    Most of the authorizations provided in H.R. 1385 are for 
programs already authorized under current law and would have no 
net budgetary impact. The bill would, however, authorize 
appropriations for employment and training services for Native 
Americans, adult education programs, and vocational 
rehabilitation services above those provided under current law. 
Over the 1998-2002 period, these additional authorizations 
total $2.4 billion with adjustments for inflation and $2.3 
billion without these adjustments.
    H.R. 1385 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
(UMRA).

                Estimated cost to the federal government

    The estimated budgetary impact of H.R. 1385 is shown in the 
following table.

                        TABLE 1.--ESTIMATED COSTS TO THE FEDERAL GOVERNMENT OF H.R. 1385                        
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Spending under current law: \1\                                                                                 
    Budget authority/authorization level..................    4,865    4,622    4,749    4,876    5,008    5,144
    Estimated outlays.....................................    4,856    4,954    4,740    4,768    4,880    5,012
Authorizations adjusted for inflation proposed changes:                                                         
    Estimated authorization level.........................  .......      445      485      496      506      503
    Estimated outlays.....................................  .......       54      371      475      494      494
Spending under H.R. 1385 including discretionary                                                                
 inflation:                                                                                                     
    Estimated authorization level.........................    4,865    5,067    5,234    5,373    5,514    5,647
    Estimated outlays.....................................    4,856    5,009    5,110    5,243    5,374    5,505
Authorizations without adjustments for inflation proposed                                                       
 changes:                                                                                                       
    Estimated authorization level.........................  .......      445      475      475      473      460
    Estimated outlays.....................................  .......       54      369      465      474      463
Spending under H.R. 1385 without discretionary inflation:                                                       
    Estimated authorization level.........................    4,865    5,067    5,224    5,351    5,481    5,605
    Estimated outlays.....................................    4,856    5,009    5,108    5,233    5,354    5,475
----------------------------------------------------------------------------------------------------------------
\1\ The 1997 amount is the appropriation for that year.                                                         
                                                                                                                
Note.--Components may not sum to totals because of rounding.                                                    

    The costs of this legislation fall within budget function 
500 (education, training, employment, and social services).

                           basis of estimate

    H.R. 1385 would reorganize employment, training, literacy, 
and vocational rehabilitation programs. The bill has two 
divisions: Division A would authorize funding for employment 
and training programs for disadvantaged youth and adults, as 
well as adult education and literacy programs; Division B would 
authorize vocational rehabilitation programs.

Division A: Employment, training, and literacy programs

    Division A of H.R. 1385 restructures employment, training, 
and literacy programs for adults and youth, but is estimated to 
provide higher authorized amounts only for services for Native 
Americans and for adult education programs. The increase in 
authorization levels for these two types of programs over the 
next five years (assuming inflation adjustments) is $50 million 
and $2.3 billion, respectively.
    Division A would authorize grants to states to fund 
employment and training programs for youth and adults using the 
general framework of the Job Training Partnership Act (JTPA) 
and the Adult Education Act. H.R. 1385 would rename JTPA the 
``Employment, Training, and Literacy Enhancement Act'' (ETLEA), 
and would replace the Adult Education Act with the Adult 
Education and Family Literacy Act (AEFLA). The bill would 
authorize ``such sums as may be necessary'' for fiscal years 
1999-2003 for programs authorized under Titles II, III, IV, and 
for fiscal years 1998-2003 for programs authorized under Title 
V.
    Under Title II of H.R. 1385, Title II of JTPA would be 
amended by striking the separate authorizations for adult and 
summer youth employment programs, leaving only programs for 
disadvantaged youth. Summer youth employment, however, would 
become an allowable activity under Title II of the ETLEA. For 
purposes of this estimate, CBO assumed that authorizations of 
appropriations for this title would be the same as the combined 
spending for youth programs under current law. The amounts 
adjusted for inflation would be just over $1 billion in fiscal 
year 1999, and about $4.3 billion over the fiscal years 1999-
2002; without inflation adjustments, the 1999-2002 total would 
be $3.6 billion.
    Adult employment and training programs would be authorized 
under Title III of this bill, along with a separate funding 
stream for services targeted toward dislocated workers. Title 
III of JTPA currently authorizes employment and training 
programs for dislocated workers only. CBO estimates that 
spending for adult workers would be the same as under the 
current JTPA program for adult training (JTPA Title II-A), or 
$0.9 billion in fiscal year 1999, and $3.9 billion over the 
fiscal years 1999-2002. Likewise, CBO assumes that authorized 
spending on training programs for dislocated workers would 
continue to be the same as for the current law program--$1.4 
billion in fiscal year 1999, and nearly $5.6 billion over 
fiscal years 1999-2002, with adjustments for inflation. Without 
such adjustments, spending for these programs would be $1.3 
billion in 1999 and $5.1 billion over the 1999-2002 period.
    Title IV of H.R. 1385 would continue to follow the general 
framework of JTPA. It would authorize programs under the new 
ETLEA for services to Native Americans and migrants and 
seasonal farm workers in Part A, for the Job Corps (Part B), 
for veterans (Subtitle C), for national activities (Part D), 
and for labor market information (Part E). H.R. 1385 would 
authorize such sums as may be necessary for Parts B, C, D, and 
E, and not less than $70 million for each of the two programs 
authorized in Part A. CBO assumes that spending for these 
programs would be the same as under current law, with the 
exception of training programs for Native Americans, which 
would receive an increase of $15 million in fiscal year 1999, 
because this program currently is appropriated less than $70 
million. (See Table 2.) Total funding for this title under H.R. 
1385 is estimated at $1.4 billion for fiscal year 1999, and 
about $5.9 billion over fiscal years 1999-2002 assuming 
adjustments for inflation. Without inflation adjustments the 
spending during fiscal years 1999-2002 would total $5.4 
billion.

                        TABLE 2.--DIVISION A: EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS                       
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Spending under current law:                                                                                     
    Budget authority......................................    4,863    4,622    4,749    4,876    5,008    5,144
    Estimated outlays.....................................    4,854    4,954    4,740    4,768    4,880    5,012
Proposed changes including discretionary inflation:                                                             
    Title IV, federally administered programs:                                                                  
        Estimated authorization level.....................  .......  .......       15       13       12       10
        Estimated outlays.................................  .......  .......        2       14       13       11
    Title V, adult education programs:                                                                          
        Estimated authorization level.....................  .......      443      455      467      480      493
        Estimated outlays.................................  .......       53      356      445      466      479
    Proposed changes, total:                                                                                    
        Estimated authorization level.....................  .......      443      470      480      492      503
        Estimated outlays.................................  .......       53      358      459      479      490
Spending under H.R. 1385 including discretionary                                                                
 inflation:                                                                                                     
    Estimated authorization level.........................    4,863    5,065    5,219    5,357    5,499    5,647
    Estimated outlays.....................................    4,854    5,007    5,098    5,228    5,359    5,502
Proposed changes without discretionary inflation:                                                               
    Title IV, federally administered programs:                                                                  
        Estimated authorization level.....................  .......  .......       17       17       17       17
        Estimated outlays.................................  .......  .......        3       17       17       17
    Title V, adult education programs:                                                                          
        Estimated authorization level.....................  .......      443      443      443      443      443
        Estimated outlays.................................  .......       53      355      434      443      443
    Proposed changes, total:                                                                                    
        Estimated authorization level.....................  .......      443      460      460      460      460
        Estimated outlays.................................  .......       53      358      451      460      460
Spending under H.R. 1385 without discretionary inflation:                                                       
    Estimated authorization level.........................    4,863    4,065    5,210    5,337    5,468    5,605
    Estimated outlays.....................................    4,854    5,007    5,097    5,219    5,340    5,472
----------------------------------------------------------------------------------------------------------------
Note.--Components may not sum to totals because of rounding.                                                    

    Title IV also would repeal authorizations for some national 
programs, including the National Commission for Employment 
Policy, training to fulfill affirmative action obligations, 
Youth Fair Chance, microenterprise grants programs, and 
disaster relief employment assistance. These programs do not 
have a current appropriation, and no budgetary impact would 
result from their repeal.
    Title V of H.R. 1385 would rewrite the adult education 
program law. The current Adult Education Act would be replaced 
with the Adult Education and Family Literacy Act (AEFLA). The 
new act would have a broader purpose, which would be to provide 
adults the basic educational skills necessary for employment 
and self-sufficiency, and to give parents educational skills 
needed ``to be full partners in the educational development of 
their children.''
    Title V would authorize such sums as may be necessary to 
carry out the purposes of AEFLA for fiscal years 1998 through 
2003. Part A of AEFLA would give the Secretary of Education 
authority to give grants to states for adult education and 
literacy, family literacy, and English literacy purposes. This 
part contains a hold-harmless clause that would ensure that a 
state's funding does not fall far below previous levels, as 
well as maintenance of effort requirements that states continue 
funding at historical levels.
    Part B of AEFLA would rewrite current law governing 
activities of the National Institute for Literacy, but the 
institute would continue with essentially the same structure. 
The National Institute for Literacy is administered under an 
interagency agreement among the Departments of Labor, 
Education, and Health and Human Services, but is in a separate 
office. The duty of the institute is to provide leadership for 
the improvement and expansion of literacy programs.
    Because H.R. 1385 would authorize such sums as necessary to 
carry out the purposes of AEFLA but does not list a specific 
amount as a starting point, it is difficult to ascertain 
Congressional intent for authorizations for this program. A 
wide variety of activities would be authorized under this 
title. CBO used current funding for adult education programs as 
a starting point and assumed that this title would authorize 
spending that would be 25 percent higher. This funding level is 
consistent with the caps on the two set-asides in this title 
for national leadership activities.
    Programs under the Adult Education Act currently are 
authorized through 1997. CBO estimates that Title V would 
authorize appropriations of $443 million in 1998 and $2.3 
billion over the 1998 through 2002 period, assuming adjustments 
for inflation. Authorizations of appropriations would total 
$2.2 billion over the same period without adjustments for 
inflation.
    Title V would also repeal the National Literacy Act of 
1991. Authorizations of appropriations for this act have 
expired, so repealing it would have no budgetary impact.

Division B: Vocational rehabilitation programs

            Direct spending
    H.R. 1385 would extend the ``such sums'' authorizations for 
existing programs under the Vocational Rehabilitation Act 
(VRA). Most of these programs are funded in the Rehabilitation 
Services and Disability budget account. Under Budget 
Enforcement Act (BEA) rules, the programs included in this 
budget account currently are classified as direct spending.
    H.R. 1385 would make no substantive changes to any VRA 
program, and the CBO estimate shows no direct spending impacts 
as a result of the bill's enactment. However, since 1993, any 
bill that amends or extends any of these otherwise 
discretionary spending programs has been treated as negating 
the BEA categorization. The House Budget Committee staff has 
indicated that, upon enactment of H.R. 1385, spending for all 
VRA programs except the basic state grant program would be 
reclassified as ``spending subject to appropriation'' or 
discretionary spending. Subsequent baseline projections would 
include the reclassified programs in a discretionary spending 
budget account. This cost estimate, however, does not reflect 
such budget reclassifications. In fiscal year 1999, the first 
year the change would be effective, $305 million would be 
reclassified from direct spending to discretionary spending.
    Most of the grant programs under the VRA are authorized at 
``such sums as may be necessary'' through 1998 under the 
General Education Provisions Act (GEPA). GEPA provides an 
automatic one-year extension of authorization for all programs 
in the Department of Education. There are, however, two 
exceptions: the authorization for the basic state grant program 
expires at the end of 1999 (assuming the GEPA extension), and 
the improvement and evaluation grants are permanently 
authorized.

            TABLE 3.--DIVISION B: VOCATIONAL REHABILITATION ACT AND THE HELEN KELLER NATIONAL CENTER            
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
                                                                                                                
Spending under current law:                                                                                     
    Budget authority......................................        2  .......  .......  .......  .......  .......
    Estimated outlays.....................................        2        1  .......  .......  .......  .......
Proposed changes including discretionary inflation:                                                             
    The Vocational Rehabilitation Act:                                                                          
        Estimated authorization level.....................  .......        2        8        8        6  .......
        Estimated outlays.................................  .......        1        6        8        7        1
    Helen Keller National Center Act:                                                                           
        Estimated authorization level.....................  .......  .......        8        8        8  .......
        Estimated outlays.................................  .......  .......        6        8        8        2
    Proposed changes, total:                                                                                    
        Estimated authorization level.....................  .......        2       15       16       14  .......
        Estimated outlays.................................  .......        1       12       15       15        3
Spending under H.R. 1385 including discretionary                                                                
 inflation:                                                                                                     
        Estimated authorization levels....................        2        2       15       16       14  .......
        Estimated outlays.................................        2        2       12       15       15        3
Proposed changes without discretionary inflation:                                                               
    The Vocational Rehabilitation Act:                                                                          
        Estimated authorization level.....................  .......        2        7        7        5  .......
        Estimated outlays.................................  .......        1        6        7        6        1
    Helen Keller National Center Act:                                                                           
        Estimated authorization level.....................  .......  .......        7        7        7  .......
        Estimated outlays.................................  .......  .......        6        7        7        2
    Proposed changes, total:                                                                                    
        Estimated authorization level.....................  .......        2       14       14       13  .......
        Estimated outlays.................................  .......        1       12       14       13        3
Spending under H.R. 1385 without discretionary inflation:                                                       
        Estimated authorization levels....................        2        2       14       14       13  .......
        Estimated outlays.................................        2        2       12       14       13        3
----------------------------------------------------------------------------------------------------------------
Note.--Components may not sum to totals because of rounding.                                                    

    The authorization for the basic state grant program is 
extended through 2002 including the GEPA extension. The 
estimated authorization level for basic grants is the previous 
year's appropriation adjusted for inflation. The basic state 
grant program received a total of $2.18 billion in 1997.
    For the client assistance grants under Title I and all the 
grants under Titles II through VII for which the authorization 
expires at the end of 1998, H.R. 1385 extends those ``such 
sums'' authorizations through 2001, including the GEPA 
extension. In 1997, these grant programs received 
appropriations totaling $286 million.
            Spending subject to appropriations
    Vocational Rehabilitation Act.--Title VIII of the VRA was 
added to the Act in the vocational Rehabilitation Amendments of 
1992, and spending on the authorized activities were determined 
to be treated as discretionary rather than mandatory spending. 
Title VIII's ``such sums'' authorization for special 
demonstration projects expires at the end of fiscal year 1998, 
and H.R. 1385 extends these authorizations through 2001, 
including the GEPA extension. Although no Title VIII funds were 
appropriated in fiscal year 1997, the Secretary of Education 
used Title III direct spending funds for specific projects 
described in Title VIII. In 1997, about $5 million out of a 
total of $59 million for Title III demonstration projects were 
used for projects described in Title VIII. H.R. 1385 extends 
the authorization for appropriation only for those specific 
types of projects currently being funded out of Title III 
funds. the estimated authorization levels for Title VIII in 
this cost estimate reflect the levels currently funded in Title 
III both with and without adjustments for projected inflation. 
Estimated outlays reflect current program spending patterns.
    The ``such sums'' authorization for the National Council on 
Disability expires at the end of fiscal year 1997. This bill 
extends the ``such sums'' authorization of the council through 
2000. The council has been funded at about $2 million annually 
for the past several years, and this cost estimate reflects the 
1997 appropriation level with and without adjustments for 
projected inflation. Estimated outlays reflect current program 
spending patterns.
    The bill also would eliminate the authorization for 
appropriations for all unfunded VRA programs.
    Helen Keller National Center Act.--The current 
authorization for the Helen Keller National Center Act expires 
at the end of 1998. H.R. 1385 would extend the ``such sums'' 
authorization for the center through 2001, including the GEPA 
extension.
    The center is funded in the Rehabilitation Services and 
Disability Research budget account and, thus, currently is 
classified as direct spending. However, unlike the VRA grant 
programs, this program is not included in the current baseline 
spending projections after 1998 because the BEA stipulates that 
direct spending programs of less than $50 million shall not be 
included in the baseline forecast past their expiration dates. 
The center received funding of $7 million in 1997. The 
estimated authorization level for the center is the 1997 
funding level both with and without projected inflation. 
Estimated outlays reflect current program spending patterns.

                      pay-as-you-go considerations

    H.R. 1385 would not result in any change in direct spending 
or receipts in fiscal year 1998.

                        intergovernmental impact

    H.R. 1385 contains no intergovernmental mandates as defined 
in UMRA. The bill would restructure federal programs that 
provide grants to state and local governments for employment, 
training, literacy, and vocational rehabilitation services. 
Because participation in these programs is voluntary, the new 
conditions and requirements imposed on state and local 
governments would not be considered mandates under UMRA. In 
fiscal year 1997, state, local, and tribal governments will 
receive approximately $6.0 billion in grants from the programs 
reauthorized in the bill. CBO estimates that under H.R. 1385, 
such grants would total $6.3 billion in fiscal year 1998 and 
$33.2 billion over fiscal years 1998-2002.

                 estimated impact on the private sector

    The bill would impose no new private sector mandates as 
defined in UMRA.
    Estimate prepared by: Federal Cost: Deborah Kalcevic, 
Justin Latus, and Christina Hawley Sadoti; Impact on State, 
Local, and Tribal Governments: Marc Nicole; Impact on the 
Private Sector: Theresa Devine.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.
                             Rollcall Votes



         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 italics, existing law in which no change is proposed 
is shown in roman):

                      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.]

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Employment, 
Training, and Literacy Enhancement Act''.
  (b) Table of Contents.--The table of contents of this Act is 
as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Statement of purpose.
Sec. 3. Authorization of appropriations.
Sec. 4. Definitions.

           TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS

                 Part A--State Administrative Provisions

Sec. 101. State plan.
Sec. 102. Collaborative process.
Sec. 103. State Human Resource Investment Council.

                 Part B--Local Administrative Provisions

Sec. 121. Local workforce development areas.
Sec. 122. Local workforce development boards.
Sec. 123. Full service employment and training delivery system.
Sec. 124. Identification of training providers.

                  Part C--Program and Fiscal Provisions

                       Subpart 1--General Provisions

Sec. 141. General program requirements.
Sec. 142. Benefits.
Sec. 143. Labor standards.
Sec. 144. Grievance procedure.
Sec. 145. Prohibition against Federal control of education.
Sec. 146. Identification of additional imposed requirements.
Sec. 147. Authority of State legislature.
Sec. 148. Interstate agreements.

             Subpart 2--Performance Accountability Provisions

Sec. 151. Performance accountability system.
Sec. 152. Indicators of performance.
Sec. 153. State adjusted benchmarks.
Sec. 154. Core indicators of performance.
Sec. 155. Report on performance.
Sec. 156. Incentive grants and sanctions.

                        Subpart 3--Other Provisions

Sec. 161. Program year.
Sec. 162. Prompt allocation of funds.
Sec. 163. Monitoring.
Sec. 164. Fiscal controls; sanctions.
Sec. 165. Reports; recordkeeping; investigations.
Sec. 166. Administrative Adjudication.
Sec. 167. Nondiscrimination.
Sec. 168. Administrative provisions.
Sec. 169. Utilization of services and facilities.
Sec. 170. Obligational authority.
Sec. 171. Limitation on certain costs.

                    Part D--Miscellaneous Provisions

Sec. 181. Reference.
Sec. 182. Enforcement of Military Selective Service Act.

  TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                                 GRANTS

Sec. 201. Statement of purpose.
Sec. 202. Authorization.
Sec. 203. Allotment and allocation among States.
Sec. 204. Allocation within States.
Sec. 205. Eligibility for services.
Sec. 206. Use of funds.
Sec. 207. Selection of service providers.
Sec. 208. Linkages.

      TITLE III--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

Sec. 301. Purpose.

       Part A--Adult Employment and Training Opportunities Grants

Sec. 311. Authorization.
Sec. 312. Allotment among States.
Sec. 313. Allocation within States.
Sec. 314. Use of amounts.

                        Part B--National Programs

Sec. 321. National emergency grants.
Sec. 322. Skill upgrading projects in enterprise zones or empowerment 
          communities.

                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 program.

                            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. Authorization of programs.

                       Part D--National Activities

Sec. 451. Research, demonstration, evaluation, and capacity building.
Sec. 452. Incentive grants.
Sec. 453. Uniform reporting requirements.

                    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.
Sec. 466. State job bank systems.
Sec. 467. State labor market information programs.

SEC. 2. STATEMENT OF PURPOSE.

  The purpose of this Act is to transform the current array of 
Federal employment, training, and adult education and literacy 
programs from a collection of fragmented and duplicative 
categorical programs into high quality, coherent, and 
accountable State and local systems that are designed--
          (1) to provide high quality training for today and 
        for the 21st century;
          (2) to empower individuals to choose occupations and 
        training programs, based on accurate and up-to-date 
        information, that will develop more fully their 
        academic, occupational, and literacy skills, leading to 
        productive employment and economic self-sufficiency, 
        and reduction in welfare dependency;
          (3) to provide resources and authority to States and 
        local communities and increase ease of access to high 
        quality employment, training, and literacy programs;
          (4) to provide adults with the adult education 
        services they require to participate fully in society;
          (5) to meet the needs of employers in the United 
        States to be competitive; and
          (6) to ensure an adequate return on the investment of 
        funds in employment, training, and literacy programs 
        through strong program accountability.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated the 
following amounts for the following purposes (in addition to 
amounts otherwise available for such purposes):
          (1) Title ii.--Such sums as may be necessary for each 
        of the fiscal years 1999 through 2003 to carry out 
        title II.
          (2) Title iii.--(A) Such sums as may be necessary for 
        each of the fiscal years 1999 through 2003 to carry out 
        section 312(a)(1).
          (B) Such sums as may be necessary for each of the 
        fiscal years 1999 through 2003 to carry out section 
        312(a)(2).
          (3) Parts a, c, d, and e of title iv.--Subject to 
        subsection (b), such sums as may be necessary for each 
        of the fiscal years 1999 through 2003 to carry out 
        parts A, C, D, and E of title IV.
          (4) Part b of title iv.--Such sums as may be 
        necessary for each of the fiscal years 1999 through 
        2003 to carry out part B of title IV.
  (b) Reservations.--Of the amount appropriated under 
subsection (a)(3) for a fiscal year--
          (1) not less than $70,000,000 shall be reserved for 
        carrying out section 401;
          (2) not less than $70,000,000 shall be reserved for 
        carrying out section 402; and
          (3) the remainder shall be reserved for carrying out 
        parts C, D, and E of title IV.
  (c) Reallotment.--
          (1) In general.--The Secretary of Labor shall, in 
        accordance with this subsection, reallot to eligible 
        States amounts appropriated for programs authorized 
        under titles II and title III of this Act 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 title II or title III, 
        respectively, at the end of the program year prior to 
        the program year for which the determination under this 
        paragraph is made exceeds 15 percent of such allotment 
        for the prior program year.
          (3) Reallotment.--In making reallotments to eligible 
        States of amounts available pursuant to paragraph (2) 
        for a program year, the Secretary shall allot to each 
eligible State an amount based on the relative amount allotted to such 
State under title II or title III, respectively, for the prior program 
year as compared to the total amount allotted to all eligible States 
under title II or title III, respectively, for such prior program year.
          (4) Eligibility.--For purposes of this subsection, an 
        eligible State means a State which has obligated at 
        least 85 percent of its allotments under title II or 
        title III, 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 workforce development 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 workforce 
        development areas in the event that a State is required 
        to make funds available for reallotment under this 
        paragraph.

                              [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).]

SEC. 4. DEFINITIONS.

  As used in this Act, the following definitions apply:
          (1) Adult education and literacy activities.--The 
        term ``adult education and literacy activities'' means 
        the activities authorized under section 314 of the 
        Adult Education and Family Literacy Act.
          (2) Appropriate secretary.--The term ``appropriate 
        Secretary'' means--
                  (A) the Secretary of Labor, with respect to 
                programs authorized under titles II, III, and 
                IV of this Act; and
                  (B) the Secretary of Education, with respect 
                to programs authorized under the Adult 
                Education and Family Literacy Act.
          (3) [The term] Area of substantial unemployment.--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] under title II and 
        title III 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.]
          [(31) The term] (4) Basic skills deficient.--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] (5) 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 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.
          (6) 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.
          [(33) The term] (7) Citizenship skills.--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.
          (8) Community-based organization.--The term 
        ``community-based organization'' means a private 
        nonprofit organization that is representative of a 
        community or a significant segment of a community and 
        that has demonstrated the ability, or that can 
        demonstrate a capacity, to effectively administer a 
        program under this Act.
          (9) Dislocated worker.--The term ``dislocated 
        worker'' means an individual who--
                  (A)(i) has been terminated or laid off, or 
                who has received a notice of termination or 
                layoff, from employment;
                  (ii) is eligible for or has exhausted 
                entitlement to unemployment compensation; and
                  (iii) is unlikely to return to a previous 
                industry or occupation;
                  (B) has been terminated or laid off, or has 
                received a notice of termination or layoff, 
                from employment as a result of any permanent 
                closure of, or and substantial layoff at, a 
                plant, facility, or enterprise;
                  (C) was self-employed (including a farmer and 
                a rancher) but is unemployed as a result of 
                general economic conditions in the community in 
                which the individual resides or because of 
                natural disasters;
                  (D) is a displaced homemaker; or
                  (E) has become unemployed as a result of a 
                Federal action that limits the use of, or 
                restricts access to, a marine natural resource.
          [(29) The term] (10) Displaced homemaker.--The term 
        ``displaced homemaker'' means an individual who has 
        been providing unpaid services to family members in the 
        home and who--
                  (A) has been dependent 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; 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.
          [(7) The term] (11) Economic development agencies.--
        The term ``economic development agencies'' includes 
        local planning and zoning commissions or boards, 
        community development agencies, and other local 
        agencies and institutions responsible for regulating, 
        promoting, or assisting in local economic development.
          [(8) The term] (12) 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 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.
          (13) Employment, training and literacy programs.--The 
        term ``employment, training and literacy programs'' 
        means programs authorized under titles II and III of 
        this Act and the Adult Education and Family Literacy 
        Act.
          (14) English literacy program.--The term ``English 
        literacy program'' means a program of instruction 
        designed to help individuals of limited English 
        proficiency achieve full competence in the English 
        language.
          [(34) The term] (15) Family.--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.
          (16) Family literacy services.--The term ``family 
        literacy services'' means services that are of 
        sufficient intensity in terms of hours, and of 
        sufficient duration, to make sustainable changes in a 
        family and that integrate all of the following 
        activities:
                  (A) Interactive literacy activities between 
                parents and their children.
                  (B) Training for parents on how to be the 
                primary teacher for their children and full 
                partners in the education of their children.
                  (C) Parent literacy training that leads to 
                economic self-sufficiency.
                  (D) An age-appropriate education to prepare 
                children for success in school and life 
                experiences.
          (17) Full service eligible providers.--The term 
        ``full service eligible provider'' means a provider 
        designated under section 123(c).
          [(9) The term] (18) Governor.--The term ``Governor'' 
        means the chief executive of any State.
          (19) Human resource programs.--The term ``human 
        resource programs'' means programs identified under 
        section 103.
          (20) Individual of limited english proficiency.--The 
        term ``individual of limited English proficiency'' 
        means an individual--
                  (A) who has limited ability in speaking, 
                reading, or writing the English language; and
                  (B)(i) whose native language is a language 
                other than English; or
                  (ii) who lives in a family or community 
                environment where a language other that English 
                is the dominant language.
          [(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.]
          (21) Individual with a disability.--(A) The term 
        ``individual with a disability'' means an individual 
        with any disability (as defined in section 3 of the 
        Americans with Disabilities Act of 1990 (42 U.S.C. 
        12102)).
          (B) The term ``individuals with disabilities'' means 
        more than one individual with a disability.
          [(12) The term] (22) Institution of higher 
        education.--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] (23) 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.
          (24) Literacy.--The term ``literacy'' used with 
        respect to an individual, means the ability of the 
        individual to speak, read, and write English, and 
        compute and solve problems, at levels of proficiency 
        necessary--
                  (A) to function on the job, in the family of 
                the individual, and in society;
                  (B) to achieve the goals of the individual; 
                and
                  (C) to develop the knowledge potential of the 
                individual.
          (25) Local benchmarks.--The term ``local benchmarks'' 
        means the expected level of performance of a local 
        workforce development area established pursuant to 
        section 153(b).
          (26) Local board.--The term ``local board'' means a 
        local workforce development board established under 
        section 122.
          [(14) The term] (27) Local educational agency.--The 
        term ``local educational agency'' means such an agency 
        as defined in [section 521(22) of the Carl D. Perkins 
        Vocational Education Act] section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 8801).
          (28) Local workforce development area.--The term 
        ``local workforce development area'' means an area 
        designated under section 121(a).
          [(15) The term] (29) Low-income level.--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] (30) Lower living standard income 
        level.--The term ``lower living standard income level'' 
        means that income level (adjusted for regional, 
        metropolitan, urban, and rural differences and family 
        size) determined annually by the Secretary based on the 
        most recent ``lower living family budget'' issued by 
        the Secretary.
          [(30) The term] (31) 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.
          [(17) The term] (32) Offender.--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.
          (33) On-the-job training.--The term ``on-the-job 
        training'' means training by an employer that is 
        provided to a paid participant while engaged in 
        productive work in a job that--
                  (A) provides knowledge or skills essential to 
                the full and adequate performance of the job;
                  (B) provides reimbursement to employers of up 
                to 50 percent of the wage rate of the 
                participant, for the extraordinary costs of 
                providing the training and additional 
                supervision related to the training; and
                  (C) is limited in duration as appropriate to 
                the occupation for which the participant is 
                being trained, taking into account the content 
                of the training, the prior work experience of 
                the participant, and the service strategy of 
                the participant, as appropriate.
          (34) Outlying area.--The term ``outlying area'' means 
        the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, the 
        Republic of the Marshall Islands, the Federated States 
        of Micronesia, and the Republic of Palau.
          [(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] (35) Participant.--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 
        follow up services authorized under section 253(d)] 
        follow up services authorized under this Act) 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.
          [(18) The term] (36) Postsecondary institution.--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.] (as 
        such term is defined in section 481 of the Higher 
        Education Act of 1965 (20 U.S.C. 1088)) that continues 
        to meet the eligibility and certification requirements 
        under title IV of such Act (20 U.S.C. 1070 et seq.).
          [(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] (37) 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.
          [(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.]
          (38) Rapid response assistance.--The term ``rapid 
        response assistance'' means assistance provided by a 
        State, or by an entity designated by a State, with 
        funds provided by the State under section 313(a)(2) in 
        the case of a permanent closure or mass layoff at a 
        plant, facility, or enterprise, or a natural or other 
        disaster, that results in mass job dislocation, in 
        order to assist dislocated workers in obtaining 
        reemployment as soon as possible, with services 
        including--
                  (A) the establishment of onsite contact with 
                employers and employee representatives--
                          (i) immediately after the State is 
                        notified of a current or projected 
                        permanent closure or mass layoff; or
                          (ii) in the case of a disaster, 
                        immediately after the State is made 
                        aware of mass job dislocation as a 
                        result of such disaster;
                  (B) the provision of information and access 
                to available employment and training 
                activities;
                  (C) assistance in establishing voluntary 
                labor management committees with the ability to 
                devise and implement a strategy for assessing 
                the employment and training needs of dislocated 
                workers and obtaining services to meet those 
                needs;
                  (D) the provision of emergency assistance 
                adapted to the particular closure, layoff, or 
                disaster; and
                  (E) the provision of assistance to the local 
                community in developing a coordinated response 
                and in obtaining access to State economic 
                development assistance.
          (39) Representatives of employees.--For purposes of 
        section 122, the term ``representatives of employees'' 
        means--
                  (A) individuals who have been elected by 
                organizations, associations, or a network of 
                similar institutions to represent the economic 
                interests of employees at a significant segment 
                of workplaces located in, or adjacent to, the 
                local workforce development area; or
                  (B) individuals from organizations, 
                associations, or a network of similar 
                institutions, with expertise to represent, or 
                experience representing, the interests of 
                employees with respect to the job training 
                priorities in the local workforce development 
                area.
          [(38) The term] (40) School dropout.--The term 
        ``school dropout'' means an individual who is no longer 
        attending any school and who has not received a 
        secondary school diploma or a certificate from a 
        program of equivalency for such a diploma.
          (41) Secretaries.--The term ``Secretaries'' means the 
        Secretary of Labor and the Secretary of Education.
          (42) Skill grant.--The term ``skill grant'' means a 
        voucher or credit issued to a participant under section 
        314(c)(6)(A) for the purchase of training services from 
        eligible providers of such services.
          (43) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.
          (44) State adjusted benchmarks.--The term ``state 
        adjusted benchmarks'' means a state's expected levels 
        of performance established pursuant to 153(a).
          (45) State benchmark.--The term ``State benchmark'' 
        means the benchmarks established by the state pursuant 
        to section 152(a).
          [(23) The term] (46) State educational agency.--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.]
          (47) Statewide system.--The term ``statewide system'' 
        means a statewide employment and training and literacy 
        system that includes programs authorized under titles 
        II and III of this Act and the Adult Education and 
        Family Literacy Act.
          (48) Supportive services.--The term ``supportive 
        services'' means services such as transportation, child 
        care, dependent care, and needs-based payments, that 
        are necessary to enable an individual to participate in 
        programs authorized under title II and title III of 
        this Act, consistent with the provisions of such 
        titles.
          [(39) The term] (49) Termination.--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.
          [(25) The term] (50) Unemployed individuals.--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] (51) 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.
          [(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.]
          (52) Veteran.--The term ``veteran'' has the meaning 
        given such term in section 101(2) of title 38, United 
        States Code.
          [(28) The term] (53) Vocational education.--The term 
        ``vocational education'' has the meaning provided in 
        section 521(41) of the Carl D. Perkins Vocational 
        Education Act.
          [(40) The term] (54) Youth corps program.--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.

                         [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), records collected under the State 
                program funded under part A of title IV of the 
                Social Security Act, 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.

            [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).

               [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 work activities required under title 
IV of the Social Security Act and programs under title II in 
the planning and delivery of services.
  [(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.);
                          [(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;
                          [(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.

           [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.]

           TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS

                PART A--STATE ADMINISTRATIVE PROVISIONS

SEC. 101. STATE PLAN.

  (a) In General.--For a State to be eligible to receive an 
allotment under title II or III, the Adult Education and Family 
Literacy Act, or section 6 of the Wagner-Peyser Act (29 U.S.C. 
49e), the Governor of the State shall submit to Secretaries, 
for consideration by the appropriate Secretary, a single 
comprehensive State plan that provides a 3-year strategy and 
policy guidance with respect to the Statewide system, and 
programs authorized under the Wagner-Peyser Act (29 U.S.C. 49 
et seq.), operated in the State. Such plan shall meet the 
requirements of this section and section 102.
  (b) Contents.--The State plan shall include the following:
          (1) A description of the collaborative process 
        described in section 102, including a description of 
        the manner in which the individuals and entities 
        involved in such process collaborated in the 
        development of the plan and will continue to 
        collaborate in carrying out the functions described in 
        section 102(c).
          (2) Information describing--
                  (A) the needs of the State with regard to 
                current and projected demands for workers, by 
                occupation;
                  (B) the skills and economic development needs 
                of the State; and
                  (C) the type and availability of employment 
                and training services in the State.
          (3)(A) A description of the State long-term goals for 
        the Statewide system.
          (B) An identification of the benchmarks that the 
        State will use to measure its progress toward meeting 
        the goals described in subparagraph (A) based on the 
        core indicators of performance described in section 
        154.
          (C) A description of how the goals and benchmarks 
        will ensure continuous improvement of the Statewide 
        system and make such system relevant and responsive to 
        labor market, skill, and literacy needs at the State 
        and local levels.
          (4) An identification of local workforce development 
        areas in the State, including a description of the 
        process used for the designation of such areas.
          (5) An identification of criteria to be used by local 
        chief elected officials for the appointment of members 
        of local workforce development boards, consistent with 
        the provisions of section 122.
          (6)(A) A description of measures that will be taken 
        by the State to assure coordination and consistency and 
        avoid duplication among employment, training, and 
        literacy programs receiving assistance under this Act, 
        and, at a minimum, programs carried out under the 
        Wagner-Peyser Act (29 U.S.C. 49 et seq.), the 
        Rehabilitation Act of 1973 (20 U.S.C. 701 et seq.), 
        title I of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996, and programs 
        carried out by the Veterans' Employment and Training 
        Service with funds received under section 4103 of title 
        38, United States Code, including a description of 
        common data collection and reporting processes.
          (B) Information identifying how any funds that a 
        State receives through the allotments made under this 
        Act will be leveraged with other private and public 
        resources (including funds made available to the State 
        under the Wagner-Peyser Act (29 U.S.C. 49 et seq.)) and 
        other human resource programs to maximize the 
        effectiveness of such resources, and expand the 
        participation of business, industry, employees, and 
        individuals in the Statewide system.
          (7) A description of the process used by the State to 
        provide an opportunity for public comment, and input 
        into development of the plan, prior to submission of 
        the plan.
          (8) A description of the within-State allocation 
        formulas developed through the collaborative process 
        pursuant to sections 204(b)(2) and 313(b), through 
        which the State will distribute funds to local 
        workforce development areas, including--
                  (A) a description of how the individuals and 
                entities involved in the collaborative process, 
                including representatives of the State 
                legislature, determined the factors for such 
                formulas;
                  (B) a description of how such individuals and 
                entities consulted with chief elected officials 
                in local workforce development areas throughout 
                the State in determining such formulas; and
                  (C) assurances that such formulas will result 
                in funds being distributed equitably throughout 
                the State, that no one factor in such formulas 
                receive disproportionate weighting, and that 
                such formulas protect local workforce 
                development areas from significant shifts in 
                funding from year to year.
          (9) With respect to employment and training programs 
        for disadvantaged youth authorized under title II, 
        information describing the State's strategy for 
        providing comprehensive services to disadvantaged 
        youth, particularly those youth who are recognized as 
        having significant barriers to employment, and a 
        description of how the State intends to use its State 
        reserve funds (described in section 204(a)) to serve 
        areas in the State with high concentrations of 
        disadvantaged youth.
          (10) With respect to employment and training programs 
        for adults and dislocated workers authorized under 
        title III, information--
                  (A) describing the employment and training 
                activities that will be carried out with the 
                funds received by the State through the 
                allotments made under section 312, including a 
                description of how the State will provide rapid 
                response assistance to dislocated workers from 
                funds reserved under section 313(a)(2);
                  (B) describing the strategy of the State 
                (including the timeframe for such strategy) for 
                development of a fully operational statewide 
                full service employment and training delivery 
                system as described in section 123, including 
                the steps that the State will take over the 3 
                years covered by the plan, working with local 
                workforce development boards, to provide 
                information to individuals through the full 
                service employment and training delivery system 
                on the quality of employment, training, and 
                literacy services;
                  (C) describing the procedures the State will 
                use, working with local workforce development 
                boards, to identify eligible providers of 
                training services described in section 314(c), 
                as required under section 124; and
                  (D) describing how the State will serve the 
                employment and training needs of dislocated 
                workers (including displaced homemakers), 
                economically disadvantaged individuals 
                (including welfare recipients), individuals 
                training for nontraditional employment, and 
                other individuals with multiple barriers to 
                employment (including older workers and 
                individuals with disabilities).
          (11) With respect to adult education and literacy 
        activities authorized under part A of the Adult 
        Education and Family Literacy Act--
                  (A) a description of the adult education and 
                literacy activities that will be carried out 
                with any funds received such part;
                  (B) a description of the assessment that will 
                be made to determine the adult education and 
                family literacy needs of the State;
                  (C) a description of how such activities will 
                be integrated with other adult education, 
                career development, and employment and training 
                activities in the State or outlying area of the 
                eligible agency;
                  (D) a description of how the eligible agency 
                annually will evaluate the effectiveness of the 
                adult education and literacy activities that 
                are carried out with any funds received under 
                such part;
                  (E) an assurance that any funds received 
                under such part will not be expended for any 
                purpose other than the activities described in 
                sections 313 and 314 of the Adult Education and 
                Family Literacy Act;
                  (F) an assurance that the eligible agency 
                will expend any funds received under such part 
                only in a manner consistent with the fiscal 
                requirements in section 315 of such Act;
                  (G) an assurance that the eligible agency 
                will award grants under such part to providers 
                who offer flexible schedules and necessary 
                support services (such as child care and 
                transportation) to enable individuals, 
                including individuals with disabilities or 
                other special needs to participate in adult 
                education and literacy activities; and
                  (H) a description of the steps the State will 
                take to ensure direct and equitable access, as 
                stipulated in section 313(c)(2) of the Adult 
                Education and Family Literacy Act.
          (12) With respect to programs authorized under the 
        Wagner-Peyser Act (29 U.S.C. 49 et seq.), the plan 
        information required under section 8 of such Act.
  (c) Plan Submission.--A State plan submitted to the 
Secretaries under this section shall be approved by the 
appropriate Secretary unless such Secretary determines that 
such plan does not comply with the specific provisions of this 
Act.
  (d) Special Rules.--
          (1) Governor.--The Governor of a State shall have 
        final authority to determine the content of the portion 
        of the State plan described in paragraphs (1) through 
        (10) and paragraph (12) of subsection (b).
          (2) Eligible agency.--The eligible agency for adult 
        education and literacy in a State shall have final 
        authority to determine the content of the portion of 
        the State plan described in paragraph (11) of 
        subsection (b).
  (e) Modifications to Plan.--A State may submit modifications 
to a State plan in accordance with the requirements of this 
section and section 102 as necessary during the 3-year period 
covered by the plan.

SEC. 102. COLLABORATIVE PROCESS.

  (a) In General.--A State shall use a collaborative process in 
the development of the State plan described in section 101 and 
in carrying out the functions described under subsection (c). 
Such collaborative process shall be carried out by, at a 
minimum, the following individuals and entities:
          (1) the Governor;
          (2) representatives, appointed by the Governor, of--
                  (A) business and industry;
                  (B) local chief elected officials 
                (representing both cities and counties, where 
                appropriate);
                  (C) local educational agencies (including 
                adult education and literacy providers);
                  (D) postsecondary institutions (including 
                community and technical colleges);
                  (E) organizations representing individuals 
                served by programs authorized under this Act 
                (including community-based organizations);
                  (F) organizations serving individuals 
                participating in programs authorized under this 
                Act and the Adult Education and Family Literacy 
                Act;
                  (G) parents; and
                  (H) employees (which may include labor);
          (3) the lead State agency official or officials for--
                  (A) employment security;
                  (B) job training;
                  (C) the State educational agency;
                  (D) the eligible agency for vocational 
                education;
                  (E) the eligible agency for adult education 
                and literacy;
                  (F) the State agency responsible for 
                postsecondary education;
                  (G) the State agency responsible for welfare; 
                and
                  (H) the State agency responsible for 
                vocational rehabilitation, and where 
                applicable, the State agency providing 
                vocational rehabilitation program activities 
                for the blind;
          (4) such other State agency officials, including 
        officials responsible for economic development, as the 
        Governor may designate;
          (5) representatives of the State legislature; and
          (6) the representative of the Veterans' Employment 
        and Training Service assigned to the State under 
        section 4103 of title 38, United States Code.
  (b) Clarification.--For purposes of complying with subsection 
(a), a State may use any State collaborative process (including 
a council, board, State Human Resource Investment Council 
established under section 103, or a similar entity) that meets 
or is conformed to meet the requirements of such subsection.
  (c) Additional Functions of the Collaborative Process.--In 
addition to development of the State plan, the individuals and 
entities described in subsection (a) shall collaborate in--
          (1) the designation of local workforce areas as 
        required under section 121;
          (2) the development of allocation formulas for the 
        distribution of funds to local workforce development 
        areas for programs authorized under title II and title 
        III;
          (3) the development of the State goals and benchmarks 
        as required under part C of this title, including the 
        continued updating of such goals and benchmarks;
          (4) the provision of management guidance and review 
        for all programs in the State, including review of the 
        operation of programs conducted in each local workforce 
        development area, and the availability, responsiveness, 
        and adequacy of State services, and make 
        recommendations to the Governor, the State legislature, 
        appropriate chief elected officials, local workforce 
        development boards, and service providers throughout 
        the State regarding the findings of such review;
          (5) the continued development of linkages between 
        employment, training, literacy, and other human 
        resource and workforce preparation programs in the 
        State;
          (6) comment at least once annually on the measures 
        taken pursuant to section 113(b)(14) of the Carl D. 
        Perkins Vocational Education Act; and
          (7) review plans of all State agencies providing 
        employment, training, literacy, 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, training, literacy, 
        and related delivery systems in the State.

SEC. 103. STATE HUMAN RESOURCE INVESTMENT COUNCIL.

  (a) Establishment and Functions.--
          (1) In general.--Each State may, in accordance with 
        the requirements of this section, establish a single 
        State human resource investment council (in this 
        section referred to as the ``State Council'') that--
                  (A) reviews the provision of services and the 
                use of funds and resources under applicable 
                Federal human resource programs and advises 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;
                  (B) advises 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;
                  (C) carries out the duties and functions 
                prescribed for existing State councils 
                described under the laws relating to the 
                applicable Federal human resource programs;
                  (D) recommends to the Governor goals for the 
                development and coordination of the human 
                resource system in the State;
                  (E) prepares and recommends to the Governor a 
                strategy to be included as part of the State 
                plan under section 101 that would accomplish 
                the goals developed pursuant to paragraph (4);
                  (F) monitors the implementation of and 
                evaluate the effectiveness of the strategic 
                plan prepared pursuant to paragraph (6); and
                  (G) may serve as the collaborative process 
                described in section 102.
          (2) Applicable federal human resource program 
        defined.--
                  (A) In general.--For purposes of this 
                section, the term ``applicable Federal human 
                resource program'' includes any program 
                authorized under the provisions of law 
                describedunder 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) Programs.--In accordance with the 
                requirements of subparagraph (A), applicable 
                Federal human resource programs 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) the employment program 
                        established under section 6(d)(4) of 
                        the Food Stamp Act of 1977 (7 U.S.C. 
                        2015(d)(4)) and title I of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996; and
                          (vii) the Rehabilitation Act of 1973 
                        (29 U.S.C. 701 et seq.).
  (b) Composition.--Each State Council shall be composed of the 
individuals and entities described in section 102(a).
  (c) Administration.--
          (1) Funding.--In order to carry out the functions of 
        the State Council, each State establishing a State 
        Council that meets the requirements of this section 
        may--
                  (A) use funds otherwise available for State 
                councils under the applicable Federal human 
                resource programs;
                  (B) use funds otherwise available for State 
                administrative expenses under the applicable 
                Federal human resource programs, consistent 
                with the laws and regulations governing such 
                programs; and
                  (C) use funds, services, personnel, 
                facilities and information provided by State 
                and local public agencies, with the consent of 
                such agencies.
          (2) Personnel.--Each State Council may obtain the 
        services of such professional, technical, and clerical 
        personnel as may be necessary to carry out its 
        functions.
          (3) Equitable funding.--Each State agency 
        participating in a State Council under this section is 
        encouraged to provide funds to support such Council in 
        a manner consistent with its representation on such 
        Council.

                PART B--LOCAL ADMINISTRATIVE PROVISIONS

SEC. 121. LOCAL WORKFORCE DEVELOPMENT AREAS.

  (a) In General.--Except as provided in subsection (b), a 
State that desires to receive a grant under title II or title 
III shall, through the collaborative process established under 
section 102 and after consultation with local chief elected 
officials, and after consideration of comments received through 
the public comment process as described in section 101(b)(7) of 
the State plan, designate local workforce development areas 
within the State that are consistent with labor market areas, 
or a substantial portion of a labor market area, and that take 
into consideration the following:
          (1) Units of general local government.
          (2) Geographic areas served by local educational 
        agencies and intermediate educational agencies.
          (3) Geographic areas served by postsecondary 
        institutions and area vocational education schools.
          (4) Service delivery areas established under section 
        101 of this Act (as such section was in effect on the 
        day before the date of the enactment of the Employment, 
        Training, and Literacy Enhancement Act of 1997).
          (5) The distance that individuals will need to travel 
        to receive services.
  (b) Small States.--Any State determined to be eligible to 
receive a minimum allotment under section 203(b)(2)(D) or 
paragraph (1)(B)(iv) or paragraph (2)(B)(iv) of section 312(b) 
may designate itself, through the collaborative process 
established pursuant to section 102, and after consultation 
with local chief elected officials, and consideration of 
comments received through the public comment process described 
in section 101(b)(7) of the State plan, as a single State 
workforce development area for purposes of this Act.

SEC. 122. LOCAL WORKFORCE DEVELOPMENT BOARDS.

  (a) Establishment.--There shall be established in each local 
workforce development area of a State, and certified by the 
Governor of the State, a local workforce development board 
(hereinafter referred to as the ``local board''), reflecting 
business and community interests in employment, training, and 
other workforce preparation activities.
  (b) Membership.--
          (1) State criteria.--The Governor of the State, 
        through the collaborative process described in section 
        102, shall establish criteria for use by local chief 
        elected officials in the local workforce development 
        areas for appointment of members of the local boards in 
        such local areas in accordance with the requirements of 
        paragraph (2).
          (2) Composition.--Such criteria shall require at a 
        minimum, that the membership of each local board 
        consist of--
                  (A) a majority of members who are 
                representatives of business and industry in the 
                local workforce development area, 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, 
                appointed from among individuals nominated by 
                local business organizations and trade 
                associations;
                  (B) representatives of local educational 
                entities, including representatives of local 
                educational agencies, local school boards, 
                postsecondary educational institutions 
                (including representatives of community 
                colleges), and representatives of providers of 
                adult education and literacy services, where 
                such schools, institutions, educators, or 
                providers, as appropriate, exist, selected from 
                among individuals nominated by regional or 
                local educational agencies, institutions, or 
                organizations representing such individuals or 
                entities;
                  (C) representatives of community-based 
                organizations (including, as appropriate, a 
                community-based organization that provides 
                direct job training and placement services to 
                individuals with disabilities), employees 
                (which may include labor), and other 
                representatives of the public who may include 
                program participants, parents, individuals with 
                disabilities, older workers, veterans, or 
                organizations serving such individuals, as 
                nominated to the board by regional or local 
                agencies, institutions, or organizations 
                representing such individuals or entities; and
                  (D) representatives of local welfare and 
                economic development agencies.
          (3) Chairperson.--The local board shall elect a 
        chairperson from among the members of the board.
  (c) Appointment and Certification of Board.--
          (1) Appointment of board members and assignment of 
        responsibilities.--
                  (A) In general.--The chief elected official 
                in a local workforce development area is 
                authorized to appoint the members of the local 
                board for such area, in accordance with the 
                State criteria established under subsection 
                (b).
                  (B) Multiple units of local government in 
                area.--
                          (i) In general.--In a case in which a 
                        local workforce development area 
                        includes more than 1 unit of general 
                        local government, the chief elected 
                        officials of such units may execute an 
                        agreement that specifies the respective 
                        roles of the individual chief elected 
                        officials--
                                  (I) in the appointment of the 
                                members of the local board from 
                                the individuals nominated or 
                                recommended to be such members 
                                in accordance with the criteria 
                                established under subsection 
                                (b); and
                                  (II) in carrying out any 
                                other responsibilities assigned 
                                to such officials.
                          (ii) Lack of agreement.--If, after a 
                        reasonable effort, the chief elected 
                        officials are unable to reach agreement 
                        as provided under clause (i), the 
                        Governor may appoint the members of the 
                        local board from individuals so 
                        nominated or recommended.
          (2) Certification.--
                  (A) In general.--The Governor is authorized 
                to biennially certify 1 local board for each 
                local workforce development area in the State.
                  (B) Criteria.--Such certification shall be 
                based on factors including the criteria 
                established under subsection (b) and, for a 
                second or subsequent certification, the extent 
                to which the local board has ensured that 
                employment and training activities and 
                disadvantaged youth activities carried out in 
                the local workforce development area have met 
                expected levels of performance with respect to 
                the local benchmarks negotiated pursuant to 
                subsection (d)(6)(A).
                  (C) Failure to achieve certification.--
                Failure of a local board to achieve 
                certification shall result in reappointment and 
                certification of another local board for the 
                local workforce development area pursuant to 
                the process described in paragraph (1) and this 
                paragraph.
          (3) Decertification.--
                  (A) Fiscal noncompliance.--Notwithstanding 
                paragraph (2), the Governor may decertify a 
                local board if it is determined as a result of 
                financial and compliance audits that there is a 
                substantial violation of a specific requirement 
                under this Act and corrective action has not 
                been taken, in accordance with section 164. If 
                the Governor decertifies a local board for a 
                local workforce development area under this 
                subparagraph, the Governor may require that a 
                new local board be appointed and certified for 
                the local workforce development area pursuant 
                to a reorganization plan developed by the 
                Governor under section 164(b)(1) and in 
                accordance with the criteria established under 
                subsection (b).
                  (B) Nonperformance.--Notwithstanding 
                paragraph (2), the Governor may decertify a 
                local board if a local workforce development 
                area fails to meet the local benchmarks 
                established pursuant to section 153(b) for such 
                local area for two consecutive program years 
                (in accordance with section 156(b)(2)). If the 
                Governor decertifies a local board for a local 
                workforce development area under this 
                subparagraph, the Governor may require that a 
                new local board be appointed and certified for 
                the local area pursuant to a reorganization 
                plan developed by the Governor under section 
                156(b)(2) and in accordance with the criteria 
                established under subsection (b).
          (4) Single state area.--Notwithstanding subsection 
        (b) and paragraphs (1) and (2), if a State described in 
        section 121(b) indicates in the State plan that the 
        State will be treated as a local workforce development 
        area for purposes of the application of this Act, the 
        Governor may designate the individuals and entities 
        involved in the collaborative process described in 
        section 105 to carry out the functions described in 
        subsection (d).
  (d) Functions of Local Board.--The functions of the local 
board shall include the following:
          (1) Local plan.--
                  (A) In general.--Each local board shall 
                develop and submit to the Governor a 
                comprehensive 3-year strategic local plan. The 
                local plan shall be consistent with the State 
                goals and State plan described in section 101.
                  (B) Contents.--The local plan shall include--
                          (i) an identification of the 
                        workforce development needs of local 
                        industries, job seekers, and workers;
                          (ii) a description of the 
                        disadvantaged youth activities and the 
                        employment and training activities for 
                        adults and dislocated workers to be 
                        carried out in the local workforce 
                        development area as required under 
                        titles II and III, that, with 
                        activities authorized under the Wagner-
                        Peyser Act (29 U.S.C. 49 et seq.), will 
                        contribute to the coherent delivery of 
                        employment, training and workforce 
                        preparation activities in the local 
                        area;
                          (iii) a description of the local 
                        benchmarks negotiated with the Governor 
                        pursuant to paragraph (6)(A), to be 
                        used by the local board for measuring 
                        the performance of the local 
                        administrative entity (where 
                        appropriate), eligible providers of 
                        services authorized under titles II and 
                        III, and the performance of the full 
                        service employment and training 
                        delivery system in the local workforce 
                        development area;
                          (iv) a description of the local full 
                        service employment and training 
                        delivery system to be established or 
                        designated in the local workforce 
                        development area, including--
                                  (I) a description of the 
                                process negotiated with the 
                                Governor pursuant to paragraph 
                                (6)(B) that the local board 
                                will use to designate or 
                                certify full service eligible 
                                providers in the local 
                                workforce development area, 
                                which ensures that the most 
                                effective and efficient 
                                providers will be chosen;
                                  (II) a description of how the 
                                local board will ensure the 
                                continuous improvement of such 
                                full service eligible providers 
                                and that such providers will 
                                continue to meet the labor 
                                market needs of local employers 
                                and participants; and
                                  (III) an identification of 
                                the roles of individual 
                                employment, training, and other 
                                human resources programs, as 
                                determined appropriate, 
                                including programs authorized 
                                by the Wagner-Peyser Act (20 
                                U.S.C. 49 et seq.), in carrying 
                                out the functions of the full 
                                service employment and training 
                                delivery system, including a 
                                description of the funding 
                                sources to be used in the 
                                operation of the full service 
                                employment and training system;
                          (v) an identification of the 
                        administrative entity designated by the 
                        local board in accordance with 
                        paragraph (5);
                          (vi) a description of the steps the 
                        local board will take to work with 
                        local educational agencies, 
                        postsecondary educational institutions 
                        (including community colleges, where 
                        applicable), vocational educators, 
                        providers of adult education and 
                        literacy services, and other 
                        representatives of the educational 
                        community to address local employment, 
                        education, and training needs, 
                        including a description of linkages 
                        established with such individuals and 
                        entities to enhance the provision of 
                        services, including supportive 
                        services, and avoid duplication;
                          (vii) a description of the process 
                        that will be used by the local board to 
                        fully involve representatives of the 
                        local community, including community-
                        based organizations with experience in 
                        serving disadvantaged youth, the local 
                        education community (including 
                        vocational educators and teachers), 
                        parents, youth, local law enforcement 
                        agencies, and representatives of 
                        business and employees (which may 
                        include labor) in the development and 
                        implementation of disadvantaged youth 
                        programs in the local workforce 
                        development area, including a 
                        description of the process used 
                        (involving the individuals and 
                        organizations described in this clause) 
                        to ensure that the most effective and 
                        efficient providers are chosen to carry 
                        out the activities authorized under 
                        title II; and
                          (viii) such other information as the 
                        Governor may require.
                  (C) Consultation.--The local board shall--
                          (i) consult with the chief elected 
                        official in the appropriate local 
                        workforce development area in the 
                        development of the local plan; and
                          (ii) provide the chief elected 
                        official with a copy of the local plan.
                  (D) Approval.--
                          (i) In general.--The chief elected 
                        official shall--
                                  (I) approve the local plan; 
                                or
                                  (II) reject the local plan 
                                and make recommendations to the 
                                local board on how to improve 
                                the local plan.
                          (ii) Submission.--If, after a 
                        reasonable effort, the local board is 
                        unable to obtain the approval of the 
                        chief elected official for the local 
                        plan, the local board may submit the 
                        plan to the Governor for approval under 
                        subparagraph (A), and shall submit the 
                        recommendations of the chief elected 
                        official to the Governor along with the 
                        plan, consistent with subsection 
                        (e)(2).
          (2) Selection of providers.--
                  (A) Selection of full service providers.--
                Consistent with section 123 and the agreement 
                negotiated with the Governor under paragraph 
                (6)(B)(i), the local board is authorized to 
                designate or certify full service eligible 
                providers, and to terminate for cause, the 
                eligibility of such providers.
                  (B) Selection of disadvantaged youth 
                providers.--Consistent with section 207, the 
                local board is authorized to award grants on a 
                competitive basis to eligible providers of 
                disadvantaged youth activities in the local 
                workforce development area.
          (3) Identification of eligible providers of training 
        services.--Consistent with section 124, the local board 
        is authorized to work in partnership with the Governor 
        concerning the identification of eligible providers of 
        training services described in section 314(c) in the 
        local workforce development area.
          (4) Budget and program oversight.--
                  (A) Budgeting.--
                          (i) In general.--The local workforce 
                        development board shall develop a 
                        budget for the purpose of carrying out 
                        local programs established under titles 
                        II and III and section 123.
                          (ii) Approval of budget.--Such budget 
                        shall be subject to the approval of the 
                        chief elected official or officials in 
                        the local workforce development area.
                  (B) Program oversight.--The local workforce 
                development board, in partnership with the 
                chief elected official or officials in the 
                local workforce development area, shall conduct 
                oversight of the programs established under 
                titles II and III and section 123.
          (5) Administration.--
                  (A) Designation of administrative entity.--
                          (i) In general.--The local workforce 
                        development board may designate itself 
                        as the administrative entity for 
                        receipt and disbursement of funds made 
                        available for carrying out programs 
                        authorized under title II and title III 
                        of this Act, or the local board may 
                        designate an administrative entity 
                        (which may be the State through a 
                        mutual agreement between the local 
                        board and the State), for the purpose 
                        of receipt and disbursement of such 
                        funds.
                          (ii) Additional fiscal 
                        responsibilities.--Each administrative 
                        entity shall be responsible for the 
                        distribution of funds and shall have 
                        responsibility to take action against 
                        its subcontractors, subgrantees, and 
                        other recipients to eliminate abuses in 
                        the programs being carried out in the 
                        local workforce development area and to 
                        prevent any misuse of funds by 
                        subcontractors, subgrantees, and other 
                        recipients.
                  (B) Staff; grants and other contributions.--
                The local 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.
                  (C) Prohibition on direct provision of 
                services.--
                          (i) In general.--Except as provided 
                        in clause (ii), a local board or 
                        employees of such board may not 
                        directly provide services under 
                        programs established under this Act.
                          (ii) Waiver.--The Governor of the 
                        State in which the local board is 
                        located may grant to the local board a 
                        written waiver of the prohibition under 
                        clause (i) where necessary to improve 
                        performance or to provide a full array 
                        of services in the local area as may be 
                        particularly necessary in rural areas.
                  (D) Conflict of interest.--A member of a 
                local board may not--
                          (i) vote on a matter under 
                        consideration by the local board--
                                  (I) regarding the provision 
                                of services by such member (or 
                                by an organization that such 
                                member represents); or
                                  (II) that would provide 
                                direct financial benefit to 
                                such member or the immediate 
                                family of such member; or
                          (ii) engage in any other activity 
                        determined by the Governor to 
                        constitute a conflict of interest.
          (6) Negotiations.--
                  (A) Local benchmarks.--The local board, the 
                local chief elected official, and the Governor 
                shall negotiate and reach agreement on local 
                benchmarks designed to meet the State goals 
                described in the State plan under section 101 
                for the local workforce development area. In 
                determining such benchmarks, the Governor, the 
                local chief elected official, and the local 
                board shall take into account the State 
                adjusted benchmarks described in section 153(a) 
                with respect to programs authorized under 
                titles II and III, and specific economic, 
                demographic, and other characteristics of the 
                populations to be served in the local workforce 
                development area.
                  (B) Local delivery of services.--
                          (i) In general.--The local board, the 
                        local chief elected official, and the 
                        Governor shall negotiate and reach 
                        agreement on a process to be used by 
                        the local board that meets the 
                        requirements of subclauses (I) and (II) 
                        of paragraph (1)(B)(iv) for--
                                  (I) the designation or 
                                certification of full service 
                                eligible providers (as 
                                described in section 123(c)) in 
                                the local workforce development 
                                area, including, consistent 
                                with State statute, a 
                                determination of the role of 
                                providers of activities 
                                authorized under the Wagner-
                                Peyser Act (29 U.S.C. 49 et 
                                seq.) in the full service 
                                delivery of services in the 
                                local workforce development 
                                area; and
                                  (II) the continued role of 
                                the local board and the local 
                                elected official in conducting 
                                oversight with respect to full 
                                service eligible providers that 
                                are providers of activities 
                                authorized under the Wagner-
                                Peyser Act (29 U.S.C. 49 et 
                                seq.).
                          (ii) Established full service 
                        employment and training delivery 
                        system.--Notwithstanding this 
                        subsection and section 123(c), if a 
                        full service employment and training 
                        delivery system has been established in 
                        a local workforce development area 
                        prior to the date of enactment of this 
                        Act, or if approval has been obtained 
                        for a plan for a full service 
                        employment and training delivery system 
                        under the Wagner-Peyser Act (29 U.S.C. 
                        49 et seq.) prior to the date of 
                        enactment of this Act, the local board 
                        and the Governor involved may agree to 
                        certify such full service employment 
                        and training delivery system for 
                        purposes of this subparagraph.
  (e) Sunshine Provision.--
          (1) In general.--The local board shall make available 
        to the public, on a regular basis, information 
        regarding the activities of the local board, including 
        information regarding membership, the designation and 
        certification of full service employment and training 
        center eligible providers, and the award of grants to 
        eligible providers of disadvantaged youth activities.
          (2) Local plan.--Prior to the submission of the local 
        plan to the Governor, under subsection (d)(1)(D)(ii), 
        the local board shall make such plan available for 
        review and comment to--
                  (A) appropriate community-based organizations 
                and local educational and other public agencies 
                in the local workforce development area;
                  (B) local business organizations and 
                representatives of employees in the local 
                workforce development area; and
                  (C) the general public through such means as 
                public hearings and local news media.

SEC. 123. FULL SERVICE EMPLOYMENT AND TRAINING DELIVERY SYSTEM.

  (a) In General.--There shall be established in a State that 
receives an allotment under section 312, a full service 
employment and training delivery system that--
          (1) shall provide the core services described in 
        subsection (d), including the information described in 
        part E of title IV and labor exchange services 
        authorized under the Wagner-Peyser Act (29 U.S.C. 49 et 
        seq.);
          (2) shall provide access to the activities carried 
        out under subsection (e), if any; and
          (3) shall provide access to intensive and training 
        services described in section 314, including serving as 
        the point of distribution of skill grants for training 
        services to participants in accordance with section 
        314(c)(6)(A).
  (b) Access to Delivery of Services.--
          (1) In general.--The State's full service employment 
        and training delivery system shall provide individuals 
        and employers with access to the services described in 
        subsection (a) through a network of eligible providers 
        that assures participants that such services will be 
        available, regardless of where the participants 
        initially enter the system. At a minimum, such services 
        shall be available--
                  (A) through a network of full service 
                employment and training delivery centers, 
                established in all local workforce development 
                areas in the State, that provide all of the 
                services described in subsection (a); or
                  (B) at not less than one full service 
                employment and training delivery center in each 
                local workforce development area in the State 
                that provides all of the services described in 
                subsection (a), supplemented with multiple 
                affiliated sites that provide one or more of 
                such services and are linked through electronic 
                and technological access points.
          (2) Specialized centers.--Of the full service 
        employment and training delivery centers or affiliated 
        sites described in paragraph (1), such centers or sites 
        may have a specialization in addressing special needs, 
        such as the needs of dislocated workers.
  (c) Eligibility for Designation.--Any entity or consortium of 
entities located in a local workforce development area may be 
designated or certified by the local workforce development 
board (in accordance with section 122(d)(2)(A)) through a 
competitive process, or through an agreement reached between 
the local board and a consortium of entities, to operate a full 
service employment and training delivery center or to 
participate as an affiliated site in the full service 
employment and training delivery system. Such entities shall be 
known as ``full service eligible providers'' and may include--
          (1) institutions of higher education;
          (2) local employment service offices established 
        under the Wagner-Peyser Act (29 U.S.C. 49 et seq.);
          (3) private, nonprofit organizations (including 
        community-based organizations);
          (4) private for-profit entities;
          (5) agencies of local government; and
          (6) other interested organizations and entities of 
        demonstrated effectiveness, including local chambers of 
        commerce and other business organizations, consistent 
        with State criteria as described in the State plan 
        under section 101.
  (d) Core Services.--Funds made available to local workforce 
development areas under section 313(b), in addition to funds 
made available under the Wagner-Peyser Act, part E of title IV, 
and other related programs, shall be used to provide core 
services, which shall be available to all individuals through 
the full service employment and training delivery system and 
shall, at a minimum, include--
          (1) outreach, intake (which may include worker 
        profiling), and orientation to the information and 
        other services available through the full service 
        employment and training delivery system;
          (2) initial assessment of skill levels, aptitudes, 
        abilities, and supportive service needs;
          (3) job search and placement assistance, and where 
        appropriate, career counseling;
          (4) provision of accurate information relating to 
        local, regional, and national labor markets, 
        including--
                  (A) job vacancy listings in such markets; and
                  (B) information relating to local occupations 
                in demand and the earnings and skill 
                requirements for such occupations;
          (5) provision of accurate information relating to the 
        quality and availability of employment, training, and 
        literacy activities authorized under titles II and III 
        of this Act and the Adult Education and Family Literacy 
        Act, and of vocational rehabilitation program 
        activities as appropriate, and referral to such 
        activities;
          (6) provision of information relating to unemployment 
        compensation, publicly funded employment and training 
        programs (including registered apprenticeships), and 
        forms of public financial assistance, such as student 
        aid programs, that may be available in order to enable 
        individuals to participate in employment, training, 
        literacy, and other workforce preparation activities;
          (7) soliciting and accepting job orders submitted by 
        employers in the local workforce development area, and 
        screening and referring applicants in accordance with 
        such orders;
          (8) dissemination of lists of eligible training 
        providers and performance information regarding such 
        providers in accordance with section 124; and
          (9) any additional performance information with 
        respect to the full service employment and training 
        delivery system in the local workforce development 
        area.
  (e) Permissible Services.--Funds made available to local 
workforce development areas under section 313(b) may be used to 
contribute to, through the full service employment and training 
delivery system--
          (1) co-location of services related to employment, 
        training, and literacy activities, such as unemployment 
        insurance, vocational rehabilitation program 
        activities, veterans' employment services, programs 
        authorized under the Wagner-Peyser Act (29 U.S.C. 49 et 
        seq.), employment-related services for welfare 
        recipients, or other public assistance activities;
          (2) customized screening and referral of qualified 
        participants to employment; and
          (3) customized employment-related services to 
        employers on a fee-for-service basis.

SEC. 124. IDENTIFICATION OF TRAINING PROVIDERS.

  (a) Eligibility Requirements.--
          (1) In general.--Except as provided in subsection 
        (e), to be identified as an eligible provider of 
        training services under title III and to receive funds 
        made available for the provision of training services 
        described in section 314(c) (referred to in this 
        section as ``training services''), a provider of such 
        services shall meet the requirements of this section.
          (2) Postsecondary educational institution.--Subject 
        to the provisions of this section, a postsecondary 
        educational institution shall automatically be eligible 
        to provide training services under title III for--
                  (A) a program that leads to an associate, 
                baccalaureate, professional, or graduate 
                degree;
                  (B) a program that--
                          (i) is at least 2 academic years in 
                        length; and
                          (ii) is acceptable for academic 
                        credit toward a baccalaureate degree; 
                        or
                  (C) a program that--
                          (i) is at least 1 academic year in 
                        length;
                          (ii) is a training program;
                          (iii) leads to a certificate, degree, 
                        or other recognized educational 
                        credential; and
                          (iv) prepares a student for gainful 
                        employment in a recognized occupation.
          (3) Other eligible providers.--
                  (A) Procedure.--
                          (i) In general.--The Governor shall 
                        establish a procedure for use by local 
                        workforce development boards in 
                        determining the eligibility of public 
                        and private providers not described in 
                        paragraph (2) (including eligibility of 
                        postsecondary educational institutions 
                        for programs not described in paragraph 
                        (2)) to receive such funds.
                          (ii) Factors.--In developing such 
                        procedure, the Governor--
                                  (I) shall solicit and take 
                                into consideration the 
                                recommendations of local 
                                workforce development boards 
                                and providers of training 
                                services within the State; and
                                  (II) shall take into 
                                consideration--
                                          (aa) the specific 
                                        economic, geographic, 
                                        and demographic factors 
                                        in the local areas in 
                                        which eligible 
                                        providers are located; 
                                        and
                                          (bb) the 
                                        characteristics of the 
                                        populations served by 
                                        the eligible providers, 
                                        including the 
                                        demonstrated 
                                        difficulties in serving 
                                        such populations, where 
                                        applicable.
                  (B) Levels of performance.--At a minimum, the 
                procedure described in subparagraph (A) shall 
                require such a provider to meet minimum 
                acceptable levels of performance based on 
                verifiable program-specific performance 
                information described in subsection (b) and 
                submitted to the State agency designated under 
                subsection (c), as required under paragraphs 
                (2) and (3) of subsection (c).
  (b) Performance Information.--
          (1) Required information.--Pursuant to subsection 
        (c)(2), to be eligible to provide training services 
        under title III, a provider shall submit information 
        on--
                  (A) program completion rates for individuals 
                in the applicable program conducted by the 
                provider;
                  (B) the percentage of individuals in the 
                applicable program who obtain employment, which 
                may also include information specifying the 
                percentage of individuals who obtain employment 
                in an occupation related to the program 
                conducted; and
                  (C) the earnings at placement of individuals 
                who complete the program.
          (2) Additional information.--Subject to paragraph 
        (3), in addition to the performance information 
        described in paragraph (1), the Governor may require 
        that a provider described in this paragraph submit such 
        other performance information as the Governor 
        determines to be appropriate, which may include 
        information relating to--
                  (A) the retention in employment and the 
                subsequent earnings of the individuals who 
                complete the applicable program;
                  (B) where appropriate, the rates of licensure 
                or certification of individuals who complete 
                the program;
                  (C) the percentage of individuals who 
                complete the program who attain industry-
                recognized occupational skills in the subject, 
                occupation, or industry for which training is 
                provided, where applicable; and
                  (D) the adequacy of space, staff, equipment, 
                instructional materials, and student support 
                services offered by the provider through a 
                program conducted by the provider.
          (3) Conditions.--
                  (A) In general.--If the Governor requests 
                additional information pursuant to paragraph 
                (2) that imposes extraordinary costs on 
                providers, the Governor shall provideaccess to 
cost-effective methods for the collection of such information or 
provide additional resources to assist providers in the collection of 
such information from funds made available under section 313(a).
                  (B) Transition period for performance-based 
                information.--For program years 1999 and 2000, 
                the performance-based information to be 
                submitted by a provider under this subsection 
                shall only be required to be provided relating 
                to the performance of participants assisted 
                under title III in lieu of all individuals 
                participating in the program of the provider. 
                Nothing in this subparagraph shall be construed 
                to prohibit the submission of performance-based 
                information for all individuals participating 
                in the program of the provider as soon as is 
                practicable prior to program year 2001 and each 
                provider shall be encouraged to submit such 
                information.
  (c) Administration.--
          (1) Designation.--The Governor shall designate a 
        State agency to collect and disseminate the performance 
        information described in subsection (b) and to carry 
        out other duties described in this subsection.
          (2) Submission.--A provider described in subsection 
        (a) shall submit the performance information described 
        in subsection (b) annually to the designated State 
        agency at such time and in such manner as the 
        designated State agency may require. The designated 
        State agency may accept program-specific performance 
        information consistent with the requirements for 
        eligibility under title IV of the Higher Education Act 
        of 1965 (20 U.S.C. 1070 et seq.) from such a provider 
        for purposes of enabling the provider to fulfill the 
        applicable requirements of this paragraph, if such 
        information is substantially similar to the information 
        required under subsection (b).
          (3) List of eligible providers.--
                  (A) In general.--The designated State agency 
                shall compile a list of eligible providers 
                accompanied by the performance information 
                described in subsection (b) consisting of--
                          (i) providers determined to be 
                        automatically eligible subject to 
                        subsection (a)(2); and
                          (ii) providers determined to be 
                        eligible by local workforce development 
                        boards, subject to subsection (a)(3).
                  (B) Availability.--The designated State 
                agency shall disseminate such lists and 
                information to the full service employment and 
                training delivery system and to local boards. 
                Such list and information shall be made widely 
                available to participants in employment and 
                training programs authorized under title III 
                and others through the full service employment 
                and training delivery system described in 
                section 123.
  (d) Enforcement.--
          (1) Accuracy of information.--If the designated State 
        agency determines that a provider or individual 
        supplying information on behalf of a provider 
        intentionally supplies inaccurate information under 
        this section, the agency shall terminate the 
        eligibility of the eligible provider to receive funds 
        described in subsection (a) for a period of time, but 
        not less than 2 years, as prescribed in regulations 
        issued by the Governor.
          (2) Non-compliance.--If the designated State agency, 
        or the local workforce development board working 
        through the State agency, determines that an eligible 
        provider under subsection (a) substantially violates 
        any requirement under this Act, the agency, or the 
        local board through the State agency, may terminate the 
        eligibility of such provider to receive funds described 
        in subsection (a) for such program or take such other 
        action as the agency or local board determines to be 
        appropriate.
          (3) Nonperformance.--
                  (A) Termination for nonperformance.--(i) If 
                the designated State agency determines that an 
                eligible provider under subsection (a)(2) or a 
                program of training services carried out by an 
                eligible provider under subsection (a)(2) 
                substantially fails to meet for 2 or more 
                consecutive years, performance criteria 
                established by the Governor, the agency may 
                terminate the eligibility of such provider.
                  (ii) If the designated State agency, or the 
                local workforce development board working 
                through the State agency, determines that an 
                eligible provider under subsection (a)(3) or a 
                program of training services carried out by 
                such an eligible provider fails to meet 
                acceptable levels of performance consistent 
                with the procedure established under subsection 
                (a)(3), the agency, or the local board through 
                the State agency, may terminate the eligibility 
                of such provider.
                  (B) Factors.--In establishing the performance 
                criteria described under subparagraph (A)(i), 
                the Governor shall--
                          (i) solicit and take into 
                        consideration the recommendations of 
                        local workforce development boards and 
                        providers of training services within 
                        the State; and
                          (ii) take into consideration--
                                  (I) the specific economic, 
                                geographic, and demographic 
                                factors in the local areas in 
                                which eligible providers are 
                                located; and
                                  (II) the characteristics of 
                                the populations served by the 
                                eligible providers, including 
                                the demonstrated difficulties 
                                in serving such populations, 
                                where applicable.
          (4) Eligibility under the higher education act of 
        1965.--If the designated State agency determines that 
        the eligibility of an eligible provider described in 
        subsection (a)(2) under title IV of the Higher 
        Education Act of 1965 has been terminated, the agency--
                  (A) shall terminate the automatic eligibility 
                of the provider under subsection (a)(2); and
                  (B) shall require the provider to meet the 
                requirements of subsection (a)(3) to be 
                eligible to receive funds as described in 
                subsection (a).
          (5) Repayment.--A provider whose eligibility is 
        terminated under paragraph (1) or (2) for a program 
        shall be liable for repayment of all funds described in 
        subsection (a) received for the program during any 
        period of noncompliance described in such paragraph.
          (6) Appeal.--The Governor shall establish a procedure 
        for an eligible provider to appeal a determination by 
        the local board or the designated state agency that 
        results in the denial or termination of eligibility 
        under this subsection. Such procedure shall provide an 
        opportunity for a hearing and prescribe appropriate 
        time limits to ensure prompt resolution of the appeal.
          (7) Construction.--This subsection shall be construed 
        to supplement, but not supplant, other civil and 
        criminal remedies and penalties.
  (e) On-The-Job Training Exception.--
          (1) In general.--Providers of on-the-job training, 
        and apprenticeship programs registered in accordance 
        with the National Apprenticeship Act, shall not be 
        subject to the requirements of subsection (a), (b), 
        (c), or (d).
          (2) Collection and dissemination of information.--A 
        full-service eligible provider in a local workforce 
        development area shall collect such performance 
        information from on-the-job training providers as the 
        Governor may require, and disseminate such information 
        through the delivery of core services described in 
        section 123, as appropriate.

       [Part C--Program Requirements for Service Delivery System]

                 PART C--PROGRAM AND FISCAL PROVISIONS

                     Subpart 1--General Provisions

                     [general program requirements

  [Sec. 141.]

SEC. 141. GENERAL PROGRAM REQUIREMENTS.

  Except as otherwise provided, the following conditions are 
applicable to all programs under this Act:
          [(a)] (1) 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.]. In addition, 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.
          [(b)] (2) 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 
byany 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.]
          (3) Relocation.--
                  (A) Prohibition on use of funds to encourage 
                or induce relocation.--No funds provided under 
                title II, III, or IV shall be used or proposed 
                for use to encourage or induce the relocation, 
                of a business or part of a business, that 
                results in a loss of employment for any 
                employee of such business at the original 
                location, if such original location is within 
                the United States.
                  (B) Prohibition on use of funds for 
                customized or skill training and related 
                activities after relocation.--No funds provided 
                under title II, III, or IV for an employment 
                and training activity shall be used for 
                customized or skill training, on-the-job 
                training, or company-specific assessments of 
                job applicants or employees, for any business 
                or part of a business, that has relocated, 
                until 120 days after the date on which such 
                business commences operations at the new 
                location, if the relocation of such business or 
                part of a business, results in a loss of 
                employment for any employee of such business at 
                the original location and such original 
                location is within the United States.
                  (C) Repayment.--If the Secretary of Labor 
                determines that a violation of paragraph (1) or 
                (2) has occurred, the Secretary shall require 
                the State that has violated such paragraph to 
                repay to the United States an amount equal to 
                the amount expended in violation of such 
                paragraph.
  [(e)(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] (4) Any local workforce 
development area may enter into an agreement or contract with 
another [service delivery area] local workforce development 
area (including a [service delivery area] local workforce 
development 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] local workforce development board providing 
guidance to the [service delivery area] local workforce 
development area and shall be described in the job training 
plan under [section 104] section 122(d)(1).
  [(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] (5) 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.]
          (6)(A) Upon the approval of the Governor, real 
        property in which, as of July 1, 1998, equity has 
        resulted from funds provided under title III of the 
        Social Security Act, section 903(c) of such Act 
        (commonly referred to as the ``Reed Act''), or the 
        Wagner-Peyser Act (29 U.S.C. 49 et seq.) may be used 
        for the purposes of a full service employment and 
        training delivery center.
          (B) Unless otherwise provided in a plan approved 
        pursuant to section 101, subsequent to the commencement 
        of the use of the property described in paragraph (1) 
        for the purposes of a full service employment and 
        training delivery center, funds provided under the 
        provisions of law described paragraph (1) may only be 
        used to acquire further equity in such property, or to 
        pay operating and maintenance expenses relating to such 
        property in proportion to the extent of the use of such 
        property attributable to the activities authorized 
        under such provisions of law.
          [(j)] (7) 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)] (8) The Secretary shall not provide financial 
        assistance for any program under this Act which 
        involves political activities.
          [(m)(1)] (9)(A) 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)] (B) Income subject to the requirements of 
        paragraph (1) shall include--
                  [(A)] (i) receipts from goods or services 
                (including conferences) provided as a result of 
                activities funded under the Act;
                  [(B)] (ii) funds provided to a service 
                provider under the Act that are in excess of 
                the costs associated with the services 
                provided; and
                  [(C)] (iii) interest income earned on funds 
                received under this Act.
          [(3)] (C) 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)] (10) The Secretary shall notify the Governor 
        and the appropriate [private industry councils] local 
        workforce development boards and chief elected 
        officials of, and consult with the Governor and such 
        [councils] boards and officials concerning, any 
        activity to be funded by the Secretary under [this Act] 
        title II or title III within the State or [service 
        delivery area] local workforce development area; and 
        the Governor shall notify the appropriate [private 
        industry councils] local workforce development boards 
        and chief elected officials of, and consult with such 
        concerning, any activity to be funded by the Governor 
        under [this Act] title II or title III within the 
        [service delivery area] local workforce development 
        area.
          [(o)(1)] (11)(A) All education programs for youth 
        supported with funds provided under title II shall be 
        consistent with applicable State and local educational 
        standards.
          [(2)] (B) 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)] (12) No funds available under [part B of this 
        title or part A or C of title II] this Act may be used 
        for public service employment except as specifically 
        authorized under this Act.
          [(q)] (13) 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 which are not directly related to training 
        or related services for eligible individuals under this 
        Act. No funds under title II or III of this Act shall 
        be used for foreign travel.
          [(r)] (14) 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.]
          (15) Prohibition on entitlement to service.--Nothing 
        in this Act shall be construed to provide an individual 
        with an entitlement to a service under this Act.
          (16) Fee for service authority.--Services, 
        facilities, and equipment funded under titles II and 
        III may be used, as appropriate, on a fee for service 
        basis, by employers in a local workforce development 
        area in order to provide employment and training 
        services to incumbent workers--
                  (A) when such services, facilities, or 
                equipment are not in use for the provision of 
                services for eligible program participants 
                under title II or title III, respectively;
                  (B) if such use would not have an adverse 
                effect on the provision of services to eligible 
                program participants under title II or title 
                III, respectively; and
                  (C) if the income derived from such fees is 
                used to carry out the programs authorized under 
                title II or title III, respectively.

                               [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.]

SEC. 142. BENEFITS.

  (a) Wages.--
          (1) In general.--Individuals in on-the-job training 
        or individuals employed in activities under this Act 
        shall be compensated at the same rates, including 
        periodic increases, as trainees or employees who are 
        similarly situated in similar occupations by the same 
        employer and who have similar training, experience and 
        skills, and such rates shall be in accordance with 
        applicable law, but in no event less than the higher of 
        the rate specified in section 6(a)(1) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the 
        applicable State or local minimum wage law.
          [(4)] (2) References.--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] Additional Requirement.--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 
otherinterested 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.]

SEC. 143. LABOR STANDARDS.

  (a) Limitations on Activities That Impact Wages of 
Employees.--No funds provided under this title shall be used to 
pay the wages of incumbent employees during their participation 
in economic development activities provided through the 
statewide system.
  (b) Displacement.--
          (1) Prohibition.--A participant in an activity 
        authorized under title II, III, or IV of this Act 
        (referred to in this section as a ``specified 
        activity'') shall not displace (including a partial 
        displacement, such as a reduction in the hours of 
        nonovertime work, wages, or employment benefits) any 
        currently employed employee (as of the date of the 
        participation).
          (2) Prohibition on impairment of contracts.--A 
        specified activity shall not impair an existing 
        contract for services or collective bargaining 
        agreement, and no such activity that would be 
        inconsistent with the terms of a collective bargaining 
        agreement shall be undertaken without the written 
        concurrence of the labor organization and employer 
        concerned.
  (c) Other Prohibitions.--A participant in a specified 
activity shall not be employed in a job--
          (1) when any other individual is on layoff from the 
        same or any substantially equivalent job;
          (2) when the employer has terminated the employment 
        of any regular employee or otherwise reduced the 
        workforce of the employer with the intention of filling 
        the vacancy so created with the participant; or
          (3) which is created in a promotional line that will 
        infringe in any way upon the promotional opportunities 
        of currently employed individuals.
  (d) Health and Safety.--Health and safety standards 
established under Federal and State law otherwise applicable to 
working conditions of employees shall be equally applicable to 
working conditions of participants engaged in specified 
activities. To the extent that a State workers' compensation 
law applies, workers' compensation shall be provided to 
participants on the same basis as the compensation is provided 
to other individuals in the State in similar employment.
  (e) Employment Conditions.--Individuals in on-the-job 
training or individuals employed in activities under this Act, 
shall be provided benefits and working conditions at the same 
level and to the same extent as other trainees or employees 
working a similar length of time and doing the same type of 
work.
  (f) Opportunity To Submit Comments.--Interested parties shall 
be provided an opportunity to submit comments with respect to 
training programs proposed to be funded under this Act.

SEC. 144. GRIEVANCE PROCEDURE.

  (a) In General.--Each State receiving an allotment under this 
Act shall establish and maintain a procedure for grievances or 
complaints alleging violations of the requirements of this Act 
from participants and other interested or affected parties. 
Such procedure shall include an opportunity for a hearing and 
be completed within 60 days of filing the complaint.
  (b) Investigation.--
          (1) In general.--The Secretary shall investigate an 
        allegation of a violation described in subsection (a) 
        if--
                  (A) a decision relating to such violation has 
                not been reached within 60 days after the date 
                of the filing of the grievance or complaint and 
                either party appeals to the Secretary; or
                  (B) a decision relating to such violation has 
                been reached within such 60 days and the party 
                to which such decision is adverse appeals such 
                decision to the Secretary.
          (2) Additional requirement.--The Secretary shall make 
        a final determination relating to an appeal made under 
        paragraph (1) no later than 120 days after receiving 
        such appeal.
  (c) Remedies.--Remedies shall be limited--
          (1) to suspension or termination of payments under 
        this Act;
          (2) to prohibition of placement of a participant with 
        an employer that has violated any requirements under 
        this Act;
          (3) where applicable, to reinstatement of an 
        employee, payment of lost wages and benefits, and 
        reestablishment of other relevant terms, conditions and 
        privileges of employment; and
          (4) where appropriate, to other equitable relief.

           [prohibition against federal control of education

  [Sec. 145.]

SEC. 145. PROHIBITION AGAINST FEDERAL CONTROL OF EDUCATION.

  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.

SEC. 146. IDENTIFICATION OF ADDITIONAL IMPOSED REQUIREMENTS.

  If a State or workforce development 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 workforce development area 
interpretation of any Federal law, regulation, or guideline) 
the State or area shall identify the requirement as a State- or 
workforce development area-imposed requirement.

SEC. 147. AUTHORITY OF STATE LEGISLATURE.

  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. Any funds received by a 
State under title II or III of this Act shall be subject to 
appropriation by the State legislature, consistent with the 
terms and conditions required under this Act.

SEC. 148. INTERSTATE AGREEMENTS.

  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.

            Subpart 2--Performance Accountability Provisions

SEC. 151. PERFORMANCE ACCOUNTABILITY SYSTEM.

  In order to promote high levels of performance and to ensure 
an appropriate return on the Nation's investment in employment, 
training, and literacy programs, each State receiving funds 
under this Act or the Adult Education and Family Literacy Act 
shall implement a statewide performance accountability system 
that meets the requirements of this subpart.

SEC. 152. INDICATORS OF PERFORMANCE.

  (a) State Benchmarks.--
          (1) In general.--Each State receiving funds under 
        this Act shall identify indicators and related levels 
        of performance (hereinafter referred to as `State 
        benchmarks'), for each of the programs established 
        under titles II, III, and V of this Act, to be used to 
        measure the State's progress in meeting the State long-
        term goals described in the State plan under section 
        101. Such State benchmarks shall, at a minimum--
                  (A) include the core indicators of 
                performance described in section 154;
                  (B) be expressed in an objective, 
                quantifiable, and measurable form; and
                  (C) show the progress of the State to 
                continuously improve in performance over the 3-
                year period covered by the State plan.
          (2) Customer satisfaction.--Such State benchmarks may 
        also include post-program surveys and other measures of 
        customer satisfaction of both employers and program 
        participants.
  (b) 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, localities, representatives of 
business and industry, employees, employment and training 
service providers, State directors of adult education, 
providers of adult education and literacy services, individuals 
with expertise in serving the employment and training needs of 
disadvantaged youth, participants, parents and other interested 
parties with expertise in the provision of employment, 
training, literacy, and related services, shall promulgate 
definitions of each of the core indicators of performance 
described in section 154,with the exception of the indicators 
described under subsections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5) 
of such section, to be used under this Act in measuring performance.

SEC. 153. STATE ADJUSTED BENCHMARKS.

  (a) Negotiation.--
          (1) In general.--In order to ensure an adequate 
        return on the investment of Federal funds in 
        employment, training, and literacy programs authorized 
        under this Act and the Adult Education and Family 
        Literacy Act, the appropriate Secretary is authorized 
        to negotiate with each State the levels of performance 
        expected to be achieved by such State based upon the 
        State's benchmarks established pursuant to section 
        152(a)(1) (hereinafter referred to as the `State 
        adjusted benchmarks'), for the core indicators of 
        performance described in section 154 (except for the 
        indicators described under subsections (a)(6), (b)(1), 
        (b)(5), (c)(1), and (c)(5) of such section). Such 
        negotiations shall take into account--
                  (A) whether the levels will enable each State 
                to attain the State goals;
                  (B) how the levels compare with the levels 
                established by other States, taking into 
                consideration the specific circumstances, 
                including economic circumstances, of each 
                State;
                  (C) how the levels compare with the model 
                levels of performance identified pursuant to 
                subsection (c); and
                  (D) the extent to which such levels 
                demonstrate continuous improvement in 
                performance by such State and ensure an 
                adequate return on the investment of Federal 
                funds.
          (2) Authority of governor.--The Governor of a State 
        is authorized to carry out the negotiation described in 
        paragraph (1) for programs authorized under titles II 
        and III.
          (3) Authority of eligible state agency.--The eligible 
        State agency for adult education and literacy programs 
        is authorized to carry out the negotiation described in 
        paragraph (1) for programs authorized under the Adult 
        Education and Family Literacy Act.
  (b) Local Benchmarks for Employment and Training Programs.--
Based on the expected levels of performance established 
pursuant to subsection (a), each State shall negotiate with the 
local workforce development board and the chief local elected 
official in each local workforce development area (consistent 
with section 122(d)(6)(A)) the levels of performance for each 
indicator that are expected for such local workforce 
development areas. Such levels of performance shall be known as 
`local benchmarks'.
  (c) Model Levels of Performance.--In order to encourage high 
levels of performance and advance the Nation's competitiveness, 
the Secretary of Labor and the Secretary of Education, in 
collaboration with the States, localities, and with 
representatives of business and industry, employees, employment 
and training service providers, State directors of adult 
education, providers of adult education and literacy services, 
individuals with expertise in serving the employment and 
training needs of disadvantaged youth, participants, parents 
and other interested parties with expertise in the provision of 
employment, training, literacy, and related services, shall 
identify challenging model levels of performance (hereinafter 
referred to as `model levels of performance') with respect to 
the core indicators of performance described in section 154, 
with the exception of the indicators described under 
subsections (a)(6), (b)(1), (b)(5), (c)(1), and (c)(5).

SEC. 154. CORE INDICATORS OF PERFORMANCE.

  (a) Core Indicators for Adult Employment and Training 
Programs.--The common core indicators of performance for 
programs authorized under title III of this Act shall include 
measures of--
          (1) placement in unsubsidized employment;
          (2) retention in unsubsidized employment for not less 
        than 6 months and for not less than 12 months, 
        respectively;
          (3) increases in earnings or in earnings in 
        combination with employer-assisted benefits;
          (4) reductions in welfare dependency;
          (5) attainment of industry-recognized occupational 
        skills;
          (6) attainment of a high school diploma or a general 
        equivalency diploma; and
          (7) such other measures of performance as the State 
        may wish to collect.
  (b) Core Indicators for Adult Education and Literacy 
Programs.--The core indicators of performance for programs 
conducted under the Adult Education and Family Literacy Act 
shall include measures of--
          (1) achievement in the areas of reading, writing, 
        English language acquisition, problem solving, 
        numeracy, and other literacy skills;
          (2) receipt of a high school diploma or a general 
        equivalency diploma;
          (3) entry into a postsecondary school, job retraining 
        program, employment, or career advancement;
          (4) attainment of the literacy skills and knowledge 
        individuals need to be productive and responsible 
        citizens and to become more actively involved in the 
        education of their children; and
          (5) such other measures of performance as the State 
        may wish to collect.
  (c) Core Indicators for Disadvantaged Youth.--The core 
indicators of performance for programs conducted under title II 
shall include measures of--
          (1) attainment of challenging State academic 
        proficiencies;
          (2) attainment of secondary school diplomas or 
        general equivalency diplomas;
          (3) attainment of industry-recognized work readiness 
        and occupational skills;
          (4) placement in, retention in, and completion of 
        postsecondary education or advanced training, or 
        placement and retention in military service, 
        employment, or qualified apprenticeships; and
          (5) such other measures of performance as the State 
        may wish to collect.
  (d) Population Indicators.--
          (1) Adult employment and training programs.--The core 
        indicators of performance for programs conducted under 
        title III, as provided under subsection (a), shall 
        include measures of the success of individuals with 
        multiple barriers to employment, including economically 
        disadvantaged individuals (including welfare 
        recipients), displaced homemakers, older workers, and 
        other individuals as determined by the State.
          (2) Adult education and literacy programs.--The core 
        indicators of performance for programs conducted under 
        the Adult Education and Family Literacy Act, as 
        provided under subsections (a) and (b), shall include 
        measures of the success of economically disadvantaged 
        individuals, individuals with limited literacy (as 
        determined by the eligible agency), and other 
        individuals as determined by the eligible agency.
          (3) Disadvantaged youth programs.--The core 
        indicators of performance for programs conducted under 
        title II, as provided under subsection (c), shall 
        include measures of the success of hard to serve youth, 
        including individuals who are school dropouts or whose 
        educational attainment is one or more grade levels 
        below the grade level appropriate to the age of the 
        individual, and other individuals as determined by the 
        State.

SEC. 155. REPORT ON PERFORMANCE.

  (a) In General.--Each State that receives funds under titles 
II and III of this Act and the Adult Education and Family 
Literacy Act shall annually prepare and submit to the Secretary 
of Labor and the Secretary of Education (for consideration by 
the appropriate Secretary) a report on the levels of 
performance achieved by the State with respect to the State 
adjusted benchmarks identified pursuant to section 153(a), and 
by each local workforce development area with respect to the 
local benchmarks identified pursuant to section 153(b) for 
programs authorized under title II and title III for each 
program year. In preparing such report, the State may include 
information on such additional benchmarks as the State may 
establish to meet the State goals.
  (b) Information Dissemination.--The Secretary of Labor and 
the Secretary of Education--
          (1) shall make the information contained in such 
        reports available to the general public through 
        publication and other appropriate methods;
          (2) shall disseminate State-by-State comparisons of 
        the information; and
          (3) shall provide the appropriate congressional 
        committees with copies of such reports.

SEC. 156. INCENTIVE GRANTS AND SANCTIONS.

  (a) Incentive Grants.--
          (1) Award of grants.--From amounts made available 
        under section 452 and section 502 for any fiscal year, 
        the appropriate Secretary may award incentive grants to 
        States that--
                  (A) exceed, during the most recent 12-month 
                period for which data are available, the 
                adjusted State benchmarks described under 
                section 153(a);
                  (B) demonstrate continuing progress toward 
                exceeding, during the 3-year period covered by 
                the State plan submitted under section 101, the 
                adjusted State benchmarks described under 
                section 153(a); or
                  (C) demonstrate significant progress in the 
                coordination and integration of employment, 
                training, literacy, and other human resource 
                and workforce preparation programs within the 
                State, and demonstrate high performance in such 
                programs.
          (2) Technical assistance.--The Secretary, upon 
        request, shall provide technical assistance to any 
        State that does not qualify for receipt of an incentive 
        grant under paragraph (1).
          (3) Use of funds.--A State that receives an incentive 
        grant under paragraph (1) may use funds made available 
        under such grant only to carry out employment, 
        training, or literacy activities.
  (b) Sanctions.--
          (1) States.--
                  (A) Technical assistance.--If a State fails 
                to meet expected levels of performance for a 
                program for any program year as established 
                pursuant to section 153(a), the Secretary of 
                Labor for programs established under title II 
                and title III, or the Secretary of Education 
                for programs established under the Adult 
                Education and Family Literacy Act, shall, upon 
                request, provide technical assistance, 
                including assistance in the development of a 
                performance improvement plan.
                  (B) Reduction in amount of grant.--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 adjusted levels of 
                performance.
          (2) Local areas.--
                  (A) Technical assistance.--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 section 153(b), the 
                Governor, upon request to the Secretary, shall 
                provide technical assistance, including the 
                development of a performance improvement plan.
                  (B) Corrective actions.--
                          (i) In general.--If such failure 
                        continues for a second consecutive 
                        year, the Governor shall take 
                        corrective actions, which may include 
                        development of a reorganization plan 
                        through which the Governor may require 
                        the appointment of a new local board 
                        (consistent with the criteria 
                        established under section 122(b)), 
                        prohibit the use of designated service 
                        providers, require the redesignation of 
                        a local administrative entity (in such 
                        case chosen jointly by the Governor and 
                        the chief elected official in the local 
                        workforce development area), or such 
                        other actions as the Governor 
                        determinesare appropriate, consistent 
with State law, and the requirements of this subparagraph.
                          (ii) Appeal by workforce development 
                        area.--A workforce development area 
                        that is subject to a reorganization 
                        plan under clause (i) may, not later 
                        than 30 days after receiving notice 
                        thereof, appeal to the Secretary to 
                        rescind or revise such plan. In such 
                        case, the Secretary shall make a final 
                        decision not later than 45 days after 
                        the receipt of the appeal.
                          (iii) Effective date.--The actions 
                        taken by the Governor under clause (i) 
                        shall not become effective until the 
                        time the appeal has expired (consistent 
                        with clause (ii)), or the Secretary has 
                        issued a final decision.

         [Part D--Federal and Fiscal Administrative Provisions]

                      Subpart 3--Other Provisions

                             [program year

  [Sec. 161. (a)]

SEC. 161. PROGRAM YEAR.

  (a) Program Year.--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)] (b) Availability.--(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)]

SEC. 162. PROMPT ALLOCATION OF FUNDS.

  (a) Allotments and Allocations Based on Latest Available 
Data.--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] the most recent satisfactory data from 
the Bureau of the Census.
  [(b)] (b) Publication in Federal Register Relating to 
Mandatory Funds.--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)] (c) Requirement for Funds Distributed by Formula.--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)] (d) Publication in Federal Register Relating to 
Discretionary Funds.--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)] (e) Availability of Funds.--Funds shall be made 
available to the grant recipient for the [service delivery 
area] local workforce development 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)]

SEC. 163. MONITORING.

  (a) In General.--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)] (b) Investigations.--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)] (c) Additional Requirement.--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)]

SEC. 164. FISCAL CONTROLS; SANCTIONS.

  (a) Establishment of Fiscal Controls by States.--
          (1) In general.--Each State shall establish such 
        fiscal control and fund accounting procedures as may be 
        necessary to assure the proper disbursal of, and 
        accounting for, Federalfunds 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)] (2) Regulations.--The Secretary shall prescribe 
        regulations establishing uniform  cost  principles  
        substantially  equivalent  to  such  principles 
        generally applicable to recipients of Federal grants 
        funds, consistent with appropriate circulars of the 
        Office of Management and Budget. 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], and procurement 
                transactions between workforce development 
                boards and such governments shall be conducted 
                only on a cost-reimbursable basis.
          (3) The Governor, in accordance with minimum 
        requirements established by the Secretary in 
        regulations consistent with appropriate circulars of 
        the Office of Management and Budget, 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] workforce development 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] workforce development 
        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] workforce 
                development 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] requirements under 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 local plan affected; or
          (B) impose a reorganization plan, which may include--
                  (i) restructuring the [private industry 
                council] workforce development board involved;
                  (ii) prohibiting the use of designated 
                service providers;
                  (iii) selecting an alternative entity to 
                administer the program for the [service 
                delivery] workforce development area involved;
                  (iv) merging the [service delivery] workforce 
                development area into 1 or more other existing 
                [service delivery] workforce development 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)] subparagraphs (A) and (B) of paragraph (1) 
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 the 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] The Secretary 
shall make a final decision not later than [60] 45 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.]
  (c) Repayment of Certain Amounts to the United States.--
          (1) In general.--Every recipient of funds under 
        titles II and III of this Act shall repay to the United 
        States amounts found not to have been expended in 
        accordance with this Act.
          (2) Offset of repayment.--If the Secretary determines 
        that a State has expended funds made available under 
        this Act in a manner contrary to the requirements of 
        this Act, the Secretary may offset repayment of such 
        expenditures against any other amount to which the 
        State is or may be entitled, except as provided under 
        subsection (e)(1).
          (3) Repayment from deduction by state.--If the 
        Secretary requires a State to repay funds as a result 
        of a determination that a local recipient or a 
        subgrantee of such recipient in a local workforce 
        development area of the State has expended funds 
        contrary to the requirements of this Act, the Governor 
        of the State may use an amount deducted under paragraph 
        (4) to repay the funds, except as provided under 
        subsection (e)(1).
          (4) Deduction by state.--The Governor may deduct an 
        amount equal to the misexpenditure described in 
        paragraph (3) from subsequent program year allocations 
        to the local workforce development area from funds 
        reserved for the administrative costs of such local 
        programs under title II or title III, as appropriate.
          (5) Limitations.--A deduction made by a State as 
        described under paragraph (4) shall not be made until 
        such time as the Governor has taken appropriate 
        corrective action to ensure full compliance within such 
        local workforce development area with regard to 
        appropriate expenditures of funds under this Act.
  [(e)(1)] (d) Repayment of Amounts.--
          (1) In general.--Each recipient shall be liable to 
        repay such amounts, from funds other than funds 
        received under this Act, upon a determination by the 
        Secretary 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, or a pattern of failure 
        with respect to paragraphs (2) and (3) of subsection 
        (d). No such finding shall be made under this 
        subsection or subsection (d) except after notice and 
        opportunity for a fair hearing has been given to the 
        recipient.
          [(2)] (2) Factors in imposing sanctions.--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 carryingout 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)] (3) Waiver.--If the Secretary determines that 
        the recipient has demonstrated substantial compliance 
        with the requirements of paragraph (2), the Secretary 
        may waive the imposition of sanctions authorized by 
        this section upon such recipient. [The Secretary is 
        authorized to impose any sanction consistent with the 
        provisions of this Act and any applicable Federal or 
        State law directly against any subgrantee for violation 
        of this Act or the regulations under this Act.]
  [(f)] (e) Immediate Termination or Suspension of Assistance 
in Emergency Situations.--In emergency situations, if the 
Secretary determines it is necessary to protect the integrity 
of the funds or ensure the proper operation of the program, 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)] (f) Discrimination Against Participants.--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)]

SEC. 165. REPORTS; RECORDKEEPING; INVESTIGATIONS.

  (a) Reports.--
          (1) In general.--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)] (2) Submission to the secretary.--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)] (3) Maintenance of standardized records.--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)] (4) Availability to the public.--(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)] (B) Exception.--Subparagraph (A) shall not 
        apply to--
                  (i) information, the disclosure of which 
                would constitute a clearly unwarranted invasion 
                of personal privacy; and
                  (ii) trade secrets, or commercial or 
                financial information, obtained from a person 
                and privileged or confidential.
          [(C)] (C) Fees to recover costs.--Recipients may 
        charge fees sufficient to recover costs applicable to 
        the processing of requests for records under 
        subparagraph (A).
  [(b)(1)(A)]
  (b) Investigations of Use of Funds.--
          (1) In general.--(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)] (2) Prohibition.--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)]
          (3) Audits.--
                  (A) In general.-- 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)] (B) Notification requirement.--If the scope, 
        objectives, or purposes of the audit change 
        substantially during the course of the audit, the 
        entity being audited shall be notified of the change as 
        soon as practicable.
          [(C)] (C) Additional requirement.--The reports on the 
        results of such audits shall cite the law, regulation, 
        policy, or other criteria applicable to any finding.
          [(D)] (D) Rule of construction.--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)] (c) Accessibility of Reports.--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] local workforce development 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)]
  (d) Information To Be Included in Reports.--
          (1) In general.--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[;] and 
                placement for participants in nontraditional 
                employment;
                  (D) specified program costs; and
                  (E) information necessary to prepare reports 
                to comply with section 167.
          [(2)] (2) Additional requirement.--The Secretary 
        shall ensure that all elements of the information 
        required for the reports described in paragraph (1) are 
        defined and reported uniformly.
  [(e)] (e) Retention of Records.--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 reportcontaining 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)]
  (f) Quarterly Financial Reports.--
          (1) In general.--Each substate grantee and [service 
        delivery area] local workforce development 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)] (2) Additional requirement.--Each State shall 
        submit a summary of the reports submitted pursuant to 
        paragraph (1) to the Secretary on a quarterly basis.
  [(g)] (g) Maintenance of Additional Records.--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)]

SEC. 166. ADMINISTRATIVE ADJUDICATION.

  (a) In General.--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)] (b) Appeal.--The decision of the administrative law 
judge shall constitute final action by the Secretary unless, 
within 20 days after receipt of the decision of the 
administrative law judge, a party dissatisfied with the 
decision or any part 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)] (c) Time Limit.--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)] (d) Additional Requirement.--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.]

SEC. 167. NONDISCRIMINATION.

  (a) In General.--
          (1) Federal financial assistance.--For the purpose of 
        applying the prohibitions against discrimination on the 
        basis of age under the Age Discrimination Act of 1975 
        (42 U.S.C. 6101 et seq.), on the basis of disability 
        under section 504 of the Rehabilitation Act of 1973 (29 
        U.S.C. 794), on the basis of sex under title IX of the 
        Education Amendments of 1972 (20 U.S.C. 1681 et seq.), 
        or on the basis of race, color, or national origin 
        under title VI of the Civil Rights Act of 1964 (42 
        U.S.C. 2000d et seq.), 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) Nondiscrimination.--No individual shall be 
        excluded from participation in, denied the benefits of, 
        subjected to discrimination under, or denied employment 
        in the administration of or in connection with any such 
        program or activity because of race, color, religion, 
        sex, national origin, age, political affiliation or 
        belief, or status as a qualified individual with a 
        disability or as a participant of such program or 
        activity.
  (b) Secretarial Authority.--Whenever the Secretary finds that 
a State or other recipient has failed to comply with a 
provision of this section, or with an applicable regulation 
prescribed to carry out this section, the Secretary shall 
notify such State or recipient and seek compliance through the 
processes of conciliation, mediation or persuasion, as 
appropriate. If within a reasonable time the State or recipient 
fails or refuses to comply, the Secretary may--
          (1) refer the matter to the Attorney General with a 
        recommendation for appropriate action; or
          (2) take such other action as may be provided by law.
  (c) Authority of Attorney General.--When a matter is referred 
to the Attorney General pursuant to subsection (b)(1), the 
Attorney General may bring a civil action in any appropriate 
district court of the United States for such relief as may be 
appropriate, including injunctive relief.
  (d) Job Corps.--For the purposes of this section, Job Corps 
members shall be considered as the ultimate beneficiaries of 
Federal financial assistance.
  (e) Regulations.--The Secretary shall issue regulations 
necessary to implement this section not later than one year 
after the date of the enactment of the Employment, Training, 
and Literacy Enhancement Act of 1997. Such regulations shall 
adopt standards for determining discrimination and procedures 
for enforcement that are consistent with the Acts referred to 
in a subsection (a)(1), as well as procedures to ensure that 
complaints filed under this section and such Acts are processed 
in a manner that avoids duplication of effort.

                            [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)]

SEC. 168. ADMINISTRATIVE PROVISIONS.

  (a) In General.--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.] rules and regulations only to the 
extent necessary to administer and ensure compliance with the 
specific requirements of this Act. 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)] (b) Acquisition of Certain Property and Services.--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)] (c) Authority To Enter Into Certain Agreements and To 
Make Certain Expenditures.--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)] (d) Annual Report.--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.]

SEC. 169. UTILIZATION OF SERVICES AND FACILITIES.

  The Secretary is authorized, in carrying out this Act, under 
the same conditions applicable under [section 169(c)] section 
168(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.]

SEC. 170. OBLIGATIONAL AUTHORITY.

  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.]

SEC. 171. LIMITATION ON CERTAIN COSTS.

  (a) In General.--The Secretary, after consultation with the 
Inspector General of the Department of Labor and the 
Comptroller General of the United States, shall develop 
regulations that define ``administrative costs'' for purposes 
of programs under titles II and III. Such definition shall 
reflect generally accepted accounting principles.
  (b) Limitation.--
          (1) In general.--Of the amounts allocated to local 
        workforce development areas for a program year under 
        titles II and III, not more that 10 percent of such 
        amounts may be expended for administrative costs.
          (2) Definition.--For purposes of paragraph (1), the 
        term ``allocated'' means allocated for a program year, 
        as adjusted for reallocations and reallotments and for 
        transfers of funds in accordance with this Act.

                   [Part E--Miscellaneous Provisions]

                    PART D--MISCELLANEOUS PROVISIONS

SEC. 181. REFERENCE.

  Effective on the date of the enactment of the Employment, 
Training, and Literacy Enhancement Act of 1997, all references 
in any other provision of law (other than section 665 of title 
18, United States Code) to the Comprehensive Employment and 
Training Act, or to the Job Training Partnership Act, as the 
case may be, shall be deemed to refer to Employment, Training, 
and Literacy Enhancement Act.

                          [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.]


             enforcement of military selective service act


  Sec. 182. 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.

           [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 amember 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.

[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.
          [(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;
                  [(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;
                  [(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) the portions of title IV of the Social Security 
        Act relating to work activities;
          [(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.

[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;
                  [(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 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 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.
  [(c) 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.

[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.

[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;
                  [(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;
                  [(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.
                  [(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.
                  [(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.

[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) the portion of title IV of the Social Security 
        Act relating to work activities;
          [(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. Suchlinkages 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.

[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.]

  TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                                 GRANTS

SEC. 201. 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. 202. AUTHORIZATION.

  (a) In General.--In the case of each State that in accordance 
with the requirements of sections 101 and 102 submits to the 
Secretary of Labor (hereinafter in this title referred to as 
the ``Secretary'') a State plan, the Secretary shall provide a 
grant to the State for the purpose of providing employment, job 
training, educational, and related assistance for disadvantaged 
youth in the State.
  (b) Amount.--The grant shall consist of the allotment 
determined for the State under section 203.

SEC. 203. ALLOTMENT AND ALLOCATION AMONG STATES.

  (a) In General.--Of the amount appropriated pursuant to 
section 3(a)(1) to carry out this title for a fiscal year, the 
Secretary shall allot such amount in accordance with subsection 
(b).
  (b) Allotment Among States.--
          (1) Outlying areas.--
                  (A) In general.--From the amount appropriated 
                for any fiscal year to carry out this title, 
                the Secretary shall reserve not more than one 
                quarter of one percent to provide assistance 
                to--
                          (i) the outlying areas; and
                          (ii) for each of the fiscal years 
                        1998 through 2001, to carry out the 
                        competition described in subparagraph 
                        (B), except that the amount reserved to 
                        carry out such subparagraph for any 
                        such fiscal year shall not exceed the 
                        amount reserved for the freely 
                        associated states for fiscal year 1997, 
                        from amounts reserved under section 
                        262(a)(1) of the Job Training 
                        Partnership Act (29 U.S.C. 1642(a)(1)) 
                        (as such section was in effect on the 
                        day before the date of the enactment of 
                        Employment, Training, and Literacy 
                        Enhancement Act of 1997).
                  (B) Limitation for freely associated 
                states.--
                          (i) Competitive grants.--The 
                        Secretary shall use funds described in 
                        subparagraph (A)(ii) to award grants to 
                        Guam, American Samoa, the Commonwealth 
                        of the Northern Mariana Islands, and 
                        the freely associated states to carry 
                        out the purposes of this title.
                          (ii) Award basis.--The Secretary 
                        shall award grants pursuant to clause 
                        (i) on a competitive basis and pursuant 
                        to the recommendations of experts in 
                        the field of employment and training, 
                        working through the Pacific Region 
                        Educational Laboratory in Honolulu, 
                        Hawaii.
                          (iii) Assistance requirements.--Any 
                        freely associated state that desires to 
                        receive amounts under this title shall 
                        include in its application for 
                        assistance--
                                  (I) information demonstrating 
                                that it will meet all 
                                conditions that apply to States 
                                under this title;
                                  (II) an assurance that, 
                                notwithstanding any other 
                                provision of this title, it 
                                will use such amounts only for 
                                the direct provision of 
                                services; and
                                  (III) such other information 
                                and assurances as the Secretary 
                                may require.
                          (iv) Termination of eligibility.--
                        Notwithstanding any other provision of 
                        law, the freely associated states shall 
                        not receive any funds under this title 
                        for any program year that begins after 
                        September 30, 2001.
                          (v) Administrative costs.--The 
                        Secretary may provide not more than 5 
                        percent of the amount made available 
                        for grants under this subparagraph to 
                        pay the administrative costs of the 
                        Pacific Region Educational Laboratory 
                        in Honolulu, Hawaii, regarding 
                        activities assisted under this section.
                  (C) Additional requirement.--The provisions 
                of Public Law 95-134, permitting the 
                consolidation of grants by the outlying areas, 
                shall not apply to funds provided to those 
                areas or to the freely associated states under 
                this section.
                  (D) Definition.--For purposes of this 
                paragraph, the term ``freely associated 
                states'' means the Republic of the Marshall 
                Islands, the Federated States of Micronesia, 
                and the Republic of Palau.
          (2) State reservation.--
                  (A) In general.--After determining the 
                amounts to be allotted under paragraph (1), the 
                Secretary shall allot the remaining amount to 
                the States pursuant to the formula contained in 
                subparagraph (B).
                  (B) Formula.--Subject to the provisions of 
                subparagraphs (C) and (D) of the amounts 
                allotted to States for this title for each 
                fiscal year--
                          (i) 33\1/3\ percent shall be allotted 
                        on the basis of the relative number of 
                        unemployed individuals residing in 
                        areas of substantial unemployment 
                        within each State as compared to the 
                        total number of such unemployed 
                        individuals in all such areas of 
                        substantial unemployment in all States;
                          (ii) 33\1/3\ percent shall be 
                        allotted on the basis of the relative 
                        excess number of unemployed individuals 
                        who reside in each State as compared to 
                        the total excess number of unemployed 
                        individuals in all States; and
                          (iii) 33\1/3\ percent shall be 
                        allotted on the basis of the relative 
                        number of economically disadvantaged 
                        youth within each State as compared to 
                        the total number of economically 
                        disadvantaged youth in all States.
                  (C) Minimum allotment.--
                          (i) 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.
                          (ii) Maximum percentage.--No State 
                        shall be allotted more than 130 percent 
                        of its allotment percentage for the 
                        fiscal year preceding the fiscal year 
                        for which the determination is made.
                  (D) Small state minimum allotment.--No State 
                shall receive less than one-quarter of one 
                percent of the amount available under this 
                title for a fiscal year. Amounts necessary for 
                increasing such payments to States to comply 
                with the preceding sentence shall be obtained 
                by ratably reducing the amounts to be paid to 
                other States.
  (c) Definitions and Rule.--
          (1) Definitions.--As used in this section:
                  (A) Disadvantaged youth.--The term 
                ``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. 204. ALLOCATION WITHIN STATES.

  (a) Reservation for State Activities.--
          (1) In general.--
                  (A) Reservation.--The Governor of the State 
                shall reserve not more than 25 percent of the 
                amount allotted to the State under section 
                203(b) for a fiscal year to carry out the 
                activities described in this subsection.
                  (B) Matching funds for out-of-school youth 
                programs.--Of the amount reserved under 
                subparagraph (A), the Governor shall reserve 10 
                percent of the total amount alloted to the 
                State under section 203(b) for any fiscal year 
                to award grants in accordance with this title 
                to programs for disadvantaged youth services 
                that--
                          (i) serve only out-of-school youth; 
                        and
                          (ii) agree to provide funds from non-
                        Federal sources for such services in an 
                        amount equal to the Federal funds 
                        received under this title.
          (2) Required activities.--Activities described in 
        paragraph (1)(A) shall include the provision of 
        additional assistance to areas that have high 
        concentrations of disadvantaged youth to carry out the 
        activities described in section 206.
          (3) Discretionary activities.--Activities described 
        in paragraph (1)(A) may include--
                  (A) subject to paragraph (4), administration 
                by the State of programs under this title;
                  (B) capacity building and technical 
                assistance to local workforce development areas 
                and to providers of disadvantaged youth 
                services as authorized under this title, 
                including the development and training of 
                staff, members of local workforce development 
                boards, and employers and workplace mentors 
                providing training through programs authorized 
                under this title;
                  (C) incentives for program coordination and 
                integration, performance awards, and research 
                and demonstrations;
                  (D) implementation of innovative 
                disadvantaged youth employment and training 
                programs, pilot projects, and demonstration 
                projects which further the purposes of this 
                title; and
                  (E) support for a common management 
                information system across employment, training, 
                literacy, and human resource programs as 
                identified in section 103.
          (4) Limitation.--Of the amount reserved by the 
        Governor under paragraph (1)(A), not more than 5 
        percent of the total amount allotted to the State under 
        section 203(b) may be used for administration by the 
        State of programs under this title.
  (b) Within State Allocation.--
          (1) In general.--The Governor of the State shall 
        allocate the remainder of the amount allotted to the 
        State under section 203(b) to workforce development 
        areas designated under section 121, for the purpose of 
        providing services for disadvantaged youth in 
        accordance with section 206.
          (2) Within state formula.--
                  (A) Establishment.--The Governor, through the 
                collaborative process under section 102, and 
                after consultation with local chief elected 
                officials in the local workforce development 
                areas, shall develop a formula for the 
                allocation of the remainder of funds described 
                in paragraph (1) to workforce development 
                areas, taking into account--
                          (i) the relative number of unemployed 
                        individuals residing in areas of 
                        substantial unemployment within each 
                        local workforce development area, as 
                        compared to the total number of such 
                        unemployed individuals residing within 
                        the State;
                          (ii) the relative number of 
                        disadvantaged youth residing within 
                        each local workforce development area 
                        as compared to the total number of 
                        disadvantaged youth residing within the 
                        State;
                          (iii) the relative excess number of 
                        unemployed individuals who reside 
                        within each local workforce development 
                        area as compared to the total excess 
                        number of unemployed individuals 
                        residing within the State; and
                          (iv) such additional factors as are 
                        determined appropriate by the State.
                  (B) Additional factors.--In establishing such 
                formula, the Governor shall ensure that--
                          (i) funds are distributed equitably 
                        throughout the State;
                          (ii) factors described in 
                        subparagraph (A) do not receive 
                        disproportionate weighting; and
                          (iii) such formula protects local 
                        workforce development areas from 
                        significant funding shifts from year to 
                        year.

SEC. 205. ELIGIBILITY FOR SERVICES.

  (a) In General.--Except as provided in subsection (c), an 
individual shall be eligible to participate in the program 
under this title if such individual--
          (1)(A) is age 16 through 21; or
          (B) if provided in the local plan developed pursuant 
        to section 122(d)(1), is age 14 through 24; 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) Priority for Service.--
          (1) Priority.--Of the disadvantaged youth described 
        in subsection (a), priority for service shall be given 
        to school dropouts and to other hard-to-serve youth.
          (2) Definition.--For the purposes of this title, the 
        term ``hard-to-serve youth'' includes--
                  (A) Individuals who are school dropouts.
                  (B) Individuals who are basic skills 
                deficient.
                  (C) Individuals with educational attainment 
                that is 1 or more grade levels below the grade 
                level appropriate to the age of the 
                individuals.
                  (D) Individuals who are pregnant or 
                parenting.
                  (E) Individuals  with  disabilities,  
                including  a  learning  disability.
                  (F) Individuals who are homeless or run-away 
                youth.
                  (G) Individuals who are offenders.
                  (H) Other disadvantaged youth who face 
                serious barriers to employment as identified by 
                the local workforce development area.
  (c) 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), if such individuals are within one or more 
categories described in subparagraphs (A) through (G) of 
subsection (b)(2).

SEC. 206. PROGRAM DESIGN.

  (a) Program Design.--
          (1) Essential elements.--The programs under this 
        title shall--
                  (A) provide an objective assessment of the 
                academic levels, 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), supportive service needs, and 
                developmental needs of such participants, 
                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;
                  (B) develop service strategies for each 
                participant 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;
                  (C) integrate academic, occupational, and 
                work-based learning opportunities;
                  (D) provide comprehensive guidance and 
                counseling;
                  (E) provide postsecondary educational or 
                training opportunities, where appropriate;
                  (F) involve employers and parents in the 
                design and implementation of programs; and
                  (G) provide adult mentoring.
          (2) Additional requirements.--
                  (A) Information and referrals.--Each 
                workforce development 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 workforce 
                        development 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.--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.
  (b) Authorized Services.--Subject to the limitations 
contained in subsection (d), services which may be made 
available to youth with funds provided under this title may 
include--
          (1) direct training services, including--
                  (A) the services described in section 
                314(c)(4);
                  (B) tutoring and study skills training;
                  (C) alternative high school services within 
                programs that meet the requirements of section 
                141(11)(A);
                  (D) instruction leading to high school 
                completion or the equivalent;
                  (E) mentoring;
                  (F) paid and unpaid work experience, 
                including summer employment opportunities that 
                are directly linked to academic, occupational, 
                and workbased learning opportunities, which may 
                include limited internships in the private 
                sector;
                  (G) training or education that is combined 
                with community and youth service opportunities, 
                including youth corps programs; and
                  (H) such other training and transition 
                services that assist disadvantaged youth in 
                making the transition to employment or to 
                postsecondary education or training, as 
                determined appropriate by the local workforce 
                development area.
          (2) training-related and supportive services, 
        including--
                  (A) assessment, outreach, staff development, 
                job development, and job search assistance 
                activities;
                  (B) drug and alcohol abuse counseling and 
                referral;
                  (C) services encouraging parental, spousal, 
                and other significant adult involvement in the 
                program of the participant;
                  (D) incentives and bonuses based on 
                attendance and performance in a program; and
                  (E) peer-centered activities encouraging 
                responsibility and other positive social 
                behaviors during non-school hours.
  (c) Additional Requirements.--
          (1) Strategies and services.--In developing service 
        strategies and designing services for the program under 
        this part, the workforce development area and local 
        board shall take into consideration exemplary program 
        strategies and practices, including the strategies and 
        practices of model programs selected for replication 
        under part D of title IV.
          (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 workforce 
                        development 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 
                        workforce development 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 
                        workforce development 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) Work-related activities.--Preemployment 
                and work maturity skills training, summer 
                employment, job search assistance, job club 
                activities, and other work-related activities 
                authorized by this title shall be accompanied 
                by occupational and academic learning 
                opportunities designed to increase the basic 
                education and occupational skills of a 
                participant. The additional services may be 
                provided, concurrently or sequentially, under 
                other education and training programs.
                  (B) On-the-job training.--
                          (i) Formal program or structured job 
                        training.--On-the-job training 
                        authorized under this title 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.
                          (ii) 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) Follow-up, counseling and supportive services.--
        Counseling and supportive services provided under this 
        title may be provided to a participant after the date 
        on which the participant completes the program.
          (6) Volunteers.--The workforce development 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.

SEC. 207. SELECTION OF SERVICE PROVIDERS.

  From funds made available under section 204(b) to a local 
workforce development area, the local board for such local area 
shall award grants, on a competitive basis, to eligible 
providers to carry out the disadvantaged youth programs 
described in section 206.

SEC. 208. LINKAGES.

  (a) Educational Linkages.--In conducting the program assisted 
under this part, workforce development 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, workforce development 
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) title I of the Personal Responsibility and Work 
        Opportunity Reconciliation Act of 1996;
          (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), workforce development 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.

 [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.

                  [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 bein 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.

                   [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 thissection 
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).

              [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 of 
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 III--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

SEC. 301. PURPOSE.

  The purpose of this title is to establish a high-quality, 
efficient system of employment, job training, and related 
assistance that--
          (1) provides individuals with choice in the selection 
        of employment and training options that will facilitate 
        the transition of such individuals into productive, 
        high skills, private sector jobs;
          (2) provides quality training of such individuals for 
        the 21st century; and
          (3) drives resources and authority to States and 
        local communities for the design of job training 
        programs.

       PART A--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

SEC. 311. AUTHORIZATION.

  (a) In General.--In the case of each State that in accordance 
with the requirements of sections 101 and 102 submits to the 
Secretary of Labor (hereinafter in this title referred to as 
the ``Secretary'') a State plan, the Secretary shall provide 
funds to the State for the purpose of providing employment, job 
training, and related assistance for adults and dislocated 
workers in the State, in accordance with this title.
  (b) Amount.--The funds described in subsection (a) shall 
consist of the allotments determined for the State under 
section 312.

SEC. 312. ALLOTMENT AMONG STATES.

  (a) In General.--Of the amount appropriated pursuant to 
section 3(a)(2) to carry out this title for a fiscal year, the 
Secretary--
          (1) shall allot the total amount appropriated 
        pursuant to section 3(a)(2)(A) in accordance with 
        subsection (b)(1); and
          (2)(A) shall allot 80 percent of the amount 
        appropriated pursuant to section 3(a)(2)(B) in 
        accordance with the subsection (b)(2); and
          (B) shall reserve the remainder of the amount 
        appropriated pursuant to section 3(a)(2)(B) for use 
        under part B.
  (b) Allotment Among States.--
          (1) Adult employment and training.--
                  (A) Reservation for outlying areas.--
                          (i) In general.--Of the amount 
                        allotted under subsection (a)(1), the 
                        Secretary shall allot not more than one 
                        quarter of one percent among the 
                        outlying areas.
                          (ii) Applicability of additional 
                        requirements.--Of the amount allotted 
                        under clause (i), the Secretary shall 
                        award grants to Guam, American Samoa, 
                        the Commonwealth of the Northern 
                        Mariana Islands, and the freely 
                        associated states in accordance with 
                        the requirements of section 203(b)(1).
                  (B) States.--
                          (i) In general.--After determining 
                        the amount to be allotted under 
                        subparagraph (A), the Secretary shall 
                        allot the remaining amount to the 
                        States pursuant to the formula 
                        contained in clause (ii).
                          (ii) Formula.--Subject to the 
                        provisions of clause (iii), of the 
                        amounts allotted to States for adult 
                        employment and training under this 
                        title for each fiscal year--
                                  (I) 33\1/3\ percent shall be 
                                allotted on the basis of the 
                                relative number of unemployed 
                                individuals residing in areas 
                                of substantial unemployment 
                                within each State as compared 
                                to the total number of such 
                                unemployed individuals in all 
                                such areas of substantial 
                                unemployment in all States;
                                  (II) 33\1/3\ percent shall be 
                                allotted on the basis of the 
                                relative excess number of 
                                unemployed individuals within 
                                each State as compared to the 
                                total excess number of 
                                unemployed individuals in all 
                                States; and
                                  (III) 33\1/3\ percent shall 
                                be allotted on the basis of the 
                                relative number of economically 
                                disadvantaged adults within 
                                each State as compared to the 
                                total number of economically 
                                disadvantaged adults in all 
                                States.
                          (iii) Minimum allotment.--
                                  (I) 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.
                                  (II) Maximum percentage.--No 
                                State shall be allotted more 
                                than 130 percent of its 
                                allotment percentage for the 
                                fiscal year preceding the 
                                fiscal year for which the 
                                determination is made.
                          (iv) Small state minimum allotment.--
                        No State shall receive less than one-
                        quarter of one percent of the amount 
                        available under this subparagraph for a 
                        fiscal year. Amounts necessary for 
                        increasing such payments to States to 
                        comply with the preceding sentence 
                        shall be obtained by ratably reducing 
                        the amounts to be paid to other States.
          (2) Dislocated workers.--
                  (A) Reservation for outlying areas.--
                          (i) In general.--Of the amount 
                        allotted under subsection (a)(2)(A), 
                        the Secretary shall allot not more than 
                        one quarter of one percent among the 
                        outlying areas.
                          (ii) Applicability of additional 
                        requirements.--Of the amount allotted 
                        under clause (i), the Secretary shall 
                        award grants to Guam, American Samoa, 
                        the Commonwealth of the Northern 
                        Mariana Islands, and the freely 
                        associated states in accordance with 
                        the requirements of section 203(b)(1).
                  (B) States.--
                          (i) In general.--After determining 
                        the amount to be allotted under 
                        subparagraph (A), the Secretary shall 
                        allot the remaining amount to the 
                        States pursuant to the formula 
                        contained in clause (ii).
                          (ii) Formula.--Subject to the 
                        provisions of clause (iii), of the 
                        amounts allotted to States for 
                        dislocated worker employment and 
                        training under this title for each 
                        fiscal year--
                                  (I) 33\1/3\ percent 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;
                                  (II) 33\1/3\ percent 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 
                                subclause, 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); and
                                  (III) 33\1/3\ percent 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.
                          (iii) Minimum allotment.--
                                  (I) 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.
                                  (II) Maximum percentage.--No 
                                State shall be allotted more 
                                than 130 percent of its 
                                allotment percentage for the 
                                fiscal year preceding the 
                                fiscal year for which the 
                                determination is made.
                          (iv) Small state minimum allotment.--
                        No State shall receive less than one-
                        quarter of one percent of the amount 
                        available under this subparagraph for a 
                        fiscal year. Amounts necessary for 
                        increasing such payments to States to 
                        comply with the preceding sentence 
                        shall be obtained by ratably reducing 
                        the amounts to be paid to other States.

SEC. 313. ALLOCATION WITHIN STATES.

  (a) Reservations for State Activities.--
          (1) Adult employment and training.--
                  (A) In general.--The Governor of the State 
                shall reserve not more than 15 percent of the 
                total amount allotted to the State under 
                section 312(b)(1) for a fiscal year for 
                statewide activities for employment, job 
                training, and related assistance for adults.
                  (B) Allowable activities.--Such activities 
                may include--
                          (i) subject to subparagraph (C), 
                        administration by the State of programs 
                        under this title;
                          (ii) capacity building and technical 
                        assistance to local workforce 
                        development areas, full service 
                        employment and training delivery 
                        systems, and service providers 
                        including the development and training 
                        of staff and the development of 
                        exemplary program activities;
                          (iii) incentives for program 
                        coordination and integration, 
                        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, 
                        and the establishment and 
                        implementation of programs targeted to 
                        empowerment zones;
                          (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 
                        full service employment and training 
                        delivery system established in 
                        accordance with section 123;
                          (vii) support for a common management 
                        information system across employment, 
                        training, literacy, and human resource 
                        programs as identified in section 103;
                          (viii) support for the identification 
                        of eligible training providers as 
                        required under section 124; and
                          (ix) implementation of innovative 
                        programs for displaced homemakers and 
                        programs to increase the number of 
                        individuals training and placed in 
                        nontraditional employment.
                  (C) Limitation.--Of the amount reserved by 
                the Governor under subparagraph (A) not more 
                than 5 percent of the total amount allotted to 
                the State under section 312(b)(1) for a fiscal 
                year may be used for administration by the 
                State of programs under this part.
          (2) Dislocated workers employment and training.--
                  (A) In general.--The Governor of the State 
                shall reserve not more than 30 percent of the 
                total amount allotted to the State under 
                section 312(b)(2) for a fiscal year for 
                statewide activities for employment, job 
                training, and related assistance for dislocated 
                workers.
                  (B) Required activities.--Such activities 
                shall include--
                          (i) rapid response activities carried 
                        out by a designated State dislocated 
                        worker unit, working in conjunction 
                        with the local workforce development 
                        board and the chief elected official in 
                        an affected local workforce development 
                        area; and
                          (ii) additional assistance to areas 
                        that experience disasters, mass layoffs 
                        or plant closings, or other events that 
                        precipitate substantial increases in 
                        the number of unemployed workers, 
                        working in conjunction with the local 
                        workforce development board and the 
                        chief elected official in affected 
                        local workforce development areas.
                  (C) Discretionary activities.--Such 
                activities may include those activities 
                described in paragraph (1)(B).
                  (D) Limitation.--Of the amount reserved by 
                the Governor under subparagraph (A) not more 
                than 10 percent of the total amount allotted to 
                the State under section 312(b)(2) for a fiscal 
                year may be used for activities described in 
                paragraph (1)(B) and of that amount not more 
                than 5 percent of the total amount allotted to 
                the State under section 312(b)(2) for a fiscal 
                year may be used for administration by the 
                State of programs under this part.
  (b) Within State Allocation.--
          (1) Allocation.--
                  (A) In general.--The Governor of the State 
                shall allocate the remainder of the amounts 
                allotted to the State under section 312 to 
                workforce development areas designated under 
                section 121 for the purpose of providing a 
                single system of employment and training 
                services for adults and dislocated workers in 
                accordance with section 314.
                  (B) Additional requirements.--(i) Funds 
                allocated under paragraph (2)(B), shall be used 
                by a local workforce development area to 
                contribute proportionately to the costs of the 
                local full service employment and training 
                delivery system, and to pay for services 
                provided to adults, in the local area, 
                consistent with section 314.
                  (ii) Funds allocated under paragraph (2)(C), 
                shall be used by a local workforce development 
                area to contribute proportionately to the costs 
                of the local full service employment and 
                training delivery system, and to pay for 
                services provided to dislocated workers, in the 
                local area, consistent with section 314.
          (2) Methods.--
                  (A) In general.--The Governor, through the 
                collaborative process under section 102, and 
                after consultation with local chief elected 
                officials in the local workforce development 
                areas, shall allocate the remainder of funds 
                described in subsection (a)(1)(A) for adult 
                employment and training in accordance with 
                subparagraph (B), and the funds described in 
                subsection (a)(2)(A) for dislocated workers in 
                accordance with subparagraph (C).
                  (B) Adult employment and training formula.--
                In allocating the funds for adult employment 
                and training, the individuals described in 
                subparagraph (A) shall take into account--
                          (i) the relative number of unemployed 
                        individuals residing in local areas of 
                        substantial unemployment within each 
                        workforce development area in the State 
                        as compared to the total number of such 
                        unemployed individuals in all such 
                        areas of substantial unemployment in 
                        the State;
                          (ii) the relative excess number of 
                        unemployed individuals within each 
                        local workforce development area of the 
                        State as compared to the total excess 
                        number of unemployed individuals in the 
                        State;
                          (iii) the relative number of 
                        economically disadvantaged adults 
                        within each workforce development area 
                        of the State as compared to the total 
                        number of economically disadvantaged 
                        adults in the State; and
                          (iv) such other factors as determined 
                        appropriate by the State.
                  (C) Dislocated worker formula.--In allocating 
                funds for dislocated workers, individuals 
                described in subparagraph (A) shall take into 
                account--
                          (i) the relative number of unemployed 
                        individuals residing in local areas of 
                        substantial unemployment within each 
                        workforce development area in the State 
                        as compared to the total number of such 
                        unemployed individuals in all such 
                        areas of substantial unemployment in 
                        the State;
                          (ii) the relative excess number of 
                        unemployed individuals within each 
                        local workforce development area of the 
                        State as compared to the total excess 
                        number of unemployed individuals in the 
                        State;
                          (iii) the relative number of 
                        individuals who have been unemployed 
                        for 15 weeks or more within each 
                        workforce development area of the State 
                        as compared to the total number of such 
                        unemployed individuals in the State; 
                        and
                          (iv) such other factors as determined 
                        appropriate by the State, which may 
                        include--
                                  (I) insured unemployment 
                                data;
                                  (II) unemployment 
                                concentrations;
                                  (III) plant closing and mass 
                                layoff data;
                                  (IV) declining industries 
                                data;
                                  (V) farmer-rancher economic 
                                hardship data; and
                                  (VI) long-term unemployment 
                                data.
          (3) Additional factors.--In establishing the formulas 
        described in paragraph (2), the Governor shall ensure 
        that--
                  (A) such formulas distribute funds equitably 
                throughout the State;
                  (B) no one factor described in paragraph (2) 
                receives disproportionate weighting; and
                  (C) such formulas protect local workforce 
                development areas from significant funding 
                shifts from year to year.
          (4) Transfer authority.--A local workforce 
        development area is authorized to transfer up to 20 
        percent of the funds received under this subsection 
        between adult employment and training and dislocated 
        worker allocations if such transfer is approved by the 
        Governor.

SEC. 314. USE OF AMOUNTS.

  (a) Core Services.--Amounts allocated for adults under 
section 313(b)(2)(B) and for dislocated workers under section 
313(b)(2)(C) shall be used to provide core services described 
in section 123(d) to adults and dislocated workers, 
respectively, through a full service employment and training 
delivery system in accordance with such section.
  (b) Intensive Services.--
          (1) In general.--Amounts allocated for adults under 
        section 313(b)(2)(B) and for dislocated workers under 
        section 313(b)(2)(C) shall be used to provide intensive 
        services to adults and dislocated workers, 
        respectively--
                  (A)(i) who are unable to obtain employment 
                through core services under subsection (a); and
                  (ii) who have been determined to be in need 
                of more intensive services in order to gain 
                employment; or
                  (B)(i) who are employed but are economically 
                disadvantaged despite such employment; and
                  (ii) who are determined to be in need of such 
                intensive services in order to gain employment 
                that allows for self-sufficiency.
          (2) Delivery of services.--Such intensive services 
        shall be provided--
                  (A) directly through full service eligible 
                providers identified pursuant to section 
                123(c); or
                  (B) through contracts through full service 
                employment and training delivery systems 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 
                participant to achieve the employment goal.
                  (C) Group counseling.
                  (D) Individual counseling and career 
                planning.
                  (E) Case management for participants 
                receiving training services under subsection 
                (c).
                  (F) Follow-up services for participants 
                placed in training or employment, for up to 1 
                year, to assist in retention or advancement in 
                employment.
  (c) Training Services.--
          (1) In general.--Amounts allocated for adults under 
        section 313(b)(2)(B) and for dislocated workers under 
        section 313(b)(2)(C) shall be used to provide training 
        services to adults and dislocated workers, 
        respectively--
                  (A) who are unable to obtain employment 
                through core services under subsection (a);
                  (B) who are in need of training services in 
                order to gain employment as a result of 
                determinations made through--
                          (i) initial assessments under 
                        subsection (a); or
                          (ii) comprehensive and specialized 
                        assessments under subsection (b)(3)(A); 
                        or
                  (C)(i) who are employed but are economically 
                disadvantaged despite such employment; and
                  (ii) who are determined to be in need of such 
                training services in order to gain employment 
                that allows for self-sufficiency.
          (2) Participant qualification.--
                  (A) Requirements.--Except as provided in 
                subparagraph (B), provision of such training 
                services shall be limited to participants who--
                          (i) are unable to obtain other grant 
                        assistance for such services, including 
                        Federal Pell Grants established under 
                        title IV of the Higher Education Act of 
                        1965 (20 U.S.C. 1070 et seq.); or
                          (ii) require assistance beyond the 
                        assistance made available under other 
                        grant assistance programs, including 
                        Federal Pell Grants.
                  (B) Reimbursements.--Training services may be 
                provided under this subsection to an individual 
                who otherwise meets the requirements of this 
                subsection while an application for a Federal 
                Pell Grant or other grant assistance is 
                pending, except that if such individual is 
                subsequently awarded a Federal Pell Grant or 
                other grant assistance, appropriate 
                reimbursement shall be made to the local 
                workforce development area from such Federal 
                Pell Grant or other grant assistance.
          (3) Provider qualification.--Such training services 
        shall be provided through training providers identified 
        under in accordance with section 124.
          (4) Types of services.--Such 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, which may include 
                cooperative education programs.
                  (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.
          (5) Individual choice requirements.--
                  (A) In general.--All training services under 
                this section shall be provided through service 
                delivery methods that, to the extent 
                practicable, maximize consumer choice in the 
                selection of eligible providers of training 
                services.
                  (B) Information on eligible providers.--Each 
                local workforce development board, through the 
                full service employment and training delivery 
                system, shall make available--
                          (i) the list of eligible providers of 
                        training services required under 
                        section 124, with a description of the 
                        training courses available from such 
                        providers and a list of the names of 
                        on-the-job training providers; and
                          (ii) the performance information 
                        described in section 124 relating to 
                        such providers.
                  (C) Purchase of services.--An individual 
                eligible for training services under this 
                section may select an eligible provider of 
                training services from the list of providers 
                described in subparagraph (B)(i). Upon such 
                selection, the full service eligible provider 
                shall, to the extent practicable, refer such 
                individual to the selected eligible provider of 
                training services and arrange for payment for 
                such services.
          (6) Additional requirements.--
                  (A) Use of skill grants.--
                          (i) In general.--Except as provided 
                        in clause (ii) and clause (iii), 
                        training services under this section 
                        shall be provided through the use of 
                        skill grants in accordance with this 
                        subsection, and shall be distributed to 
                        eligible individuals through full 
                        service eligible providers or 
                        affiliated sites as described in 
                        section 123.
                          (ii) Exceptions.--Training services 
                        authorized under this title may be 
                        provided pursuant to a contract for 
                        services in lieu of a skill grant if 
                        the requirements of paragraph (5) are 
                        met and 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 qualified providers 
                                of 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 qualified providers of 
                                training services 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.
                          (iii) Transition.--Each State shall, 
                        not later than three years after the 
                        date of the enactment of the 
                        Employment, Training, and Literacy 
                        Enhancement Act of 1997, fully 
                        implement the requirements of clause 
                        (i). Nothing in this Act shall prohibit 
                        a State from beginning such 
                        implementation at an earlier date.
                  (B) Linkage to occupations in demand.--
                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, except that a local workforce 
                development board may approve training in 
                occupations determined by the local board to be 
                in sectors of the economy which have a high 
                potential for sustained demand or growth in the 
                local workforce development area.
  (d) Additional Uses of Amounts.--
          (1) Supportive services.--Amounts allocated for 
        adults under section 313(b)(2)(B) and for dislocated 
        workers under section 313(b)(2)(C) may be used to 
        provide supportive services for adults and dislocated 
        workers, respectively--
                  (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 313(b) may be used to provide needs-
                related payments to adults and dislocated 
                workers who are unemployed and do not qualify 
                for (or have ceased to qualify for) 
                unemployment compensation for the purpose of 
                enabling such individuals to participate in 
                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 may 
                be eligible to receive needs-related payments 
                under this paragraph only if such worker was 
                enrolled in training by the end of the 13th 
                week of the worker's most recent layoff, 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.--From funds allocated to local workforce 
development areas for adult employment and training under 
section 313(b)(1)(B)(i), priority shall be given to welfare 
recipients and other economically disadvantaged individuals 
with multiple barriers toemployment for receipt of intensive 
services and training services provided under subsections (b) and (c) 
of section 314, respectively.

                       PART B--NATIONAL PROGRAMS

SEC. 321. NATIONAL EMERGENCY GRANTS.

  (a) In General.--From the amount reserved under section 
312(a)(2), the Secretary of Labor is authorized to award 
national emergency grants in a timely manner--
          (1) to an entity described in subsection (b) to 
        provide employment and training assistance to workers 
        affected by major economic dislocations, such as plant 
        closures, mass layoffs, or closures and realignments of 
        military installations; and
          (2) to provide assistance to the Governor of any 
        State within the boundaries of which is an area that 
        has suffered an emergency or a major disaster as 
        defined in paragraphs (1) and (2), respectively, of 
        section 102 of The Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5122(1) and 
        (2)) (referred to in this section as the ``disaster 
        area'').
  (b) Employment and Training Assistance Requirements.--
          (1) Application.--To be eligible to receive a grant 
        under subsection (a)(1), an entity shall submit an 
        application to the Secretary of Labor at such time, in 
        such manner, and accompanied by such information, as 
        the Secretary may reasonably require.
          (2) Eligible entity.--For purposes of this section, 
        the term `entity' means a State, local workforce 
        development board, employer or employer association, 
        worker-management transition assistance committee or 
        other employer-employee entity, representative of 
        employees, community development corporation or 
        community-based organization, or an industry consortia.
  (c) Disaster Relief Employment Assistance Requirements.--
          (1) In general.--Funds made available under 
        subsection (a)(2)--
                  (A) shall be used exclusively to provide 
                employment on projects that provide food, 
                clothing, shelter, and other humanitarian 
                assistance for disaster victims, and projects 
                regarding demolition, cleaning, repair, 
                renovation, and reconstruction of damaged and 
                destroyed structures, facilities, and lands 
                located within the disaster area; and
                  (B) may be expended through public and 
                private agencies and organizations engaged in 
                such projects.
          (2) Eligibility.--An individual shall be eligible to 
        be offered disaster relief 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. 322. SKILL UPGRADING PROJECTS IN ENTERPRISE ZONES OR EMPOWERMENT 
                    COMMUNITIES.

  From funds made available under section 312(a)(2), the 
Secretary of Labor is authorized to award grants to assist 
projects that provide training to upgrade the skill of employed 
workers who reside and are employed in enterprise zones or 
empowerment communities.

               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.]

   PART A--EMPLOYMENT AND TRAINING PROGRAMS FOR NATIVE AMERICANS AND 
                    MIGRANT AND SEASONAL FARMWORKERS

SEC. 401. NATIVE AMERICAN PROGRAMS.

  (a) Purpose.--
          (1) In general.--The purpose of this section is to 
        support employment and training activities for Indian, 
        Alaska Native, and Native Hawaiian individuals in 
        order--
                  (A) to develop more fully the academic, 
                occupational, and literacy skills of such 
                individuals;
                  (B) to make such individuals more competitive 
                in the workforce; and
                  (C) to promote the economic and social 
                development of Indian, Alaska Native, and 
                Native Hawaiian communities in accordance with 
                the goals and values of such communities.
          (2)  Indian policy.--All programs assisted under this 
        section shall be administered in a manner consistent 
        with theprinciples of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450 et seq.) and the government-to-
government relationship between the Federal Government and Indian 
tribal governments.
  (b) Definitions.--As used in this section:
          (1) Alaska native.--The term ``Alaska Native'' means 
        a Native as such term is defined in section 3(b) of the 
        Alaska Native Claims Settlement Act (43 U.S.C. 
        1602(b)).
          (2) Indian, indian tribe, and tribal organization.--
        The terms ``Indian'', ``Indian tribe'', and ``tribal 
        organization'' have the meanings given such terms in 
        subsections (d), (e), and (l), respectively, of section 
        4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b).
          (3) Native hawaiian and native hawaiian 
        organization.--The terms ``Native Hawaiian'' and 
        ``Native Hawaiian organization'' have the meanings 
        given such terms in paragraphs (1) and (3), 
        respectively, of section 9212 of the Native Hawaiian 
        Education Act (20 U.S.C. 7912).
  (c) Program Authorized.--The Secretary of Labor shall make 
grants to, or enter into contracts or cooperative agreements 
with, Indian tribes, tribal organizations, Alaska Native 
entities, Indian-controlled organizations serving Indians, or 
Native Hawaiian organizations to carry out the authorized 
activities described in subsection (d).
  (d) Authorized Activities.--
          (1) In general.--Funds made available under this 
        section shall be used to carry out the activities 
        described in paragraphs (2) and (3) that--
                  (A) are consistent with this section; and
                  (B) are necessary to meet the needs of 
                Indians or Native Hawaiians preparing to enter, 
                renter, or retain unsubsidized employment.
          (2) Employment and training activities and 
        supplemental services.--
                  (A) In general.--Funds made available under 
                this section shall be used for--
                          (i) comprehensive workforce and 
                        career development activities for 
                        Indians or Native Hawaiians; or
                          (ii) supplemental services for Indian 
                        or Native Hawaiian youth on or near 
                        Indian reservations and in Oklahoma, 
                        Alaska, or Hawaii.
                  (B) Special rule.--Notwithstanding any other 
                provision of this section, individuals who were 
                eligible to participate in programs under 
                section 401 of the Job Training Partnership Act 
                (29 U.S.C. 1671) (as such section was in effect 
                on the day before the date of enactment of this 
                Act) shall be eligible to participate in an 
                activity assisted under subparagraph (A)(i).
  (e) Program Plan.--In order to receive a grant or enter into 
a contract or cooperative agreement under this section an 
entity described in subsection (c) shall submit to the 
Secretary of Labor a plan that describes a 2-year strategy for 
meeting the needs of Indian or Native Hawaiian individuals, as 
appropriate, in the area served by such entity. Such plan--
          (1) shall be consistent with the purposes of this 
        section;
          (2) shall identify the population to be served;
          (3) shall identify the education and employment needs 
        of the population to be served and the manner in which 
        the services to be provided will strengthen the ability 
        of the individuals served to obtain or retain 
        unsubsidized employment;
          (4) shall describe the services to be provided and 
        the manner in which such services are to be integrated 
        with other appropriate services; and
          (5) shall describe the goals and benchmarks to be 
        used to assess the performance of entities in carrying 
        out the activities assisted under this section.
  (f) Consolidation of Funds.--Each entity receiving assistance 
under this section may consolidate such assistance with 
assistance received from related programs in accordance with 
the provisions of the Indian Employment, Training and Related 
Services Demonstration Act of 1992 (25 U.S.C 3401 et seq.).
  (g) Nonduplicative and Nonexclusive Services.--Nothing in 
this section shall be construed--
          (1) to limit the eligibility of any entity described 
        in subsection (c) to participate in any activity 
        offered by a State or local entity under this Act; or
          (2) to preclude or discourage any agreement, between 
        any entity described in subsection (c) and any State or 
        local entity, to facilitate the provision of services 
        by such entity or to the population served by such 
        entity.
  (h) Administrative Provisions.--
          (1) Organizational unit established.--The Secretary 
        of Labor shall designate a single organizational unit 
        that shall have as its primary responsibility the 
        administration of the activities authorized under this 
        section.
          (2) Regulations.--The Secretary of Labor shall 
        consult with the entities described in subsection 
        (c)(1) in establishing regulations to carry out this 
        section, including performance measures for entities 
        receiving assistance under such subsection, taking into 
        account the economic circumstances of such groups, and 
        in developing a funding distribution plan that takes 
        into consideration previous levels of funding.
          (3) Technical assistance.--The Secretary of Labor, 
        through the unit established under paragraph (1), are 
        authorized to provide technical assistance to entities 
        described in subsection (c) that receive assistance 
        under this section to enable such entities to improve 
        the workforce and career development activities 
        provided by such entities.

SEC. 402. MIGRANT AND SEASONAL FARMWORKER PROGRAM.

  (a) In General.--The Secretary of Labor shall make grants to, 
or enter into contracts with, eligible entities to carry out 
the activities described in subsection (d).
  (b) Eligible Entities.--To be eligible to receive a grant or 
enter into a contract under this section, an entity shall have 
an understanding of the problems of migrant farmworkers and 
seasonal farmworkers, a familiarity with the area to be served, 
and the ability to demonstrate a capacity to administer 
effectively a diversified program of workforce and career 
development activities for migrant farmworkers and seasonal 
farmworkers.
  (c) Program Plan.--
          (1) In general.--To be eligible to receive a grant or 
        enter into a contract under this section, an entity 
        described in subsection (b) shall submit to the 
        Secretary of Labor a plan that describes a 2-year 
        strategy for meeting the needs of migrant farmworkers 
        and seasonal farmworkers and their dependents in the 
        area to be served by such entity.
          (2) Contents.--Such plan shall--
                  (A) identify the education and employment 
                needs of the population to be served and the 
                manner in which the services to be provided 
                will strengthen the ability of the eligible 
                farmworkers and dependents to obtain or be 
                retained in unsubsidized employment or 
                stabilize their unsubsidized employment;
                  (B) describe the related assistance and 
                supportive services to be provided and the 
                manner in which such services are to be 
                integrated and coordinated with other 
                appropriate services; and
                  (C) describe the goals and benchmarks to be 
                used to assess the performance of such entity 
                in carrying out the activities assisted under 
                this section.
  (d) Authorized Activities.--Funds made available under this 
section shall be used to carry out comprehensive workforce and 
career development activities and related services for migrant 
farmworkers and seasonal farmworkers which may include 
employment, training, educational assistance, literacy 
assistance, an English literacy program, worker safety 
training, housing, supportive services, and the continuation of 
the case management database on participating migrant 
farmworkers and seasonal farmworkers.
  (e) Consultation with Governors and Local Boards.--In making 
grants and entering into contracts under this section, the 
Secretary of Labor shall consult with the Governors and local 
boards of the States in which the eligible entities will carry 
out the activities described in subsection (d).
  (f) Regulations.--The Secretaries shall consult with migrant 
and seasonal farmworker groups and States in establishing 
regulations to carry out this section, including performance 
measures for eligible entities which take into account the 
economic circumstances of migrant farmworkers and seasonal 
farmworkers.
  (g) Definitions.--As used in this section:
          (1) Migrant farmworker.--The term ``migrant 
        farmworker'' means a seasonal farmworker whose farm 
        work requires travel such that the worker is unable to 
        return to a permanent place of residence within the 
        same day.
          (2) Seasonal farmworker.--The term ``seasonal 
        farmworker'' means a person who during the eligibility 
        determination period (12 consecutive months out of 24 
        months prior to application)--
                  (A) has been primarily employed in farm work 
                that is characterized by chronic unemployment 
                or under employment; and
                  (B) is economically disadvantaged at the time 
                of application.

                            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]

                           PART B--JOB CORPS

                          statement of purpose

  Sec. 421. This part maintains a Job Corps for economically 
disadvantaged young men and women which shall operate 
exclusively as a distinct national program carried out in 
collaboration with States and localities, 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 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. There shall be within the Department of Labor a 
``Job Corps''.

                 individuals eligible for the job corps

  Sec. 423. To become an enrollee in the Job Corps, a young man 
or woman must be an eligible youth who--
          (1) has attained age [14] 16 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;
          (2) is economically disadvantaged or is a member of a 
        family which is economically disadvantaged[, and who 
        requires additional education, training, or intensive 
        counseling and related assistance in order to secure 
        and hold meaningful employment, participate 
        successfully in regular school work, qualify for other 
        suitable training programs, or satisfy Armed Forces 
        requirements;];
          (3) is an individual who--
                  (A) is deficient in basic skills;
                  (B) is a school dropout;
                  (C) is homeless or a runaway;
                  (D) is a single parent; or
                  (E) requires additional education, training, 
                or intensive counseling and related assistance 
                in order to secure and hold meaningful 
                employment, participate successfully in regular 
                school work, qualify for other suitable 
                training programs, or satisfy Armed Forces 
                requirements;
          [(3)] (4) is currently living in an environment so 
        characterized by cultural deprivation, a disruptive 
        homelife, or other disorienting conditions as to 
        substantially impair prospects for successful 
        participation in other programs providing needed 
        training, education, or assistance;
          [(4)] (5) is determined, after careful screening as 
        provided for in sections 424 and 425 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)] (6) 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. (a) The Secretary shall prescribe specific 
standards and procedures for the screening and selection of 
applicants for the Job Corps after considering input from 
State, local, and community groups and other interested 
parties. To the extent practicable, these rules shall be 
implemented through arrangements with agencies and 
organizations such as community action agencies, public 
employment offices, full service eligible providers, entities 
administering programs under title II of this Act, professional 
groups, labor organizations, [and agencies] and entities 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 require Job Corps 
applicants to pass background checks, conducted in accordance 
with procedures established by the Secretary, and 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) * * *
          * * * * * * *

                           job corps centers

  Sec. 427. (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. In 
selecting any entity to serve as an operator or to provide 
services for a Job Corps center, the Secretary shall take into 
consideration the previous performance of the entity, if any, 
relating to operating or providing services for a Job Corps 
center.
  (2) In any year, not more than 20 percent of the individuals 
enrolled in the Job Corps may be nonresidential participants. 
In enrolling individuals who are to be nonresidential 
participants, priority shall be given to those eligible 
individuals who are single parents with dependent children. The 
Secretary shall not reduce the number of residential 
participants in Job Corps programs under this part during any 
program year below the number of residential participants 
during program year 1991 in order to increase the number of 
individuals who are nonresidential participants in the Job 
Corps.
  (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) 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.]
  (c) The Secretary may select an entity to operate a Civilian 
Conservation Center on a competitive basis if such a center 
fails to meet performance criteria established by the 
Secretary.
  (d) Notwithstanding any other provision of law, any proceeds 
from the sale of Job Corps center facilities shall be retained 
by the Secretary to carry out the Job Corps program.
          * * * * * * *

                          standards of conduct

  Sec. 430. (a) Within Job Corps centers standards of conduct 
shall be provided and stringently enforced, including a policy 
of zero tolerance for violence and illegal drugs under which 
enrolleeswill receive mandatory terminations for specific 
actions in accordance with regulations issued by the Secretary. As part 
of the zero tolerance policy, drug testing of all students shall be 
required in accordance with procedures established by the Secretary. If 
violations of center standards other than those covered by the zero 
tolerance policy 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.
  (b) To promote the proper moral and disciplinary conditions 
in the Job Corps, the directors of Job Corps centers shall take 
appropriate disciplinary measures against enrollees, including 
dismissal from the Job Corps, subject to expeditious appeal to 
the Secretary.
          * * * * * * *

                      counseling and job placement

  Sec. 432. (a) The Secretary shall counsel and test each 
enrollee at regular intervals to measure progress in 
educational and vocational programs.
  (b) The Secretary shall counsel and test enrollees prior to 
their scheduled terminations to determine their capabilities 
and, based on these capabilities, shall make every effort to 
place them in jobs in the vocation for which they are trained 
or to assist them in attaining further training or education. 
In placing enrollees in jobs, the Secretary shall utilize the 
public employment service system to the fullest extent 
possible.
          * * * * * * *

  experimental and developmental projects and coordination with other 
                                programs

  Sec. 433. (a) * * *
          * * * * * * *
  (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] 
disseminate to Federal, State, and local workforce development 
programs information and best practices 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.
          * * * * * * *

                [Part C--Veterans' Employment Programs]

                  PART C_VETERANS' EMPLOYMENT PROGRAMS

                          [programs authorized

  [Sec. 441. (a)(1)]

SEC. 441. AUTHORIZATION OF PROGRAMS.

  (a) Authorization.--
          (1) In general.--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)] (2) Conduct of programs.--Programs supported 
        under this part 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)] (3) Required activities.--Programs supported 
        under this part 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)]
  (b) Administration of Programs.--
          (1) In general.--The Secretary shall administer 
        programs supported under this part through the 
        Assistant Secretary for Veterans' Employment.
          [(2)] (2) Additional responsibilities.--In carrying 
        out responsibilities under this part, the Assistant 
        Secretary for Veterans' Employment shall--
                  (A) be responsible for the awarding of grants 
                and the distribution of funds under this part 
                and for the establishment of appropriate fiscal 
                controls, accountability, and program-
                performance standards for grant recipients 
                under this part; and
                  (B) consult with the Secretary of Veterans 
                Affairs and take steps to ensure that programs 
                supported under this part 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.

                      [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 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.), 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 D--NATIONAL ACTIVITIES

SEC. 451. RESEARCH, DEMONSTRATION, EVALUATION, AND CAPACITY BUILDING.

  (a) In General.--The Secretary is authorized to establish and 
carry out research, demonstration, evaluation, and capacity 
building activities described in subsections (b) through (f).
  (b) National Partnership and Special Training.--The Secretary 
may award special grants to eligible entities to carry out 
programs that are most appropriately administered at the 
national level. Such activities may include--
          (1) partnership programs 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 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; and
          (2) activities that--
                  (A) address industry-wide skill shortages;
                  (B) meet training needs that are best 
                addressed on a multi-state basis;
                  (C) further the goals of increasing the 
                competitiveness of the United States labor 
                force;
                  (D) 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; or
                  (E) promote and experiment with model 
                activities, pilot projects, and demonstration 
                projects which further the goals and purposes 
                of this Act.
  (c) Research.--The Secretary is authorized to 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 States and localities, to the extent 
practicable, of indicators measuring such self-sufficiency.
  (d) Pilot and Demonstration Programs.--
          (1) In general.--The Secretary is authorized to 
        conduct 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 which may 
        include--
                  (A) the establishment of advanced 
                manufacturing technology skill centers 
                developed through local partnerships of 
                industry, labor, education, community-based 
                organizations, and economic development 
                organizations to meet unmet, high-tech skills 
                of local communities;
                  (B) programs conducted jointly with the 
                Department of Defense to develop training 
                programs utilizing computer-based and other 
                innovative learning technologies;
                  (C) projects that promote the use of distance 
                learning, enabling students to take courses 
                through the use of media technology such as 
                videos, teleconferencing computers, and the 
                Internet;
                  (D) projects that assist in providing 
                comprehensive services to increase the 
                employment rates of out-of-school youth 
                residing in targeted high poverty areas within 
                empowerment zones and enterprise communities;
                  (E) the establishment of partnerships with 
                national organizations with special expertise 
                in developing, organizing, and administering 
                employment and training services for persons 
                with disabilities at the national, State, and 
                local levels; and
                  (F) projects that assist local workforce 
                development areas to develop and implement 
                local self-sufficiency standards to evaluate 
                the degree to which program participants are 
                achieving self-sufficiency.
          (2) Grants and contracts.--The Secretary may award 
        grants and enter into contracts with entities to carry 
        out this subsection.
          (3) Evaluation and effectiveness.--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.
          (4) Special rule.--A demonstration program under this 
        subsection may not be assisted under this subsection 
        for a period of more than 7 years. A pilot program 
        under this subsection may not be assisted under this 
        subsection for a period of more than 3 years.
  (e) Evaluation.--
          (1) Activities.--
                  (A) Job training.--The Secretary shall 
                provide for the continuing evaluation of 
                programs conducted under this Act.
                  (B) Other programs.--The Secretary may 
                conduct evaluations of federally-funded 
                employment-related activities under other 
                provisions of law.
          (2) Techniques.--
                  (A) Methods.--Evaluations conducted under 
                paragraph (1) shall utilize sound statistical 
                methods and techniques for the behavioral and 
                social sciences, including the use of control 
                groups chosen by scientific random assignment 
                methodologies when feasible.
                  (B) Effectiveness.--The Secretary shall 
                evaluate the effectiveness of programs 
                authorized under this Act with respect to--
                          (i) the statutory goals; and
                          (ii) the cost effectiveness and 
                        return-on-investment of such programs 
                        based on the extent to which the 
                        programs--
                                  (I) enhance the employment 
                                and earnings of participants;
                                  (II) reduce income support 
                                costs (including the receipt of 
                                welfare assistance);
                                  (III) improve the employment 
                                competencies of participants in 
                                comparison to comparable 
                                persons who did not participate 
                                in such programs; and
                                  (IV) to the extent feasible, 
                                increase the level of total 
                                employment over the level that 
                                would have existed in the 
                                absence of such programs.
  (f) Technical Assistance, Dissemination, and Replication 
Activities.--The Secretary shall provide, coordinate, and 
support the development of, appropriate training, technical 
assistance, staff development, and other activities, including 
assistance in replicating programs of demonstrated 
effectiveness, to States and localities.

SEC. 452. INCENTIVE GRANTS.

  From amounts authorized to be appropriated pursuant to 
section 3(a)(3) to carry out this part for a fiscal year, the 
Secretary is authorized to award incentive grants to States 
consistent with the requirements of section 156(a).

SEC. 453. UNIFORM REPORTING REQUIREMENTS.

  (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.), 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.

                   [Part E--Labor Market Information]

                    PART E--LABOR MARKET INFORMATION

            [labor market information; availability of funds

  [Sec. 461. (a)]

SEC. 461. LABOR MARKET INFORMATION; AVAILABILITY OF FUNDS.

  (a) Set-Aside of Funds.--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)] (b) Availability for Additional Purpose.--Funds 
available for purposes of this part shall also be available for 
purposes of section [125] 467 (relating to State labor market 
information).
  [(c)] (c) Availability of Other Funds.--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)]

SEC. 462. COOPERATIVE LABOR MARKET INFORMATION PROGRAM.

  (a) Data on Current Employment.--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)] (b) Maintenance of Descriptions of Job Duties and 
Related Information.--The Secretary shall maintain descriptions 
of job duties, training and education requirements, working 
conditions, and characteristics of occupations.
  [(c)] (c) Additional Requirements.--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)]
  (d) Data for Annual Statistical Measure of Labor Market 
Related Economic Hardship.--
          (1) In general.--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)] (2) Household budget data.--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)] (3) Report.--The Secretary shall publish, at 
        least annually, a report relating labor force status to 
        earnings and income.
  [(e)] (e) Statistical Data Relating to Permanent Lay-Offs and 
Plant Closings.--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)]
  (f) Data Relating to Permanent Dislocation of Farmers and 
Ranchers.--
          (1) In general.--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)] (2) Report.--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)]

SEC. 463. SPECIAL FEDERAL RESPONSIBILITIES.

  (a) Review and Application of Labor Market Information.--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) * * *
          * * * * * * *
  [(b)] (b) Integrated Occupational Supply and Demand 
Information System.--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)] (c) Sufficient Funds for Staffing.--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)]

SEC. 464. NATIONAL OCCUPATIONAL INFORMATION COORDINATING COMMITTEE.

  (a) Reservation.--
          (1) In general.--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)] (2) Additional members.--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)] (3) Additional requirement.--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)] (b) Additional Responsibilities.--In addition to its 
responsibilities under the Carl D. Perkins Vocational Education 
Act, the National Occupational Information Coordinating 
Committee shall--
          (1) * * *
          * * * * * * *
  [(c)] (c) Use of Funds.--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.]

SEC. 465. JOB BANK PROGRAM.

  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.

SEC. 466. STATE JOB BANK SYSTEMS.

  (a) In General.--The Secretary may make 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).
  (b) Computerized Data Systems.--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.

SEC. 467. STATE LABOR MARKET INFORMATION PROGRAMS.

  (a) In General.--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) Additional Requirements.--(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) Reimbursements.--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) Combination or Consolidation of Certain Reporting 
Requirements.--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.

           [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 assistance 
        under the State program funded under part A of title IV 
        of the Social Security Act, 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 assistance under the State program 
                funded 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 assistance under the State 
                program funded 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 the 
        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 search 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 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 officials or officials, and 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 United 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 at 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 reimburseable 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 `Wager-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 
        thereof ``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 officer 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.); 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.]
                              ----------                              


                          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.
          [(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.

[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.
  [(g) Designation of State Human Resource Investment Council 
under the Job Training Partnership Act.--(1) The requirements 
in this section shall be satisfied if a State designates the 
State human resource investment council established under title 
VII of the Job Training Partnership Act (in this subsection 
referred to as the ``State Council'') to carry out the duties 
described in subsection (f).
  [(2) Funds under this part may be allotted to the State 
Council to carry out such duties and the other duties of the 
State Council if the Governor and the head of the State agency 
responsible for carrying out programs under this Act agree to 
such an allotment.
  [(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 improvementsrequired 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).

              [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 
individualswho 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.]

        TITLE III--ADULT EDUCATION AND FAMILY LITERACY PROGRAMS

SEC. 301. SHORT TITLE.

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

SEC. 302. STATEMENT OF PURPOSE.

  It is the purpose of this title to assist States and outlying 
areas to provide--
          (1) to adults, the basic educational skills necessary 
        for employment and self-sufficiency; and
          (2) to adults who are parents, the educational skills 
        necessary to be full partners in the educational 
        development of their children.

SEC. 303. DEFINITION.

  For purposes of this title:
          (1) Adult education.--The term ``adult education'' 
        means services or instruction below the postsecondary 
        level for individuals--
                  (A) who have attained 16 years of age;
                  (B) who are not enrolled or required to be 
                enrolled in secondary school under State law; 
                and
                  (C) who--
                          (i) lack sufficient mastery of basic 
                        educational skills to enable the 
                        individuals to function effectively in 
                        society;
                          (ii) do not have a certificate of 
                        graduation from a school providing 
                        secondary education and who have not 
                        achieved an equivalent level of 
                        education; or
                          (iii) are unable to speak, read, or 
                        write the English language.
          (2) Adult education and literacy activities.--The 
        term ``adult education and literacy activities'' has 
        the meaning given such term in section 4 of the 
        Employment, Training, and Literacy Enhancement Act.
          (3) Community-based organization.--The term 
        ``community-based organization'' has the meaning given 
        such term in section 4 of the Employment, Training, and 
        Literacy Enhancement Act.
          (4) Direct and equitable access.--The term ``direct 
        and equitable access'', when used with respect to the 
        requirement in section 313(c)(2), means that--
                  (A) all eligible providers are given the same 
                opportunity to apply for and receive funds 
                under part A; and
                  (B) the same announcement and application 
                process is used for all eligible providers.
          (5) Eligible agency.--The term ``eligible agency'' 
        means--
                  (A) the individual, entity, or agency in a 
                State or an outlying area responsible for 
                administering or setting policies for adult 
                education and literacy services in such State 
                or outlying area pursuant to the law of the 
                State or outlying area; or
                  (B) if no individual, entity, or agency is 
                responsible for administering or setting such 
                policies pursuant to the law of the State or 
                outlying area, the individual, entity, or 
                agency in a State or outlying area responsible 
                for administering or setting policies for adult 
                education and literacy services in such State 
                or outlying area on the date of the enactment 
                of the Employment, Training, and Literacy 
                Enhancement Act of 1997.
          (6) Eligible provider.--The term ``eligible 
        provider'', used with respect to adult education and 
        literacy activities described in section 314(b), means 
        a provider determined to be eligible for assistance in 
        accordance with section 313.
          (7) English literacy program.--The term ``English 
        literacy program'' has the meaning given such term in 
        section 4 of the Employment, Training, and Literacy 
        Enhancement Act.
          (8) Family literacy services.--The term ``family 
        literacy services'' has the meaning given such term in 
        section 4 of the Employment, Training, and Literacy 
        Enhancement Act.
          (9) Individual of limited english proficiency.--The 
        term ``individual of limited English proficiency'' has 
        the meaning given such term in section 4 of the 
        Employment, Training, and Literacy Enhancement Act.
          (10) Individual with a disability.--The terms 
        ``individual with a disability'' and ``individuals with 
        disabilities'' have the meaning given such terms in 
        section 4 of the Employment, Training, and Literacy 
        Enhancement Act.
          (11) Literacy.--The term ``literacy'' has the meaning 
        given such term in section 4 of the Employment, 
        Training, and Literacy Enhancement Act.
          (12) Local educational agency.--The term ``local 
        educational agency'' has the meaning given such term in 
        section 14101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 8801).
          (13) Outlying area.--The term ``outlying area'' has 
        the meaning given such term in section 4 of the 
        Employment, Training, and Literacy Enhancement Act.
          (14) Postsecondary educational institution.--The term 
        ``postsecondary educational institution'' has the 
        meaning given such term in section 4 of the Employment, 
        Training, and Literacy Enhancement Act.
          (15) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (16) State.--The term ``State'' has the meaning given 
        such term in section 4 of the Employment, Training, and 
        Literacy Enhancement Act.

SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated to 
carry out this title such sums as may be necessary for fiscal 
years 1998 through 2003.
  (b) Reservation of Funds for National Leadership 
Activities.--For any fiscal year, the Secretary shall reserve--
          (1) 1.5 percent of the amount appropriated under 
        subsection (a) (but not more than $6,500,000) to carry 
        out section 321; and
          (2) 1.5 percent of the amount appropriated under 
        subsection (a) (but not more than $6,500,000) to 
        establish and carry out the program of national 
        leadership and evaluation activities described in 
        section 322.

                  PART A--GRANTS TO ELIGIBLE AGENCIES

SEC. 311. AUTHORITY TO MAKE GRANTS.

  (a) In General.--In the case of each eligible agency that in 
accordance with section 101 of the Employment, Training, and 
Literacy Enhancement Act submits to the Secretary a plan, the 
Secretary shall make a grant for each fiscal year for which 
such plan is in effect to the eligible agency for the purpose 
specified in subsection (b). The grant shall consist of the 
initial and additional allotments determined for the eligible 
agency under section 312.
  (b) Purpose of Grants.--The Secretary may make a grant under 
subsection (a) only if the applicant involved agrees to expend 
the grant for adult education and literacy activities in 
accordance with the provisions of this part.

SEC. 312. ALLOTMENTS.

  (a) Initial Allotments.--From the sums available for the 
purpose of making grants under this part for any fiscal year, 
the Secretary shall allot to each eligible agency that in 
accordance with section 101 of the Employment, Training, and 
Literacy Enhancement Act submits to the Secretary a plan for 
the year an initial amount as follows:
          (1) $100,000, in the case of an eligible agency of 
        the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, the 
        Republic of the Marshall Islands, the Federated States 
        of Micronesia, and the Republic of Palau.
          (2) $250,000, in the case of any other eligible 
        agency.
  (b) Additional Allotments.--
          (1) In general.--From the remainder available for the 
        purpose of making grants under this part for any fiscal 
        year after the application of subsection (a), the 
        Secretary shall allot to each eligible agency that 
        receives an initial allotment under such subsection an 
        additional amount that bears the same relationship to 
        such remainder as the number of qualifying adults in 
        the State or outlying area of the agency bears to the 
        number of such adults in all States and outlying areas.
          (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 the law of the State or 
                outlying area;
                  (C) does not have a certificate of graduation 
                from a school providing secondary education and 
                has not achieved an equivalent level of 
                education; and
                  (D) is not currently enrolled in secondary 
                school.
  (c) Special Rule.--
          (1) In general.--Using funds not to exceed the amount 
        appropriated and reserved under the Adult Education Act 
        for fiscal year 1997 for the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the 
        Republic of Palau, the Secretary shall award grants, 
        from funds made available under subsections (a) and 
        (b), to Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, the Republic of the Marshall 
        Islands, the Federated States of Micronesia, or the 
        Republic of Palau to carry out activities described in 
        this part in accordance with the provisions of this 
        part that the Secretary determines are not inconsistent 
        with this subsection.
          (2) Award basis.--The Secretary shall award grants 
        pursuant to paragraph (1) on a competitive basis and 
        pursuant to recommendations from the Pacific Region 
        Educational Laboratory in Honolulu, Hawaii.
          (3) Termination of eligibility.--Notwithstanding any 
        other provision of law, the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the 
        Republic of Palau shall not receive any funds under 
        this part for any fiscal year that begins after 
        September 30, 2001.
          (4) Administrative costs.--The Secretary may provide 
        not more than 5 percent of the funds made available for 
        grants under this subsection to pay the administrative 
        costs of the Pacific Region Educational Laboratory 
        regarding activities assisted under this subsection.
  (d) Hold-harmless.--
          (1) In general.--Notwithstanding subsection (a)--
                  (A) for fiscal year 1998, no eligible agency 
                shall receive an allotment that is less than 90 
                percent of the payments made to the State of 
                the agency for fiscal year 1997 for programs 
                for which funds were authorized to be 
                appropriated under section 313 of the Adult 
                Education Act (as such Act was in effect on the 
                day before the date of the enactment of the 
                Employment, Training, and Literacy Enhancement 
                Act of 1997); and
                  (B) for fiscal year 1999 and each succeeding 
                fiscal year, no eligible agency shall receive 
                an allotment that is less than 90 percent of 
                the amount the agency received for the 
                preceding fiscal year for programs under this 
                Act.
          (2) Ratable reduction.--If for any fiscal year the 
        amount available for allotment under this section is 
        insufficient to satisfy the provisions of paragraph 
        (1), the Secretary shall ratably reduce the payments to 
        all eligible agencies, as necessary.
  (e) Reallotment.--The portion of any eligible agency's 
allotment under subsection (a) or (b) for a fiscal year that 
the Secretary determines will not be required for the period 
such allotment is available for carrying out activities under 
this part, shall be available for reallotment from time to 
time, on such dates during such period as the Secretary shall 
fix, to other eligible agencies in proportion to the original 
allotments to such agencies under such subsection for such 
year.

SEC. 313. USE OF FUNDS.

  (a) In General.--Of the sum that is made available under this 
part to an eligible agency for any program year--
          (1) not less than 85 percent shall be made available 
        to award grants in accordance with this section to 
        carry out adult education and literacy activities; and
          (2) not more than 15 percent shall be made available 
        to carry out activities described in section 314(a), of 
        which not more than 5 percentage points, or $50,000, 
        whichever is greater, shall be made available for 
        administrative expenses at the State level (or the 
        level of the outlying area).
  (b) Grants.--
          (1) In general.--Except as provided in paragraph (2), 
        from the amount made available to an eligible agency 
        for adult education and literacy under subsection 
        (a)(1) for a program year, such agency shall award 
        grants, on a competitive basis, to local educational 
        agencies, correctional education agencies, community-
        based organizations of demonstrated effectiveness, 
        volunteer literacy organizations, libraries, public or 
        private nonprofit agencies, postsecondary educational 
        institutions, public housing authorities, and other 
        nonprofit institutions, that have the ability to 
        provide literacy services to adults and families, or 
        consortia of agencies, organizations, or institutions 
        described in this subsection, to enable such agencies, 
        organizations, institutions, and consortia to carry out 
        adult education and literacy activities.
          (2) Consortia.--An eligible agency may award a grant 
        under this section to a consortium that includes a 
        provider described in paragraph (1) and a for-profit 
        agency, organization, or institution, if such agency, 
        organization, or institution--
                  (A) can make a significant contribution to 
                carrying out the objectives of this title; and
                  (B) enters into a contract with such provider 
                to carry out adult education and literacy 
                activities.
  (c) Grant Requirements.--
          (1) Required local activities.--An eligible agency 
        shall require that each provider receiving a grant 
        under this section use the grant in accordance with 
        section 314(b).
          (2) Equitable access.--Each eligible agency awarding 
        a grant under this section for adult education and 
        literacy activities shall ensure that the providers 
        described in subsection (b) will be provided direct and 
        equitable access to all Federal funds provided under 
        this section.
          (3) Special rule.--Each eligible agency awarding a 
        grant under this section shall not use any funds made 
        available under this title for adult education and 
        literacy activities for the purpose of supporting or 
        providing programs, services, or activities for 
        individuals who are not individuals described in 
        subparagraphs (A) and (B) of section 303(1), except 
        that such agency may use such funds for such purpose if 
        such programs, services, or activities are related to 
        family literacy services.
          (4) Considerations.--In awarding grants under this 
        section, the eligible agency shall consider--
                  (A) the past effectiveness of a provider 
                described in subsection (b) 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 provider will 
                establish measurable goals for client outcomes, 
                such as levels of literacy achieved and the 
                attainment of a high school diploma or its 
                equivalent, that are tied to challenging State 
                performance standards for literacy proficiency;
                  (C) the degree to which the program is 
                staffed by well-trained instructors and 
                administrators;
                  (D) the degree to which the provider will 
                coordinate with other available resources in 
                the community, such as by establishing strong 
                links with elementary and secondary schools, 
                postsecondary educational institutions, full 
                service employment and training delivery 
                centers, job training programs, and other 
                literacy and social service available in the 
                community;
                  (E) the commitment of the provider to serve 
                individuals in the community who are most in 
                need of literacy services, including 
                individuals who are low income, who have 
                minimal literacy skills, or both;
                  (F) whether or not the program is of 
                sufficient intensity and duration for 
                participants to achieve substantial learning 
                gains;
                  (G) the degree to which the provider will 
                offer flexible schedules and necessary support 
                services (such as child care and 
                transportation) to enable individuals, 
                including individuals with disabilities or 
                other special needs, to participate in adult 
                education and literacy activities;
                  (H) whether such provider has been successful 
                in recruiting, retaining, and improving the 
                literacy skills of, individuals; and
                  (I) whether, not later than 1 year after the 
                date of the enactment of the Employment, 
                Training, and Literacy Enhancement Act of 1997, 
                such provider has been successful in retraining 
                and improving the literacy skills of 
                individuals, consistent with the core 
                indicators of performance set forth in section 
                154 of the Employment, Training, and Literacy 
                Enhancement Act.
  (d) Local Administrative Cost Limits.--
          (1) In general.--Except as provided in paragraph (2), 
        of the funds provided under this section by an eligible 
        agency to a provider described in subsection (b), not 
        less than 95 percent shall be expended for provision of 
        adult education and literacy activities. The remainder 
        shall be used for planning, administration, personnel 
        development, and interagency coordination.
          (2) Special rule.--In cases where the cost limits 
        described in paragraph (1) will be too restrictive to 
        allow for adequate planning, administration, personnel 
        development, and interagency coordination supported 
        under this section, the eligible agency shall negotiate 
        with the provider described in subsection (b) in order 
        to determine an adequate level of funds to be used for 
        noninstructional purposes.

SEC. 314. ADULT EDUCATION AND LITERACY ACTIVITIES.

  (a) Permissible Agency Activities.--An eligible agency may 
use funds made available to the eligible agency under section 
313(a)(2) for activities that may include--
          (1) the establishment or operation of professional 
        development programs to improve the quality of 
        instruction provided pursuant to local activities 
        required under subsection (b), including instruction 
        provided by volunteers or by personnel of a State or 
        outlying area;
          (2) the provision of technical assistance to eligible 
        providers of activities authorized under this section;
          (3) the provision of technology assistance, including 
        staff training, to eligible providers of activities 
        authorized under this section to enable the providers 
        to improve the quality of such activities;
          (4) the support of State or regional networks of 
        literacy resource centers;
          (5) the monitoring and evaluation of the quality of, 
        and the improvement in, activities and services 
        authorized under this section;
          (6) incentives for--
                  (A) program coordination and integration; and
                  (B) performance awards;
          (7) developing and disseminating curricula;
          (8) other activities of statewide significance that 
        promote the purposes of this title; and
          (9) the provision of support services, such as 
        transportation, child care, and other assistance 
        designed to increase rates of enrollment in, and 
        successful completion of, adult education and literacy 
        activities, to adults enrolled in such activities.
  (b) Required Local Activities.--The eligible agency shall 
require that each eligible provider receiving a grant under 
section 313 use the grant to establish or operate 1 or more 
programs that provide instruction or services in 1 or more of 
the following categories:
          (1) Adult education and literacy services, including 
        services provided on the work site.
          (2) Family literacy services.
          (3) English literacy programs.
  (c) State-Imposed Requirements.--Whenever a State implements 
any rule or policy relating to the administration or operation 
of a program authorized under this title that has the effect of 
imposing a requirement that is not imposed under Federal law 
(including any rule or policy based on a State interpretation 
of a Federal statute, regulation, or guideline), it shall 
identify, to eligible providers, the rule or policy as being 
State-imposed.

SEC. 315. FISCAL REQUIREMENTS AND RESTRICTIONS RELATED TO USE OF FUNDS.

  (a) Supplement not Supplant.--Funds made available under this 
part for adult education and literacy activities shall 
supplement, and may not supplant, other public funds expended 
to carry out activities described in section 314.
  (b) Maintenance of Effort.--
          (1) In general.--
                  (A) Determination.--An eligible agency may 
                receive funds under this Act for any fiscal 
                year if the Secretary finds that the fiscal 
                effort per student or the aggregate 
                expenditures of such eligible agency for adult 
                education and literacy, in the second preceding 
                fiscal year, was not less than 90 percent of 
                the fiscal effort per student or the aggregate 
                expenditures of such eligible agency for adult 
                education and literacy, in the third preceding 
                fiscal year.
                  (B) Proportionate reduction.--Subject to 
                paragraphs (2), (3), and (4), for any program 
                year with respect to which the Secretary 
                determines under subparagraph (A) that the 
                fiscal effort and the aggregate expenditures of 
                an eligible agency for the preceding program 
                year were less than such effort and 
                expenditures for the second preceding program 
                year, the Secretary--
                          (i) shall determine the percentage 
                        decreases in such effort and in such 
                        expenditures; and
                          (ii) shall decrease the payment made 
                        under this part for such program year 
                        to the agency for adult education and 
                        literacy activities by the lesser of 
                        such percentages.
          (2) Computation.--In computing the fiscal effort and 
        aggregate expenditures under paragraph (1), the 
        Secretary shall exclude capital expenditures and 
        special one-time project costs.
          (3) Decrease in federal support.--If the amount made 
        available for adult education and literacy activities 
        under this part for a fiscal year is less than the 
        amount made available for adult education and literacy 
        activities under this part for the preceding fiscal 
        year, then the fiscal effort per student and the 
        aggregate expenditures of an eligible agency required 
        in order to avoid a reduction under paragraph (1)(B) 
        shall be decreased by the same percentage as the 
        percentage decrease in the amount so made available.
          (4) Waiver.--The Secretary may waive the requirements 
        of this subsection for 1 fiscal year only, if the 
        Secretary determines that a waiver would be equitable 
        due to exceptional or uncontrollable circumstances, 
        such as a natural disaster or an unforeseen and 
        precipitous decline in the financial resources of the 
        State of the eligible agency. If the Secretary grants a 
        waiver under the preceding sentence for a fiscal year, 
        the level of effort required under paragraph (1) shall 
        not be reduced in the subsequent fiscal year because of 
        the waiver.
  (c) Expenditures of Non-Federal Funds for Adult Education and 
Literacy Activities.--For any program year for which a grant is 
made to an eligible agency under this part, the eligible agency 
shall expend, on programs and activities relating to adult 
education and literacy activities, an amount, derived from 
sources other than the Federal Government, equal to 25 percent 
of the amount made available to the eligible agency under this 
part for adult education and literacy activities.

                       PART B--NATIONAL PROGRAMS

SEC. 321. NATIONAL INSTITUTE FOR LITERACY.

  (a) Purpose.--The National Institute for Literacy shall--
          (1) provide national leadership with respect to 
        literacy in the United States;
          (2) coordinate literacy services; and
          (3) serve as a national resource for adult education 
        and family literacy by providing the best and most 
        current information available and supporting the 
        creation of new ways to offer services of proven 
        effectiveness.
  (b) Establishment.--
          (1) In general.--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 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 Interagency Group may include in the 
        Institute any research and development center, 
        institute, or clearinghouse established within the 
        Department of Education, the Department of Labor, or 
        the Department of Health and Human Services whose 
        purpose is determined by the Interagency Group to be 
        related to the purpose of the Institute.
          (2) Offices.--The Institute shall have offices 
        separate from the offices of the Department of 
        Education, the Department of Labor, and the Department 
        of Health and Human Services.
          (3) 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.
          (4) Daily operations.--The daily operations of the 
        Institute shall be carried out by the Director of the 
        Institute appointed under subsection (g).
  (c) Duties.--
          (1) In general.--In order to provide leadership for 
        the improvement and expansion of the system for 
        delivery of literacy services, the Institute is 
        authorized--
                  (A) to establish, and make accessible, a 
                national electronic data base of information 
                that disseminates information to the broadest 
                possible audience within the literacy and basic 
                skills field, and that includes--
                          (i) effective practices in the 
                        provision of literacy and basic skills 
                        instruction, including the integration 
                        of such instruction with occupational 
                        skills training;
                          (ii) public and private literacy and 
                        basic skills programs and Federal, 
                        State, and local policies affecting the 
                        provision of literacy services at the 
                        national, State, and local levels;
                          (iii) opportunities for technical 
                        assistance, meetings, conferences, and 
                        other opportunities that lead to the 
                        improvement of literacy and basic 
                        skills services; and
                          (iv) a communication network for 
                        literacy programs, providers, social 
                        service agencies, and students;
                  (B) to coordinate support for the provision 
                of literacy and basic skills services across 
                Federal agencies and at the State and local 
                levels;
                  (C) to coordinate the support of research and 
                development on literacy and basic skills in 
                families and adults across Federal agencies, 
                especially with the Office of Educational 
                Research and Improvement in the Department of 
                Education, and to carry out basic and applied 
                research and development on topics that are not 
                being investigated by other organizations or 
                agencies;
                  (D) to collect and disseminate information on 
                methods of advancing literacy that show great 
                promise;
                  (E) funding a network of State or regional 
                adult literacy resource centers to assist State 
                and local public and private nonprofit efforts 
                to improve literacy by--
                          (i) encouraging the coordination of 
                        literacy services;
                          (ii) carrying out evaluations of the 
                        effectiveness of adult education and 
                        literacy activities;
                          (iii) enhancing the capacity of State 
                        and local organizations to provide 
                        literacy services; and
                          (iv) serving as a reciprocal link 
                        between the Institute and providers of 
                        adult education and literacy activities 
                        for the purpose of sharing information, 
                        data, research, expertise, and literacy 
                        resources;
                  (F) to coordinate and share information with 
                national organizations and associations that 
                are interested in literacy and workforce 
                development;
                  (G) to inform the development of policy with 
                respect to literacy and basic skills; and
                  (H) to undertake other activities that lead 
                to the improvement of the Nation's literacy 
                delivery system and that complement other such 
                efforts being undertaken by public and private 
                agencies and organizations.
          (2) Grants, contracts, and agreements.--The Institute 
        may make grants to, or enter into contracts or 
        cooperative agreements with, individuals, public or 
        private institutions, agencies, organizations, or 
        consortia of such institutions, agencies, or 
        organizations to carry out the activities of the 
        Institute. Such grants, contracts, or agreements shall 
        be subject to the laws and regulations that generally 
        apply to grants, contracts, or agreements entered into 
        by Federal agencies.
  (d) Literacy Leadership.--
          (1) 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.
  (e) National Institute for Literacy Advisory Board.--
          (1) Establishment.--
                  (A) In general.--There is established a 
                National Institute for Literacy Advisory Board. 
                The Board shall consist of 10 individuals, 
                appointed by the Interagency Group, 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 
                                title;
                          (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;
                          (vi) representatives of employees; 
                        and
                          (vii) State directors of adult 
                        education.
          (2) Duties.--The Board--
                  (A) shall make recommendations concerning the 
                appointment of the Director and staff of the 
                Institute;
                  (B) shall provide independent advice on the 
                operation of the Institute; and
                  (C) shall receive reports from the 
                Interagency Group and the Director.
          (3) Federal advisory committee act.--Except as 
        otherwise provided, the Board established by this 
        subsection shall be subject to the provisions of the 
        Federal Advisory Committee Act (5 U.S.C. App.).
          (4) 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. Any such member may be 
                appointed for not more than 2 consecutive 
                terms.
                  (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 
                member's 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.
          (5) Quorum.--A majority of the members of the Board 
        shall constitute a quorum but a lesser number may hold 
        hearings. Any recommendation of the Board may be passed 
        only by a majority of the Board's members present.
          (6) Election of officers.--The Chairperson and Vice 
        Chairperson of the Board shall be elected by the 
        members of the Board. The term of office of the 
        Chairperson and Vice Chairperson shall be 2 years.
          (7) Meetings.--The Board shall meet at the call of 
        the Chairperson or a majority of the members of the 
        Board.
  (f) Gifts, Bequests, and Devises.--The Institute may accept, 
administer, and use gifts or donations of services, money, or 
property, both real and personal.
  (g) Mails.--The Board and the Institute may use the United 
States mails in the same manner and under the same conditions 
as other departments and agencies of the Federal Government.
  (h) Director.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the 
pay of a Director.
  (i) Applicability of Certain Civil Service Laws.--The 
Director and staff of the Institute may be appointed without 
regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and may be 
paid without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of that title relating to 
classification and General Schedule pay rates, except that an 
individual so appointed may not receive pay in excess of the 
maximum rate payable under section 5376 of title 5, United 
States Code.
  (j) Experts and Consultants.--The Board and the Institute may 
procure temporary and intermittent services under section 
3109(b) of title 5, United States Code.
  (k) Report.--The Institute shall submit a report biennially 
to the committees of the United States House of Representatives 
and the Senate having jurisdiction over this title. 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 the period covered by the report;
          (2) a description of how plans for the operation of 
        the Institute for the succeeding two fiscal years 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.
  (l) Funding.--Any amounts appropriated to the Secretary of 
Education, the Secretary of Labor, or the Secretary of Health 
and Human Services for purposes that the Institute is 
authorized to perform under this section may be provided to the 
Institute for such purposes.

SEC. 322. NATIONAL LEADERSHIP ACTIVITIES.

  The Secretary shall establish and carry out a program of 
national leadership activities to enhance the quality of adult 
education and family literacy programs nationwide. Such 
activities may include the following:
          (1) Providing technical assistance to recipients of 
        assistance under part A in developing and using 
        benchmarks and performance measures for improvement of 
        adult education and literacy activities, including 
        family literacy services.
          (2) Awarding grants, on a competitive basis, to a 
        postsecondary educational institution, a public or 
        private organization or agency, or a consortium of such 
        institutions, organizations, or agencies to carry out 
        research and technical assistance--
                  (A) for the purpose of developing, improving, 
                and identifying the most successful methods and 
                techniques for addressing the education needs 
                of adults; and
                  (B) to increase the effectiveness of, and 
                improve the quality of, adult education and 
                literacy activities, including family literacy 
                services.
          (3) Providing for the conduct of an independent 
        evaluation and assessment of adult education and 
        literacy activities, through studies and analyses 
        conducted independently through grants and contracts 
        awarded on a competitive basis. Such evaluation and 
        assessment shall include descriptions of--
                  (A) the effect of benchmarks, performance 
                measures, and other measures of accountability 
                on the delivery of adult education and literacy 
                activities, including family literacy services;
                  (B) the extent to which the adult education 
                and literacy activities, including family 
                literacy services, increase the literacy skills 
                of adults (and of children, in the case of 
                family literacy services), lead the 
                participants in such activities to involvement 
                in further education and training, enhance the 
                employment and earnings of such participants, 
                and, if applicable, lead to other positive 
                outcomes, such as reductions in recidivism in 
                the case of prison-based adult education and 
                literacy services;
                  (C) the extent to which the provision of 
                support services to adults enrolled in adult 
                education and family literacy programs 
                increases the rates of enrollment in, and 
                successful completion of, such programs; and
                  (D) the extent to which eligible agencies 
                have distributed funds part A to meet the needs 
                of adults through community-based 
                organizations.
          (4) Carrying out demonstration programs, replicating 
        model programs, disseminating best practices 
        information, and providing technical assistance, for 
        the purposes of developing, improving, and identifying 
        the most successful methods and techniques for 
        providing the activities assisted under part A.
          (5) Other activities designed to enhance the quality 
        of adult education and literacy nationwide, such as 
        providing incentive grants to States consistent with 
        section 156 of the Employment, Training, and Literacy 
        Enhancement 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 
suchform 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)''.]
                              ----------                              


      SECTION 402 OF THE REFUGEE EDUCATION ASSISTANCE ACT OF 1980

                              use of funds

  Sec. 402. (a) Funds made available to State educational 
agencies under this title shall be used by such agencies to 
provide for programs of adult education and adult basic 
education to eligible participants aged 16 or older in need of 
such services who are not enrolled in elementary or secondary 
public schools under the jurisdiction of local educational 
agencies. Such programs may be provided directly by the State 
educational agency, or such agency may make grants, or enter 
into contracts, with local educational agencies, and other 
public or private nonprofit agencies, organizations, or 
institutions to provide for such programs. Funds available 
under this title may be used for--
          (1) * * *
          * * * * * * *
          (4) special projects designed to operate in 
        conjunction with existing Federal and non-Federal 
        programs and activities to develop occupational and 
        related skills for individuals, particularly programs 
        authorized under [the Comprehensive Employment and 
        Training Act of 1973] the Employment, Training, and 
        Literacy Enhancement Act or under the Vocational 
        Education Act of 1963.
  [(b) The State educational agency shall review applications 
for grants and contracts in a manner consistent with the 
purposes of paragraphs (12) and (13) of section 306(b) of the 
Adult Education Act.]
          * * * * * * *
                              ----------                              


             ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965

          * * * * * * *

      TITLE I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS

          * * * * * * *

              PART B--EVEN START FAMILY LITERACY PROGRAMS

          * * * * * * *

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, the Individuals with 
                Disabilities Education Act, and the Job 
                Training Partnership Act] the Individuals with 
                Disabilities Education Act, and the Employment, 
                Training, and Literacy Enhancement 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] adult education 
                and literacy activities under the Adult 
                Education Act; or
          * * * * * * *
                  (B) who are within the State's compulsory 
                school attendance age range, so long as a local 
                educational agency provides (or ensures the 
                availability of) the basic education component 
                required under this part; and
          * * * * * * *

PART D--PREVENTION AND INTERVENTION PROGRAMS FOR CHILDREN AND YOUTH WHO 
         ARE NEGLECTED, DELINQUENT, OR AT RISK OF DROPPING OUT

          * * * * * * *

                    Subpart 1--State Agency Programs

          * * * * * * *

SEC. 1414. STATE PLAN AND STATE AGENCY APPLICATIONS.

  (a) * * *
          * * * * * * *
  (c) State Agency Applications.--Any State agency that desires 
to receive funds to carry out a program under this part shall 
submit an application to the State educational agency that--
          (1) * * *
          * * * * * * *
          (8) describes how the programs will be coordinated 
        with other appropriate State and Federal programs, such 
        as [programs under the Job Training Partnership Act,] 
        activities under the Employment, Training, and Literacy 
        Enhancement Act, vocational education programs, State 
        and local dropout prevention programs, and special 
        education programs;
          * * * * * * *

                    Subpart 2--Local Agency Programs

SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

  Eligible local educational agencies desiring assistance under 
this section shall submit an application to the State 
educational agency, containing such information as the State 
educational agency may require. Each such application shall 
include--
          (1) * * *
          * * * * * * *
          (9) a description of how the program under this 
        subpart will be coordinated with other Federal, State, 
        and local programs, such as [programs under the Job 
        Training and Partnership Act] activities under the 
        Employment, Training, and Literacy Enhancement Act and 
        vocational education programs serving this at-risk 
        population of youth;
          * * * * * * *

SEC. 1425. PROGRAM REQUIREMENTS FOR CORRECTIONAL FACILITIES RECEIVING 
                    FUNDS UNDER THIS SECTION.

  Each correctional facility entering into an agreement with a 
local educational agency under section 1422(a) to provide 
services to youth under this section shall--
          (1) * * *
          * * * * * * *
          (9) coordinate funds received under this program with 
        other local, State, and Federal funds available to 
        provide services to participating youth[, such as funds 
        under the Job Training Partnership Act,], such as funds 
        made available under the Employment, Training, and 
        Literacy Enhancement Act, and vocational education 
        funds;
          * * * * * * *

                  TITLE III--TECHNOLOGY FOR EDUCATION

          * * * * * * *

            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 303 of the Adult Education and Family 
        Literacy Act;
          * * * * * * *

     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 303 of the Adult 
        Education and Family Literacy Act.
          * * * * * * *
                              ----------                              


                           WAGNER-PEYSER ACT

          * * * * * * *
  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] Employment, Training, and 
        Literacy Enhancement 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 area'' 
        means a local workforce development area designated 
        under section 121 of the Employment, Training, and 
        Literacy Enhancement Act;
          (3) the term ``local workforce development board'' 
        means a local workforce development board established 
        under section 122 of the Employment, Training, and 
        Literacy Enhancement Act;
          (4) the term ``full service employment and training 
        delivery system'' means a system established under 
        section 123 of the Employment, Training, and Literacy 
        Enhancement Act;
          [(3)] (5) the term ``Secretary'' means the Secretary 
        of Labor; and
          [(4) the term ``service delivery area'' has the same 
        meaning given that term under the Job Training 
        Partnership Act; and]
          [(5)] (6) 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.] (a) The Secretary of 
Labor--
          (1) shall assist in the coordination and development 
        of a nationwide system of labor exchange services for 
        the general public, provided as part of the full 
        service employment and training delivery systems of the 
        States;
          (2) shall assist in the development of continuous 
        improvement models for such nationwide system that 
        ensure private sector satisfaction with the system and 
        meet the demands of jobseekers relating to the system; 
        and
          (3) shall ensure, for individuals otherwise eligible 
        to receive unemployment compensation, the continuation 
        of any activities in which the individuals are required 
        to participate to receive the compensation.
          * * * * * * *
  Sec. 4. In order to obtain the benefits of appropriations 
apportioned under section 5, a State shall[, through its 
legislature,] pursuant to State statute accept the provisions 
of this Act and, in accordance with such State statute, the 
Governor shall designate or authorize the creation of a State 
agency vested with all powers necessary to cooperate with the 
[United States Employment Service] Secretary under this Act.
  Sec. 5. (a) * * *
          * * * * * * *
  (c)(1) * * *
          * * * * * * *
  [(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.]
          * * * * * * *
  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) * * *
  (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.]
          (B) Title III of the Employment, Training, and 
        Literacy Enhancement Act.
          * * * * * * *
  (d) 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] Employment, Training, and Literacy 
Enhancement Act, or private nonprofit organization.
  (e) All job search, placement, recruitment, labor market 
information, and other labor exchange services authorized under 
subsections (a) and (b) shall be provided as part of the full 
service employment and training delivery system established by 
the State.
  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.
  [(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.]
  (a) Any State desiring to receive assistance under this Act 
shall submit to the Secretary, as part of the State plan 
submitted under section 101 of the Employment, Training, and 
Literacy Enhancement Act, detailed plans for carrying out the 
provisions of this Act within such State.
  [(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 is hereby authorized to make such rules 
and regulations as may be necessary to carry out the provisions 
of this Act.
          * * * * * * *
                              ----------                              


    SECTION 508 OF THE UNEMPLOYMENT COMPENSATION AMENDMENTS OF 1976

SEC. 508. STATE EMPLOYMENT OFFICES TO SUPPLY DATA IN AID OF 
                    ADMINISTRATION OF AFDC AND CHILD SUPPORT PROGRAMS.

  (a) * * *
  (b) Provision for Reimbursement of Expenses.--For purposes of 
section 403 of the Social Security Act, expenses incurred to 
reimburse State employment offices for furnishing information 
requested of such offices pursuant to [the third sentence of 
section 3(a)] section 3(b) of the Act entitled ``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'', approved June 6, 1933 (29 
U.S.C. [49b(a)] 49b(b)), by a State or local agency 
administering a State plan approved under part A of title IV of 
the Social Security Act shall be considered to constitute 
expenses incurred in the administration of such State plan; and 
for purposes of section 455 of the Social Security Act, 
expenses incurred to reimburse State employment offices for 
furnishing information so requested by a State or local agency 
charged with the duty of carrying out a State plan for child 
support approved under part D of title IV of the Social 
Security Act shall be considered to constitute expenses 
incurred in the administration of such State plan.
                              ----------                              


              SECTION 3502 OF TITLE 5, UNITED STATES CODE

Sec. 3502. Order of retention

  (a) * * *
          * * * * * * *
  (d)(1) * * *
          * * * * * * *
  (3) Notice under paragraph (1)(B)--
          (A) shall be given to--
                  (i) the appropriate State dislocated worker 
                unit [or units (referred to in section 
                311(b)(2) of the Job Training Partnership Act)] 
                referred to in section 313(a)(2)(B)(i) of the 
                Employment, Training, and Literacy Enhancement 
                Act; and
                  (ii) the chief elected official of such unit 
                or each of such units of local government as 
                may be appropriate; and
          (B) shall consist of written notification as to--
                  (i) * * *
          * * * * * * *
                  (iii) any other matter which might facilitate 
                the delivery of rapid response assistance or 
                other services under the [Job Training 
                Partnership Act] Employment, Training, and 
                Literacy Enhancement Act.
  (4) The Office shall prescribe such regulations as may be 
necessary to carry out this subsection. The Office shall 
consult with the Secretary of Labor on matters relating to the 
[Job Training Partnership Act] Employment, Training, and 
Literacy Enhancement Act.
          * * * * * * *
                              ----------                              


                         FOOD STAMP ACT OF 1977

          * * * * * * *

                          eligible households

  Sec. 5. (a) * * *
          * * * * * * *
  (l) Notwithstanding [section 142(b) of the Job Training 
Partnership Act (29 U.S.C. 1552(b))] title II, III, or IV of 
the Employment, Training, and Literacy Enhancement Act, 
earnings to individuals participating in on-the-job training 
programs under section 204(b)(1)(C) or section 264(c)(1)(A) of 
the Job Training Partnership Act shall be considered earned 
income for purposes of the food stamp program, except for 
dependents less than 19 years of age.
          * * * * * * *

                     ELIGIBILITY DISQUALIFICATIONS

  Sec. 6. (a) In addition to meeting the standards of
  (d) Conditions of Participation.--
          (1) * * *
          * * * * * * *
          (4) Employment and training.--
                  (A) * * *
          * * * * * * *
  (M) The facilities of the State public employment offices and 
agencies operating programs under the [Job Training Partnership 
Act] Employment, Training, and Literacy Enhancement Act may be 
used to find employment and training opportunities for 
household members under the programs under this paragraph.
  (e) No individual who is a member of a household otherwise 
eligible to participate in the food stamp program under this 
section shall be eligible to participate in the food stamp 
program as a member of that or any other household if the 
individual is enrolled at least half-time in an institution of 
higher education, unless the individual--
          (1) is under age 18 or is age 50 or older;
          (2) is not physically or mentally fit;
          (3) is assigned to or placed in an institution of 
        higher education through or in compliance with the 
        requirements of--
                  [(A) a program under the Job Training 
                Partnership Act (29 U.S.C. 1501 et seq.);]
                  (A) a program under title II, III, or IV of 
                the Employment, Training, and Literacy 
                Enhancement Act;
          * * * * * * *

                research, demonstration, and evaluations

  Sec. 17. (a) * * *
  (b)(1) * * *
  (2) The Secretary shall, jointly with the Secretary of Labor, 
implement two pilot projects involving the performance of work 
in return for food stamp benefits in each of the seven 
administrative regions of the Food and Nutrition Service of the 
Department of Agriculture, such projects to be (A) 
appropriately divided in each region between locations that are 
urban and rural in characteristics and among locations selected 
to provide a representative cross-section of political 
subdivisions in the States and (B) submitted for approval prior 
to project implementation, together with the names of the 
agencies or organizations that will be engaged in such 
projects, to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate. Under such pilot projects, any 
person who is subject to the work registration requirements 
pursuant to section 6(d) of this Act, and is a member of a 
household that does not have earned income equal to or 
exceeding the allotment to which the household is otherwise 
entitled pursuant to section 8(a) of this Act, shall be 
ineligible to participate in the food stamp program as a member 
of any household during any month in which such person refuses, 
after not being offered employment in the private sector of the 
economy for more than thirty days (ten days in at least one 
pilot project area designated by the Secretary) after the 
initial registration for employment referred to in section 
6(d)(1)(A)(i) of this Act, [to accept an offer of employment 
from a political subdivision or a prime sponsor pursuant to the 
Comprehensive Employment and Training Act of 1973, as amended 
(29 U.S.C. 812),] to accept an offer of employment from a 
service provider carrying out employment and training 
activities through a program carried out under title II, III, 
or IV of the Employment, Training, and Literacy Enhancement 
Act, for which employment compensation shall be paid in the 
form of the allotment to which the household is otherwise 
entitled pursuant to section 8(a) of this Act, with each hour 
of employment entitling the household to a portion of the 
allotment equal in value to 100 per centum of the Federal 
minimum hourly rate under the Fair Labor Standards Act of 1938, 
as amended (29 U.S.C. 206(a)(1)); which employment shall not, 
together with any other hours worked in any other capacity by 
such person exceed forty hours a week; and which employment 
shall not be used by the employer to fill a job opening created 
by the action of such employer in laying off or terminating the 
employment of any regular employee not supported under this 
paragraph in anticipation of filling the vacancy so created by 
hiring an employee or employees to be supported under this 
paragraph[: Provided, That all of the political subdivision's 
or prime sponsor's public service jobs supported under the 
Comprehensive Employment and Training Act of 1973, as amended 
(29 U.S.C. 812), are filled before such subdivision or sponsor 
can extend a job offer pursuant to this paragraph: Provided 
further, That the sponsor of each such project shall provide 
the assurances required of prime sponsors under section 
205(c)(7), (8), (15), (19), and (24) of the Comprehensive 
Employment and Training Act of 1973, as amended (29 U.S.C. 
845(c)), and the Secretary shall require such sponsors to 
comply with the conditions contained in sections 208(a)(1), 
(4), and (5) and (c) and 703(4) of the Comprehensive Employment 
and Training Act of 1973, as amended (29 U.S.C. 848 (a) and (c) 
and 983). The Secretary and the Secretary of Labor shall 
jointly issue reports to the appropriate committees of Congress 
on the progress of such pilot projects no later than six and 
twelve months following enactment of this Act, shall issue 
interim reports no later than October 1, 1979, October 1, 1980, 
and March 30, 1981, shall issue a final report describing the 
results of such pilot projects based upon their operation from 
their commencement through the fiscal year ending September 30, 
1981, and shall pay to the agencies or organizations operating 
such pilot projects 50 per centum of all administrative costs 
involved in such operation.], if all of the jobs supported 
under the program have been made available to participants in 
the program before the service provider providing the jobs 
extends an offer of employment under this paragraph, and if the 
service provider, in employing the person, complies with the 
requirements of Federal law that relate to the program.
          * * * * * * *
                              ----------                              


          SECTION 245A OF THE IMMIGRATION AND NATIONALITY ACT

  adjustment of status of certain entrants before january 1, 1982, to 
              that of person admitted for lawful residence

  Sec. 245A. (a) * * *
          * * * * * * *
  (h) Temporary Disqualification of Newly Legalized Aliens from 
Receiving Certain Public Welfare Assistance.--
          (1) * * *
          * * * * * * *
          (4) Treatment of certain programs.--Assistance 
        furnished under any of the following provisions of law 
        shall not be construed to be financial assistance 
        described in paragraph (1)(A)(i):
                  (A) * * *
          * * * * * * *
                  (F) [The Job Training Partnership Act.] The 
                Employment, Training, and Literacy Enhancement 
                Act.
          * * * * * * *
                              ----------                              


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1993

          * * * * * * *

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          * * * * * * *

                  Subtitle E--Defense Nuclear Workers

SEC. 3161. DEPARTMENT OF ENERGY DEFENSE NUCLEAR FACILITIES WORK FORCE 
                    RESTRUCTURING PLAN.

  (a) * * *
          * * * * * * *
  (c) Objectives.--In preparing the plan required under 
subsection (a), the Secretary shall be guided by the following 
objectives:
          (1) * * *
          * * * * * * *
          (6) The Department of Energy should provide local 
        impact assistance to communities that are affected by 
        the restructuring plan and coordinate the provision of 
        such assistance with--
                  (A) programs carried out by the Department of 
                Labor pursuant to the [Job Training Partnership 
                Act )29 U.S.C. 1501 et seq.)] title II, III, or 
                IV of the Employment, Training, and Literacy 
                Enhancement Act;
          * * * * * * *

DIVISION D--DEFENSE CONVERSION, REINVESTMENT, AND TRANSITION ASSISTANCE

          * * * * * * *

   TITLE XLIV--PERSONNEL ADJUSTMENT, EDUCATION, AND TRAINING PROGRAMS

          * * * * * * *

 Subtitle F--Job Training and Employment and Educational Opportunities

SEC. 4461. IMPROVED COORDINATION OF JOB TRAINING AND PLACEMENT PROGRAMS 
                    FOR MEMBERS OF THE ARMED FORCES.

  The Secretary of Defense shall consult with the Secretary of 
Labor, the Secretary of Education, the Secretary of Veterans 
Affairs, and the Economic Adjustment Committee to improve the 
coordination of, and eliminate duplication between, the 
following job training and placement programs available to 
members of the Armed Forces who are discharged or released from 
active duty:
          (1) [The Job Training Partnership Act (29 U.S.C. 1501 
        et seq.).] The Employment, Training, and Literacy 
        Enhancement Act.
          * * * * * * *

SEC. 4471. NOTICE TO CONTRACTORS AND EMPLOYEES UPON PROPOSED AND ACTUAL 
                    TERMINATION OR SUBSTANTIAL REDUCTION IN MAJOR 
                    DEFENSE PROGRAMS.

  (a) * * *
          * * * * * * *
  (c) Contractor Notice to Employees and State Dislocated 
Worker Unit.--Not later than two weeks after a defense 
contractor receives notice under subsection (a), the contractor 
shall provide notice of such termination or substantial 
reduction to--
          (1) * * *
          (2) the State dislocated worker unit or office 
        described in [section 311(b)(2) of the Job Training 
        Partnership Act (29 U.S.C. 1661(b)(2))] 313(a)(2)(B)(i) 
        of the Employment, Training, and Literacy Enhancement 
        Act and the chief elected official of the unit of 
        general local government within which the adverse 
        effect may occur.
  (d) Constructive Notice.--The notice of termination of, or 
substantial reduction in, a defense contract provided under 
subsection (c)(1) to an employee of a contractor shall have the 
same effect as a notice of termination to such employee for the 
purposes of determining whether such employee is eligible [for 
training, adjustment assistance, and employment services under 
section 325 or 325A of the Job Training Partnership Act (29 
U.S.C. 1662d, 1662d-1), except where] to participate in 
employment and training activities carried out under the 
Employment, Training, and Literacy Enhancement Act, except in a 
case in which the employer has specified that the termination 
of, or substantial reduction in, the contract is not likely to 
result in plant closure or mass layoff. [Any employee 
considered to have received such notice under the preceding 
sentence shall only be eligible to receive services under 
section 314(b) of such Act (29 U.S.C. 1661c(b)) and under 
paragraphs (1) through (14), (16), and (18) of section 314(c) 
of such Act (29 U.S.C. 1661c(c)).]
          (e) Loss of Eligibility.--An employee who receives a 
        notice of withdrawal under paragraph (3) shall not be 
        eligible [for training, adjustment assistance, and 
        employment services under section 325 or 325A of the 
        Job Training Partnership Act (29 U.S.C. 1662d, 1662d-1) 
        beginning] to participate in employment and training 
        activities under the Employment, Training, and Literacy 
        Enhancement Act beginning on the date on which the 
        employee receives the notice.
          * * * * * * *
                              ----------                              


SECTION 4003 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 
                                  1991

SEC. 4003. DEFINITIONS

  For purposes of this division:
          (1) * * *
          * * * * * * *
          (5) The term ``substantially and seriously affected'' 
        means--
                  (A) * * *
          * * * * * * *
                  (C) when such term is used in conjunction 
                with the term ``group of workers'', any group 
                of 100 or more workers at a defense facility 
                who are (or who are threatened to be), eligible 
                to participate in the defense conversion 
                adjustment program under section 325 of the Job 
                Training Partnership Act (as added by section 
                4202 of this division), as in effect on the day 
                before the date of the enactment of the 
                Employment, Training, and Literacy Enhancement 
                Act of 1997.
                              ----------                              


        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1991

SEC. 1333. GRANTS TO INSTITUTIONS OF HIGHER EDUCATION TO PROVIDE 
                    EDUCATION AND TRAINING IN ENVIRONMENTAL RESTORATION 
                    TO DISLOCATED DEFENSE WORKERS AND YOUNG ADULTS.

  (a) * * *
          * * * * * * *
  (c) Use of Grant Funds.--(1) * * *
  (2) The entities referred to in paragraph (1) are the 
following:
          (A) Appropriate State and local agencies.
          (B) [Private industry councils (as described in 
        section 102 of the Job Training Partnership Act (29 
        U.S.C. 1512)).] Local workforce development boards 
        established under section 122 of the Employment, 
        Training, and Literacy Enhancement Act.
          * * * * * * *
                              ----------                              


                  SECTION 7 OF THE SMALL BUSINESS ACT

  Sec. 7. (a) * * *
          * * * * * * *
  (j)(1) * * *
          * * * * * * *
  (13) A Program Participant, if otherwise eligible, shall be 
qualified to receive the following assistance during the stages 
of program participation specified in paragraph 12:
          (A) * * *
          * * * * * * *
          (E) Financial assistance whereby the Administration 
        may purchase in whole or in part, and on behalf of such 
        concerns, skills training or upgrading for employees or 
        potential employees of such concerns. Such assistance 
        may be made without regard to section 18(a). Assistance 
        may be made by direct payment to the training provider 
        or by reimbursing the Program Participant or the 
        Participant's employee, if such reimbursement is found 
        to be reasonable and appropriate. For purposes of this 
        subparagraph the term ``training provider'' shall mean 
        an institution of higher education, a community or 
        vocational college, or an institution eligible to 
        provide skills training or upgrading [under the Job 
        Training Partnership Act (29 U.S.C. 1501 et seq.)] 
        under section 124 of the Employment, Training, and 
        Literacy Enhancement Act. The Administration shall, in 
        consultation with the Secretary of Labor, promulgate 
        rules and regulations to implement this subparagraph 
        that establish acceptable training and upgrading 
        performance standards and provide for such monitoring 
        or audit requirements as may be necessary to ensure the 
        integrity of the training effort. No financial 
        assistance shall be granted under the subparagraph 
        unless the Administrator determines that--
                  (i) * * *
          * * * * * * *
                              ----------                              


                SECTION 4 OF THE EMPLOYMENT ACT OF 1946

  full employment and balanced growth: medium-term economic goals and 
                                policies

  Sec. 4. (a) * * *
          * * * * * * *
  (f)(1) * * *
  (2) Insofar as the differences specified in the preceding 
paragraph are due to lack of training and skills, occupational 
practices, and other relevant factors, the Secretary of Labor 
shall--
          (A) take such action as practicable to achieve the 
        objectives of this subsection;
          (B) make studies, develop information, and make 
        recommendations toward remedying these differences in 
        rates of unemployment, [and include these in the annual 
        Employment and Training Report of the President 
        required under section 705(a) of the Comprehensive 
        Employment and Training Act of 1973 (hereinafter in 
        this Act referred to as ``CETA'')] and prepare and 
        submit to the President an annual report containing the 
        recommendations; and
          * * * * * * *
                              ----------                              


            FULL EMPLOYMENT AND BALANCED GROWTH ACT OF 1978

          * * * * * * *

    TITLE II--STRUCTURAL ECONOMIC POLICIES AND PROGRAMS, INCLUDING 
                    TREATMENT OF RESOURCE RESTRAINTS

          * * * * * * *

     job training, counseling and reservoirs of employment projects

  Sec. 206. (a) * * *
  (b) In meeting the responsibilities under subsection (a), the 
Secretary of Labor shall, as appropriate, fully utilize the 
authority provided under [CETA] the Employment, Training, and 
Literacy Enhancement Act and other relevant provisions of law 
to--
          (1) assure the availability of counseling, training, 
        and other supportive activities necessary to prepare 
        persons willing and seeking work for employment 
        [(including use of section 110 of CETA when 
        necessary)];
          * * * * * * *
  (c)(1) To the extent that individuals aged sixteen and over 
and able, willing, and seeking to work are not and in the 
judgment of the President cannot be provided with private job 
opportunities or job opportunities under other programs and 
actions in existence, in accord with the goals and timetables 
set forth in the Employment Act of 1946, the President shall, 
as may be authorized by law, establish reservoirs of public 
employment and private nonprofit employment projects, to be 
approved by the Secretary of Labor, [through expansion of CETA 
and other] existing employment and training projects or through 
such new programs as are determined necessary by the President 
or through both such projects and such programs.
          * * * * * * *

                      TITLE IV--GENERAL PROVISIONS

                           nondiscrimination

  Sec. 401. (a) * * *
          * * * * * * *
  (d) To assist and evaluate the enforcement of this section, 
and the broader equal employment opportunity policies of this 
Act, the Secretary of Labor, shall [include, in the annual 
Employment and Training Report of the President provided under 
section 705(a) of CETA,] include, in the annual report referred 
to in section 4(f)(2)(B) of the Employment Act of 1946 (15 
U.S.C. 1022a(f)(2)(B)), a detailed analysis of the extent to 
which the enforcement of this section achieves positive results 
in both the quantity and quality of jobs, and for employment 
opportunities generally.
          * * * * * * *
                              ----------                              


              SECTION 665 OF TITLE 18, UNITED STATES CODE

Sec. 665. Theft or embezzlement from employment and training funds; 
                    improper inducement; obstruction of investigations

  (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] the Job Training Partnership Act, or 
the Employment, Training, and Literacy Enhancement 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 under this title 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 $1,000, such 
person shall be fined under this title 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] the Job Training Partnership Act, or the Employment, 
Training, and Literacy Enhancement 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 under this title, or imprisoned not more than 1 year, 
or both.
  (c) 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] the Job Training Partnership Act, or 
the Employment, Training, and Literacy Enhancement 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.
                              ----------                              


                  SECTION 239 OF THE TRADE ACT OF 1974

SEC. 239. AGREEMENTS WITH STATES.

  (a) * * *
          * * * * * * *
  (e) Any agreement entered into under this section shall 
provide for the coordination of the administration of the 
provisions for employment services, training, and supplemental 
assistance under sections 235 and 236 of this Act and under 
title III of the [Job Training Partnership Act] Employment, 
Training, and Literacy Enhancement Act upon such terms and 
conditions as are established by the Secretary in consultation 
with the States and set forth in such agreement. Any agency of 
the State jointly administering such provisions under such 
agreement shall be considered to be a cooperating State agency 
for purposes of this chapter.
          * * * * * * *
                              ----------                              


            SECTION 480 OF THE HIGHER EDUCATION ACT OF 1965

SEC. 480. DEFINITIONS.

  As used in this part:
  (a) * * *
  (b) Untaxed Income and Benefits.--The term ``untaxed income 
and benefits'' means--
          (1) * * *
          * * * * * * *
          (14) any other untaxed income and benefits, such as 
        Black Lung Benefits, Refugee Assistance, railroad 
        retirement benefits, or [Job Training Partnership Act] 
        received through participation under title II, III, or 
        IV of the Employment, Training, and Literacy 
        Enhancement Act noneducational benefits.
          * * * * * * *
                              ----------                              


     SECTION 626 OF THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT

     secondary education and transitional services for youth with 
                              disabilities

  Sec. 626. (a) The Secretary may make grants to, or enter into 
contracts with, institutions of higher education, State 
educational agencies, local educational agencies, or other 
appropriate public and private nonprofit institutions or 
agencies [(including the State job training coordinating 
councils and service delivery area administrative entities 
established under the Job Training Partnership Act)] (including 
the State collaborative process under of section 102 of the 
Employment, Training, and Literacy Enhancement Act and local 
workforce development boards established under section 122 of 
such Act) to--
          (1) * * *
          * * * * * * *
  (e)(1) * * *
          * * * * * * *
  (3) States that receive grants shall use grant funds to:
          (A) * * *
          * * * * * * *
          (C) Improve working relationships among education 
        personnel, both within LEAs and in postsecondary 
        training programs, relevant State agencies, the private 
        sector (especially employers), rehabilitation 
        personnel, local and State employment agencies, [local 
        Private Industry Councils (PICS) authorized by the Job 
        Training Partnership Act (JTPA),] local workforce 
        development boards established under section 122 of the 
        Employment, Training, and Literacy Enhancement Act, and 
        families of students with disabilities and their 
        advocates to identify and achieve consensus on the 
        general nature and specific application of transition 
        services to meet the needs of youth with disabilities.
          * * * * * * *
  (4)(A) In order to receive funding under this subsection, a 
State vocational rehabilitation agency and State educational 
agency shall describe in their application how they will use 
the first year, if necessary, to plan how to implement 
transition services, the second through fourth years to develop 
and implement transition services, and the fifth year to 
evaluate transition services. The application shall describe 
how the grant funds will be used during the planning period and 
phased out during the evaluation period to ensure the 
continuation of transition services. Such applications shall 
also include--
          (i) * * *
          * * * * * * *
          (iii) a description of how the State will improve and 
        increase working relationships among education 
        personnel, both within LEAs and in postsecondary 
        training programs, relevant State agencies, the private 
        sector (especially employers), rehabilitation 
        personnel, local and State employment agencies, [local 
        Private Industry Councils (PICS) authorized by the 
        JTPA,] local workforce development boards established 
        under section 122 of the Employment, Training, and 
        Literacy Enhancement Act, and families of students with 
        disabilities and their advocates to identify and 
        achieve consensus on the general nature and specific 
        application of transition services to meet the needs of 
        youth with disabilities; and
          * * * * * * *
  (B) The Secretary shall give preference to those applications 
that, in addition to clearly addressing the requirements under 
subparagraph (A), describe how the State will--
          (i) * * *
          * * * * * * *
          (iii) provide incentives for interagency and private 
        sector resource pooling and otherwise investing in 
        transition services, especially in the form of 
        cooperative agreements, particularly with [PICS 
        authorized by the JTPA] local workforce development 
        boards established under section 122 of the Employment, 
        Training, and Literacy Enhancement Act and local 
        branches of State employment agencies;
          (iv) provide for early, ongoing information and 
        training for those involved with or who could be 
        involved with transition services--professionals, 
        parents, youth with disabilities, including self-
        advocacy training for such youth, and advocates for 
        such youth as well as [PICS authorized by the JTPA] 
        local workforce development boards established under 
        section 122 of the Employment, Training, and Literacy 
        Enhancement Act and local branches of State employment 
        agencies;
          (v) provide for the early and direct involvement of 
        all relevant parties, including [PICS authorized by the 
        JTPA] local workforce development boards established 
        under section 122 of the Employment, Training, and 
        Literacy Enhancement Act and local branches of State 
        employment agencies, in operating and planning 
        improvements in transition services, and the early and 
        direct involvement of all relevant parties in planning 
        and implementing transition services for individual 
        youth;
          (vi) provide access to training for eligible youth 
        that matches labor market needs in their communities;
          (vii) integrate transition services with relevant 
        opportunities in communities, including those sponsored 
        by [PICS authorized by the JTPA] local workforce 
        development boards established under section 122 of the 
        Employment, Training, and Literacy Enhancement Act and 
        local employment agencies;
          * * * * * * *
  (g) The Secretary, as appropriate, shall coordinate programs 
described under subsection (a) with projects developed under 
section 311 of the Rehabilitation Act of 1973, [the Job 
Training Partnership Act (JTPA),] the Employment, Training, and 
Literacy Enhancement Act and the Carl D. Perkins Vocational and 
Applied Technology Education Act.
                              ----------                              


      SECTION 302 OF THE DEPARTMENT OF EDUCATION ORGANIZATION ACT

                 transfers from the department of labor

  Sec. 302. (a) Notwithstanding the provisions of section 601 
of this Act, there shall be transferred to the Secretary, at 
such time on or after the effective date of this Act as the 
Secretary certifies that there has been established in the 
Department a single component responsible for the 
administration and the coordination of programs relating to the 
education of migrants, all functions of the Secretary of Labor 
or the Department of Labor [under section 303(c)(2) of the 
Comprehensive Employment and Training Act] realting to such 
education.
          * * * * * * *
                              ----------                              


                  NATIONAL SKILL STANDARDS ACT OF 1994

                TITLE V--NATIONAL SKILL STANDARDS BOARD

          * * * * * * *

SEC. 504. FUNCTIONS OF THE NATIONAL BOARD.

  (a) * * *
          * * * * * * *
  (c) Research, Dissemination, and Coordination.--In order to 
support the activities described in subsections (b) and (d), 
the National Board shall--
          (1) conduct workforce research relating to skill 
        standards (including research relating to use of skill 
        standards in compliance with civil rights laws) and 
        make such research available to the public, including 
        the voluntary partnerships described in subsection (b);
          (2) identify and maintain a catalog of skill 
        standards used by other countries and by States and 
        leading firms and industries in the United States;
          (3) serve as a clearinghouse to facilitate the 
        sharing of information on the development of skill 
        standards and other relevant information among 
        representatives of occupations and industries 
        identified pursuant to subsection (a), the voluntary 
        partnerships described in subsection (b), and among 
        education and training providers 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)) and] the Educational Resources Information 
        Center Clearinghouses;
          * * * * * * *

SEC. 508. DEFINITIONS.

  For purposes of this title, the following definitions apply:
          [(1) Community-based organizations.--The term 
        ``community-based organizations'' has the meaning given 
        the term in section 4(5) of the Job Training 
        Partnership Act (29 U.S.C. 1503(5)).]
          (1) Community-based organization.--The term 
        ``community-based organization'' means a private 
        nonprofit organization of demonstrated effectiveness 
        that is representative of a community or a significant 
        segment of a community and that provides workforce and 
        career development activities, as defined in section 4 
        of the Employment, Training, and Literacy Enhancement 
        Act.
          * * * * * * *
                              ----------                              


                 SECTION 505 OF THE FREEDOM SUPPORT ACT

SEC. 505. LIMITATIONS ON DEFENSE CONVERSION AUTHORITIES.

  Notwithstanding any other provision of law (including any 
other provision of this Act), funds may not be obligated in any 
fiscal year for purposes of facilitating the conversion of 
military technologies and capabilities and defense industries 
of the former Soviet Union into civilian activities, as 
authorized by sections 503(a)(6) and 504(a)(6) or any other 
provision of law, unless the President has previously obligated 
in the same fiscal year an amount equal to or greater than that 
amount of funds for defense conversion and defense transition 
activities in the United States. For purposes of this section, 
the term ``defense conversion and defense transition activities 
in the United States'' means those United States Government 
funded programs whose primary purpose is to assist United 
States private sector defense workers, United States companies 
that manufacture or otherwise provide defense goods or 
services, or United States communities adversely affected by 
reductions in United States defense spending, such as programs 
funded through the Office of Economic Adjustment in the 
Department of Defense[, through the Defense Conversion 
Adjustment Program (as authorized by the Job Training 
Partnership Act), or through] or through the Economic 
Development Administration.
                              ----------                              


         EMERGENCY JOBS AND UNEMPLOYMENT ASSISTANCE ACT OF 1974

          * * * * * * *

           TITLE II--SPECIAL UNEMPLOYMENT ASSISTANCE PROGRAM

                Part A--Special Unemployment Assistance

          * * * * * * *

                 special unemployment assistance period

  Sec. 204. (a) * * *
  (b) The Secretary shall [designate as an area under this 
section areas served by an entity which is eligible to be a 
prime sponsor under section 102(a) of the Comprehensive 
Employment and Training Act of 1973 (29 U.S.C. 812(a)).] 
designate as an area under this section an area that is a local 
workforce development area under the Employment, Training, and 
Literacy Enhancement Act.
          * * * * * * *

Part B--Reimbursement for Unemployment Benefits Paid on Basis of Public 
                           Service Employment

          * * * * * * *

                              definitions

  Sec. 223. As used in this part, the term--
          (1) * * *
          * * * * * * *
          (3) ``public service job'' means any public service 
        job funded with [assistance provided under the 
        Comprehensive Employment and Training Act of 1973;] 
        assistance provided under the Employment, Training, and 
        Literacy Enhancement Act;
          (4) ``public service wages'' means remuneration for 
        services performed in a public service job to the 
        extent that such remuneration is paid with [funds 
        provided under the Comprehensive Employment and 
        Training Act of 1973;] funds provided under the 
        Employment, Training, and Literacy Enhancement Act;
          * * * * * * *
                              ----------                              


                       REHABILITATION ACT OF 1973

          * * * * * * *

                            TABLE OF CONTENTS

Sec. 2. Declaration of purpose.
     * * * * * * *

             TITLE III--TRAINING AND DEMONSTRATION PROJECTS

     Part A--Training Programs and Community Rehabilitation Programs

Sec. 301. Declaration of purpose.
Sec. 302. Training.
Sec. 303. Authorization of appropriations.
[Sec. 303. Vocational rehabilitation services for individuals with 
          disabilities.
[Sec. 304. Loan guarantees for community rehabilitation programs.
[Sec. 305. Comprehensive rehabilitation centers.
[Sec. 306. General grant and contract requirements.]

           Part B--Special Projects and Supplementary Services

[Sec. 310. Authorization of appropriations.]
Sec. 311. Special demonstration programs.
Sec. 312. Migratory workers.
Sec. 313. Special recreational programs.
[Sec. 314. Reader services for individuals who are blind.
[Sec. 315. Interpreter services for individuals who are deaf.
[Sec. 316. Special recreational programs.]
     * * * * * * *

  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] A--Projects With Industry

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

 Part [C] B--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.]
     * * * * * * *

                 rehabilitation services administration

  Sec. 3. (a) * * *
  (b) The Secretary shall take whatever action is necessary to 
insure that funds appropriated pursuant to this Act[, as well 
as unexpended appropriations for carrying out the Vocational 
Rehabilitation Act (29 U.S.C. 31-42),] are expended only for 
the programs, personnel, and administration of programs carried 
out under this Act.
  [(c) The Secretary shall take such action as necessary to 
ensure that--
          [(1) the staffing of the Rehabilitation Services 
        Administration shall be in sufficient numbers to meet 
        program needs and at levels which will attract and 
        maintain the most qualified personnel; and
          [(2) such staff includes individuals who have 
        training and experience in the provision of 
        rehabilitation services and that staff competencies 
        meet professional standards.]
          * * * * * * *

                              definitions

  Sec. 7. For the purposes of this Act:
  (1) The term ``administrative costs'' means--
          (A) expenditures not incurred by the State unit for--
                  (i) rehabilitation counselors;
                  (ii) rehabilitation case coordinators; or
                  (iii) other direct service personnel; and
          (B) notwithstanding subparagraph (A) includes 
        expenditures incurred by the State unit in the 
        performance of administrative functions under the 
        vocational rehabilitation program, including expenses 
        related to program planning, development, monitoring, 
        and evaluation, including--
                  (i) quality assurance;
                  (ii) budgeting, accounting, financial 
                management, information systems, and related 
                data processing;
                  (iii) providing information about the program 
                to the public;
                  (iv) technical assistance to other State 
                agencies, private nonprofit organizations, and 
                businesses and industries;
                  (v) the State Rehabilitation Advisory Council 
                and other advisory committees;
                  (vi) professional organization membership 
                dues for State unit employees;
                  (vii) the removal architectural barriers in 
                State vocational rehabilitation agency offices 
                and State operated rehabilitation facilities;
                  (viii) operating and maintaining State unit 
                facilities, equipment, and grounds;
                  (ix) supplies;
                  (x) administration of the comprehensive 
                system of personnel development, including 
                personnel administration, administration of 
                affirmative action plans, and training and 
                staff development, administrative salaries, 
                including clerical and other support staff 
                salaries, in support of these functions;
                  (xi) travel costs related to carrying out the 
                program, other than travel costs related to the 
                provision of services;
                  (xii) costs incurred in conducting reviews of 
                rehabilitation counselor or coordinator 
                determinations; and
                  (xiii) legal expenses required in the 
                administration of the program.
  [(22)] (2) The term ``assessment for determining eligibility 
and vocational rehabilitation needs'' means, as appropriate in 
each case--
          (A) * * *
          * * * * * * *
  [(23)] (3) The term ``assistive technology device'' has the 
meaning given such term in section 3(2) of the Technology-
Related Assistance for Individuals With Disabilities Act of 
1988 (29 U.S.C. 2202(2)), except that the reference in such 
section to the term ``individuals with disabilities'' shall be 
deemed to mean more than one individual with a disability as 
defined in paragraph (8)(A).
  [(24)] (4) The term ``assistive technology service'' has the 
meaning given such term in section 3(3) of the Technology-
Related Assistance for Individuals With Disabilities Act of 
1988 (29 U.S.C. 2202(3)), except that the reference in such 
section--
          (A) to the term ``individual with a disability'' 
        shall be deemed to mean an individual with a 
        disability, as defined in paragraph (8)(A); and
          (B) to the term ``individuals with disabilities'' 
        shall be deemed to mean more than one such individual.
  [(25)] (5) The term ``community rehabilitation program'' 
means a program that provides directly or facilitates the 
provision of vocational rehabilitation services to individuals 
with disabilities, and that provides, singly or in combination, 
for an individual with a disability to enable the individual to 
maximize opportunities for employment, including career 
advancement--
          (A) * * *
          * * * * * * *
  [(1)] (6) The term ``construction'' means the construction of 
new buildings, the acquisition, expansion, remodeling, 
alteration, and renovation of existing buildings, and initial 
equipment of such buildings, and the term ``cost of 
construction'' includes architects' fees and acquisition of 
land in connection with construction but does not include the 
cost of offsite improvements.
  [(2)] (7) The term ``criminal act'' means any crime, 
including an act, omission, or possession under the laws of the 
United States or a State or unit of general local government, 
which poses a substantial threat of personal injury, 
notwithstanding that by reason of age, insanity, intoxication 
or otherwise the person engaging in the act, omission, or 
possession was legally incapable of committing a crime.
  [(3)] (8)(A) The term ``designated State agency'' means an 
agency designated under section 101(a)(1)(A).
  (B) The term ``designated State unit'' means (i) any State 
agency unit required under section 101(a)(2)(A) of this Act, or 
(ii) in cases in which no such unit is so required, the State 
agency described in section 101(a)(1)(B)(i) of this Act.
  [(26)] (9) The term ``disability'' means--
          (A) except as otherwise provided in subparagraph (B), 
        a physical or mental impairment that constitutes or 
        results in a substantial impediment to employment; or
          (B) for purposes of sections 2, 14, and 15, and 
        titles II, IV, V, and VII, a physical or mental 
        impairment that substantially limits one or more major 
        life activities.
  [(4)] (10)(A) The term ``drug'' means a controlled substance, 
as defined in schedules I through V of section 202 of the 
Controlled Substances Act (21 U.S.C. 812).
  (B) The term ``illegal use of drugs'' means the use of drugs, 
the possesison or distribution of which is unlawful under the 
Controlled Substances Act. Such term does not include the use 
of a drug taken under supervision by a licensed health care 
professional, or other uses authorized by the Controlled 
Substances Act or other provisions of Federal law.
  [(5)] (11) The term ``employment outcome'' means, with 
respect to an individual, entering or retaining full-time or, 
if appropriate, part-time competitive employment in the 
integrated labor market (including satisfying the vocational 
outcome of supported employment) or satisfying any other 
vocational outcome the Secretary may determine, consistent with 
this Act.
  [(12) The term ``public safety officer'' means a person 
serving the United States or a State or unit of general local 
government, with or without compensation, in any activity 
pertaining to--
          [(A) the enforcement of the criminal laws, including 
        highway patrol, or the maintenance of civil peace by 
        the National Guard or the Armed Forces,
          [(B) a correctional program, facility, or institution 
        where the activity is potentially dangerous because of 
        contact with criminal suspects, defendants, prisoners, 
        probationers, or parolees,
          [(C) a court having criminal or juvenile delinquent 
        jurisdiction where the activity is potentially 
        dangerous because of contact with criminal suspects, 
        defendants, prisoners, probationers, or parolees, or
          [(D) firefighting, fire prevention, or emergency 
        rescue missions.]
  [(6)] (12) The term ``establishment of a community 
rehabilitation program'' includes the acquisition, expansion, 
remodeling, or alteration of existing buildings necessary to 
adapt them to community rehabilitation program purposes or to 
increase their effectiveness for such purposes (subject, 
however, to such limitations as the Secretary may determine, in 
accordance with regulations the Secretary shall prescribe, in 
order to prevent impairment of the objectives of, or 
duplication of, other Federal laws providing Federal assistance 
in the construction of facilities for community rehabilitation 
programs), and may include such additional equipment and 
staffing as the Commissioner considers appropriate.
  [(27)] (13) The term ``extended services'' means ongoing 
support services and other appropriate services, needed to 
support and maintain an individual with the most severe 
disability in supported employment, that--
          (A) are provided singly or in combination and are 
        organized and made available in such a way as to assist 
        an eligible individual in maintaining integrated, 
        competitive employment;
          (B) are based on a determination of the needs of an 
        eligible individual, as specified in an individualized 
        written rehabilitation program; and
          (C) are provided by a State agency, a nonprofit 
        private organization, employer, or any other 
        appropriate resource, after an individual has made the 
        transition from support provided by the designated 
        State unit.
  [(7)] (14)(A) Subject to subparagraphs (B) and (C), the term 
``Federal share'' means 78.7 percent.
  (B) The term ``Federal share'' means 90 percent for the 
purposes of part C of title I of this Act and as specifically 
set forth in section 111(a)(3), except that with respect to 
payments pursuant topart B of title I of this Act to any State 
which are used to meet the costs of construction of those 
rehabilitation facilities identified in section 103(b)(2) in such 
State, the Federal share shall be the percentages determined in 
accordance with the provisions of section 111(a)(3) applicable with 
respect to the State.
  (C) For the purpose of determining the non-Federal share with 
respect to a State, expenditures by a political subdivision 
thereof or by a local agency shall be regarded as expenditures 
by such State, subject to such limitations and conditions as 
the Secretary shall by regulation prescribe.
  [(28)] (15)(A) The term ``impartial hearing officer'' means 
an individual--
          (i) who is not an employee of a public agency (other 
        than an administrative law judge, hearing examiner, or 
        employee of an institution of higher education);
          (ii) who is not a member of the State Rehabilitation 
        Advisory Council described in section 105;
          (iii) who has not been involved in previous decisions 
        regarding the vocational rehabilitation of the 
        applicant or client;
          (iv) who has knowledge of the delivery of vocational 
        rehabilitation services, the State plan under section 
        101, and the Federal and State rules governing the 
        provision of such services and training with respect to 
        the performance of official duties; and
          (v) who has no personal or financial interest that 
        would be in conflict with the objectivity of the 
        individual.
  (B) An individual shall not be considered to be an employee 
of a public agency for purposes of subparagraph (A)(i) solely 
because the individual is paid by the agency to serve as a 
hearing officer.
  [(29)] (16) The term ``independent living core services'' 
means--
          (A) information and referral services;
          (B) independent living skills training;
          (C) peer counseling (including cross-disability peer 
        counseling); and
          (D) individual and systems advocacy.
  [(30)] (17) The term ``independent living services'' 
includes--
          (A) * * *
          * * * * * * *
  [(20)] (18) The terms ``Indian'', ``American Indian'', and 
``Indian American'' means an individual who is a member of an 
Indian tribe.
  [(21)] (19) The term ``Indian tribe'' means any Federal or 
State Indian tribe, band, rancheria, pueblo, colony, or 
community, including any Alaskan native village or regional 
village corporation (as defined in or established pursuant to 
the Alaska Native Claims Settlement Act).
  [(8)] (20)(A) Except as otherwise provided in subparagraph 
(B), the term ``individual with a disability'' means any 
individual who (i) has a physical or mental impairment which 
for such individual constitutes or results in a substantial 
impediment to employment and (ii) can benefit in terms of an 
employment outcome from vocational rehabilitation services 
provided pursuant to title I, III, VI, or VIII of this Act.
          * * * * * * *
  [(31)] (21)(A) The term ``individuals with disabilities'' 
means more than one individual with a disability.
  (B) The term ``individuals with severe disabilities'' means 
more than one individual with a severe disability.
  (C) The term ``individuals with the most severe 
disabilities'' means more than one individual with the most 
severe disability.
  [(15)] (22)(A) Except as provided in subparagraph (B) or (C), 
the term ``individual with a severe disability'' means an 
individual with a disability--
          (i) * * *
          * * * * * * *
  [(32)] (23) The term ``institution of higher education'' has 
the meaning given the term in section 1201(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1141(a)).
  [(9)] (24) The term ``local agency'' means an agency of a 
unit of general local government or of an Indian tribe (or 
combination of such units or tribes) which has an agreement 
with the State agency designated pursuant to section 101(a)(1) 
to conduct a vocational rehabilitation program under the 
supervision of such State agency in accordance with the State 
plan approved under section 101. Nothing in the preceding 
sentence of this paragraph or in section 101 shall be construed 
to prevent the local agency from utilizing another local public 
or nonprofit agency to provide vocational rehabilitation 
services: Provided, That such an arrangement is made part of 
the agreement specified in this paragraph.
  [(10)] (25) The term ``nonprofit'', when used with respect to 
a community rehabilitation program, means a community 
rehabilitation program carried out by a corporation or 
association, no part of the net earnings of which inures, or 
may lawfully inure, to the benefit of any private shareholder 
or individual and the income of which is exempt from taxation 
under section 501(c)(3) of the Internal Revenue Code of 1954.
  [(33)] (26) The term ``ongoing support services'' means 
services--
          (A) * * *
          * * * * * * *
  [(11)] (27) The term ``personal assistance services'' means a 
range of services, provided by one or more persons, designed to 
assist an individual with a disability to perform daily living 
activities on or off the job that the individual would 
typically perform if the individual did not have a disability. 
Such services shall be designed to increase the individual's 
control in life and ability to perform everyday activities on 
or off the job.
  [(19)] (28) The term ``public or nonprofit'', with respect to 
an agency or organization, includes an Indian tribe.
  [(13)] (29) The term ``rehabilitation technology'' means the 
systematic application of technologies, engineering 
methodologies, or scientific principles to meet the needs of 
and address the barriers confronted by individuals with 
disabilities in areas which include education, rehabilitation, 
employment, transportation, independent living, and recreation. 
The term includes rehabilitation engineering, assistive 
technology devices, and assistive technology services.
  [(14)] (30) The term ``Secretary'', except when the context 
otherwise requires, means the Secretary of Education.
  [(16)] (31) The term ``State'' includes, in addition to each 
of the several States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, the United States 
Virgin Islands, Guam, American Samoa, the Commonwealth of the 
Northern Mariana Islands, and the Republic of Palau (until the 
Compact of Free Association with Palau takes effect).
  [(18)] (32)(A) The term ``supported employment'' means 
competitive work in integrated work settings for individuals 
with the most severe disabilities--
          (i)(I) for whom competitive employment has not 
        traditionally occurred; or
          (II) for whom competitive employment has been 
        interrupted or intermittent as a result of a severe 
        disability; and
          (ii) who, because of the nature and severity of their 
        disability, need intensive supported employment 
        services for the period, and any extension, described 
        in paragraph (34)(C) and extended services after the 
        transition described in paragraph (27)(C) in order to 
        perform such work.
  (B) Such term includes transitional employment for persons 
who are individuals with the most severe disabilities due to 
mental illness.
  [(34)] (33) The term ``supported employment services'' means 
ongoing support services and other appropriate services needed 
to support and maintain an individual with the most severe 
disability in supported employment, that--
          (A) * * *
          * * * * * * *
  [(35)] (34) The term ``transition services'' means a 
coordinated set of activities for a student, designed within an 
outcome-oriented process, that promotes movement from school to 
post school activities, including post secondary education, 
vocational training, integrated employment (including supported 
employment), continuing and adult education, adult services, 
independent living, or community participation. The coordinated 
set of activities shall be based upon the individual student's 
needs, taking into account the student's preferences and 
interests, and shall include instruction, community 
experiences, the development of employment and other post 
school adult living objectives, and, when appropriate, 
acquisition of daily living skills and functional vocational 
evaluation.
  [(17)] (35) The term ``vocational rehabilitation services'' 
means those services identified in section 103 which are 
provided to individuals with disabilities under this Act.
          * * * * * * *

                                reports

  Sec. 13. Not later than one hundred and eighty days after the 
close of each fiscal year, the Commissioner shall prepare and 
submit to the President and to the Congress a full and complete 
reporton the activities carried out under this Act, including 
the activities and staffing of the information clearinghouse under 
section 15. The Commissioner shall annually collect information on each 
client whose case is closed out in the preceding fiscal year and 
include the information in the report required by this section. The 
information shall set forth a complete count of such cases in a manner 
permitting the greatest possible cross-classification of data. The 
Commissioner shall also annually collect information with respect to 
the title I, vocational rehabilitation services program, on 
administrative costs and other expenditures under the program. The data 
elements shall include, but not be limited to, age, sex, race, 
ethnicity, education, type of disability, severity of disability, key 
rehabilitation process dates, earnings at time of entry into program 
and at closure, work status, occupation, cost of case services, types 
of services provided, including types of rehabilitation technology 
services provided, types of facilities or agencies which furnished 
services and whether each such facility or agency is public or private, 
and reasons for closure. The Commissioner shall take whatever action is 
necessary to assure that the identity of each client for which 
information is supplied under this subsection is confidential. Such 
annual reports shall also include statistical data reflecting services 
and activities provided individuals during the preceding fiscal year. 
The annual report shall include an evaluation of the status of 
individuals with severe disabilities participating in programs under 
this Act.
          * * * * * * *

              TITLE I--VOCATIONAL REHABILITATION SERVICES

                       Part A--General Provisions

         declaration of policy; authorization of appropriations

  Sec. 100. (a)(1) * * *
  (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] fiscal years 
1998, 1999, and 2000, 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] fiscal years 1998, 1999, and 2000.

                              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) * * *
          * * * * * * *
  (4) provide that the plan shall be in effect in all political 
subdivisions[, except that in the case] , except that--
          (A) 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); and
          (B) in the case of earmarked funds used as the State 
        match for Federal funds, where such funds are earmarked 
        for particular geographic areas within a State;
          * * * * * * *
  (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] which shall include 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] on an annual basis 
                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] counselors to clients;
                  [(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;]
          * * * * * * *
  (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 Javits-
Wagner-O'Day Act (41 U.S.C. 46 et seq.), and State use 
contracting programs;
          * * * * * * *
  [(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)] (13) provide that no residence requirement will be 
imposed which excludes from services under the plan any 
individual who is present in the State;
  [(15)] (14) 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)] (15) 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, andother 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)] (16) 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)] (17) 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)] (18) 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)] (19) 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)] (20) 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;
  [(24)] (21) 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] students 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] individualized 
        education 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)] (22) provide assurances satisfactory to the 
[Secretary] Commissioner 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)] (23) 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)] (24) describe the manner in which cooperative 
agreements with private nonprofit vocational rehabilitation 
service providers will be established;
  [(28)] (25) 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.) and State use 
contracting programs;
  [(29)] (26) 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)] (27) 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)] (28) 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)] (29) provide for coordination [and working 
relationships] with the Statewide Independent Living Council 
established under section 705 and independent living centers 
within the State;
  [(34)] (30) 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)] (31)(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)] (32) 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.

              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) * * *
          * * * * * * *
          [(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)] (7) rehabilitation teaching services and 
        orientation and mobility services for individuals who 
        are blind;
          [(9)] (8) occupational licenses, tools, equipment, 
        and initial stocks and supplies;
          [(10)] (9) transportation in connection with the 
        rendering of any vocational rehabilitation service;
          [(11)] (10) telecommunications, sensory, and other 
        technological aids and devices;
          [(12)] (11) rehabilitation technology services;
          [(13)] (12) 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)] (13) transition services that promote or 
        facilitate the accomplishment of long-term 
        rehabilitation goals and intermediate rehabilitation 
        objectives;
          [(15)] (14) 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)] (15) supported employment services.
          * * * * * * *

SEC. 105. STATE REHABILITATION ADVISORY COUNCIL.

  (a) * * *
          * * * * * * *
  [(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. 
        After such date, the Commissioner shall review and, if 
        necessary, revise the evaluation standards and 
        performance indicators every three years. Any necessary 
        revisions shall be developed with input from State 
        vocational rehabilitation agencies, related 
        professional and consumer organizations, recipients of 
        vocational rehabilitation services, and other 
        interested parties. Any proposed revisions shall be 
        subject to the notice, publication, and comment 
        provisions described in paragraph (3).
          * * * * * * *

SEC. 107. MONITORING AND REVIEW.

  (a) In General.--
          (1) * * *
          * * * * * * *
          (5) Monitoring and review reports.--Any reports 
        detailing the findings of the annual reviews and 
        periodic on-site monitoring visits shall be made 
        available to the State Rehabilitation Advisory Council 
        for use in the development and modification of the 
        State plan.

            Part B--Basic Vocational Rehabilitation Services

          * * * * * * *
  Sec. 111. (a)(1) * * * 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.
          * * * * * * *

                       client assistance program

  Sec. 112. (a) * * *
          * * * * * * *
  (h) There are authorized to be appropriated such sums as may 
be necessary for [fiscal years 1993 through 1997] fiscal years 
1998, 1999, and 2000 to carry out the provisions of this 
section.
          * * * * * * *

                    TITLE II--RESEARCH AND TRAINING

          * * * * * * *

                    authorization of appropriations

  Sec. 201. (a) There are authorized to be appropriated--
          (1) for the purpose of providing for the expenses of 
        the National Institute on Disability and Rehabilitation 
        Research under section 202, which shall include the 
        expenses of the Rehabilitation Research Advisory 
        Council under section 205, and shall not include the 
        expenses of such Institute to carry out section 204, 
        such sums as may be necessary for [each of fiscal years 
        1993 through 1997] fiscal years 1998, 1999, and 2000; 
        and
          (2) to carry out section 204, such sums as may be 
        necessary for [each of fiscal years 1993 through 1997] 
        fiscal years 1998, 1999, and 2000.
  (b) Funds appropriated under this title shall remain 
available until expended.

      national institute on disability and rehabilitation research

  Sec. 202. (a) * * *
          * * * * * * *
  (c)(1) The Director of the Institute shall be appointed by 
the Secretary[, except that the person serving as the Director 
on the date of the enactment of the Rehabilitation Act 
Amendments of 1992 may, at the pleasure of the President, 
continue to serve as Director. The Director shall be an 
individual with substantial experience in rehabilitation and in 
research administration. The Director shall be compensated at 
the rate payable for level V of the Executive Schedule under 
section 5316 of title 5, United States Code. The Director shall 
not delegate any of his functions to any officer who is not 
directly responsible to the Director.
  [(2) There shall be a Deputy Director of the Institute 
(hereinafter in this section referred to as the ``Deputy 
Director'') who shall be appointed by the Secretary. The Deputy 
Director shall be an individual with substantial experience in 
rehabilitation and in research administration. The Deputy 
Director shall be compensated at the rate of pay for level 4 of 
the Senior Executive Service Schedule under section 5382 of 
title 5, United States Code, and shall act for the Director 
during the absence of the Director or the inability of the 
Director to perform the essential functions of the job, 
exercising such powers as the Director may prescribe. In the 
case of any vacancy in the office of the Director, the Deputy 
Director shall serve as Director until a Director is appointed 
under paragraph (1). The position created by this paragraph 
shall be in addition to the number of positions placed in grade 
GS-17 of the General Schedule under section 5108 of title 5, 
United States Code.
  [(3) The Director, subject to the approval of the President, 
may appoint, for terms not to exceed three years, without 
regard to the provisions of title 5, United States Code, 
governing appointment in the competitive service, and may 
compensate, without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of such title relating to 
classification and General Schedule pay rates, such technical 
and professional employees of the Institute as the Director 
deems necessary to accomplish the functions of the Institute 
and also appoint and compensate without regard to such 
provisions, in a number not to exceed one-fifth of the number 
of full-time, regular technical and professional employees of 
the Institute].
  [(4)] (2) The Director may obtain the services of 
consultants, without regard to the provisions of title 5, 
United States Code, governing appointments in the competitive 
service.
          * * * * * * *

             TITLE III--TRAINING AND DEMONSTRATION PROJECTS

    Part A--Training Programs and Community Rehabilitation Programs

          * * * * * * *

                                training

  Sec. 302. (a) * * *
  (b)(1)(A) In making such grants or contracts, the 
Commissioner shall target funds made available for any year to 
areas of personnel shortage.
  (B) Projects described in subsection (a) may include--
          (i) * * *
          * * * * * * *
          (iv) projects to train personnel in the use, 
        applications, and benefits of assistive technology 
        devices and assistive technology services (as defined 
        in paragraphs (2) and (3) of section 3 of the 
        Technology-Related Assistance for Individuals With 
        Disabilities Act of 1988 (29 U.S.C. 2202 (2) and (3))).
          * * * * * * *
  [(e)(1) In carrying out subsection (a), the Commissioner 
shall award two grants to States, public or nonprofit private 
agencies and organizations, and institutions of higher 
education to support the formation of consortia or partnerships 
of public or nonprofit private entities for the purpose of 
providing opportunities for career advancement or competency-
based training to current employees of public or nonprofit 
private agencies that provide services to individuals with 
disabilities. Such opportunities shall include certificate 
ordegree granting programs in vocational rehabilitation services and 
related services.
  [(2) An entity that receives a grant under paragraph (1) may 
use the grant for purposes including--
          [(A) establishing a program with an institution of 
        higher education to develop creative new programs and 
        coursework options, or to expand existing programs, 
        concerning the fields of vocational rehabilitation 
        services and related services, including--
                  [(i) providing release time for faculty and 
                staff for curriculum development; and
                  [(ii) paying for instructional costs and 
                startup and other program development costs;
          [(B) establishing a career development mentoring 
        program using faculty and professional staff members of 
        participating agencies as role models, career sponsors, 
        and academic advisors for experienced State, city, and 
        county employees, and volunteers, who--
                  [(i) have demonstrated a commitment to 
                working in the fields described in clause (i); 
                and
                  [(ii) are enrolled in a program relating to 
                such a field at an institution of higher 
                education;
          [(C) supporting a wide range of programmatic and 
        research activities aimed at increasing opportunities 
        for career advancement and competency-based training in 
        such fields; and
          [(D) identifying existing public or private agency 
        and labor union personnel policies and benefit programs 
        that may facilitate the ability of employees to take 
        advantage of higher education opportunities, such as 
        leave time and tuition reimbursement.
  [(3) In making grants for projects under paragraph (1), the 
Commissioner shall ensure that the projects shall be 
geographically distributed throughout the United States in 
urban and rural areas.
  [(4) The Commissioner shall, for the purpose of providing 
technical assistance to States or entities receiving grants 
under paragraph (1), enter into a cooperative agreement through 
a separate competition with an entity that has successfully 
demonstrated the capacity and expertise in the education, 
training, and retention of employees to serve individuals with 
disabilities through the use of consortia or partnerships 
established for the purpose of retraining the existing work 
force and providing opportunities for career enhancement.
  [(5) The Commissioner may conduct an evaluation of projects 
funded under this subsection.
  [(6) During the period in which an entity is receiving 
financial assistance under paragraph (1), the entity may not 
receive financial assistance under paragraph (4).]
  [(f)] (e)(1) For the purpose of training a sufficient number 
of interpreters to meet the communications needs of individuals 
who are deaf and individuals who are deaf-blind, the Secretary, 
through the Office of Deafness and Communicative Disorders, may 
award grants to any public or private nonprofit agency or 
organization to establish interpreter training programs or to 
provide financial assistance for ongoing interpreter training 
programs. The Secretary shall award grants for programs in such 
geographic areas throughout the United States as the Secretary 
considers appropriate to best carry out the purpose of this 
section. Priority shall be given to public or private nonprofit 
agencies or organizations with existing programs that have 
demonstrated their capacity for providing interpreter training 
services.
  (2) No grant shall be awarded under paragraph (1) unless the 
applicant has submitted an application to the Secretary in such 
form, and in accordance with such procedures, as the Secretary 
may require. Any such application shall--
          (A) describe the manner in which an interpreter 
        training program would be developed and operated during 
        the five-year period following the award of any grant 
        under this section;
          (B) demonstrate the applicant's capacity or potential 
        for providing training for interpreters for individuals 
        who are deaf and individuals who are deaf-blind;
          (C) provide assurances that any interpreter trained 
        or retrained under such program shall meet such minimum 
        standards of competency as the Secretary may establish 
        for purposes of this section; and
          (D) contain such other information as the Secretary 
        may require.
  [(g)] (f)(1) The Commissioner is authorized to provide 
technical assistance to State rehabilitation agencies and 
community rehabilitation programs, directly or through 
contracts with State vocational rehabilitation agencies or 
nonprofit organizations.
  (2) An expert or consultant appointed or serving under 
contract pursuant to this section shall be compensated at a 
rate subject to approval of the Commissioner which shall not 
exceed the daily equivalent of the rate of pay for level 4 of 
the Senior Executive Service Schedule under section 5382 of 
title 5, United States Code. Such an expert or consultant may 
be allowed travel and transportation expenses in accordance 
with section 5703 of title 5, United States Code.
  (3)(A) Subject to subparagraph (B), at least 15 percent of 
the sums appropriated to carry out this section shall be 
allocated to designated State agencies to be used, directly or 
indirectly, for projects for in-service training of 
rehabilitation personnel, including projects designed--
          (i) to address recruitment and retention of qualified 
        rehabilitation professionals;
          (ii) to provide for succession planning; and
          (iii) to provide for leadership development and 
        capacity building[; and].
          [(iv) for fiscal years 1993 and 1994, to provide 
        training regarding the amendments to this Act made by 
        the Rehabilitation Act Amendments of 1992.]
  (B) If the allocation to designated State agencies required 
by subparagraph (A) would result in a lower level of funding 
for projects being carried out on the date of enactment of the 
Rehabilitation Act Amendments of 1992 by other recipients of 
funds under this section, the Commissioner may allocate less 
than 15 percentof the sums described in subparagraph (A) to 
designated State agencies for such in-service training.
  [(h)] (g) There are authorized to be appropriated to carry 
out this section such sums as may be necessary for each of the 
[fiscal years 1993 through 1997] fiscal years 1998, 1999, and 
2000.
  [(i)] (h)(1) Consistent with paragraph (2), and consistent 
with the general authority set forth in this section to fund 
training 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 the training activities described in section 
803.
  (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.
  Sec. [310.] 303. For the purpose of carrying out this part 
(other than sections 311(c), 311(d), 312, and 316), there are 
authorized to be appropriated such sums as may be necessary for 
[each of fiscal years 1993 through 1997] fiscal years 1998, 
1999, and 2000.

 [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.

                 [comprehensive rehabilitation centers

  [Sec. 305. (a)(1) In order to provide a focal point in 
communities for the development and delivery of services 
designed primarily for individuals with disabilities, the 
Commissioner may make grants to any designated State unit to 
establish and operate comprehensive rehabilitation centers. The 
centers shall be established in order to provide a broad range 
of services to individuals with disabilities, including 
information and referral services, counseling services, and job 
placement, health, educational, social, and recreational 
services, as well as to provide facilities for recreational 
activities.
  [(2) To the maximum extent practicable, such centers shall 
provide, upon request, to local governmental units and other 
public and private nonprofit entities located in the area such 
information and technical assistance (including support 
personnel such as interpreters for individuals who are deaf) as 
may be necessary to assist those entities in complying with 
this Act, particularly the requirements of section 504.
  [(b) No grant may be made under this section unless an 
application therefor has been submitted to and approved by the 
Commissioner. The Commissioner may not approve an application 
for a grant unless the application--
          [(1) contains assurances that the designated State 
        unit will use funds provided by such grant in 
        accordance with subsections (c) and (d); and
          [(2) contains such other information, and is 
        submitted in such form and in accordance with such 
        procedures, as the Commissioner may require.
  [(c)(1) The designated State unit may--
          [(A) in accordance with subsection (e) make grants to 
        units of general purpose local government or to other 
        public or nonprofit private agencies or organizations 
        and may make contracts with any agency or organization 
        to pay not to exceed 80 percent of the cost of--
                  [(i) leasing facilities to serve as 
                comprehensive rehabilitation centers;
                  [(ii) expanding, remodeling, or altering 
                facilities to the extent necessary to adapt 
                them to serve as comprehensive rehabilitation 
                centers;
                  [(iii) operating such centers; or
                  [(iv) carrying out any combination of the 
                activities specified in this subparagraph; and
          [(B) directly carry out the activities described in 
        subparagraph (A), except that not more than 80 percent 
        of the costs of providing any comprehensive 
        rehabilitation center may be provided from funds under 
        this section.
  [(2) Funds made available to any designated State unit under 
this section for the purpose of assisting in the operation of a 
comprehensive rehabilitation center may be used to compensate 
professional and technical personnel required to operate the 
center and to deliver services in the center, and to provide 
equipment for the center.
  [(d)(1) The designated State unit may approve a grant or 
enter into a contract under subsection (c) only if the 
application for such grant or contract meets the requirements 
specified in paragraphs (1), (2), (4), and (5) of section 
306(b) and if the application contains assurances that any 
center assisted by such grant or contract shall be in 
reasonably close proximity to the majority of individuals 
eligible to use the comprehensive rehabilitation center.
  [(2) Any designated State unit which directly provides for 
comprehensive rehabilitation centers under subsection (c)(1)(B) 
shall use funds under this section in the same manner as any 
other grant recipient is required to use such funds.
  [(e) If within 20 years after the completion of any 
construction project for which funds have been paid under this 
section--
          [(1) the owner of the facility ceases to be a public 
        or nonprofit private agency or organization, or
          [(2) the facility ceases to be used for the purposes 
        for which it was leased or constructed (unless the 
        Commissioner determines, in accordance with 
        regulations, that there is good cause for releasing the 
        applicant or other owner from the obligation to do so),
the United States shall be entitled to recover from the grant 
recipient or other owner of the facility an amount which bears 
the same ratio to the value of the facility (or so much thereof 
as constituted an approved project or projects) at the time the 
United States seeks recovery as the amount of such Federal 
funds bore to the cost of renovating the facility under 
subsection (c)(1)(A)(ii). Such value shall be determined by 
agreement of the parties or by action brought in the United 
States district court for the district in which such facility 
is situated.
  [(f) The requirements of section 306 shall not apply to funds 
allotted under this section, except that subsections (g) and 
(h) of such section shall be applicable with respect to such 
funds.
  [(g) There are authorized to be appropriated to carry out 
this section such sums as may be necessary for each of the 
fiscal years 1993 through 1997.

                ;general grant and contract requirements

  [Sec. 306. (a) The provisions of this section shall apply to 
all projects approved and assisted under this title, except as 
otherwise provided in section 305(f). The Commissioner shall 
insure compliance with this section prior to making any grant 
or entering into any contract or agreement under this title, 
except projects authorized under section 303.
  [(b) To be approved, an application for assistance for a 
construction project, or for a project which involves 
construction, under this title must--
          [(1) contain or be supported by reasonable assurances 
        that (A) for a period of not less than twenty years 
        after completion of construction of the project it will 
        be used as a public or nonprofit facility, (B) 
        sufficient funds will be available to meet the non-
        Federal share of the cost of construction of the 
        project, and (C) sufficient funds will be available, 
        when construction of the project is completed, for its 
        effective use for its intended purpose;
          [(2) provide that Federal funds provided to any 
        agency or organization under this title will be used 
        only for the purposes for which provided and in 
        accordance with the applicable provisions of this 
        section and the section under which such funds are 
        provided;
          [(3) provide that the agency or organization 
        receiving Federal funds under this title will make an 
        annual report to the Commissioner, which the 
        Commissioner shall submit to the Secretary for 
        inclusion (in summarized form) in the annual report 
        submitted to the Congress under section 13;
          [(4) be accompanied or supplemented by plans and 
        specifications which have been approved by the Board 
        established by section 502, in which due consideration 
        shall be given to excellence of architecture and 
        design, and to the inclusion of works of art (not 
        representing more than 1 per centum of the cost of the 
        project), and which comply with regulations prescribed 
        by the Commissioner relating to minimum standards of 
        construction and equipment (promulgated with particular 
        emphasis on securing compliance with the requirements 
        of the Architectural Barriers Act of 1968 (Public Law 
        90-480)), and with regulations of the Secretary of 
        Labor relating to occupational health and safety 
        standards for facilities for community rehabilitation 
        programs; and
          [(5) contain or be supported by reasonable assurance 
        that any laborer or mechanic employed by any contractor 
        or subcontractor in the performance of work on any 
        construction aided by payments pursuant to any grant 
        under this section will be paid wages at rates not less 
        than those prevailing on similar construction in the 
        locality as determined by the Secretary of Labor in 
        accordance with the Davis-Bacon Act, as amended (40 
        U.S.C. 276a--276a-5); and the Secretary of Labor shall 
        have, with respect to the labor standards specified in 
        this paragraph, the authority and functions set forth 
        in Reorganization Plan Numbered 14 of 1950 (15 F.R. 
        3176) and section 2 of the Act of June 13, 1934, as 
        amended (42 U.S.C. 276c).
  [(c) Upon approval of any application for a grant or contract 
for a project under this title, the Commissioner shall reserve, 
from any appropriation available therefore, the amount of such 
grant or contract determined under this title. In case an 
amendment to an approved application is approved, or the 
estimated cost of a project is revised upward, any additional 
payment with respect thereto may be made from the appropriation 
from which the original reservation was made or the 
appropriation for the fiscal year in which such amendment or 
revision is approved.
  [(d) If, within twenty years after completion of any 
construction project for which funds have been paid under this 
title, the facility shall cease to be a public or nonprofit 
facility, the United States shall be entitled to recover from 
the applicant or other owner of the facility the amount bearing 
the same ratio to the then value (as determined by agreement of 
the parties or by action brought in the United States district 
court for the district in which such facility is situated) of 
the facility, as the amount of the Federal participation bore 
to the cost of construction of such facility.
  [(e) Payment of assistance or reservation of funds made 
pursuant to this title may be made (after necessary adjustment 
on account of previously made overpayments or underpayments) in 
advance or by way of reimbursement, and in such installments 
and on such conditions, as the Commissioner may determine.
  [(f) A project for construction of a facility for a community 
rehabilitation program which is primarily a workshop may, where 
approved by the Commissioner as necessary to the effective 
operation of the facility, include such construction as may be 
necessary to provide residential accommodations for use in 
connection with the rehabilitation of individuals with 
disabilities.
  [(g) No funds provided under this title may be used to assist 
in the construction of any facility which is or will be used 
for religious worship or any sectarian activity.
  [(h) When, in any State, funds provided under this title will 
be used for providing direct services to individuals with 
disabilities or for developing or improving community 
rehabilitation programs which will provide such services, such 
services must be carried out in a manner not inconsistent with 
the State plan approved pursuant to section 101.
  [(i) Prior to making any grant or entering into any contract 
under this title, the Commissioner shall afford reasonable 
opportunity to the appropriate State agency or agencies 
designated pursuant to section 101 to comment on such grant or 
contract.]

          Part B--Special Projects and Supplementary Services

                    authorization of appropriations

                     special demonstration programs

  Sec. 311. (a) [Subject to the provisions of section 306, the] 
The Commissioner may make grants to States and to public or 
nonprofit agenices and organizations to pay part or all of the 
costs of special projects and demonstrations (including related 
research and evaluation) for--
          (1) * * *
          * * * * * * *
        agencies and organizations to pay part or all of the 
        costs of special projects and demonstrations including 
        research and evaluation for youths who are individuals 
        with disabilities to provide job training and prepare 
        them for entry into the labor force. Such projects 
        shall be designed to demonstrate cooperative efforts 
        between local educational agencies, business and 
        industry, vocational rehabilitation programs, and 
        organizations representing labor and organizations 
        responsible for promoting or assisting in local 
        economic development.
  [(2) Services under this subsection may include--
          [(A) jobs search assistance;
          [(B) on-the-job training;
          [(C) job development including worksite modification 
        and use of advanced learning technology for skills 
        training;
          [(D) dissemination of information on program 
        activities to business and industry; and
          [(E) followup services for individuals placed in 
        employment.
  [(3) The Commissioner shall assure that projects shall be 
coordinated with other projects assisted under section 626 of 
the Individuals with Disabilities Education Act.]
  [(c)] (b)(1)(A) The Commissioner may make grants to public 
and non-profit community rehabilitation programs, designated 
State units, and other public and private agencies and 
organizations for the cost of developing special projects and 
demonstrations providing supported employment, including 
continuation of determinations of the effectiveness of natural 
supports or other alternatives to providing extended employment 
services.
  (B) Not less than one such grant shall be nationwide in 
scope. The grant shall (i) identify community-based models that 
can be replicated, (ii) identify impediments to the development 
of supported employment programs (including funding and cost 
considerations), and (iii) develop a mechanism to explore the 
use of existing community rehabilitation programs as well as 
other community-based programs.
  (C) Not less than two such grants shall serve individuals who 
either are low-functioning and deaf or low-functioning and 
hard-of-hearing.
  (2)(A) The Commissioner may make grants to public agencies 
and nonprofit private organizations for the cost of providing 
technical assistance to States in implementing part C of title 
VI of this Act.
  (B) Not less than one such grant shall be nationwide in 
scope. Each eligible applicant must have experience in training 
and provision of supported employment services.
  (3) There are authorized to be appropriated to carry out the 
provisions of this subsection such sums as may be necessary for 
each of [fiscal years 1993 through 1997] fiscal years 1998, 
1999, and 2000.
  [(d)] (c)(1) The Commissioner, subject to the provisions of 
section 306, shall make grants in accordance with the 
provisions of this subsection for the purpose of developing, 
expanding, and disseminating model statewide transitional 
planning services for youths who are individuals with severe 
disabilities. In order to facilitate similar model transitional 
programs, each grantee under this subsection shall--
          (A) collect data documenting the effectiveness of the 
        project, including data on the outcome of the 
        individuals served; and
          (B) disseminate the information to other States.
  (2) No grant may be made under this subsection unless an 
application is submitted to the Commissioner at such time, in 
such form, and in accordance with such procedures as the 
Commissioner may require.
  (3)(A) A second grant authorized by this subsection shall be 
made to a public agency in a predominantly rural western State.
  (B) Each application for a grant submitted pursuant to 
subparagraph (A) of this paragraph shall describe model 
transitonal planning services for both youths who are 
individuals with severe disabilities and other youths with 
disabilities designed to develop procedures, strategies, and 
techniques which may be replicated successfully in other rural 
States.
  (4) There are authorized to be appropriated such sums as may 
be necessary for each of the [fiscal years 1993 through 1997] 
fiscal years 1998, 1999, and 2000.
  [(e)(1) The Commissioner may make grants to public or private 
institutions to pay for the cost of developing special projects 
and demonstration projects to address the general education, 
counseling, vocational training, work transition, supported 
employment, job placement, followup, and community outreach 
needs of individuals who are either low-functioning and deaf or 
low-functioning and hard-of-hearing. Such projects shall 
provide educational and vocational rehabilitation services that 
are not otherwise available in the region involved and shall 
maximize the potential of such individuals, including 
individuals who are deaf and have additional severe 
disabilities.
  [(2) The Commissioner shall monitor the activities of the 
recipients of grants under this subsection to ensure that the 
recipients carry out the projects in accordance with paragraph 
(1), that the recipients coordinate the projects as described 
in paragraph (3), and that information about innovative methods 
of service delivery developed by such projects is disseminated.
  [(3) The Commissioner shall prepare and submit an annual 
report to Congress that includes an assessment of the manner in 
which the recipients carrying out the projects coordinate the 
projects with projects carried out by other public or nonprofit 
agencies serving individuals who are deaf, to expand or improve 
services for such individuals.]
  [(f)] (d)(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.

                           migratory workers

  Sec. 312. (a) * * *
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated for [fiscal years 1993 through 1997] fiscal 
years 1998, 1999, and 2000 such sums as may be necessary to 
carry out this section.

                     special recreational programs

  Sec. [316.] 313. (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 educationand 
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] 
fiscal years 1998, 1999, and 2000.

             [reader services for individuals who are blind

  [Sec. 314. (a) The Commissioner may award grants to States or 
to private nonprofit agencies or organizations of national 
scope (as so determined by the Commissioner) to--
          [(1) provide reading services to individuals who are 
        blind and who are not otherwise eligible for such 
        services through other State or Federal programs; and
          [(2) expand the quality and scope of reading services 
        available to individuals who are blind, and to assure 
        to the maximum extent possible that the reading 
        services provided under this Act will meet the reading 
        needs of such individuals attending institutions 
        providing elementary, secondary, or post-secondary 
        education, and will be adequate to assist such 
        individuals to obtain and continue in employment.
Any State which receives a grant under this section shall 
administer the reading services for which such grant is awarded 
through the designated State unit of the State.
  [(b) No grant shall be awarded under this section unless the 
applicant has submitted an application to the Secretary in such 
form, at such time, and containing such information as the 
Secretary may require.
  [(c) For purposes of this section, the term ``reading 
services'' means--
          [(1) the employment of persons who, by reading aloud, 
        can afford individuals who are blind ready access to 
        printed information;
          [(2) the transcription of printed information into 
        braille or sound recordings if such transcription is 
        performed pursuant to individual requests from 
        individuals who are blind for such services;
          [(3) the storage and distribution of braille 
        materials and sound recordings;
          [(4) the purchase, storage, and distribution of 
        equipment and materials necessary for the production, 
        duplication, and reproduction of braille materials and 
        sound recordings;
          [(5) the purchase, storage, and distribution of 
        equipment to individuals who are blind to provide them 
        with individual access to printed materials by 
        mechanical or electronic means; and
          [(6) radio reading services for individuals who are 
        blind.

           [interpreter services for individuals who are deaf

  [Sec. 315. (a) The Commissioner may make grants to designated 
State units to establish within each State a program of 
interpreter services (including interpreter referral services) 
which shall be made available to individuals who are deaf and 
to any public agency or private nonprofit organization involved 
in the delivery of assistance or services to individuals who 
are deaf.
  [(b) No grant may be made under this section unless an 
application therefor is submitted to the Commissioner in such 
form, at such times, and in accordance with such procedures as 
the Commissioner may require. Such application shall--
          [(1) provide assurances that the program to be 
        conducted under this section will be operated in areas 
        within the State which are specifically selected to 
        provide convenient locations for the provision of 
        services to the maximum feasible number of individuals 
        who are deaf;
          [(2) include a plan which describes, in sufficient 
        detail, the manner in which interpreter referral 
        services will be coordinated with the information and 
        referral programs required under section 101(a)(22);
          [(3) provide assurances that the program will seek to 
        enter into contractual or other arrangements, to the 
        extent appropriate, with private nonprofit 
        organizations comprised of primarily hearing-impaired 
        individuals (or private nonprofit organizations which 
        have the primary purpose of providing assistance or 
        services to hearing-impaired individuals) for the 
        operation of such programs;
          [(4) provide that any interpreter participating in 
        the program shall be required to meet minimum standards 
        established by the Commissioner; and
          [(5) contain such other information as the Secretary 
        may require.
  [(c) Any designated State unit receiving funds under this 
section may provide interpreter services, without cost, for a 
period of not to exceed one year to any public agency or 
private nonprofit organization which provides assistance to 
individuals who are deaf. At the end of such period, agencies 
or organizations receiving such services through referrals 
shall reimburse the designated State unit for the costs of such 
services. Funds may also be used for the purchase or rental of 
equipment necessary to provide assistance or services to 
individuals who are deaf.
  [(d) Funds provided to any designated State unit for any 
program under this section shall not be used for any 
administrative or related costs, nor shall such funds be used 
for assistance to individuals who are deaf and who are 
receiving rehabilitation services under any other provision of 
this Act.]
          * * * * * * *

                TITLE IV--NATIONAL COUNCIL ON DISABILITY

            establishment of national council on disability

          * * * * * * *

                    authorization of appropriations

  Sec. 405. There are authorized to be appropriated to carry 
out this title such sums as may be necessary for each of the 
[fiscal years 1993 through 1997] fiscal years 1998, 1999, and 
2000.
          * * * * * * *

                      TITLE V--RIGHTS AND ADVOCACY

              employment of individuals with disabilities

  Sec. 501. (a) There is established within the Federal 
Government an Interagency Committee on Employees who are 
Individuals with Disabilities (hereinafter in this section 
referred to as the ``Committee''), comprised of such members as 
the President may select, including the following (or their 
designees whose positions are Executive Level IV or higher): 
the Chairman of the Equal Employment Opportunity Commission, 
(hereafter in this section referred to as the ``Commission''), 
the Director of the Office of Personnel Management, the 
Secretary of Veterans Affairs, the Secretary of Labor, the 
Secretary of Education, and the Secretary of Health and Human 
Services. Either the Director of the Office of Personnel 
Management and the Chairman of the Commission shall serve as 
co-chairpersons of the Committee or the Director or Chairman 
shall serve as the sole chairperson of the Committee, as the 
Director and Chairman jointly determine, from time to time, to 
be appropriate. The resources of the President's Committees on 
Employment of [the Handicapped] People With Disabilities and on 
Mental Retardation shall be made fully available to the 
Committee. It shall be the purpose and function of the 
Committee (1) to provide a focus for Federal and other 
employment of individuals with disabilities, and to review, on 
a periodic basis, in cooperation with the Commission, the 
adequacy of hiring, placement, and advancement practices with 
respect to individuals with disabilities, by each department, 
agency, and instrumentality in the executive branch of 
Government, and to insure that the special needs of such 
individuals are being met; and (2) to consult with the 
Commission to assist the Commission to carry out its 
responsibilities under subsections (b), (c), and (d) of this 
section. On the basis of such review and consultation, the 
Committee shall periodically make to the Commission such 
recommendations for legislative and administrative changes as 
it deems necessary or desirable. The Commission shall timely 
transmit to the appropriate committees of Congress any such 
recommendations.
          * * * * * * *

       architectural and transportation barriers compliance board

  Sec. 502. (a)(1) There is established within the Federal 
Government the Architectural and Transportation Barriers 
Compliance Board (hereinafter referred to as the ``Access 
Board'') which shall be composed as follows:
          (A) * * *
          * * * * * * *
The [Chairperson] chairperson and vice-chairperson of the 
Access Board shall be elected by majority vote of the members 
of the Access Board to serve for terms of one year. When the 
chairperson is a member of the general public, the vice-
chairperson shall be a Federal official; and when the 
chairperson is a Federal official, the vice-chairperson shall 
be a member of the general public. Upon the expiration of the 
term as chairperson of a member who is a Federal official, the 
subsequent chairperson shall be a member of the general public; 
and vice versa.
          * * * * * * *
  (g)(1) The Access Board shall, at the end of each fiscal 
year, report its activities during the preceding fiscal year to 
the Congress. Such report shall include an assessment of the 
extent of compliance with the Acts cited in subsection (b) of 
this section, along with a description and analysis of 
investigations made and actions taken by the Access Board, and 
the reports and recommendations described in paragraphs (8) and 
(9) of such subsection.
  (2) The Access Board shall, at the same time that the Access 
Board transmits the report required under section 7(b) of the 
Act commonly known as the Architectural Barriers Act of 1968 
(42 U.S.C. 4157(b)), transmit the report to the [Committee on 
Education and Labor] Committee on Education and the Workforce 
of the House of Representatives and the Committee on Labor and 
Human Resources of the Senate.
          * * * * * * *

SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

  (a) * * *
          * * * * * * *
  [(n)] (i) Eligibility for Assistance.--As used in this 
section, the term ``eligible system'' means a protection and 
advocacy system that is established under part C of the 
Developmental Disabilities Assistance and Bill of Rights Act 
(42 U.S.C. 6041 et seq.) and that meets the requirements of 
subsection (f).
          * * * * * * *
  (l) Report.--The Commissioner shall annually prepare and 
submit to the [Committee on Education and Labor] Committee on 
Education and the Workforce of the House of Representatives and 
the Committee on Labor and Human Resources of the Senate a 
report describing the types of services and activities being 
undertaken by programs funded under this section, the total 
number of individuals served under this section, the types of 
disabilities represented by such individuals, and the types of 
issues being addressed on behalf of such individuals.
  (m) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section such sums as may be 
necessary for [each of the fiscal years 1993, 1994, 1995, 1996, 
and 1997] each of the fiscal years 1998, 1999, and 2000.

  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 (asdefined 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 ofHealth 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] A--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) * * *
          * * * * * * *

                    authorization of appropriations

  Sec. 622. There are authorized to be appropriated to carry 
out the provisions of this part, such sums as may be necessary 
for [each of fiscal years 1993 through 1997] each of the fiscal 
years 1998, 1999, and 2000.

 Part [C] B--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. 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] each of the fiscal years 1998, 1999, and 
2000.

   [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 VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT 
                                 LIVING

            CHAPTER 1--INDIVIDUALS WITH SEVERE DISABILITIES

          * * * * * * *

                  PART B--INDEPENDENT LIVING SERVICES

          * * * * * * *

SEC. 714. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
part such sums as may be necessary for [each of the fiscal 
years 1993, 1994, 1995, 1996, and 1997] each of the fiscal 
years 1998, 1999, and 2000.

                 PART C--CENTERS FOR INDEPENDENT LIVING

SEC. 721. PROGRAM AUTHORIZATION.

  (a) * * *
          * * * * * * *
  (c) In General.--
          (1) States.--
                  (A) Population basis.--After the reservation 
                required by subsection (b) has been made, and 
                except as provided in subparagraphs (B) and 
                (C)[,,], from the remainder of the amounts 
                appropriated for each such fiscal year to carry 
                out this part, the Commissioner shall make an 
                allotment to each State whose State plan has 
                been approved under section 706 of an amount 
                bearing the same ratio to such remainder as the 
                population of the State bears to the population 
                of all States.
          * * * * * * *

SEC. 727. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
part such sums as may be necessary for [each of the fiscal 
years 1993, 1994, 1995, 1996, and 1997] each of the fiscal 
years 1998, 1999, and 2000.
          * * * * * * *

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

          * * * * * * *

SEC. 753. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
chapter such sums as may be necessary for [each of the fiscal 
years 1993 through 1997] each of the fiscal years 1998, 1999, 
and 2000.
          * * * * * * *

        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] 1998 
through 2000.
  (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] 1998 
through 2000.

[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 appoint- ees.--
                                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. 802. DEMONSTRATION PROJECTS TO INCREASE CLIENT CHOICE.

  (a) 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.
  (b) Use of Funds.--An entity that receives a grant under this 
section shall use the grant only--
          (1) for activities that are directly related to 
        planning, operating, and evaluating the demonstration 
        projects; and
          (2) to supplement, and not supplant, funds made 
        available from Federal and non-Federal sources for such 
        projects.
  (c) Application.--Any eligible entity that desires to receive 
a grant under this section shall submit an application at such 
time,in such manner, and containing such information and 
assurances as the Commissioner may require, including--
          (1) a description of--
                  (A) 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;
                  (B) 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
                  (C) the outreach activities to be conducted 
                by the applicant to obtain eligible clients; 
                and
          (2) assurances that a written plan will be 
        established with the full participation of the client, 
        which plan shall, at a minimum, include--
                  (A) a statement of the vocational 
                rehabilitation goals to be achieved;
                  (B) 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
                  (C) objective criteria, an evaluation 
                procedure, and a schedule, for determining 
                whether such goals are being achieved.
  (d) Award of Grants.--In selecting entities to receive grants 
under subsection (a), the Commissioner shall take into 
consideration the--
          (1) diversity of strategies used to increase client 
        choice, including selection among qualified service 
        providers;
          (2) geographic distribution of projects; and
          (3) diversity of clients to be served.
  (e) Records.--Entities that receive grants under subsection 
(a) shall maintain such records as the Commissioner may require 
and comply with any request from the Commissioner for such 
records.
  (f) Direct Services.--At least 80 percent of the funds 
awarded for any project under this section shall be used for 
direct services, as specifically chosen by eligible clients.
  (g) 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 section for the fiscal year.
  (h) Definitions.--For the purposes of this section:
          (1) Direct services.--The term ``direct services'' 
        means vocational rehabilitation services, as described 
        in section 103(a).
          (2) 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.

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)] (a) 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)] (b) Parent Information and Training Programs.--
          (1) * * *
          * * * * * * *
  [(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)] (c) 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)] (f) 
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.]
                              ----------                              


       SECTION 701 OF THE JOB TRAINING REFORM AMENDMENTS OF 1992

[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 totalnumber 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.]
                              ----------                              


                     SECTION 7 OF PUBLIC LAW 98-524

                       [job training regulations

  [Sec. 7. Notwithstanding section 629.38(e)(2)(iii) of title 
20 of the Code of Federal Regulations, relating to allowable 
training costs under the Job Training Partnership Act, payment 
for training packages purchased competitively pursuant to 
section 141(d)(3) of such Act in the case of youth shall 
include payment for the full unit price if the training results 
in either placement in unsubsidized employment or the 
attainment of an outcome specified in section 106(b)(2) of such 
Act.]
                              ----------                              


 SECTION 402 OF THE VETERANS' BENEFITS AND PROGRAMS IMPROVEMENT ACT OF 
                                  1988

SEC. 402. COORDINATION OF INFORMATION AND ASSISTANCE.

  (a) Purpose.--It is the purpose of this section to ensure 
that veterans who are dislocated workers eligible for 
assistance under [title III of the Job Training Partnership Act 
(29 U.S.C. 1651 et seq.)] the Employment, Training, and 
Literacy Enhancement Act or are otherwise unemployed receive, 
to the extent feasible, assistance (including information on 
vocational guidance or vocational counseling, or information on 
both vocational guidance or vocational counseling), including 
information on counseling, needed by such veterans--
          (1) * * *
          * * * * * * *
  (c) Coordination of Department of Labor Activities.--The 
Assistant Secretary of Labor for Veterans' Employment and 
[Training, in consultation with the office designated or 
created under section 322(b) of the Job Training Partnership 
Act,] Training shall, except as the Secretary of Labor may 
otherwise direct, coordinate the activities of the components 
of the Department of Labor performing the responsibilities of 
the Secretary of Labor under this section.
  (d) Covered Services and Benefits.--This section applies with 
respect to the following services and benefits:
          (1) Employment assistance [under--
                  [(A) part C of title IV of the Job Training 
                Partnership Act (96 Stat. 1380; 29 U.S.C. 1721 
                et seq.); and
                  [(B) the Veterans'] under the Veterans' Job 
                Training Act (97 Stat. 443; 29 U.S.C. 1721 
                note).
          (2) [Employment and training assistance for 
        dislocated workers under title III of the Job Training 
        Partnership Act (29 U.S.C. 1651 et seq.).] Employment, 
        training, and literacy activities under the Employment, 
        Training, and Literacy Enhancement Act.
          * * * * * * *
                              ----------                              


                       VETERANS' JOB TRAINING ACT

          * * * * * * *

                    coordination with other programs

  Sec. 13. (a) * * *
  (b) Assistance may not be paid under this Act to an employer 
on behalf of an eligible veteran for any period if the employer 
receives for that period any other form of assistance on 
account of the training or employment of the veteran, including 
[assistance under the Job Training Partnership Act (29 U.S.C. 
1501 et seq.)] assistance under the Employment, Training, and 
Literacy Enhancement Act or a credit under section 44B of the 
Internal Revenue Code of 1954 (26 U.S.C. 44B) (relating to 
credit for employment of certain new employees).
          * * * * * * *

                               counseling

  Sec. 14. (a) * * *
  (b)(1) The Secretary shall provide for a program under 
which--
          (A) * * *
          * * * * * * *
  (3) The Secretary and the Administrator shall jointly 
provide, to the extent feasible--
          (A) * * *
          (B) a program of information services under which--
                  (i) each veteran who enters into a program of 
                job training under this Act and each employer 
                participating under this Act is informed of the 
                supportive services and resources available to 
                the veteran (I) under clauses (A) and (B), (II) 
                through Veterans' Administration counseling and 
                career-development activities (especially, in 
                the case of a Vietnam-era veteran, readjustment 
                counseling services under section 612A of such 
                title) and [under part C of title IV of the Job 
                Training Partnership Act (29 U.S.C. 1501 et 
                seq.)] under the Employment, Training, and 
                Literacy Enhancement Act, and (III) through 
                other appropriate agencies in the community; 
                and
          * * * * * * *

           information and outreach; use of agency resources

  Sec. 15. (a) * * *
          * * * * * * *
  (c)(1) * * *
  (2) In carrying out the responsibilities of the Secretary 
under this Act, the Secretary shall make maximum use of the 
services of Directors and Assistant Directors for Veterans' 
Employment and Training, disabled veterans' outreach program 
specialists, and employees of local offices appointed pursuant 
to sections 4103, 4103A, and 4104 of title 38, Unites States 
Code. The Secretary shall also use such resources as are 
available under [part C of title IV of the Job Training 
Partnership Act (29 U.S.C. 1501 et seq.)] the Employment, 
Training, and Literacy Enhancement Act. To the extent that the 
Administrator withholds approval of veterans' applications 
under this Act pursuant to section 5(b)(2)(B), the Secretary 
shall take steps to assist such veterans in taking advantage of 
opportunities that may be available to them under [title III 
of] that Act or under any other program, carried out with funds 
provided by the Secretary.
          * * * * * * *
                              ----------                              


   SECTION 3 OF THE WORKER ADJUSTMENT AND RETRAINING NOTIFICATION ACT

SEC. 3. NOTICE REQUIRED BEFORE PLANT CLOSINGS AND MASS LAYOFFS.

  (a) Notice to Employees, State Dislocated Worker Units, and 
Local Governments.--An employer shall not order a plant closing 
or mass layoff until the end of a 60-day period after the 
employer serves written notice of such an order--
          (1) * * *
          (2) to the State dislocated worker unit (designated 
        or created under [title III of the Job Training 
        Partnership Act] title II, III, or IV of the 
        Employment, Training, and Literacy Enhancement Act) and 
        the chief elected official of the unit of local 
        government within which such closing or layoff is to 
        occur.
          * * * * * * *
                              ----------                              


              SECTION 6703 OF TITLE 31, UNITED STATES CODE

Sec. 6703. Qualification for payment

  (a) In General.--The Secretary shall issue regulations 
establishing procedures under which eligible units of general 
local government are required to provide notice to the 
Secretary of the units' proposed use of assistance under this 
chapter. Subject to subsection (c), the assistance provided 
shall be used, in amounts determined by the unit, for 
activities under, or for activities that are substantially 
similar to an activity under, 1 or more of the following 
programs and the notice shall identify 1 or more of the 
following programs for each such use:
          (1) * * *
          * * * * * * *
          [(4) Programs under title II or IV of the Job 
        Training Partnership Act (29 U.S.C. 1601 et seq.).]
          (4) Programs under title III or IV of the Employment, 
        Training, and Literacy Enhancement Act.
          * * * * * * *
                              ----------                              


SECTION 512 OF THE VETERANS' REHABILITATION AND EDUCATION AMENDMENTS OF 
                                  1980

    employment assistance and services for veterans ineligible for 
                      assistance under chapter 41

  Sec. 512. The Secretary of Labor shall assure that any 
veteran who is made ineligible for employment assistance under 
chapter 41 of title 38, United States Code, by virtue of the 
amendments made by section 503(1) of this Act shall be provided 
with the employment assistance and services made available 
under the provisions of the Act entitled ``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'', approved June 6, 1933 (commonly 
referred to as the ``Wagner-Peyser Act''), (29 U.S.C. 49-49k), 
[the Comprehensive Employment and Training Act (29 U.S.C. et 
seq.),] the Employment, Training, and Literacy Enhancement Act, 
and other applicable provisions of law.
                              ----------                              


                      TITLE 38, UNITED STATES CODE

          * * * * * * *

              PART III--READJUSTMENT AND RELATED BENEFITS

          * * * * * * *

    CHAPTER 41--JOB COUNSELING, TRAINING, AND PLACEMENT SERVICE FOR 
                                VETERANS

          * * * * * * *

Sec. 4102A. Assistant Secretary of Labor for Veterans' Employment and 
                    Training; Regional Administrators

  (a) * * *
          * * * * * * *
  (d) The Assistant Secretary of Labor for Veterans' Employment 
and Training shall promote and monitor participation of 
qualified veterans and eligible persons in employment and 
training opportunities under [the Job Training Partnership Act] 
the Employment, Training, and Literacy Enhancement Act and 
other federally funded employment and training programs.
          * * * * * * *

Sec. 4103A. Disabled veterans' outreach program

  (a) * * *
          * * * * * * *
  (c) Each disabled veterans' outreach program specialist shall 
carry out the following functions for the purpose of providing 
services to eligible veterans in accordance with the priorities 
set forth in subsection (b) of this section:
          (1) * * *
          * * * * * * *
          (4) Provision of appropriate assistance to community-
        based groups and organizations and appropriate grantees 
        under other Federal and federally funded employment and 
        training programs (including part C of title IV of the 
        [Job Training Partnership Act (29 U.S.C. 1501 et 
        seq.))] Employment, Training, and Literacy Enhancement 
        Act) in providing services to such veterans.
          * * * * * * *

            CHAPTER 42--EMPLOYMENT AND TRAINING OF VETERANS

          * * * * * * *

Sec. 4213. Eligibility requirements for veterans under Federal 
                    employment and training programs

  Any (1) amounts received as pay or allowances by any person 
while serving on active duty, (2) period of time during which 
such person served on such active duty, and (3) amounts 
received under chapters 11, 13, 30, 31, 35, and 36 of this 
title by an eligible veteran, any amounts received by an 
eligible person under chapters 13 and 35 of such title, and any 
amounts received by an eligible person under chapter 106 of 
title 10, shall be disregarded in determining eligibility under 
any public service employment program, any emergency employment 
program, any job training program assisted under the Economic 
Opportunity Act of 1964, any employment or training program 
assisted under the [Job Training Partnership Act (29 U.S.C. 
1501 et seq.),] Employment, Training, and Literacy Enhancement 
Act, or any other employment or training (or related) program 
financed in whole or in part with Federal funds.
          * * * * * * *
                              ----------                              


          SECTION 23 OF THE UNITED STATES HOUSING ACT OF 1937

SEC. 23. FAMILY SELF-SUFFICIENCY PROGRAM.

  (a) * * *
  (b) Establishment of Program.--
          (1) * * *
          (2) Exception.--The Secretary shall not require a 
        public housing agency to carry out a local program 
        under subsection (a) if the public housing agency 
        provides certification (as such term is defined under 
        title I of the Cranston-Gonzalez National Affordable 
        Housing Act) to the Secretary, that the establishment 
        and operation of the program is not feasible because of 
        local circumstances, which may include--
                  (A) lack of supportive services accessible to 
                eligible families, which shall include 
                insufficient availability of resources for 
                programs under [the Job Training Partnerships 
                Act or the] the Employment, Training, and 
                Literacy Enhancement Act or the Job 
                Opportunities and Basic Skills Training Program 
                under part F of title IV of the Social Security 
                Act;
          * * * * * * *
  (f) Program Coordinating Committee.--
          (1) * * *
          (2) Membership.--The program coordinating committee 
        may consist of representatives of the public housing 
        agency, the unit of general local government, the local 
        agencies (if any) responsible for carrying out 
        [programs under the Job Training Partnership Act and 
        the] programs under title II, III, or IV of the 
        Employment, Training, and Literacy Enhancement Act and 
        the Job Opportunities and Basic Skills Training Program 
        under part F of title IV of the Social Security Act, 
        and other organizations, such as other State and local 
        welfare and employment agencies, public and private 
        education or training institutions, nonprofit service 
        providers, and private businesses. The public housing 
        agency may, in consultation with the chief executive 
        officer of the unit of general local government, 
        utilize an existing entity as the program coordinating 
        committee if it meets the requirements of this 
        subsection.
  (g) Action Plan.--
          (1) * * *
          (2) Development of plan.--In developing the plan, the 
        public housing agency shall consult with the chief 
        executive officer of the applicable unit of general 
        local government, the program coordinating committee 
        established under subsection (f), representatives of 
        residents of the public housing, any local agencies 
        responsible for [programs under the Job Training 
        Partnership Act and the] programs under title II, III, 
        or IV of the Employment, Training, and Literacy 
        Enhancement Act and the Job Opportunities and Basic 
        Skills Training Program under part F of title IV of the 
        Social Security Act, other appropriate organizations 
        (such as other State and local welfare and employment 
        or training institutions, child care providers, 
        nonprofit service providers, and private businesses), 
        and any other public and private service providers 
        affected by the operation of the local program.
          (3) Contents of plan.--The Secretary shall require 
        that the action plan contain at a minimum--
                  (A) * * *
          * * * * * * *
                  (H) assurances satisfactory to the Secretary 
                that development of the services and activities 
                under the local program has been coordinated 
                with the Job Opportunities and Basic Skills 
                Training Program under part F of title IV of 
                the Social Security Act and [program under the 
                Job Training Partnership Act and any other] 
                program under title II, III, or IV of the 
                Employment, Training, and Literacy Enhancement 
                Act and any other relevant employment, child 
                care, transportation, training, and education 
                programs in the applicable area, and that 
                implementation will continue to be coordinated, 
                in order to avoid duplication of services and 
                activities; and
          * * * * * * *
                              ----------                              


                 SECTION 504 OF THE HOUSING ACT OF 1949

      Sec. 504. (a) * * *
          * * * * * * *
      (c)(1) * * *
          * * * * * * *
      (3) In carrying out this subsection, the Secretary shall 
(A) implement the weatherization standards described in 
paragraphs (2)(A) and (3) of section 413(b) of the Energy 
Conservation in Existing Buildings Act of 1976, and (B) provide 
that, with respect to any dwelling unit, not more than $800 of 
any grant made under this section be expended on weatherization 
materials and related matters described in section 415(c) of 
the Energy Conservation in Existing Buildings Act of 1976, 
except that the Secretary shall increase such amount to not 
more than $1,500 to cover labor costs in areas where the 
Secretary, in consultation with the Secretary of Labor, 
determines there is an insufficient number of volunteers and 
training participants and public service employment workers, 
assisted [pursuant to the Comprehensive Employment and Training 
Act of 1973 or the] pursuant to the Employment, Training, and 
Literacy Enhancement Act or the Older American Community 
Service Employment Act, available to work on weatherization 
projects under the supervision of qualified supervisors.
          * * * * * * *
                              ----------                              


                      OLDER AMERICANS ACT OF 1965

          * * * * * * *

                   TITLE II--ADMINISTRATION ON AGING

          * * * * * * *

                      federal agency consultation

      Sec. 203. (a)(1) * * *
  (2) The head of each department, agency, or instrumentality 
of the Federal Government proposing to establish programs and 
services substantially related to the objectives of this Act 
shall consult with the Assistant Secretary prior to the 
establishment of such programs and services. To achieve 
appropriate coordination, the head of each department, agency, 
or instrumentality of the Federal Government administering any 
program substantially related to the objectives of this Act, 
particularly administering any program referred to in 
subsection (b), shall consult and cooperate with the Assistant 
Secretary in carrying out such program. [In particular, the 
Secretary of Labor shall consult and cooperate with the 
Assistant Secretary in carrying out the Job Training 
Partnership Act (29 U.S.C. 1501 et seq.).] In particular, the 
Secretary of Labor and the Secretary of Education shall consult 
and cooperate with the Assistant Secretary in carrying out the 
Employment, Training, and Literacy Enhancement Act of 1997.
      (b) For the purposes of subsection (a), programs related 
to the objectives of this Act shall include--
          [(1) the Job Training Partnership Act,]
          (1) the Employment, Training, and Literacy 
        Enhancement Act,
          * * * * * * *

       TITLE V--COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS

          * * * * * * *

          older american community service employment program

      Sec. 502. (a) * * *
      (b)(1) In order to carry out the provisions of this 
title, the Secretary is authorized to 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 further the purposes and goals of the 
program. Such agreements may include provisions for the payment 
of costs, as provided in subsection (c), of projects developed 
by such organizations and agencies in cooperation with the 
Secretary in order to make the program effective or to 
supplement the program. No payment shall be made by the 
Secretary toward the cost of any project established or 
administered by any such organization or agency unless the 
Secretary determines that such project--
          (A) * * *
          * * * * * * *
          (N)(i) will prepare an assessment of--
                  (I) the participants' skills and talents;
                  (II) their need for supportive services; and
                  (III) their physical capabilities;
        except to the extent such project has, for the 
        particular participant involved, an assessment of such 
        skills and talents, such need, or such capabilities 
        prepared recently pursuant to another employment or 
        training program (such as a program under [the Job 
        Training Partnership Act (29 U.S.C. 1501 et seq.)] the 
        Employment, Training, and Literacy Enhancement Act or 
        the Carl D. Perkins Vocational and Applied Technology 
        Education Act (20 U.S.C. 2301 et seq.));
          * * * * * * *
      (e)(1) * * *
      (2) The Secretary shall issue, and amend from time to 
time, criteria designed to assure that agreements entered into 
under paragraph (1) of this subsection--
          (A) * * *
          * * * * * * *
                  (C) require the coordination of projects 
                carried out under such agreements, with the 
                programs [carried out under section 124 of the 
                Job Training Partnership Act (29 U.S.C. 1534)] 
                employment and training activities carried out 
                under title III of the Employment, Training, 
                and Literacy Enhancement Act.
          * * * * * * *

                             administration

      Sec. 503. (a) * * *
      (b)(1) The Secretary shall coordinate the program 
assisted under this title with programs authorized under [the 
Job Training Partnership Act,] the Employment, Training, and 
Literacy Enhancement Act, the Community Services Block Grant 
Act, and the Vocational Education Act of 1984. The Secretary 
shall coordinate the administration of this title with the 
administration of titles III, IV, and VI by the Assistant 
Secretary for Aging, to increase the likelihood that eligible 
individuals for whom employment opportunities under this title 
are available and who need services under such titles receive 
such services. Appropriations under this Act may not be used to 
carry out any program under [the Job Training Partnership Act,] 
the Employment, Training, and Literacy Enhancement Act, the 
Community Services Block Grant Act, or the Vocational Education 
Act of 1984. The preceding sentence shall not be construed to 
prohibit carrying out projects under this title jointly with 
programs, projects, or activities under any Act specified in 
such sentence.
          * * * * * * *
                              ----------                              


 SECTION 1801 OF THE OMNIBUS CRIME CONTROL AND SAFE STREETS ACT OF 1968

SEC. 1801. GRANT AUTHORIZATION.

  (a) * * *
  (b) Alternative Methods.--The alternative methods of 
punishment referred to in subsection (a) should ensure certain 
punishment for young offenders and promote reduced recidivism, 
crime prevention, and assistance to victims, particularly for 
young offenders who can be punished more effectively in an 
environment other than a traditional correctional facility, 
including--
          (1) * * *
          * * * * * * *
          (3) innovative projects, such as projects consisting 
        of education and job training activities for 
        incarcerated young offenders, modeled, to the extent 
        practicable, after activities carried out under part B 
        of title IV of the [Job Training Partnership Act 
        (relating to Job Corps) (29 U.S.C. 1691 et seq.)] 
        Employment, Training, and Literacy Enhancement Act and 
        projects that provide family counseling;
          * * * * * * *
                              ----------                              


     SECTION 2 OF THE ENVIRONMENTAL PROGRAMS ASSISTANCE ACT OF 1984

                         environmental programs

  Sec. 2. (a) Notwithstanding any other provision of law 
relating to Federal grants and cooperative agreements, the 
Administrator of the Environmental Protection Agency is 
authorized to make grants to, or enter into cooperative 
agreements with, private nonprofit organizations designated by 
the Secretary of Labor under title V of the Older Americans Act 
of 1965 to utilize the talents of older American in programs 
authorized by other provisions of law administered by the 
Administrator (and consistent with such provisions of law) in 
providing technical assistance to Federal, State, and local 
environmental agencies for projects of pollution prevention, 
abatement, and control. Funding for such grants or agreements 
may be made available form such programs or through title V of 
the Older Americans Act of 1965 and title IV of the [Job 
Training Partnership Act] Employment, Training, and Literacy 
Enhancement Act.
          * * * * * * *
                              ----------                              


                 DOMESTIC VOLUTEER SERVICE ACT OF 1973

          * * * * * * *

            TITLE I--NATIONAL VOLUNTEER ANTIPOVERTY PROGRAMS

                Part A--Volunteers in Service to America

          * * * * * * *

                 selection and assignment of volunteers

  Sec. 103. (a) * * *
          * * * * * * *
  (d) The Director shall provide each low-income community 
volunteer with an individual plan for job advancement or for 
transition to a situation leading to gainful employment. 
[Whenever feasible, such efforts shall be coordinated with an 
appropriate private industry council under the Job Training 
Partnership Act.] Whenever feasible, such efforts shall be 
coordinated with a local workforce development board 
established under section 122 of the Employment, Training, and 
Literacy Enhancement Act.
          * * * * * * *

                          vista literacy corps

  Sec. 109. (a) * * *
          * * * * * * *
  (c)(1) The Director shall assign volunteers under this 
subsection to projects and programs that utilize volunteers to 
address the needs of illiterate individuals.
  (2) Programs and projects under this subsection may be 
administered by public or private nonprofit agencies and 
organizations including local, State, and national literacy 
councils and organizations; community-based nonprofit 
organizations; local and State education agencies; local and 
State agencies administering adult basic education programs; 
educational institutions; libraries; antipoverty organizations; 
local, municipal, and State governmental entities, and 
administrative entities designated to administer jobtraining 
plans under the [Job Training Partnership Act] Employment, Training, 
and Literacy Enhancement Act.
          * * * * * * *
  (d)(1) The Director shall assign volunteers under this 
subsection to projects and programs that primarily utilize 
volunteers to tutor illiterate individuals.
  (2) Programs and projects under this subsection may be 
administered by local public or private nonprofit agencies and 
organizations including local literacy councils and 
organizations, community-based nonprofit organizations, local 
educational agencies, local agencies administering adult basic 
education programs, local educational institutions, libraries, 
antipoverty organizations, local and municipal governmental 
entities, and administrative entities designated to administer 
job training plans under the [Job Training Partnership Act] 
Employment, Training, and Literacy Enhancement Act.
          * * * * * * *
                              ----------                              


           SECTION 304 OF THE AGE DISCRIMINATION ACT OF 1975

                              regulations

  Sec. 304. (a) * * *
          * * * * * * *
  (c)(1) Except with respect to any program or activity 
receiving Federal financial assistance for public service 
employment under [the Comprehensive Employment and Training Act 
of 1974 (29 U.S.C. 801, et seq.), as amended,] the Employment, 
Training, and Literacy Enhancement Act nothing in this title 
shall be construed to authorize action under this title by any 
Federal department or agency with respect to any employment 
practice of any employer, employment agency, or labor 
organization, or with respect to any labor-management joint 
apprenticeship training program.
          * * * * * * *
                              ----------                              


       SECTION 414 OF THE ENERGY CONSERVATION AND PRODUCTION ACT

                          financial assistance

  Sec. 414. (a) * * *
  (b) The Secretary shall not provide financial assistance 
under this part unless the applicant has provided reasonable 
assurances that it has--
          (1) * * *
          * * * * * * *
          (3) established policies and procedures designed to 
        assure that financial assistance provided under this 
        part will be used to supplement, and not to supplant, 
        State or local funds, and, to the extent practicable, 
        to increase the amounts of such funds that would be 
        made available in the absence of Federal funds for 
        carrying out the purpose of this part, including plans 
        and procedures (A) for securing, to the maximum extent 
        practicable, the services of volunteers and training 
        participants and public service employment workers, 
        pursuant to [the Comprehensive Employment and Training 
        Act of 1973] the Employment, Training, and Literacy 
        Enhancement Act, to work under the supervision of 
        qualified supervisors and foremen, (B) for using 
        Federal financial assistance under this part to 
        increase the portion of low-income weatherization 
        assistance that the State obtains from non-Federal 
        sources, including private sources, and (C) for 
        complying with the limitations set forth in section 
        415; and
          * * * * * * *
                              ----------                              


       SECTION 233 OF THE NATIONAL ENERGY CONSERVATION POLICY ACT

SEC. 233. AVAILABILITY OF LABOR.

  The following actions shall be taken in order to assure that 
there is a sufficient number of volunteers and training 
participants and public service employment workers, assisted 
pursuant to [the Comprehensive Employment and Training Act of 
1973] the Employment, Training, and Literacy Enhancement Act 
and the Older American Community Service Employment Act, 
available to work in support of weatherization programs 
conducted under part A of the Energy Conservation in Existing 
Buildings Act of 1976, section 222(a)(12) of the Economic 
Opportunity Act of 1964, and section 504 of the Housing Act of 
1949:
          (1) * * *
          * * * * * * *
                              ----------                              


     SECTION 617 OF THE COMMUNITY ECONOMIC DEVELOPMENT ACT OF 1981

                  establishment and scope of programs

  Sec. 617. (a) The Secretary is authorized to provide 
financial assistance in the form of grants to nonprofit and for 
profit community development corporations and other affiliated 
and supportive agencies and organizations associated with 
qualifying community development corporations for the payment 
of all or part of the cost of programs which are designed to 
carry out the purposes of this part. Financial assistance shall 
be provided so that each community economic development program 
is of sufficient size, scope, and duration to have an 
appreciable impact on the area served. Such programs may 
include--
          (1) * * *
          * * * * * * *
          (3) training and public service employment programs 
        and related services for unemployed or low-income 
        persons which support and complement community 
        development programs financed under this part, 
        including, without limitation, [activities such as 
        those described in the Comprehensive Employment and 
        Training Act] employment and training activities 
        described in the Employment, Training, and Literacy 
        Enhancement Act; and
          * * * * * * *
                              ----------                              


     SECTION 103 OF THE STEWART B. MCKINNEY HOMELESS ASSISTANCE ACT

SEC. 103. GENERAL DEFINITION OF HOMELESS INDIVIDUAL.

  (a) * * *
      (b) Income Eligibility.--
          (1) * * *
          (2) Exception.--Notwithstanding paragraph (1), a 
        homeless individual shall be eligible for assistance 
        under [the Job Training Partnership Act] the 
        Employment, Training, and Literacy Enhancement Act.
          * * * * * * *
                              ----------                              


               NATIONAL AND COMMUNITY SERVICE ACT OF 1990

          * * * * * * *

      TITLE I--NATIONAL AND COMMUNITY SERVICE STATE GRANT PROGRAM

          * * * * * * *

                 Subtitle F--Administrative Provisions

SEC. 177. NONDUPLICATION AND NONDISPLACEMENT.

  (a) * * *
          * * * * * * *
  (d) Treatment of Benefits.--Section 142(b) of the [Job 
Training Partnership Act] Employment, Training, and Literacy 
Enhancement Act shall apply to the projects conducted under 
this title as such projects were conducted under the [Job 
Training Partnership Act] Employment, Training, and Literacy 
Enhancement Act.
          * * * * * * *

           Subtitle H--Investment for Quality and Innovation

          * * * * * * *

SEC. 198C. MILITARY INSTALLATION CONVERSION DEMONSTRATION PROGRAMS.

  (a) * * *
  (b) Definitions.--As used in this section:
          (1) Affected military installation.--The term 
        ``affected military installation'' means [a military 
        installation described in section 325(e)(1) of the Job 
        Training Partnership Act (29 U.S.C. 1662d(e)(1)).] a 
        military installation being closed or realigned under--
                  (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).
          * * * * * * *
  (e) Participants.--
          (1) Eligibility.--A person shall be eligible to be 
        selected as a participant in a project carried out 
        through a demonstration program if the person is--
                  (A) an economically disadvantaged individual; 
                and
                  (B)(i) a person described in section 153(b);
                  (ii) a youth described in section 154(a); or
                  [(iii) an eligible youth described in section 
                423 of the Job Training Partnership Act (29 
                U.S.C. 1693).]
                  (iii) an at-risk youth (as defined in section 
                4 of the Employment, Training, and Literacy 
                Enhancement Act).
          * * * * * * *

       Subtitle I--American Conservation and Youth Service Corps

          * * * * * * *

SEC. 199L. JOINT PROGRAMS.

  (a) Development.--The Corporation may develop, in cooperation 
with the heads of other Federal agencies, regulations designed 
to permit, where appropriate, joint programs in which 
activities supported with assistance made available under this 
subtitle are coordinated with activities supported with 
assistance made available under programs administered by the 
heads of such agencies (including [the Job Training Partnership 
Act (29 U.S.C. 1501 et seq.)] the Employment, Training, and 
Literacy Enhancement Act).
          * * * * * * *
                              ----------                              


           CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT

          * * * * * * *

 TITLE IV--HOMEOWNERSHIP AND OPPORTUNITY FOR PEOPLE EVERYWHERE PROGRAMS

          * * * * * * *

                 Subtitle D--HOPE for Youth: Youthbuild

          * * * * * * *

SEC. 454. IMPLEMENTATION GRANTS.

  (a) * * *
          * * * * * * *
  (c) Application.--
          (1) Form and procedure.--An application for an 
        implementation grant shall be submitted by an applicant 
        in such form and in accordance with such procedures as 
        the Secretary shall establish.
          (2) Minimum requirements.--The Secretary shall 
        require that an application contain at a minimum--
                  (A) * * *
          * * * * * * *
                  (H) a description of how the proposed program 
                will be coordinated with other Federal, State, 
                and local activities and activities conducted 
                by Indian tribes, including vocational, adult 
                and bilingual education programs, job training 
                provided with funds available under [the Job 
                Training Partnership Act] the Employment, 
                Training, and Literacy Enhancement Act and the 
                Family Support Act of 1988, and housing and 
                community development programs, including 
                programs that receive assistance under section 
                106 of the Housing and Community Development 
                Act of 1974;
          * * * * * * *
                  (M) a description of the commitments for any 
                additional resources to be made available to 
                the program from the applicant, from recipients 
                of other Federal, State or local housing and 
                community development assistance who will 
                sponsor any part of the construction, 
                rehabilitation, operation and maintenance, or 
                other housing and community development 
                activities undertaken as part of the program, 
                or from other Federal, State or local 
                activities and activities conducted by Indian 
                tribes, including, but not limited to, 
                vocational, adult and bilingual education 
                programs, and job training provided with funds 
                available under [the Job Training Partnership 
                Act] the Employment, Training, and Literacy 
                Enhancement Act and the Family Support Act of 
                1988;
          * * * * * * *
  (d) Selection Criteria.--The Secretary shall establish 
selection criteria for assistance under this section, which 
shall include--
          (1) the qualifications or potential capabilities of 
        the applicant;
          * * * * * * *
          (7) the commitment of other resources to the program 
        by the applicant and by recipients of other Federal, 
        State or local housing and community development 
        assistance who will sponsor any part of the 
        construction, rehabilitation, operation and 
        maintenance, or other housing and community development 
        activities undertaken as part of the program, or by 
        other Federal, State or local activities and activities 
        conducted by Indian tribes, including, but not limited 
        to, vocational, adult and bilingual education programs, 
        and job training provided with funds available under 
        [the Job Training Partnership Act] the Employment, 
        Training, and Literacy Enhancement Act and the Family 
        Support Act of 1988; and
          * * * * * * *

SEC. 456. ADDITIONAL PROGRAM REQUIREMENTS.

  (a) * * *
          * * * * * * *
  (e) Wages, Labor Standards, and Nondiscrimination.--To the 
extent consistent with the provisions of this subtitle, 
sections 142, 143 and 167 of [the Job Training Partnership Act] 
the Employment, Training, and Literacy Enhancement Act, 
relating to wages and benefits, labor standards, and 
nondiscrimination, shall apply to the programs conducted under 
this subtitle as if such programs were conducted under [the Job 
Training Partnership Act] the Employment, Training, and 
Literacy Enhancement Act. This section may not be construed to 
prevent a recipient of a grant under this subtitle from using 
funds from non-Federal sources to increase wages and benefits 
under such programs, if appropriate.
          * * * * * * *
                              ----------                              


 SECTION 31113 OF THE VIOLENT CRIME CONTROL AND LAW ENFORCEMENT ACT OF 
                                  1994

SEC. 31113. APPROVAL OF APPLICATIONS.

  (a) In General.--In evaluating applications submitted under 
section 31112(b)(2)(B), the Secretary shall ensure that--
          (1) * * *
          * * * * * * *
          (4) the applicant community development corporation 
        will target job opportunities that arise from revolving 
        loan fund investments under this chapter so that 75 
        percent of the jobs retained or created under such 
        investments are provided to--
                  (A) * * *
          * * * * * * *
                  (C) individuals who are participating or have 
                participated in job training programs 
                authorized under the Job Training Partnership 
                Act (29 U.S.C. 1501 et seq.), title II, III, or 
                IV of the Employment, Training, and Literacy 
                Enhancement Act, or the Family Support Act of 
                1988 (Public Law 100-485);
          * * * * * * *
                              ----------                              


PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY RECONCILIATION ACT OF 1996

          * * * * * * *

      TITLE IV--RESTRICTING WELFARE AND PUBLIC BENEFITS FOR ALIENS

          * * * * * * *

              Subtitle A--Eligibility for Federal Benefits

          * * * * * * *

SEC. 403. FIVE-YEAR LIMITED ELIGIBILITY OF QUALIFIED ALIENS FOR FEDERAL 
                    MEANS-TESTED PUBLIC BENEFIT.

  (a) * * *
          * * * * * * *
  (c) Application of Term Federal Means-tested Public 
Benefit.--
          (1) * * *
          (2) Assistance and benefits under this paragraph are 
        as follows:
                  (A) * * *
          * * * * * * *
                  (K) Benefits under the [Job Training 
                Partnership Act] Employment, Training, and 
                Literacy Enhancement Act.
          * * * * * * *

      Subtitle C--Attribution of Income and Affidavits of Support

          * * * * * * *

SEC. 423. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.

  (a) * * *
          * * * * * * *
  (d) Benefits Not Subject to Reimbursement.--Requirements for 
reimbursement by a sponsor for benefits provided to a sponsored 
alien pursuant to an affidavit of support under section 213A of 
the Immigration and Nationality Act shall not apply with 
respect to the following:
          (1) * * *
          * * * * * * *
          (11) Benefits under the [Job Training Partnership 
        Act] Employment, Training, and Literacy Enhancement 
        Act.
          * * * * * * *
                              ----------                              


                    HELEN KELLER NATIONAL CENTER ACT

TITLE II--REAUTHORIZATION OF THE HELEN KELLER NATIONAL CENTER FOR DEAF-
                        BLIND YOUTHS AND ADULTS

                              short title

  Sec. 201. This title may be cited as the ``Helen Keller 
National Center Act''.
          * * * * * * *

                    authorization of appropriations

  Sec. 205. (a) There are authorized to be appropriated to 
carry out the provisions of this title such sums as may be 
necessary for each of the fiscal years [1993 through 1997] 
1998, 1999, and 2000. Such sums shall remain available until 
expended.
          * * * * * * *

SEC. 208. HELEN KELLER NATIONAL CENTER FEDERAL ENDOWMENT PROGRAM.

  (a) * * *
          * * * * * * *
  (h) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section, such sums as may be 
necessary for each of the fiscal years [1993 through 1997] 
1998, 1999, and 2000. Such sums shall remain available until 
expended.
ADDITIONAL VIEWS OF MAJOR R. OWENS, MATTHEW MARTINEZ, DONALD M. PAYNE, 
                          AND CAROLYN MCCARTHY

    There is a consensus about the need for reform of the 
nation's Federal adult and youth job training system. This 
year's development of a comprehensive job training bill 
represents a marked improvement over the 104th Congress' very 
problematic ``CAREERS Act'' (H.R. 1617). In the spirit of 
bipartisanship, H.R. 1385, as reported out of committee, is 
definitely a move in the right direction. However, there are 
several outstanding concerns that would inhibit the true intent 
of our Depression-era commitment to ensure that the most 
vulnerable and disadvantaged citizens receive adequate training 
and employment-related services. It is encouraging that Rep. 
McKeon, Rep. Goodling and Rep. Kildee were able to fashion 
legislation that is acceptable to Members on both sides of the 
aisle who represent a cross-section of the American populace. 
Accordingly, we are hopeful that several of the following 
constructive modifications will be included in the Manager's 
Amendment.

                    summer youth employment program

    In essence, there is no requirement under H.R. 1385 that 
the current Summer Youth Employment Program (SYEP) remain in 
existence. H.R. 1385 would consolidate SYEP into an overall 
block grant for Disadvantaged Youth Employment and Training; 
moreover, this bill would dramatically change the current 
method of allocating funds to local areas. According to current 
law, after States receive their SYEP funding, the State must 
allocate funding to local areas based on the following three-
part formula: percentage of unemployed in the local area, 
percentage of excess unemployed in the local area, and 
percentage of economically disadvantaged. H.R. 1385 would allow 
the Governor and the State legislature to exercise discretion 
in the allocation of funding to local areas. While the current 
categories would still be ``taken into account'' by the 
Governor, there would be no assurances that SYEP funds exist at 
all, and that any funds would be allocated to the areas with 
the greatest need. At the very least, a separate funding stream 
for the Summer Youth Employment Program must be created and 
need-based targeting must be a part of the intrastate formula 
as stipulated in current law. (H.R. 1385 would ensure the 
viability of the Dislocated Workers Program by creating a 
separate category that protects its funding. Similar provisions 
should be made for SYEP.)
    Of the four million income-eligible youth ages sixteen to 
twenty one, approximately 15% are able to participate in SYEP. 
Given this, it is reasonable to suggest that limited Federal 
resources should be directed to those areas which exhibit the 
greatest need. SYEP is a successful program that provides jobs 
for disadvantaged young people for several weeks during the 
summer months. Cities that are plagued by gross unemployment, 
abject poverty, and a pervasive feeling of hopelessness, 
welcome wholeheartedly the relief provided by SYEP. A summer 
job represents a glimmer of hope to the nearly 600,000 children 
who participate in the Program.
    Unequivocally, the Program must be a required activity and 
the Federally driven within-State formula is crucial. Complete 
discretion by the State would be a mistake. An amendment will 
be offered on the floor to maintain current law regarding the 
intrastate formula and a requirement that the Program be 
specifically authorized. The effect would be to preserve the 
Program and to target funds to those areas that most need it. 
While fiscal constraints preclude 100% participation in SYEP, 
at least we ought to ensure that children in those areas that 
exhibit the greatest need are protected.

            comprehensive system of professional development

    H.R. 1385 would jeopardize the vocational rehabilitation 
program by weakening the comprehensive system for the 
professional development section of the State plan's 
requirements. H.R. 1385 is intended to improve services to 
vocational rehabilitation clients. We are deeply concerned, 
however, that changes made to certain provisions of the 
Rehabilitation Act of 1973 would negate these improvements.
    Thoroughly trained vocational rehabilitation counselors are 
essential to the success of the vocational rehabilitation 
program. Current law requires that states document how they 
will coordinate efforts with institutions of higher education 
and professional associations to ensure an adequate supply of 
qualified vocational rehabilitation professionals, including 
personnel who are minorities and personnel who are individuals 
with disabilities. A 1993 Rehabilitation Services 
Administration report shows that this provision of the Act has 
been effective in ensuring that minorities and people with 
disabilities are represented in the vocational rehabilitation 
profession. Current estimates show the percentage of African 
American rehabilitation counselors is equal to African American 
representation in the general population. Twenty-three percent 
of current rehabilitation counselors are individuals with 
disabilities. This is nearly 10% above their representation in 
the general population. It is clear that this provision of 
current law is effective.
    H.R. 1385 would remove this important provision from 
current law. An amendment may be offered to reinstate this 
requirement. This amendment should be included in H.R. 1385 if 
we are truly serious about improving the vocational 
rehabilitation program.

                      closure of job corps centers

    Bill sponsors are to be further applauded by the decision 
to maintain the Federal Government's purview over the Job Corps 
Program which is run by only 111 centers nationwide. We are 
hopeful that Chairman Goodling, as well as the full House of 
Representatives, will adopt an amendment which would allow all 
Americans the opportunity to have their voices heard regarding 
the possible loss of any of these invaluable Job Corps Centers.
    The Job Corps Program, despite its successes, is grossly 
under funded. The 111 Job Corps centers currently serve a mere 
9% of the more than 1.1 million youth who are eligible 
participants. All of these centers are at 100% capacity. The 
latest available data depict a far more troubling situation for 
most States. In New York State only 3.9% of the 74,762 eligible 
youth participated; in California 2.8% of the 151,053 eligible 
youth participated; in New Jersey 2.9% of the 27,077 eligible 
youth participated; in Pennsylvania 7.4% of the 42,002 eligible 
youth participated; and in Tennessee 3.3% of the 28,280 
eligible youth participated.
    These statistics confirm that there are too few centers in 
operation today. Thus, it is very important that if one of 
these scarce centers is slated for closure, the final decision 
must be closely scrutinized. Under current law, the Secretary 
of Labor may close a Job Corps Center at his/her discretion in 
conjunction with the center operator. Out of courtesy, the 
Secretary usually notifies Members of Congress about the 
decision to close a site. However, certain steps should be 
taken to ensure that the public and the individuals they elect 
to represent them in Washington are notified prior to the 
development of a final decision.

                      provision of transportation

    Training in the use of public mass transportation systems 
should be part of the scope of services available to vocational 
rehabilitation clients. I welcome the support of my colleague 
from New York, Representative McCarthy, for an amendment to 
H.R. 1385 to include this cost-saving measure.
    People being served by vocational rehabilitation programs 
should have access to travel training services as part of their 
individual rehabilitation plans. Familiarizing clients with 
public transportation would help clients enter or reenter the 
job market and reduce the degree to which they will rely on 
more expensive paratransit systems. According to the Federal 
Transit Administration, nationwide the average fare for fixed 
route trips on public transportation is approximately $2.60, 
while the average for paratransit services is $15. Moreover, 
the typical government subsidy for public transportation covers 
$1.60 of that fare, while the typical government subsidy for 
paratransit services is $13. Including this simple provision in 
H.R. 1385 would save millions of Federal, State, and local 
dollars and significantly improve the lives of many vocational 
rehabilitation clients.

                making h.r. 1385 work for those in need

    The cyclical relationship between poverty and dependence on 
the Federal Government has been well documented. An under-
resourced public school system and insufficient employment 
opportunities make both adults and youth susceptible to an 
inability to become full and productive, tax-paying citizens.
    Congress cannot haphazardly relinquish Federal protections 
and leave children, women and men without the opportunities or 
the skills needed to attain a minimal standard of living. We 
must invest money, scrutiny, and compassion in programs that 
provide our nation's impoverished citizens with the tools 
necessary to end any unintended dependence on public 
assistance. With the above-referenced changes, we are confident 
that H.R. 1385 would represent a fair approach to address the 
needs of individuals with disabilities, low-income youth, and 
displaced and unemployed adults.

                                   Major R. Owens.
                                   Mathew G. Martinez.
                                   Donald M. Payne.
                                   Carolyn McCarthy.
                            ADDITIONAL VIEWS

    The Committee-reported bill reflects broad bipartisan 
agreement. The bill streamlines and integrates job training and 
employment programs; creates a single system for adults through 
full-service training and employment centers; provides for the 
maintenance of the federal investment in employment and 
training programs; and includes a separate funding stream for 
dislocated workers, not only protecting current resources, but 
maintaining the ability to request increased funding based the 
needs of this targeted population.
    It puts training resources into the hands of adults so they 
can choose the training that best meets their needs. Through 
the creation of a consumer report system which would include 
annual information from all education and training providers, 
it promotes informed choice. It organizes Federal training 
programs for disadvantaged youth within school-to-work 
concepts. It ensures strong accountability to taxpayers by 
establishing high standards and linking incentives and 
sanctions to State and local performance. It ensures a strong 
local role in the design and oversight of workforce development 
systems and makes the private sector a full partner.
    While we agree with these and other features of the 
Committee bill, we also have some concerns about specific 
provisions.
    Summer Youth Jobs.--We are concerned that the Committee 
bill does not ensure that the summer jobs program is continued 
at a comparable funding level to the President's FY 1998 budget 
request under a reformed system. We are pleased that the summer 
program would be connected to what a young person learns during 
the school year, but this will be of little value to hundreds 
of thousands of economically disadvantaged youth if we do not 
ensure that summer job opportunities are made available.
    The summer jobs program is particularly critical to 
minority youth. As estimated third of summer jobs held by 
African-American youth and a fourth of summer jobs held by 
Hispanic youth come from the summer jobs program.
    For many youth, the summer jobs program is their first 
opportunity to work and their first critical step in learning 
the work ethic. Studies by Westat, Inc., and the Department of 
Labor's Office of the Inspector General both reported very 
positive findings, concluding that work sites are well-
supervised and disciplined, that jobs are real, not make-work, 
that the education component teaches students new skills they 
can apply in school, and that students learn the value of work. 
We believe that the summer youth employment program meets 
performance expectations. This legislation needs to ensure that 
each local area has a summer jobs program for at-risk youth.
    Disadvantaged Out-of-School Youth.--As reported by the 
Committee, the bill establishes an employment and training 
opportunities grant to help at-risk youth--both out-of-school 
and students on the verge of dropping out--acquire the skills 
and knowledge to begin productive careers, further their 
training, and become responsible citizens. It is critical to 
ensure that the youth program effectively target services to 
out-of-school youth. JTPA has been one of the few programs that 
serve this population. Many inner-city neighborhoods have rates 
of employment that are less than 50 percent, and school dropout 
rates in these areas can exceed 60 percent. We were pleased 
that the Committee accepted Mr. Payne's amendment that results 
in targeting 10 percent of the total funds allocated to a State 
under the disadvantaged youth grant to programs that serve out-
of-school youth. This amendment will provide a strong incentive 
for states to serve this population. This is one of the only 
pieces of legislation that serves out-of-school youth and it is 
critical that we provide these young people with a chance for a 
successful future. By a conservative estimate, the average high 
school dropout costs taxpayers almost $70,000 in lost taxes and 
costs each school dropout about $230,000 in forgone income. We 
do not believe that the disadvantaged youth employment and 
training opportunities grant goes far enough in ensuring 
services for out-of-school youth.
    We also appreciate the Committee's agreement to authorize 
under title IV the use of resources to target services to out-
of-school youth living in empowerment zones and enterprise 
communities. The Administration's out-of-school youth 
opportunities areas proposal is intended to boost the 
employment rate of out-of-school youth in these areas to levels 
commensurate with that in non-poor communities. We are 
concerned that the lack of a specific resource commitment in 
this legislation weakens the potential for this program.
    Local Board Composition.--We agree with the committee that 
local workforce development boards must have a strong role in 
planning and overseeing the performance of the full-service 
training and employment system. However, we are concerned that 
organized labor representation would no longer be assured on 
the boards that make decisions affecting the local and regional 
workforce.
    Welfare-to-Work.--We believe that the Committee bill begins 
to address the need to ensure the successful implementation of 
the welfare reform legislation. Job training and employment 
programs must continue to play a vital role in this effort. It 
is important to keep in mind that emerging full-service 
training and employment systems need to integrate welfare 
recipients into the mainstream labor market--rather than 
segregating them and stigmatizing them and pitting them against 
others for resources. The bill would provide a priority for 
welfare recipients in adult training and inten- 
sive services. The strong connections in this new workforce 
development system between local boards with business 
majorities, local chief elected officials, Governors, and State 
legislatures should enhance the employment and training 
opportunities for welfare recipients. As Members of the 
Committee on Education and the Workforce, we intend to stress 
linkages with the local full-service training and employment 
delivery system in the coming months as welfare-to-work 
legislation is developed, with the objective of helping welfare 
recipients obtain and keep jobs.

                                   William L. Clay.
                                   Dale E. Kildee.
                                   Carolyn McCarthy.
                                   George Miller.
                                   Matthew G. Martinez.
                                   Donald M. Payne.
                                   Carlos Romero-Barcelo.
                                   John F. Tierney.
                                   Loretta Sanchez.


                            DISSENTING VIEW

                            i. introduction

    Congress is once again attempting to repair the broken 
system of federal job training. The major federal role in job 
training dates back to 1962, with President Kennedy's Manpower 
Development and Training Act (MDA) and continuing though the 
Economic Opportunity Act of 1964, passed as part of President 
Johnson's Great Society. Consistent with the Great Society 
philosophy that the federal government had the solution to all 
problems, these bills centralized job training authority in 
Washington.
    Soon, however, concerns arose that federal job training 
programs were rife with waste and abuse. Congress, therefore, 
began trying to repair some of the inefficiencies in the job-
training program. First, in 1973, Congress, with the support of 
the Nixon Administration, passed the Comprehensive Employment 
and Training Act (CETA). CETA was designed to decentralize 
federal job training programs. Congress next addressed job 
training in 1982, with the passage of the Job Training and 
Partnership Act (JTPA), which promised to turn federal job-
training into a public-private ``partnership'' that would 
operate more ``efficiently'' than the three major job-training 
bills that had previously passed the Congress and failed to 
accomplish their stated goals.
    After thirty years of federal involvement and two major 
legislative overhauls, there are now over 160 federal programs 
dedicated to job training. The federal government spent 
approximately $4.5 billion on just JTPA in 1997. However, the 
US Congress cannot measure whether or not they are getting a 
good return on their investment though most federal agencies do 
not even know if their programs are helping people find jobs.
    Therefore, Congress is once again attempting to repair the 
federal job training systems. However, despite the abundant 
evidence of the failure of the centralized welfare state model 
of job-training programs, this Congress is planning to continue 
dictating to all 50 states the composition, content, function 
and even the goals and benchmarks of job training programs. The 
Employment Training and Literacy Act of 1997 (H.R. 1385), 
tampers with the constitutional principle of federalism and 
devolving power to the states. However, HR 1385 redefines the 
very notion of federalism to mean that states, localities, and 
individual citizens are given limited flexibility and control 
over how they fulfill the federal government's mandates.

ii. h.r. 1385 interferes with state's autonomy and forces taxpayers to 
subsidize benefits for select businesses and employees in violation of 
                          the us constitution

    Unlike the ``mandate federalism'' embodied in H.R. 1385, 
the federalism embodied in the United States Constitution 
allows for no federal role in job training, or education 
generally. In fact, the tenth amendment, which reserves the 
authority for carrying out functions not explicitly granted to 
the federal government, to the states and the people, forbids 
federal education programs. Yet, as demonstrated below, H.R. 
1385 continues the unconstitutional centralization of education 
program for the benefit of certain members of society at the 
expense of the mass of American taxpayers.
    Under H.R. 1385 states must provide a three-year plan for 
Adult Job Training and Literacy programs in order to receive 
federal job-training funds. These plans must satisfy federally-
specified content and must be approved by the Secretaries of 
both the Department of Education and the Department of Labor.
    Additionally, states are required to establish ``local 
workforce development boards'' whose functions and composition 
are dictated by the federal law. Furthermore, the boards must 
meet benchmarks identified by the governor's in ``negotiation'' 
with the schools, the local boards do not even have the 
authority to determine how their performance should be 
measured. Rather progress under this bill measure by 
predetermined federal ``core indicators.''
    Under H.R. 1385, the ``local workforce development boards'' 
would be dominated by representatives of the business 
community. Certainly the input of the business community is 
important for job training. However, a federal mandate that 
representatives of business dominate the job-training boards 
may provide a means for business to socialize or externalize 
their training costs. Those businesses which will achieve a 
direct benefit from a more highly-skilled workforce should be 
the ones to finance such programs. Individuals who will benefit 
from improving their skills could also choose to ultimately pay 
at least some of the cost of their training. In no instance 
should the individual taxpayers be forced to subsidize the job 
training of another person.
    Not satisfied with wealth transfers to prepare those 
without employment for business, this bill provides training 
for ``skills upgrading'' for ``incumbent workers'' (those 
already employed). Despite a budget billions of dollars out of 
balance, this bill creates a new entitlement for already-
employed workers and their employers to receive more training 
courtesy of the American taxpayer.
    Businesses are not the only institutions showered with 
largess in this bill. Under the provisions of this bill, the 
Secretary of Labor is empowered to provide taxpayers dollars to 
labor unions to carry out ``research and demonstration 
projects'' as well as grants to ``public interest groups.'' 
Credible accusations have been made that these groups have 
often used federal funds to advance their political agenda. At 
the very least, Congress should conduct a thorough 
investigation and take steps to prevent federal funds from 
being used to pay for political activity before handing out 
more grant monies.

       iii. h.r. 1385 infringes on family and individual autonomy

    In addition to continuing the practice of giving more 
federal monies to Washington, DC, this bill expands the state's 
reach into America's families by authorizing federal funding 
for ``family literacy services.'' These ``services'' are to 
include training for parents on how to teach their children and 
interactive literacy activities between parents and their 
children.
    The history of federal involvement in family literacy 
raises questions regarding the effectiveness of government 
programs to teach anything regarding child raising. From 1963 
to 1993, federal spending on education increased from 
approximately $900,000 to over 10 billion dollars, while scores 
on the Scholastic Aptitude Test (SATs) dropped by an average of 
almost 60 points! Given the poor track record, it is doubtful 
whether increasing federal involvement in family literacy is 
likely to do anything but ensure lower rates of family 
literacy.
    Furthermore, federal involvement in child rearing violates 
the very principles upon which this country was founded. In a 
free society, such as that bequeathed to America by the 
drafters of the constitution, the family, not the government, 
is responsible for the raising of children. State control of 
child raising is, in fact, one of the hallmarks of 
totalitarianism. Those of us concerned with expanding and 
preserving freedom must oppose all measures, including the 
legislation currently under consideration, which erode the 
autonomy of the family under the theory that government social 
workers are better able to address the needs of children than 
parents.
    Along similar lines, the language for disadvantaged youth 
programs mandates the integration of ``academic, occupation, 
and work-based learning opportunities.'' This is also quite 
objectionable. This language seems to suggest those youth 
diagnosed as ``disadvantaged'' by the social workers and 
psychologists will be denied a traditional education; instead 
``disadvantaged'' youth will be herded into a state-run job 
training programs. Such a federally-mandated plan is in no way 
consistent with the core American value of individualism.

 iv. h.r. 1385 establishes a system incapable of achieving its stated 
                                purpose

    This bill reaches the height of hubris in its mandate that 
training services be linked to ``. . . occupations for which 
there is a demand in the local workforce development area.'' 
This provision is objectionable for two reasons.
    First, because business-dominated workforce development 
boards will determine which occupations are in demand, it is 
very likely that the businesses represented on the board will 
be the ones determined to be those `` * * * for which there is 
a demand in the local workforce.''
    Second, and more importantly, the very idea that a 
government board can somehow determine what occupations will be 
in demand at any point in the future is an example of what 
Nobel Laureate F.A. Hayek called ``The Fatal Conceit.'' No 
central board, even one dominated by local officials and 
businessmen, can predict which jobs will be in demand in five, 
ten, or even two years. It is doubtful that a ``local workforce 
board'' in Silicon Valley in 1978 would have tried to link job 
training services to the personal computer market. In fact, 
it's highly unlikely that Steve Jobs (founder of Apple 
computers), would be appointed to the workforce development 
board in Silicon Valley. The very fact that the boards are 
comprised of already established leaders for business 
practically assures that the entrepreneurs creating the jobs of 
the future will not be represented on this board. In this high-
tech information age, where financial and, more importantly, 
intellectual capital, can travel around the world in a matter 
of seconds, the jobs in demand in any area can change faster 
than any geographical local workforce board could conceivably 
update the skills with which to link job-training.

                             v. conclusion

    The argument is often made that state-financed job training 
is necessitated by the failure of the educational system to 
properly prepare students for the job market. Each of us can 
understand the frustration of employers unable to find 
employees capable of adapting to new technologies.
    As a physician, I have employed many people in critical 
positions. I certainly understand the importance of having a 
readily available pool of skilled labor. I would question, 
however, whether the pool was better prior to the federal 
government's intrusion into education.
    The private actions of individual citizens, working 
together in a free-market, can best build a job-training system 
that meets the needs of its citizens. Private individuals, 
local communities, and state governments are also more capable 
than the federal government of providing adequate help to those 
unable to provide for training out of their own resources, if 
the federal government returns to constitutional size and 
reduces the tax burden on American citizens.
    Federal job training programs, of any sort, further the 
destructive idea that the proper role of the federal government 
is to provide for all the needs of its citizens. The belief 
that Congress has a moral duty to minister to the health and 
welfare of the populace, both of America and the world, is 
directly responsible for the growth of the welfare-warfare 
state which threatens to destroy America's economic prosperity 
and, as important, liberty, wholesale. Job training should be 
provided, like all other goods and services, by the free-
market.
    Congress stops the artificial debate over whether to 
completely centralize control over programs such as job-
training, or whether to give states, communities, businesses, 
and individuals a limited degree of autonomy as long as they 
follow federal mandates. Rather, Congress must begin 
considering whether the Constitution provides any authorization 
for the federal government to have any role in programs such as 
job training. America's experiment with the provider state has 
failed. This Congress must stop draining resources from the 
private job-training initiatives and disrupting the operations 
of the greatest job-creation process known to humankind: the 
free market. It is time to return to the federal job-training 
and creating program created by the drafters of the 
constitution: low taxes, sound money, and a limited, 
constitutional government.

                                                          Ron Paul.

                                
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