[House Report 108-82]
[From the U.S. Government Publishing Office]
108th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 108-82
======================================================================
WORKFORCE REINVESTMENT AND ADULT EDUCATION ACT OF 2
_______
May 1, 2003.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Boehner, from the Committee on Education and the Workforce,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 1261]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and the Workforce, to whom was
referred the bill (H.R. 1261) to enhance the workforce
investment system of the Nation by strengthening one-stop
career centers, providing for more effective governance
arrangements, promoting access to a more comprehensive array of
employment, training, and related services, establishing a
targeted approach to serving youth, and improving performance
accountability, and for other purposes, 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 all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Workforce Reinvestment and Adult
Education Act of 2003''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT OF 1998
Sec. 101. Definitions.
Sec. 102. Purpose.
Sec. 103. State workforce investment boards.
Sec. 104. State plan.
Sec. 105. Local workforce investment areas.
Sec. 106. Local workforce investment boards.
Sec. 107. Local plan.
Sec. 108. Establishment of one-stop delivery systems.
Sec. 109. Eligible providers of training services.
Sec. 110. Eligible providers of youth activities.
Sec. 111. Youth activities.
Sec. 112. Comprehensive program for adults.
Sec. 113. Performance accountability system.
Sec. 114. Authorization of appropriations.
Sec. 115. Job Corps.
Sec. 116. Native American programs.
Sec. 117. Youth challenge grants.
Sec. 118. Technical assistance.
Sec. 119. Demonstration, pilot, multiservice, research and multistate
projects.
Sec. 120. Evaluations.
Sec. 121. Authorization of appropriations for national activities.
Sec. 122. Requirements and restrictions.
Sec. 123. Nondiscrimination.
Sec. 124. Administrative provisions.
Sec. 125. General program requirements.
Title II--ADULT EDUCATION
Part A--Adult Basic Skills and Family Literacy Education
Sec. 201. Table of contents.
Sec. 202. Amendment.
Part B--National Institute for Literacy
Sec. 211. Short title; purpose.
Sec. 212. Establishment.
Sec. 213. Administration.
Sec. 214. Duties.
Sec. 215. Leadership in scientifically based reading instruction.
Sec. 216. National Institute for Literacy Advisory Board.
Sec. 217. Gifts, bequests, and devises.
Sec. 218. Mails.
Sec. 219. Applicability of certain civil service laws.
Sec. 220. Experts and consultants.
Sec. 221. Report.
Sec. 222. Definitions.
Sec. 223. Authorization of appropriations.
Sec. 224. Reservation.
Sec. 225. Authority to publish.
Title III--AMENDMENTS TO THE WAGNER-PEYSER ACT
Sec. 301. Amendments to the Wagner-Peyser Act.
Title IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973
Sec. 401. Chairperson.
Sec. 402. Rehabilitation Services Administration.
Sec. 403. Director.
Sec. 404. State goals.
Sec. 405. Authorizations of appropriations.
Sec. 406. Helen Keller National Center Act.
Title V--TRANSITION AND EFFECTIVE DATE
Sec. 501. Transition provisions.
Sec. 502. Effective date.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, wherever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the amendment or repeal shall be
considered to be made to a section or other provision of the Workforce
Investment Act of 1998 (20 U.S.C. 9201 et seq.).
TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT OF 1998
SEC. 101. DEFINITIONS.
Section 101 (29 U.S.C. 2801) is amended--
(1) in paragraph (8)(C), by striking ``not less than 50
percent of the cost of the training'' and inserting ``a
significant portion of the cost of training, as determined by
the local board'';
(2) by striking paragraph (13) and redesignating paragraphs
(1) through (12) as paragraphs (2) through (13) respectively;
(3) by inserting the following new paragraph after ``In this
title:'':
``(1) Accrued expenditures.--The term `accrued expenditures'
includes the sum of actual cash disbursements for direct
charges for goods and services, the net increase or decrease in
the amounts owed by recipients, goods and other property
received for services performed by employees, contractors,
subgrantees, or other payees, and other amounts becoming owned
for which no current service or performance is required.'';
(4) by striking paragraph (24) and redesignating paragraphs
(25) through (32) as paragraphs (24) through (31),
respectively;
(5) in paragraph (24) (as so redesignated)--
(A) in subparagraph (B), by striking ``higher of--''
and all that follows through such subparagraph and
inserting ``poverty line for an equivalent period;'';
and
(B) by redesignating subparagraphs (D) through (F) as
subparagraph (E) through (G), respectively, and
inserting after subparagraph (C) the following:
``(D) receives or is eligible to receive free or
reduced price lunch;''; and
(6) by striking paragraph (33) and redesignating paragraphs
(34) through (53) as paragraphs (32) through (51),
respectively.
SEC. 102. PURPOSE.
Section 106 (29 U.S.C. 2811) is amended by inserting at the end the
following: ``It is also the purpose of this subtitle to provide
workforce investment activities in a manner that promotes the informed
choice of participants and actively involves participants in decisions
affecting their participation in such activities.''.
SEC. 103. STATE WORKFORCE INVESTMENT BOARDS.
(a) Membership.--
(1) In general.--Section 111(b) (29 U.S.C. 2821(b)) is
amended--
(A) by amending paragraph (1)(C) to read as follows:
``(C) representatives appointed by the Governor, who
are--
``(i)(I) the lead State agency officials with
responsibility for the programs and activities
that are described in section 121(b) and
carried out by one-stop partners;
``(II) in any case in which no lead State
agency official has responsibility for such a
program or activity, a representative in the
State with expertise relating to such program
or activity; and
``(III) if not included under subclause (I),
the director of the designated State entity
responsible for carrying out title I of the
Rehabilitation Act (29 U.S.C. 701 et seq.);
``(ii) the State agency officials responsible
for economic development;
``(iii) representatives of business in the
State who--
``(I) are owners of businesses, chief
executive or operating officers of
businesses, and other business
executives or employers with optimum
policy making or hiring authority,
including members of local boards
described in section 117(b)(2)(A)(i);
``(II) represent businesses with
employment opportunities that reflect
employment opportunities in the State;
and
``(III) are appointed from among
individuals nominated by State business
organizations and business trade
associations;
``(iv) chief elected officials (representing
both cities and counties, where appropriate);
``(v) representatives of labor organizations,
who have been nominated by State labor
federations; and
``(vi) such other representatives and State
agency officials as the Governor may
designate.''; and
(B) in paragraph (3), by striking ``paragraph
(1)(C)(i)'' and inserting ``paragraph (1)(C)(iii)''.
(2) Conforming amendment.--Section 111(c) (29 U.S.C 2811(c))
is amended by striking ``subsection (b)(1)(C)(i)'' and
inserting ``subsection (b)(1)(C)(iii)''.
(b) Functions.--Section 111(d) (29 U.S.C. 2811(d)) is amended--
(1) by amending paragraph (3) to read as follows:
``(3) development and review of statewide policies affecting
the integrated provision of services through the one-stop
delivery system described in section 121, including--
``(A) the development of criteria for, and the
issuance of, certifications of one-stop centers;
``(B) the criteria for the allocation of one-stop
center infrastructure funding under section 121(h), and
oversight of the use of such funds;
``(C) approaches to facilitating equitable and
efficient cost allocation in one-stop delivery systems;
and
``(D) such other matters that may promote statewide
objectives for, and enhance the performance of, one-
stop delivery systems within the State;'';
(2) in paragraph (4), by inserting ``and the development of
State criteria relating to the appointment and certification of
local boards under section 117'' after ``section 116'';
(3) in paragraph (5), by striking ``sections 128(b)(3)(B) and
133(b)(3)(B)'' and inserting ``sections 128(b)(3) and
133(b)(3)''; and
(4) in paragraph (9), by striking ``section 503'' and
inserting ``section 136(i)''.
(c) Elimination of Alternative Entity and Provision of Authority to
Hire Staff.--Section 111(e) (29 U.S.C. 2821(e)) is amended to read as
follows:
``(e) Authority to Hire Staff.--The State board may hire staff to
assist in carrying out the functions described in subsection (d).''.
SEC. 104. STATE PLAN.
(a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is amended by
striking ``5-year strategy'' and inserting ``2-year strategy''.
(b) Contents.--Section 112(b)(17)(A) (29 U.S.C. 2822(b)(17)(A)) is
amended--
(1) in clause (iii) by striking ``and'';
(2) by amending clause (iv) to read as follows:
``(iv) how the State will serve the
employment and training needs of dislocated
workers (including displaced homemakers and
formerly self-employed and transitioning
farmers, ranchers, and fisherman) low income
individuals (including recipients of public
assistance), homeless individuals, ex-
offenders, individuals training for
nontraditional employment, and other
individuals with multiple barriers to
employment (including older individuals);'';
and
(3) by adding the following new clause after clause (iv):
``(v) how the State will serve the employment
and training needs of individuals with
disabilities, consistent with section 188 and
Executive Order 13217 (relating to community-
based alternatives for individuals with
disabilities) including the provision of
outreach, intake, assessments, and service
delivery, the development of performance
measures, and the training of staff; and''.
(c) Modification to Plan.--Section 112(d) (29 U.S.C. 2822(d)) is
amended by striking ``5-year period'' and inserting ``2-year period''.
SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS.
(a) Designation of Areas.--
(1) Considerations.--Section 116(a)(1)(B) (29 U.S.C.
2831(a)(1)(B)) is amended by adding at the end the following
clause:
``(vi) The extent to which such local areas
will promote efficiency in the administration
and provision of services.''.
(2) Automatic designation.--Section 116(a)(2) (29 U.S.C.
2831(a)(2)) is amended to read as follows:
``(2) Automatic designation.--
``(A) In general.--Except as provided in subparagraph
(B) of this paragraph and subsection (b), the Governor
shall approve a request for designation as a local area
from--
``(i) any unit of general local government
with a population of 500,000 or more; and
``(ii) an area served by a rural concentrated
employment program grant recipient that served
as a service delivery area or substate area
under the Job training Partnership Act (29
U.S.C. 1501 et seq.),
for the 2-year period covered by a State plan under
section 112 if such request is made not later than the
date of the submission of the State plan.
``(B) Continued designation based on performance.--
The Governor may deny a request for designation
submitted pursuant to subparagraph (A) if such unit of
government was designated as a local area for the
preceding 2-year period covered by a State plan and the
Governor determines that such local area did not
perform successfully during such period.''.
(b) Regional Planning.--Section 116(c)(1) (29 U.S.C. 2831(c)(1)) is
amended by adding at the end the following: ``The State may require the
local boards for the designated region to prepare a single regional
plan that incorporates the elements of the local plan under section 118
and that is submitted and approved in lieu of separate local plans
under such section.''.
SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) Composition.--Section 117(b)(2)(A) (29 U.S.C. 2832(b)(2)(A)) is
amended--
(1) in clause (i)(II), by inserting ``, businesses that are
in the leading industries in the local area, and large and
small businesses in the local area'' after ``local area'';
(2) by amending clause (ii) to read as follows:
``(ii) superintendents of the local secondary
school systems and the presidents or chief
executive officers of postsecondary educational
institutions (including community colleges,
where such entities exist);'';
(3) in clause (iv), by striking the semicolon and inserting
``and faith-based organizations; and''; and
(4) by striking clause (vi).
(b) Authority of Board Members.--Section 117(b)(3) (29 U.S.C. 2832(b)
is amended--
(1) in the heading, by inserting ``and representation'' after
``members''; and
(2) by adding at the end the following: ``The members of the
board shall represent diverse geographic sections within the
local area.''.
(c) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is amended--
(1) in paragraph (2)(B), by striking ``local area'' and all
that follows and inserting ``local area.''; and
(2) in paragraph (4) by inserting ``and ensure the
appropriate use and management of the funds provided under this
title for such programs, activities, and system'' after
``area''.
(d) Authority to Establish Councils and Elimination of Requirement
for Youth Councils.--Section 117(h) (29 U.S.C. 2832(h)) is amended to
read as follows:
``(h) Establishment of Councils.--The local board may establish
councils to provide information and advice to assist the local board in
carrying out activities under this title. Such councils may include a
council composed of one-stop partners to advise the local board on the
operation of the one-stop delivery system, a youth council composed of
experts and stakeholders in youth programs to advise the local board on
activities for youth, and such other councils as the local board
determines are appropriate.''.
(e) Repeal of Alternative Entity Provision.--Section 117 (29 U.S.C.
2832) is further amended by striking subsection (i).
SEC. 107. LOCAL PLAN.
(a) Planning Cycle.--Section 118(a) (29 U.S.C. 2833(a)) is amended by
striking ``5-year'' and inserting ``2-year''.
(b) Contents.--Section 118(b) (29 U.S.C. 2833(b)) is amended--
(1) by amending paragraph (2) to read as follows:
``(2) a description of the one-stop delivery system to be
established or designated in the local area, including a
description of how the local board will ensure the continuous
improvement of eligible providers of services through the
system and ensure that such providers meets the employment
needs of local employers and participants.''; and
(2) in paragraph (4), by striking ``and dislocated worker''.
SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.
(a) One-Stop Partners.--Section 121(b)(2)(B) (29 U.S.C.
2841(b)(2)(B)) is amended--
(1) in clause (iv) by striking ``and'' at the end;
(2) in clause (v) by striking the period and inserting a
semicolon; and
(3) by adding at the end the following new clauses:
``(vi) employment and training programs
administered by the Social Security
Administration, including the Ticket to Work
program (established by Public Law 106-170);
``(vii) programs under part D of title IV of
the Social Security Act (42 U.S.C. 451 et seq.)
(relating to child support enforcement); and
``(viii) programs carried out in the local
area for individuals with disabilities,
including programs carried out by State
agencies relating to mental health, mental
retardation, and developmental disabilities,
State Medicaid agencies, State Independent
Living Councils, and Independent Living
Centers.''.
(b) Provision of Services.--Subtitle B of title I is amended--
(1) by striking subsection (e) of section 121;
(2) by moving subsection (c) of section 134 from section 134,
redesignating such subsection as subsection (e), and inserting
such subsection (as so redesignated) after subsection (d) of
section 121; and
(3) by amending subsection (e) (as moved and redesignated by
paragraph (2))--
(A) in paragraph (1)(A), by striking ``subsection
(d)(2)'' and inserting ``section 134(c)(2)'';
(B) in paragraph (1)(B)--
(i) by striking ``subsection (d)'' and
inserting ``section 134(c)''; and
(ii) by striking ``subsection (d)(4)(G)'' and
inserting ``section 134(c)(4)(G)'';
(C) in paragraph (1)(C), by striking ``subsection
(e)'' and inserting ``section 134(d)'';
(D) in paragraph (1)(D)--
(i) by striking ``section 121(b)'' and
inserting ``subsection (b)''; and
(ii) by striking ``and'' at the end; and
(E) by amending paragraph (1)(E) to read as follows:
``(E) shall provide access to the information
described in section 15(e) of the Wagner-Peyser Act (29
U.S.C. 49l-2(e)).''.
(c) Certification and Funding of One-Stop Centers.--Section 121 (as
amended by subsection (b)) is further amended by adding at the end the
following new subsections:
``(g) Certification of One-Stop Centers.--
``(1) In general.--The State board shall establish procedures
and criteria for periodically certifying one-stop center for
the purpose of awarding the one-stop infrastructure funding
described in subsection (h).
``(2) Criteria.--The criteria for certification under this
subsection shall include minimum standards relating to the
scope and degree of service integration achieved by the centers
involving the programs provided by the one-stop partners.
``(3) Effect of certification.--One-stop centers certified
under this subsection shall be eligible to receive the
infrastructure grants authorized under subsection (h).
``(h) One-Stop Infrastructure Funding.--
``(1) Partner contributions.--
``(A) Provision of funds.--Notwithstanding any other
provision of law, as determined under subparagraph (B),
a portion of the Federal funds provided to the State
and areas within the State under the Federal laws
authorizing the one-stop partner programs described in
subsection (b) for a fiscal year shall be provided to
the Governor by such programs to carry out this
subsection.
``(B) Determination.--The portion of funds to be
provided under subparagraph (A) by each one-stop
partner shall be determined by the Governor, after
consultation with the State board.
``(2) Allocation by governor.--From the funds provided under
paragraph (1), the Governor shall allocate funds to local areas
for the purposes of assisting in paying the costs of the
infrastructure of One-Stop centers certified under subsection
(g).
``(3) Allocation formula.--The State board shall develop a
formula to be used by the Governor to allocate the funds
described in paragraph (1). The formula shall include such
factors as the State board determines are appropriate, which
may include factors such as the number of centers in the local
area that have been certified, the population served by such
centers, and the performance of such centers.
``(4) Costs of infrastructure.--For purposes of this
subsection, the term `costs of infrastructure' means the
nonpersonnel costs that are necessary for the general operation
of a one-stop center, including the rental costs of the
facilities, the costs of utilities and maintenance, equipment
(including adaptive technology for individuals with
disabilities), strategic planning activities for the center,
and common outreach activities.
``(i) Other Funds.--
``(1) In general.--In addition to the funds provided to carry
out subsection (h), a portion of funds made available under
Federal law authorizing the one-stop partner programs described
in subsection (b) shall be used to pay the costs relating to
the operation of the one-stop delivery system that are not paid
for from the funds provided under subsection (h), to the extent
not inconsistent with the Federal law involved including--
``(A) infrastructure costs that are in excess of the
funds provided under subsection (h);
``(B) common costs that are in addition to the costs
of infrastructure; and
``(C) the costs of the provision of core services
applicable to each program.
``(2) Determination and guidance.--The method for determining
the appropriate portion of funds to be provided by each program
under paragraph (1) shall be determined as part of the
memorandum of understanding under subsection (c). The State
board shall provide guidance to facilitate the determination of
appropriate funding allocation in local areas.''.
SEC. 109. ELIGIBLE PROVIDERS OF TRAINING SERVICES.
Section 122 (29 U.S.C. 2842) is amended to read as follows:
``SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
``(a) In General.--The Governor shall establish criteria and
procedures regarding the eligibility of providers of training services
described in section 134(c)(4) to receive funds provided under section
133(b) for the provision of such training services.
``(b) Criteria.--
``(1) In general.--The criteria established pursuant to
subsection (a) shall take into account the performance of
providers of training services with respect to the indicators
described in section 136 or other appropriate indicators
(taking into consideration the characteristics of the
population served and relevant economic conditions), and such
other factors as the Governor determines are appropriate to
ensure the quality of services, the accountability of
providers, and the informed choice of participants under
chapter 5. Such criteria shall require that the provider submit
appropriate, accurate and timely information to the State for
purposes of carrying out subsection (d). The criteria shall
also provide for periodic review and renewal of eligibility
under this section for providers of training services. The
Governor may authorize local areas in the State to establish
additional criteria or to modify the criteria established by
the Governor under this section for purposes of determining the
eligibility of providers of training services to provide such
services in the local area.
``(2) Limitation.--In carrying out the requirements of this
subsection, no personally identifiable information regarding a
student, including Social Security number, student
identification number, or other identifier, may be disclosed
without the prior written consent of the parent or eligible
student in compliance with section 444 of the General Education
Provisions Act (20 U.S.C. 1232g).
``(c) Procedures.--The procedures established under subsection (a)
shall identify the application process for a provider of training
services to become eligible to receive funds under section 133(b), and
identify the respective roles of the State and local areas in receiving
and reviewing applications and in making determinations of eligibility
based on the criteria established under this section. The procedures
shall also establish a process for a provider of training services to
appeal a denial or termination of eligibility under this section that
includes an opportunity for a hearing and prescribes appropriate time
limits to ensure prompt resolution of the appeal.
``(d) Information to Assist Participants in Choosing Providers.--In
order to facilitate and assist participants under chapter 5 in choosing
providers of training services, the Governor shall ensure that an
appropriate list or lists of providers determined eligible under this
section in the State, accompanied by such information as the Governor
determines is appropriate, is provided to the local boards in the State
to be made available to such participants and to members of the public
through the one-stop delivery system in the State.
``(e) Agreements With Other States.--States may enter into
agreements, on a reciprocal basis, to permit eligible providers of
training services to accept individual training accounts provided in
another State.
``(f) Recommendations.--In developing the criteria, procedures, and
information required under this section, the Governor shall solicit and
take into consideration the recommendations of local boards and
providers of training services within the State.
``(g) Opportunity to Submit Comments.--During the development of the
criteria, procedures, and information required under this section, the
Governor shall provide an opportunity for interested members of the
public, including representatives of business and labor organizations,
to submit comments regarding such criteria, procedures, and
information.''.
SEC. 110. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
Section 123 (29 U.S.C. 2843) and the item relating to such section in
the table of contents are repealed.
SEC. 111. YOUTH ACTIVITIES.
(a) State Allotments.--
(1) In general.--Section 127(a) (29 U.S.C. 2852(a)) is
amended to read as follows:
``(a) Allotment Among States.--
``(1) Youth activities.--
``(A) Youth challenge grants.--
``(i) Reservation of funds.--Of the amount
appropriated under section 137(a) for each
fiscal year, the Secretary shall reserve 25
percent to provide youth challenge grants under
section 169.
``(ii) Limitation.--Notwithstanding clause
(i), if the amount appropriated under section
137(a) for a fiscal year exceeds
$1,000,000,000, the Secretary shall reserve
$250,000,000 to provide youth challenge grants
under section 169.
``(B) Outlying areas and native americans.--After
determining the amount to be reserved under
subparagraph (A), of the remainder of the amount
appropriated under section 137(a) for each fiscal year
the Secretary shall--
``(i) reserve not more than \1/4\ of one
percent of such amount to provide assistance to
the outlying areas to carry out youth
activities and statewide workforce investment
activities; and
``(ii) reserve not more than 1 and \1/2\
percent of such amount to provide youth
activities under section 166 (relating to
Native Americans).
``(C) States.--
``(i) In general.--After determining the
amounts to be reserved under subparagraphs (A)
and (B), the Secretary shall allot the
remainder of the amount appropriated under
section 137(a) for each fiscal year to the
States pursuant to clause (ii) for youth
activities and statewide workforce investment
activities.
``(ii) Formula.--Subject to clauses (iii) and
(iv), of the remainder--
``(I) 33 and \1/3\ percent shall be
allotted on the basis of the relative
number of high school dropouts who are
ages 16 through 21 in the State,
compared to the total number of high
school dropouts who are ages 16 through
21 in all States;
``(II) 33 and \1/3\ percent shall be
allotted on the basis of the relative
number of jobless out-of-school youth
who are ages 16 through 21 in the
State, compared to the total number of
jobless out-of-school youth who are
ages 16 through 21 in all States; and
``(III) 33 and \1/3\ percent shall be
allotted on the basis of the relative
number of disadvantaged youth who are
ages 16 through 21 in the State,
compared to the total number of
disadvantaged youth who are ages 16
through 21 in all States.
``(iii) Minimum and maximum percentages.--The
Secretary shall ensure that no State shall
receive an allotment for a fiscal year that is
less than 90 percent or greater than 130
percent of the allotment percentage of that
State for the preceding fiscal year.
``(iv) Small state minimum allotment.--
Subject to clause (iii), the Secretary shall
ensure that no State shall receive an allotment
under this paragraph that is less than \3/10\
of 1 percent of the amount available under
subparagraph (A).
``(2) Definitions.--For the purposes of paragraph (1), the
following definitions apply:
``(A) Allotment percentage.--The term `allotment
percentage', used with respect to fiscal year 2004 or a
subsequent fiscal year, means a percentage of the
remainder described in paragraph (1)(C)(i) that is
received through an allotment made under this
subsection for the fiscal year. The term, with respect
to fiscal year 2003, means the percentage of the
amounts allotted to States under this chapter (as in
effect on the day before the date of enactment of the
Workforce Reinvestment and Adult Education Act of 2003)
that is received by the State involved for fiscal year
2003.
``(B) Disadvantaged youth.--The term `disadvantaged
youth' means an individual who is age 16 through 21 who
received an income, or is a member of a family that
received a total family income, that, in relation to
family size, does not exceed the poverty line.
``(C) Number of high school dropouts.--The term
`number of high school dropouts' means the number of
high school dropouts as is determined by the Secretary
based on the Current Population Survey.
``(D) Number of jobless out-of-school youth.--The
term `number of jobless out-of-school youth' means the
number of jobless out-of-school youth as is determined
by the Secretary based on the Current Population
Survey.
``(3) Special rule.--For purposes of the formula specified in
paragraph (1)(C), the Secretary shall, as appropriate and to
the extent practicable, exclude college students and members of
the Armed Forces from the determination of the number of
disadvantaged youth.
``(4) Minimum allotment.--Notwithstanding any other provision
of this section, no State shall receive an allotment under this
section that is less than the amount received by such State for
fiscal year 2003.''.
(2) Reallotment.--Section 127 (29 U.S.C. 2552) is further
amended--
(A) by striking subsection (b);
(B) by redesignating subsection (c) as subsection
(b);
(C) in subsection (b) (as so redesignated)
(i) by amending paragraph (2) to read as
follows:
``(2) Amount.--The amount available for reallotment for a
program year is equal to the amount by which the unexpended
balance, excluding accrued expenditures, at the end of such
program year of the total amount of funds available to the
State under this section during such program year (including
amounts allotted to the State in prior program years that
remain available during the program year for which the
determination is made) exceeds 30 percent of such total
amount.'';
(ii) in paragraph (3)--
(I) by striking ``for the prior
program year'' and inserting ``for the
program year in which the determination
is made''; and
(II) by striking ``such prior program
year'' and inserting ``such program
year'';
(iii) by amending paragraph (4) to read as follows:
``(4) Eligibility.--For purposes of this subsection, an
eligible State means a State which does not have an amount
available for reallotment under paragraph (2) for the program
year for which the determination under paragraph (2) is
made.''.
(b) Within State Allocations.--
(1) Reservation for statewide activities.--Section 128(a) is
amended to read as follows:
``(a) Reservation for Statewide Activities.--
``(1) In general.--The Governor of a State shall reserve not
more than 10 percent of the amount allotted to the State under
section 127(a)(1)(C) for a fiscal year for statewide
activities.
``(2) Use of funds.--Regardless of whether the amounts are
allotted under section 127(a)(1)(C) and reserved under
paragraph (1) or allotted under section 132 and reserved under
section 133(a), the Governor may use the reserved amounts to
carry out statewide youth activities under section 129(b) or
statewide employment and training activities under section
133.''.
(2) Within state allocation.--Section 128(b) is amended to
read as follows:
``(b) Within State Allocation.--
``(1) In general.--Of the amounts allotted to the State under
section 127(a)(1)(C) and not reserved under subsection (a)(1)--
``(A) 80 percent of such amounts shall be allocated
by the Governor to local areas in accordance with
paragraph (2); and
``(B) 20 percent of such amounts shall be allocated
by the Governor to local areas in accordance with
paragraph (3).
``(2) Established formula.--
``(A) In general.--Of the amounts described in
paragraph (1)(A), the Governor shall allocate--
``(i) 33 and \1/3\ percent on the basis of
the relative number of high school dropouts who
are ages 16 through 21 in each local area,
compared to the total number of high school
dropouts who are ages 16 through 21 in all
local areas in the State;
``(ii) 33 and \1/3\ percent on the basis of
the relative number of jobless out-of-school
youth who are ages 16 through 21 in each local
area, compared to the total number of jobless
out-of-school youth who are ages 16 through 21
in all local areas in the State; and
``(iii) 33 and \1/3\ percent on the basis of
the relative number of disadvantaged youth who
are ages 16 through 21 in each local area,
compared to the total number of disadvantaged
youth who are ages 16 through 21 in all local
areas in the State.
``(B) Minimum and maximum percentages.--The Governor
shall ensure that no local area shall receive an
allocation for a fiscal year under this paragraph that
is less than 90 percent or greater than 130 percent of
the allocation percentage of the local area for the
preceding fiscal year.
``(C) Definitions.--
``(i) Allocation percentage.--For purposes of
this paragraph, the term `allocation
percentage', used with respect to fiscal year
2004 or a subsequent fiscal year, means a
percentage of amount described in
paragraph(1)(A) that is received through an
allocation made under this paragraph for the
fiscal year. The term, with respect to fiscal
year 2003, means the percentage of the amounts
allocated to local areas under this chapter (as
in effect on the day before the date of
enactment of the Workforce Investment Act
Amendments of 2003) that is received by the
local area involved for fiscal year 2003.
``(ii) Other terms.--For purposes of this
paragraph, all other terms shall have the
meaning given such terms in section 127(a)(2).
``(3) Youth discretionary allocation.--The Governor shall
allocate to local areas the amounts described in paragraph
(1)(B) in accordance with such demographic and economic factors
as the Governor, after consultation with the State board and
local boards, determines are appropriate.
``(4) Local administrative cost limit.--
``(A) In general.--Of the amounts allocated to a
local area under this subsection and section 133(b) for
a fiscal year, not more than 10 percent of the amount
may be used by the local boards for the administrative
costs of carrying out local workforce investment
activities under this chapter or chapter 5.
``(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may be used
for the administrative costs of any of the local
workforce investment activities described in this
chapter or chapter 5, regardless of whether the funds
were allocated under this subsection or section
133(b).''.
(3) Reallocation.--Section 128(c) (29 U.S.C. 2853(c)) is
amended--
(A) in paragraph (1), by striking ``paragraph (2)(A)
or (3) of'';
(B) by amending paragraph (2) to read as follows:
``(2) Amount.--The amount available for reallocation for a
program year is equal to the amount by which the unexpended
balance, excluding accrued expenditures, at the end of such
program year of the total amount of funds available to the
local area under this section during such program year
(including amounts allotted to the local area in prior program
years that remain available during the program year for which
the determination is made) exceeds 30 percent of such total
amount.'';
(C) by amending paragraph (3)--
(i) by striking ``subsection (b)(3)'' each
place it appears and inserting ``subsection
(b)'';
(ii) by striking ``the prior program year''
and inserting ``the program year in which the
determination is made'';
(iii) by striking ``such prior program year''
and inserting ``such program year''; and
(iv) by striking the last sentence; and
(D) by amending paragraph (4) to read as follows:
``(4) Eligibility.--For purposes of this subsection, an
eligible local area means a local area which does not have an
amount available for reallocation under paragraph (2) for the
program year for which the determination under paragraph (2) is
made.''.
(c) Youth Participant Eligibility.--Section 129(a) (29 U.S.C.
2854(a)) is amended to read as follows:
``(a) Youth Participant Eligibility.--
``(1) In general.--The individuals participating in
activities carried out under this chapter by a local area
during any program year shall be individuals who, at the time
the eligibility determination is made, are--
``(A) not younger than age 16 or older than age 21;
and
``(B) one or more of the following:
``(i) school dropouts;
``(ii) recipients of a secondary school
diploma or the General Equivalency Diploma
(GED) (including recognized alternative
standards for individuals with disabilities);
``(iii) court-involved youth attending an
alternative school;
``(iv) youth in foster care or who have been
in foster care; or
``(v) in school youth who are low-income
individuals and one or more of the following:
``(I) Deficient in literacy skills.
``(II) Homeless, runaway, or foster
children.
``(III) Pregnant or parents.
``(IV) Offenders.
``(V) Individuals who require
additional assistance to complete an
educational program, or to secure and
hold employment.
``(2) Priority for school dropouts.--A priority in the
provision of services under this chapter shall be given to
individuals who are school dropouts.
``(3) Limitations on activities for in-school youth.--
``(A) Percentage of funds.--For any program year, not
more than 30 percent of the funds available for
statewide activities under subsection (b), and not more
than 30 percent of funds available to local areas under
subsection (c), may be used to provide activities for
in-school youth meeting the requirements of paragraph
(1)(B)(v).
``(B) Non-school hours required.--Activities carried
out under this chapter for in-school youth meeting the
requirements of paragraph (1)(B)(v) shall only be
carried out in non-school hours or periods when school
is not in session (such as before and after school or
during summer recess.''.
(d) Statewide Youth Activities.--Section 129(b) (29 U.S.C. 2854(b))
is amended to read as follows:
``(b) Statewide Activities.--
``(1) In general.--Funds reserved by a Governor for a State
as described in sections 128(a) and 133(a)(1) may be used for
statewide activities including--
``(A) additional assistance to local areas that have
high concentrations of eligible youth;
``(B) supporting the provision of core services
described in section 134(c)(2) in the one-stop delivery
system;
``(C) conducting evaluations under section 136(e) of
activities authorized under this chapter and chapter 5
in coordination with evaluations carried out by the
Secretary under section 172, research, and
demonstration projects;
``(D) providing incentive grants to local areas for
regional cooperation among local boards (including
local boards in a designated region as described in
section 116(c)), for local coordination of activities
carried out under this Act, and for exemplary
performance by local areas on the local performance
measures;
``(E) providing technical assistance and capacity
building to local areas, one-stop operators, one-stop
partners, and eligible providers, including the
development and training of staff, the development of
exemplary program activities, and the provision of
technical assistance to local areas that fail to meet
local performance measures;
``(F) operating a fiscal and management
accountability system under section 136(f); and
``(G) carrying out monitoring and oversight of
activities under this chapter and chapter 5.
``(2) Limitation.--Not more than 5 percent of the funds
allotted under section 127(b) shall be used by the State for
administrative activities carried out under this subsection and
section 133(a).
``(3) Prohibition.--No funds described in this subsection or
in section 134(a) may be used to develop or implement education
curricula for school systems in the State.''.
(e) Local Elements and Requirements.----
(1) Program design.--Section 129(c)(1) (29 U.S.C. 2854(c)
(1)) is amended--
(A) in the matter preceding subparagraph (A), by
striking ``paragraph (2)(A) or (3), as appropriate,
of'';
(B) in subparagraph (B), by inserting ``are directly
linked to one or more of the performance outcomes
relating to this chapter under section 136, and that''
after ``for each participant that''; and
(C) in subparagraph (C)--
(i) by redesignating clauses (i) through (iv)
as clauses (ii) through (v), respectively;
(ii) by inserting before clause (ii) (as so
redesignated) the following:
``(i) activities leading to the attainment of
a secondary school diploma or the General
Equivalency Diploma (GED) (including recognized
alternative standards for individuals with
disabilities);'';
(iii) in clause (ii) (as redesignated by this
subparagraph), by inserting ``and advanced
training'' after ``opportunities'';
(iv) in clause (iii) (as redesignated by this
subparagraph), by inserting ``that lead to the
attainment of recognized credentials'' after
``learning''; and
(v) by amending clause (v) (as redesignated
by this subparagraph) to read as follows:
``(v) effective connections to employers in
sectors of the local labor market experiencing
high growth in employment opportunities.''.
(2) Program elements.--Section 129(c)(2) (29 U.S.C.
2854(c)(2)) is amended--
(A) in subparagraph (A), by striking ``secondary
school, including dropout prevention strategies'' and
inserting ``secondary school diploma or the General
Equivalency Diploma (GED) (including recognized
alternative standards for individuals with
disabilities), including dropout prevention
strategies'';
(B) in subparagraph (I), by striking ``and'' at the
end;
(C) in subparagraph (J), by striking the period at
the end and inserting a semicolon; and
(D) by adding at the end the following:
``(K) on-the-job training opportunities; and
``(L) financial literacy skills.''.
(3) Additional requirements.--Section 129(c)(3)(A) (29 U.S.C.
2854(c)(3)(A)) is amended in the matter preceding clause (i) by
striking ``or applicant who meets the minimum income criteria
to be considered an eligible youth'';
(4) Priority and exceptions.--Section 129(c) (29 U.S.C.
2854(c)) is further amended--
(A) by striking paragraphs (4) and (5);
(B) by redesignating paragraph (6) as paragraph (4);
(C) by redesignating paragraph (7) as paragraph (5),
and in such redesignated paragraph (5) by striking
``youth councils'' and inserting ``local boards''; and
(D) by redesignating paragraph (8) as paragraph (6).
SEC. 112. COMPREHENSIVE PROGRAM FOR ADULTS.
(a) Title of Chapter 5.--
(1) The title heading of chapter 5 is amended to read as
follows:
``CHAPTER 5--COMPREHENSIVE EMPLOYMENT AND TRAINING ACTIVITIES FOR
ADULTS''.
(2) Conforming amendment.--Table of contents in section 1(b)
is amended by amending the item related to the heading for
chapter 5 to read as follows:
``Chapter 5--Comprehensive Employment and Training Activities for
Adults''.
(b) General Authorization.--Section 131 (29 U.S.C. 2861) is amended--
(1) by striking ``paragraphs (1)(B) and (2)(B) of ''; and
(2) by striking ``, and dislocated workers,''.
(c) State Allotments.--
(1) In general.--Section 132(a) (29 U.S.C. 2862(a)) is
amended to read as follows:
``(a) In General.--The Secretary shall--
``(1) reserve 10 percent of the amount appropriated under
section 137(b) for a fiscal year, of which--
``(A) not less than 75 percent shall be used for
national dislocated worker grants under section 173;
``(B) not more than 20 percent may be used for
demonstration projects under section 171; and
``(C) not more than 5 percent may be used to provide
technical assistance under section 170; and
``(2) make allotments from 90 percent of the amount
appropriated under section 137(b) for a fiscal year in
accordance with subsection (b).''.
(2) Allotment among states.--Section 132(b) (29 U.S.C.
2862(b)) is amended to read as follows:
``(b) Allotment Among States for Adult Employment and Training
Activities.--
``(1) Reservation for outlying areas.--From the amount made
available under subsection (a)(2) for a fiscal year, the
Secretary shall reserve not more than \1/4\ of 1 percent to
provide assistance to outlying areas to carry out employment
and training activities for adults and statewide workforce
investment activities.
``(2) States.--
``(A) In general.--After determining the amount to be
reserved under paragraph (1), the Secretary shall allot
the remainder of the amount referred to under
subsection (a)(2) for a fiscal year to the States
pursuant to subparagraph (B) for employment and
training activities for adults and statewide workforce
investment activities.
``(B) Formula.--Subject to subparagraphs (C) and (D),
of the remainder--
``(i) 60 percent shall be allotted on the
basis of the relative number of unemployed
individuals in each State, compared to the
total number of unemployed individuals in all
States;
``(ii) 15 percent shall be allotted on the
basis of the relative excess number of
unemployed individuals in each State, compared
to the total excess number of unemployed
individuals in all States;
``(iii) 15 percent shall be allotted on the
basis of the relative number of individuals in
the civilian labor force in each State,
compared to the total number of individuals in
the civilian labor force in all States; and
``(iv) 10 percent shall be allotted on the
basis of the relative number of disadvantaged
adults in each State, compared to the total
number of disadvantaged adults in all States.
``(C) Minimum and maximum percentages.--The Secretary
shall ensure that no State shall receive an allotment
for a fiscal year that is less than 90 percent or
greater than 130 percent of the allotment percentage of
the State for the preceding fiscal year.
``(D) Minimum allotment.--Notwithstanding any other
provision of this section, no State shall receive an
allotment under this section that is less than the
amount received by such State for fiscal year 2003.
``(E) Small state minimum allotment.--Subject to
subparagraph (C), the Secretary shall ensure that no
State shall receive an allotment under this paragraph
that is less than \3/10\ of 1 percent of the amount
available under subparagraph (A).
``(F) Definitions.--For the purposes of this
paragraph, the following definitions apply:
``(i) Allotment percentage.--The term
`allotment percentage', used with respect to
fiscal year 2004 or a subsequent fiscal year,
means a percentage of the remainder described
in subparagraph (A) that is received through an
allotment made under this paragraph for the
fiscal year. The term, with respect to fiscal
year 2003, means the percentage of the amounts
allotted to States under this chapter (as in
effect on the day before the date of enactment
of the Workforce Reinvestment and Adult
Education Act of 2003) and under section 6 of
the Wagner-Peyser Act that is received by the
State involved for fiscal year 2003.
``(ii) Disadvantaged adult.--The term
`disadvantaged adult' means an individual who
is age 22 through 72 who received an income, or
is a member of a family that received a total
family income, that, in relation to family
size, does not exceed the poverty line.
``(iii) Excess number.--The term `excess
number' means, used with respect to the excess
number of unemployed individuals within a
State, the number that represents the number of
unemployed individuals in excess of 4.5 percent
of the civilian labor force in the State.''.
(3) Reallotment.--Section 132(c) (29 U.S.C. 2862(c)) is
amended--
(A) by amending paragraph (2) to read as follows:
``(2) Amount.--The amount available for reallotment for a
program year is equal to the amount by which the unexpended
balance, excluding accrued expenditures, at the end of such
program year of the total amount of funds available to the
State under this section during such program year (including
amounts allotted to the State in prior program years that
remain available during the program year for which the
determination is made) exceeds 30 percent of such total
amount.'';
(B) in paragraph (3)--
(i) by striking ``for the prior program
year'' and inserting ``for the program year in
which the determination is made''; and
(ii) by striking ``such prior program year''
and inserting ``such program year''; and
(C) by amending paragraph (4) to read as follows:
``(4) Eligibility.--For purposes of this subsection, an
eligible State means a State that does not have an amount
available for reallotment under paragraph (2) for the program
year for which the determination under paragraph (2) is
made.''.
(d) Within State Allocations.--
(1) Reservation for state activities.--Section 133(a) (29
U.S.C. 2863(a)) is amended to read as follows:
``(a) Reservation for Statewide Activities.--The Governor of a State
may reserve up to 50 percent of the total amount allotted to the State
under section 132 for a fiscal year to carry out the statewide
activities described in section 134(a).''.
(2) Allocations to local areas.--Section 133(b) (29 U.S.C.
2863(b)) is amended to read as follows:
``(b) Allocations to Local Areas.--
``(1) In general.--Of the amounts allotted to the State under
section 132(b)(2) and not reserved under subsection (a)--
``(A) 80 percent of such amounts shall be allocated
by the Governor to local areas in accordance with
paragraph (2); and
``(B) 20 percent of such amounts shall be allocated
by the Governor to local areas in accordance with
paragraph (3).
``(2) Established formula.--
``(A) In general.--Of the amounts described in
paragraph (1)(A), the Governor shall allocate--
``(i) 60 percent on the basis of the relative
number of unemployed individuals in each local
area, compared to the total number of
unemployed individuals in all local areas in
the State;
``(ii) 15 percent on the basis of the
relative excess number of unemployed
individuals in each local area, compared to the
total excess number of unemployed individuals
in all local areas in the State;
``(iii) 15 percent on the basis of the
relative number of individuals in the civilian
labor force in each local area, compared to the
total number of individuals in the civilian
labor force in all local areas in the State;
and
``(iv) 10 percent shall be allotted on the
basis of the relative number of disadvantaged
adults in each local area, compared to the
total number of disadvantaged adults in all
local areas in the State.
``(B) Minimum and maximum percentages.--The Governor
shall ensure that no local area shall receive an
allocation for a fiscal year under this paragraph that
is less than 90 percent or greater than 130 percent of
the allocation percentage of the local area for the
preceding fiscal year.
``(C) Definitions.--
``(i) Allocation percentage.--The term
`allocation percentage', used with respect to
fiscal year 2004 or a subsequent fiscal year,
means a percentage of amount described in
paragraph (1)(A) that is received through an
allocation made under this paragraph for the
fiscal year. The term, with respect to fiscal
year 2003, means the percentage of the amounts
allocated to local areas under this chapter (as
in effect on the day before the date of
enactment of the Workforce Reinvestment and
Adult Education Act of 2003) that is received
by the local area involved for fiscal year
2003.
``(ii) Disadvantaged adult.--The term
`disadvantaged adult' means an individual who
is age 22 through 72 who received an income, or
is a member of a family that received a total
family income, that, in relation to family
size, does not exceed the poverty line.
``(iii) Excess number.--The term `excess
number' means, used with respect to the excess
number of unemployed individuals within a local
area, the number that represents the number of
unemployed individuals in excess of 4.5 percent
of the civilian labor force in the local area.
``(3) Discretionary allocation.--The Governor shall allocate
to local areas the amounts described in paragraph (1)(B) based
on a formula developed in consultation with the State board and
local boards. Such formula shall be objective and
geographically equitable and may include such demographic and
economic factors as the Governor, after consultation with the
State board and local boards, determines are appropriate.
``(4) Local administrative cost limit.--
``(A) In general.--Of the amounts allocated to a
local area under this subsection and section 128(b) for
a fiscal year, not more than 10 percent of the amount
may be used by the local boards for the administrative
costs of carrying out local workforce investment
activities under this chapter or chapter 4.
``(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may be used
for the administrative costs of any of the local
workforce investment activities described in this
chapter or chapter 4, regardless of whether the funds
were allocated under this subsection or section
128(b).''.
(3) Reallocation among local areas.--Section 133(c) (29
U.S.C. 2863(c)) is amended--
(A) in paragraph (1), by striking ``paragraph (2)(A)
or (3) of'';
(B) by amending paragraph (2) to read as follows:
``(2) Amount.--The amount available for reallocation for a
program year is equal to the amount by which the unexpended
balance, excluding accrued expenditures, at the end of such
program year of the total amount of funds available to the
local area under this section during such program year
(including amounts allotted to the local area in prior program
years that remain available during the program year for which
the determination is made) exceeds 30 percent of such total
amount.'';
(C) by amending paragraph (3)--
(i) by striking ``subsection (b)(3)'' each
place it appears and inserting ``subsection
(b)'';
(ii) by striking ``the prior program year''
and inserting ``the program year in which the
determination is made'';
(iii) by striking ``such prior program year''
and inserting ``such program year''; and
(iv) by striking the last sentence; and
(D) by amending paragraph (4) to read as follows:
``(4) Eligibility.--For purposes of this subsection, an
eligible local area means a local area which does not have an
amount available for reallocation under paragraph (2) for the
program year for which the determination under paragraph (2) is
made.''.
(e) Use of Funds for Employment and Training Activities.--
(1) Statewide employment and training activities.--
(A) In general.--Section 134(a)(1) (29 U.S.C.
2864(a)(1) is amended to read as follows:
``(1) In general.--
``(A) Required use of funds.--Not less than 50
percent of the funds reserved by a Governor under
section 133(a) shall be used to support the provision
of core services in local areas, consistent with the
local plan, through one-stop delivery systems by
distributing funds to local areas in accordance with
subparagraph (B). Such funds may be used by States to
employ State personnel to provide such services in
designated local areas in consultation with local
boards.
``(B) Method of distributing funds.--The method of
distributing funds under this paragraph shall be
developed in consultation with the State board and
local boards. Such method of distribution, which may
include the formula established under section
121(h)(3), shall be objective and geographically
equitable, and may include factors such as the number
of centers in the local area that have been certified,
the population served by such centers, and the
performance of such centers.
``(C) Other use of funds.--Funds reserved by a
Governor for a State--
``(i) under section 133(a) and not used under
subparagraph (A), may be used for statewide
activities described in paragraph (2); and
``(ii) under section 133(a) and not used
under subparagraph (A), and under section
128(a) may be used to carry out any of the
statewide employment and training activities
described in paragraph (3).''.
(B) Statewide rapid response activities.--Section
134(a)(2) (29 U.S.C. 2864(a)(2)) is amended to read as
follows:
``(2) Statewide rapid response activities.--A State shall
carry out statewide rapid response activities using funds
reserved as described in section 133(a). Such activities shall
include--
``(A) provision of rapid response activities, carried
out in local areas by the State or by an entity
designated by the State, working in conjunction with
the local boards and the chief elected officials in the
local areas; and
``(B) provision of additional assistance to local
areas that experience disasters, mass layoffs or plant
closings, or other events that precipitate substantial
increases in the number of unemployed individuals,
carried out in local areas by the State, working in
conjunction with the local boards and the chief elected
officials in the local areas.''.
(C) Statewide employment and training activities.--
Section 134(a)(3) (29 U.S.C. 2864(a)(3)) is amended to
read as follows:
``(3) Statewide activities.--Funds reserved by a Governor for
a State as described in sections 133(a) and 128(a) may be used
for statewide activities including--
``(A) supporting the provision of core services
described in section 134(c)(2) in the one-stop delivery
system;
``(B) conducting evaluations under section 136(e) of
activities authorized under this chapter and chapter 4
in coordination with evaluations carried out by the
Secretary under section 172, research, and
demonstration projects;
``(C) providing incentive grants to local areas for
regional cooperation among local boards (including
local boards in a designated region as described in
section 116(c)), for local coordination of activities
carried out under this Act, and for exemplary
performance by local areas on the local performance
measures;
``(D) providing technical assistance and capacity
building to local areas, one-stop operators, one-stop
partners, and eligible providers, including the
development and training of staff, the development of
exemplary program activities, and the provision of
technical assistance to local areas that fail to meet
local performance measures;
``(E) operating a fiscal and management
accountability system under section 136(f);
``(F) carrying out monitoring and oversight of
activities carried out under this chapter and chapter
4;
``(G) implementing innovative programs, such as
incumbent worker training programs, programs serving
individuals with disabilities consistent with section
188;
``(H) developing strategies for effectively serving
hard-to-serve populations and for integrating programs
and services among one-stop partners;
``(I) implementing innovative programs for displaced
homemakers, which for purposes of this subparagraph may
include an individual who is receiving public
assistance and is within 2 years of exhausting lifetime
eligibility under Part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.); and
``(J) implementing programs to increase the number of
individuals training for and placed in nontraditional
employment.''.
(D) Limitation on state administrative
expenditures.--Section 134(a) is further amended by
adding the following new paragraph:
``(4) Limitation.--Not more than 5 percent of the funds
allotted under section 132(b) shall be used by the State for
administrative activities carried out under this subsection and
section 128(a).''.
(2) Local employment and training activities.-- Section
134(b) (29 U.S.C. 2864(b)) is amended--
(A) by striking ``under paragraph (2)(A)'' and all
that follows through ``section 133(b)(2)(B)'' and
inserting ``under section 133(b)'';
(B) in paragraphs (1) and (2), by striking ``or
dislocated workers, respectively'' both places it
appears; and
(C) by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(3) Required local employment and training activities.--
(A) Allocated funds.--Section 134(c)(1) (29 U.S.C.
2864(c)(1)) (as redesignated by paragraph (2)) is
amended to read as follows:
``(1) In general.--Funds allocated to a local area for adults
under section 133(b) shall be used--
``(A) to establish a one-stop delivery system as
described in section 121(e);
``(B) to provide the core services described in
paragraph (2) through the one-stop delivery system in
accordance with such paragraph;
``(C) to provide the intensive services described in
paragraph (3) to adults described in such paragraph;
and
``(D) to provide training services described in
paragraph (4) to adults described in such paragraph.''.
(B) Core services.--Section 134(c)(2) (29 U.S.C.
2864(c)(2)) (as redesignated by paragraph (2)) is
amended--
(i) by striking ``who are adults or
dislocated workers'';
(ii) in subparagraph (A), by striking ``under
this subtitle'' and inserting ``under the one-
stop partner programs described in section
121(b)'';
(iii) by amending subparagraph (D) to read as
follows:
``(D) labor exchange services, including--
``(i) job search and placement assistance,
and where appropriate career counseling; and
``(ii) appropriate recruitment services for
employers;''
(iv) in subparagraph (I), by inserting ``and
the administration of the work test for the
unemployment compensation system'' after
``compensation''; and
(v) by amending subparagraph (J) to read as
follows:
``(J) assistance in establishing eligibility for
programs of financial aid assistance for training and
education programs that are not funded under this Act
and are available in the local area; and''.
(C) Intensive services.--Section 134(c)(3) (29 U.S.C.
2864(c)(3) (as redesignated by paragraph (2) of this
subsection) is amended--
(i) by amending subparagraph (A) to read as
follows:
``(A) In general.--
``(i) Eligibility.--Funds allocated to a
local area under section 133(b) shall be used
to provide intensive services for adults who--
``(I) are unemployed and who have
been determined by the one-stop
operator to be--
``(aa) unlikely or unable to
obtain suitable employment
through core services; and
``(bb) in need of intensive
services in order to obtain
suitable employment; or
``(II) are employed, but who are
determined by a one-stop operator to be
in need of intensive services to obtain
or retain suitable employment.
``(ii) Definition.--The Governor shall define
the term `suitable employment' for purposes of
this subparagraph.''; and
(ii) in subparagraph (C)--
(I) in clause (v), by striking ``for
participants seeking training services
under paragraph (4)''; and
(II) by adding the following clauses
after clause (vi):
``(vii) Internships and work experience.
``(viii) Literacy activities relating to
basic work readiness, and financial literacy
activities.
``(ix) Out-of-area job search assistance and
relocation assistance.''.
(D) Training services.--Section 134(c)(4) (as
redesignated by paragraph (2) of this subsection) is
amended--
(i) by amending subparagraph (A) to read as
follows:
``(A) In general.--
``(i) Eligibility.--Funds allocated to a
local area under section 133(b) shall be used
to provide training services to adults who--
``(I) after an interview, evaluation,
or assessment, and case management,
have been determined by a one-stop
operator or one-stop partner, as
appropriate, to--
``(aa) be unlikely or unable
to obtain or retain suitable
employment through intensive
services under paragraph
(3)(A);
``(bb) be in need of training
services to obtain or retain
suitable employment; and
``(cc) have the skills and
qualifications to successfully
participate in the selected
program of training services;
``(II) select programs of training
services that are directly linked to
the employment opportunities in the
local area involved or in another area
in which the adults receiving such
services are willing to commute or
relocate;
``(III) who meet the requirements of
subparagraph (B); and
``(IV) who are determined eligible in
accordance with the priority system in
effect under subparagraph (E).
``(ii) The Governor shall define the term
`suitable employment' for purposes of this
subparagraph.'';
(ii) in subparagraph (B)(i), by striking
``Except'' and inserting ``Notwithstanding
section 479B of the Higher Education Act of
1965 (20 U.S.C. 1087uu) and except'';
(iii) by amending subparagraph (E) to read as
follows:
``(E) Priority.--
``(i) In general.--A priority shall be given
to unemployed individuals for the provision of
intensive and training services under this
subsection.
``(ii) Additional priority.--If the funds in
the local area, including the funds allocated
under section 133(b), for serving recipients of
public assistance and other low-income
individuals is limited, the priority for the
provision of intensive and training services
under this subsection shall include such
recipients and individuals.
``(iii) Determinations.--The Governor and the
appropriate local board shall direct the one-
stop operators in the local area with regard to
making determinations with respect to the
priority of service under this subparagraph.'';
(iv) in subparagraph (F), by adding the
following clause after clause (iii):
``(iv) Enhanced individual training
accounts.--Each local board may, through one-
stop centers, assist individuals receiving
individual training accounts through the
establishment of such accounts that include, in
addition to the funds provided under this
paragraph, funds from other programs and
sources that will assist the individual in
obtaining training services.''; and
(v) in subparagraph (G)(iv), by redesignating
subclause (IV) as subclause (V) and inserting
after subclause (III) the following:
``(IV) Individuals with
disabilities.''.
(4) Permissible activities.--Section 134(d) (as redesignated
by paragraph (2)) is amended--
(A) by amending paragraph (1) to read as follows:
``(1) Discretionary one-stop delivery activities.--
``(A) In general.--Funds allocated to a local area
under section 133(b) may be used to provide, through
the one-stop delivery system--
``(i) customized screening and referral of
qualified participants in training services to
employers;
``(ii) customized employment-related services
to employers on a fee-for-service basis;
``(iii) customer support to navigate among
multiple services and activities for special
participant populations that face multiple
barriers to employment, including individuals
with disabilities; and
``(iv) employment and training assistance
provided in coordination with child support
enforcement activities of the State agency
carrying out subtitle D of title IV of the
Social Security Act.
``(B) Work support activities for low-wage workers.--
``(i) In general.-- Funds allocated to a
local area under 133(b) may be used to provide,
through the one-stop delivery system and in
collaboration with the appropriate programs and
resources of the one-stop partners, work
support activities designed to assist low-wage
workers in retaining and enhancing employment.
``(ii) Activities.--The activities described
in clause (i) may include assistance in
accessing financial supports for which such
workers may be eligible and the provision of
activities available through the one-stop
delivery system in a manner that enhances the
opportunities of such workers to participate,
such as the provision of employment and
training activities during nontraditional hours
and the provision of on-site child care while
such activities are being provided.''; and
(B) by adding after paragraph (3) the following new
paragraph:
``(4) Incumbent worker training programs.--
``(A) In general.--The local board may use up to 10
percent of the funds allocated to a local area under
section 133(b) to carry out incumbent worker training
programs in accordance with this paragraph.
``(B) Training activities.--The training programs for
incumbent workers under this paragraph shall be carried
out by the local area in conjunction with the employers
of such workers for the purpose of assisting such
workers in obtaining the skills necessary to retain
employment and avert layoffs.
``(C) Employer match required.--
``(i) In general.--Employers participating in
programs under this paragraph shall be required
to pay a proportion of the costs of providing
the training to the incumbent workers. The
Governor shall establish, or may authorize the
local board to establish, the required portion
of such costs, which shall not be less than--
``(I) 10 percent of the costs, for
employers with 50 or fewer employees;
``(II) 25 percent of the costs, for
employers with more than 50 employees
but fewer than 100 employees; and
``(III) 50 percent of the costs, for
employers with 100 or more employees.
``(ii) Calculation of match.--The wages paid
by an employer to a worker while they are
attending training may be included as part of
the requirement payment of the employer.''.
SEC. 113. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) State Performance Measures.--
(1) In general.--Section 136(b)(1) (29 U.S.C. 2871(b)(1)) is
amended--
(A) in subparagraph (A)(i), by striking ``and the
customer satisfaction indicator of performance
described in paragraph (2)(B)''; and
(B) in subparagraph (A)(ii), by striking ``paragraph
(2)(C)'' and inserting ``paragraph (2)(B)''.
(2) Indicators of performance.--Section 136(b)(2) (29 U.S.C.
2871(b)(2)) is amended--
(A) in subparagraph (A)(i), by striking ``(except for
self-service and information activities) and (for
participants who are eligible youth age 19 through 21)
for youth activities authorized under section 129'';
(B) by amending subparagraph (A)(i)(IV) to read as
follows:
``(IV) the efficiency of the program
in obtaining the outcomes described in
subclauses (I) through (III).'';
(C) by amending subparagraph (A)(ii) to read as
follows:
``(ii) Core indicators for eligible youth.--
The core indicators of performance for youth
activities authorized under section 129 shall
consist of--
``(I) entry into employment,
education or advanced training, or
military service;
``(II) attainment of secondary school
diplomas or the General Equivalency
Diploma (GED) (including recognized
alternative standards for individuals
with disabilities);
``(III) attainment of literacy or
numeracy skills; and
``(IV) the efficiency of the program
in obtaining the outcomes described in
subclauses (I) through (III).'';
(D) by striking subparagraph (B);
(E) by redesignating subparagraph (C) as subparagraph
(B), and by adding at the end of such subparagraph (as
so redesignated) the following new sentence: ``Such
indicators may include customer satisfaction of
employers and participants with services received from
the workforce investment activities authorized under
this subtitle.''.
(3) Levels of performance.--Section 136(b)(3)(A) (29 U.S.C.
2871(b)(3)(A)) is amended--
(A) in clause (i), by striking ``and the customer
satisfaction indicator described in paragraph (2)(B)'';
(B) in clause (ii), by striking ``and the customer
satisfaction indicator of performance, for the first
3'' and inserting ``for the 2'';
(C) in clause (iii)--
(i) in the heading, by striking ``for first 3
years''; and
(ii) by striking ``and the customer
satisfaction indicator of performance, for the
first 3'' and inserting ``for the 2'';
(D) in clause (iv)--
(i) by striking subclause (I);
(ii) by redesignating subclauses (II) and
(III) as subclauses (I) and (II), respectively;
and
(iii) in subclause (I) (as so redesignated)--
(I) by striking ``taking into
account'' and inserting ``which shall
be adjusted based on'';
(II) by inserting ``such as
unemployment rates and job losses or
gains in particular industries'' after
``economic conditions''; and
(III) by inserting ``such as
indicators of poor work history, lack
of work experience, low levels of
literacy or English proficiency,
disability status, and welfare
dependency'' after ``program'';
(E) by striking clause (v); and
(F) by redesignating clause (vi) as clause (v).
(4) Additional indicators.--Section 136(b)(3)(B) is amended
by striking ``paragraph (2)(C)'' and inserting ``paragraph
(2)(B)''.
(b) Local Performance Measures.--Section 136(c) (29 U.S.C 2871(c)) is
amended--
(1) in paragraph (1)(A)(i), by striking ``, and the customer
satisfaction indicator of performance described in subsection
(b)(2)(B),'';
(2) in paragraph (1)(A)(ii), by striking ``subsection
(b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
(3) by amending paragraph (3) to read as follows:
``(3) Determinations.--In determining such local levels of
performance, the local board, the chief elected official, and
the Governor shall ensure such levels are adjusted based on the
specific economic characteristics (such as unemployment rates
and job losses or gains in particular industries), demographic
characteristics, or other characteristics of the population to
be served in the local area, such as poor work history, lack of
work experience, low levels of literacy or English proficiency,
disability status, and welfare dependency.''.
(c) Report.--Section 136(d) (29 U.S.C. 2871(d)) is amended--
(1) in paragraph (1), by striking ``and the customer
satisfaction indicator'' in both places that it appears;
(2) in paragraph (2)(E), by striking ``(excluding
participants who received only self-service and informational
activities)''; and
(3) by adding at the end the following:
``(4) Data validation.--In preparing the reports described in
this subsection, the States shall establish procedures,
consistent with guidelines issued by the Secretary, to ensure
the information contained in the report is valid and
reliable.''.
(d) Sanctions for State.--Section 136(g) (29 U.S.C. 2871(g)) is
amended--
(1) in paragraph (1)(A), by striking ``or (B)''; and
(2) in paragraph (2), by striking ``section 503'' and
inserting ``section 136(i)''.
(e) Sanctions for Local Areas.--Section 136(h) (29 U.S.C. 2871(h)) is
amended--
(1) in paragraph (1), by striking ``or (B)''; and
(2) by amending paragraph (2)(B) to read as follows:
``(B) Appeal to governor.--A local area that is
subject to a reorganization plan under subparagraph (A)
may, not later than 30 days after receiving notice of
the reorganization plan, appeal to the Governor to
rescind or revise such plan. In such case, the Governor
shall make a final decision not later than 30 days
after the receipt of the appeal.''.
(f) Incentive Grants.--Section 136(i) (29 U.S.C. 2871(i)) is amended
to read as follows:
``(i) Incentive Grants for States and Local Areas.--
``(1) Incentive grants for states.--
``(A) In general.--From funds appropriated under
section 174, the Secretary may award grants to States
for exemplary performance in carrying programs under
this chapters 4 and 5 of this title. Such awards may be
based on States meeting or exceeding the performance
measures established under this section, on the
performance of the State in serving special
populations, including the levels of service provided
and the performance outcomes, and such other factors
relating to the performance of the State under this
title as the Secretary determines is appropriate.
``(B) Use of funds.--The funds awarded to a State
under this paragraph may be used to carry out any
activities authorized under chapters 4 and 5 of this
title, including demonstrations and innovative programs
for special populations.
``(2) Incentive grants for local areas.--
``(A) In general.--From funds reserved under sections
128(a) and 133(a), the Governor may award incentive
grants to local areas for exemplary performance with
respect to the measures established under this section
and with the performance of the local area in serving
special populations, including the levels of service
and the performance outcomes.
``(B) Use of funds.--The funds awarded to a local
area may be used to carry out activities authorized for
local areas under chapters 4 and 5 of this title, and
such demonstration or other innovative programs to
serve special populations as may be approved by the
Governor.''.
(g) Repeal of Definitions.--Sections 502 and 503 (and the items
related to such sections in the table of contents) are repealed.
SEC. 114. AUTHORIZATION OF APPROPRIATIONS.
(a) Youth Activities.-- Section 137(a) (29 U.S.C. 2872(a)) is amended
by striking ``such sums as may be necessary for each of fiscal years
1999 through 2003'' and inserting ``$1,001,000,000 for fiscal year 2004
and such sums as may be necessary for each of fiscal years 2005 through
2009''.
(b) Adult Employment and Training Activities.--Section 137(b) (29
U.S.C. 2872(b)) is amended by striking ``section 132(a)(1), such sums
as may be necessary for each of fiscal years 1999 through 2003'' and
inserting ``132(a), $3,079,800,000 for fiscal year 2004 and such sums
as may be necessary for each of fiscal years 2005 through 2009''.
(c) Dislocated Worker Employment and Training Activities.--Section
137 is further amended by striking subsection (c).
SEC. 115. JOB CORPS.
(a) Community Participation.-- Section 153 (29 U.S.C. 2893) is
amended--
(1) by amending subsection (a) to read as follows:
``(a) Business and Community Participation.--The director of each Job
Corps center shall ensure the establishment and development of the
business and community relationships and networks described in
subsection (b) in order to enhance the effectiveness of such center.'';
(2) in subsection (b)--
(A) in the heading, by striking ``Responsibilities''
and inserting ``Networks''; and
(B) by striking ``The responsibilities of the
Liaison'' and inserting ``The activities carried out by
each Job Corps center under this section''; and
(3) in subsection (c), by striking ``The Liaison for'' and
inserting ``The director of''.
(b) Industry Councils.--Section 154(b) (29 U.S.C. 2894(b)) is
amended--
(1) in paragraph (1)(A), by striking ``local and distant'';
and
(2) by adding after paragraph (2) the following:
``(3) Employers outside of local areas.--The industry council
may include, or otherwise provide for consultation with,
employers from outside the local area who are likely to hire a
significant number of enrollees from the Job Corps center.''.
(c) Indicators of Performance and Additional Information.--Section
159(c) (29 U.S.C. 2893(c)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Core indicators.--The Secretary shall annually
establish expected levels of performance for Job Corps centers
and the Job Corps program relating to each of the core
indicators for youth identified in section 136(b)(2)(A)(ii).'';
and
(2) in paragraph (2), by striking ``measures'' each place it
appears and inserting ``indicators''.
SEC. 116. NATIVE AMERICAN PROGRAMS.
(a) Authorized Activities.--Section 166(d)(2) (29 U.S.C. 2911(d)(2))
is amended to read as follows:
``(2) Workforce investment activities and supplemental
services.--Funds made available under subsection (c) shall be
used for--
``(A) comprehensive workforce investment activities
for Indians or Native Hawaiians; or
``(B) supplemental services for Indian or Native
Hawaiian youth on or near Indian reservations and in
Oklahoma, Alaska, or Hawaii.''.
(b) Advisory Council.--Section 166(h)(4)(C) (29 U.S.C. 2911(h)(4)(C))
is amended to read as follows:
``(C) Duties.--The Council shall advise the Secretary
on the operation and administration of the programs
assisted under this section.''.
(c) Assistance to American Samoans in Hawaii.--Section 166 (29 U.S.C.
2911) is further amended by striking subsection (j).
SEC. 117. YOUTH CHALLENGE GRANTS.
Section 169 (29 U.S.C. 2914) is amended to read as follows:
``SEC. 169 YOUTH CHALLENGE GRANTS.
``(a) In General.--Of the amounts reserved by the Secretary under
section 127(a)(1)(A) for a fiscal year--
``(1) the Secretary shall use not less than 80 percent to
award competitive grants under subsection (b); and
``(2) the Secretary may use not more than 20 percent to award
discretionary grants under subsection (c).
``(b) Competitive Grants to States and Local Areas.--
``(1) Establishment.--From the funds described in subsection
(a)(1), the Secretary shall award competitive grants to
eligible entities to carry out activities authorized under this
section to assist eligible youth in acquiring the skills,
credentials and employment experience necessary to succeed in
the labor market.
``(2) Eligible entities.--Grants under this subsection may be
awarded to States, local boards, recipients of grants under
section 166 (relating to Native American programs), and public
or private entities (including consortia of such entities)
applying in conjunction with local boards.
``(3) Grant period.--The Secretary may make a grant under
this section for a period of 1 year and may renew the grants
for each of the 4 succeeding years.
``(4) Authority to require match.--The Secretary may require
that grantees under this subsection provide a non-Federal share
of the cost of activities carried out under a grant awarded
under this subsection.
``(5) Participant eligibility.--Youth ages 14 through 19 as
of the time the eligibility determination is made may be
eligible to participate in activities provided under this
subsection.
``(6) Use of funds.--Funds under this subsection may be used
for activities that are designed to assist youth in acquiring
the skills, credentials and employment experience that are
necessary to succeed in the labor market, including the
activities identified in section 129. The activities may
include activities such as--
``(A) training and internships for out-of-school
youth in sectors of economy experiencing or projected
to experience high growth;
``(B) after-school dropout prevention activities for
in-school youth;
``(C) activities designed to assist special youth
populations, such as court-involved youth and youth
with disabilities; and
``(D) activities combining remediation of academic
skills, work readiness training, and work experience,
and including linkages to postsecondary education,
apprenticeships, and career-ladder employment.
``(7) Applications.--To be eligible to receive a grant under
this subsection, an eligible entity shall submit an application
to the Secretary at such time, in such manner, and containing
such information as the Secretary may require, including--
``(A) a description of the activities the eligible
entity will provide to eligible youth under this
subsection;
``(B) a description of the programs of demonstrated
effectiveness on which the provision of the activities
under subparagraph (A) are based, and a description of
how such activities will expand the base of knowledge
relating to the provision of activities for youth;
``(C) a description of the private and public, and
local and State resources that will be leveraged to
provide the activities described under subparagraph (A)
in addition the funds provided under this subsection;
and
``(D) the levels of performance the eligible entity
expects to achieve with respect to the indicators of
performance for youth specified in section
136(b)(2)(A)(ii).
``(8) Factors for award.--In awarding grants under this
subsection the Secretary may consider the quality of the
proposed project, the goals to be achieved, the likelihood of
successful implementation, the extent to which the project is
based on proven strategies or the extent to which the project
will expand the knowledge base on activities for youth, and the
additional State, local or private resources that will be
provided.
``(9) Evaluation.--The Secretary may reserve up to 5 percent
of the funds described in subsection(a)(1) to provide technical
assistance to, and conduct evaluations of the projects funded
under this subsection (using appropriate techniques as
described in section 172(c)).
``(c) Discretionary Grants for Youth Activities.--
``(1) In general.--From the funds described in
subsection(a)(2), the Secretary may award grants to eligible
entities to provide activities that will assist youth in
preparing for, and entering and retaining, employment.
``(2) Eligible entities.--Grants under this subsection may be
awarded to public or private entities that the Secretary
determines would effectively carry out activities relating to
youth under this subsection.
``(3) Participant eligibility.--Youth ages 14 through 19 at
the time the eligibility determination is made may be eligible
to participate in activities under this subsection.
``(4) Use of funds.--Funds provided under this subsection may
be used for activities that will assist youth in preparing for,
and entering and retaining, employment, including the
activities described in section 129 for out-of-school youth,
activities designed to assist in-school youth to stay in school
and gain work experience, and such other activities that the
Secretary determines are appropriate.
``(5) Applications.--To be eligible to receive a grant under
this subsection, an eligible entity shall submit an application
to the Secretary at such time, in such manner, and containing
such information as the Secretary may require.
``(6) Additional requirements.--The Secretary may require the
provision of a non-Federal share for projects funded under this
subsection and may require participation of grantees in
evaluations of such projects, including evaluations using the
techniques as described in section 172(c).''.
SEC. 118. TECHNICAL ASSISTANCE.
Section 170 (29 U.S.C. 2915) is amended--
(1) by striking subsection (b);
(2) by striking ``(a) General Technical Assistance.--'';
(3) by redesignating paragraphs (1), (2), and (3) as
subsections (a), (b), and (c) respectively, and moving such
subsections 2 ems to the left; and
(4) in subsection (a) (as redesignated by paragraph (3))--
(A) by inserting ``the training of staff providing
rapid response services, the training of other staff of
recipients of funds under this title, peer review
activities under this title,'' after ``localities,'';
and
(B) by striking ``from carrying out activities'' and
all that follows up to the period and inserting ``to
implement the amendments made by the Workforce
Reinvestment and Adult Education Act of 2003''.
SEC. 119. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH AND MULTISTATE
PROJECTS.
(a) Demonstration and Pilot Projects.--Section 171(b) (29 U.S.C.
2916(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``Under a'' and inserting
``Consistent with the priorities specified in the'';
(B) by amending subparagraphs (A) through (D) to read
as follows:
``(A) projects that assist national employers in
connecting with the workforce investment system
established under this title in order to facilitate the
recruitment and employment of needed workers and to
provide information to such system on skills and
occupations in demand;
``(B) projects that promote the development of
systems that will improve the effectiveness and
efficiency of programs carried out under this title;
``(C) projects that focus on opportunities for
employment in industries and sectors of industries that
are experiencing or are likely to experience high rates
of growth;
``(D) projects carried out by States and local areas
to test innovative approaches to delivering employment-
related services;'';
(C) by striking subparagraph (E);
(D) by redesignating subparagraphs (F) and (G) as
subparagraphs (E) and (F), respectively;
(E) by inserting after subparagraph (F) (as so
redesignated) the following:
``(G) projects that provide retention grants to
qualified job training programs upon placement or
retention of a low-income individual trained by that
program in employment with a single employer for a
period of 1 year, provided that such employment is
providing to the low-income individual an income not
less than twice the poverty line for that
individual.''; and
(F) by striking subparagraph (H); and
(2) in paragraph (2)--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as subparagraph
(B).
(b) Multiservice Projects.--Section 171(c)(2)(B) (29 U.S.C.
2916(c)(2)(B)) is amended to read as follows:
``(B) Net impact studies and reports.--The Secretary
shall conduct studies to determine the net impacts of
programs, services, and activities carried out under
this title. The Secretary shall prepare and disseminate
to the public reports containing the results of such
studies.''.
(c) Waiver Authority to Carry Out Demonstrations and Evaluations.--
Section 171 (29 U.S.C. 2916(d)) is further amended by striking
subsection (d).
SEC. 120. EVALUATIONS.
(a) In General.--Section 173 (29 U.S.C. 2916) is amended--
(1) by amending the designation and heading to read as
follows:
``SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.'';
and
(2) in subsection (a)--
(A) by striking ``national emergency grants'' in the
matter preceding paragraph (1) and inserting ``national
dislocated worker grants''; and
(B) in paragraph (1), by striking ``subsection (c)''
and inserting ``subsection (b)''.
(b) Administration.--Section 173 (29 U.S.C. 2918) is further
amended--
(1) by striking subsection (b) and redesignating subsections
(c) and (d) as subsections (b) and (c), respectively; and
(2) by striking subsection (e) and redesignating subsections
(f) and (g) as subsection (d) and (e), respectively.
(c) Eligible Entities.--Section 173(b)(1)(B) (29 U.S.C.2918(b)(1)(B))
(as redesignated by subsection (b) of this section) is amended by
striking ``, and other entities'' and all that follows and inserting a
period.
(d) Conforming Amendment.--The table of contents in section 1(b) is
amended by amending the item related to section 173 to read as follows:
``Sec. 173. National dislocated worker grants.''.
SEC. 121. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL ACTIVITIES.
(a) In General.--Section 174(a)(1) (29 U.S.C. 2919(a)(1)) is amended
by striking ``1999 through 2003'' and inserting ``2004 through 2009''.
(b) Reservations.--Section 174(b) is amended to read as follows:
``(b) Technical Assistance; Demonstration and Pilot Projects;
Evaluations; Incentive Grants.--There are authorized to be appropriated
to carry out sections 170 through 172 and section 136 such sums as may
be necessary for each of fiscal years 2004 through 2009.''.
SEC. 122. REQUIREMENTS AND RESTRICTIONS.
(a) In General.--Section 181(c)(2)(A) (29 U.S.C. 2931(c)(2)(A)) is
amended in the matter preceding clause (i) by striking ``shall'' and
inserting ``may''.
(b) Limitations.--Section 181(e) is amended by striking the first
sentence.
SEC. 123. NONDISCRIMINATION.
Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended--
(1) by striking ``employment.--No'' and inserting
``employment.--
``(A) In general.--Except as provided in subparagraph
(B), no''; and
(2) by adding at the end the following subparagraph:
``(B) Exemption for religious organizations.--
Subparagraph (A) shall not apply to recipients of
financial assistance under this title that is a
religious corporation, association, educational
institution, or society, with respect to the employment
of individuals of a particular religion to perform work
connected with the carrying on by such corporation,
association, educational institution, or society of its
activities Such recipients shall comply with the other
requirements contained in subparagraph (A).''.
SEC. 124. ADMINISTRATIVE PROVISIONS.
(a) Program Year.--Section 189(g)(1) (29 U.S.C. 2939(g)(1)) is
amended to read as follows:
``(1) In general.--Appropriations for any fiscal year for
programs and activities carried out under this title shall be
available for obligation only on the basis of a program year.
The program year shall begin on July 1 in the fiscal year for
which the appropriation is made.''.
(b) Availability.--Section 189(g)(2) (29 U.S.C. 2939(g)(2)) is
amended by striking ``each State'' and inserting ``each recipient''.
(c) General Waivers.--Section 189(i)(4) (29 U.S.C. 2939(i)(4)) is
amended--
(1) in subparagraph (A), in the matter preceding clause (i),
by inserting ``, or in accordance with subparagraph (D),''
after ``subparagraph (B)''; and
(2) by adding the following subparagraph:
``(D) Expedited process for extending approved
waivers to additional states.--In lieu of the
requirements of subparagraphs (B) and (C), the
Secretary may establish an expedited procedure for the
purpose of extending to additional States the waiver of
statutory or regulatory requirements that have been
approved for a State pursuant to a request under
subparagraph (B). Such procedure shall ensure that the
extension of such waivers to additional States are
accompanied by appropriate conditions relating the
implementation of such waivers.''.
SEC. 125. GENERAL PROGRAM REQUIREMENTS.
Section 195 (29 U.S.C. 2945) is amended by adding at the end the
following new paragraph:
``(14) Funds provided under this title shall not be used to
establish or operate stand-alone fee-for-service enterprises
that compete with private sector employment agencies within the
meaning of section 701(c) of the Civil Rights Act of 1964 (42
U.S.C. 2000e(c)). For purposes of this paragraph, such an
enterprise does not include one-stop centers.''.
TITLE II--ADULT EDUCATION
PART A--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION
SEC. 201. TABLE OF CONTENTS.
The table of contents in section 1(b) is amended by amending the
items relating to title II to read as follows:
``TITLE II--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION
``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.
``Chapter 1--Federal Provisions
``Sec. 211. Reservation of funds; grants to eligible agencies;
allotments.
``Sec. 212. Performance accountability system.
``Sec. 213. Incentive grants for states.
``Chapter 2--State Provisions
``Sec. 221. State administration.
``Sec. 222. State distribution of funds; matching requirement.
``Sec. 223. State leadership activities.
``Sec. 224. State plan.
``Sec. 225. Programs for corrections education and other
institutionalized individuals.
``Chapter 3--Local Provisions
``Sec. 231. Grants and contracts for eligible providers.
``Sec. 232. Local application.
``Sec. 233. Local administrative cost limits.
``Chapter 4--General Provisions
``Sec. 241. Administrative provisions.
``Sec. 242. National leadership activities.''.
SEC. 202. AMENDMENT.
Title II is amended to read as follows:
``TITLE II--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION
``SEC. 201. SHORT TITLE.
``This title may be cited as the `Adult Basic Skills and Family
Literacy Education Act'.
``SEC. 202. PURPOSE.
``It is the purpose of this title to provide instructional
opportunities for adults seeking to improve their basic reading,
writing, speaking, and math skills, and support States and local
communities in providing, on a voluntary basis, adult basic skills and
family literacy programs, in order to--
``(1) increase the basic reading, writing, speaking, and math
skills necessary for adults to obtain employment and self-
sufficiency and to successfully advance in the workforce;
``(2) assist adults in the completion of a secondary school
education (or its equivalent) and the transition to a
postsecondary educational institution;
``(3) increase the basic reading, writing, speaking, and math
skills of parents to enable them to support the educational
development of their children and make informed choices
regarding their children's education; and
``(4) assist immigrants who are not proficient in English in
improving their reading, writing, speaking, and math skills and
acquiring an understanding of the American free enterprise
system, individual freedom, and the responsibilities of
citizenship.
``SEC. 203. DEFINITIONS.
``In this title:
``(1) Adult basic skills and family literacy education
programs.--The term `adult basic skills and family literacy
education programs' means a sequence of academic instruction
and educational services below the postsecondary level that
increase an individual's ability to read, write, and speak in
English and perform mathematical computations leading to a
level of proficiency equivalent to secondary school completion
that is provided for individuals--
``(A) who are at least 16 years of age;
``(B) who are not enrolled or required to be enrolled
in secondary school under State law; and
``(C) who--
``(i) lack sufficient mastery of basic
reading, writing, speaking, and math skills to
enable the individuals to function effectively
in society;
``(ii) do not have a secondary school diploma
or the General Equivalency Diploma (GED)
(including recognized alternative standards for
individuals with disabilities), and have not
achieved an equivalent level of education; or
``(iii) are unable to read, write, or speak
the English language.
``(2) Eligible agency.--The term `eligible agency'--
``(A) means the sole entity or agency in a State or
an outlying area responsible for administering or
supervising policy for adult basic skills and family
literacy education programs in the State or outlying
area, respectively, consistent with the law of the
State or outlying area, respectively; and
``(B) may be the State educational agency, the State
agency responsible for administering workforce
investment activities, or the State agency responsible
for administering community or technical colleges.
``(3) Eligible provider.--The term `eligible provider'
means--
``(A) a local educational agency;
``(B) a community-based or faith-based organization
of demonstrated effectiveness;
``(C) a volunteer literacy organization of
demonstrated effectiveness;
``(D) an institution of higher education;
``(E) a public or private educational agency;
``(F) a library;
``(G) a public housing authority;
``(H) an institution that is not described in any of
subparagraphs (A) through (G) and has the ability to
provide adult basic skills and family literacy
education programs to adults and families; or
``(I) a consortium of the agencies, organizations,
institutions, libraries, or authorities described in
any of subparagraphs (A) through (H).
``(4) English language acquisition program.--The term
`English language acquisition program' means a program of
instruction designed to help individuals with limited English
proficiency achieve competence in reading, writing, and
speaking the English language.
``(5) Essential components of reading instruction.--The term
`essential components of reading instruction' has the meaning
given to that term in section 1208 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6368).
``(6) Family literacy education programs.--The term `family
literacy education programs' means educational programs that--
``(A) assist parents and students, on a voluntary
basis, in achieving the purposes of this title as
described in section 202; and
``(B) are of sufficient intensity in terms of hours
and of sufficient duration to make sustainable changes
in a family, are based upon scientific research-based
principles, and for the purpose of substantially
increasing the ability of parents and children to read,
write, and speak English integrate--
``(i) interactive literacy activities between
parents and their children;
``(ii) training for parents regarding how to
be the primary teacher for their children and
full partners in the education of their
children;
``(iii) parent literacy training that leads
to economic self-sufficiency; and
``(iv) an age-appropriate education to
prepare children for success in school and life
experiences.
``(7) Governor.--The term `Governor' means the chief
executive officer of a State or outlying area.
``(8) Individual with a disability.--
``(A) In general.--The term `individual with a
disability' means an individual with any disability (as
defined in section 3 of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12102)).
``(B) Individuals with disabilities.--The term
`individuals with disabilities' means more than one
individual with a disability.
``(9) Individual with limited english proficiency.--The term
`individual with limited English proficiency' means an adult or
out-of-school youth who has limited ability in reading,
writing, speaking, or understanding the English language, and--
``(A) whose native language is a language other than
English; or
``(B) who lives in a family or community environment
where a language other than English is the dominant
language.
``(10) Institution of higher education.--The term
`institution of higher education' has the meaning given to that
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
``(11) Literacy.--The term `literacy' means the ability to
read, write, and speak the English language with competence,
knowledge, and comprehension.
``(12) Local educational agency.--The term `local educational
agency' has the meaning given to that term in section 9101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
``(13) Outlying area.--The term `outlying area' has the
meaning given to that term in section 101 of this Act.
``(14) Postsecondary educational institution.--The term
`postsecondary educational institution' means--
``(A) an institution of higher education that
provides not less than a 2-year program of instruction
that is acceptable for credit toward a bachelor's
degree;
``(B) a tribally controlled community college; or
``(C) a nonprofit educational institution offering
certificate or apprenticeship programs at the
postsecondary level.
``(15) Reading.--The term `reading' has the meaning given to
that term in section 1208 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6368).
``(16) Scientifically based reading research.--The term
`scientifically based reading research' has the meaning given
to that term in section 1208 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6368).
``(17) Secretary.--The term `Secretary' means the Secretary
of Education.
``(18) State.--The term `State' means each of the several
States of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico.
``(19) State educational agency.--The term `State educational
agency' has the meaning given to that term in section 9101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
``(20) Workplace literacy program.--The term `workplace
literacy program' means an educational program that is offered
in collaboration between eligible providers and employers or
employee organizations for the purpose of improving the
productivity of the workforce through the improvement of
reading, writing, speaking, and math skills.
``SEC. 204. HOME SCHOOLS.
``Nothing in this title shall be construed to affect home schools,
whether or not a home school is treated as a home school or a private
school under State law, or to compel a parent engaged in home schooling
to participate in an English language acquisition program, a family
literacy education program, or an adult basic skills and family
literacy education program.
``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this title
$584,300,000 for fiscal year 2004 and such sums as may be necessary for
fiscal years 2005 through 2009.
``CHAPTER 1--FEDERAL PROVISIONS
``SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES;
ALLOTMENTS.
``(a) Reservation of Funds.--From the sums appropriated under section
205 for a fiscal year, the Secretary--
``(1) shall reserve 1.75 percent to carry out the National
Institute for Literacy Establishment Act;
``(2) shall reserve up to 1.72 percent for incentive grants
under section 213; and
``(3) shall reserve up to 1.55 percent to carry out section
242.
``(b) Grants to Eligible Agencies.--
``(1) In general.--From the sums appropriated under section
205 and not reserved under subsection (a) for a fiscal year,
the Secretary shall award a grant to each eligible agency
having a State plan approved under section 224 in an amount
equal to the sum of the initial allotment under subsection
(c)(1) and the additional allotment under subsection (c)(2) for
the eligible agency for the fiscal year, subject to subsections
(f) and (g).
``(2) Purpose of grants.--The Secretary may award a grant
under paragraph (1) only if the eligible agency involved agrees
to expend the grant in accordance with the provisions of this
title.
``(c) Allotments.--
``(1) Initial allotments.--From the sums appropriated under
section 205 and not reserved under subsection (a) for a fiscal
year, the Secretary shall allot to each eligible agency having
a State plan approved under section 224--
``(A) $100,000, in the case of an eligible agency
serving an outlying area; and
``(B) $250,000, in the case of any other eligible
agency.
``(2) Additional allotments.--From the sums appropriated
under section 205, not reserved under subsection (a), and not
allotted under paragraph (1), for a fiscal year, the Secretary
shall allot to each eligible agency that receives an initial
allotment under paragraph (1) an additional amount that bears
the same relationship to such sums as the number of qualifying
adults in the State or outlying area served by the eligible
agency bears to the number of such adults in all States and
outlying areas.
``(d) Qualifying Adult.--For the purpose of subsection (c)(2), the
term `qualifying adult' means an adult who--
``(1) is at least 16 years of age;
``(2) is beyond the age of compulsory school attendance under
the law of the State or outlying area;
``(3) does not have a secondary school diploma or the General
Equivalency Diploma (GED) (including recognized alternative
standards for individuals with disabilities); and
``(4) is not enrolled in secondary school.
``(e) Special Rule.--
``(1) In general.--From amounts made available under
subsection (c) for the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau, the
Secretary shall award grants to Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Republic of
the Marshall Islands, the Federated States of Micronesia, or
the Republic of Palau to carry out activities described in this
title in accordance with the provisions of this title as
determined by the Secretary.
``(2) Termination of eligibility.--Notwithstanding any other
provision of law, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau shall
be eligible to receive a grant under this title until an
agreement for the extension of United States education
assistance under the Compact of Free Association for each of
the Freely Associated States becomes effective.
``(3) Administrative costs.--The Secretary may provide not
more than 5 percent of the funds made available for grants
under this subsection to pay the administrative costs of the
Pacific Region Educational Laboratory regarding activities
assisted under this subsection.
``(f) Hold-Harmless Provisions.--
``(1) In general.--Notwithstanding subsection (c), and
subject to paragraphs (2) and (3), for fiscal year 2004 and
each succeeding fiscal year, no eligible agency shall receive
an allotment under this title that is less than 90 percent of
the allotment the eligible agency received for the preceding
fiscal year under this title.
``(2) Exception.--An eligible agency that receives for the
preceding fiscal year only an initial allotment under
subsection 211(c)(1) (and no additional allotment under
211(c)(2)) shall receive an allotment equal to 100 percent of
the initial allotment.
``(3) Ratable reduction.--If for any fiscal year the amount
available for allotment under this title is insufficient to
satisfy the provisions of paragraph (1), the Secretary shall
ratably reduce the payments to all eligible agencies, as
necessary.
``(g) Reallotment.--The portion of any eligible agency's allotment
under this title for a fiscal year that the Secretary determines will
not be required for the period such allotment is available for carrying
out activities under this title, shall be available for reallotment
from time to time, on such dates during such period as the Secretary
shall fix, to other eligible agencies in proportion to the original
allotments to such agencies under this title for such year.
``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
``(a) Purpose.--The purpose of this section is to establish a
comprehensive performance accountability system, composed of the
activities described in this section, to assess the effectiveness of
eligible agencies in achieving continuous improvement of adult basic
skills and family literacy education programs funded under this title,
in order to optimize the return on investment of Federal funds in adult
basic skills and family literacy education programs.
``(b) Eligible Agency Performance Measures.--
``(1) In general.--For each eligible agency, the eligible
agency performance measures shall consist of--
``(A)(i) the core indicators of performance described
in paragraph (2)(A); and
``(ii) employment performance indicators identified
by the eligible agency under paragraph (2)(B); and
``(B) an eligible agency adjusted level of
performance for each indicator described in
subparagraph (A).
``(2) Indicators of performance.--
``(A) Core indicators of performance.--The core
indicators of performance shall include the following:
``(i) Measurable improvements in basic skill
levels in reading, writing, and speaking the
English language and math, and English language
acquisition leading to proficiency in each
skill.
``(ii) Receipt of a secondary school diploma
or the General Equivalency Diploma (GED)
(including recognized alternative standards for
individuals with disabilities).
``(iii) Placement in postsecondary education
or other training programs.
``(B) Employment performance indicators.--Consistent
with applicable Federal and State privacy laws, an
eligible agency shall identify in the State plan the
following individual participant employment performance
indicators--
``(i) entry into employment;
``(ii) retention in employment; and
``(iii) increase in earnings.
``(3) Levels of performance.--
``(A) Eligible agency adjusted levels of performance
for core indicators.--
``(i) In general.--For each eligible agency
submitting a State plan, there shall be
established, in accordance with this
subparagraph, levels of performance for each of
the core indicators of performance described in
paragraph (2)(A) for adult basic skills and
family literacy education programs authorized
under this title. The levels of performance
established under this subparagraph shall, at a
minimum--
``(I) be expressed in an objective,
quantifiable, and measurable form; and
``(II) show the progress of the
eligible agency toward continuously and
significantly improving the agency's
performance outcomes in an objective,
quantifiable, and measurable form.
``(ii) Identification in state plan.--Each
eligible agency shall identify, in the State
plan submitted under section 224, expected
levels of performance for each of the core
indicators of performance for the first 3
program years covered by the State plan.
``(iii) Agreement on eligible agency adjusted
levels of performance for first 3 years.--In
order to ensure an optimal return on the
investment of Federal funds in adult basic
skills and family literacy education programs
authorized under this title, the Secretary and
each eligible agency shall reach agreement on
levels of student proficiency for each of the
core indicators of performance, for the first 3
program years covered by the State plan, taking
into account the levels identified in the State
plan under clause (ii) and the factors
described in clause (iv). The levels agreed to
under this clause shall be considered to be the
eligible agency adjusted levels of performance
for the eligible agency for such years and
shall be incorporated into the State plan prior
to the approval of such plan.
``(iv) Factors.--The agreement described in
clause (iii) or (v) shall take into account--
``(I) how the levels involved compare
with the eligible agency's adjusted
levels of performance, taking into
account factors including the
characteristics of participants when
the participants entered the program;
and
``(II) the extent to which such
levels promote continuous and
significant improvement in performance
on the student proficiency measures
used by such eligible agency and ensure
optimal return on the investment of
Federal funds.
``(v) Agreement on eligible agency adjusted
levels of performance for second 3 years.--
Prior to the fourth program year covered by the
State plan, the Secretary and each eligible
agency shall reach agreement on levels of
student proficiency for each of the core
indicators of performance for the fourth,
fifth, and sixth program years covered by the
State plan, taking into account the factors
described in clause (iv). The levels agreed to
under this clause shall be considered to be the
eligible agency adjusted levels of performance
for the eligible agency for such years and
shall be incorporated into the State plan.
``(vi) Revisions.--If unanticipated
circumstances arise in a State resulting in a
significant change in the factors described in
clause (iv)(I), the eligible agency may request
that the eligible agency adjusted levels of
performance agreed to under clause (iii) or (v)
be revised.
``(B) Levels of employment performance.--The eligible
agency shall identify, in the State plan, eligible
agency levels of performance for each of the employment
performance indicators described in paragraph (2)(B).
Such levels shall be considered to be eligible agency
adjusted levels of performance for purposes of this
title.
``(c) Report.--
``(1) In general.--Each eligible agency that receives a grant
under section 211(b) shall annually prepare and submit to the
Secretary, the Governor, the State legislature, eligible
providers, and the general public within the State, a report on
the progress of the eligible agency in achieving eligible
agency performance measures, including the following:
``(A) Information on the levels of performance
achieved by the eligible agency with respect to the
core indicators of performance and employment
performance indicators.
``(B) The number and type of each eligible provider
that receives funding under such grant.
``(2) Information dissemination.--The Secretary--
``(A) shall make the information contained in such
reports available to the general public through
publication and other appropriate methods;
``(B) shall disseminate State-by-State comparisons of
the information; and
``(C) shall provide the appropriate committees of the
Congress with copies of such reports.
``SEC. 213. INCENTIVE GRANTS FOR STATES.
``(a) In General.--From funds appropriated under section 211(a)(2),
the Secretary may award grants to States for exemplary performance in
carrying out programs under this title. Such awards shall be based on
States meeting or exceeding the core indicators of performance
established under section 212(b)(2)(A) and may be based on the
performance of the State in serving populations, such as those
described in section 224(b)(10), including the levels of service
provided and the performance outcomes, and such other factors relating
to the performance of the State under this title as the Secretary
determines appropriate.
``(b) Use of Funds.--The funds awarded to a State under this
paragraph may be used to carry out any activities authorized under this
title, including demonstrations and innovative programs for hard-to-
serve populations.
``CHAPTER 2--STATE PROVISIONS
``SEC. 221. STATE ADMINISTRATION.
``Each eligible agency shall be responsible for the following
activities under this title:
``(1) The development, submission, implementation, and
monitoring of the State plan.
``(2) Consultation with other appropriate agencies, groups,
and individuals that are involved in, or interested in, the
development and implementation of activities assisted under
this title.
``(3) Coordination and avoidance of duplication with other
Federal and State education, training, corrections, public
housing, and social service programs.
``SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.
``(a) State Distribution of Funds.--Each eligible agency receiving a
grant under this title for a fiscal year--
``(1) shall use an amount not less than 82.5 percent of the
grant funds to award grants and contracts under section 231 and
to carry out section 225, of which not more than 10 percent of
such amount shall be available to carry out section 225;
``(2) shall use not more than 12.5 percent of the grant funds
to carry out State leadership activities under section 223; and
``(3) shall use not more than 5 percent of the grant funds,
or $75,000, whichever is greater, for the administrative
expenses of the eligible agency.
``(b) Matching Requirement.--
``(1) In general.--In order to receive a grant from the
Secretary under section 211(b), each eligible agency shall
provide, for the costs to be incurred by the eligible agency in
carrying out the adult basic skills and family literacy
education programs for which the grant is awarded, a non-
Federal contribution in an amount at least equal to--
``(A) in the case of an eligible agency serving an
outlying area, 12 percent of the total amount of funds
expended for adult basic skills and family literacy
education programs in the outlying area, except that
the Secretary may decrease the amount of funds required
under this subparagraph for an eligible agency; and
``(B) in the case of an eligible agency serving a
State, 25 percent of the total amount of funds expended
for adult basic skills and family literacy education
programs in the State.
``(2) Non-federal contribution.--An eligible agency's non-
Federal contribution required under paragraph (1) may be
provided in cash or in kind, fairly evaluated, and shall
include only non-Federal funds that are used for adult basic
skills and family literacy education programs in a manner that
is consistent with the purpose of this title.
``SEC. 223. STATE LEADERSHIP ACTIVITIES.
``(a) In General.--Each eligible agency may use funds made available
under section 222(a)(2) for any of the following adult basic skills and
family literacy education programs:
``(1) The establishment or operation of professional
development programs to improve the quality of instruction
provided pursuant to local activities required under section
231(b), including instruction incorporating the essential
components of reading instruction and instruction provided by
volunteers or by personnel of a State or outlying area.
``(2) The provision of technical assistance to eligible
providers of adult basic skills and family literacy education
programs for development and dissemination of scientific
research-based instructional practices in reading, writing,
speaking, math, and English language acquisition programs.
``(3) The provision of assistance to eligible providers in
developing, implementing, and reporting measurable progress in
achieving the objectives of this title.
``(4) The provision of technology assistance, including staff
training, to eligible providers of adult basic skills and
family literacy education programs, including distance learning
activities, to enable the eligible providers to improve the
quality of such activities.
``(5) The development and implementation of technology
applications or distance learning, including professional
development to support the use of instructional technology.
``(6) Coordination with other public programs, including
welfare-to-work, workforce development, and job training
programs.
``(7) Coordination with existing support services, such as
transportation, child care, and other assistance designed to
increase rates of enrollment in, and successful completion of,
adult basic skills and family literacy education programs, for
adults enrolled in such activities.
``(8) The development and implementation of a system to
assist in the transition from adult basic education to
postsecondary education.
``(9) Activities to promote workplace literacy programs.
``(10) Activities to promote and complement local outreach
initiatives described in section 242(7).
``(11) Other activities of statewide significance, including
assisting eligible agencies in achieving progress in improving
the skill levels of adults who participate in programs under
this title.
``(b) Coordination.--In carrying out this section, eligible agencies
shall coordinate where possible, and avoid duplicating efforts, in
order to maximize the impact of the activities described in subsection
(a).
``(c) State-Imposed Requirements.--Whenever a State or outlying area
implements any rule or policy relating to the administration or
operation of a program authorized under this title that has the effect
of imposing a requirement that is not imposed under Federal law
(including any rule or policy based on a State or outlying area
interpretation of a Federal statute, regulation, or guideline), the
State or outlying area shall identify, to eligible providers, the rule
or policy as being imposed by the State or outlying area.
``SEC. 224. STATE PLAN.
``(a) 6-Year Plans.--
``(1) In general.--Each eligible agency desiring a grant
under this title for any fiscal year shall submit to, or have
on file with, the Secretary a 6-year State plan.
``(2) Comprehensive plan or application.--The eligible agency
may submit the State plan as part of a comprehensive plan or
application for Federal education assistance.
``(b) Plan Contents.--The eligible agency shall include in the State
plan or any revisions to the State plan--
``(1) an objective assessment of the needs of individuals in
the State or outlying area for adult basic skills and family
literacy education programs, including individuals most in need
or hardest to serve;
``(2) a description of the adult basic skills and family
literacy education programs that will be carried out with funds
received under this title;
``(3) a description of how the eligible agency will evaluate
and measure annually the effectiveness and improvement of the
adult basic skills and family literacy education programs based
on the performance measures described in section 212
including--
``(A) how the eligible agency will evaluate and
measure annually such effectiveness on a grant-by-grant
basis; and
``(B) how the eligible agency--
``(i) will hold eligible providers
accountable regarding the progress of such
providers in improving the academic achievement
of participants in adult education programs
under this title and regarding the core
indicators of performance described in section
212(b)(2)(A); and
``(ii) will use technical assistance,
sanctions, and rewards (including allocation of
grant funds based on performance and
termination of grant funds based on
nonperformance);
``(4) a description of the performance measures described in
section 212 and how such performance measures have
significantly improved adult basic skills and family literacy
education programs in the State or outlying area;
``(5) an assurance that the eligible agency will, in addition
to meeting all of the other requirements of this title, award
not less than one grant under this title to an eligible
provider that--
``(A) offers flexible schedules and necessary support
services (such as child care and transportation) to
enable individuals, including individuals with
disabilities, or individuals with other special needs,
to participate in adult basic skills and family
literacy education programs; and
``(B) attempts to coordinate with support services
that are not provided under this title prior to using
funds for adult basic skills and family literacy
education programs provided under this title for
support services;
``(6) an assurance that the funds received under this title
will not be expended for any purpose other than for activities
under this title;
``(7) a description of how the eligible agency will fund
local activities in accordance with the measurable goals
described in section 231(d);
``(8) an assurance that the eligible agency will expend the
funds under this title only in a manner consistent with fiscal
requirements in section 241;
``(9) a description of the process that will be used for
public participation and comment with respect to the State
plan, which process--
``(A) shall include consultation with the State
workforce investment board, the State board responsible
for administering community or technical colleges, the
Governor, the State educational agency, the State board
or agency responsible for administering block grants
for temporary assistance to needy families under title
IV of the Social Security Act, the State council on
disabilities, the State vocational rehabilitation
agency, other State agencies that promote the
improvement of adult basic skills and family literacy
education programs, and direct providers of such
programs; and
``(B) may include consultation with the State agency
on higher education, institutions responsible for
professional development of adult basic skills and
family literacy education programs instructors,
representatives of business and industry, refugee
assistance programs, and faith-based organizations;
``(10) a description of the eligible agency's strategies for
serving populations that include, at a minimum--
``(A) low-income individuals;
``(B) individuals with disabilities;
``(C) the unemployed;
``(D) the underemployed; and
``(E) individuals with multiple barriers to
educational enhancement, including individuals with
limited English proficiency;
``(11) a description of how the adult basic skills and family
literacy education programs that will be carried out with any
funds received under this title will be integrated with other
adult education, career development, and employment and
training activities in the State or outlying area served by the
eligible agency;
``(12) a description of the steps the eligible agency will
take to ensure direct and equitable access, as required in
section 231(c)(1), including--
``(A) how the State will build the capacity of
community-based and faith-based organizations to
provide adult basic skills and family literacy
education programs; and
``(B) how the State will increase the participation
of business and industry in adult basic skills and
family literacy education programs; and
``(13) a description of how the eligible agency will consult
with any State agency responsible for postsecondary education
to develop adult education that prepares students to enter
postsecondary education without the need for remediation upon
completion of secondary school equivalency programs.
``(c) Plan Revisions.--When changes in conditions or other factors
require substantial revisions to an approved State plan, the eligible
agency shall submit the revisions of the State plan to the Secretary.
``(d) Consultation.--The eligible agency shall--
``(1) submit the State plan, and any revisions to the State
plan, to the Governor, the chief State school officer, or the
State officer responsible for administering community or
technical colleges, or outlying area for review and comment;
and
``(2) ensure that any comments regarding the State plan by
the Governor, the chief State school officer, or the State
officer responsible for administering community or technical
colleges, and any revision to the State plan, are submitted to
the Secretary.
``(e) Plan Approval.--A State plan submitted to the Secretary shall
be approved by the Secretary only if the plan is consistent with the
specific provisions of this title.
``SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
``(a) Program Authorized.--From funds made available under section
222(a)(1) for a fiscal year, each eligible agency shall carry out
corrections education and education for other institutionalized
individuals.
``(b) Uses of Funds.--The funds described in subsection (a) shall be
used for the cost of educational programs for criminal offenders in
correctional institutions and for other institutionalized individuals,
including academic programs for--
``(1) basic skills education;
``(2) special education programs as determined by the
eligible agency;
``(3) reading, writing, speaking, and math programs; and
``(4) secondary school credit or diploma programs or their
recognized equivalent.
``(c) Priority.--Each eligible agency that is using assistance
provided under this section to carry out a program for criminal
offenders within a correctional institution shall give priority to
serving individuals who are likely to leave the correctional
institution within 5 years of participation in the program.
``(d) Definition of Criminal Offender.--For purposes of this section:
``(1) Correctional institution.--The term `correctional
institution' means any--
``(A) prison;
``(B) jail;
``(C) reformatory;
``(D) work farm;
``(E) detention center; or
``(F) halfway house, community-based rehabilitation
center, or any other similar institution designed for
the confinement or rehabilitation of criminal
offenders.
``(2) Criminal offender.--The term `criminal offender' means
any individual who is charged with, or convicted of, any
criminal offense.
``CHAPTER 3--LOCAL PROVISIONS
``SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
``(a) Grants and Contracts.--From grant funds made available under
section 211(b), each eligible agency shall award multiyear grants or
contracts, on a competitive basis, to eligible providers within the
State or outlying area that meet the conditions and requirements of
this title to enable the eligible providers to develop, implement, and
improve adult basic skills and family literacy education programs
within the State.
``(b) Local Activities.--The eligible agency shall require eligible
providers receiving a grant or contract under subsection (a) to
establish or operate one or more programs of instruction that provide
services or instruction in one or more of the following categories:
``(1) Adult basic skills and family literacy education
programs, including essential workplace skills (including
proficiency in reading, writing, speaking, and math).
``(2) Workplace literacy programs.
``(3) English language acquisition programs.
``(4) family literacy education programs.
``(c) Direct and Equitable Access; Same Process.--Each eligible
agency receiving funds under this title shall ensure that--
``(1) all eligible providers have direct and equitable access
to apply for grants or contracts under this section; and
``(2) the same grant or contract announcement process and
application process is used for all eligible providers in the
State or outlying area.
``(d) Measurable Goals.--The eligible agency shall require eligible
providers receiving a grant or contract under subsection (a) to
demonstrate--
``(1) the eligible provider's measurable goals for
participant outcomes to be achieved annually on the core
indicators of performance and employment performance indicators
described in section 212(b)(2);
``(2) the past effectiveness of the eligible provider in
improving the basic academic skills of adults and, for eligible
providers receiving grants in the prior year, the success of
the eligible provider receiving funding under this title in
meeting or exceeding its performance goals in the prior year;
``(3) the commitment of the eligible provider to serve
individuals in the community who are the most in need of basic
academic skills instruction services, including individuals who
are low-income or have minimal reading, writing, speaking, and
math skills, or limited English proficiency.
``(4) whether or not the program--
``(A) is of sufficient intensity and duration for
participants to achieve substantial learning gains; and
``(B) uses instructional practices that include the
essential components of reading instruction;
``(5) whether educational practices are based on
scientifically based research;
``(6) whether the activities of the eligible provider
effectively employ advances in technology, as appropriate,
including the use of computers;
``(7) whether the activities provide instruction in real-life
contexts, to ensure that an individual has the skills needed to
compete in the workplace and exercise the rights and
responsibilities of citizenship;
``(8) whether the activities are staffed by well-trained
instructors, counselors, and administrators;
``(9) whether the activities are coordinated with other
available resources in the community, such as through strong
links with elementary schools and secondary schools,
postsecondary educational institutions, one-stop centers, job
training programs, community-based and faith-based
organizations, and social service agencies;
``(10) whether the activities offer flexible schedules and
support services (such as child care and transportation) that
are necessary to enable individuals, including individuals with
disabilities or other special needs, to attend and complete
programs;
``(11) whether the activities include a high-quality
information management system that has the capacity to report
measurable participant outcomes and to monitor program
performance against the performance measures established by the
eligible agency;
``(12) whether the local communities have a demonstrated need
for additional English language acquisition programs;
``(13) the capacity of the eligible provider to produce valid
information on performance results, including enrollments and
measurable participant outcomes;
``(14) whether adult basic skills and family literacy
education programs offer rigorous reading, writing, speaking,
and math content that are based on scientific research; and
``(15) whether applications of technology, and services to be
provided by the eligible providers, is of sufficient intensity
and duration to increase the amount and quality of learning and
lead to measurable learning gains within specified time
periods.
``SEC. 232. LOCAL APPLICATION.
``Each eligible provider desiring a grant or contract under this
title shall submit an application to the eligible agency containing
such information and assurances as the eligible agency may require,
including--
``(1) a description of how funds awarded under this title
will be spent consistent with the requirements of this title;
``(2) a description of any cooperative arrangements the
eligible provider has with other agencies, institutions, or
organizations for the delivery of adult basic skills and family
literacy education programs; and
``(3) each of the demonstrations required by section 231(d).
``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
``(a) In General.--Subject to subsection (b), of the amount that is
made available under this title to an eligible provider--
``(1) at least 95 percent shall be expended for carrying out
adult basic skills and family literacy education programs; and
``(2) the remaining amount shall be used for planning,
administration, personnel and professional development,
development of measurable goals in reading, writing, speaking,
and math, and interagency coordination.
``(b) Special Rule.--In cases where the cost limits described in
subsection (a) are too restrictive to allow for adequate planning,
administration, personnel development, and interagency coordination,
the eligible provider may negotiate with the eligible agency in order
to determine an adequate level of funds to be used for noninstructional
purposes.
``CHAPTER 4--GENERAL PROVISIONS
``SEC. 241. ADMINISTRATIVE PROVISIONS.
``(a) Supplement Not Supplant.--Funds made available for adult basic
skills and family literacy education programs under this title shall
supplement and not supplant other State or local public funds expended
for adult basic skills and family literacy education programs.
``(b) Maintenance of Effort.--
``(1) In general.--
``(A) Determination.--An eligible agency may receive
funds under this title for any fiscal year if the
Secretary finds that the fiscal effort per student or
the aggregate expenditures of such eligible agency for
activities under this title, in the second preceding
fiscal year, were not less than 90 percent of the
fiscal effort per student or the aggregate expenditures
of such eligible agency for adult basic skills and
family literacy education programs, in the third
preceding fiscal year.
``(B) Proportionate reduction.--Subject to paragraphs
(2), (3), and (4), for any fiscal year with respect to
which the Secretary determines under subparagraph (A)
that the fiscal effort or the aggregate expenditures of
an eligible agency for the preceding program year were
less than such effort or expenditures for the second
preceding program year, the Secretary--
``(i) shall determine the percentage
decreases in such effort or in such
expenditures; and
``(ii) shall decrease the payment made under
this title for such program year to the agency
for adult basic skills and family literacy
education programs by the lesser of such
percentages.
``(2) Computation.--In computing the fiscal effort and
aggregate expenditures under paragraph (1), the Secretary shall
exclude capital expenditures and special one-time project
costs.
``(3) Decrease in federal support.--If the amount made
available for adult basic skills and family literacy education
programs under this title for a fiscal year is less than the
amount made available for adult basic skills and family
literacy education programs under this title for the preceding
fiscal year, then the fiscal effort per student and the
aggregate expenditures of an eligible agency required in order
to avoid a reduction under paragraph (1)(B) shall be decreased
by the same percentage as the percentage decrease in the amount
so made available.
``(4) Waiver.--The Secretary may waive the requirements of
this subsection for not more than 1 fiscal year, if the
Secretary determines that a waiver would be equitable due to
exceptional or uncontrollable circumstances, such as a natural
disaster or an unforeseen and precipitous decline in the
financial resources of the State or outlying area of the
eligible agency. If the Secretary grants a waiver under the
preceding sentence for a fiscal year, the level of effort
required under paragraph (1) shall not be reduced in the
subsequent fiscal year because of the waiver.
``SEC. 242. NATIONAL LEADERSHIP ACTIVITIES.
``The Secretary shall establish and carry out a program of national
leadership activities that may include the following:
``(1) Technical assistance, on request, including
assistance--
``(A) on requests to volunteer community- and faith-
based organizations, including but not limited to,
improving their fiscal management, research-based
instruction, and reporting requirements, and the
development of measurable objectives to carry out the
requirements of this title;
``(B) in developing valid, measurable, and reliable
performance data, and using performance information for
the improvement of adult basic skills and family
literacy education programs;
``(C) on adult education professional development;
and
``(D) in using distance learning and improving the
application of technology in the classroom.
``(2) Providing for the conduct of research on national
literacy basic skill acquisition levels among adults, including
the number of adults functioning at different levels of reading
proficiency.
``(3) Improving the coordination, efficiency, and
effectiveness of adult education and workforce development
services at the national, State, and local levels.
``(4) Determining how participation in adult basic skills and
family literacy education programs prepares individuals for
entry into and success in postsecondary education and
employment, and in the case of prison-based services, the
effect on recidivism.
``(5) Evaluating how different types of providers, including
community and faith-based organizations or private for-profit
agencies measurably improve the skills of participants in adult
basic skills and family literacy education programs.
``(6) Identifying model integrated basic and workplace skills
education programs, coordinated literacy and employment
services, and effective strategies for serving adults with
disabilities.
``(7) Supporting the development of an entity that would
produce and distribute technology-based programs and materials
for adult basic skills and family literacy education programs
using an intercommunication system, as that term is defined in
section 397 of the Communications Act of 1934 (47 U.S.C. 397),
and expand the effective outreach and use of such programs and
materials to adult education eligible providers.
``(8) Initiating other activities designed to improve the
measurable quality and effectiveness of adult basic skills and
family literacy education programs nationwide.''.
PART B--NATIONAL INSTITUTE FOR LITERACY
SEC. 211. SHORT TITLE; PURPOSE.
(a) Short Title.--This part may be cited as the ``National Institute
for Literacy Establishment Act''.
(b) Purpose.--The purpose of this part is to establish a National
Institute for Literacy to provide national leadership in promoting
reading research, reading instruction, and professional development in
reading based on scientifically based research by--
(1) disseminating widely information on scientifically based
reading research to improve academic achievement for children,
youth, and adults;
(2) identifying and disseminating information about schools,
local educational agencies, and State educational agencies that
have effectively developed and implemented classroom reading
programs that meet the requirements of subpart 1 of part B of
title I of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6361 et seq.), including those State educational
agencies, local educational agencies, and schools that are
identified as effective through the External Evaluation of
Reading First under section 1205 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6365);
(3) serving as a national resource for information on reading
instruction programs that contain the essential components of
reading instruction as supported by scientifically based
reading research, and that can lead to improved reading
outcomes for children, youth, and adults;
(4) developing print and electronic materials that describe
and model the application of scientifically based reading
research;
(5) providing national and regional reading leadership for
State and local personnel for the application and
implementation of scientifically based reading research;
(6) coordinating efforts among Federal agencies, especially
the Department of Labor, the Department of Health and Human
Services, and the National Institute of Child Health and Human
Development, that provide reading programs, conduct research,
and provide services to recipients of Federal financial
assistance under titles I and III of the Elementary and
Secondary Education Act of 1965, the Head Start Act, the
Individuals with Disabilities Education Act, and the Adult
Basic Skills and Family Literacy Education Act, and each Bureau
funded school (as defined in title XI of the Education
Amendments of 1978 (25 U.S.C. 2001 et seq.)); and
(7) informing the Congress, Federal departments and agencies,
schools of education, and the public of successful local,
State, and Federal program activities in reading instruction
that are determined to be effective based on the findings of
scientifically based reading research.
SEC. 212. ESTABLISHMENT.
(a) In General.--There is established within the executive branch an
independent establishment (as defined in title 104 of title 5, United
States Code) to be known as the ``National Institute for Literacy''.
The Institute shall be administered, in accordance with this part,
under the supervision and direction of a Director in consultation with
the Board, and subject to all fiscal and ethical requirements of an
executive branch agency.
(b) Director.--
(1) Appointment.--The Board (established under section 216 of
this part), in consultation with the Secretary of Education,
shall appoint a Director of the Institute, who has an
understanding of, supports, and is familiar with scientifically
based reading research, instruction, and professional
development applicable to children, youth, and adults.
(2) Pay.--The Director of the Institute shall receive the
rate of basic pay for level IV of the Executive Schedule.
(3) Term.--The Director of the Institute shall be appointed
for an initial term of 3 years and, if approved by the Board,
may serve not more than 1 additional term of 3 years.
SEC. 213. ADMINISTRATION.
(a) In General.--The Institute shall be administered by the Director
of the Institute in consultation with the Board.
(b) Authority.--Subject to the general policies, decisions, findings,
and determinations of the Board, the Director of the Institute shall be
responsible for administering the Institute. The Director may delegate
the powers granted under this paragraph to an officer, employee, or
office of the Institute. The Director shall--
(1) provide leadership for the Institute, consistent with the
purposes defined in section 211;
(2) appoint and supervise all employees in the Institute,
including attorneys, to provide legal aid and service to the
Board and the Institute, and to represent the Board and the
Institute in any case in court;
(3) appoint the heads of offices in the Institute with the
approval of the Board;
(4) assign responsibility to carry out the duties of the
Institute among officers and employees, and offices of the
Institute;
(5) prepare requests for appropriations for the Institute and
submit those requests to the President and the Congress with
the prior approval of the Board;
(6) oversee the expenditure of all funds allocated for the
Institute to carry out the purposes under section 211; and
(7) confer regularly with the Board on matters of policy,
personnel, and progress in carrying out the mission of the
Institute.
(c) Agency Designation.--For purposes of section 552b of title 5,
United States Code, the Institute is deemed to be an agency.
(d) Budget Requests.--In each annual request for appropriations by
the President, the Director of the Institute, in consultation with the
Board, shall submit a budget to carry out the mission of the Institute
including--
(1) the amount requested by the Institute in its budgetary
presentation to the Office of Management and Budget; and
(2) an assessment of the budgetary needs of the Institute.
(e) Budget Transmittal to Congress.--The Institute shall transmit to
the Congress copies of budget estimates, requests, and information
(including personnel needs), legislative recommendations, prepared
testimony for congressional hearings, and comments on legislation.
(f) Offices.--The Institute shall have offices separate from the
offices of the Department of Education.
(g) Administrative Support.--
(1) In general.--The Secretary of Education shall provide
administrative support for the Institute, including the
administration of grants, contracts and cooperative agreements,
personnel, legal counsel, and payroll after the Office of
Management and Budget has approved the Institute's budget.
(2) Other departments and agencies.--In addition to any
support obtained under paragraph (1) from the Secretary of
Education, the Institute may obtain administrative support
services from other departments and agencies within the
executive branch if determined by the Director of the
Institute, in consultation with the Board, to be in the best
interest of the Institute.
SEC. 214. DUTIES.
(a) In General.--In order to provide leadership for the improvement
and expansion of the system for delivery of scientifically based
reading instructional practices, the Institute shall--
(1) establish a national electronic database of effective
reading programs for children, youth, and adults that include
the essential components of reading instruction, and
disseminate such information to parents, teachers, State and
Federal elected officials, and the public;
(2) develop print and electronic materials for professional
development that provide applications of scientifically based
reading research, and instructional practices in reading for
children, youth, and adults;
(3) provide, when requested, policy and technical assistance
to the Congress, school Boards, Federal agencies, State
departments of education, adult education programs, local
school districts, local public and private schools, and schools
of education, on scientifically based reading instructional
practices including diagnostic and assessment instruments and
instructional materials;
(4) collaborate and support Federal research programs in
reading instruction, including, where appropriate, those areas
of study addressed by the National Institute of Child Health
and Human Development, the Institute for Education Sciences,
the National Science Foundation, the Department of Labor, and
the National Research Council;
(5) coordinate with the Department of Education, the
Department of Labor, the Department of Health and Human
Services, and the National Institute of Child Health and Human
Development on all programs that include improving reading
instructional practices for children, youth, and adults, and
teacher training in reading instructional practices;
(6) use and support the collection of the best possible
information in carrying out this section, and where
appropriate, including reviews of research on instruction using
the criteria for quality identified by the Institute for
Education Sciences; and
(7) conduct reviews of research, including randomized field
trials, on reading programs, and conduct reviews of Federal
reading policies and reading program implementation using a
board of visitors as described in subchapter 300 of the
National Science Foundation Administrative Manual.
(b) Grants, Contracts, and Cooperative Agreements.--The Institute may
award grants to, or enter into contracts or cooperative agreements
with, individuals, public or private institutions, agencies,
organizations, or other legal entities to carry out the activities of
the Institute.
(c) Relation to Other Laws.--The duties and powers of the Institute
under this part are in addition to the duties and powers of the
Institute under subparts 1, 2, and 3 of part B of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 1201 et seq.) (commonly
referred to as Reading First, Early Reading First, and the William F.
Goodling Even Start Family Literacy Programs, respectively).
SEC. 215. LEADERSHIP IN SCIENTIFICALLY BASED READING INSTRUCTION.
(a) In General.--The Institute, in consultation with the Board, may
award fellowships, with such stipends and allowances as the Director of
the Institute considers necessary, to outstanding individuals who are
pursuing careers in scientifically based research in reading
instruction or pre-service or in-service training in reading
instruction, including teaching children and adults to read.
(b) Fellowships.--Fellowships awarded under this subsection shall be
used, under the auspices of the Institute, to engage in research,
education training, technical assistance, or other activities to
advance the field of scientifically based reading instruction for
children, youth, and adults, including the training of volunteers in
such reading skills instruction.
(c) Interns and Volunteers.--The Institute, in consultation with the
Board, may award paid and unpaid internships to individuals seeking to
assist the Institute in carrying out its mission. Notwithstanding
section 1342 of title 31, United States Code, the Institute may accept
and use voluntary and uncompensated services as the Institute deems
necessary.
SEC. 216. NATIONAL INSTITUTE FOR LITERACY ADVISORY BOARD.
(a) Establishment.--
(1) In general.--There shall be a National Institute for
Literacy Advisory Board, which shall consist of 10 individuals
appointed by the President with the advice and consent of the
Senate.
(2) Composition.--The Board shall be comprised of individuals
who are not otherwise officers or employees of the Federal
Government and who are knowledgeable about scientifically based
reading instruction, and the findings of scientifically based
reading research. The members of the Board may include--
(A) representatives from teacher training
institutions where scientifically based reading
instruction is a major component of pre-service
training;
(B) teachers who have been successful in teaching
children to read proficiently;
(C) members of the business community who have
developed successful employee reading instruction
programs;
(D) volunteer tutors in reading who are using
scientifically based reading instruction;
(E) reading researchers who have conducted
scientifically based research; and
(F) other qualified individuals knowledgeable about
scientifically based reading instruction, including
adult education.
(b) Duties.--The Board shall--
(1) work closely with the Director of the Institute to ensure
that the purposes of the Institute under section 211 are
carried out effectively;
(2) approve the annual report to the Congress;
(3) provide policy guidance and advice to the Director of the
Institute in the administration of the Institute; and
(4) appoint the Director of the Institute, in consultation
with the Secretary.
(c) Federal Advisory Committee Act.--Except as otherwise provided in
this part, the Board established by this section shall be subject to
the provisions of the Federal Advisory Committee Act (5 U.S.C. App.).
(d) Appointments.--
(1) In general.--Each member of the Board shall be appointed
for a term of 3 years, except that the initial terms for
members may be 1, 2, or 3 years in order to establish a
rotation, in which \1/3\ of the members are selected each year.
Any such member may be appointed for not more than 2
consecutive terms.
(2) Vacancies.--Any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only for
the remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office.
(e) Quorum.--A majority of the members of the Board shall constitute
a quorum, but a lesser number may hold hearings. Any recommendation of
the Board may be passed only by a majority of the Board members
present.
(f) Election of Officers.--The Chairperson and Vice Chairperson of
the Board shall be elected by the members of the Board. The term of
office of the Chairperson and Vice Chairperson shall be 2 years.
(g) Meetings.--The Board shall meet at the call of the Chairperson,
or a majority of the members of the Board, but not less than quarterly.
SEC. 217. GIFTS, BEQUESTS, AND DEVISES.
(a) In General.--The Institute may accept, administer, and use gifts
or donations of services, money, or property, whether real or personal,
tangible or intangible.
(b) Rules.--The Board, in consultation with the Director of the
Institute, shall establish written rules setting forth the criteria to
be used by the Institute in determining whether the acceptance of
contributions of services, money, or property whether real or personal,
tangible or intangible, would reflect unfavorably upon the ability of
the Institute or any employee to carry out the responsibilities of the
Institute or employee, or official duties, in a fair and objective
manner, or would compromise the integrity or the appearance of the
integrity of the Institute's programs or any official involved in those
programs.
SEC. 218. MAILS.
The Board and the Institute may use the United States mails in the
same manner and under the same conditions as other departments and
agencies of the United States.
SEC. 219. APPLICABILITY OF CERTAIN CIVIL SERVICE LAWS.
The Director of the Institute and the staff of the Institute may be
appointed without regard to the provisions of title 5, United States
Code, governing appointments in the competitive service, and may be
paid without regard to the provisions of chapter 51 and subchapter III
of chapter 53 of that title relating to classification and General
Schedule pay rates, except that an individual so appointed may not
receive pay in excess of the annual rate of basic pay payable for level
IV of the Executive Schedule.
SEC. 220. EXPERTS AND CONSULTANTS.
The Institute may procure temporary and intermittent services under
section 3109(b) of title 5, United States Code.
SEC. 221. REPORT.
(a) In General.--The Institute shall submit a biennial report to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Labor and Human Resources of the
Senate. Each report submitted under this section shall include--
(1) a comprehensive and detailed description of the
Institute's operations, activities, financial condition, and
accomplishments in carrying out the purposes of the Institute
as specified in section 211, for the period covered by the
report; and
(2) a summary description of how the Institute will advance
the purposes of the Institute for the next biennium.
(b) First Report.--The Institute shall submit a report under this
section not later than 1 year after the date of enactment of this part.
SEC. 222. DEFINITIONS.
For purposes of this part--
(1) the term ``Board'' means the National Institute for
Literacy Advisory Board;
(2) the term ``Institute'' means the National Institute for
Literacy; and
(3) the terms ``reading'', ``scientifically based reading
research'', and ``essential components of reading instruction''
have the meanings given those terms in section 1208 of part B
of title I of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6368).
SEC. 223. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to administer and carry out
this part $6,700,000 for fiscal year 2004 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
SEC. 224. RESERVATION.
From amounts appropriated to the Institute, the Director of the
Institute may use not more than 5 percent of such amounts for
information dissemination under section 1207 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6367).
SEC. 225. AUTHORITY TO PUBLISH.
The Institute, including the Board, may prepare, publish, and present
(including through oral presentations) such research-based information
and research reports as needed to carry out the purposes and mission of
the Institute.
TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT
SEC. 301. AMENDMENTS TO THE WAGNER-PEYSER ACT.
The Wagner-Peyser Act (29 U.S.C. 49 et. seq.) is amended--
(1) by striking sections 1 through 13;
(2) in section 14 by inserting ``of Labor'' after
``Secretary''; and
(3) by amending section 15 to read as follows:
``SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.
``(a) System Content.--
``(1) In general.--The Secretary of Labor, in accordance with
the provisions of this section, shall oversee the development,
maintenance, and continuous improvement of a nationwide
workforce and labor market information system that includes--
``(A) statistical data from cooperative statistical
survey and projection programs and data from
administrative reporting systems that, taken together,
enumerate, estimate, and project employment
opportunities and conditions at national, State, and
local levels in a timely manner, including statistics
on--
``(i) employment and unemployment status of
national, State, and local populations,
including self-employed, part-time, and
seasonal workers;
``(ii) industrial distribution of
occupations, as well as current and projected
employment opportunities, wages, benefits
(where data is available), and skill trends by
occupation and industry, with particular
attention paid to State and local conditions;
``(iii) the incidence of, industrial and
geographical location of, and number of workers
displaced by, permanent layoffs and plant
closings; and
``(iv) employment and earnings information
maintained in a longitudinal manner to be used
for research and program evaluation;
``(B) information on State and local employment
opportunities, and other appropriate statistical data
related to labor market dynamics, which--
``(i) shall be current and comprehensive;
``(ii) shall meet the needs identified
through the consultations described in
subparagraphs (A) and (B) of subsection (e)(2);
and
``(iii) shall meet the needs for the
information identified in section 134(d);
``(C) technical standards (which the Secretary shall
publish annually) for data and information described in
subparagraphs (A) and (B) that, at a minimum, meet the
criteria of chapter 35 of title 44, United States Code;
``(D) procedures to ensure compatibility and
additivity of the data and information described in
subparagraphs (A) and (B) from national, State, and
local levels;
``(E) procedures to support standardization and
aggregation of data from administrative reporting
systems described in subparagraph (A) of employment-
related programs;
``(F) analysis of data and information described in
subparagraphs (A) and (B) for uses such as--
``(i) national, State, and local
policymaking;
``(ii) implementation of Federal policies
(including allocation formulas);
``(iii) program planning and evaluation; and
``(iv) researching labor market dynamics;
``(G) wide dissemination of such data, information,
and analysis in a user-friendly manner and voluntary
technical standards for dissemination mechanisms; and
``(H) programs of--
``(i) training for effective data
dissemination;
``(ii) research and demonstration; and
``(iii) programs and technical assistance.
``(2) Information to be confidential.--
``(A) In general.--No officer or employee of the
Federal Government or agent of the Federal Government
may--
``(i) use any submission that is furnished
for exclusively statistical purposes under the
provisions of this section for any purpose
other than the statistical purposes for which
the submission is furnished;
``(ii) make any publication or media
transmittal of the data contained in the
submission described in clause (i) that permits
information concerning individual subjects to
be reasonably inferred by either direct or
indirect means; or
``(iii) permit anyone other than a sworn
officer, employee, or agent of any Federal
department or agency, or a contractor
(including an employee of a contractor) of such
department or agency, to examine an individual
submission described in clause (i);
without the consent of the individual, agency, or other
person who is the subject of the submission or provides
that submission.
``(B) Immunity from legal process.--Any submission
(including any data derived from the submission) that
is collected and retained by a Federal department or
agency, or an officer, employee, agent, or contractor
of such a department or agency, for exclusively
statistical purposes under this section shall be immune
from the legal process and shall not, without the
consent of the individual, agency, or other person who
is the subject of the submission or provides that
submission, be admitted as evidence or used for any
purpose in any action, suit, or other judicial or
administrative proceeding.
``(C) Rule of construction.--Nothing in this section
shall be construed to provide immunity from the legal
process for such submission (including any data derived
from the submission) if the submission is in the
possession of any person, agency, or entity other than
the Federal Government or an officer, employee, agent,
or contractor of the Federal Government, or if the
submission is independently collected, retained, or
produced for purposes other than the purposes of this
Act.
``(b) System Responsibilities.--
``(1) In general.--The workforce and labor market information
system described in subsection (a) shall be planned,
administered, overseen, and evaluated through a cooperative
governance structure involving the Federal Government and
States.
``(2) Duties.--The Secretary, with respect to data
collection, analysis, and dissemination of labor employment
statistics for the system, shall carry out the following
duties:
``(A) Assign responsibilities within the Department
of Labor for elements of the workforce and labor market
information system described in subsection (a) to
ensure that all statistical and administrative data
collected is consistent with appropriate Bureau of
Labor Statistics standards and definitions.
``(B) Actively seek the cooperation of other Federal
agencies to establish and maintain mechanisms for
ensuring complementarity and nonduplication in the
development and operation of statistical and
administrative data collection activities.
``(C) Eliminate gaps and duplication in statistical
undertakings, with the systemization of wage surveys as
an early priority.
``(D) In collaboration with the Bureau of Labor
Statistics and States, develop and maintain the
elements of the workforce and labor market information
system described in subsection (a), including the
development of consistent procedures and definitions
for use by the States in collecting the data and
information described in subparagraphs (A) and (B) of
subsection (a)(1).
``(E) Establish procedures for the system to ensure
that--
``(i) such data and information are timely;
``(ii) paperwork and reporting for the system
are reduced to a minimum; and
``(iii) States and localities are fully
involved in the development and continuous
improvement of the system at all levels,
including ensuring the provision, to such
States and localities, of budget information
necessary for carrying out their
responsibilities under subsection (e).
``(c) National Electronic Tools to Provide Services.--The Secretary
is authorized to assist in the development of national electronic tools
that may be used to facilitate the delivery of core services described
in section 134 and to provide workforce information to individuals
through the one-stop delivery systems descried in section 121 and
through other appropriate delivery systems.
``(d) Coordination With the States.--
``(1) In general.--The Secretary, working through the Bureau
of Labor Statistics and the Employment and Training
Administration, shall regularly consult with representatives of
State agencies carrying out workforce information activities
regarding strategies for improving the workforce and labor
market information system.
``(2) Formal consultations.--At least twice each year, the
Secretary, working through the Bureau of Labor Statistics,
shall conduct formal consultations regarding programs carried
out by the Bureau of Labor Statistics with representatives of
each of the 10 Federal regions of the Department of Labor,
elected from the State directors affiliated with State agencies
that perform the duties described in subsection (e)(2).
``(e) State Responsibilities.--
``(1) Designation of state agency.--In order to receive
Federal financial assistance under this section, the Governor
of a State shall--
``(A) designate a single State agency to be
responsible for the management of the portions of the
workforce and labor market information system described
in subsection (a) that comprise a statewide workforce
and labor market information system and for the State's
participation in the development of the annual plan;
and
``(B) establish a process for the oversight of such
system.
``(2) Duties.--In order to receive Federal financial
assistance under this section, the State agency shall--
``(A) consult with State and local employers,
participants, and local workforce investment boards
about the labor market relevance of the data to be
collected and disseminated through the statewide
workforce and labor market information system;
``(B) consult with State educational agencies and
local educational agencies concerning the provision of
employment statistics in order to meet the needs of
secondary school and postsecondary school students who
seek such information;
``(C) collect and disseminate for the system, on
behalf of the State and localities in the State, the
information and data described in subparagraphs (A) and
(B) of subsection (a)(1);
``(D) maintain and continuously improve the statewide
workforce and labor market information system in
accordance with this section;
``(E) perform contract and grant responsibilities for
data collection, analysis, and dissemination for such
system;
``(F) conduct such other data collection, analysis,
and dissemination activities as will ensure an
effective statewide workforce and labor market
information system;
``(G) actively seek the participation of other State
and local agencies in data collection, analysis, and
dissemination activities in order to ensure
complementarity, compatibility, and usefulness of data;
``(H) participate in the development of the annual
plan described in subsection (c); and
``(I) utilize the quarterly records described in
section 136(f )(2) of the Workforce Investment Act of
1998 to assist the State and other States in measuring
State progress on State performance measures.
``(3) Rule of construction.--Nothing in this section shall be
construed as limiting the ability of a State agency to conduct
additional data collection, analysis, and dissemination
activities with State funds or with Federal funds from sources
other than this section.
``(f) Nonduplication Requirement.--None of the functions and
activities carried out pursuant to this section shall duplicate the
functions and activities carried out under the Carl D. Perkins
Vocational and Applied Technology Education Act (20 U.S.C. 2301 et
seq.).
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary
for each of the fiscal years 2004 through 2009.
``(h) Definition.--In this section, the term `local area' means the
smallest geographical area for which data can be produced with
statistical reliability.''.
TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973
SEC. 401. CHAIRPERSON.
Section 705(b)(5) of the Rehabilitation Act of 1973 (29 U.S.C.
796d(b)(5)) is amended to read as follows:
``(5) Chairperson.--The Council shall select a chairperson
from among the voting membership of the Council.''.
SEC. 402. REHABILITATION SERVICES ADMINISTRATION.
Section 3(a) of the Rehabilitation Act of 1973 (29 U.S.C. 702(a)) is
amended--
(1) by striking ``Office of the Secretary'' and inserting
``Department of Education'';
(2) by striking ``President by and with the advice and
consent of the Senate'' and inserting ``Secretary, except that
the current Commissioner appointed under the authority existing
on the day prior to the date of enactment of this Act may
continue to serve in the former capacity''; and
(3) by striking ``, and the Commissioner shall be the
principal officer,''.
SEC. 403. DIRECTOR.
(a) In General.--The Rehabilitation Act of 1973 (29 U.S.C. 701 et
seq.) is amended by striking ``Commissioner'' each place it appears,
except in section 21, and inserting ``Director''.
(b) Exception.--Section 21 of the Rehabilitation Act of 1973 (29
U.S.C. 718) is amended--
(1) in subsection (b)(1)--
(A) by striking ``Commissioner'' the first place it
appears and inserting ``Director of the Rehabilitation
Services Administration''; and
(B) by striking ``(referred to in this subsection as
the `Director') ''; and
(2) by striking ``Commissioner and the Director'' each place
it appears and inserting ``both such Directors''.
SEC. 404. STATE GOALS.
Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a))
is amended--
(1) in paragraph (11)(D)(i) by inserting ``, which may be
provided using alternative means of meeting participation (such
as video conferences and conference calls)'' before the
semicolon; and
(2) in paragraph (15)--
(A) in subparagraph (A), by redesignating clauses
(ii) and (iii) as clauses (iii) and (iv), respectively,
and inserting after clause (i) the following:
``(ii) include an assessment of the
transition services provided under this Act,
and coordinated with transition services under
the Individuals with Disabilities Education
Act, as to those services meeting the needs of
individuals with disabilities.''; and
(B) by amending subparagraph (D)(i) to read as
follows:
``(i) the methods to be used to expand and
improve the services to individuals with
disabilities including--
``(I) how a broad range of assistive
technology services and assistive
technology devices will be provided to
such individuals at each stage of the
rehabilitative process and how such
services and devices will be provided
to such individuals on a statewide
basis; and
``(II) how transition services will
be better coordinated with those
services under the Individuals with
Disabilities Education Act in order to
improve transition services for
individuals with disabilities served
under this Act;''.
SEC. 405. AUTHORIZATIONS OF APPROPRIATIONS.
The Rehabilitation Act of 1973 is further amended--
(1) in section 100(b)(1) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2004 through
2009'';
(2) in section 100(d)(1)(B) by striking ``fiscal year 2003''
and inserting ``fiscal year 2009'';
(3) in section 110(c) by amending paragraph (2) to read as
follows:
``(2) The sum referred to in paragraph (1) shall be, as
determined by the Secretary, not less than 1 percent and not
more than 1.5 percent of the amount referred to in paragraph
(1) for each of fiscal years 2003 through 2009.'';
(4) in section 112(h) by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(5) in section 201(a) by striking ``fiscal years 1999 through
2003'' each place it appears and inserting ``fiscal years 2004
through 2009'';
(6) in section 302(i) by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(7) in section 303(e) by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(8) in section 304(b) by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(9) in section 305(b) by striking ``fiscal years 1999 through
2003'' and insert ``fiscal years 2004 through 2009'';
(10) in section 405 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(11) in section 502(j) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2004 through
2009'';
(12) in section 509(l) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2004 through
2009'';
(13) in section 612 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(14) in section 628 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(15) in section 714 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009'';
(16) in section 727 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009''; and
(17) in section 753 by striking ``fiscal years 1999 through
2003'' and inserting ``fiscal years 2004 through 2009''.
SEC. 406. HELEN KELLER NATIONAL CENTER ACT.
(a) General Authorization of Appropriations.--The first sentence of
section 205(a) of the Helen Keller National Center Act (29 U.S.C.
1904(a)) is amended by striking ``1999 through 2003'' and inserting
``2004 through 2009''.
(b) Helen Keller National Center Federal Endowment Fund.--The first
sentence of section 208(h) of such Act (29 U.S.C. 1907(h)) is amended
by striking ``1999 through 2003'' and inserting ``2004 through 2009''.
TITLE V--TRANSITION AND EFFECTIVE DATE
SEC. 501. TRANSITION PROVISIONS.
The Secretary of Labor shall take such actions as the Secretary
determines to be appropriate to provide for the orderly implementation
of this Act.
SEC. 502. EFFECTIVE DATE.
Except as otherwise provided in this Act, this Act and the amendments
made by this Act, shall take effect on the date of enactment of this
Act.
Purpose
H.R. 1261, the Workforce Reinvestment and Adult Education
Act of 2003, enhances the workforce investment system created
under the Workforce Investment Act of 1998 by strengthening
one-stop career centers, providing for more effective
governance arrangements, promoting consumer choice,
establishing a more targeted approach to serving youth, and
improving performance accountability. The bill also improves
our nation's adult education system using practices based on
scientific research, and enhances vocational rehabilitation
services for individuals with disabilities seeking to return to
or enter the integrated workplace.
Committee Action
107TH AND 108TH CONGRESSES
Subcommittee hearings
On Tuesday, March 12, 2002, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington D.C. on ``Welfare to Work: Ties
Between Temporary Assistance for Needy Families (TANF) and
Workforce Development.'' The purpose of the hearing was to
learn about the interaction between the TANF block grant and
the workforce investment system created through the Workforce
Investment Act (WIA). Sigurd Nilsen, Ph.D., Director of Health,
Education, and Human Services Division, General Accounting
Office (GAO), Washington, D.C. testified before the Committee
about the GAO study regarding an increased coordination between
the TANF programs and the One-Stop Centers. Mr. John B.
O'Reilly, Jr., Executive Director, Southeast Michigan Community
Alliance, Taylor, Michigan; Ms. Barbara Gault, Ph.D., Director
of Research, Institute for Women's Policy Research, Washington,
D.C.; Mr. Greg Gardner, Acting Director, Utah Department of
Workforce Services, Salt Lake City, Utah; and Ms. Erika Kates,
Ph.D., Executive Director, Welfare Education Training Access
Coalition Center for Youth and Communities, Brandeis
University, Boston, Massachusetts, also testified before the
Committee.
On Thursday, September 12, 2002, the Committee on Education
and the Workforce, Subcommittee on 21st Century
Competitiveness, held a hearing in Washington D.C. on the
``Implementation of the Workforce Investment Act: Promising
Practices in Workforce Development.'' The purpose of the
hearing was to encourage and promote a seamless system that
improves services to job seekers and employers. Testifying
before the Committee were Mr. Bruce Stenslie, Director, Ventura
County Workforce Investment Board, Ventura, California; Ms.
Diane D. Rath, Chair, Texas Workforce Commission, Austin,
Texas; Mr. Danny Wegman, President, Wegmans Food Markets,
Rochester, New York; and Mr. Timothy Barnicle, Co-Director,
Workforce Development Program, National Center on Education and
the Economy, Washington, D.C.
On Tuesday, March 4, 2003, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington, D.C. on ``Improving Adult
Education for the 21st Century.'' The purpose of the hearing
was to learn about pertinent issues to be addressed in the
reauthorization of the Adult Education and Family Literacy Act,
Title II of the Workforce Investment Act. The Honorable Carol
D'Amico, Assistant Secretary, U.S. Department of Education,
Washington, D.C. testified before the Committee on the first
panel on methods to improve accountability for academic results
while ensuring the flexibility necessary to help adult
education participants receive the services they need. Dr. Beth
Buelmann, Executive Director, Center for Workforce Preparation
for the U.S. Chamber of Commerce, Washington, D.C.; Dr. Randy
Whitfield, Associate Vice President of Academic and Student
Services, North Carolina Community College System, Raleigh,
North Carolina; Ms. Ann-Marie Panella, Director of Human
Resources, MCS Industries, Inc., Easton, Pennsylvania; and Ms.
Hermelinda Morales Herrera, Adult Education Participant,
Aurora, Colorado, testified before the Committee on the second
panel.
On Tuesday, March 11, 2003, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington D.C. on ``Workforce Investment and
Rehabilitation Acts: Improving Services and Empowering
Individuals.'' The purpose of the hearing was to learn about
methods to strengthen and improve current programs and results
for both job seekers and employers. The Honorable Emily
DeRocco, Assistant Secretary, U.S. Department of Labor,
Washington, D.C., and the Honorable Robert Pasternack,
Assistant Secretary, U.S. Department of Education, Washington,
D.C., testified before the Committee on the first panel about
the potential benefits of streamlining programs and funding to
better serve populations as well as the need to improve
coordination between vocational rehabilitation services and WIA
programs to better serve individuals with disabilities. Mr.
Thomas J. White, President and CEO, Greater Durham Chamber of
Commerce, Durham, North Carolina; Mr. Steven Savner, Senior
Staff Attorney, Center for Law and Social Policy, Washington,
D.C.; Mr. John Twomey, President, National Workforce
Association, Washington, D.C.; and Ms. Bettie Shaw-Henderson,
District Manager, Michigan Department of Vocational
Rehabilitation, Grand Rapids, Michigan, testified before the
Committee on the second panel.
Full committee hearing
On Wednesday, February 12, 2003, the Committee on Education
and the Workforce, Subcommittee on 21st Century
Competitiveness, held a hearing in Washington D.C. on ``Back to
Work: The Administration's Plan for Economic Recovery and the
Workforce Investment Act.'' The purpose of the hearing was to
learn about the Administration's proposal to speed the
country's economic recovery, a component of which includes Back
to Work accounts that provide assistance to help unemployed
Americans who are struggling to return to work, and to learn
about the Administration's proposal for the Workforce
Investment Act reauthorization. The Honorable Elaine Chao,
Secretary of Labor, Washington, D.C., testified before the
Committee on the first panel. Mr. Kenneth Mayfield, President,
National Association of Counties, Washington, D.C., and Dr.
Lawrence Mishel, President, Economic Policy Institute,
Washington, D.C. testified before the Committee on the second
panel.
Legislative action
On March 13, 2003, 21st Century Competitiveness
Subcommittee Chairman Howard P. ``Buck'' McKeon (R-CA) and
Chairman John Boehner (R-OH) introduced H.R. 1261, the
Workforce Reinvestment and Adult Education Act of 2003, a bill
to amend the Workforce Investment Act of 1998 to provide for
the nation's One-Stop workforce development system. The
legislation also contains the Adult Basic Education Skills Act,
which reauthorizes State programs for adult education, and the
provision reauthorizing the Rehabilitation Act of 1973, which
provides services to help individuals with disabilities become
employable and achieve full integration into society.
On March 20, 2003, the Subcommittee on 21st Century
Competitiveness considered H.R. 1261 in legislative session and
reported it favorably, as amended, to the Committee on
Education and the Workforce by a vote of 15-12. The
Subcommittee considered accepted amendments:
The Subcommittee adopted, by voice vote, a
substitute amendment offered by Subcommittee Chairman McKeon
(R-CA). The substitute amendment clarifies the distribution of
adult funding within states, allows some youth funding to be
used to serve in-school youth, addresses the problem of
determining system expenditures, adds adult education incentive
grants, reinstates the National Institute for Literacy, and
makes other technical changes.
The Subcommittee adopted by unanimous consent a
technical amendment offered by Representative Isakson (R-GA).
On March 27, 2003, the Committee on Education and the
Workforce considered H.R. 1261 in legislative session and
reported it favorably, as amended, to the House of
Representatives by a vote of 26-21. The Committee considered 19
amendments and adopted the following 9 amendments:
The Committee adopted, by voice vote, a substitute
amendment offered by Subcommittee Chairman McKeon (R-CA). The
substitute amendment ensures confidentiality of student
records, allows states to measure customer satisfaction, amends
the provisions relating to in-school youth, adds Family
Literacy to the adult education program, reauthorizes the Helen
Keller National Center Act, and makes additional technical
changes. The amendment also removes Back to Work accounts from
the bill, which had already been approved by the full Committee
as a stand-alone bill (H.R. 444). The Back to Work Accounts was
temporarily removed pending negotiations on the FY 2004 Budget
Resolution.
The Committee also adopted, by voice vote, an en
bloc technical amendment offered by Mr. Isakson (R-GA).
The Committee adopted, by unanimous consent, an
amendment to require states to specify how they will address
the needs of ex-offenders, offered by Mr. Davis (D-IL).
The Committee adopted by a vote of 24-23, an
amendment offered by Mr. Osborne (R-NE), which provides that
the Commissioner of the Rehabilitation Services Administration
will no longer be a Presidential appointment following the
service by the current Commissioner.
The Committee adopted, by unanimous consent, an
amendment offered by Ms. Woolsey (D-CA) to allow states to
provide programs for displaced homemakers using statewide
employment and training funds.
The Committee adopted, by unanimous consent, an
amendment offered by Ms. McCollum (D-MN) that authorizes the
Secretary of Labor to provide demonstration retention grants to
qualified job training programs upon placement or retention of
a low-income individual.
The Committee adopted, by unanimous consent, an
amendment offered by Mr. Andrews (D-NJ) to allow
entrepreneurial training to eligible individuals.
The Committee adopted, by unanimous consent, an
amendment offered by Mr. Kind (D-WI) that requires states to
specify how they will serve the employment and training needs
of dislocated farmers, ranchers, and fishermen.
The Committee adopted, by unanimous consent, an
amendment offered by Ms. McCarthy (D-NY), which includes a
``hold harmless'' funding provision at 2003 levels pending
amended allocation levels.
Summary
H.R. 1261, The Workforce Reinvestment and Adult Education
Act of 2003, reauthorizes and amends the Workforce Investment
Act of 1998 (WIA), which provides for the nation's One-Stop
workforce development system. The legislation also contains the
Adult Basic Education Skills Act, which reauthorizes State
programs for adult education, and the provision reauthorizing
the Rehabilitation Act of 1973, which provides services to
assist individuals with disabilities become employable and
achieve full integration into society.
WORKFORCE INVESTMENT
H.R. 1261 provides workforce investment services and
programs through state and local One-Stop Career Center
systems. The goals of the legislation are to provide (1)
enhanced employment, retention, and earnings of individuals;
(2) increased occupational skills attainment; and (3) improved
national economic growth through increased productivity and
competitiveness.
The bill streamlines current WIA funding in order to
provide more efficient and results-oriented services and
programs to strengthen the coordinating infrastructure,
eliminate duplication, strengthen resource allocation, improve
accountability, enhance the role of employers, and increase
state flexibility. H.R. 1261 provides enhanced improvements to
the WIA system to effectively address the changing needs of
both workers and employers and further address the needs of
special populations by promoting a more productive workforce
and youth development programs connected to the private sector,
postsecondary education and training, social services, and
economic development systems.
STATE AND LOCAL WORKFORCE INVESTMENT BOARDS
H.R. 1261 strengthens the membership requirements and the
role of the State Workforce Investment Boards. Required
membership includes: (1) state agencies responsible
foradministering the One-Stop partner programs; (2) the state economic
development agency; (3) business representatives; (4) local elected
officials; (5) worker advocates; and (6) state legislators. The bill
continues to require a business majority on the board, and a member of
the business community must chair the board. Furthermore, State boards
will be responsible for setting policies and priorities affecting the
integration of services at the One-Stop Career Center systems to
increase support for partner usage and create a more coordinated
approach to addressing the workforce needs of each community.
Local Workforce Investment Board membership is streamlined
to ensure greater responsiveness to local area needs by
appropriately reflecting leading industry sectors and
geographical areas and removing the requirement that One-Stop
partner programs have a seat on the local boards. Local boards
will have the option of creating advisory committees comprised
of One-Stop partners and other key parties to provide advice on
operational issues. State and local area requirements to submit
strategic plans are reduced from five to two years to reflect
economic conditions or state/local priorities.
ONE-STOP CAREER CENTER SYSTEM
The bill streamlines the operational cost of the One-Stop
system through One-Stop infrastructure funding to alleviate
current local negotiation issues. Each mandatory partner
program will contribute funds for infrastructure grants. In
addition, the State board will establish criteria for and issue
certifications of one-stop career centers to ensure appropriate
integration of services and consistency across states. Only
certified centers are eligible for infrastructure grants.
CONSOLIDATED ADULT EMPLOYMENT AND TRAINING
H.R. 1261 combines the funding streams of the WIA Adult,
WIA Dislocated Worker and Wagner-Peyser programs into one
funding structure to reduce current duplication and
inefficiency. H.R. 1261 authorizes this program at $3.08
billion for FY 04 and such sums as necessary for 2005 through
2009. The bill reserves 10 percent of the funds for the
Secretary for national activities. State funding is held
harmless at 2003 levels. Fifty percent of the funds are
allocated to the local areas and 50 percent is retained by
states. Of the State portion, 50 percent is required to go to
the local areas for the delivery of core services. In addition,
the bill defines ``accrued expenditures'' and bases the re-
allotment of funds on expenditures, minus accrued expenditures,
rather than obligations to effectively redistribute unspent,
available funds between areas with greater needs.
H.R. 1261 also provides greater flexibility in the delivery
of services. Individuals are no longer required to spend a
specific amount of time in one tier of service. Individuals are
now able to receive the services that are most appropriate for
their needs. A priority is placed on unemployed workers, and if
funds are determined by a State to be limited, a second-tier
priority is placed on low-income individuals. Faith-based
providers are added as eligible service providers. In addition,
the bill gives States the authority to determine the standards,
information, and data required for eligible training providers
to offer services to individuals.
PERFORMANCE MEASURES
H.R. 1261 reduces the number of required performance
measures from seventeen to eight, four for adult outcomes and
four for youth outcomes, to effectively evaluate the system. As
provided under current law, the performance indicators are
negotiated between each State and the Department of Labor.
State-specific performance targets shall reflect appropriate
economic and demographic factors of the population served so as
not to create a disincentive to serve hard-to-serve
populations. Governors have the authority to add additional
measures for use within their State.
YOUTH PROGRAM
H.R. 1261 allows state and local areas to use up to 30
percent of local youth funds for the Youth Program to be spent
on in-school youth during non-school hours; however, the bill
targets funds on out-of-school youth. H.R. 1261 authorizes this
program at $1 billion for FY 04. The distribution formula for
the Youth Program includes \1/3\ distributed based on the
number of high school dropouts, \1/3\ on the number of jobless
out-of-school youth, and \1/3\ on the number of disadvantaged
youth. Furthermore, 25 percent of youth funding is available
for competitive challenge grant targeted funding. The bill also
eliminates the requirement for local Youth Councils, which have
generally proven inefficient and ineffective in enhancing local
system efforts.
ADULT EDUCATION AND LITERACY
Title II Part A of H.R. 1262 maintains the structure and
purpose of the 1998 consolidation of adult education programs
as reflected in P.L. 105-220. The funding formula remains the
same, however accountability measures have been strengthened,
and faith-based providers are allowed to compete to be local
providers of adult education services. Because of the
increasing number of individuals needing basic skills education
in reading, writing, English language acquisition, and math,
there is more focus on providing courses in these areas.
Programs offered by local providers should include a sequence
of rigorous, academic courses and activities leading to
proficiency in the basic skills and family literacy. Part B of
Title II modifies the mission of the National Institute for
Literacy to include all levels of instruction in reading for
children, youth and adults, improving the management structure
by streamlining the decision making process, and aligning the
activities with the objectives of the No Child Left Behind Act
in areas of reading instruction and scientifically based
research.
VOCATIONAL REHABILITATION
H.R. 1261 contains the vocational rehabilitation state
grants program, which is the primary federal program to assist
individuals with disabilities prepare for, obtain, and retain
employment in order to achieve full integration into society.
The bill reauthorizes through 2009 a variety of vocational
rehabilitation services, research, training, and advocacy
programs designed to assist individuals with disabilities
obtain employment. H.R. 1261 also includes transition
improvements, state plan strategies used to address the needs
identified in an assessment of transition services, and
coordination with the Individuals with DisabilitiesEducation
Act (IDEA) services, including authorizing the use of alternative means
of communication when participating in meetings under IDEA.
The bill also reauthorizes the Helen Keller National Center
Act through 2009.
EFFECTIVE DATE
The Workforce Reinvestment and Adult Education Act of 2003
shall be effective immediately upon enactment.
Committee Views
TITLE I--AMENDMENTS TO THE WORKFORCE INVESTMENT ACT
The Workforce Reinvestment and Adult Education Act of 2003
builds upon the historic Workforce Investment Act (WIA). In
1998, under this Committee's leadership, Congress passed WIA to
reform the nation's job training system that formerly was
fragmented, contained overlapping programs, and did not serve
either job seekers or employers well. WIA consolidated and
integrated employment and training services at the local level
in a more unified workforce development system.
The WIA system contains the federal government's primary
programs for investment in our nation's workforce preparation.
Even though the system is still maturing since its full
implementation in July 2000, states and local areas have
created effective one-stop delivery systems.
Emily DeRocco, Assistant Secretary for the Employment and
Training Administration at the Department of Labor, testified
before the Subcommittee on 21st Century Competitiveness
regarding the successes of the system to date. During program
year 2001, 1.1 million people were assisted through WIA funds.
(This figure captures only those individuals who receive
intensive or training services. Millions of additional
individuals accessed self-service job listings and placement
assistance through the one-stop centers.) The outcomes for
adults, mostly low-income individuals, demonstrated an
increased employment rate between program years 2000 and 2001
from 69 percent to 76 percent. Overall, 82 percent of
dislocated workers gained employment, up from 76 percent in
2000. Further, individuals replaced at least 100 percent of
their pre-dislocation earnings during both program years 2000
and 2001. In addition, the diploma attainment rate for youth
increased significantly (from 35 percent to 54 percent) during
the same time period.
Yet, more work remains to be completed. Strengthening and
improving programs that help Americans get back to work is
essential in this time of war and economic recovery. Hundreds
of thousands of Americans are searching for good, stable new
jobs. The U.S. economy lost 308,000 jobs in February 2003, one
of the sharpest drops in recent memory. As of March 2003, the
unemployment rate is 5.8 percent. While this is relatively low
by historical standards, the unemployment rate was only 4
percent as recently as 2000.
This legislation builds upon and improves the innovative
system created in WIA. The Committee believes it is essential
that Congress remove barriers in current law that hamper
Americans in their efforts to take full advantage of the
assistance WIA offers.
The Committee has worked closely with the Bush
Administration and the U.S. Department of Labor to incorporate
the Administrations' priorities for reauthorization of the
Workforce Investment Act, where possible.
In addition to hearings on these issues, the Committee also
solicited comments via the Committee web page. As of March 31,
2003, the Committee has received 390 comments, most from
individuals rather than associations, which has helped inform
the Committee's debate and development of legislation. The
Department of Labor also sought comments on WIA reauthorization
through a Federal Resister notice published on February 28,
2002. Over 370 comments were received in response to this
announcement. The Department also held twelve general public
forums throughout the country to seek input on the issues. Over
1,400 people attended the forums, and more than 240 individuals
presented oral remarks. Additional forums were held to discuss
one-stop services to persons with disabilities and Native
American programs.
Local elected officials, who are accountable for
implementation at the local level, support H.R. 1261. Larry E.
Naake, Executive Director of the National Association of
Counties, wrote Subcommittee Chairman McKeon on March 20, 2003
to express the Association's support:
NACo is very pleased to offer its support for a bill
that we believe will substantially enhance the nation's
workforce development system while retaining strong
roles for local elected officials and local workforce
investment boards. Such enhancements as expanding and
enhancing the role of business representatives on the
local workforce boards, establishing a single block
grant for adult programs, clarifying the definition of
expenditures to include accruals as well as actual
expenditures and developing strategies for direct
funding of locally established and locally run one-
stops will dramatically improve the policymaking and
program implementation aspects of the Workforce
Investment Act.
Purpose
The Committee believes that all individuals should be able
to participate actively in the decisions that will affect his
or her employment and training choices. Therefore, the
Committee has added as an additional purpose of WIA ``to
provide workforce investment activities in a manner that
promotes the informed choice of participants and actively
involves participants in decisions affecting their
participation in such activities.''
State workforce investment boards
The bill amends the membership requirements and required
functions of state workforce investment boards. To better focus
the state board on statewide labor market and economic issues,
H.R. 1261 streamlines membership requirements. Members include
the state agenciesresponsible for administering the one-stop
partner programs; the state economic development agency; business
representatives; labor representatives; chief local elected officials;
and, state legislators. As under current law, governors would retain
the right to expand board membership. In addition, the Committee has
maintained the requirements that a majority of board members be
business representatives and the chairperson of the board be a business
representative in order to emphasize the importance of the role of
business in the system.
The Committee notes that, while strategic planning and
delivery of services most appropriately belongs with the local
delivery system, the one-stop delivery system created through
WIA would be improved with greater continuity of services
within states. As a result, H.R. 1261 includes new functions
for the state board regarding statewide policies for the one-
stop career center system. These include the development of
criteria for and issuance of certifications on one-stop
centers, allocation of one-stop infrastructure funding, and
approaches to facilitating equitable and efficient cost
allocation in the one-stop delivery system. The establishment
of state-level criteria for one-stop centers should lead to
more consistent and better performance within states. In
addition, through the functions of the state board, the state-
level administrators of the one-stop partner programs will have
greater involvement in setting policies regarding the
integration of services within the one-stop centers. The
Committee asserts that new role should result in increasing
their participation in the one-stop system.
H.R. 1261 eliminates the grandfathering provisions that
give authority for states to use entities that were in
existence prior to the enactment of WIA in place of state
workforce investment boards. The Committee notes that the state
boards are an important component of the reforms underlying
WIA, and this change is intended to ensure state boards, with
their enhanced functions, are established. Without enforcing
the new board membership, one-stop partner programs may not
have appropriate involvement in the workforce development
system. The bill also allows the state board to hire staff to
assist in carrying out its functions.
H.R. 1261 also revises the WIA planning cycle to require
that state plans be submitted every two years instead of every
five years. This is intended to ensure that the state plans are
dynamic documents that are regularly updated to reflect
changing economic situations and reflect state and local
priorities.
The Committee wants to ensure that the workforce
development needs of certain populations are addressed.
Therefore, H.R. 1261 adds additional groups to those for which
the states already must include a description in their state
plans of how the states will address their needs. The new
groups are homeless individuals; ex-offenders; and displaced
farmers, ranchers and fishermen. Added emphasis is placed on
serving individuals with disabilities by requiring states to
assure that services for such individuals are consistent with
President Bush's Executive Order 13217, which promotes
community-based alternatives for assisting individuals with
disabilities.
Local workforce investment boards
Currently, a unit of local government with a population of
500,000 or more, or an area served by a rural concentrated
employment program grant recipient, receives an automatic
designation as a local workforce investment area, if so
desired. H.R. 1261 retains this requirement but limits the
duration of such designation to each two-year planning cycle
and provides that continued automatic designation may be denied
if the local area did not perform successfully during the
preceding two-year period. The bill retains other provisions
regarding the designation of local areas so as not to disrupt
the operations of local areas.
Current law also permits states to require regional
planning and cooperation among local areas that serve a single
labor market area, economic development region, or other
appropriate contiguous sub-area of a state. H.R. 1261 enhances
this authority by allowing states to require a regional plan
from such local areas in lieu of separate local plans.
The Committee acknowledges that the large size of the local
workforce investment boards under current law have been
unwieldy, making the decision making more difficult and
deterring the participation of business representatives, in
particular. The General Accounting Office (GAO), in its October
2001 report entitled ``Workforce Investment Act: Better
Guidance Needed to Address Concerns Over New Requirements,''
observed:
Private-sector representatives we spoke with are
frustrated with the operations of the workforce
investment boards under WIA, believing that the boards
are too large to effectively address their concerns * *
* We were told that the size of the boards makes it
difficult to recruit the necessary private-sector board
members for several reasons * * * because private-
sector representatives must make up the majority of
board membership, the larger the board, the greater the
requirement for private-sector members, which increases
the difficulty of recruiting the requisite number of
private-sector members.
The Committee believes that streamlined local board
membership will provide greater representation and influence by
local business representatives, education officials
(particularly community colleges), community groups, and
representatives of employees who frequently are frustrated that
they are not able to connect with or access resources from the
local boards.
To facilitate a more manageable board size, the requirement
that each of the one-stop partner programs have a seat on the
board is eliminated. The partners would retain significant
opportunities to affect local policy, including as a part to
the local memoranda of understanding (MOU) establishing one-
stop arrangements. In addition, the partner programs have new
authority as members of the state boards. The bill also permits
the creation of specialized advisory councils as necessary,
such as a council of one-stop partners.
Local leaders support the changes to the local workforce
investment boards. In a letter to Subcommittee Chairman McKeon,
dated March 20, 2003, Stephanie Powers, Chief Executive Officer
of the National Association of Workforce Boards (which
represents the nation's local business-led boards), said, ``We
support the changes you have proposed in H.R. 1261 for local
WIBs (workforce investment boards), especially the emphasis on
private sector leadership and increased local flexibility
regarding size and membership.''
To increase the effectiveness of the local boards further,
the bill provides additional guidance on the type of
representatives from business (including representatives from
leading industries and large and small businesses), education
(including the local secondary school superintendents and
presidents or chief executive officers of postsecondary
education institutions), and community-based organizations
(including faith-based organizations) that are to be appointed.
In addition, board members must represent diverse geographic
sections within each local area.
The Committee recognizes that the economy is dynamic and
the types of growing industries are changing. No longer are the
majority of new jobs in manufacturing. Rather, many new jobs
are in technology-based industries and services industries,
such as health care.
In recognition of the growing importance of the Information
Technology (IT) industry, the Committee believes greater
involvement of IT industry representatives is needed on the
local and state workforce investment boards. Although there
remains significant demand for certified IT workers in many
parts of the country, many workforce investment boards have
failed to adequately address the needs of the IT industry and
the need for IT skilled workers by employers across the board.
There needs to be greater awareness within workforce investment
boards on the importance of investing training funds in IT-
training. Once a determination is made for the need for IT
skilled workers, matches can be made between workers selecting
IT training, or dislocated IT workers, and employers.
Current law requires each local area to have a youth
council to advise the local board on activities related to
youth. The Committee understands that these councils have been
ineffective in some areas and burdensome to create and operate.
Maintaining participation by parents, youth, educators, and
other groups has proven difficult. However, local areas should
have the option to create such councils if they add value and
benefit services to youth in the area. Therefore, H.R. 1261
eliminates the requirement that local boards establish a youth
council component, but permits a local board to maintain a
youth council if it chooses.
Under WIA, states were given authority to use entities that
were in existence prior to the enactment of WIA in place of
local boards. This grandfathering provision is eliminated to
ensure that the most effective local boards are in place.
Further, the local workforce investment plan planning cycle is
reduced from five years to two years to be consistent with the
state planning cycle and to promote the use of the plan to
address changing economic circumstances and priorities.
One-stop delivery system
One of the hallmarks of WIA is that, in order to encourage
the development of comprehensive efforts that improve services
to both employers and job seekers, local services are provided
through a one-stop delivery system. The one-stop delivery
system is a methodology for service delivery. It is an effort
to increase access to federal and state resources available to
help individuals obtain training of their choice. While the WIA
funding streams are available for occupational training, there
are numerous other federal programs that provide employment and
training services. WIA created one-stop career centers to
provide a single point of access for individuals desiring
services through these programs.
Currently, 19 federal programs operate as mandatory partner
programs within the one-stop delivery system. The programs
include vocational education, veterans' employment and
training, welfare-to-work, employment services, vocational
rehabilitation, trade adjustment assistance, and adult
education, just to name a few. These programs must make their
services available through the one-stop centers. In addition,
optional partner programs may provide their services through
the system if the local board and the chief elected official
for the area permit the inclusion and the partner program
agrees to such participation. H.R. 1261 includes additional
option partner programs, which are child support enforcement
programs and programs serving individuals with disabilities.
The addition of these programs will provide enhanced
opportunities to coordinate employment and training services
for special populations.
The Temporary Assistance for Needy Families (TANF) program
remains an optional partner program under the bill. However,
the Committee strongly encourages states to include TANF in the
one-stop delivery system. In many States, the TANF system and
the workforce development systems are overseen by different
entities at the State and local levels. Yet, both operate work
programs. Operating TANF in the One-Stop system could reduce
the stigma associated with accessing welfare services. In
addition, it would encourage a continuum of services for low-
income families that may become unemployed after leaving
welfare, or may need additional training to move up the career
ladder. Creating a formal connection to the WIA system would
ensure TANF clients have access to labor market information and
job listings maintained at the One-Stops and should enhance
connections to the business community. It also could eliminate
some duplication at the State level.
The Committee believes that mandatory partnership creates
benefits for the partner programs, in addition to improving
service delivery for consumers. For example, Dr. Robert
Pasternack, Assistant Secretary for Special Education and
Rehabilitative Services at the Department of Education,
testified before the 21st Century Competitiveness Subcommittee
on March 11, 2003 regarding the value of including state
vocational rehabilitation programs as a mandatory partner in
the one-stop delivery system:
As partners in the one-stop center, State VR programs
have contributed significantly to the enhancement of
the one-stop system and the expansion of its
capabilities. State VR agencies provide expertise
relating to the needs of people with disabilities in
many of the local workforce areas. Participation of VR
agencies has also been instrumental in creating an
awareness of its consumer population among other
partners * * * Our partnership in WIA allows greater
access to the traditional employment and training
resource of one-stop centers for those individuals with
less significant disabilities who might otherwise be
forced to wait for services, or not receive any
services. The VR program has also benefited from closer
coordination and collaboration among related workforce
programs and services and from increased exposure to an
array of additional service providers and resources
(such as the Individual Training Accounts).
Under H.R. 1261, the current provisions regarding the
establishment of one-stop delivery systems is moved from
Chapter 5 (Comprehensive Adult Employment and Training
Activities) to Chapter 3 (Workforce Investment Activities
Providers) so as to reinforce the creation of a one-stop
delivery system that is independent of WIA employment and
training funds. Incorporating these provisions in the general
one-stop delivery system chapter is intended to clarify the
requirements applicable to the one-stop delivery system.
As previously stated in the description of the state
boards' functions, the one-stop centers across states have not
provided consistent services to consumers, both job seekers and
employers. Therefore, H.R. 1261 provides that the state board
is to establish procedures and criteria for certifying one-stop
centers and to issue certifications based on those procedures
and criteria. The criteria are to include state-developed
minimum standards relating to the scope and degree of service
integration achieved by the centers involving the programs
provided by the one-stop partners. The effect of certification
would be to make one-stop centers eligible for infrastructure
grants. The intent of the certification process is to promote
consistency and quality in the services provided by one-stop
centers in a state. No one-stop is required to obtain
certification, and local boards retain authority over the
identification of one-stop operators.
Under current law, one stop centers must provide access to
the programs and activities carried out by the partner
programs. In addition, each partner must make available to
clients the core services that are applicable to their program.
There must be at least one comprehensive one-stop center in
each local area, which can be supplemented through a network of
affiliated sites if the mandatory partners do not want to fully
co-locate. One-stop partner programs are required to contribute
a portion of their funds for the operation of the one-stop
delivery system. The appropriate portion is to be determined
through the MOU development process at the local level.
However, this process has resulted in uncertainty of funding
and contention among program operators and has forced the WIA
funding streams paying for a large share of infrastructure
costs, thus reducing the funds available for training. This
concern was highlighted by Bruce Stenslie, Director of the
Ventura County, CA, Workforce Investment Board who testified
before the 21st Century Competitiveness Subcommittee on
September 12, 2002, when he said, ``Currently, local Boards and
administrators have little to no leverage to require local
participation, and few incentives to offer those who do engage.
The result of this non-participation is that WIA dollars pay an
extraordinary share of One-Stop infrastructure costs for core
services, leaving little revenue for training.''
In order to provide a stable source of infrastructure
funding on a statewide basis, H.R. 1261 provides that each of
the one-stop partner programs provide a portion of program
funds to the governor, who then will allocate such funds to the
local areas for the certified one-stop centers in the state.
The formula for allocating these funds to the local areas will
be developed by the state board. The portion of funds to be
provided by each one-stop partner will be determined by the
governor in consultation with the state board. Therefore, the
directors of each mandatory partner program will have input
into the appropriate amount to contribute. The Committee
expects the portion of the funds provided for infrastructure
costs will be a very small percentage of the programs' funds,
proportionate to the programs' contribution to and use of the
one-stop system. The Committee believes the decision on the
amount of such funding is best determined within each state
depending on each state's needs and delivery systems.
While the infrastructure funding provided through these
grants will address the primary common costs of operating one-
stop centers, some common costs that would not be covered by
these funds would remain. Thus, partner programs and the local
boards would continue to develop MOUs to specify how such costs
would be paid. Remaining common costs include personnel and the
costs of providing the core services that are applicable to
participants for each program. Since the basic infrastructure
costs would already be addressed, these remaining costs items
should be easier to resolve.
H.R. 1261 significantly changes the requirements relating
to the certification of eligible providers of training
services. WIA created an eligible training provider list to
allow customers flexibility in selecting a provider that meets
their individual training needs. (Under the law preceding WIA,
the Job Training Partnership Act, training participants could
only receive services through contracted providers.) However,
current eligible training provider provisions include
requirements that have proven to be overly burdensome with
respect to the specific information required and the scope of
the reporting (i.e. reporting performance outcomes for all
students in a training program and not just WIA-funded
students). Rather than increasing consumer choice as intended,
the current requirements have had the unintended effect of
reducing customer choice as many qualified providers choose not
to participate in the system. Community colleges, in
particular, have chosen in many areas not to participate in the
system.
H.R. 1261 gives states the authority to determine what
provider information and data will be required to establish a
list of eligible training providers. This will allow for
flexibility to design procedures that respond to the needs of
each state. To ensure the quality of providers, states must
establish criteria including the performance of providers with
respect to WIA's performance indicators. A state may include
other factors appropriate to ensure the quality of services and
the accountability of providers. In addition, the state shall
require that the provider submit appropriate information to
assist consumers in selecting a training program. Such state-
developed criteria will be developed with the input of local
areas and training providers.
The intent is to ensure the retention of key elements
promoting consumer choice and provider accountability while
allowing states to simplify the process so that more qualified
training providers will participate.
The Committee remains committed to protecting the
confidentiality of all personally identifiable information
about students, and believes such information must not be
released without permission of the students or their parents,
as appropriate. Therefore, H.R. 1261 specifies that the new
training provider eligibility criteria must comply with the
Family Educational Rights and Privacy Act (FERPA).
Current law requires local areas to determine eligible
providers of youth services using a competitive process. The
Committee notes that this has proven overly prescriptive and
difficult in areas with few providers, particularly rural
areas. This requirement is eliminated to allow state and local
flexibility in using their own procurement systems to determine
eligible youth providers.
Youth activities
H.R. 1261 refocuses the current youth development program
under Chapter 4 of WIA by targeting activities to out-of-school
youth. These youth are currently underserved and face
significant challenges to successful employment. No other
funding stream is dedicated toward addressing the needs of the
out-of-school youth population.
However, there are numerous programs that serve in-school
youth, largely through the Department of Education. These
include: Title I grants to improve education for the
disadvantaged, Reading First, Neglected and Delinquent grants
to local educational agencies, Safe and Drug Free state grants,
bilingual education instructional services, dropout prevention,
special education grants to states through the Individuals with
Disabilities Education Act, vocational education, and tech prep
education.
H.R. 1261 revises the allotment of funds to the states for
youth programs. The Secretary will reserve 25 percent of the
appropriation for any fiscal year (up to a maximum amount of
$250 million) to provide Youth Challenge Grants. These new
grants will replace the expiring Youth Opportunity Grant
program.
Of the remaining 75 percent of the appropriated funds,
current law reservations of funds for youth activities in
outlying areas and Native American programs would be retained.
The remainder will be allotted to states on the basis of three
factors: 33\1/3\ percent on the relative number of high school
dropouts who are ages 16-21 in the state; 33\1/3\ percent on
the relative number of jobless out-of-school youth who are ages
16-21 in the state; and 33\1/3\ on the relative number of
disadvantaged youth who are ages 16-21 in the state. The new
formula would target funds based on the youth population that
is to be served by the amended program.
No state may receive an allotment that is less than 90
percent of the allotment percentage of the state for the
preceding fiscal year (as under current law), nor can a state
receive an allotment that is more than 130 percent of the
allotment percentage of the state for the previous fiscal year
(which is new). The Committee intends these stop-loss and stop-
gain measures to promote funding stability and enhance
planning. In addition, the bill contains a small-state minimum
of at least \3/10\ of one percent of the amount available for
allotment to the states to ensure that all states have
sufficient resources to administer a viable program.
Under current law, the formula for distribution of funds to
states for youth activities is based on factors that do not
reflect the number of at-risk youth in states. Two-thirds of
the allocation is based on the relative number of unemployed
individuals in the state and the relative number of excess
unemployed individuals in the state, only one-third is based on
the relative number of disadvantaged youth in the state.
The formula generates significant shifts in funding among
states because the formula factors are changing. The Committee
asserts that basing the distribution of funds on factors that
best reflect the population to be served is most appropriate as
it will target resources to areas with the greatest need.
However, in order to minimize the disruption to state and local
areas, the Committee added a provision to H.R. 1261 that
specifies no state shall receive an allocation less than what
the state received in 2003. The Committee intends to continue
to review the formula to ensure minimum disruption to state and
local areas as it is implemented.
States are permitted to retain up to 10 percent of the
youth funds for statewide activities (down from 15 percent
under current law) to ensure that more funds are distributed by
formula to local areas. Eighty percent of the remaining funds
will be distributed to local areas based on the same allocation
formula for distributing funds to states. The remaining 20
percent of the funds will be allocated using a formula
determined by the governor in consultation with the state board
and local boards. The formula is to reflect appropriate
demographic and economic factors. The discretionary
distribution will allow the states to address state-specific
issues.
H.R. 1261 establishes new eligibility criteria for the
revised youth program. These criteria target services to out-
of-school youth. The age for eligibility is changed from 14
through 21 years old to 16 through 21 years old. The exclusion
of 14 and 15 year olds reflects a shift to serve out-of-school
youth. To be eligible, youths must be one or more of the
following: school dropouts; recipients of a secondary diploma
or GED or its equivalent, but who are basic skills deficient;
court-involved youth; or youth in or formerly in foster care.
Priority in the provision of services would be given to school
dropouts.
While the primary focus will be on serving out-of-school
youth, the Committee recognizes that low-income, at-risk in-
school youth can be served effectively with WIA funds, largely
through summer employment programs and dropout prevention
programs. Therefore, H.R. 1261 continues to allow state and
local areas to use up to 30 percent of their youth funds to
serve in-school youth if they choose. Services may be provided
on school grounds, as appropriate, but only during non-school
hours (such as before and after school, or during the summer).
To help ease eligibility determinations for in-school youth,
those eligible to receive or are receiving free or reduced
price school lunch will meet the definition of ``low-income''
for purposes of this program.
H.R. 1261 establishes a revised list of discretionary
statewide activities that includes: assistance to local areas
that have a high concentration of eligible youth; supporting
the provision of core services in the one-stop delivery system;
conducting evaluations of youth activities (in coordination
with evaluations carried out by the Department of Labor);
providing incentive grants to local areas; providing technical
assistance and capacity building to local areas, one-stop
operators, one-stop partners, and eligible providers; operating
a fiscal and management accountability system; and carrying out
monitoring and oversight. Not more than five percent of the
youth funds allotted to the state may be used by the state for
administrative activities related to youth and adult programs.
Local program design requirements are revised to require
that service strategies developed for each participant be
directly linked to one or more of the performance outcomes
relating to youth activities.
Additions to the program design requirements include
activities leading to the attainment of a secondary school
diploma or GED (including recognized alternative standards for
individuals with disabilities); preparation for advanced
training; and effective connections toemployers in sectors of
the local labor market experiencing high growth in employment
opportunities. The Committee notes that some States and local areas
have interpreted the phrase ``secondary school diploma or its
recognized equivalent'' to include skill credentials other than a
diploma or GED, contrary to Congressional intent. Therefore, in all
areas of the legislation, such language is replaced with ``secondary
school diploma or the General Equivalency Diploma (GED) (including
recognized alternative standards for individuals with disabilities).''
The Committee added on-the-job training opportunities and
financial literacy skills to the program elements that youth
service providers may offer.
H.R. 1261 maintains current law safeguards against using
WIA youth funds in schools. These protections include
prohibitions against federal control over education, the use of
the funds for the School-to-Work Opportunities Act,
interference with or replacement of regular academic
requirements, and development of curricula.
Re-allotment and reallocation of funds
For both the youth and adult programs, current law re-
allots states' unobligated funds that at the end of a program
year are in excess of 20 percent of the prior year's allotment
and re-allots the funds in accordance with the prior year's
formula distribution. The amended provision would re-allot
unexpended funds that are in excess of 30 percent of all funds
available to the state during the program year, including funds
carried-over from previous allotments, and re-allot the funds
based on the most recent formula distribution. Since
expenditures indicate the funds have actually been used by the
program, while obligations only indicate commitment to some
future use, the change to unexpended funds as the basis for re-
allotment provides a better indicator of whether the state is
using the resources provided. However, H.R. 1261 excludes
accrued expenditures from the amount considered to be
unexpended. Such accrued costs may include overhead costs and
unpaid bills for training contracts or services rendered. In
practice, local areas must set aside funds for accrued costs
and therefore such funds truly are not available for other
expenditures. The bill defines accrued expenditures.
To accommodate these tighter standards, the required level
of use is reduced from 80 percent to 70 percent. However, the
overall effect of these changes would be to better identify
those states with a significant percentage of unused funds. As
under current law, only those states that do not have funds
that are being re-allotted are eligible to receive re-allotted
funds.
Similar language is included in both the youth and adult
programs for re-allotment among state and reallocation among
local areas within states.
This revised re-allotment and reallocation language
addresses a need to identify accurately the amount of funds
available in State and local areas. The Administration has
argued that states are carrying over significant amounts of
funding from year to year, yet states and local areas respond
that these funds have been obligated, meaning the funds have
been committed on behalf of WIA customers. Unfortunately, no
uniform definition for obligation exists, so the Department of
Labor has considered such information unreliable. Therefore,
the Department has been using only expenditure data to gauge
budgetary need. For the Committee, the GAO examined states'
levels of spending and determined that currently, ``Labor does
not take into account longer-term commitments made to customers
and service providers and, as a result, overestimates available
funds. Budget decisions based on underestimated spending levels
contribute to funding instability in the system and impair the
ability of State and local officials to plan.'' \1\ GAO's
analysis shows that states have spent an average of 90 percent
of program year funding within two years, and the law allows
states three years to spend the funds.
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\1\ WORKFORCE INVESTMENT ACT: State's Spending Is on Track, but
Better Guidance Would Improve Financial Reporting, page 30.
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In addition, the GAO suggests that the Department needs to
communicate spending benchmarks that States should meet. The
revised re-allotment provisions for youth and adult funding do
just that. H.R. 1261 makes clear the expectation that States
should spend at least 70 percent of their available funds each
year, while maintaining the ability to carry-forward some funds
to address unexpected future needs.
Comprehensive employment and training activities for adults
H.R. 1261 amends Chapter 5 of WIA to establish a
comprehensive program of employment and training activities for
adults. The Committee consolidates three separate funding
streams currently providing overlapping employment-related
services to adults into a single, more flexible, comprehensive
and effective program. The three current funding streams are
the adult employment and training funding stream and the
dislocated worker employment and training funding stream
authorized under Chapter 5 of WIA and the Wagner-Peyser Act
funding for State-administered employment services. These three
programs have separate funding formulas, eligibility criteria,
performance measures, reporting requirements and other separate
elements, although they largely serve the same populations.
Employment services are to be co-located with the one-stop
centers now. However, contrary to the intent of WIA, some areas
have retained separate employment services offices.
Consequently, unnecessary duplication of services and confusion
for customers (both job seekers and employers) has resulted.
Consistent with the principles of program integration
underlying WIA, this consolidation will simplify and enhance
the delivery of services to adults.
Consolidated funding will allow states and local areas to
tailor services to meet the needs of their local communities.
Diane Rath, Chair of the Texas Workforce Commission, testified
before the 21st Century Competitiveness Subcommittee on
September 12, 2002 on the need for additional flexibility:
The restrictive formula allocations in WIA, however,
limit the assistance that states and local workforce
areas can provide * * * one-size-fits-all truly does
not fit in a large and diverse state such as Texas * *
* in the Rio Grande Valley, the unemployment rate in
the McAllen-Edinburg-Mission MSA stood at 13.3 percent
in July 2002, the state's highest. Despite this high
rate, the area does not need additional Dislocated
Worker funding or Youth funds, but instead needs
funding to upgrade the skills of Adult residents in the
area to enable them to meet employers' needs. Similarly
in the Dallas area, with unemployment at 7.2 percent,
the local workforce board does not need Adult funds,
but it desperatelyneeds Dislocated Worker funding in
order to respond to the needs of the employers and residents in the
area.
The Committee also believes that the consolidated grant
will help facilitate further coordination with the welfare
system authorized under the Temporary Assistance for Needy
Families (TANF) program. In areas where TANF is provided
through the one-stop delivery system, TANF funds could be used
for low-income individuals and WIA funds would be available to
assist unemployed workers and those seeking better jobs or new
careers.
H.R. 1261 changes the title of chapter 5 of WIA from
``Adult and Dislocated Worker Employment and Training
Activities'' to ``Comprehensive Employment and Training
Activities for Adults.'' Throughout the bill, references to the
separate dislocated worker funding, which is being
consolidated, are eliminated.
The bill revises the allotment of funds to states and
reservations for national activities. Under current law, the
Secretary of Labor reserves 20 percent of the dislocated worker
funding stream to fund national activities. H.R. 1261 allows
the Secretary to reserve ten percent of the amount appropriated
for the consolidated adult program, with not less than 75
percent of that amount to be used for national dislocated
worker grants (currently referred to as national emergency
grants) to assist workers displaced by mass layoffs and natural
disasters. In addition, not more than 20 percent of the
Secretary's reserved funds are to be used for demonstration
projects, and not more than 5 percent are to be used to provide
technical assistance. Given the recent economic instability,
the national reservation will provide some additional resources
to serve dislocated workers. These grants (currently called
national emergency grants) have proven to be invaluable in
providing additional, targeted assistance to states and local
areas responding to large worker dislocations. The remaining 90
percent of the appropriated amount would be allotted to the
states.
Under current law, the funds are distributed on three
separate formulas for the three adult programs. H.R. 1261
revises the allotment formula to the States to reflect the more
relevant criteria from the funding streams that are being
consolidated. The reservation for outlying areas is retained at
the current WIA level. The new formula for allotments to the
states is based on four factors: 60 percent would be allotted
based on each State's relative share of unemployed individuals
(a factor currently used for the dislocated worker and Wagner-
Peyser funding streams); 15 percent would be allotted based on
each State's relative share of excess numbers of unemployed
individuals (a factor currently used by both the adult and
dislocated worker funding streams); 15 percent would be
allotted based on each State's relative share of individuals in
the civilian labor force (the primary factor currently used by
the Wagner-Peyser funding stream); and 10 percent would be
allotted based on each State's relative share of disadvantaged
adults (a factor used in the current adult funding stream).
These factors are intended to promote funding stability and to
reflect the population to be served, and are weighted in
accordance with the purposes of the new program.
The allotment formula includes a minimum percentage that
would ensure states receive an allotment percentage not less
than 90 percent of the previous year's allotment percentage
(for FY 2004 the previous year's percentage would be based on
the percentage of funds allotted to States under the three
separate funding streams). The Adult and Wagner-Peyser funding
streams currently include this 90-percent hold harmless. The
allotment formula also includes a maximum percentage of 130
percent of the previous year's allotment percentage, which is
part of the current adult formula. The Committee notes that
these protections should create more stability in funding for
states. Currently, the dislocated worker funding stream has no
stop-loss or stop-gain protections. While the current formula
was designed to allow funds to flow to those states most in
need, there have been significant shifts in funding from year
to year. As a result, states have been unable to plan their
programs effectively. The new provisions should address this
instability.
The formula also includes a small State minimum allotment
to ensure small States have sufficient resources to operate a
viable program. Currently, both the adult and Wagner-Peyser
formulas include small state minimums.
The Committee notes that, as the new formula is
implemented, some states will experience decreases in funding.
Therefore, the Committee has specified that, at a minimum, each
state will receive a grant that is not less than the amount the
state received for the three adult programs in 2003. The
Committee intends to continue to examine the adult formula to
ensure that funds are distributed appropriately with minimum
disruption to states.
H.R. 1261 further specifies within state allocation of
funding. A governor may reserve up to 50 percent of the state's
allotment for statewide activities. The adult program under WIA
currently allows the Governor to reserve up to 15 percent for
statewide activities, the dislocated worker program allows the
Governor to reserve up to 40 percent (including 25 percent for
rapid response, which will continue to be a statewide
activity), and employment services under the Wagner-Peyser Act
are entirely State administered. The 50 percent reserve allows
the State to retain a comparable level of resources to what is
currently administered at the State level under the three
programs.
However, the Committee notes that funds currently received
by states to operate the employment services system largely are
administered at the local level through the one-stop career
centers or in separate employment services offices. The
Committee aims to provide funding for the provision of local
employment and training services at least equivalent to current
funding. Therefore, governors are required to use at least 50
percent of each state's share of the adult funding to support
``core'' services in local areas, consistent with local plans,
through one-stop delivery systems. The governor of each state
will distribute such funds to local areas through a method of
distribution developed in consultation with the state board and
local boards. The method of distribution shall be objective and
geographically equitable. The funds may be used by states to
employ state personnel to provide core services in designated
local areas in consultation with local boards.
The remaining 50 percent of the overall state allotment is
to be allocated to the local areas within the state. The
separate formulas for adults and dislocated workers are
eliminated. Under the bill, 80 percent of the funds are to be
allocated in accordance with an established formula that uses
the same factors and weights as the national allotment formula
(i.e., 60 percent on each local area's relative share of
unemployment, 15 percent on excess unemployment, 15 percent
onthe civilian labor force, and 10 percent on disadvantaged adults) and
also include stop-loss and stop-gain provisions to stabilize funding.
The remaining 20 percent of funds are to be allocated to
local areas based on a state-developed formula. Currently, the
WIA adult program permits States an option of using a
discretionary formula under which 70 percent of the formula is
based on established factors and 30 percent may be based on
factors that relate to excess unemployment or excess poverty.
The dislocated worker program allows the Governor to establish
a formula that includes certain prescribed factors. Under the
bill, the Governor is to determine, after consultation with the
state board and local boards, the appropriate economic and
demographic factors to be used to allocate this portion of the
funds. The formula must be objective and geographically
equitable. This provision gives state and local areas the
ability to target funds as necessary to address unique state or
local factors.
H.R. 1261 also retains the current local administrative
cost limit under which local areas may not expend more than 10
of the allocation for administrative costs. As under current
law, these funds may be used for the administrative costs of
both the adult and youth programs (as may youth administrative
funds).
The bill also specifies statewide employment and training
activities. Under current law, rapid response services to
assist dislocated workers are a required statewide activity
with a specific reserve of 25 percent of the state's dislocated
worker allotment. The bill would retain the requirement that
these services be provided by the state, but eliminates a
specific reserve amount. The intent is to allow the Governor to
manage the portion of the state reserve that is not spent to
support core services in accordance with the needs of the
State.
This bill, similar to the provisions relating to statewide
activities for youth, removes the remaining categories
distinguishing allowable and required statewide activities to
allow greater administrative flexibility. The developing of
strategies for effectively serving hard-to-serve populations
and for integrating one-stop partner programs are added as
allowable statewide activities. The other identified
activities, including incumbent worker training projects and
services to displaced homemakers, are retained from current
law. Also retained is the current law limitation on State
administrative expenses, which are not to exceed 5 percent of
the allotment.
With the consolidation of the three adult funding streams,
the Committee expects that all former employment services
functions will be maintained through the provision of core
services within the one-stop delivery system. Under current
law, both WIA and the Wagner-Peyser Act provide funds for
services to connect job seekers with available jobs, including
job search and placement assistance. Regardless of income, all
adults are eligible to receive these services. Many one-stop
career centers offer such services through self-serve computer
stations where individuals may access job listings, write a
resume, and more. Under WIA, these are called ``core services''
while under Wagner-Peyser they are called ``labor exchange
services.'' Although each law has a different term, the
services are essentially the same.
H.R. 1261 incorporates as core services two functions
specifically identified in the Wagner-Peyser Act that are not
specified as core services in current law: appropriate
recruitment services for employers and the administration of
the work test for the unemployment compensation system.
Through the consolidation of the three adult funding
streams, the Committee aims to provide states and local areas
flexibility to provide core services without the bureaucratic
headache of administering three funding streams that provide
the same services under current law. H.R. 1261 also includes a
sub-state allocation that provides local areas with adequate
funding to maintain services, while also assuring that state
funds that formerly supported employment services flow locally
to support core services. Governors have the option of either
providing the funds to the local areas or utilizing the talents
of state employees to provide the services locally in the one-
stop centers. Therefore, the expertise of current state
employees will be maintained and will continue to benefit
individuals and employers seeking services through the one-stop
centers.
Under current WIA law, one-stop operations can be
competitively bid with services typically being provided by
government employees. Under Wagner-Peyser, there is a
regulatory requirement that labor exchange services be provided
by state merit staff employees. However, there is a
demonstration operating in Colorado, Michigan and Massachusetts
through which the three states are relieved of this burdensome
requirement. Having local government staff provide all core and
labor exchange services in these three states has worked well,
and the Committee believes all states should be afforded this
same flexibility.
Through WIA, two other levels of services also are
provided. ``Intensive'' services include comprehensive
assessments, case management and one-on-one career counseling,
short-term prevocational services, and more. ``Training''
services include occupational skills training, on-the-job
training, entrepreneurial training, customized training, and
more. Under current law, one must utilize at least one service
in each level before moving on to the next level of service,
but there is no federally required minimum time period for
participation in core and intensive services before one can
access training assistance. However, some states have
interpreted current law as requiring that all participants must
participate in core services for a specified period of time
before being eligible for intensive services, and likewise
requiring intensive services before training. This has
sometimes resulted in services being denied or delayed, and
limited the flexibility of States and local areas in tailoring
services to meet individual needs. There have also been
questions as to what sort of employment is the appropriate goal
in assessing whether an individual can obtain employment
through particular services. Current law simply refers to the
term ``employment'' in reference to unemployed individuals and
uses the term ``employment that leads to self-sufficiency'' for
employed workers.
To address these issues regarding the ``sequencing of
services,'' H.R. 1261 amends the eligibility requirements for
intensive services to provide that if an individual is
``unlikely or unable to obtain suitable employment'' through
core services, and, as in current law, is determined to be in
need of those services, he or she would be eligible. This
provision also provides that the Governor is to define the term
``suitable employment.'' Adding the language ``unlikely or''
clarifies that the determination of whether core services will
be sufficient to obtainemployment may be made prospectively,
not only after a time period has elapsed. Therefore, if an assessment
indicates that intensive services will be needed in addition to core
services, those services could be provided. In addition, by identifying
the employment for purposes of this determination to be ``suitable
employment,'' as defined by the governor, the particular circumstances
of the participant could be taken into account. For example, while one
might be able to find a job it may not be comparable to the person's
previous employment or consistent with the individual's employment
goals, and therefore it would not be suitable employment. Similar
provisions apply to individuals' eligibility for training services.
These amendments, therefore, provide important flexibility to states
and local areas in the provision of core, intensive, and training
services.
Tim Barnicle, Co-Director of the Workforce Development
Program at the National Center on Education and the Economy,
who testified before the 21st Century Competitiveness
Subcommittee on September 12, 2002, explained how the required
sequencing of services may have resulted in individuals failing
to receive some necessary training when he said, ``While
training is increasingly being provided to individuals in need
of such services throughout the workforce system, there was
some confusion in the initial implementation of the Act. Many
states and localities interpreted WIA as encouraging a ``work-
first'' only approach to service delivery resulting in a
reduction in the provision of training services.''
Three services are added to the list of allowable intensive
services: internships and work experience; literacy activities
relating to basic work readiness and financial literacy
activities; and out-of-area job search assistance and
relocation assistance. The Committee believes that allowing
literacy activities to be provided as an intensive service, and
not just as a training service, will increase access to such
services for those who need them.
The Committee notes that private-sector employment agencies
play an important role in providing employment opportunities to
America's workforce. The Committee encourages local boards and
one-stop operators to refer to and contract with such firms.
This would enhance the ability of local boards and one-stop
operators to make job placements, especially to businesses that
do not traditionally use one-stop services to fill vacancies.
Since H.R. 1261 consolidates three funding streams, a new
priority of service delivery must be included. Under current
law, the dislocated worker funding stream serves primarily
unemployed workers, and the adult funding stream has a priority
for low-income individuals. The revised provision would create
a priority of service for unemployed individuals in the
provision of intensive and training services under the
comprehensive adult program. In addition, if funds in the local
area for serving recipients of public assistance and other low-
income individuals are limited, then the priority for intensive
and training services is to be extended to such recipients and
low-income individuals.
Training currently is provided primarily through
``individual training accounts,'' or ITAs. Individuals that
receive an ITA voucher can choose training courses available
through eligible training providers.
The Committee believes that local areas should have the
flexibility to combine funds available for training under WIA
with other training resources. Therefore, H.R. 1261 authorizes
local areas to assist participants in enhancing these accounts
so that funds from sources other than the adult program may be
included. This is intended to facilitate the acquisition of
training and maximize the number of individuals that can be
assisted through training.
H.R. 1261 adds new activities to the current list of
permissible activities that local areas may carry out. The
first activity is customer support to navigate among multiple
services and activities for special participant populations
that face multiple barriers to employment, including
individuals with disabilities. These ``navigators'' are
intended to facilitate the access of special populations to the
services and activities available through the one-stop system.
The Committee has heard that such populations, especially
individuals with disabilities, have not been as well served
through the one-stop system as Congress intended. The Committee
anticipates this additional assistance to such individuals will
increase their utilization of the one-stop delivery system and
improve the quality of services they receive.
The second new permissible activity is employment and
training assistance provided in coordination with child support
enforcement activities of the State agency carrying out title
IV-D of the Social Security Act. This coordination is intended
to facilitate the employment of unemployed or underemployed
non-custodial parents, thus enabling them to pay child support.
Program operators continue to search for ways to ``make
work pay'' for low-income families. Work supports, such as
child care, often contribute to job retention. In addition,
many low-income workers need and desire advancement services.
Therefore, H.R. 1261 authorizes the provision of work support
activities for low-wage workers. Specifically, the adult
program, in collaboration with appropriate one-stop partners,
is authorized to provide work support activities designed to
assist low-wage workers in retaining and enhancing employment.
These activities may include assistance in accessing financial
supports. In addition, these activities may include the
provision of services through the one-stop delivery system in a
manner that makes it easier for these workers to participate in
the one-stop activities, such as employment and training
activities during non-traditional hours, and on-site child
care.
An additional permissible activity for local areas will be
incumbent worker training programs. Under current law incumbent
worker programs are only authorized at the State level. Under
this provision, the local board may use up to ten percent of
funds allocated to a local area for incumbent worker training.
The training must be carried out in conjunction with the
workers' employers for the purpose of helping the workers in
obtaining the skills necessary to retain employment and avert
layoffs. Employers participating in incumbent worker training
programs would be required to pay a portion of the costs of
training the incumbent workers. The governor may establish the
portion or delegate this responsibility to the local board, but
the portion may not be less than 10 percent for employers of 50
or fewer employees, 25 percent for employers with 51-99
employees, and 50 percent for employers with 100 or more
employees. The wages paid by an employer may be included in the
calculation of the match.
This provision is intended to provide some flexibility for
the one-stop system to respond to the needs in the local area
and assist in avoiding potential layoffs. The matching
requirement is intended to ensure there is appropriate employer
commitment to the training program.
Bruce Stenslie, Director of the Ventura County, CA,
Workforce Investment Board, testified before the Subcommittee
on 21st Century Competitiveness on September 12, 2002 that
incumbent worker training is valuable for several reasons:
Our work doesn't stop when a welfare recipient or any
worker is employed, but rather continues to help
clients attain self-sufficiency and to become full
participating members of the labor force. This requires
a continuing engagement with employers * * *. We have
documented the prevention of layoffs by investing in
business through employed and incumbent worker
training, to improve their skills and to keep them
employed.
Performance accountability system
Since implementation of WIA, states and local areas have
raised concerns regarding the seventeen statutory performance
measures applicable to the formula programs. The current
performance measures have been perceived as too numerous and
overly burdensome. In addition, the utility of some of the
measures (such as customer satisfaction) as federally required
measures has been raised. In order to promote consistency in
the measures applicable to Federal employment and job training,
the Bush Administration has undertaken a common measures
initiative for all employment and training programs. In
response to the concerns raised and in furtherance of the
common measures objectives presented by the Administration, the
Committee reduced the number of performance measures from
seventeen to eight (four for adults and four for youth).
The Committee believes that the customer satisfaction
measure does not provide a uniform measurement by which to
evaluate the program on a national level. Therefore, the bill
strikes references to the customer satisfaction measure.
However, states are explicitly permitted to utilize customer
satisfaction measures, and the Committee encourages states to
utilize such measures to determine the effectiveness of their
programs and to engage in continuous improvement.
Currently, outcomes data only is collected for those
individuals that register for intensive or training services.
Individuals accessing core services only are not required to
register for such services and little information is available
regarding the employment status of such individuals and the
impact of one-stop services. Therefore, performance data is
collected only on a small percentage of individuals utilizing
the one-stop delivery system. For instance, according to the
U.S. Conference of Mayors, in San Diego County 30,000
individuals were served in the county's six one-stop centers
during program year 2001. Of those individuals, 1,200 received
training through WIA. The Committee believes that it is
critical to capture performance information about all those
that the system serves and not just those receiving training.
H.R. 1261 drops the exclusion of those receiving self-service
and information activities from the measures. Therefore, all
participants would be included in the performance measures.
This change is intended to ensure accountability in the
provision of basic core services, which is a significant
component of the one-stop delivery system. The Committee notes
that this new requirement should not create a new burden on
local areas as most local areas already have the technology
(such as swipe cards) to capture information about those that
are using the system.
The bill also replaces the current adult program
performance indicator of the attainment of a credential with
the indicator of the efficiency of the program in achieving
outcomes relating to the other three adult indicators. The
other indicators, which are retained from current law, are
entered employment, earnings, and retention in employment.
In addition, H.R. 1261 amends the youth performance
indicators to establish the following four indicators: entry
into employment, education or advanced training, or military
service; attainment of a secondary school diploma or GED
(including a recognized alternative standard for individuals
with disabilities); attainment of literacy or numeracy skills;
and the efficiency of the program in achieving outcomes
relating to the three indicators. The efficiency indicator is
new, while the other indicators are similar to current law.
Under current law, the levels of performance for each
indicator are negotiated between the Secretary and each State.
One concern that has been raised is that these negotiations do
not sufficiently take into account economic conditions and the
characteristics of the population to be served, thus
discouraging services to special populations. H.R. 1261 would
revise the current language requiring that such factors shall
be taken into account by the Secretary and replace it with the
requirement that levels be adjusted based on those factors. The
bill also identifies the kinds of economic (unemployment rates
and job losses in particular industries) and participant
characteristics (indicators of poor work history, lack of work
experience, low levels of literacy, and welfare dependency)
that may be considered.
Local performance measures parallel the amendments made
regarding the State performance measures. The same performance
indicators are applied to local areas and the requirement that
the levels of performance negotiated between the Governor and
local areas be adjusted based on economic conditions and the
characteristics of the population served is incorporated.
Under current law, performance incentives are only
available to states that meet or exceed performance measures
for all of the following three programs: WIA, adult literacy
and vocational education. This approach has the effect of
separating the incentives from the performance of a particular
program, and thus reduces the incentive effect. H.R. 1261 links
the funding and process for awarding incentives specifically to
WIA Title I performance measures. The Secretary may use funds
appropriated for national activities to award grants to states
for exemplary performance. The Secretary may base the award on
performance of states with respect to the performance measures
or the performance of the state in serving special populations
(which includes individuals with disabilities). The States may
use these funds to carry out any youth or adult activities
authorized under chapters 4 or 5 of WIA, including
demonstrations and innovative programs for special populations.
The bill contains parallel language for rewarding local
areas' performance. The governor may use state reserve funds
under chapters 4 and 5 toward grants for exemplary performance,
which may be tied to the performance measures or services to
special populations. Local areas may use the funds for
authorized youth or adult activities.
Authorized appropriations
H.R. 1261 authorizes appropriations for the youth and adult
funding streams for fiscal years 2004 through 2009. The
Committee authorizes $1,001,000,000 for fiscal year 2004 and
such sums as may be necessary for each of fiscal years 2005
through 2009 for youth activities. The Committee authorizes
$3,079,800,000 for fiscal year 2004 and such sums as may be
necessary for each of fiscal years 2005 through 2009 for adult
activities. The Committee notes that this is the same funding
for 2004 that was provided through the three separate adult
funding streams in 2003. The separate authorization for a
dislocated worker funding stream is deleted.
Job Corps
Under current law, each Job Corps center must have a
business and community liaison. H.R. 1261 strikes the
requirement that the director of the center designate a
specific community and business liaison, but retains the
requirement that the liaison activities be carried out. This is
intended to provide new flexibility in the operation of Job
Corps centers.
Current law requires that each Job Corps center establish
an industry council responsible for such activities as
reviewing labor market information to determine the employment
opportunities in the local areas for Job Corps students. The
bill removes the requirement that the majority of industry
council members be ``local and distant'' employers and instead
adds language that encourages the participation of employers
outside of the local area who are likely to hire a large
portion of Job Corps students. In addition, the Committee
specifies that the same performance indicators applicable to
the WIA formula youth program are applicable to the Job Corps
program. This is consistent with the Bush Administration's
initiative to apply common performance indicators to federal
job training programs.
National activities
H.R. 1261 removes language that was necessary to help
programs transition from the former Job Training Partnership
Act (JTPA) to WIA, since it no longer is needed. In addition,
the bill clarifies the duties of the Native American Employment
and Training Council.
The Committee has maintained authorization for the Migrant
and Seasonal Farmworker Programs. However, the Committee
encourages one-stops to improve services to the population
served through this separate program and further notes that the
allowance for one-stop centers to provide access to social and
supportive services, housing and other assistance available
through partner programs should increase services for such
populations in one-stop centers.
As noted previously, 25 percent of the youth activities
appropriation, up to $250 million, is reserved for the
Secretary to provide Youth Challenge Grants. Of the funds
available for the grants, 80 percent would be available for
competitive grants and 20 percent would be available for
discretionary grants.
The purpose of the competitive grants is to promote
collaboration and innovation in providing activities to assist
youth in acquiring the skills and employment experience
necessary for employment. The competitive grants may be awarded
to States, local boards, recipients of Native American program
grants, and public or private entities (including consortia of
such entities) applying in conjunction with local boards.
Initial awards would be made for one year, with four option
years available depending upon satisfactory progress and
availability of funds. The Secretary is authorized to require
that grantees provide a nonfederal share of the cost of
activities carried out under a grant.
Funds would be used for the activities described in the
youth formula program to states and other activities designed
to assist youth in acquiring skills and employment experience,
including training and internships in high-growth sectors for
out-of-school youth; after-school dropout prevention programs
for in-school youth; activities to assist special youth
populations, such as court-involved youth and youth with
disabilities; and activities combining remediation of academic
skills, work readiness training, and work experience.
To be eligible to receive a Youth Challenge Grant, an
entity must submit an application to the Secretary that
includes a description of the activities the eligible entity
will provide to eligible youth; a description of the programs
of demonstrated effectiveness on which the provision of the
activities are based; a description of how such activities will
expand the base of knowledge relating to the provision of
activities for youth; a description of the private and public
local and state resources that will be leveraged to provide the
activities described; and the levels of performance the
eligible entity expects to achieve with respect to the
indicators of performance for youth.
Factors to be considered in awarding Youth Challenge Grants
include the quality of the proposed project, the goals to be
achieved, the likelihood of successful implementation, the
extent to which the project is based on proven strategies or
the extent to which the project will expand the knowledge base
on activities for youth, and the additional state, local or
private resources that will be provided. The Secretary may
reserve up to five percent of the Youth Challenge Grant funds
to conduct evaluations of the projects.
The Secretary is encouraged to consider the economic and
demographic factors of local areas when determining whether to
approve a Youth Challenge Grant application. The Committee
expects such funds will be targeted toward at risk areas, such
as those previously served through the youth opportunity
grants, particularly rural areas. In addition, the Committee
encourages the Secretary to provide technical assistance to
such rural areas to assist them in competing for the grants.
Discretionary Youth Challenge Grants for youth activities
are intended to provide the flexibility to assist a variety of
entities and organizations in providing innovative and
effective activities for eligible youth, including special
populations. The Secretary may award discretionary grants to
public or private entities that the Secretary determines would
effectivelycarry out activities relating to youth.
Discretionary grant funds may be used for activities that will assist
youth in preparing for, and entering and retaining, employment,
including the activities described in the youth formula program for
out-of-school youth, activities designed to assist in-school youth to
stay in school, and other activities the Secretary determines are
appropriate. To be eligible to receive a discretionary grant, an
eligible entity must submit an application to the Secretary. The
Secretary may require the provision of a nonfederal share for
discretionary projects, and may require participation of grantees in
evaluations of such projects.
H.R. 1261 amends the current provisions authorizing the
Secretary of Labor to provide, coordinate and support training,
technical assistance, and other activities. Current law
establishing separate technical assistance activities under the
dislocated worker funding stream would be deleted. However, the
staff training activities for rapid response are retained.
Funding for peer review activities and training of recipient
staff also is authorized as an allowable use of technical
assistance funds.
Current law relating to demonstration, pilot, multi-
service, research and multi-state projects is amended in order
to better align requirements with current priorities and the
new overall direction of the workforce investment system.
Allowable projects include: projects that assist national
employers to enhance connections with the workforce investment
system; systems development activities that benefit recipients
under this title and improve the effectiveness and efficiency
of programs; projects focused on high-growth industry sectors;
and projects that promote states and local areas to test
innovative approaches to delivering workforce services. The
list of entities eligible to carry out demonstration and pilot
programs is removed in order to allow a broader array of
entities to carry out these programs, promoting greater
innovation.
Currently the Secretary can provide supplemental funds,
upon request of a state, to assist states and local areas in
addressing the needs of dislocated workers through national
emergency grants. H.R. 1261 changes the name of ``National
Emergency Grants'' to ``National Dislocated Worker Grants'' to
better reflect the population that is to be served through the
grants. Current law that requires the Secretary to designate a
dislocated worker office to coordinate the functions of the
Secretary under title I of WIA relating to employment and
training activities for dislocated workers, including
activities carried out under the national emergency grants, is
repealed to allow the Secretary the discretion to determine how
the grants could best be administered within the Department of
Labor.
The separate funding authorization for the grants that were
authorized under the Trade Act of 2002 to provide assistance in
providing health insurance coverage to certain participants in
the Trade Adjustment Assistance (TAA) program and certain
beneficiaries of the Pension Benefit Guaranty Corporation are
maintained.
Current law permits ``other entities that demonstrate to
the Secretary the capability to effectively respond to the
circumstances relating to particular dislocations'' to apply
for a national emergency grant. This provision is deleted,
since the appropriate entities to carry out these grants are
the grantees in the workforce investment system and entities
approved by the Governor. No entity in this deleted category
has received these grants under WIA.
In general, the authorization for the national activities
is extended from fiscal years 2004 through 2009. Specific
reserve percentages for technical assistance, demonstration and
pilot projects, evaluations and incentive grants are deleted.
The Committee believes that eliminating these reservations will
provide the Secretary with greater flexibility in determining
how funds will be utilized.
Administration
Under current law, the Secretary must investigate each
allegation of violations of the requirements of title I of WIA.
This provision is amended to authorize investigations of such
allegations since it may not be necessary or appropriate to
conduct an investigation of each one.
Current law prohibits use of WIA funds for employment
generating activities, economic development activities and
similar activities that are not directly related to training
for eligible title I participants. The bill would remove this
prohibition to encourage closer ties between workforce
development and economic development activities. The current
restriction on foreign travel would be maintained.
The nondiscrimination provisions of WIA are amended to
provide an exemption for religious organizations with respect
to the employment of individuals of a particular religion to
perform work connected with the carrying on of its activities.
This incorporates the exemption in hiring by religious
organizations contained in Title 7 of the Civil Rights Act.
Currently under federal law, religious organizations may hire
on a religious basis, and any federal legislation governing
federal social service funds should continue to protect the
rights of religious organizations to hire on a religious basis
when they take part in federal social services (in this case,
job training) efforts. However, often these faith-based
organizations have been excluded from delivering services for
which the federal government commits substantial resources--
most simply because they have a religious name or identity.
President Bush has called on his Administration and Congress to
remove these barriers.
Faith-based organizations cannot be expected to sustain
their religious mission without the ability to employ
individuals who share the tenets and practices of their faith
because it is that faith that motivates them to serve their
neighbors in trouble. In Bowen v. Kendrick the United States
Supreme Court upheld a program allowing federal funds to be
given to faith-based organizations for family counseling,
including faith-based organizations that required their
employees to follow religious directives. Without the right to
continue to hire on a religious basis, religious organizations
are likely to simply withdraw from federal social service
efforts altogether, to the detriment of people in need
everywhere.
The Committee believes that members of faith-based
organizations should enjoy the same right to associate with
those sharing their unique vision, as other, non-religious but
certainly ideological groups currently enjoy. For example,
Planned Parenthood may refuse to hire those who do not share
its view about abortion. Planned Parenthood Federation of
America received over $100 million in federal funds to support
reproductive health activities in each of federal fiscal years
1997 through 2000. Equal treatment requires that churches,
mosques, and synagogues have the same right to discriminate on
ideological grounds.
Under current law, funds under title I of WIA are to be
made available for obligation only on the basis of a program
year beginning on July 1 in the fiscal year for which the
appropriation is made. Youth funds were made available on April
1 of any fiscal year. The bill would delete this exception.
This provision was important when summer employment
opportunities were a key part of the youth strategy. Having the
funds available on April 1 allowed local areas to plan their
summer activities. Since the youth program now will be focused
on services to out-of-school youth, the funds should be made
available on July 1, the same date as are the funds for the
consolidated adult program. This change will also reduce
planning and reporting burdens on states and local areas.
Under current law, states have three years to spend each
year's allotment. H.R. 1261 clarifies that this allowance also
applies to Native American grantees.
H.R. 1261 provides new waiver authority for the Secretary
of Labor. The Department of Labor will establish an expedited
process for extending waivers approved for one State to
additional States, provided they meet other applicable
requirements. In administering the waiver process it has been
found that some waivers to address particular issues appear to
be appropriate for all States, but under current authority each
State must go through a detailed application process to have a
waiver extended to their State. This provision would allow the
Secretary to expedite that process.
In addition, H.R. 1261 prohibits using funds provided under
WIA from being used to establish or operate stand-alone fee-
for-service enterprises that compete with private sector
employment agencies. Such an enterprise does not include one-
stop centers. The Committee understands that in some local
areas, local boards have established free-standing enterprises
specifically designed to compete with private sector employment
agencies. This is contrary to the intent of WIA.
TITLE II--ADULT EDUCATION
In her March 4, 2003 testimony before the Subcommittee on
21st Century Competitiveness, Assistant Secretary for
Vocational and Adult Education, Carol D'Amico, summarized the
purpose of the federal adult education program as, ``The vision
for the proposed Adult Basic and Literacy Education Act is that
eligible adults have opportunities to improve their basic and
literacy skills in high-quality research-based programs that
will equip them to succeed in the next step of their education
and employment.''
As we begin the 21st Century, the need for an educated
populace is critical to our success in maintaining our place in
the knowledge-based economy, and providing opportunities for
all our citizens to reach their highest potential. But there
are major challenges ahead of us. In 2001, English as a Second
Language (ESL) enrollment was 42 percent of the total
enrollment in state-administered adult education programs. The
U.S. Census Bureau data from 1999 show that full-time workers,
18 years and older, who have not completed high school earn an
average of $23,447 per year. The average for all workers is
$43,396. Those without a high school diploma or its equivalent
on average earn almost half the salary of the average worker.
Employers searching for qualified employees over the past five
years have noticed an increasing trend in the number of
employees lacking the basic skills needed in the workplace.
Increasing numbers of beginning college students are required
to take basic skills courses in reading and math before moving
into the standard college program.
Currently the federal adult education program serves 2.7
million adults in more than 5,000 federally sponsored centers
with 53,000 part time teachers and 10,000 full time teachers.
The 21st Century Workforce Commission reported that, ``As
never before, there is a premium on American workers who are
able to read and understand complex material, think
analytically, and use technology efficiently. To stay
competitive in the knowledge-based economy employers will need
workers who can read, write, compute, solve problems, and
communicate well.''
In reauthorizing Title II, the Adult Basic Skills and
Family Literacy Education section of the Workforce Investment
Act, the Committee has placed additional emphasis on ensuring
that States and local providers offer research validated basic
skills instruction in reading, writing, English language
acquisition, and math. Making sure that these skills are
solidly in place for all students is a priority, whether it is
those with limited English proficiency, high school dropouts
who have not mastered these vital skills, or even high school
graduates who have slipped through the cracks in the system and
need additional instruction in the basics.
Purpose
In revising the purpose of Title II the Committee believes
that clearly defining the skills that are necessary for an
adult to become educated enough to compete in a knowledge-based
economy is essential. Reading with comprehension, writing with
clarity and purpose, speaking the English language proficiently
and fluently, and mastering the basic computational math skills
remain essential if an individual is to move on to higher
levels of education and employment. To make sure that States
and local providers clearly understand the terms included in
this reauthorization the definitions section has been expanded,
or modified to correspond with those in the No Child Left
Behind Act. The Committee specifically added definitions for
the ``essential components of reading instruction,''
``reading,'' ``scientifically based reading research'' and
``literacy.''
Measuring success
The Committee has expanded the accountability provisions
for both State and local providers. The requirement for
measuring improvement in ``basic skills levels in reading,
writing, English language acquisition, and math, leading to
proficiency in each skill'' have been added to the ``eligible
agency performance measures'' that are in current law. Course
offerings in the basic skills must include ``sufficiently
rigorous instructional practices'' as to assure continuous and
significant improvement. Progress in these skills must be
``objective, quantifiable, and measurable'' if the purposes of
this title are to be achieved.
The Committee also has provided funds for States to use in
offering eligible providers of adult education technical
assistance and professional development training on ways to
``develop, implement and report measurable progress in
achieving the objectives of this title.'' States are required
to include in their State plans ``how they will evaluate and
measure annually such effectiveness on a grant-by-grant
basis,'' and how they will hold eligible providers accountable
in ``improving the academic achievement of participants in
adult education programs.'' The Committee believes that
cooperation and coordination between State and local providers
in offering research based instructional programs in reading,
writing, English Language Acquisition and math will insure that
participants will reach their goals. States are authorized to
``use technical assistance, sanctions, and rewards (including
allocation of grant funds based on performance and termination
of grant funds based on nonperformance'' to hold local adult
education providers accountable.
Coordination between adult educators, employers, and providers of
higher education
The Committee believes that it is essential that adult
educators work closely with ``State Workforce Investment
Boards, State agencies on higher education, representatives of
business and industry, immigrant assistance organizations,
including community-based and faith based organizations'' in
providing appropriate skill development programs for eligible
adults.
National leadership activities
The Committee has authorized national activities to assist
States and local providers in developing valid, measurable, and
reliable performance data, and in using such performance
information for the improvement of adult basic skills and
family literacy education programs. The development of model
basic and workplace skills education programs, and their
effective integration with employment services are important
components of improving the delivery of adult education
programs. In addition, the Committee has encouraged support for
the development of a more efficient delivery system of
technology-based, basic skills programs and materials for adult
reading, writing, English language acquisition, math, and
family literacy education.
Appropriations
The appropriations for Title II (A) for fiscal year 2004
are $584.7 million and such sums as are necessary for fiscal
years 2005--2009.
Part B--The National Institute for Literacy
The Committee has expressed concern that the National
Institute for Literacy (NIFL) has not achieved the objectives
required in current law. NIFL was established in 1991, and its
mission was primarily focused on disseminating information on
adult literacy. In 1998, the mission was expanded to include
dissemination on scientifically based reading research on K--3
programs as identified through the Reading Excellence Act and
the Even Start Act. More than $90 million has been appropriated
for NIFL since 1991, and although reports to Congress have been
required, none has even been transmitted. Thus, the Committee
has no way of making a determination on what products have been
developed, or what impact NIFL has had over the twelve years it
has been authorized. The NIFL section of Title II was not
included in the introduced bill (H.R.1261). However, a
significantly revised version of NIFL was included in the Full
Committee substitute that passed on March 27, 2003.
Purpose
The mission of NIFL has been modified to be consistent with
the provisions of the No Child Left Behind Act (NCLB) for
national leadership in ``promoting reading research, reading
instruction, and professional development in reading based on
scientifically based research.'' In addition to the $6.7
million currently authorized for NIFL an additional $7 million
is authorized under Part B of NCLB and the Even Start Family
literacy program for NIFL. The Committee has modified the
mission to focus on widely disseminating ``information on
scientifically based reading research to improve academic
achievement for children, youth, and adults.'' Since learning
to read is the gateway skill that opens the door to all other
learning, the Committee believes that the most effective way to
reduce the number of illiterate adults is to educate children
and youth before they graduate from high school. That process
will take time, and thus the Committee is committed to insuring
that adults receive the most effective instruction in reading
that is available.
Establishment
NIFL is established as an independent agency, to be
administered under the supervision of a Board appointed by the
President and confirmed by the Senate. A Director, appointed by
the board, in consultation with the Secretary of Education
manages the day-to-day activities of the Institute. The
Committee has ensured that there will be coordination between
other federal agencies, such as the Departments of Labor,
Health and Human Services, and the National Institute for Child
Health and Human Development, but has removed the current
Interagency Group management arrangement because it has been
confusing and inefficient. The Director's term is three years
and may be extended for an additional three years should the
Board approve such an extension.
Administration and accountability
The Committee has clarified and expanded the duties of the
Board to provide policy guidance and advice to the Director in
administering the Institute. The annual budget request is to be
transmitted to both the Office of Management and Budget and the
Congress annually. A biennial report is to be submitted to the
Committee on Education and the Workforce in the House, and the
Committee on Health, Education, Labor and Pensions in the
Senate providing a comprehensive and detailed description of
the Institute's operations, activities, financial condition,
and accomplishments in carrying out the purposes of the
Institute, along with a summary description of how the
Institute will advance its mission in the next biennium.
National leadership
It is the intent of the Committee that the Institute will
work closely with the Secretary of Education, in particular
with the Reading First Director, the Director of the Institute
for Education Sciences, the Director of the National Institute
for Child Health and Human Development, and the National
Research Council in advancing scientifically based reading
instruction for children, youth and adults. For decades reading
scores for children, youth and adults have been inadequate for
a nation with more resources and programs dedicated to
improving reading instruction than any other nation on earth.
In NCLB the budget for reading instruction was tripled, and the
Committee believes it is essential to provide the currently
available information on scientifically based reading
instruction for teachers, parents, school boards, state
legislators, Members of Congress, and Federal agencies. The
Institute will ``establish a national electronic database of
effective reading programs for children, youth, and adults that
include the essential components of reading instruction, and
disseminate such information to parents, teachers, State and
Federal elected officials, and the public.'' The Committee
expects the Institute to conduct periodic reviews of research,
including randomized field trials, on reading programs, federal
reading policies, and reading program implementation using a
board of visitors similar to that being currently used by the
National Science Foundation. Widely disseminating objective,
unbiased information on reading instruction is the best and
most effective way to provide the American public with the
tools to reduce and ultimately eliminate the scourge of
illiteracy.
Definitions
The Committee has included the definitions of
``scientifically based reading research,'' ``reading'' and the
``essential components of reading instruction'' that have the
meanings given to those terms in NCLB. It is important to have
definitions that are consistent throughout federal law so that
States and local providers understand the intent of Congress in
federal reading policy.
Appropriations
The appropriations for the Title II (B) are at $6.7 million
for fiscal year 2004, and such sums as necessary in fiscal
years 2005--2009.
TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT
The Wagner-Peyser Act authorizes the current employment
services system and the employment statistics system. Because
the employment services funding is part of the consolidated
adult grant under WIA, and because the employment services
functions are being assumed into the one-stop delivery system,
H.R. 1261 repeals sections one through thirteen of the Wagner-
Peyser Act. These sections authorize the stand-alone employment
services system.
H.R. 1261 amends the current employment statistics system
authorized under the Wagner-Peyser Act and renames the system
the Workforce and Labor Market Information System. The
requirement for the Secretary to prepare an annual plan for
management of the nationwide employment statistics system is
eliminated. This plan has not proven useful. In place of the
plan requirement is an authorization for the Secretary to
assist in the development of national electronic tools that may
be used to facilitate the delivery of core services and provide
workforce information to individuals through the one-stop and
other appropriate delivery systems.
The current law provisions relating to consultations
between the Secretary and state employment statistics officials
would be simplified to provide that the Secretary, working
through the Bureau of Labor Statistics (BLS) and the Employment
and Training Administration, must regularly consult with
representatives from the designated state agencies on
strategies for improving the workforce and labor market
information system. At least twice each year, the Secretary,
working through BLS, would conduct formal consultations on BLS
programs with representatives, elected by and from state
directors affiliated with the designated state agencies, from
each of the ten Department of Labor regions. This formal
consultation and election process is similar to current law.
The authorization for appropriation for the Workforce and
Labor Market Information System is extended to 2004 through
2009.
TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973
The Rehabilitation Act of 1973 is the nation's major
program providing comprehensive vocational rehabilitation (VR)
services to help persons with disabilities become employable
and achieve full integration into society. The primary program
within the Act is the state grant VR program under Title I. It
provides formula grant funds to states for VR services to
assist persons with significant disabilities to become employed
in integrated work settings.
The 1998 reauthorization of this Act simplified certain
aspects for VR consumers, expanded consumer choice of services
and providers, and required that the VR system be coordinated
with the WIA system. The last reauthorization also required VR
consumers to be involved in their VR planning process, giving
them more choice in the development of their individualized
plans for employment. The Committee believes these changes are
impacting the VR system positively and are resulting in
improved outcomes for clients. As a result, few changes are
deemed necessary in this Act.
The Department of Education's Commission examining the
Individuals with Disabilities Education Act (IDEA) suggested
that the transition from IDEA services to postsecondary
activities needs improvement. Therefore, H.R. 1261 contains new
language requiring states to set clear goals about improving
the alignment of transition services in both vocational
rehabilitation and special education. There is also new
language directing states to conduct an assessment of
transition services and how those services are coordinated with
services under IDEA. The bill provides additional coordination
with IDEA services by clarifying that rehabilitation counselors
(under VR) may use alternative means of communication (such as
video conferencing and conference calls) when participating in
Individualized Education Program meetings under IDEA. While
recognizing the importance of transition services, the primary
problem seems to be a lack of coordination and consultation
between the two systems, not necessarily a lack of programs.
The new language in the bill will help improve the coordination
of transition services and improve collaboration between the
two systems.
The bill also changes the position that heads the
Rehabilitation Services Administration within the Department of
Education from a Commissioner appointed by the President and
approved by the Senate to a Director appointed by the
Secretary. The Committee notes that this is a simple and
important change to the administrative functioning of the
Department of Education to help make the Department operate
more effectively and ensure that there is a consistent policy
view over all the Department's programs that deal with
disability policy. This change is consistent with President
Bush's Management Agenda, through which the President is
calling on agencies to reduce the number of managers and
organizational layers thereby reducing the time it takes to
make a decision and ensuring there is one unified voice
speaking for the Department on disability policy.
The Assistant Secretary of Special Education and
Rehabilitation Services oversees the Director of the Office of
Special Education Programs and the Director of the National
Institute of Disability Research and Rehabilitation. This
proposal places the Rehabilitation Services Administration on
equal footing with those two important offices, and reaffirms
the importance of coordinating federal policy across these
three vital offices though the office of the Assistant
Secretary.
Administration after Administration has struggled with
having two individuals appointed by the President and confirmed
by the Senate working within the same office. Providing this
clarity will establish a clear sense of purpose to these
offices, enabling the Department to focus more on providing
high-quality services to individuals with disabilities.
The bill authorizes programs under the Rehabilitation Act
of 1973 through 2009. H.R. 1261 also reauthorizes the Helen
Keller National Center Act through 2009.
TITLE V--TRANSITION AND EFFECTIVE DATE
Title III contains transition provisions and the effective
date. The Secretary shall take such actions as the Secretary
determines to be appropriate for the orderly implementation of
this Act. Except as otherwise provided by this Act, the
amendments made by this Act are to take effect upon enactment.
Section-by-Section Analysis
Section 1. Designated the short title of this act as the
``Workforce Reinvestment and Adult Education Act of 2003.''
Section 2. Establishes the table of contents for the Act.
Section 3. Specifies that, if there is an amendment or a
repeal in the Act, unless otherwise specified it is considered
made to the Workforce Investment Act of 1998.
TITLE I. AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT OF 1998
Section 101. Modifies and adds definitions under this
Title.
Section 102. Amends the purposes of the Workforce
Investment Act of 1998 (WIA).
Section 103. Amends section 111(b) to stipulate the members
of the State Workforce Investment Boards and authorizes the
State board to hire the necessary staff to carry out this
mandate.
Section 104. Changes the state planning cycle from a 5-year
strategy, to a 2-year strategy.
Section 105. Amends the automatic designation of local
areas and allows regional planning in lieu of separate local
plans.
Section 106. Amends section 117 of WIA to specify the
composition and functions of the Local Workforce Investment
Boards. Eliminates the requirement for Youth Councils.
Section 107. Amends section 118 to change the local
planning cycle from 5-years to 2-years and promote continuous
improvement in service delivery.
Section 108. Amends section 121 to add Ticket to Work,
child support, and programs for individuals with disabilities
as new optional partner programs within the one-stop delivery
system. Moves the creation of the one-stop delivery system from
section 134 to section 121, requires State boards to certify
one-stop centers for the purposes of awarding infrastructure
funds, and requires one-stop partners to contribute funds for
infrastructure grants.
Section 109. Amends section 122 to allow Governors to
identify eligible providers of training services.
Section 110. Repeals requirement for the competitive
process to determine eligible providers of youth services.
Section 111. Amends chapter 4 of WIA to target out-of-
school youth, while allowing States and local areas to serve
some in-school youth. Allots 25% of the appropriation for any
fiscal year for national Youth Challenge Grants. Amends the
allotment of funds to states and local areas, youth participant
eligibility, and youth activities.
Section 112. Amends chapter 5 of WIA to establish a
comprehensive program of employment and training activities for
adults. The section amends the allotment of funds to states,
changes the allotment formula for states and local areas,
amends the reallotmment provisions, retains current local
administrative cost limit, and removes references to separate
dislocated work funding stream. The section also amends the use
of funds for employment and training activities and the State
and local level and removes the current sequencing of services
requirements.
Section 113. Simplifies the performance accountability
system established in section 136.
Section 114. Amends section 137 to authorize appropriations
for all programs in the legislation for 2004 through 2009.
Section 115. Amends subtitle C to clarify the business and
community participation under the Job Corps program.
Section 116. Amends the Native American Programs authorized
under section 166.
Section 117. Amends section 169 to authorize Youth
Challenge Grants to assist youth in acquiring skills,
credentials, and employment experience.
Section 118. Provides technical assistance and support
training to dislocated workers.
Section 119. Amends the Workforce Investment Act in order
to realign requirements with current priorities for the
Workforce Investment System.
Section 120. Changes the program entitled ``National
Emergency Grants'' to ``National Dislocated Worker Grants''.
Section 121. Extends the authorization of appropriations in
the Workforce Investment Act for national activities through
2009.
Section 122. Amends the limitations in section 181(e).
Section 123. Applies current law exemption for Faith Based
Organizations with respect to hiring people of a particular
religion.
Section 124. Expands the Secretary's waiver authority.
Section 125. Clarifies that no funds under this act shall
be used to establish fee-for-service agencies that compete with
private sector employment agencies.
TITLE II. ADULT BASIC SKILLS EDUCATION
Section 201. Establishes the table of contents of Title II.
Section 202. Amends Title II to read as follows:
``TITLE II. ADULT BASIC AND FAMILY LITERACY SKILLS EDUCATION
``Section 201. States the short title as the ``Adult Basic
Skills and Family Literacy Education Act.''
``Section 202. Sets forth the purpose of this Title.
``Section 203. Modifies and adds definitions under this
Title.
``Section 204. Sets forth provisions exempting home schools
from requirements of this Act.
``Section 205. Contains provisions pertaining to the
authorization of appropriations.
``CHAPTER 1. FEDERAL PROVISIONS
``Section 211. Contains provisions pertaining to
reservation of funds; sets forth provisions regarding grant
eligibility, purpose, and allotment of funds, states the
definition of a qualifying adult; and contains provisions
regarding eligibility for the Freely Associated States.
``Section 212. Establishes a performance accountability
system; sets forth performance measures and indicators; and
contains provisions regarding the submission of an annual
report by eligible agencies and requirement on its
dissemination by the Secretary.
``Section 213. Sets forth provisions regarding incentive
grants for states.
``CHAPTER 2. STATE PROVISIONS
``Section 221. Sets forth provisions regarding state
administration and state-imposed requirements.
``Section 222. Contains provisions regarding state
distribution of funds and sets forth requirements regarding
non-federal matching contributions for eligible agencies.
``Section 223. Contains provisions regarding allowable
state leadership activities.
``Section 224. Requires the submission of a six-year state
plan by grant applicants and sets forth requirements for six-
year state plans, plan revisions, and plan approval.
``Section 225. Authorizes a program for corrections
education and education for institutionalized individuals; and
states definitions of criminal offender and correctional
institution.
``CHAPTER 3. LOCAL PROVISIONS
``Section 231. Contains provisions regarding grants and
contracts for local providers and local activities; sets forth
provisions regarding direct and equitable access for eligible
providers; and requires eligible providers to establish a set
of measurable goals.
``Section 232. Sets forth provisions regarding requirements
for local grant and contract applications.
``Section 233. Contains provisions regarding local
administrative cost limits.
``CHAPTER 4. GENERAL PROVISIONS
``Section 241. Requires that federal funds supplement not
supplant state or local funds expended and contains provisions
regarding the maintenance of effort.
``Section 242. Requires the Secretary to establish and
carry out a national leadership activities program and contains
provisions regarding allowable activities.''
Part B. National Institute for Literacy
Section 211. States the short title as the ``National
Institute for Literacy Establishment Act'' and contains
provisions with regard to the purpose of this Part.
Section 212. Establishes the National Institute for
Literacy to be administered by a Director and sets forth
provisions regarding the Office of the Director, including the
Director's appointment, qualifications, term, and salary.
Section 213. States that the Institute is an agency and
will be administered by the Director in consultation with the
Board; contains provisions regarding the Office of the Director
including the Director's authority and duties; requires the
Institute to transmit budget documents to Congress; and
requires the Secretary to provide administrative support for
the Institute.
Section 214. Sets forth provisions regarding duties and
responsibilities of the Institute.
Section 215. Contains provisions regarding fellowships and
internships granted to individuals pursuing careers in
scientifically based reading instruction.
Section 216.Establishes a National Institute for Literacy
Advisory Board and contains provisions regarding the Board's
composition, appointments, vacancies, and meeting procedures.
Section 217. Sets forth rules for accepting gifts and in
kind services.
Section 218. Sets forth provisions regarding mails.
Section 219. Contains provisions regarding the
applicability of certain civil service laws
Section 220. Contains provisions pertaining to experts and
consultants.
Section 221. Requires the Institute to submit a biennial
report to Congress, sets forth requirements of report
components, and states that the Institute shall submit a report
no later than one year after the date of enactment of this
Part.
Section 222. Contains definitions.
Section 223. Contains provisions pertaining to the
authorization of appropriations.
Section 224. Contains a provision regarding reservation of
funds.
Section 225. Grants the Institute the authority to publish.
TITLE III. AMENDMENTS TO OTHER PROVISIONS OF LAW
Section 301. Amends the Wagner-Peyser Act by striking
Sections 1 through 13 (29 U.S.C. 49 et. seq.). Also amends
section 15 of the Act to require the Secretary of Labor to
oversee a nationwide workforce and labor market information
system; sets forth provisions with regard to system content,
confidentiality of information, system responsibilities, and
immunity from legal process; authorizes the Secretary to assist
in the development of national electronic tools to provide
services; and requires the Secretary to consult with
representatives of State agencies involved in carrying out
workforce information strategies.
TITLE IV. AMENDMENTS TO THE REHABILITATION ACT OF 1973
Section 401. Makes changes to Section 705(b)(5) of the
Rehabilitation Act of 1973 (29 U.S.C. 796d(b)(5)) regarding the
selection of the chairperson.
Section 402. Amends Section 3(a) of the Rehabilitation Act
of 1973 (29 U.S.C. 702(a)) with regard to the Commissioner of
the rehabilitation services administration.
Section 403. Amends The Rehabilitation Act of 1973 (29
U.S.C. 701 et seq.) for a technical change.
Section 404. Amends Section 101(a) (29 U.S.C. 721(a)) by
allowing alternative means of meeting participation.
Section 405. Amends The Rehabilitation Act of 1973 with
regard to the authorization of appropriations.
Section 406. Authorizes appropriations for the Helen Keller
National Center Act for 2004 through 2009.
TITLE V. TRANSITION AND EFFECTIVE DATE
Section 501. Grants the Secretary of Labor authority to
take appropriate action to provide for the orderly
implementation of this Act.
Section 502. States that this Act and the amendments made
by this Act shall take effect on the date of its enactment.
Explanation of Amendments
The Amendment in the Nature of a Substitute is explained in
the body of this report.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch. The purpose of H.R. 1261 is enhance the workforce
investment system created under the Workforce Investment Act of
1998 by strengthening one-stop career centers, providing for
more effective governance arrangements, promoting consumer
choice, establishing a more targeted approach to serving youth,
and improving performance accountability. The bill also
improves our nation's adult education system using practices
based on scientific research, and enhances vocational
rehabilitation services for individuals with disabilities
seeking to return to or enter the integrated workplace. The
bill does not prevent legislative branch employees from
receiving the benefits of this legislation.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement of
whether the provisions of the reported bill include unfunded
mandates. H.R. 1261 amends the Workforce Investment Act and the
Vocation Rehabilitation Act. As such, the bill does not contain
any unfunded mandates.
Correspondence
Congress of the United States,
House of Representatives,
Washington, DC, April 8, 2003.
Hon. John Boehner,
Chairman, Committee on Education and the Workforce,
Rayburn House Office Building, Washington, DC.
Dear Mr. Chairman: Due to other legislative duties, I was
unavoidably detained during Committee consideration of H.R.
1261, the ``Workforce Reinvestment and Adult Education Act of
2003.'' Consequently, I missed roll call number four on the
fourth amendment offered by Representative Chris Van Hollen.
Had I been present, I would have voted against the amendment.
I would appreciate your including this letter in the
Committee Report to accompany H.R. 1261. Thank you for your
attention to this matter.
Sincerely,
Michael N. Castle,
Member of Congress.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII 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.
New Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the House of Representatives and section 308(a) of the
Congressional Budget Act of 1974 and with respect to
requirements of 3(c)(3) of rule XIII of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for H.R. 1261 from the Director of the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, April 8, 2003.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1261, the
Workforce Reinvestment and Adult Education Act of 2003.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Christina
Hawley Sadoti.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
H.R. 1261--Workforce Reinvestment and Adult Education Act of 2003
Summary: H.R. 1261 would make numerous changes to the
Workforce Investment Act of 1998 (WIA), amend the Wagner-Peyser
Act, and extend the authorization for programs under the
Rehabilitation Act of 1973 (RA). These programs, which received
discretionary funding of $7.1 billion and mandatory funding of
$2.5 billion for fiscal year 2003, provide a framework for
adult education, job training, and employment service
assistance. Some of the affected programs are permanently
authorized under Wagner-Peyser, but others are currently
authorized through 2003, 2004, or 2005.
H.R. 1261 would extend, through 2011, the existing
mandatory program of state grants for vocational rehabilitation
services, which is currently authorized through 2005 (including
automatic extensions for two years provided by law). By law,
that program is assumed to be extended indefinitely in CBO's
baseline, so its extension would add no costs relative to the
baseline. CBO estimates that outlays for that program over the
2006-2011 period would total about $17 billion.
CBO estimates that enacting H.R. 1261 would increase
discretionary authorizations by $5.1 billion in 2004, and by
$31.2 billion over the 2004-2008 period. Assuming appropriation
of the necessary amounts, outlays would increase by $51 million
in 2004 and by $21.3 billion over the 2004-2008 period.
H.R. 1261 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Any costs incurred by state, local, or tribal governments would
result from complying with conditions of federal aid.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 1261 is shown in the following table.
The costs of this legislation would fall within budget function
500 (education, employment, training, and social services).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------
2003 2004 2005 2006 2007 2008
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Authorizations Under Current Law:
Estimated Authorization Level \1\..................... 7,083 4,387 840 859 879 901
Estimated Outlays..................................... 7,537 6,717 3,339 1,660 985 888
Proposed Changes:
Title I: Amendments to the Workforce Investment Act of
1998:
Estimated Authorization Level \2\................. 0 5,917 6,041 6,172 6,302 6,450
Estimated Outlays..................................... 0 401 3,733 5,245 5,934 6,241
Title II: Adult Education:
Estimated Authorization Level..................... 0 3 603 615 628 642
Estimated Outlays................................. 0 (*) 32 453 583 635
Title III: Amendments to the Wagner-Peyser Act:
Estimated Authorization Level..................... 0 -824 -736 -753 -771 -790
Estimated Outlays................................. 0 -356 -808 -804 -772 -781
Title IV: Amendments to the Rehabilitation Act of
1973:
Estimated Authorization Level..................... 0 8 416 425 434 443
Estimated Outlays................................. 0 6 293 410 431 440
Total Changes:
Estimated Authorization Level..................... 0 5,105 6,324 6,459 6,593 6,744
Estimated Outlays................................. 0 51 3,250 5,304 6,175 6,525
Authorizations Under H.R. 1261:
Estimated Authorization Level \1\..................... 7,083 9,491 7,164 7,318 7,472 7,645
Estimated Outlays..................................... 7,537 6,768 6,589 6,964 7,160 7,413
----------------------------------------------------------------------------------------------------------------
\1\ The figure for fiscal year 2003 is the amount appropriated for that year. The 2004 level includes advance
appropriations of $2.5 billion for job training for the program year beginning July 1, 2003.
\2\ Authorization levels are for program years beginning July 1 and do not assume any advance appropriations.
Notes.--*=Less than $500,000.
The estimated costs shown above assume that ``such sums'' authorizations increase each year for inflation. If,
instead, costs were assumed to remain level over time, outlays over the 2004-2008 period would be about $700
million less.
Basis of estimate: This estimate assumes enactment of H.R.
1261 during fiscal year 2003, and appropriation of the
necessary sums for each subsequent fiscal year.
Direct spending
Grants to states for vocational rehabilitation services,
authorized under title I of the RA, are currently authorized
through fiscal year 2005, assuming both the automatic one-year
extension in the RA law and the automatic one-year extension
under the General Education Provisions Act (GEPA), which
provides an automatic extension for all programs in the
Department of Education. H.R. 1261 would extend the
authorization for the state grants through 2011, assuming the
automatic extensions in law. Although the authorization for RA
state grants expires, the Balanced Budget and Emergency Deficit
Control Act requires that baseline spending projections assume
extension of any mandatory programs with outlays in excess of
$50 million. Because H.R. 1261 makes no substantive changes to
RA state grants, the bill would not affect direct spending
relative to the CBO's baseline.
Funding for the mandatory state grants is determined by a
formula. It is set at the previous year's funding level
adjusted by the year-over-year change in the consumer price
index as of October 15 of the second preceding year. In fiscal
year 2003, RA state grants were funded at $2.5 billion; by 2011
state grants would cost an estimated $3.1 billion. CBO
estimates that outlays over the 2006-2011 period would total
about $17 billion.
Discretionary spending
H.R. 1261 would reauthorize the Workforce Investment Act of
1998 and the Adult Education and Family Literacy Act, amend
provisions of the Wagner-Peyser Act, and reauthorize the
Rehabilitation Act of 1973. Under H.R. 1261, authorizations for
these programs would be increased by $5.1 billion, bringing the
total authorized level to $9.5 billion in 2004.
Title I: Amendments to the Workforce Investment Act. H.R.
1261 would revise and reauthorize the Workforce Investment Act
of 1998, which is currently authorized through 2003. These
programs, which received appropriations totaling $5.2 billion
in fiscal year 2003, would be authorized for fiscal years 2004
through 2009. CBO estimates that authorizations under title I
would total $5.9 billion in fiscal year 2004, about $30.9
billion over the 2004-2008 period, and $37.5 billion over the
2004-2013 period.
The bill would consolidate the funding streams for job
training block grants for youth and adults into two main
grants--one for youth and one for adults. The bill would
authorize appropriations of $1 billion for grants for youth
activities, and $3.1 billion for job training grants for
adults. The block grant for adult training also would provide
grants to states for employment service operations. Under
current law, grants to states for employment service operations
are funded under the Wagner-Peyser Act. Appropriations for the
employment service grants total about $0.8 billion in fiscal
year 2003.
In addition, the bill would authorize such sums as may be
necessary for fiscal years 2004 through 2009 for ongoing
national activities including the Job Corps and job training
programs for Native Americans and for migrant and seasonal
workers. Based on the fiscal year 2003 appropriations for these
programs (adjusted for inflation), CBO estimates that these
programs would be authorized at $1.7 billion for fiscal year
2004 and would grow to $1.9 billion by 2009.
Finally, title I of the bill would authorize such sums as
may be necessary for fiscal years 2004 through 2009 for other
activities associated with workforce investment, including
technical assistance grants, demonstration and pilot programs,
and evaluations. Based on the appropriations for these programs
in fiscal year 2003 (adjusted for inflation), CBO estimates
that they would be authorized at $102 million in fiscal year
2004 and would grow to $114 million by 2009.
Title II: Adult Education. Title II of H.R. 1261 would
revise and reauthorize the Adult Education State Grant program
and the National Institute for Literacy, both of which are
currently authorized through 2004 by GEPA. H.R. 1261 would
authorize an additional $3 million in 2004 (for a total of $591
million in 2004) for programs under title II. CBO estimates the
total funding for title II for the 2004-2008 period would be
about $2.5 billion, assuming adjustments for inflation, with
resulting outlays of $1.7 billion.
Adult Basic and Literacy Education State Grants. H.R. 1261
would authorize an additional appropriation of $3 million (for
a total of $584.3 million) in 2004 for the Adult Basic and
Literacy Education program and extend the authorization for the
whole program at such sums as may be necessary from 2005
through 2009. The revised program would continue to provide
formula grants to states but would focus more on basic literacy
and math skills than the current program. The current Adult
Education program is funded at $571 million in 2003. Assuming
appropriations at the authorized level for 2004, adjusted for
inflation in subsequent years, CBO estimates that outlays would
total $1.7 billion over the 2004-2008 period.
The bill also would reserve a portion of the total
appropriation for national activities focused on helping states
and local communities address adult literacy through activities
such as technical assistance and evaluation. The National
Leadership Activities program is funded at $9.4 million in
2003.
National Institute for Literacy. H.R. 1261 would authorize
$6.7 million in 2004 and such sums as may be necessary from
2005 through 2009 for the National Institute for Literacy. The
National Institute for Literacy would provide national
leadership in promoting reading research, instruction, and
professional development by disseminating reading research
information. The program is funded at $6.5 million in 2003. CBO
estimates that additional outlays would total about $19 million
over the 2004-2008 period.
Title III: Amendments to the Wagner-Peyser Act. Title III
of H.R. 1261 would repeal significant portions of the Wagner-
Peyser Act, which provide permanent authority for employment
service operations and work incentive grants, and authorizes
provisions for compiling data on labor markets through fiscal
year 2004. These activities received appropriations for fiscal
year 2003 of about $0.9 billion--$0.8 billion for employment
service operations and $0.1 billion for work incentive grants
and labor market information functions.
Title III would repeal the sections of Wagner-Peyser that
authorize grants to states for employment service operations
and work incentive grants, because, under title I of their
bill, these functions would be funded under the WIA. The labor
market information authorization, however, would remain under
Wagner-Peyser authority. For that activity, H.R. 1261 would
authorize such sums as may be necessary for fiscal years 2004
through 2009. CBO estimates this authorization would amount to
$102 million in fiscal year 2004, and $532 million over the
2004-2008 period. The net effect of the amendments to the
Wagner-Peyser Act would be to reduce outlays over the 2004-2008
period by about $3.5 billion.
Title IV: Amendments to the Rehabilitation Act. H.R. 1261
would extend the current ``such sums'' authorizations for
existing discretionary grant programs under the RA as well as
for the Helen Keller National Center. Most of these programs
are authorized through 2004 under GEPA and would be extended
through 2010 under this bill. There are, however, a few
exceptions--the authorizations for the National Council on
Disability, funded in 2003 at $3 million, and the Architectural
and Transportation Barriers Compliance Board, funded in 2003 at
$5 million, expire at the end of 2003 and would be extended
through 2009.
Based on appropriations for 2003 (adjusted for inflation),
discretionary grant authorization levels are estimated to total
$407 million in 2005 and $1.7 billion over the 2005-2008
period. In addition, the authorization for the Helen Keller
National Center is estimated to total $9 million in 2005 and
$57 million over the authorization period. Estimated outlays
reflect the current program spending patterns and total $1.6
billion through 2008.
Effects on direct spending and revenues: H.R. 1261 would
not affect estimated direct spending or receipts because the
reauthorization of the mandatory state grants under RA is
already assumed in the CBO baseline.
Intergovernmental and private-sector impact: H.R. 1261
contains no intergovernmental or private-sector mandates as
defined in UMRA. The bill would reauthorize funding for adult
and youth job training and literacy activities administered by
state and local agencies. Along with the conditions of federal
aid, states' job training programs would be guaranteed minimum
allotments for subsequent fiscal years that equal fiscal year
2003 funding, subject to the availability of appropriations.
Any costs incurred by state, local, and tribal governments
would result from complying with conditions of federal aid, and
would thus be voluntary.
Estimate prepared by: Federal Spending: Workforce
Investment Act and Wagner-Peyser: Christina Hawley Sadoti;
Adult Education and National Institute for Literacy: Donna
Wong; and Rehabilitation Act: Deborah Kalcevic.
Impact on State, Local, and Tribal Governments: Greg
Waring.
Impact on the Private Sector: Ralph Smith.
Estimate approved by: Robert A. Sunshine, Assistant
Director for Budget Analysis.
Statement of General Performance Goals and Objectives
In accordance with Clause (3)(c) of House Rule XIII, the
goal of H.R. 1261 is to enhance the workforce investment system
created under the Workforce Investment Act of 1998 by
strengthening one-stop career centers, providing for more
effective governance arrangements, promoting consumer choice,
establishing a more targeted approach to serving youth, and
improving performance accountability. The bill also improves
our nation's adult education system using practices based on
scientific research, and enhances vocational rehabilitation
services for individuals with disabilities seeking to return to
or enter the integrated workplace. The Committee expects the
Department of Labor and Department of Education to comply with
H.R. 1261 and implement the changes to the law in accordance
with the changes.
Constitutional Authority Statement
Under clause 3(d)(1) of rule XIII of the Rules of the House
of Representatives, the Committee must include a statement
citing the specific powers granted to Congress in the
Constitution to enact the law proposed by H.R. 1261. The
Committee believes that the amendments made by this bill, which
authorize appropriations for the Workforce Investment Act, are
within Congress' authority under Article I, section 8, clause 1
of the Constitution.
Committee Estimate
Clauses 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 1261. However, clause 3(d)(3)(B) 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 402 of the Congressional Budget Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
WORKFORCE INVESTMENT ACT OF 1998
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title; table of contents.
TITLE I--WORKFORCE INVESTMENT SYSTEMS
* * * * * * *
Subtitle B--Statewide and Local Workforce Investment Systems
* * * * * * *
Chapter 3--Workforce Investment Activities Providers
Sec. 121. Establishment of one-stop delivery systems.
* * * * * * *
[Sec. 123. Identification of eligible providers of youth activities.]
* * * * * * *
[Chapter 5--Adult and Dislocated Worker Employment and Training
Activities]
Chapter 5--Comprehensive Employment and Training Activities for Adults
* * * * * * *
Subtitle D--National Programs
* * * * * * *
[Sec. 173. National emergency grants.]
Sec. 173. National dislocated worker grants.
* * * * * * *
[TITLE II--ADULT EDUCATION AND LITERACY
[Sec. 201. Short title.
[Sec. 202. Purpose.
[Sec. 203. Definitions.
[Sec. 204. Home schools.
[Sec. 205. Authorization of appropriations.
[Subtitle A--Adult Education and Literacy Programs
[Chapter 1--Federal Provisions
[Sec. 211. Reservation; grants to eligible agencies; allotments.
[Sec. 212. Performance accountability system.
[Chapter 2--State Provisions
[Sec. 221. State administration.
[Sec. 222. State distribution of funds; matching requirement.
[Sec. 223. State leadership activities.
[Sec. 224. State plan.
[Sec. 225. Programs for corrections education and other
institutionalized individuals.
[Chapter 3--Local Provisions
[Sec. 231. Grants and contracts for eligible providers.
[Sec. 232. Local application.
[Sec. 233. Local administrative cost limits.
[Chapter 4--General Provisions
[Sec. 241. Administrative provisions.
[Sec. 242. National Institute for Literacy.
[Sec. 243. National leadership activities.
[Subtitle B--Repeals
[Sec. 251. Repeals.]
TITLE II--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION
Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Sec. 204. Home schools.
Sec. 205. Authorization of appropriations.
Chapter 1--Federal Provisions
Sec. 211. Reservation of funds; grants to eligible agencies; allotments.
Sec. 212. Performance accountability system.
Sec. 213. Incentive grants for states.
Chapter 2--State Provisions
Sec. 221. State administration.
Sec. 222. State distribution of funds; matching requirement.
Sec. 223. State leadership activities.
Sec. 224. State plan.
Sec. 225. Programs for corrections education and other institutionalized
individuals.
Chapter 3--Local Provisions
Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.
Chapter 4--General Provisions
Sec. 241. Administrative provisions.
Sec. 242. National leadership activities.
* * * * * * *
TITLE V--GENERAL PROVISIONS
Sec. 501. State unified plan.
[Sec. 502. Definitions for indicators of performance.
[Sec. 503. Incentive grants.]
* * * * * * *
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
SEC. 101. DEFINITIONS.
In this title:
(1) Accrued expenditures.--The term ``accrued
expenditures'' includes the sum of actual cash
disbursements for direct charges for goods and
services, the net increase or decrease in the amounts
owed by recipients, goods and other property received
for services performed by employees, contractors,
subgrantees, or other payees, and other amounts
becoming owned for which no current service or
performance is required.
[(1)] (2) Adult.--Except in sections 127 and 132, the
term ``adult'' means an individual who is age 18 or
older.
[(2)] (3) Adult education; adult education and
literacy activities.--The terms ``adult education'' and
``adult education and literacy activities'' have the
meanings given the terms in section 203.
[(3)] (4) Area vocational education school.--The term
``area vocational education school'' has the meaning
given the term in section 3 of the Carl D. Perkins
Vocational and Technical Education Act of 1998.
[(4)] (5) Basic skills deficient.--The term ``basic
skills deficient'' means, with respect to an
individual, that the individual has English reading,
writing, 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.
[(5)] (6) Case management.--The term ``case
management'' means the provision of a client-centered
approach in the
delivery of services, designed--
(A) * * *
* * * * * * *
[(6)] (7) Chief elected official.--The term ``chief
elected
official'' means--
(A) * * *
* * * * * * *
[(7)] (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 expertise and effectiveness in
the field of workforce investment.
[(8)] (9) Customized training.--The term ``customized
training '' means training--
(A) * * *
* * * * * * *
(C) for which the employer pays for [not less
than 50 percent of the cost of the training] a
significant portion of the cost of training, as
determined by the local board.
[(9)] (10) Dislocated worker.--The term ``dislocated
worker'' means an individual who--
(A) * * *
* * * * * * *
[(10)] (11) Displaced homemaker.--The term
``displaced homemaker'' means an individual who has
been providing unpaid services to family members in the
home and who--
(A) * * *
* * * * * * *
[(11)] (12) 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.
[(12)] (13) Eligible provider.--The term ``eligible
provider'', used with respect to--
(A) * * *
* * * * * * *
[(13) Eligible youth.--Except as provided in
subtitles C and D, the term ``eligible youth'' means an
individual who--
[(A) is not less than age 14 and not more
than
age 21;
[(B) is a low-income individual; and
[(C) is an individual who is one or more of
the following:
[(i) Deficient in basic literacy
skills.
[(ii) A school dropout.
[(iii) Homeless, a runaway, or a
foster child.
[(iv) Pregnant or a parent.
[(v) An offender.
[(vi) An individual who requires
additional assistance to complete an
educational program, or to secure and
hold employment.]
* * * * * * *
[(24) 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.]
[(25)] (24) Low-income individual.--The term ``low-
income individual'' means an individual who--
(A) * * *
(B) received an income, or is a member of a
family that received a total family income, for
the 6-month period prior to application for the
program involved (exclusive of unemployment
compensation, child support payments, payments
described in subparagraph (A), and old-age and
survivors insurance benefits received under
section 202 of the Social Security Act (42
U.S.C. 402)) that, in relation to family size,
does not exceed the [higher of--
[(i) the poverty line, for an
equivalent period; or
[(ii) 70 percent of the lower living
standard income level, for an
equivalent period;] poverty line for an
equivalent period;
* * * * * * *
(D) receives or is eligible to receive free
or reduced price lunch;
[(D)] (E) qualifies as a homeless individual,
as defined in subsections (a) and (c) of
section 103 of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11302);
[(E)] (F) is a foster child on behalf of whom
State or local government payments are made; or
[(F)] (G) in cases permitted by regulations
promulgated by the Secretary of Labor, is an
individual with a disability whose own income
meets the requirements of a program described
in subparagraph (A) or of subparagraph (B), but
who is a member of a family whose income does
not meet such requirements.
[(26)] (25) Nontraditional employment.--The term
``nontraditional employment'' refers to occupations or
fields of work for which individuals from one gender
comprise less than 25 percent of the individuals
employed in each such occupation or field of work.
[(27)] (26) Offender.--The term ``offender'' means
any adult or juvenile--
(A) * * *
* * * * * * *
[(28)] (27) Older individual.--The term ``older
individual'' means an individual age 55 or older.
[(29)] (28) One-stop operator.--The term ``one-stop
operator'' means 1 or more entities designated or
certified under section 121(d).
[(30)] (29) One-stop partner.--The term ``one-stop
partner'' means--
(A) * * *
* * * * * * *
[(31)] (30) 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) * * *
* * * * * * *
[(32)] (31) 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.
[(33) Out-of-school youth.--The term ``out-of-school
youth'' means--
[(A) an eligible youth who is a school
dropout; or
[(B) an eligible youth who has received a
secondary school diploma or its equivalent but
is basic skills deficient, unemployed, or
underemployed.]
[(34)] (32) Participant.--The term ``participant''
means an individual who has been determined to be
eligible to participate in and who is receiving
services (except followup services authorized under
this title) under a program authorized by this title.
Participation shall be deemed to commence on the first
day, following determination of eligibility, on which
the individual began receiving subsidized employment,
training, or other services provided under this title.
[(35)] (33) Postsecondary educational institution.--
The term ``postsecondary educational institution''
means an institution of higher education, as defined in
section 102 of the Higher Education Act of 1965.
[(36)] (34) Poverty line.--The term ``poverty line''
means the poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
[(37)] (35) 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.
[(38)] (36) Rapid response activity.--The term
``rapid response activity'' means an activity provided
by a State, or by an entity designated by a State, with
funds provided by the State under section 134(a)(1)(A),
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) * * *
* * * * * * *
[(39)] (37) School dropout.--The term ``school
dropout'' means an individual who is no longer
attending any school and who has not received a
secondary school diploma or its recognized equivalent.
[(40)] (38) Secondary school.--The term ``secondary
school'' has the meaning given the term in section 9101
of the Elementary and Secondary Education Act of 1965.
[(41)] (39) Secretary.--The term ``Secretary'' means
the Secretary of Labor, and the term means such
Secretary for purposes of section 503.
[(42)] (40) State.--The term ``State'' means each of
the several States of the United States, the District
of Columbia, and the Commonwealth of Puerto Rico.
[(43)] (41) State adjusted level of performance.--The
term ``State adjusted level of performance'' means a
level described in clause (iii) or (v) of section
136(b)(3)(A).
[(44)] (42) State board.--The term ``State board''
means a State workforce investment board established
under section 111.
[(45)] (43) State performance measure.--The term
``State performance measure'' means a performance
measure established under section 136(b).
[(46)] (44) Supportive services.--The term
``supportive services'' means services such as
transportation, child care, dependent care, housing,
and needs-related payments, that are necessary to
enable an individual to participate in activities
authorized under this title, consistent with the
provisions of this title.
[(47)] (45) Unemployed individual.--The term
``unemployed individual'' means an individual who is
without a job and who wants and is available for work.
The determination of whether an individual is without a
job 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.
[(48)] (46) Unit of general local government.--The
term ``unit of general local government'' means any
general purpose political subdivision of a State that
has the power to levy taxes and spend funds, as well as
general corporate and police powers.
[(49)] (47) Veteran; related definition.--
(A) * * *
* * * * * * *
[(50)] (48) Vocational education.--The term
``vocational education'' has the meaning given the term
in section 521 of the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C. 2471).
[(51)] (49) Workforce investment activity.--The term
``workforce investment activity'' means an employment
and training activity, and a youth activity.
[(52)] (50) Youth activity.--The term ``youth
activity'' means an activity described in section 129
that is carried out for eligible youth (or as described
in section 129(c)(5)).
[(53)] (51) Youth council.--The term ``youth
council'' means a council established under section
117(h).
Subtitle B--Statewide and Local Workforce Investment Systems
SEC. 106. PURPOSE.
The purpose of this subtitle is to provide workforce
investment activities, through statewide and local workforce
investment systems, that increase the employment, retention,
and earnings of participants, and increase occupational skill
attainment by participants, and, as a result, improve the
quality of the workforce, reduce welfare dependency, and
enhance the productivity and competitiveness of the Nation. It
is also the purpose of this subtitle to provide workforce
investment activities in a manner that promotes the informed
choice of participants and actively involves participants in
decisions affecting their participation in such activities.
CHAPTER 1--STATE PROVISIONS
SEC. 111. STATE WORKFORCE INVESTMENT BOARDS.
(a) * * *
(b) Membership.--
(1) In general.--The State Board shall include--
(A) * * *
* * * * * * *
[(C) representatives appointed by the
Governor, who are--
[(i) representatives of business in
the State, who--
[(I) are owners of
businesses, chief executives or
operating officers of
businesses, and other business
executives or employers with
optimum policymaking or hiring
authority, including members of
local boards described in
section 117(b)(2)(A)(i);
[(II) represent businesses
with employment opportunities
that reflect the employment
opportunities of the State; and
[(III) are appointed from
among individuals nominated by
State business organizations
and business trade
associations;
[(ii) chief elected officials
(representing both cities and counties,
where appropriate);
[(iii) representatives of labor
organizations, who have been nominated
by State labor federations;
[(iv) representatives of individuals
and organizations that have experience
with respect to youth activities;
[(v) representatives of individuals
and organizations that have experience
and expertise in the delivery of
workforce investment activities,
including chief executive officers of
community colleges and community-based
organizations within the State;
[(vi)(I) the lead State agency
officials with responsibility for the
programs and activities that are
described in section 121(b) and carried
out by one-stop partners; and
[(II) in any case in which no lead
State agency official has
responsibility for such a program,
service, or activity, a representative
in the State with expertise relating to
such program, service, or activity; and
[(vii) such other representatives and
State agency officials as the Governor
may designate, such as the State agency
officials responsible for economic
development and juvenile justice
programs in the State.]
(C) representatives appointed by the
Governor, who are--
(i)(I) the lead State agency
officials with responsibility for the
programs and activities that are
described in section 121(b) and carried
out by one-stop partners;
(II) in any case in which no lead
State agency official has
responsibility for such a program or
activity, a representative in the State
with expertise relating to such program
or activity; and
(III) if not included under subclause
(I), the director of the designated
State entity responsible for carrying
out title I of the Rehabilitation Act
(29 U.S.C. 701 et seq.);
(ii) the State agency officials
responsible for economic development;
(iii) representatives of business in
the State who--
(I) are owners of businesses,
chief executive or operating
officers of businesses, and
other business executives or
employers with optimum policy
making or hiring authority,
including members of local
boards described in section
117(b)(2)(A)(i);
(II) represent businesses
with employment opportunities
that reflect employment
opportunities in the State; and
(III) are appointed from
among individuals nominated by
State business organizations
and business trade
associations;
(iv) chief elected officials
(representing both cities and counties,
where appropriate);
(v) representatives of labor
organizations, who have been nominated
by State labor federations; and
(vi) such other representatives and
State agency officials as the Governor
may designate.
* * * * * * *
(3) Majority.--A majority of the members of the State
Board shall be representatives described in paragraph
[(1)(C)(i)] (1)(C)(iii).
(c) Chairperson.--The Governor shall select a chairperson for
the State Board from among the representatives described in
subsection [(b)(1)(C)(i)] (b)(1)(C)(iii).
(d) Functions.--The State Board shall assist the Governor
in--
(1) * * *
* * * * * * *
[(3) commenting at least once annually on the
measures taken pursuant to section 113(b)(14) of the
Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C 2323(b)(14));]
(3) development and review of statewide policies
affecting the integrated provision of services through
the one-stop delivery system described in section 121,
including--
(A) the development of criteria for, and the
issuance of, certifications of one-stop
centers;
(B) the criteria for the allocation of one-
stop center infrastructure funding under
section 121(h), and oversight of the use of
such funds;
(C) approaches to facilitating equitable and
efficient cost allocation in one-stop delivery
systems; and
(D) such other matters that may promote
statewide objectives for, and enhance the
performance of, one-stop delivery systems
within the State;
(4) designation of local areas as required in section
116 and the development of State criteria relating to
the appointment and certification of local boards under
section 117;
(5) development of allocation formulas for the
distribution of funds for adult employment and training
activities and youth activities to local areas as
permitted under [sections 128(b)(3)(B) and
133(b)(3)(B)] sections 128(b)(3) and 133(b)(3);
* * * * * * *
(9) development of an application for an incentive
grant under section [503] 136(i).
[(e) Alternative Entity.--
[(1) In general.--For purposes of complying with
subsections (a), (b), and (c), a State may use any
State entity (including a State council, State
workforce development board, combination of regional
workforce development boards, or similar entity) that--
[(A) was in existence on December 31, 1997;
[(B)(i) was established pursuant to section
122 or title VII of the Job Training
Partnership Act, as in effect on December 31,
1997; or
[(ii) is substantially similar to the State
board described in subsections (a), (b), and
(c); and
[(C) includes representatives of business in
the State and representatives of labor
organizations in the State.
[(2) References.--References in this Act to a State
board shall be considered to include such an entity.]
(e) Authority to Hire Staff.--The State board may hire staff
to assist in carrying out the functions described in subsection
(d).
* * * * * * *
SEC. 112. STATE PLAN.
(a) In General.--For a State to be eligible to receive an
allotment under section 127 or 132, or to receive financial
assistance under the Wagner-Peyser Act (29 U.S.C. 49 et seq.),
the Governor of the State shall submit to the Secretary for
consideration by the Secretary, a single State plan (referred
to in this title as the ``State plan'') that outlines a [5-year
strategy] 2-year strategy for the statewide workforce
investment system of the State and that meets the requirements
of section 111 and this section.
(b) Contents.--The State plan shall include--
(1) * * *
* * * * * * *
(17) with respect to the employment and training
activities authorized in section 134--
(A) a description of--
(i) * * *
* * * * * * *
(iii) the procedures the local boards
in the State will use to identify
eligible providers of training services
described in section 134(d)(4) (other
than on-the-job training or customized
training), as required under section
122; [and]
[(iv) how the State will serve the
employment and training needs of
dislocated workers (including displaced
homemakers), low-income individuals
(including recipients of public
assistance), individuals training for
nontraditional employment, and other
individuals with multiple barriers to
employment (including older individuals
and individuals with disabilities);
and]
(iv) how the State will serve the
employment and training needs of
dislocated workers (including displaced
homemakers and formerly self-employed
and transitioning farmers, ranchers,
and fisherman) low income individuals
(including recipients of public
assistance), homeless individuals, ex-
offenders, individuals training for
nontraditional employment, and other
individuals with multiple barriers to
employment (including older
individuals);
(v) how the State will serve the
employment and training needs of
individuals with disabilities,
consistent with section 188 and
Executive Order 13217 (relating to
community-based alternatives for
individuals with disabilities)
including the provision of outreach,
intake, assessments, and service
delivery, the development of
performance measures, and the training
of staff; and
* * * * * * *
(d) Modifications to Plan.--A State may submit modifications
to a State plan in accordance with the requirements of this
section and section 111 as necessary during the [5-year] 2-year
period covered by the plan.
CHAPTER 2--LOCAL PROVISIONS
SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.
(a) Designation of Areas.--
(1) In general.--
(A) * * *
(B) Considerations.--In making the
designation of local areas, the Governor shall
take into consideration the following:
(i) * * *
* * * * * * *
(vi) The extent to which such local
areas will promote efficiency in the
administration and provision of
services.
[(2) Automatic designation.--The Governor shall
approve any request for designation as a local area--
[(A) from any unit of general local
government with a population of 500,000 or
more;
[(B) of the area served by a rural
concentrated employment program grant recipient
of demonstrated effectiveness that served as a
service delivery area or substate area under
the Job Training Partnership Act, if the grant
recipient has submitted the request; and
[(C) of an area that served as a service
delivery area under section 101(a)(4)(A)(ii) of
the Job Training Partnership Act (as in effect
on the day before the date of enactment of this
Act) in a State that has a population of not
more than 1,100,000 and a population density
greater than 900 persons per square mile.]
(2) Automatic designation.--
(A) In general.--Except as provided in
subparagraph (B) of this paragraph and
subsection (b), the Governor shall approve a
request for designation as a local area from--
(i) any unit of general local
government with a population of 500,000
or more; and
(ii) an area served by a rural
concentrated employment program grant
recipient that served as a service
delivery area or substate area under
the Job training Partnership Act (29
U.S.C. 1501 et seq.),
for the 2-year period covered by a State plan
under section 112 if such request is made not
later than the date of the submission of the
State plan.
(B) Continued designation based on
performance.--The Governor may deny a request
for designation submitted pursuant to
subparagraph (A) if such unit of government was
designated as a local area for the preceding 2-
year period covered by a State plan and the
Governor determines that such local area did
not perform successfully during such period.
(c) Regional Planning and Cooperation.--
(1) Planning.--As part of the process for developing
the State plan, a State may require regional planning
by local boards for a designated region in the State.
The State may require the local boards for a designated
region to participate in a regional planning process
that results in the establishment of regional
performance measures for workforce investment
activities authorized under this subtitle. The State
may award regional incentive grants to the designated
regions that meet or exceed the regional performance
measures. The State may require the local boards for
the designated region to prepare a single regional plan
that incorporates the elements of the local plan under
section 118 and that is submitted and approved in lieu
of separate local plans under such section.
* * * * * * *
SEC. 117. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) * * *
(b) Membership.--
(1) * * *
(2) Composition.--Such criteria shall require, at a
minimum, that the membership of each local board--
(A) shall include--
(i) representatives of business in
the local area, who--
(I) * * *
(II) represent businesses
with employment opportunities
that reflect the employment
opportunities of the local
area, businesses that are in
the leading industries in the
local area, and large and small
businesses in the local area;
and
* * * * * * *
[(ii) representatives of local
educational entities, including
representatives of local educational
agencies, local school boards, entities
providing adult education and literacy
activities, and postsecondary
educational institutions (including
representatives of community colleges,
where such entities exist), selected
from among individuals nominated by
regional or local educational agencies,
institutions, or organizations
representing such local educational
entities;]
(ii) superintendents of the local
secondary school systems and the
presidents or chief executive officers
of postsecondary educational
institutions (including community
colleges, where such entities exist);
* * * * * * *
(iv) representatives of community-
based organizations (including
organizations representing individuals
with disabilities and veterans, for a
local area in which such organizations
are present)[;] and faith-based
organizations; and
* * * * * * *
[(vi) representatives of each of the
one-stop
partners; and]
(3) Authority of board members and representation.--
Members of the board that represent organizations,
agencies, or other entities shall be individuals with
optimum policymaking authority within the
organizations, agencies, or entities. The members of
the board shall represent diverse geographic sections
within the local area.
* * * * * * *
(d) Functions of Local Board.--The functions of the local
board shall include the following:
(1) * * *
(2) Selection of operators and providers.--
(A) * * *
(B) Selection of youth providers.--Consistent
with section 123, the local board shall
identify eligible providers of youth activities
in the local area [by awarding grants or
contracts on a competitive basis, based on the
recommendations of the youth council].
* * * * * * *
(4) Program oversight.--The local board, in
partnership with the chief elected official, shall
conduct oversight with respect to local programs of
youth activities authorized under section 129, local
employment and training activities authorized under
section 134, and the one-stop delivery system in the
local area and ensure the appropriate use and
management of the funds provided under this title for
such programs, activities, and system.
* * * * * * *
[(h) Youth Council.--
[(1) Establishment.--There shall be established, as a
subgroup within each local board, a youth council
appointed by the local board, in cooperation with the
chief elected official for the local area.
[(2) Membership.--The membership of each youth
council--
[(A) shall include--
[(i) members of the local board
described in subparagraph (A) or (B) of
subsection (b)(2) with special interest
or expertise in youth policy;
[(ii) representatives of youth
service agencies, including juvenile
justice and local law enforcement
agencies;
[(iii) representatives of local
public housing authorities;
[(iv) parents of eligible youth
seeking assistance under this subtitle;
[(v) individuals, including former
participants, and representatives of
organizations, that have experience
relating to youth activities; and
[(vi) representatives of the Job
Corps, as appropriate; and
[(B) may include such other individuals as
the chairperson of the local board, in
cooperation with the chief elected official,
determines to be appropriate.
[(3) Relationship to local board.--Members of the
youth council who are not members of the local board
described in subparagraphs (A) and (B) of subsection
(b)(2) shall be voting members of the youth council and
nonvoting members of the board.
[(4) Duties.--The duties of the youth council
include--
[(A) developing the portions of the local
plan relating to eligible youth, as determined
by the chairperson of the local board;
[(B) subject to the approval of the local
board and consistent with section 123--
[(i) recommending eligible providers
of youth activities, to be awarded
grants or contracts on a competitive
basis by the local board to carry out
the youth activities; and
[(ii) conducting oversight with
respect to the eligible providers of
youth activities, in the local area;
[(C) coordinating youth activities authorized
under
section 129 in the local area; and
[(D) other duties determined to be
appropriate by the chairperson of the local
board.
[(i) Alternative Entity.--
[(1) In general.--For purposes of complying with
subsections (a), (b), and (c), and paragraphs (1) and
(2) of subsection (h), a State may use any local entity
(including a local council, regional workforce
development board, or similar entity) that--
[(A) is established to serve the local area
(or the service delivery area that most closely
corresponds to the local area);
[(B) is in existence on December 31, 1997;
[(C)(i) is established pursuant to section
102 of the Job Training Partnership Act, as in
effect on December 31, 1997; or
[(ii) is substantially similar to the local
board described in subsections (a), (b), and
(c), and paragraphs (1) and (2) of subsection
(h); and
[(D) includes--
[(i) representatives of business in
the local area; and
[(ii)(I) representatives of labor
organizations (for a local area in
which employees are represented by
labor organizations), nominated by
local labor federations; or
[(II) other representatives of
employees in the local area (for a
local area in which no employees are
represented by such organizations).
[(2) References.--References in this Act to a local
board or a youth council shall be considered to include
such an entity or a subgroup of such an entity,
respectively.]
(h) Establishment of Councils.--The local board may establish
councils to provide information and advice to assist the local
board in carrying out activities under this title. Such
councils may include a council composed of one-stop partners to
advise the local board on the operation of the one-stop
delivery system, a youth council composed of experts and
stakeholders in youth programs to advise the local board on
activities for youth, and such other councils as the local
board determines are appropriate.
SEC. 118. LOCAL PLAN.
(a) In General.--Each local board shall develop and submit to
the Governor a comprehensive [5-year] 2-year local plan
(referred to in this title as the ``local plan''), in
partnership with the appropriate chief elected official. The
plan shall be consistent with the State plan.
(b) Contents.--The local plan shall include--
(1) * * *
[(2) a description of the one-stop delivery system to
be established or designated in the local area,
including--
[(A) a description of how the local board
will ensure the continuous improvement of
eligible providers of services through the
system and ensure that such providers meet the
employment needs of local employers and
participants; and
[(B) a copy of each memorandum of
understanding described in section 121(c)
(between the local board and each of the one-
stop partners) concerning the operation of the
one-stop delivery system in the local area;]
(2) a description of the one-stop delivery system to
be established or designated in the local area,
including a description of how the local board will
ensure the continuous improvement of eligible providers
of services through the system and ensure that such
providers meets the employment needs of local employers
and participants.
* * * * * * *
(4) a description and assessment of the type and
availability of adult [and dislocated worker]
employment and training activities in the local area;
* * * * * * *
CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES PROVIDERS
SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.
(a) * * *
(b) One-Stop Partners.--
(1) * * *
(2) Additional partners.--
(A) * * *
(B) Programs.--The programs referred to in
subparagraph (A) may include--
(i) * * *
* * * * * * *
(iv) programs authorized under the
National and Community Service Act of
1990 (42 U.S.C. 12501 et seq.); [and]
(v) other appropriate Federal, State,
or local
programs, including programs in the
private sector[.];
(vi) employment and training programs
administered by the Social Security
Administration, including the Ticket to
Work program (established by Public Law
106-170);
(vii) programs under part D of title
IV of the Social Security Act (42
U.S.C. 451 et seq.) (relating to child
support enforcement); and
(viii) programs carried out in the
local area for individuals with
disabilities, including programs
carried out by State agencies relating
to mental health, mental retardation,
and developmental disabilities, State
Medicaid agencies, State Independent
Living Councils, and Independent Living
Centers.
* * * * * * *
[(e) Established One-Stop Delivery System.--If a one-stop
delivery system has been established in a local area prior to
the date of enactment of this Act, the local board, the chief
elected official, and the Governor involved may agree to
certify an entity carrying out activities through the system as
a one-stop operator for purposes of subsection (d), consistent
with the requirements of subsection (b), of the memorandum of
understanding, and of section 134(c).]
[(c)] (e) Establishment of One-Stop Delivery System.--
(1) In general.--There shall be established in a
State that receives an allotment under section 132(b) a
one-stop delivery system, which--
(A) shall provide the core services described
in [subsection (d)(2)] section 134(c)(2);
(B) shall provide access to intensive
services and training services as described in
paragraphs (3) and (4) of [subsection (d)]
section 134(c), including serving as the point
of access to individual training accounts for
training services to participants in accordance
with [subsection (d)(4)(G)] section
134(c)(4)(G);
(C) shall provide access to the activities
carried out under [subsection (e)] section
134(d), if any;
(D) shall provide access to programs and
activities carried out by one-stop partners and
described in [section 121(b)] subsection (b);
[and]
[(E) shall provide access to the information
described in section 15 of the Wagner-Peyser
Act and all job search, placement, recruitment,
and other labor exchange services authorized
under the Wagner-Peyser Act (29 U.S.C. 49 et
seq.).]
(E) shall provide access to the information
described in section 15(e) of the Wagner-Peyser
Act (29 U.S.C. 49l-2(e)).
* * * * * * *
(g) Certification of One-Stop Centers.--
(1) In general.--The State board shall establish
procedures and criteria for periodically certifying
one-stop center for the purpose of awarding the one-
stop infrastructure funding described in subsection
(h).
(2) Criteria.--The criteria for certification under
this subsection shall include minimum standards
relating to the scope and degree of service integration
achieved by the centers involving the programs provided
by the one-stop partners.
(3) Effect of certification.--One-stop centers
certified under this subsection shall be eligible to
receive the infrastructure grants authorized under
subsection (h).
(h) One-Stop Infrastructure Funding.--
(1) Partner contributions.--
(A) Provision of funds.--Notwithstanding any
other provision of law, as determined under
subparagraph (B), a portion of the Federal
funds provided to the State and areas within
the State under the Federal laws authorizing
the one-stop partner programs described in
subsection (b) for a fiscal year shall be
provided to the Governor by such programs to
carry out this subsection.
(B) Determination.--The portion of funds to
be provided under subparagraph (A) by each one-
stop partner shall be determined by the
Governor, after consultation with the State
board.
(2) Allocation by governor.--From the funds provided
under paragraph (1), the Governor shall allocate funds
to local areas for the purposes of assisting in paying
the costs of the infrastructure of One-Stop centers
certified under subsection (g).
(3) Allocation formula.--The State board shall
develop a formula to be used by the Governor to
allocate the funds described in paragraph (1). The
formula shall include such factors as the State board
determines are appropriate, which may include factors
such as the number of centers in the local area that
have been certified, the population served by such
centers, and the performance of such centers.
(4) Costs of infrastructure.--For purposes of this
subsection, the term ``costs of infrastructure'' means
the nonpersonnel costs that are necessary for the
general operation of a one-stop center, including the
rental costs of the facilities, the costs of utilities
and maintenance, equipment (including adaptive
technology for individuals with disabilities),
strategic planning activities for the center, and
common outreach activities.
(i) Other Funds.--
(1) In general.--In addition to the funds provided to
carry out subsection (h), a portion of funds made
available under Federal law authorizing the one-stop
partner programs described in subsection (b) shall be
used to pay the costs relating to the operation of the
one-stop delivery system that are not paid for from the
funds provided under subsection (h), to the extent not
inconsistent with the Federal law involved including--
(A) infrastructure costs that are in excess
of the funds provided under subsection (h);
(B) common costs that are in addition to the
costs of infrastructure; and
(C) the costs of the provision of core
services applicable to each program.
(2) Determination and guidance.--The method for
determining the appropriate portion of funds to be
provided by each program under paragraph (1) shall be
determined as part of the memorandum of understanding
under subsection (c). The State board shall provide
guidance to facilitate the determination of appropriate
funding allocation in local areas.
[SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
[(a) Eligibility Requirements.--
[(1) In general.--Except as provided in subsection
(h), to be identified as an eligible provider of
training services described in section 134(d)(4)
(referred to in this section as ``training services'')
in a local area and to be eligible to receive funds
made available under section 133(b) for the provision
of training services, a provider of such services shall
meet the requirements of this section.
[(2) Providers.--Subject to the provisions of this
section, to be eligible to receive the funds, the
provider shall be--
[(A) a postsecondary educational institution
that--
[(i) is eligible to receive Federal
funds under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070
et seq.); and
[(ii) provides a program that leads
to an associate degree, baccalaureate
degree, or certificate;
[(B) an entity that carries out programs
under the Act of August 16, 1937 (commonly
known as the ``National Apprenticeship Act'';
50 Stat. 664, chapter 663; 29 U.S.C. 50 et
seq.); or
[(C) another public or private provider of a
program of training services.
[(b) Initial Eligibility Determination.--
[(1) Postsecondary educational institutions and
entities carrying out apprenticeship programs.--To be
initially eligible to receive funds as described in
subsection (a) to carry out a program described in
subparagraph (A) or (B) of subsection (a)(2), a
provider described in subparagraph (A) or (B),
respectively, of subsection (a)(2) shall submit an
application, to the local board for the local area in
which the provider desires to provide training
services, at such time, in such manner, and containing
such information as the local board may require.
[(2) Other eligible providers.--
[(A) Procedure.--Each Governor of a State
shall establish a procedure for use by local
boards in the State in determining the initial
eligibility of a provider described in
subsection (a)(2)(C) to receive funds as
described in subsection (a) for a program of
training services, including the initial
eligibility of--
[(i) a postsecondary educational
institution to receive such funds for a
program not described in subsection
(a)(2)(A); and
[(ii) a provider described in
subsection (a)(2)(B) to receive such
funds for a program not described in
subsection (a)(2)(B).
[(B) Recommendations.--In developing such
procedure, the Governor shall solicit and take
into consideration the recommendations of local
boards and providers of training services
within the State.
[(C) Opportunity to submit comments.--The
Governor shall provide an opportunity, during
the development of the procedure, for
interested members of the public, including
representatives of business and labor
organizations, to submit comments on such
procedure.
[(D) Requirements.--In establishing the
procedure, the Governor shall require that, to
be initially eligible to receive funds as
described in subsection (a) for a program, a
provider described in subsection (a)(2)(C)--
[(i) shall submit an application, to
the local board for the local area in
which the provider desires to provide
training services, at such time and in
such manner as may be required, and
containing a description of the
program;
[(ii) if the provider provides
training services through a program on
the date of application, shall include
in the application an appropriate
portion of the performance information
and program cost information described
in subsection (d) for the program, as
specified in the procedure, and shall
meet appropriate levels of performance
for the program, as specified in the
procedure; and
[(iii) if the provider does not
provide training services on such date,
shall meet appropriate requirements, as
specified in the procedure.
[(c) Subsequent Eligibility Determination.--
[(1) Procedure.--Each Governor of a State shall
establish a procedure for use by local boards in the
State in determining the eligibility of a provider
described in subsection (a)(2) to continue to receive
funds as described in subsection (a) for a program
after an initial period of eligibility under subsection
(b) (referred to in this section as ``subsequent
eligibility'').
[(2) Recommendations.--In developing such procedure,
the Governor shall solicit and take into consideration
the recommendations of local boards and providers of
training services within the State.
[(3) Opportunity to submit comments.--The Governor
shall provide an opportunity, during the development of
the procedure, for interested members of the public,
including representatives of business and labor
organizations, to submit comments on such procedure.
[(4) Considerations.--In developing such procedure,
the Governor shall ensure that the procedure requires
the local boards to take into consideration, in making
the determinations of subsequent eligibility--
[(A) the specific economic, geographic, and
demographic factors in the local areas in which
providers seeking eligibility are located; and
[(B) the characteristics of the populations
served by providers seeking eligibility,
including the demonstrated difficulties in
serving such populations, where applicable.
[(5) Requirements.--In establishing the procedure,
the Governor shall require that, to be eligible to
continue to receive funds as described in subsection
(a) for a program after the initial period of
eligibility, a provider described in subsection (a)(2)
shall--
[(A) submit the performance information and
program cost information described in
subsection (d)(1) for the program and any
additional information required to be submitted
in accordance with subsection (d)(2) for the
program annually to the appropriate local board
at such time and in such manner as may be
required; and
[(B) annually meet the performance levels
described in paragraph (6) for the program, as
demonstrated utilizing quarterly records
described in section 136, in a manner
consistent with section 136.
[(6) Levels of performance.--
[(A) In general.--At a minimum, the procedure
described in paragraph (1) shall require the
provider to meet minimum acceptable levels of
performance based on the performance
information referred to in paragraph (5)(A).
[(B) Higher levels of performance
eligibility.--The local board may require
higher levels of performance than the levels
referred to in subparagraph (A) for subsequent
eligibility to receive funds as described in
subsection (a).
[(d) Performance and Cost Information.--
[(1) Required information.--For a provider of
training services to be determined to be subsequently
eligible under subsection (c) to receive funds as
described in subsection (a), such provider shall, under
subsection (c), submit--
[(A) verifiable program-specific performance
information consisting of--
[(i) program information, including--
[(I) the program completion
rates for all individuals
participating in the applicable
program conducted by the
provider;
[(II) the percentage of all
individuals participating in
the applicable program who
obtain unsubsidized employment,
which may also include
information specifying the
percentage of the individuals
who obtain unsubsidized
employment in an occupation
related to the program
conducted; and
[(III) the wages at placement
in employment of all
individuals participating in
the applicable program; and
[(ii) training services information
for all participants who received
assistance under section 134 to
participate in the applicable program,
including--
[(I) the percentage of
participants who have completed
the applicable program and who
are placed in unsubsidized
employment;
[(II) the retention rates in
unsubsidized employment of
participants who have completed
the applicable program, 6
months after the first day of
the employment;
[(III) the wages received by
participants who have completed
the applicable program, 6
months after the first day of
the employment involved; and
[(IV) where appropriate, the
rates of licensure or
certification, attainment of
academic degrees or
equivalents, or attainment of
other measures of skills, of
the graduates of the applicable
program; and
[(B) information on program costs (such as
tuition and fees) for participants in the
applicable program.
[(2) Additional information.--Subject to paragraph
(3), in addition to the performance information
described in paragraph (1)--
[(A) the Governor may require that a provider
submit, under subsection (c), such other
verifiable program-specific performance
information as the Governor determines to be
appropriate to obtain such subsequent
eligibility, which may include information
relating to--
[(i) retention rates in employment
and the subsequent wages of all
individuals who complete the applicable
program;
[(ii) where appropriate, the rates of
licensure or certification of all
individuals who complete the program;
and
[(iii) 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 through
the program, where applicable; and
[(B) the Governor, or the local board, may
require a provider to submit, under subsection
(c), other verifiable program-specific
performance information to obtain such
subsequent eligibility.
[(3) Conditions.--
[(A) In general.--If the Governor or a local
board requests additional information under
paragraph (2) that imposes extraordinary costs
on providers, or if providers experience
extraordinary costs in the collection of
information required under paragraph
(1)(A)(ii), the Governor or the local board
shall provide access to cost-effective methods
for the collection of the information involved,
or the Governor shall provide additional
resources to assist providers in the collection
of such information from funds made available
as described in sections 128(a) and 133(a)(1),
as appropriate.
[(B) Higher education eligibility
requirements.--The local board and the
designated State agency described in subsection
(i) 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 a provider for purposes of enabling the
provider to fulfill the applicable requirements
of this subsection, if such information is
substantially similar to the information
otherwise required under this subsection.
[(e) Local Identification.--
[(1) In general.--The local board shall place on a
list providers submitting an application under
subsection (b)(1) and providers determined to be
initially eligible under subsection (b)(2), and retain
on the list providers determined to be subsequently
eligible under subsection (c), to receive funds as
described in subsection (a) for the provision of
training services in the local area served by the local
board. The list of providers shall be accompanied by
any performance information and program cost
information submitted under subsection (b) or (c) by
the provider.
[(2) Submission to state agency.--On placing or
retaining a provider on the list, the local board shall
submit, to the designated State agency described in
subsection (i), the list and the performance
information and program cost information referred to in
paragraph (1). If the agency determines, within 30 days
after the date of the submission, that the provider
does not meet the performance levels described in
subsection (c)(6) for the program (where applicable),
the agency may remove the provider from the list for
the program. The agency may not remove from the list an
agency submitting an application under subsection
(b)(1).
[(3) Identification of eligible providers.--A
provider who is placed or retained on the list under
paragraph (1), and is not removed by the designated
State agency under paragraph (2), for a program, shall
be considered to be identified as an eligible provider
of training services for the program.
[(4) Availability.--
[(A) State list.--The designated State agency
shall compile a single list of the providers
identified under paragraph (3) from all local
areas in the State and disseminate such list,
and the performance information and program
cost information described in paragraph (1), to
the one-stop delivery systems within the State.
Such list and information shall be made widely
available to participants in employment and
training activities authorized under section
134 and others through the one-stop delivery
system.
[(B) Selection from state list.--Individuals
eligible to receive training services under
section 134(d)(4) shall have the opportunity to
select any of the eligible providers, from any
of the local areas in the State, that are
included on the list described in subparagraph
(A) to provide the services, consistent with
the requirements of section 134.
[(5) Acceptance of individual training accounts by
other states.--States may enter into agreements, on a
reciprocal basis, to permit eligible providers of
training services in a State to accept individual
training accounts provided in another State.
[(f ) Enforcement.--
[(1) Accuracy of information.--If the designated
State agency, after consultation with the local board
involved, determines that an eligible provider or
individual supplying information on behalf of the
provider intentionally supplies inaccurate information
under this section, the agency shall terminate the
eligibility of the provider to receive funds described
in subsection (a) for any program for a period of time,
but not less than 2 years.
[(2) Noncompliance.--If the designated State agency,
or the local board working with the State agency,
determines that an eligible provider described in
subsection (a) substantially violates any requirement
under this Act, the agency, or the local board working
with the State agency, may terminate the eligibility of
such provider to receive funds described in subsection
(a) for the program involved or take such other action
as the agency or local board determines to be
appropriate.
[(3) 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.
[(4) Construction.--This subsection and subsection
(g) shall be construed to provide remedies and
penalties that supplement, but do not supplant, other
civil and criminal remedies and penalties.
[(g) Appeal.--The Governor shall establish procedures for
providers of training services to appeal a denial of
eligibility by the local board or the designated State agency
under subsection (b), (c), or (e), a termination of eligibility
or other action by the board or agency under subsection (f ),
or a denial of eligibility by a one-stop operator under
subsection (h). Such procedures shall provide an opportunity
for a hearing and prescribe appropriate time limits to ensure
prompt resolution of the appeal.
[(h) On-the-Job Training or Customized Training Exception.--
[(1) In general.--Providers of on-the-job training or
customized training shall not be subject to the
requirements of subsections (a) through (e).
[(2) Collection and dissemination of information.--A
one-stop operator in a local area shall collect such
performance information from on-the-job training and
customized training providers as the Governor may
require, determine whether the providers meet such
performance criteria as the Governor may require, and
disseminate information identifying providers that meet
the criteria as eligible providers, and the performance
information, through the one-stop delivery system.
Providers determined to meet the criteria shall be
considered to be identified as eligible providers of
training services.
[(i) Administration.--The Governor shall designate a State
agency to make the determinations described in subsection
(e)(2), take the enforcement actions described in subsection (f
), and carry out other duties described in this section.
[SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
[From funds allocated under paragraph (2)(A) or (3) of
section 128(b) to a local area, the local board for such area
shall identify eligible providers of youth activities by
awarding grants or contracts on a competitive basis, based on
the recommendations of the youth council and on the criteria
contained in the State plan, to the providers to carry out the
activities, and shall conduct oversight with respect to the
providers, in the local area.]
SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
(a) In General.--The Governor shall establish criteria and
procedures regarding the eligibility of providers of training
services described in section 134(c)(4) to receive funds
provided under section 133(b) for the provision of such
training services.
(b) Criteria.--
(1) In general.--The criteria established pursuant to
subsection (a) shall take into account the performance
of providers of training services with respect to the
indicators described in section 136 or other
appropriate indicators (taking into consideration the
characteristics of the population served and relevant
economic conditions), and such other factors as the
Governor determines are appropriate to ensure the
quality of services, the accountability of providers,
and the informed choice of participants under chapter
5. Such criteria shall require that the provider submit
appropriate, accurate and timely information to the
State for purposes of carrying out subsection (d). The
criteria shall also provide for periodic review and
renewal of eligibility under this section for providers
of training services. The Governor may authorize local
areas in the State to establish additional criteria or
to modify the criteria established by the Governor
under this section for purposes of determining the
eligibility of providers of training services to
provide such services in the local area.
(2) Limitation.--In carrying out the requirements of
this subsection, no personally identifiable information
regarding a student, including Social Security number,
student identification number, or other identifier, may
be disclosed without the prior written consent of the
parent or eligible student in compliance with section
444 of the General Education Provisions Act (20 U.S.C.
1232g).
(c) Procedures.--The procedures established under subsection
(a) shall identify the application process for a provider of
training services to become eligible to receive funds under
section 133(b), and identify the respective roles of the State
and local areas in receiving and reviewing applications and in
making determinations of eligibility based on the criteria
established under this section. The procedures shall also
establish a process for a provider of training services to
appeal a denial or termination of eligibility under this
section that includes an opportunity for a hearing and
prescribes appropriate time limits to ensure prompt resolution
of the appeal.
(d) Information to Assist Participants in Choosing
Providers.--In order to facilitate and assist participants
under chapter 5 in choosing providers of training services, the
Governor shall ensure that an appropriate list or lists of
providers determined eligible under this section in the State,
accompanied by such information as the Governor determines is
appropriate, is provided to the local boards in the State to be
made available to such participants and to members of the
public through the one-stop delivery system in the State.
(e) Agreements With Other States.--States may enter into
agreements, on a reciprocal basis, to permit eligible providers
of training services to accept individual training accounts
provided in another State.
(f) Recommendations.--In developing the criteria, procedures,
and information required under this section, the Governor shall
solicit and take into consideration the recommendations of
local boards and providers of training services within the
State.
(g) Opportunity to Submit Comments.--During the development
of the criteria, procedures, and information required under
this section, the Governor shall provide an opportunity for
interested members of the public, including representatives of
business and labor organizations, to submit comments regarding
such criteria, procedures, and information.
CHAPTER 4--YOUTH ACTIVITIES
* * * * * * *
SEC. 127. STATE ALLOTMENTS.
[(a) In General.--The Secretary shall--
[(1) for each fiscal year in which the amount
appropriated under section 137(a) exceeds
$1,000,000,000, reserve a portion determined under
subsection (b)(1)(A) of the amount appropriated under
section 137(a) for use under sections 167 (relating to
migrant and seasonal farmworker programs) and 169
(relating to youth opportunity grants); and
[(2) use the remainder of the amount appropriated
under section 137(a) for a fiscal year to make
allotments and grants in accordance with subparagraphs
(B) and (C) of subsection (b)(1) and make funds
available for use under section 166 (relating to Native
American programs).
[(b) Allotment Among States.--
[(1) Youth activities.--
[(A) Youth opportunity grants.--
[(i) In general.--For each fiscal
year in which the amount appropriated
under section 137(a) exceeds
$1,000,000,000, the Secretary shall
reserve a portion of the amount to
provide youth opportunity grants and
other activities under section 169
(relating to youth opportunity grants)
and provide youth activities under
section 167 (relating to migrant and
seasonal farmworker programs).
[(ii) Portion.--The portion referred
to in clause (i) shall equal, for a
fiscal year--
[(I) except as provided in
subclause (II), the difference
obtained by subtracting
$1,000,000,000 from the amount
appropriated under section
137(a) for the fiscal year; or
[(II) for any fiscal year in
which the amount is
$1,250,000,000 or greater,
$250,000,000.
[(iii) Youth activities for
farmworkers.--From the portion
described in clause (i) for a fiscal
year, the Secretary shall make
available 4 percent of such portion to
provide youth activities under section
167.
[(iv) Role model academy project.--
From the portion described in clause
(i) for fiscal year 1999, the Secretary
shall make available such sums as the
Secretary determines to be appropriate
to carry out section 169(g).
[(B) Outlying areas.--
[(i) In general.--From the amount
made available under subsection (a)(2)
for a fiscal year, the Secretary shall
reserve not more than \1/4\ of 1
percent of the amount appropriated
under section 137(a) for the fiscal
year--
[(I) to provide assistance to
the outlying areas to carry out
youth activities and statewide
workforce investment
activities; and
[(II) for each of fiscal
years 1999, 2000, and 2001, to
carry out the competition
described in clause (ii),
except that the funds reserved
to carry out such clause for
any such fiscal year shall not
exceed the amount reserved for
the Freely Associated States
for fiscal year 1997, from
amounts reserved under sections
252(a) and 262(a)(1) of the Job
Training Partnership Act (as in
effect on the day before the
date of enactment of this Act).
[(ii) Limitation for freely
associated states.--
[(I) Competitive grants.--The
Secretary shall use funds
described in clause (i)(II) to
award grants to Guam, American
Samoa, the Commonwealth of the
Northern Mariana Islands, and
the Freely Associated States to
carry out youth activities and
statewide workforce investment
activities.
[(II) Award basis.--The
Secretary shall award grants
pursuant to subclause (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 assistance under
this subparagraph shall submit
an application to the Secretary
and shall include in the
application for assistance--
[(aa) information
demonstrating that the
Freely Associated State
will meet all
conditions that apply
to States under this
title;
[(bb) an assurance
that, notwithstanding
any other provision of
this title, the Freely
Associated State will
use such assistance
only for the direct
provision of services;
and
[(cc) 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 assistance
under this subparagraph for any
program year that begins after
September 30, 2001.
[(V) Administrative costs.--
The Secretary may provide not
more than 5 percent of the
funds made available for grants
under subclause (I) to pay the
administrative costs of the
Pacific Region Educational
Laboratory in Honolulu, Hawaii,
regarding activities assisted
under this clause.
[(iii) Additional requirement.--The
provisions of Public Law 95-134,
permitting the consolidation of grants
by the outlying areas, shall not apply
to assistance provided to those areas,
including the Freely Associated States,
under this subparagraph.
[(C) States.--
[(i) In general.--After determining
the amounts to be reserved under
subparagraph (A) (if any) and
subparagraph (B), the Secretary shall--
[(I) from the amount referred
to in subsection (a)(2) for a
fiscal year, make available not
more than 1.5 percent to
provide youth activities under
section 166 (relating to Native
Americans); and
[(II) allot the remainder of
the amount referred to in
subsection (a)(2) for a fiscal
year to the States pursuant to
clause (ii) for youth
activities and statewide
workforce investment
activities.
[(ii) Formula.--Subject to clauses
(iii) and (iv), of the remainder--
[(I) 33\1/3\ percent shall be
allotted on the basis of the
relative number of unemployed
individuals in areas of
substantial unemployment in
each State, compared to the
total number of unemployed
individuals in areas of
substantial unemployment in all
States;
[(II) 33\1/3\ percent shall
be allotted on the basis of the
relative excess number of
unemployed individuals in each
State, compared to the total
excess number of unemployed
individuals in all States; and
[(III) 33\1/3\ percent shall
be allotted on the basis of the
relative number of
disadvantaged youth in each
State, compared to the total
number of disadvantaged youth
in all States, except as
described in clause (iii).
[(iii) Calculation.--In determining
an allotment under clause (ii)(III) for
any State in which there is a local
area designated under section
116(a)(2)(B) (relating to the area
served by a rural concentrated
employment program grant recipient),
the allotment shall be based on the
higher of--
[(I) the number of
individuals who are age 16
through 21 in families with an
income below the low-income
level in such area; or
[(II) the number of
disadvantaged youth in such
area.
[(iv) Minimum and maximum percentages
and minimum allotments.--In making
allotments under this subparagraph, the
Secretary shall ensure the
following:
[(I) Minimum percentage and
allotment.--Subject to
subclause (IV), the Secretary
shall ensure that no State
shall receive an allotment for
a fiscal year that is less than
the greater of--
[(aa) an amount based
on 90 percent of the
allotment percentage of
the State for the
preceding fiscal year;
or
[(bb) 100 percent of
the total of the
allotments of the State
under sections 252 and
262 of the Job Training
Partnership Act (as in
effect on the day
before the date of
enactment of this Act)
for fiscal year 1998.
[(II) Small state minimum
allotment.--
Subject to subclauses (I),
(III), and (IV), the Secretary
shall ensure that no State
shall receive an allotment
under this subparagraph that is
less than the total of--
[(aa) \3/10\ of 1
percent of
$1,000,000,000 of the
remainder described in
clause (i)(II) for the
fiscal year; and
[(bb) if the
remainder described in
clause (i)(II) for the
fiscal year exceeds
$1,000,000,000, \2/5\
of 1 percent of the
excess.
[(III) Maximum percentage.--
Subject to subclause (I), the
Secretary shall ensure that no
State shall receive an
allotment percentage for a
fiscal year that is more than
130 percent of the allotment
percentage of the State for the
preceding fiscal year.
[(IV) Minimum funding.--In
any fiscal year in which the
remainder described in clause
(i)(II) does not exceed
$1,000,000,000, the minimum
allotments under subclauses (I)
and (II) shall be calculated by
the methodology for calculating
the corresponding allotments
under parts B and C of title II
of the Job Training Partnership
Act, as in effect on July 1,
1998.
[(2) Definitions.--For the purpose of the formula
specified in paragraph (1)(C):
[(A) Allotment percentage.--The term
``allotment percentage'', used with respect to
fiscal year 2000 or a subsequent fiscal year,
means a percentage of the remainder described
in paragraph (1)(C)(i)(II) that is received
through an allotment made under paragraph
(1)(C) for the fiscal year. The term, used with
respect to fiscal year 1998 or 1999, means the
percentage of the amounts allotted to States
under sections 252(b) and 262(a) of the Job
Training Partnership Act (as in effect on the
day before the date of enactment of this Act)
that is received under such sections by the
State involved for fiscal year 1998 or 1999.
[(B) Area of substantial unemployment.--The
term ``area of substantial unemployment'' means
any area that is of sufficient size and scope
to sustain a program of workforce investment
activities carried out under this subtitle and
that has an average rate of unemployment of at
least 6.5 percent for the most recent 12
months, as determined by the Secretary. For
purposes of this subparagraph, determinations
of areas of substantial unemployment shall be
made once each fiscal year.
[(C) Disadvantaged youth.--Subject to
paragraph (3), the term ``disadvantaged youth''
means an individual who is age 16 through 21
who received an income, or is a member of a
family that received a total family income,
that, in relation to family size, does not
exceed the higher of--
[(i) the poverty line; or
[(ii) 70 percent of the lower living
standard income level.
[(D) Excess number.--The term ``excess
number'' means, used with respect to the excess
number of unemployed individuals within a
State, the higher of--
[(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.
[(E) 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
that bears the same relationship to $7,000 as
the Consumer Price Index for that year bears to
the Consumer Price Index for 1969, rounded to
the nearest $1,000.
[(3) Special rule.--For the purpose of the formula
specified in paragraph (1)(C), the Secretary shall, as
appropriate and to the extent practicable, exclude
college students and members of the Armed Forces from
the determination of the number of disadvantaged youth.
[(4) Definition.--In this subsection, the term
``Freely Associated State'' means the Republic of the
Marshall Islands, the Federated States of Micronesia,
and the Republic of Palau.]
(a) Allotment Among States.--
(1) Youth activities.--
(A) Youth challenge grants.--
(i) Reservation of funds.--Of the
amount appropriated under section
137(a) for each fiscal year, the
Secretary shall reserve 25 percent to
provide youth challenge grants under
section 169.
(ii) Limitation.--Notwithstanding
clause (i), if the amount appropriated
under section 137(a) for a fiscal year
exceeds $1,000,000,000, the Secretary
shall reserve $250,000,000 to provide
youth challenge grants under section
169.
(B) Outlying areas and native americans.--
After determining the amount to be reserved
under subparagraph (A), of the remainder of the
amount appropriated under section 137(a) for
each fiscal year the Secretary shall--
(i) reserve not more than \1/4\ of
one percent of such amount to provide
assistance to the outlying areas to
carry out youth activities and
statewide workforce investment
activities; and
(ii) reserve not more than 1 and \1/
2\ percent of such amount to provide
youth activities under section 166
(relating to Native Americans).
(C) States.--
(i) In general.--After determining
the amounts to be reserved under
subparagraphs (A) and (B), the
Secretary shall allot the remainder of
the amount appropriated under section
137(a) for each fiscal year to the
States pursuant to clause (ii) for
youth activities and statewide
workforce investment activities.
(ii) Formula.--Subject to clauses
(iii) and (iv), of the remainder--
(I) 33 and \1/3\ percent
shall be allotted on the basis
of the relative number of high
school dropouts who are ages 16
through 21 in the State,
compared to the total number of
high school dropouts who are
ages 16 through 21 in all
States;
(II) 33 and \1/3\ percent
shall be allotted on the basis
of the relative number of
jobless out-of-school youth who
are ages 16 through 21 in the
State, compared to the total
number of jobless out-of-school
youth who are ages 16 through
21 in all States; and
(III) 33 and \1/3\ percent
shall be allotted on the basis
of the relative number of
disadvantaged youth who are
ages 16 through 21 in the
State, compared to the total
number of disadvantaged youth
who are ages 16 through 21 in
all States.
(iii) Minimum and maximum
percentages.--The Secretary shall
ensure that no State shall receive an
allotment for a fiscal year that is
less than 90 percent or greater than
130 percent of the allotment percentage
of that State for the preceding fiscal
year.
(iv) Small state minimum allotment.--
Subject to clause (iii), the Secretary
shall ensure that no State shall
receive an allotment under this
paragraph that is less than \3/10\ of 1
percent of the amount available under
subparagraph (A).
(2) Definitions.--For the purposes of paragraph (1),
the following definitions apply:
(A) Allotment percentage.--The term
``allotment percentage'', used with respect to
fiscal year 2004 or a subsequent fiscal year,
means a percentage of the remainder described
in paragraph (1)(C)(i) that is received through
an allotment made under this subsection for the
fiscal year. The term, with respect to fiscal
year 2003, means the percentage of the amounts
allotted to States under this chapter (as in
effect on the day before the date of enactment
of the Workforce Reinvestment and Adult
Education Act of 2003) that is received by the
State involved for fiscal year 2003.
(B) Disadvantaged youth.--The term
``disadvantaged youth'' means an individual who
is age 16 through 21 who received an income, or
is a member of a family that received a total
family income, that, in relation to family
size, does not exceed the poverty line.
(C) Number of high school dropouts.--The term
``number of high school dropouts'' means the
number of high school dropouts as is determined
by the Secretary based on the Current
Population Survey.
(D) Number of jobless out-of-school youth.--
The term ``number of jobless out-of-school
youth'' means the number of jobless out-of-
school youth as is determined by the Secretary
based on the Current Population Survey.
(3) Special rule.--For purposes of the formula
specified in paragraph (1)(C), the Secretary shall, as
appropriate and to the extent practicable, exclude
college students and members of the Armed Forces from
the determination of the number of disadvantaged youth.
(4) Minimum allotment.--Notwithstanding any other
provision of this section, no State shall receive an
allotment under this section that is less than the
amount received by such State for fiscal year 2003.
[(c)] (b) Reallotment.--
(1) * * *
[(2) Amount.--The amount available for reallotment
for a program year is equal to the amount by which the
unobligated balance of the State allotment under this
section for such activities, at the end of the program
year prior to the program year for which the
determination under this paragraph is made, exceeds 20
percent of such allotment for the prior program year.]
(2) Amount.--The amount available for reallotment for
a program year is equal to the amount by which the
unexpended balance, excluding accrued expenditures, at
the end of such program year of the total amount of
funds available to the State under this section during
such program year (including amounts allotted to the
State in prior program years that remain available
during the program year for which the determination is
made) exceeds 30 percent of such total amount.
(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 this section for such
activities [for the prior program year] for the program
year in which the determination is made, as compared to
the total amount allotted to all eligible States under
this section for such activities for [such prior
program year] such program year.
[(4) Eligibility.--For purposes of this subsection,
an eligible State means a State that has obligated at
least 80 percent of the State allotment under this
section for such activities for the program year prior
to the program year for which the determination under
paragraph (2) is made.]
(4) Eligibility.--For purposes of this subsection, an
eligible State means a State which does not have an
amount available for reallotment under paragraph (2)
for the program year for which the determination under
paragraph (2) is made.
* * * * * * *
SEC. 128. WITHIN STATE ALLOCATIONS.
[(a) Reservations for State Activities.--
[(1) In general.--The Governor of a State shall
reserve not more than 15 percent of each of the amounts
allotted to the State under section 127(b)(1)(C) and
paragraphs (1)(B) and (2)(B) of section 132(b) for a
fiscal year for statewide workforce investment
activities.
[(2) Use of funds.--Regardless of whether the
reserved amounts were allotted under section
127(b)(1)(C), or under paragraph (1)(B) or (2)(B) of
section 132(b), the Governor may use the reserved
amounts to carry out statewide youth activities
described in section 129(b) or statewide employment and
training activities, for adults or for dislocated
workers, described in paragraph (2)(B) or (3) of
section 134(a).
[(b) Within State Allocation.--
[(1) Methods.--The Governor, acting in accordance
with the State plan, and after consulting with chief
elected officials in the local areas, shall allocate
the funds that are allotted to the State for youth
activities and statewide workforce investment
activities under section 127(b)(1)(C) and are not
reserved under subsection (a), in accordance with
paragraph (2) or (3).
[(2) Formula allocation.--
[(A) Youth activities.--
[(i) Allocation.--In allocating the
funds described in paragraph (1) to
local areas, a State may allocate--
[(I) 33\1/3\ percent of the
funds on the basis described in
section 127(b)(1)(C)(ii)(I);
[(II) 33\1/3\ percent of the
funds on the basis described in
section 127(b)(1)(C)(ii)(II);
and
[(III) 33\1/3\ percent of the
funds on the basis described in
clauses (ii)(III) and (iii) of
section 127(b)(1)(C).
[(ii) Minimum percentage.--Effective
at the end of the second full fiscal
year after the date on which a local
area is designated under section 116,
the local area shall not receive an
allocation percentage for a fiscal year
that is less than 90 percent of the
average allocation percentage of the
local area for the 2 preceding fiscal
years. Amounts necessary for increasing
such allocations to local areas to
comply with the preceding sentence
shall be obtained by ratably reducing
the allocations to be made to other
local areas under this subparagraph.
[(iii) Definition.--The term
``allocation percentage'', used with
respect to fiscal year 2000 or a
subsequent fiscal year, means a
percentage of the funds referred to in
clause (i), received through an
allocation made under this
subparagraph, for the fiscal year.
[(B) Application.--For purposes of carrying
out subparagraph (A)--
[(i) references in section 127(b) to
a State shall be deemed to be
references to a local area;
[(ii) references in section 127(b) to
all States shall be deemed to be
references to all local areas in the
State involved; and
[(iii) except as described in clause
(i), references in section 127(b)(1) to
the term ``excess number'' shall be
considered to be references to the term
as defined in section 127(b)(2).
[(3) Youth discretionary allocation.--In lieu of
making the allocation described in paragraph (2)(A), in
allocating the funds described in paragraph (1) to
local areas, a State may distribute--
[(A) a portion equal to not less than 70
percent of the funds in accordance with
paragraph (2)(A); and
[(B) the remaining portion of the funds on
the basis of a formula that--
[(i) incorporates additional factors
(other than the factors described in
paragraph (2)(A)) relating to--
[(I) excess youth poverty in
urban, rural, and suburban
local areas; and
[(II) excess unemployment
above the State average in
urban, rural, and suburban
local areas; and
[(ii) was developed by the State
board and approved by the Secretary as
part of the State plan.
[(4) Limitation.--
[(A) In general.--Of the amount allocated to
a local area under this subsection and section
133(b) for a fiscal year, not more than 10
percent of the amount may be used by the local
board for the administrative cost of carrying
out local workforce investment activities
described in subsection (d) or (e) of section
134 or in section 129(c).
[(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may
be used for the administrative cost of any of
the local workforce investment activities
described in subsection (d) or (e) of section
134 or in section 129(c), regardless of whether
the funds were allocated under this subsection
or section 133(b).
[(C) Regulations.--The Secretary, after
consulting with the Governors, shall develop
and issue regulations that define the term
``administrative cost'' for purposes of this
title. Such definition shall be consistent with
generally accepted accounting principles.]
(a) Reservation for Statewide Activities.--
(1) In general.--The Governor of a State shall
reserve not more than 10 percent of the amount allotted
to the State under section 127(a)(1)(C) for a fiscal
year for statewide activities.
(2) Use of funds.--Regardless of whether the amounts
are allotted under section 127(a)(1)(C) and reserved
under paragraph (1) or allotted under section 132 and
reserved under section 133(a), the Governor may use the
reserved amounts to carry out statewide youth
activities under section 129(b) or statewide employment
and training activities under section 133.
(b) Within State Allocation.--
(1) In general.--Of the amounts allotted to the State
under section 127(a)(1)(C) and not reserved under
subsection (a)(1)--
(A) 80 percent of such amounts shall be
allocated by the Governor to local areas in
accordance with paragraph (2); and
(B) 20 percent of such amounts shall be
allocated by the Governor to local areas in
accordance with paragraph (3).
(2) Established formula.--
(A) In general.--Of the amounts described in
paragraph (1)(A), the Governor shall allocate--
(i) 33 and \1/3\ percent on the basis
of the relative number of high school
dropouts who are ages 16 through 21 in
each local area, compared to the total
number of high school dropouts who are
ages 16 through 21 in all local areas
in the State;
(ii) 33 and \1/3\ percent on the
basis of the relative number of jobless
out-of-school youth who are ages 16
through 21 in each local area, compared
to the total number of jobless out-of-
school youth who are ages 16 through 21
in all local areas in the State; and
(iii) 33 and \1/3\ percent on the
basis of the relative number of
disadvantaged youth who are ages 16
through 21 in each local area, compared
to the total number of disadvantaged
youth who are ages 16 through 21 in all
local areas in the State.
(B) Minimum and maximum percentages.--The
Governor shall ensure that no local area shall
receive an allocation for a fiscal year under
this paragraph that is less than 90 percent or
greater than 130 percent of the allocation
percentage of the local area for the preceding
fiscal year.
(C) Definitions.--
(i) Allocation percentage.--For
purposes of this paragraph, the term
``allocation percentage'', used with
respect to fiscal year 2004 or a
subsequent fiscal year, means a
percentage of amount described in
paragraph(1)(A) that is received
through an allocation made under this
paragraph for the fiscal year. The
term, with respect to fiscal year 2003,
means the percentage of the amounts
allocated to local areas under this
chapter (as in effect on the day before
the date of enactment of the Workforce
Investment Act Amendments of 2003) that
is received by the local area involved
for fiscal year 2003.
(ii) Other terms.--For purposes of
this paragraph, all other terms shall
have the meaning given such terms in
section 127(a)(2).
(3) Youth discretionary allocation.--The Governor
shall allocate to local areas the amounts described in
paragraph (1)(B) in accordance with such demographic
and economic factors as the Governor, after
consultation with the State board and local boards,
determines are appropriate.
(4) Local administrative cost limit.--
(A) In general.--Of the amounts allocated to
a local area under this subsection and section
133(b) for a fiscal year, not more than 10
percent of the amount may be used by the local
boards for the administrative costs of carrying
out local workforce investment activities under
this chapter or chapter 5.
(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may
be used for the administrative costs of any of
the local workforce investment activities
described in this chapter or chapter 5,
regardless of whether the funds were allocated
under this subsection or section 133(b).
(c) Reallocation Among Local Areas.--
(1) In general.--The Governor may, in accordance with
this subsection, reallocate to eligible local areas
within the State amounts that are allocated under
[paragraph (2)(A) or (3) of] subsection (b) for youth
activities and that are available for reallocation.
[(2) Amount.--The amount available for reallocation
for a program year is equal to the amount by which the
unobligated balance of the local area allocation under
paragraph (2)(A) or (3) of subsection (b) for such
activities, at the end of the program year prior to the
program year for which the determination under this
paragraph is made exceeds 20 percent of such allocation
for the prior program year.]
(2) Amount.--The amount available for reallocation
for a program year is equal to the amount by which the
unexpended balance, excluding accrued expenditures, at
the end of such program year of the total amount of
funds available to the local area under this section
during such program year (including amounts allotted to
the local area in prior program years that remain
available during the program year for which the
determination is made) exceeds 30 percent of such total
amount.
(3) Reallocation.--In making reallocations to
eligible local areas of amounts available pursuant to
paragraph (2) for a program year, the Governor shall
allocate to each eligible local area within the State
an amount based on the relative amount allocated to
such local area under subsection (b)[(3)] for such
activities for [the prior program year] the program
year in which the determination is made, as compared to
the total amount allocated to all eligible local areas
in the State under subsection (b)[(3)] for such
activities for [such prior program year] such program
year. [For purposes of this paragraph, local areas that
received allocations under subsection (b)(2)(A) for the
prior program year shall be treated as if the local
areas received allocations under subsection (b)(3) for
such year.]
[(4) Eligibility.--For purposes of this subsection,
an eligible local area means a local area that has
obligated at least 80 percent of the local area
allocation under paragraph (2)(A) or (3) of subsection
(b) for such activities, for the program year prior to
the program year for which the determination under
paragraph (2) is made.]
(4) Eligibility.--For purposes of this subsection, an
eligible local area means a local area which does not
have an amount available for reallocation under
paragraph (2) for the program year for which the
determination under paragraph (2) is made.
SEC. 129. USE OF FUNDS FOR YOUTH ACTIVITIES.
[(a) Purposes.--The purposes of this section are--
[(1) to provide, to eligible youth seeking assistance
in achieving academic and employment success, effective
and comprehensive activities, which shall include a
variety of options for improving educational and skill
competencies and provide effective connections to
employers;
[(2) to ensure on-going mentoring opportunities for
eligible youth with adults committed to providing such
opportunities;
[(3) to provide opportunities for training to
eligible youth;
[(4) to provide continued supportive services for
eligible youth;
[(5) to provide incentives for recognition and
achievement to eligible youth; and
[(6) to provide opportunities for eligible youth in
activities related to leadership, development,
decisionmaking, citizenship, and community service.
[(b) Statewide Youth Activities.--
[(1) In general.--Funds reserved by a Governor for a
State as described in sections 128(a) and 133(a)(1)--
[(A) shall be used to carry out the statewide
youth activities described in paragraph (2);
and
[(B) may be used to carry out any of the
statewide youth activities described in
paragraph (3),
regardless of whether the funds were allotted to the
State under section 127(b)(1) or under paragraph (1) or
(2) of section 132(b).
[(2) Required statewide youth activities.--A State
shall use funds reserved as described in sections
128(a) and 133(a)(1) (regardless of whether the funds
were allotted to the State under section 127(b)(1) or
paragraph (1) or (2) of section 132(b)) to carry out
statewide youth activities, which shall include--
[(A) disseminating a list of eligible
providers of youth activities described in
section 123;
[(B) carrying out activities described in
clauses (ii) through (vi) of section
134(a)(2)(B), except that references in such
clauses to activities authorized under section
134 shall be considered to be references to
activities authorized under this section; and
[(C) providing additional assistance to local
areas that have high concentrations of eligible
youth to carry out the activities described in
subsection (c).
[(3) Allowable statewide youth activities.--A State
may use funds reserved as described in sections 128(a)
and 133(a)(1) (regardless of whether the funds were
allotted to the State under section 127(b)(1) or
paragraph (1) or (2) of section 132(b)) to carry out
additional statewide youth activities, which may
include--
[(A) carrying out activities described in
clauses (i), (ii), (iii), (iv)(II), and
(vi)(II) of section 134(a)(3)(A), except that
references in such clauses to activities
authorized under section 134 shall be
considered to be references to activities
authorized under this section; and
[(B) carrying out, on a statewide basis,
activities described in subsection (c).
[(4) Prohibition.--No funds described in this
subsection or section 134(a) shall be used to develop
or implement education curricula for school systems in
the State.]
(a) Youth Participant Eligibility.--
(1) In general.--The individuals participating in
activities carried out under this chapter by a local
area during any program year shall be individuals who,
at the time the eligibility determination is made,
are--
(A) not younger than age 16 or older than age
21; and
(B) one or more of the following:
(i) school dropouts;
(ii) recipients of a secondary school
diploma or the General Equivalency
Diploma (GED) (including recognized
alternative standards for individuals
with disabilities);
(iii) court-involved youth attending
an alternative school;
(iv) youth in foster care or who have
been in foster care; or
(v) in school youth who are low-
income individuals and one or more of
the following:
(I) Deficient in literacy
skills.
(II) Homeless, runaway, or
foster children.
(III) Pregnant or parents.
(IV) Offenders.
(V) Individuals who require
additional assistance to
complete an educational
program, or to secure and hold
employment.
(2) Priority for school dropouts.--A priority in the
provision of services under this chapter shall be given
to individuals who are school dropouts.
(3) Limitations on activities for in-school youth.--
(A) Percentage of funds.--For any program
year, not more than 30 percent of the funds
available for statewide activities under
subsection (b), and not more than 30 percent of
funds available to local areas under subsection
(c), may be used to provide activities for in-
school youth meeting the requirements of
paragraph (1)(B)(v).
(B) Non-school hours required.--Activities
carried out under this chapter for in-school
youth meeting the requirements of paragraph
(1)(B)(v) shall only be carried out in non-
school hours or periods when school is not in
session (such as before and after school or
during summer recess.
(b) Statewide Activities.--
(1) In general.--Funds reserved by a Governor for a
State as described in sections 128(a) and 133(a)(1) may
be used for statewide activities including--
(A) additional assistance to local areas that
have high concentrations of eligible youth;
(B) supporting the provision of core services
described in section 134(c)(2) in the one-stop
delivery system;
(C) conducting evaluations under section
136(e) of activities authorized under this
chapter and chapter 5 in coordination with
evaluations carried out by the Secretary under
section 172, research, and demonstration
projects;
(D) providing incentive grants to local areas
for regional cooperation among local boards
(including local boards in a designated region
as described in section 116(c)), for local
coordination of activities carried out under
this Act, and for exemplary performance by
local areas on the local performance measures;
(E) providing technical assistance and
capacity building to local areas, one-stop
operators, one-stop partners, and eligible
providers, including the development and
training of staff, the development of exemplary
program activities, and the provision of
technical assistance to local areas that fail
to meet local performance measures;
(F) operating a fiscal and management
accountability system under section 136(f); and
(G) carrying out monitoring and oversight of
activities under this chapter and chapter 5.
(2) Limitation.--Not more than 5 percent of the funds
allotted under section 127(b) shall be used by the
State for administrative activities carried out under
this subsection and section 133(a).
(3) Prohibition.--No funds described in this
subsection or in section 134(a) may be used to develop
or implement education curricula for school systems in
the State.
(c) Local Elements and Requirements.--
(1) Program design.--Funds allocated to a local area
for eligible youth under [paragraph (2)(A) or (3), as
appropriate, of] section 128(b) shall be used to carry
out, for eligible youth, programs that--
(A) * * *
(B) develop service strategies for each
participant that are directly linked to one or
more of the performance outcomes relating to
this chapter under section 136, and that shall
identify an employment goal (including, in
appropriate circumstances, nontraditional
employment), appropriate achievement
objectives, and appropriate services for the
participant taking into account the assessment
conducted pursuant to subparagraph (A), except
that a new service strategy for a participant
is not required if the provider carrying out
such a program determines it is appropriate to
use a recent service strategy developed for the
participant under another education or training
program; and
(C) provide--
(i) activities leading to the
attainment of a secondary school
diploma or the General Equivalency
Diploma (GED) (including recognized
alternative standards for individuals
with disabilities);
[(i)] (ii) preparation for
postsecondary educational opportunities
and advanced training, in appropriate
cases;
[(ii)] (iii) strong linkages between
academic and occupational learning that
lead to the attainment of recognized
credentials;
[(iii)] (iv) preparation for
unsubsidized employment opportunities,
in appropriate cases; and
[(iv) effective connections to
intermediaries with strong links to--
[(I) the job market; and
[(II) local and regional
employers.]
(v) effective connections to
employers in sectors of the local labor
market experiencing high growth in
employment opportunities.
(2) Program elements.--The programs described in
paragraph (1) shall provide elements consisting of--
(A) tutoring, study skills training, and
instruction, leading to completion of
[secondary school, including dropout prevention
strategies] secondary school diploma or the
General Equivalency Diploma (GED) (including
recognized alternative standards for
individuals with disabilities), including
dropout prevention strategies;
* * * * * * *
(I) followup services for not less than 12
months after the completion of participation,
as appropriate; [and]
(J) comprehensive guidance and counseling,
which may include drug and alcohol abuse
counseling and referral, as appropriate[.];
(K) on-the-job training opportunities; and
(L) financial literacy skills.
(3) Additional requirements.--
(A) Information and referrals.--Each local
board shall ensure that each participant [or
applicant who meets the minimum income criteria
to be considered an eligible youth] shall be
provided--
(i) * * *
* * * * * * *
[(4) Priority.--
[(A) In general.--At a minimum, 30 percent of
the funds described in paragraph (1) shall be
used to provide youth activities to out-of-
school youth.
[(B) Exception.--A State that receives a
minimum allotment under section 127(b)(1) in
accordance with section 127(b)(1)(C)(iv)(II) or
under section 132(b)(1) in accordance with
section 132(b)(1)(B)(iv)(II) may reduce the
percentage described in subparagraph (A) for a
local area in the State, if--
[(i) after an analysis of the
eligible youth population in the local
area, the State determines that the
local area will be unable to meet the
percentage described in subparagraph
(A) due to a low number of out-of-
school youth; and
[(ii)(I) the State submits to the
Secretary, for the local area, a
request including a proposed reduced
percentage for purposes of subparagraph
(A), and the summary of the eligible
youth population analysis; and
[(II) the request is approved by the
Secretary.
[(5) Exceptions.--Not more than 5 percent of
participants assisted under this section in each local
area may be individuals who do not meet the minimum
income criteria to be considered eligible youth, if
such individuals are within one or more of the
following categories:
[(A) Individuals who are school dropouts.
[(B) Individuals who are basic skills
deficient.
[(C) Individuals with educational attainment
that is one 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
learning disabilities.
[(F) Individuals who are homeless or runaway
youth.
[(G) Individuals who are offenders.
[(H) Other eligible youth who face serious
barriers to employment as identified by the
local board.]
[(6)] (4) Prohibitions.--
(A) * * *
* * * * * * *
[(7)] (5) Linkages.--In coordinating the programs
authorized under this section, [youth councils] local
boards shall establish linkages with educational
agencies responsible for services to participants as
appropriate.
[(8)] (6) Volunteers.--The local board shall make
opportunities available for individuals who have
successfully participated in programs carried out under
this section to volunteer assistance to participants in
the form of mentoring, tutoring, and other activities.
[CHAPTER 5--ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING
ACTIVITIES]
CHAPTER 5--COMPREHENSIVE EMPLOYMENT AND TRAINING ACTIVITIES FOR ADULTS
SEC. 131. GENERAL AUTHORIZATION.
The Secretary shall make allotments under [paragraphs (1)(B)
and (2)(B) of] section 132(b) to each State that meets the
requirements of section 112 and a grant to each outlying area
that complies with the requirements of this title, to assist
the State or outlying area, and to enable the State or outlying
area to assist local areas, for the purpose of providing
workforce investment activities for adults[, and dislocated
workers,] in the State or outlying area and in the local areas.
SEC. 132. STATE ALLOTMENTS.
[(a) In General.--The Secretary shall--
[(1) make allotments and grants from the total amount
appropriated under section 137(b) for a fiscal year in
accordance with subsection (b)(1); and
[(2)(A) reserve 20 percent of the amount appropriated
under section 137(c) for a fiscal year for use under
subsection (b)(2)(A), and under sections 170(b)
(relating to dislocated worker technical assistance),
171(d) (relating to dislocated worker projects), and
173 (relating to national emergency grants, other than
under subsection (a)(4), (f), and (g)); and
[(B) make allotments from 80 percent of the amount
appropriated under section 137(c) for a fiscal year in
accordance with subsection (b)(2)(B).
[(b) Allotment Among States.--
[(1) Adult employment and training activities.--
[(A) Reservation for outlying areas.--
[(i) In general.--From the amount
made available under subsection (a)(1)
for a fiscal year, the Secretary shall
reserve not more than \1/4\ of 1
percent to provide assistance to the
outlying areas.
[(ii) Applicability of additional
requirements.--From the amount reserved
under clause (i), the Secretary shall
provide assistance to the outlying
areas for adult employment and training
activities and statewide workforce
investment activities in accordance
with the requirements of section
127(b)(1)(B), except that the reference
in section 127(b)(1)(B)(i)(II) to
sections 252(d) and 262(a)(1) of the
Job Training Partnership Act shall be
deemed to be a reference to section
202(a)(1) of the Job Training
Partnership Act (as in effect on the
day before the date of enactment of
this Act).
[(B) States.--
[(i) In general.--After determining
the amount to be reserved under
subparagraph (A), the Secretary shall
allot the remainder of the amount
referred to in subsection (a)(1) for a
fiscal year to the States pursuant to
clause (ii) for adult employment and
training activities and statewide
workforce investment activities.
[(ii) Formula.--Subject to clauses
(iii) and (iv), of the remainder--
[(I) 33\1/3\ percent shall be
allotted on the basis of the
relative number of unemployed
individuals in areas of
substantial unemployment in
each State, compared to the
total number of unemployed
individuals in areas of
substantial unemployment in all
States;
[(II) 33\1/3\ percent shall
be allotted on the basis of the
relative excess number of
unemployed individuals in each
State, compared to the total
excess number of unemployed
individuals in all States; and
[(III) 33\1/3\ percent shall
be allotted on the basis of the
relative number of
disadvantaged adults in each
State, compared to the total
number of disadvantaged adults
in all States, except as
described in clause (iii).
[(iii) Calculation.--In determining
an allotment under clause (ii)(III) for
any State in which there is a local
area designated under section
116(a)(2)(B), the allotment shall be
based on the higher of--
[(I) the number of adults in
families with an income below
the low-income level in such
area; or
[(II) the number of
disadvantaged adults in such
area.
[(iv) Minimum and maximum percentages
and minimum allotments.--In making
allotments under this subparagraph, the
Secretary shall ensure the following:
[(I) Minimum percentage and
allotment.--Subject to
subclause (IV), the Secretary
shall ensure that no State
shall receive an allotment for
a fiscal year that is less than
the greater of--
[(aa) an amount based
on 90 percent of the
allotment percentage of
the State for the
preceding fiscal year;
or
[(bb) 100 percent of
the allotment of the
State under section 202
of the Job Training
Partnership Act (as in
effect on the day
before the date of
enactment of this Act)
for fiscal year 1998.
[(II) Small state minimum
allotment.--Subject to
subclauses (I), (III), and
(IV), the Secretary shall
ensure that no State shall
receive an allotment under this
subparagraph that is less than
the total of--
[(aa) \3/10\ of 1
percent of $960,000,000
of the remainder
described in clause (i)
for the fiscal year;
and
[(bb) if the
remainder described in
clause (i) for the
fiscal year exceeds
$960,000,000, \2/5\ of
1 percent of the
excess.
[(III) Maximum percentage.--
Subject to subclause (I), the
Secretary shall ensure that no
State shall receive an
allotment percentage for a
fiscal year that is more than
130 percent of the allotment
percentage of the State for the
preceding fiscal year.
[(IV) Minimum funding.--In
any fiscal year in which the
remainder described in clause
(i) does not exceed
$960,000,000, the minimum
allotments under subclauses (I)
and (II) shall be calculated by
the methodology for calculating
the corresponding allotments
under part A of title II of the
Job Training Partnership Act,
as in effect on July 1, 1998.
[(v) Definitions.--For the purpose of
the formula specified in this
subparagraph:
[(I) Adult.--The term
``adult'' means an individual
who is not less than age 22 and
not more than age 72.
[(II) Allotment percentage.--
The term ``allotment
percentage'', used with respect
to fiscal year 2000 or a
subsequent fiscal year, means a
percentage of the remainder
described in clause (i) that is
received through an allotment
made under this subparagraph
for the fiscal year. The term,
used with respect to fiscal
year 1998 or 1999, means the
percentage of the amounts
allotted to States under
section 202(a) of the Job
Training Partnership Act (as in
effect on the day before the
date of enactment of this Act)
that is received under such
section by the State involved
for fiscal year 1998 or 1999.
[(III) Area of substantial
unemployment.--The term ``area
of substantial unemployment''
means any area that is of
sufficient size and scope to
sustain a program of workforce
investment activities carried
out under this subtitle and
that has an average rate of
unemployment of at least 6.5
percent for the most recent 12
months, as determined by the
Secretary. For purposes of this
subclause, determinations of
areas of substantial
unemployment shall be made once
each fiscal year.
[(IV) Disadvantaged adult.--
Subject to subclause (V), the
term ``disadvantaged adult''
means an adult who received an
income, or is a member of a
family that received a total
family income, that, in
relation to family size, does
not exceed the higher of--
[(aa) the poverty
line; or
[(bb) 70 percent of
the lower living
standard income level.
[(V) Disadvantaged adult
special rule.--The Secretary
shall, as appropriate and to
the extent practicable, exclude
college students and members of
the Armed Forces from the
determination of the number of
disadvantaged adults.
[(VI) Excess number.--The
term ``excess number'' means,
used with respect to the excess
number of unemployed
individuals within a State, the
higher of--
[(aa) the number that
represents the number
of unemployed
individuals in excess
of 4.5 percent of the
civilian labor force in
the State; or
[(bb) the number that
represents the number
of unemployed
individuals in excess
of 4.5 percent of the
civilian labor force in
areas of substantial
unemployment in such
State.
[(2) Dislocated worker employment and training.--
[(A) Reservation for outlying areas.--
[(i) In general.--From the amount
made available under subsection
(a)(2)(A) for a fiscal year, the
Secretary shall reserve not more than
\1/4\ of 1 percent of the amount
appropriated under section 137(c) for
the fiscal year to provide assistance
to the outlying areas.
[(ii) Applicability of additional
requirements.--From the amount reserved
under clause (i), the Secretary shall
provide assistance to the outlying
areas for dislocated worker employment
and training activities and statewide
workforce investment activities in
accordance with the requirements of
section 127(b)(1)(B), except that the
reference in section
127(b)(1)(B)(i)(II) to sections 252(a)
and 262(a)(1) of the Job Training
Partnership Act shall be deemed to be a
reference to section 302(e) of the Job
Training Partnership Act (as in effect
on the day before the date of enactment
of this Act).
[(B) States.--
[(i) In general.--The Secretary shall
allot the amount referred to in
subsection (a)(2)(B) for a fiscal year
to the States pursuant to clause (ii)
for dislocated worker employment and
training activities and statewide
workforce investment activities.
[(ii) Formula.--Of the amount--
[(I) 33\1/3\ percent shall be
allotted on the basis of the
relative number of unemployed
individuals in each State,
compared to the total number of
unemployed individuals in all
States;
[(II) 33\1/3\ percent shall
be allotted on the basis of the
relative excess number of
unemployed individuals in each
State, compared to the total
excess number of unemployed
individuals in all States; and
[(III) 33\1/3\ percent shall
be allotted on the basis of the
relative number of individuals
in each State who have been
unemployed for 15 weeks or
more, compared to the total
number of individuals in all
States who have been unemployed
for 15 weeks or more.
[(iii) Definition.--In this
subparagraph, the term ``excess
number'' means, used with respect to
the excess number of unemployed
individuals within a State, the number
that represents the number of
unemployed individuals in excess of 4.5
percent of the civilian labor force in
the State.
[(3) Definitions.--For the purpose of the formulas
specified in this subsection:
[(A) Freely associated states.--The term
``Freely Associated States'' means the Republic
of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau.
[(B) Low-income level.--The term ``low-income
level'' means $7,000 with respect to income in
1969, and for any later year means that amount
that bears the same relationship to $7,000 as
the Consumer Price Index for that year bears to
the Consumer Price Index for 1969, rounded to
the nearest $1,000.]
(a) In General.--The Secretary shall--
(1) reserve 10 percent of the amount appropriated
under section 137(b) for a fiscal year, of which--
(A) not less than 75 percent shall be used
for national dislocated worker grants under
section 173;
(B) not more than 20 percent may be used for
demonstration projects under section 171; and
(C) not more than 5 percent may be used to
provide technical assistance under section 170;
and
(2) make allotments from 90 percent of the amount
appropriated under section 137(b) for a fiscal year in
accordance with subsection (b).
(b) Allotment Among States for Adult Employment and Training
Activities.--
(1) Reservation for outlying areas.--From the amount
made available under subsection (a)(2) for a fiscal
year, the Secretary shall reserve not more than \1/4\
of 1 percent to provide assistance to outlying areas to
carry out employment and training activities for adults
and statewide workforce investment activities.
(2) States.--
(A) In general.--After determining the amount
to be reserved under paragraph (1), the
Secretary shall allot the remainder of the
amount referred to under subsection (a)(2) for
a fiscal year to the States pursuant to
subparagraph (B) for employment and training
activities for adults and statewide workforce
investment activities.
(B) Formula.--Subject to subparagraphs (C)
and (D), of the remainder--
(i) 60 percent shall be allotted on
the basis of the relative number of
unemployed individuals in each State,
compared to the total number of
unemployed individuals in all States;
(ii) 15 percent shall be allotted on
the basis of the relative excess number
of unemployed individuals in each
State, compared to the total excess
number of unemployed individuals in all
States;
(iii) 15 percent shall be allotted on
the basis of the relative number of
individuals in the civilian labor force
in each State, compared to the total
number of individuals in the civilian
labor force in all States; and
(iv) 10 percent shall be allotted on
the basis of the relative number of
disadvantaged adults in each State,
compared to the total number of
disadvantaged adults in all States.
(C) Minimum and maximum percentages.--The
Secretary shall ensure that no State shall
receive an allotment for a fiscal year that is
less than 90 percent or greater than 130
percent of the allotment percentage of the
State for the preceding fiscal year.
(D) Minimum allotment.--Notwithstanding any
other provision of this section, no State shall
receive an allotment under this section that is
less than the amount received by such State for
fiscal year 2003.
(E) Small state minimum allotment.--Subject
to subparagraph (C), the Secretary shall ensure
that no State shall receive an allotment under
this paragraph that is less than \3/10\ of 1
percent of the amount available under
subparagraph (A).
(F) Definitions.--For the purposes of this
paragraph, the following definitions apply:
(i) Allotment percentage.--The term
``allotment percentage'', used with
respect to fiscal year 2004 or a
subsequent fiscal year, means a
percentage of the remainder described
in subparagraph (A) that is received
through an allotment made under this
paragraph for the fiscal year. The
term, with respect to fiscal year 2003,
means the percentage of the amounts
allotted to States under this chapter
(as in effect on the day before the
date of enactment of the Workforce
Reinvestment and Adult Education Act of
2003) and under section 6 of the
Wagner-Peyser Act that is received by
the State involved for fiscal year
2003.
(ii) Disadvantaged adult.--The term
``disadvantaged adult'' means an
individual who is age 22 through 72 who
received an income, or is a member of a
family that received a total family
income, that, in relation to family
size, does not exceed the poverty line.
(iii) Excess number.--The term
``excess number'' means, used with
respect to the excess number of
unemployed individuals within a State,
the number that represents the number
of unemployed individuals in excess of
4.5 percent of the civilian labor force
in the State.
(c) Reallotment.--
(1) * * *
[(2) Amount.--The amount available for reallotment
for a program year is equal to the amount by which the
unobligated balance of the State allotments under this
section for such activities, at the end of the program
year prior to the program year for which the
determination under this paragraph is made, exceeds 20
percent of such allotments for the prior program year.]
(2) Amount.--The amount available for reallotment for
a program year is equal to the amount by which the
unexpended balance, excluding accrued expenditures, at
the end of such program year of the total amount of
funds available to the State under this section during
such program year (including amounts allotted to the
State in prior program years that remain available
during the program year for which the determination is
made) exceeds 30 percent of such total amount.
(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 this section for such
activities [for the prior program year] for the program
year in which the determination is made, as compared to
the total amount allotted to all eligible States under
this section for such activities for [such prior
program year] such program year.
[(4) Eligibility.--For purposes of this subsection,
an eligible State means a State that has obligated at
least 80 percent of the State allotment under this
section for such activities for the program year prior
to the program year for which the determination under
paragraph (2) is made.]
(4) Eligibility.--For purposes of this subsection, an
eligible State means a State that does not have an
amount available for reallotment under paragraph (2)
for the program year for which the determination under
paragraph (2) is made.
* * * * * * *
SEC. 133. WITHIN STATE ALLOCATIONS.
[(a) Reservations for State Activities.--
[(1) Statewide workforce investment activities.--The
Governor of a State shall make the reservation required
under section 128(a).
[(2) Statewide rapid response activities.--The
Governor of the State shall reserve not more than 25
percent of the total amount allotted to the State under
section 132(b)(2)(B) for a fiscal year for statewide
rapid response activities described in section
134(a)(2)(A).
[(b) Within State Allocation.--
[(1) Methods.--The Governor, acting in accordance
with the State plan, and after consulting with chief
elected officials in the local areas, shall allocate--
[(A) the funds that are allotted to the State
for adult employment and training activities
and statewide workforce investment activities
under section 132(b)(1)(B) and are not reserved
under subsection (a)(1), in accordance with
paragraph (2) or (3); and
[(B) the funds that are allotted to the State
for dislocated worker employment and training
activities under section 132(b)(2)(B) and are
not reserved under paragraph (1) or (2) of
subsection (a), in accordance with paragraph
(2).
[(2) Formula allocations.--
[(A) Adult employment and training
activities.--
[(i) Allocation.--In allocating the
funds described in paragraph (1)(A) to
local areas, a State may
allocate--
[(I) 33\1/3\ percent of the
funds on the basis described in
section 132(b)(1)(B)(ii)(I);
[(II) 33\1/3\ percent of the
funds on the basis described in
section 132(b)(1)(B)(ii)(II);
and
[(III) 33\1/3\ percent of the
funds on the basis described in
clauses (ii)(III) and (iii) of
section 132(b)(1)(B).
[(ii) Minimum percentage.--Effective
at the end of the second full fiscal
year after the date on which a local
area is designated under section 116,
the local area shall not receive an
allocation percentage for a fiscal year
that is less than 90 percent of the
average allocation percentage of the
local area for the 2 preceding fiscal
years. Amounts necessary for increasing
such allocations to local areas to
comply with the preceding sentence
shall be obtained by ratably reducing
the allocations to be made to other
local areas under this subparagraph.
[(iii) Definition.--The term
``allocation percentage'', used with
respect to fiscal year 2000 or a
subsequent fiscal year, means a
percentage of the funds referred to in
clause (i), received through an
allocation made under this
subparagraph, for the fiscal year.
[(B) Dislocated worker employment and
training activities.--
[(i) Formula.--In allocating the
funds described in paragraph (1)(B) to
local areas, a State shall allocate the
funds based on an allocation formula
prescribed by the Governor of the
State. Such formula may be amended by
the Governor not more than once for
each program year. Such formula shall
utilize the most appropriate
information available to the Governor
to distribute amounts to address the
State's worker readjustment assistance
needs.
[(ii) Information.--The information
described in clause (i) shall include
insured unemployment data, unemployment
concentrations, plant closing and mass
layoff data, declining industries data,
farmer-rancher economic hardship data,
and long-term unemployment data.
[(C) Application.--For purposes of carrying
out subparagraph (A)--
[(i) references in section 132(b) to
a State shall be deemed to be
references to a local area;
[(ii) references in section 132(b) to
all States shall be deemed to be
references to all local areas in the
State involved; and
[(iii) except as described in clause
(i), references in section 132(b)(1) to
the term ``excess number'' shall be
considered to be references to the term
as defined in section 132(b)(1).
[(3) Adult employment and training discretionary
allocations.--In lieu of making the allocation
described in paragraph (2)(A), in allocating the funds
described in paragraph (1)(A) to local areas, a State
may distribute--
[(A) a portion equal to not less than 70
percent of the funds in accordance with
paragraph (2)(A); and
[(B) the remaining portion of the funds on
the basis of a formula that--
[(i) incorporates additional factors
(other than the factors described in
paragraph (2)(A)) relating to--
[(I) excess poverty in urban,
rural, and suburban local
areas; and
[(II) excess unemployment
above the State average in
urban, rural, and suburban
local areas; and
[(ii) was developed by the State
board and approved by the Secretary as
part of the State plan.
[(4) Transfer authority.--A local board may transfer,
if such a transfer is approved by the Governor, not
more than 20 percent of the funds allocated to the
local area under paragraph (2)(A) or (3), and 20
percent of the funds allocated to the local area under
paragraph (2)(B), for a fiscal year between--
[(A) adult employment and training
activities; and
[(B) dislocated worker employment and
training
activities.
[(5) Allocation.--
[(A) In general.--The Governor of the State
shall allocate the funds described in paragraph
(1) to local areas under paragraphs (2) and (3)
for the purpose of providing a single system of
employment and training activities for adults
and dislocated workers in accordance with
subsections (d) and (e) of section 134.
[(B) Additional requirements.--
[(i) Adults.--Funds allocated under
paragraph (2)(A) or (3) shall be used
by a local area to contribute
proportionately to the costs of the
one-stop delivery system described in
section 134(c) in the local area, and
to pay for employment and training
activities provided to adults in the
local area, consistent with section
134.
[(ii) Dislocated workers.--Funds
allocated under paragraph (2)(B) shall
be used by a local area to contribute
proportionately to the costs of the
one-stop delivery system described in
section 134(c) in the local area, and
to pay for employment and training
activities provided to dislocated
workers in the local area, consistent
with section 134.]
(a) Reservation for Statewide Activities.--The Governor of a
State may reserve up to 50 percent of the total amount allotted
to the State under section 132 for a fiscal year to carry out
the statewide activities described in section 134(a).
(b) Allocations to Local Areas.--
(1) In general.--Of the amounts allotted to the State
under section 132(b)(2) and not reserved under
subsection (a)--
(A) 80 percent of such amounts shall be
allocated by the Governor to local areas in
accordance with paragraph (2); and
(B) 20 percent of such amounts shall be
allocated by the Governor to local areas in
accordance with paragraph (3).
(2) Established formula.--
(A) In general.--Of the amounts described in
paragraph (1)(A), the Governor shall allocate--
(i) 60 percent on the basis of the
relative number of unemployed
individuals in each local area,
compared to the total number of
unemployed individuals in all local
areas in the State;
(ii) 15 percent on the basis of the
relative excess number of unemployed
individuals in each local area,
compared to the total excess number of
unemployed individuals in all local
areas in the State;
(iii) 15 percent on the basis of the
relative number of individuals in the
civilian labor force in each local
area, compared to the total number of
individuals in the civilian labor force
in all local areas in the State; and
(iv) 10 percent shall be allotted on
the basis of the relative number of
disadvantaged adults in each local
area, compared to the total number of
disadvantaged adults in all local areas
in the State.
(B) Minimum and maximum percentages.--The
Governor shall ensure that no local area shall
receive an allocation for a fiscal year under
this paragraph that is less than 90 percent or
greater than 130 percent of the allocation
percentage of the local area for the preceding
fiscal year.
(C) Definitions.--
(i) Allocation percentage.--The term
``allocation percentage'', used with
respect to fiscal year 2004 or a
subsequent fiscal year, means a
percentage of amount described in
paragraph (1)(A) that is received
through an allocation made under this
paragraph for the fiscal year. The
term, with respect to fiscal year 2003,
means the percentage of the amounts
allocated to local areas under this
chapter (as in effect on the day before
the date of enactment of the Workforce
Reinvestment and Adult Education Act of
2003) that is received by the local
area involved for fiscal year 2003.
(ii) Disadvantaged adult.--The term
``disadvantaged adult'' means an
individual who is age 22 through 72 who
received an income, or is a member of a
family that received a total family
income, that, in relation to family
size, does not exceed the poverty line.
(iii) Excess number.--The term
``excess number'' means, used with
respect to the excess number of
unemployed individuals within a local
area, the number that represents the
number of unemployed individuals in
excess of 4.5 percent of the civilian
labor force in the local area.
(3) Discretionary allocation.--The Governor shall
allocate to local areas the amounts described in
paragraph (1)(B) based on a formula developed in
consultation with the State board and local boards.
Such formula shall be objective and geographically
equitable and may include such demographic and economic
factors as the Governor, after consultation with the
State board and local boards, determines are
appropriate.
(4) Local administrative cost limit.--
(A) In general.--Of the amounts allocated to
a local area under this subsection and section
128(b) for a fiscal year, not more than 10
percent of the amount may be used by the local
boards for the administrative costs of carrying
out local workforce investment activities under
this chapter or chapter 4.
(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may
be used for the administrative costs of any of
the local workforce investment activities
described in this chapter or chapter 4,
regardless of whether the funds were allocated
under this subsection or section 128(b).
(c) Reallocation Among Local Areas.--
(1) In general.--The Governor may, in accordance with
this subsection, reallocate to eligible local areas
within the State amounts that are allocated under
[paragraph (2)(A) or (3) of] subsection (b) for adult
employment and training activities and that are
available for reallocation.
[(2) Amount.--The amount available for reallocation
for a program year is equal to the amount by which the
unobligated balance of the local area allocation under
paragraph (2)(A) or (3) of subsection (b) for such
activities, at the end of the program year prior to the
program year for which the determination under this
paragraph is made exceeds 20 percent of such allocation
for the prior program year.]
(2) Amount.--The amount available for reallocation
for a program year is equal to the amount by which the
unexpended balance, excluding accrued expenditures, at
the end of such program year of the total amount of
funds available to the local area under this section
during such program year (including amounts allotted to
the local area in prior program years that remain
available during the program year for which the
determination is made) exceeds 30 percent of such total
amount.
(3) Reallocation.--In making reallocations to
eligible local areas of amounts available pursuant to
paragraph (2) for a program year, the Governor shall
allocate to each eligible local area within the State
an amount based on the relative amount allocated to
such local area under subsection (b)[(3)] for such
activities for [the prior program year] the program
year in which the determination is made, as compared to
the total amount allocated to all eligible local areas
in the State under subsection (b)[(3)] for such
activities for [such prior program year] such program
year. [For purposes of this paragraph, local areas that
received allocations under subsection (b)(2)(A) for the
prior program year shall be treated as if the local
areas received allocations under subsection (b)(3) for
such year.]
[(4) Eligibility.--For purposes of this subsection,
an eligible local area means a local area that has
obligated at least 80 percent of the local area
allocation under paragraph (2)(A) or (3) of subsection
(b) for such activities, for the program year prior to
the program year for which the determination under
paragraph (2) is made.]
(4) Eligibility.--For purposes of this subsection, an
eligible local area means a local area which does not
have an amount available for reallocation under
paragraph (2) for the program year for which the
determination under paragraph (2) is made.
SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.
(a) Statewide Employment and Training Activities.--
[(1) In general.--Funds reserved by a Governor for a
State--
[(A) as described in section 133(a)(2) shall
be used to carry out the statewide rapid
response activities described in paragraph
(2)(A); and
[(B) as described in sections 128(a) and
133(a)(1)--
[(i) shall be used to carry out the
statewide employment and training
activities described in paragraph
(2)(B); and
[(ii) may be used to carry out any of
the statewide employment and training
activities described in paragraph (3),
regardless of whether the funds were allotted
to the State under section 127(b)(1) or under
paragraph (1) or (2) of section 132(b).
[(2) Required statewide employment and training
activities.--
[(A) Statewide rapid response activities.--A
State shall use funds reserved as described in
section 133(a)(2) to carry out statewide rapid
response activities, which shall include--
[(i) provision of rapid response
activities, carried out in local areas
by the State or by an entity designated
by the State, working in conjunction
with the local boards and the chief
elected officials in the local areas;
and
[(ii) provision of additional
assistance to local areas that
experience disasters, mass layoffs or
plant closings, or other events that
precipitate substantial increases in
the number of unemployed individuals,
carried out in local areas by the State
or by an entity designated by the
State, working in conjunction with the
local boards and the chief elected
officials in the local areas.
[(B) Other required statewide employment and
training activities.--A State shall use funds
reserved as described in sections 128(a) and
133(a)(1) (regardless of whether the funds were
allotted to the State under section 127(b)(1)
or paragraph (1) or (2) of section 132(b)) to
carry out other statewide employment and
training activities, which shall include--
[(i) disseminating the State list of
eligible providers of training
services, including eligible providers
of nontraditional training services,
information identifying eligible
providers of on-the-job training and
customized training, and performance
information and program cost
information, as described in
subsections (e) and (h) of section 122;
[(ii) conducting evaluations, under
section 136(e), of activities
authorized in this section, in
coordination with the activities
carried out under section 172;
[(iii) providing incentive grants to
local areas for regional cooperation
among local boards (including local
boards for a designated region as
described in section 116(c)), for local
coordination of activities carried out
under this Act, and for exemplary
performance by local areas on the local
performance measures;
[(iv) providing technical assistance
to local areas that fail to meet local
performance measures;
[(v) assisting in the establishment
and operation of one-stop delivery
systems described in subsection (c);
and
[(vi) operating a fiscal and
management accountability information
system under section 136(f ).
[(3) Allowable statewide employment and training
activities.--
[(A) In general.--A State may use funds
reserved as described in sections 128(a) and
133(a)(1) (regardless of whether the funds were
allotted to the State under section 127(b)(1)
or paragraph (1) or (2) of section 132(b)) to
carry out additional statewide employment and
training activities, which may include--
[(i) subject to subparagraph (B),
administration by the State of the
activities authorized under this
section;
[(ii) provision of capacity building
and technical assistance to local
areas, one-stop operators, one-stop
partners, and eligible providers,
including the development and training
of staff and the development of
exemplary program activities;
[(iii) conduct of research and
demonstrations;
[(iv)(I) 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
[(II) the establishment and
implementation of programs targeted to
empowerment zones and enterprise
communities;
[(v) support for the identification
of eligible providers of training
services as required under section 122;
[(vi)(I) implementation of innovative
programs for displaced homemakers,
which for purposes of this
subclause may include an individual who
is receiving public assistance and is
within 2 years of exhausting lifetime
eligibility under part A of title IV of
the Social Security Act (42 U.S.C. 601
et seq.); and
[(II) implementation of programs to
increase the number of individuals
training for and placed in
nontraditional employment; and
[(vii) carrying out other activities
authorized in this section that the
State determines to be necessary to
assist local areas in carrying out
activities described in subsection (d)
or (e) through the statewide workforce
investment system.
[(B) Limitation.--
[(i) In general.--Of the funds
allotted to a State under sections
127(b) and 132(b) and reserved as
described in sections 128(a) and
133(a)(1) for a fiscal year--
[(I) not more than 5 percent
of the amount allotted under
section 127(b)(1);
[(II) not more than 5 percent
of the amount allotted under
section 132(b)(1); and
[(III) not more than 5
percent of the amount allotted
under section 132(b)(2),
may be used by the State for the
administration of youth activities
carried out under section 129 and
employment and training activities
carried out under this section.
[(ii) Use of funds.--Funds made
available for administrative costs
under clause (i) may be used for the
administrative cost of any of the
statewide youth activities or statewide
employment and training activities,
regardless of whether the funds were
allotted to the State under section
127(b)(1) or paragraph (1) or (2) of
section 132(b).]
(1) In general.--
(A) Required use of funds.--Not less than 50
percent of the funds reserved by a Governor
under section 133(a) shall be used to support
the provision of core services in local areas,
consistent with the local plan, through one-
stop delivery systems by distributing funds to
local areas in accordance with subparagraph
(B). Such funds may be used by States to employ
State personnel to provide such services in
designated local areas in consultation with
local boards.
(B) Method of distributing funds.--The method
of distributing funds under this paragraph
shall be developed in consultation with the
State board and local boards. Such method of
distribution, which may include the formula
established under section 121(h)(3), shall be
objective and geographically equitable, and may
include factors such as the number of centers
in the local area that have been certified, the
population served by such centers, and the
performance of such centers.
(C) Other use of funds.--Funds reserved by a
Governor for a State--
(i) under section 133(a) and not used
under subparagraph (A), may be used for
statewide activities described in
paragraph (2); and
(ii) under section 133(a) and not
used under subparagraph (A), and under
section 128(a) may be used to carry out
any of the statewide employment and
training activities described in
paragraph (3).
(2) Statewide rapid response activities.--A State
shall carry out statewide rapid response activities
using funds reserved as described in section 133(a).
Such activities shall include--
(A) provision of rapid response activities,
carried out in local areas by the State or by
an entity designated by the State, working in
conjunction with the local boards and the chief
elected officials in the local areas; and
(B) provision of additional assistance to
local areas that experience disasters, mass
layoffs or plant closings, or other events that
precipitate substantial increases in the number
of unemployed individuals, carried out in local
areas by the State, working in conjunction with
the local boards and the chief elected
officials in the local areas.
(3) Statewide activities.--Funds reserved by a
Governor for a State as described in sections 133(a)
and 128(a) may be used for statewide activities
including--
(A) supporting the provision of core services
described in section 134(c)(2) in the one-stop
delivery system;
(B) conducting evaluations under section
136(e) of activities authorized under this
chapter and chapter 4 in coordination with
evaluations carried out by the Secretary under
section 172, research, and demonstration
projects;
(C) providing incentive grants to local areas
for regional cooperation among local boards
(including local boards in a designated region
as described in section 116(c)), for local
coordination of activities carried out under
this Act, and for exemplary performance by
local areas on the local performance measures;
(D) providing technical assistance and
capacity building to local areas, one-stop
operators, one-stop partners, and eligible
providers, including the development and
training of staff, the development of exemplary
program activities, and the provision of
technical assistance to local areas that fail
to meet local performance measures;
(E) operating a fiscal and management
accountability system under section 136(f);
(F) carrying out monitoring and oversight of
activities carried out under this chapter and
chapter 4;
(G) implementing innovative programs, such as
incumbent worker training programs, programs
serving individuals with disabilities
consistent with section 188;
(H) developing strategies for effectively
serving hard-to-serve populations and for
integrating programs and services among one-
stop partners;
(I) implementing innovative programs for
displaced homemakers, which for purposes of
this subparagraph may include an individual who
is receiving public assistance and is within 2
years of exhausting lifetime eligibility under
Part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.); and
(J) implementing programs to increase the
number of individuals training for and placed
in nontraditional employment.
(4) Limitation.--Not more than 5 percent of the funds
allotted under section 132(b) shall be used by the
State for administrative activities carried out under
this subsection and section 128(a).
(b) Local Employment and Training Activities.--Funds
allocated to a local area for adults [under paragraph (2)(A) or
(3), as appropriate, of section 133(b), and funds allocated to
a local area for dislocated workers under section 133(b)(2)(B)]
under section 133(b)--
(1) shall be used to carry out employment and
training activities described in subsection (d) for
adults [or dislocated workers, respectively]; and
(2) may be used to carry out employment and training
activities described in subsection (e) for adults [or
dislocated workers, respectively].
[(c) Establishment of One-Stop Delivery System.--
[(1) In general.--There shall be established in a
State that receives an allotment under section 132(b) a
one-stop delivery system, which--
[(A) shall provide the core services
described in
subsection (d)(2);
[(B) shall provide access to intensive
services and training services as described in
paragraphs (3) and (4) of subsection (d),
including serving as the point of access to
individual training accounts for training
services to participants in accordance with
subsection (d)(4)(G);
[(C) shall provide access to the activities
carried out under subsection (e), if any;
[(D) shall provide access to programs and
activities carried out by one-stop partners and
described in section 121(b); and
[(E) shall provide access to the information
described in section 15 of the Wagner-Peyser
Act and all job search, placement, recruitment,
and other labor exchange services authorized
under the Wagner-Peyser Act (29 U.S.C. 49 et
seq.).
[(2) One-stop delivery.--At a minimum, the one-stop
delivery system--
[(A) shall make each of the programs,
services, and activities described in paragraph
(1) accessible at not less than one physical
center in each local area of the State; and
[(B) may also make programs, services, and
activities described in paragraph (1)
available--
[(i) through a network of affiliated
sites that can provide one or more of
the programs, services, and activities
to individuals; and
[(ii) through a network of eligible
one-stop
partners--
[(I) in which each partner
provides one or more of the
programs, services, and
activities to such individuals
and is accessible at an
affiliated site that consists
of a physical location or an
electronically or
technologically linked access
point; and
[(II) that assures
individuals that information on
the availability of the core
services will be available
regardless of where the
individuals initially enter the
statewide workforce investment
system, including information
made available through an
access point described in
subclause (I).
[(3) Specialized centers.--The centers and sites
described in paragraph (2) may have a specialization in
addressing special needs, such as the needs of
dislocated workers.]
[(d)] (c) Required Local Employment and Training
Activities.--
[(1) In general.--
[(A) Allocated funds.--Funds allocated to a
local area for adults under paragraph (2)(A) or
(3), as appropriate, of section 133(b), and
funds allocated to the local area for
dislocated workers under section 133(b)(2)(B),
shall be used--
[(i) to establish a one-stop delivery
system described in subsection (c);
[(ii) to provide the core services
described in paragraph (2) to adults
and dislocated workers, respectively,
through the one-stop delivery system in
accordance with such paragraph;
[(iii) to provide the intensive
services described in paragraph (3) to
adults and dislocated workers,
respectively, described in such
paragraph; and
[(iv) to provide training services
described in paragraph (4) to adults
and dislocated workers, respectively,
described in such paragraph.
[(B) Other funds.--A portion of the funds
made available under Federal law authorizing
the programs and activities described in
section 121(b)(1)(B), including the Wagner-
Peyser Act (29 U.S.C. 49 et seq.), shall be
used as described in clauses (i) and (ii) of
subparagraph (A), to the extent not
inconsistent with the Federal law involved.]
(1) In general.--Funds allocated to a local area for
adults under section 133(b) shall be used--
(A) to establish a one-stop delivery system
as described in section 121(e);
(B) to provide the core services described in
paragraph (2) through the one-stop delivery
system in accordance with such paragraph;
(C) to provide the intensive services
described in paragraph (3) to adults described
in such paragraph; and
(D) to provide training services described in
paragraph (4) to adults described in such
paragraph.
(2) Core services.--Funds described in paragraph
(1)(A) shall be used to provide core services, which
shall be available to individuals [who are adults or
dislocated workers] through the one-stop delivery
system and shall, at a minimum, include--
(A) determinations of whether the individuals
are eligible to receive assistance [under this
subtitle] under the one-stop partner programs
described in section 121(b);
* * * * * * *
[(D) job search and placement assistance, and
where appropriate, career counseling;]
(D) labor exchange services, including--
(i) job search and placement
assistance, and where appropriate
career counseling; and
(ii) appropriate recruitment services
for employers;
* * * * * * *
(I) provision of information regarding filing
claims for unemployment compensation and the
administration of the work test for the
unemployment compensation system;
[(J) assistance in establishing eligibility
for--
[(i) welfare-to-work activities
authorized under section 403(a)(5) of
the Social Security Act (as added by
section 5001 of the Balanced Budget Act
of 1997) available in the local area;
and
[(ii) programs of financial aid
assistance for training and education
programs that are not funded under this
Act and are available in the local
area; and]
(J) assistance in establishing eligibility
for programs of financial aid assistance for
training and education programs that are not
funded under this Act and are available in the
local area; and
* * * * * * *
(3) Intensive services.--
[(A) In general.--Funds allocated to a local
area for adults under paragraph (2)(A) or (3),
as appropriate, of section 133(b), and funds
allocated to the local area for dislocated
workers under section 133(b)(2)(B), shall be
used to provide intensive services to adults
and dislocated workers, respectively--
[(i)(I) who are unemployed and are
unable to obtain employment through
core services provided under paragraph
(2); and
[(II) who have been determined by a
one-stop operator to be in need of more
intensive services in order to obtain
employment; or
[(ii) who are employed, but who are
determined by a one-stop operator to be
in need of such intensive services in
order to obtain or retain employment
that allows for self-sufficiency.]
(A) In general.--
(i) Eligibility.--Funds allocated to
a local area under section 133(b) shall
be used to provide intensive services
for adults who--
(I) are unemployed and who
have been determined by the
one-stop operator to be--
(aa) unlikely or
unable to obtain
suitable employment
through core services;
and
(bb) in need of
intensive services in
order to obtain
suitable employment; or
(II) are employed, but who
are determined by a one-stop
operator to be in need of
intensive services to obtain or
retain suitable employment.
(ii) Definition.--The Governor shall
define the term ``suitable employment''
for purposes of this subparagraph.
* * * * * * *
(C) Types of services.--Such intensive
services may include the following:
(i) * * *
* * * * * * *
(v) Case management [for participants
seeking training services under
paragraph (4)].
* * * * * * *
(vii) Internships and work
experience.
(viii) Literacy activities relating
to basic work readiness, and financial
literacy activities.
(ix) Out-of-area job search
assistance and relocation assistance.
(4) Training services.--
[(A) In general.--Funds allocated to a local
area for adults under paragraph (2)(A) or (3),
as appropriate, of section 133(b), and funds
allocated to a local area for dislocated
workers under section 133(b)(2)(B) shall be
used to provide training services to adults and
dislocated workers, respectively--
[(i) who have met the eligibility
requirements for intensive services
under paragraph (3)(A) and who are
unable to obtain or retain employment
through such services;
[(ii) who after an interview,
evaluation, or assessment, and case
management, have been determined by a
one-stop operator or one-stop partner,
as appropriate, to be in need of
training services and to have the
skills and qualifications to
successfully participate in the
selected program of training services;
[(iii) who select programs of
training services that are directly
linked to the employment opportunities
in the local area involved or in
another area in which the adults or
dislocated workers receiving such
services are willing to relocate;
[(iv) who meet the requirements of
subparagraph (B); and
[(v) who are determined to be
eligible in accordance with the
priority system, if any, in effect
under subparagraph (E).]
(A) In general.--
(i) Eligibility.--Funds allocated to
a local area under section 133(b) shall
be used to provide training services to
adults who--
(I) after an interview,
evaluation, or assessment, and
case management, have been
determined by a one-stop
operator or one-stop partner,
as appropriate, to--
(aa) be unlikely or
unable to obtain or
retain suitable
employment through
intensive services
under paragraph (3)(A);
(bb) be in need of
training services to
obtain or retain
suitable employment;
and
(cc) have the skills
and qualifications to
successfully
participate in the
selected program of
training services;
(II) select programs of
training services that are
directly linked to the
employment opportunities in the
local area involved or in
another area in which the
adults receiving such services
are willing to commute or
relocate;
(III) who meet the
requirements of subparagraph
(B); and
(IV) who are determined
eligible in accordance with the
priority system in effect under
subparagraph (E).
(ii) The Governor shall define the
term ``suitable employment'' for
purposes of this subparagraph.
(B) Qualification.--
(i) Requirement.--[Except]
Notwithstanding section 479B of the
Higher Education Act of 1965 (20 U.S.C.
1087uu) and except as provided in
clause (ii), provision of such training
services shall be limited to
individuals who--
(I) * * *
* * * * * * *
[(E) Priority.--In the event that funds
allocated to a local area for adult employment
and training activities under paragraph (2)(A)
or (3) of section 133(b) are limited, priority
shall be given to recipients of public
assistance and other low-income individuals for
intensive services and training services. The
appropriate local board and the Governor shall
direct the one-stop operators in the local area
with regard to making determinations related to
such priority.]
(E) Priority.--
(i) In general.--A priority shall be
given to unemployed individuals for the
provision of intensive and training
services under this subsection.
(ii) Additional priority.--If the
funds in the local area, including the
funds allocated under section 133(b),
for serving recipients of public
assistance and other low-income
individuals is limited, the priority
for the provision of intensive and
training services under this subsection
shall include such recipients and
individuals.
(iii) Determinations.--The Governor
and the appropriate local board shall
direct the one-stop operators in the
local area with regard to making
determinations with respect to the
priority of service under this
subparagraph.
(F) Consumer choice requirements.--
(i) * * *
* * * * * * *
(iv) Enhanced individual training
accounts.--Each local board may,
through one-stop centers, assist
individuals receiving individual
training accounts through the
establishment of such accounts that
include, in addition to the funds
provided under this paragraph, funds
from other programs and sources that
will assist the individual in obtaining
training services.
(G) Use of individual training accounts.--
(i) * * *
* * * * * * *
(iv) Definition.--In this
subparagraph, the term ``special
participant population that faces
multiple barriers to employment'' means
a population of low-income individuals
that is included in one or more of the
following categories:
(I) * * *
* * * * * * *
(IV) Individuals with
disabilities.
[(IV)] (V) Other hard-to-
serve populations as defined by
the Governor involved.
[(e)] (d) Permissible Local Employment and Training
Activities.--
[(1) Discretionary one-stop delivery activities.--
Funds allocated to a local area for adults under
paragraph (2)(A) or (3), as appropriate, of section
133(b), and funds allocated to the local area for
dislocated workers under section 133(b)(2)(B), may be
used to provide, through one-stop delivery described in
subsection (c)(2)--
[(A) customized screening and referral of
qualified participants in training services
described in subsection (d)(4) to employment;
and
[(B) customized employment-related services
to employers on a fee-for-service basis.]
(1) Discretionary one-stop delivery activities.--
(A) In general.--Funds allocated to a local
area under section 133(b) may be used to
provide, through the one-stop delivery system--
(i) customized screening and referral
of qualified participants in training
services to employers;
(ii) customized employment-related
services to employers on a fee-for-
service basis;
(iii) customer support to navigate
among multiple services and activities
for special participant populations
that face multiple barriers to
employment, including individuals with
disabilities; and
(iv) employment and training
assistance provided in coordination
with child support enforcement
activities of the State agency carrying
out subtitle D of title IV of the
Social Security Act.
(B) Work support activities for low-wage
workers.--
(i) In general.-- Funds allocated to
a local area under 133(b) may be used
to provide, through the one-stop
delivery system and in collaboration
with the appropriate programs and
resources of the one-stop partners,
work support activities designed to
assist low-wage workers in retaining
and enhancing employment.
(ii) Activities.--The activities
described in clause (i) may include
assistance in accessing financial
supports for which such workers may be
eligible and the provision of
activities available through the one-
stop delivery system in a manner that
enhances the opportunities of such
workers to participate, such as the
provision of employment and training
activities during nontraditional hours
and the provision of on-site child care
while such activities are being
provided.
* * * * * * *
(4) Incumbent worker training programs.--
(A) In general.--The local board may use up
to 10 percent of the funds allocated to a local
area under section 133(b) to carry out
incumbent worker training programs in
accordance with this paragraph.
(B) Training activities.--The training
programs for incumbent workers under this
paragraph shall be carried out by the local
area in conjunction with the employers of such
workers for the purpose of assisting such
workers in obtaining the skills necessary to
retain employment and avert layoffs.
(C) Employer match required.--
(i) In general.--Employers
participating in programs under this
paragraph shall be required to pay a
proportion of the costs of providing
the training to the incumbent workers.
The Governor shall establish, or may
authorize the local board to establish,
the required portion of such costs,
which shall not be less than--
(I) 10 percent of the costs,
for employers with 50 or fewer
employees;
(II) 25 percent of the costs,
for employers with more than 50
employees but fewer than 100
employees; and
(III) 50 percent of the
costs, for employers with 100
or more employees.
(ii) Calculation of match.--The wages
paid by an employer to a worker while
they are attending training may be
included as part of the requirement
payment of the employer.
CHAPTER 6--GENERAL PROVISIONS
SEC. 136. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) * * *
(b) State Performance Measures.--
(1) In general.--For each State, the State
performance measures shall consist of--
(A)(i) the core indicators of performance
described in paragraph (2)(A) [and the customer
satisfaction indicator of performance described
in paragraph (2)(B)]; and
(ii) additional indicators of performance (if
any) identified by the State under paragraph
[(2)(C)] (2)(B); and
* * * * * * *
(2) Indicators of performance.--
(A) Core indicators of performance.--
(i) In general.--The core indicators
of performance for employment and
training activities authorized under
section 134 [(except for self-service
and informational activities) and (for
participants who are eligible youth age
19 through 21) for youth activities
authorized under section 129] shall
consist of--
(I) * * *
* * * * * * *
[(IV) attainment of a
recognized credential relating
to achievement of educational
skills, which may include
attainment of a secondary
school diploma or its
recognized equivalent, or
occupational skills, by
participants who enter
unsubsidized employment, or by
participants who are eligible
youth age 19 through 21 who
enter postsecondary education,
advanced training, or
unsubsidized employment.
[(ii) Core indicators for eligible
youth.--The core indicators of
performance (for participants who are
eligible youth age 14 through 18) for
youth activities authorized under
section 129, shall include--
[(I) attainment of basic
skills and, as appropriate,
work readiness or occupational
skills;
[(II) attainment of secondary
school diplomas and their
recognized equivalents; and
[(III) placement and
retention in postsecondary
education or advanced training,
or placement and retention in
military service, employment,
or qualified apprenticeships.
[(B) Customer satisfaction indicators.--The
customer satisfaction indicator of performance
shall consist of customer satisfaction of
employers and participants with services
received from the workforce investment
activities authorized under this subtitle.
Customer satisfaction may be measured through
surveys conducted after the conclusion of
participation in the workforce investment
activities.]
(IV) the efficiency of the
program in obtaining the
outcomes described in
subclauses (I) through (III).
(ii) Core indicators for eligible
youth.--The core indicators of
performance for youth activities
authorized under section 129 shall
consist of--
(I) entry into employment,
education or advanced training,
or military service;
(II) attainment of secondary
school diplomas or the General
Equivalency Diploma (GED)
(including recognized
alternative standards for
individuals with disabilities);
(III) attainment of literacy
or numeracy skills; and
(IV) the efficiency of the
program in obtaining the
outcomes described in
subclauses (I) through (III).
[(C)] (B) Additional indicators.--A State may
identify in the State plan additional
indicators for workforce investment activities
authorized under this subtitle. Such indicators
may include customer satisfaction of employers
and participants with services received from
the workforce investment activities authorized
under this subtitle.
(3) Levels of performance.--
(A) State adjusted levels of performance for
core indicators and customer satisfaction
indicator.--
(i) In general.--For each State
submitting a State plan, there shall be
established, in accordance with this
subparagraph, levels of performance for
each of the core indicators of
performance described in paragraph
(2)(A) [and the customer satisfaction
indicator described in paragraph
(2)(B)] for workforce investment
activities authorized under this
subtitle. The levels of performance
established under this subparagraph
shall, at a minimum--
(I) * * *
* * * * * * *
(ii) Identification in state plan.--
Each State shall identify, in the State
plan submitted under section 112,
expected levels of performance for each
of the core indicators of performance
[and the customer satisfaction
indicator of performance, for the first
3] for the 2 program years covered by
the State plan.
(iii) Agreement on state adjusted
levels of performance [for first 3
years].--In order to ensure an optimal
return on the investment of Federal
funds in workforce investment
activities authorized under this
subtitle, the Secretary and each
Governor shall reach agreement on
levels of performance for each of the
core indicators of performance [and the
customer satisfaction indicator of
performance, for the first 3] for the 2
program years covered by the State
plan, taking into account the levels
identified in the State plan under
clause (ii) and the factors described
in clause (iv). The levels agreed to
under this clause shall be considered
to be the State adjusted levels of
performance for the State for such
years and shall be incorporated into
the State plan prior to the approval of
such plan.
(iv) Factors.--The agreement
described in clause (iii) or (v) shall
take into account--
[(I) the extent to which the
levels involved will assist the
State in attaining a high level
of customer satisfaction;]
[(II)] (I) how the levels
involved compare with the State
adjusted levels of performance
established for other States,
[taking into account] which
shall be adjusted based on
factors including differences
in economic conditions such as
unemployment rates and job
losses or gains in particular
industries, the characteristics
of participants when the
participants entered the
program such as indicators of
poor work history, lack of work
experience, low levels of
literacy or English
proficiency, disability status,
and welfare dependency, and the
services to be provided; and
[(III)] (II) the extent to
which such levels involved
promote continuous improvement
in performance on the
performance measures by such
State and ensure optimal return
on the investment of Federal
funds.
[(v) Agreement on state adjusted
levels of performance for 4th and 5th
years.--Prior to the 4th program year
covered by the State plan, the
Secretary and each Governor shall reach
agreement on levels of performance for
each of the core indicators of
performance and the customer
satisfaction indicator of performance,
for the 4th and 5th program years
covered by the State plan, taking into
account the factors described in clause
(iv). The levels agreed to under this
clause shall be considered to be the
State adjusted levels of performance
for the State for such years and shall
be incorporated into the State plan.]
[(vi)] (v) Revisions.--If
unanticipated circumstances arise in a
State resulting in a significant change
in the factors described in clause
(iv)(II), the Governor may request that
the State adjusted levels of
performance agreed to under clause
(iii) or (v) be revised. The Secretary,
after collaboration with the
representatives described in subsection
(i), shall issue objective criteria and
methods for making such revisions.
(B) Levels of performance for additional
indicators.--The State may identify, in the
State plan, State levels of performance for
each of the additional indicators described in
paragraph [(2)(C)] (2)(B). Such levels shall be
considered to be State adjusted levels of
performance for purposes of this title.
(c) Local Performance Measures.--
(1) In general.--For each local area in a State, the
local performance measures shall consist of--
(A)(i) the core indicators of performance
described in subsection (b)(2)(A)[, and the
customer satisfaction indicator of performance
described in subsection (b)(2)(B),] for
activities described in such subsections, other
than statewide workforce investment activities;
and
(ii) additional indicators of performance (if
any) identified by the State under subsection
[(b)(2)(C)] (b)(2)(B) for activities described
in such subsection, other than statewide
workforce investment activities; and
* * * * * * *
[(3) Determinations.--In determining such local
levels of performance, the local board, the chief
elected official, and the Governor shall take into
account the specific economic, demographic, and other
characteristics of the populations to be served in the
local area.]
(3) Determinations.--In determining such local levels
of performance, the local board, the chief elected
official, and the Governor shall ensure such levels are
adjusted based on the specific economic characteristics
(such as unemployment rates and job losses or gains in
particular industries), demographic characteristics, or
other characteristics of the population to be served in
the local area, such as poor work history, lack of work
experience, low levels of literacy or English
proficiency, disability status, and welfare dependency.
(d) Report.--
(1) In general.--Each State that receives an
allotment under section 127 or 132 shall annually
prepare and submit to the Secretary a report on the
progress of the State in achieving State performance
measures, including information on the levels of
performance achieved by the State with respect to the
core indicators of performance [and the customer
satisfaction indicator]. The annual report also shall
include information regarding the progress of local
areas in the State in achieving local performance
measures, including information on the levels of
performance achieved by the areas with respect to the
core indicators of performance [and the customer
satisfaction indicator]. The report also shall include
information on the status of State evaluations of
workforce investment activities described in subsection
(e).
(2) Additional information.--In preparing such
report, the State shall include, at a minimum,
information on participants in workforce investment
activities authorized under this subtitle relating to--
(A) * * *
* * * * * * *
(E) performance with respect to the
indicators of performance specified in
subsection (b)(2)(A) of participants in
workforce investment activities who received
the training services compared with the
performance of participants in workforce
investment activities who received only
services other than the training services
[(excluding participants who received only
self-service and informational activities)];
and
* * * * * * *
(4) Data validation.--In preparing the reports
described in this subsection, the States shall
establish procedures, consistent with guidelines issued
by the Secretary, to ensure the information contained
in the report is valid and reliable.
* * * * * * *
(g) Sanctions for State Failure To Meet State Performance
Measures.--
(1) States.--
(A) Technical assistance.--If a State fails
to meet State adjusted levels of performance
relating to indicators described in
subparagraph (A) [or (B)] of subsection (b)(2)
for a program for any program year, the
Secretary shall, upon request, provide
technical assistance in accordance with section
170, including assistance in the development of
a performance improvement plan.
(2) Funds resulting from reduced allotments.--The
Secretary shall use an amount retained, as a result of
a reduction in an allotment to a State made under
paragraph (1)(B), to provide incentive grants under
section [503] 136(i).
(h) Sanctions for Local Area Failure To Meet Local
Performance Measures.--
(1) Technical assistance.--If a local area fails to
meet levels of performance relating to indicators
described in subparagraph (A) [or (B)] of subsection
(b)(2) for a program for any program year, the
Governor, or upon request by the Governor, the
Secretary, shall provide technical assistance, which
may include assistance in the development of a
performance improvement plan, or the development of a
modified local plan.
(2) Corrective actions.--
(A) * * *
[(B) Appeal by local area.--
[(i) Appeal to governor.--A local
area that is subject to a
reorganization plan under subparagraph
(A) may, not later than 30 days after
receiving notice of the reorganization
plan, appeal to the Governor to rescind
or revise such plan. In such case, the
Governor shall make a final decision
not later then 30 days after the
receipt of the appeal.
[(ii) Subsequent action.--The local
area may, not later than 30 days after
receiving a decision from the Governor
pursuant to clause (i), appeal such
decision to the Secretary. In such
case, the Secretary shall make a final
decision not later than 30 days after
the receipt of the appeal.]
(B) Appeal to governor.--A local area that is
subject to a reorganization plan under
subparagraph (A) may, not later than 30 days
after receiving notice of the reorganization
plan, appeal to the Governor to rescind or
revise such plan. In such case, the Governor
shall make a final decision not later than 30
days after the receipt of the appeal.
* * * * * * *
[(i) Other Measures and Terminology.--
[(1) Responsibilities.--In order to ensure nationwide
comparability of performance data, the Secretary, after
collaboration with representatives of appropriate
Federal agencies, and representatives of States and
political subdivisions, business and industry,
employees, eligible providers of employment and
training activities, educators, and participants, with
expertise regarding workforce investment policies and
workforce investment activities, shall issue--
[(A) definitions for information required to
be reported under subsection (d)(2);
[(B) terms for a menu of additional
indicators of performance described in
subsection (b)(2)(C) to assist States in
assessing their progress toward State workforce
investment goals; and
[(C) objective criteria and methods described
in subsection (b)(3)(A)(vi) for making
revisions to levels of performance.
[(2) Definitions for core indicators.--The Secretary
and the representatives described in paragraph (1)
shall participate in the activities described in
section 502 concerning the issuance of definitions for
indicators of performance described in subsection
(b)(2)(A).
[(3) Assistance.--The Secretary shall make the
services of staff available to the representatives to
assist the representatives in participating in the
collaboration described in paragraph (1) and in the
activities described in section 502.]
(i) Incentive Grants for States and Local Areas.--
(1) Incentive grants for states.--
(A) In general.--From funds appropriated
under section 174, the Secretary may award
grants to States for exemplary performance in
carrying programs under this chapters 4 and 5
of this title. Such awards may be based on
States meeting or exceeding the performance
measures established under this section, on the
performance of the State in serving special
populations, including the levels of service
provided and the performance outcomes, and such
other factors relating to the performance of
the State under this title as the Secretary
determines is appropriate.
(B) Use of funds.--The funds awarded to a
State under this paragraph may be used to carry
out any activities authorized under chapters 4
and 5 of this title, including demonstrations
and innovative programs for special
populations.
(2) Incentive grants for local areas.--
(A) In general.--From funds reserved under
sections 128(a) and 133(a), the Governor may
award incentive grants to local areas for
exemplary performance with respect to the
measures established under this section and
with the performance of the local area in
serving special populations, including the
levels of service and the performance outcomes.
(B) Use of funds.--The funds awarded to a
local area may be used to carry out activities
authorized for local areas under chapters 4 and
5 of this title, and such demonstration or
other innovative programs to serve special
populations as may be approved by the Governor.
SEC. 137. AUTHORIZATION OF APPROPRIATIONS.
(a) Youth Activities.--There are authorized to be
appropriated to carry out the activities described in section
127(a), [such sums as may be necessary for each of fiscal years
1999 through 2003] $1,001,000,000 for fiscal year 2004 and such
sums as may be necessary for each of fiscal years 2005 through
2009.
(b) Adult Employment and Training Activities.--There are
authorized to be appropriated to carry out the activities
described in [section 132(a)(1), such sums as may be necessary
for each of fiscal years 1999 through 2003] 132(a),
$3,079,800,000 for fiscal year 2004 and such sums as may be
necessary for each of fiscal years 2005 through 2009.
[(c) Dislocated Worker Employment and Training Activities.--
There are authorized to be appropriated to carry out the
activities described in section 132(a)(2), such sums as may be
necessary for each of fiscal years 1999 through 2003.]
Subtitle C--Job Corps
* * * * * * *
SEC. 153. COMMUNITY PARTICIPATION.
[(a) Business and Community Liaison.--Each Job Corps center
shall have a Business and Community Liaison (referred to in
this Act as a ``Liaison''), designated by the director of the
center.]
(a) Business and Community Participation.--The director of
each Job Corps center shall ensure the establishment and
development of the business and community relationships and
networks described in subsection (b) in order to enhance the
effectiveness of such center.
(b) [Responsibilities.--The responsibilities of the Liaison]
Networks.--The activities carried out by each Job Corps center
under this section shall include--
(1) * * *
* * * * * * *
(c) New Centers.--[The Liaison for] The director of a Job
Corps center that is not yet operating shall establish and
develop the relationships and networks described in subsection
(b) at least 3 months prior to the date on which the center
accepts the first enrollee at the center.
SEC. 154. INDUSTRY COUNCILS.
(a) * * *
(b) Industry Council Composition.--
(1) In general.--An industry council shall be
comprised of--
(A) a majority of members who shall be [local
and distant] owners of business concerns, chief
executives or chief operating officers of
nongovernmental employers, or other private
sector employers, who--
(i) * * *
* * * * * * *
(3) Employers outside of local areas.--The industry
council may include, or otherwise provide for
consultation with, employers from outside the local
area who are likely to hire a significant number of
enrollees from the Job Corps center.
* * * * * * *
SEC. 159. MANAGEMENT INFORMATION.
(a) * * *
* * * * * * *
(c) Information on Indicators of Performance.--
[(1) Establishment.--The Secretary shall, with
continuity and consistency from year to year, establish
indicators of performance, and expected levels of
performance for Job Corps centers and the Job Corps
program, relating to--
[(A) the number of graduates and the rate of
such graduation, analyzed by type of vocational
training received through the Job Corps program
and by whether the vocational training was
provided by a local or national service
provider;
[(B) the number of graduates who entered
unsubsidized employment related to the
vocational training received through the Job
Corps program and the number who entered
unsubsidized employment not related to the
vocational training received, analyzed by
whether the vocational training was provided by
a local or national service provider and by
whether the placement in the employment was
conducted by a local or national service
provider;
[(C) the average wage received by graduates
who entered unsubsidized employment related to
the vocational training received through the
Job Corps program and the average wage received
by graduates who entered unsubsidized
employment unrelated to the vocational training
received;
[(D) the average wage received by graduates
placed in unsubsidized employment after
completion of the Job Corps program--
[(i) on the first day of the
employment;
[(ii) 6 months after the first day of
the employment; and
[(iii) 12 months after the first day
of the employment,
analyzed by type of vocational training
received through the Job Corps program;
[(E) the number of graduates who entered
unsubsidized employment and were retained in
the unsubsidized employment--
[(i) 6 months after the first day of
the employment; and
[(ii) 12 months after the first day
of the employment;
[(F) the number of graduates who entered
unsubsidized employment--
[(i) for 32 hours per week or more;
[(ii) for not less than 20 but less
than 32 hours per week; and
[(iii) for less than 20 hours per
week;
[(G) the number of graduates who entered
postsecondary education or advanced training
programs, including apprenticeship programs, as
appropriate; and
[(H) the number of graduates who attained job
readiness and employment skills.]
(1) Core indicators.--The Secretary shall annually
establish expected levels of performance for Job Corps
centers and the Job Corps program relating to each of
the core indicators for youth identified in section
136(b)(2)(A)(ii).
(2) Performance of recruiters.--The Secretary shall
also establish performance [measures] indicators, and
expected performance levels on the performance
[measures] indicators, for local and national
recruitment service providers serving the Job Corps
program. The performance [measures] indicators shall
relate to the number of enrollees retained in the Job
Corps program for 30 days and for 60 days after initial
placement in the program.
* * * * * * *
Subtitle D--National Programs
SEC. 166. NATIVE AMERICAN PROGRAMS.
(a) * * *
* * * * * * *
(d) Authorized Activities.--
(1) * * *
[(2) Workforce investment activities and supplemental
services.--
[(A) In general.--Funds made available under
subsection (c) shall be used for--
[(i) comprehensive workforce
investment 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 this section.]
(2) Workforce investment activities and supplemental
services.--Funds made available under subsection (c)
shall be used for--
(A) comprehensive workforce investment
activities for Indians or Native Hawaiians; or
(B) supplemental services for Indian or
Native Hawaiian youth on or near Indian
reservations and in Oklahoma, Alaska, or
Hawaii.
* * * * * * *
(h) Administrative Provisions.--
(1) * * *
* * * * * * *
(4) Advisory council.--
(A) * * *
* * * * * * *
[(C) Duties.--The Council shall advise the
Secretary on all aspects of the operation and
administration of the programs assisted under
this section, including the selection of the
individual appointed as the head of the unit
established under paragraph (1).]
(C) Duties.--The Council shall advise the
Secretary on the operation and administration
of the programs assisted under this section.
* * * * * * *
[( j) Assistance to American Samoans in Hawaii.--
[(1) In general.--Notwithstanding any other provision
of law, the Secretary is authorized to provide
assistance to American Samoans who reside in Hawaii for
the co-location of federally funded and State-funded
workforce investment activities.
[(2) Authorization of appropriations.--There are
authorized to be appropriated for fiscal year 1999 such
sums as may be necessary to carry out this subsection.]
* * * * * * *
[SEC. 169. YOUTH OPPORTUNITY GRANTS.
[(a) Grants.--
[(1) In general.--Using funds made available under
section 127(b)(1)(A), the Secretary shall make grants
to eligible local boards and eligible entities
described in subsection (d) to provide activities
described in subsection (b) for youth to increase the
long-term employment of youth who live in empowerment
zones, enterprise communities, and high poverty areas
and who seek assistance.
[(2) Definition.--In this section, the term ``youth''
means an individual who is not less than age 14 and not
more than age 21.
[(3) Grant period.--The Secretary may make a grant
under this section for a 1-year period, and may renew
the grant for each of the 4 succeeding years.
[(4) Grant awards.--In making grants under this
section, the Secretary shall ensure that grants are
distributed equitably among local boards and entities
serving urban areas and local boards and entities
serving rural areas, taking into consideration the
poverty rate in such urban and rural areas, as
described in subsection (c)(3)(B).
[(b) Use of Funds.--
[(1) In general.--A local board or entity that
receives a grant under this section shall use the funds
made available through the grant to provide activities
that meet the requirements of section 129, except as
provided in paragraph (2), as well as youth development
activities such as activities relating to leadership
development, citizenship, and community service, and
recreation activities.
[(2) Intensive placement and followup services.--In
providing activities under this section, a local board
or entity shall provide--
[(A) intensive placement services; and
[(B) followup services for not less than 24
months after the completion of participation in
the other activities described in this
subsection, as appropriate.
[(c) Eligible Local Boards.--To be eligible to receive a
grant under this section, a local board shall serve a community
that--
[(1) has been designated as an empowerment zone or
enterprise community under section 1391 of the Internal
Revenue Code of 1986;
[(2)(A) is a State without a zone or community
described in paragraph (1); and
[(B) has been designated as a high poverty area by
the Governor of the State; or
[(3) is 1 of 2 areas in a State that--
[(A) have been designated by the Governor as
areas for which a local board may apply for a
grant under this section; and
[(B) meet the poverty rate criteria set forth
in subsections (a)(4), (b), and (d) of section
1392 of the Internal Revenue Code of 1986.
[(d) Eligible Entities.--To be eligible to receive a grant
under this section, an entity (other than a local board)
shall--
[(1) be a recipient of financial assistance under
section 166; and
[(2) serve a community that--
[(A) meets the poverty rate criteria set
forth in subsections (a)(4), (b), and (d) of
section 1392 of the Internal Revenue Code of
1986; and
[(B) is located on an Indian reservation or
serves Oklahoma Indians or Alaska Natives.
[(e) Application.--To be eligible to receive a grant under
this section, a local board or entity shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require,
including--
[(1) a description of the activities that the local
board or entity will provide under this section to
youth in the community described in subsection (c);
[(2) a description of the performance measures
negotiated under subsection (f ), and the manner in
which the local boards or entities will carry out the
activities to meet the performance measures;
[(3) a description of the manner in which the
activities will be linked to activities described in
section 129; and
[(4) a description of the community support,
including financial support through leveraging
additional public and private resources, for the
activities.
[(f ) Performance Measures.--
[(1) In general.--The Secretary shall negotiate and
reach agreement with the local board or entity on
performance measures for the indicators of performance
referred to in subparagraphs (A) and (B) of section
136(b)(2) that will be used to evaluate the performance
of the local board or entity in carrying out the
activities described in subsection (b). Each local
performance measure shall consist of such a indicator
of performance, and a performance level referred to in
paragraph (2).
[(2) Performance levels.--The Secretary shall
negotiate and reach agreement with the local board or
entity regarding the levels of performance expected to
be achieved by the local board or entity on the
indicators of performance.
[(g) Role Model Academy Project.--
[(1) In general.--Using the funds made available
pursuant to section 127(b)(1)(A)(iv) for fiscal year
1999, the Secretary shall provide assistance to an
entity to carry out a project establishing a role model
academy for out-of-school youth.
[(2) Residential center.--The entity shall use the
assistance to establish an academy that consists of a
residential center located on the site of a military
installation closed or realigned pursuant to a law
providing for closures and realignments of such
installations.
[(3) Services.--The academy established pursuant to
this subsection shall provide services that--
[(A) utilize a military style model that
emphasizes leadership skills and discipline, or
another model of demonstrated effectiveness;
and
[(B) include vocational training, secondary
school course work leading to a secondary
school diploma or recognized equivalent, and
the use of mentors who serve as role models and
who provide academic training and career
counseling to the youth.]
SEC. 169. YOUTH CHALLENGE GRANTS.
(a) In General.--Of the amounts reserved by the Secretary
under section 127(a)(1)(A) for a fiscal year--
(1) the Secretary shall use not less than 80 percent
to award competitive grants under subsection (b); and
(2) the Secretary may use not more than 20 percent to
award discretionary grants under subsection (c).
(b) Competitive Grants to States and Local Areas.--
(1) Establishment.--From the funds described in
subsection (a)(1), the Secretary shall award
competitive grants to eligible entities to carry out
activities authorized under this section to assist
eligible youth in acquiring the skills, credentials and
employment experience necessary to succeed in the labor
market.
(2) Eligible entities.--Grants under this subsection
may be awarded to States, local boards, recipients of
grants under section 166 (relating to Native American
programs), and public or private entities (including
consortia of such entities) applying in conjunction
with local boards.
(3) Grant period.--The Secretary may make a grant
under this section for a period of 1 year and may renew
the grants for each of the 4 succeeding years.
(4) Authority to require match.--The Secretary may
require that grantees under this subsection provide a
non-Federal share of the cost of activities carried out
under a grant awarded under this subsection.
(5) Participant eligibility.--Youth ages 14 through
19 as of the time the eligibility determination is made
may be eligible to participate in activities provided
under this subsection.
(6) Use of funds.--Funds under this subsection may be
used for activities that are designed to assist youth
in acquiring the skills, credentials and employment
experience that are necessary to succeed in the labor
market, including the activities identified in section
129. The activities may include activities such as--
(A) training and internships for out-of-
school youth in sectors of economy experiencing
or projected to experience high growth;
(B) after-school dropout prevention
activities for in-school youth;
(C) activities designed to assist special
youth populations, such as court-involved youth
and youth with disabilities; and
(D) activities combining remediation of
academic skills, work readiness training, and
work experience, and including linkages to
postsecondary education, apprenticeships, and
career-ladder employment.
(7) Applications.--To be eligible to receive a grant
under this subsection, an eligible entity shall submit
an application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require, including--
(A) a description of the activities the
eligible entity will provide to eligible youth
under this subsection;
(B) a description of the programs of
demonstrated effectiveness on which the
provision of the activities under subparagraph
(A) are based, and a description of how such
activities will expand the base of knowledge
relating to the provision of activities for
youth;
(C) a description of the private and public,
and local and State resources that will be
leveraged to provide the activities described
under subparagraph (A) in addition the funds
provided under this subsection; and
(D) the levels of performance the eligible
entity expects to achieve with respect to the
indicators of performance for youth specified
in section 136(b)(2)(A)(ii).
(8) Factors for award.--In awarding grants under this
subsection the Secretary may consider the quality of
the proposed project, the goals to be achieved, the
likelihood of successful implementation, the extent to
which the project is based on proven strategies or the
extent to which the project will expand the knowledge
base on activities for youth, and the additional State,
local or private resources that will be provided.
(9) Evaluation.--The Secretary may reserve up to 5
percent of the funds described in subsection(a)(1) to
provide technical assistance to, and conduct
evaluations of the projects funded under this
subsection (using appropriate techniques as described
in section 172(c)).
(c) Discretionary Grants for Youth Activities.--
(1) In general.--From the funds described in
subsection(a)(2), the Secretary may award grants to
eligible entities to provide activities that will
assist youth in preparing for, and entering and
retaining, employment.
(2) Eligible entities.--Grants under this subsection
may be awarded to public or private entities that the
Secretary determines would effectively carry out
activities relating to youth under this subsection.
(3) Participant eligibility.--Youth ages 14 through
19 at the time the eligibility determination is made
may be eligible to participate in activities under this
subsection.
(4) Use of funds.--Funds provided under this
subsection may be used for activities that will assist
youth in preparing for, and entering and retaining,
employment, including the activities described in
section 129 for out-of-school youth, activities
designed to assist in-school youth to stay in school
and gain work experience, and such other activities
that the Secretary determines are appropriate.
(5) Applications.--To be eligible to receive a grant
under this subsection, an eligible entity shall submit
an application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require.
(6) Additional requirements.--The Secretary may
require the provision of a non-Federal share for
projects funded under this subsection and may require
participation of grantees in evaluations of such
projects, including evaluations using the techniques as
described in section 172(c).
SEC. 170. TECHNICAL ASSISTANCE.
[(a) General Technical Assistance.--]
[(1)] (a) In general.--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, the
training of staff providing rapid response services, the
training of other staff of recipients of funds under this
title, peer review activities under this title, and, in
particular, to assist States in making transitions [from
carrying out activities under the provisions of law repealed
under section 199 to carrying out activities under this title]
to implement the amendments made by the Workforce Reinvestment
and Adult Education Act of 2003.
[(2)] (b) Form of assistance.--In carrying out paragraph (1)
on behalf of a State, or recipient of financial assistance
under any of sections 166 through 169, the Secretary, after
consultation with the State or grant recipient, may award
grants and enter into contracts and cooperative agreements.
[(3)] (c) Limitation.--Grants or contracts awarded under
paragraph (1) to entities other than States or local units of
government that are for amounts in excess of $100,000 shall
only be awarded on a competitive basis.
[(b) Dislocated Worker Technical Assistance.--
[(1) Authority.--Of the amounts available pursuant to
section 132(a)(2), the Secretary shall reserve not more
than 5 percent of such amounts to provide technical
assistance to States that do not meet the State
performance measures described in section 136 with
respect to employment and training activities for
dislocated workers. Using such reserved funds, the
Secretary may provide such assistance to other States,
local areas, and other entities involved in providing
assistance to dislocated workers, to promote the
continuous improvement of assistance provided to
dislocated workers, under this title.
[(2) Training.--Amounts reserved under this
subsection may be used to provide for the training of
staff, including specialists, who provide rapid
response services. Such training shall include
instruction in proven methods of promoting,
establishing, and assisting labor-management
committees. Such projects shall be administered through
the dislocated worker office described in section
173(b).]
SEC. 171. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND MULTISTATE
PROJECTS.
(a) * * *
(b) Demonstration and Pilot Projects.--
(1) In general.--[Under a] Consistent with the
priorities specified in the plan published under
subsection (a), the Secretary shall, through grants or
contracts, carry out demonstration and pilot projects
for the purpose of developing and implementing
techniques and approaches, and demonstrating the
effectiveness of specialized methods, in addressing
employment and training needs. Such projects shall
include the provision of direct services to individuals
to enhance employment opportunities and an evaluation
component and 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 skill
needs of local communities;
[(B) projects that provide training to
upgrade the skills of employed workers who
reside and are employed in enterprise
communities or empowerment zones;
[(C) programs conducted jointly with the
Department of Defense to develop training
programs utilizing computer-based and other
innovative learning technologies;
[(D) 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;
[(E) 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;]
(A) projects that assist national employers
in connecting with the workforce investment
system established under this title in order to
facilitate the recruitment and employment of
needed workers and to provide information to
such system on skills and occupations in
demand;
(B) projects that promote the development of
systems that will improve the effectiveness and
efficiency of programs carried out under this
title;
(C) projects that focus on opportunities for
employment in industries and sectors of
industries that are experiencing or are likely
to experience high rates of growth;
(D) projects carried out by States and local
areas to test innovative approaches to
delivering employment-related services;
[(F)] (E) the establishment of partnerships
with national organizations with special
expertise in developing, organizing, and
administering employment and training services,
for individuals with disabilities, at the
national, State, and local levels;
[(G)] (F) projects to assist public housing
authorities that provide, to public housing
residents, job training programs that
demonstrate success in upgrading the job skills
and promoting employment of the residents; and
[(H) projects that assist local areas to
develop and implement local self-sufficiency
standards to evaluate the degree to which
participants in programs under this title are
achieving self-sufficiency.]
(G) projects that provide retention grants to
qualified job training programs upon placement
or retention of a low-income individual trained
by that program in employment with a single
employer for a period of 1 year, provided that
such employment is providing to the low-income
individual an income not less than twice the
poverty line for that individual.
(2) Limitations.--
(A) * * *
[(B) Eligible entities.--Grants or contracts
may be awarded under this subsection only to--
[(i) entities with recognized
expertise in--
[(I) conducting national
demonstration projects;
[(II) utilizing state-of-the-
art demonstration methods; or
[(III) conducting evaluations
of workforce investment
projects; or
[(ii) State and local entities with
expertise in operating or overseeing
workforce investment programs.]
[(C)] (B) Time limits.--The Secretary shall
establish appropriate time limits for carrying
out demonstration and pilot projects under this
subsection.
(c) Multiservice Projects, Research Projects, and Multistate
Projects.--
(1) * * *
(2) Research projects.--
(A) * * *
[(B) Formula improvement study and report.--
[(i) Study.--The Secretary shall
conduct a 2-year study concerning
improvements in the formulas described
in section 132(b)(1)(B) and paragraphs
(2)(A) and (3) of section 133(b)
(regarding distributing funds under
subtitle B to States and local areas
for adult employment and training
activities). In conducting the study,
the Secretary shall examine means of
improving the formulas by--
[(I) developing formulas
based on statistically reliable
data;
[(II) developing formulas
that are consistent with the
goals and objectives of this
title; and
[(III) developing formulas
based on organizational and
financial stability of State
boards and local boards.
[(ii) Report.--The Secretary shall
prepare and submit to Congress a report
containing the results of the study,
including recommendations for improved
formulas.]
(B) Net impact studies and reports.--The
Secretary shall conduct studies to determine
the net impacts of programs, services, and
activities carried out under this title. The
Secretary shall prepare and disseminate to the
public reports containing the results of such
studies.
* * * * * * *
[(d) Dislocated Worker Projects.--Of the amount made
available pursuant to section 132(a)(2)(A) for any program
year, the Secretary shall use not more than 10 percent of such
amount to carry out demonstration and pilot projects,
multiservice projects, and multistate projects, relating to the
employment and training needs of dislocated workers. Of the
requirements of this section, such projects shall be subject
only to the provisions relating to review and evaluation of
applications under subsection (c)(4)(C). Such projects may
include demonstration and pilot projects relating to promoting
self-employment, promoting job creation, averting dislocations,
assisting dislocated farmers, assisting dislocated fishermen,
and promoting public works. Such projects shall be administered
through the dislocated worker office described in section
173(b).]
* * * * * * *
[SEC. 173. NATIONAL EMERGENCY GRANTS.]
SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.
(a) In General.--The Secretary is authorized to award
[national emergency grants] national dislocated worker grants
in a timely manner--
(1) to an entity described in subsection [(c)] (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;
* * * * * * *
[(b) Administration.--The Secretary shall designate a
dislocated worker office to coordinate the functions of the
Secretary under this title relating to employment and training
activities for dislocated workers, including activities carried
out under the national emergency grants.]
[(c)] (b) Employment and Training Assistance Requirements.--
(1) Grant recipient eligibility.--
(A) * * *
(B) Eligible entity.--In this paragraph, the
term ``entity'' means a State, a local board,
an entity described in section 166(c), entities
determined to be eligible by the Governor of
the State involved[, and other entities that
demonstrate to the Secretary the capability to
effectively respond to the circumstances
relating to particular dislocations.].
* * * * * * *
[(d)] (c) Disaster Relief Employment Assistance
Requirements.--
(1) * * *
* * * * * * *
[(e) Additional Assistance.--
[(1) In general.--From the amount appropriated and
made available to carry out this section for any
program year, the Secretary shall use not more than
$15,000,000 to make grants to not more than 8 States to
provide employment and training activities under
section 134, in accordance with subtitle B.
[(2) Eligible states.--The Secretary shall make a
grant under paragraph (1) to a State for a program year
if--
[(A)(i) the amount of the allotment that
would be made to the State for the program year
under the formula specified in section 202(a)
of the Job Training Partnership Act, as in
effect on July 1, 1998; is greater than
[(ii) the amount of the allotment that would
be made to the State for the program year under
the formula specified in section 132(b)(1)(B);
and
[(B) the State is 1 of the 8 States with the
greatest quotient obtained by dividing--
[(i) the amount described in
subparagraph (A)(i); by
[(ii) the amount described in
subparagraph (A)(ii).
[(3) Amount of grants.--Subject to paragraph (1), the
amount of the grant made under paragraph (1) to a State
for a program year shall be based on the difference
between--
[(A) the amount of the allotment that would
be made to the State for the program year under
the formula specified in section 202(a) of the
Job Training Partnership Act, as in effect on
July 1, 1998; and
[(B) the amount of the allotment that would
be made to the State for the program year under
the formula specified in section 132(b)(1)(B).
[(4) Allocation of funds.--A State that receives a
grant under paragraph (1) for a program year--
[(A) shall allocate funds made available
through the grant on the basis of the formula
used by the State to allocate funds within the
State for that program year under--
[(i) paragraph (2)(A) or (3) of
section 133(b); or
[(ii) paragraph (2)(B) of section
133(b); and
[(B) shall use the funds in the same manner
as the State uses other funds allocated under
the appropriate paragraph of section 133(b).]
[(f)] (d) Health Insurance Coverage Assistance for Eligible
Individuals.--
(1) * * *
* * * * * * *
[(g)] (e) Interim Health Insurance Coverage and Other
Assistance.--
(1) * * *
* * * * * * *
SEC. 174. AUTHORIZATION OF APPROPRIATIONS.
(a) Native American Programs; Migrant and Seasonal Farmworker
Programs; Veterans' Workforce Investment Programs.--
(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated to carry out sections 166
through 168 such sums as may be necessary for each of
the fiscal years [1999 through 2003] 2004 through 2009.
* * * * * * *
[(b) Technical Assistance; Demonstration and Pilot Projects;
Evaluations; Incentive Grants.--
[(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated to carry out sections 170
through 172 and section 503 such sums as may be
necessary for each of the fiscal years 1999 through
2003.
[(2) Reservations.--Of the amount appropriated
pursuant to the authorization of appropriations under
paragraph (1) for a fiscal year, the Secretary shall--
[(A)(i) for fiscal year 1999, reserve up to
40 percent for carrying out section 170 (other
than subsection (b) of such section);
[(ii) for fiscal year 2000, reserve up to 25
percent for carrying out section 170 (other
than subsection (b) of such section); and
[(iii) for each of the fiscal years 2001
through 2003, reserve up to 20 percent for
carrying out section 170 (other than subsection
(b) of such section);
[(B)(i) for fiscal year 1999, reserve not
less than 50 percent for carrying out section
171; and
[(ii) for each of the fiscal years 2000
through 2003, reserve not less than 45 percent
for carrying out section 171;
[(C)(i) for fiscal year 1999, reserve not
less than 10 percent for carrying out section
172; and
[(ii) for each of the fiscal years 2000
through 2003, reserve not less than 10 percent
for carrying out section 172; and
[(D)(i) for fiscal year 1999, reserve no
funds for carrying out section 503;
[(ii) for fiscal year 2000, reserve up to 20
percent for carrying out section 503; and
[(iii) for each of the fiscal years 2001
through 2003, reserve up to 25 percent for
carrying out section 503.]
(b) Technical Assistance; Demonstration and Pilot Projects;
Evaluations; Incentive Grants.--There are authorized to be
appropriated to carry out sections 170 through 172 and section
136 such sums as may be necessary for each of fiscal years 2004
through 2009.
* * * * * * *
Subtitle E--Administration
SEC. 181. REQUIREMENTS AND RESTRICTIONS.
(a) * * *
* * * * * * *
(c) Grievance Procedure.--
(1) * * *
(2) Investigation.--
(A) In general.--The Secretary [shall] may
investigate an allegation of a violation
described in paragraph (1) if--
(i) * * *
* * * * * * *
(e) Limitation on Use of Funds.--[No funds available under
this title 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 that are not
directly related to training for eligible individuals under
this title.] No funds available under subtitle B shall be used
for foreign travel.
* * * * * * *
SEC. 188. NONDISCRIMINATION.
(a) In General.--
(1) * * *
(2) Prohibition of discrimination regarding
participation, benefits, and [employment.--No]
employment.--
(A) In general.--Except as provided in
subparagraph (B), 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
(except as otherwise permitted under title IX
of the Education Amendments of 1972), national
origin, age, disability, or political
affiliation or belief.
(B) Exemption for religious organizations.--
Subparagraph (A) shall not apply to recipients
of financial assistance under this title that
is a religious corporation, association,
educational institution, or society, with
respect to the employment of individuals of a
particular religion to perform work connected
with the carrying on by such corporation,
association, educational institution, or
society of its activities Such recipients shall
comply with the other requirements contained in
subparagraph (A).
* * * * * * *
SEC. 189. ADMINISTRATIVE PROVISIONS.
(a) * * *
* * * * * * *
(g) Program Year.--
[(1) In general.--
[(A) Program year.--Except as provided in
subparagraph (B), appropriations for any fiscal
year for programs and activities carried out
under this title shall be available for
obligation only on the basis of a program year.
The program year shall begin on July 1 in the
fiscal year for which the appropriation is
made.
[(B) Youth activities.--The Secretary may
make available for obligation, beginning April
1 of any fiscal year, funds appropriated for
such fiscal year to carry out youth activities
under subtitle B.]
(1) In general.--Appropriations for any fiscal year
for programs and activities carried out under this
title shall be available for obligation only on the
basis of a program year. The program year shall begin
on July 1 in the fiscal year for which the
appropriation is made.
(2) Availability.--Funds obligated for any program
year for a program or activity carried out under this
title may be expended by [each State] each recipient
receiving such funds during that program year and the 2
succeeding program years. Funds obligated for any
program year for a program or activity carried out
under section 171 or 172 shall remain available until
expended. Funds received by local areas from States
under this title during a program year may be expended
during that program year and the succeeding program
year. No amount of the funds described in this
paragraph shall be deobligated on account of a rate of
expenditure that is consistent with a State plan, an
operating plan described in section 151, or a plan,
grant agreement, contract, application, or other
agreement described in subtitle D, as appropriate.
* * * * * * *
(i) Waivers and Special Rules.--
(1) * * *
* * * * * * *
(4) General waivers of statutory or regulatory
requirements.--
(A) General authority.--Notwithstanding any
other provision of law, the Secretary may waive
for a State, or a local area in a State,
pursuant to a request submitted by the Governor
of the State (in consultation with appropriate
local elected officials) that meets the
requirements of subparagraph (B), or in
accordance with subparagraph (D),--
(i) * * *
* * * * * * *
(D) Expedited process for extending approved
waivers to additional states.--In lieu of the
requirements of subparagraphs (B) and (C), the
Secretary may establish an expedited procedure
for the purpose of extending to additional
States the waiver of statutory or regulatory
requirements that have been approved for a
State pursuant to a request under subparagraph
(B). Such procedure shall ensure that the
extension of such waivers to additional States
are accompanied by appropriate conditions
relating the implementation of such waivers.
* * * * * * *
SEC. 195. GENERAL PROGRAM REQUIREMENTS.
Except as otherwise provided in this title, the following
conditions are applicable to all programs under this title:
(1) * * *
* * * * * * *
(14) Funds provided under this title shall not be
used to establish or operate stand-alone fee-for-
service enterprises that compete with private sector
employment agencies within the meaning of section
701(c) of the Civil Rights Act of 1964 (42 U.S.C.
2000e(c)). For purposes of this paragraph, such an
enterprise does not include one-stop centers.
[TITLE II--ADULT EDUCATION AND LITERACY
[SEC. 201. SHORT TITLE.
[This title may be cited as the ``Adult Education and Family
Literacy Act''.
[SEC. 202. PURPOSE.
[It is the purpose of this title to create a partnership
among the Federal Government, States, and localities to
provide, on a voluntary basis, adult education and literacy
services, in order to--
[(1) assist adults to become literate and obtain the
knowledge and skills necessary for employment and self-
sufficiency;
[(2) assist adults who are parents to obtain the
educational skills necessary to become full partners in
the educational development of their children; and
[(3) assist adults in the completion of a secondary
school education.
[SEC. 203. DEFINITIONS.
[In 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 secondary school
diploma or its recognized equivalent,
and 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'' means
activities described in section 231(b).
[(3) Educational service agency.--The term
``educational service agency'' means a regional public
multiservice agency authorized by State statute to
develop and manage a service or program, and to provide
the service or program to a local educational agency.
[(4) Eligible agency.--The term ``eligible agency''
means the sole entity or agency in a State or an
outlying area responsible for administering or
supervising policy for adult education and literacy in
the State or outlying area, respectively, consistent
with the law of the State or outlying area,
respectively.
[(5) Eligible provider.--The term ``eligible
provider'' means--
[(A) a local educational agency;
[(B) a community-based organization of
demonstrated effectiveness;
[(C) a volunteer literacy organization of
demonstrated effectiveness;
[(D) an institution of higher education;
[(E) a public or private nonprofit agency;
[(F) a library;
[(G) a public housing authority;
[(H) a nonprofit institution that is not
described in any of subparagraphs (A) through
(G) and has the ability to provide literacy
services to adults and families; and
[(I) a consortium of the agencies,
organizations, institutions, libraries, or
authorities described in any of subparagraphs
(A) through (H).
[(6) English literacy program.--The term ``English
literacy program'' means a program of instruction
designed to help individuals of limited English
proficiency achieve competence in the English language.
[(7) 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 regarding 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.
[(8) Governor.--The term ``Governor'' means the chief
executive officer of a State or outlying area.
[(9) Individual with a disability.--
[(A) In general.--The term ``individual with
a disability'' means an individual with any
disability (as defined in section 3 of the
Americans with Disabilities Act of 1990 (42
U.S.C. 12102)).
[(B) Individuals with disabilities.--The term
``individuals with disabilities'' means more
than one individual with a disability.
[(10) Individual of limited english proficiency.--The
term ``individual of limited English proficiency''
means an adult or out-of-school youth who has limited
ability in speaking, reading, writing, or understanding
the English language, and--
[(A) whose native language is a language
other than English; or
[(B) who lives in a family or community
environment where a language other than English
is the dominant language.
[(11) Institution of higher education.--The term
``institution of higher education'' has the meaning
given the term in section 101 of the Higher Education
Act of 1965.
[(12) Literacy.--The term ``literacy'' means an
individual's ability to read, write, and speak in
English, compute, and solve problems, at levels of
proficiency necessary to function on the job, in the
family of the individual, and in society.
[(13) Local educational agency.--The term ``local
educational agency'' has the meaning given the term in
section 9101 of the Elementary and Secondary Education
Act of 1965.
[(14) Outlying area.--The term ``outlying area'' has
the meaning given the term in section 101.
[(15) Postsecondary educational institution.--The
term ``postsecondary educational institution'' means--
[(A) an institution of higher education that
provides not less than a 2-year program of
instruction that is acceptable for credit
toward a bachelor's degree;
[(B) a tribally controlled community college;
or
[(C) a nonprofit educational institution
offering certificate or apprenticeship programs
at the postsecondary level.
[(16) Secretary.--The term ``Secretary'' means the
Secretary of Education.
[(17) State.--The term ``State'' means each of the
several States of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico.
[(18) Workplace literacy services.--The term
``workplace literacy services'' means literacy services
that are offered for the purpose of improving the
productivity of the workforce through the improvement
of literacy skills.
[SEC. 204. HOME SCHOOLS.
[Nothing in this title shall be construed to affect home
schools, or to compel a parent engaged in home schooling to
participate in an English literacy program, family literacy
services, or adult education.
[SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
[There is authorized to be appropriated to carry out this
title such sums as may be necessary for each of the fiscal
years 1999 through 2003.
[Subtitle A--Adult Education and Literacy Programs
[CHAPTER 1--FEDERAL PROVISIONS
[SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES;
ALLOTMENTS.
[(a) Reservation of Funds.--From the sum appropriated under
section 205 for a fiscal year, the Secretary--
[(1) shall reserve 1.5 percent to carry out section
242, except that the amount so reserved shall not
exceed $8,000,000;
[(2) shall reserve 1.5 percent to carry out section
243, except that the amount so reserved shall not
exceed $8,000,000; and
[(3) shall make available, to the Secretary of Labor,
1.72 percent for incentive grants under section 503.
[(b) Grants to Eligible Agencies.--
[(1) In general.--From the sum appropriated under
section 205 and not reserved under subsection (a) for a
fiscal year, the Secretary shall award a grant to each
eligible agency having a State plan approved under
section 224 in an amount equal to the sum of the
initial allotment under subsection (c)(1) and the
additional allotment under subsection (c)(2) for the
eligible agency for the fiscal year, subject to
subsections (f ) and (g), to enable the eligible agency
to carry out the activities assisted under this
subtitle.
[(2) Purpose of grants.--The Secretary may award a
grant under paragraph (1) only if the eligible entity
involved agrees to expend the grant for adult education
and literacy activities in accordance with the
provisions of this subtitle.
[(c) Allotments.--
[(1) Initial allotments.--From the sum appropriated
under section 205 and not reserved under subsection (a)
for a fiscal year, the Secretary shall allot to each
eligible agency having a State plan approved under
section 224(f )--
[(A) $100,000, in the case of an eligible
agency serving an outlying area; and
[(B) $250,000, in the case of any other
eligible agency.
[(2) Additional allotments.--From the sum
appropriated under section 205, not reserved under
subsection (a), and not allotted under paragraph (1),
for a fiscal year, the Secretary shall allot to each
eligible agency that receives an initial allotment
under paragraph (1) an additional amount that bears the
same relationship to such sum as the number of
qualifying adults in the State or outlying area served
by the eligible agency bears to the number of such
adults in all States and outlying areas.
[(d) Qualifying Adult.--For the purpose of subsection (c)(2),
the term ``qualifying adult'' means an adult who--
[(1) is at least 16 years of age;
[(2) is beyond the age of compulsory school
attendance under the law of the State or outlying area;
[(3) does not have a secondary school diploma or its
recognized equivalent; and
[(4) is not enrolled in secondary school.
[(e) Special Rule.--
[(1) In general.--From amounts made available under
subsection (c) for the Republic of the Marshall
Islands, the Federated States of Micronesia, and the
Republic of Palau, the Secretary shall award grants to
Guam, American Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall Islands,
the Federated States of Micronesia, or the Republic of
Palau to carry out activities described in this
subtitle in accordance with the provisions of this
subtitle that the Secretary determines are not
inconsistent with this subsection.
[(2) Award basis.--The Secretary shall award grants
pursuant to paragraph (1) on a competitive basis and
pursuant to recommendations from the Pacific Region
Educational Laboratory in Honolulu, Hawaii.
[(3) Termination of eligibility.--Notwithstanding any
other provision of law, the Republic of the Marshall
Islands, the Federated States of Micronesia, and the
Republic of Palau shall not receive any funds under
this subtitle 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.
[(f ) Hold-Harmless.--
[(1) In general.--Notwithstanding subsection (c)--
[(A) for fiscal year 1999, no eligible agency
shall receive an allotment under this subtitle
that is less than 90 percent of the payments
made to the State or outlying area of the
eligible agency for fiscal year 1998 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
Workforce Investment Act of 1998); and
[(B) for fiscal year 2000 and each succeeding
fiscal year, no eligible agency shall receive
an allotment under this subtitle that is less
than 90 percent of the allotment the eligible
agency received for the preceding fiscal year
under this subtitle.
[(2) Ratable reduction.--If for any fiscal year the
amount available for allotment under this subtitle is
insufficient to satisfy the provisions of paragraph
(1), the Secretary shall ratably reduce the payments to
all eligible agencies, as necessary.
[(g) Reallotment.--The portion of any eligible agency's
allotment under this subtitle 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
subtitle, shall be available for reallotment from time to time,
on such dates during such period as the Secretary shall fix, to
other eligible agencies in proportion to the original
allotments to such agencies under this subtitle for such year.
[SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
[(a) Purpose.--The purpose of this section is to establish a
comprehensive performance accountability system, comprised of
the activities described in this section, to assess the
effectiveness of eligible agencies in achieving continuous
improvement of adult education and literacy activities funded
under this subtitle, in order to optimize the return on
investment of Federal funds in adult education and literacy
activities.
[(b) Eligible Agency Performance Measures.--
[(1) In general.--For each eligible agency, the
eligible agency performance measures shall consist of--
[(A)(i) the core indicators of performance
described in paragraph (2)(A); and
[(ii) additional indicators of performance
(if any) identified by the eligible agency
under paragraph (2)(B); and
[(B) an eligible agency adjusted level of
performance for each indicator described in
subparagraph (A).
[(2) Indicators of performance.--
[(A) Core indicators of performance.--The
core indicators of performance shall include
the following:
[(i) Demonstrated improvements in
literacy skill levels in reading,
writing, and speaking the English
language, numeracy, problem solving,
English language acquisition, and other
literacy skills.
[(ii) Placement in, retention in, or
completion of, postsecondary education,
training, unsubsidized employment or
career advancement.
[(iii) Receipt of a secondary school
diploma or its recognized equivalent.
[(B) Additional indicators.--An eligible
agency may identify in the State plan
additional indicators for adult education and
literacy activities authorized under this
subtitle.
[(3) Levels of performance.--
[(A) Eligible agency adjusted levels of
performance for core indicators.--
[(i) In general.--For each eligible
agency submitting a State plan, there
shall be established, in accordance
with this subparagraph, levels of
performance for each of the core
indicators of performance described in
paragraph (2)(A) for adult education
and literacy activities authorized
under this subtitle. The levels of
performance established under this
subparagraph shall, at a minimum--
[(I) be expressed in an
objective, quantifiable, and
measurable form; and
[(II) show the progress of
the eligible agency toward
continuously improving in
performance.
[(ii) Identification in state plan.--
Each eligible agency shall identify, in
the State plan submitted under section
224, expected levels of performance for
each of the core indicators of
performance for the first 3 program
years covered by the State plan.
[(iii) Agreement on eligible agency
adjusted levels of performance for
first 3 years.--In order to ensure an
optimal return on the investment of
Federal funds in adult education and
literacy activities authorized under
this subtitle, the Secretary and each
eligible agency shall reach agreement
on levels of performance for each of
the core indicators of performance, for
the first 3 program years covered by
the State plan, taking into account the
levels identified in the State plan
under clause (ii) and the factors
described in clause (iv). The levels
agreed to under this clause shall be
considered to be the eligible agency
adjusted levels of performance for the
eligible agency for such years and
shall be incorporated into the State
plan prior to the approval of such
plan.
[(iv) Factors.--The agreement
described in clause (iii) or (v) shall
take into account--
[(I) how the levels involved
compare with the eligible
agency adjusted levels of
performance established for
other eligible agencies, taking
into account factors including
the characteristics of
participants when the
participants entered the
program, and the services or
instruction to be provided; and
[(II) the extent to which
such levels involved promote
continuous improvement in
performance on the performance
measures by such eligible
agency and ensure optimal
return on the investment of
Federal funds.
[(v) Agreement on eligible agency
adjusted levels of performance for 4th
and 5th years.--Prior to the fourth
program year covered by the State plan,
the Secretary and each eligible agency
shall reach agreement on levels of
performance for each of the core
indicators of performance for the
fourth and fifth program years covered
by the State plan, taking into account
the factors described in clause (iv).
The levels agreed to under this clause
shall be considered to be the eligible
agency adjusted levels of performance
for the eligible agency for such years
and shall be incorporated into the
State plan.
[(vi) Revisions.--If unanticipated
circumstances arise in a State
resulting in a significant change in
the factors described in clause
(iv)(II), the eligible agency may
request that the eligible agency
adjusted levels of performance agreed
to under clause (iii) or (v) be
revised. The Secretary, after
collaboration with the representatives
described in section 136(i)(1), shall
issue objective criteria and methods
for making such revisions.
[(B) Levels of performance for additional
indicators.--The eligible agency may identify,
in the State plan, eligible agency levels of
performance for each of the additional
indicators described in paragraph (2)(B). Such
levels shall be considered to be eligible
agency adjusted levels of performance for
purposes of this subtitle.
[(c) Report.--
[(1) In general.--Each eligible agency that receives
a grant under section 211(b) shall annually prepare and
submit to the Secretary a report on the progress of the
eligible agency in achieving eligible agency
performance measures, including information on the
levels of performance achieved by the eligible agency
with respect to the core indicators of performance.
[(2) Information dissemination.--The Secretary--
[(A) shall make the information contained in
such reports available to the general public
through publication and other appropriate
methods;
[(B) shall disseminate State-by-State
comparisons of the information; and
[(C) shall provide the appropriate committees
of
Congress with copies of such reports.
[CHAPTER 2--STATE PROVISIONS
[SEC. 221. STATE ADMINISTRATION.
[Each eligible agency shall be responsible for the State or
outlying area administration of activities under this subtitle,
including--
[(1) the development, submission, and implementation
of the State plan;
[(2) consultation with other appropriate agencies,
groups, and individuals that are involved in, or
interested in, the development and implementation of
activities assisted under this subtitle; and
[(3) coordination and nonduplication with other
Federal and State education, training, corrections,
public housing, and social service programs.
[SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.
[(a) State Distribution of Funds.--Each eligible agency
receiving a grant under this subtitle for a fiscal year--
[(1) shall use not less than 82.5 percent of the
grant funds to award grants and contracts under section
231 and to carry out section 225, of which not more
than 10 percent of the 82.5 percent shall be available
to carry out section 225;
[(2) shall use not more than 12.5 percent of the
grant funds to carry out State leadership activities
under section 223; and
[(3) shall use not more than 5 percent of the grant
funds, or $65,000, whichever is greater, for the
administrative expenses of the eligible agency.
[(b) Matching Requirement.--
[(1) In general.--In order to receive a grant from
the Secretary under section 211(b) each eligible agency
shall provide, for the costs to be incurred by the
eligible agency in carrying out the adult education and
literacy activities for which the grant is awarded, a
non-Federal contribution in an amount equal to--
[(A) in the case of an eligible agency
serving an outlying area, 12 percent of the
total amount of funds expended for adult
education and literacy activities in the
outlying area, except that the Secretary may
decrease the amount of funds required under
this subparagraph for an eligible agency; and
[(B) in the case of an eligible agency
serving a State, 25 percent of the total amount
of funds expended for adult education and
literacy activities in the State.
[(2) Non-Federal contribution.--An eligible agency's
non-Federal contribution required under paragraph (1)
may be provided in cash or in kind, fairly evaluated,
and shall include only non-Federal funds that are used
for adult education and literacy activities in a manner
that is consistent with the purpose of this subtitle.
[SEC. 223. STATE LEADERSHIP ACTIVITIES.
[(a) In General.--Each eligible agency shall use funds made
available under section 222(a)(2) for one or more of the
following adult education and literacy activities:
[(1) The establishment or operation of professional
development programs to improve the quality of
instruction provided pursuant to local activities
required under section 231(b), including instruction
incorporating phonemic awareness, systematic phonics,
fluency, and reading comprehension, and instruction
provided by volunteers or by personnel of a State or
outlying area.
[(2) The provision of technical assistance to
eligible providers of adult education and literacy
activities.
[(3) The provision of technology assistance,
including staff training, to eligible providers of
adult education and literacy activities to enable the
eligible 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, adult education and literacy
activities.
[(6) Incentives for--
[(A) program coordination and integration;
and
[(B) performance awards.
[(7) Developing and disseminating curricula,
including curricula incorporating phonemic awareness,
systematic phonics, fluency, and reading comprehension.
[(8) Other activities of statewide significance that
promote the purpose of this title.
[(9) Coordination with existing 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.
[(10) Integration of literacy instruction and
occupational skill training, and promoting linkages
with employers.
[(11) Linkages with postsecondary educational
institutions.
[(b) Collaboration.--In carrying out this section, eligible
agencies shall collaborate where possible, and avoid
duplicating efforts, in order to maximize the impact of the
activities described in subsection (a).
[(c) State-Imposed Requirements.--Whenever a State or
outlying area implements any rule or policy relating to the
administration or operation of a program authorized under this
subtitle that has the effect of imposing a requirement that is
not imposed under Federal law (including any rule or policy
based on a State or outlying area interpretation of a Federal
statute, regulation, or guideline), the State or outlying area
shall identify, to eligible providers, the rule or policy as
being State- or outlying area-imposed.
[SEC. 224. STATE PLAN.
[(a) 5-Year Plans.--
[(1) In general.--Each eligible agency desiring a
grant under this subtitle for any fiscal year shall
submit to, or have on file with, the Secretary a 5-year
State plan.
[(2) Comprehensive plan or application.--The eligible
agency may submit the State plan as part of a
comprehensive plan or application for Federal education
assistance.
[(b) Plan Contents.--In developing the State plan, and any
revisions to the State plan, the eligible agency shall include
in the State plan or revisions--
[(1) an objective assessment of the needs of
individuals in the State or outlying area for adult
education and literacy activities, including
individuals most in need or hardest to serve;
[(2) a description of the adult education and
literacy activities that will be carried out with any
funds received under this subtitle;
[(3) a description of how the eligible agency will
evaluate annually the effectiveness of the adult
education and literacy activities based on the
performance measures described in section 212;
[(4) a description of the performance measures
described in section 212 and how such performance
measures will ensure the improvement of adult education
and literacy activities in the State or outlying area;
[(5) an assurance that the eligible agency will award
not less than one grant under this subtitle to an
eligible provider who offers flexible schedules and
necessary support services (such as child care and
transportation) to enable individuals, including
individuals with disabilities, or individuals with
other special needs, to participate in adult education
and literacy activities, which eligible provider shall
attempt to coordinate with support services that are
not provided under this subtitle prior to using funds
for adult education and literacy activities provided
under this subtitle for support services;
[(6) an assurance that the funds received under this
subtitle will not be expended for any purpose other
than for activities under this subtitle;
[(7) a description of how the eligible agency will
fund local activities in accordance with the
considerations described in section 231(e);
[(8) an assurance that the eligible agency will
expend the funds under this subtitle only in a manner
consistent with fiscal requirements in section 241;
[(9) a description of the process that will be used
for public participation and comment with respect to
the State plan;
[(10) a description of how the eligible agency will
develop program strategies for populations that
include, at a minimum--
[(A) low-income students;
[(B) individuals with disabilities;
[(C) single parents and displaced homemakers;
and
[(D) individuals with multiple barriers to
educational enhancement, including individuals
with limited English proficiency;
[(11) a description of how the adult education and
literacy activities that will be carried out with any
funds received under this subtitle will be integrated
with other adult education, career development, and
employment and training activities in the State or
outlying area served by the eligible agency; and
[(12) a description of the steps the eligible agency
will take to ensure direct and equitable access, as
required in section 231(c)(1).
[(c) Plan Revisions.--When changes in conditions or other
factors require substantial revisions to an approved State
plan, the eligible agency shall submit the revisions to the
State plan to the Secretary.
[(d) Consultation.--The eligible agency shall--
[(1) submit the State plan, and any revisions to the
State plan, to the Governor of the State or outlying
area for review and comment; and
[(2) ensure that any comments by the Governor
regarding the State plan, and any revision to the State
plan, are submitted to the Secretary.
[(e) Peer Review.--The Secretary shall establish a peer
review process to make recommendations regarding the approval
of State plans.
[(f ) Plan Approval.--A State plan submitted to the Secretary
shall be approved by the Secretary unless the Secretary makes a
written determination, within 90 days after receiving the plan,
that the plan is inconsistent with the specific provisions of
this subtitle.
[(g) Transition.--The provisions of this section shall be
subject to section 506(b).
[SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
[(a) Program Authorized.--From funds made available under
section 222(a)(1) for a fiscal year, each eligible agency shall
carry out corrections education and education for other
institutionalized individuals.
[(b) Uses of Funds.--The funds described in subsection (a)
shall be used for the cost of educational programs for criminal
offenders in correctional institutions and for other
institutionalized individuals, including academic programs
for--
[(1) basic education;
[(2) special education programs as determined by the
eligible agency;
[(3) English literacy programs; and
[(4) secondary school credit programs.
[(c) Priority.--Each eligible agency that is using assistance
provided under this section to carry out a program for criminal
offenders within a correctional institution shall give priority
to serving individuals who are likely to leave the correctional
institution within 5 years of participation in the program.
[(d) Definition of Criminal Offender.--
[(1) Criminal offender.--The term ``criminal
offender'' means any individual who is charged with or
convicted of any criminal offense.
[(2) Correctional institution.--The term
``correctional institution'' means any--
[(A) prison;
[(B) jail;
[(C) reformatory;
[(D) work farm;
[(E) detention center; or
[(F) halfway house, community-based
rehabilitation
center, or any other similar institution
designed for the confinement or rehabilitation
of criminal offenders.
[CHAPTER 3--LOCAL PROVISIONS
[SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
[(a) Grants and Contracts.--From grant funds made available
under section 211(b), each eligible agency shall award
multiyear grants or contracts, on a competitive basis, to
eligible providers within the State or outlying area to enable
the eligible providers to develop, implement, and improve adult
education and literacy activities within the State.
[(b) Required Local Activities.--The eligible agency shall
require that each eligible provider receiving a grant or
contract under subsection (a) use the grant or contract to
establish or operate one or more programs that provide services
or instruction in one or more of the following categories:
[(1) Adult education and literacy services, including
workplace literacy services.
[(2) Family literacy services.
[(3) English literacy programs.
[(c) Direct and Equitable Access; Same Process.--Each
eligible agency receiving funds under this subtitle shall
ensure that--
[(1) all eligible providers have direct and equitable
access to apply for grants or contracts under this
section; and
[(2) the same grant or contract announcement process
and application process is used for all eligible
providers in the State or outlying area.
[(d) Special Rule.--Each eligible agency awarding a grant or
contract under this section shall not use any funds made
available under this subtitle 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 203(1),
except that such agency may use such funds for such purpose if
such programs, services, or activities are related to family
literacy services. In providing family literacy services under
this subtitle, an eligible provider shall attempt to coordinate
with programs and services that are not assisted under this
subtitle prior to using funds for adult education and literacy
activities under this subtitle for activities other than adult
education activities.
[(e) Considerations.--In awarding grants or contracts under
this section, the eligible agency shall consider--
[(1) the degree to which the eligible provider will
establish measurable goals for participant outcomes;
[(2) the past effectiveness of an eligible provider
in improving the literacy skills of adults and
families, and, after the 1-year period beginning with
the adoption of an eligible agency's performance
measures under section 212, the success of an eligible
provider receiving funding under this subtitle in
meeting or exceeding such performance measures,
especially with respect to those adults with the lowest
levels of literacy;
[(3) the commitment of the eligible provider to serve
individuals in the community who are most in need of
literacy services, including individuals who are low-
income or have minimal literacy skills;
[(4) whether or not the program--
[(A) is of sufficient intensity and duration
for participants to achieve substantial
learning gains; and
[(B) uses instructional practices, such as
phonemic awareness, systematic phonics,
fluency, and reading comprehension that
research has proven to be effective in teaching
individuals to read;
[(5) whether the activities are built on a strong
foundation of research and effective educational
practice;
[(6) whether the activities effectively employ
advances in technology, as appropriate, including the
use of computers;
[(7) whether the activities provide learning in real
life contexts to ensure that an individual has the
skills needed to compete in the workplace and exercise
the rights and responsibilities of citizenship;
[(8) whether the activities are staffed by well-
trained instructors, counselors, and administrators;
[(9) whether the activities coordinate with other
available resources in the community, such as by
establishing strong links with elementary schools and
secondary schools, postsecondary educational
institutions, one-stop centers, job training programs,
and social service agencies;
[(10) whether the activities offer flexible schedules
and support services (such as child care and
transportation) that are necessary to enable
individuals, including individuals with disabilities or
other special needs, to attend and complete programs;
[(11) whether the activities maintain a high-quality
information management system that has the capacity to
report participant outcomes and to monitor program
performance against the eligible agency performance
measures; and
[(12) whether the local communities have a
demonstrated need for additional English literacy
programs.
[SEC. 232. LOCAL APPLICATION.
[Each eligible provider desiring a grant or contract under
this subtitle shall submit an application to the eligible
agency containing such information and assurances as the
eligible agency may require, including--
[(1) a description of how funds awarded under this
subtitle will be spent; and
[(2) a description of any cooperative arrangements
the eligible provider has with other agencies,
institutions, or organizations for the delivery of
adult education and literacy activities.
[SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
[(a) In General.--Subject to subsection (b), of the amount
that is made available under this subtitle to an eligible
provider--
[(1) not less than 95 percent shall be expended for
carrying out adult education and literacy activities;
and
[(2) the remaining amount, not to exceed 5 percent,
shall be used for planning, administration, personnel
development, and interagency coordination.
[(b) Special Rule.--In cases where the cost limits described
in subsection (a) are too restrictive to allow for adequate
planning, administration, personnel development, and
interagency coordination, the eligible provider shall negotiate
with the eligible agency in order to determine an adequate
level of funds to be used for noninstructional purposes.
[CHAPTER 4--GENERAL PROVISIONS
[SEC. 241. ADMINISTRATIVE PROVISIONS.
[(a) Supplement Not Supplant.--Funds made available for adult
education and literacy activities under this subtitle shall
supplement and not supplant other State or local public funds
expended for adult education and literacy activities.
[(b) Maintenance of Effort.--
[(1) In general.--
[(A) Determination.--An eligible agency may
receive funds under this subtitle 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 activities, 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
activities, in the third preceding fiscal year.
[(B) Proportionate reduction.--Subject to
paragraphs (2), (3), and (4), for any fiscal
year with respect to which the Secretary
determines under subparagraph (A) that the
fiscal effort or the aggregate expenditures of
an eligible agency for the preceding program
year were less than such effort or expenditures
for the second preceding program year, the
Secretary--
[(i) shall determine the percentage
decreases in such effort or in such
expenditures; and
[(ii) shall decrease the payment made
under this subtitle 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 subtitle for a fiscal year is less than the
amount made available for adult education and literacy
activities under this subtitle 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 or outlying area of the eligible
agency. If the Secretary grants a waiver under the
preceding sentence for a fiscal year, the level of
effort required under paragraph (1) shall not be
reduced in the subsequent fiscal year because of the
waiver.
[SEC. 242. NATIONAL INSTITUTE FOR LITERACY.
[(a) Purpose.--The purpose of this section is to establish a
National Institute for Literacy that--
[(1) provides national leadership regarding literacy;
[(2) coordinates literacy services and policy; and
[(3) serves as a national resource for adult
education and literacy programs by--
[(A) providing the best and most current
information available, including the work of
the National Institute of Child Health and
Human Development in the area of phonemic
awareness, systematic phonics, fluency, and
reading comprehension, to all recipients of
Federal assistance that focuses on reading,
including programs under titles I and VII of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6301 et seq. and 7401 et seq.),
the Head Start Act (42 U.S.C. 9831 et seq.),
the Individuals with Disabilities Education Act
(20 U.S.C. 1400 et seq.), and this Act; and
[(B) 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 the purpose
of which 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) Recommendations.--The Interagency Group shall
consider the recommendations of the National Institute
for Literacy Advisory Board (in this section referred
to as the ``Board'') established under subsection (e)
in planning the goals of the Institute and in the
implementation of any programs to achieve the goals. If
the Board's recommendations are not followed, the
Interagency Group shall provide a written explanation
to the Board concerning actions the Interagency Group
takes that are inconsistent with the Board's
recommendations, including the reasons for not
following the Board's recommendations with respect to
the actions. The Board may also request a meeting of
the Interagency Group to discuss the Board's
recommendations.
[(4) Daily operations.--The daily operations of the
Institute shall be administered by the Director of the
Institute.
[(c) Duties.--
[(1) In general.--In order to provide leadership for
the improvement and expansion of the system for
delivery of
literacy services, the Institute is authorized--
[(A) to establish a national electronic data
base of information that disseminates
information to the broadest possible audience
within the literacy and basic skills field, and
that includes--
[(i) effective practices in the
provision of literacy and basic skills
instruction, including instruction in
phonemic awareness, systematic phonics,
fluency, and reading comprehension, and
the integration of literacy and basic
skills 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 reliable
and replicable 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, such as the special literacy needs of
individuals with learning disabilities;
[(D) to collect and disseminate information
on methods of advancing literacy that show
great promise, including phonemic awareness,
systematic phonics, fluency, and reading
comprehension based on the work of the National
Institute of Child Health and Human
Development;
[(E) to provide policy and technical
assistance to Federal, State, and local
entities for the improvement of policy and
programs relating to literacy;
[(F) 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 by--
[(i) encouraging the coordination of
literacy
services;
[(ii) enhancing the capacity of State
and local organizations to provide
literacy services; and
[(iii) serving as a link between the
Institute and providers of adult
education and literacy activities for
the purpose of sharing information,
data, research, expertise, and literacy
resources;
[(G) to coordinate and share information with
national organizations and associations that
are interested in literacy and workforce
investment activities;
[(H) to advise Congress and Federal
departments and agencies regarding the
development of policy with respect to literacy
and basic skills; and
[(I) 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 cooperative agreements.--
The Institute may award grants to, or enter into
contracts or cooperative agreements with, individuals,
public or private institutions, agencies,
organizations, or consortia of such institutions,
agencies, or organizations to carry out the activities
of the Institute.
[(d) Literacy Leadership.--
[(1) In general.--The Institute, in consultation with
the Board, may award fellowships, with such stipends
and allowances that the Director considers necessary,
to outstanding individuals pursuing careers in adult
education or literacy in the areas of instruction,
management, research, or innovation.
[(2) Fellowships.--Fellowships awarded under this
subsection shall be used, under the auspices of the
Institute, to engage in research, education, training,
technical assistance, or other activities to advance
the field of adult education or literacy, including the
training of volunteer literacy providers at the
national, State, or local level.
[(3) 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 shall be a National
Institute for Literacy Advisory Board (in this
section referred to as the ``Board''), which
shall consist of 10 individuals appointed by
the President with the advice and consent of
the Senate.
[(B) Composition.--The Board shall be
comprised of individuals who are not otherwise
officers or employees of the Federal Government
and who are representative of entities such
as--
[(i) literacy organizations and
providers of literacy services,
including nonprofit providers,
providers of English literacy programs
and services, social service
organizations, and eligible providers
receiving assistance under this
subtitle;
[(ii) businesses that have
demonstrated interest in literacy
programs;
[(iii) literacy students, including
literacy students with disabilities;
[(iv) experts in the area of literacy
research;
[(v) State and local governments;
[(vi) State Directors of adult
education; and
[(vii) representatives of employees,
including
representatives of labor organizations.
[(2) Duties.--The Board shall--
[(A) make recommendations concerning the
appointment of the Director and staff of the
Institute;
[(B) provide independent advice on the
operation of the Institute; and
[(C) receive reports from the Interagency
Group and the Director.
[(3) 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) Appointments.--
[(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 one-third of the members are
selected each year. Any such member may be
appointed for not more than 2 consecutive
terms.
[(B) Vacancies.--Any member appointed to fill
a vacancy occurring before the expiration of
the term for which the member's predecessor was
appointed shall be appointed only for the
remainder of that term. A member may serve
after the expiration of that member's term
until a successor has taken office.
[(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.--
[(1) In general.--The Institute may accept,
administer, and use gifts or donations of services,
money, or property, whether real or personal, tangible
or intangible.
[(2) Rules.--The Board shall establish written rules
setting forth the criteria to be used by the Institute
in determining whether the acceptance of contributions
of services, money, or property whether real or
personal, tangible or intangible, would reflect
unfavorably upon the ability of the Institute or any
employee to carry out the responsibilities of the
Institute or employee, or official duties, in a fair
and objective manner, or would compromise the integrity
or the appearance of the integrity of the Institute's
programs or any official involved in those programs.
[(g) Mails.--The Board and the Institute may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the United States.
[(h) Staff.--The Interagency Group, after considering
recommendations made by the Board, shall appoint and fix the
pay of a Director.
[(i) Applicability of Certain Civil Service Laws.--The
Director and staff of the Institute may be appointed without
regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, and may be
paid without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of that title relating to
classification and General Schedule pay rates, except that an
individual so appointed may not receive pay in excess of the
annual rate of basic pay payable for level IV of the Executive
Schedule.
[( j) Experts and Consultants.--The Institute may procure
temporary and intermittent services under section 3109(b) of
title 5, United States Code.
[(k) Report.--The Institute shall submit a report biennially
to the Committee on Education and the Workforce of the House of
Representatives and the Committee on Labor and Human Resources
of the Senate. Each report submitted under this 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 2 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, 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. 243. NATIONAL LEADERSHIP ACTIVITIES.
[The Secretary shall establish and carry out a program of
national leadership activities to enhance the quality of adult
education and literacy programs nationwide. Such activities may
include the following:
[(1) Technical assistance, including--
[(A) assistance provided to eligible
providers in developing and using performance
measures for the improvement of adult education
and literacy activities, including family
literacy services;
[(B) assistance related to professional
development activities, and assistance for the
purposes of developing, improving, identifying,
and disseminating the most successful methods
and techniques for providing adult education
and literacy activities, including family
literacy services, based on scientific evidence
where available; and
[(C) assistance in distance learning and
promoting and improving the use of technology
in the classroom.
[(2) Funding national leadership activities that are
not described in paragraph (1), either directly or
through grants, contracts, or cooperative agreements
awarded on a competitive basis to or with postsecondary
educational institutions, public or private
organizations or agencies, or consortia of such
institutions, organizations, or agencies, such as--
[(A) developing, improving, and identifying
the most successful methods and techniques for
addressing the education needs of adults,
including instructional practices using
phonemic awareness, systematic phonics,
fluency, and reading comprehension, based on
the work of the National Institute of Child
Health and Human Development;
[(B) increasing the effectiveness of, and
improving the quality of, adult education and
literacy activities, including family literacy
services;
[(C) carrying out research, such as
estimating the number of adults functioning at
the lowest levels of literacy proficiency;
[(D)(i) carrying out demonstration programs;
[(ii) developing and replicating model and
innovative programs, such as the development of
models for basic skill certificates,
identification of effective strategies for
working with adults with learning disabilities
and with individuals with limited English
proficiency who are adults, and workplace
literacy programs; and
[(iii) disseminating best practices
information, including information regarding
promising practices resulting from federally
funded demonstration programs;
[(E) 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, which evaluation and
assessment shall include descriptions of--
[(i) the effect of performance
measures and other measures of
accountability on the delivery of adult
education and literacy activities,
including family literacy services;
[(ii) 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
activities;
[(iii) the extent to which the
provision of support services to adults
enrolled in adult education and family
literacy programs increase the rate of
enrollment in, and successful
completion of, such programs; and
[(iv) the extent to which eligible
agencies have distributed funds under
section 231 to meet the needs of adults
through community-based organizations;
[(F) supporting efforts aimed at capacity
building at the State and local levels, such as
technical assistance in program planning,
assessment, evaluation, and monitoring of
activities carried out under this subtitle;
[(G) collecting data, such as data regarding
the improvement of both local and State data
systems, through technical assistance and
development of model performance data
collection systems; and
[(H) other activities designed to enhance the
quality of adult education and literacy
activities nationwide.
[Subtitle B--Repeals
[SEC. 251. REPEALS.
[(a) Repeals.--
[(1) Adult education act.--The Adult Education Act
(20 U.S.C. 1201 et seq.) is repealed.
[(2) National literacy act of 1991.--The National
Literacy Act of 1991 (20 U.S.C. 1201 note) is repealed.
[(b) Conforming Amendments.--
[(1) Refugee education assistance act.--Subsection
(b) of section 402 of the Refugee Education Assistance
Act of 1980 (8 U.S.C. 1522 note) is repealed.
[(2) Elementary and secondary education act of
1965.--
[(A) Section 1202 of esea.--Section
1202(c)(1) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6362(c)(1)) is
amended by striking ``Adult Education Act'' and
inserting ``Adult Education and Family Literacy
Act''.
[(B) Section 1205 of esea.--Section
1205(8)(B) of such Act (20 U.S.C. 6365(8)(B))
is amended by striking ``Adult Education Act''
and inserting ``Adult Education and Family
Literacy Act''.
[(C) Section 1206 of esea.--Section
1206(a)(1)(A) of such Act (20 U.S.C.
6366(a)(1)(A)) is amended by striking ``an
adult basic education program under the Adult
Education Act'' and inserting ``adult education
and literacy activities under the Adult
Education and Family Literacy Act''.
[(D) Section 3113 of esea.--Section 3113(1)
of such Act (20 U.S.C. 6813(1)) is amended by
striking ``section 312 of the Adult Education
Act'' and inserting ``section 203 of the Adult
Education and Family Literacy Act''.
[(E) Section 9161 of esea.--Section 9161(2)
of such Act (20 U.S.C. 7881(2)) is amended by
striking ``section 312(2) of the Adult
Education Act'' and inserting ``section 203 of
the Adult Education and Family Literacy Act''.
[(3) Older americans act of 1965.--Section 203(b)(8)
of the Older Americans Act of 1965 (42 U.S.C.
3013(b)(8)) is amended by striking ``Adult Education
Act'' and inserting ``Adult Education and Family
Literacy Act''.]
TITLE II--ADULT BASIC SKILLS AND FAMILY LITERACY EDUCATION
SEC. 201. SHORT TITLE.
This title may be cited as the ``Adult Basic Skills and
Family Literacy Education Act''.
SEC. 202. PURPOSE.
It is the purpose of this title to provide instructional
opportunities for adults seeking to improve their basic
reading, writing, speaking, and math skills, and support States
and local communities in providing, on a voluntary basis, adult
basic skills and family literacy programs, in order to--
(1) increase the basic reading, writing, speaking,
and math skills necessary for adults to obtain
employment and self-sufficiency and to successfully
advance in the workforce;
(2) assist adults in the completion of a secondary
school education (or its equivalent) and the transition
to a postsecondary educational institution;
(3) increase the basic reading, writing, speaking,
and math skills of parents to enable them to support
the educational development of their children and make
informed choices regarding their children's education;
and
(4) assist immigrants who are not proficient in
English in improving their reading, writing, speaking,
and math skills and acquiring an understanding of the
American free enterprise system, individual freedom,
and the responsibilities of citizenship.
SEC. 203. DEFINITIONS.
In this title:
(1) Adult basic skills and family literacy education
programs.--The term ``adult basic skills and family
literacy education programs'' means a sequence of
academic instruction and educational services below the
postsecondary level that increase an individual's
ability to read, write, and speak in English and
perform mathematical computations leading to a level of
proficiency equivalent to secondary school completion
that is provided for individuals--
(A) who are at least 16 years of age;
(B) who are not enrolled or required to be
enrolled in secondary school under State law;
and
(C) who--
(i) lack sufficient mastery of basic
reading, writing, speaking, and math
skills to enable the individuals to
function effectively in society;
(ii) do not have a secondary school
diploma or the General Equivalency
Diploma (GED) (including recognized
alternative standards for individuals
with disabilities), and have not
achieved an equivalent level of
education; or
(iii) are unable to read, write, or
speak the English language.
(2) Eligible agency.--The term ``eligible agency''--
(A) means the sole entity or agency in a
State or an outlying area responsible for
administering or supervising policy for adult
basic skills and family literacy education
programs in the State or outlying area,
respectively, consistent with the law of the
State or outlying area, respectively; and
(B) may be the State educational agency, the
State agency responsible for administering
workforce investment activities, or the State
agency responsible for administering community
or technical colleges.
(3) Eligible provider.--The term ``eligible
provider'' means--
(A) a local educational agency;
(B) a community-based or faith-based
organization of demonstrated effectiveness;
(C) a volunteer literacy organization of
demonstrated effectiveness;
(D) an institution of higher education;
(E) a public or private educational agency;
(F) a library;
(G) a public housing authority;
(H) an institution that is not described in
any of subparagraphs (A) through (G) and has
the ability to provide adult basic skills and
family literacy education programs to adults
and families; or
(I) a consortium of the agencies,
organizations, institutions, libraries, or
authorities described in any of subparagraphs
(A) through (H).
(4) English language acquisition program.--The term
``English language acquisition program'' means a
program of instruction designed to help individuals
with limited English proficiency achieve competence in
reading, writing, and speaking the English language.
(5) Essential components of reading instruction.--The
term ``essential components of reading instruction''
has the meaning given to that term in section 1208 of
the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6368).
(6) Family literacy education programs.--The term
``family literacy education programs'' means
educational programs that--
(A) assist parents and students, on a
voluntary basis, in achieving the purposes of
this title as described in section 202; and
(B) are of sufficient intensity in terms of
hours and of sufficient duration to make
sustainable changes in a family, are based upon
scientific research-based principles, and for
the purpose of substantially increasing the
ability of parents and children to read, write,
and speak English integrate--
(i) interactive literacy activities
between parents and their children;
(ii) training for parents regarding
how to be the primary teacher for their
children and full partners in the
education of their children;
(iii) parent literacy training that
leads to economic self-sufficiency; and
(iv) an age-appropriate education to
prepare children for success in school
and life experiences.
(7) Governor.--The term ``Governor'' means the chief
executive officer of a State or outlying area.
(8) Individual with a disability.--
(A) In general.--The term ``individual with a
disability'' means an individual with any
disability (as defined in section 3 of the
Americans with Disabilities Act of 1990 (42
U.S.C. 12102)).
(B) Individuals with disabilities.--The term
``individuals with disabilities'' means more
than one individual with a disability.
(9) Individual with limited english proficiency.--The
term ``individual with limited English proficiency''
means an adult or out-of-school youth who has limited
ability in reading, writing, speaking, or understanding
the English language, and--
(A) whose native language is a language other
than English; or
(B) who lives in a family or community
environment where a language other than English
is the dominant language.
(10) Institution of higher education.--The term
``institution of higher education'' has the meaning
given to that term in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001).
(11) Literacy.--The term ``literacy'' means the
ability to read, write, and speak the English language
with competence, knowledge, and comprehension.
(12) Local educational agency.--The term ``local
educational agency'' has the meaning given to that term
in section 9101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7801).
(13) Outlying area.--The term ``outlying area'' has
the meaning given to that term in section 101 of this
Act.
(14) Postsecondary educational institution.--The term
``postsecondary educational institution'' means--
(A) an institution of higher education that
provides not less than a 2-year program of
instruction that is acceptable for credit
toward a bachelor's degree;
(B) a tribally controlled community college;
or
(C) a nonprofit educational institution
offering certificate or apprenticeship programs
at the postsecondary level.
(15) Reading.--The term ``reading'' has the meaning
given to that term in section 1208 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6368).
(16) Scientifically based reading research.--The term
``scientifically based reading research'' has the
meaning given to that term in section 1208 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6368).
(17) Secretary.--The term ``Secretary'' means the
Secretary of Education.
(18) State.--The term ``State'' means each of the
several States of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico.
(19) State educational agency.--The term ``State
educational agency'' has the meaning given to that term
in section 9101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7801).
(20) Workplace literacy program.--The term
``workplace literacy program'' means an educational
program that is offered in collaboration between
eligible providers and employers or employee
organizations for the purpose of improving the
productivity of the workforce through the improvement
of reading, writing, speaking, and math skills.
SEC. 204. HOME SCHOOLS.
Nothing in this title shall be construed to affect home
schools, whether or not a home school is treated as a home
school or a private school under State law, or to compel a
parent engaged in home schooling to participate in an English
language acquisition program, a family literacy education
program, or an adult basic skills and family literacy education
program.
SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
title $584,300,000 for fiscal year 2004 and such sums as may be
necessary for fiscal years 2005 through 2009.
CHAPTER 1--FEDERAL PROVISIONS
SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES;
ALLOTMENTS.
(a) Reservation of Funds.--From the sums appropriated under
section 205 for a fiscal year, the Secretary--
(1) shall reserve 1.75 percent to carry out the
National Institute for Literacy Establishment Act;
(2) shall reserve up to 1.72 percent for incentive
grants under section 213; and
(3) shall reserve up to 1.55 percent to carry out
section 242.
(b) Grants to Eligible Agencies.--
(1) In general.--From the sums appropriated under
section 205 and not reserved under subsection (a) for a
fiscal year, the Secretary shall award a grant to each
eligible agency having a State plan approved under
section 224 in an amount equal to the sum of the
initial allotment under subsection (c)(1) and the
additional allotment under subsection (c)(2) for the
eligible agency for the fiscal year, subject to
subsections (f) and (g).
(2) Purpose of grants.--The Secretary may award a
grant under paragraph (1) only if the eligible agency
involved agrees to expend the grant in accordance with
the provisions of this title.
(c) Allotments.--
(1) Initial allotments.--From the sums appropriated
under section 205 and not reserved under subsection (a)
for a fiscal year, the Secretary shall allot to each
eligible agency having a State plan approved under
section 224--
(A) $100,000, in the case of an eligible
agency serving an outlying area; and
(B) $250,000, in the case of any other
eligible agency.
(2) Additional allotments.--From the sums
appropriated under section 205, not reserved under
subsection (a), and not allotted under paragraph (1),
for a fiscal year, the Secretary shall allot to each
eligible agency that receives an initial allotment
under paragraph (1) an additional amount that bears the
same relationship to such sums as the number of
qualifying adults in the State or outlying area served
by the eligible agency bears to the number of such
adults in all States and outlying areas.
(d) Qualifying Adult.--For the purpose of subsection (c)(2),
the term ``qualifying adult'' means an adult who--
(1) is at least 16 years of age;
(2) is beyond the age of compulsory school attendance
under the law of the State or outlying area;
(3) does not have a secondary school diploma or the
General Equivalency Diploma (GED) (including recognized
alternative standards for individuals with
disabilities); and
(4) is not enrolled in secondary school.
(e) Special Rule.--
(1) In general.--From amounts made available under
subsection (c) for the Republic of the Marshall
Islands, the Federated States of Micronesia, and the
Republic of Palau, the Secretary shall award grants to
Guam, American Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall Islands,
the Federated States of Micronesia, or the Republic of
Palau to carry out activities described in this title
in accordance with the provisions of this title as
determined by the Secretary.
(2) Termination of eligibility.--Notwithstanding any
other provision of law, the Republic of the Marshall
Islands, the Federated States of Micronesia, and the
Republic of Palau shall be eligible to receive a grant
under this title until an agreement for the extension
of United States education assistance under the Compact
of Free Association for each of the Freely Associated
States becomes effective.
(3) Administrative costs.--The Secretary may provide
not more than 5 percent of the funds made available for
grants under this subsection to pay the administrative
costs of the Pacific Region Educational Laboratory
regarding activities assisted under this subsection.
(f) Hold-Harmless Provisions.--
(1) In general.--Notwithstanding subsection (c), and
subject to paragraphs (2) and (3), for fiscal year 2004
and each succeeding fiscal year, no eligible agency
shall receive an allotment under this title that is
less than 90 percent of the allotment the eligible
agency received for the preceding fiscal year under
this title.
(2) Exception.--An eligible agency that receives for
the preceding fiscal year only an initial allotment
under subsection 211(c)(1) (and no additional allotment
under 211(c)(2)) shall receive an allotment equal to
100 percent of the initial allotment.
(3) Ratable reduction.--If for any fiscal year the
amount available for allotment under this title is
insufficient to satisfy the provisions of paragraph
(1), the Secretary shall ratably reduce the payments to
all eligible agencies, as necessary.
(g) Reallotment.--The portion of any eligible agency's
allotment under this title for a fiscal year that the Secretary
determines will not be required for the period such allotment
is available for carrying out activities under this title,
shall be available for reallotment from time to time, on such
dates during such period as the Secretary shall fix, to other
eligible agencies in proportion to the original allotments to
such agencies under this title for such year.
SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) Purpose.--The purpose of this section is to establish a
comprehensive performance accountability system, composed of
the activities described in this section, to assess the
effectiveness of eligible agencies in achieving continuous
improvement of adult basic skills and family literacy education
programs funded under this title, in order to optimize the
return on investment of Federal funds in adult basic skills and
family literacy education programs.
(b) Eligible Agency Performance Measures.--
(1) In general.--For each eligible agency, the
eligible agency performance measures shall consist of--
(A)(i) the core indicators of performance
described in paragraph (2)(A); and
(ii) employment performance indicators
identified by the eligible agency under
paragraph (2)(B); and
(B) an eligible agency adjusted level of
performance for each indicator described in
subparagraph (A).
(2) Indicators of performance.--
(A) Core indicators of performance.--The core
indicators of performance shall include the
following:
(i) Measurable improvements in basic
skill levels in reading, writing, and
speaking the English language and math,
and English language acquisition
leading to proficiency in each skill.
(ii) Receipt of a secondary school
diploma or the General Equivalency
Diploma (GED) (including recognized
alternative standards for individuals
with disabilities).
(iii) Placement in postsecondary
education or other training programs.
(B) Employment performance indicators.--
Consistent with applicable Federal and State
privacy laws, an eligible agency shall identify
in the State plan the following individual
participant employment performance indicators--
(i) entry into employment;
(ii) retention in employment; and
(iii) increase in earnings.
(3) Levels of performance.--
(A) Eligible agency adjusted levels of
performance for core indicators.--
(i) In general.--For each eligible
agency submitting a State plan, there
shall be established, in accordance
with this subparagraph, levels of
performance for each of the core
indicators of performance described in
paragraph (2)(A) for adult basic skills
and family literacy education programs
authorized under this title. The levels
of performance established under this
subparagraph shall, at a minimum--
(I) be expressed in an
objective, quantifiable, and
measurable form; and
(II) show the progress of the
eligible agency toward
continuously and significantly
improving the agency's
performance outcomes in an
objective, quantifiable, and
measurable form.
(ii) Identification in state plan.--
Each eligible agency shall identify, in
the State plan submitted under section
224, expected levels of performance for
each of the core indicators of
performance for the first 3 program
years covered by the State plan.
(iii) Agreement on eligible agency
adjusted levels of performance for
first 3 years.--In order to ensure an
optimal return on the investment of
Federal funds in adult basic skills and
family literacy education programs
authorized under this title, the
Secretary and each eligible agency
shall reach agreement on levels of
student proficiency for each of the
core indicators of performance, for the
first 3 program years covered by the
State plan, taking into account the
levels identified in the State plan
under clause (ii) and the factors
described in clause (iv). The levels
agreed to under this clause shall be
considered to be the eligible agency
adjusted levels of performance for the
eligible agency for such years and
shall be incorporated into the State
plan prior to the approval of such
plan.
(iv) Factors.--The agreement
described in clause (iii) or (v) shall
take into account--
(I) how the levels involved
compare with the eligible
agency's adjusted levels of
performance, taking into
account factors including the
characteristics of participants
when the participants entered
the program; and
(II) the extent to which such
levels promote continuous and
significant improvement in
performance on the student
proficiency measures used by
such eligible agency and ensure
optimal return on the
investment of Federal funds.
(v) Agreement on eligible agency
adjusted levels of performance for
second 3 years.--Prior to the fourth
program year covered by the State plan,
the Secretary and each eligible agency
shall reach agreement on levels of
student proficiency for each of the
core indicators of performance for the
fourth, fifth, and sixth program years
covered by the State plan, taking into
account the factors described in clause
(iv). The levels agreed to under this
clause shall be considered to be the
eligible agency adjusted levels of
performance for the eligible agency for
such years and shall be incorporated
into the State plan.
(vi) Revisions.--If unanticipated
circumstances arise in a State
resulting in a significant change in
the factors described in clause
(iv)(I), the eligible agency may
request that the eligible agency
adjusted levels of performance agreed
to under clause (iii) or (v) be
revised.
(B) Levels of employment performance.--The
eligible agency shall identify, in the State
plan, eligible agency levels of performance for
each of the employment performance indicators
described in paragraph (2)(B). Such levels
shall be considered to be eligible agency
adjusted levels of performance for purposes of
this title.
(c) Report.--
(1) In general.--Each eligible agency that receives a
grant under section 211(b) shall annually prepare and
submit to the Secretary, the Governor, the State
legislature, eligible providers, and the general public
within the State, a report on the progress of the
eligible agency in achieving eligible agency
performance measures, including the following:
(A) Information on the levels of performance
achieved by the eligible agency with respect to
the core indicators of performance and
employment performance indicators.
(B) The number and type of each eligible
provider that receives funding under such
grant.
(2) Information dissemination.--The Secretary--
(A) shall make the information contained in
such reports available to the general public
through publication and other appropriate
methods;
(B) shall disseminate State-by-State
comparisons of the information; and
(C) shall provide the appropriate committees
of the Congress with copies of such reports.
SEC. 213. INCENTIVE GRANTS FOR STATES.
(a) In General.--From funds appropriated under section
211(a)(2), the Secretary may award grants to States for
exemplary performance in carrying out programs under this
title. Such awards shall be based on States meeting or
exceeding the core indicators of performance established under
section 212(b)(2)(A) and may be based on the performance of the
State in serving populations, such as those described in
section 224(b)(10), including the levels of service provided
and the performance outcomes, and such other factors relating
to the performance of the State under this title as the
Secretary determines appropriate.
(b) Use of Funds.--The funds awarded to a State under this
paragraph may be used to carry out any activities authorized
under this title, including demonstrations and innovative
programs for hard-to-serve populations.
CHAPTER 2--STATE PROVISIONS
SEC. 221. STATE ADMINISTRATION.
Each eligible agency shall be responsible for the following
activities under this title:
(1) The development, submission, implementation, and
monitoring of the State plan.
(2) Consultation with other appropriate agencies,
groups, and individuals that are involved in, or
interested in, the development and implementation of
activities assisted under this title.
(3) Coordination and avoidance of duplication with
other Federal and State education, training,
corrections, public housing, and social service
programs.
SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.
(a) State Distribution of Funds.--Each eligible agency
receiving a grant under this title for a fiscal year--
(1) shall use an amount not less than 82.5 percent of
the grant funds to award grants and contracts under
section 231 and to carry out section 225, of which not
more than 10 percent of such amount shall be available
to carry out section 225;
(2) shall use not more than 12.5 percent of the grant
funds to carry out State leadership activities under
section 223; and
(3) shall use not more than 5 percent of the grant
funds, or $75,000, whichever is greater, for the
administrative expenses of the eligible agency.
(b) Matching Requirement.--
(1) In general.--In order to receive a grant from the
Secretary under section 211(b), each eligible agency
shall provide, for the costs to be incurred by the
eligible agency in carrying out the adult basic skills
and family literacy education programs for which the
grant is awarded, a non-Federal contribution in an
amount at least equal to--
(A) in the case of an eligible agency serving
an outlying area, 12 percent of the total
amount of funds expended for adult basic skills
and family literacy education programs in the
outlying area, except that the Secretary may
decrease the amount of funds required under
this subparagraph for an eligible agency; and
(B) in the case of an eligible agency serving
a State, 25 percent of the total amount of
funds expended for adult basic skills and
family literacy education programs in the
State.
(2) Non-federal contribution.--An eligible agency's
non-Federal contribution required under paragraph (1)
may be provided in cash or in kind, fairly evaluated,
and shall include only non-Federal funds that are used
for adult basic skills and family literacy education
programs in a manner that is consistent with the
purpose of this title.
SEC. 223. STATE LEADERSHIP ACTIVITIES.
(a) In General.--Each eligible agency may use funds made
available under section 222(a)(2) for any of the following
adult basic skills and family literacy education programs:
(1) The establishment or operation of professional
development programs to improve the quality of
instruction provided pursuant to local activities
required under section 231(b), including instruction
incorporating the essential components of reading
instruction and instruction provided by volunteers or
by personnel of a State or outlying area.
(2) The provision of technical assistance to eligible
providers of adult basic skills and family literacy
education programs for development and dissemination of
scientific research-based instructional practices in
reading, writing, speaking, math, and English language
acquisition programs.
(3) The provision of assistance to eligible providers
in developing, implementing, and reporting measurable
progress in achieving the objectives of this title.
(4) The provision of technology assistance, including
staff training, to eligible providers of adult basic
skills and family literacy education programs,
including distance learning activities, to enable the
eligible providers to improve the quality of such
activities.
(5) The development and implementation of technology
applications or distance learning, including
professional development to support the use of
instructional technology.
(6) Coordination with other public programs,
including welfare-to-work, workforce development, and
job training programs.
(7) Coordination with existing support services, such
as transportation, child care, and other assistance
designed to increase rates of enrollment in, and
successful completion of, adult basic skills and family
literacy education programs, for adults enrolled in
such activities.
(8) The development and implementation of a system to
assist in the transition from adult basic education to
postsecondary education.
(9) Activities to promote workplace literacy
programs.
(10) Activities to promote and complement local
outreach initiatives described in section 242(7).
(11) Other activities of statewide significance,
including assisting eligible agencies in achieving
progress in improving the skill levels of adults who
participate in programs under this title.
(b) Coordination.--In carrying out this section, eligible
agencies shall coordinate where possible, and avoid duplicating
efforts, in order to maximize the impact of the activities
described in subsection (a).
(c) State-Imposed Requirements.--Whenever a State or outlying
area implements any rule or policy relating to the
administration or operation of a program authorized under this
title that has the effect of imposing a requirement that is not
imposed under Federal law (including any rule or policy based
on a State or outlying area interpretation of a Federal
statute, regulation, or guideline), the State or outlying area
shall identify, to eligible providers, the rule or policy as
being imposed by the State or outlying area.
SEC. 224. STATE PLAN.
(a) 6-Year Plans.--
(1) In general.--Each eligible agency desiring a
grant under this title for any fiscal year shall submit
to, or have on file with, the Secretary a 6-year State
plan.
(2) Comprehensive plan or application.--The eligible
agency may submit the State plan as part of a
comprehensive plan or application for Federal education
assistance.
(b) Plan Contents.--The eligible agency shall include in the
State plan or any revisions to the State plan--
(1) an objective assessment of the needs of
individuals in the State or outlying area for adult
basic skills and family literacy education programs,
including individuals most in need or hardest to serve;
(2) a description of the adult basic skills and
family literacy education programs that will be carried
out with funds received under this title;
(3) a description of how the eligible agency will
evaluate and measure annually the effectiveness and
improvement of the adult basic skills and family
literacy education programs based on the performance
measures described in section 212 including--
(A) how the eligible agency will evaluate and
measure annually such effectiveness on a grant-
by-grant basis; and
(B) how the eligible agency--
(i) will hold eligible providers
accountable regarding the progress of
such providers in improving the
academic achievement of participants in
adult education programs under this
title and regarding the core indicators
of performance described in section
212(b)(2)(A); and
(ii) will use technical assistance,
sanctions, and rewards (including
allocation of grant funds based on
performance and termination of grant
funds based on nonperformance);
(4) a description of the performance measures
described in section 212 and how such performance
measures have significantly improved adult basic skills
and family literacy education programs in the State or
outlying area;
(5) an assurance that the eligible agency will, in
addition to meeting all of the other requirements of
this title, award not less than one grant under this
title to an eligible provider that--
(A) offers flexible schedules and necessary
support services (such as child care and
transportation) to enable individuals,
including individuals with disabilities, or
individuals with other special needs, to
participate in adult basic skills and family
literacy education programs; and
(B) attempts to coordinate with support
services that are not provided under this title
prior to using funds for adult basic skills and
family literacy education programs provided
under this title for support services;
(6) an assurance that the funds received under this
title will not be expended for any purpose other than
for activities under this title;
(7) a description of how the eligible agency will
fund local activities in accordance with the measurable
goals described in section 231(d);
(8) an assurance that the eligible agency will expend
the funds under this title only in a manner consistent
with fiscal requirements in section 241;
(9) a description of the process that will be used
for public participation and comment with respect to
the State plan, which process--
(A) shall include consultation with the State
workforce investment board, the State board
responsible for administering community or
technical colleges, the Governor, the State
educational agency, the State board or agency
responsible for administering block grants for
temporary assistance to needy families under
title IV of the Social Security Act, the State
council on disabilities, the State vocational
rehabilitation agency, other State agencies
that promote the improvement of adult basic
skills and family literacy education programs,
and direct providers of such programs; and
(B) may include consultation with the State
agency on higher education, institutions
responsible for professional development of
adult basic skills and family literacy
education programs instructors, representatives
of business and industry, refugee assistance
programs, and faith-based organizations;
(10) a description of the eligible agency's
strategies for serving populations that include, at a
minimum--
(A) low-income individuals;
(B) individuals with disabilities;
(C) the unemployed;
(D) the underemployed; and
(E) individuals with multiple barriers to
educational enhancement, including individuals
with limited English proficiency;
(11) a description of how the adult basic skills and
family literacy education programs that will be carried
out with any funds received under this title will be
integrated with other adult education, career
development, and employment and training activities in
the State or outlying area served by the eligible
agency;
(12) a description of the steps the eligible agency
will take to ensure direct and equitable access, as
required in section 231(c)(1), including--
(A) how the State will build the capacity of
community-based and faith-based organizations
to provide adult basic skills and family
literacy education programs; and
(B) how the State will increase the
participation of business and industry in adult
basic skills and family literacy education
programs; and
(13) a description of how the eligible agency will
consult with any State agency responsible for
postsecondary education to develop adult education that
prepares students to enter postsecondary education
without the need for remediation upon completion of
secondary school equivalency programs.
(c) Plan Revisions.--When changes in conditions or other
factors require substantial revisions to an approved State
plan, the eligible agency shall submit the revisions of the
State plan to the Secretary.
(d) Consultation.--The eligible agency shall--
(1) submit the State plan, and any revisions to the
State plan, to the Governor, the chief State school
officer, or the State officer responsible for
administering community or technical colleges, or
outlying area for review and comment; and
(2) ensure that any comments regarding the State plan
by the Governor, the chief State school officer, or the
State officer responsible for administering community
or technical colleges, and any revision to the State
plan, are submitted to the Secretary.
(e) Plan Approval.--A State plan submitted to the Secretary
shall be approved by the Secretary only if the plan is
consistent with the specific provisions of this title.
SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
(a) Program Authorized.--From funds made available under
section 222(a)(1) for a fiscal year, each eligible agency shall
carry out corrections education and education for other
institutionalized individuals.
(b) Uses of Funds.--The funds described in subsection (a)
shall be used for the cost of educational programs for criminal
offenders in correctional institutions and for other
institutionalized individuals, including academic programs
for--
(1) basic skills education;
(2) special education programs as determined by the
eligible agency;
(3) reading, writing, speaking, and math programs;
and
(4) secondary school credit or diploma programs or
their recognized equivalent.
(c) Priority.--Each eligible agency that is using assistance
provided under this section to carry out a program for criminal
offenders within a correctional institution shall give priority
to serving individuals who are likely to leave the correctional
institution within 5 years of participation in the program.
(d) Definition of Criminal Offender.--For purposes of this
section:
(1) Correctional institution.--The term
``correctional institution'' means any--
(A) prison;
(B) jail;
(C) reformatory;
(D) work farm;
(E) detention center; or
(F) halfway house, community-based
rehabilitation center, or any other similar
institution designed for the confinement or
rehabilitation of criminal offenders.
(2) Criminal offender.--The term ``criminal
offender'' means any individual who is charged with, or
convicted of, any criminal offense.
CHAPTER 3--LOCAL PROVISIONS
SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
(a) Grants and Contracts.--From grant funds made available
under section 211(b), each eligible agency shall award
multiyear grants or contracts, on a competitive basis, to
eligible providers within the State or outlying area that meet
the conditions and requirements of this title to enable the
eligible providers to develop, implement, and improve adult
basic skills and family literacy education programs within the
State.
(b) Local Activities.--The eligible agency shall require
eligible providers receiving a grant or contract under
subsection (a) to establish or operate one or more programs of
instruction that provide services or instruction in one or more
of the following categories:
(1) Adult basic skills and family literacy education
programs, including essential workplace skills
(including proficiency in reading, writing, speaking,
and math).
(2) Workplace literacy programs.
(3) English language acquisition programs.
(4) family literacy education programs.
(c) Direct and Equitable Access; Same Process.--Each eligible
agency receiving funds under this title shall ensure that--
(1) all eligible providers have direct and equitable
access to apply for grants or contracts under this
section; and
(2) the same grant or contract announcement process
and application process is used for all eligible
providers in the State or outlying area.
(d) Measurable Goals.--The eligible agency shall require
eligible providers receiving a grant or contract under
subsection (a) to demonstrate--
(1) the eligible provider's measurable goals for
participant outcomes to be achieved annually on the
core indicators of performance and employment
performance indicators described in section 212(b)(2);
(2) the past effectiveness of the eligible provider
in improving the basic academic skills of adults and,
for eligible providers receiving grants in the prior
year, the success of the eligible provider receiving
funding under this title in meeting or exceeding its
performance goals in the prior year;
(3) the commitment of the eligible provider to serve
individuals in the community who are the most in need
of basic academic skills instruction services,
including individuals who are low-income or have
minimal reading, writing, speaking, and math skills, or
limited English proficiency.
(4) whether or not the program--
(A) is of sufficient intensity and duration
for participants to achieve substantial
learning gains; and
(B) uses instructional practices that include
the essential components of reading
instruction;
(5) whether educational practices are based on
scientifically based research;
(6) whether the activities of the eligible provider
effectively employ advances in technology, as
appropriate, including the use of computers;
(7) whether the activities provide instruction in
real-life contexts, to ensure that an individual has
the skills needed to compete in the workplace and
exercise the rights and responsibilities of
citizenship;
(8) whether the activities are staffed by well-
trained instructors, counselors, and administrators;
(9) whether the activities are coordinated with other
available resources in the community, such as through
strong links with elementary schools and secondary
schools, postsecondary educational institutions, one-
stop centers, job training programs, community-based
and faith-based organizations, and social service
agencies;
(10) whether the activities offer flexible schedules
and support services (such as child care and
transportation) that are necessary to enable
individuals, including individuals with disabilities or
other special needs, to attend and complete programs;
(11) whether the activities include a high-quality
information management system that has the capacity to
report measurable participant outcomes and to monitor
program performance against the performance measures
established by the eligible agency;
(12) whether the local communities have a
demonstrated need for additional English language
acquisition programs;
(13) the capacity of the eligible provider to produce
valid information on performance results, including
enrollments and measurable participant outcomes;
(14) whether adult basic skills and family literacy
education programs offer rigorous reading, writing,
speaking, and math content that are based on scientific
research; and
(15) whether applications of technology, and services
to be provided by the eligible providers, is of
sufficient intensity and duration to increase the
amount and quality of learning and lead to measurable
learning gains within specified time periods.
SEC. 232. LOCAL APPLICATION.
Each eligible provider desiring a grant or contract under
this title shall submit an application to the eligible agency
containing such information and assurances as the eligible
agency may require, including--
(1) a description of how funds awarded under this
title will be spent consistent with the requirements of
this title;
(2) a description of any cooperative arrangements the
eligible provider has with other agencies,
institutions, or organizations for the delivery of
adult basic skills and family literacy education
programs; and
(3) each of the demonstrations required by section
231(d).
SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
(a) In General.--Subject to subsection (b), of the amount
that is made available under this title to an eligible
provider--
(1) at least 95 percent shall be expended for
carrying out adult basic skills and family literacy
education programs; and
(2) the remaining amount shall be used for planning,
administration, personnel and professional development,
development of measurable goals in reading, writing,
speaking, and math, and interagency coordination.
(b) Special Rule.--In cases where the cost limits described
in subsection (a) are too restrictive to allow for adequate
planning, administration, personnel development, and
interagency coordination, the eligible provider may negotiate
with the eligible agency in order to determine an adequate
level of funds to be used for noninstructional purposes.
CHAPTER 4--GENERAL PROVISIONS
SEC. 241. ADMINISTRATIVE PROVISIONS.
(a) Supplement Not Supplant.--Funds made available for adult
basic skills and family literacy education programs under this
title shall supplement and not supplant other State or local
public funds expended for adult basic skills and family
literacy education programs.
(b) Maintenance of Effort.--
(1) In general.--
(A) Determination.--An eligible agency may
receive funds under this title for any fiscal
year if the Secretary finds that the fiscal
effort per student or the aggregate
expenditures of such eligible agency for
activities under this title, in the second
preceding fiscal year, were not less than 90
percent of the fiscal effort per student or the
aggregate expenditures of such eligible agency
for adult basic skills and family literacy
education programs, in the third preceding
fiscal year.
(B) Proportionate reduction.--Subject to
paragraphs (2), (3), and (4), for any fiscal
year with respect to which the Secretary
determines under subparagraph (A) that the
fiscal effort or the aggregate expenditures of
an eligible agency for the preceding program
year were less than such effort or expenditures
for the second preceding program year, the
Secretary--
(i) shall determine the percentage
decreases in such effort or in such
expenditures; and
(ii) shall decrease the payment made
under this title for such program year
to the agency for adult basic skills
and family literacy education programs
by the lesser of such percentages.
(2) Computation.--In computing the fiscal effort and
aggregate expenditures under paragraph (1), the
Secretary shall exclude capital expenditures and
special one-time project costs.
(3) Decrease in federal support.--If the amount made
available for adult basic skills and family literacy
education programs under this title for a fiscal year
is less than the amount made available for adult basic
skills and family literacy education programs under
this title for the preceding fiscal year, then the
fiscal effort per student and the aggregate
expenditures of an eligible agency required in order to
avoid a reduction under paragraph (1)(B) shall be
decreased by the same percentage as the percentage
decrease in the amount so made available.
(4) Waiver.--The Secretary may waive the requirements
of this subsection for not more than 1 fiscal year, if
the Secretary determines that a waiver would be
equitable due to exceptional or uncontrollable
circumstances, such as a natural disaster or an
unforeseen and precipitous decline in the financial
resources of the State or outlying area of the eligible
agency. If the Secretary grants a waiver under the
preceding sentence for a fiscal year, the level of
effort required under paragraph (1) shall not be
reduced in the subsequent fiscal year because of the
waiver.
SEC. 242. NATIONAL LEADERSHIP ACTIVITIES.
The Secretary shall establish and carry out a program of
national leadership activities that may include the following:
(1) Technical assistance, on request, including
assistance--
(A) on requests to volunteer community- and
faith-based organizations, including but not
limited to, improving their fiscal management,
research-based instruction, and reporting
requirements, and the development of measurable
objectives to carry out the requirements of
this title;
(B) in developing valid, measurable, and
reliable performance data, and using
performance information for the improvement of
adult basic skills and family literacy
education programs;
(C) on adult education professional
development; and
(D) in using distance learning and improving
the application of technology in the classroom.
(2) Providing for the conduct of research on national
literacy basic skill acquisition levels among adults,
including the number of adults functioning at different
levels of reading proficiency.
(3) Improving the coordination, efficiency, and
effectiveness of adult education and workforce
development services at the national, State, and local
levels.
(4) Determining how participation in adult basic
skills and family literacy education programs prepares
individuals for entry into and success in postsecondary
education and employment, and in the case of prison-
based services, the effect on recidivism.
(5) Evaluating how different types of providers,
including community and faith-based organizations or
private for-profit agencies measurably improve the
skills of participants in adult basic skills and family
literacy education programs.
(6) Identifying model integrated basic and workplace
skills education programs, coordinated literacy and
employment services, and effective strategies for
serving adults with disabilities.
(7) Supporting the development of an entity that
would produce and distribute technology-based programs
and materials for adult basic skills and family
literacy education programs using an intercommunication
system, as that term is defined in section 397 of the
Communications Act of 1934 (47 U.S.C. 397), and expand
the effective outreach and use of such programs and
materials to adult education eligible providers.
(8) Initiating other activities designed to improve
the measurable quality and effectiveness of adult basic
skills and family literacy education programs
nationwide.
* * * * * * *
TITLE V--GENERAL PROVISIONS
* * * * * * *
[SEC. 502. DEFINITIONS FOR INDICATORS OF PERFORMANCE.
[(a) In General.--In order to ensure nationwide comparability
of performance data, the Secretary of Labor and the Secretary
of Education, after consultation with the representatives
described in subsection (b), shall issue definitions for
indicators of performance and levels of performance established
under titles I and II.
[(b) Representatives.--The representatives referred to in
subsection (a) are representatives of States (as defined in
section 101) and political subdivisions, business and industry,
employees, eligible providers of employment and training
activities (as defined in section 101), educators, participants
in activities carried out under this Act, State Directors of
adult education, providers of adult education, providers of
literacy services, individuals with expertise in serving the
employment and training needs of eligible youth (as defined in
section 101), parents, and other interested parties, with
expertise regarding activities authorized under this Act.
[SEC. 503. INCENTIVE GRANTS.
[(a) In General.--Beginning on July 1, 2000, the Secretary
shall award a grant to each State that exceeds the State
adjusted levels of performance for title I, the adjusted levels
of performance for title II, and the levels of performance for
programs under Public Law 105-332 (20 U.S.C. 2301 et seq.), for
the purpose of carrying out an innovative program consistent
with the requirements of any one or more of the programs within
title I, title II, or such Public Law, respectively.
[(b) Application.--
[(1) In general.--The Secretary may provide a grant
to a State under subsection (a) only if the State
submits an application to the Secretary for the grant
that meets the requirements of paragraph (2).
[(2) Requirements.--The Secretary may review an
application described in paragraph (1) only to ensure
that the application contains the following assurances:
[(A) The legislature of the State was
consulted with respect to the development of
the application.
[(B) The application was approved by the
Governor, the eligible agency (as defined in
section 203), and the State agency responsible
for programs established under Public Law 105-
332 (20 U.S.C. 2301 et seq.).
[(C) The State and the eligible agency, as
appropriate, exceeded the State adjusted levels
of performance for title I, the expected levels
of performance for title II, and the levels of
performance for programs under Public Law 105-
332 (20 U.S.C. 2301 et seq.).
[(c) Amount.--
[(1) Minimum and maximum grant amounts.--Subject to
paragraph (2), a grant provided to a State under
subsection (a) shall be awarded in an amount that is
not less than $750,000 and not more than $3,000,000.
[(2) Proportionate reduction.--If the amount
available for grants under this section for a fiscal
year is insufficient to award a grant to each State or
eligible agency that is eligible for a grant, the
Secretary shall reduce the minimum and maximum grant
amount by a uniform percentage.
[(d) Notwithstanding any other provision of this section, for
fiscal year 2000, the Secretary shall not consider the expected
levels of performance under Public Law 105-332 (20 U.S.C. 2301
et seq.) and shall not award a grant under subsection (a) based
on the levels of performance for that Act.]
* * * * * * *
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WAGNER-PEYSER ACT
[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'' has the same
meaning given that term under the Workforce Investment
Act of 1998;
[(2) the term ``local workforce investment board''
means a local workforce investment board established
under section 117 of the Workforce Investment Act of
1998;
[(3) the term ``one-stop delivery system'' means a
one-stop delivery system described in section 134(c) of
the Workforce Investment Act of 1998;
[(4) the term ``Secretary'' means the Secretary of
Labor; 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 Secretary 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 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
program funded under part A of title IV of the Social Security
Act, 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, or of a State agency charged with
the administration of the food stamp program in a State under
the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), 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.
[(c) The Secretary shall--
[(1) assist in the coordination and development of a
nationwide system of public labor exchange services,
provided as part of the one-stop customer service
systems of the States;
[(2) assist in the development of continuous
improvement models for such nationwide system that
ensure private sector satisfaction with the system and
meet the demands of jobseekers relating to the system;
and
[(3) ensure, for individuals otherwise eligible to
receive unemployment compensation, the provision of
reemployment services and other activities in which the
individuals are required to participate to receive the
compensation.
[Sec. 4. In order to obtain the benefits of appropriations
apportioned under section 5, a State shall, 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 Secretary under this Act.
[Sec. 5. (a) There is authorized to be appropriated, out of
any money in the Treasury not otherwise appropriated, such
amounts from time to time as the Congress may deem necessary to
carry out the purposes of this Act.
[(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.
[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.
[(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 local workforce investment
board 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)(1) Funds made available to States under this section 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 Act;
[(C) such program provides services in a coordinated
manner with services provided under this Act; 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 workforce investment activity carried out
under the Workforce Investment Act of 1998.
[(d) In addition to the services and activities otherwise
authorized by this Act, the Secretary 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 or
with any Federal, State, or local public agency, or
administrative entity under the Workforce Investment Act of
1998, or private nonprofit organization.
[(e) All job search, placement, recruitment, labor employment
statistics, and other labor exchange services authorized under
subsection (a) shall be provided, consistent with the other
requirements of this Act, as part of the one-stop delivery
system established by the State.
[Sec. 8. (a) Any State desiring to receive assistance under
this Act shall submit to the Secretary, as part of the State
plan submitted under section 112 of the Workforce Investment
Act of 1998, detailed plans for carrying out the provisions of
this Act within such State.
[(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.
[(c) The part of the State plan described in subsection (a)
shall include the information described in paragraphs (8) and
(14) of section 112(b) of the Workforce Investment Act of 1998.
[(d) If such detailed 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. 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.
[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.
[Sec. 11. In carrying out the provisions of this Act the
Secretary 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 Secretary is hereby authorized to make such
rules and regulations as may be necessary to carry out the
provisions of this Act.
[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)(1) 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.
[(2) No funds paid under this Act may be used by any State
for advertising in newspapers for high paying jobs unless such
State submits an annual report to the Secretary beginning in
December 1984 concerning such advertising and the
justifications therefor, and the justification may include that
such jobs are part of a State industrial development effort.]
Sec. 14. There are authorized to be appropriated such sums as
may be necessary to enable the Secretary of Labor to provide
funds through reimbursable agreements with the States to
operate statistical programs which are essential for
development of estimates of the gross national product and
other national statistical series, including those related to
employment and unemployment.
[SEC. 15. EMPLOYMENT STATISTICS.
[(a) System Content.--
[(1) In general.--The Secretary, in accordance with
the provisions of this section, shall oversee the
development, maintenance, and continuous improvement of
a nationwide employment statistics system of employment
statistics that includes--
[(A) statistical data from cooperative
statistical survey and projection programs and
data from administrative reporting systems
that, taken together, enumerate, estimate, and
project employment opportunities and conditions
at national, State, and local levels in a
timely manner, including statistics on--
[(i) employment and unemployment
status of national, State, and local
populations, including self-employed,
part-time, and seasonal workers;
[(ii) industrial distribution of
occupations, as well as current and
projected employment opportunities,
wages, benefits (where data is
available), and skill trends by
occupation and industry, with
particular attention paid to State and
local conditions;
[(iii) the incidence of, industrial
and geographical location of, and
number of workers displaced by,
permanent layoffs and plant closings;
and
[(iv) employment and earnings
information maintained in a
longitudinal manner to be used for
research and program evaluation;
[(B) information on State and local
employment opportunities, and other appropriate
statistical data related to labor market
dynamics, which--
[(i) shall be current and
comprehensive;
[(ii) shall meet the needs identified
through the consultations described in
subparagraphs (A) and (B) of subsection
(e)(2); and
[(iii) shall meet the needs for the
information identified in section
134(d);
[(C) technical standards (which the Secretary
shall publish annually) for data and
information described in subparagraphs (A) and
(B) that, at a minimum, meet the criteria of
chapter 35 of title 44, United States Code;
[(D) procedures to ensure compatibility and
additivity of the data and information
described in subparagraphs (A) and (B) from
national, State, and local levels;
[(E) procedures to support standardization
and aggregation of data from administrative
reporting systems described in subparagraph (A)
of employment-related programs;
[(F) analysis of data and information
described in subparagraphs (A) and (B) for uses
such as--
[(i) national, State, and local
policymaking;
[(ii) implementation of Federal
policies (including allocation
formulas);
[(iii) program planning and
evaluation; and
[(iv) researching labor market
dynamics;
[(G) wide dissemination of such data,
information, and analysis in a user-friendly
manner and voluntary technical standards for
dissemination mechanisms; and
[(H) programs of--
[(i) training for effective data
dissemination;
[(ii) research and demonstration; and
[(iii) programs and technical
assistance.
[(2) Information to be confidential.--
[(A) In general.--No officer or employee of
the Federal Government or agent of the Federal
Government may--
[(i) use any submission that is
furnished for exclusively statistical
purposes under the provisions of this
section for any purpose other than the
statistical purposes for which the
submission is furnished;
[(ii) make any publication or media
transmittal of the data contained in
the submission described in clause (i)
that permits information concerning
individual subjects to be reasonably
inferred by either direct or indirect
means; or
[(iii) permit anyone other than a
sworn officer, employee, or agent of
any Federal department or agency, or a
contractor (including an employee of a
contractor) of such department or
agency, to examine an individual
submission described in clause (i);
without the consent of the individual, agency,
or other person who is the subject of the
submission or provides that submission.
[(B) Immunity from legal process.--Any
submission (including any data derived from the
submission) that is collected and retained by a
Federal department or agency, or an officer,
employee, agent, or contractor of such a
department or agency, for exclusively
statistical purposes under this section shall
be immune from the legal process and shall not,
without the consent of the individual, agency,
or other person who is the subject of the
submission or provides that submission, be
admitted as evidence or used for any purpose in
any action, suit, or other judicial or
administrative proceeding.
[(C) Rule of construction.--Nothing in this
section shall be construed to provide immunity
from the legal process for such submission
(including any data derived from the
submission) if the submission is in the
possession of any person, agency, or entity
other than the Federal Government or an
officer, employee, agent, or contractor of the
Federal Government, or if the submission is
independently collected, retained, or produced
for purposes other than the purposes of this
Act.
[(b) System Responsibilities.--
[(1) In general.--The employment statistics system
described in subsection (a) shall be planned,
administered, overseen, and evaluated through a
cooperative governance structure involving the Federal
Government and States.
[(2) Duties.--The Secretary, with respect to data
collection, analysis, and dissemination of labor
employment statistics for the system, shall carry out
the following duties:
[(A) Assign responsibilities within the
Department of Labor for elements of the
employment statistics system described in
subsection (a) to ensure that all statistical
and administrative data collected is consistent
with appropriate Bureau of Labor Statistics
standards and definitions.
[(B) Actively seek the cooperation of other
Federal agencies to establish and maintain
mechanisms for ensuring complementarity and
nonduplication in the development and operation
of statistical and administrative data
collection activities.
[(C) Eliminate gaps and duplication in
statistical undertakings, with the
systemization of wage surveys as an early
priority.
[(D) In collaboration with the Bureau of
Labor Statistics and States, develop and
maintain the elements of the employment
statistics system described in subsection (a),
including the development of consistent
procedures and definitions for use by the
States in collecting the data and information
described in subparagraphs (A) and (B) of
subsection (a)(1).
[(E) Establish procedures for the system to
ensure that--
[(i) such data and information are
timely;
[(ii) paperwork and reporting for the
system are reduced to a minimum; and
[(iii) States and localities are
fully involved in the development and
continuous improvement of the system at
all levels, including ensuring the
provision, to such States and
localities, of budget information
necessary for carrying out their
responsibilities under subsection (e).
[(c) Annual Plan.--The Secretary, working through the Bureau
of Labor Statistics, and in cooperation with the States, and
with the assistance of other appropriate Federal agencies,
shall prepare an annual plan which shall be the mechanism for
achieving cooperative management of the nationwide employment
statistics system described in subsection (a) and the statewide
employment statistics systems that comprise the nationwide
system. The plan shall--
[(1) describe the steps the Secretary has taken in
the preceding year and will take in the following 5
years to carry out the duties described in subsection
(b)(2);
[(2) include a report on the results of an annual
consumer satisfaction review concerning the performance
of the system, including the performance of the system
in addressing the needs of Congress, States,
localities, employers, jobseekers, and other consumers;
[(3) evaluate the performance of the system and
recommend needed improvements, taking into
consideration the results of the consumer satisfaction
review, with particular attention to the improvements
needed at the State and local levels;
[(4) justify the budget request for annual
appropriations by describing priorities for the fiscal
year succeeding the fiscal year in which the plan is
developed and priorities for the 5 subsequent fiscal
years for the system;
[(5) describe current (as of the date of the
submission of the plan) spending and spending needs to
carry out activities under this section, including the
costs to States and localities of meeting the
requirements of subsection (e)(2); and
[(6) describe the involvement of States in the
development of the plan, through formal consultations
conducted by the Secretary in cooperation with
representatives of the Governors of every State, and
with representatives of local workforce investment
boards, pursuant to a process established by the
Secretary in cooperation with the States.
[(d) Coordination With the States.--The Secretary, working
through the Bureau of Labor Statistics, and in cooperation with
the States, shall--
[(1) develop the annual plan described in subsection
(c) and address other employment statistics issues by
holding formal consultations, at least once each
quarter (beginning with the calendar quarter in which
the Workforce Investment Act of 1998 is enacted) on the
products and administration of the nationwide
employment statistics system; and
[(2) hold the consultations with representatives from
each of the 10 Federal regions of the Department of
Labor, elected (pursuant to a process established by
the Secretary) by and from the State employment
statistics directors affiliated with the State agencies
that perform the duties described in subsection (e)(2).
[(e) State Responsibilities.--
[(1) Designation of state agency.--In order to
receive Federal financial assistance under this
section, the Governor of a State shall--
[(A) designate a single State agency to be
responsible for the management of the portions
of the employment statistics system described
in subsection (a) that comprise a statewide
employment statistics system and for the
State's participation in the development of the
annual plan; and
[(B) establish a process for the oversight of
such system.
[(2) Duties.--In order to receive Federal financial
assistance under this section, the State agency shall--
[(A) consult with State and local employers,
participants, and local workforce investment
boards about the labor market relevance of the
data to be collected and disseminated through
the statewide employment statistics system;
[(B) consult with State educational agencies
and local educational agencies concerning the
provision of employment statistics in order to
meet the needs of secondary school and
postsecondary school students who seek such
information;
[(C) collect and disseminate for the system,
on behalf of the State and localities in the
State, the information and data described in
subparagraphs (A) and (B) of subsection (a)(1);
[(D) maintain and continuously improve the
statewide employment statistics system in
accordance with this section;
[(E) perform contract and grant
responsibilities for data collection, analysis,
and dissemination for such system;
[(F) conduct such other data collection,
analysis, and dissemination activities as will
ensure an effective statewide employment
statistics system;
[(G) actively seek the participation of other
State and local agencies in data collection,
analysis, and dissemination activities in order
to ensure complementarity, compatibility, and
usefulness of data;
[(H) participate in the development of the
annual plan described in subsection (c); and
[(I) utilize the quarterly records described
in section 136(f )(2) of the Workforce
Investment Act of 1998 to assist the State and
other States in measuring State progress on
State performance measures.
[(3) Rule of construction.--Nothing in this section
shall be construed as limiting the ability of a State
agency to conduct additional data collection, analysis,
and dissemination activities with State funds or with
Federal funds from sources other than this section.
[(f) Nonduplication Requirement.--None of the functions and
activities carried out pursuant to this section shall duplicate
the functions and activities carried out under the Carl D.
Perkins Vocational and Applied Technology Education Act (20
U.S.C. 2301 et seq.).
[(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for each of the fiscal years 1999 through 2004.
[(h) Definition.--In this section, the term ``local area''
means the smallest geographical area for which data can be
produced with statistical reliability.]
SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.
(a) System Content.--
(1) In general.--The Secretary of Labor, in
accordance with the provisions of this section, shall
oversee the development, maintenance, and continuous
improvement of a nationwide workforce and labor market
information system that includes--
(A) statistical data from cooperative
statistical survey and projection programs and
data from administrative reporting systems
that, taken together, enumerate, estimate, and
project employment opportunities and conditions
at national, State, and local levels in a
timely manner, including statistics on--
(i) employment and unemployment
status of national, State, and local
populations, including self-employed,
part-time, and seasonal workers;
(ii) industrial distribution of
occupations, as well as current and
projected employment opportunities,
wages, benefits (where data is
available), and skill trends by
occupation and industry, with
particular attention paid to State and
local conditions;
(iii) the incidence of, industrial
and geographical location of, and
number of workers displaced by,
permanent layoffs and plant closings;
and
(iv) employment and earnings
information maintained in a
longitudinal manner to be used for
research and program evaluation;
(B) information on State and local employment
opportunities, and other appropriate
statistical data related to labor market
dynamics, which--
(i) shall be current and
comprehensive;
(ii) shall meet the needs identified
through the consultations described in
subparagraphs (A) and (B) of subsection
(e)(2); and
(iii) shall meet the needs for the
information identified in section
134(d);
(C) technical standards (which the Secretary
shall publish annually) for data and
information described in subparagraphs (A) and
(B) that, at a minimum, meet the criteria of
chapter 35 of title 44, United States Code;
(D) procedures to ensure compatibility and
additivity of the data and information
described in subparagraphs (A) and (B) from
national, State, and local levels;
(E) procedures to support standardization and
aggregation of data from administrative
reporting systems described in subparagraph (A)
of employment-related programs;
(F) analysis of data and information
described in subparagraphs (A) and (B) for uses
such as--
(i) national, State, and local
policymaking;
(ii) implementation of Federal
policies (including allocation
formulas);
(iii) program planning and
evaluation; and
(iv) researching labor market
dynamics;
(G) wide dissemination of such data,
information, and analysis in a user-friendly
manner and voluntary technical standards for
dissemination mechanisms; and
(H) programs of--
(i) training for effective data
dissemination;
(ii) research and demonstration; and
(iii) programs and technical
assistance.
(2) Information to be confidential.--
(A) In general.--No officer or employee of
the Federal Government or agent of the Federal
Government may--
(i) use any submission that is
furnished for exclusively statistical
purposes under the provisions of this
section for any purpose other than the
statistical purposes for which the
submission is furnished;
(ii) make any publication or media
transmittal of the data contained in
the submission described in clause (i)
that permits information concerning
individual subjects to be reasonably
inferred by either direct or indirect
means; or
(iii) permit anyone other than a
sworn officer, employee, or agent of
any Federal department or agency, or a
contractor (including an employee of a
contractor) of such department or
agency, to examine an individual
submission described in clause (i);
without the consent of the individual, agency,
or other person who is the subject of the
submission or provides that submission.
(B) Immunity from legal process.--Any
submission (including any data derived from the
submission) that is collected and retained by a
Federal department or agency, or an officer,
employee, agent, or contractor of such a
department or agency, for exclusively
statistical purposes under this section shall
be immune from the legal process and shall not,
without the consent of the individual, agency,
or other person who is the subject of the
submission or provides that submission, be
admitted as evidence or used for any purpose in
any action, suit, or other judicial or
administrative proceeding.
(C) Rule of construction.--Nothing in this
section shall be construed to provide immunity
from the legal process for such submission
(including any data derived from the
submission) if the submission is in the
possession of any person, agency, or entity
other than the Federal Government or an
officer, employee, agent, or contractor of the
Federal Government, or if the submission is
independently collected, retained, or produced
for purposes other than the purposes of this
Act.
(b) System Responsibilities.--
(1) In general.--The workforce and labor market
information system described in subsection (a) shall be
planned, administered, overseen, and evaluated through
a cooperative governance structure involving the
Federal Government and States.
(2) Duties.--The Secretary, with respect to data
collection, analysis, and dissemination of labor
employment statistics for the system, shall carry out
the following duties:
(A) Assign responsibilities within the
Department of Labor for elements of the
workforce and labor market information system
described in subsection (a) to ensure that all
statistical and administrative data collected
is consistent with appropriate Bureau of Labor
Statistics standards and definitions.
(B) Actively seek the cooperation of other
Federal agencies to establish and maintain
mechanisms for ensuring complementarity and
nonduplication in the development and operation
of statistical and administrative data
collection activities.
(C) Eliminate gaps and duplication in
statistical undertakings, with the
systemization of wage surveys as an early
priority.
(D) In collaboration with the Bureau of Labor
Statistics and States, develop and maintain the
elements of the workforce and labor market
information system described in subsection (a),
including the development of consistent
procedures and definitions for use by the
States in collecting the data and information
described in subparagraphs (A) and (B) of
subsection (a)(1).
(E) Establish procedures for the system to
ensure that--
(i) such data and information are
timely;
(ii) paperwork and reporting for the
system are reduced to a minimum; and
(iii) States and localities are fully
involved in the development and
continuous improvement of the system at
all levels, including ensuring the
provision, to such States and
localities, of budget information
necessary for carrying out their
responsibilities under subsection (e).
(c) National Electronic Tools to Provide Services.--The
Secretary is authorized to assist in the development of
national electronic tools that may be used to facilitate the
delivery of core services described in section 134 and to
provide workforce information to individuals through the one-
stop delivery systems descried in section 121 and through other
appropriate delivery systems.
(d) Coordination With the States.--
(1) In general.--The Secretary, working through the
Bureau of Labor Statistics and the Employment and
Training Administration, shall regularly consult with
representatives of State agencies carrying out
workforce information activities regarding strategies
for improving the workforce and labor market
information system.
(2) Formal consultations.--At least twice each year,
the Secretary, working through the Bureau of Labor
Statistics, shall conduct formal consultations
regarding programs carried out by the Bureau of Labor
Statistics with representatives of each of the 10
Federal regions of the Department of Labor, elected
from the State directors affiliated with State agencies
that perform the duties described in subsection (e)(2).
(e) State Responsibilities.--
(1) Designation of state agency.--In order to receive
Federal financial assistance under this section, the
Governor of a State shall--
(A) designate a single State agency to be
responsible for the management of the portions
of the workforce and labor market information
system described in subsection (a) that
comprise a statewide workforce and labor market
information system and for the State's
participation in the development of the annual
plan; and
(B) establish a process for the oversight of
such system.
(2) Duties.--In order to receive Federal financial
assistance under this section, the State agency shall--
(A) consult with State and local employers,
participants, and local workforce investment
boards about the labor market relevance of the
data to be collected and disseminated through
the statewide workforce and labor market
information system;
(B) consult with State educational agencies
and local educational agencies concerning the
provision of employment statistics in order to
meet the needs of secondary school and
postsecondary school students who seek such
information;
(C) collect and disseminate for the system,
on behalf of the State and localities in the
State, the information and data described in
subparagraphs (A) and (B) of subsection (a)(1);
(D) maintain and continuously improve the
statewide workforce and labor market
information system in accordance with this
section;
(E) perform contract and grant
responsibilities for data collection, analysis,
and dissemination for such system;
(F) conduct such other data collection,
analysis, and dissemination activities as will
ensure an effective statewide workforce and
labor market information system;
(G) actively seek the participation of other
State and local agencies in data collection,
analysis, and dissemination activities in order
to ensure complementarity, compatibility, and
usefulness of data;
(H) participate in the development of the
annual plan described in subsection (c); and
(I) utilize the quarterly records described
in section 136(f )(2) of the Workforce
Investment Act of 1998 to assist the State and
other States in measuring State progress on
State performance measures.
(3) Rule of construction.--Nothing in this section
shall be construed as limiting the ability of a State
agency to conduct additional data collection, analysis,
and dissemination activities with State funds or with
Federal funds from sources other than this section.
(f) Nonduplication Requirement.--None of the functions and
activities carried out pursuant to this section shall duplicate
the functions and activities carried out under the Carl D.
Perkins Vocational and Applied Technology Education Act (20
U.S.C. 2301 et seq.).
(g) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section such sums as may be
necessary for each of the fiscal years 2004 through 2009.
(h) Definition.--In this section, the term ``local area''
means the smallest geographical area for which data can be
produced with statistical reliability.
* * * * * * *
----------
REHABILITATION ACT OF 1973
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the
``Rehabilitation Act of 1973''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title; table of contents.
TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING
Chapter 1--Individuals With Significant Disabilities
Part A--General Provisions
Sec. 701. Purpose.
* * * * * * *
Sec. 706. Responsibilities of the [Commissioner] Director.
* * * * * * *
REHABILITATION SERVICES ADMINISTRATION
Sec. 3. (a) There is established in the [Office of the
Secretary] Department of Education a Rehabilitation Services
Administration which shall be headed by a [Commissioner]
Director (hereinafter in this Act referred to as the
``[Commissioner] Director'') appointed by the [President by and
with the advice and consent of the Senate] Secretary, except
that the current Commissioner appointed under the authority
existing on the day prior to the date of enactment of this Act
may continue to serve in the former capacity. Except for titles
IV and V and as otherwise specifically provided in this Act,
such Administration shall be the principal agency[, and the
Commissioner shall be the principal officer,] of such
Department for carrying out this Act. The [Commissioner]
Director shall be an individual with substantial experience in
rehabilitation and in rehabilitation program management. In the
performance of the functions of the office, the [Commissioner]
Director shall be directly responsible to the Secretary or to
the Under Secretary or an appropriate Assistant Secretary of
such Department, as designated by the Secretary. The functions
of the [Commissioner] Director shall not be delegated to any
officer not directly responsible, both with respect to program
operation and administration, to the [Commissioner] Director.
Any reference in this Act to duties to be carried out by the
[Commissioner] Director shall be considered to be a reference
to duties to be carried out by the Secretary acting through the
[Commissioner] Director. In carrying out any of the functions
of the office under this Act, the [Commissioner] Director shall
be guided by general policies of the National Council on
Disability established under title IV of this Act.
* * * * * * *
SEC. 7. DEFINITIONS.
For the purposes of this Act:
(1) * * *
* * * * * * *
(12) Establishment of a community rehabilitation
program.--The term ``establishment of a community
rehabilitation program'' includes the acquisition,
expansion, remodeling, or alteration of existing
buildings necessary to adapt them to community
rehabilitation program purposes or to increase their
effectiveness for such purposes (subject, however, to
such limitations as the Secretary may determine, in
accordance with regulations the Secretary shall
prescribe, in order to prevent impairment of the
objectives of, or duplication of, other Federal laws
providing Federal assistance in the construction of
facilities for community rehabilitation programs), and
may include such additional equipment and staffing as
the [Commissioner] Director considers appropriate.
* * * * * * *
ADMINISTRATION OF THE ACT
Sec. 12. (a) In carrying out the purposes of this Act, the
[Commissioner] Director may--
(1) * * *
* * * * * * *
(b)(1) In carrying out the duties under this Act, the
[Commissioner] Director may utilize the services and facilities
of any agency of the Federal Government and of any other public
or nonprofit agency or organization, in accordance with
agreements between the [Commissioner] Director and the head
thereof, and may pay therefor, in advance or by way of
reimbursement, as may be provided in the agreement.
(2) In carrying out the provisions of this Act, the
[Commissioner] Director shall appoint such task forces as may
be necessary to collect and disseminate information in order to
improve the ability of the [Commissioner] Director to carry out
the provisions of this Act.
(c) The [Commissioner] Director may promulgate such
regulations as are considered appropriate to carry out the
[Commissioner] Director's duties under this Act.
* * * * * * *
REPORTS
Sec. 13. (a) Not later than one hundred and eighty days after
the close of each fiscal year, the [Commissioner] Director
shall prepare and submit to the President and to the Congress a
full and complete report on the activities carried out under
this Act, including the activities and staffing of the
information clearinghouse under section 15.
(b) The [Commissioner] Director shall collect information to
determine whether the purposes of this Act are being met and to
assess the performance of programs carried out under this Act.
The [Commissioner] Director shall take whatever action is
necessary to assure that the identity of each individual for
which information is supplied under this section is kept
confidential, except as otherwise required by law (including
regulation).
(c) In preparing the report, the [Commissioner] Director
shall annually collect and include in the report information
based on the information submitted by States in accordance with
section 101(a)(10), including information on administrative
costs as required by section 101(a)(10)(D). The [Commissioner]
Director shall, to the maximum extent appropriate, include in
the report all information that is required to be submitted in
the reports described in section 136(d) of the Workforce
Investment Act of 1998 and that pertains to the employment of
individuals with disabilities.
EVALUATION
Sec. 14. (a) For the purpose of improving program management
and effectiveness, the Secretary, in consultation with the
[Commissioner] Director, shall evaluate all the programs
authorized by this Act, their general effectiveness in relation
to their cost, their impact on related programs, and their
structure and mechanisms for delivery of services, using
appropriate methodology and evaluative research designs. The
Secretary shall establish and use standards for the evaluations
required by this subsection. Such an evaluation shall be
conducted by a person not immediately involved in the
administration of the program evaluated.
* * * * * * *
(f)(1) The [Commissioner] Director shall identify and
disseminate information on exemplary practices concerning
vocational rehabilitation.
(2) To facilitate compliance with paragraph (1), the
[Commissioner] Director shall conduct studies and analyses that
identify exemplary practices concerning vocational
rehabilitation, including studies in areas relating to
providing informed choice in the rehabilitation process,
promoting consumer satisfaction, promoting job placement and
retention, providing supported employment, providing services
to particular disability populations, financing personal
assistance services, providing assistive technology devices and
assistive technology services, entering into cooperative
agreements, establishing standards and certification for
community rehabilitation programs, converting from
nonintegrated to integrated employment, and providing caseload
management.
INFORMATION CLEARINGHOUSE
Sec. 15. (a) * * *
(b) The [Commissioner] Director may assist the Secretary to
develop within the Department of Education a coordinated system
of information and data retrieval, which will have the capacity
and responsibility to provide information regarding the
information and data referred to in subsection (a) of this
section to the Congress, public and private agencies and
organizations, individuals with disabilities and their
families, professionals in fields serving such individuals, and
the general public.
* * * * * * *
SEC. 21. TRADITIONALLY UNDERSERVED POPULATIONS.
(a) * * *
(b) Outreach to Minorities.--
(1) In general.--For each fiscal year, the
[Commissioner] Director of the Rehabilitation Services
Administration and the Director of the National
Institute on Disability and Rehabilitation Research
[(referred to in this subsection as the ``Director'')]
shall reserve 1 percent of the funds appropriated for
the fiscal year for programs authorized under titles
II, III, VI, and VII to carry out this subsection. The
[Commissioner] both such Directors and the Director
shall use the reserved funds to carry out one or more
of the activities described in paragraph (2) through a
grant, contract, or cooperative agreement.
(2) Activities.--The activities carried out by the
[Commissioner] both such Directors and the Director
shall include one or more of the following:
(A) * * *
* * * * * * *
(4) Report.--In each fiscal year, the [Commissioner]
both such Directors and the Director shall prepare and
submit to Congress a report that describes the
activities funded under this subsection for the
preceding fiscal year.
(c) Demonstration.--In awarding grants, or entering into
contracts or cooperative agreements under titles I, II, III,
VI, and VII, and section 509, the [Commissioner] both such
Directors and the Director, in appropriate cases, shall require
applicants to demonstrate how the applicants will address, in
whole or in part, the needs of individuals with disabilities
from minority backgrounds.
TITLE I--VOCATIONAL REHABILITATION SERVICES
PART A--GENERAL PROVISIONS
SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS.
(a) * * *
(b) Authorization of Appropriations.--
(1) In general.--For the purpose of making grants to
States under part B to assist States in meeting the
costs of vocational rehabilitation services provided in
accordance with State plans under section 101, there
are authorized to be appropriated such sums as may be
necessary for [fiscal years 1999 through 2003] fiscal
years 2004 through 2009, except that the amount to be
appropriated for a fiscal year shall not be less than
the amount of the appropriation under this paragraph
for the immediately preceding fiscal year, increased by
the percentage change in the Consumer Price Index
determined under subsection (c) for the immediately
preceding fiscal year.
* * * * * * *
(d) Extension.--
(1) In general.--
(A) * * *
(B) Calculation.--The amount authorized to be
appropriated for the additional fiscal year
described in subparagraph (A) shall be an
amount equal to the amount appropriated for
such program for fiscal year [2003] 2009,
increased by the percentage change in the
Consumer Price Index determined under
subsection (c) for the immediately preceding
fiscal year, if the percentage change indicates
an increase.
(2) Construction.--
(A) * * *
(B) Acts or determinations of commissioner.--
In any case where the [Commissioner] Director
is required under an applicable statute to
carry out certain acts or make certain
determinations which are necessary for the
continuation of the program authorized by this
title, if such acts or determinations are
required during the terminal year of such
program, such acts and determinations shall be
required during any fiscal year in which the
extension described in that part of paragraph
(1) that follows clause (ii) of paragraph
(1)(A) is in effect.
SEC. 101. STATE PLANS.
(a) Plan Requirements.--
(1) In general.--
(A) Submission.--To be eligible to
participate in programs under this title, a
State shall submit to the [Commissioner]
Director a State plan for vocational
rehabilitation services that meets the
requirements of this section, on the same date
that the State submits a State plan under
section 112 of the Workforce Investment Act of
1998.
(B) Nonduplication.--The State shall not be
required to submit, in the State plan for
vocational rehabilitation services, policies,
procedures, or descriptions required under this
title that have been previously submitted to
the [Commissioner] Director and that
demonstrate that such State meets the
requirements of this title, including any
policies, procedures, or descriptions submitted
under this title as in effect on the day before
the effective date of the Rehabilitation Act
Amendments of 1998.
(C) Duration.--The State plan shall remain in
effect subject to the submission of such
modifications as the State determines to be
necessary or as the [Commissioner] Director may
require based on a change in State policy, a
change in Federal law (including regulations),
an interpretation of this Act by a Federal
court or the highest court of the State, or a
finding by the [Commissioner] Director of State
noncompliance with the requirements of this
Act, until the State submits and receives
approval of a new State plan.
(2) Designated state agency; designated state unit.--
(A) Designated state agency.--The State plan
shall designate a State agency as the sole
State agency to administer the plan, or to
supervise the administration of the plan by a
local agency, except that--
(i) * * *
(ii) the [Commissioner] Director, on
the request of a State, may authorize
the designated State agency to share
funding and administrative
responsibility with another agency of
the State or with a local agency in
order to permit the agencies to carry
out a joint program to provide services
to individuals with disabilities, and
may waive compliance, with respect to
vocational rehabilitation services
furnished under the joint program, with
the requirement of paragraph (4) that
the plan be in effect in all political
subdivisions of the State; and
* * * * * * *
(4) Statewideness.--The State plan shall provide that
the plan shall be in effect in all political
subdivisions of the State, except that--
(A) in the case of any activity that, in the
judgment of the [Commissioner] Director, 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] Director may waive compliance
with the requirement that the plan be in effect
in all political subdivisions of the State to
the extent and for such period as may be
provided in accordance with regulations
prescribed by the [Commissioner] Director, but
only if the non-Federal share of the cost of
the vocational rehabilitation services involved
is met from funds made available by a local
agency (including funds contributed to such
agency by a private agency, organization, or
individual); and
(B) in a case in which earmarked funds are
used toward the non-Federal share and such
funds are earmarked for particular geographic
areas within the State, the earmarked funds may
be used in such areas if the State notifies the
[Commissioner] Director that the State cannot
provide the full non-Federal share without such
funds.
* * * * * * *
(6) Methods for administration.--
(A) In general.--The State plan shall provide
for such methods of administration as are found
by the [Commissioner] Director to be necessary
for the proper and efficient administration of
the plan.
* * * * * * *
(10) Reporting requirements.--
(A) In general.--The State plan shall include
an assurance that the designated State agency
will submit reports in the form and level of
detail and at the time required by the
[Commissioner] Director regarding applicants
for, and eligible individuals receiving,
services under this title.
(B) Annual reporting.--In specifying the
information to be submitted in the reports, the
[Commissioner] Director shall require annual
reporting on the eligible individuals receiving
the services, on those specific data elements
described in section 136(d)(2) of the Workforce
Investment Act of 1998 that are determined by
the Secretary to be relevant in assessing the
performance of designated State units in
carrying out the vocational rehabilitation
program established under this title.
(C) Additional data.--In specifying the
information required to be submitted in the
reports, the [Commissioner] Director shall
require additional data with regard to
applicants and eligible individuals related
to--
(i) * * *
* * * * * * *
(iii) of those applicants and
eligible recipients who are individuals
with significant disabilities--
(I) * * *
* * * * * * *
(II) the number who ended
their participation in the
program and who were employed 6
months and 12 months after
securing or regaining
employment, or, in the case of
individuals whose employment
outcome was to retain or
advance in employment, who were
employed 6 months and 12 months
after achieving their
employment outcome, including--
(aa) the number who
earned the minimum wage
rate specified in
section 6(a)(1) of the
Fair Labor Standards
Act of 1938 (29 U.S.C.
206(a)(1)) or another
wage level set by the
[Commissioner]
Director, during such
employment; and
* * * * * * *
(D) Costs and results.--The [Commissioner]
Director shall also require that the designated
State agency include in the reports information
on--
(i) * * *
* * * * * * *
(E) Additional information.--The
[Commissioner] Director shall require that each
designated State unit include in the reports
additional information related to the
applicants and eligible individuals, obtained
either through a complete count or sampling,
including--
(i) * * *
* * * * * * *
(11) Cooperation, collaboration, and coordination.--
(A) * * *
* * * * * * *
(D) Coordination with education officials.--
The State plan shall contain plans, policies,
and procedures for coordination between the
designated State agency and education officials
responsible for the public education of
students with disabilities, that are designed
to facilitate the transition of the students
with disabilities from the receipt of
educational services in school to the receipt
of vocational rehabilitation services under
this title, including information on a formal
interagency agreement with the State
educational agency that, at a minimum, provides
for--
(i) consultation and technical
assistance to assist educational
agencies in planning for the transition
of students with disabilities from
school to post-school activities,
including vocational rehabilitation
services, which may be provided using
alternative means of meeting
participation (such as video
conferences and conference calls);
* * * * * * *
(15) Annual state goals and reports of progress.--
(A) Assessments and estimates.--The State
plan shall--
(i) * * *
(ii) include an assessment of the
transition services provided under this
Act, and coordinated with transition
services under the Individuals with
Disabilities Education Act, as to those
services meeting the needs of
individuals with disabilities.
[(ii)] (iii) include an assessment of
the need to establish, develop, or
improve community rehabilitation
programs within the State; and
[(iii)] (iv) provide that the State
shall submit to the [Commissioner]
Director a report containing
information regarding updates to the
assessments, for any year in which the
State updates the assessments.
(B) Annual estimates.--The State plan shall
include, and shall provide that the State shall
annually submit a report to the [Commissioner]
Director that includes, State estimates of--
(i) * * *
* * * * * * *
(C) Goals and priorities.--
(i) In general.--The State plan shall
identify the goals and priorities of
the State in carrying out the program.
The goals and priorities shall be
jointly developed, agreed to, and
reviewed annually by the designated
State unit and the State Rehabilitation
Council, if the State has such a
Council. Any revisions to the goals and
priorities shall be jointly agreed to
by the designated State unit and the
State Rehabilitation Council, if the
State has such a Council. The State
plan shall provide that the State shall
submit to the [Commissioner] Director a
report containing information regarding
revisions in the goals and priorities,
for any year in which the State revises
the goals and priorities.
* * * * * * *
(D) Strategies.--The State plan shall contain
a description of the strategies the State will
use to address the needs identified in the
assessment conducted under subparagraph (A) and
achieve the goals and priorities identified in
subparagraph (C), including--
[(i) the methods to be used to expand
and improve services to individuals
with disabilities, including how a
broad range of assistive technology
services and assistive technology
devices will be provided to such
individuals at each stage of the
rehabilitation process and how such
services and devices will be provided
to such individuals on a statewide
basis;]
(i) the methods to be used to expand
and improve the services to individuals
with disabilities including--
(I) how a broad range of
assistive technology services
and assistive technology
devices will be provided to
such individuals at each stage
of the rehabilitative process
and how such services and
devices will be provided to
such individuals on a statewide
basis; and
(II) how transition services
will be better coordinated with
those services under the
Individuals with Disabilities
Education Act in order to
improve transition services for
individuals with disabilities
served under this Act;
* * * * * * *
(E) Evaluation and reports of progress.--The
State plan shall--
(i) include the results of an
evaluation of the effectiveness of the
vocational rehabilitation program, and
a joint report by the designated State
unit and the State Rehabilitation
Council, if the State has such a
Council, to the [Commissioner] Director
on the progress made in improving the
effectiveness from the previous year,
which evaluation and report shall
include--
(I) * * *
* * * * * * *
(ii) provide that the designated
State unit and the State Rehabilitation
Council, if the State has such a
Council, shall jointly submit to the
[Commissioner] Director an annual
report that contains the information
described in clause (i).
* * * * * * *
(17) Use of funds for construction of facilities.--
The State plan shall provide that if, under special
circumstances, the State plan includes provisions for
the construction of facilities for community
rehabilitation programs--
(A) * * *
* * * * * * *
(C) there shall be compliance with
regulations the [Commissioner] Director 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 the
plan includes such provisions for construction.
(18) Innovation and expansion activities.--The State
plan shall--
(A) * * *
* * * * * * *
(C) provide that the State shall submit to
the [Commissioner] Director an annual report
containing a description of how the reserved
funds were utilized during the preceding year.
* * * * * * *
(23) Annual updates.--The plan shall include an
assurance that the State will submit to the
[Commissioner] Director reports containing annual
updates of the information required under paragraph (7)
(relating to a comprehensive system of personnel
development) and any other updates of the information
required under this section that are requested by the
[Commissioner] Director, and annual reports as provided
in paragraphs (15) (relating to assessments, estimates,
goals and priorities, and reports of progress) and (18)
(relating to innovation and expansion), at such time
and in such manner as the Secretary may determine to be
appropriate.
(b) Approval; Disapproval of the State Plan.--
(1) Approval.--The [Commissioner] Director shall
approve any plan that the [Commissioner] Director finds
fulfills the conditions specified in this section, and
shall disapprove any plan that does not fulfill such
conditions.
(2) Disapproval.--Prior to disapproval of the State
plan, the [Commissioner] Director shall notify the
State of the intention to disapprove the plan and shall
afford the State reasonable notice and opportunity for
a hearing.
SEC. 102. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT.
(a) * * *
* * * * * * *
(c) Procedures.--
(1) * * *
* * * * * * *
(8) Information collection and report.--
(A) In general.--The Director of the
designated State unit shall collect information
described in subparagraph (B) and prepare and
submit to the [Commissioner] Director a report
containing such information. The [Commissioner]
Director shall prepare a summary of the
information furnished under this paragraph and
include the summary in the annual report
submitted under section 13. The [Commissioner]
Director shall also collect copies of the final
decisions of impartial hearing officers
conducting hearings under this subsection and
State officials conducting reviews under this
subsection.
* * * * * * *
(C) Confidentiality.--The confidentiality of
records of applicants and eligible individuals
maintained by the designated State unit shall
not preclude the access of the [Commissioner]
Director to those records for the purposes
described in subparagraph (A).
* * * * * * *
SEC. 104. NON-FEDERAL SHARE FOR ESTABLISHMENT OF PROGRAM OR
CONSTRUCTION.
For the purpose of determining the amount of payments to
States for carrying out part B (or to an Indian tribe under
part C), the non-Federal share, subject to such limitations and
conditions as may be prescribed in regulations by the
[Commissioner] Director, shall include contributions of funds
made by any private agency, organization, or individual to a
State or local agency to assist in meeting the costs of
establishment of a community rehabilitation program or
construction, under special circumstances, of a facility for
such a program, which would be regarded as State or local funds
except for the condition, imposed by the contributor, limiting
use of such funds to establishment of such a program or
construction of such a facility.
SEC. 105. STATE REHABILITATION COUNCIL.
(a) * * *
* * * * * * *
(c) Functions of Council.--The Council shall, after
consulting with the State workforce investment board--
(1) * * *
(2) in partnership with the designated State unit--
(A) * * *
(B) evaluate the effectiveness of the
vocational rehabilitation program and submit
reports of progress to the [Commissioner]
Director in accordance with section
101(a)(15)(E);
* * * * * * *
(5) prepare and submit an annual report to the
Governor and the [Commissioner] Director on the status
of vocational rehabilitation programs operated within
the State, and make the report available to the public;
* * * * * * *
SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.
(a) Establishment.--
(1) In general.--
(A) Establishment of standards and
indicators.--The [Commissioner] Director shall,
not later than July 1, 1999, establish and
publish evaluation standards and performance
indicators for the vocational rehabilitation
program carried out under this title.
(B) Review and revision.--Effective July 1,
1999, the [Commissioner] Director shall review
and, if necessary, revise the evaluation
standards and performance indicators every 3
years. Any revisions of the standards and
indicators shall be developed with input from
State vocational rehabilitation agencies,
related professional and consumer
organizations, recipients of vocational
rehabilitation services, and other interested
parties. Any revisions of the standards and
indicators shall be subject to the publication,
review, and comment provisions of paragraph
(3).
* * * * * * *
(3) Comment.--The standards and indicators shall be
developed with input from State vocational
rehabilitation agencies, related professional and
consumer organizations, recipients of vocational
rehabilitation services, and other interested parties.
The [Commissioner] Director shall publish in the
Federal Register a notice of intent to regulate
regarding the development of proposed standards and
indicators. Proposed standards and indicators shall be
published in the Federal Register for review and
comment. Final standards and indicators shall be
published in the Federal Register.
(b) Compliance.--
(1) State reports.--In accordance with regulations
established by the Secretary, each State shall report
to the [Commissioner] Director after the end of each
fiscal year the extent to which the State is in
compliance with the standards and indicators.
(2) Program improvement.--
(A) Plan.--If the [Commissioner] Director
determines that the performance of any State is
below established standards, the [Commissioner]
Director shall provide technical assistance to
the State, and the State and the [Commissioner]
Director shall jointly develop a program
improvement plan outlining the specific actions
to be taken by the State to improve program
performance.
(B) Review.--The [Commissioner] Director
shall--
(i) * * *
* * * * * * *
(c) Withholding.--If the [Commissioner] Director determines
that a State whose performance falls below the established
standards has failed to enter into a program improvement plan,
or is not complying substantially with the terms and conditions
of such a program improvement plan, the [Commissioner] Director
shall, consistent with subsections (c) and (d) of section 107,
reduce or make no further payments to the State under this
program, until the State has entered into an approved program
improvement plan, or satisfies the [Commissioner] Director that
the State is complying substantially with the terms and
conditions of such a program improvement plan, as appropriate.
(d) Report to Congress.--Beginning in fiscal year 1999, the
[Commissioner] Director shall include in each annual report to
the Congress under section 13 an analysis of program
performance, including relative State performance, based on the
standards and indicators.
SEC. 107. MONITORING AND REVIEW.
(a) In General.--
(1) Duties.--In carrying out the duties of the
[Commissioner] Director under this title, the
[Commissioner] Director shall--
(A) * * *
* * * * * * *
(2) Procedures for reviews.--In conducting reviews
under this section the [Commissioner] Director shall
consider, at a minimum--
(A) * * *
* * * * * * *
(3) Procedures for monitoring.--In conducting
monitoring under this section the [Commissioner]
Director shall conduct--
(A) * * *
* * * * * * *
(4) Areas of inquiry.--In conducting the review and
monitoring, the [Commissioner] Director shall examine--
(A) * * *
* * * * * * *
(D) such other areas of inquiry as the
[Commissioner] Director may consider
appropriate.
(5) Reports.--If the [Commissioner] Director issues a
report detailing the findings of an annual review or
onsite monitoring conducted under this section, the
report shall be made available to the State
Rehabilitation Council, if the State has such a
Council, for use in the development and modification of
the State plan described in section 101.
(b) Technical Assistance.--The [Commissioner] Director
shall--
(1) * * *
(2) provide technical assistance and establish a
corrective action plan for a program under this title
if the [Commissioner] Director finds that the program
fails to comply substantially with the provisions of
the State plan, or with evaluation standards or
performance indicators established under section 106,
in order to ensure that such failure is corrected as
soon as practicable.
(c) Failure To Comply With Plan.--
(1) Withholding payments.--Whenever the
[Commissioner] Director, after providing reasonable
notice and an opportunity for a hearing to the State
agency administering or supervising the administration
of the State plan approved under section 101, finds
that--
(A) * * *
* * * * * * *
the [Commissioner] Director shall notify such State
agency that no further payments will be made to the
State under this title (or, in the discretion of the
[Commissioner] Director, that such further payments
will be reduced, in accordance with regulations the
[Commissioner] Director shall prescribe, or that
further payments will not be made to the State only for
the projects under the parts of the State plan affected
by such failure), until the [Commissioner] Director is
satisfied there is no longer any such failure.
(2) Period.--Until the [Commissioner] Director is so
satisfied, the [Commissioner] Director shall make no
further payments to such State under this title (or
shall reduce payments or limit payments to projects
under those parts of the State plan in which there is
no such failure).
(3) Disbursal of withheld funds.--The [Commissioner]
Director may, in accordance with regulations the
Secretary shall prescribe, disburse any funds withheld
from a State under paragraph (1) to any public or
nonprofit private organization or agency within such
State or to any political subdivision of such State
submitting a plan meeting the requirements of section
101(a). The [Commissioner] Director may not make any
payment under this paragraph unless the entity to which
such payment is made has provided assurances to the
[Commissioner] Director that such entity will
contribute, for purposes of carrying out such plan, the
same amount as the State would have been obligated to
contribute if the State received such payment.
(d) Review.--
(1) Petition.--Any State that is dissatisfied with a
final determination of the [Commissioner] Director
under section 101(b) or subsection (c) may file a
petition for judicial review of such determination in
the United States Court of Appeals for the circuit in
which the State is located. Such a petition may be
filed only within the 30-day period beginning on the
date that notice of such final determination was
received by the State. The clerk of the court shall
transmit a copy of the petition to the [Commissioner]
Director or to any officer designated by the
[Commissioner] Director for that purpose. In accordance
with section 2112 of title 28, United States Code, the
[Commissioner] Director shall file with the court a
record of the proceeding on which the [Commissioner]
Director based the determination being appealed by the
State. Until a record is so filed, the [Commissioner]
Director may modify or set aside any determination made
under such proceedings.
(2) Submissions and determinations.--If, in an action
under this subsection to review a final determination
of the [Commissioner] Director under section 101(b) or
subsection (c), the petitioner or the [Commissioner]
Director applies to the court for leave to have
additional oral submissions or written presentations
made respecting such determination, the court may, for
good cause shown, order the [Commissioner] Director to
provide within 30 days an additional opportunity to
make such submissions and presentations. Within such
period, the [Commissioner] Director may revise any
findings of fact, modify or set aside the determination
being reviewed, or make a new determination by reason
of the additional submissions and presentations, and
shall file such modified or new determination, and any
revised findings of fact, with the return of such
submissions and presentations. The court shall
thereafter review such new or modified determination.
* * * * * * *
Part B--Basic Vocational Rehabilitation Services
STATE ALLOTMENTS
Sec. 110. (a) * * *
(b)(1) Not later than 45 days prior to the end of the fiscal
year, the [Commissioner] Director shall determine, after
reasonable opportunity for the submission to the [Commissioner]
Director of comments by the State agency administering or
supervising the program established under this title, that any
payment of an allotment to a State under section 111(a) for any
fiscal year will not be utilized by such State in carrying out
the purposes of this title.
(2) As soon as practicable but not later than the end of the
fiscal year, the [Commissioner] Director shall make such amount
available for carrying out the purposes of this title to one or
more other States to the extent the [Commissioner] Director
determines such other State will be able to use such additional
amount during that fiscal year or the subsequent fiscal year
for carrying out such purposes. The [Commissioner] Director
shall make such amount available only if such other State will
be able to make sufficient payments from non-Federal sources to
pay for the non-Federal share of the cost of vocational
rehabilitation services under the State plan for the fiscal
year for which the amount was appropriated.
(c)(1) For fiscal year 1987 and for each subsequent fiscal
year, the [Commissioner] Director shall reserve from the amount
appropriated under section 100(b)(1) for allotment under this
section a sum, determined under paragraph (2), to carry out the
purposes of part C.
[(2) The sum referred to in paragraph (1) shall be, as
determined by the Secretary--
[(A) not less than three-quarters of 1 percent and
not more than 1.5 percent of the amount referred to in
paragraph (1), for fiscal year 1999; and
[(B) not less than 1 percent and not more than 1.5
percent of the amount referred to in paragraph (1), for
each of fiscal years 2000 through 2003.]
(2) The sum referred to in paragraph (1) shall be, as
determined by the Secretary, not less than 1 percent
and not more than 1.5 percent of the amount referred to
in paragraph (1) for each of fiscal years 2003 through
2009.
PAYMENTS TO STATES
Sec. 111. (a)(1) Except as provided in paragraph (2), from
each State's allotment under this part for any fiscal year, the
[Commissioner] Director shall pay to a State an amount equal to
the Federal share of the cost of vocational rehabilitation
services under the plan for that State approved under section
101, including expenditures for the administration of the State
plan.
(2)(A) * * *
* * * * * * *
(C) The [Commissioner] Director may waive or modify any
requirement or limitation under subparagraph (B) or section
101(a)(17) if the [Commissioner] Director determines that a
waiver or modification is an equitable response to exceptional
or uncontrollable circumstances affecting the State.
(3)(A) * * *
(B) If the Federal share with respect to rehabilitation
facilities in such State is determined pursuant to section
645(b)(2) of such Act (42 U.S.C. 291o(b)(2)), the percentage of
the cost for purposes of this section shall be determined in
accordance with regulations prescribed by the [Commissioner]
Director designed to achieve as nearly as practicable results
comparable to the results obtained under such section.
(b) The method of computing and paying amounts pursuant to
subsection (a) shall be as follows:
(1) The [Commissioner] Director shall, prior to the
beginning of each calendar quarter or other period
prescribed by the [Commissioner] Director, estimate the
amount to be paid to each State under the provisions of
such subsection for such period, such estimate to be
based on such records of the State and information
furnished by it, and such other investigation as the
[Commissioner] Director may find necessary.
(2) The [Commissioner] Director shall pay, from the
allotment available therefor, the amount so estimated
by the [Commissioner] Director for such period, reduced
or increased, as the case may be, by any sum (not
previously adjusted under this paragraph) by which the
[Commissioner] Director finds that the estimate of the
amount to be paid the State for any prior period under
such subsection was greater or less than the amount
which should have been paid to the State for such prior
period under such subsection. Such payment shall be
made prior to audit or settlement by the General
Accounting Office, shall be made through the disbursing
facilities of the Treasury Department, and shall be
made in such installments as the [Commissioner]
Director may determine.
CLIENT ASSISTANCE PROGRAM
Sec. 112. (a) * * *
* * * * * * *
(c)(1)(A) * * *
(B)(i) The Governor may not redesignate the agency designated
under subparagraph (A) without good cause and unless--
(I) * * *
* * * * * * *
(III) the agency has the opportunity to appeal to the
[Commissioner] Director on the basis that the
redesignation was not for good cause.
* * * * * * *
(h) There are authorized to be appropriated such sums as may
be necessary for [fiscal years 1999 through 2003] fiscal years
2004 through 2009 to carry out the provisions of this section.
* * * * * * *
Part C--American Indian Vocational Rehabilitation Services
VOCATIONAL REHABILITATION SERVICES GRANTS
Sec. 121. (a) The [Commissioner] Director, in accordance with
the provisions of this part, may make grants to the governing
bodies of Indian tribes located on Federal and State
reservations (and consortia of such governing bodies) to pay 90
percent of the costs of vocational rehabilitation services for
American Indians who are individuals with disabilities residing
on or near such reservations. The non-Federal share of such
costs may be in cash or in kind, fairly valued, and the
[Commissioner] Director may waive such non-Federal share
requirement in order to carry out the purposes of this Act.
(b)(1) No grant may be made under this part for any fiscal
year unless an application therefor has been submitted to and
approved by the [Commissioner] Director. The [Commissioner]
Director may not approve an application unless the
application--
(A) is made at such time, in such manner, and
contains such information as the [Commissioner]
Director may require;
(2) The provisions of sections 5, 6, 7, and 102(a) of the
Indian Self-Determination and Education Assistance Act shall be
applicable to any application submitted under this part. For
purposes of this paragraph, any reference in any such provision
to the Secretary of Education or to the Secretary of the
Interior shall be considered to be a reference to the
[Commissioner] Director.
(3) Any application approved under this part shall be
effective for not more than 60 months, except as determined
otherwise by the [Commissioner] Director pursuant to prescribed
regulations. The State shall continue to provide vocational
rehabilitation services under its State plan to American
Indians residing on or near a reservation whenever such State
includes any such American Indians in its State population
under section 110(a)(1).
* * * * * * *
Part D--Vocational Rehabilitation Services Client Information
SEC. 131. DATA SHARING.
(a) In General.--
(1) * * *
(2) Employment statistics.--The Secretary of Labor
shall provide the [Commissioner] Director with
employment statistics specified in section 15 of the
Wagner-Peyser Act, that facilitate evaluation by the
[Commissioner] Director of the program carried out
under part B, and allow the [Commissioner] Director to
compare the progress of individuals with disabilities
who are assisted under the program in securing,
retaining, regaining, and advancing in employment with
the progress made by individuals who are assisted under
title I of the Workforce Investment Act of 1998.
* * * * * * *
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
1999 through 2003] fiscal years 2004 through 2009; and
(2) to carry out section 204, such sums as may be
necessary for each of [fiscal years 1999 through 2003]
fiscal years 2004 through 2009.
* * * * * * *
NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION RESEARCH
Sec. 202. (a)(1) * * *
(2) In the performance of the functions of the office, the
Director shall be directly responsible to the Secretary or to
the same Under Secretary or Assistant Secretary of the
Department of Education to whom the [Commissioner] Director is
responsible under section 3(a).
* * * * * * *
(h)(1) The Director shall--
(A) * * *
* * * * * * *
(D) be developed by the Director--
(i) after consultation with the
Rehabilitation Research Advisory Council
established under section 205;
(ii) in coordination with the [Commissioner]
Director;
* * * * * * *
INTERAGENCY COMMITTEE
Sec. 203. (a)(1) In order to promote coordination and
cooperation among Federal departments and agencies conducting
rehabilitation research programs, including programs relating
to assistive technology research and research that incorporates
the principles of universal design, there is established within
the Federal Government an Interagency Committee on Disability
Research (hereinafter in this section referred to as the
``Committee''), chaired by the Director and comprised of such
members as the President may designate, including the following
(or their designees): the Director, the [Commissioner] Director
of the Rehabilitation Services Administration, the Assistant
Secretary for Special Education and Rehabilitative Services,
the Secretary of Education, the Secretary of Veterans Affairs,
the Director of the National Institutes of Health, the Director
of the National Institute of Mental Health, the Administrator
of the National Aeronautics and Space Administration, the
Secretary of Transportation, the Assistant Secretary of the
Interior for Indian Affairs, the Director of the Indian Health
Service, and the Director of the National Science Foundation.
* * * * * * *
TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS
SEC. 302. TRAINING.
(a) Grants and Contracts for Personnel Training.--
(1) Authority.--The [Commissioner] Director shall
make grants to, and enter into contracts with, States
and public or nonprofit agencies and organizations
(including institutions of higher education) to pay
part of the cost of projects to provide training,
traineeships, and related activities, including the
provision of technical assistance, that are designed to
assist in increasing the numbers of, and upgrading the
skills of, qualified personnel (especially
rehabilitation counselors) who are trained in providing
vocational, medical, social, and psychological
rehabilitation services, who are trained to assist
individuals with communication and related disorders,
who are trained to provide other services provided
under this Act, to individuals with disabilities, and
who may include--
(A) * * *
* * * * * * *
(3) Related federal statutes.--In carrying out this
subsection, the [Commissioner] Director may make grants
to and enter into contracts with States and public or
nonprofit agencies and organizations, including
institutions of higher education, to furnish training
regarding provisions of Federal statutes, including
section 504, title I of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12111 et seq.), and the
provisions of titles II and XVI of the Social Security
Act (42 U.S.C. 401 et seq. and 1381 et seq.), that are
related to work incentives for individuals with
disabilities.
(4) Training for statewide workforce systems
personnel.--The [Commissioner] Director may make grants
to and enter into contracts under this subsection with
States and public or nonprofit agencies and
organizations, including institutions of higher
education, to furnish training to personnel providing
services to individuals with disabilities under title I
of the Workforce Investment Act of 1998. Under this
paragraph, personnel may be trained--
(A) * * *
* * * * * * *
(b) Grants and Contracts for Academic Degrees and
Academic Certificate Granting Training Projects.--
(1) Authority.--
(A) In general.--The [Commissioner] Director
may make grants to, and enter into contracts
with, States and public or nonprofit agencies
and organizations (including institutions of
higher education) to pay part of the costs of
academic training projects to provide training
that leads to an academic degree or academic
certificate. In making such grants or entering
into such contracts, the [Commissioner]
Director shall target funds to areas determined
under subsection (e) to have shortages of
qualified personnel.
(2) Application.--No grant shall be awarded or
contract entered into under this subsection unless the
applicant has submitted to the [Commissioner] Director
an application at such time, in such form, in
accordance with such procedures, and including such
information as the Secretary may require, including--
(A) * * *
* * * * * * *
(5) Agreements.--
(A) Contents.--A recipient of a grant or
contract under this subsection shall provide
assurances to the [Commissioner] Director that
each individual who receives a scholarship, for
any academic year beginning after June 1, 1992,
utilizing funds provided under such grant or
contract shall enter into an agreement with the
recipient under which the individual shall--
(i) * * *
* * * * * * *
except as the [Commissioner] Director by
regulation may provide for repayment exceptions
and deferrals.
(B) Enforcement.--The [Commissioner] Director
shall be responsible for the enforcement of
each agreement entered into under subparagraph
(A) upon completion of the training involved
under such subparagraph.
(c) Grants to Historically Black Colleges and Universities.--
The [Commissioner] Director, in carrying out this section,
shall make grants to historically Black colleges and
universities and other institutions of higher education whose
minority student enrollment is at least 50 percent of the total
enrollment of the institution.
(d) Application.--A grant may not be awarded to a State or
other organization under this section unless the State or
organization has submitted an application to the [Commissioner]
Director at such time, in such form, in accordance with such
procedures, and containing such information as the
[Commissioner] Director may require. Any such application shall
include a detailed description of strategies that will be
utilized to recruit and train individuals so as to reflect the
diverse populations of the United States as part of the effort
to increase the number of individuals with disabilities, and
individuals who are from linguistically and culturally diverse
backgrounds, who are available to provide rehabilitation
services.
(e) Evaluation and Collection of Data.--The [Commissioner]
Director shall evaluate the impact of the training programs
conducted under this section, and collect information on the
training needs of, and data on shortages of qualified personnel
necessary to provide services to individuals with disabilities.
The [Commissioner] Director shall prepare and submit to
Congress, by September 30 of each fiscal year, a report setting
forth and justifying in detail how the funds made available for
training under this section for the fiscal year prior to such
submission are allocated by professional discipline and other
program areas. The report shall also contain findings on such
personnel shortages, how funds proposed for the succeeding
fiscal year will be allocated under the President's budget
proposal, and how the findings on personnel shortages justify
the allocations.
(f) Grants for the Training of Interpreters.--
(1) Authority.--
(A) In general.--For the purpose of training
a sufficient number of qualified interpreters
to meet the communications needs of individuals
who are deaf or hard of hearing, and
individuals who are deaf-blind, the
[Commissioner] Director, acting through a
Federal office responsible for deafness and
communicative disorders, may award grants to
public or private nonprofit agencies or
organizations to pay part of the costs--
(i) * * *
* * * * * * *
(B) Geographic areas.--The [Commissioner]
Director shall award grants under this
subsection for programs in geographic areas
throughout the United States that the
[Commissioner] Director considers appropriate
to best carry out the objectives of this
section.
(C) Priority.--In awarding grants under this
subsection, the [Commissioner] Director shall
give priority to public or private nonprofit
agencies or organizations with existing
programs that have a demonstrated capacity for
providing interpreter training services.
(D) Funding.--The [Commissioner] Director may
award grants under this subsection through the
use of--
(i) * * *
* * * * * * *
(2) Application.--A grant may not be awarded to an
agency or organization under paragraph (1) unless the
agency or organization has submitted an application to
the [Commissioner] Director at such time, in such form,
in accordance with such procedures, and containing such
information as the [Commissioner] Director may require,
including--
(A) * * *
* * * * * * *
(C) assurances that any interpreter trained
or retrained under a program funded under the
grant will meet such minimum standards of
competency as the [Commissioner] Director may
establish for purposes of this subsection; and
(D) such other information as the
[Commissioner] Director may require.
(g) Technical Assistance and In-Service Training.--
(1) Technical assistance.--The [Commissioner]
Director is authorized to provide technical assistance
to State designated agencies and community
rehabilitation programs, directly or through contracts
with State designated agencies or nonprofit
organizations.
(2) Compensation.--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] Director, that 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) In-service training of rehabilitation
personnel.--
(A) * * *
(B) Limitation.--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 1998 by other recipients of funds
under this section, the [Commissioner] Director
may allocate less than 15 percent of the sums
described in subparagraph (A) to designated
State agencies for such in-service training.
(h) Provision of Information.--The [Commissioner] Director,
subject to the provisions of section 306, may require that
recipients of grants or contracts under this section provide
information, including data, with regard to the impact of
activities funded under this section.
(i) 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 1999 through 2003]
fiscal years 2004 through 2009.
SEC. 303. DEMONSTRATION AND TRAINING PROGRAMS.
(a) Demonstration Projects To Increase Client Choice.--
(1) Grants.--The [Commissioner] Director 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.
* * * * * * *
(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] Director may require, including--
(A) * * *
* * * * * * *
(4) Award of grants.--In selecting entities to
receive grants under paragraph (1), the [Commissioner]
Director shall take into consideration--
(A) * * *
* * * * * * *
(5) Records.--Entities that receive grants under
paragraph (1) shall maintain such records as the
[Commissioner] Director may require and comply with any
request from the [Commissioner] Director for such
records.
* * * * * * *
(7) Evaluation.--The [Commissioner] Director may
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] Director 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.
* * * * * * *
(b) Special Demonstration Programs.--
(1) Grants; contracts.--The [Commissioner] Director,
subject to the provisions of section 306, may provide
grants to, or enter into contracts with, eligible
entities to pay all or part of the cost of programs
that expand and improve the provision of rehabilitation
and other services authorized under this Act or that
further the purposes of the Act, including related
research and evaluation activities.
(2) Eligible entities; terms and conditions.--
(A) Eligible entities.--To be eligible to
receive a grant, or enter into a contract,
under paragraph (1), an entity shall be a State
vocational rehabilitation agency, community
rehabilitation program, Indian tribe or tribal
organization, or other public or nonprofit
agency or organization, or as the
[Commissioner] Director determines appropriate,
a for-profit organization. The [Commissioner]
Director may limit competitions to one or more
types of organizations described in this
subparagraph.
(B) Terms and conditions.--A grant or
contract under paragraph (1) shall contain such
terms and conditions as the [Commissioner]
Director may require.
(3) Application.--An eligible entity that desires to
receive a grant, or enter into a contract, under
paragraph (1) shall submit an application to the
Secretary at such time, in such form, and containing
such information and assurances as the [Commissioner]
Director may require, including, if the [Commissioner]
Director determines appropriate, a description of how
the proposed project or demonstration program--
(A) * * *
* * * * * * *
(5) Priority for competitions.--
(A) In general.--In announcing competitions
for grants and contracts under this subsection,
the [Commissioner] Director shall give priority
consideration to--
(i) * * *
* * * * * * *
(B) Additional competitions.--In announcing
competitions for grants and contracts under
this subsection, the [Commissioner] Director
may require that applicants address one or more
of the following:
(i) * * *
* * * * * * *
(6) Use of funds for continuation awards.--The
[Commissioner] Director may use funds made available to
carry out this section for continuation awards for
projects that were funded under sections 12 and 311 (as
such sections were in effect on the day before the date
of the enactment of the Rehabilitation Act Amendments
of 1998).
(c) Parent Information and Training Program.--
(1) Grants.--The [Commissioner] Director is
authorized to make grants to private nonprofit
organizations for the purpose of establishing programs
to provide training and information to enable
individuals with disabilities, and the parents, family
members, guardians, advocates, or other authorized
representatives of the individuals to participate more
effectively with professionals in meeting the
vocational, independent living, and rehabilitation
needs of individuals with disabilities. Such grants
shall be designed to meet the unique training and
information needs of the individuals described in the
preceding sentence, who live in the area to be served,
particularly those who are members of populations that
have been unserved or underserved by programs under
this Act.
(3) Award of grants.--The [Commissioner] Director
shall ensure that grants under this subsection--
(A) * * *
* * * * * * *
(4) Eligible organizations.--In order to receive a
grant under this subsection, an organization--
(A) shall submit an application to the
[Commissioner] Director at such time, in such
manner, and containing such information as the
[Commissioner] Director may require, including
information demonstrating the capacity and
expertise of the organization--
(i) * * *
* * * * * * *
(6) Coordination.--The [Commissioner] Director shall
provide coordination and technical assistance by grant
or cooperative agreement for establishing, developing,
and coordinating the training and information programs.
To the extent practicable, such assistance shall be
provided by the parent training and information centers
established pursuant to section 682(a) of the
Individuals with Disabilities Education Act (as added
by section 101 of the Individuals with Disabilities
Education Act Amendments of 1997; Public Law 105-17).
(7) Review.--
(A) * * *
(B) Review for grant renewal.--If a nonprofit
private organization requests the renewal of a
grant under this subsection, the board of
directors or the special governing committee
shall prepare and submit to the [Commissioner]
Director a written review of the training and
information program conducted by the
organization during the preceding fiscal year.
(d) Braille Training Programs.--
(1) Establishment.--The [Commissioner] Director 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.
* * * * * * *
(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] Director at such time, in such
manner, and containing such information as the
[Commissioner] Director may require.
(e) 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 1999 through 2003]
fiscal years 2004 through 2009.
SEC. 304. MIGRANT AND SEASONAL FARMWORKERS.
(a) Grants.--
(1) Authority.--The [Commissioner] Director, subject
to the provisions of section 306, may make grants to
eligible entities to pay up to 90 percent of the cost
of projects or demonstration programs for the provision
of vocational rehabilitation services to individuals
with disabilities who are migrant or seasonal
farmworkers, as determined in accordance with rules
prescribed by the Secretary of Labor, and to the family
members who are residing with such individuals (whether
or not such family members are individuals with
disabilities).
* * * * * * *
(4) Assurance of cooperation.--To be eligible to
receive a grant under this section an entity shall
provide assurances (satisfactory to the [Commissioner]
Director) that in the provision of services under the
grant there will be appropriate cooperation between the
grantee and other public or nonprofit agencies and
organizations having special skills and experience in
the provision of services to migrant or seasonal
farmworkers or their families.
(5) Coordination with other programs.--The
[Commissioner] Director shall administer this section
in coordination with other programs serving migrant and
seasonal farmworkers, including programs under title I
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6301 et seq.), section 330 of the Public
Health Service Act (42 U.S.C. 254b), the Migrant and
Seasonal Agricultural Worker Protection Act (29 U.S.C.
1801 et seq.), and the Workforce Investment Act of
1998.
(b) Authorization of Appropriations.--There are authorized to
be appropriated such sums as may be necessary to carry out this
section, for each of the [fiscal years 1999 through 2003]
fiscal years 2004 through 2009.
SEC. 305. RECREATIONAL PROGRAMS.
(a) Grants.--
(1) Authority.--
(A) In general.--The [Commissioner] Director,
subject to the provisions of section 306, shall
make grants to States, public agencies, and
nonprofit private organizations to pay the
Federal share of the cost of the establishment
and operation of recreation programs to provide
individuals with disabilities with recreational
activities and related experiences to aid in
the employment, mobility, socialization,
independence, and community integration of such
individuals.
(4) Application.--To be eligible to receive a grant
under this section, a State, agency, or organization
shall submit an application to the [Commissioner]
Director at such time, in such manner, and containing
such information as the [Commissioner] Director may
require, including a description of--
(A) * * *
* * * * * * *
(6) Reports by grantees.--
(A) Requirement.--The [Commissioner] Director
shall require that each recipient of a grant
under this section annually prepare and submit
to the [Commissioner] Director a report
concerning the results of the activities funded
under the grant.
(B) Limitation.--The [Commissioner] Director
may not make financial assistance available to
a grant recipient for a subsequent year until
the [Commissioner] Director has received and
evaluated the annual report of the recipient
under subparagraph (A) for the current year.
(b) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section, such sums as may be
necessary for each of the [fiscal years 1999 through 2003]
fiscal years 2004 through 2009.
SEC. 306. MEASURING OF PROJECT OUTCOMES AND PERFORMANCE.
The [Commissioner] Director may require that recipients of
grants under this title submit information, including data, as
determined by the [Commissioner] Director to be necessary to
measure project outcomes and performance, including any data
needed to comply with the Government Performance and Results
Act.
TITLE IV--NATIONAL COUNCIL ON DISABILITY
DUTIES OF NATIONAL COUNCIL
Sec. 401. (a) The National Council shall--
(1) * * *
(2) provide advice to the [Commissioner] Director
with respect to the policies of and conduct of the
Rehabilitation Services Administration;
(3) advise the President, the Congress, the
[Commissioner] Director, the appropriate Assistant
Secretary of the Department of Education, and the
Director of the National Institute on Disability and
Rehabilitation Research on the development of the
programs to be carried out under this Act;
* * * * * * *
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 1999 through 2003] fiscal years 2004 through
2009.
TITLE V--RIGHTS AND ADVOCACY
ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD
Sec. 502. (a) * * *
* * * * * * *
(j) There are authorized to be appropriated for the purpose
of carrying out the duties and functions of the Access Board
under this section such sums as may be necessary for each of
the [fiscal years 1999 through 2003] fiscal years 2004 through
2009.
* * * * * * *
SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.
(a) * * *
(b) Appropriations Less Than $5,500,000.--For any fiscal year
in which the amount appropriated to carry out this section is
less than $5,500,000, the [Commissioner] Director may make
grants from such amount to eligible systems within States to
plan for, develop outreach strategies for, and carry out
protection and advocacy programs authorized under this section
for individuals with disabilities who meet the requirements of
subparagraphs (A) and (B) of subsection (a)(1).
(c) Appropriations of $5,500,000 or More.--
(1) Reservations.--
(A) Technical assistance.--For any fiscal
year in which the amount appropriated to carry
out this section equals or exceeds $5,500,000,
the [Commissioner] Director shall set aside not
less than 1.8 percent and not more than 2.2
percent of the amount to provide training and
technical assistance to the systems established
under this section.
(B) Grant for the eligible system serving the
american indian consortium.--For any fiscal
year in which the amount appropriated to carry
out this section equals or exceeds $10,500,000,
the [Commissioner] Director shall reserve a
portion, and use the portion to make a grant
for the eligible system serving the American
Indian consortium. The Commission shall make
the grant in an amount of not less than $50,000
for the fiscal year.
(2) Allotments.--For any such fiscal year, after the
reservations required by paragraph (1) have been made,
the [Commissioner] Director shall make allotments from
the remainder of such amount in accordance with
paragraph (3) to eligible systems within States to
enable such systems to carry out protection and
advocacy programs authorized under this section for
individuals referred to in subsection (b).
(3) Systems within states.--
(A) Population basis.--Except as provided in
subparagraph (B), from such remainder for each
such fiscal year, the [Commissioner] Director
shall make an allotment to the eligible system
within a State of an amount bearing the same
ratio to such remainder as the population of
the State bears to the population of all
States.
* * * * * * *
(5) Adjustment for inflation.--For any fiscal year,
beginning in fiscal year 1999, in which the total
amount appropriated to carry out this section exceeds
the total amount appropriated to carry out this section
for the preceding fiscal year, the [Commissioner]
Director shall increase each of the minimum grants or
allotments under paragraphs (1)(B), (3)(B), and (4)(B)
by a percentage that shall not exceed the percentage
increase in the total amount appropriated to carry out
this section between the preceding fiscal year and the
fiscal year involved.
(d) Proportional Reduction.--To provide minimum allotments to
systems within States (as increased under subsection (c)(5))
under subsection (c)(3)(B), or to provide minimum allotments to
systems within States (as increased under subsection (c)(5))
under subsection (c)(4)(B), the [Commissioner] Director shall
proportionately reduce the allotments of the remaining systems
within States under subsection (c)(3), with such adjustments as
may be necessary to prevent the allotment of any such remaining
system within a State from being reduced to less than the
minimum allotment for a system within a State (as increased
under subsection (c)(5)) under subsection (c)(3)(B), or the
minimum allotment for a State (as increased under subsection
(c)(5)) under subsection (c)(4)(B), as appropriate.
(e) Reallotment.--Whenever the [Commissioner] Director
determines that any amount of an allotment to a system within a
State for any fiscal year described in subsection (c)(1) will
not be expended by such system in carrying out the provisions
of this section, the [Commissioner] Director shall make such
amount available for carrying out the provisions of this
section to one or more of the systems that the [Commissioner]
Director determines will be able to use additional amounts
during such year for carrying out such provisions. Any amount
made available to a system for any fiscal year pursuant to the
preceding sentence shall, for the purposes of this section, be
regarded as an increase in the allotment of the system (as
determined under the preceding provisions of this section) for
such year.
(f) Application.--In order to receive assistance under this
section, an eligible system shall submit an application to the
[Commissioner] Director, at such time, in such form and manner,
and containing such information and assurances as the
[Commissioner] Director determines necessary to meet the
requirements of this section, including assurances that the
eligible system will--
(1) * * *
* * * * * * *
(7) provide assurances to the [Commissioner] Director
that funds made available under this section will be
used to supplement and not supplant the non-Federal
funds that would otherwise be made available for the
purpose for which Federal funds are provided.
(g) Carryover and Direct Payment.--
(1) Direct payment.--Notwithstanding any other
provision of law, the [Commissioner] Director shall pay
directly to any system that complies with the
provisions of this section, the amount of the allotment
of the State or the grant for the eligible system that
serves the American Indian consortium involved under
this section, unless the State or American Indian
consortium provides otherwise.
* * * * * * *
(h) Limitation on Disclosure Requirements.--For purposes of
any audit, report, or evaluation of the performance of the
program established under this section, the [Commissioner]
Director shall not require such a program to disclose the
identity of, or any other personally identifiable information
related to, any individual requesting assistance under such
program.
* * * * * * *
(j) Delegation.--The [Commissioner] Director may delegate the
administration of this program to the [Commissioner] Director
of the Administration on Developmental Disabilities within the
Department of Health and Human Services.
(k) Report.--The [Commissioner] Director shall annually
prepare and submit to the Committee on Education and the
Workforce of the House of Representatives and the Committee on
Labor and Human Resources of the Senate a report describing the
types of services and activities being undertaken by programs
funded under this section, the total number of individuals
served under this section, the types of disabilities
represented by such individuals, and the types of issues being
addressed on behalf of such individuals.
(l) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section such sums as may be
necessary for each of the [fiscal years 1999 through 2003]
fiscal years 2004 through 2009.
* * * * * * *
TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES
* * * * * * *
PROJECTS WITH INDUSTRY
Sec. 611. (a)(1) * * *
(2) The [Commissioner] Director, in consultation with the
Secretary of Labor and with designated State units, may award
grants to individual employers, community rehabilitation
program providers, labor unions, trade associations, Indian
tribes, tribal organizations, designated State units, and other
entities to establish jointly financed Projects With Industry
to create and expand job and career opportunities for
individuals with disabilities, which projects shall--
(A) * * *
* * * * * * *
(4) The [Commissioner] Director shall enter into an agreement
with the grant recipient regarding the establishment of the
project. Any agreement shall be jointly developed by the
[Commissioner] Director, the grant recipient, and, to the
extent practicable, the appropriate designated State unit and
the individuals with disabilities (or the individuals'
representatives) involved. Such agreements shall specify the
terms of training and employment under the project, provide for
the payment by the [Commissioner] Director of part of the costs
of the project (in accordance with subsection (c)), and contain
the items required under subsection (b) and such other
provisions as the parties to the agreement consider to be
appropriate.
(5) Any agreement shall include a description of a plan to
annually conduct a review and evaluation of the operation of
the project in accordance with standards developed by the
[Commissioner] Director under subsection (d), and, in
conducting the review and evaluation, to collect data and
information of the type described in subparagraphs (A) through
(C) of section 101(a)(10), as determined to be appropriate by
the [Commissioner] Director.
(6) The [Commissioner] Director may include, as part of
agreements with grant recipients, authority for such grant
recipients to provide technical assistance to--
(A) * * *
* * * * * * *
(b) No payment shall be made by the [Commissioner] Director
under any agreement with a grant recipient entered into under
subsection (a) unless such agreement--
(1) * * *
* * * * * * *
(3) provides an assurance that an annual evaluation
report containing information specified under
subsection (a)(5) shall be submitted as determined to
be appropriate by the [Commissioner] Director.
(d)(1) The [Commissioner] Director shall develop standards
for the evaluation described in subsection (a)(5) and shall
review and revise the evaluation standards as necessary,
subject to paragraph (2).
(2) In revising the standards for evaluation to be used by
the grant recipients, the [Commissioner] Director shall obtain
and consider recommendations for such standards from State
vocational rehabilitation agencies, current and former grant
recipients, professional organizations representing business
and industry, organizations representing individuals with
disabilities, individuals served by grant recipients,
organizations representing community rehabilitation program
providers, and labor organizations.
(e)(1)(A) A grant may be awarded under this section for a
period of up to 5 years and such grant may be renewed.
(B) Grants under this section shall be awarded on a
competitive basis. To be eligible to receive such a grant, a
prospective grant recipient shall submit an application to the
[Commissioner] Director at such time, in such manner, and
containing such information as the [Commissioner] Director may
require.
(2) The [Commissioner] Director shall, to the extent
practicable, ensure an equitable distribution of payments made
under this section among the States. To the extent funds are
available, the [Commissioner] Director shall award grants under
this section to new projects that will serve individuals with
disabilities in States, portions of States, Indian tribes, or
tribal organizations, that are currently unserved or
underserved by projects.
(f)(1) The [Commissioner] Director shall, as necessary,
develop and publish in the Federal Register, in final form,
indicators of what constitutes minimum compliance consistent
with the evaluation standards under subsection (d)(1).
(2) Each grant recipient shall report to the [Commissioner]
Director at the end of each project year the extent to which
the grant recipient is in compliance with the evaluation
standards.
(3)(A) The [Commissioner] Director shall annually conduct
onsite compliance reviews of at least 15 percent of grant
recipients. The [Commissioner] Director shall select grant
recipients for review on a random basis.
(B) The [Commissioner] Director shall use the indicators in
determining compliance with the evaluation standards.
(C) The [Commissioner] Director shall ensure that at least
one member of a team conducting such a review shall be an
individual who--
(i) * * *
* * * * * * *
(D) The [Commissioner] Director shall ensure that--
(i) * * *
* * * * * * *
(4) In making a determination concerning any subsequent grant
under this section, the [Commissioner] Director shall consider
the past performance of the applicant, if applicable. The
[Commissioner] Director shall use compliance indicators
developed under this subsection that are consistent with
program evaluation standards developed under subsection (d) to
assess minimum project performance for purposes of making
continuation awards in the third, fourth, and fifth years.
(5) Each fiscal year the [Commissioner] Director shall
include in the annual report to Congress required by section 13
an analysis of the extent to which grant recipients have
complied with the evaluation standards. The [Commissioner]
Director may identify individual grant recipients in the
analysis. In addition, the [Commissioner] Director shall report
the results of onsite compliance reviews, identifying
individual grant recipients.
(g) The [Commissioner] Director may provide, directly or by
way of grant, contract, or cooperative agreement, technical
assistance to--
(1) * * *
* * * * * * *
AUTHORIZATION OF APPROPRIATIONS
Sec. 612. 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 1999 through 2003] fiscal years 2004
through 2009.
* * * * * * *
SEC. 622. ALLOTMENTS.
(a) * * *
(b) Reallotment.--Whenever the [Commissioner] Director
determines that any amount of an allotment to a State for any
fiscal year will not be expended by such State for carrying out
the provisions of this part, the [Commissioner] Director shall
make such amount available for carrying out the provisions of
this part to one or more of the States that the [Commissioner]
Director determines will be able to use additional amounts
during such year for carrying out such provisions. Any amount
made available to a State for any fiscal year pursuant to the
preceding sentence shall, for the purposes of this section, be
regarded as an increase in the allotment of the State (as
determined under the preceding provisions of this section) for
such year.
* * * * * * *
SEC. 625. STATE PLAN.
(a) State Plan Supplements.--To be eligible for an allotment
under this part, a State shall submit to the [Commissioner]
Director, as part of the State plan under section 101, a State
plan supplement for providing supported employment services
authorized under this Act to individuals who are eligible under
this Act to receive the services. Each State shall make such
annual revisions in the plan supplement as may be necessary.
(b) Contents.--Each such plan supplement shall--
(1) * * *
* * * * * * *
(8) contain such other information and be submitted
in such manner as the [Commissioner] Director may
require.
* * * * * * *
SEC. 628. 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
1999 through 2003] fiscal years 2004 through 2009.
TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING
CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES
PART A--GENERAL PROVISIONS
* * * * * * *
SEC. 704. STATE PLAN.
(a) In General.--
(1) Requirement.--To be eligible to receive financial
assistance under this chapter, a State shall submit to
the [Commissioner] Director, and obtain approval of, a
State plan containing such provisions as the
[Commissioner] Director may require, including, at a
minimum, the provisions required in this section.
* * * * * * *
(4) Date of submission.--The State shall submit the
plan to the [Commissioner] Director 90 days before the
completion date of the preceding plan. If a State fails
to submit such a plan that complies with the
requirements of this section, the [Commissioner]
Director may withhold financial assistance under this
chapter until such time as the State submits such a
plan.
* * * * * * *
(c) Designation of State Unit.--The plan shall designate the
designated State unit of such State as the agency that, on
behalf of the State, shall--
(1) * * *
* * * * * * *
(3) keep such records and afford such access to such
records as the [Commissioner] Director finds to be
necessary with respect to the programs; and
(4) submit such additional information or provide
such assurances as the [Commissioner] Director may
require with respect to the programs.
* * * * * * *
(m) Requirements.--The plan shall provide satisfactory
assurances that all recipients of financial assistance under
this chapter will--
(1) * * *
* * * * * * *
(4)(A) * * *
(B) maintain such other records as the [Commissioner]
Director determines to be appropriate to facilitate an
effective audit;
(C) afford such access to records maintained under
subparagraphs (A) and (B) as the [Commissioner]
Director determines to be appropriate; and
* * * * * * *
(5) provide access to the [Commissioner] Director and
the Comptroller General or any of their duly authorized
representatives, for the purpose of conducting audits
and examinations, of any books, documents, papers, and
records of the recipients that are pertinent to the
financial assistance received under this chapter; and
* * * * * * *
SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL.
(a) * * *
(b) Composition and Appointment.--
(1) * * *
* * * * * * *
[(5) Chairperson.--
[(A) In general.--Except as provided in
subparagraph (B), the Council shall select a
chairperson from among the voting membership of
the Council.
[(B) Designation by chief executive
officer.--In States in which the Governor does
not have veto power pursuant to State law, the
appointing authority described in paragraph (3)
shall designate a voting member of the Council
to serve as the chairperson of the Council or
shall require the Council to so designate such
a voting member.]
(5) Chairperson.--The Council shall select a
chairperson from among the voting membership of the
Council.
(c) Duties.--The Council shall--
(1) * * *
* * * * * * *
(5) submit to the [Commissioner] Director such
periodic reports as the [Commissioner] Director may
reasonably request, and keep such records, and afford
such access to such records, as the [Commissioner]
Director finds necessary to verify such reports.
SEC. 706. RESPONSIBILITIES OF THE COMMISSIONER.
(a) Approval of State Plans.--
(1) In general.--The [Commissioner] Director shall
approve any State plan submitted under section 704 that
the [Commissioner] Director determines meets the
requirements of section 704, and shall disapprove any
such plan that does not meet such requirements, as soon
as practicable after receiving the plan. Prior to such
disapproval, the [Commissioner] Director shall notify
the State of the intention to disapprove the plan, and
shall afford such State reasonable notice and
opportunity for a hearing.
(2) Procedures.--
(A) In general.--Except as provided in
subparagraph (B), the provisions of subsections
(c) and (d) of section 107 shall apply to any
State plan submitted to the [Commissioner]
Director under section 704.
(B) Application.--For purposes of the
application described in subparagraph (A), all
references in such provisions--
(i) to the Secretary shall be deemed
to be references to the [Commissioner]
Director; and
(b) Indicators.--Not later than October 1, 1993, the
[Commissioner] Director shall develop and publish in the
Federal Register indicators of minimum compliance consistent
with the standards set forth in section 725.
(c) Onsite Compliance Reviews.--
(1) Reviews.--The [Commissioner] Director shall
annually conduct onsite compliance reviews of at least
15 percent of the centers for independent living that
receive funds under section 722 and shall periodically
conduct such a review of each such center. The
[Commissioner] Director shall annually conduct onsite
compliance reviews of at least one-third of the
designated State units that receive funding under
section 723, and, to the extent necessary to determine
the compliance of such a State unit with subsections (f
) and (g) of section 723, centers that receive funding
under section 723 in such State. The [Commissioner]
Director shall select the centers and State units
described in this paragraph for review on a random
basis.
(2) Qualifications of employees conducting reviews.--
The [Commissioner] Director shall--
(A) * * *
* * * * * * *
(d) Reports.--The [Commissioner] Director shall include, in
the annual report required under section 13, information on the
extent to which centers for independent living receiving funds
under part C have complied with the standards and assurances
set forth in section 725. The [Commissioner] Director may
identify individual centers for independent living in the
analysis. The [Commissioner] Director shall report the results
of onsite compliance reviews, identifying individual centers
for independent living and other recipients of assistance under
this chapter.
PART B--INDEPENDENT LIVING SERVICES
SEC. 711. ALLOTMENTS.
(a) In General.--
(1) States.--
(A) Population basis.--Except as provided in
subparagraphs (B) and (C), from sums
appropriated for each fiscal year to carry out
this part, the [Commissioner] Director shall
make an allotment to each State whose State
plan has been approved under section 706 of an
amount bearing the same ratio to such sums as
the population of the State bears to the
population of all States.
* * * * * * *
(3) Adjustment for inflation.--For any fiscal year,
beginning in fiscal year 1999, in which the total
amount appropriated to carry out this part exceeds the
total amount appropriated to carry out this part for
the preceding fiscal year, the [Commissioner] Director
shall increase the minimum allotment under paragraph
(1)(C) by a percentage that shall not exceed the
percentage increase in the total amount appropriated to
carry out this part between the preceding fiscal year
and the fiscal year involved.
(b) Proportional Reduction.--To provide allotments to States
in accordance with subsection (a)(1)(B), to provide minimum
allotments to States (as increased under subsection (a)(3))
under subsection (a)(1)(C), or to provide minimum allotments to
States under subsection (a)(2)(B), the [Commissioner] Director
shall proportionately reduce the allotments of the remaining
States under subsection (a)(1)(A), with such adjustments as may
be necessary to prevent the allotment of any such remaining
State from being reduced to less than the amount required by
subsection (a)(1)(B).
(c) Reallotment.--Whenever the [Commissioner] Director
determines that any amount of an allotment to a State for any
fiscal year will not be expended by such State in carrying out
the provisions of this part, the [Commissioner] Director shall
make such amount available for carrying out the provisions of
this part to one or more of the States that the [Commissioner]
Director determines will be able to use additional amounts
during such year for carrying out such provisions. Any amount
made available to a State for any fiscal year pursuant to the
preceding sentence shall, for the purposes of this section, be
regarded as an increase in the allotment of the State (as
determined under the preceding provisions of this section) for
such year.
SEC. 712. PAYMENTS TO STATES FROM ALLOTMENTS.
(a) Payments.--From the allotment of each State for a fiscal
year under section 711, the State shall be paid the Federal
share of the expenditures incurred during such year under its
State plan approved under section 706. Such payments may be
made (after necessary adjustments on account of previously made
overpayments or underpayments) in advance or by way of
reimbursement, and in such installments and on such conditions
as the [Commissioner] Director may determine.
* * * * * * *
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 1999 through 2003] fiscal years 2004 through 2009.
PART C--CENTERS FOR INDEPENDENT LIVING
SEC. 721. PROGRAM AUTHORIZATION.
(a) In General.--From the funds appropriated for fiscal year
1999 and for each subsequent fiscal year to carry out this
part, the [Commissioner] Director shall allot such sums as may
be necessary to States and other entities in accordance with
subsections (b) through (d).
(b) Training.--
(1) Grants; contracts; other arrangements.--For any
fiscal year in which the funds appropriated to carry
out this part exceed the funds appropriated to carry
out this part for fiscal year 1993, the [Commissioner]
Director shall first reserve from such excess, to
provide training and technical assistance to eligible
agencies, centers for independent living, and Statewide
Independent Living Councils for such fiscal year, not
less than 1.8 percent, and not more than 2 percent, of
the funds appropriated to carry out this part for the
fiscal year involved.
(2) Allocation.--From the funds reserved under
paragraph (1), the [Commissioner] Director shall make
grants to, and enter into contracts and other
arrangements with, entities that have experience in the
operation of centers for independent living to provide
such training and technical assistance with respect to
planning, developing, conducting, administering, and
evaluating centers for independent living.
(3) Funding priorities.--The [Commissioner] Director
shall conduct a survey of Statewide Independent Living
Councils and centers for independent living regarding
training and technical assistance needs in order to
determine funding priorities for such grants,
contracts, and other arrangements.
(4) Review.--To be eligible to receive a grant or
enter into a contract or other arrangement under this
subsection, such an entity shall submit an application
to the [Commissioner] Director at such time, in such
manner, and containing a proposal to provide such
training and technical assistance, and containing such
additional information as the [Commissioner] Director
may require. The [Commissioner] Director shall provide
for peer review of grant applications by panels that
include persons who are not government employees and
who have experience in the operation of centers for
independent living.
(5) Prohibition on combined funds.--No funds reserved
by the [Commissioner] Director under this subsection
may be combined with funds appropriated under any other
Act or part of this Act if the purpose of combining
funds is to make a single discretionary grant or a
single discretionary payment, unless such funds
appropriated under this chapter are separately
identified in such grant or payment and are used for
the purposes of this chapter.
(c) In General.--
(1) States.--
(A) Population basis.--After the reservation
required by subsection (b) has been made, and
except as provided in subparagraphs (B) and
(C), from the remainder of the amounts
appropriated for each such fiscal year to carry
out this part, the [Commissioner] Director
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.
(3) Adjustment for inflation.--For any fiscal year,
beginning in fiscal year 1999, in which the total
amount appropriated to carry out this part exceeds the
total amount appropriated to carry out this part for
the preceding fiscal year, the [Commissioner] Director
shall increase the minimum allotment under paragraph
(1)(C) by a percentage that shall not exceed the
percentage increase in the total amount appropriated to
carry out this part between the preceding fiscal year
and the fiscal year involved.
(4) Proportional reduction.--To provide allotments to
States in accordance with paragraph (1)(B), to provide
minimum allotments to States (as increased under
paragraph (3)) under paragraph (1)(C), or to provide
minimum allotments to States under paragraph (2)(B),
the [Commissioner] Director shall proportionately
reduce the allotments of the remaining States under
paragraph (1)(A), with such adjustments as may be
necessary to prevent the allotment of any such
remaining State from being reduced to less than the
amount required by paragraph (1)(B).
(d) Reallotment.--Whenever the [Commissioner] Director
determines that any amount of an allotment to a State for any
fiscal year will not be expended by such State for carrying out
the provisions of this part, the [Commissioner] Director shall
make such amount available for carrying out the provisions of
this part to one or more of the States that the [Commissioner]
Director determines will be able to use additional amounts
during such year for carrying out such provisions. Any amount
made available to a State for any fiscal year pursuant to the
preceding sentence shall, for the purposes of this section, be
regarded as an increase in the allotment of the State (as
determined under the preceding provisions of this section) for
such year.
SEC. 722. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH
FEDERAL FUNDING EXCEEDS STATE FUNDING.
(a) Establishment.--
(1) In general.--Unless the director of a designated
State unit awards grants under section 723 to eligible
agencies in a State for a fiscal year, the
[Commissioner] Director shall award grants under this
section to such eligible agencies for such fiscal year
from the amount of funds allotted to the State under
subsection (c) or (d) of section 721 for such year.
(2) Grants.--The [Commissioner] Director shall award
such grants, from the amount of funds so allotted, to
such eligible agencies for the planning, conduct,
administration, and evaluation of centers for
independent living that comply with the standards and
assurances set forth in section 725.
(b) Eligible Agencies.--In any State in which the
[Commissioner] Director has approved the State plan required by
section 704, the [Commissioner] Director may make a grant under
this section to any eligible agency that--
(1) * * *
(2) is determined by the [Commissioner] Director to
be able to plan, conduct, administer, and evaluate a
center for independent living consistent with the
standards and assurances set forth in section 725; and
(3) submits an application to the [Commissioner]
Director at such time, in such manner, and containing
such information as the [Commissioner] Director may
require.
(c) Existing Eligible Agencies.--In the administration of the
provisions of this section, the [Commissioner] Director shall
award grants to any eligible agency that has been awarded a
grant under this part by September 30, 1997, unless the
[Commissioner] Director makes a finding that the agency
involved fails to meet program and fiscal standards and
assurances set forth in section 725.
(d) New Centers for Independent Living.--
(1) In general.--If there is no center for
independent living serving a region of the State or a
region is underserved, and the increase in the
allotment of the State is sufficient to support an
additional center for independent living in the State,
the [Commissioner] Director may award a grant under
this section to the most qualified applicant proposing
to serve such region, consistent with the provisions in
the State plan setting forth the design of the State
for establishing a statewide network of centers for
independent living.
(2) Selection.--In selecting from among applicants
for a grant under this section for a new center for
independent living, the [Commissioner] Director--
(A) * * *
* * * * * * *
(e) Order of Priorities.--The [Commissioner] Director shall
be guided by the following order of priorities in allocating
funds among centers for independent living within a State, to
the extent funds are available:
(1) The [Commissioner] Director shall support
existing centers for independent living, as described
in subsection (c), that comply with the standards and
assurances set forth in section 725, at the level of
funding for the previous year.
(2) The [Commissioner] Director shall provide for a
cost-of-living increase for such existing centers for
independent living.
(3) The [Commissioner] Director shall fund new
centers for independent living, as described in
subsection (d), that comply with the standards and
assurances set forth in section 725.
* * * * * * *
(g) Review.--
(1) In general.--The [Commissioner] Director shall
periodically review each center receiving funds under
this section to determine whether such center is in
compliance with the standards and assurances set forth
in section 725. If the [Commissioner] Director
determines that any center receiving funds under this
section is not in compliance with the standards and
assurances set forth in section 725, the [Commissioner]
Director shall immediately notify such center that it
is out of compliance.
(2) Enforcement.--The [Commissioner] Director shall
terminate all funds under this section to such center
90 days after the date of such notification unless the
center submits a plan to achieve compliance within 90
days of such notification and such plan is approved by
the [Commissioner] Director.
SEC. 723. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH
STATE FUNDING EQUALS OR EXCEEDS FEDERAL FUNDING.
(a) Establishment.--
(1) In general.--
(A) Initial year.--
(i) Determination.--The director of a
designated State unit, as provided in
paragraph (2), or the [Commissioner]
Director, as provided in paragraph (3),
shall award grants under this section
for an initial fiscal year if the
[Commissioner] Director determines that
the amount of State funds that were
earmarked by a State for a preceding
fiscal year to support the general
operation of centers for independent
living meeting the requirements of this
part equaled or exceeded the amount of
funds allotted to the State under
subsection (c) or (d) of section 721
for such year.
(ii) Grants.--The director or the
[Commissioner] Director, as
appropriate, shall award such grants,
from the amount of funds so allotted
for the initial fiscal year, to
eligible agencies in the State for the
planning, conduct, administration, and
evaluation of centers for independent
living that comply with the standards
and assurances set forth in section
725.
(iii) Regulation.--The [Commissioner]
Director shall by regulation specify
the preceding fiscal year with respect
to which the [Commissioner] Director
will make the determinations described
in clause (i) and subparagraph (B),
making such adjustments as may be
necessary to accommodate State funding
cycles such as 2-year funding cycles or
State fiscal years that do not coincide
with the Federal fiscal year.
(B) Subsequent years.--For each year
subsequent to the initial fiscal year described
in subparagraph (A), the director of the
designated State unit shall continue to have
the authority to award such grants under this
section if the [Commissioner] Director
determines that the State continues to earmark
the amount of State funds described in
subparagraph (A)(i). If the State does not
continue to earmark such an amount for a fiscal
year, the State shall be ineligible to make
grants under this section after a final year
following such fiscal year, as defined in
accordance with regulations established by the
[Commissioner] Director, and for each
subsequent fiscal year.
(2) Grants by designated state units.--In order for
the designated State unit to be eligible to award the
grants described in paragraph (1) and carry out this
section for a fiscal year with respect to a State, the
designated State agency shall submit an application to
the [Commissioner] Director at such time, and in such
manner as the [Commissioner] Director may require,
including information about the amount of State funds
described in paragraph (1) for the preceding fiscal
year. If the [Commissioner] Director makes a
determination described in subparagraph (A)(i) or (B),
as appropriate, of paragraph (1), the [Commissioner]
Director shall approve the application and designate
the director of the designated State unit to award the
grant and carry out this section.
(3) Grants by commissioner.--If the designated State
agency of a State described in paragraph (1) does not
submit and obtain approval of an application under
paragraph (2), the [Commissioner] Director shall award
the grant described in paragraph (1) to eligible
agencies in the State in accordance with section 722.
(b) Eligible Agencies.--In any State in which the
[Commissioner] Director has approved the State plan required by
section 704, the director of the designated State unit may
award a grant under this section to any eligible agency that--
(1) * * *
* * * * * * *
(g) Review.--
(1) * * *
(2) Enforcement.--The director of the designated
State unit shall terminate all funds under this section
to such center 90 days after--
(A) * * *
* * * * * * *
unless the center submits a plan to achieve compliance
within 90 days and such plan is approved by the
director, or if appealed, by the [Commissioner]
Director.
(h) Onsite Compliance Review.--The director of the designated
State unit shall annually conduct onsite compliance reviews of
at least 15 percent of the centers for independent living that
receive funding under this section in the State. Each team that
conducts onsite compliance review of centers for independent
living shall include at least one person who is not an employee
of the designated State agency, who has experience in the
operation of centers for independent living, and who is jointly
selected by the director of the designated State unit and the
chairperson of or other individual designated by the Council
acting on behalf of and at the direction of the Council. A copy
of this review shall be provided to the [Commissioner]
Director.
(i) Adverse Actions.--If the director of the designated State
unit proposes to take a significant adverse action against a
center for independent living, the center may seek mediation
and conciliation to be provided by an individual or individuals
who are free of conflicts of interest identified by the
chairperson of or other individual designated by the Council.
If the issue is not resolved through the mediation and
conciliation, the center may appeal the proposed adverse action
to the [Commissioner] Director for a final decision.
SEC. 724. CENTERS OPERATED BY STATE AGENCIES.
A State that receives assistance for fiscal year 1993 with
respect to a center in accordance with subsection (a) of this
section (as in effect on the day before the date of enactment
of the Rehabilitation Act Amendments of 1998) may continue to
receive assistance under this part for fiscal year 1994 or a
succeeding fiscal year if, for such fiscal year--
(1) no nonprofit private agency--
(A) submits an acceptable application to
operate a center for independent living for the
fiscal year before a date specified by the
[Commissioner] Director; and
(B) obtains approval of the application under
section 722 or 723; or
(2) after funding all applications so submitted and
approved, the [Commissioner] Director determines that
funds remain available to provide such assistance.
SEC. 725. STANDARDS AND ASSURANCES FOR CENTERS FOR INDEPENDENT LIVING.
(a) * * *
* * * * * * *
(c) Assurances.--The eligible agency shall provide at such
time and in such manner as the [Commissioner] Director may
require, such satisfactory assurances as the [Commissioner]
Director may require, including satisfactory assurances that--
(1) * * *
* * * * * * *
(13) the center will prepare and submit a report to
the designated State unit or the [Commissioner]
Director, as the case may be, at the end of each fiscal
year that contains the information described in
paragraph (8) and information regarding the extent to
which the center is in compliance with the standards
set forth in subsection (b); and
* * * * * * *
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 1999 through 2003] fiscal years 2004 through 2009.
CHAPTER 2--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE
BLIND
* * * * * * *
SEC. 752. PROGRAM OF GRANTS.
(a) In General.--
(1) Authority for grants.--Subject to subsections (b)
and (c), the [Commissioner] Director may make grants to
States for the purpose of providing the services
described in subsection (d) to older individuals who
are blind.
(2) Designated state agency.--The [Commissioner]
Director may not make a grant under subsection (a)
unless the State involved agrees that the grant will be
administered solely by the agency described in section
101(a)(2)(A)(i).
(c) Contingent Formula Grants.--
(1) * * *
(2) Allotments.--For grants under subsection (a) for
a fiscal year described in paragraph (1), the
[Commissioner] Director shall make an allotment to each
State in an amount determined in accordance with
subsection ( j), and shall make a grant to the State of
the allotment made for the State if the State submits
to the [Commissioner] Director an application in
accordance with subsection (i).
(d) Services Generally.--The [Commissioner] Director may not
make a grant under subsection (a) unless the State involved
agrees that the grant will be expended only for purposes of--
(1) * * *
* * * * * * *
(f ) Matching Funds.--
(1) In general.--The [Commissioner] Director may not
make a grant under subsection (a) unless the State
involved agrees, with respect to the costs of the
program to be carried out by the State pursuant to such
subsection, to make available (directly or through
donations from public or private entities) non-Federal
contributions toward such costs in an amount that is
not less than $1 for each $9 of Federal funds provided
in the grant.
* * * * * * *
(h) Requirement Regarding State Plan.--The [Commissioner]
Director may not make a grant under subsection (a) unless the
State involved agrees that, in carrying out subsection (d)(1),
the State will seek to incorporate into the State plan under
section 704 any new methods and approaches relating to
independent living services for older individuals who are
blind.
(i) Application for Grant.--
(1) In general.--The [Commissioner] Director may not
make a grant under subsection (a) unless an application
for the grant is submitted to the [Commissioner]
Director and the application is in such form, is made
in such manner, and contains such agreements,
assurances, and information as the [Commissioner]
Director determines to be necessary to carry out this
section (including agreements, assurances, and
information with respect to any grants under subsection
( j)(4)).
(2) Contents.--An application for a grant under this
section shall contain--
(A) an assurance that the agency described in
subsection (a)(2) will prepare and submit to
the [Commissioner] Director a report, at the
end of each fiscal year, with respect to each
project or program the agency operates or
administers under this section, whether
directly or through a grant or contract, which
report shall contain, at a minimum, information
on--
(i) * * *
* * * * * * *
( j) Amount of Formula Grant.--
(1) * * *
* * * * * * *
(4) Disposition of certain amounts.--
(A) Grants.--From the amounts specified in
subparagraph (B), the [Commissioner] Director
may make grants to States whose population of
older individuals who are blind has a
substantial need for the services specified in
subsection (d) relative to the populations in
other States of older individuals who are
blind.
(B) Amounts.--The amounts referred to in
subparagraph (A) are any amounts that are not
paid to States under subsection (a) as a result
of--
(i) * * *
* * * * * * *
(iii) any State informing the
[Commissioner] Director that the State
does not intend to expend the full
amount of the allotment made for the
State under subsection (a).
(C) Conditions.--The [Commissioner] Director
may not make a grant under subparagraph (A)
unless the State involved agrees that the grant
is subject to the same conditions as grants
made under subsection (a).
SEC. 753. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
chapter such sums as may be necessary for each of the [fiscal
years 1999 through 2003] fiscal years 2004 through 2009.
----------
HELEN KELLER NATIONAL CENTER ACT
TITLE II--REAUTHORIZATION OF THE HELEN KELLER NATIONAL CENTER FOR DEAF-
BLIND YOUTHS AND ADULTS
* * * * * * *
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 [1999 through 2003] 2004
through 2009. 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 [1999 through 2003] 2004
through 2009. Such sums shall remain available until expended.
* * * * * * *
MINORITY VIEWS
INTRODUCTION
We have seen first hand the hardships that our nation's
poor economy is placing on American workers and those who are
unemployed. Congress has traditionally responded to the
employment, training and education needs of workers by
constructing bipartisan legislation to provide unemployment
compensation and strengthen the job training system when
needed. Unfortunately, this bill has been rushed to the floor
in partisan fashion, and worse, fails to adequately respond to
the needs of our workers.
The key failure of this legislation is that it does not
respond to the economic realities that American families are
facing today. We have 8.3 million individuals who are out of
work. Growing budget deficits are projected to top $300 billion
for this fiscal year. We have a President who is seeking
additional tax cuts that will drive our deficit even higher,
leading to higher interest rates on credit cards and home
mortgages. Possibly, most alarming, is the fact that three
unemployed individuals are competing for every job.
In light of these economic conditions, we have grave
concerns about H.R. 1261. First, this bill fails to respond to
the number one need of unemployed workers--continued
unemployment benefits. The last unemployment extension signed
into law failed to provide for the 1.2 million individuals who
had exhausted their jobless benefits. Several million more are
likely to exhaust unemployment benefits at the end of May. The
Congressional Republican Leadership and President Bush
purposefully decided not to cover these individuals. These
individuals are typically the hardest to employ and are most in
need of continued benefits.
The bill which the Majority brought to full Committee
markup contained President Bush's Personal Reemployment
Accounts (PRA) proposal as a response to the needs of jobless
Americans. The PRA proposal would provide those at risk of
exhausting their unemployment benefits with a meager job
training voucher, while cutting them off from other job
training support services for one year. This proposal is
misguided and fails to address the urgent needs of unemployed
Americans. Fortunately, the Majority struck this provision from
their bill during Committee consideration.
H.R. 1261 would also block grant adult, dislocated worker
and Employment service funding streams. President Bush has
called for over $700 million in cuts to our job training
programs for FY 2003 and 2004 in addition to a $300 million FY
2002 WIA funding rescission.\1\ Block grant proposals such as
this are shortsighted and likely to lead to reduced funding for
job training. Millions of Americans are in need of additional
training and education to secure better jobs. This proposal
would severely hamper efforts to ensure that WIA has sufficient
funding and jeopardizes the quality of training provided to
workers.
---------------------------------------------------------------------------
\1\ Appendix 1--Congressional Research Service--Job Training Cuts
in FY 2002 and FY 2003.
---------------------------------------------------------------------------
Unfortunately, the stability of WIA funding to states and
localities is another casualty of block granting these streams.
The Majority bill institutes new formulas for the distribution
of WIA funding to states and localities. These funding formula
changes produced wide swings in the amount states would lose or
gain compared to allocations in previous years, some as high as
10 percent with losses totaling up to $45 million. The Majority
did adopt an amendment by Mrs. McCarthy to guarantee each state
at least the same amount of WIA funding they received in fiscal
year 2003. However, states that would have lost funding under
the base bill will continue to receive less funding than they
would have received under current law in future years.
Additionally, WIA should not require mandatory partners to
contribute a set percentage of their funds for one stop center
operations while also eliminating their seat on local workforce
boards. This bill allows governors to take unspecified amounts
of funding presently used to provide critical adult education,
vocational rehabilitation, veterans employment and other
services and instead use it for administrative expenses and
infrastructure costs.
We are particularly disappointed that this bill would seek
to carve out funding of mandatory partners such as those that
provide funding for veterans employment and vocational
rehabilitation. At a time when our men and women in the
military are fighting overseas, it is unacceptable that we are
attacking the programs that will help them find jobs when they
return. In addition, 37 State vocational rehabilitation
agencies presently do not have the resources necessary to serve
all individuals with disabilities. Removing resources from this
cash strapped system would only deny more services to
individuals with disabilities--the very services they need to
achieve employment. We should instead seek to provide
operational funding for one-stop centers through a separate
line item.
This legislation also denies services to in-school youth.
While the base bill does permit a measly 30 percent of local
funding for in-school youth, this remains insufficient. Our
existing youth job training programs are designed to respond to
the needs of youth before they drop out of school. This
legislation restricts the ability of local communities to
respond to their youth's needs. We should instead concentrate
our efforts on preventing those currently in school from
dropping out.
The legislation's changes to youth programs also affected
youth funding formulas. These changes had similar impacts to
those sought by the majority to the adult, dislocated workers
and employment service funding streams. Fortunately, Ms.
McCarthy's hold-harmless amendment, as described above, also
applied to youth programs under WIA.
Lastly, this legislation eliminates existing protections
and safeguards against the participation of low quality and
fly-by-night providers. Rather than embrace upgraded quality
and accountability, as we did in the President's No Child Left
Behind Act, this bill empowers governors to allow low quality
training providers to participate in WIA programs. Shouldn't we
ask more of those who provide training with limited Federal
resources? This will result in our underemployed and unemployed
receiving substandard education and training services when they
truly are in need of the most effective services possible.
AMENDMENTS
Democratic Members offered a series of Amendments to
address the key deficiencies in this legislation.
Mr. Kildee offered an amendment which would have provided
immediate and future extended federal unemployment benefits.
The last extension of unemployment benefits signed into law in
January provided extended benefits to some, but not all of the
nation's unemployed. This amendment directly responded to the
real needs of the American workforce by providing funds to
extend unemployment benefits to the estimated 1.2 million
workers who have exhausted their Federal unemployment benefits
and are still unable to find work. In addition, this amendment
would have provided funds to extend unemployment benefits to
September, when the current extension expires at the end of
May. Unfortunately, this amendment was defeated on a party line
vote.
Mr. Ryan offered an amendment to allow communities across
America to hire 100,000 police, fire, medical or rescue
personnel who are vital first responders in a terrorist attack.
Communities are in desperate need of first responders in our
time of heightened concern over possible terrorist acts and the
war in Iraq. Since September 11, our communities and towns have
been forced to require police and other individuals involved in
public safety to log many hours of overtime. In addition, this
amendment would increase our supply of jobs at a time when job
openings are scarce. Unfortunately, this amendment was defeated
on a party line vote. Appendix 2 of these views shows the
number of first responders each state would have been able to
hire under the Ryan amendment.
Mr. Kildee offered an amendment that provided a Democratic
view on reauthorization of our WIA programs. This amendment,
which is comprised of a complete substitute, would have made
positive changes to the WIA system. Included among those
changes was expanded access to WIA training services,
additional summer and afterschool job opportunities for youth,
improved reporting to expand participation among qualified WIA
education and training providers, and strengthened WIA
governance structures.
Specifically, the substitute would:
Make clear that individuals may receive
core, intensive, or training services as appropriate
and in any sequence as the individual situation
warrants (recent DOL data has indicated that access to
training has declined from over 75% to approximately
35% from PY 1998-2000, a \2/3\ drop from 312,579 to
84,358 adults receiving training services);
Permit states and local areas to serve the
long-term unemployed under dislocated workers services
if adequate funds exist;
Permit one-stop centers to provide incumbent
worker training services to upgrade worker skills or
prevent layoffs;
Authorize the YES to WORK program, which
provides funds for summer and after-school employment
opportunities, workforce preparation and career
awareness activities for youth aged 14-21 who are in-
school;
Modify training provider certification
requirements to limit required information to WIA-
funded participants within an individual program, not
all enrolled students;
Make clear that individuals may use both
Pell grants and ITAs to fund training services;
Expand availability of English literacy
training and integrated training for individuals with
limited English skills;
Clarify the mission of local boards to
include local workforce development, strategic
planning, and one-stop system development;
Provide a separate line item authorization
for state and local boards and one-stop center
operations to prevent WIA training funds from being
diverted for program infrastructure and administration;
Require states and localities to encourage
the co-location of all partner services in order to
maximize efficiency and minimize duplication;
Improve data reporting on program
performance and use of funds to monitor federal, state
and local use of funds, delivery of services and
program outcomes, in a timely manner;
Adjust performance measures to eliminate
disincentives to serving populations with employment
barriers such as limited English, lack of a high school
diploma or GED, limited employment history or
disabilities, and reflect local labor market
conditions;
Reauthorize WIA, adult education, and
vocational rehabilitation Acts through 2008.
This substitute included none of the harmful provisions
contained in the original bill. Unfortunately, the substitute
was defeated on a party line vote.
Mr. Holt offered an amendment to reverse the $650 million
in cuts to WIA programs called for by the Bush Administration
over the past 2 years. These cuts have been enormously harmful
to establishing well-run job training and education programs
for unemployed and underemployed workers. Unfortunately, this
amendment was defeated on a party line vote.
Mr. Tierney offered an amendment to correct a major
deficiency in the bill. Mr. Tierney's amendment would have
reversed the block granting of the adult, dislocated worker
andemployment service funding streams. Unfortunately, this amendment
was defeated on a party line vote.
Mr. Davis offered an amendment to revert to current law on
the appointment structure of the Rehabilitation Commissioner.
Under current law, the Rehabilitation Commissioner is
Presidentially appointed and Senate confirmed. The bill would
make this posisiton appointed by the Secretary of Education.
Maintaining this position as a Presidentially appointed and
Senate confirmed position is critical to ensuring that
vocational rehabilitation has a central role in improving the
lives of disabled adults. Demoting this position would only
reduce the influence that the Rehabilitation Commissioner would
have on policy within the Administration. An amendment by Mr.
Osborne was accepted that grandfathered in the existing
Rehabilitation Commissioner, Ms. Joanne Wilson. Unfortunately,
this amendment allowed the policy in the base bill to continue
after the expiration of Ms. Wilson's term. The amendment by Mr.
Davis was defeated on a near party line vote.
Ms. McCarthy offered an amendment to place a hold-harmless
on WIA funding for adult dislocated worker, employment service
and youth programs. As described above, this amendment was
essential to prevent states from losing millions of dollars in
job training funds. This amendment was accepted by voice vote.
Mr. Van Hollen offered an amendment to reinstate the civil
rights protections in WIA. The bill repeals a critical civil
rights protection for employees of organizations that provide
job-training services by allowing organizations to discriminate
in hiring based on religion. This prohibition has been in place
since President Reagan signed the predecessor Act in 1982. This
action is but one of many attempts by the Majority to allow
organizations providing vital social services and job training
activities to discriminate in hiring staff with federal funds.
During the debate on the measure, the Majority was unable to
provide one example of a faith-based organization that would be
unable to participate in WIA because of the current anti-
discrimination provision. Mr. Van Hollen's amendment failed on
a party line vote.
CONCLUSION
Our country needs more jobs and better opportunities for
American workers to receive training for these jobs. This bill
fails on both accounts. In the short term extending
unemployment benefits, coupled with the assistance that
unemployed workers can receive through one-stop service
centers, will provide workers with the means to achieve high
paying jobs. We need to address the needs of our unemployed
now, while they are struggling to pay their mortgage and put
food on the table for their families. The base bill fails to
address these concerns and squanders resources better used to
provide immediate help to our unemployed workers.
George Miller.
Major R. Owens.
Robert E. Andrews.
Ruben Hinojosa.
John F. Tierney.
Dennis J. Kucinich.
Rush Holt.
Betty McCollum.
Ed Case.
Denise L. Majette.
Tim Ryan.
Dale E. Kildee.
Donald M. Payne.
Lynn C. Woolsey.
Carolyn McCarthy.
Ron Kind.
David Wu.
Susan A. Davis.
Danny K. Davis.
Raul M. Grijalva.
Chris Van Hollen.
Timothy H. Bishop.
APPENDIX 1.--CONGRESSIONAL RESEARCH SERVICE--JOB TRAINING CUTS IN FY 2002 AND FY 2003
[Workforce Investment Act funding, dollars in thousands]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Percentage
Percentage difference
Difference difference between
FY2002 FY2003 between FY2003 between FY2003 FY2004 FY2004
appropriation appropriation a and FY 2002 and FY2002 request request and
appropriation a appropriation a FY2002
appropriation
--------------------------------------------------------------------------------------------------------------------------------------------------------
WIA Total................................................ $5,665,364 $5,224,495 -$440,869 -7.78 $4,959,536 -12.46
--------------------------------------------------------------------------------------------------------------------------------------------------------
Adult Activities......................................... 950,000 900,000 -50,000 -5.26 900,000 -5.26
Dislocated Worker Activities............................. 1,549,000 1,463,770 -85,230 -5.50 1,383,040 -10.71
Formula Grants to State.............................. (1,239,200) (1,157,162) (82,038) -6.62 (1,106,432) -10.71
National Emergency Grants............................ (309,800) b (306,608) (3,192) -1.03 (276,608) -10.71
Youth Activities......................................... 1,127,965 1,000,965 -127,000 -11.26 1,000,965 -11.26
Youth Opportunity Grants................................. 225,100 44,500 -180,600 -80.23 0 -100.00
Job Corps................................................ 1,458,732 1,518,550 59,818 4.10 1,565,883 7.35
Native Americans......................................... 57,000 56,000 -1,000 -1.75 55,000 -3.51
Migrants & Seasonal Farmworkers.......................... c 79,751 c 77,326 -2,425 -3.04 0 -100.00
Veterans Employment d.................................... 7,550 7,425 -125 -1.66 7,550 0.00
Pilots, Demos & Research................................. 130,149 76,351 -53,798 -41.34 35,000 -73.11
Evaluation............................................... 9,098 9,098 0 0.00 9,098 0.00
Other.................................................... 16,019 15,510 -509 -3.18 3,000 -81.27
Responsible Reintegration for Young Offenders............ 55,000 55,000 0 0.00 0 -100.00
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Department of Labor: http://www.doleta.gov/budget/02app$.txt, http://www.doleta.gov/budget/04req$.pdf, and H.J. Res. 2 (Conference Rept. 108-
10).
a Does NOT include the across the board offset.
b Includes $30 million to fund National Emergency Grants authorized in the Trade Act of 2002 to support State administration of health insurance tax
credits for eligible participants.
c For FY2002, $1,119,000 for training and technical assistance is shown in the ``Other'' category; for FY2003, $510,000 for these activities is shown in
the ``Other'' category.
d The Veterans Program is administered by DOL Veterans Employment and Training Services; all other WIA programs are administered by DOL's Training and
Employment Services.
APPENDIX 2.--NUMBER OF FIRST RESPONDERS HIRED UNDER THE RYAN AMENDMENT
------------------------------------------------------------------------
First
First responders
State responders per cong.
per state dist.
------------------------------------------------------------------------
United States................................. 100,000 230
Alabama....................................... 1,471 210
Alaska........................................ 500 500
Arizona....................................... 1,803 225
Arkansas...................................... 863 216
California.................................... 11,952 226
Colorado...................................... 1,478 211
Connecticut................................... 1,120 224
Delaware...................................... 500 500
District of Columbia.......................... 500 500
Florida....................................... 5,655 226
Georgia....................................... 2,865 220
Hawaii........................................ 500 500
Idaho......................................... 500 250
Illinois...................................... 4,248 224
Indiana....................................... 2,043 227
Iowa.......................................... 941 188
Kansas........................................ 865 216
Kentucky...................................... 1,336 223
Louisiana..................................... 1,470 210
Maine......................................... 500 250
Maryland...................................... 1,803 225
Massachusetts................................. 2,135 214
Michigan...................................... 3,375 225
Minnesota..................................... 1,653 207
Mississippi................................... 918 230
Missouri...................................... 1,877 209
Montana....................................... 500 500
Nebraska...................................... 527 176
Nevada........................................ 679 226
New Hampshire................................. 500 250
New Jersey.................................... 2,875 221
New Mexico.................................... 571 190
New York...................................... 6,491 224
North Carolina................................ 2,783 214
North Dakota.................................. 500 500
Ohio.......................................... 3,844 214
Oklahoma...................................... 1,131 226
Oregon........................................ 1,141 228
Pennsylvania.................................. 4,157 219
Puerto Rico................................... 1,256 1,256
Rhode Island.................................. 500 250
South Carolina................................ 1,341 224
South Dakota.................................. 500 500
Tennessee..................................... 1,920 213
Texas......................................... 7,389 231
Utah.......................................... 728 243
Vermont....................................... 500 500
Virginia...................................... 2,432 221
Washington.................................... 2,013 224
West Virginia................................. 552 184
Wisconsin..................................... 1,798 225
Wyoming....................................... 500 500
------------------------------------------------------------------------