[105th Congress Public Law 220]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ220.105]
[[Page 935]]
WORKFORCE INVESTMENT ACT OF 1998
[[Page 112 STAT.936]]
Public Law 105-220
105th Congress
An Act
To consolidate, coordinate, and improve employment, training, literacy,
and
vocational rehabilitation programs in the United States, and for other
purposes. <<NOTE: Aug. 7, 1998 - [H.R. 1385]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. <<NOTE: Workforce Investment
Act of 1998.>>
(a) <<NOTE: 20 USC 9201 note.>> Short Title.--This Act may be cited
as the ``Workforce Investment Act of 1998''.
(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 A--Workforce Investment Definitions
Sec. 101. <<NOTE: 29 USC 2801.>> Definitions.
Subtitle B--Statewide and Local Workforce Investment Systems
Sec. 106. Purpose.
Chapter 1--State Provisions
Sec. 111. State workforce investment boards.
Sec. 112. State plan.
Chapter 2--Local Provisions
Sec. 116. Local workforce investment areas.
Sec. 117. Local workforce investment boards.
Sec. 118. Local plan.
Chapter 3--Workforce Investment Activities Providers
Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
Sec. 123. Identification of eligible providers of youth activities.
Chapter 4--Youth Activities
Sec. 126. General authorization.
Sec. 127. State allotments.
Sec. 128. Within State allocations.
Sec. 129. Use of funds for youth activities.
Chapter 5--Adult and Dislocated Worker Employment and Training
Activities
Sec. 131. General authorization.
Sec. 132. State allotments.
Sec. 133. Within State allocations.
Sec. 134. Use of funds for employment and training activities.
Chapter 6--General Provisions
Sec. 136. Performance accountability system.
Sec. 137. Authorization of appropriations.
[[Page 112 STAT.937]]
Subtitle C--Job Corps
Sec. 141. Purposes.
Sec. 142. Definitions.
Sec. 143. Establishment.
Sec. 144. Individuals eligible for the Job Corps.
Sec. 145. Recruitment, screening, selection, and assignment of
enrollees.
Sec. 146. Enrollment.
Sec. 147. Job Corps centers.
Sec. 148. Program activities.
Sec. 149. Counseling and job placement.
Sec. 150. Support.
Sec. 151. Operating plan.
Sec. 152. Standards of conduct.
Sec. 153. Community participation.
Sec. 154. Industry councils.
Sec. 155. Advisory committees.
Sec. 156. Experimental, research, and demonstration projects.
Sec. 157. Application of provisions of Federal law.
Sec. 158. Special provisions.
Sec. 159. Management information.
Sec. 160. General provisions.
Sec. 161. Authorization of appropriations.
Subtitle D--National Programs
Sec. 166. Native American programs.
Sec. 167. Migrant and seasonal farmworker programs.
Sec. 168. Veterans' workforce investment programs.
Sec. 169. Youth opportunity grants.
Sec. 170. Technical assistance.
Sec. 171. Demonstration, pilot, multiservice, research, and multistate
projects.
Sec. 172. Evaluations.
Sec. 173. National emergency grants.
Sec. 174. Authorization of appropriations.
Subtitle E--Administration
Sec. 181. Requirements and restrictions.
Sec. 182. Prompt allocation of funds.
Sec. 183. Monitoring.
Sec. 184. Fiscal controls; sanctions.
Sec. 185. Reports; recordkeeping; investigations.
Sec. 186. Administrative adjudication.
Sec. 187. Judicial review.
Sec. 188. Nondiscrimination.
Sec. 189. Administrative provisions.
Sec. 190. Reference.
Sec. 191. State legislative authority.
Sec. 192. Workforce flexibility plans.
Sec. 193. Use of certain real property.
Sec. 194. Continuation of State activities and policies.
Sec. 195. General program requirements.
Subtitle F--Repeals and Conforming Amendments
Sec. 199. Repeals.
Sec. 199A. Conforming amendments.
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.
[[Page 112 STAT.938]]
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 III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
Subtitle A--Wagner-Peyser Act
Sec. 301. Definitions.
Sec. 302. Functions.
Sec. 303. Designation of State agencies.
Sec. 304. Appropriations.
Sec. 305. Disposition of allotted funds.
Sec. 306. State plans.
Sec. 307. Repeal of Federal advisory council.
Sec. 308. Regulations.
Sec. 309. Employment statistics.
Sec. 310. Technical amendments.
Sec. 311. Effective date.
Subtitle B--Linkages With Other Programs
Sec. 321. Trade Act of 1974.
Sec. 322. Veterans' employment programs.
Sec. 323. Older Americans Act of 1965.
Subtitle C--Twenty-First Century Workforce Commission
Sec. 331. Short title.
Sec. 332. Findings.
Sec. 333. Definitions.
Sec. 334. Establishment of Twenty-First Century Workforce Commission.
Sec. 335. Duties of the Commission.
Sec. 336. Powers of the Commission.
Sec. 337. Commission personnel matters.
Sec. 338. Termination of the Commission.
Sec. 339. Authorization of appropriations.
Subtitle D--Application of Civil Rights and Labor-Management Laws to the
Smithsonian Institution
Sec. 341. Application of civil rights and labor-management laws to the
Smithsonian Institution.
TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998
Sec. 401. Short title.
Sec. 402. Title.
Sec. 403. General provisions.
Sec. 404. Vocational rehabilitation services.
Sec. 405. Research and training.
Sec. 406. Professional development and special projects and
demonstrations.
Sec. 407. National Council on Disability.
Sec. 408. Rights and advocacy.
Sec. 409. Employment opportunities for individuals with disabilities.
Sec. 410. Independent living services and centers for independent
living.
Sec. 411. Repeal.
Sec. 412. Helen Keller National Center Act.
Sec. 413. President's Committee on Employment of People With
Disabilities.
Sec. 414. Conforming amendments.
[[Page 112 STAT.939]]
TITLE V--GENERAL PROVISIONS
Sec. 501. State unified plan.
Sec. 502. Definitions for indicators of performance.
Sec. 503. Incentive grants.
Sec. 504. Privacy.
Sec. 505. Buy-American requirements.
Sec. 506. Transition provisions.
Sec. 507. Effective date.
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
SEC. 101. <<NOTE: 29 USC 2801.>> DEFINITIONS.
In this title:
(1) Adult.--Except in sections 127 and 132, the term
``adult'' means an individual who is age 18 or older.
(2) 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) Area vocational education school.--The term ``area
vocational education school'' 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).
(4) 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) Case management.--The term ``case management'' means the
provision of a client-centered approach in the
delivery of services, designed--
(A) to prepare and coordinate comprehensive
employment plans, such as service strategies, for
participants to ensure access to necessary workforce
investment activities and supportive services, using,
where feasible, computer-based technologies; and
(B) to provide job and career counseling during
program participation and after job placement.
(6) Chief elected official.--The term ``chief elected
official'' means--
(A) the chief elected executive officer of a unit of
general local government in a local area; and
(B) in a case in which a local area includes more
than one unit of general local government, the
individuals designated under the agreement described in
section 117(c)(1)(B).
(7) 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.
[[Page 112 STAT.940]]
(8) Customized training.--The term ``customized
training '' means training--
(A) that is designed to meet the special
requirements of an employer (including a group of
employers);
(B) that is conducted with a commitment by the
employer to employ an individual on successful
completion of the training; and
(C) for which the employer pays for not less than 50
percent of the cost of the training.
(9) Dislocated worker.--The term ``dislocated worker'' means
an individual who--
(A)(i) has been terminated or laid off, or who has
received a notice of termination or layoff, from
employment;
(ii)(I) is eligible for or has exhausted entitlement
to unemployment compensation; or
(II) has been employed for a duration sufficient to
demonstrate, to the appropriate entity at a one-stop
center referred to in section 134(c), attachment to the
workforce, but is not eligible for unemployment
compensation due to insufficient earnings or having
performed services for an employer that were not covered
under a State unemployment compensation law; and
(iii) is unlikely to return to a previous industry
or occupation;
(B)(i) has been terminated or laid off, or has
received a notice of termination or layoff, from
employment as a result of any permanent closure of, or
any substantial layoff at, a plant, facility, or
enterprise;
(ii) is employed at a facility at which the employer
has made a general announcement that such facility will
close within 180 days; or
(iii) for purposes of eligibility to receive
services other than training services described in
section 134(d)(4), intensive services described in
section 134(d)(3), or supportive services, is employed
at a facility at which the employer has made a general
announcement that such facility will close;
(C) was self-employed (including employment as a
farmer, a rancher, or a fisherman) but is unemployed as
a result of general economic conditions in the community
in which the individual resides or because of natural
disasters; or
(D) is a displaced homemaker.
(10) Displaced homemaker.--The term ``displaced homemaker''
means an individual who has been providing unpaid services to
family members in the home and who--
(A) has been dependent on the income of another
family member but is no longer supported by that income;
and
(B) is unemployed or underemployed and is
experiencing difficulty in obtaining or upgrading
employment.
(11) Economic development agencies.--The term ``economic
development agencies'' includes local planning and zoning
commissions or boards, community development agencies, and other
local agencies and institutions responsible for regulating,
promoting, or assisting in local economic development.
(12) Eligible provider.--The term ``eligible provider'',
used with respect to--
[[Page 112 STAT.941]]
(A) training services, means a provider who is
identified in accordance with section 122(e)(3);
(B) intensive services, means a provider who is
identified or awarded a contract as described in section
134(d)(3)(B);
(C) youth activities, means a provider who is
awarded a grant or contract in accordance with section
123; or
(D) other workforce investment activities, means a
public or private entity selected to be responsible for
such activities, such as a one-stop operator designated
or certified under section 121(d).
(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.
(14) Employment and training activity.--The term
``employment and training activity'' means an activity described
in section 134 that is carried out for an adult or dislocated
worker.
(15) Family.--The term ``family'' means two or more persons
related by blood, marriage, or decree of court, who are living
in a single residence, and are included in one or more of the
following categories:
(A) A husband, wife, and dependent children.
(B) A parent or guardian and dependent children.
(C) A husband and wife.
(16) Governor.--The term ``Governor'' means the chief
executive of a State.
(17) 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.
(18) Labor market area.--The term ``labor market area''
means an economically integrated geographic area within which
individuals can reside and find employment within a reasonable
distance or can readily change employment without changing their
place of residence. Such an area shall be identified in
accordance with criteria used by the Bureau of Labor Statistics
of the Department of Labor in defining such areas or similar
criteria established by a Governor.
(19) Literacy.--The term ``literacy'' has the meaning given
the term in section 203.
[[Page 112 STAT.942]]
(20) Local area.--The term ``local area'' means a local
workforce investment area designated under section 116.
(21) Local board.--The term ``local board'' means a local
workforce investment board established under section 117.
(22) Local performance measure.--The term ``local
performance measure'' means a performance measure established
under section 136(c).
(23) Local educational agency.--The term ``local educational
agency'' has the meaning given the term in section 14101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
(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) Low-income individual.--The term ``low-income
individual'' means an individual who--
(A) receives, or is a member of a family that
receives, cash payments under a Federal, State, or local
income-based public assistance program;
(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;
(C) is a member of a household that receives (or has
been determined within the 6-month period prior to
application for the program involved to be eligible to
receive) food stamps pursuant to the Food Stamp Act of
1977 (7 U.S.C. 2011 et seq.);
(D) 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) is a foster child on behalf of whom State or
local government payments are made; or
(F) 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) 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) Offender.--The term ``offender'' means any adult or
juvenile--
[[Page 112 STAT.943]]
(A) who is or has been subject to any stage of the
criminal justice process, for whom services under this
Act may be beneficial; or
(B) who requires assistance in overcoming artificial
barriers to employment resulting from a record of arrest
or conviction.
(28) Older individual.--The term ``older individual'' means
an individual age 55 or older.
(29) One-stop operator.--The term ``one-stop operator''
means 1 or more entities designated or certified under section
121(d).
(30) One-stop partner.--The term ``one-stop partner''
means--
(A) an entity described in section 121(b)(1); and
(B) an entity described in section 121(b)(2) that is
participating, with the approval of the local board and
chief elected official, in the operation of a one-stop
delivery system.
(31) On-the-job training.--The term ``on-the-job training ''
means training by an employer that is provided to a paid
participant while engaged in productive work in a job that--
(A) provides knowledge or skills essential to the
full and adequate performance of the job;
(B) provides reimbursement to the employer of up to
50 percent of the wage rate of the participant, for the
extraordinary costs of providing the training and
additional supervision related to the training; and
(C) is limited in duration as appropriate to the
occupation for which the participant is being trained,
taking into account the content of the training, the
prior work experience of the participant, and the
service strategy of the participant, as appropriate.
(32) 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) 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) Postsecondary educational institution.--The term
``postsecondary educational institution'' means an institution
of higher education, as defined in section 481 of the Higher
Education Act of 1965 (20 U.S.C. 1088).
(36) Poverty line.--The term ``poverty line'' means the
poverty line (as defined by the Office of Management and
[[Page 112 STAT.944]]
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) 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) 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) the establishment of onsite contact with
employers and employee representatives--
(i) immediately after the State is notified of
a current or projected permanent closure or mass
layoff; or
(ii) in the case of a disaster, immediately
after the State is made aware of mass job
dislocation as a result of such disaster;
(B) the provision of information and access to
available employment and training activities;
(C) assistance in establishing a labor-management
committee, voluntarily agreed to by labor and
management, with the ability to devise and implement a
strategy for assessing the employment and training needs
of dislocated workers and obtaining services to meet
such needs;
(D) the provision of emergency assistance adapted to
the particular closure, layoff, or disaster; and
(E) the provision of assistance to the local
community in developing a coordinated response and in
obtaining access to State economic development
assistance.
(39) 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) Secondary school.--The term ``secondary school'' has
the meaning given the term in section 14101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 8801).
(41) Secretary.--The term ``Secretary'' means the Secretary
of Labor, and the term means such Secretary for purposes of
section 503.
(42) 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) 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) State board.--The term ``State board'' means a State
workforce investment board established under section 111.
(45) State performance measure.--The term ``State
performance measure'' means a performance measure established
under section 136(b).
(46) Supportive services.--The term ``supportive services''
means services such as transportation, child care, dependent
[[Page 112 STAT.945]]
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) 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) 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) Veteran; related definition.--
(A) Veteran.--The term ``veteran'' means an
individual who served in the active military, naval, or
air service, and who was discharged or released from
such service under conditions other than dishonorable.
(B) Recently separated veteran.--The term ``recently
separated veteran'' means any veteran who applies for
participation under this title within 48 months after
the discharge or release from active military, naval, or
air service.
(50) 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) Workforce investment activity.--The term ``workforce
investment activity'' means an employment and training activity,
and a youth activity.
(52) 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) Youth council.--The term ``youth council'' means a
council established under section 117(h).
Subtitle B--Statewide and Local Workforce Investment Systems
SEC. 106. <<NOTE: 29 USC 2811.>> 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.
CHAPTER 1--STATE PROVISIONS
SEC. 111. <<NOTE: Establishment. 29 USC 2821.>> STATE WORKFORCE
INVESTMENT BOARDS.
(a) In General.--The Governor of a State shall establish a State
workforce investment board to assist in the development
[[Page 112 STAT.946]]
of the State plan described in section 112 and to carry out the other
functions described in subsection (d).
(b) Membership.--
(1) In general.--The State Board shall include--
(A) the Governor;
(B) 2 members of each chamber of the State
legislature, appointed by the appropriate presiding
officers of each such chamber; and
(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.
(2) Authority and regional representation of board
members.--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
regions of the State, including urban, rural, and suburban
areas.
(3) Majority.--A majority of the members of the State Board
shall be representatives described in paragraph (1)(C)(i).
[[Page 112 STAT.947]]
(c) Chairman.--The Governor shall select a chairperson for the State
Board from among the representatives described in subsection
(b)(1)(C)(i).
(d) Functions.--The State Board shall assist the Governor in--
(1) development of the State plan;
(2) development and continuous improvement of a statewide
system of activities that are funded under this subtitle or
carried out through a one-stop delivery system described in
section 134(c) that receives funds under this subtitle (referred
to in this title as a ``statewide workforce investment
system''), including--
(A) development of linkages in order to assure
coordination and nonduplication among the programs and
activities described in section 121(b); and
(B) review of local plans;
(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));
(4) designation of local areas as required in section 116;
(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);
(6) development and continuous improvement of comprehensive
State performance measures, including State adjusted levels of
performance, to assess the effectiveness of the workforce
investment activities in the State as required under section
136(b);
(7) preparation of the annual report to the Secretary
described in section 136(d);
(8) development of the statewide employment statistics
system described in section 15(e) of the Wagner-Peyser Act; and
(9) development of an application for an incentive grant
under section 503.
(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.
(f ) Conflict of Interest.--A member of a State board may not--
(1) vote on a matter under consideration by the State
board--
[[Page 112 STAT.948]]
(A) regarding the provision of services by such
member (or by an entity that such member represents); or
(B) that would provide direct financial benefit to
such member or the immediate family of such member; or
(2) engage in any other activity determined by the Governor
to constitute a conflict of interest as specified in the State
plan.
(g) Sunshine Provision.--The State board shall make available to the
public, on a regular basis through open meetings, information regarding
the activities of the State board, including information regarding the
State plan prior to submission of the plan, information regarding
membership, and, on request, minutes of formal meetings of the State
board.
SEC. 112. <<NOTE: 29 USC 2822.>> 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 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) a description of the State board, including a
description of the manner in which such board collaborated in
the development of the State plan and a description of how the
board will continue to collaborate in carrying out the functions
described in section 111(d);
(2) a description of State-imposed requirements for the
statewide workforce investment system;
(3) a description of the State performance accountability
system developed for the workforce investment activities to be
carried out through the statewide workforce investment system,
that includes information identifying State performance measures
as described in section 136(b)(3)(A)(ii);
(4) information describing--
(A) the needs of the State with regard to current
and projected employment opportunities, by occupation;
(B) the job skills necessary to obtain such
employment opportunities;
(C) the skills and economic development needs of the
State; and
(D) the type and availability of workforce
investment activities in the State;
(5) an identification of local areas designated in the
State, including a description of the process used for the
designation of such areas;
(6) an identification of criteria to be used by chief
elected officials for the appointment of members of local boards
based on the requirements of section 117;
(7) the detailed plans required under section 8 of the
Wagner-Peyser Act (29 U.S.C. 49g);
(8)(A) a description of the procedures that will be taken by
the State to assure coordination of and avoid duplication
among--
[[Page 112 STAT.949]]
(i) workforce investment activities authorized under
this title;
(ii) other activities authorized under this title;
(iii) programs authorized under the Wagner-Peyser
Act (29 U.S.C. 49 et seq.), title II of this Act, title
I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et
seq.), part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), and section 6(d)(4) of the Food
Stamp Act of 1977 (7 U.S.C. 2015(d)(4)), activities
authorized under title V of the Older Americans Act of
1965 (42 U.S.C. 3056 et seq.), and postsecondary
vocational education activities authorized under the
Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2301 et seq.);
(iv) work programs authorized under section 6(o) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
(v) activities authorized under chapter 2 of title
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(vi) activities authorized under chapter 41 of title
38, United States Code;
(vii) employment and training activities carried out
under the Community Services Block Grant Act (42 U.S.C.
9901 et seq.);
(viii) activities authorized under the National and
Community Service Act of 1990 (42 U.S.C. 12501 et seq.);
(ix) employment and training activities carried out
by the Department of Housing and Urban Development; and
(x) programs authorized under State unemployment
compensation laws (in accordance with applicable Federal
law); and
(B) a description of the common data collection and
reporting processes used for the programs and activities
described in subparagraph (A);
(9) a description of the process used by the State,
consistent with section 111(g), to provide an opportunity for
public comment, including comment by representatives of
businesses and representatives of labor organizations, and input
into development of the plan, prior to submission of the plan;
(10) information identifying how the State will use funds
the State receives under this subtitle to leverage other
Federal, State, local, and private resources, in order to
maximize the effectiveness of such resources, and to expand the
participation of business, employees, and individuals in the
statewide workforce investment system;
(11) assurances that the State will provide, in accordance
with section 184 for fiscal control and fund accounting
procedures that may be necessary to ensure the proper
disbursement of, and accounting for, funds paid to the State
through the allotments made under sections 127 and 132;
(12)(A) a description of the methods and factors the State
will use in distributing funds to local areas for youth
activities and adult employment and training activities under
sections 128(b)(3)(B) and 133(b)(3)(B), including--
(i) a description of how the individuals and
entities represented on the State board were involved in
determining such methods and factors of distribution;
and
[[Page 112 STAT.950]]
(ii) a description of how the State consulted with
chief elected officials in local areas throughout the
State in determining such distribution;
(B) assurances that the funds will be distributed equitably
throughout the State, and that no local areas will suffer
significant shifts in funding from year to year; and
(C) a description of the formula prescribed by the Governor
pursuant to section 133(b)(2)(B) for the allocation of funds to
local areas for dislocated worker employment and training
activities;
(13) information specifying the actions that constitute a
conflict of interest prohibited in the State for purposes of
sections 111(f ) and 117(g);
(14) with respect to the one-stop delivery systems described
in section 134(c) (referred to individually in this title as a
``one-stop delivery system''), a description of the strategy of
the State for assisting local areas in development and
implementation of fully operational one-stop delivery systems in
the State;
(15) a description of the appeals process referred to in
section 116(a)(5);
(16) a description of the competitive process to be used by
the State to award grants and contracts in the State for
activities carried out under this title;
(17) with respect to the employment and training activities
authorized in section 134--
(A) a description of--
(i) the employment and training activities
that will be carried out with the funds received
by the State through the allotment made under
section 132;
(ii) how the State will provide rapid response
activities to dislocated workers from funds
reserved under section 133(a)(2) for such
purposes, including the designation of an
identifiable State rapid response dislocated
worker unit to carry out statewide rapid response
activities;
(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
(B) an assurance that veterans will be afforded the
employment and training activities by the State, to the
extent practicable; and
(18) with respect to youth activities authorized in section
129, information--
(A) describing the State strategy for providing
comprehensive services to eligible youth, particularly
those eligible youth who are recognized as having
significant barriers to employment;
[[Page 112 STAT.951]]
(B) identifying the criteria to be used by local
boards in awarding grants for youth activities,
including criteria that the Governor and local boards
will use to identify effective and ineffective youth
activities and providers of such activities;
(C) describing how the State will coordinate the
youth activities carried out in the State under section
129 with the services provided by Job Corps centers in
the State (where such centers exist); and
(D) describing how the State will coordinate youth
activities described in subparagraph (C) with activities
carried out through the youth opportunity grants under
section 169.
(c) Plan Submission and Approval.--A State plan submitted to the
Secretary under this section by a Governor shall be considered to be
approved by the Secretary at the end of the 90-day period beginning on
the day the Secretary receives the plan, unless the Secretary makes a
written determination, during the 90-day period, that--
(1) the plan is inconsistent with the provisions of this
title; and
(2) in the case of the portion of the plan described in
section 8(a) of the Wagner-Peyser Act (29 U.S.C. 49g(a)), the
portion does not satisfy the criteria for approval provided in
section 8(d) of such Act.
(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 period covered by the plan.
CHAPTER 2--LOCAL PROVISIONS
SEC. 116. <<NOTE: 29 USC 2831.>> LOCAL WORKFORCE INVESTMENT AREAS.
(a) Designation of Areas.--
(1) In general.--
(A) Process.--Except as provided in subsection (b),
and consistent with paragraphs (2), (3), and (4), in
order for a State to receive an allotment under section
127 or 132, the Governor of the State shall designate
local workforce investment areas within the State--
(i) through consultation with the State board;
and
(ii) after consultation with chief elected
officials and after consideration of comments
received through the public comment process as
described in section 112(b)(9).
(B) Considerations.--In making the designation of
local areas, the Governor shall take into consideration
the following:
(i) Geographic areas served by local
educational agencies and intermediate educational
agencies.
(ii) Geographic areas served by postsecondary
educational institutions and area vocational
education schools.
(iii) The extent to which such local areas are
consistent with labor market areas.
(iv) The distance that individuals will need
to travel to receive services provided in such
local areas.
[[Page 112 STAT.952]]
(v) The resources of such local areas that are
available to effectively administer the activities
carried out under this subtitle.
(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.
(3) Temporary and subsequent designation.--
(A) Criteria.--Notwithstanding paragraph (2)(A), the
Governor shall approve any request, made not later than
the date of submission of the initial State plan under
this subtitle, for temporary designation as a local area
from any unit of general local government (including a
combination of such units) with a population of 200,000
or more that was a service delivery area under the Job
Training Partnership Act on the day before the date of
enactment of this Act if the Governor determines that
the area--
(i) performed successfully, in each of the
last 2 years prior to the request for which data
are available, in the delivery of services to
participants under part A of title II and title
III of the Job Training Partnership Act (as in
effect on such day); and
(ii) has sustained the fiscal integrity of the
funds used by the area to carry out activities
under such part and title.
(B) Duration and subsequent designation.--A
temporary designation under this paragraph shall be for
a period of not more than 2 years, after which the
designation shall be extended until the end of the
period covered by the State plan if the Governor
determines that, during the temporary designation
period, the area substantially met (as defined by the
State board) the local performance measures for the
local area and sustained the fiscal integrity of the
funds used by the area to carry out activities under
this subtitle.
(C) Technical assistance.--The Secretary shall
provide the States with technical assistance in making
the determinations required by this paragraph. The
Secretary shall not issue regulations governing
determinations to be made under this paragraph.
(D) Performed successfully.--In this paragraph, the
term ``performed successfully'' means that the area
involved met or exceeded the performance standards for
activities administered in the area that--
[[Page 112 STAT.953]]
(i) are established by the Secretary for each
year and modified by the adjustment methodology of
the State (used to account for differences in
economic conditions, participant characteristics,
and combination of services provided from the
combination assumed for purposes of the
established standards of the Secretary); and
(ii)(I) if the area was designated as both a
service delivery area and a substate area under
the Job Training Partnership Act (as in effect on
the day before the date of enactment of this
Act)--
(aa) relate to job retention and
earnings, with respect to activities
carried out under part A of title II of
such Act (as in effect on such day); or
(bb) relate to entry into
employment, with respect to activities
carried out under title III of such Act
(as in effect on such day);
(II) if the area was designated only as a
service delivery area under such Act (as in effect
on such day), relate to the standards described in
subclause (I)(aa); or
(III) if the area was only designated as a
substate area under such Act (as in effect on such
day), relate to the standards described in
subclause (I)(bb).
(E) Sustained the fiscal integrity.--In this
paragraph, the term ``sustained the fiscal integrity'',
used with respect to funds used by a service delivery
area or local area, means that the Secretary has not
made a final determination during any of the last 3
years for which data are available, prior to the date of
the designation request involved, that either the grant
recipient or the administrative entity of the area
misexpended the funds due to willful disregard of the
requirements of the Act involved, gross negligence, or
failure to observe accepted standards of administration.
(4) Designation on recommendation of state board.--The
Governor may approve a request from any unit of general local
government (including a combination of such units) for
designation (including temporary designation) as a local area if
the State board determines, taking into account the factors
described in clauses (i) through (v) of paragraph (1)(B), and
recommends to the Governor, that such area should be so
designated.
(5) Appeals.--A unit of general local government (including
a combination of such units) or grant recipient that requests
but is not granted designation of an area as a local area under
paragraph (2) or (3) may submit an appeal to the State board
under an appeal process established in the State plan. If the
appeal does not result in such a designation, the Secretary,
after receiving a request for review from the unit or grant
recipient and on determining that the unit or grant recipient
was not accorded procedural rights under the appeal process
established in the State plan or that the area meets the
requirements of paragraph (2) or (3), as appropriate, may
require that the area be designated as a local area under such
paragraph.
[[Page 112 STAT.954]]
(b) Small States.--The Governor of any State that was a single State
service delivery area under the Job Training Partnership Act as of July
1, 1998, may designate the State as a single State local area for the
purposes of this title. In the case of such a designation, the Governor
shall identify the State as a local area under section 112(b)(5).
(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.
(2) Information sharing.--The State may require the local
boards for a designated region to share, in feasible cases,
employment statistics, information about employment
opportunities and trends, and other types of information that
would assist in improving the performance of all local areas in
the designated region on local performance measures.
(3) Coordination of services.--The State may require the
local boards for a designated region to coordinate the provision
of workforce investment activities authorized under this
subtitle, including the provision of transportation and other
supportive services, so that services provided through the
activities may be provided across the boundaries of local areas
within the designated region.
(4) Interstate regions.--Two or more States that contain an
interstate region that is a labor market area, economic
development region, or other appropriate contiguous subarea of
the States may designate the area as a designated region for
purposes of this subsection, and jointly exercise the State
functions described in paragraphs (1) through (3).
(5) Definitions.--In this subsection:
(A) Designated region.--The term ``designated
region'' means a combination of local areas that are
partly or completely in a single labor market area,
economic development region, or other appropriate
contiguous subarea of a State, that is designated by the
State, except as provided in paragraph (4).
(B) Local board for a designated region.--The term
``local board for a designated region'' means a local
board for a local area in a designated region.
SEC. 117. <<NOTE: 29 USC 2832.>> LOCAL WORKFORCE INVESTMENT BOARDS.
(a) Establishment.--There shall be established in each local area of
a State, and certified by the Governor of the State, a local workforce
investment board, to set policy for the portion of the statewide
workforce investment system within the local area (referred to in this
title as a ``local workforce investment system'').
(b) Membership.--
(1) State criteria.--The Governor of the State, in
partnership with the State board, shall establish criteria for
use by chief elected officials in the local areas for
appointment of
[[Page 112 STAT.955]]
members of the local boards in such local areas in accordance
with the requirements of paragraph (2).
(2) Composition.--Such criteria shall require, at a minimum,
that the membership of each local board--
(A) shall include--
(i) representatives of business in the local
area, 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;
(II) represent businesses with
employment opportunities that reflect
the employment opportunities of the
local area; and
(III) are appointed from among
individuals nominated by local business
organizations and business trade
associations;
(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;
(iii) representatives of labor organizations
(for a local area in which employees are
represented by labor organizations), nominated by
local labor federations, or (for a local area in
which no employees are represented by such
organizations), other representatives of
employees;
(iv) representatives of community-based
organizations (including organizations
representing individuals with disabilities and
veterans, for a local area in which such
organizations are present);
(v) representatives of economic development
agencies, including private sector economic
development entities; and
(vi) representatives of each of the one-stop
partners; and
(B) may include such other individuals or
representatives of entities as the chief elected
official in the local area may determine to be
appropriate.
(3) Authority of board members.--Members of the board that
represent organizations, agencies, or other entities shall be
individuals with optimum policymaking authority within the
organizations, agencies, or entities.
(4) Majority.--A majority of the members of the local board
shall be representatives described in paragraph (2)(A)(i).
(5) Chairperson.--The local board shall elect a chairperson
for the local board from among the representatives described in
paragraph (2)(A)(i).
(c) Appointment and Certification of Board.--
(1) Appointment of board members and assignment of
responsibilities.--
[[Page 112 STAT.956]]
(A) In general.--The chief elected official in a
local area is authorized to appoint the members of the
local board for such area, in accordance with the State
criteria established under subsection (b).
(B) Multiple units of local government in area.--
(i) In general.--In a case in which a local
area includes more than 1 unit of general local
government, the chief elected officials of such
units may execute an agreement that specifies the
respective roles of the individual chief elected
officials--
(I) in the appointment of the
members of the local board from the
individuals nominated or recommended to
be such members in accordance with the
criteria established under subsection
(b); and
(II) in carrying out any other
responsibilities assigned to such
officials under this subtitle.
(ii) Lack of agreement.--If, after a
reasonable effort, the chief elected officials are
unable to reach agreement as provided under clause
(i), the Governor may appoint the members of the
local board from individuals so nominated or
recommended.
(C) Concentrated employment programs.--In the case
of a local area designated in accordance with section
116(a)(2)(B), the governing body of the concentrated
employment program involved shall act in consultation
with the chief elected official in the local area to
appoint members of the local board, in accordance with
the State criteria established under subsection (b), and
to carry out any other responsibility relating to
workforce investment activities assigned to such
official under this Act.
(2) Certification.--
(A) In general.--The Governor shall, once every 2
years, certify 1 local board for each local area in the
State.
(B) Criteria.--Such certification shall be based on
criteria established under subsection (b) and, for a
second or subsequent certification, the extent to which
the local board has ensured that workforce investment
activities carried out in the local area have enabled
the local area to meet the local performance measures.
(C) Failure to achieve certification.--Failure of a
local board to achieve certification shall result in
reappointment and certification of another local board
for the local area pursuant to the process described in
paragraph (1) and this paragraph.
(3) Decertification.--
(A) Fraud, abuse, failure to carry out functions.--
Notwithstanding paragraph (2), the Governor may
decertify a local board, at any time after providing
notice and an opportunity for comment, for--
(i) fraud or abuse; or
(ii) failure to carry out the functions
specified for the local board in any of paragraphs
(1) through (7) of subsection (d).
(B) Nonperformance.--Notwithstanding paragraph (2),
the Governor may decertify a local board if a local area
fails to meet the local performance measures for such
[[Page 112 STAT.957]]
local area for 2 consecutive program years (in
accordance with section 136(h)).
(C) Plan.--If the Governor decertifies a local board
for a local area under subparagraph (A) or (B), the
Governor may require that a new local board be appointed
and certified for the local area pursuant to a
reorganization plan developed by the Governor, in
consultation with the chief elected official in the
local area, and in accordance with the criteria
established under subsection (b).
(4) Single state area.--Notwithstanding subsection (b) and
paragraphs (1) and (2), if a State described in section 116(b)
indicates in the State plan that the State will be treated as a
local area for purposes of the application of this title, the
Governor may designate the State board to carry out any of the
functions described in subsection (d).
(d) Functions of Local Board.--The functions of the local board
shall include the following:
(1) Local plan.--Consistent with section 118, each local
board, in partnership with the chief elected official for the
local area involved, shall develop and submit a local plan to
the Governor.
(2) Selection of operators and providers.--
(A) Selection of one-stop operators.--Consistent
with section 121(d), the local board, with the agreement
of the chief elected official--
(i) shall designate or certify one-stop
operators as described in section 121(d)(2)(A);
and
(ii) may terminate for cause the eligibility
of such operators.
(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.
(C) Identification of eligible providers of training
services.--Consistent with section 122, the local board
shall identify eligible providers of training services
described in section 134(d)(4) in the local area.
(D) Identification of eligible providers of
intensive services.--If the one-stop operator does not
provide intensive services in a local area, the local
board shall identify eligible providers of intensive
services described in section 134(d)(3) in the local
area by awarding contracts.
(3) Budget and administration.--
(A) Budget.--The local board shall develop a budget
for the purpose of carrying out the duties of the local
board under this section, subject to the approval of the
chief elected official.
(B) Administration.--
(i) Grant recipient.--
(I) In general.--The chief elected
official in a local area shall serve as
the local grant recipient for, and shall
be liable for any misuse of, the grant
funds allocated to the local area under
sections 128 and 133, unless the chief
elected official reaches an agreement
with the Governor for the
[[Page 112 STAT.958]]
Governor to act as the local grant
recipient and bear such liability.
(II) Designation.--In order to
assist in the administration of the
grant funds, the chief elected official
or the Governor, where the Governor
serves as the local grant recipient for
a local area, may designate an entity to
serve as a local grant subrecipient for
such funds or as a local fiscal agent.
Such designation shall not relieve the
chief elected official or the Governor
of the liability for any misuse of grant
funds as described in subclause (I).
(III) Disbursal.--The local grant
recipient or an entity designated under
subclause (II) shall disburse such funds
for workforce investment activities at
the direction of the local board,
pursuant to the requirements of this
title, if the direction does not violate
a provision of this Act. The local grant
recipient or entity designated under
subclause (II) shall disburse the funds
immediately on receiving such direction
from the local board.
(ii) Staff.--The local board may employ staff.
(iii) Grants and donations.--The local board
may solicit and accept grants and donations from
sources other than Federal funds made available
under this Act.
(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.
(5) Negotiation of local performance measures.--The local
board, the chief elected official, and the Governor shall
negotiate and reach agreement on local performance measures as
described in section 136(c).
(6) Employment statistics system.--The local board shall
assist the Governor in developing the statewide employment
statistics system described in section 15(e) of the Wagner-
Peyser Act.
(7) Employer linkages.--The local board shall coordinate the
workforce investment activities authorized under this subtitle
and carried out in the local area with economic development
strategies and develop other employer linkages with such
activities.
(8) Connecting, brokering, and coaching.--The local board
shall promote the participation of private sector employers in
the statewide workforce investment system and ensure the
effective provision, through the system, of connecting,
brokering, and coaching activities, through intermediaries such
as the one-stop operator in the local area or through other
organizations, to assist such employers in meeting hiring needs.
(e) Sunshine Provision.--The local board shall make available to the
public, on a regular basis through open meetings, information regarding
the activities of the local board, including information
[[Page 112 STAT.959]]
regarding the local plan prior to submission of the plan, and regarding
membership, the designation and certification of one-stop operators, and
the award of grants or contracts to eligible providers of youth
activities, and on request, minutes of formal meetings of the local
board.
(f ) Limitations.--
(1) Training services.--
(A) In general.--Except as provided in subparagraph
(B), no local board may provide training services
described in section 134(d)(4).
(B) Waivers of training prohibition.--The Governor
of the State in which a local board is located may,
pursuant to a request from the local board, grant a
written waiver of the prohibition set forth in
subparagraph (A) (relating to the provision of training
services) for a program of training services, if the
local board--
(i) submits to the Governor a proposed request
for the waiver that includes--
(I) satisfactory evidence that there
is an insufficient number of eligible
providers of such a program of training
services to meet local demand in the
local area;
(II) information demonstrating that
the board meets the requirements for an
eligible provider of training services
under section 122; and
(III) information demonstrating that
the program of training services
prepares participants for an occupation
that is in demand in the local area;
(ii) makes the proposed request available to
eligible providers of training services and other
interested members of the public for a public
comment period of not less than 30 days; and
(iii) includes, in the final request for the
waiver, the evidence and information described in
clause (i) and the comments received pursuant to
clause (ii).
(C) Duration.-- <<NOTE: Applicability.>> A waiver
granted to a local board under subparagraph (B) shall
apply for a period of not to exceed 1 year. The waiver
may be renewed for additional periods of not to exceed 1
year, pursuant to requests from the local board, if the
board meets the requirements of subparagraph (B) in
making the requests.
(D) Revocation.--The Governor may revoke a waiver
granted under this paragraph during the appropriate
period described in subparagraph (C) if the State
determines that the local board involved has engaged in
a pattern of inappropriate referrals to training
services operated by the local board.
(2) Core services; intensive services; designation or
certification as one-stop operators.--A local board may provide
core services described in section 134(d)(2) or intensive
services described in section 134(d)(3) through a one-stop
delivery system described in section 134(c) or be designated or
certified as a one-stop operator only with the agreement of the
chief elected official and the Governor.
(3) Limitation on authority.--Nothing in this Act shall be
construed to provide a local board with the authority to mandate
curricula for schools.
[[Page 112 STAT.960]]
(g) Conflict of Interest.--A member of a local board may not--
(1) vote on a matter under consideration by the local
board--
(A) regarding the provision of services by such
member (or by an entity that such member represents); or
(B) that would provide direct financial benefit to
such member or the immediate family of such member; or
(2) engage in any other activity determined by the Governor
to constitute a conflict of interest as specified in the State
plan.
(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.
[[Page 112 STAT.961]]
(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) (for a local area in which no employees
are represented by such organizations), other
representatives of employees in the local area.
(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.
SEC. 118. <<NOTE: 29 USC 2833.>> LOCAL PLAN.
(a) In General.--Each local board shall develop and submit to the
Governor a comprehensive 5-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) an identification of--
(A) the workforce investment needs of businesses,
jobseekers, and workers in the local area;
(B) the current and projected employment
opportunities in the local area; and
(C) the job skills necessary to obtain such
employment opportunities;
(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;
(3) a description of the local levels of performance
negotiated with the Governor and chief elected official pursuant
to section 136(c), to be used to measure the performance of
[[Page 112 STAT.962]]
the local area and to be used by the local board for measuring
the performance of the local fiscal agent (where appropriate),
eligible providers, and the one-stop delivery system, in the
local area;
(4) a description and assessment of the type and
availability of adult and dislocated worker employment and
training activities in the local area;
(5) a description of how the local board will coordinate
workforce investment activities carried out in the local area
with statewide rapid response activities, as appropriate;
(6) a description and assessment of the type and
availability of youth activities in the local area, including an
identification of successful providers of such activities;
(7) a description of the process used by the local board,
consistent with subsection (c), to provide an opportunity for
public comment, including comment by representatives of
businesses and comment by representatives of labor
organizations, and input into the development of the local plan,
prior to submission of the plan;
(8) an identification of the entity responsible for the
disbursal of grant funds described in section
117(d)(3)(B)(i)(III), as determined by the chief elected
official or the Governor under section 117(d)(3)(B)(i);
(9) a description of the competitive process to be used to
award the grants and contracts in the local area for activities
carried out under this subtitle; and
(10) such other information as the Governor may require.
(c) Process.--Prior to the date on which the local board submits a
local plan under this section, the local board shall--
(1) make available copies of a proposed local plan to the
public through such means as public hearings and local news
media;
(2) allow members of the local board and members of the
public, including representatives of business and
representatives of labor organizations, to submit comments on
the proposed local plan to the local board, not later than the
end of the 30-day period beginning on the date on which the
proposed local plan is made available; and
(3) include with the local plan submitted to the Governor
under this section any such comments that represent disagreement
with the plan.
(d) Plan Submission and Approval.--A local plan submitted to the
Governor under this section shall be considered to be approved by the
Governor at the end of the 90-day period beginning on the day the
Governor receives the plan, unless the Governor makes a written
determination during the 90-day period that--
(1) deficiencies in activities carried out under this
subtitle have been identified, through audits conducted under
section 184 or otherwise, and the local area has not made
acceptable progress in implementing corrective measures to
address the deficiencies; or
(2) the plan does not comply with this title.
[[Page 112 STAT.963]]
CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES PROVIDERS
SEC. 121. <<NOTE: 29 USC 2841.>> ESTABLISHMENT OF ONE-STOP DELIVERY
SYSTEMS.
(a) In General.--Consistent with the State plan, the local board for
a local area, with the agreement of the chief elected official for the
local area, shall--
(1) <<NOTE: Contracts.>> develop and enter into the
memorandum of understanding described in subsection (c) with
one-stop partners;
(2) designate or certify one-stop operators under subsection
(d); and
(3) conduct oversight with respect to the one-stop delivery
system in the local area.
(b) One-Stop Partners.--
(1) Required partners.--
(A) In general.--Each entity that carries out a
program or activities described in subparagraph (B)
shall--
(i) make available to participants, through a
one-stop delivery system, the services described
in section 134(d)(2) that are applicable to such
program or activities; and
(ii) participate in the operation of such
system consistent with the terms of the memorandum
described in subsection (c), and with the
requirements of the Federal law in which the
program or activities are authorized.
(B) Programs and activities.--The programs and
activities referred to in subparagraph (A) consist of--
(i) programs authorized under this title;
(ii) programs authorized under the Wagner-
Peyser Act (29 U.S.C. 49 et seq.);
(iii) adult education and literacy activities
authorized under title II;
(iv) programs authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et
seq.);
(v) programs authorized under section
403(a)(5) of the Social Security Act (42 U.S.C.
603(a)(5)) (as added by section 5001 of the
Balanced Budget Act of 1997);
(vi) activities authorized under title V of
the Older Americans Act of 1965 (42 U.S.C. 3056 et
seq.);
(vii) postsecondary vocational education
activities authorized under the Carl D. Perkins
Vocational and Applied Technology Education Act
(20 U.S.C. 2301 et seq.);
(viii) activities authorized under chapter 2
of title II of the Trade Act of 1974 (19 U.S.C.
2271 et seq.);
(ix) activities authorized under chapter 41 of
title 38, United States Code;
(x) employment and training activities carried
out under the Community Services Block Grant Act
(42 U.S.C. 9901 et seq.);
(xi) employment and training activities
carried out by the Department of Housing and Urban
Development; and
[[Page 112 STAT.964]]
(xii) programs authorized under State
unemployment compensation laws (in accordance with
applicable Federal law).
(2) Additional partners.--
(A) In general.--In addition to the entities
described in paragraph (1), other entities that carry
out a human resource program described in subparagraph
(B) may--
(i) make available to participants, through
the one-stop delivery system, the services
described in section 134(d)(2) that are applicable
to such program; and
(ii) participate in the operation of such
system consistent with the terms of the memorandum
described in subsection (c), and with the
requirements of the Federal law in which the
program is authorized;
if the local board and chief elected official involved
approve such participation.
(B) Programs.--The programs referred to in
subparagraph (A) may include--
(i) programs authorized under part A of title
IV of the Social Security Act (42 U.S.C. 601 et
seq.);
(ii) programs authorized under section 6(d)(4)
of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(4));
(iii) work programs authorized under section
6(o) of the Food Stamp Act of 1977 (7 U.S.C.
2015(o));
(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.
(c) Memorandum of Understanding.--
(1) Development.--The local board, with the agreement of the
chief elected official, shall develop and enter into a
memorandum of understanding (between the local board and the
one-stop partners), consistent with paragraph (2), concerning
the operation of the one-stop delivery system in the local area.
(2) Contents.--Each memorandum of understanding shall
contain--
(A) provisions describing--
(i) the services to be provided through the
one-stop delivery system;
(ii) how the costs of such services and the
operating costs of the system will be funded;
(iii) methods for referral of individuals
between the one-stop operator and the one-stop
partners, for the appropriate services and
activities; and
(iv) the duration of the memorandum and the
procedures for amending the memorandum during the
term of the memorandum; and
(B) such other provisions, consistent with the
requirements of this title, as the parties to the
agreement determine to be appropriate.
(d) One-Stop Operators.--
(1) Designation and certification.--Consistent with
paragraphs (2) and (3), the local board, with the agreement of
the chief elected official, is authorized to designate or
certify
[[Page 112 STAT.965]]
one-stop operators and to terminate for cause the eligibility of
such operators.
(2) Eligibility.--To be eligible to receive funds made
available under this subtitle to operate a one-stop center
referred to in section 134(c), an entity (which may be a
consortium of entities)--
(A) shall be designated or certified as a one-stop
operator--
(i) through a competitive process; or
(ii) in accordance with an agreement reached
between the local board and a consortium of
entities that, at a minimum, includes 3 or more of
the one-stop partners described in subsection
(b)(1); and
(B) may be a public or private entity, or consortium
of entities, of demonstrated effectiveness, located in
the local area, which may include--
(i) a postsecondary educational institution;
(ii) an employment service agency established
under the Wagner-Peyser Act (29 U.S.C. 49 et
seq.), on behalf of the local office of the
agency;
(iii) a private, nonprofit organization
(including a community-based organization);
(iv) a private for-profit entity;
(v) a government agency; and
(vi) another interested organization or
entity, which may include a local chamber of
commerce or other business organization.
(3) Exception.--Elementary schools and secondary schools
shall not be eligible for designation or certification as one-
stop operators, except that nontraditional public secondary
schools and area vocational education schools shall be eligible
for such designation or certification.
(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).
SEC. 122. <<NOTE: 29 USC 2842.>> 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
[[Page 112 STAT.966]]
(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,
[[Page 112 STAT.967]]
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
[[Page 112 STAT.968]]
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;
[[Page 112 STAT.969]]
(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.-- <<NOTE: Records.>>
(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).
[[Page 112 STAT.970]]
(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) <<NOTE: Procedures.>> 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
[[Page 112 STAT.971]]
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. <<NOTE: 29 USC 2843.>> 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.
CHAPTER 4--YOUTH ACTIVITIES
SEC. 126. <<NOTE: 29 USC 2851.>> GENERAL AUTHORIZATION.
The Secretary shall make an allotment under section 127(b)(1)(C) 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 eligible youth in the State or outlying area
and in the local areas.
SEC. 127. <<NOTE: 29 USC 2852.>> 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).
[[Page 112 STAT.972]]
(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) <<NOTE: Territories.>> 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,
[[Page 112 STAT.973]]
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
[[Page 112 STAT.974]]
(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.
[[Page 112 STAT.975]]
(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.
(c) Reallotment.--
[[Page 112 STAT.976]]
(1) In general.--The Secretary shall, in accordance with
this subsection, reallot to eligible States amounts that are
allotted under this section for youth activities and statewide
workforce investment activities and that are available for
reallotment.
(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.
(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, as
compared to the total amount allotted to all eligible States
under this section for such activities for such prior 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.
(5) Procedures.--The Governor of each State shall prescribe
uniform procedures for the obligation of funds by local areas
within the State in order to avoid the requirement that funds be
made available for reallotment under this subsection. The
Governor shall further prescribe equitable procedures for making
funds available from the State and local areas in the event that
a State is required to make funds available for reallotment
under this subsection.
SEC. 128. <<NOTE: 29 USC 2853.>> 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.--
[[Page 112 STAT.977]]
(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
[[Page 112 STAT.978]]
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.
(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.
(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, 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. 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.
SEC. 129. <<NOTE: 29 USC 2854.>> 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;
[[Page 112 STAT.979]]
(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.
(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) provide an objective assessment of the academic
levels, skill levels, and service needs of each
participant, which assessment shall include a review of
basic skills, occupational skills, prior work
experience, employability,
[[Page 112 STAT.980]]
interests, aptitudes (including interests and aptitudes
for nontraditional jobs), supportive service needs, and
developmental needs of such participant, except that a
new assessment of a participant is not required if the
provider carrying out such a program determines it is
appropriate to use a recent assessment of the
participant conducted pursuant to another education or
training program;
(B) develop service strategies for each participant
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) preparation for postsecondary educational
opportunities, in appropriate cases;
(ii) strong linkages between academic and
occupational learning;
(iii) 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.
(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;
(B) alternative secondary school services, as
appropriate;
(C) summer employment opportunities that are
directly linked to academic and occupational learning;
(D) as appropriate, paid and unpaid work
experiences, including internships and job shadowing;
(E) occupational skill training, as appropriate;
(F) leadership development opportunities, which may
include community service and peer-centered activities
encouraging responsibility and other positive social
behaviors during non-school hours, as appropriate;
(G) supportive services;
(H) adult mentoring for the period of participation
and a subsequent period, for a total of not less than 12
months;
(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.
(3) Additional requirements.--
(A) Information and referrals.--Each local board
shall ensure that each participant or applicant who
meets
[[Page 112 STAT.981]]
the minimum income criteria to be considered an eligible
youth shall be provided--
(i) information on the full array of
applicable or appropriate services that are
available through the local board or other
eligible providers or one-stop partners, including
those receiving funds under this subtitle; and
(ii) referral to appropriate training and
educational programs that have the capacity to
serve the participant or applicant either on a
sequential or concurrent basis.
(B) Applicants not meeting enrollment
requirements.--Each eligible provider of a program of
youth activities shall ensure that an eligible applicant
who does not meet the enrollment requirements of the
particular program or who cannot be served shall be
referred for further assessment, as necessary, and
referred to appropriate programs in accordance with
subparagraph (A) to meet the basic skills and training
needs of the applicant.
(C) Involvement in design and implementation.--The
local board shall ensure that parents, participants, and
other members of the community with experience relating
to programs for youth are involved in the design and
implementation of the programs described in paragraph
(1).
(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.
[[Page 112 STAT.982]]
(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) Prohibitions.--
(A) Prohibition against federal control of
education.--No provision of this Act shall be construed
to authorize any department, agency, officer, or
employee of the United States to exercise any direction,
supervision, or control over the curriculum, program of
instruction, administration, or personnel of any
educational institution, school, or school system, or
over the selection of library resources, textbooks, or
other printed or published instructional materials by
any educational institution, school, or school system.
(B) Nonduplication.--All of the funds made available
under this Act shall be used in accordance with the
requirements of this Act. None of the funds made
available under this Act may be used to provide funding
under the School-to-Work Opportunities Act of 1994 (20
U.S.C. 6101 et seq.) or to carry out, through programs
funded under this Act, activities that were funded under
the School-to-Work Opportunities Act of 1994, unless the
programs funded under this Act serve only those
participants eligible to participate in the programs
under this Act.
(C) Noninterference and nonreplacement of regular
academic requirements.--No funds described in paragraph
(1) shall be used to provide an activity for eligible
youth who are not school dropouts if participation in
the activity would interfere with or replace the regular
academic requirements of the youth.
(7) Linkages.--In coordinating the programs authorized under
this section, youth councils shall establish linkages with
educational agencies responsible for services to participants as
appropriate.
(8) 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
SEC. 131. <<NOTE: 29 USC 2861.>> 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.
[[Page 112 STAT.983]]
SEC. 132. <<NOTE: 29 USC 2862.>> STATE ALLOTMENTS.
(a) <<NOTE: Grants.>> 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); 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
[[Page 112 STAT.984]]
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.
[[Page 112 STAT.985]]
(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.
[[Page 112 STAT.986]]
(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.
(c) Reallotment.--
(1) In general.--The Secretary shall, in accordance with
this subsection, reallot to eligible States amounts that are
[[Page 112 STAT.987]]
allotted under this section for employment and training
activities and statewide workforce investment activities and
that are available for reallotment.
(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.
(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, as
compared to the total amount allotted to all eligible States
under this section for such activities for such prior 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.
(5) Procedures.--The Governor of each State shall prescribe
uniform procedures for the obligation of funds by local areas
within the State in order to avoid the requirement that funds be
made available for reallotment under this subsection. The
Governor shall further prescribe equitable procedures for making
funds available from the State and local areas in the event that
a State is required to make funds available for reallotment
under this subsection.
SEC. 133. <<NOTE: 29 USC 2863.>> 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.--
[[Page 112 STAT.988]]
(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) <<NOTE: Effective date.>> 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
[[Page 112 STAT.989]]
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.
(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
[[Page 112 STAT.990]]
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.
(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, 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. 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.
SEC. 134. <<NOTE: 29 USC 2864.>> 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
[[Page 112 STAT.991]]
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;
[[Page 112 STAT.992]]
(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).
(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)--
(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);
[[Page 112 STAT.993]]
(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) 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.
[[Page 112 STAT.994]]
(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.
(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;
(B) outreach, intake (which may include worker
profiling), and orientation to the information and other
services available through the one-stop delivery system;
(C) initial assessment of skill levels, aptitudes,
abilities, and supportive service needs;
(D) job search and placement assistance, and where
appropriate, career counseling;
(E) provision of employment statistics information,
including the provision of accurate information relating
to local, regional, and national labor market areas,
including--
(i) job vacancy listings in such labor market
areas;
(ii) information on job skills necessary to
obtain the jobs described in clause (i); and
(iii) information relating to local
occupations in demand and the earnings and skill
requirements for such occupations; and
(F) provision of performance information and program
cost information on eligible providers of training
services as described in section 122, provided by
program, and eligible providers of youth activities
described in section 123, providers of adult education
described in title II, providers of postsecondary
vocational education activities and vocational education
activities available to school dropouts under the Carl
D. Perkins Vocational and Applied Technology Education
Act (20 U.S.C. 2301 et seq.), and providers of
vocational rehabilitation program activities described
in title I of the Rehabilitation Act of 1973 (29 U.S.C.
720 et seq.);
(G) provision of information regarding how the local
area is performing on the local performance measures and
any additional performance information with respect to
the one-stop delivery system in the local area;
(H) provision of accurate information relating to
the availability of supportive services, including child
care and transportation, available in the local area,
and referral to such services, as appropriate;
(I) provision of information regarding filing claims
for unemployment compensation;
(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
[[Page 112 STAT.995]]
(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
(K) followup services, including counseling
regarding the workplace, for participants in workforce
investment activities authorized under this subtitle who
are placed in unsubsidized employment, for not less than
12 months after the first day of the employment, as
appropriate.
(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.
(B) Delivery of services.--Such intensive services
shall be provided through the one-stop delivery system--
(i) directly through one-stop operators
identified pursuant to section 121(d); or
(ii) through contracts with service providers,
which may include contracts with public, private
for-profit, and private nonprofit service
providers, approved by the local board.
(C) Types of services.--Such intensive services may
include the following:
(i) Comprehensive and specialized assessments
of the skill levels and service needs of adults
and dislocated workers, which may include--
(I) diagnostic testing and use of
other assessment tools; and
(II) in-depth interviewing and
evaluation to identify employment
barriers and appropriate employment
goals.
(ii) Development of an individual employment
plan, to identify the employment goals,
appropriate achievement objectives, and
appropriate combination of services for the
participant to achieve the employment goals.
(iii) Group counseling.
(iv) Individual counseling and career
planning.
(v) Case management for participants seeking
training services under paragraph (4).
(vi) Short-term prevocational services,
including development of learning skills,
communication skills, interviewing skills,
punctuality, personal maintenance skills, and
professional conduct, to prepare individuals for
unsubsidized employment or training.
[[Page 112 STAT.996]]
(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).
(B) Qualification.--
(i) Requirement.--Except as provided in clause
(ii), provision of such training services shall be
limited to individuals who--
(I) are unable to obtain other grant
assistance for such services, including
Federal Pell Grants established under
title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.); or
(II) require assistance beyond the
assistance made available under other
grant assistance programs, including
Federal Pell Grants.
(ii) Reimbursements.--Training services may be
provided under this paragraph to an individual who
otherwise meets the requirements of this paragraph
while an application for a Federal Pell Grant is
pending, except that if such individual is
subsequently awarded a Federal Pell Grant,
appropriate reimbursement shall be made to the
local area from such Federal Pell Grant.
(C) Provider qualification.--Training services shall
be provided through providers identified in accordance
with section 122.
(D) Training services.--Training services may
include--
(i) occupational skills training, including
training for nontraditional employment;
(ii) on-the-job training;
(iii) programs that combine workplace training
with related instruction, which may include
cooperative education programs;
[[Page 112 STAT.997]]
(iv) training programs operated by the private
sector;
(v) skill upgrading and retraining;
(vi) entrepreneurial training;
(vii) job readiness training;
(viii) adult education and literacy activities
provided in combination with services described in
any of clauses (i) through (vii); and
(ix) customized training conducted with a
commitment by an employer or group of employers to
employ an individual upon successful completion of
the training.
(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.
(F) Consumer choice requirements.--
(i) In general.--Training services provided
under this paragraph shall be provided in a manner
that maximizes consumer choice in the selection of
an eligible provider of such services.
(ii) Eligible providers.--Each local board,
through one-stop centers referred to in subsection
(c), shall make available--
(I) the State list of eligible
providers of training services required
under section 122(e), with a description
of the programs through which the
providers may offer the training
services, and the information
identifying eligible providers of on-
the-job training and customized training
required under section 122(h); and
(II) the performance information and
performance cost information relating to
eligible providers of training services
described in subsections (e) and (h) of
section 122.
(G) Use of individual training accounts.--
(i) In general.--Except as provided in clause
(ii), training services provided under this
paragraph shall be provided through the use of
individual training accounts in accordance with
this paragraph, and shall be provided to eligible
individuals through the one-stop delivery system.
(ii) Exceptions.--Training services authorized
under this paragraph may be provided pursuant to a
contract for services in lieu of an individual
training account if the requirements of
subparagraph (F) are met and if--
(I) such services are on-the-job
training provided by an employer or
customized training;
(II) the local board determines
there are an insufficient number of
eligible providers of training services
in the local area involved (such as in
[[Page 112 STAT.998]]
a rural area) to accomplish the purposes
of a system of individual training
accounts; or
(III) the local board determines
that there is a training services
program of demonstrated effectiveness
offered in the local area by a
community-based organization or another
private organization to serve special
participant populations that face
multiple barriers to employment.
(iii) Linkage to occupations in demand.--
Training services provided under this paragraph
shall be directly linked to occupations that are
in demand in the local area, or in another area to
which an adult or dislocated worker receiving such
services is willing to relocate, except that a
local board may approve training services for
occupations determined by the local board to be in
sectors of the economy that have a high potential
for sustained demand or growth in the local area.
(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) Individuals with substantial
language or cultural barriers.
(II) Offenders.
(III) Homeless individuals.
(IV) Other hard-to-serve populations
as defined by the Governor involved.
(e) 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.
(2) Supportive services.--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 supportive services to adults and dislocated workers,
respectively--
(A) who are participating in programs with
activities authorized in any of paragraphs (2), (3), or
(4) of subsection (d); and
(B) who are unable to obtain such supportive
services through other programs providing such services.
(3) Needs-related payments.--
(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
[[Page 112 STAT.999]]
dislocated workers under section 133(b)(2)(B), may be
used to provide needs-related payments to adults and
dislocated workers, respectively, who are unemployed and
do not qualify for (or have ceased to qualify for)
unemployment compensation for the purpose of enabling
such individuals to participate in programs of training
services under subsection (d)(4).
(B) Additional eligibility requirements.--In
addition to the requirements contained in subparagraph
(A), a dislocated worker who has ceased to qualify for
unemployment compensation may be eligible to receive
needs-related payments under this paragraph only if such
worker was enrolled in the training services--
(i) by the end of the 13th week after the most
recent layoff that resulted in a determination of
the worker's eligibility for employment and
training activities for dislocated workers under
this subtitle; or
(ii) if later, by the end of the 8th week
after the worker is informed that a short-term
layoff will exceed 6 months.
(C) Level of payments.--The level of a needs-related
payment made to a dislocated worker under this paragraph
shall not exceed the greater of--
(i) the applicable level of unemployment
compensation; or
(ii) if such worker did not qualify for
unemployment compensation, an amount equal to the
poverty line, for an equivalent period, which
amount shall be adjusted to reflect changes in
total family income.
CHAPTER 6--GENERAL PROVISIONS
SEC. 136. <<NOTE: 29 USC 2871.>> 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
States and local areas in achieving continuous improvement of workforce
investment activities funded under this subtitle, in order to optimize
the return on investment of Federal funds in statewide and local
workforce investment activities.
(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); and
(B) a State adjusted level of performance for each
indicator described in subparagraph (A).
(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
[[Page 112 STAT.1000]]
youth age 19 through 21) for youth activities
authorized under section 129 shall consist of--
(I) entry into unsubsidized
employment;
(II) retention in unsubsidized
employment 6 months after entry into the
employment;
(III) earnings received in
unsubsidized employment 6 months after
entry into the employment; and
(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.
(C) Additional indicators.--A State may identify in
the State plan additional indicators for 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) be expressed in an objective,
quantifiable, and measurable form; and
(II) show the progress of the State
toward continuously improving in
performance.
[[Page 112 STAT.1001]]
(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 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 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) how the levels involved compare
with the State adjusted levels of
performance established for other
States, taking into account factors
including differences in economic
conditions, the characteristics of
participants when the participants
entered the program, and the services to
be provided; and
(III) 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) 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.
[[Page 112 STAT.1002]]
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). 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) for
activities described in such subsection, other than
statewide workforce investment activities; and
(B) a local level of performance for each indicator
described in subparagraph (A).
(2) Local level of performance.--The local board, the chief
elected official, and the Governor shall negotiate and reach
agreement on the local levels of performance based on the State
adjusted levels of performance established under subsection (b).
(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.
(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) entry by participants who have completed
training services provided under section 134(d)(4) into
unsubsidized employment related to the training
received;
(B) wages at entry into employment for participants
in workforce investment activities who entered
[[Page 112 STAT.1003]]
unsubsidized employment, including the rate of wage
replacement for such participants who are dislocated
workers;
(C) cost of workforce investment activities relative
to the effect of the activities on the performance of
participants;
(D) retention and earnings received in unsubsidized
employment 12 months after entry into the employment;
(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
(F) performance with respect to the indicators of
performance specified in subsection (b)(2)(A) of
recipients of public assistance, out-of-school youth,
veterans, individuals with disabilities, displaced
homemakers, and older individuals.
(3) <<NOTE: Publication.>> 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 congressional
committees with copies of such reports.
(e) Evaluation of State Programs.--
(1) In general.--Using funds made available under this
subtitle, the State, in coordination with local boards in the
State, shall conduct ongoing evaluation studies of workforce
investment activities carried out in the State under this
subtitle in order to promote, establish, implement, and utilize
methods for continuously improving the activities in order to
achieve high-level performance within, and high-level outcomes
from, the statewide workforce investment system. To the maximum
extent practicable, the State shall coordinate the evaluations
with the evaluations provided for by the Secretary under section
172.
(2) Design.--The evaluation studies conducted under this
subsection shall be designed in conjunction with the State board
and local boards and shall include analysis of customer feedback
and outcome and process measures in the statewide workforce
investment system. The studies may include use of control
groups.
(3) <<NOTE: Reports.>> Results.--The State shall
periodically prepare and submit to the State board, and local
boards in the State, reports containing the results of
evaluation studies conducted under this subsection, to promote
the efficiency and effectiveness of the statewide workforce
investment system in improving employability for jobseekers and
competitiveness for employers.
(f ) Fiscal and Management Accountability Information Systems.--
(1) <<NOTE: Guidelines.>> In general.--Using funds made
available under this subtitle, the Governor, in coordination
with local boards and
[[Page 112 STAT.1004]]
chief elected officials in the State, shall establish and
operate a fiscal and management accountability information
system based on guidelines established by the Secretary after
consultation with the Governors, local elected officials, and
one-stop partners. Such guidelines shall promote efficient
collection and use of fiscal and management information for
reporting and monitoring the use of funds made available under
this subtitle and for preparing the annual report described in
subsection (d).
(2) Wage records.--In measuring the progress of the State on
State and local performance measures, a State shall utilize
quarterly wage records, consistent with State law. The Secretary
shall make arrangements, consistent with State law, to ensure
that the wage records of any State are available to any other
State to the extent that such wage records are required by the
State in carrying out the State plan of the State or completing
the annual report described in subsection (d).
(3) Confidentiality.--In carrying out the requirements of
this Act, the State shall comply with section 444 of the General
Education Provisions Act (20 U.S.C. 1232g) (as added by the
Family Educational Rights and Privacy Act of 1974).
(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.
(B) Reduction in amount of grant.--If such failure
continues for a second consecutive year, or if a State
fails to submit a report under subsection (d) for any
program year, the Secretary may reduce by not more than
5 percent, the amount of the grant that would (in the
absence of this paragraph) be payable to the State under
such program for the immediately succeeding program
year. Such penalty shall be based on the degree of
failure to meet State adjusted levels of performance.
(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.
(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.--
[[Page 112 STAT.1005]]
(A) In general.--If such failure continues for a
second consecutive year, the Governor shall take
corrective actions, which may include development of a
reorganization plan through which the Governor may--
(i) require the appointment and certification
of a new local board (consistent with the criteria
established under section 117(b));
(ii) prohibit the use of eligible providers
and one-stop partners identified as achieving a
poor level of performance; or
(iii) take such other actions as the Governor
determines are appropriate.
(B) <<NOTE: Deadlines.>> 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.
(C) Effective date.--The decision made by the
Governor under clause (i) of subparagraph (B) shall
become effective at the time the Governor issues the
decision pursuant to such clause. Such decision shall
remain effective unless the Secretary rescinds or
revises such plan pursuant to clause (ii) of
subparagraph (B).
(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).
[[Page 112 STAT.1006]]
(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.
SEC. 137. <<NOTE: 29 USC 2872.>> 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.
(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.
(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. 141. <<NOTE: 29 USC 2881.>> PURPOSES.
The purposes of this subtitle are--
(1) to maintain a national Job Corps program, carried out in
partnership with States and communities, to assist eligible
youth who need and can benefit from an intensive program,
operated in a group setting in residential and nonresidential
centers, to become more responsible, employable, and productive
citizens;
(2) to set forth standards and procedures for selecting
individuals as enrollees in the Job Corps;
(3) to authorize the establishment of Job Corps centers in
which enrollees will participate in intensive programs of
activities described in this subtitle; and
(4) to prescribe various other powers, duties, and
responsibilities incident to the operation and continuing
development of the Job Corps.
SEC. 142. <<NOTE: 29 USC 2882.>> DEFINITIONS.
In this subtitle:
(1) Applicable local board.--The term ``applicable local
board'' means a local board--
(A) that provides information for a Job Corps center
on local employment opportunities and the job skills
needed to obtain the opportunities; and
(B) that serves communities in which the graduates
of the Job Corps center seek employment.
(2) Applicable one-stop center.--The term ``applicable one-
stop center'' means a one-stop customer service center that
provides services, such as referral, intake, recruitment, and
placement, to a Job Corps center.
(3) Enrollee.--The term ``enrollee'' means an individual who
has voluntarily applied for, been selected for, and enrolled in
the Job Corps program, and remains with the program, but has not
yet become a graduate.
(4) Former enrollee.--The term ``former enrollee'' means an
individual who has voluntarily applied for, been selected for,
and enrolled in the Job Corps program, but left the program
[[Page 112 STAT.1007]]
before completing the requirements of a vocational training
program, or receiving a secondary school diploma or recognized
equivalent, as a result of participation in the Job Corps
program.
(5) Graduate.--The term ``graduate'' means an individual who
has voluntarily applied for, been selected for, and enrolled in
the Job Corps program and has completed the requirements of a
vocational training program, or received a secondary school
diploma or recognized equivalent, as a result of participation
in the Job Corps program.
(6) Job corps.--The term ``Job Corps'' means the Job Corps
described in section 143.
(7) Job corps center.--The term ``Job Corps center'' means a
center described in section 147.
(8) Operator.--The term ``operator'' means an entity
selected under this subtitle to operate a Job Corps center.
(9) Region.--The term ``region'' means an area served by a
regional office of the Employment and Training Administration.
(10) Service provider.--The term ``service provider'' means
an entity selected under this subtitle to provide services
described in this subtitle to a Job Corps center.
SEC. 143. <<NOTE: 29 USC 2883.>> ESTABLISHMENT.
There shall be within the Department of Labor a ``Job Corps''.
SEC. 144. <<NOTE: 29 USC 2884.>> INDIVIDUALS ELIGIBLE FOR THE JOB
CORPS.
To be eligible to become an enrollee, an individual shall be--
(1) not less than age 16 and not more than age 21 on the
date of enrollment, except that--
(A) not more than 20 percent of the individuals
enrolled in the Job Corps may be not less than age 22
and not more than age 24 on the date of enrollment; and
(B) either such maximum age limitation may be waived
by the Secretary, in accordance with regulations of the
Secretary, in the case of an individual with a
disability;
(2) a low-income individual; and
(3) an individual who is one or more of the following:
(A) Basic skills deficient.
(B) A school dropout.
(C) Homeless, a runaway, or a foster child.
(D) A parent.
(E) An individual who requires additional education,
vocational training, or intensive counseling and related
assistance, in order to participate successfully in
regular schoolwork or to secure and hold employment.
SEC. 145. <<NOTE: 29 USC 2885.>> RECRUITMENT, SCREENING, SELECTION, AND
ASSIGNMENT OF ENROLLEES.
(a) Standards and Procedures.--
(1) In general.--The Secretary shall prescribe specific
standards and procedures for the recruitment, screening, and
selection of eligible applicants for the Job Corps, after
considering recommendations from the Governors, local boards,
and other interested parties.
(2) Methods.--In prescribing standards and procedures under
paragraph (1), the Secretary, at a minimum, shall--
[[Page 112 STAT.1008]]
(A) prescribe procedures for informing enrollees
that drug tests will be administered to the enrollees
and the results received within 45 days after the
enrollees enroll in the Job Corps;
(B) establish standards for recruitment of Job Corps
applicants;
(C) establish standards and procedures for--
(i) determining, for each applicant, whether
the educational and vocational needs of the
applicant can best be met through the Job Corps
program or an alternative program in the community
in which the applicant resides; and
(ii) obtaining from each applicant pertinent
data relating to background, needs, and interests
for determining eligibility and potential
assignment;
(D) where appropriate, take measures to improve the
professional capability of the individuals conducting
screening of the applicants; and
(E) assure that an appropriate number of enrollees
are from rural areas.
(3) Implementation.--To the extent practicable, the
standards and procedures shall be implemented through
arrangements with--
(A) applicable one-stop centers;
(B) community action agencies, business
organizations, and labor organizations; and
(C) agencies and individuals that have contact with
youth over substantial periods of time and are able to
offer reliable information about the needs and problems
of youth.
(4) Consultation.--The standards and procedures shall
provide for necessary consultation with individuals and
organizations, including court, probation, parole, law
enforcement, education, welfare, and medical authorities and
advisers.
(5) <<NOTE: Contracts.>> Reimbursement.--The Secretary is
authorized to enter into contracts with and make payments to
individuals and organizations for the cost of conducting
recruitment, screening, and selection of eligible applicants for
the Job Corps, as provided for in this section. The Secretary
shall make no payment to any individual or organization solely
as compensation for referring the names of applicants for the
Job Corps.
(b) Special Limitations on Selection.--
(1) In general.--No individual shall be selected as an
enrollee unless the individual or organization implementing the
standards and procedures described in subsection (a) determines
that--
(A) there is a reasonable expectation that the
individual considered for selection can participate
successfully in group situations and activities, and is
not likely to engage in behavior that would prevent
other enrollees from receiving the benefit of the Job
Corps program or be incompatible with the maintenance of
sound discipline and satisfactory relationships between
the Job Corps center to which the individual might be
assigned and communities surrounding the Job Corps
center;
[[Page 112 STAT.1009]]
(B) the individual manifests a basic understanding
of both the rules to which the individual will be
subject and of the consequences of failure to observe
the rules; and
(C) the individual has passed a background check
conducted in accordance with procedures established by
the Secretary.
(2) Individuals on probation, parole, or supervised
release.--An individual on probation, parole, or supervised
release may be selected as an enrollee only if release from the
supervision of the probation or parole official involved is
satisfactory to the official and the Secretary and does not
violate applicable laws (including regulations). No individual
shall be denied a position in the Job Corps solely on the basis
of individual contact with the criminal justice system.
(c) Assignment Plan.--
(1) In general.--Every 2 years, the Secretary shall develop
and implement an assignment plan for assigning enrollees to Job
Corps centers. In developing the plan, the Secretary shall,
based on the analysis described in paragraph (2), establish
targets, applicable to each Job Corps center, for--
(A) the maximum attainable percentage of enrollees
at the Job Corps center that reside in the State in
which the center is located; and
(B) the maximum attainable percentage of enrollees
at the Job Corps center that reside in the region in
which the center is located, and in surrounding regions.
(2) Analysis.--In order to develop the plan described in
paragraph (1), the Secretary shall, every 2 years, analyze, for
the Job Corps center--
(A) the size of the population of individuals
eligible to participate in Job Corps in the State and
region in which the Job Corps center is located, and in
surrounding regions;
(B) the relative demand for participation in the Job
Corps in the State and region, and in surrounding
regions; and
(C) the capacity and utilization of the Job Corps
center, including services provided through the center.
(d) Assignment of Individual Enrollees.--
(1) In general.--After an individual has been selected for
the Job Corps in accordance with the standards and procedures of
the Secretary under subsection (a), the enrollee shall be
assigned to the Job Corps center that is closest to the home of
the enrollee, except that the Secretary may waive this
requirement if--
(A) the enrollee chooses a vocational training
program, or requires an English literacy program, that
is not available at such center;
(B) the enrollee would be unduly delayed in
participating in the Job Corps program because the
closest center is operating at full capacity; or
(C) the parent or guardian of the enrollee requests
assignment of the enrollee to another Job Corps center
due to circumstances in the community of the enrollee
that would impair prospects for successful participation
in the Job Corps program.
[[Page 112 STAT.1010]]
(2) Enrollees who are younger than 18.--An enrollee who is
younger than 18 shall not be assigned to a Job Corps center
other than the center closest to the home of the enrollee
pursuant to paragraph (1) if the parent or guardian of the
enrollee objects to the assignment.
SEC. 146. <<NOTE: 29 USC 2886.>> ENROLLMENT.
(a) Relationship Between Enrollment and Military Obligations.--
Enrollment in the Job Corps shall not relieve any individual of
obligations under the Military Selective Service Act (50 U.S.C. App. 451
et seq.).
(b) Period of Enrollment.--No individual may be enrolled in the Job
Corps for more than 2 years, except--
(1) in a case in which completion of an advanced career
training program under section 148(c) would require an
individual to participate in the Job Corps for not more than one
additional year; or
(2) as the Secretary may authorize in a special case.
SEC. 147. <<NOTE: 29 USC 2887.>> JOB CORPS CENTERS.
(a) Operators and Service Providers.--
(1) Eligible entities.--
(A) <<NOTE: Contracts.>> Operators.--The Secretary
shall enter into an agreement with a Federal, State, or
local agency, an area vocational education school or
residential vocational school, or a private
organization, for the operation of each Job Corps
center.
(B) Providers.--The Secretary may enter into an
agreement with a local entity to provide activities
described in this subtitle to the Job Corps center.
(2) Selection process.--
(A) Competitive basis.--Except as provided in
subsections (c) and (d) of section 303 of the Federal
Property and Administrative Services Act of 1949 (41
U.S.C. 253), the Secretary shall select on a competitive
basis an entity to operate a Job Corps center and
entities to provide activities described in this
subtitle to the Job Corps center. In developing a
solicitation for an operator or service provider, the
Secretary shall consult with the Governor of the State
in which the center is located, the industry council for
the Job Corps center (if established), and the
applicable local board regarding the contents of such
solicitation, including elements that will promote the
consistency of the activities carried out through the
center with the objectives set forth in the State plan
or in a local plan.
(B) Recommendations and considerations.--
(i) Operators.--In selecting an entity to
operate a Job Corps center, the Secretary shall
consider--
(I) the ability of the entity to
coordinate the activities carried out
through the Job Corps center with
activities carried out under the
appropriate State plan and local plans;
(II) the degree to which the
vocational training that the entity
proposes for the center reflects local
employment opportunities in the local
areas in which enrollees at the center
intend to seek employment;
[[Page 112 STAT.1011]]
(III) the degree to which the entity
is familiar with the surrounding
communities, applicable one-stop
centers, and the State and region in
which the center is located; and
(IV) the past performance of the
entity, if any, relating to operating or
providing activities described in this
subtitle to a Job Corps center.
(ii) Providers.--In selecting a service
provider for a Job Corps center, the Secretary
shall consider the factors described in subclauses
(I) through (IV) of clause (i), as appropriate.
(b) Character and Activities.--Job Corps centers may be residential
or nonresidential in character, and shall be designed and operated so as
to provide enrollees, in a well-supervised setting, with access to
activities described in this subtitle. In any year, no more than 20
percent of the individuals enrolled in the Job Corps may be
nonresidential participants in the Job Corps.
(c) Civilian Conservation Centers.--
(1) In general.--The Job Corps centers may include Civilian
Conservation Centers operated under agreements with the
Secretary of Agriculture or the Secretary of the Interior,
located primarily in rural areas, which shall provide, in
addition to other vocational training and assistance, programs
of work experience to conserve, develop, or manage public
natural resources or public recreational areas or to develop
community projects in the public interest.
(2) Selection process.--The Secretary may select an entity
to operate a Civilian Conservation Center on a competitive
basis, as provided in subsection (a), if the center fails to
meet such national performance standards as the Secretary shall
establish.
(d) Indian Tribes.--
(1) General authority.--The Secretary may enter into
agreements with Indian tribes to operate Job Corps centers for
Indians.
(2) Definitions.--In this subsection, the terms ``Indian''
and ``Indian tribe'', have the meanings given such terms in
subsections (d) and (e), respectively, of section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b).
SEC. 148. <<NOTE: 29 USC 2888.>> PROGRAM ACTIVITIES.
(a) Activities Provided by Job Corps Centers.--
(1) In general.--Each Job Corps center shall provide
enrollees with an intensive, well organized, and fully
supervised program of education, vocational training, work
experience, recreational activities, physical rehabilitation and
development, and counseling. Each Job Corps center shall provide
enrollees assigned to the center with access to core services
described in section 134(d)(2) and the intensive services
described in section 134(d)(3).
(2) Relationship to opportunities.--
(A) In general.--The activities provided under this
subsection shall provide work-based learning throughout
the enrollment of the enrollees and assist the enrollees
in obtaining meaningful unsubsidized employment,
participating in secondary education or postsecondary
education
[[Page 112 STAT.1012]]
programs, enrolling in other suitable vocational
training programs, or satisfying Armed Forces
requirements, on completion of their enrollment.
(B) Link to employment opportunities.--The
vocational training provided shall be linked to the
employment opportunities in the local area in which the
enrollee intends to seek employment after graduation.
(b) Education and Vocational Training.--The Secretary may arrange
for education and vocational training of enrollees through local public
or private educational agencies, vocational educational institutions, or
technical institutes, whenever such entities provide education and
training substantially equivalent in cost and quality to that which the
Secretary could provide through other means.
(c) Advanced Career Training Programs.--
(1) In general.--The Secretary may arrange for programs of
advanced career training for selected enrollees in which the
enrollees may continue to participate for a period of not to
exceed 1 year in addition to the period of participation to
which the enrollees would otherwise be limited. The advanced
career training may be provided through the eligible providers
of training services identified under section 122.
(2) Benefits.--
(A) In general.--During the period of participation
in an advanced career training program, an enrollee
shall be eligible for full Job Corps benefits, or a
monthly stipend equal to the average value of the
residential support, food, allowances, and other
benefits provided to enrollees assigned to residential
Job Corps centers.
(B) Calculation.--The total amount for which an
enrollee shall be eligible under subparagraph (A) shall
be reduced by the amount of any scholarship or other
educational grant assistance received by such enrollee
for advanced career training.
(3) Demonstration.--Each year, any operator seeking to
enroll additional enrollees in an advanced career training
program shall demonstrate that participants in such program have
achieved a satisfactory rate of completion and placement in
training-related jobs before the operator may carry out such
additional enrollment.
(d) Continued Services.--The Secretary shall also provide continued
services to graduates, including providing counseling regarding the
workplace for 12 months after the date of graduation of the graduates.
In selecting a provider for such services, the Secretary shall give
priority to one-stop partners.
(e) Child Care.--The Secretary shall, to the extent practicable,
provide child care at or near Job Corps centers, for individuals who
require child care for their children in order to participate in the Job
Corps.
SEC. 149. <<NOTE: 29 USC 2889.>> COUNSELING AND JOB PLACEMENT.
(a) Counseling and Testing.--The Secretary shall arrange for
counseling and testing for each enrollee at regular intervals to measure
progress in the education and vocational training programs carried out
through the Job Corps.
(b) Placement.--The Secretary shall arrange for counseling and
testing for enrollees prior to their scheduled graduations to determine
their capabilities and, based on their capabilities, shall
[[Page 112 STAT.1013]]
make every effort to arrange to place the enrollees in jobs in the
vocations for which the enrollees are trained or to assist the enrollees
in obtaining further activities described in this subtitle. In arranging
for the placement of graduates in jobs, the Secretary shall utilize the
one-stop delivery system to the fullest extent possible.
(c) Status and Progress.--The Secretary shall determine the status
and progress of enrollees scheduled for graduation and make every effort
to assure that their needs for further activities described in this
subtitle are met.
(d) Services to Former Enrollees.--The Secretary may provide such
services as the Secretary determines to be appropriate under this
subtitle to former enrollees.
SEC. 150. <<NOTE: 29 USC 2890.>> SUPPORT.
(a) Personal Allowances.--The Secretary may provide enrollees
assigned to Job Corps centers with such personal allowances as the
Secretary may determine to be necessary or appropriate to meet the needs
of the enrollees.
(b) Readjustment Allowances.--
(1) Graduates.--The Secretary shall arrange for a
readjustment allowance to be paid to graduates. The Secretary
shall arrange for the allowance to be paid at the one-stop
center nearest to the home of the graduate who is returning
home, or at the one-stop center nearest to the location where
the graduate has indicated an intent to seek employment. If the
Secretary uses any organization, in lieu of a one-stop center,
to provide placement services under this Act, the Secretary
shall arrange for that organization to pay the readjustment
allowance.
(2) Former enrollees.--The Secretary may provide for a
readjustment allowance to be paid to former enrollees. The
provision of the readjustment allowance shall be subject to the
same requirements as are applicable to the provision of the
readjustment allowance paid to graduates under paragraph (1).
SEC. 151. <<NOTE: 29 USC 2891.>> OPERATING PLAN.
(a) In General.--The provisions of the contract between the
Secretary and an entity selected to operate a Job Corps center shall, at
a minimum, serve as an operating plan for the Job Corps center.
(b) Additional Information.--The Secretary may require the operator,
in order to remain eligible to operate the Job Corps center, to submit
such additional information as the Secretary may require, which shall be
considered part of the operating plan.
(c) Availability.--The Secretary shall make the operating plan
described in subsections (a) and (b), excluding any proprietary
information, available to the public.
SEC. 152. <<NOTE: 29 USC 2892.>> STANDARDS OF CONDUCT.
(a) Provision and Enforcement.--The Secretary shall provide, and
directors of Job Corps centers shall stringently enforce, standards of
conduct within the centers. Such standards of conduct shall include
provisions forbidding the actions described in subsection (b)(2)(A).
(b) Disciplinary Measures.--
[[Page 112 STAT.1014]]
(1) In general.--To promote the proper moral and
disciplinary conditions in the Job Corps, the directors of Job
Corps centers shall take appropriate disciplinary measures
against enrollees. If such a director determines that an
enrollee has committed a violation of the standards of conduct,
the director shall dismiss the enrollee from the Job Corps if
the director determines that the retention of the enrollee in
the Job Corps will jeopardize the enforcement of such standards
or diminish the opportunities of other enrollees.
(2) Zero tolerance policy and drug testing.--
(A) Guidelines.--The Secretary shall adopt
guidelines establishing a zero tolerance policy for an
act of violence, for use, sale, or possession of a
controlled substance, for abuse of alcohol, or for other
illegal or disruptive activity.
(B) Drug testing.--The Secretary shall require drug
testing of all enrollees for controlled substances in
accordance with procedures prescribed by the Secretary
under section 145(a).
(C) Definitions.--In this paragraph:
(i) Controlled substance.--The term
``controlled substance'' has the meaning given the
term in section 102 of the Controlled Substances
Act (21 U.S.C. 802).
(ii) Zero tolerance policy.--The term ``zero
tolerance policy'' means a policy under which an
enrollee shall be automatically dismissed from the
Job Corps after a determination by the director
that the enrollee has carried out an action
described in subparagraph (A).
(c) Appeal.--A disciplinary measure taken by a director under this
section shall be subject to expeditious appeal in accordance with
procedures established by the Secretary.
SEC. 153. <<NOTE: 29 USC 2893.>> 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.
(b) Responsibilities.--The responsibilities of the Liaison shall
include--
(1) establishing and developing relationships and networks
with--
(A) local and distant employers; and
(B) applicable one-stop centers and applicable local
boards,
for the purpose of providing job opportunities for Job Corps
graduates; and
(2) establishing and developing relationships with members
of the community in which the Job Corps center is located,
informing members of the community about the projects of the Job
Corps center and changes in the rules, procedures, or activities
of the center that may affect the community, and planning events
of mutual interest to the community and the Job Corps center.
(c) New Centers.--The Liaison for 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.
[[Page 112 STAT.1015]]
SEC. 154. <<NOTE: 29 USC 2894.>> INDUSTRY COUNCILS.
(a) In General.--Each Job Corps center shall have an industry
council, appointed by the director of the center after consultation with
the Liaison, in accordance with procedures established by the Secretary.
(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) have substantial management, hiring, or
policy responsibility; and
(ii) represent businesses with employment
opportunities that reflect the employment
opportunities of the applicable local area;
(B) representatives of labor organizations (where
present) and representatives of employees; and
(C) enrollees and graduates of the Job Corps.
(2) Local board.--The industry council may include members
of the applicable local boards who meet the requirements
described in paragraph (1).
(c) Responsibilities.--The responsibilities of the industry
council shall be--
(1) to work closely with all applicable local boards in
order to determine, and recommend to the Secretary, appropriate
vocational training for the center;
(2) to review all the relevant labor market information to--
(A) determine the employment opportunities in the
local areas in which the enrollees intend to seek
employment after graduation;
(B) determine the skills and education that are
necessary to obtain the employment opportunities; and
(C) recommend to the Secretary the type of
vocational training that should be implemented at the
center to enable the enrollees to obtain the employment
opportunities; and
(3) to meet at least once every 6 months to reevaluate the
labor market information, and other relevant information, to
determine, and recommend to the Secretary, any necessary changes
in the vocational training provided at the center.
(d) New Centers.--The industry council for a Job Corps center that
is not yet operating shall carry out the responsibilities described in
subsection (c) at least 3 months prior to the date on which the center
accepts the first enrollee at the center.
SEC. 155. <<NOTE: 29 USC 2895.>> ADVISORY COMMITTEES.
The Secretary may establish and use advisory committees in
connection with the operation of the Job Corps program, and the
operation of Job Corps centers, whenever the Secretary determines that
the availability of outside advice and counsel on a regular basis would
be of substantial benefit in identifying and overcoming problems, in
planning program or center development, or in strengthening
relationships between the Job Corps and agencies, institutions, or
groups engaged in related activities.
[[Page 112 STAT.1016]]
SEC. 156. <<NOTE: 29 USC 2896.>> EXPERIMENTAL, RESEARCH, AND
DEMONSTRATION PROJECTS.
The Secretary may carry out experimental, research, or demonstration
projects relating to carrying out the Job Corps program and may waive
any provisions of this subtitle that the Secretary finds would prevent
the Secretary from carrying out the projects.
SEC. 157. <<NOTE: 29 USC 2897.>> APPLICATION OF PROVISIONS OF FEDERAL
LAW.
(a) Enrollees Not Considered To Be Federal Employees.--
(1) In general.--Except as otherwise provided in this
subsection and in section 8143(a) of title 5, United States
Code, enrollees shall not be considered to be Federal employees
and shall not be subject to the provisions of law relating to
Federal employment, including such provisions regarding hours of
work, rates of compensation, leave, unemployment compensation,
and Federal employee benefits.
(2) Provisions relating to taxes and social security
benefits.--For purposes of the Internal Revenue Code of 1986 and
title II of the Social Security Act (42 U.S.C. 401 et seq.),
enrollees shall be deemed to be employees of the United States
and any service performed by an individual as an enrollee shall
be deemed to be performed in the employ of the United States.
(3) Provisions relating to compensation to federal employees
for work injuries.--For purposes of subchapter I of chapter 81
of title 5, United States Code (relating to compensation to
Federal employees for work injuries), enrollees shall be deemed
to be civil employees of the Government of the United States
within the meaning of the term ``employee'' as defined in
section 8101 of title 5, United States Code, and the provisions
of such subchapter shall apply as specified in section 8143(a)
of title 5, United States Code.
(4) Federal tort claims provisions.--For purposes of the
Federal tort claims provisions in title 28, United States Code,
enrollees shall be considered to be employees of the Government.
(b) Adjustments and Settlements.--Whenever the Secretary finds a
claim for damages to a person or property resulting from the operation
of the Job Corps to be a proper charge against the United States, and
the claim is not cognizable under section 2672 of title 28, United
States Code, the Secretary may adjust and settle the claim in an amount
not exceeding $1,500.
(c) Personnel of the Uniformed Services.--Personnel of the uniformed
services who are detailed or assigned to duty in the performance of
agreements made by the Secretary for the support of the Job Corps shall
not be counted in computing strength under any law limiting the strength
of such services or in computing the percentage authorized by law for
any grade in such services.
SEC. 158. <<NOTE: 29 USC 2898.>> SPECIAL PROVISIONS.
(a) Enrollment.--The Secretary shall ensure that women and men have
an equal opportunity to participate in the Job Corps program, consistent
with section 145.
(b) Studies, Evaluations, Proposals, and Data.--The Secretary shall
assure that all studies, evaluations, proposals, and data produced or
developed with Federal funds in the course of
[[Page 112 STAT.1017]]
carrying out the Job Corps program shall become the property of the
United States.
(c) Transfer of Property.--
(1) In general.--Notwithstanding title II of the Federal
Property and Administrative Services Act of 1949 (40 U.S.C. 481
et seq.) and any other provision of law, the Secretary and the
Secretary of Education shall receive priority by the Secretary
of Defense for the direct transfer, on a nonreimbursable basis,
of the property described in paragraph (2) for use in carrying
out programs under this Act or under any other Act.
(2) Property.--The property described in this paragraph is
real and personal property under the control of the Department
of Defense that is not used by such Department, including
property that the Secretary of Defense determines is in excess
of current and projected requirements of such Department.
(d) Gross Receipts.--Transactions conducted by a private for-profit
or nonprofit entity that is an operator or service provider for a Job
Corps center shall not be considered to be generating gross receipts.
Such an operator or service provider shall not be liable, directly or
indirectly, to any State or subdivision of a State (nor to any person
acting on behalf of such a State or subdivision) for any gross receipts
taxes, business privilege taxes measured by gross receipts, or any
similar taxes imposed on, or measured by, gross receipts in connection
with any payments made to or by such entity for operating or providing
services to a Job Corps center. Such an operator or service provider
shall not be liable to any State or subdivision of a State to collect or
pay any sales, excise, use, or similar tax imposed on the sale to or use
by such operator or service provider of any property, service, or other
item in connection with the operation of or provision of services to a
Job Corps center.
(e) Management Fee.--The Secretary shall provide each operator and
(in an appropriate case, as determined by the Secretary) service
provider with an equitable and negotiated management fee of not less
than 1 percent of the amount of the funding provided under the
appropriate agreement specified in section 147.
(f ) Donations.--The Secretary may accept on behalf of the Job Corps
or individual Job Corps centers charitable donations of cash or other
assistance, including equipment and materials, if such donations are
available for appropriate use for the purposes set forth in this
subtitle.
(g) Sale of Property.--Notwithstanding any other provision of law,
if the Administrator of General Services sells a Job Corps center
facility, the Administrator shall transfer the proceeds from the sale to
the Secretary, who shall use the proceeds to carry out the Job Corps
program.
SEC. 159. <<NOTE: Procedures. 29 USC 2899.>> MANAGEMENT INFORMATION.
(a) Financial Management Information System.--
(1) In general.--The Secretary shall establish procedures to
ensure that each operator, and each service provider, maintains
a financial management information system that will provide--
(A) accurate, complete, and current disclosures of
the costs of Job Corps operations; and
[[Page 112 STAT.1018]]
(B) sufficient data for the effective evaluation of
activities carried out through the Job Corps program.
(2) Accounts.--Each operator and service provider shall
maintain funds received under this subtitle in accounts in a
manner that ensures timely and accurate reporting as required by
the Secretary.
(3) Fiscal responsibility.--Operators shall remain fiscally
responsible and control costs, regardless of whether the funds
made available for Job Corps centers are incrementally increased
or decreased between fiscal years.
(b) Audit.--
(1) Access.--The Secretary, the Inspector General of the
Department of Labor, the Comptroller General of the United
States, and any of their duly authorized representatives, shall
have access to any books, documents, papers, and records of the
operators and service providers described in subsection (a) that
are pertinent to the Job Corps program, for purposes of
conducting surveys, audits, and evaluations of the operators and
service providers.
(2) Surveys, audits, and evaluations.--The Secretary shall
survey, audit, or evaluate, or arrange for the survey, audit, or
evaluation of, the operators and service providers, using
Federal auditors or independent public accountants. The
Secretary shall conduct such surveys, audits, or evaluations not
less often than once every 3 years.
(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,
[[Page 112 STAT.1019]]
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 post-
secondary education or advanced training programs,
including apprenticeship programs, as appropriate; and
(H) the number of graduates who attained job
readiness and employment skills.
(2) Performance of recruiters.--The Secretary shall also
establish performance measures, and expected performance levels
on the performance measures, for local and national recruitment
service providers serving the Job Corps program. The performance
measures 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.
(3) Report.--The Secretary shall collect, and annually
submit a report to the appropriate committees of Congress
containing information on the performance of each Job Corps
center, and the Job Corps program, on the core performance
measures, as compared to the expected performance level for each
performance measure. The report shall also contain information
on the performance of the service providers described in
paragraph (2) on the performance measures established under such
paragraph, as compared to the expected performance levels for
the performance measures.
(d) Additional Information.--The Secretary shall also collect, and
submit in the report described in subsection (c), information on the
performance of each Job Corps center, and the Job Corps program,
regarding--
(1) the number of enrollees served;
(2) the average level of learning gains for graduates and
former enrollees;
(3) the number of former enrollees and graduates who entered
the Armed Forces;
(4) the number of former enrollees who entered post-
secondary education;
(5) the number of former enrollees 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;
(6) the number of former enrollees and graduates who
obtained a secondary school diploma or its recognized
equivalent;
[[Page 112 STAT.1020]]
(7) the number and percentage of dropouts from the Job Corps
program including the number dismissed under the zero tolerance
policy described in section 152(b); and
(8) any additional information required by the Secretary.
(e) Methods.--The Secretary may collect the information described in
subsections (c) and (d) using methods described in section 136(f )(2)
consistent with State law.
(f ) Performance Assessments and Improvements.--
(1) Assessments.--The Secretary shall conduct an annual
assessment of the performance of each Job Corps center. Based on
the assessment, the Secretary shall take measures to
continuously improve the performance of the Job Corps program.
(2) Performance improvement plans.--With respect to a Job
Corps center that fails to meet the expected levels of
performance relating to the core performance measures specified
in subsection (c), the Secretary shall develop and implement a
performance improvement plan. Such a plan shall require action
including--
(A) providing technical assistance to the center;
(B) changing the vocational training offered at the
center;
(C) changing the management staff of the center;
(D) replacing the operator of the center;
(E) reducing the capacity of the center;
(F) relocating the center; or
(G) closing the center.
(3) Additional performance improvement plans.--In addition
to the performance improvement plans required under paragraph
(2), the Secretary may develop and implement additional
performance improvement plans. Such a plan shall require
improvements, including the actions described in paragraph (2),
for a Job Corps center that fails to meet criteria established
by the Secretary other than the expected levels of performance
described in paragraph (2).
(g) Closure of Job Corps Center.--Prior to the closure of any Job
Corps center, the Secretary shall ensure--
(1) <<NOTE: Federal Register, publication.>> that the
proposed decision to close the center is announced in advance to
the general public through publication in the Federal Register
or other appropriate means;
(2) the establishment of a reasonable comment period, not to
exceed 30 days, for interested individuals to submit written
comments to the Secretary; and
(3) that the Member of Congress who represents the district
in which such center is located is notified within a reasonable
period of time in advance of any final decision to close the
center.
SEC. 160. <<NOTE: 29 USC 2900.>> GENERAL PROVISIONS.
The Secretary is authorized to--
(1) disseminate, with regard to the provisions of section
3204 of title 39, United States Code, data and information in
such forms as the Secretary shall determine to be appropriate,
to public agencies, private organizations, and the general
public;
(2) subject to section 157(b), collect or compromise all
obligations to or held by the Secretary and exercise all legal
[[Page 112 STAT.1021]]
or equitable rights accruing to the Secretary in connection with
the payment of obligations until such time as such obligations
may be referred to the Attorney General for suit or collection;
and
(3) expend funds made available for purposes of this
subtitle--
(A) for printing and binding, in accordance with
applicable law (including regulation); and
(B) without regard to any other law (including
regulation), for rent of buildings and space in
buildings and for repair, alteration, and improvement of
buildings and space in buildings rented by the
Secretary, except that the Secretary shall not expend
funds under the authority of this subparagraph--
(i) except when necessary to obtain an item,
service, or facility, that is required in the
proper administration of this subtitle, and that
otherwise could not be obtained, or could not be
obtained in the quantity or quality needed, or at
the time, in the form, or under the conditions in
which the item, service, or facility is needed;
and
(ii) prior to having given written
notification to the Administrator of General
Services (if the expenditure would affect an
activity that otherwise would be under the
jurisdiction of the General Services
Administration) of the intention of the Secretary
to make the expenditure, and the reasons and
justifications for the expenditure.
SEC. 161. <<NOTE: 29 USC 2901.>> AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this subtitle
such sums as may be necessary for each of the fiscal years 1999 through
2003.
Subtitle D--National Programs
SEC. 166. <<NOTE: 29 USC 2911.>> NATIVE AMERICAN PROGRAMS.
(a) Purpose.--
(1) In general.--The purpose of this section is to support
employment and training activities for Indian, Alaska Native,
and Native Hawaiian individuals in order--
(A) to develop more fully the academic,
occupational, and literacy skills of such individuals;
(B) to make such individuals more competitive in the
workforce; and
(C) to promote the economic and social development
of Indian, Alaska Native, and Native Hawaiian
communities in accordance with the goals and values of
such communities.
(2) Indian policy.--All programs assisted under this section
shall be administered in a manner consistent with the principles
of the Indian Self-Determination and Education Assistance Act
(25 U.S.C. 450 et seq.) and the government-to-government
relationship between the Federal Government and Indian tribal
governments.
(b) Definitions.--As used in this section:
[[Page 112 STAT.1022]]
(1) Alaska native.--The term ``Alaska Native'' means a
Native as such term is defined in section 3(b) of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602(b)).
(2) Indian, indian tribe, and tribal organization.--The
terms ``Indian'', ``Indian tribe'', and ``tribal organization''
have the meanings given such terms in subsections (d), (e), and
(l), respectively, of section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450b).
(3) Native hawaiian and native hawaiian organization.--The
terms ``Native Hawaiian'' and ``Native Hawaiian organization''
have the meanings given such terms in paragraphs (1) and (3),
respectively, of section 9212 of the Native Hawaiian Education
Act (20 U.S.C. 7912).
(c) Program Authorized.--
(1) In general.--The <<NOTE: Grants. Contracts.>> Secretary
shall, on a competitive basis, make grants to, or enter into
contracts or cooperative agreements with, Indian tribes, tribal
organizations, Alaska Native entities, Indian-controlled
organizations serving Indians, or Native Hawaiian organizations
to carry out the authorized activities described in subsection
(d).
(2) Exception.--The competition for grants, contracts, or
cooperative agreements conducted under paragraph (1) shall be
conducted every 2 years, except that if a recipient of such a
grant, contract, or agreement has performed satisfactorily, the
Secretary may waive the requirements for such competition on
receipt from the recipient of a satisfactory 2-year program plan
for the succeeding 2-year period of the grant, contract, or
agreement.
(d) Authorized Activities.--
(1) In general.--Funds made available under subsection (c)
shall be used to carry out the activities described in paragraph
(2) that--
(A) are consistent with this section; and
(B) are necessary to meet the needs of Indians or
Native Hawaiians preparing to enter, reenter, or retain
unsubsidized employment.
(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.
(e) Program Plan.--In order to receive a grant or enter into a
contract or cooperative agreement under this section an entity described
in subsection (c) shall submit to the Secretary a program plan that
describes a 2-year strategy for meeting the needs of
[[Page 112 STAT.1023]]
Indian, Alaska Native, or Native Hawaiian individuals, as appropriate,
in the area served by such entity. Such plan shall--
(1) be consistent with the purpose of this section;
(2) identify the population to be served;
(3) identify the education and employment needs of the
population to be served and the manner in which the activities
to be provided will strengthen the ability of the individuals
served to obtain or retain unsubsidized employment;
(4) describe the activities to be provided and the manner in
which such activities are to be integrated with other
appropriate activities; and
(5) describe, after the entity submitting the plan consults
with the Secretary, the performance measures to be used to
assess the performance of entities in carrying out the
activities assisted under this section.
(f ) Consolidation of Funds.--Each entity receiving assistance under
subsection (c) may consolidate such assistance with assistance received
from related programs in accordance with the provisions of the Indian
Employment, Training and Related Services Demonstration Act of 1992 (25
U.S.C. 3401 et seq.).
(g) Nonduplicative and Nonexclusive Services.--Nothing in this
section shall be construed--
(1) to limit the eligibility of any entity described in
subsection (c) to participate in any activity offered by a State
or local entity under this Act; or
(2) to preclude or discourage any agreement, between any
entity described in subsection (c) and any State or local
entity, to facilitate the provision of services by such entity
or to the population served by such entity.
(h) Administrative Provisions.--
(1) Organizational unit established.--The Secretary shall
designate a single organizational unit within the Department of
Labor that shall have primary responsibility for the
administration of the activities authorized under this section.
(2) Regulations.--The Secretary shall consult with the
entities described in subsection (c) in--
(A) establishing regulations to carry out this
section, including performance measures for entities
receiving assistance under such subsection, taking into
account the economic circumstances of such entities; and
(B) developing a funding distribution plan that
takes into consideration previous levels of funding
(prior to the date of enactment of this Act) to such
entities.
(3) Waivers.--
(A) In general.--With respect to an entity described
in subsection (c), the Secretary, notwithstanding any
other provision of law, may, pursuant to a request
submitted by such entity that meets the requirements
established under paragraph (2), waive any of the
statutory or regulatory requirements of this title that
are inconsistent with the specific needs of the entities
described in such subsection, except that the Secretary
may not waive requirements relating to wage and labor
standards, worker rights, participation and protection
of workers and participants, grievance procedures, and
judicial review.
(B) Request and approval.--An entity described in
subsection (c) that requests a waiver under subparagraph
[[Page 112 STAT.1024]]
(A) shall submit a plan to the Secretary to improve the
program of workforce investment activities carried out
by the entity, which plan shall meet the requirements
established by the Secretary and shall be generally
consistent with the requirements of section
189(i)(4)(B).
(4) <<NOTE: Establishment.>> Advisory council.--
(A) In general.--Using funds made available to carry
out this section, the Secretary shall establish a Native
American Employment and Training Council to facilitate
the consultation described in paragraph (2).
(B) Composition.--The Council shall be composed of
individuals, appointed by the Secretary, who are
representatives of the entities described in subsection
(c).
(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).
(D) Personnel matters.--
(i) Compensation of members.--Members of the
Council shall serve without compensation.
(ii) Travel expenses.--The members of the
Council shall be allowed travel expenses,
including per diem in lieu of subsistence, at
rates authorized for employees of agencies under
subchapter I of chapter 57 of title 5, United
States Code, while away from their homes or
regular places of business in the performance of
services for the Council.
(iii) Administrative support.--The Secretary
shall provide the Council with such administrative
support as may be necessary to perform the
functions of the Council.
(E) Chairperson.--The Council shall select a
chairperson from among its members.
(F) Meetings.--The Council shall meet not less than
twice each year.
(G) Application.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the
Council.
(5) Technical assistance.--The Secretary, acting through the
unit established under paragraph (1), is authorized to provide
technical assistance to entities described in subsection (c)
that receive assistance under subsection (c) to enable such
entities to improve the activities authorized under this section
that are provided by such entities.
(6) Agreement for certain federally recognized indian tribes
to transfer funds to the program.--A federally recognized Indian
tribe that administers funds provided under this section and
funds provided by more than one State under other sections of
this title may enter into an agreement with the Secretary and
the Governors of the affected States to transfer the funds
provided by the States to the program administered by the tribe
under this section.
(i) Compliance With Single Audit Requirements; Related
Requirement.--Grants, contracts, and cooperative agreements entered into
under this section shall be subject to the requirements of chapter 75 of
subtitle V of title 31, United States Code (enacted
[[Page 112 STAT.1025]]
by the Single Audit Act of 1984) and charging of costs under this
section shall be subject to appropriate circulars issued by the Office
of Management and Budget.
( 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. 167. <<NOTE: Grants. Contracts. 29 USC 2912.>> MIGRANT AND
SEASONAL FARMWORKER PROGRAMS.
(a) In General.--Every 2 years, the Secretary shall, on a
competitive basis, make grants to, or enter into contracts with,
eligible entities to carry out the activities described in subsection
(d).
(b) Eligible Entities.--To be eligible to receive a grant or enter
into a contract under this section, an entity shall have an
understanding of the problems of eligible migrant and seasonal
farmworkers (including dependents), a familiarity with the area to be
served, and the ability to demonstrate a capacity to administer
effectively a diversified program of workforce investment activities
(including youth activities) and related assistance for eligible migrant
and seasonal farmworkers.
(c) Program Plan.--
(1) In general.--To be eligible to receive a grant or enter
into a contract under this section, an entity described in
subsection (b) shall submit to the Secretary a plan that
describes a 2-year strategy for meeting the needs of eligible
migrant and seasonal farmworkers in the area to be served by
such entity.
(2) Contents.--Such plan shall--
(A) identify the education and employment needs of
the population to be served and the manner in which the
services to be provided will strengthen the ability of
the eligible migrant and seasonal farmworkers and
dependents to obtain or retain unsubsidized employment
or stabilize their unsubsidized employment;
(B) describe the related assistance and supportive
services to be provided and the manner in which such
assistance and services are to be integrated and
coordinated with other appropriate services; and
(C) describe the indicators of performance to be
used to assess the performance of such entity in
carrying out the activities assisted under this section.
(3) Administration.--Grants and contracts awarded under this
section shall be centrally administered by the Department of
Labor and competitively awarded by the Secretary using
procedures consistent with standard Federal Government
competitive procurement policies.
(4) Competition.--
(A) In general.--The competition for grants made and
contracts entered into under this section shall be
conducted every 2 years.
[[Page 112 STAT.1026]]
(B) Exception.--Notwithstanding subparagraph (A), if
a recipient of such a grant or contract has performed
satisfactorily under the terms of the grant agreement or
contract, the Secretary may waive the requirement for
such competition for such recipient upon receipt from
the recipient of a satisfactory 2-year plan described in
paragraph (1) for the succeeding 2-year grant or
contract period. The Secretary may exercise the waiver
authority of the preceding sentence not more than once
during any 4-year period with respect to any single
recipient.
(d) Authorized Activities.--Funds made available under this section
shall be used to carry out workforce investment activities (including
youth activities) and provide related assistance for eligible migrant
and seasonal farmworkers, which may include employment, training,
educational assistance, literacy assistance, an English language
program, worker safety training, housing, supportive services, dropout
prevention activities, followup services for those individuals placed in
employment, self-employment and related business enterprise development
education as needed by eligible migrant and seasonal farmworkers and
identified pursuant to the plan required by subsection (c), and
technical assistance relating to capacity enhancement in such areas as
management information technology.
(e) Consultation With Governors and Local Boards.--In making grants
and entering into contracts under this section, the Secretary shall
consult with the Governors and local boards of the States in which the
eligible entities will carry out the activities described in subsection
(d).
(f ) Regulations.--The Secretary shall consult with eligible migrant
and seasonal farmworkers groups and States in establishing regulations
to carry out this section, including performance measures for eligible
entities that take into account the economic circumstances and
demographics of eligible migrant and seasonal farmworkers.
(g) Compliance With Single Audit Requirements; Related
Requirement.--Grants and contracts entered into under this section shall
be subject to the requirements of chapter 75 of subtitle V of title 31,
United States Code (enacted by the Single Audit Act of 1984) and
charging of costs under this section shall be subject to appropriate
circulars issued by the Office of Management and Budget.
(h) Definitions.--In this section:
(1) Disadvantaged.--The term ``disadvantaged'', used with
respect to a farmworker, means a farmworker whose income, for 12
consecutive months out of the 24 months prior to application for
the program involved, does not exceed the higher of--
(A) the poverty line (as defined in section
334(a)(2)(B)) for an equivalent period; or
(B) 70 percent of the lower living standard income
level, for an equivalent period.
(2) Eligible migrant and seasonal farmworkers.--The term
``eligible migrant and seasonal farmworkers'' means individuals
who are eligible migrant farmworkers or are eligible seasonal
farmworkers.
(3) Eligible migrant farmworker.--The term ``eligible
migrant farmworker'' means--
[[Page 112 STAT.1027]]
(A) an eligible seasonal farmworker described in
paragraph (4)(A) whose agricultural labor requires
travel to a job site such that the farmworker is unable
to return to a permanent place of residence within the
same day; and
(B) a dependent of the farmworker described in
subparagraph (A).
(4) Eligible seasonal farmworker.--The term ``eligible
seasonal farmworker'' means--
(A) a disadvantaged person who, for 12 consecutive
months out of the 24 months prior to application for the
program involved, has been primarily employed in
agricultural labor that is characterized by chronic
unemployment or underemployment; and
(B) a dependent of the person described in
subparagraph (A).
SEC. 168. <<NOTE: Grants. Contracts. 29 USC 2913.>> VETERANS' WORKFORCE
INVESTMENT PROGRAMS.
(a) Authorization.--
(1) In general.--The Secretary shall conduct, directly or
through grants or contracts, programs to meet the needs for
workforce investment activities of veterans with service-
connected disabilities, veterans who have significant barriers
to employment, veterans who served on active duty in the armed
forces during a war or in a campaign or expedition for which a
campaign badge has been authorized, and recently separated
veterans.
(2) Conduct of programs.--Programs supported under this
section may be conducted through grants and contracts with
public agencies and private nonprofit organizations, including
recipients of Federal assistance under other provisions of this
title, that the Secretary determines have an understanding of
the unemployment problems of veterans described in paragraph
(1), familiarity with the area to be served, and the capability
to administer effectively a program of workforce investment
activities for such veterans.
(3) Required activities.--Programs supported under this
section shall include--
(A) activities to enhance services provided to
veterans by other providers of workforce investment
activities funded by Federal, State, or local
government;
(B) activities to provide workforce investment
activities to such veterans that are not adequately
provided by other public providers of workforce
investment activities; and
(C) outreach and public information activities to
develop and promote maximum job and job training
opportunities for such veterans and to inform such
veterans about employment, job training, on-the-job
training and educational opportunities under this title,
under title 38, United States Code, and under other
provisions of law, which activities shall be coordinated
with activities provided through the one-stop centers
described in section 134(c).
(b) Administration of Programs.--
(1) In general.--The Secretary shall administer programs
supported under this section through the Assistant Secretary for
Veterans' Employment and Training.
[[Page 112 STAT.1028]]
(2) Additional responsibilities.--In carrying out
responsibilities under this section, the Assistant Secretary for
Veterans' Employment and Training shall--
(A) be responsible for the awarding of grants and
contracts and the distribution of funds under this
section and for the establishment of appropriate fiscal
controls, accountability, and program performance
measures for recipients of grants and contracts under
this section; and
(B) consult with the Secretary of Veterans Affairs
and take steps to ensure that programs supported under
this section are coordinated, to the maximum extent
feasible, with related programs and activities conducted
under title 38, United States Code, including programs
and activities conducted under subchapter II of chapter
77 of such title, chapters 30, 31, 32, and 34 of such
title, and sections 1712A, 1720A, 3687, and 4103A of
such title.
SEC. 169. <<NOTE: 29 USC 2914.>> 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--
[[Page 112 STAT.1029]]
(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 Native villages or Native
groups (as such terms are defined in section 3 of the
Alaska Native Claims Settlement Act (43 U.S.C. 1602)).
(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.--
[[Page 112 STAT.1030]]
(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. 170. <<NOTE: 29 USC 2915.>> TECHNICAL ASSISTANCE.
(a) General Technical Assistance.--
(1) 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, and, in particular, to
assist States in making transitions from carrying out activities
under the provisions of law repealed under section 199 to carry
out activities under this title.
(2) 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) 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 174(b).
[[Page 112 STAT.1031]]
SEC. 171. <<NOTE: 29 USC 2916.>> DEMONSTRATION, PILOT, MULTISERVICE,
RESEARCH, AND MULTISTATE PROJECTS.
(a) Strategic Plan.--
(1) <<NOTE: Federal Register, publication.>> In general.--
After consultation with States, localities, and other interested
parties, the Secretary shall, every 2 years, publish in the
Federal Register, a plan that describes the demonstration and
pilot (including dislocated worker demonstration and pilot),
multiservice, research, and multistate project priorities of the
Department of Labor concerning employment and training for the
5-year period following the submission of the plan. Copies of
the plan shall be transmitted to the appropriate committees of
Congress.
(2) Factors.--The plan published under paragraph (1) shall
contain strategies to address national employment and training
problems and take into account factors such as--
(A) the availability of existing research (as of the
date of the publication);
(B) the need to ensure results that have interstate
validity;
(C) the benefits of economies of scale and the
efficiency of proposed projects; and
(D) the likelihood that the results of the projects
will be useful to policymakers and stakeholders in
addressing employment and training problems.
(b) <<NOTE: Grants. Contracts.>> Demonstration and Pilot
Projects.--
(1) In general.--Under a 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;
(F) the establishment of partnerships with national
organizations with special expertise in developing,
organizing, and administering employment and training
services,
[[Page 112 STAT.1032]]
for individuals with disabilities, at the national,
State, and local levels;
(G) 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.
(2) Limitations.--
(A) Competitive awards.--Grants or contracts awarded
for carrying out demonstration and pilot projects under
this subsection shall be awarded only on a competitive
basis, except that a noncompetitive award may be made in
the case of a project that is funded jointly with other
public or private sector entities that provide a portion
of the funding for the project.
(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) Time limits.--The Secretary shall establish
appropriate time limits for carrying out demonstration
and pilot projects under this subsection.
(c) <<NOTE: Grants. Contracts.>> Multiservice Projects, Research
Projects, and Multistate Projects.--
(1) Multiservice projects.--Under a plan published under
subsection (a), the Secretary shall, through grants or
contracts, carry out multiservice projects--
(A) that will test an array of approaches to the
provision of employment and training services to a
variety of targeted populations;
(B) in which the entity carrying out the project, in
conjunction with employers, organized labor, and other
groups such as the disability community, will design,
develop, and test various training approaches in order
to determine effective practices; and
(C) that will assist in the development and
replication of effective service delivery strategies for
targeted populations for the national employment and
training system as a whole.
(2) Research projects.--
(A) In general.--Under a plan published under
subsection (a), the Secretary shall, through grants or
contracts, carry out research projects that will
contribute to the solution of employment and training
problems in the United States.
(B) Formula improvement study and report.--
[[Page 112 STAT.1033]]
(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.
(3) Multistate projects.--
(A) In general.--
(i) Authority.--Under a plan published under
subsection (a), the Secretary may, through grants
or contracts, carry out multistate projects that
require demonstrated expertise that is available
at the national level to effectively disseminate
best practices and models for implementing
employment and training services, address the
specialized employment and training needs of
particular service populations, or address
industry-wide skill shortages.
(ii) Design of grants.--Grants or contracts
awarded under this subsection shall be designed to
obtain information relating to the provision of
services under different economic conditions or to
various demographic groups in order to provide
guidance at the national and State levels about
how best to administer specific employment and
training services.
(4) Limitations.--
(A) Competitive awards.--Grants or contracts awarded
for carrying out projects under this subsection in
amounts that exceed $100,000 shall be awarded only on a
competitive basis, except that a noncompetitive award
may be made in the case of a project that is funded
jointly with other public or private sector entities
that provide a substantial portion of assistance under
the grant or contract for the project.
(B) Time limits.--A grant or contract shall not be
awarded under this subsection to the same organization
for more than 3 consecutive years unless such grant or
contract is competitively reevaluated within such
period.
(C) Peer review.--
(i) In general.--The Secretary shall utilize a
peer review process--
(I) to review and evaluate all
applications for grants in amounts that
exceed $500,000 that are submitted under
this section; and
[[Page 112 STAT.1034]]
(II) to review and designate
exemplary and promising programs under
this section.
(ii) Availability of funds.--The Secretary is
authorized to use funds provided under this
section to carry out peer review activities under
this subparagraph.
(D) Priority.--In awarding grants or contracts under
this subsection, priority shall be provided to entities
with nationally recognized expertise in the methods,
techniques, and knowledge of workforce investment
activities and shall include appropriate time limits,
established by the Secretary, for the duration of such
projects.
(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. 172. <<NOTE: 29 USC 2917.>> EVALUATIONS.
(a) Programs and Activities Carried Out Under This Title.--For the
purpose of improving the management and effectiveness of programs and
activities carried out under this title, the Secretary shall provide for
the continuing evaluation of the programs and activities, including
those programs and activities carried out under section 171. Such
evaluations shall address--
(1) the general effectiveness of such programs and
activities in relation to their cost, including the extent to
which the programs and activities--
(A) improve the employment competencies of
participants in comparison to comparably-situated
individuals who did not participate in such programs and
activities; and
(B) to the extent feasible, increase the level of
total employment over the level that would have existed
in the absence of such programs and activities;
(2) the effectiveness of the performance measures relating
to such programs and activities;
(3) the effectiveness of the structure and mechanisms for
delivery of services through such programs and activities;
(4) the impact of the programs and activities on the
community and participants involved;
(5) the impact of such programs and activities on related
programs and activities;
(6) the extent to which such programs and activities meet
the needs of various demographic groups; and
(7) such other factors as may be appropriate.
[[Page 112 STAT.1035]]
(b) Other Programs and Activities.--The Secretary may conduct
evaluations of other federally funded employment-related programs and
activities under other provisions of law.
(c) Techniques.--Evaluations conducted under this section shall
utilize appropriate methodology and research designs, including the use
of control groups chosen by scientific random assignment methodologies.
The Secretary shall conduct as least 1 multisite control group
evaluation under this section by the end of fiscal year 2005.
(d) Reports.--The entity carrying out an evaluation described in
subsection (a) or (b) shall prepare and submit to the Secretary a draft
report and a final report containing the results of the evaluation.
(e) <<NOTE: Deadlines.>> Reports to Congress.--Not later than 30
days after the completion of such a draft report, the Secretary shall
transmit the draft 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. Not later than 60 days after the
completion of such a final report, the Secretary shall transmit the
final report to such committees of the Congress.
(f ) Coordination.--The Secretary shall ensure the coordination of
evaluations carried out by States pursuant to section 136(e) with the
evaluations carried out under this section.
SEC. 173. <<NOTE: 29 USC 2918.>> NATIONAL EMERGENCY GRANTS.
(a) In General.--The Secretary is authorized to award national
emergency grants in a timely manner--
(1) to an entity described in subsection (c) 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;
(2) to provide assistance to the Governor of any State
within the boundaries of which is an area that has suffered an
emergency or a major disaster as defined in paragraphs (1) and
(2), respectively, of section 102 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122 (1)
and (2)) (referred to in this section as the ``disaster area'')
to provide disaster relief employment in the area; and
(3) to provide additional assistance to a State or local
board for eligible dislocated workers in a case in which the
State or local board has expended the funds provided under this
section to carry out activities described in paragraphs (1) and
(2) and can demonstrate the need for additional funds to provide
appropriate services for such workers, in accordance with
requirements prescribed by the Secretary.
(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) Employment and Training Assistance Requirements.--
(1) Grant recipient eligibility.--
(A) Application.--To be eligible to receive a grant
under subsection (a)(1), an entity shall submit an
application to the Secretary at such time, in such
manner, and containing such information as the Secretary
may require.
[[Page 112 STAT.1036]]
(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.
(2) Participant eligibility.--
(A) In general.--In order to be eligible to receive
employment and training assistance under a national
emergency grant awarded pursuant to subsection (a)(1),
an individual shall be--
(i) a dislocated worker;
(ii) a civilian employee of the Department of
Defense or the Department of Energy employed at a
military installation that is being closed, or
that will undergo realignment, within the next 24
months after the date of the determination of
eligibility;
(iii) an individual who is employed in a
nonmanagerial position with a Department of
Defense contractor, who is determined by the
Secretary of Defense to be at-risk of termination
from employment as a result of reductions in
defense expenditures, and whose employer is
converting operations from defense to nondefense
applications in order to prevent worker layoffs;
or
(iv) a member of the Armed Forces who--
(I) was on active duty or full-time
National Guard duty;
(II)(aa) is involuntarily separated
(as defined in section 1141 of title 10,
United States Code) from active duty or
full-time National Guard duty; or
(bb) is separated from active duty
or full-time National Guard duty
pursuant to a special separation
benefits program under section 1174a of
title 10, United States Code, or the
voluntary separation incentive program
under section 1175 of that title;
(III) is not entitled to retired or
retained pay incident to the separation
described in subclause (II); and
(IV) applies for such employment and
training assistance before the end of
the 180-day period beginning on the date
of that separation.
(B) Retraining assistance.--The individuals
described in subparagraph (A)(iii) shall be eligible for
retraining assistance to upgrade skills by obtaining
marketable skills needed to support the conversion
described in subparagraph (A)(iii).
(C) <<NOTE: Publication.>> Additional
requirements.--The Secretary shall establish and publish
additional requirements related to eligibility for
employment and training assistance under the national
emergency grants to ensure effective use of the funds
available for this purpose.
(D) Definitions.--In this paragraph, the terms
``military institution'' and ``realignment'' have the
meanings
[[Page 112 STAT.1037]]
given the terms in section 2910 of the Defense Base
Closure and Realignment Act of 1990 (Public Law 101-510;
10 U.S.C. 2687 note).
(d) Disaster Relief Employment Assistance Requirements.--
(1) In general.--Funds made available under subsection
(a)(2)--
(A) shall be used to provide disaster relief
employment on projects that provide food, clothing,
shelter, and other humanitarian assistance for disaster
victims, and projects regarding demolition, cleaning,
repair, renovation, and reconstruction of damaged and
destroyed structures, facilities, and lands located
within the disaster area;
(B) may be expended through public and private
agencies and organizations engaged in such projects; and
(C) may be expended to provide employment and
training activities.
(2) Eligibility.--An individual shall be eligible to be
offered disaster relief employment under subsection (a)(2) if
such individual is a dislocated worker, is a long-term
unemployed individual, or is temporarily or permanently laid off
as a consequence of the disaster.
(3) Limitations on disaster relief employment.--No
individual shall be employed under subsection (a)(2) for more
than 6 months for work related to recovery from a single natural
disaster.
SEC. 174. <<NOTE: 29 USC 2919.>> 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.
(2) Reservations.--Of the amount appropriated pursuant to
the authorization of appropriations under paragraph (1) for a
fiscal year, the Secretary shall--
(A) reserve not less than $55,000,000 for carrying
out section 166;
(B) reserve not less than $70,000,000 for carrying
out section 167; and
(C) reserve not less than $7,300,000 for carrying
out section 168.
(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);
[[Page 112 STAT.1038]]
(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.
Subtitle E--Administration
SEC. 181. <<NOTE: 29 USC 2931.>> REQUIREMENTS AND RESTRICTIONS.
(a) Benefits.--
(1) Wages.--
(A) In general.--Individuals in on-the-job training
or individuals employed in activities under this title
shall be compensated at the same rates, including
periodic increases, as trainees or employees who are
similarly situated in similar occupations by the same
employer and who have similar training, experience, and
skills, and such rates shall be in accordance with
applicable law, but in no event less than the higher of
the rate specified in section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the
applicable State or local minimum wage law.
(B) Rule of construction.--The reference in
subparagraph (A) to section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1))--
(i) shall be deemed to be a reference to
section 6(a)(3) of that Act for individuals in
American Samoa; and
(ii) shall not be applicable for individuals
in other territorial jurisdictions in which
section 6 of the Fair Labor Standards Act of 1938
does not apply.
(2) Treatment of allowances, earnings, and payments.--
Allowances, earnings, and payments to individuals participating
in programs under this title shall not be considered as income
for the purposes of determining eligibility for and the amount
of income transfer and in-kind aid furnished under any Federal
or federally assisted program based on need, other than as
provided under the Social Security Act (42 U.S.C. 301 et seq.).
[[Page 112 STAT.1039]]
(b) Labor Standards.--
(1) Limitations on activities that impact wages of
employees.--No funds provided under this title shall be used to
pay the wages of incumbent employees during their participation
in economic development activities provided through a statewide
workforce investment system.
(2) Displacement.--
(A) Prohibition.--A participant in a program or
activity authorized under this title (referred to in
this section as a ``specified activity'') shall not
displace (including a partial displacement, such as a
reduction in the hours of nonovertime work, wages, or
employment benefits) any currently employed employee (as
of the date of the participation).
(B) Prohibition on impairment of contracts.--A
specified activity shall not impair an existing contract
for services or collective bargaining agreement, and no
such activity that would be inconsistent with the terms
of a collective bargaining agreement shall be undertaken
without the written concurrence of the labor
organization and employer concerned.
(3) Other prohibitions.--A participant in a specified
activity shall not be employed in a job if--
(A) any other individual is on layoff from the same
or any substantially equivalent job;
(B) the employer has terminated the employment of
any regular employee or otherwise reduced the workforce
of the employer with the intention of filling the
vacancy so created with the participant; or
(C) the job is created in a promotional line that
will infringe in any way upon the promotional
opportunities of currently employed individuals (as of
the date of the participation).
(4) Health and safety.--Health and safety standards
established under Federal and State law otherwise applicable to
working conditions of employees shall be equally applicable to
working conditions of participants engaged in specified
activities. To the extent that a State workers' compensation law
applies, workers' compensation shall be provided to participants
on the same basis as the compensation is provided to other
individuals in the State in similar employment.
(5) Employment conditions.--Individuals in on-the-job
training or individuals employed in programs and activities
under this title, shall be provided benefits and working
conditions at the same level and to the same extent as other
trainees or employees working a similar length of time and doing
the same type of work.
(6) Opportunity to submit comments.--Interested members of
the public, including representatives of businesses and of labor
organizations, shall be provided an opportunity to submit
comments to the Secretary with respect to programs and
activities proposed to be funded under subtitle B.
(7) No impact on union organizing.--Each recipient of funds
under this title shall provide to the Secretary assurances that
none of such funds will be used to assist, promote, or deter
union organizing.
(c) Grievance Procedure.--
[[Page 112 STAT.1040]]
(1) In general.--Each State and local area receiving an
allotment under this title shall establish and maintain a
procedure for grievances or complaints alleging violations of
the requirements of this title from participants and other
interested or affected parties. Such procedure shall include an
opportunity for a hearing and be completed within 60 days after
the filing of the grievance or complaint.
(2) Investigation.--
(A) In general.--The Secretary shall investigate an
allegation of a violation described in paragraph (1)
if--
(i) a decision relating to such violation has
not been reached within 60 days after the date of
the filing of the grievance or complaint and
either party appeals to the Secretary; or
(ii) a decision relating to such violation has
been reached within such 60 days and the party to
which such decision is adverse appeals such
decision to the Secretary.
(B) <<NOTE: Deadline.>> Additional requirement.--
The Secretary shall make a final determination relating
to an appeal made under subparagraph (A) no later than
120 days after receiving such appeal.
(3) Remedies.--Remedies that may be imposed under this
section for a violation of any requirement of this title shall
be limited--
(A) to suspension or termination of payments under
this title;
(B) to prohibition of placement of a participant
with an employer that has violated any requirement under
this title;
(C) where applicable, to reinstatement of an
employee, payment of lost wages and benefits, and
reestablishment of other relevant terms, conditions, and
privileges of employment; and
(D) where appropriate, to other equitable relief.
(4) Rule of construction.--Nothing in paragraph (3) shall be
construed to prohibit a grievant or complainant from pursuing a
remedy authorized under another Federal, State, or local law for
a violation of this title.
(d) Relocation.--
(1) Prohibition on use of funds to encourage or induce
relocation.--No funds provided under this title shall be used,
or proposed for use, to encourage or induce the relocation of a
business or part of a business if such relocation would result
in a loss of employment for any employee of such business at the
original location and such original location is within the
United States.
(2) Prohibition on use of funds for customized or skill
training and related activities after relocation.--No funds
provided under this title for an employment and training
activity shall be used for customized or skill training, on-the-
job training, or company-specific assessments of job applicants
or employees, for any business or part of a business that has
relocated, until the date that is 120 days after the date on
which such business commences operations at the new location, if
the relocation of such business or part of a business results in
a loss of employment for any employee
[[Page 112 STAT.1041]]
of such business at the original location and such original
location is within the United States.
(3) Repayment.--If the Secretary determines that a violation
of paragraph (1) or (2) has occurred, the Secretary shall
require the State that has violated such paragraph to repay to
the United States an amount equal to the amount expended in
violation of such paragraph.
(e) 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.
(f ) Testing and Sanctioning for Use of Controlled Substances.--
(1) In general.--Notwithstanding any other provision of law,
a State shall not be prohibited by the Federal Government from--
(A) testing participants in programs under subtitle
B for the use of controlled substances; and
(B) sanctioning such participants who test positive
for the use of such controlled substances.
(2) Additional requirements.--
(A) Period of sanction.--In sanctioning participants
in programs under subtitle B who test positive for the
use of controlled substances--
(i) with respect to the first occurrence for
which a participant tests positive, a State may
exclude the participant from the program for a
period not to exceed 6 months; and
(ii) with respect to the second occurrence and
each subsequent occurrence for which a participant
tests positive, a State may exclude the
participant from the program for a period not to
exceed 2 years.
(B) Appeal.--The testing of participants and the
imposition of sanctions under this subsection shall be
subject to expeditious appeal in accordance with due
process procedures established by the State.
(C) <<NOTE: Procedures.>> Privacy.--A State shall
establish procedures for testing participants for the
use of controlled substances that ensure a maximum
degree of privacy for the participants.
(4) Funding requirement.--In testing and sanctioning of
participants for the use of controlled substances in accordance
with this subsection, the only Federal funds that a State may
use are the amounts made available for the administration of
statewide workforce investment activities under section
134(a)(3)(B).
SEC. 182. <<NOTE: 29 USC 2932.>> PROMPT ALLOCATION OF FUNDS.
(a) Allotments Based on Latest Available Data.--All allotments to
States and grants to outlying areas under this title shall be based on
the latest available data and estimates satisfactory to the Secretary.
All data relating to disadvantaged adults and disadvantaged youth shall
be based on the most recent satisfactory data from the Bureau of the
Census.
[[Page 112 STAT.1042]]
(b) Publication in Federal Register Relating to Formula Funds.--
Whenever the Secretary allots funds required to be allotted under this
title, the Secretary shall publish in a timely fashion in the Federal
Register the proposed amount to be distributed to each recipient of the
funds.
(c) <<NOTE: Deadline.>> Requirement for Funds Distributed by
Formula.--All funds required to be allotted under section 127 or 132
shall be allotted within 45 days after the date of enactment of the Act
appropriating the funds, except that, if such funds are appropriated in
advance as authorized by section 189(g), such funds shall be allotted or
allocated not later than the March 31 preceding the program year for
which such funds are to be available for obligation.
(d) <<NOTE: Deadline.>> Publication in Federal Register Relating to
Discretionary Funds.--Whenever the Secretary utilizes a formula to allot
or allocate funds made available for distribution at the Secretary's
discretion under this title, the Secretary shall, not later than 30 days
prior to such allotment or allocation, publish such formula in the
Federal Register for comments along with the rationale for the formula
and the proposed amounts to be distributed to each State and local area.
After consideration of any comments received, the Secretary shall
publish final allotments and allocations in the Federal Register.
(e) <<NOTE: Deadline.>> Availability of Funds.--Funds shall be made
available under sections 128 and 133 for a local area not later than 30
days after the date the funds are made available to the Governor
involved, under section 127 or 132 (as the case may be), or 7 days after
the date the local plan for the area is approved, whichever is later.
SEC. 183. <<NOTE: 29 USC 2933.>> MONITORING.
(a) In General.--The Secretary is authorized to monitor all
recipients of financial assistance under this title to determine whether
the recipients are complying with the provisions of this title,
including the regulations issued under this title.
(b) Investigations.--The Secretary may investigate any matter the
Secretary determines to be necessary to determine the compliance of the
recipients with this title, including the regulations issued under this
title. The investigations authorized by this subsection may include
examining records (including making certified copies of the records),
questioning employees, and entering any premises or onto any site in
which any part of a program or activity of such a recipient is conducted
or in which any of the records of the recipient are kept.
(c) Additional Requirement.--For the purpose of any investigation or
hearing conducted under this title by the Secretary, the provisions of
section 9 of the Federal Trade Commission Act (15 U.S.C. 49) (relating
to the attendance of witnesses and the production of documents) apply to
the Secretary, in the same manner and to the same extent as the
provisions apply to the Federal Trade Commission.
SEC. 184. <<NOTE: 29 USC 2934.>> FISCAL CONTROLS; SANCTIONS.
(a) Establishment of Fiscal Controls by States.--
(1) In general.--Each State shall establish such fiscal
control and fund accounting procedures as may be necessary to
assure the proper disbursal of, and accounting for, Federal
funds allocated to local areas under subtitle B. Such procedures
shall ensure that all financial transactions carried out under
[[Page 112 STAT.1043]]
subtitle B are conducted and records maintained in accordance
with generally accepted accounting principles applicable in each
State.
(2) Cost principles.--
(A) In general.--Each State (including the Governor
of the State), local area (including the chief elected
official for the area), and provider receiving funds
under this title shall comply with the applicable
uniform cost principles included in the appropriate
circulars of the Office of Management and Budget for the
type of entity receiving the funds.
(B) Exception.--The funds made available to a State
for administration of statewide workforce investment
activities in accordance with section 134(a)(3)(B) shall
be allocable to the overall administration of workforce
investment activities, but need not be specifically
allocable to--
(i) the administration of adult employment and
training activities;
(ii) the administration of dislocated worker
employment and training activities; or
(iii) the administration of youth activities.
(3) Uniform administrative requirements.--
(A) In general.--Each State (including the Governor
of the State), local area (including the chief elected
official for the area), and provider receiving funds
under this title shall comply with the appropriate
uniform administrative requirements for grants and
agreements applicable for the type of entity receiving
the funds, as promulgated in circulars or rules of the
Office of Management and Budget.
(B) Additional requirement.--Procurement
transactions under this title between local boards and
units of State or local governments shall be conducted
only on a cost-reimbursable basis.
(4) Monitoring.--Each Governor of a State shall conduct on
an annual basis onsite monitoring of each local area within the
State to ensure compliance with the uniform administrative
requirements referred to in paragraph (3).
(5) Action by governor.--If the Governor determines that a
local area is not in compliance with the uniform administrative
requirements referred to in paragraph (3), the Governor shall--
(A) require corrective action to secure prompt
compliance; and
(B) impose the sanctions provided under subsection
(b) in the event of failure to take the required
corrective action.
(6) Certification.--The Governor shall, every 2 years,
certify to the Secretary that--
(A) the State has implemented the uniform
administrative requirements referred to in paragraph
(3);
(B) the State has monitored local areas to ensure
compliance with the uniform administrative requirements
as required under paragraph (4); and
(C) the State has taken appropriate action to secure
compliance pursuant to paragraph (5).
[[Page 112 STAT.1044]]
(7) Action by the secretary.--If the Secretary determines
that the Governor has not fulfilled the requirements of this
subsection, the Secretary shall--
(A) require corrective action to secure prompt
compliance; and
(B) impose the sanctions provided under subsection
(e) in the event of failure of the Governor to take the
required appropriate action to secure compliance.
(b) Substantial Violation.--
(1) Action by governor.--If, as a result of financial and
compliance audits or otherwise, the Governor determines that
there is a substantial violation of a specific provision of this
title, and corrective action has not been taken, the Governor
shall--
(A) issue a notice of intent to revoke approval of
all or part of the local plan affected; or
(B) impose a reorganization plan, which may
include--
(i) decertifying the local board involved;
(ii) prohibiting the use of eligible
providers;
(iii) selecting an alternative entity to
administer the program for the local area
involved;
(iv) merging the local area into one or more
other local areas; or
(v) making other such changes as the Secretary
or Governor determines necessary to secure
compliance.
(2) Appeal.--
(A) In general.--The actions taken by the Governor
pursuant to subparagraphs (A) and (B) of paragraph (1)
may be appealed to the Secretary and shall not become
effective until--
(i) the time for appeal has expired; or
(ii) the Secretary has issued a decision.
(B) Additional <<NOTE: Deadline.>> requirement.--The
Secretary shall make a final decision under subparagraph
(A) not later than 45 days after the receipt of the
appeal.
(3) Action by the secretary.--If the Governor fails to
promptly take the actions required under paragraph (1), the
Secretary shall take such actions.
(c) Repayment of Certain Amounts to the United States.--
(1) In general.--Every recipient of funds under this title
shall repay to the United States amounts found not to have been
expended in accordance with this title.
(2) Offset of repayment.--If the Secretary determines that a
State has expended funds made available under this title in a
manner contrary to the requirements of this title, the Secretary
may offset repayment of such expenditures against any other
amount to which the State is or may be entitled, except as
provided under subsection (d)(1).
(3) Repayment from deduction by state.--If the Secretary
requires a State to repay funds as a result of a determination
that a local area of the State has expended funds contrary to
the requirements of this title, the Governor of the State may
use an amount deducted under paragraph (4) to repay the funds,
except as provided under subsection (e)(1).
(4) Deduction by state.--The Governor may deduct an amount
equal to the misexpenditure described in paragraph
[[Page 112 STAT.1045]]
(3) from subsequent program year allocations to the local area
from funds reserved for the administrative costs of the local
programs involved, as appropriate.
(5) Limitations.--A deduction made by a State as described
in paragraph (4) shall not be made until such time as the
Governor has taken appropriate corrective action to ensure full
compliance within such local area with regard to appropriate
expenditures of funds under this title.
(d) Repayment of Amounts.--
(1) In general.--Each recipient of funds under this title
shall be liable to repay the amounts described in subsection
(c)(1), from funds other than funds received under this title,
upon a determination by the Secretary that the misexpenditure of
funds was due to willful disregard of the requirements of this
title, gross negligence, failure to observe accepted standards
of administration, or a pattern of misexpenditure as described
in paragraphs (2) and (3) of subsection (c). No such
determination shall be made under this subsection or subsection
(c) until notice and opportunity for a fair hearing has been
given to the recipient.
(2) Factors in imposing sanctions.--In determining whether
to impose any sanction authorized by this section against a
recipient for violations by a subgrantee or contractor of such
recipient under this title (including the regulations issued
under this title), the Secretary shall first determine whether
such recipient has adequately demonstrated that the recipient
has--
(A) established and adhered to an appropriate system
for the award and monitoring of grants and contracts
with subgrantees and contractors that contains
acceptable standards for ensuring accountability;
(B) entered into a written grant agreement or
contract with such subgrantee or contractor that
established clear goals and obligations in unambiguous
terms;
(C) acted with due diligence to monitor the
implementation of the grant agreement or contract,
including the carrying out of the appropriate monitoring
activities (including audits) at reasonable intervals;
and
(D) taken prompt and appropriate corrective action
upon becoming aware of any evidence of a violation of
this title, including regulations issued under this
title, by such subgrantee or contractor.
(3) Waiver.--If the Secretary determines that the recipient
has demonstrated substantial compliance with the requirements of
paragraph (2), the Secretary may waive the imposition of
sanctions authorized by this section upon such recipient. The
Secretary is authorized to impose any sanction consistent with
the provisions of this title and any applicable Federal or State
law directly against any subgrantee or contractor for violation
of this title, including regulations issued under this title.
(e) Immediate Termination or Suspension of Assistance in Emergency
Situations.--In emergency situations, if the Secretary determines it is
necessary to protect the integrity of the funds or ensure the proper
operation of the program or activity involved, the Secretary may
immediately terminate or suspend financial assistance, in whole or in
part, to the recipient if the
[[Page 112 STAT.1046]]
recipient is given prompt notice and the opportunity for a subsequent
hearing within 30 days after such termination or suspension. The
Secretary shall not delegate any of the functions or authority specified
in this subsection, other than to an officer whose appointment is
required to be made by and with the advice and consent of the Senate.
(f ) Discrimination Against Participants.--If the Secretary
determines that any recipient under this title has discharged or in any
other manner discriminated against a participant or against any
individual in connection with the administration of the program
involved, or against any individual because such individual has filed
any complaint or instituted or caused to be instituted any proceeding
under or related to this title, or has testified or is about to testify
in any such proceeding or investigation under or related to this title,
or otherwise unlawfully denied to any individual a benefit to which that
individual is entitled under the provisions of this title or the
Secretary's regulations, the Secretary shall, within 30 days, take such
action or order such corrective measures, as necessary, with respect to
the recipient or the aggrieved individual, or both.
(g) Remedies.--The remedies described in this section shall not be
construed to be the exclusive remedies available for violations
described in this section.
SEC. 185. <<NOTE: 29 USC 2935.>> REPORTS; RECORDKEEPING;
INVESTIGATIONS.
(a) Reports.--
(1) In general.--Recipients of funds under this title shall
keep records that are sufficient to permit the preparation of
reports required by this title and to permit the tracing of
funds to a level of expenditure adequate to ensure that the
funds have not been spent unlawfully.
(2) Submission to the secretary.--Every such recipient shall
maintain such records and submit such reports, in such form and
containing such information, as the Secretary may require
regarding the performance of programs and activities carried out
under this title. Such records and reports shall be submitted to
the Secretary but shall not be required to be submitted more
than once each quarter unless specifically requested by Congress
or a committee of Congress, in which case an estimate may be
provided.
(3) Maintenance of standardized records.--In order to allow
for the preparation of the reports required under subsection
(c), such recipients shall maintain standardized records for all
individual participants and provide to the Secretary a
sufficient number of such records to provide for an adequate
analysis of the records.
(4) Availability to the public.--
(A) In general.--Except as provided in subparagraph
(B), records maintained by such recipients pursuant to
this subsection shall be made available to the public
upon request.
(B) Exception.--Subparagraph (A) shall not apply
to--
(i) information, the disclosure of which would
constitute a clearly unwarranted invasion of
personal privacy; and
[[Page 112 STAT.1047]]
(ii) trade secrets, or commercial or financial
information, that is obtained from a person and
privileged or confidential.
(C) Fees to recover costs.--Such recipients may
charge fees sufficient to recover costs applicable to
the processing of requests for records under
subparagraph (A).
(b) Investigations of Use of Funds.--
(1) In general.--
(A) Secretary.--In order to evaluate compliance with
the provisions of this title, the Secretary shall
conduct, in several States, in each fiscal year,
investigations of the use of funds received by
recipients under this title.
(B) Comptroller general of the united states.--In
order to ensure compliance with the provisions of this
title, the Comptroller General of the United States may
conduct investigations of the use of funds received
under this title by any recipient.
(2) Prohibition.--In conducting any investigation under this
title, the Secretary or the Comptroller General of the United
States may not request the compilation of any information that
the recipient is not otherwise required to compile and that is
not readily available to such recipient.
(3) Audits.--
(A) In general.--In carrying out any audit under
this title (other than any initial audit survey or any
audit investigating possible criminal or fraudulent
conduct), either directly or through grant or contract,
the Secretary, the Inspector General of the Department
of Labor, or the Comptroller General of the United
States shall furnish to the State, recipient, or other
entity to be audited, advance notification of the
overall objectives and purposes of the audit, and any
extensive recordkeeping or data requirements to be met,
not later than 14 days (or as soon as practicable),
prior to the commencement of the audit.
(B) Notification requirement.--If the scope,
objectives, or purposes of the audit change
substantially during the course of the audit, the entity
being audited shall be notified of the change as soon as
practicable.
(C) Additional requirement.--The reports on the
results of such audits shall cite the law, regulation,
policy, or other criteria applicable to any finding
contained in the reports.
(D) Rule of construction.--Nothing contained in this
title shall be construed so as to be inconsistent with
the Inspector General Act of 1978 (5 U.S.C. App.) or
government auditing standards issued by the Comptroller
General of the United States.
(c) Accessibility of Reports.--Each State, each local board, and
each recipient (other than a subrecipient, subgrantee, or contractor of
a recipient) receiving funds under this title--
(1) shall make readily accessible such reports concerning
its operations and expenditures as shall be prescribed by the
Secretary;
(2) <<NOTE: Guidelines.>> shall prescribe and maintain
comparable management information systems, in accordance with
guidelines that shall
[[Page 112 STAT.1048]]
be prescribed by the Secretary, designed to facilitate the
uniform compilation, cross tabulation, and analysis of
programmatic, participant, and financial data, on statewide,
local area, and other appropriate bases, necessary for
reporting, monitoring, and evaluating purposes, including data
necessary to comply with section 188; and
(3) shall monitor the performance of providers in complying
with the terms of grants, contracts, or other agreements made
pursuant to this title.
(d) Information To Be Included in Reports.--
(1) In general.--The reports required in subsection (c)
shall include information regarding programs and activities
carried out under this title pertaining to--
(A) the relevant demographic characteristics
(including race, ethnicity, sex, and age) and other
related information regarding participants;
(B) the programs and activities in which
participants are enrolled, and the length of time that
participants are engaged in such programs and
activities;
(C) outcomes of the programs and activities for
participants, including the occupations of participants,
and placement for participants in nontraditional
employment;
(D) specified costs of the programs and activities;
and
(E) information necessary to prepare reports to
comply with section 188.
(2) Additional requirement.--The Secretary shall ensure that
all elements of the information required for the reports
described in paragraph (1) are defined and reported uniformly.
(e) Quarterly Financial Reports.--
(1) In general.--Each local board in the State shall submit
quarterly financial reports to the Governor with respect to
programs and activities carried out under this title. Such
reports shall include information identifying all program and
activity costs by cost category in accordance with generally
accepted accounting principles and by year of the appropriation
involved.
(2) Additional requirement.--Each State shall submit to the
Secretary, on a quarterly basis, a summary of the reports
submitted to the Governor pursuant to paragraph (1).
(f ) Maintenance of Additional Records.--Each State and local board
shall maintain records with respect to programs and activities carried
out under this title that identify--
(1) any income or profits earned, including such income or
profits earned by subrecipients; and
(2) any costs incurred (such as stand-in costs) that are
otherwiseallowable except for funding limitations.
(g) Cost Categories.--In requiring entities to maintain records of
costs by category under this title, the Secretary shall require only
that the costs be categorized as administrative or programmatic costs.
SEC. 186. <<NOTE: 29 USC 2936.>> ADMINISTRATIVE ADJUDICATION.
(a) In General.--Whenever any applicant for financial assistance
under this title is dissatisfied because the Secretary has made a
determination not to award financial assistance in whole or in part to
such applicant, the applicant may request a hearing before an
administrative law judge of the Department of Labor. A similar
[[Page 112 STAT.1049]]
hearing may also be requested by any recipient for whom a corrective
action has been required or a sanction has been imposed by the Secretary
under section 184.
(b) Appeal.--The decision of the administrative law judge shall
constitute final action by the Secretary unless, within 20 days after
receipt of the decision of the administrative law judge, a party
dissatisfied with the decision or any part of the decision has filed
exceptions with the Secretary specifically identifying the procedure,
fact, law, or policy to which exception is taken. Any exception not
specifically urged shall be deemed to have been waived. After the 20-day
period the decision of the administrative law judge shall become the
final decision of the Secretary unless the Secretary, within 30 days
after such filing, has notified the parties that the case involved has
been accepted for review.
(c) Time Limit.--Any case accepted for review by the Secretary under
subsection (b) shall be decided within 180 days after such acceptance.
If the case is not decided within the 180-day period, the decision of
the administrative law judge shall become the final decision of the
Secretary at the end of the 180-day period.
(d) <<NOTE: Applicability.>> Additional Requirement.--The
provisions of section 187 shall apply to any final action of the
Secretary under this section.
SEC. 187. <<NOTE: 29 USC 2937.>> JUDICIAL REVIEW.
(a) Review.--
(1) Petition.--With respect to any final order by the
Secretary under section 186 by which the Secretary awards,
declines to award, or only conditionally awards, financial
assistance under his title, or any final order of the Secretary
under section 186 with respect to a corrective action or
sanction imposed under section 184, any party to a proceeding
which resulted in such final order may obtain review of such
final order in the United States Court of Appeals having
jurisdiction over the applicant or recipient of funds involved,
by filing a review petition within 30 days after the date of
issuance of such final order.
(2) Action on petition.--The clerk of the court shall
transmit a copy of the review petition to the Secretary who
shall file the record on which the final order was entered as
provided in section 2112 of title 28, United States Code. The
filing of a review petition shall not stay the order of the
Secretary, unless the court orders a stay. Petitions filed under
this subsection shall be heard expeditiously, if possible within
10 days after the date of filing of a reply to the petition.
(3) Standard and scope of review.--No objection to the order
of the Secretary shall be considered by the court unless the
objection was specifically urged, in a timely manner, before the
Secretary. The review shall be limited to questions of law and
the findings of fact of the Secretary shall be conclusive if
supported by substantial evidence.
(b) Judgment.--The court shall have jurisdiction to make and enter a
decree affirming, modifying, or setting aside the order of the Secretary
in whole or in part. The judgment of the court regarding the order shall
be final, subject to certiorari review by the Supreme Court as provided
in section 1254(1) of title 28, United States Code.
SEC. 188. <<NOTE: 29 USC 2938.>> NONDISCRIMINATION.
(a) In General.--
[[Page 112 STAT.1050]]
(1) Federal financial assistance.--For the purpose of
applying the prohibitions against discrimination on the basis of
age under the Age Discrimination Act of 1975 (42 U.S.C. 6101 et
seq.), on the basis of disability under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), on the basis of sex
under title IX of the Education Amendments of 1972 (20 U.S.C.
1681 et seq.), or on the basis of race, color, or national
origin under title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.), programs and activities funded or otherwise
financially assisted in whole or in part under this Act are
considered to be programs and activities receiving Federal
financial assistance.
(2) Prohibition of discrimination regarding participation,
benefits, and employment.--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.
(3) Prohibition on assistance for facilities for sectarian
instruction or religious worship.--Participants shall not be
employed under this title to carry out the construction,
operation, or maintenance of any part of any facility that is
used or to be used for sectarian instruction or as a place for
religious worship (except with respect to the maintenance of a
facility that is not primarily or inherently devoted to
sectarian instruction or religious worship, in a case in which
the organization operating the facility is part of a program or
activity providing services to participants).
(4) Prohibition on discrimination on basis of participant
status.--No person may discriminate against an individual who is
a participant in a program or activity that receives funds under
this title, with respect to the terms and conditions affecting,
or rights provided to, the individual, solely because of the
status of the individual as a participant.
(5) Prohibition on discrimination against certain
noncitizens.--Participation in programs and activities or
receiving funds under this title shall be available to citizens
and nationals of the United States, lawfully admitted permanent
resident aliens, refugees, asylees, and parolees, and other
immigrants authorized by the Attorney General to work in the
United States.
(b) <<NOTE: Notification.>> Action of Secretary.--Whenever the
Secretary finds that a State or other recipient of funds under this
title has failed to comply with a provision of law referred to in
subsection (a)(1), or with paragraph (2), (3), (4), or (5) of subsection
(a), including an applicable regulation prescribed to carry out such
provision or paragraph, the Secretary shall notify such State or
recipient and shall request that the State or recipient comply. If
within a reasonable period of time, not to exceed 60 days, the State or
recipient fails or refuses to comply, the Secretary may--
(1) refer the matter to the Attorney General with a
recommendation that an appropriate civil action be instituted;
or
(2) take such other action as may be provided by law.
[[Page 112 STAT.1051]]
(c) Action of Attorney General.--When a matter is referred to the
Attorney General pursuant to subsection (b)(1), or whenever the Attorney
General has reason to believe that a State or other recipient of funds
under this title is engaged in a pattern or practice of discrimination
in violation of a provision of law referred to in subsection (a)(1) or
in violation of paragraph (2), (3), (4), or (5) of subsection (a), the
Attorney General may bring a civil action in any appropriate district
court of the United States for such relief as may be appropriate,
including injunctive relief.
(d) Job Corps.--For the purposes of this section, Job Corps members
shall be considered as the ultimate beneficiaries of Federal financial
assistance.
(e) <<NOTE: Deadline.>> Regulations.--The Secretary shall issue
regulations necessary to implement this section not later than one year
after the date of the enactment of the Workforce Investment Act of 1998.
Such regulations shall adopt standards for determining discrimination
and procedures for enforcement that are consistent with the Acts
referred to in a subsection (a)(1), as well as procedures to ensure that
complaints filed under this section and such Acts are processed in a
manner that avoids duplication of effort.
SEC. 189. <<NOTE: 29 USC 2939.>> ADMINISTRATIVE PROVISIONS.
(a) In General.--The Secretary may, in accordance with chapter 5 of
title 5, United States Code, prescribe rules and regulations to carry
out this title only to the extent necessary to administer and ensure
compliance with the requirements of this title. Such rules and
regulations may include provisions making adjustments authorized by
section 204 of the Intergovernmental Cooperation Act of
1968. <<NOTE: Federal Register, publication.>> All such rules and
regulations shall be published in the Federal Register at least 30 days
prior to their effective dates. Copies of each such rule or regulation
shall be transmitted to the appropriate committees of Congress on the
date of such publication and shall contain, with respect to each
material provision of such rule or regulation, a citation to the
particular substantive section of law that is the basis for the
provision.
(b) Acquisition of Certain Property and Services.--The Secretary is
authorized, in carrying out this title, to accept, purchase, or lease in
the name of the Department of Labor, and employ or dispose of in
furtherance of the purposes of this title, any money or property, real,
personal, or mixed, tangible or intangible, received by gift, devise,
bequest, or otherwise, and to accept voluntary and uncompensated
services notwithstanding the provisions of section 1342 of title 31,
United States Code.
(c) Authority To Enter Into Certain Agreements and To Make Certain
Expenditures.--The Secretary may make such grants, enter into such
contracts or agreements, establish such procedures, and make such
payments, in installments and in advance or by way of reimbursement, or
otherwise allocate or expend such funds under this title, as may be
necessary to carry out this title, including making expenditures for
construction, repairs, and capital improvements, and including making
necessary adjustments in payments on account of over-payments or
underpayments.
(d) Annual Report.--The Secretary shall prepare and submit to
Congress an annual report regarding the programs and activities carried
out under this title. The Secretary shall include in such report--
[[Page 112 STAT.1052]]
(1) a summary of the achievements, failures, and problems of
the programs and activities in meeting the objectives of this
title;
(2) a summary of major findings from research, evaluations,
pilot projects, and experiments conducted under this title in
the fiscal year prior to the submission of the report;
(3) recommendations for modifications in the programs and
activities based on analysis of such findings; and
(4) such other recommendations for legislative or
administrative action as the Secretary determines to be
appropriate.
(e) Utilization of Services and Facilities.--The Secretary is
authorized, in carrying out this title, under the same procedures as are
applicable under subsection (c) or to the extent permitted by law other
than this title, to accept and use the services and facilities of
departments, agencies, and establishments of the United States. The
Secretary is also authorized, in carrying out this title, to accept and
use the services and facilities of the agencies of any State or
political subdivision of a State, with the consent of the State or
political subdivision.
(f ) Obligational Authority.--Notwithstanding any other provision of
this title, the Secretary shall have no authority to enter into
contracts, grant agreements, or other financial assistance agreements
under this title except to such extent and in such amounts as are
provided in advance in appropriations Acts.
(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.
(2) Availability.--Funds obligated for any program year for
a program or activity carried out under this title may be
expended by each State 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.
(h) Enforcement of Military Selective Service Act.--The Secretary
shall ensure that each individual participating in any program or
activity established under this title, or receiving any assistance or
benefit under this title, has not violated section 3 of the Military
Selective Service Act (50 U.S.C. App. 453) by not presenting and
submitting to registration as required pursuant to such section. The
Director of the Selective Service System shall
[[Page 112 STAT.1053]]
cooperate with the Secretary to enable the Secretary to carry out this
subsection.
(i) Waivers and Special Rules.--
(1) Existing waivers.--With respect to a State that has been
granted a waiver under the provisions relating to training and
employment services of the Department of Labor in title I of the
Departments of Labor, Health and Human Services, and Education,
and Related Agencies Appropriations Act, 1997 (Public Law 104-
208; 110 Stat. 3009-234), the authority provided under such
waiver shall continue in effect and apply, and include a waiver
of the related provisions of subtitle B and this subtitle, for
the duration of the initial waiver.
(2) <<NOTE: Deadline.>> Special rule regarding designated
areas.--A State that has enacted, not later than December 31,
1997, a State law providing for the designation of service
delivery areas for the delivery of workforce investment
activities, may use such areas as local areas under this title,
notwithstanding section 116.
(3) <<NOTE: Deadline.>> Special rule regarding sanctions.--
A State that enacts, not later than December 31, 1997, a State
law providing for the sanctioning of such service delivery areas
for failure to meet performance measures for workforce
investment activities, may use the State law to sanction local
areas for failure to meet State performance measures under this
title.
(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)--
(i) any of the statutory or regulatory
requirements of subtitle B or this subtitle
(except for requirements relating to wage and
labor standards, including nondisplacement
protections, worker rights, participation and
protection of workers and participants, grievance
procedures and judicial review, nondiscrimination,
allocation of funds to local areas, eligibility of
providers or participants, the establishment and
functions of local areas and local boards, and
procedures for review and approval of plans); and
(ii) any of the statutory or regulatory
requirements of sections 8 through 10 of the
Wagner-Peyser Act (29 U.S.C. 49g through 49i)
(excluding requirements relating to the provision
of services to unemployment insurance claimants
and veterans, and requirements relating to
universal access to basic labor exchange services
without cost to jobseekers).
(B) Requests.--A Governor requesting a waiver under
subparagraph (A) shall submit a plan to the Secretary to
improve the statewide workforce investment system that--
(i) identifies the statutory or regulatory
requirements that are requested to be waived and
the goals that the State or local area in the
State, as appropriate, intends to achieve as a
result of the waiver;
[[Page 112 STAT.1054]]
(ii) describes the actions that the State or
local area, as appropriate, has undertaken to
remove State or local statutory or regulatory
barriers;
(iii) describes the goals of the waiver and
the expected programmatic outcomes if the request
is granted;
(iv) describes the individuals impacted by the
waiver; and
(v) describes the process used to monitor the
progress in implementing such a waiver, and the
process by which notice and an opportunity to
comment on such request has been provided to the
local board.
(C) Conditions.--Not later than 90 days after the
date of the original submission of a request for a
waiver under subparagraph (A), the Secretary shall
provide a waiver under this paragraph if and only to the
extent that--
(i) the Secretary determines that the
requirements requested to be waived impede the
ability of the State or local area, as
appropriate, to implement the plan described in
subparagraph (B); and
(ii) the State has executed a memorandum of
understanding with the Secretary requiring such
State to meet, or ensure that the local area
meets, agreed-upon outcomes and to implement other
appropriate measures to ensure accountability.
SEC. 190. <<NOTE: Effective date. 29 USC 2940.>> REFERENCE.
Effective on the date of the enactment of the Workforce Investment
Act of 1998, all references in any other provision of law (other than
section 665 of title 18, United States Code) to the Comprehensive
Employment and Training Act, or to the Job Training Partnership Act, as
the case may be, shall be deemed to refer to the ``Workforce Investment
Act of 1998.''.
SEC. 191. <<NOTE: 29 USC 2941.>> STATE LEGISLATIVE AUTHORITY.
(a) Authority of State Legislature.--Nothing in this title shall be
interpreted to preclude the enactment of State legislation providing for
the implementation, consistent with the provisions of this title, of the
activities assisted under this title. Any funds received by a State
under this title shall be subject to appropriation by the State
legislature, consistent with the terms and conditions required under
this title.
(b) Interstate Compacts and Cooperative Agreements.--In the event
that compliance with provisions of this title would be enhanced by
compacts and cooperative agreements between States, the consent of
Congress is given to States to enter into such compacts and agreements
to facilitate such compliance, subject to the approval of the Secretary.
SEC. 192. <<NOTE: 29 USC 2942.>> WORKFORCE FLEXIBILITY PLANS.
(a) Plans.--A State may submit to the Secretary, and the Secretary
may approve, a workforce flexibility plan under which the State is
authorized to waive, in accordance with the plan--
(1) any of the statutory or regulatory requirements
applicable under this title to local areas, pursuant to
applications for such waivers from the local areas, except for
requirements relating to the basic purposes of this title, wage
and
[[Page 112 STAT.1055]]
labor standards, grievance procedures and judicial review,
nondiscrimination, eligibility of participants, allocation of
funds to local areas, establishment and functions of local areas
and local boards, review and approval of local plans, and worker
rights, participation, and protection;
(2) any of the statutory or regulatory requirements
applicable under sections 8 through 10 of the Wagner-Peyser Act
(29 U.S.C. 49g through 49i), to the State, except for
requirements relating to the provision of services to
unemployment insurance claimants and veterans, and to universal
access to basic labor exchange services without cost to
jobseekers; and
(3) any of the statutory or regulatory requirements
applicable under the Older Americans Act of 1965 (42 U.S.C. 3001
et seq.), to State agencies on aging with respect to activities
carried out using funds allotted under section 506(a)(3) of such
Act (42 U.S.C. 3056d(a)(3)), except for requirements relating to
the basic purposes of such Act, wage and labor standards,
eligibility of participants in the activities, and standards for
agreements.
(b) Content of Plans.--A workforce flexibility plan implemented by a
State under subsection (a) shall include descriptions of--
(1)(A) the process by which local areas in the State may
submit and obtain approval by the State of applications for
waivers of requirements applicable under this title; and
(B) the requirements described in subparagraph (A) that are
likely to be waived by the State under the plan;
(2) the requirements applicable under sections 8 through 10
of the Wagner-Peyser Act that are proposed to be waived, if any;
(3) the requirements applicable under the Older Americans
Act of 1965 that are proposed to be waived, if any;
(4) the outcomes to be achieved by the waivers described in
paragraphs (1) through (3); and
(5) other measures to be taken to ensure appropriate
accountability for Federal funds in connection with the waivers.
(c) Periods.--The Secretary may approve a workforce flexibility plan
for a period of not more than 5 years.
(d) Opportunity for Public Comments.--Prior to submitting a
workforce flexibility plan to the Secretary for approval, the State
shall provide to all interested parties and to the general public
adequate notice and a reasonable opportunity for comment on the waiver
requests proposed to be implemented pursuant to such plan.
SEC. 193. <<NOTE: 29 USC 2943.>> USE OF CERTAIN REAL PROPERTY.
(a) In General.--Notwithstanding any other provision of law, the
Governor may authorize a public agency to make available, for the use of
a one-stop service delivery system within the State which is carried out
by a consortium of entities that includes the public agency, real
property in which, as of the date of the enactment of the Workforce
Investment Act of 1998, the Federal Government has acquired equity
through the use of funds provided under title III of the Social Security
Act (42 U.S.C. 501 et seq.), section 903(c) of such Act (42 U.S.C.
1103(c)), or the Wagner-Peyser Act (29 U.S.C. 49 et seq.).
(b) Use of Funds.--Subsequent to the commencement of the use of the
property described in subsection (a) for the functions
[[Page 112 STAT.1056]]
of a one-stop service delivery system, funds provided under the
provisions of law described in subsection (a) may only be used to
acquire further equity in such property, or to pay operating and
maintenance expenses relating to such property in proportion to the
extent of the use of such property attributable to the activities
authorized under such provisions of law.
SEC. 194. <<NOTE: 29 USC 2944.>> CONTINUATION OF STATE ACTIVITIES AND
POLICIES.
(a) In General.--Notwithstanding any other provision of this title,
the Secretary may not deny approval of a State plan for a covered State,
or an application of a covered State for financial assistance, under
this title or find a covered State (including a State board or
Governor), or a local area (including a local board or chief elected
official) in a covered State, in violation of a provision of this title,
on the basis that--
(1)(A) the State proposes to allocate or disburse,
allocates, or disburses, within the State, funds made available
to the State under section 127 or 132 in accordance with the
allocation formula for the type of activities involved, or in
accordance with a disbursal procedure or process, used by the
State under prior consistent State laws; or
(B) a local board in the State proposes to disburse, or
disburses, within the local area, funds made available to a
State under section 127 or 132 in accordance with a disbursal
procedure or process used by a private industry council under
prior consistent State law;
(2) the State proposes to carry out or carries out a State
procedure through which local areas use, as fiscal agents for
funds made available to the State under section 127 or 132 and
allocated within the State, fiscal agents selected in accordance
with a process established under prior consistent State laws;
(3) the State proposes to carry out or carries out a State
procedure through which the local board in the State (or the
local boards, the chief elected officials in the State, and the
Governor) designate or select the one-stop partners and one-stop
operators of the statewide system in the State under prior
consistent State laws, in lieu of making the designation, or
certification described in section 121 (regardless of the date
the one-stop delivery systems involved have been established);
(4) the State proposes to carry out or carries out a State
procedure through which the persons responsible for selecting
eligible providers for purposes of subtitle B are permitted to
determine that a provider shall not be selected to provide both
intake services under section 134(d)(2) and training services
under section 134(d)(4), under prior consistent State laws;
(5) the State proposes to designate or designates a State
board, or proposes to assign or assigns functions and roles of
the State board (including determining the time periods for
development and submission of a State plan required under
section 112), for purposes of subtitle B in accordance with
prior consistent State laws; or
(6) a local board in the State proposes to use or carry out,
uses, or carries out a local plan (including assigning functions
and roles of the local board) for purposes of subtitle B in
accordance with the authorities and requirements
[[Page 112 STAT.1057]]
applicable to local plans and private industry councils under
prior consistent State laws.
(b) Definition.--In this section:
(1) Covered state.--The term ``covered State'' means a State
that enacted State laws described in paragraph (2).
(2) Prior consistent state laws.--The term ``prior
consistent State laws'' means State laws, not inconsistent with
the Job Training Partnership Act or any other applicable Federal
law, that took effect on September 1, 1993, September 1, 1995,
and September 1, 1997.
SEC. 195. <<NOTE: 29 USC 2945.>> GENERAL PROGRAM REQUIREMENTS.
Except as otherwise provided in this title, the following conditions
are applicable to all programs under this title:
(1) Each program under this title shall provide employment
and training opportunities to those who can benefit from, and
who are most in need of, such opportunities. In addition,
efforts shall be made to develop programs which contribute to
occupational development, upward mobility, development of new
careers, and opportunities for nontraditional employment.
(2) Funds provided under this title shall only be used for
activities that are in addition to those that would otherwise be
available in the local area in the absence of such funds.
(3)(A) Any local area may enter into an agreement with
another local area (including a local area that is a city or
county within the same labor market) to pay or share the cost of
educating, training, or placing individuals participating in
programs assisted under this title, including the provision of
supportive services.
(B) Such agreement shall be approved by each local board
providing guidance to the local area and shall be described in
the local plan under section 118.
(4) On-the-job training contracts under this title shall not
be entered into with employers who have received payments under
previous contracts and have exhibited a pattern of failing to
provide on-the-job training participants with continued long-
term employment as regular employees with wages and
employment benefits (including health benefits) and working
conditions at the same level and to the same extent as other
employees working a similar length of time and doing the same
type of work.
(5) No person or organization may charge an individual a fee
for the placement or referral of the individual in or to a
workforce investment activity under this title.
(6) The Secretary shall not provide financial assistance for
any program under this title that involves political activities.
(7)(A) Income under any program administered by a public or
private nonprofit entity may be retained by such entity only if
such income is used to continue to carry out the program.
(B) Income subject to the requirements of subparagraph (A)
shall include--
(i) receipts from goods or services (including
conferences) provided as a result of activities funded
under this title;
(ii) funds provided to a service provider under this
title that are in excess of the costs associated with
the services provided; and
[[Page 112 STAT.1058]]
(iii) interest income earned on funds received under
this title.
(C) For purposes of this paragraph, each entity receiving
financial assistance under this title shall maintain records
sufficient to determine the amount of such income received and
the purposes for which such income is expended.
(8)(A) <<NOTE: Notification.>> The Secretary shall notify
the Governor and the appropriate local board and chief elected
official of, and consult with the Governor and such board and
official concerning, any activity to be funded by the Secretary
under this title within the corresponding State or local area.
(B) The Governor shall notify the appropriate local board
and chief elected official of, and consult with such board and
official concerning, any activity to be funded by the Governor
under this title within the corresponding local area.
(9)(A) All education programs for youth supported with funds
provided under chapter 4 of subtitle B shall be consistent with
applicable State and local educational standards.
(B) Standards and procedures with respect to awarding
academic credit and certifying educational attainment in
programs conducted under such chapter shall be consistent with
the requirements of applicable State and local law, including
regulation.
(10) No funds available under this title may be used for
public service employment except as specifically authorized
under this title.
(11) The Federal requirements governing the title, use, and
disposition of real property, equipment, and supplies purchased
with funds provided under this title shall be the Federal
requirements generally applicable to Federal grants to States
and local governments.
(12) Nothing in this title shall be construed to provide an
individual with an entitlement to a service under this title.
(13) Services, facilities, or equipment funded under this
title may be used, as appropriate, on a fee-for-service basis,
by employers in a local area in order to provide employment and
training activities to incumbent workers--
(A) when such services, facilities, or equipment are
not in use for the provision of services for eligible
participants under this title;
(B) if such use for incumbent workers would not have
an adverse affect on the provision of services to
eligible participants under this title; and
(C) if the income derived from such fees is used to
carry out the programs authorized under this title.
Subtitle F--Repeals and Conforming Amendments
SEC. 199. REPEALS.
(a) General Immediate Repeals.--The following provisions are
repealed:
(1) Section 204 of the Immigration Reform and Control Act of
1986 (8 U.S.C. 1255a note).
(2) Title II of Public Law 95-250 (92 Stat. 172).
[[Page 112 STAT.1059]]
(3) The Displaced Homemakers Self-Sufficiency Assistance Act
(29 U.S.C. 2301 et seq.).
(4) Section 211 of the Appalachian Regional Development Act
of 1965 (40 U.S.C. App. 211).
(5) Subtitle C of title VII of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11441 et seq.), except
section 738 of such title (42 U.S.C. 11448).
(6) <<NOTE: 49 USC 42101 et seq.>> Subchapter I of chapter
421 of title 49, United States Code.
(b) Subsequent Repeals.--The following provisions are repealed:
(1) Title VII of the Stewart B. McKinney Homeless Assistance
Act (42 U.S.C. 11421 et seq.), except subtitle B and section 738
of such title (42 U.S.C. 11431 et seq. and 11448).
(2) The Job Training Partnership Act (29 U.S.C. 1501 et
seq.).
(c) Effective Dates.--
(1) <<NOTE: 29 USC 2301 note.>> Immediate repeals.--The
repeals made by subsection (a) shall take effect on the date of
enactment of this Act.
(2) Subsequent repeals.--
(A) <<NOTE: 42 USC 11421 note.>> Stewart b.
mckinney homeless assistance act.--The repeal made by
subsection (b)(1) shall take effect on July 1, 1999.
(B) <<NOTE: 29 USC 1501 note.>> Job training
partnership act.--The repeal made by subsection (b)(2)
shall take effect on July 1, 2000.
SEC. 199A. <<NOTE: 29 USC 2940 note.>> CONFORMING AMENDMENTS.
(a) Preparation.--After consultation with the appropriate committees
of Congress and the Director of the Office of Management and Budget, the
Secretary shall prepare recommended legislation containing technical and
conforming amendments to reflect the changes made by this subtitle.
(b) <<NOTE: Deadline.>> Submission to Congress.--Not later than 6
months after the date of enactment of this Act, the Secretary shall
submit to Congress the recommended legislation referred to under
subsection (a).
(c) References.--All references in any other provision of law to a
provision of the Comprehensive Employment and Training Act, or of the
Job Training Partnership Act, as the case may be, shall be deemed to
refer to the corresponding provision of this title.
TITLE II-- <<NOTE: Adult Education and Family Literacy Act. Inter-
governmental relations.>> ADULT EDUCATION AND LITERACY
SEC. 201. <<NOTE: 20 USC 9201 note.>> SHORT TITLE.
This title may be cited as the ``Adult Education and Family Literacy
Act''.
SEC. 202. <<NOTE: 20 USC 9201.>> 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;
[[Page 112 STAT.1060]]
(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. <<NOTE: 20 USC 9202.>> DEFINITIONS.
In this subtitle:
(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.
[[Page 112 STAT.1061]]
(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 1201 of the Higher Education Act of 1965 (20
U.S.C. 1141).
(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 14101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
(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.
[[Page 112 STAT.1062]]
(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. <<NOTE: 20 USC 9203.>> HOME SCHOOLS.
Nothing in this subtitle 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. <<NOTE: 20 USC 9204.>> AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this subtitle
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. <<NOTE: 20 USC 9211.>> 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.
[[Page 112 STAT.1063]]
(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, but less than 61 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
[[Page 112 STAT.1064]]
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. <<NOTE: 20 USC 9212.>> 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
[[Page 112 STAT.1065]]
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
[[Page 112 STAT.1066]]
levels of performance agreed to under clause (iii)
or (v) be revised. The Secretary, after
collaboration with the representatives described
in section 136( j), 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) <<NOTE: Publication.>> 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. <<NOTE: 20 USC 9221.>> 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. <<NOTE: 20 USC 9222.>> 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.--
[[Page 112 STAT.1067]]
(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. <<NOTE: 20 USC 9223.>> 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.
[[Page 112 STAT.1068]]
(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. <<NOTE: 20 USC 9224.>> 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;
[[Page 112 STAT.1069]]
(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.
SEC. 225. <<NOTE: 20 USC 9225.>> 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 or 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;
[[Page 112 STAT.1070]]
(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 in a correctional institution shall give priority to serving
individuals who are likely to leave the correctional institution with 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. <<NOTE: 20 USC 9241.>> 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
[[Page 112 STAT.1071]]
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.
[[Page 112 STAT.1072]]
SEC. 232. <<NOTE: 20 USC 9242.>> 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. <<NOTE: 20 USC 9243.>> 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. <<NOTE: 20 USC 9251.>> 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
[[Page 112 STAT.1073]]
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. <<NOTE: 20 USC 9252.>> 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
[[Page 112 STAT.1074]]
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
theimprovement 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;
[[Page 112 STAT.1075]]
(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) <<NOTE: President.>> In general.--There shall
be a National Institute for Literacy Advisory Board (in
this section referred to
[[Page 112 STAT.1076]]
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.--
[[Page 112 STAT.1077]]
(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.
[[Page 112 STAT.1078]]
SEC. 243. <<NOTE: 20 USC 9253.>> 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 qualify 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;
[[Page 112 STAT.1079]]
(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''.
[[Page 112 STAT.1080]]
(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 III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
Subtitle A--Wagner-Peyser Act
SEC. 301. DEFINITIONS.
Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is
amended--
(1) in paragraph (1)--
(A) by striking ``or officials''; and
(B) by striking ``Job Training Partnership Act'' and
inserting ``Workforce Investment Act of 1998'';
(2) by striking paragraphs (2) and (4);
(3) by redesignating paragraph (3) as paragraph (4);
(4) by inserting after paragraph (1) the following:
``(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;''; and
(5) in paragraph (4) (as redesignated in paragraph (3)), by
striking the semicolon and inserting ``; and''.
SEC. 302. FUNCTIONS.
(a) In General.--Section 3 of the Wagner-Peyser Act (29 U.S.C. 49b)
is amended--
(1) in subsection (a), by striking ``United States
Employment Service'' and inserting ``Secretary''; and
(2) by adding at the end the following:
``(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.''.
[[Page 112 STAT.1081]]
(b) Conforming Amendments.--Section 508(b)(1) of the Unemployment
Compensation Amendments of 1976 (42 U.S.C. 603a(b)(1)) <<NOTE: 42 USC
655a.>> is amended--
(1) by striking ``the third sentence of section 3(a)'' and
inserting ``section 3(b)''; and
(2) by striking ``49b(a)'' and inserting ``49b(b)''.
SEC. 303. DESIGNATION OF STATE AGENCIES.
Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is
amended--
(1) by striking ``, through its legislature,'' and inserting
``, pursuant to State statute,'';
(2) by inserting after ``the provisions of this Act and''
the following: ``, in accordance with such State statute, the
Governor shall''; and
(3) by striking ``United States Employment Service'' and
inserting ``Secretary''.
SEC. 304. APPROPRIATIONS.
Section 5(c) of the Wagner-Peyser Act (29 U.S.C. 49d(c)) is amended
by striking paragraph (3).
SEC. 305. DISPOSITION OF ALLOTTED FUNDS.
Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is
amended--
(1) in subsection (b)(2), by striking ``private industry
council'' and inserting ``local workforce investment board'';
(2) in subsection (c)(2), by striking ``any program under''
and all that follows and inserting ``any workforce investment
activity carried out under the Workforce Investment Act of
1998.'';
(3) in subsection (d)--
(A) by striking ``United States Employment Service''
and inserting ``Secretary''; and
(B) by striking ``Job Training Partnership Act'' and
inserting ``Workforce Investment Act of 1998''; and
(4) by adding at the end the following:
``(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. 306. STATE PLANS.
Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is
amended--
(1) in subsection (a) to read as follows:
``(a) Any State desiring to receive assistance under this Act shall
submit to the Secretary, as part of the State plan submitted under
section 112 of the Workforce Investment Act of 1998, detailed plans for
carrying out the provisions of this Act within such State.'';
(2) by striking subsections (b) and (c);
(3) by redesignating subsection (d) as subsection (b);
(4) by inserting after subsection (b) (as redesignated by
paragraph (3)) the following:
``(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.'';
[[Page 112 STAT.1082]]
(5) by redesignating subsection (e) as subsection (d); and
(6) in subsection (d) (as redesignated in paragraph (5)), by
striking ``such plans'' and inserting ``such detailed plans''.
SEC. 307. REPEAL OF FEDERAL ADVISORY COUNCIL.
Section 11 of the Wagner-Peyser Act (29 U.S.C. 49j) is
amended--
(1) by striking ``11.'' and all that follows through ``(b)
In'' and inserting ``11. In''; and
(2) by striking ``Director'' and inserting ``Secretary''.
SEC. 308. REGULATIONS.
Section 12 of the Wagner-Peyser Act (29 U.S.C. 49k) is amended by
striking ``The Director, with the approval of the Secretary of Labor,''
and inserting ``The Secretary''.
SEC. 309. EMPLOYMENT STATISTICS.
The Wagner-Peyser Act is amended--
(1) by redesignating section 15 (29 U.S.C. 49 note) as
section 16; and
(2) by inserting after section 14 (29 U.S.C. 49l-1) the
following:
``SEC. 15. <<NOTE: 29 USC 49l-2.>> 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
[[Page 112 STAT.1083]]
``(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 of this section 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
[[Page 112 STAT.1084]]
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) <<NOTE: Procedures.>> 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
[[Page 112 STAT.1085]]
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) <<NOTE: Reports.>> 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--
[[Page 112 STAT.1086]]
``(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
complementary, 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. 310. TECHNICAL AMENDMENTS.
Sections 3(b), 6(b)(1), and 7(d) of the Wagner-Peyser Act (29 U.S.C.
49b(b), 49e(b)(1), and 49f(d)) are amended by striking ``Secretary of
Labor'' and inserting ``Secretary''.
SEC. 311. <<NOTE: 29 USC 49a note.>> EFFECTIVE DATE.
The amendments made by this subtitle shall take effect on July 1,
1999.
[[Page 112 STAT.1087]]
Subtitle B--Linkages With Other Programs
SEC. 321. TRADE ACT OF 1974.
Section 239 of the Trade Act of 1974 (19 U.S.C. 2311) is
amended by adding at the end the following:
``(g) In order to promote the coordination of workforce investment
activities in each State with activities carried out under this chapter,
any agreement entered into under this section shall provide that the
State shall submit to the Secretary, in such form as the Secretary may
require, the description and information described in paragraphs (8) and
(14) of section 112(b) of the Workforce Investment Act of 1998.''.
SEC. 322. VETERANS' EMPLOYMENT PROGRAMS.
Chapter 41 of title 38, United States Code, is amended by adding at
the end the following:
``Sec. 4110B. Coordination and nonduplication
``In carrying out this chapter, the Secretary shall require that an
appropriate administrative entity in each State enter into an agreement
with the Secretary regarding the implementation of this Act that
includes the description and information described in paragraphs (8) and
(14) of section 112(b) of the Workforce Investment Act of 1998.''.
SEC. 323. OLDER AMERICANS ACT OF 1965.
Section 502(b)(1) of the Older Americans Act of 1965 (42 U.S.C.
3056(b)(1)) is amended--
(1) in subparagraph (O), by striking ``; and'' and inserting
a semicolon;
(2) in subparagraph (P), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following subparagraph:
``(Q) will provide to the Secretary the description
and information described in paragraphs (8) and (14) of
section 112(b) of the Workforce Investment Act of
1998.''.
Subtitle C-- <<NOTE: Twenty-First Century Workforce Commission Act. 29
USC 2701 note.>> Twenty-First Century Workforce Commission
SEC. 331. SHORT TITLE.
This subtitle may be cited as the ``Twenty-First Century Workforce
Commission Act''.
SEC. 332. FINDINGS.
Congress finds that--
(1) information technology is one of the fastest growing
areas in the United States economy;
(2) the United States is a world leader in the information
technology industry;
(3) the continued growth and prosperity of the information
technology industry is important to the continued prosperity of
the United States economy;
[[Page 112 STAT.1088]]
(4) highly skilled employees are essential for the success
of business entities in the information technology industry and
other business entities that use information technology;
(5) employees in information technology jobs are highly
paid;
(6) as of the date of enactment of this Act, these employees
are in high demand in all industries and all regions of the
United States; and
(7) through a concerted effort by business entities, the
Federal Government, the governments of States and political
subdivisions of States, and educational institutions, more
individuals will gain the skills necessary to enter into a
technology-based job market, ensuring that the United States
remains the world leader in the information technology industry.
SEC. 333. DEFINITIONS.
In this subtitle:
(1) Business entity.--The term ``business entity'' means a
firm, corporation, association, partnership, consortium, joint
venture, or other form of enterprise.
(2) Commission.--The term ``Commission'' means the Twenty-
First Century Workforce Commission established under section
334.
(3) Information technology.--The term ``information
technology'' has the meaning given that term in section 5002 of
the Information Technology Management Reform Act of 1996 (110
Stat. 679).
(4) State.--The term ``State'' means each of the several
States of the United States and the District of Columbia.
SEC. 334. ESTABLISHMENT OF TWENTY-FIRST CENTURY WORKFORCE COMMISSION.
(a) Establishment.--There is established a commission to be known as
the Twenty-First Century Workforce Commission.
(b) Membership.--
(1) <<NOTE: President. Congress.>> Composition.--
(A) In general.--The Commission shall be composed of
15 voting members, of which--
(i) five members shall be appointed by the
President;
(ii) five members shall be appointed by the
Majority Leader of the Senate; and
(iii) five members shall be appointed by the
Speaker of the House of Representatives.
(B) Governmental representatives.--Of the members
appointed under this subsection, three members shall be
representatives of the governments of States and
political subdivisions of States, one of whom shall be
appointed by the President, one of whom shall be
appointed by the Majority Leader of the Senate, and one
of whom shall be appointed by the Speaker of the House
of Representatives.
(C) Educators.--Of the members appointed under this
subsection, three shall be educators who are selected
from among elementary, secondary, vocational, and
postsecondary educators--
[[Page 112 STAT.1089]]
(i) one of whom shall be appointed by the
President;
(ii) one of whom shall be appointed by the
Majority Leader of the Senate; and
(iii) one of whom shall be appointed by the
Speaker of the House of Representatives.
(D) Business representatives.--
(i) In general.--Of the members appointed
under this subsection, eight shall be
representatives of business entities (at least
three of which shall be individuals who are
employed by noninformation technology business
entities), two of whom shall be appointed by the
President, three of whom shall be appointed by the
Majority Leader of the Senate, and three of whom
shall be appointed by the Speaker of the House of
Representatives.
(ii) Size.--Members appointed under this
subsection in accordance with clause (i) shall, to
the extent practicable, include individuals from
business entities of a size that is small or
average.
(E) Labor representative.--Of the members appointed
under this subsection, one shall be a representative of
a labor organization who has been nominated by a
national labor federation and who shall be appointed by
the President.
(F) Ex officio members.--The Commission shall
include two nonvoting members, of which--
(i) one member shall be an officer or employee
of the Department of Labor, who shall be appointed
by the President; and
(ii) one member shall be an officer or
employee of the Department of Education, who shall
be appointed by the President.
(2) <<NOTE: Deadline.>> Date.--The appointments of the
members of the Commission shall be made by the later of--
(A) October 31, 1998; or
(B) the date that is 45 days after the date of
enactment of this Act.
(c) Period of Appointment; Vacancies.--Members shall be appointed
for the life of the Commission. Any vacancy in the Commission shall not
affect its powers, but shall be filled in the same manner as the
original appointment.
(d) <<NOTE: Deadline.>> Initial Meeting.--No later than 30 days
after the date on which all members of the Commission have been
appointed, the Commission shall hold its first meeting.
(e) Meetings.--The Commission shall meet at the call of the
Chairperson.
(f ) Quorum.--A majority of the members of theCommission shall
constitute a quorum, but a lesser number of members may hold hearings.
(g) Chairperson and Vice Chairperson.--The Commission shall select
by vote a chairperson and vice chairperson from among its voting
members.
SEC. 335. DUTIES OF THE COMMISSION.
(a) Study.--
[[Page 112 STAT.1090]]
(1) In general.--The Commission shall conduct a thorough
study of all matters relating to the information technology
workforce in the United States.
(2) Matters studied.--The matters studied by the Commission
shall include an examination of--
(A) the skills necessary to enter the information
technology workforce;
(B) ways to expand the number of skilled information
technology workers; and
(C) the relative efficacy of programs in the United
States and foreign countries to train information
technology workers, with special emphasis on programs
that provide for secondary education or postsecondary
education in a program other than a 4-year baccalaureate
program (including associate degree programs and
graduate degree programs).
(3) Public hearings.--As part of the study conducted under
this subsection, the Commission shall hold public hearings in
each region of the United States concerning the issues referred
to in subparagraphs (A) and (B) of paragraph (2).
(4) Existing information.--To the extent practicable, in
carrying out the study under this subsection, the Commission
shall identify and use existing information related to the
issues referred to in subparagraphs (A) and (B) of paragraph
(2).
(5) Consultation with chief information officers council.--
In carrying out the study under this subsection, the Commission
shall consult with the Chief Information Officers Council
established under Executive Order No. 13011.
(b) <<NOTE: Deadline.>> Report.--Not later than 6 months after the
first meeting of the Commission, the Commission shall submit a report to
the President and the Congress that shall contain a detailed statement
of the findings and conclusions of the Commission resulting from the
study, together with its recommendations for such legislation and
administrative actions as the Commission considers to be appropriate.
(c) Facilitation of Exchange of Information.--In carrying out the
study under subsection (a), the Commission shall, to the extent
practicable, facilitate the exchange of information concerning the
issues that are the subject of the study among--
(1) officials of the Federal Government and the governments
of States and political subdivisions of States; and
(2) educators from Federal, State, and local institutions of
higher education and secondary schools.
SEC. 336. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission may hold such hearings, sit and act at
such times and places, take such testimony, and receive such evidence as
the Commission considers advisable to carry out the purposes of this
subtitle.
(b) Information From Federal Agencies.--The Commission may secure
directly from any Federal department or agency such information as the
Commission considers necessary to carry out the provisions of this
subtitle. Upon request of the Chairperson of the Commission, the head of
such department or agency shall furnish such information to the
Commission.
[[Page 112 STAT.1091]]
(c) Postal Services.--The Commission may use the United States mails
in the same manner and under the same conditions as other departments
and agencies of the Federal Government.
(d) Gifts.--The Commission may accept, use, and dispose of gifts or
donations of services or property.
SEC. 337. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--Except as provided in subsection (b),
each member of the Commission who is not an officer or employee of the
Federal Government shall serve without compensation. All members of the
Commission who are officers or employees of the United States shall
serve without compensation in addition to that received for their
services as officers or employees of the United States.
(b) Travel Expenses.--The members of the Commission shall be allowed
travel expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of chapter 57 of
title 5, United States Code, while away from their homes or regular
places of business in the performance of services for the Commission.
(c) Staff.--
(1) In general.--The Chairperson of the Commission may,
without regard to the civil service laws and regulations,
appoint and terminate an executive director and such other
additional personnel as may be necessary to enable the
Commission to perform its duties. The employment of an executive
director shall be subject to confirmation by the Commission.
(2) Compensation.--The Chairperson of the Commission may fix
the compensation of the executive director and other personnel
without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates,
except that the rate of pay for the executive director and other
personnel may not exceed the rate payable for level V of the
Executive Schedule under section 5316 of such title.
(d) Detail of Government Employees.--Any Federal Government employee
may be detailed to the Commission without reimbursement, and such detail
shall be without interruption or loss of civil service status or
privilege.
(e) Procurement of Temporary and Intermittent Services.--The
Chairperson of the Commission may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code, at rates
for individuals that do not exceed the daily equivalent of the annual
rate of basic pay prescribed for level V of the Executive Schedule under
section 5316 of such title.
SEC. 338. TERMINATION OF THE COMMISSION.
The Commission shall terminate on the date that is 90 days after the
date on which the Commission submits its report under section 335(b).
SEC. 339. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated such sums
as may be necessary for fiscal year 1999 to the Commission to carry out
the purposes of this subtitle.
(b) Availability.--Any sums appropriated under the authorization
contained in this section shall remain available, without fiscal year
limitation, until expended.
[[Page 112 STAT.1092]]
Subtitle D--Application of Civil Rights and Labor-Management Laws to the
Smithsonian Institution
SEC. 341. APPLICATION OF CIVIL RIGHTS AND LABOR-MANAGEMENT LAWS TO THE
SMITHSONIAN INSTITUTION.
(a) Prohibition on Employment Discrimination on Basis of Race,
Color, Religion, Sex, and National Origin.--Section 717(a) of the Civil
Rights Act of 1964 (42 U.S.C. 2000e-16(a)) is amended by inserting ``in
the Smithsonian Institution,'' before ``and in the Government Printing
Office,''.
(b) Prohibition on Employment Discrimination on Basis of Age.--
Section 15(a) of the Age Discrimination in Employment Act of 1967 (29
U.S.C. 633a(a)) is amended by inserting ``in the Smithsonian
Institution,'' before ``and in the Government Printing Office,''.
(c) Prohibition on Employment Discrimination on Basis of
Disability.--Section 501 of the Rehabilitation Act of 1973 (29 U.S.C.
791) is amended--
(1) in the fourth sentence of subsection (a), in paragraph
(1), by inserting ``and the Smithsonian Institution'' after
``Government'';
(2) in the first sentence of subsection (b)--
(A) by inserting ``and the Smithsonian Institution''
after ``in the executive branch''; and
(B) by striking ``such department, agency, or
instrumentality'' and inserting ``such department,
agency, instrumentality, or Institution''; and
(3) in subsection (d), by inserting ``and the Smithsonian
Institution'' after ``instrumentality''.
(d) <<NOTE: Effective date. 29 USC 633a note.>> Application.--The
amendments made by subsections (a), (b), and (c) shall take effect on
the date of enactment of this Act and shall apply to and may be raised
in any administrative or judicial claim or action brought before such
date of enactment but pending on such date, and any administrative or
judicial claim or action brought after such date regardless of whether
the claim or action arose prior to such date, if the claim or action was
brought within the applicable statute of limitations.
(e) Labor-Management Laws.--Section 7103(a)(3) of title 5, United
States Code, is amended--
(1) by striking ``and'' after ``Library of Congress,''; and
(2) by inserting ``and the Smithsonian Institution'' after
``Government Printing Office,''.
TITLE IV-- <<NOTE: Rehabilitation Act Amendments of
1998.>> REHABILITATION ACT AMENDMENTS OF 1998
SEC. 401. <<NOTE: 29 USC 701 note.>> SHORT TITLE.
This title may be cited as the ``Rehabilitation Act Amendments of
1998''.
SEC. 402. TITLE.
The title of the Rehabilitation Act of 1973 <<NOTE: 29 USC 701 note
prec.>> is amended by striking ``to establish special
responsibilities'' and all that follows
[[Page 112 STAT.1093]]
and inserting the following: ``to create linkage between State
vocational rehabilitation programs and workforce investment activities
carried out under title I of the Workforce Investment Act of 1998, to
establish special responsibilities for the Secretary of Education for
coordination of all activities with respect to individuals with
disabilities within and across programs administered by the Federal
Government, and for other purposes.''.
SEC. 403. GENERAL PROVISIONS.
The Rehabilitation Act of 1973 <<NOTE: 29 USC 701 and note, 702-707,
709-718, 718a, 718b.>> is amended by striking the matter preceding
title I and inserting the following:
``short title; table of contents
``Sec. 1. <<NOTE: 29 USC 701 note.>> (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.
``Sec. 2. Findings; purpose; policy.
``Sec. 3. Rehabilitation Services Administration.
``Sec. 4. Advance funding.
``Sec. 5. Joint funding.
``Sec. 6. Definitions.
``Sec. 7. Allotment percentage.
``Sec. 8. Nonduplication.
``Sec. 9. Application of other laws.
``Sec. 10. Administration of the Act.
``Sec. 11. Reports.
``Sec. 12. Evaluation.
``Sec. 13. Information clearinghouse.
``Sec. 14. Transfer of funds.
``Sec. 15. State administration.
``Sec. 16. Review of applications.
``Sec. 17. Carryover.
``Sec. 18. Client assistance information.
``Sec. 19. Traditionally underserved populations.
``TITLE I--VOCATIONAL REHABILITATION SERVICES
``Part A--General Provisions
``Sec. 100. Declaration of policy; authorization of appropriations.
``Sec. 101. State plans.
``Sec. 102. Eligibility and individualized plan for employment.
``Sec. 103. Vocational rehabilitation services.
``Sec. 104. Non-Federal share for establishment of program.
``Sec. 105. State Rehabilitation Council.
``Sec. 106. Evaluation standards and performance indicators.
``Sec. 107. Monitoring and review.
``Sec. 108. Expenditure of certain amounts.
``Sec. 109. Training of employers with respect to Americans with
Disabilities Act of 1990.
``Part B--Basic Vocational Rehabilitation Services
``Sec. 110. State allotments.
``Sec. 111. Payments to States.
``Sec. 112. Client assistance program.
``Part C--American Indian Vocational Rehabilitation Services
``Sec. 121. Vocational rehabilitation services grants.
``Part D--Vocational Rehabilitation Services Client Information
``Sec. 131. Data sharing.
``TITLE II--RESEARCH AND TRAINING
``Sec. 200. Declaration of purpose.
[[Page 112 STAT.1094]]
``Sec. 201. Authorization of appropriations.
``Sec. 202. National Institute on Disability and Rehabilitation
Research.
``Sec. 203. Interagency Committee.
``Sec. 204. Research and other covered activities.
``Sec. 205. Rehabilitation Research Advisory Council.
``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS
``Sec. 301. Declaration of purpose and competitive basis of grants and
contracts.
``Sec. 302. Training.
``Sec. 303. Demonstration and training programs.
``Sec. 304. Migrant and seasonal farmworkers.
``Sec. 305. Recreational programs.
``Sec. 306. Measuring of project outcomes and performance.
``TITLE IV--NATIONAL COUNCIL ON DISABILITY
``Sec. 400. Establishment of National Council on Disability.
``Sec. 401. Duties of National Council.
``Sec. 402. Compensation of National Council members.
``Sec. 403. Staff of National Council.
``Sec. 404. Administrative powers of National Council.
``Sec. 405. Authorization of Appropriations.
``TITLE V--RIGHTS AND ADVOCACY
``Sec. 501. Employment of individuals with disabilities.
``Sec. 502. Architectural and Transportation Barriers Compliance Board.
``Sec. 503. Employment under Federal contracts.
``Sec. 504. Nondiscrimination under Federal grants and programs.
``Sec. 505. Remedies and attorneys' fees.
``Sec. 506. Secretarial responsibilities.
``Sec. 507. Interagency Disability Coordinating Council.
``Sec. 508. Electronic and information technology regulations.
``Sec. 509. Protection and advocacy of individual rights.
``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES
``Sec. 601. Short title.
``Part A--Projects With Industry
``Sec. 611. Projects with industry.
``Sec. 612. Authorization of appropriations.
``Part B--Supported Employment Services for Individuals With the Most
Significant Disabilities
``Sec. 621. Purpose.
``Sec. 622. Allotments.
``Sec. 623. Availability of services.
``Sec. 624. Eligibility.
``Sec. 625. State plan.
``Sec. 626. Restriction.
``Sec. 627. Savings provision.
``Sec. 628. Authorization of appropriations.
``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING
``Chapter 1--Individuals With Significant Disabilities
``Part A--General Provisions
``Sec. 701. Purpose.
``Sec. 702. Definitions.
``Sec. 703. Eligibility for receipt of services.
``Sec. 704. State plan.
``Sec. 705. Statewide Independent Living Council.
``Sec. 706. Responsibilities of the Commissioner.
``Part B--Independent Living Services
``Sec. 711. Allotments.
``Sec. 712. Payments to States from allotments.
[[Page 112 STAT.1095]]
``Sec. 713. Authorized uses of funds.
``Sec. 714. Authorization of appropriations.
``Part C--Centers for Independent Living
``Sec. 721. Program authorization.
``Sec. 722. Grants to centers for independent living in States in which
Federal funding exceeds State funding.
``Sec. 723. Grants to centers for independent living in States in which
State funding equals or exceeds Federal funding.
``Sec. 724. Centers operated by State agencies.
``Sec. 725. Standards and assurances for centers for independent living.
``Sec. 726. Definitions.
``Sec. 727. Authorization of appropriations.
``Chapter 2--Independent Living Services for Older Individuals Who Are
Blind
``Sec. 751. Definition.
``Sec. 752. Program of grants.
``Sec. 753. Authorization of appropriations.
``findings; purpose; policy
``Sec. 2. <<NOTE: 29 USC 701.>> (a) Findings.--Congress finds
that--
``(1) millions of Americans have one or more physical or
mental disabilities and the number of Americans with such
disabilities is increasing;
``(2) individuals with disabilities constitute one of the
most disadvantaged groups in society;
``(3) disability is a natural part of the human experience
and in no way diminishes the right of individuals to--
``(A) live independently;
``(B) enjoy self-determination;
``(C) make choices;
``(D) contribute to society;
``(E) pursue meaningful careers; and
``(F) enjoy full inclusion and integration in the
economic, political, social, cultural, and educational
mainstream of American society;
``(4) increased employment of individuals with disabilities
can be achieved through implementation of statewide workforce
investment systems under title I of the Workforce Investment Act
of 1998 that provide meaningful and effective participation for
individuals with disabilities in workforce investment activities
and activities carried out under the vocational rehabilitation
program established under title I, and through the provision of
independent living services, support services, and meaningful
opportunities for employment in integrated work settings through
the provision of reasonable accommodations;
``(5) individuals with disabilities continually encounter
various forms of discrimination in such critical areas as
employment, housing, public accommodations, education,
transportation, communication, recreation, institutionalization,
health services, voting, and public services; and
``(6) the goals of the Nation properly include the goal of
providing individuals with disabilities with the tools necessary
to--
``(A) make informed choices and decisions; and
``(B) achieve equality of opportunity, full
inclusion and integration in society, employment,
independent living, and economic and social self-
sufficiency, for such individuals.
``(b) Purpose.--The purposes of this Act are--
[[Page 112 STAT.1096]]
``(1) to empower individuals with disabilities to maximize
employment, economic self-sufficiency, independence, and
inclusion and integration into society, through--
``(A) statewide workforce investment systems
implemented in accordance with title I of the Workforce
Investment Act of 1998 that include, as integral
components, comprehensive and coordinated state-of-the-
art programs of vocational rehabilitation;
``(B) independent living centers and services;
``(C) research;
``(D) training;
``(E) demonstration projects; and
``(F) the guarantee of equal opportunity; and
``(2) to ensure that the Federal Government plays a
leadership role in promoting the employment of individuals with
disabilities, especially individuals with significant
disabilities, and in assisting States and providers of services
in fulfilling the aspirations of such individuals with
disabilities for meaningful and gainful employment and
independent living.
``(c) Policy.--It is the policy of the United States that all
programs, projects, and activities receiving assistance under this Act
shall be carried out in a manner consistent with the principles of--
``(1) respect for individual dignity, personal
responsibility, self-determination, and pursuit of meaningful
careers, based on informed choice, of individuals with
disabilities;
``(2) respect for the privacy, rights, and equal access
(including the use of accessible formats), of the individuals;
``(3) inclusion, integration, and full participation of the
individuals;
``(4) support for the involvement of an individual's
representative if an individual with a disability requests,
desires, or needs such support; and
``(5) support for individual and systemic advocacy and
community involvement.
``rehabilitation services administration
``Sec. 3. <<NOTE: Establishment. President. 29 USC 702.>> (a) There
is established in the Office of the Secretary a Rehabilitation Services
Administration which shall be headed by a Commissioner (hereinafter in
this Act referred to as the `Commissioner') appointed by the President
by and with the advice and consent of the Senate. 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 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 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 shall not be delegated to
any officer not directly responsible, both with respect to program
operation and administration, to the Commissioner. Any reference in this
Act to duties to be carried out by the Commissioner shall be considered
to be a reference to duties to be carried out by the Secretary acting
through the Commissioner. In carrying out any of the functions of the
office
[[Page 112 STAT.1097]]
under this Act, the Commissioner shall be guided by general policies of
the National Council on Disability established under title IV of this
Act.
``(b) The Secretary shall take whatever action is necessary to
ensure that funds appropriated pursuant to this Act are expended only
for the programs, personnel, and administration of programs carried out
under this Act.
``advance funding
``Sec. 4. <<NOTE: 29 USC 703.>> (a) For the purpose of affording
adequate notice of funding available under this Act, appropriations
under this Act are authorized to be included in the appropriation Act
for the fiscal year preceding the fiscal year for which they are
available for obligation.
``(b) In order to effect a transition to the advance funding method
of timing appropriation action, the authority provided by subsection (a)
of this section shall apply notwithstanding that its initial application
will result in the enactment in the same year (whether in the same
appropriation Act or otherwise) of two separate appropriations, one for
the then current fiscal year and one for the succeeding fiscal year.
``joint funding
``Sec. 5. <<NOTE: Regulations. 29 USC 704.>> Pursuant to
regulations prescribed by the President, and to the extent consistent
with the other provisions of this Act, where funds are provided for a
single project by more than one Federal agency to an agency or
organization assisted under this Act, the Federal agency principally
involved may be designated to act for all in administering the funds
provided, and, in such cases, a single non-Federal share requirement may
be established according to the proportion of funds advanced by each
agency. When the principal agency involved is the Rehabilitation
Services Administration, it may waive any grant or contract requirement
(as defined by such regulations) under or pursuant to any law other than
this Act, which requirement is inconsistent with the similar
requirements of the administering agency under or pursuant to this Act.
``definitions
``Sec. 6. <<NOTE: 29 USC 705.>> For the purposes of this Act:
``(1) The term `administrative costs' means expenditures
incurred in the performance of administrative functions under
the vocational rehabilitation program carried out under title I,
including expenses related to program planning, development,
monitoring, and evaluation, including expenses for--
``(A) quality assurance;
``(B) budgeting, accounting, financial management,
information systems, and related data processing;
``(C) providing information about the program to the
public;
``(D) technical assistance and support services to
other State agencies, private nonprofit organizations,
and businesses and industries, except for technical
assistance and support services described in section
103(b)(5);
[[Page 112 STAT.1098]]
``(E) the State Rehabilitation Council and other
advisory committees;
``(F) professional organization membership dues for
designated State unit employees;
``(G) the removal of architectural barriers in State
vocational rehabilitation agency offices and State
operated rehabilitation facilities;
``(H) operating and maintaining designated State
unit facilities, equipment, and grounds;
``(I) supplies;
``(J) administration of the comprehensive system of
personnel development described in section 101(a)(7),
including personnel administration, administration of
affirmative action plans, and training and staff
development;
``(K) administrative salaries, including clerical
and other support staff salaries, in support of these
administrative functions;
``(L) travel costs related to carrying out the
program, other than travel costs related to the
provision of services;
``(M) costs incurred in conducting reviews of
rehabilitation counselor or coordinator determinations
under section 102(c); and
``(N) legal expenses required in the administration
of the program.
``(2) Assessment for determining eligibility and vocational
rehabilitation needs.--The term `assessment for determining
eligibility and vocational rehabilitation needs' means, as
appropriate in each case--
``(A)(i) a review of existing data--
``(I) to determine whether an individual is
eligible for vocational rehabilitation services;
and
``(II) to assign priority for an order of
selection described in section 101(a)(5)(A) in the
States that use an order of selection pursuant to
section 101(a)(5)(A); and
``(ii) to the extent necessary, the provision of
appropriate assessment activities to obtain necessary
additional data to make such determination and
assignment;
``(B) to the extent additional data is necessary to
make a determination of the employment outcomes, and the
objectives, nature, and scope of vocational
rehabilitation services, to be included in the
individualized plan for employment of an eligible
individual, a comprehensive assessment to determine the
unique strengths, resources, priorities, concerns,
abilities, capabilities, interests, and informed choice,
including the need for supported employment, of the
eligible individual, which comprehensive assessment--
``(i) is limited to information that is
necessary to identify the rehabilitation needs of
the individual and to develop the individualized
plan for employment of the eligible individual;
``(ii) uses, as a primary source of such
information, to the maximum extent possible and
appropriate and in accordance with confidentiality
requirements--
[[Page 112 STAT.1099]]
``(I) existing information obtained
for the purposes of determining the
eligibility of the individual and
assigning priority for an order of
selection described in section
101(a)(5)(A) for the individual; and
``(II) such information as can be
provided by the individual and, where
appropriate, by the family of the
individual;
``(iii) may include, to the degree needed to
make such a determination, an assessment of the
personality, interests, interpersonal skills,
intelligence and related functional capacities,
educational achievements, work experience,
vocational aptitudes, personal and social
adjustments, and employment opportunities of the
individual, and the medical, psychiatric,
psychological, and other pertinent vocational,
educational, cultural, social, recreational, and
environmental factors, that affect the employment
and rehabilitation needs of the individual; and
``(iv) may include, to the degree needed, an
appraisal of the patterns of work behavior of the
individual and services needed for the individual
to acquire occupational skills, and to develop
work attitudes, work habits, work tolerance, and
social and behavior patterns necessary for
successful job performance, including the
utilization of work in real job situations to
assess and develop the capacities of the
individual to perform adequately in a work
environment;
``(C) referral, for the provision of rehabilitation
technology services to the individual, to assess and
develop the capacities of the individual to perform in a
work environment; and
``(D) an exploration of the individual's abilities,
capabilities, and capacity to perform in work
situations, which shall be assessed periodically during
trial work experiences, including experiences in which
the individual is provided appropriate supports and
training.
``(3) Assistive technology device.--The term `assistive
technology device' has the meaning given such term in section
3(2) of the Technology-Related Assistance for Individuals With
Disabilities Act of 1988 (29 U.S.C. 2202(2)), except that the
reference in such section to the term `individuals with
disabilities' shall be deemed to mean more than one individual
with a disability as defined in paragraph (20)(A).
``(4) Assistive technology service.--The term `assistive
technology service' has the meaning given such term in section
3(3) of the Technology-Related Assistance for Individuals With
Disabilities Act of 1988 (29 U.S.C. 2202(3)), except that the
reference in such section--
``(A) to the term `individual with a disability'
shall be deemed to mean an individual with a disability,
as defined in paragraph (20)(A); and
``(B) to the term `individuals with disabilities'
shall be deemed to mean more than one such individual.
``(5) Community rehabilitation program.--The term `community
rehabilitation program' means a program that provides directly
or facilitates the provision of vocational
[[Page 112 STAT.1100]]
rehabilitation services to individuals with disabilities, and
that provides, singly or in combination, for an individual with
a disability to enable the individual to maximize opportunities
for employment, including career advancement--
``(A) medical, psychiatric, psychological, social,
and vocational services that are provided under one
management;
``(B) testing, fitting, or training in the use of
prosthetic and orthotic devices;
``(C) recreational therapy;
``(D) physical and occupational therapy;
``(E) speech, language, and hearing therapy;
``(F) psychiatric, psychological, and social
services, including positive behavior management;
``(G) assessment for determining eligibility and
vocational rehabilitation needs;
``(H) rehabilitation technology;
``(I) job development, placement, and retention
services;
``(J) evaluation or control of specific
disabilities;
``(K) orientation and mobility services for
individuals who are blind;
``(L) extended employment;
``(M) psychosocial rehabilitation services;
``(N) supported employment services and extended
services;
``(O) services to family members when necessary to
the vocational rehabilitation of the individual;
``(P) personal assistance services; or
``(Q) services similar to the services described in
one of subparagraphs (A) through (P).
``(6) Construction; cost of construction.--
``(A) Construction.--The term `construction' means--
``(i) the construction of new buildings;
``(ii) the acquisition, expansion, remodeling,
alteration, and renovation of existing buildings;
and
``(iii) initial equipment of buildings
described in clauses (i) and (ii).
``(B) Cost of construction.--The term `cost of
construction' includes architects' fees and the cost of
acquisition of land in connection with construction but
does not include the cost of offsite improvements.
``(7) Criminal act.--The term `criminal act' means any
crime, including an act, omission, or possession under the laws
of the United States or a State or unit of general local
government, which poses a substantial threat of personal injury,
notwithstanding that by reason of age, insanity, or intoxication
or otherwise the person engaging in the act, omission, or
possession was legally incapable of committing a crime.
``(8) Designated state agency; designated state unit.--
``(A) Designated state agency.--The term `designated
State agency' means an agency designated under section
101(a)(2)(A).
``(B) Designated state unit.--The term `designated
State unit' means--
``(i) any State agency unit required under
section 101(a)(2)(B)(ii); or
[[Page 112 STAT.1101]]
``(ii) in cases in which no such unit is so
required, the State agency described in section
101(a)(2)(B)(i).
``(9) Disability.--The term `disability' means--
``(A) except as otherwise provided in subparagraph
(B), a physical or mental impairment that constitutes or
results in a substantial impediment to employment; or
``(B) for purposes of sections 2, 14, and 15, and
titles II, IV, V, and VII, a physical or mental
impairment that substantially limits one or more major
life activities.
``(10) Drug and illegal use of drugs.--
``(A) Drug.--The term `drug' means a controlled
substance, as defined in schedules I through V of
section 202 of the Controlled Substances Act (21 U.S.C.
812).
``(B) Illegal use of drugs.--The term `illegal use
of drugs' means the use of drugs, the possession or
distribution of which is unlawful under the Controlled
Substances Act. Such term does not include the use of a
drug taken under supervision by a licensed health care
professional, or other uses authorized by the Controlled
Substances Act or other provisions of Federal law.
``(11) Employment outcome.--The term `employment outcome'
means, with respect to an individual--
``(A) entering or retaining full-time or, if
appropriate, part-time competitive employment in the
integrated labor market;
``(B) satisfying the vocational outcome of supported
employment; or
``(C) satisfying any other vocational outcome the
Secretary may determine to be appropriate (including
satisfying the vocational outcome of self-employment,
telecommuting, or business ownership),
in a manner consistent with this Act.
``(12) <<NOTE: Regulations.>> 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 considers appropriate.
``(13) Extended services.--The term `extended services'
means ongoing support services and other appropriate services,
needed to support and maintain an individual with a most
significant disability in supported employment, that--
``(A) are provided singly or in combination and are
organized and made available in such a way as to assist
an eligible individual in maintaining supported
employment;
``(B) are based on a determination of the needs of
an eligible individual, as specified in an
individualized plan for employment; and
[[Page 112 STAT.1102]]
``(C) are provided by a State agency, a nonprofit
private organization, employer, or any other appropriate
resource, after an individual has made the transition
from support provided by the designated State unit.
``(14) Federal share.--
``(A) In general.--Subject to subparagraph (B), the
term `Federal share' means 78.7 percent.
``(B) Exception.--The term `Federal share' means the
share specifically set forth in section 111(a)(3),
except that with respect to payments pursuant to part B
of title I to any State that are used to meet the costs
of construction of those rehabilitation facilities
identified in section 103(b)(2) in such State, the
Federal share shall be the percentages determined in
accordance with the provisions of section 111(a)(3)
applicable with respect to the State.
``(C) <<NOTE: Regulations.>> Relationship to
expenditures by a political subdivision.--For the
purpose of determining the non-Federal share with
respect to a State, expenditures by a political
subdivision thereof or by a local agency shall be
regarded as expenditures by such State, subject to such
limitations and conditions as the Secretary shall by
regulation prescribe.
``(15) Governor.--The term `Governor' means a chief
executive officer of a State.
``(16) Impartial hearing officer.--
``(A) In general.--The term `impartial hearing
officer' means an individual--
``(i) who is not an employee of a public
agency (other than an administrative law judge,
hearing examiner, or employee of an institution of
higher education);
``(ii) who is not a member of the State
Rehabilitation Council described in section 105;
``(iii) who has not been involved previously
in the vocational rehabilitation of the applicant
or client;
``(iv) who has knowledge of the delivery of
vocational rehabilitation services, the State plan
under section 101, and the Federal and State rules
governing the provision of such services and
training with respect to the performance of
official duties; and
``(v) who has no personal or financial
interest that would be in conflict with the
objectivity of the individual.
``(B) Construction.--An individual shall not be
considered to be an employee of a public agency for
purposes of subparagraph (A)(i) solely because the
individual is paid by the agency to serve as a hearing
officer.
``(17) Independent living core services.--The term
`independent living core services' means--
``(A) information and referral services;
``(B) independent living skills training;
``(C) peer counseling (including cross-disability
peer counseling); and
``(D) individual and systems advocacy.
``(18) Independent living services.--The term `inde-
pendent living services' includes--
``(A) independent living core services; and
[[Page 112 STAT.1103]]
``(B)(i) counseling services, including
psychological, psychotherapeutic, and related services;
``(ii) services related to securing housing or
shelter, including services related to community group
living, and supportive of the purposes of this Act and
of the titles of this Act, and adaptive housing services
(including appropriate accommodations to and
modifications of any space used to serve, or occupied
by, individuals with disabilities);
``(iii) rehabilitation technology;
``(iv) mobility training;
``(v) services and training for individuals with
cognitive and sensory disabilities, including life
skills training, and interpreter and reader services;
``(vi) personal assistance services, including
attendant care and the training of personnel providing
such services;
``(vii) surveys, directories, and other activities
to identify appropriate housing, recreation
opportunities, and accessible transportation, and other
support services;
``(viii) consumer information programs on
rehabilitation and independent living services available
under this Act, especially for minorities and other
individuals with disabilities who have traditionally
been unserved or underserved by programs under this Act;
``(ix) education and training necessary for living
in a community and participating in community
activities;
``(x) supported living;
``(xi) transportation, including referral and
assistance for such transportation and training in the
use of public transportation vehicles and systems;
``(xii) physical rehabilitation;
``(xiii) therapeutic treatment;
``(xiv) provision of needed prostheses and other
appliances and devices;
``(xv) individual and group social and recreational
services;
``(xvi) training to develop skills specifically
designed for youths who are individuals with
disabilities to promote self-awareness and esteem,
develop advocacy and self-empowerment skills, and
explore career options;
``(xvii) services for children;
``(xviii) services under other Federal, State, or
local programs designed to provide resources, training,
counseling, or other assistance, of substantial benefit
in enhancing the independence, productivity, and quality
of life of individuals with disabilities;
``(xix) appropriate preventive services to decrease
the need of individuals assisted under this Act for
similar services in the future;
``(xx) community awareness programs to enhance the
understanding and integration into society of
individuals with disabilities; and
``(xxi) such other services as may be necessary and
not inconsistent with the provisions of this Act.
``(19) Indian; american indian; indian american; indian
tribe.--
[[Page 112 STAT.1104]]
``(A) In general.--The terms `Indian', `American
Indian', and `Indian American' mean an individual who is
a member of an Indian tribe.
``(B) Indian tribe.--The term `Indian tribe' means
any Federal or State Indian tribe, band, rancheria,
pueblo, colony, or community, including any Alaskan
native village or regional village corporation (as
defined in or established pursuant to the Alaska Native
Claims Settlement Act).
``(20) Individual with a disability.--
``(A) In general.--Except as otherwise provided in
subparagraph (B), the term `individual with a
disability' means any individual who--
``(i) has a physical or mental impairment
which for such individual constitutes or results
in a substantial impediment to employment; and
``(ii) can benefit in terms of an employment
outcome from vocational rehabilitation services
provided pursuant to title I, III, or VI.
``(B) Certain programs; limitations on major life
activities.--Subject to subparagraphs (C), (D), (E), and
(F), the term `individual with a disability' means, for
purposes of sections 2, 14, and 15, and titles II, IV,
V, and VII of this Act, any person who--
``(i) has a physical or mental impairment
which substantially limits one or more of such
person's major life activities;
``(ii) has a record of such an impairment; or
``(iii) is regarded as having such an
impairment.
``(C) Rights and advocacy provisions.--
``(i) In general; exclusion of individuals
engaging in drug use.--For purposes of title V,
the term `individual with a disability' does not
include an individual who is currently engaging in
the illegal use of drugs, when a covered entity
acts on the basis of such use.
``(ii) Exception for individuals no longer
engaging in drug use.--Nothing in clause (i) shall
be construed to exclude as an individual with a
disability an individual who--
``(I) has successfully completed a
supervised drug rehabilitation program
and is no longer engaging in the illegal
use of drugs, or has otherwise been
rehabilitated successfully and is no
longer engaging in such use;
``(II) is participating in a
supervised rehabilitation program and is
no longer engaging in such use; or
``(III) is erroneously regarded as
engaging in such use, but is not
engaging in such use;
except that it shall not be a violation of this
Act for a covered entity to adopt or administer
reasonable policies or procedures, including but
not limited to drug testing, designed to ensure
that an individual described in subclause (I) or
(II) is no longer engaging in the illegal use of
drugs.
[[Page 112 STAT.1105]]
``(iii) Exclusion for certain services.--
Notwithstanding clause (i), for purposes of
programs and activities providing health services
and services provided under titles I, II, and III,
an individual shall not be excluded from the
benefits of such programs or activities on the
basis of his or her current illegal use of drugs
if he or she is otherwise entitled to such
services.
``(iv) Disciplinary action.--For purposes of
programs and activities providing educational
services, local educational agencies may take
disciplinary action pertaining to the use or
possession of illegal drugs or alcohol against any
student who is an individual with a disability and
who currently is engaging in the illegal use of
drugs or in the use of alcohol to the same extent
that such disciplinary action is taken against
students who are not individuals with
disabilities. Furthermore, the due process
procedures at section 104.36 of title 34, Code of
Federal Regulations (or any corresponding similar
regulation or ruling) shall not apply to such
disciplinary actions.
``(v) Employment; exclusion of alcoholics.--
For purposes of sections 503 and 504 as such
sections relate to employment, the term
`individual with a disability' does not include
any individual who is an alcoholic whose current
use of alcohol prevents such individual from
performing the duties of the job in question or
whose employment, by reason of such current
alcohol abuse, would constitute a direct threat to
property or the safety of others.
``(D) Employment; exclusion of individuals with
certain diseases or infections.--For the purposes of
sections 503 and 504, as such sections relate to
employment, such term does not include an individual who
has a currently contagious disease or infection and who,
by reason of such disease or infection, would constitute
a direct threat to the health or safety of other
individuals or who, by reason of the currently
contagious disease or infection, is unable to perform
the duties of the job.
``(E) Rights provisions; exclusion of individuals on
basis of homosexuality or bisexuality.--For the purposes
of sections 501, 503, and 504--
``(i) for purposes of the application of
subparagraph (B) to such sections, the term
`impairment' does not include homosexuality or
bisexuality; and
``(ii) therefore the term `individual with a
disability' does not include an individual on the
basis of homosexuality or bisexuality.
``(F) Rights provisions; exclusion of individuals on
basis of certain disorders.--For the purposes of
sections 501, 503, and 504, the term `individual with a
disability' does not include an individual on the basis
of--
``(i) transvestism, transsexualism,
pedophilia, exhibitionism, voyeurism, gender
identity disorders not resulting from physical
impairments, or other sexual behavior disorders;
[[Page 112 STAT.1106]]
``(ii) compulsive gambling, kleptomania, or
pyromania; or
``(iii) psychoactive substance use disorders
resulting from current illegal use of drugs.
``(G) Individuals with disabilities.--The term
`individuals with disabilities' means more than one
individual with a disability.
``(21) Individual with a significant disability.--
``(A) In general.--Except as provided in
subparagraph (B) or (C), the term `individual with a
significant disability' means an individual with a
disability--
``(i) who has a severe physical or mental
impairment which seriously limits one or more
functional capacities (such as mobility,
communication, self-care, self-direction,
interpersonal skills, work tolerance, or work
skills) in terms of an employment outcome;
``(ii) whose vocational rehabilitation can be
expected to require multiple vocational
rehabilitation services over an extended period of
time; and
``(iii) who has one or more physical or mental
disabilities resulting from amputation, arthritis,
autism, blindness, burn injury, cancer, cerebral
palsy, cystic fibrosis, deafness, head injury,
heart disease, hemiplegia, hemophilia, respiratory
or pulmonary dysfunction, mental retardation,
mental illness, multiple sclerosis, muscular
dystrophy, musculo-skeletal disorders,
neurological disorders (including stroke and
epilepsy), paraplegia, quadriplegia, and other
spinal cord conditions, sickle cell anemia,
specific learning disability, end-stage renal
disease, or another disability or combination of
disabilities determined on the basis of an
assessment for determining eligibility and
vocational rehabilitation needs described in
subparagraphs (A) and (B) of paragraph (2) to
cause comparable substantial functional
limitation.
``(B) Independent living services and centers for
independent living.--For purposes of title VII, the term
`individual with a significant disability' means an
individual with a severe physical or mental impairment
whose ability to function independently in the family or
community or whose ability to obtain, maintain, or
advance in employment is substantially limited and for
whom the delivery of independent living services will
improve the ability to function, continue functioning,
or move toward functioning independently in the family
or community or to continue in employment, respectively.
``(C) Research and training.--For purposes of title
II, the term `individual with a significant disability'
includes an individual described in subparagraph (A) or
(B).
``(D) Individuals with significant disabilities.--
The term `individuals with significant disabilities'
means more than one individual with a significant
disability.
``(E) Individual with a most significant
disability.--
[[Page 112 STAT.1107]]
``(i) In general.--The term `individual with a
most significant disability', used with respect to
an individual in a State, means an individual with
a significant disability who meets criteria
established by the State under section
101(a)(5)(C).
``(ii) Individuals with the most significant
disabilities.--The term `individuals with the most
significant disabilities' means more than one
individual with a most significant disability.
``(22) Individual's representative; applicant's
representative.--The terms `individual's representative' and
`applicant's representative' mean a parent, a family member, a
guardian, an advocate, or an authorized representative of an
individual or applicant, respectively.
``(23) Institution of higher education.--The term
`institution of higher education' has the meaning given the term
in section 1201(a) of the Higher Education Act of 1965 (20
U.S.C. 1141(a)).
``(24) Local agency.--The term `local agency' means an
agency of a unit of general local government or of an Indian
tribe (or combination of such units or tribes) which has an
agreement with the designated State agency to conduct a
vocational rehabilitation program under the supervision of such
State agency in accordance with the State plan approved under
section 101. Nothing in the preceding sentence of this paragraph
or in section 101 shall be construed to prevent the local agency
from arranging to utilize another local public or nonprofit
agency to provide vocational rehabilitation services if such an
arrangement is made part of the agreement specified in this
paragraph.
``(25) Local workforce investment board.--The term `local
workforce investment board' means a local workforce investment
board established under section 117 of the Workforce Investment
Act of 1998.
``(26) Nonprofit.--The term `nonprofit', when used with
respect to a community rehabilitation program, means a community
rehabilitation program carried out by a corporation or
association, no part of the net earnings of which inures, or may
lawfully inure, to the benefit of any private shareholder or
individual and the income of which is exempt from taxation under
section 501(c)(3) of the Internal Revenue Code of 1986.
``(27) Ongoing support services.--The term `ongoing support
services' means services--
``(A) provided to individuals with the most
significant disabilities;
``(B) provided, at a minimum, twice monthly--
``(i) to make an assessment, regarding the
employment situation, at the worksite of each such
individual in supported employment, or, under
special circumstances, especially at the request
of the client, off site; and
``(ii) based on the assessment, to provide for
the coordination or provision of specific
intensive services, at or away from the worksite,
that are needed to maintain employment stability;
and
``(C) consisting of--
[[Page 112 STAT.1108]]
``(i) a particularized assessment
supplementary to the comprehensive assessment
described in paragraph (2)(B);
``(ii) the provision of skilled job trainers
who accompany the individual for intensive job
skill training at the worksite;
``(iii) job development, job retention, and
placement services;
``(iv) social skills training;
``(v) regular observation or supervision of
the individual;
``(vi) followup services such as regular
contact with the employers, the individuals, the
individuals' representatives, and other
appropriate individuals, in order to reinforce and
stabilize the job placement;
``(vii) facilitation of natural supports at
the worksite;
``(viii) any other service identified in
section 103; or
``(ix) a service similar to another service
described in this subparagraph.
``(28) Personal assistance services.--The term `personal
assistance services' means a range of services, provided by one
or more persons, designed to assist an individual with a
disability to perform daily living activities on or off the job
that the individual would typically perform if the individual
did not have a disability. Such services shall be designed to
increase the individual's control in life and ability to perform
everyday activities on or off the job.
``(29) Public or nonprofit.--The term `public or nonprofit',
used with respect to an agency or organization, includes an
Indian tribe.
``(30) Rehabilitation technology.--The term `rehabilitation
technology' means the systematic application of technologies,
engineering methodologies, or scientific principles to meet the
needs of and address the barriers confronted by individuals with
disabilities in areas which include education, rehabilitation,
employment, transportation, independent living, and recreation.
The term includes rehabilitation engineering, assistive
technology devices, and assistive technology services.
``(31) Secretary.--The term `Secretary', except when the
context otherwise requires, means the Secretary of Education.
``(32) State.--The term `State' includes, in addition to
each of the several States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, the United States
Virgin Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
``(33) State workforce investment board.--The term `State
workforce investment board' means a State workforce investment
board established under section 111 of the Workforce Investment
Act of 1998.
``(34) Statewide workforce investment system.--The term
`statewide workforce investment system' means a system described
in section 111(d)(2) of the Workforce Investment Act of 1998.
``(35) Supported employment.--
[[Page 112 STAT.1109]]
``(A) In general.--The term `supported employment'
means competitive work in integrated work settings, or
employment in integrated work settings in which
individuals are working toward competitive work,
consistent with the strengths, resources, priorities,
concerns, abilities, capabilities, interests, and
informed choice of the individuals, for individuals with
the most significant disabilities--
``(i)(I) for whom competitive employment has
not traditionally occurred; or
``(II) for whom competitive employment has
been interrupted or intermittent as a result of a
significant disability; and
``(ii) who, because of the nature and severity
of their disability, need intensive supported
employment services for the period, and any
extension, described in paragraph (36)(C) and
extended services after the transition described
in paragraph (13)(C) in order to perform such
work.
``(B) Certain transitional employment.--Such term
includes transitional employment for persons who are
individuals with the most significant disabilities due
to mental illness.
``(36) Supported employment services.--The term `supported
employment services' means ongoing support services and other
appropriate services needed to support and maintain an
individual with a most significant disability in supported
employment, that--
``(A) are provided singly or in combination and are
organized and made available in such a way as to assist
an eligible individual to achieve competitive
employment;
``(B) are based on a determination of the needs of
an eligible individual, as specified in an
individualized plan for employment; and
``(C) are provided by the designated State unit for
a period of time not to extend beyond 18 months, unless
under special circumstances the eligible individual and
the rehabilitation counselor or coordinator involved
jointly agree to extend the time in order to achieve the
rehabilitation objectives identified in the
individualized plan for employment.
``(37) Transition services.--The term `transition services'
means a coordinated set of activities for a student, designed
within an outcome-oriented process, that promotes movement from
school to post school activities, including postsecondary
education, vocational training, integrated employment (including
supported employment), continuing and adult education, adult
services, independent living, or community participation. The
coordinated set of activities shall be based upon the individual
student's needs, taking into account the student's preferences
and interests, and shall include instruction, community
experiences, the development of employment and other post school
adult living objectives, and, when appropriate, acquisition of
daily living skills and functional vocational evaluation.
``(38) Vocational rehabilitation services.--The term
`vocational rehabilitation services' means those services
identified in section 103 which are provided to individuals with
disabilities under this Act.
[[Page 112 STAT.1110]]
``(39) Workforce investment activities.--The term `workforce
investment activities' means workforce investment activities, as
defined in section 101 of the Workforce Investment Act of 1998,
that are carried out under that Act.
``allotment percentage
``Sec. 7. <<NOTE: 29 USC 706.>> (a)(1) For purposes of section 110,
the allotment percentage for any State shall be 100 per centum less that
percentage which bears the same ratio to 50 per centum as the per capita
income of such State bears to the per capita income of the United
States, except that--
``(A) the allotment percentage shall in no case be more than
75 per centum or less than 33\1/3\ per centum; and
``(B) the allotment percentage for the District of Columbia,
Puerto Rico, Guam, the Virgin Islands, American Samoa, and the
Commonwealth of the Northern Mariana Islands shall be 75 per
centum.
``(2) The allotment percentages shall be promulgated by the
Secretary between October 1 and December 31 of each even-numbered year,
on the basis of the average of the per capita incomes of the States and
of the United States for the three most recent consecutive years for
which satisfactory data are available from the Department of Commerce.
Such promulgation shall be conclusive for each of the 2 fiscal years in
the period beginning on the October 1 next succeeding such promulgation.
``(3) The term `United States' means (but only for purposes of this
subsection) the 50 States and the District of Columbia.
``(b) The population of the several States and of the United States
shall be determined on the basis of the most recent data available, to
be furnished by the Department of Commerce by October 1 of the year
preceding the fiscal year for which funds are appropriated pursuant to
statutory authorizations.
``nonduplication
``Sec. 8. <<NOTE: 29 USC 707.>> In determining the amount of any
State's Federal share of expenditures for planning, administration, and
services incurred by it under a State plan approved in accordance with
section 101, there shall be disregarded: (1) any portion of such
expenditures which are financed by Federal funds provided under any
other provision of law; and (2) the amount of any non-Federal funds
required to be expended as a condition of receipt of such Federal funds.
No payment may be made from funds provided under one provision of this
Act relating to any cost with respect to which any payment is made under
any other provision of this Act, except that this section shall not be
construed to limit or reduce fees for services rendered by community
rehabilitation programs.
``application of other laws
``Sec. 9. <<NOTE: 29 USC 708.>> The provisions of the Act of
December 5, 1974 (Public Law 93-510) and of title V of the Act of
October 15, 1977 (Public Law 95-134) shall not apply to the
administration of the provisions of this Act or to the administration of
any program or activity under this Act.
[[Page 112 STAT.1111]]
``administration of the act
``Sec. 10. <<NOTE: 29 USC 709.>> (a) In carrying out the purposes
of this Act, the Commissioner may--
``(1) provide consultative services and technical assistance
to public or nonprofit private agencies and organizations,
including assistance to enable such agencies and organizations
to facilitate meaningful and effective participation by
individuals with disabilities in workforce investment
activities;
``(2) provide short-term training and technical instruction,
including training for the personnel of community rehabilitation
programs, centers for independent living, and other providers of
services (including job coaches);
``(3) conduct special projects and demonstrations;
``(4) collect, prepare, publish, and disseminate special
educational or informational materials, including reports of the
projects for which funds are provided under this Act; and
``(5) provide monitoring and conduct evaluations.
``(b)(1) In carrying out the duties under this Act, the Commissioner
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 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
shall appoint such task forces as may be necessary to collect and
disseminate information in order to improve the ability of the
Commissioner to carry out the provisions of this Act.
``(c) The Commissioner may promulgate such regulations as are
considered appropriate to carry out the Commissioner's duties under this
Act.
``(d) <<NOTE: Regulations.>> The Secretary shall promulgate
regulations regarding the requirements for the implementation of an
order of selection for vocational rehabilitation services under section
101(a)(5)(A) if such services cannot be provided to all eligible
individuals with disabilities who apply for such services.
``(e) <<NOTE: Deadline. Regulations.>> Not later than 180 days
after the date of enactment of the Rehabilitation Act Amendments of
1998, the Secretary shall receive public comment and promulgate
regulations to implement the amendments made by the Rehabilitation Act
Amendments of 1998.
``(f ) In promulgating regulations to carry out this Act, the
Secretary shall promulgate only regulations that are necessary to
administer and ensure compliance with the specific requirements of this
Act.
``(g) <<NOTE: Appropriation authorization.>> There are authorized
to be appropriated to carry out this section such sums as may be
necessary.
``reports
``Sec. 11. <<NOTE: Deadline. 29 USC 710.>> (a) Not later than one
hundred and eighty days after the close of each fiscal year, the
Commissioner shall prepare and submit to the President and to the
Congress a full and complete report on the activities carried out under
this Act, including the activities and staffing of the information
clearinghouse under section 15.
[[Page 112 STAT.1112]]
``(b) The Commissioner 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
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 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 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. 12. <<NOTE: 29 USC 711.>> (a) For the purpose of improving
program management and effectiveness, the Secretary, in consultation
with the Commissioner, 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. <<NOTE: Standards.>> 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.
``(b) In carrying out evaluations under this section, the Secretary
shall obtain the opinions of program and project participants about the
strengths and weaknesses of the programs and projects.
``(c) The Secretary shall take the necessary action to assure that
all studies, evaluations, proposals, and data produced or developed with
Federal funds under this Act shall become the property of the United
States.
``(d) Such information as the Secretary may determine to be
necessary for purposes of the evaluations conducted under this section
shall be made available upon request of the Secretary, by the
departments and agencies of the executive branch.
``(e)(1) To assess the linkages between vocational rehabilitation
services and economic and noneconomic outcomes, the Secretary shall
continue to conduct a longitudinal study of a national sample of
applicants for the services.
``(2) The study shall address factors related to attrition and
completion of the program through which the services are provided and
factors within and outside the program affecting results. Appropriate
comparisons shall be used to contrast the experiences of similar persons
who do not obtain the services.
``(3) The study shall be planned to cover the period beginning on
the application of individuals with disabilities for the services,
through the eligibility determination and provision of services for the
individuals, and a further period of not less than 2 years after the
termination of services.
``(f )(1) The Commissioner shall identify and disseminate
information on exemplary practices concerning vocational rehabilitation.
[[Page 112 STAT.1113]]
``(2) To facilitate compliance with paragraph (1), the Commissioner
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.
``(g) <<NOTE: Appropriation authorization.>> There are authorized
to be appropriated to carry out this section such sums as may be
necessary.
``information clearinghouse
``Sec. 13. <<NOTE: Establishment. 29 USC 712.>> (a) The Secretary
shall establish a central clearinghouse for information and resource
availability for individuals with disabilities which shall provide
information and data regarding--
``(1) the location, provision, and availability of services
and programs for individuals with disabilities, including such
information and data provided by State workforce investment
boards regarding such services and programs authorized under
title I of such Act;
``(2) research and recent medical and scientific
developments bearing on disabilities (and their prevention,
amelioration, causes, and cures); and
``(3) the current numbers of individuals with disabilities
and their needs.
The clearinghouse shall also provide any other relevant information and
data which the Secretary considers appropriate.
``(b) The Commissioner 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.
``(c) The office established to carry out the provisions of this
section shall be known as the `Office of Information and Resources for
Individuals with Disabilities'.
``(d) There are authorized to be appropriated to carry out this
section such sums as may be necessary.
``transfer of funds
``Sec. 14. <<NOTE: 29 USC 713.>> (a) Except as provided in
subsection (b) of this section, no funds appropriated under this Act for
any program or activity may be used for any purpose other than that for
which the funds were specifically authorized.
``(b) No more than 1 percent of funds appropriated for discretionary
grants, contracts, or cooperative agreements authorized by this Act may
be used for the purpose of providing non-Federal panels of experts to
review applications for such grants, contracts, or cooperative
agreements.
[[Page 112 STAT.1114]]
``state administration
``Sec. 15. <<NOTE: 29 USC 714.>> The application of any State rule
or policy relating to the administration or operation of programs funded
by this Act (including any rule or policy based on State interpretation
of any Federal law, regulation, or guideline) shall be identified as a
State imposed requirement.
``review of applications
``Sec. 16. <<NOTE: 29 USC 715.>> Applications for grants in excess
of $100,000 in the aggregate authorized to be funded under this Act,
other than grants primarily for the purpose of conducting dissemination
or conferences, shall be reviewed by panels of experts which shall
include a majority of non-Federal members. Non-Federal members may be
provided travel, per diem, and consultant fees not to 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.
``carryover
``Sec. 17. <<NOTE: 29 USC 716.>> (a) In General.--Except as
provided in subsection (b), and notwithstanding any other provision of
law--
``(1) any funds appropriated for a fiscal year to carry out
any grant program under part B of title I, section 509 (except
as provided in section 509(b)), part B of title VI, part B or C
of chapter 1 of title VII, or chapter 2 of title VII (except as
provided in section 752(b)), including any funds reallotted
under any such grant program, that are not obligated and
expended by recipients prior to the beginning of the succeeding
fiscal year; or
``(2) any amounts of program income, including reimbursement
payments under the Social Security Act (42 U.S.C. 301 et seq.),
received by recipients under any grant program specified in
paragraph (1) that are not obligated and expended by recipients
prior to the beginning of the fiscal year succeeding the fiscal
year in which such amounts were received,
shall remain available for obligation and expenditure by such recipients
during such succeeding fiscal year.
``(b) Non-Federal Share.--Such funds shall remain available for
obligation and expenditure by a recipient as provided in subsection (a)
only to the extent that the recipient complied with any Federal share
requirementsapplicable to the program for the fiscal year for which the
funds were appropriated.
``client assistance information
``Sec. 18. <<NOTE: 29 USC 717.>> All programs, including community
rehabilitation programs, and projects, that provide services to
individuals with disabilities under this Act shall advise such
individuals who are applicants for or recipients of the services, or the
applicants' representatives or individuals' representatives, of the
availability and purposes of the client assistance program under section
112, including information on means of seeking assistance under such
program.
[[Page 112 STAT.1115]]
``traditionally underserved populations
``Sec. 19. <<NOTE: 29 USC 718.>> (a) Findings.--With respect to the
programs
authorized in titles II through VII, the Congress finds as follows:
``(1) Racial profile.--The racial profile of America is
rapidly changing. While the rate of increase for white Americans
is 3.2 percent, the rate of increase for racial and ethnic
minorities is much higher: 38.6 percent for Latinos, 14.6
percent for African-Americans, and 40.1 percent for Asian-
Americans and other ethnic groups. By the year 2000, the Nation
will have 260,000,000 people, one of every three of whom will be
either African-American, Latino, or Asian-American.
``(2) Rate of disability.--Ethnic and racial minorities tend
to have disabling conditions at a disproportionately high rate.
The rate of work-related disability for American Indians is
about one and one-half times that of the general population.
African-Americans are also one and one-half times more likely to
be disabled than whites and twice as likely to be significantly
disabled.
``(3) Inequitable treatment.--Patterns of inequitable
treatment of minorities have been documented in all major
junctures of the vocational rehabilitation process. As compared
to white Americans, a larger percentage of African-American
applicants to the vocational rehabilitation system are denied
acceptance. Of applicants accepted for service, a larger
percentage of African-American cases are closed without being
rehabilitated. Minorities are provided less training than their
white counterparts. Consistently, less money is spent on
minorities than on their white counterparts.
``(4) Recruitment.--Recruitment efforts within vocational
rehabilitation at the level of preservice training, continuing
education, and in-service training must focus on bringing larger
numbers of minorities into the profession in order to provide
appropriate practitioner knowledge, role models, and sufficient
manpower to address the clearly changing demography of
vocational rehabilitation.
``(b) Outreach to Minorities.--
``(1) In general.--For each fiscal year, the Commissioner
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
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 and the Director shall include one or more of the
following:
``(A) Making awards to minority entities and Indian
tribes to carry out activities under the programs
authorized under titles II, III, VI, and VII.
``(B) Making awards to minority entities and Indian
tribes to conduct research, training, technical
assistance, or a related activity, to improve services
provided under this Act, especially services provided to
individuals from minority backgrounds.
[[Page 112 STAT.1116]]
``(C) Making awards to entities described in
paragraph (3) to provide outreach and technical
assistance to minority entities and Indian tribes to
promote their participation in activities funded under
this Act, including assistance to enhance their capacity
to carry out such activities.
``(3) Eligibility.--To be eligible to receive an award under
paragraph (2)(C), an entity shall be a State or a public or
private nonprofit agency or organization, such as an institution
of higher education or an Indian tribe.
``(4) Report.--In each fiscal year, the Commissioner and the
Director shall prepare and submit to Congress a report that
describes the activities funded under this subsection for the
preceding fiscal year.
``(5) Definitions.--In this subsection:
``(A) Historically black college or university.--The
term `historically Black college or university' means a
part B institution, as defined in section 322(2) of the
Higher Education Act of 1965 (20 U.S.C. 1061(2)).
``(B) Minority entity.--The term `minority entity'
means an entity that is a historically Black college or
university, a Hispanic-serving institution of higher
education, an American Indian tribal college or
university, or another institution of higher education
whose minority student enrollment is at least 50
percent.
``(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 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.''.
SEC. 404. VOCATIONAL REHABILITATION SERVICES.
Title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) is
amended to read as follows:
``TITLE I--VOCATIONAL REHABILITATION SERVICES
``PART A--GENERAL PROVISIONS
``SEC. 100. <<NOTE: 29 USC 720.>> DECLARATION OF POLICY; AUTHORIZATION
OF APPROPRIATIONS.
``(a) Findings; Purpose; Policy.--
``(1) Findings.--Congress finds that--
``(A) work--
``(i) is a valued activity, both for
individuals and society; and
``(ii) fulfills the need of an individual to
be productive, promotes independence, enhances
self-esteem, and allows for participation in the
mainstream of life in the United States;
``(B) as a group, individuals with disabilities
experience staggering levels of unemployment and
poverty;
``(C) individuals with disabilities, including
individuals with the most significant disabilities, have
demonstrated
[[Page 112 STAT.1117]]
their ability to achieve gainful employment in
integrated settings if appropriate services and supports
are provided;
``(D) reasons for significant numbers of individuals
with disabilities not working, or working at levels not
commensurate with their abilities and capabilities,
include--
``(i) discrimination;
``(ii) lack of accessible and available
transportation;
``(iii) fear of losing health coverage under
the medicare and medicaid programs carried out
under titles XVIII and XIX of the Social Security
Act (42 U.S.C. 1395 et seq. and 1396 et seq.) or
fear of losing private health insurance; and
``(iv) lack of education, training, and
supports to meet job qualification standards
necessary to secure, retain, regain, or advance in
employment;
``(E) enforcement of title V and of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.)
holds the promise of ending discrimination for
individuals with disabilities;
``(F) the provision of workforce investment
activities and vocational rehabilitation services can
enable individuals with disabilities, including
individuals with the most significant disabilities, to
pursue meaningful careers by securing gainful employment
commensurate with their abilities and capabilities; and
``(G) linkages between the vocational rehabilitation
programs established under this title and other
components of the statewide workforce investment systems
are critical to ensure effective and meaningful
participation by individuals with disabilities in
workforce investment activities.
``(2) Purpose.--The purpose of this title is to assist
States in operating statewide comprehensive, coordinated,
effective, efficient, and accountable programs of vocational
rehabilitation, each of which is--
``(A) an integral part of a statewide workforce
investment system; and
``(B) designed to assess, plan, develop, and provide
vocational rehabilitation services for individuals with
disabilities, consistent with their strengths,
resources, priorities, concerns, abilities,
capabilities, interests, and informed choice, so that
such individuals may prepare for and engage in gainful
employment.
``(3) Policy.--It is the policy of the United States that
such a program shall be carried out in a manner consistent with
the following principles:
``(A) Individuals with disabilities, including
individuals with the most significant disabilities, are
generally presumed to be capable of engaging in gainful
employment and the provision of individualized
vocational rehabilitation services can improve their
ability to become gainfully employed.
``(B) Individuals with disabilities must be provided
the opportunities to obtain gainful employment in
integrated settings.
``(C) Individuals who are applicants for such
programs or eligible to participate in such programs
must be active
[[Page 112 STAT.1118]]
and full partners in the vocational rehabilitation
process, making meaningful and informed choices--
``(i) during assessments for determining
eligibility and vocational rehabilitation needs;
and
``(ii) in the selection of employment outcomes
for the individuals, services needed to achieve
the outcomes, entities providing such services,
and the methods used to secure such services.
``(D) Families and other natural supports can play
important roles in the success of a vocational
rehabilitation program, if the individual with a
disability involved requests, desires, or needs such
supports.
``(E) Vocational rehabilitation counselors that are
trained and prepared in accordance with State policies
and procedures as described in section 101(a)(7)(B)
(referred to individually in this title as a `qualified
vocational rehabilitation counselor'), other qualified
rehabilitation personnel, and other qualified personnel
facilitate the accomplishment of the employment outcomes
and objectives of an individual.
``(F) Individuals with disabilities and the
individuals' representatives are full partners in a
vocational rehabilitation program and must be involved
on a regular basis and in a meaningful manner with
respect to policy development and implementation.
``(G) Accountability measures must facilitate the
accomplishment of the goals and objectives of the
program, including providing vocational rehabilitation
services to, among others, individuals with the most
significant disabilities.
``(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, 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.
``(2) Reference.--The reference in paragraph (1) to grants
to States under part B shall not be considered to refer to
grants under section 112.
``(c) Consumer Price Index.--
``(1) <<NOTE: Deadline. Federal Register, publication.>>
Percentage change.--No later than November 15 of each fiscal
year (beginning with fiscal year 1979), the Secretary of Labor
shall publish in the Federal Register the percentage change in
the Consumer Price Index published for October of the preceding
fiscal year and October of the fiscal year in which such
publication is made.
``(2) Application.--
``(A) Increase.--If in any fiscal year the
percentage change published under paragraph (1)
indicates an increase in the Consumer Price Index, then
the amount to be appropriated under subsection (b)(1)
for the subsequent fiscal
[[Page 112 STAT.1119]]
year shall be at least the amount appropriated under
subsection (b)(1) for the fiscal year in which the
publication is made under paragraph (1) increased by
such percentage change.
``(B) No increase or decrease.--If in any fiscal
year the percentage change published under paragraph (1)
does not indicate an increase in the Consumer Price
Index, then the amount to be appropriated under
subsection (b)(1) for the subsequent fiscal year shall
be at least the amount appropriated under subsection
(b)(1) for the fiscal year in which the publication is
made under paragraph (1).
``(3) Definition.--For purposes of this section, the term
`Consumer Price Index' means the Consumer Price Index for All
Urban Consumers, published monthly by the Bureau of Labor
Statistics.
``(d) Extension.--
``(1) In general.--
``(A) Authorization or duration of program.--Unless
the Congress in the regular session which ends prior to
the beginning of the terminal fiscal year--
``(i) of the authorization of appropriations
for the program authorized by the State grant
program under part B of this title; or
``(ii) of the duration of the program
authorized by the State grant program under part B
of this title;
has passed legislation which would have the effect of
extending the authorization or duration (as the case may
be) of such program, such authorization or duration is
automatically extended for 1 additional year for the
program authorized by this title.
``(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,
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) Passage of legislation.--For the purposes of
paragraph (1)(A), Congress shall not be deemed to have
passed legislation unless such legislation becomes law.
``(B) Acts or determinations of commissioner.--In
any case where the Commissioner is required under an
applicable statute to carry out certain acts or make
certain determinations which are necessary for the
continuation of the program authorized by this title, if
such acts or determinations are required during the
terminal year of such program, such acts and
determinations shall be required during any fiscal year
in which the extension described in that part of
paragraph (1) that follows clause (ii) of paragraph
(1)(A) is in effect.
``SEC. 101. <<NOTE: 29 USC 721.>> STATE PLANS.
``(a) Plan Requirements.--
``(1) In general.--
[[Page 112 STAT.1120]]
``(A) Submission.--To be eligible to participate in
programs under this title, a State shall submit to the
Commissioner 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 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 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 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) where, under State law, the State agency
for individuals who are blind or another agency
that provides assistance or services to adults who
are blind is authorized to provide vocational
rehabilitation services to individuals who are
blind, that agency may be designated as the sole
State agency to administer the part of the plan
under which vocational rehabilitation services are
provided for individuals who are blind (or to
supervise the administration of such part by a
local agency) and a separate State agency may be
designated as the sole State agency to administer
or supervise the administration of the rest of the
State plan;
``(ii) the Commissioner, 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
``(iii) in the case of American Samoa, the
appropriate State agency shall be the Governor of
American Samoa.
[[Page 112 STAT.1121]]
``(B) Designated state unit.--The State agency
designated under subparagraph (A) shall be--
``(i) a State agency primarily concerned with
vocational rehabilitation, or vocational and other
rehabilitation, of individuals with disabilities;
or
``(ii) if not such an agency, the State agency
(or each State agency if 2 are so designated)
shall include a vocational rehabilitation bureau,
division, or other organizational unit that--
``(I) is primarily concerned with
vocational rehabilitation, or vocational
and other rehabilitation, of individuals
with disabilities, and is responsible
for the vocational rehabilitation
program of the designated State agency;
``(II) has a full-time director;
``(III) has a staff employed on the
rehabilitation work of the
organizational unit all or substantially
all of whom are employed full time on
such work; and
``(IV) is located at an
organizational level and has an
organizational status within the
designated State agency comparable to
that of other major organizational units
of the designated State agency.
``(C) Responsibility for services for the blind.--If
the State has designated only 1 State agency pursuant to
subparagraph (A), the State may assign responsibility
for the part of the plan under which vocational
rehabilitation services are provided for individuals who
are blind to an organizational unit of the designated
State agency and assign responsibility for the rest of
the plan to another organizational unit of the
designated State agency, with the provisions of
subparagraph (B) applying separately to each of the
designated State units.
``(3) Non-federal share.--The State plan shall provide for
financial participation by the State, or if the State so elects,
by the State and local agencies, to provide the amount of the
non-Federal share of the cost of carrying out part B.
``(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, is likely to assist in
promoting the vocational rehabilitation of substantially
larger numbers of individuals with disabilities or
groups of individuals with disabilities, the
Commissioner may waive compliance with the requirement
that the plan be in effect in all political subdivisions
of the State to the extent and for such period as may be
provided in accordance with regulations prescribed by
the Commissioner, but only if the non-Federal share of
the cost of 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,
[[Page 112 STAT.1122]]
the earmarked funds may be used in such areas if the
State notifies the Commissioner that the State cannot
provide the full non-Federal share without such funds.
``(5) Order of selection for vocational rehabilitation
services.--In the event that vocational rehabilitation services
cannot be provided to all eligible individuals with disabilities
in the State who apply for the services, the State plan shall--
``(A) show the order to be followed in selecting
eligible individuals to be provided vocational
rehabilitation services;
``(B) provide the justification for the order of
selection;
``(C) include an assurance that, in accordance with
criteria established by the State for the order of
selection, individuals with the most significant
disabilities will be selected first for the provision of
vocational rehabilitation services; and
``(D) provide that eligible individuals, who do not
meet the order of selection criteria, shall have access
to services provided through the information and
referral system implemented under paragraph (20).
``(6) Methods for administration.--
``(A) In general.--The State plan shall provide for
such methods of administration as are found by the
Commissioner to be necessary for the proper and
efficient administration of the plan.
``(B) Employment of individuals with disabilities.--
The State plan shall provide that the designated State
agency, and entities carrying out community
rehabilitation programs in the State, who are in receipt
of assistance under this title shall take affirmative
action to employ and advance in employment qualified
individuals with disabilities covered under, and on the
same terms and conditions as set forth in, section 503.
``(C) Facilities.--The State plan shall provide that
facilities used in connection with the delivery of
services assisted under the State plan shall comply with
the Act entitled `An Act to insure that certain
buildings financed with Federal funds are so designed
and constructed as to be accessible to the physically
handicapped', approved on August 12, 1968 (commonly
known as the `Architectural Barriers Act of 1968'), with
section 504, and with the Americans with Disabilities
Act of 1990.
``(7) Comprehensive system of personnel development.--The
State plan shall--
``(A) include a description (consistent with the
purposes of this Act) of a comprehensive system of
personnel development, which shall include--
``(i) a description of the procedures and
activities the designated State agency will
undertake to ensure an adequate supply of
qualified State rehabilitation professionals and
paraprofessionals for the designated State unit,
including the development and maintenance of a
system for determining, on an annual basis--
``(I) the number and type of
personnel that are employed by the
designated State unit in the provision
of vocational rehabilitation services,
[[Page 112 STAT.1123]]
including ratios of qualified vocational
rehabilitation counselors to clients;
and
``(II) the number and type of
personnel needed by the State, and a
projection of the numbers of such
personnel that will be needed in 5
years, based on projections of the
number of individuals to be served, the
number of such personnel who are
expected to retire or leave the
vocational rehabilitation field, and
other relevant factors;
``(ii) where appropriate, a description of the
manner in which activities will be undertaken
under this section to coordinate the system of
personnel development with personnel development
activities under the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.);
``(iii) a description of the development and
maintenance of a system of determining, on an
annual basis, information on the programs of
institutions of higher education within the State
that are preparing rehabilitation professionals,
including--
``(I) the numbers of students
enrolled in such programs; and
``(II) the number of such students
who graduated with certification or
licensure, or with credentials to
qualify for certification or licensure,
as a rehabilitation professional during
the past year;
``(iv) a description of the development,
updating, and implementation of a plan that--
``(I) will address the current and
projected vocational rehabilitation
services personnel training needs for
the designated State unit; and
``(II) provides for the coordination
and facilitation of efforts between the
designated State unit, institutions of
higher education, and professional
associations to recruit, prepare, and
retain qualified personnel, including
personnel from minority backgrounds, and
personnel who are individuals with
disabilities; and
``(v) a description of the procedures and
activities the designated State agency will
undertake to ensure that all personnel employed by
the designated State unit are appropriately and
adequately trained and prepared, including--
``(I) a system for the continuing
education of rehabilitation
professionals and paraprofessionals
within the designated State unit,
particularly with respect to
rehabilitation technology; and
``(II) procedures for acquiring and
disseminating to rehabilitation
professionals and paraprofessionals
within the designated State unit
significant knowledge from research and
other sources, including procedures for
providing training regarding the
amendments to this Act made by the
Rehabilitation Act Amendments of 1998;
``(B) set forth policies and procedures relating to
the establishment and maintenance of standards to ensure
that
[[Page 112 STAT.1124]]
personnel, including rehabilitation professionals and
paraprofessionals, needed within the designated State
unit to carry out this part are appropriately and
adequately prepared and trained, including--
``(i) the establishment and maintenance of
standards that are consistent with any national or
State approved or recognized certification,
licensing, registration, or other comparable
requirements that apply to the area in which such
personnel are providing vocational rehabilitation
services; and
``(ii) to the extent that such standards are
not based on the highest requirements in the State
applicable to a specific profession or discipline,
the steps the State is taking to require the
retraining or hiring of personnel within the
designated State unit that meet appropriate
professional requirements in the State; and
``(C) contain provisions relating to the
establishment and maintenance of minimum standards to
ensure the availability of personnel within the
designated State unit, to the maximum extent feasible,
trained to communicate in the native language or mode of
communication of an applicant or eligible individual.
``(8) Comparable services and benefits.--
``(A) Determination of availability.--
``(i) In general.--The State plan shall
include an assurance that, prior to providing any
vocational rehabilitation service to an eligible
individual, except those services specified in
paragraph (5)(D) and in paragraphs (1) through (4)
and (14) of section 103(a), the designated State
unit will determine whether comparable services
and benefits are available under any other program
(other than a program carried out under this
title) unless such a determination would interrupt
or delay--
``(I) the progress of the individual
toward achieving the employment outcome
identified in the individualized plan
for employment of the individual in
accordance with section 102(b);
``(II) an immediate job placement;
or
``(III) the provision of such
service to any individual at extreme
medical risk.
``(ii) Awards and scholarships.--For purposes
of clause (i), comparable benefits do not include
awards and scholarships based on merit.
``(B) Interagency agreement.--The State plan shall
include an assurance that the Governor of the State, in
consultation with the entity in the State responsible
for the vocational rehabilitation program and other
appropriate agencies, will ensure that an interagency
agreement or other mechanism for interagency
coordination takes effect between any appropriate public
entity, including the State entity responsible for
administering the State medicaid program, a public
institution of higher education, and a component of the
statewide workforce investment system, and the
designated State unit, in order to ensure the provision
of vocational rehabilitation services described in
[[Page 112 STAT.1125]]
subparagraph (A) (other than those services specified in
paragraph (5)(D), and in paragraphs (1) through (4) and
(14) of section 103(a)), that are included in the
individualized plan for employment of an eligible
individual, including the provision of such vocational
rehabilitation services during the pendency of any
dispute described in clause (iii). Such agreement or
mechanism shall include the following:
``(i) Agency financial responsibility.--An
identification of, or a description of a method
for defining, the financial responsibility of such
public entity for providing such services, and a
provision stating the financial responsibility of
such public entity for providing such services.
``(ii) Conditions, terms, and procedures of
reimbursement.--Information specifying the
conditions, terms, and procedures under which a
designated State unit shall be reimbursed by other
public entities for providing such services, based
on the provisions of such agreement or mechanism.
``(iii) Interagency disputes.--Information
specifying procedures for resolving interagency
disputes under the agreement or other mechanism
(including procedures under which the designated
State unit may initiate proceedings to secure
reimbursement from other public entities or
otherwise implement the provisions of the
agreement or mechanism).
``(iv) Coordination of services procedures.--
Information specifying policies and procedures for
public entities to determine and identify the
interagency coordination responsibilities of each
public entity to promote the coordination and
timely delivery of vocational rehabilitation
services (except those services specified in
paragraph (5)(D) and in paragraphs (1) through (4)
and (14) of section 103(a)).
``(C) Responsibilities of other public entities.--
``(i) Responsibilities under other law.--
Notwithstanding subparagraph (B), if any public
entity other than a designated State unit is
obligated under Federal or State law, or assigned
responsibility under State policy or under this
paragraph, to provide or pay for any services that
are also considered to be vocational
rehabilitation services (other than those
specified in paragraph (5)(D) and in paragraphs
(1) through (4) and (14) of section 103(a)), such
public entity shall fulfill that obligation or
responsibility, either directly or by contract or
other arrangement.
``(ii) Reimbursement.--If a public entity
other than the designated State unit fails to
provide or pay for the services described in
clause (i) for an eligible individual, the
designated State unit shall provide or pay for
such services to the individual. Such designated
State unit may claim reimbursement for the
services from the public entity that failed to
provide or pay for such services. Such public
entity shall reimburse the designated State unit
pursuant to the terms of the interagency agreement
or other mechanism described in this paragraph
according to the procedures
[[Page 112 STAT.1126]]
established in such agreement or mechanism
pursuant to subparagraph (B)(ii).
``(D) Methods.--The Governor of a State may meet the
requirements of subparagraph (B) through--
``(i) a State statute or regulation;
``(ii) a signed agreement between the
respective officials of the public entities that
clearly identifies the responsibilities of each
public entity relating to the provision of
services; or
``(iii) another appropriate method, as
determined by the designated State unit.
``(9) Individualized plan for employment.--
``(A) Development and implementation.--The State
plan shall include an assurance that an individualized
plan for employment meeting the requirements of section
102(b) will be developed and implemented in a timely
manner for an individual subsequent to the determination
of the eligibility of the individual for services under
this title, except that in a State operating under an
order of selection described in paragraph (5), the plan
will be developed and implemented only for individuals
meeting the order of selection criteria of the State.
``(B) Provision of services.--The State plan shall
include an assurance that such services will be provided
in accordance with the provisions of the individualized
plan for employment.
``(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 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 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 shall require additional data with regard
to applicants and eligible individuals related to--
``(i) the number of applicants and the number
of individuals determined to be eligible or
ineligible for the program carried out under this
title, including--
``(I) the number of individuals
determined to be ineligible because they
did not require vocational
rehabilitation services, as provided in
section 102(a); and
``(II) the number of individuals
determined, on the basis of clear and
convincing evidence, to be too severely
disabled to benefit in terms of an
employment outcome from vocational
rehabilitation services;
[[Page 112 STAT.1127]]
``(ii) the number of individuals who received
vocational rehabilitation services through the
program, including--
``(I) the number who received
services under paragraph (5)(D), but not
assistance under an individualized plan
for employment;
``(II) of those recipients who are
individuals with significant
disabilities, the number who received
assistance under an individualized plan
for employment consistent with section
102(b); and
``(III) of those recipients who are
not individuals with significant
disabilities, the number who received
assistance under an individualized plan
for employment consistent with section
102(b);
``(iii) of those applicants and eligible
recipients who are individuals with significant
disabilities--
``(I) the number who ended their
participation in the program carried out
under this title and the number who
achieved employment outcomes after
receiving vocational rehabilitation
services; and
``(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, during such
employment; and
``(bb) the number who
received employment benefits
from an employer during such
employment; and
``(iv) of those applicants and eligible
recipients who are not individuals with
significant disabilities--
``(I) the number who ended their
participation in the program carried out
under this title and the number who
achieved employment outcomes after
receiving vocational rehabilitation
services; and
``(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
[[Page 112 STAT.1128]]
by the Commissioner, during such
employment; and
``(bb) the number who
received employment benefits
from an employer during such
employment.
``(D) Costs and results.--The Commissioner shall
also require that the designated State agency include in
the reports information on--
``(i) the costs under this title of conducting
administration, providing assessment services,
counseling and guidance, and other direct services
provided by designated State agency staff,
providing services purchased under individualized
plans for employment, supporting small business
enterprises, establishing, developing, and
improving community rehabilitation programs,
providing other services to groups, and
facilitating use of other programs under this Act
and title I of the Workforce Investment Act of
1998 by eligible individuals; and
``(ii) the results of annual evaluation by the
State of program effectiveness under paragraph
(15)(E).
``(E) Additional information.--The Commissioner
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) information on--
``(I) age, gender, race, ethnicity,
education, category of impairment,
severity of disability, and whether the
individuals are students with
disabilities;
``(II) dates of application,
determination of eligibility or
ineligibility, initiation of the
individualized plan for employment, and
termination of participation in the
program;
``(III) earnings at the time of
application for the program and
termination of participation in the
program;
``(IV) work status and occupation;
``(V) types of services, including
assistive technology services and
assistive technology devices, provided
under the program;
``(VI) types of public or private
programs or agencies that furnished
services under the program; and
``(VII) the reasons for individuals
terminating participation in the program
without achieving an employment outcome;
and
``(ii) information necessary to determine the
success of the State in meeting--
``(I) the State performance measures
established under section 136(b) of the
Workforce Investment Act of 1998, to the
extent the measures are applicable to
individuals with disabilities; and
``(II) the standards and indicators
established pursuant to section 106.
[[Page 112 STAT.1129]]
``(F) Completeness and confidentiality.--The State
plan shall include an assurance that the information
submitted in the reports will include a complete count,
except as provided in subparagraph (E), of the
applicants and eligible individuals, in a manner
permitting the greatest possible cross-classification of
data and that the identity of each individual for which
information is supplied under this paragraph will be
kept confidential.
``(11) Cooperation, collaboration, and coordination.--
``(A) Cooperative agreements with other components
of statewide workforce investment systems.--The State
plan shall provide that the designated State unit or
designated State agency shall enter into a cooperative
agreement with other entities that are components of the
statewide workforce investment system of the State,
regarding the system, which agreement may provide for--
``(i) provision of intercomponent staff
training and technical assistance with regard to--
``(I) the availability and benefits
of, and information on eligibility
standards for, vocational rehabilitation
services; and
``(II) the promotion of equal,
effective, and meaningful participation
by individuals with disabilities in
workforce investment activities in the
State through the promotion of program
accessibility, the use of
nondiscriminatory policies and
procedures, and the provision of
reasonable accommodations, auxiliary
aids and services, and rehabilitation
technology, for individuals with
disabilities;
``(ii) use of information and financial
management systems that link all components of the
statewide workforce investment system, that link
the components to other electronic networks,
including nonvisual electronic networks, and that
relate to such subjects as employment statistics,
and information on job vacancies, career planning,
and workforce investment activities;
``(iii) use of customer service features such
as common intake and referral procedures, customer
databases, resource information, and human
services hotlines;
``(iv) establishment of cooperative efforts
with employers to--
``(I) facilitate job placement; and
``(II) carry out any other
activities that the designated State
unit and the employers determine to be
appropriate;
``(v) identification of staff roles,
responsibilities, and available resources, and
specification of the financial responsibility of
each component of the statewide workforce
investment system with regard to paying for
necessary services (consistent with State law and
Federal requirements); and
``(vi) specification of procedures for
resolving disputes among such components.
[[Page 112 STAT.1130]]
``(B) Replication of cooperative agreements.--The
State plan shall provide for the replication of such
cooperative agreements at the local level between
individual offices of the designated State unit and
local entities carrying out activities through the
statewide workforce investment system.
``(C) Interagency cooperation with other agencies.--
The State plan shall include descriptions of interagency
cooperation with, and utilization of the services and
facilities of, Federal, State, and local agencies and
programs, including programs carried out by the Under
Secretary for Rural Development of the Department of
Agriculture and State use contracting programs, to the
extent that such agencies and programs are not carrying
out activities through the statewide workforce
investment system.
``(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;
``(ii) transition planning by personnel of the
designated State agency and educational agency
personnel for students with disabilities that
facilitates the development and completion of
their individualized education programs under
section 614(d) of the Individuals with
Disabilities Education Act (as added by section
101 of Public Law 105-17);
``(iii) the roles and responsibilities,
including financial responsibilities, of each
agency, including provisions for determining State
lead agencies and qualified personnel responsible
for transition services; and
``(iv) procedures for outreach to and
identification of students with disabilities who
need the transition services.
``(E) Coordination with statewide independent living
councils and independent living centers.--The State plan
shall include an assurance that the designated State
unit, the Statewide Independent Living Council
established under section 705, and the independent
living centers described in part C of title VII within
the State have developed working relationships and
coordinate their activities.
``(F) Cooperative agreement with recipients of
grants for services to american indians.--In applicable
cases, the State plan shall include an assurance that
the State has entered into a formal cooperative
agreement
[[Page 112 STAT.1131]]
with each grant recipient in the State that receives
funds under part C. The agreement shall describe
strategies for collaboration and coordination in
providing vocational rehabilitation services to American
Indians who are individuals with disabilities,
including--
``(i) strategies for interagency referral and
information sharing that will assist in
eligibility determinations and the development of
individualized plans for employment;
``(ii) procedures for ensuring that American
Indians who are individuals with disabilities and
are living near a reservation or tribal service
area are provided vocational rehabilitation
services; and
``(iii) provisions for sharing resources in
cooperative studies and assessments, joint
training activities, and other collaborative
activities designed to improve the provision of
services to American Indians who are individuals
with disabilities.
``(12) Residency.--The State plan shall include an assurance
that the State will not impose a residence requirement that
excludes from services provided under the plan any individual
who is present in the State.
``(13) Services to american indians.--The State plan shall
include an assurance that, except as otherwise provided in part
C, the designated State agency will provide vocational
rehabilitation services to American Indians who are individuals
with disabilities residing in the State to the same extent as
the designated State agency provides such services to other
significant populations of individuals with disabilities
residing in the State.
``(14) Annual review of individuals in extended employment
or other employment under special certificate provisions of the
fair labor standards act of 1938.--The State plan shall provide
for--
``(A) an annual review and reevaluation of the
status of each individual with a disability served under
this title who has achieved an employment outcome either
in an extended employment setting in a community
rehabilitation program or any other employment under
section 14(c) of the Fair Labor Standards Act (29 U.S.C.
214(c)) for 2 years after the achievement of the outcome
(and thereafter if requested by the individual or, if
appropriate, the individual's representative), to
determine the interests, priorities, and needs of the
individual with respect to competitive employment or
training for competitive employment;
``(B) input into the review and reevaluation, and a
signed acknowledgment that such review and reevaluation
have been conducted, by the individual with a
disability, or, if appropriate, the individual's
representative; and
``(C) maximum efforts, including the identification
and provision of vocational rehabilitation services,
reasonable accommodations, and other necessary support
services, to assist the individuals described in
subparagraph (A) in engaging in competitive employment.
``(15) Annual state goals and reports of progress.--
``(A) Assessments and estimates.--The State plan
shall--
[[Page 112 STAT.1132]]
``(i) include the results of a comprehensive,
statewide assessment, jointly conducted by the
designated State unit and the State Rehabilitation
Council (if the State has such a Council) every 3
years, describing the rehabilitation needs of
individuals with disabilities residing within the
State, particularly the vocational rehabilitation
services needs of--
``(I) individuals with the most
significant disabilities, including
their need for supported employment
services;
``(II) individuals with disabilities
who are minorities and individuals with
disabilities who have been unserved or
underserved by the vocational
rehabilitation program carried out under
this title; and
``(III) individuals with
disabilities served through other
components of the statewide workforce
investment system (other than the
vocational rehabilitation program), as
identified by such individuals and
personnel assisting such individuals
through the components;
``(ii) include an assessment of the need to
establish, develop, or improve community
rehabilitation programs within the State; and
``(iii) <<NOTE: Reports.>> provide that the
State shall submit to the Commissioner a report
containing information regarding updates to the
assessments, for any year in which the State
updates the assessments.
``(B) <<NOTE: Reports.>> Annual estimates.--The
State plan shall include, and shall provide that the
State shall annually submit a report to the Commissioner
that includes, State estimates of--
``(i) the number of individuals in the State
who are eligible for services under this title;
``(ii) the number of such individuals who will
receive services provided with funds provided
under part B and under part B of title VI,
including, if the designated State agency uses an
order of selection in accordance with paragraph
(5), estimates of the number of individuals to be
served under each priority category within the
order; and
``(iii) the costs of the services described in
clause (i), including, if the designated State
agency uses an order of selection in accordance
with paragraph (5), the service costs for each
priority category within the order.
``(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. <<NOTE: Reports.>> The State plan shall
provide that the State shall submit
[[Page 112 STAT.1133]]
to the Commissioner a report containing
information regarding revisions in the goals and
priorities, for any year in which the State
revises the goals and priorities.
``(ii) Basis.--The State goals and priorities
shall be based on an analysis of--
``(I) the comprehensive assessment
described in subparagraph (A), including
any updates to the assessment;
``(II) the performance of the State
on the standards and indicators
established under section 106; and
``(III) other available information
on the operation and the effectiveness
of the vocational rehabilitation program
carried out in the State, including any
reports received from the State
Rehabilitation Council, under section
105(c) and the findings and
recommendations from monitoring
activities conducted under section 107.
``(iii) Service and outcome goals for
categories in order of selection.--If the
designated State agency uses an order of selection
in accordance with paragraph (5), the State shall
also identify in the State plan service and
outcome goals and the time within which these
goals may be achieved for individuals in each
priority category within the order.
``(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;
``(ii) outreach procedures to identify and
serve individuals with disabilities who are
minorities and individuals with disabilities who
have been unserved or underserved by the
vocational rehabilitation program;
``(iii) where necessary, the plan of the State
for establishing, developing, or improving
community rehabilitation programs;
``(iv) strategies to improve the performance
of the State with respect to the evaluation
standards and performance indicators established
pursuant to section 106; and
``(v) strategies for assisting entities
carrying out other components of the statewide
workforce investment system (other than the
vocational rehabilitation program) in assisting
individuals with disabilities.
``(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,
[[Page 112 STAT.1134]]
and a joint report by the designated State unit
and the State Rehabilitation Council, if the State
has such a Council, to the Commissioner on the
progress made in improving the effectiveness from
the previous year, which evaluation and report
shall include--
``(I) an evaluation of the extent to
which the goals identified in
subparagraph (C) were achieved;
``(II) a description of strategies
that contributed to achieving the goals;
``(III) to the extent to which the
goals were not achieved, a description
of the factors that impeded that
achievement; and
``(IV) an assessment of the
performance of the State on the
standards and indicators established
pursuant to section 106; and
``(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 an annual report that contains the
information described in clause (i).
``(16) Public comment.--The State plan shall--
``(A) provide that the designated State agency,
prior to the adoption of any policies or procedures
governing the provision of vocational rehabilitation
services under the State plan (including making any
amendment to such policies and procedures), shall
conduct public meetings throughout the State, after
providing adequate notice of the meetings, to provide
the public, including individuals with disabilities, an
opportunity to comment on the policies or procedures,
and actively consult with the Director of the client
assistance program carried out under section 112, and,
as appropriate, Indian tribes, tribal organizations, and
Native Hawaiian organizations on the policies or
procedures; and
``(B) provide that the designated State agency (or
each designated State agency if two agencies are
designated) and any sole agency administering the plan
in a political subdivision of the State, shall take into
account, in connection with matters of general policy
arising in the administration of the plan, the views
of--
``(i) individuals and groups of individuals
who are recipients of vocational rehabilitation
services, or in appropriate cases, the
individuals' representatives;
``(ii) personnel working in programs that
provide vocational rehabilitation services to
individuals with disabilities;
``(iii) providers of vocational rehabilitation
services to individuals with disabilities;
``(iv) the director of the client assistance
program; and
``(v) the State Rehabilitation Council, if the
State has such a Council.
``(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--
[[Page 112 STAT.1135]]
``(A) the Federal share of the cost of construction
for the facilities for a fiscal year will not exceed an
amount equal to 10 percent of the State's allotment
under section 110 for such year;
``(B) the provisions of section 306 (as in effect on
the day before the date of enactment of the
Rehabilitation Act Amendments of 1998) shall be
applicable to such construction and such provisions
shall be deemed to apply to such construction; and
``(C) <<NOTE: Regulations.>> there shall be
compliance with regulations the Commissioner shall
prescribe designed to assure that no State will reduce
its efforts in providing other vocational rehabilitation
services (other than for the establishment of facilities
for community rehabilitation programs) because the plan
includes such provisions for construction.
``(18) Innovation and expansion activities.--The State plan
shall--
``(A) include an assurance that the State will
reserve and use a portion of the funds allotted to the
State under section 110--
``(i) for the development and implementation
of innovative approaches to expand and improve the
provision of vocational rehabilitation services to
individuals with disabilities under this title,
particularly individuals with the most significant
disabilities, consistent with the findings of the
statewide assessment and goals and priorities of
the State as described in paragraph (15); and
``(ii) to support the funding of--
``(I) the State Rehabilitation
Council, if the State has such a
Council, consistent with the plan
prepared under section 105(d)(1); and
``(II) the Statewide Independent
Living Council, consistent with the plan
prepared under section 705(e)(1);
``(B) include a description of how the reserved
funds will be utilized; and
``(C) <<NOTE: Reports.>> provide that the State
shall submit to the Commissioner an annual report
containing a description of how the reserved funds will
be utilized.
``(19) Choice.--The State plan shall include an assurance
that applicants and eligible individuals or, as appropriate, the
applicants' representatives or individuals' representatives,
will be provided information and support services to assist the
applicants and individuals in exercising informed choice
throughout the rehabilitation process, consistent with the
provisions of section 102(d).
``(20) Information and referral services.--
``(A) In general.--The State plan shall include an
assurance that the designated State agency will
implement an information and referral system adequate to
ensure that individuals with disabilities will be
provided accurate vocational rehabilitation information
and guidance, using appropriate modes of communication,
to assist such individuals in preparing for, securing,
retaining, or regaining employment, and will be
appropriately referred to Federal
[[Page 112 STAT.1136]]
and State programs (other than the vocational
rehabilitation program carried out under this title),
including other components of the statewide workforce
investment system in the State.
``(B) Referrals.--An appropriate referral made
through the system shall--
``(i) be to the Federal or State programs,
including programs carried out by other components
of the statewide workforce investment system in
the State, best suited to address the specific
employment needs of an individual with a
disability; and
``(ii) include, for each of these programs,
provision to the individual of--
``(I) a notice of the referral by
the designated State agency to the
agency carrying out the program;
``(II) information identifying a
specific point of contact within the
agency carrying out the program; and
``(III) information and advice
regarding the most suitable services to
assist the individual to prepare for,
secure, retain, or regain employment.
``(21) State independent consumer-controlled commission;
state rehabilitation council.--
``(A) Commission or council.--The State plan shall
provide that either--
``(i) the designated State agency is an
independent commission that--
``(I) is responsible under State law
for operating, or overseeing the
operation of, the vocational
rehabilitation program in the State;
``(II) is consumer-controlled by
persons who--
``(aa) are individuals with
physical or mental impairments
that substantially limit major
life activities; and
``(bb) represent individuals
with a broad range of
disabilities, unless the
designated State unit under the
direction of the Commission is
the State agency for individuals
who are blind;
``(III) includes family members,
advocates, or other representatives, of
individuals with mental impairments; and
``(IV) undertakes the functions set
forth in section 105(c)(4); or
``(ii) the State has established a State
Rehabilitation Council that meets the criteria set
forth in section 105 and the designated State
unit--
``(I) in accordance with paragraph
(15), jointly develops, agrees to, and
reviews annually State goals and
priorities, and jointly submits annual
reports of progress with the Council;
``(II) regularly consults with the
Council regarding the development,
implementation, and revision of State
policies and procedures of general
applicability pertaining to the
provision of vocational rehabilitation
services;
[[Page 112 STAT.1137]]
``(III) includes in the State plan
and in any revision to the State plan, a
summary of input provided by the
Council, including recommendations from
the annual report of the Council
described in section 105(c)(5), the
review and analysis of consumer
satisfaction described in section
105(c)(4), and other reports prepared by
the Council, and the response of the
designated State unit to such input and
recommendations, including explanations
for rejecting any input or
recommendation; and
``(IV) <<NOTE: Reports.>> transmits
to the Council--
``(aa) all plans, reports,
and other information required
under this title to be submitted
to the Secretary;
``(bb) all policies, and
information on all practices and
procedures, of general
applicability provided to or
used by rehabilitation personnel
in carrying out this title; and
``(cc) copies of due process
hearing decisions issued under
this title, which shall be
transmitted in such a manner as
to ensure that the identity of
the participants in the hearings
is kept confidential.
``(B) More than one designated state agency.--In the
case of a State that, under section 101(a)(2),
designates a State agency to administer the part of the
State plan under which vocational rehabilitation
services are provided for individuals who are blind (or
to supervise the administration of such part by a local
agency) and designates a separate State agency to
administer the rest of the State plan, the State shall
either establish a State Rehabilitation Council for each
of the two agencies that does not meet the requirements
in subparagraph (A)(i), or establish one State
Rehabilitation Council for both agencies if neither
agency meets the requirements of subparagraph (A)(i).
``(22) Supported employment state plan supplement.--The
State plan shall include an assurance that the State has an
acceptable plan for carrying out part B of title VI, including
the use of funds under that part to supplement funds made
available under part B of this title to pay for the cost of
services leading to supported employment.
``(23) <<NOTE: Reports.>> Annual updates.--The plan shall
include an assurance that the State will submit to the
Commissioner 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, 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.
``(24) Certain contracts and cooperative agreements.--
[[Page 112 STAT.1138]]
``(A) Contracts with for-profit organizations.--The
State plan shall provide that the designated State
agency has the authority to enter into contracts with
for-profit organizations for the purpose of providing,
as vocational rehabilitation services, on-the-job
training and related programs for individuals with
disabilities under part A of title VI, upon a
determination by such agency that such for-profit
organizations are better qualified to provide such
rehabilitation services than nonprofit agencies and
organizations.
``(B) Cooperative agreements with private nonprofit
organizations.--The State plan shall describe the manner
in which cooperative agreements with private nonprofit
vocational rehabilitation service providers will be
established.
``(b) Approval; Disapproval of the State Plan.--
``(1) Approval.--The Commissioner shall approve any plan
that the Commissioner finds fulfills the conditions specified in
this section, and shall disapprove any plan that does not
fulfill such conditions.
``(2) <<NOTE: Notification.>> Disapproval.--Prior to
disapproval of the State plan, the Commissioner 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. <<NOTE: 29 USC 722.>> ELIGIBILITY AND INDIVIDUALIZED PLAN
FOR EMPLOYMENT.
``(a) Eligibility.--
``(1) Criterion for eligibility.--An individual is eligible
for assistance under this title if the individual--
``(A) is an individual with a disability under
section 7(20)(A); and
``(B) requires vocational rehabilitation services to
prepare for, secure, retain, or regain employment.
``(2) Presumption of benefit.--
``(A) Demonstration.--For purposes of this section,
an individual shall be presumed to be an individual that
can benefit in terms of an employment outcome from
vocational rehabilitation services under section
7(20)(A), unless the designated State unit involved can
demonstrate by clear and convincing evidence that such
individual is incapable of benefiting in terms of an
employment outcome from vocational rehabilitation
services due to the severity of the disability of the
individual.
``(B) Methods.--In making the demonstration required
under subparagraph (A), the designated State unit shall
explore the individual's abilities, capabilities, and
capacity to perform in work situations, through the use
of trial work experiences, as described in section
7(2)(D), with appropriate supports provided through the
designated State unit, except under limited
circumstances when an individual cannot take advantage
of such experiences. Such experiences shall be of
sufficient variety and over a sufficient period of time
to determine the eligibility of the individual or to
determine the existence of clear and convincing evidence
that the individual is incapable of benefiting in terms
of an employment outcome from vocational rehabilitation
[[Page 112 STAT.1139]]
services due to the severity of the disability of the
individual.
``(3) Presumption of eligibility.--
``(A) In general.--For purposes of this section, an
individual who has a disability or is blind as
determined pursuant to title II or title XVI of the
Social Security Act (42 U.S.C. 401 et seq. and 1381 et
seq.) shall be--
``(i) considered to be an individual with a
significant disability under section 7(21)(A); and
``(ii) presumed to be eligible for vocational
rehabilitation services under this title (provided
that the individual intends to achieve an
employment outcome consistent with the unique
strengths, resources, priorities, concerns,
abilities, capabilities, interests, and informed
choice of the individual) unless the designated
State unit involved can demonstrate by clear and
convincing evidence that such individual is
incapable of benefiting in terms of an employment
outcome from vocational rehabilitation services
due to the severity of the disability of the
individual in accordance with paragraph (2).
``(B) Construction.--Nothing in this paragraph shall
be construed to create an entitlement to any vocational
rehabilitation service.
``(4) Use of existing information.--
``(A) In general.--To the maximum extent appropriate
and consistent with the requirements of this part, for
purposes of determining the eligibility of an individual
for vocational rehabilitation services under this title
and developing the individualized plan for employment
described in subsection (b) for the individual, the
designated State unit shall use information that is
existing and current (as of the date of the
determination of eligibility or of the development of
the individualized plan for employment), including
information available from other programs and providers,
particularly information used by education officials and
the Social Security Administration, information provided
by the individual and the family of the individual, and
information obtained under the assessment for
determining eligibility and vocational rehabilitation
needs.
``(B) Determinations by officials of other
agencies.--Determinations made by officials of other
agencies, particularly education officials described in
section 101(a)(11)(D), regarding whether an individual
satisfies one or more factors relating to whether an
individual is an individual with a disability under
section 7(20)(A) or an individual with a significant
disability under section 7(21)(A) shall be used, to the
extent appropriate and consistent with the requirements
of this part, in assisting the designated State unit in
making such determinations.
``(C) Basis.--The determination of eligibility for
vocational rehabilitation services shall be based on--
``(i) the review of existing data described in
section 7(2)(A)(i); and
[[Page 112 STAT.1140]]
``(ii) to the extent that such data is
unavailable or insufficient for determining
eligibility, the provision of assessment
activities described in section 7(2)(A)(ii).
``(5) Determination of ineligibility.--If an individual who
applies for services under this title is determined, based on
the review of existing data and, to the extent necessary, the
assessment activities described in section 7(2)(A)(ii), not to
be eligible for the services, or if an eligible individual
receiving services under an individualized plan for employment
is determined to be no longer eligible for the services--
``(A) the ineligibility determination involved shall
be made only after providing an opportunity for full
consultation with the individual or, as appropriate, the
individual's representative;
``(B) the individual or, as appropriate, the
individual's representative, shall be informed in
writing (supplemented as necessary by other appropriate
modes of communication consistent with the informed
choice of the individual) of the ineligibility
determination, including--
``(i) the reasons for the determination; and
``(ii) a description of the means by which the
individual may express, and seek a remedy for, any
dissatisfaction with the determination, including
the procedures for review by an impartial hearing
officer under subsection (c);
``(C) the individual shall be provided with a
description of services available from the client
assistance program under section 112 and information on
how to contact that program; and
``(D) any ineligibility determination that is based
on a finding that the individual is incapable of
benefiting in terms of an employment outcome shall be
reviewed--
``(i) within 12 months; and
``(ii) thereafter, if such a review is
requested by the individual or, if appropriate, by
the individual's representative.
``(6) Timeframe for making an eligibility determination.--
The designated State unit shall determine whether an individual
is eligible for vocational rehabilitation services under this
title within a reasonable period of time, not to exceed 60 days,
after the individual has submitted an application for the
services unless--
``(A) exceptional and unforeseen circumstances
beyond the control of the designated State unit preclude
making an eligibility determination within 60 days and
the designated State unit and the individual agree to a
specific extension of time; or
``(B) the designated State unit is exploring an
individual's abilities, capabilities, and capacity to
perform in work situations under paragraph (2)(B).
``(b) Development of an Individualized Plan for Employment.--
``(1) Options for developing an individualized plan for
employment.--If an individual is determined to be eligible for
vocational rehabilitation services as described in subsection
(a), the designated State unit shall complete the assessment for
determining eligibility and vocational rehabilitation needs,
[[Page 112 STAT.1141]]
as appropriate, and shall provide the eligible individual or the
individual's representative, in writing and in an appropriate
mode of communication, with information on the individual's
options for developing an individualized plan for employment,
including--
``(A) information on the availability of assistance,
to the extent determined to be appropriate by the
eligible individual, from a qualified vocational
rehabilitation counselor in developing all or part of
the individualized plan for employment for the
individual, and the availability of technical assistance
in developing all or part of the individualized plan for
employment for the individual;
``(B) a description of the full range of components
that shall be included in an individualized plan for
employment;
``(C) as appropriate--
``(i) an explanation of agency guidelines and
criteria associated with financial commitments
concerning an individualized plan for employment;
``(ii) additional information the eligible
individual requests or the designated State unit
determines to be necessary; and
``(iii) information on the availability of
assistance in completing designated State agency
forms required in developing an individualized
plan for employment; and
``(D)(i) a description of the rights and remedies
available to such an individual including, if
appropriate, recourse to the processes set forth in
subsection (c); and
``(ii) a description of the availability of a client
assistance program established pursuant to section 112
and information about how to contact the client
assistance program.
``(2) Mandatory procedures.--
``(A) Written document.--An individualized plan for
employment shall be a written document prepared on forms
provided by the designated State unit.
``(B) Informed choice.--An individualized plan for
employment shall be developed and implemented in a
manner that affords eligible individuals the opportunity
to exercise informed choice in selecting an employment
outcome, the specific vocational rehabilitation services
to be provided under the plan, the entity that will
provide the vocational rehabilitation services, and the
methods used to procure the services, consistent with
subsection (d).
``(C) Signatories.--An individualized plan for
employment shall be--
``(i) agreed to, and signed by, such eligible
individual or, as appropriate, the individual's
representative; and
``(ii) approved and signed by a qualified
vocational rehabilitation counselor employed by
the designated State unit.
``(D) Copy.--A copy of the individualized plan for
employment for an eligible individual shall be provided
to the individual or, as appropriate, to the
individual's representative, in writing and, if
appropriate, in the native
[[Page 112 STAT.1142]]
language or mode of communication of the individual or,
as appropriate, of the individual's representative.
``(E) Review and amendment.--The individualized plan
for employment shall be--
``(i) reviewed at least annually by--
``(I) a qualified vocational
rehabilitation counselor; and
``(II) the eligible individual or,
as appropriate, the individual's
representative; and
``(ii) amended, as necessary, by the
individual or, as appropriate, the individual's
representative, in collaboration with a
representative of the designated State agency or a
qualified vocational rehabilitation counselor (to
the extent determined to be appropriate by the
individual), if there are substantive changes in
the employment outcome, the vocational
rehabilitation services to be provided, or the
service providers of the services (which
amendments shall not take effect until agreed to
and signed by the eligible individual or, as
appropriate, the individual's representative, and
by a qualified vocational rehabilitation counselor
employed by the designated State unit).
``(3) Mandatory components of an individualized plan for
employment.--Regardless of the approach selected by an eligible
individual to develop an individualized plan for employment, an
individualized plan for employment shall, at a minimum, contain
mandatory components consisting of--
``(A) a description of the specific employment
outcome that is chosen by the eligible individual,
consistent with the unique strengths, resources,
priorities, concerns, abilities, capabilities,
interests, and informed choice of the eligible
individual, and, to the maximum extent appropriate,
results in employment in an integrated setting;
``(B)(i) a description of the specific vocational
rehabilitation services that are--
``(I) needed to achieve the employment
outcome, including, as appropriate, the provision
of assistive technology devices and assistive
technology services, and personal assistance
services, including training in the management of
such services; and
``(II) provided in the most integrated setting
that is appropriate for the service involved and
is consistent with the informed choice of the
eligible individual; and
``(ii) timelines for the achievement of the
employment outcome and for the initiation of the
services;
``(C) a description of the entity chosen by the
eligible individual or, as appropriate, the individual's
representative, that will provide the vocational
rehabilitation services, and the methods used to procure
such services;
``(D) a description of criteria to evaluate progress
toward achievement of the employment outcome;
``(E) the terms and conditions of the individualized
plan for employment, including, as appropriate,
information describing--
``(i) the responsibilities of the designated
State unit;
[[Page 112 STAT.1143]]
``(ii) the responsibilities of the eligible
individual, including--
``(I) the responsibilities the
eligible individual will assume in
relation to the employment outcome of
the individual;
``(II) if applicable, the
participation of the eligible individual
in paying for the costs of the plan; and
``(III) the responsibility of the
eligible individual with regard to
applying for and securing comparable
benefits as described in section
101(a)(8); and
``(iii) the responsibilities of other entities
as the result of arrangements made pursuant to
comparable services or benefits requirements as
described in section 101(a)(8);
``(F) for an eligible individual with the most
significant disabilities for whom an employment outcome
in a supported employment setting has been determined to
be appropriate, information identifying--
``(i) the extended services needed by the
eligible individual; and
``(ii) the source of extended services or, to
the extent that the source of the extended
services cannot be identified at the time of the
development of the individualized plan for
employment, a description of the basis for
concluding that there is a reasonable expectation
that such source will become available; and
``(G) as determined to be necessary, a statement of
projected need for post-employment services.
``(c) Procedures.--
``(1) In general.--Each State shall establish procedures for
mediation of, and procedures for review through an impartial due
process hearing of, determinations made by personnel of the
designated State unit that affect the provision of vocational
rehabilitation services to applicants or eligible individuals.
``(2) Notification.--
``(A) Rights and assistance.--The procedures shall
provide that an applicant or an eligible individual or,
as appropriate, the applicant's representative or
individual's representative shall be notified of--
``(i) the right to obtain review of
determinations described in paragraph (1) in an
impartial due process hearing under paragraph (5);
``(ii) the right to pursue mediation with
respect to the determinations under paragraph (4);
and
``(iii) the availability of assistance from
the client assistance program under section 112.
``(B) Timing.--Such notification shall be provided
in writing--
``(i) at the time an individual applies for
vocational rehabilitation services provided under
this title;
``(ii) at the time the individualized plan for
employment for the individual is developed; and
[[Page 112 STAT.1144]]
``(iii) upon reduction, suspension, or
cessation of vocational rehabilitation services
for the individual.
``(3) Evidence and representation.--The procedures required
under this subsection shall, at a minimum--
``(A) provide an opportunity for an applicant or an
eligible individual, or, as appropriate, the applicant's
representative or individual's representative, to submit
at the mediation session or hearing evidence and
information to support the position of the applicant or
eligible individual; and
``(B) include provisions to allow an applicant or an
eligible individual to be represented in the mediation
session or hearing by a person selected by the applicant
or eligible individual.
``(4) Mediation.--
``(A) Procedures.--Each State shall ensure that
procedures are established and implemented under this
subsection to allow parties described in paragraph (1)
to disputes involving any determination described in
paragraph (1) to resolve such disputes through a
mediation process that, at a minimum, shall be available
whenever a hearing is requested under this subsection.
``(B) Requirements.--Such procedures shall ensure
that the mediation process--
``(i) is voluntary on the part of the parties;
``(ii) is not used to deny or delay the right
of an individual to a hearing under this
subsection, or to deny any other right afforded
under this title; and
``(iii) is conducted by a qualified and
impartial mediator who is trained in effective
mediation techniques.
``(C) List of mediators.--The State shall maintain a
list of individuals who are qualified mediators and
knowledgeable in laws (including regulations) relating
to the provision of vocational rehabilitation services
under this title, from which the mediators described in
subparagraph (B) shall be selected.
``(D) Cost.--The State shall bear the cost of the
mediation process.
``(E) Scheduling.--Each session in the mediation
process shall be scheduled in a timely manner and shall
be held in a location that is convenient to the parties
to the dispute.
``(F) Agreement.--An agreement reached by the
parties to the dispute in the mediation process shall be
set forth in a written mediation agreement.
``(G) Confidentiality.--Discussions that occur
during the mediation process shall be confidential and
may not be used as evidence in any subsequent due
process hearing or civil proceeding. The parties to the
mediation process may be required to sign a
confidentiality pledge prior to the commencement of such
process.
``(H) Construction.--Nothing in this subsection
shall be construed to preclude the parties to such a
dispute from informally resolving the dispute prior to
proceedings under this paragraph or paragraph (5), if
the informal process used is not used to deny or delay
the right of
[[Page 112 STAT.1145]]
the applicant or eligible individual to a hearing under
this subsection or to deny any other right afforded
under this title.
``(5) Hearings.--
``(A) Officer.--A due process hearing described in
paragraph (2) shall be conducted by an impartial hearing
officer who shall issue a decision based on the
provisions of the approved State plan, this Act
(including regulations implementing this Act), and State
regulations and policies that are consistent with the
Federal requirements specified in this title. The
officer shall provide the decision in writing to the
applicant or eligible individual, or, as appropriate,
the applicant's representative or individual's
representative, and to the designated State unit.
``(B) List.--The designated State unit shall
maintain a list of qualified impartial hearing officers
who are knowledgeable in laws (including regulations)
relating to the provision of vocational rehabilitation
services under this title from which the officer
described in subparagraph (A) shall be selected. For the
purposes of maintaining such list, impartial hearing
officers shall be identified jointly by--
``(i) the designated State unit; and
``(ii) members of the Council or commission,
as appropriate, described in section 101(a)(21).
``(C) Selection.--Such an impartial hearing officer
shall be selected to hear a particular case relating to
a determination--
``(i) on a random basis; or
``(ii) by agreement between--
``(I) the Director of the designated
State unit and the individual with a
disability; or
``(II) in appropriate cases, the
Director and the individual's
representative.
``(D) Procedures for seeking review.--A State may
establish procedures to enable a party involved in a
hearing under this paragraph to seek an impartial review
of the decision of the hearing officer under
subparagraph (A) by--
``(i) the chief official of the designated
State agency if the State has established both a
designated State agency and a designated State
unit under section 101(a)(2); or
``(ii) an official from the office of the
Governor.
``(E) Review request.--If the State establishes
impartial review procedures under subparagraph (D),
either party may request the review of the decision of
the hearing officer within 20 days after the decision.
``(F) Reviewing official.--The reviewing official
described in subparagraph (D) shall--
``(i) in conducting the review, provide an
opportunity for the submission of additional
evidence and information relevant to a final
decision concerning the matter under review;
``(ii) not overturn or modify the decision of
the hearing officer, or part of the decision, that
supports the position of the applicant or eligible
individual unless the reviewing official
concludes, based on clear
[[Page 112 STAT.1146]]
and convincing evidence, that the decision of the
impartial hearing officer is clearly erroneous on
the basis of being contrary to the approved State
plan, this Act (including regulations implementing
this Act) or any State regulation or policy that
is consistent with the Federal requirements
specified in this title; and
``(iii) make a final decision with respect to
the matter in a timely manner and provide such
decision in writing to the applicant or eligible
individual, or, as appropriate, the applicant's
representative or individual's representative, and
to the designated State unit, including a full
report of the findings and the grounds for such
decision.
``(G) Finality of hearing decision.--A decision made
after a hearing under subparagraph (A) shall be final,
except that a party may request an impartial review if
the State has established procedures for such review
under subparagraph (D) and a party involved in a hearing
may bring a civil action under subparagraph (J).
``(H) Finality of review.--A decision made under
subparagraph (F) shall be final unless such a party
brings a civil action under subparagraph (J).
``(I) Implementation.--If a party brings a civil
action under subparagraph (J) to challenge a final
decision of a hearing officer under subparagraph (A) or
to challenge a final decision of a State reviewing
official under subparagraph (F), the final decision
involved shall be implemented pending review by the
court.
``(J) Civil action.--
``(i) In general.--Any party aggrieved by a
final decision described in subparagraph (I), may
bring a civil action for review of such decision.
The action may be brought in any State court of
competent jurisdiction or in a district court of
the United States of competent jurisdiction
without regard to the amount in controversy.
``(ii) <<NOTE: Courts.>> Procedure.--In any
action brought under this subparagraph, the
court--
``(I) <<NOTE: Records.>> shall
receive the records relating to the
hearing under subparagraph (A) and the
records relating to the State review
under subparagraphs (D) through (F), if
applicable;
``(II) shall hear additional
evidence at the request of a party to
the action; and
``(III) basing the decision of the
court on the preponderance of the
evidence, shall grant such relief as the
court determines to be appropriate.
``(6) Hearing board.--
``(A) In general.--A fair hearing board, established
by a State before January 1, 1985, and authorized under
State law to review determinations or decisions under
this Act, is authorized to carry out the
responsibilities of the impartial hearing officer under
this subsection.
``(B) Application.--The provisions of paragraphs
(1), (2), and (3) that relate to due process hearings do
not apply, and paragraph (5) (other than subparagraph
(J))
[[Page 112 STAT.1147]]
does not apply, to any State to which subparagraph (A)
applies.
``(7) Impact on provision of services.--Unless the
individual with a disability so requests, or, in an appropriate
case, the individual's representative, so requests, pending a
decision by a mediator, hearing officer, or reviewing officer
under this subsection, the designated State unit shall not
institute a suspension, reduction, or termination of services
being provided for the individual, including evaluation and
assessment services and plan development, unless such services
have been obtained through misrepresentation, fraud, collusion,
or criminal conduct on the part of the individual, or the
individual's representative.
``(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 a report containing such information. The
Commissioner shall prepare a summary of the information
furnished under this paragraph and include the summary
in the annual report submitted under section 13. The
Commissioner 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.
``(B) Information.--The information required to be
collected under this subsection includes--
``(i) a copy of the standards used by State
reviewing officials for reviewing decisions made
by impartial hearing officers under this
subsection;
``(ii) information on the number of hearings
and reviews sought from the impartial hearing
officers and the State reviewing officials,
including the type of complaints and the issues
involved;
``(iii) information on the number of hearing
decisions made under this subsection that were not
reviewed by the State reviewing officials; and
``(iv) information on the number of the
hearing decisions that were reviewed by the State
reviewing officials, and, based on such reviews,
the number of hearing decisions that were--
``(I) sustained in favor of an
applicant or eligible individual;
``(II) sustained in favor of the
designated State unit;
``(III) reversed in whole or in part
in favor of the applicant or eligible
individual; and
``(IV) reversed in whole or in part
in favor of the designated State unit.
``(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 to those records
for the purposes described in subparagraph (A).
``(d) Policies and Procedures.--Each designated State agency, in
consultation with the State Rehabilitation Council, if the State has
such a council, shall, consistent with section 100(a)(3)(C), develop and
implement written policies and procedures that enable
[[Page 112 STAT.1148]]
each individual who is an applicant for or eligible to receive
vocational rehabilitation services under this title to exercise informed
choice throughout the vocational rehabilitation process carried out
under this title, including policies and procedures that require the
designated State agency--
``(1) to inform each such applicant and eligible individual
(including students with disabilities who are making the
transition from programs under the responsibility of an
educational agency to programs under the responsibility of the
designated State unit), through appropriate modes of
communication, about the availability of, and opportunities to
exercise, informed choice, including the availability of support
services for individuals with cognitive or other disabilities
who require assistance in exercising informed choice, throughout
the vocational rehabilitation process;
``(2) to assist applicants and eligible individuals in
exercising informed choice in decisions related to the provision
of assessment services under this title;
``(3) to develop and implement flexible procurement policies
and methods that facilitate the provision of services, and that
afford eligible individuals meaningful choices among the methods
used to procure services, under this title;
``(4) to provide or assist eligible individuals in acquiring
information that enables those individuals to exercise informed
choice under this title in the selection of--
``(A) the employment outcome;
``(B) the specific vocational rehabilitation
services needed to achieve the employment outcome;
``(C) the entity that will provide the services;
``(D) the employment setting and the settings in
which the services will be provided; and
``(E) the methods available for procuring the
services; and
``(5) to ensure that the availability and scope of informed
choice provided under this section is consistent with the
obligations of the designated State agency under this title.
``SEC. 103. <<NOTE: 29 USC 723.>> VOCATIONAL REHABILITATION SERVICES.
``(a) Vocational Rehabilitation Services for Individuals.--
Vocational rehabilitation services provided under this title are any
services described in an individualized plan for employment necessary to
assist an individual with a disability in preparing for, securing,
retaining, or regaining an employment outcome that is consistent with
the strengths, resources, priorities, concerns, abilities, capabilities,
interests, and informed choice of the individual, including--
``(1) an assessment for determining eligibility and
vocational rehabilitation needs by qualified personnel,
including, if appropriate, an assessment by personnel skilled in
rehabilitation technology;
``(2) counseling and guidance, including information and
support services to assist an individual in exercising informed
choice consistent with the provisions of section 102(d);
``(3) referral and other services to secure needed services
from other agencies through agreements developed under section
101(a)(11), if such services are not available under this title;
[[Page 112 STAT.1149]]
``(4) job-related services, including job search and
placement assistance, job retention services, followup services,
and follow-along services;
``(5) vocational and other training services, including the
provision of personal and vocational adjustment services, books,
tools, and other training materials, except that no training
services provided at an institution of higher education shall be
paid for with funds under this title unless maximum efforts have
been made by the designated State unit and the individual to
secure grant assistance, in whole or in part, from other sources
to pay for such training;
``(6) to the extent that financial support is not readily
available from a source (such as through health insurance of the
individual or through comparable services and benefits
consistent with section 101(a)(8)(A)), other than the designated
State unit, diagnosis and treatment of physical and mental
impairments, including--
``(A) corrective surgery or therapeutic treatment
necessary to correct or substantially modify a physical
or mental condition that constitutes a substantial
impediment to employment, but is of such a nature that
such correction or modification may reasonably be
expected to eliminate or reduce such impediment to
employment within a reasonable length of time;
``(B) necessary hospitalization in connection with
surgery or treatment;
``(C) prosthetic and orthotic devices;
``(D) eyeglasses and visual services as prescribed
by qualified personnel who meet State licensure laws and
who are selected by the individual;
``(E) special services (including transplantation
and dialysis), artificial kidneys, and supplies
necessary for the treatment of individuals with end-
stage renal disease; and
``(F) diagnosis and treatment for mental and
emotional disorders by qualified personnel who meet
State licensure laws;
``(7) maintenance for additional costs incurred while
participating in an assessment for determining eligibility and
vocational rehabilitation needs or while receiving services
under an individualized plan for employment;
``(8) transportation, including adequate training in the use
of public transportation vehicles and systems, that is provided
in connection with the provision of any other service described
in this section and needed by the individual to achieve an
employment outcome;
``(9) on-the-job or other related personal assistance
services provided while an individual is receiving other
services described in this section;
``(10) interpreter services provided by qualified personnel
for individuals who are deaf or hard of hearing, and reader
services for individuals who are determined to be blind, after
an examination by qualified personnel who meet State licensure
laws;
``(11) rehabilitation teaching services, and orientation and
mobility services, for individuals who are blind;
``(12) occupational licenses, tools, equipment, and initial
stocks and supplies;
[[Page 112 STAT.1150]]
``(13) technical assistance and other consultation services
to conduct market analyses, develop business plans, and
otherwise provide resources, to the extent such resources are
authorized to be provided through the statewide workforce
investment system, to eligible individuals who are pursuing
self-employment or telecommuting or establishing a small
business operation as an employment outcome;
``(14) rehabilitation technology, including
telecommunications, sensory, and other technological aids and
devices;
``(15) transition services for students with disabilities,
that facilitate the achievement of the employment outcome
identified in the individualized plan for employment;
``(16) supported employment services;
``(17) services to the family of an individual with a
disability necessary to assist the individual to achieve an
employment outcome; and
``(18) specific post-employment services necessary to assist
an individual with a disability to, retain, regain, or advance
in employment.
``(b) Vocational Rehabilitation Services for Groups of
Individuals.--Vocational rehabilitation services provided for the
benefit of groups of individuals with disabilities may also include the
following:
``(1) In the case of any type of small business operated by
individuals with significant disabilities the operation of which
can be improved by management services and supervision provided
by the designated State agency, the provision of such services
and supervision, along or together with the acquisition by the
designated State agency of vending facilities or other equipment
and initial stocks and supplies.
``(2)(A) The establishment, development, or improvement of
community rehabilitation programs, including, under special
circumstances, the construction of a facility. Such programs
shall be used to provide services that promote integration and
competitive employment.
``(B) The provision of other services, that promise to
contribute substantially to the rehabilitation of a group of
individuals but that are not related directly to the
individualized plan for employment of any 1 individual with a
disability.
``(3) The use of telecommunications systems (including
telephone, television, satellite, radio, and other similar
systems) that have the potential for substantially improving
delivery methods of activities described in this section and
developing appropriate programming to meet the particular needs
of individuals with disabilities.
``(4)(A) Special services to provide nonvisual access to
information for individuals who are blind, including the use of
telecommunications, Braille, sound recordings, or other
appropriate media.
``(B) Captioned television, films, or video cassettes for
individuals who are deaf or hard of hearing.
``(C) Tactile materials for individuals who are deaf-blind.
``(D) Other special services that provide information
through tactile, vibratory, auditory, and visual media.
``(5) Technical assistance and support services to
businesses that are not subject to title I of the Americans with
Disabilities
[[Page 112 STAT.1151]]
Act of 1990 (42 U.S.C. 12111 et seq.) and that are seeking to
employ individuals with disabilities.
``(6) Consultative and technical assistance services to
assist educational agencies in planning for the transition of
students with disabilities from school to post-school
activities, including employment.
``SEC. 104. <<NOTE: 29 USC 724.>> 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, 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. <<NOTE: 29 USC 725.>> STATE REHABILITATION COUNCIL.
``(a) Establishment.--
``(1) In general.--Except as provided in section
101(a)(21)(A)(i), to be eligible to receive financial assistance
under this title a State shall establish a State Rehabilitation
Council (referred to in this section as the `Council') in
accordance with this section.
``(2) Separate agency for individuals who are blind.--A
State that designates a State agency to administer the part of
the State plan under which vocational rehabilitation services
are provided for individuals who are blind under section
101(a)(2)(A)(i) may establish a separate Council in accordance
with this section to perform the duties of such a Council with
respect to such State agency.
``(b) Composition and Appointment.--
``(1) Composition.--
``(A) In general.--Except in the case of a separate
Council established under subsection (a)(2), the Council
shall be composed of--
``(i) at least one representative of the
Statewide Independent Living Council established
under section 705, which representative may be the
chairperson or other designee of the Council;
``(ii) at least one representative of a parent
training and information center established
pursuant to section 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);
``(iii) at least one representative of the
client assistance program established under
section 112;
``(iv) at least one qualified vocational
rehabilitation counselor, with knowledge of and
experience with vocational rehabilitation
programs, who shall serve as an ex officio,
nonvoting member of the Council if the counselor
is an employee of the designated State agency;
[[Page 112 STAT.1152]]
``(v) at least one representative of community
rehabilitation program service providers;
``(vi) four representatives of business,
industry, and labor;
``(vii) representatives of disability advocacy
groups representing a cross section of--
``(I) individuals with physical,
cognitive, sensory, and mental
disabilities; and
``(II) individuals' representatives
of individuals with disabilities who
have difficulty in representing
themselves or are unable due to their
disabilities to represent themselves;
``(viii) current or former applicants for, or
recipients of, vocational rehabilitation services;
``(ix) in a State in which one or more
projects are carried out under section 121, at
least one representative of the directors of the
projects;
``(x) at least one representative of the State
educational agency responsible for the public
education of students with disabilities who are
eligible to receive services under this title and
part B of the Individuals with Disabilities
Education Act; and
``(xi) at least one representative of the
State workforce investment board.
``(B) Separate council.--In the case of a separate
Council established under subsection (a)(2), the Council
shall be composed of--
``(i) at least one representative described in
subparagraph (A)(i);
``(ii) at least one representative described
in subparagraph (A)(ii);
``(iii) at least one representative described
in subparagraph (A)(iii);
``(iv) at least one vocational rehabilitation
counselor described in subparagraph (A)(iv), who
shall serve as described in such subparagraph;
``(v) at least one representative described in
subparagraph (A)(v);
``(vi) four representatives described in
subparagraph (A)(vi);
``(vii) at least one representative of a
disability advocacy group representing individuals
who are blind;
``(viii) at least one individual's
representative, of an individual who--
``(I) is an individual who is blind
and has multiple disabilities; and
``(II) has difficulty in
representing himself or herself or is
unable due to disabilities to represent
himself or herself;
``(ix) applicants or recipients described in
subparagraph (A)(viii);
``(x) in a State described in subparagraph
(A)(ix), at least one representative described in
such subparagraph;
``(xi) at least one representative described
in subparagraph (A)(x); and
[[Page 112 STAT.1153]]
``(xii) at least one representative described
in subparagraph (A)(xi).
``(C) Exception.--In the case of a separate Council
established under subsection (a)(2), any Council that is
required by State law, as in effect on the date of
enactment of the Rehabilitation Act Amendments of 1992,
to have fewer than 15 members shall be deemed to be in
compliance with subparagraph (B) if the Council--
``(i) meets the requirements of subparagraph
(B), other than the requirements of clauses (vi)
and (ix) of such subparagraph; and
``(ii) includes at least--
``(I) one representative described
in subparagraph (B)(vi); and
``(II) one applicant or recipient
described in subparagraph (B)(ix).
``(2) Ex officio member.--The Director of the designated
State unit shall be an ex officio, nonvoting member of the
Council.
``(3) Appointment.--Members of the Council shall be
appointed by the Governor. The Governor shall select members
after soliciting recommendations from representatives of
organizations representing a broad range of individuals with
disabilities and organizations interested in individuals with
disabilities. In selecting members, the Governor shall consider,
to the greatest extent practicable, the extent to which minority
populations are represented on the Council.
``(4) Qualifications.--
``(A) In general.--A majority of Council members
shall be persons who are--
``(i) individuals with disabilities described
in section 7(20)(A); and
``(ii) not employed by the designated State
unit.
``(B) Separate council.--In the case of a separate
Council established under subsection (a)(2), a majority
of Council members shall be persons who are--
``(i) blind; and
``(ii) not employed by the designated State
unit.
``(5) Chairperson.--
``(A) In general.--Except as provided in
subparagraph (B), the Council shall select a chairperson
from among the membership of the Council.
``(B) Designation by governor.--In States in which
the chief executive officer does not have veto power
pursuant to State law, the Governor shall designate a
member of the Council to serve as the chairperson of the
Council or shall require the Council to so designate
such a member.
``(6) Terms of appointment.--
``(A) Length of term.--Each member of the Council
shall serve for a term of not more than 3 years, except
that--
``(i) a member appointed to fill a vacancy
occurring prior to the expiration of the term for
which a predecessor was appointed, shall be
appointed for the remainder of such term; and
``(ii) the terms of service of the members
initially appointed shall be (as specified by the
Governor) for
[[Page 112 STAT.1154]]
such fewer number of years as will provide for the
expiration of terms on a staggered basis.
``(B) Number of terms.--No member of the Council,
other than a representative described in clause (iii) or
(ix) of paragraph (1)(A), or clause (iii) or (x) of
paragraph (1)(B), may serve more than two consecutive
full terms.
``(7) Vacancies.--
``(A) In general.--Except as provided in
subparagraph (B), any vacancy occurring in the
membership of the Council shall be filled in the same
manner as the original appointment. The vacancy shall
not affect the power of the remaining members to execute
the duties of the Council.
``(B) Delegation.--The Governor may delegate the
authority to fill such a vacancy to the remaining
members of the Council after making the original
appointment.
``(c) Functions of Council.--The Council shall, after
consulting with the State workforce investment board--
``(1) review, analyze, and advise the designated State unit
regarding the performance of the responsibilities of the unit
under this title, particularly responsibilities relating to--
``(A) eligibility (including order of selection);
``(B) the extent, scope, and effectiveness of
services provided; and
``(C) functions performed by State agencies that
affect or that potentially affect the ability of
individuals with disabilities in achieving employment
outcomes under this title;
``(2) in partnership with the designated State unit--
``(A) develop, agree to, and review State goals and
priorities in accordance with section 101(a)(15)(C); and
``(B) evaluate the effectiveness of the vocational
rehabilitation program and submit reports of progress to
the Commissioner in accordance with section
101(a)(15)(E);
``(3) advise the designated State agency and the designated
State unit regarding activities authorized to be carried out
under this title, and assist in the preparation of the State
plan and amendments to the plan, applications, reports, needs
assessments, and evaluations required by this title;
``(4) to the extent feasible, conduct a review and analysis
of the effectiveness of, and consumer satisfaction with--
``(A) the functions performed by the designated
State agency;
``(B) vocational rehabilitation services provided by
State agencies and other public and private entities
responsible for providing vocational rehabilitation
services to individuals with disabilities under this
Act; and
``(C) employment outcomes achieved by eligible
individuals receiving services under this title,
including the availability of health and other
employment benefits in connection with such employment
outcomes;
``(5) <<NOTE: Reports.>> prepare and submit an annual
report to the Governor and the Commissioner on the status of
vocational rehabilitation programs operated within the State,
and make the report available to the public;
``(6) to avoid duplication of efforts and enhance the number
of individuals served, coordinate activities with the activities
[[Page 112 STAT.1155]]
of other councils within the State, including the Statewide
Independent Living Council established under section 705, the
advisory panel established under section 612(a)(21) of the
Individual with Disabilities Education Act (as amended by
section 101 of the Individuals with Disabilities Education Act
Amendments of 1997; Public Law 105-17), the State Developmental
Disabilities Council described in section 124 of the
Developmental Disabilities Assistance and Bill of Rights Act (42
U.S.C. 6024), the State mental health planning council
established under section 1914(a) of the Public Health Service
Act (42 U.S.C. 300x-4(a)), and the State workforce investment
board;
``(7) provide for coordination and the establishment of
working relationships between the designated State agency and
the Statewide Independent Living Council and centers for
independent living within the State; and
``(8) perform such other functions, consistent with the
purpose of this title, as the State Rehabilitation Council
determines to be appropriate, that are comparable to the other
functions performed by the Council.
``(d) Resources.--
``(1) Plan.--The Council shall prepare, in conjunction with
the designated State unit, a plan for the provision of such
resources, including such staff and other personnel, as may be
necessary and sufficient to carry out the functions of the
Council under this section. The resource plan shall, to the
maximum extent possible, rely on the use of resources in
existence during the period of implementation of the plan.
``(2) Resolution of disagreements.--To the extent that there
is a disagreement between the Council and the designated State
unit in regard to the resources necessary to carry out the
functions of the Council as set forth in this section, the
disagreement shall be resolved by the Governor consistent with
paragraph (1).
``(3) Supervision and evaluation.--Each Council shall,
consistent with State law, supervise and evaluate such staff and
other personnel as may be necessary to carry out its functions
under this section.
``(4) Personnel conflict of interest.--While assisting the
Council in carrying out its duties, staff and other personnel
shall not be assigned duties by the designated State unit or any
other agency or office of the State, that would create a
conflict of interest.
``(e) Conflict of Interest.--No member of the Council shall cast a
vote on any matter that would provide direct financial benefit to the
member or otherwise give the appearance of a conflict of interest under
State law.
``(f ) Meetings.--The Council shall convene at least four meetings a
year in such places as it determines to be necessary to conduct Council
business and conduct such forums or hearings as the Council considers
appropriate. The meetings, hearings, and forums shall be publicly
announced. The meetings shall be open and accessible to the general
public unless there is a valid reason for an executive session.
``(g) Compensation and Expenses.--The Council may use funds
allocated to the Council by the designated State unit under this title
(except for funds appropriated to carry out the client
[[Page 112 STAT.1156]]
assistance program under section 112 and funds reserved pursuant to
section 110(c) to carry out part C) to reimburse members of the Council
for reasonable and necessary expenses of attending Council meetings and
performing Council duties (including child care and personal assistance
services), and to pay compensation to a member of the Council, if such
member is not employed or must forfeit wages from other employment, for
each day the member is engaged in performing the duties of the Council.
``(h) Hearings and Forums.--The Council is authorized to hold such
hearings and forums as the Council may determine to be necessary to
carry out the duties of the Council.
``SEC. 106. <<NOTE: 29 USC 726.>> EVALUATION STANDARDS AND PERFORMANCE
INDICATORS.
``(a) Establishment.--
``(1) In general.--
``(A) <<NOTE: Deadline. Publication.>>
Establishment of standards and indicators.--The
Commissioner 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) <<NOTE: Effective date.>> Review and
revision.--Effective July 1, 1999, the Commissioner
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).
``(C) <<NOTE: Effective date.>> Bases.--Effective
July 1, 1999, to the maximum extent practicable, the
standards and indicators shall be consistent with the
core indicators of performance established under section
136(b) of the Workforce Investment Act of 1998.
``(2) Measures.--The standards and indicators shall include
outcome and related measures of program performance that
facilitate the accomplishment of the purpose and policy of this
title.
``(3) <<NOTE: Federal Register, publications.>> Comment.--
The standards and indicators shall be developed with input from
State vocational rehabilitation agencies, related professional
and consumer organizations, recipients of vocational
rehabilitation services, and other interested parties. The
Commissioner shall publish in the Federal Register a notice of
intent to regulate regarding the development of proposed
standards and indicators. Proposed standards and indicators
shall be published in the Federal Register for review and
comment. Final standards and indicators shall be published in
the Federal Register.
``(b) Compliance.--
``(1) <<NOTE: Regulations.>> State reports.--In accordance
with regulations established by the Secretary, each State shall
report to the Commissioner after the end of each fiscal year the
extent to which the State is in compliance with the standards
and indicators.
``(2) Program improvement.--
``(A) Plan.--If the Commissioner determines that the
performance of any State is below established standards,
[[Page 112 STAT.1157]]
the Commissioner shall provide technical assistance to
the State, and the State and the Commissioner shall
jointly develop a program improvement plan outlining the
specific actions to be taken by the State to improve
program performance.
``(B) Review.--The Commissioner shall--
``(i) review the program improvement efforts
of the State on a biannual basis and, if
necessary, request the State to make further
revisions to the plan to improve performance; and
``(ii) continue to conduct such reviews and
request such revisions until the State sustains
satisfactory performance over a period of more
than 1 year.
``(c) Withholding.--If the Commissioner determines that a State
whose performance falls below the established standards has failed to
enter into a program improvement plan, or is not complying substantially
with the terms and conditions of such a program improvement plan, the
Commissioner shall, consistent with subsections (c) and (d) of section
107, reduce or make no further payments to the State under this program,
until the State has entered into an approved program improvement plan,
or satisfies the Commissioner that the State is complying substantially
with the terms and conditions of such a program improvement plan, as
appropriate.
``(d) <<NOTE: Effective date.>> Report to Congress.--Beginning in
fiscal year 1999, the Commissioner shall include in each annual report
to the Congress under section 13 an analysis of program performance,
including relative State performance, based on the standards and
indicators.
``SEC. 107. <<NOTE: 29 USC 727.>> MONITORING AND REVIEW.
``(a) In General.--
``(1) Duties.--In carrying out the duties of the
Commissioner under this title, the Commissioner shall--
``(A) provide for the annual review and periodic
onsite monitoring of programs under this title; and
``(B) determine whether, in the administration of
the State plan, a State is complying substantially with
the provisions of such plan and with evaluation
standards and performance indicators established under
section 106.
``(2) Procedures for reviews.--In conducting reviews under
this section the Commissioner shall consider, at a minimum--
``(A) State policies and procedures;
``(B) guidance materials;
``(C) decisions resulting from hearings conducted in
accordance with due process;
``(D) State goals established under section
101(a)(15) and the extent to which the State has
achieved such goals;
``(E) plans and reports prepared under section
106(b);
``(F) consumer satisfaction reviews and analyses
described in section 105(c)(4);
``(G) information provided by the State
Rehabilitation Council established under section 105, if
the State has such a Council, or by the commission
described in section 101(a)(21)(A)(i), if the State has
such a commission;
``(H) reports; and
``(I) budget and financial management data.
[[Page 112 STAT.1158]]
``(3) Procedures for monitoring.--In conducting
monitoring under this section the Commissioner shall conduct--
``(A) onsite visits, including onsite reviews of
records to verify that the State is following
requirements regarding the order of selection set forth
in section 101(a)(5)(A);
``(B) public hearings and other strategies for
collecting information from the public;
``(C) meetings with the State Rehabilitation
Council, if the State has such a Council or with the
commission described in section 101(a)(21)(A)(i), if the
State has such a commission;
``(D) reviews of individual case files, including
individualized plans for employment and ineligibility
determinations; and
``(E) meetings with qualified vocational
rehabilitation counselors and other personnel.
``(4) Areas of inquiry.--In conducting the review and
monitoring, the Commissioner shall examine--
``(A) the eligibility process;
``(B) the provision of services, including, if
applicable, the order of selection;
``(C) such other areas as may be identified by the
public or through meetings with the State Rehabilitation
Council, if the State has such a Council or with the
commission described in section 101(a)(21)(A)(i), if the
State has such a commission; and
``(D) such other areas of inquiry as the
Commissioner may consider appropriate.
``(5) Reports.--If the Commissioner 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 shall--
``(1) provide technical assistance to programs under this
title regarding improving the quality of vocational
rehabilitation services provided; and
``(2) provide technical assistance and establish a
corrective action plan for a program under this title if the
Commissioner finds that the program fails to comply
substantially with the provisions of the State plan, or with
evaluation standards or performance indicators established under
section 106, in order to ensure that such failure is corrected
as soon as practicable.
``(c) Failure To Comply With Plan.--
``(1) Withholding payments.--Whenever the Commissioner,
after providing reasonable notice and an opportunity for a
hearing to the State agency administering or supervising the
administration of the State plan approved under section 101,
finds that--
``(A) the plan has been so changed that it no longer
complies with the requirements of section 101(a); or
``(B) <<NOTE: Notification.>> in the administration
of the plan there is a failure to comply substantially
with any provision of such plan or with an evaluation
standard or performance indicator established under
section 106,
[[Page 112 STAT.1159]]
the Commissioner shall notify such State agency that no further
payments will be made to the State under this title (or, in the
discretion of the Commissioner, that such further payments will
be reduced, in accordance with regulations the Commissioner
shall prescribe, or that further payments will not be made to
the State only for the projects under the parts of the State
plan affected by such failure), until the Commissioner is
satisfied there is no longer any such failure.
``(2) Period.--Until the Commissioner is so satisfied, the
Commissioner shall make no further payments to such State under
this title (or shall reduce payments or limit payments to
projects under those parts of the State plan in which there is
no such failure).
``(3) <<NOTE: Regulations.>> Disbursal of withheld funds.--
The Commissioner may, in accordance with regulations the
Secretary shall prescribe, disburse any funds withheld from a
State under paragraph (1) to any public or nonprofit private
organization or agency within such State or to any political
subdivision of such State submitting a plan meeting the
requirements of section 101(a). The Commissioner may not make
any payment under this paragraph unless the entity to which such
payment is made has provided assurances to the Commissioner that
such entity will contribute, for purposes of carrying out such
plan, the same amount as the State would have been obligated to
contribute if the State received such payment.
``(d) <<NOTE: Courts.>> Review.--
``(1) Petition.--Any State that is dissatisfied with a final
determination of the Commissioner under section 101(b) or
subsection (c) may file a petition for judicial review of such
determination in the United States Court of Appeals for the
circuit in which the State is located. Such a petition may be
filed only within the 30-day period beginning on the date that
notice of such final determination was received by the State.
The clerk of the court shall transmit a copy of the petition to
the Commissioner or to any officer designated by the
Commissioner for that purpose. <<NOTE: Records.>> In accordance
with section 2112 of title 28, United States Code, the
Commissioner shall file with the court a record of the
proceeding on which the Commissioner based the determination
being appealed by the State. Until a record is so filed, the
Commissioner may modify or set aside any determination made
under such proceedings.
``(2) Submissions and determinations.--If, in an action
under this subsection to review a final determination of the
Commissioner under section 101(b) or subsection (c), the
petitioner or the Commissioner applies to the court for leave to
have additional oral submissions or written presentations made
respecting such determination, the court may, for good cause
shown, order the Commissioner to provide within 30 days an
additional opportunity to make such submissions and
presentations. Within such period, the Commissioner may revise
any findings of fact, modify or set aside the determination
being reviewed, or make a new determination by reason of the
additional submissions and presentations, and shall file such
modified or new determination, and any revised findings of fact,
with the return of such submissions and presentations. The court
shall thereafter review such new or modified determination.
[[Page 112 STAT.1160]]
``(3) Standards of review.--
``(A) In general.--Upon the filing of a petition
under paragraph (1) for judicial review of a
determination, the court shall have jurisdiction--
``(i) to grant appropriate relief as provided
in chapter 7 of title 5, United States Code,
except for interim relief with respect to a
determination under subsection (c); and
``(ii) except as otherwise provided in
subparagraph (B), to review such determination in
accordance with chapter 7 of title 5, United
States Code.
``(B) Substantial evidence.--Section 706 of title 5,
United States Code, shall apply to the review of any
determination under this subsection, except that the
standard for review prescribed by paragraph (2)(E) of
such section 706 shall not apply and the court shall
hold unlawful and set aside such determination if the
court finds that the determination is not supported by
substantial evidence in the record of the proceeding
submitted pursuant to paragraph (1), as supplemented by
any additional submissions and presentations filed under
paragraph (2).
``SEC. 108. <<NOTE: 29 USC 728.>> EXPENDITURE OF CERTAIN AMOUNTS.
``(a) Expenditure.--Amounts described in subsection (b) may not be
expended by a State for any purpose other than carrying out programs for
which the State receives financial assistance under this title, under
part B of title VI, or under title VII.
``(b) Amounts.--The amounts referred to in subsection (a) are
amounts provided to a State under the Social Security Act (42 U.S.C. 301
et seq.) as reimbursement for the expenditure of payments received by
the State from allotments under section 110 of this Act.
``SEC. 109. <<NOTE: 29 USC 728a.>> TRAINING OF EMPLOYERS WITH RESPECT
TO AMERICANS WITH DISABILITIES ACT OF 1990.
``A State may expend payments received under section 111--
``(1) to carry out a program to train employers with respect
to compliance with the requirements of title I of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.); and
``(2) to inform employers of the existence of the program
and the availability of the services of the program.
``Part B--Basic Vocational Rehabilitation Services
``SEC. 110. <<NOTE: 29 USC 730.>> STATE ALLOTMENTS.
``(a)(1) Subject to the provisions of subsection (c), for each
fiscal year beginning before October 1, 1978, each State shall be
entitled to an allotment of an amount bearing the same ratio to the
amount authorized to be appropriated under section 100(b)(1) for
allotment under this section as the product of--
``(A) the population of the State; and
``(B) the square of its allotment percentage,
bears to the sum of the corresponding products for all the States.
``(2)(A) For each fiscal year beginning on or after October 1, 1978,
each State shall be entitled to an allotment in an amount equal to the
amount such State received under paragraph (1) for the fiscal year
ending September 30, 1978, and an additional amount determined pursuant
to subparagraph (B) of this paragraph.
[[Page 112 STAT.1161]]
``(B) For each fiscal year beginning on or after October 1, 1978,
each State shall be entitled to an allotment, from any amount authorized
to be appropriated for such fiscal year under section 100(b)(1) for
allotment under this section in excess of the amount appropriated under
section 100(b)(1)(A) for the fiscal year ending September 30, 1978, in
an amount equal to the sum of--
``(i) an amount bearing the same ratio to 50 percent of such
excess amount as the product of the population of the State and
the square of its allotment percentage bears to the sum of the
corresponding products for all the States; and
``(ii) an amount bearing the same ratio to 50 percent of
such excess amount as the product of the population of the State
and its allotment percentage bears to the sum of the
corresponding products for all the States.
``(3) The sum of the payment to any State (other than Guam, American
Samoa, the Virgin Islands, and the Commonwealth of the Northern Mariana
Islands) under this subsection for any fiscal year which is less than
\1/3\ of 1 percent of the amount appropriated under section 100(b)(1),
or $3,000,000, whichever is greater, shall be increased to that amount,
the total of the increases thereby required being derived by
proportionately reducing the allotment to each of the remaining such
States under this subsection, but with such adjustments as may be
necessary to prevent the sum of the allotments made under this
subsection to any such remaining State from being thereby reduced to
less than that amount.
``(b)(1) <<NOTE: Deadlines.>> Not later than 45 days prior to the
end of the fiscal year, the Commissioner shall determine, after
reasonable opportunity for the submission to the Commissioner of
comments by the State agency administering or supervising the program
established under this title, that any payment of an allotment to a
State under section 111(a) for any fiscal year will not be utilized by
such State in carrying out the purposes of this title.
``(2) As soon as practicable but not later than the end of the
fiscal year, the Commissioner shall make such amount available for
carrying out the purposes of this title to one or more other States to
the extent the Commissioner determines such other State will be able to
use such additional amount during that fiscal year or the subsequent
fiscal year for carrying out such purposes. The Commissioner shall make
such amount available only if such other State will be able to make
sufficient payments from non-Federal sources to pay for the non-Federal
share of the cost of vocational rehabilitation services under the State
plan for the fiscal year for which the amount was appropriated.
``(3) For the purposes of this part, any amount made available to a
State for any fiscal year pursuant to this subsection shall be regarded
as an increase of such State's allotment (as determined under the
preceding provisions of this section) for such year.
``(c)(1) For fiscal year 1987 and for each subsequent fiscal year,
the Commissioner shall reserve from the amount appropriated under
section 100(b)(1) for allotment under this section a sum, determined
under paragraph (2), to carry out the purposes of part 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
[[Page 112 STAT.1162]]
``(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.
``SEC. 111. <<NOTE: 29 USC 731.>> PAYMENTS TO STATES.
``(a)(1) Except as provided in paragraph (2), from each State's
allotment under this part for any fiscal year, the Commissioner shall
pay to a State an amount equal to the Federal share of the cost of
vocational rehabilitation services under the plan for that State
approved under section 101, including expenditures for the
administration of the State plan.
``(2)(A) The total of payments under paragraph (1) to a State for a
fiscal year may not exceed its allotment under subsection (a) of section
110 for such year.
``(B) For fiscal year 1994 and each fiscal year thereafter, the
amount otherwise payable to a State for a fiscal year under this section
shall be reduced by the amount by which expenditures from non-Federal
sources under the State plan under this title for the previous fiscal
year are less than the total of such expenditures for the second fiscal
year preceding the previous fiscal year.
``(C) The Commissioner may waive or modify any requirement or
limitation under subparagraph (B) or section 101(a)(17) if the
Commissioner determines that a waiver or modification is an equitable
response to exceptional or uncontrollable circumstances affecting the
State.
``(3)(A) Except as provided in subparagraph (B), the amount of a
payment under this section with respect to any construction project in
any State shall be equal to the same percentage of the cost of such
project as the Federal share that is applicable in the case of
rehabilitation facilities (as defined in section 645(g) of the Public
Health Service Act (42 U.S.C. 291o(a))), in such State.
``(B) If the Federal share with respect to rehabilitation facilities
in such State is determined pursuant to section 645(b)(2) of such Act
(42 U.S.C. 291o(b)(2)), the percentage of the cost for purposes of this
section shall be determined in accordance with regulations prescribed by
the Commissioner designed to achieve as nearly as practicable results
comparable to the results obtained under such section.
``(b) The method of computing and paying amounts pursuant to
subsection (a) shall be as follows:
``(1) The Commissioner shall, prior to the beginning of each
calendar quarter or other period prescribed by the Commissioner,
estimate the amount to be paid to each State under the
provisions of such subsection for such period, such estimate to
be based on such records of the State and information furnished
by it, and such other investigation as the Commissioner may find
necessary.
``(2) The Commissioner shall pay, from the allotment
available therefor, the amount so estimated by the Commissioner
for such period, reduced or increased, as the case may be, by
any sum (not previously adjusted under this paragraph) by which
the Commissioner finds that the estimate of the amount to be
paid the State for any prior period under such subsection was
greater or less than the amount which should have been paid to
the State for such prior period under such subsection. Such
payment shall be made prior to audit or
[[Page 112 STAT.1163]]
settlement by the General Accounting Office, shall be made
through the disbursing facilities of the Treasury Department,
and shall be made in such installments as the Commissioner may
determine.
``SEC. 112. <<NOTE: 29 USC 732.>> CLIENT ASSISTANCE PROGRAM.
``(a) <<NOTE: Grants.>> From funds appropriated under subsection
(h), the Secretary shall, in accordance with this section, make grants
to States to establish and carry out client assistance programs to
provide assistance in informing and advising all clients and client
applicants of all available benefits under this Act, and, upon request
of such clients or client applicants, to assist and advocate for such
clients or applicants in their relationships with projects, programs,
and services provided under this Act, including assistance and advocacy
in pursuing legal, administrative, or other appropriate remedies to
ensure the protection of the rights of such individuals under this Act
and to facilitate access to the services funded under this Act through
individual and systemic advocacy. The client assistance program shall
provide information on the available services and benefits under this
Act and title I of the Americans with Disabilities Act of 1990 (42
U.S.C. 12111 et seq.) to individuals with disabilities in the State,
especially with regard to individuals with disabilities who have
traditionally been unserved or underserved by vocational rehabilitation
programs. In providing assistance and advocacy under this subsection
with respect to services under this title, a client assistance program
may provide the assistance and advocacy with respect to services that
are directly related to facilitating the employment of the individual.
``(b) No State may receive payments from its allotment under this
Act in any fiscal year unless the State has in effect not later than
October 1, 1984, a client assistance program which--
``(1) has the authority to pursue legal, administrative, and
other appropriate remedies to ensure the protection of rights of
individuals with disabilities who are receiving treatments,
services, or rehabilitation under this Act within the State; and
``(2) meets the requirements of designation under subsection
(c).
``(c)(1)(A) The Governor shall designate a public or private agency
to conduct the client assistance program under this section. Except as
provided in the last sentence of this subparagraph, the Governor shall
designate an agency which is independent of any agency which provides
treatment, services, or rehabilitation to individuals under this Act. If
there is an agency in the State which has, or had, prior to the date of
enactment of the Rehabilitation Amendments of 1984, served as a client
assistance agency under this section and which received Federal
financial assistance under this Act, the Governor may, in the initial
designation, designate an agency which provides treatment, services, or
rehabilitation to individuals with disabilities under this Act.
``(B)(i) The Governor may not redesignate the agency designated
under subparagraph (A) without good cause and unless--
``(I) the Governor has given the agency 30 days notice of
the intention to make such redesignation, including
specification of the good cause for such redesignation and an
opportunity to respond to the assertion that good cause has been
shown;
[[Page 112 STAT.1164]]
``(II) individuals with disabilities or the individuals'
representatives have timely notice of the redesignation and
opportunity for public comment; and
``(III) the agency has the opportunity to appeal to the
Commissioner on the basis that the redesignation was not for
good cause.
``(ii) If, after the date of enactment of the Rehabilitation Act
Amendments of 1998--
``(I) a designated State agency undergoes any change in the
organizational structure of the agency that results in the
creation of one or more new State agencies or departments or
results in the merger of the designated State agency with one or
more other State agencies or departments; and
``(II) an agency (including an office or other unit) within
the designated State agency was conducting a client assistance
program before the change under the last sentence of
subparagraph (A),
the Governor shall redesignate the agency conducting the program. In
conducting the redesignation, the Governor shall designate to conduct
the program an agency that is independent of any agency that provides
treatment, services, or rehabilitation to individuals with disabilities
under this Act.
``(2) In carrying out the provisions of this section, the Governor
shall consult with the director of the State vocational rehabilitation
agency, the head of the developmental disability protection and advocacy
agency, and with representatives of professional and consumer
organizations serving individuals with disabilities in the State.
``(3) The agency designated under this subsection shall be
accountable for the proper use of funds made available to the agency.
``(d) The agency designated under subsection (c) of this section may
not bring any class action in carrying out its responsibilities under
this section.
``(e)(1)(A) The Secretary shall allot the sums appropriated for each
fiscal year under this section among the States on the basis of relative
population of each State, except that no State shall receive less than
$50,000.
``(B) The Secretary shall allot $30,000 each to American Samoa,
Guam, the Virgin Islands, and the Commonwealth of the Northern Mariana
Islands.
``(C) For the purpose of this paragraph, the term `State' does not
include American Samoa, Guam, the Virgin Islands, and the Commonwealth
of the Northern Mariana Islands.
``(D)(i) In any fiscal year that the funds appropriated for such
fiscal year exceed $7,500,000, the minimum allotment shall be $100,000
for States and $45,000 for territories.
``(ii) For any fiscal year in which the total amount appropriated
under subsection (h) exceeds the total amount appropriated under such
subsection for the preceding fiscal year, the Secretary shall increase
each of the minimum allotments under clause (i) by a percentage that
shall not exceed the percentage increase in the total amount
appropriated under such subsection between the preceding fiscal year and
the fiscal year involved.
``(2) The amount of an allotment to a State for a fiscal year which
the Secretary determines will not be required by the State during the
period for which it is available for the purpose for
[[Page 112 STAT.1165]]
which allotted shall be available for reallotment by the Secretary at
appropriate times to other States with respect to which such a
determination has not been made, in proportion to the original
allotments of such States for such fiscal year, but with such
proportionate amount for any of such other States being reduced to the
extent it exceeds the sum the Secretary estimates such State needs and
will be able to use during such period, and the total of such reduction
shall be similarly reallotted among the States whose proportionate
amounts were not so reduced. Any such amount so reallotted to a State
for a fiscal year shall be deemed to be a part of its allotment for such
fiscal year.
``(3) Except as specifically prohibited by or as otherwise provided
in State law, the Secretary shall pay to the agency designated under
subsection (c) the amount specified in the application approved under
subsection (f ).
``(f ) No grant may be made under this section unless the State
submits an application to the Secretary at such time, in such manner,
and containing or accompanied by such information as the Secretary deems
necessary to meet the requirements of this section.
``(g) <<NOTE: Regulations.>> The Secretary shall prescribe
regulations applicable to the client assistance program which shall
include the following requirements:
``(1) No employees of such programs shall, while so
employed, serve as staff or consultants of any rehabilitation
project, program, or facility receiving assistance under this
Act in the State.
``(2) Each program shall be afforded reasonable access to
policymaking and administrative personnel in the State and local
rehabilitation programs, projects, or facilities.
``(3)(A) Each program shall contain provisions designed to
assure that to the maximum extent possible alternative means of
dispute resolution are available for use at the discretion of an
applicant or client of the program prior to resorting to
litigation or formal adjudication to resolve a dispute arising
under this section.
``(B) In subparagraph (A), the term `alternative means of
dispute resolution' means any procedure, including good faith
negotiation, conciliation, facilitation, mediation, factfinding,
and arbitration, and any combination of procedures, that is used
in lieu of litigation in a court or formal adjudication in an
administrative forum, to resolve a dispute arising under this
section.
``(4) For purposes of any periodic audit, report, or
evaluation of the performance of a client assistance program
under this section, the Secretary shall not require such a
program to disclose the identity of, or any other personally
identifiable information related to, any individual requesting
assistance under such program.
``(h) <<NOTE: Appropriation authorization.>> There are authorized
to be appropriated such sums as may be necessary for fiscal years 1999
through 2003 to carry out the provisions of this section.
[[Page 112 STAT.1166]]
``Part C--American Indian Vocational Rehabilitation Services
``SEC. 121. <<NOTE: 29 USC 741.>> VOCATIONAL REHABILITATION SERVICES
GRANTS.
``(a) The Commissioner, in accordance with the provisions of this
part, may make grants to the governing bodies of Indian tribes located
on Federal and State reservations (and consortia of such governing
bodies) to pay 90 percent of the costs of vocational rehabilitation
services for American Indians who are individuals with disabilities
residing on or near such reservations. The non-Federal share of such
costs may be in cash or in kind, fairly valued, and the Commissioner may
waive such non-Federal share requirement in order to carry out the
purposes of this Act.
``(b)(1) No grant may be made under this part for any fiscal year
unless an application therefor has been submitted to and approved by the
Commissioner. The Commissioner may not approve an application unless the
application--
``(A) is made at such time, in such manner, and contains
such information as the Commissioner may require;
``(B) contains assurances that the rehabilitation services
provided under this part to American Indians who are individuals
with disabilities residing on or near a reservation in a State
shall be, to the maximum extent feasible, comparable to
rehabilitation services provided under this title to other
individuals with disabilities residing in the State and that,
where appropriate, may include services traditionally used by
Indian tribes; and
``(C) contains assurances that the application was developed
in consultation with the designated State unit of the State.
``(2) The provisions of sections 5, 6, 7, and 102(a) of the Indian
Self-Determination and Education Assistance Act shall be applicable to
any application submitted under this part. For purposes of this
paragraph, any reference in any such provision to the Secretary of
Education or to the Secretary of the Interior shall be considered to be
a reference to the Commissioner.
``(3) Any application approved under this part shall be effective
for not more than 60 months, except as determined otherwise by the
Commissioner pursuant to prescribed regulations. The State shall
continue to provide vocational rehabilitation services under its State
plan to American Indians residing on or near a reservation whenever such
State includes any such American Indians in its State population under
section 110(a)(1).
``(4) In making grants under this part, the Secretary shall give
priority consideration to applications for the continuation of programs
which have been funded under this part.
``(5) Nothing in this section may be construed to authorize a
separate service delivery system for Indian residents of a State who
reside in non-reservation areas.
``(c) The term `reservation' includes Indian reservations, public
domain Indian allotments, former Indian reservations in Oklahoma, and
land held by incorporated Native groups, regional corporations, and
village corporations under the provisions of the Alaska Native Claims
Settlement Act.
[[Page 112 STAT.1167]]
``Part D--Vocational Rehabilitation Services Client Information
``SEC. 131. <<NOTE: 29 USC 751.>> DATA SHARING.
``(a) In General.--
``(1) Memorandum of understanding.--The Secretary of
Education and the Secretary of Health and Human Services shall
enter into a memorandum of understanding for the purposes of
exchanging data of mutual importance--
``(A) that concern clients of designated State
agencies; and
``(B) that are data maintained either by--
``(i) the Rehabilitation Services
Administration, as required by section 13; or
``(ii) the Social Security Administration,
from its Summary Earnings and Records and Master
Beneficiary Records.
``(2) Employment statistics.--The Secretary of Labor shall
provide the Commissioner with employment statistics specified in
section 15 of the Wagner-Peyser Act, that facilitate evaluation
by the Commissioner of the program carried out under part B, and
allow the Commissioner 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.
``(b) Treatment of Information.--For purposes of the exchange
described in subsection (a)(1), the data described in subsection
(a)(1)(B)(ii) shall not be considered return information (as defined in
section 6103(b)(2) of the Internal Revenue Code of 1986) and, as
appropriate, the confidentiality of all client information shall be
maintained by the Rehabilitation Services Administration and the Social
Security Administration.''.
SEC. 405. RESEARCH AND TRAINING.
Title II of the Rehabilitation Act of 1973 (29 U.S.C. 760 et seq.),
is amended to read as follows:
``TITLE II--RESEARCH AND TRAINING
``declaration of purpose
``Sec. 200. <<NOTE: 29 USC 760.>> The purpose of this title is to--
``(1) provide for research, demonstration projects,
training, and related activities to maximize the full inclusion
and integration into society, employment, independent living,
family support, and economic and social self-sufficiency of
individuals with disabilities of all ages, with particular
emphasis on improving the effectiveness of services authorized
under this Act;
``(2) provide for a comprehensive and coordinated approach
to the support and conduct of such research, demonstration
projects, training, and related activities and to ensure that
the approach is in accordance with the 5-year plan developed
under section 202(h);
``(3) promote the transfer of rehabilitation technology to
individuals with disabilities through research and demonstration
projects relating to--
[[Page 112 STAT.1168]]
``(A) the procurement process for the purchase of
rehabilitation technology;
``(B) the utilization of rehabilitation technology
on a national basis;
``(C) specific adaptations or customizations of
products to enable individuals with disabilities to live
more independently; and
``(D) the development or transfer of assistive
technology;
``(4) ensure the widespread distribution, in usable formats,
of practical scientific and technological information--
``(A) generated by research, demonstration projects,
training, and related activities; and
``(B) regarding state-of-the-art practices,
improvements in the services authorized under this Act,
rehabilitation technology, and new knowledge regarding
disabilities,
to rehabilitation professionals, individuals with disabilities,
and other interested parties, including the general public;
``(5) identify effective strategies that enhance the
opportunities of individuals with disabilities to engage in
employment, including employment involving telecommuting and
self-employment; and
``(6) increase opportunities for researchers who are members
of traditionally underserved populations, including researchers
who are members of minority groups and researchers who are
individuals with disabilities.
``authorization of appropriations
``Sec. 201. <<NOTE: 29 USC 761.>> (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; and
``(2) to carry out section 204, such sums as may be
necessary for each of fiscal years 1999 through 2003.
``(b) Funds appropriated under this title shall remain available
until expended.
``national institute on disability and rehabilitation research
``Sec. 202. <<NOTE: Establishment. 29 USC 762.>> (a)(1) There is
established within the Department of Education a National Institute on
Disability and Rehabilitation Research (hereinafter in this title
referred to as the `Institute'), which shall be headed by a Director
(hereinafter in this title referred to as the `Director'), in order to--
``(A) promote, coordinate, and provide for--
``(i) research;
``(ii) demonstration projects and training; and
``(iii) related activities,
with respect to individuals with disabilities;
``(B) more effectively carry out activities through the
programs under section 204 and activities under this section;
``(C) widely disseminate information from the activities
described in subparagraphs (A) and (B); and
[[Page 112 STAT.1169]]
``(D) provide leadership in advancing the quality of life of
individuals with disabilities.
``(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 is responsible under section 3(a).
``(b) The Director, through the Institute, shall be responsible
for--
``(1) administering the programs described in section 204
and activities under this section;
``(2) widely disseminating findings, conclusions, and
recommendations, resulting from research, demonstration
projects, training, and related activities (referred to in this
title as `covered activities') funded by the Institute, to--
``(A) other Federal, State, tribal, and local public
agencies;
``(B) private organizations engaged in research
relating to rehabilitation or providing rehabilitation
services;
``(C) rehabilitation practitioners; and
``(D) individuals with disabilities and the
individuals' representatives;
``(3) coordinating, through the Interagency Committee
established by section 203 of this Act, all Federal programs and
policies relating to research in rehabilitation;
``(4) widely disseminating educational materials and
research results, concerning ways to maximize the full inclusion
and integration into society, employment, independent living,
family support, and economic and social self-sufficiency of
individuals with disabilities, to--
``(A) public and private entities, including--
``(i) elementary and secondary schools (as
defined in section 14101 of the Elementary and
Secondary Education Act of 1965; and
``(ii) institutions of higher education;
``(B) rehabilitation practitioners;
``(C) individuals with disabilities (especially such
individuals who are members of minority groups or of
populations that are unserved or underserved by programs
under this Act); and
``(D) the individuals' representatives for the
individuals described in subparagraph (C);
``(5)(A) conducting an education program to inform the
public about ways of providing for the rehabilitation of
individuals with disabilities, including information relating
to--
``(i) family care;
``(ii) self-care; and
``(iii) assistive technology devices and assistive
technology services; and
``(B) as part of the program, disseminating engineering
information about assistive technology devices;
``(6) conducting conferences, seminars, and workshops
(including in-service training programs and programs for
individuals with disabilities) concerning advances in
rehabilitation research and rehabilitation technology (including
advances concerning the selection and use of assistive
technology devices and assistive technology services), pertinent
to the full inclusion
[[Page 112 STAT.1170]]
and integration into society, employment, independent living,
family support, and economic and social self-sufficiency of
individuals with disabilities;
``(7) taking whatever action is necessary to keep the
Congress fully and currently informed with respect to the
implementation and conduct of programs and activities carried
out under this title, including dissemination activities;
``(8) producing, in conjunction with the Department of
Labor, the National Center for Health Statistics, the Bureau of
the Census, the Health Care Financing Administration, the Social
Security Administration, the Bureau of Indian Affairs, the
Indian Health Service, and other Federal departments and
agencies, as may be appropriate, statistical reports and studies
on the employment, self-employment, telecommuting, health,
income, and other demographic characteristics of individuals
with disabilities, including information on individuals with
disabilities who live in rural or inner-city settings, with
particular attention given to underserved populations, and
widely disseminating such reports and studies to rehabilitation
professionals, individuals with disabilities, the individuals'
representatives, and others to assist in the planning,
assessment, and evaluation of vocational and other
rehabilitation services for individuals with disabilities;
``(9) conducting research on consumer satisfaction with
vocational rehabilitation services for the purpose of
identifying effective rehabilitation programs and policies that
promote the independence of individuals with disabilities and
achievement of long-term vocational goals;
``(10) conducting research to examine the relationship
between the provision of specific services and successful,
sustained employment outcomes, including employment outcomes
involving self-employment and telecommuting; and
``(11) coordinating activities with the Attorney General
regarding the provision of information, training, or technical
assistance regarding the Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.) to ensure consistency with the plan
for technical assistance required under section 506 of such Act
(42 U.S.C. 12206).
``(c)(1) The Director, acting through the Institute or one or more
entities funded by the Institute, shall provide for the development and
dissemination of models to address consumer-driven information needs
related to assistive technology devices and assistive technology
services.
``(2) The development and dissemination of models may include--
``(A) convening groups of individuals with disabilities,
family members and advocates of such individuals, commercial
producers of assistive technology, and entities funded by the
Institute to develop, assess, and disseminate knowledge about
information needs related to assistive technology;
``(B) identifying the types of information regarding
assistive technology devices and assistive technology services
that individuals with disabilities find especially useful;
``(C) evaluating current models, and developing new models,
for transmitting the information described in subparagraph (B)
to consumers and to commercial producers of assistive
technology; and
[[Page 112 STAT.1171]]
``(D) disseminating through one or more entities funded by
the Institute, the models described in subparagraph (C) and
findings regarding the information described in subparagraph (B)
to consumers and commercial producers of assistive technology.
``(d)(1) The Director of the Institute shall be appointed by the
Secretary. The Director shall be an individual with substantial
experience in rehabilitation and in research administration.
``(2) The Director, subject to the approval of the President, may
appoint, for terms not to exceed three years, without regard to the
provisions of title 5, United States Code, governing appointment in the
competitive service, and may compensate, without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of such title
relating to classification and General Schedule pay rates, such
technical and professional employees of the Institute as the Director
determines to be necessary to accomplish the functions of the Institute
and also appoint and compensate without regard to such provisions, in a
number not to exceed one-fifth of the number of full-time, regular
technical and professional employees of the Institute.
``(3) The Director may obtain the services of consultants, without
regard to the provisions of title 5, United States Code, governing
appointments in the competitive service.
``(e) <<NOTE: Regulations.>> The Director, pursuant to regulations
which the Secretary shall prescribe, may establish and maintain
fellowships with such stipends and allowances, including travel and
subsistence expenses provided for under title 5, United States Code, as
the Director considers necessary to procure the assistance of highly
qualified research fellows, including individuals with disabilities,
from the United States and foreign countries.
``(f )(1) The Director shall provide for scientific peer review of
all applications for financial assistance for research, training, and
demonstration projects over which the Director has authority. The
scientific peer review shall be conducted by individuals who are not
Federal employees, who are scientists or other experts in the
rehabilitation field (including the independent living field), including
knowledgeable individuals with disabilities, and the individuals'
representatives, and who are competent to review applications for the
financial assistance.
``(2) In providing for such scientific peer review, the Secretary
shall provide for training, as necessary and appropriate, to facilitate
the effective participation of those individuals selected to participate
in such review.
``(g) Not less than 90 percent of the funds appropriated under this
title for any fiscal year shall be expended by the Director to carry out
activities under this title through grants, contracts, or cooperative
agreements. Up to 10 percent of the funds appropriated under this title
for any fiscal year may be expended directly for the purpose of carrying
out the functions of the Director under this section.
``(h)(1) <<NOTE: Deadlines.>> The Director shall--
``(A) <<NOTE: Federal Register, publication.>> by October
1, 1998, and every fifth October 1 thereafter, prepare and
publish in the Federal Register for public comment a draft of a
5-year plan that outlines priorities for rehabilitation
research, demonstration projects, training, and related
activities and explains the basis for such priorities;
[[Page 112 STAT.1172]]
``(B) by June 1, 1999, and every fifth June 1 thereafter,
after considering public comments, submit the plan in final form
to the appropriate committees of Congress;
``(C) at appropriate intervals, prepare and submit revisions
in the plan to the appropriate committees of Congress; and
``(D) <<NOTE: Reports.>> annually prepare and submit
progress reports on the plan to the appropriate committees of
Congress.
``(2) Such plan shall--
``(A) identify any covered activity that should be conducted
under this section and section 204 respecting the full inclusion
and integration into society of individuals with disabilities,
especially in the area of employment;
``(B) determine the funding priorities for covered
activities to be conducted under this section and section 204;
``(C) specify appropriate goals and timetables for covered
activities to be conducted under this section and section 204;
``(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;
``(iii) after consultation with the National Council
on Disability established under title IV, the Secretary
of Education, officials responsible for the
administration of the Developmental Disabilities
Assistance and Bill of Rights Act (42 U.S.C. 6000 et
seq.), and the Interagency Committee on Disability
Research established under section 203; and
``(iv) after full consideration of the input of
individuals with disabilities and the individuals'
representatives, organizations representing individuals
with disabilities, providers of services furnished under
this Act, researchers in the rehabilitation field, and
any other persons or entities the Director considers to
be appropriate;
``(E) specify plans for widespread dissemination of the
results of covered activities, in accessible formats, to
rehabilitation practitioners, individuals with disabilities, and
the individuals' representatives; and
``(F) specify plans for widespread dissemination of the
results of covered activities that concern individuals with
disabilities who are members of minority groups or of
populations that are unserved or underserved by programs carried
out under this Act.
``(i) In order to promote cooperation among Federal departments and
agencies conducting research programs, the Director shall consult with
the administrators of such programs, and with the Interagency Committee
established by section 203, regarding the design of research projects
conducted by such entities and the results and applications of such
research.
``( j)(1) The Director shall take appropriate actions to provide for
a comprehensive and coordinated research program under this title. In
providing such a program, the Director may undertake joint activities
with other Federal entities engaged in research and with appropriate
private entities. Any Federal entity proposing to establish any research
project related to the purposes of this Act shall consult, through the
Interagency Committee established by section 203, with the Director as
Chairperson of such Committee
[[Page 112 STAT.1173]]
and provide the Director with sufficient prior opportunity to comment on
such project.
``(2) Any person responsible for administering any program of the
National Institutes of Health, the Department of Veterans Affairs, the
National Science Foundation, the National Aeronautics and Space
Administration, the Office of Special Education and Rehabilitative
Services, or of any other Federal entity, shall, through the Interagency
Committee established by section 203, consult and cooperate with the
Director in carrying out such program if the program is related to the
purposes of this title.
``(3) <<NOTE: Grants. Contracts.>> The Director shall support,
directly or by grant or contract, a center associated with an
institution of higher education, for research and training concerning
the delivery of vocational rehabilitation services to rural areas.
``(k) <<NOTE: Grants.>> The Director shall make grants to
institutions of higher education for the training of rehabilitation
researchers, including individuals with disabilities, with particular
attention to research areas that support the implementation and
objectives of this Act and that improve the effectiveness of services
authorized under this Act.
``interagency committee
``Sec. 203. <<NOTE: Establishment. 29 USC 763.>> (a)(1) In order to
promote coordination and cooperation among Federal departments and
agencies conducting rehabilitation research programs, 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 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.
``(2) The Committee shall meet not less than four times each year.
``(b) After receiving input from individuals with disabilities and
the individuals' representatives, the Committee shall identify, assess,
and seek to coordinate all Federal programs, activities, and projects,
and plans for such programs, activities, and projects with respect to
the conduct of research related to rehabilitation of individuals with
disabilities.
``(c) <<NOTE: Reports.>> The Committee shall annually submit to the
President and to the appropriate committees of the Congress a report
making such recommendations as the Committee deems appropriate with
respect to coordination of policy and development of objectives and
priorities for all Federal programs relating to the conduct of research
related to rehabilitation of individuals with disabilities.
``research and other covered activities
``Sec. 204. <<NOTE: 29 USC 764.>> (a)(1) To the extent consistent
with priorities established in the 5-year plan described in section
202(h), the Director
[[Page 112 STAT.1174]]
may make grants to and contracts with States and public or private
agencies and organizations, including institutions of higher education,
Indian tribes, and tribal organizations, to pay part of the cost of
projects for the purpose of planning and conducting research,
demonstration projects, training, and related activities, the purposes
of which are to develop methods, procedures, and rehabilitation
technology, that maximize the full inclusion and integration into
society, employment, independent living, family support, and economic
and social self-sufficiency of individuals with disabilities, especially
individuals with the most significant disabilities, and improve the
effectiveness of services authorized under this Act.
``(2)(A) In carrying out this section, the Director shall emphasize
projects that support the implementation of titles I, III, V, VI, and
VII, including projects addressing the needs described in the State
plans submitted under section 101 or 704 by State agencies.
``(B) Such projects, as described in the State plans submitted by
State agencies, may include--
``(i) medical and other scientific, technical,
methodological, and other investigations into the nature of
disability, methods of analyzing it, and restorative techniques,
including basic research where related to rehabilitation
techniques or services;
``(ii) studies and analysis of industrial, vocational,
social, recreational, psychiatric, psychological, economic, and
other factors affecting rehabilitation of individuals with
disabilities;
``(iii) studies and analysis of special problems of
individuals who are homebound and individuals who are
institutionalized;
``(iv) studies, analyses, and demonstrations of
architectural and engineering design adapted to meet the special
needs of individuals with disabilities;
``(v) studies, analyses, and other activities related to
supported employment;
``(vi) related activities which hold promise of increasing
knowledge and improving methods in the rehabilitation of
individuals with disabilities and individuals with the most
significant disabilities, particularly individuals with
disabilities, and individuals with the most significant
disabilities, who are members of populations that are unserved
or underserved by programs under this Act; and
``(vii) studies, analyses, and other activities related to
job accommodations, including the use of rehabilitation
engineering and assistive technology.
``(b)(1) In addition to carrying out projects under subsection (a),
the Director may make grants under this subsection (referred to in this
subsection as `research grants') to pay part or all of the cost of the
research or other specialized covered activities described in paragraphs
(2) through (18). A research grant made under any of paragraphs (2)
through (18) may only be used in a manner consistent with priorities
established in the 5-year plan described in section 202(h).
``(2)(A) Research grants may be used for the establishment and
support of Rehabilitation Research and Training Centers, for the purpose
of providing an integrated program of research, which Centers shall--
``(i) be operated in collaboration with institutions of
higher education or providers of rehabilitation services or
other appropriate services; and
[[Page 112 STAT.1175]]
``(ii) serve as centers of national excellence and national
or regional resources for providers and individuals with
disabilities and the individuals' representatives.
``(B) The Centers shall conduct research and training activities
by--
``(i) conducting coordinated and advanced programs of
research in rehabilitation targeted toward the production of new
knowledge that will improve rehabilitation methodology and
service delivery systems, alleviate or stabilize disabling
conditions, and promote maximum social and economic independence
of individuals with disabilities, especially promoting the
ability of the individuals to prepare for, secure, retain,
regain, or advance in employment;
``(ii) providing training (including graduate, pre-service,
and in-service training) to assist individuals to more
effectively provide rehabilitation services;
``(iii) providing training (including graduate, pre-service,
and in-service training) for rehabilitation research personnel
and other rehabilitation personnel; and
``(iv) serving as an informational and technical assistance
resource to providers, individuals with disabilities, and the
individuals' representatives, through conferences, workshops,
public education programs, in-service training programs, and
similar activities.
``(C) The research to be carried out at each such Center may
include--
``(i) basic or applied medical rehabilitation research;
``(ii) research regarding the psychological and social
aspects of rehabilitation, including disability policy;
``(iii) research related to vocational rehabilitation;
``(iv) continuation of research that promotes the emotional,
social, educational, and functional growth of children who are
individuals with disabilities;
``(v) continuation of research to develop and evaluate
interventions, policies, and services that support families of
those children and adults who are individuals with disabilities;
and
``(vi) continuation of research that will improve services
and policies that foster the productivity, independence, and
social integration of individuals with disabilities, and enable
individuals with disabilities, including individuals with mental
retardation and other developmental disabilities, to live in
their communities.
``(D) Training of students preparing to be rehabilitation personnel
shall be an important priority for such a Center.
``(E) <<NOTE: Grants.>> The Director shall make grants under this
paragraph to establish and support both comprehensive centers dealing
with multiple disabilities and centers primarily focused on particular
disabilities.
``(F) Grants made under this paragraph may be used to provide funds
for services rendered by such a Center to individuals with disabilities
in connection with the research and training activities.
``(G) Grants made under this paragraph may be used to provide
faculty support for teaching--
``(i) rehabilitation-related courses of study for credit;
and
``(ii) other courses offered by the Centers, either directly
or through another entity.
[[Page 112 STAT.1176]]
``(H) The research and training activities conducted by such a
Center shall be conducted in a manner that is accessible to and usable
by individuals with disabilities.
``(I) The Director shall encourage the Centers to develop
practicalapplications for the findings of the research of the Centers.
``(J) In awarding grants under this paragraph, the Director shall
take into consideration the location of any proposed Center and the
appropriate geographic and regional allocation of such Centers.
``(K) To be eligible to receive a grant under this paragraph, each
such institution or provider described in subparagraph (A) shall--
``(i) be of sufficient size, scope, and quality to
effectively carry out the activities in an efficient manner
consistent with appropriate Federal and State law; and
``(ii) demonstrate the ability to carry out the training
activities either directly or through another entity that can
provide such training.
``(L) <<NOTE: Grants.>> The Director shall make grants under this
paragraph for periods of 5 years, except that the Director may make a
grant for a period of less than 5 years if--
``(i) the grant is made to a new recipient; or
``(ii) the grant supports new or innovative research.
``(M) Grants made under this paragraph shall be made on a
competitive basis. To be eligible to receive a grant under this
paragraph, a prospective grant recipient shall submit an application to
the Director at such time, in such manner, and containing such
information as the Director may require.
``(N) In conducting scientific peer review under section 202(f ) of
an application for the renewal of a grant made under this paragraph, the
peer review panel shall take into account the past performance of the
applicant in carrying out the grant and input from individuals with
disabilities and the individuals' representatives.
``(O) An institution or provider that receives a grant under this
paragraph to establish such a Center may not collect more than 15
percent of the amount of the grant received by the Center in indirect
cost charges.
``(3)(A) Research grants may be used for the establishment and
support of Rehabilitation Engineering Research Centers, operated by or
in collaboration with institutions of higher education or nonprofit
organizations, to conduct research or demonstration activities, and
training activities, regarding rehabilitation technology, including
rehabilitation engineering, assistive technology devices, and assistive
technology services, for the purposes of enhancing opportunities for
better meeting the needs of, and addressing the barriers confronted by,
individuals with disabilities in all aspects of their lives.
``(B) In order to carry out the purposes set forth in subparagraph
(A), such a Center shall carry out the research or demonstration
activities by--
``(i) developing and disseminating innovative methods of
applying advanced technology, scientific achievement, and
psychological and social knowledge to--
``(I) solve rehabilitation problems and remove
environmental barriers through planning and conducting
research,
[[Page 112 STAT.1177]]
including cooperative research with public or private
agencies and organizations, designed to produce new
scientific knowledge, and new or improved methods,
equipment, and devices; and
``(II) study new or emerging technologies, products,
or environments, and the effectiveness and benefits of
such technologies, products, or environments;
``(ii) demonstrating and disseminating--
``(I) innovative models for the delivery, to rural
and urban areas, of cost-effective rehabilitation
technology services that promote utilization of
assistive technology devices; and
``(II) other scientific research to assist in
meeting the employment and independent living needs of
individuals with significant disabilities; or
``(iii) conducting research or demonstration activities that
facilitate service delivery systems change by demonstrating,
evaluating, documenting, and disseminating--
``(I) consumer responsive and individual and family-
centered innovative models for the delivery to both
rural and urban areas, of innovative cost-effective
rehabilitation technology services that promote
utilization of rehabilitation technology; and
``(II) other scientific research to assist in
meeting the employment and independent living needs of,
and addressing the barriers confronted by, individuals
with disabilities, including individuals with
significant disabilities.
``(C) To the extent consistent with the nature and type of research
or demonstration activities described in subparagraph (B), each Center
established or supported through a grant made available under this
paragraph shall--
``(i) cooperate with programs established under the
Technology-Related Assistance for Individuals With Disabilities
Act of 1988 (29 U.S.C. 2201 et seq.) and other regional and
local programs to provide information to individuals with
disabilities and the individuals' representatives to--
``(I) increase awareness and understanding of how
rehabilitation technology can address their needs; and
``(II) increase awareness and understanding of the
range of options, programs, services, and resources
available, including financing options for the
technology and services covered by the area of focus of
the Center;
``(ii) provide training opportunities to individuals,
including individuals with disabilities, to become researchers
of rehabilitation technology and practitioners of rehabilitation
technology in conjunction with institutions of higher education
and nonprofit organizations; and
``(iii) respond, through research or demonstration
activities, to the needs of individuals with all types of
disabilities who may benefit from the application of technology
within the area of focus of the Center.
``(D)(i) In establishing Centers to conduct the research or
demonstration activities described in subparagraph (B)(iii), the
Director may establish one Center in each of the following areas of
focus:
``(I) Early childhood services, including early intervention
and family support.
[[Page 112 STAT.1178]]
``(II) Education at the elementary and secondary levels,
including transition from school to postschool activities.
``(III) Employment, including supported employment, and
reasonable accommodations and the reduction of environmental
barriers as required by the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.) and title V.
``(IV) Independent living, including transition from
institutional to community living, maintenance of community
living on leaving the workforce, self-help skills, and
activities of daily living.
``(ii) Each Center conducting the research or demonstration
activities described in subparagraph (B)(iii) shall have an advisory
committee, of which the majority of members are individuals with
disabilities who are users of rehabilitation technology, and the
individuals' representatives.
``(E) Grants made under this paragraph shall be made on a
competitive basis and shall be for a period of 5 years, except that the
Director may make a grant for a period of less than 5 years if--
``(i) the grant is made to a new recipient; or
``(ii) the grant supports new or innovative research.
``(F) To be eligible to receive a grant under this paragraph, a
prospective grant recipient shall submit an application to the Director
at such time, in such manner, and containing such information as the
Director may require.
``(G) Each Center established or supported through a grant made
available under this paragraph shall--
``(i) cooperate with State agencies and other local, State,
regional, and national programs and organizations developing or
delivering rehabilitation technology, including State programs
funded under the Technology-Related Assistance for Individuals
With Disabilities Act of 1988 (29 U.S.C. 2201 et seq.); and
``(ii) <<NOTE: Reports.>> prepare and submit to the
Director as part of an application for continuation of a grant,
or as a final report, a report that documents the outcomes of
the program of the Center in terms of both short- and long-term
impact on the lives of individuals with disabilities, and such
other information as may be requested by the Director.
``(4)(A) Research grants may be used to conduct a program for spinal
cord injury research, including conducting such a program by making
grants to public or private agencies and organizations to pay part or
all of the costs of special projects and demonstration projects for
spinal cord injuries, that will--
``(i) ensure widespread dissemination of research findings
among all Spinal Cord Injury Centers, to rehabilitation
practitioners, individuals with spinal cord injury, the
individuals' representatives, and organizations receiving
financial assistance under this paragraph;
``(ii) provide encouragement and support for initiatives and
new approaches by individual and institutional investigators;
and
``(iii) establish and maintain close working relationships
with other governmental and voluntary institutions and
organizations engaged in similar efforts in order to unify and
[[Page 112 STAT.1179]]
coordinate scientific efforts, encourage joint planning, and
promote the interchange of data and reports among spinal cord
injury investigations.
``(B) Any agency or organization carrying out a project or
demonstration project assisted by a grant under this paragraph that
provides services to individuals with spinal cord injuries shall--
``(i) establish, on an appropriate regional basis, a
multidisciplinary system of providing vocational and other
rehabilitation services, specifically designed to meet the
special needs of individuals with spinal cord injuries,
including acute care as well as periodic inpatient or outpatient
followup and services;
``(ii) demonstrate and evaluate the benefits to individuals
with spinal cord injuries served in, and the degree of cost-
effectiveness of, such a regional system;
``(iii) demonstrate and evaluate existing, new, and improved
methods and rehabilitation technology essential to the care,
management, and rehabilitation of individuals with spinal cord
injuries; and
``(iv) demonstrate and evaluate methods of community
outreach for individuals with spinal cord injuries and community
education in connection with the problems of such individuals in
areas such as housing, transportation, recreation, employment,
and community activities.
``(C) In awarding grants under this paragraph, the Director shall
take into account the location of any proposed Spinal Cord Injury Center
and the appropriate geographic and regional allocation of such Centers.
``(5) Research grants may be used to conduct a program for end-stage
renal disease research, to include support of projects and
demonstrations for providing special services (including transplantation
and dialysis), artificial kidneys, and supplies necessary for the
rehabilitation of individuals with such disease and which will--
``(A) ensure dissemination of research findings;
``(B) provide encouragement and support for initiatives and
new approaches by individuals and institutional investigators;
and
``(C) establish and maintain close working relationships
with other governmental and voluntary institutions and
organizations engaged in similar efforts,
in order to unify and coordinate scientific efforts, encourage joint
planning, and promote the interchange of data and reports among
investigators in the field of end-stage renal disease. No person shall
be selected to participate in such program who is eligible for services
for such disease under any other provision of law.
``(6) Research grants may be used to conduct a program for
international rehabilitation research, demonstration, and training for
the purpose of developing new knowledge and methods in the
rehabilitation of individuals with disabilities in the United States,
cooperating with and assisting in developing and sharing information
found useful in other nations in the rehabilitation of individuals with
disabilities, and initiating a program to exchange experts and technical
assistance in the field of rehabilitation of individuals with
disabilities with other nations as a means of increasing the levels of
skill of rehabilitation personnel.
[[Page 112 STAT.1180]]
``(7) Research grants may be used to conduct a research program
concerning the use of existing telecommunications systems (including
telephone, television, satellite, radio, and other similar systems)
which have the potential for substantially improving service delivery
methods, and the development of appropriate programming to meet the
particular needs of individuals with disabilities.
``(8) Research grants may be used to conduct a program of joint
projects with the National Institutes of Health, the National Institute
of Mental Health, the Health Services Administration, the Administration
on Aging, the National Science Foundation, the Veterans' Administration,
the Department of Health and Human Services, the National Aeronautics
and Space Administration, other Federal agencies, and private industry
in areas of joint interest involving rehabilitation.
``(9) Research grants may be used to conduct a program of research
related to the rehabilitation of children, or older individuals, who are
individuals with disabilities, including older American Indians who are
individuals with disabilities. Such research program may include
projects designed to assist the adjustment of, or maintain as residents
in the community, older workers who are individuals with disabilities on
leaving the workforce.
``(10) Research grants may be used to conduct a research program to
develop and demonstrate innovative methods to attract and retain
professionals to serve in rural areas in the rehabilitation of
individuals with disabilities, including individuals with significant
disabilities.
``(11) Research grants may be used to conduct a model research and
demonstration project designed to assess the feasibility of establishing
a center for producing and distributing to individuals who are deaf or
hard of hearing captioned video cassettes providing a broad range of
educational, cultural, scientific, and vocational programming.
``(12) Research grants may be used to conduct a model research and
demonstration program to develop innovative methods of providing
services for preschool age children who are individuals with
disabilities, including--
``(A) early intervention, assessment, parent counseling,
infant stimulation, early identification, diagnosis, and
evaluation of children who are individuals with significant
disabilities up to the age of five, with a special emphasis on
children who are individuals with significant disabilities up to
the age of three;
``(B) such physical therapy, language development,
pediatric, nursing, psychological, and psychiatric services as
are necessary for such children; and
``(C) appropriate services for the parents of such children,
including psychological and psychiatric services, parent
counseling, and training.
``(13) Research grants may be used to conduct a model research and
training program under which model training centers shall be established
to develop and use more advanced and effective methods of evaluating and
addressing the employment needs of individuals with disabilities,
including programs that--
``(A) provide training and continuing education for
personnel involved with the employment of individuals with
disabilities;
[[Page 112 STAT.1181]]
``(B) develop model procedures for testing and evaluating
the employment needs of individuals with disabilities;
``(C) develop model training programs to teach individuals
with disabilities skills which will lead to appropriate
employment;
``(D) develop new approaches for job placement of
individuals with disabilities, including new followup procedures
relating to such placement;
``(E) provide information services regarding education,
training, employment, and job placement for individuals with
disabilities; and
``(F) develop new approaches and provide information
regarding job accommodations, including the use of
rehabilitation engineering and assistive technology.
``(14) Research grants may be used to conduct a rehabilitation
research program under which financial assistance is provided in order
to--
``(A) test new concepts and innovative ideas;
``(B) demonstrate research results of high potential
benefits;
``(C) purchase prototype aids and devices for evaluation;
``(D) develop unique rehabilitation training curricula; and
``(E) be responsive to special initiatives of the Director.
No single grant under this paragraph may exceed $50,000 in any fiscal
year and all payments made under this paragraph in any fiscal year may
not exceed 5 percent of the amount available for this section to the
National Institute on Disability and Rehabilitation Research in any
fiscal year. Regulations and administrative procedures with respect to
financial assistance under this paragraph shall, to the maximum extent
possible, be expedited.
``(15) Research grants may be used to conduct studies of the
rehabilitation needs of American Indian populations and of effective
mechanisms for the delivery of rehabilitation services to Indians
residing on and off reservations.
``(16) Research grants may be used to conduct a demonstration
program under which one or more projects national in scope shall be
established to develop procedures to provide incentives for the
development, manufacturing, and marketing of orphan technological
devices, including technology transfer concerning such devices, designed
to enable individuals with disabilities to achieve independence and
access to gainful employment.
``(17)(A) Research grants may be used to conduct a research program
related to quality assurance in the area of rehabilitation technology.
``(B) Activities carried out under the research program may
include--
``(i) the development of methodologies to evaluate
rehabilitation technology products and services and the
dissemination of the methodologies to consumers and other
interested parties;
``(ii) identification of models for service provider
training and evaluation and certification of the effectiveness
of the models;
``(iii) identification and dissemination of outcome
measurement models for the assessment of rehabilitation
technology products and services; and
[[Page 112 STAT.1182]]
``(iv) development and testing of research-based tools to
enhance consumer decisionmaking about rehabilitation technology
products and services.
``(18) Research grants may be used to provide for research and
demonstration projects and related activities that explore the use and
effectiveness of specific alternative or complementary medical practices
for individuals with disabilities. Such projects and activities may
include projects and activities designed to--
``(A) determine the use of specific alternative or
complementary medical practices among individuals with
disabilities and the perceived effectiveness of the practices;
``(B) determine the specific information sources,
decisionmaking methods, and methods of payment used by
individuals with disabilities who access alternative or
complementary medical services;
``(C) develop criteria to screen and assess the validity of
research studies of such practices for individuals with
disabilities; and
``(D) determine the effectiveness of specific alternative or
complementary medical practices that show promise for promoting
increased functioning, prevention of secondary disabilities, or
other positive outcomes for individuals with certain types of
disabilities, by conducting controlled research studies.
``(c)(1) In carrying out evaluations of covered activities under
this section, the Director is authorized to make arrangements for site
visits to obtain information on the accomplishments of the projects.
``(2) The Director shall not make a grant under this section that
exceeds $500,000 unless the peer review of the grant application has
included a site visit.
``rehabilitation research advisory council
``Sec. 205. <<NOTE: 29 USC 765.>> (a) Establishment.--Subject to
the availability of appropriations, the Secretary shall establish in the
Department of Education a Rehabilitation Research Advisory Council
(referred to in this section as the `Council') composed of 12 members
appointed by the Secretary.
``(b) Duties.--The Council shall advise the Director with respect to
research priorities and the development and revision of the 5-year plan
required by section 202(h).
``(c) Qualifications.--Members of the Council shall be generally
representative of the community of rehabilitation professionals, the
community of rehabilitation researchers, the community of individuals
with disabilities, and the individuals' representatives. At least one-
half of the members shall be individuals with disabilities or the
individuals' representatives.
``(d) Terms of Appointment.--
``(1) Length of term.--Each member of the Council shall
serve for a term of up to 3 years, determined by the Secretary,
except that--
``(A) a member appointed to fill a vacancy occurring
prior to the expiration of the term for which a
predecessor was appointed, shall be appointed for the
remainder of such term; and
``(B) the terms of service of the members initially
appointed shall be (as specified by the Secretary) for
such
[[Page 112 STAT.1183]]
fewer number of years as will provide for the expiration
of terms on a staggered basis.
``(2) Number of terms.--No member of the Council may serve
more than two consecutive full terms. Members may serve after
the expiration of their terms until their successors have taken
office.
``(e) Vacancies.--Any vacancy occurring in the membership of the
Council shall be filled in the same manner as the original appointment
for the position being vacated. The vacancy shall not affect the power
of the remaining members to execute the duties of the Council.
``(f ) Payment and Expenses.--
``(1) Payment.--Each member of the Council who is not an
officer or full-time employee of the Federal Government shall
receive a payment of $150 for each day (including travel time)
during which the member is engaged in the performance of duties
for the Council. All members of the Council who are officers or
full-time employees of the United States shall serve without
compensation in addition to compensation received for their
services as officers or employees of the United States.
``(2) Travel expenses.--Each member of the Council may
receive travel expenses, including per diem in lieu of
subsistence, as authorized by section 5703 of title 5, United
States Code, for employees serving intermittently in the
Government service, for each day the member is engaged in the
performance of duties away from the home or regular place of
business of the member.
``(g) Detail of Federal Employees.--On the request of the Council,
the Secretary may detail, with or without reimbursement, any of the
personnel of the Department of Education to the Council to assist the
Council in carrying out its duties. Any detail shall not interrupt or
otherwise affect the civil service status or privileges of the Federal
employee.
``(h) Technical Assistance.--On the request of the Council, the
Secretary shall provide such technical assistance to the Council as the
Council determines to be necessary to carry out its duties.
``(i) Termination.--Section 14 of the Federal Advisory Committee Act
(5 U.S.C. App.) shall not apply with respect to the Council.''.
SEC. 406. <<NOTE: Grants. Contracts.>> PROFESSIONAL DEVELOPMENT AND
SPECIAL PROJECTS AND DEMONSTRATIONS.
Title III of the Rehabilitation Act of 1973 (29 U.S.C. 770 et seq.)
is amended to read as follows:
``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS
``SEC. 301. <<NOTE: 29 USC 771.>> DECLARATION OF PURPOSE AND
COMPETITIVE BASIS OF GRANTS AND CONTRACTS.
``(a) Purpose.--It is the purpose of this title to authorize grants
and contracts to--
``(1)(A) provide academic training to ensure that skilled
personnel are available to provide rehabilitation services to
[[Page 112 STAT.1184]]
individuals with disabilities through vocational, medical,
social, and psychological rehabilitation programs (including
supported employment programs), through economic and business
development programs, through independent living services
programs, and through client assistance programs; and
``(B) provide training to maintain and upgrade basic skills
and knowledge of personnel (including personnel specifically
trained to deliver services to individuals with disabilities
whose employment outcome is self-employment or telecommuting)
employed to provide state-of-the-art service delivery and
rehabilitation technology services;
``(2) conduct special projects and demonstrations that
expand and improve the provision of rehabilitation and other
services (including those services provided through community
rehabilitation programs) authorized under this Act, or that
otherwise further the purposes of this Act, including related
research and evaluation;
``(3) provide vocational rehabilitation services to
individuals with disabilities who are migrant or seasonal
farmworkers;
``(4) initiate recreational programs to provide recreational
activities and related experiences for individuals with
disabilities to aid such individuals in employment, mobility,
socialization, independence, and community integration; and
``(5) provide training and information to individuals with
disabilities and the individuals' representatives, and other
appropriate parties to develop the skills necessary for
individuals with disabilities to gain access to the
rehabilitation system and statewide workforce investment systems
and to become active decisionmakers in the rehabilitation
process.
``(b) Competitive Basis of Grants and Contracts.--The Secretary
shall ensure that all grants and contracts are awarded under this title
on a competitive basis.
``SEC. 302. <<NOTE: 29 USC 772.>> TRAINING.
``(a) Grants and Contracts for Personnel Training.--
``(1) Authority.--The Commissioner shall make grants to, and
enter into contracts with, States and public or nonprofit
agencies and organizations (including institutions of higher
education) to pay 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) personnel specifically trained in providing
employment assistance to individuals with disabilities
through job development and job placement services;
``(B) personnel specifically trained to identify,
assess, and meet the individual rehabilitation needs of
individuals with disabilities, including needs for
rehabilitation technology;
[[Page 112 STAT.1185]]
``(C) personnel specifically trained to deliver
services to individuals who may benefit from receiving
independent living services;
``(D) personnel specifically trained to deliver
services in the client assistance programs;
``(E) personnel specifically trained to deliver
services, through supported employment programs, to
individuals with a most significant disability; and
``(F) personnel specifically trained to deliver
services to individuals with disabilities pursuing self-
employment, business ownership, and telecommuting; and
``(G) personnel trained in performing other
functions necessary to the provision of vocational,
medical, social, and psychological rehabilitation
services, and other services provided under this Act.
``(2) Authority to provide scholarships.--Grants and
contracts under paragraph (1) may be expended for scholarships
and may include necessary stipends and allowances.
``(3) Related federal statutes.--In carrying out this
subsection, the Commissioner 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 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) in evaluative skills to determine whether an
individual with a disability may be served by the State
vocational rehabilitation program or another component
of a statewide workforce investment system; or
``(B) to assist individuals with disabilities
seeking assistance through one-stop delivery systems
described in section 134(c) of the Workforce Investment
Act of 1998.
``(5) Joint funding.--Training and other activities provided
under paragraph (4) for personnel may be jointly funded with the
Department of Labor, using funds made available under title I of
the Workforce Investment Act of 1998.
``(b) Grants and Contracts for Academic Degrees and
Academic Certificate Granting Training Projects.--
``(1) Authority.--
``(A) In general.--The Commissioner 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
[[Page 112 STAT.1186]]
shall target funds to areas determined under subsection
(e) to have shortages of qualified personnel.
``(B) Types of projects.--Academic training projects
described in this subsection may include--
``(i) projects to train personnel in the areas
of assisting and supporting individuals with
disabilities pursuing self-employment, business
ownership, and telecommuting, and of vocational
rehabilitation counseling, rehabilitation
technology, rehabilitation medicine,
rehabilitation nursing, rehabilitation social
work, rehabilitation psychiatry, rehabilitation
psychology, rehabilitation dentistry, physical
therapy, occupational therapy, speech pathology
and audiology, physical education, therapeutic
recreation, community rehabilitation programs, or
prosthetics and orthotics;
``(ii) projects to train personnel to
provide--
``(I) services to individuals with
specific disabilities or individuals
with disabilities who have specific
impediments to rehabilitation, including
individuals who are members of
populations that are unserved or
underserved by programs under this Act;
``(II) job development and job
placement services to individuals with
disabilities;
``(III) supported employment
services, including services of
employment specialists for individuals
with disabilities;
``(IV) specialized services for
individuals with significant
disabilities; or
``(V) recreation for individuals
with disabilities;
``(iii) projects to train personnel in other
fields contributing to the rehabilitation of
individuals with disabilities; and
``(iv) projects to train personnel in the use,
applications, and benefits of rehabilitation
technology.
``(2) Application.--No grant shall be awarded or contract
entered into under this subsection unless the applicant has
submitted to the Commissioner an application at such time, in
such form, in accordance with such procedures, and including
such information as the Secretary may require, including--
``(A) a description of how the designated State unit
or units will participate in the project to be funded
under the grant or contract, including, as appropriate,
participation on advisory committees, as practicum
sites, in curriculum development, and in other ways so
as to build closer relationships between the applicant
and the designated State unit and to encourage students
to pursue careers in public vocational rehabilitation
programs;
``(B) the identification of potential employers that
provide employment that meets the requirements of
paragraph (5)(A)(i); and
``(C) an assurance that data on the employment of
graduates or trainees who participate in the project is
accurate.
``(3) Limitation.--
``(A) In general.--Except as provided in
subparagraph (B), no grant or contract under this
subsection may be
[[Page 112 STAT.1187]]
used to provide any one course of study to an individual
for a period of more than 4 years.
``(B) Exception.--If a grant or contract recipient
under this subsection determines that an individual has
a disability which seriously affects the completion of
training under this subsection, the grant or contract
recipient may extend the period referred to in
subparagraph (A).
``(4) Authority to provide scholarships.--Grants and
contracts under paragraph (1) may be expanded to provide
services that include the provision of scholarships and
necessary stipends and allowances.
``(5) Agreements.--
``(A) Contents.--A recipient of a grant or contract
under this subsection shall provide assurances to the
Commissioner 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) maintain employment--
``(I) in a nonprofit rehabilitation
agency or related agency or in a State
rehabilitation agency or related agency,
including a professional corporation or
professional practice group through
which the individual has a service
arrangement with the designated State
agency;
``(II) on a full- or part-time
basis; and
``(III) for a period of not less
than the full-time equivalent of 2 years
for each year for which assistance under
this section was received by the
individual,
within a period, beginning after the recipient
completes the training for which the scholarship
was awarded, of not more than the sum of the
number of years in the period described in
subclause (III) and 2 additional years; and
``(ii) repay all or part of any scholarship
received, plus interest, if the individual does
not fulfill the requirements of clause (i),
except as the Commissioner by regulation may provide for
repayment exceptions and deferrals.
``(B) Enforcement.--The Commissioner 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, 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 at such time, in such form,
in accordance with such procedures, and containing such information as
the Commissioner may require. Any such application shall include a
detailed description of strategies that will be utilized to recruit and
train individuals so as
[[Page 112 STAT.1188]]
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 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. <<NOTE: Reports.>> The Commissioner
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, 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) for the establishment of interpreter
training programs; or
``(ii) to enable such agencies or
organizations to provide financial assistance for
ongoing interpreter training programs.
``(B) Geographic areas.--The Commissioner shall
award grants under this subsection for programs in
geographic areas throughout the United States that the
Commissioner considers appropriate to best carry out the
objectives of this section.
``(C) Priority.--In awarding grants under this
subsection, the Commissioner 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 may award grants
under this subsection through the use of--
``(i) amounts appropriated to carry out this
section; or
``(ii) pursuant to an agreement with the
Director of the Office of the Special Education
Program (established under section 603 of the
Individuals with Disabilities Education Act (as
amended by section 101 of the Individuals with
Disabilities Education Act Amendments of 1997
(Public Law 105-17))), amounts appropriated under
section 686 of the Individuals with Disabilities
Education Act.
``(2) Application.--A grant may not be awarded to an agency
or organization under paragraph (1) unless the agency
[[Page 112 STAT.1189]]
or organization has submitted an application to the Commissioner
at such time, in such form, in accordance with such procedures,
and containing such information as the Commissioner may require,
including--
``(A) a description of the manner in which an
interpreter training program will be developed and
operated during the 5-year period following the date on
which a grant is received by the applicant under this
subsection;
``(B) a demonstration of the applicant's capacity or
potential for providing training for interpreters for
individuals who are deaf or hard of hearing, and
individuals who are deaf-blind;
``(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 may establish for purposes of this
subsection; and
``(D) such other information as the Commissioner may
require.
``(g) Technical Assistance and In-Service Training.--
``(1) Technical assistance.--The Commissioner 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,
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) Projects.--Subject to subparagraph (B), at
least 15 percent of the sums appropriated to carry out
this section shall be allocated to designated State
agencies to be used, directly or indirectly, for
projects for in-service training for rehabilitation
personnel, consistent with the needs identified through
the comprehensive system for personnel development
required by section 101(a)(7), including projects
designed--
``(i) to address recruitment and retention of
qualified rehabilitation professionals;
``(ii) to provide for succession planning;
``(iii) to provide for leadership development
and capacity building; and
``(iv) for fiscal years 1999 and 2000, to
provide training regarding the Workforce
Investment Act of 1998 and the amendments to this
Act made by the Rehabilitation Act Amendments of
1998.
``(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
[[Page 112 STAT.1190]]
section, the Commissioner 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, 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.
``SEC. 303. <<NOTE: 29 USC 773.>> DEMONSTRATION AND TRAINING PROGRAMS.
``(a) Demonstration Projects To Increase Client Choice.--
``(1) Grants.--The Commissioner may make grants to States
and public or nonprofit agencies and organizations to pay all or
part of the costs of projects to demonstrate ways to increase
client choice in the rehabilitation process, including the
selection of providers of vocational rehabilitation services.
``(2) Use of funds.--An entity that receives a grant under
this subsection shall use the grant only--
``(A) for activities that are directly related to
planning, operating, and evaluating the demonstration
projects; and
``(B) to supplement, and not supplant, funds made
available from Federal and non-Federal sources for such
projects.
``(3) Application.--Any eligible entity that desires to
receive a grant under this subsection shall submit an
application at such time, in such manner, and containing such
information and assurances as the Commissioner may require,
including--
``(A) a description of--
``(i) how the entity intends to promote
increased client choice in the rehabilitation
process, including a description, if appropriate,
of how an applicant will determine the cost of any
service or product offered to an eligible client;
``(ii) how the entity intends to ensure that
any vocational rehabilitation service or related
service is provided by a qualified provider who is
accredited or meets such other quality assurance
and cost-control criteria as the State may
establish; and
``(iii) the outreach activities to be
conducted by the applicant to obtain eligible
clients; and
``(B) assurances that a written plan will be
established with the full participation of the client,
which plan shall, at a minimum, include--
``(i) a statement of the vocational
rehabilitation goals to be achieved;
``(ii) a statement of the specific vocational
rehabilitation services to be provided, the
projected dates for their initiation, and the
anticipated duration of each such service; and
``(iii) objective criteria, an evaluation
procedure, and a schedule, for determining whether
such goals are being achieved.
[[Page 112 STAT.1191]]
``(4) Award of grants.--In selecting entities to receive
grants under paragraph (1), the Commissioner shall take into
consideration--
``(A) the diversity of strategies used to increase
client choice, including selection among qualified
service providers;
``(B) the geographic distribution of projects; and
``(C) the diversity of clients to be served.
``(5) Records.--Entities that receive grants under paragraph
(1) shall maintain such records as the Commissioner may require
and comply with any request from the Commissioner for such
records.
``(6) Direct services.--At least 80 percent of the funds
awarded for any project under this subsection shall be used for
direct services, as specifically chosen by eligible clients.
``(7) Evaluation.--The Commissioner 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 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.
``(8) Definitions.--For the purposes of this subsection:
``(A) Direct services.--The term `direct services'
means vocational rehabilitation services, as described
in section 103(a).
``(B) Eligible client.--The term `eligible client'
means an individual with a disability, as defined in
section 7(20)(A), who is not currently receiving
services under an individualized plan for employment
established through a designated State unit.
``(b) Special Demonstration Programs.--
``(1) Grants; contracts.--The Commissioner, 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
determines appropriate, a for-profit organization. The
Commissioner 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 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
[[Page 112 STAT.1192]]
Commissioner may require, including, if the Commissioner
determines appropriate, a description of how the proposed
project or demonstration program--
``(A) is based on current research findings, which
may include research conducted by the National Institute
on Disability and Rehabilitation Research, the National
Institutes of Health, and other public or private
organizations; and
``(B) is of national significance.
``(4) Types of projects.--The programs that may be funded
under this subsection may include--
``(A) special projects and demonstrations of service
delivery;
``(B) model demonstration projects;
``(C) technical assistance projects;
``(D) systems change projects;
``(E) special studies and evaluations; and
``(F) dissemination and utilization activities.
``(5) Priority for competitions.--
``(A) In general.--In announcing competitions for
grants and contracts under this subsection, the
Commissioner shall give priority consideration to--
``(i) special projects and demonstration
programs of service delivery for adults who are
either low-functioning and deaf or low-functioning
and hard of hearing;
``(ii) supported employment, including
community-based supported employment programs to
meet the needs of individuals with the most
significant disabilities or to provide technical
assistance to States and community organizations
to improve and expand the provision of supported
employment services; and
``(iii) model transitional planning services
for youths with disabilities.
``(B) Additional competitions.--In announcing
competitions for grants and contracts under this
subsection, the Commissioner may require that applicants
address one or more of the following:
``(i) Age ranges.
``(ii) Types of disabilities.
``(iii) Types of services.
``(iv) Models of service delivery.
``(v) Stage of the rehabilitation process.
``(vi) The needs of underserved populations,
unserved and underserved areas, individuals with
significant disabilities, low-incidence disability
population or individuals residing in federally
designated empowerment zones and enterprise
communities.
``(vii) Expansion of employment opportunities
for individuals with disabilities.
``(viii) Systems change projects to promote
meaningful access of individuals with disabilities
to employment-related services under title I of
the Workforce Investment Act of 1998 and under
other Federal laws.
``(ix) Innovative methods of promoting
achievement of high-quality employment outcomes.
[[Page 112 STAT.1193]]
``(x) The demonstration of the effectiveness
of early intervention activities in improving
employment outcomes.
``(xi) Alternative methods of providing
affordable transportation services to individuals
with disabilities who are employed, seeking
employment, or receiving vocational rehabilitation
services from public or private organizations and
who reside in geographic areas in which public
transportation or paratransit service is not
available.
``(6) Use of funds for continuation awards.--The
Commissioner 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 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.
``(2) Use of grants.--An organization that receives a grant
to establish training and information programs under this
subsection shall use the grant to assist individuals with
disabilities, and the parents, family members, guardians,
advocates, or authorized representatives of the individuals--
``(A) to better understand vocational rehabilitation
and independent living programs and services;
``(B) to provide followup support for transition and
employment programs;
``(C) to communicate more effectively with
transition and rehabilitation personnel and other
relevant professionals;
``(D) to provide support in the development of the
individualized plan for employment;
``(E) to provide support and expertise in obtaining
information about rehabilitation and independent living
programs, services, and resources that are appropriate;
and
``(F) to understand the provisions of this Act,
particularly provisions relating to employment,
supported employment, and independent living.
``(3) Award of grants.--The Commissioner shall ensure that
grants under this subsection--
``(A) shall be distributed geographically to the
greatest extent possible throughout all States; and
``(B) shall be targeted to individuals with
disabilities, and the parents, family members,
guardians, advocates,
[[Page 112 STAT.1194]]
or authorized representatives of the individuals, in
both urban and rural areas or on a State or regional
basis.
``(4) Eligible organizations.--In order to receive a grant
under this subsection, an organization--
``(A) shall submit an application to the
Commissioner at such time, in such manner, and
containing such information as the Commissioner may
require, including information demonstrating the
capacity and expertise of the organization--
``(i) to coordinate training and information
activities with Centers for Independent Living;
``(ii) to coordinate and work closely with
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); and
``(iii) to effectively conduct the training
and information activities authorized under this
subsection;
``(B)(i) shall be governed by a board of directors--
``(I) that includes professionals in the field
of vocational rehabilitation; and
``(II) on which a majority of the members are
individuals with disabilities or the parents,
family members, guardians, advocates, or
authorized representatives of the individuals; or
``(ii)(I) shall have a membership that represents
the interests of individuals with disabilities; and
``(II) shall establish a special governing committee
that meets the requirements specified in subclauses (I)
and (II) of clause (i) to operate a training and
information program under this subsection; and
``(C) shall serve individuals with a full range of
disabilities, and the parents, family members,
guardians, advocates, or authorized representatives of
the individuals.
``(5) Consultation.--Each organization carrying out a
program receiving assistance under this subsection shall consult
with appropriate agencies that serve or assist individuals with
disabilities, and the parents, family members, guardians,
advocates, or authorized representatives of the individuals,
located in the jurisdiction served by the program.
``(6) Coordination.--The Commissioner shall provide
coordination and technical assistance by grant or cooperative
agreement for establishing, developing, and coordinating the
training and information programs. To the extent practicable,
such assistance shall be provided by the parent training and
information centers established 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) Quarterly review.--The board of directors or
special governing committee of an organization receiving
a grant under this subsection shall meet at least once
in each calendar quarter to review the training and
information program, and each such committee shall
[[Page 112 STAT.1195]]
directly advise the governing board regarding the views
and recommendations of the committee.
``(B) Review for grant renewal.--If a nonprofit
private organization requests the renewal of a grant
under this subsection, the board of directors or the
special governing committee shall prepare and submit to
the Commissioner a written review of the training and
information program conducted by the organization during
the preceding fiscal year.
``(d) Braille Training Programs.--
``(1) Establishment.--The Commissioner shall make grants to,
and enter into contracts with, States and public or nonprofit
agencies and organizations, including institutions of higher
education, to pay all or part of the cost of training in the use
of braille for personnel providing vocational rehabilitation
services or educational services to youth and adults who are
blind.
``(2) Projects.--Such grants shall be used for the
establishment or continuation of projects that may provide--
``(A) development of braille training materials;
``(B) in-service or pre-service training in the use
of braille, the importance of braille literacy, and
methods of teaching braille to youth and adults who are
blind; and
``(C) activities to promote knowledge and use of
braille and nonvisual access technology for blind youth
and adults through a program of training, demonstration,
and evaluation conducted with leadership of experienced
blind individuals, including the use of comprehensive,
state-of-the-art technology.
``(3) Application.--To be eligible to receive a grant, or
enter into a contract, under paragraph (1), an agency or
organization shall submit an application to the Commissioner at
such time, in such manner, and containing such information as
the Commissioner may require.
``(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.
``SEC. 304. <<NOTE: 29 USC 774.>> MIGRANT AND SEASONAL FARMWORKERS.
``(a) Grants.--
``(1) Authority.--The Commissioner, 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).
``(2) Eligible entities.--To be eligible to receive a grant
under paragraph (1), an entity shall be--
``(A) a State designated agency;
``(B) a nonprofit agency working in collaboration
with a State agency described in subparagraph (A); or
``(C) a local agency working in collaboration with a
State agency described in subparagraph (A).
[[Page 112 STAT.1196]]
``(3) Maintenance and transportation.--
``(A) In general.--Amounts provided under a grant
under this section may be used to provide for the
maintenance of and transportation for individuals and
family members described in paragraph (1) as necessary
for the rehabilitation of such individuals.
``(B) Requirement.--Maintenance payments under this
paragraph shall be provided in a manner consistent with
any maintenance payments provided to other individuals
with disabilities in the State under this Act.
``(4) Assurance of cooperation.--To be eligible to receive a
grant under this section an entity shall provide assurances
(satisfactory to the Commissioner) 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
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.
``SEC. 305. <<NOTE: 29 USC 775.>> RECREATIONAL PROGRAMS.
``(a) Grants.--
``(1) Authority.--
``(A) In general.--The Commissioner, 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.
``(B) Recreation programs.--The recreation programs
that may be funded using assistance provided under a
grant under this section may include vocational skills
development, leisure education, leisure networking,
leisure resource development, physical education and
sports, scouting and camping, 4-H activities,
construction of facilities for aquatic rehabilitation
therapy, music, dancing, handicrafts, art, and
homemaking. When possible and appropriate, such programs
and activities should be provided in settings with peers
who are not individuals with disabilities.
``(C) Design of program.--Programs and activities
carried out under this section shall be designed to
demonstrate ways in which such programs assist in
maximizing
[[Page 112 STAT.1197]]
the independence and integration of individuals with
disabilities.
``(2) Maximum term of grant.--A grant under this section
shall be made for a period of not more than 3 years.
``(3) Availability of nongrant resources.--
``(A) In general.--A grant may not be made to an
applicant under this section unless the applicant
provides assurances that, with respect to costs of the
recreation program to be carried out under the grant,
the applicant, to the maximum extent practicable, will
make available non-Federal resources (in cash or in-
kind) to pay the non-Federal share of such costs.
``(B) Federal share.--The Federal share of the costs
of the recreation programs carried out under this
section shall be--
``(i) with respect to the first year in which
assistance is provided under a grant under this
section, 100 percent;
``(ii) with respect to the second year in
which assistance is provided under a grant under
this section, 75 percent; and
``(iii) with respect to the third year in
which assistance is provided under a grant under
this section, 50 percent.
``(4) Application.--To be eligible to receive a grant under
this section, a State, agency, or organization shall submit an
application to the Commissioner at such time, in such manner,
and containing such information as the Commissioner may require,
including a description of--
``(A) the manner in which the findings and results
of the project to be funded under the grant,
particularly information that facilitates the
replication of the results of such projects, will be
made generally available; and
``(B) the manner in which the service program funded
under the grant will be continued after Federal
assistance ends.
``(5) Level of services.--Recreation programs funded under
this section shall maintain, at a minimum, the same level of
services over a 3-year project period.
``(6) Reports by grantees.--
``(A) Requirement.--The Commissioner shall require
that each recipient of a grant under this section
annually prepare and submit to the Commissioner a report
concerning the results of the activities funded under
the grant.
``(B) Limitation.--The Commissioner may not make
financial assistance available to a grant recipient for
a subsequent year until the Commissioner 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.
``SEC. 306. <<NOTE: 29 USC 776.>> MEASURING OF PROJECT OUTCOMES AND
PERFORMANCE.
``The Commissioner may require that recipients of grants under this
title submit information, including data, as determined by the
Commissioner to be necessary to measure project outcomes
[[Page 112 STAT.1198]]
and performance, including any data needed to comply with the Government
Performance and Results Act.''.
SEC. 407. NATIONAL COUNCIL ON DISABILITY.
Title IV of the Rehabilitation Act of 1973 (29 U.S.C. 780 et seq.)
is amended to read as follows:
``TITLE IV--NATIONAL COUNCIL ON DISABILITY
``establishment of national council on disability
``Sec. 400. <<NOTE: President. 29 USC 780.>> (a)(1)(A) There is
established within the Federal Government a National Council on
Disability (hereinafter in this title referred to as the `National
Council'), which shall be composed of fifteen members appointed by the
President, by and with the advice and consent of the Senate.
``(B) The President shall select members of the National Council
after soliciting recommendations from representatives of--
``(i) organizations representing a broad range of
individuals with disabilities; and
``(ii) organizations interested in individuals with
disabilities.
``(C) The members of the National Council shall be individuals with
disabilities, parents or guardians of individuals with disabilities, or
other individuals who have substantial knowledge or experience relating
to disability policy or programs. The members of the National Council
shall be appointed so as to be representative of individuals with
disabilities, national organizations concerned with individuals with
disabilities, providers and administrators of services to individuals
with disabilities, individuals engaged in conducting medical or
scientific research relating to individuals with disabilities, business
concerns, and labor organizations. A majority of the members of the
National Council shall be individuals with disabilities. The members of
the National Council shall be broadly representative of minority and
other individuals and groups.
``(2) The purpose of the National Council is to promote policies,
programs, practices, and procedures that--
``(A) guarantee equal opportunity for all individuals with
disabilities, regardless of the nature or severity of the
disability; and
``(B) empower individuals with disabilities to achieve
economic self-sufficiency, independent living, and inclusion and
integration into all aspects of society.
``(b)(1) Each member of the National Council shall serve for a term
of 3 years, except that the terms of service of the members initially
appointed after the date of enactment of the Rehabilitation,
Comprehensive Services, and Developmental Disabilities Amendments of
1978 shall be (as specified by the President) for such fewer number of
years as will provide for the expiration of terms on a staggered basis.
``(2)(A) No member of the National Council may serve more than two
consecutive full terms beginning on the date of commencement of the
first full term on the Council. Members may serve after the expiration
of their terms until their successors have taken office.
``(B) As used in this paragraph, the term `full term' means a term
of 3 years.
[[Page 112 STAT.1199]]
``(3) Any member appointed to fill a vacancy occurring before the
expiration of the term for which such member's predecessor was appointed
shall be appointed only for the remainder of such term.
``(c) <<NOTE: President.>> The President shall designate the
Chairperson from among the members appointed to the National Council.
The National Council shall meet at the call of the Chairperson, but not
less often than four times each year.
``(d) Eight members of the National Council shall constitute a
quorum and any vacancy in the National Council shall not affect its
power to function.
``duties of national council
``Sec. 401. <<NOTE: 29 USC 781.>> (a) The National Council shall--
``(1) provide advice to the Director with respect to the
policies and conduct of the National Institute on Disability and
Rehabilitation Research, including ways to improve research
concerning individuals with disabilities and the methods of
collecting and disseminating findings of such research;
``(2) provide advice to the Commissioner with respect to the
policies of and conduct of the Rehabilitation Services
Administration;
``(3) advise the President, the Congress, the Commissioner,
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;
``(4) provide advice regarding priorities for the activities
of the Interagency Disability Coordinating Council and review
the recommendations of such Council for legislative and
administrative changes to ensure that such recommendations are
consistent with the purposes of the Council to promote the full
integration, independence, and productivity of individuals with
disabilities;
``(5) review and evaluate on a continuing basis--
``(A) policies, programs, practices, and procedures
concerning individuals with disabilities conducted or
assisted by Federal departments and agencies, including
programs established or assisted under this Act or under
the Developmental Disabilities Assistance and Bill of
Rights Act; and
``(B) all statutes and regulations pertaining to
Federal programs which assist such individuals with
disabilities;
in order to assess the effectiveness of such policies, programs,
practices, procedures, statutes, and regulations in meeting the
needs of individuals with disabilities;
``(6) assess the extent to which such policies, programs,
practices, and procedures facilitate or impede the promotion of
the policies set forth in subparagraphs (A) and (B) of section
400(a)(2);
``(7) gather information about the implementation,
effectiveness, and impact of the Americans with Disabilities Act
of 1990 (42 U.S.C. 12101 et seq.);
``(8) make recommendations to the President, the Congress,
the Secretary, the Director of the National Institute on
Disability and Rehabilitation Research, and other officials of
Federal
[[Page 112 STAT.1200]]
agencies or other Federal entities, respecting ways to better
promote the policies set forth in section 400(a)(2);
``(9) provide to the Congress on a continuing basis advice,
recommendations, legislative proposals, and any additional
information that the National Council or the Congress deems
appropriate; and
``(10) review and evaluate on a continuing basis new and
emerging disability policy issues affecting individuals with
disabilities at the Federal, State, and local levels, and in the
private sector, including the need for and coordination of adult
services, access to personal assistance services, school reform
efforts and the impact of such efforts on individuals with
disabilities, access to health care, and policies that operate
as disincentives for the individuals to seek and retain
employment.
``(b)(1) <<NOTE: Deadline. Reports.>> Not later than October 31,
1998, and annually thereafter, the National Council shall prepare and
submit to the President and the appropriate committees of the Congress a
report entitled `National Disability Policy: A Progress Report'.
``(2) The report shall assess the status of the Nation in achieving
the policies set forth in section 400(a)(2), with particular focus on
the new and emerging issues impacting on the lives of individuals with
disabilities. The report shall present, as appropriate, available data
on health, housing, employment, insurance, transportation, recreation,
training, prevention, early intervention, and education. The report
shall include recommendations for policy change.
``(3) In determining the issues to focus on and the findings,
conclusions, and recommendations to include in the report, the National
Council shall seek input from the public, particularly individuals with
disabilities, representatives of organizations representing a broad
range of individuals with disabilities, and organizations and agencies
interested in individuals with disabilities.
``compensation of national council members
``Sec. 402. <<NOTE: 29 USC 782.>> (a) Members of the National
Council shall be entitled to receive compensation at a rate equal to the
rate of pay for level 4 of the Senior Executive Service Schedule under
section 5382 of title 5, United States Code, including travel time, for
each day they are engaged in the performance of their duties as members
of the National Council.
``(b) Members of the National Council who are full-time officers or
employees of the United States shall receive no additional pay on
account of their service on the National Council except for compensation
for travel expenses as provided under subsection (c) of this section.
``(c) While away from their homes or regular places of business in
the performance of services for the National Council, members of the
National Council shall be allowed travel expenses, including per diem in
lieu of subsistence, in the same manner as persons employed
intermittently in the Government service are allowed expenses under
section 5703 of title 5, United States Code.
``staff of national council
``Sec. 403. <<NOTE: 29 USC 783.>> (a)(1) The Chairperson of the
National Council may appoint and remove, without regard to the
provisions of title 5,
[[Page 112 STAT.1201]]
United States Code, governing appointments, the provisions of chapter 75
of such title (relating to adverse actions), the provisions of chapter
77 of such title (relating to appeals), or the provisions of chapter 51
and subchapter III of chapter 53 of such title (relating to
classification and General Schedule pay rates), an Executive Director to
assist the National Council to carry out its duties. The Executive
Director shall be appointed from among individuals who are experienced
in the planning or operation of programs for individuals with
disabilities.
``(2) The Executive Director is authorized to hire technical and
professional employees to assist the National Council to carry out its
duties.
``(b)(1) The National Council may procure temporary and intermittent
services to the same extent as is authorized by section 3109(b) of title
5, United States Code (but at rates for individuals not to 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).
``(2) The National Council may--
``(A) accept voluntary and uncompensated services,
notwithstanding the provisions of section 1342 of title 31,
United States Code;
``(B) in the name of the Council, solicit, accept, employ,
and dispose of, in furtherance of this Act, any money or
property, real or personal, or mixed, tangible or nontangible,
received by gift, devise, bequest, or otherwise; and
``(C) enter into contracts and cooperative agreements with
Federal and State agencies, private firms, institutions, and
individuals for the conduct of research and surveys, preparation
of reports and other activities necessary to the discharge of
the Council's duties and responsibilities.
``(3) Not more than 10 per centum of the total amounts available to
the National Council in each fiscal year may be used for official
representation and reception.
``(c) The Administrator of General Services shall provide to the
National Council on a reimbursable basis such administrative support
services as the Council may request.
``(d)(1) It shall be the duty of the Secretary of the Treasury to
invest such portion of the amounts made available under subsection
(a)(2)(B) as is not, in the Secretary's judgment, required to meet
current withdrawals. Such investments may be made only in interest-
bearing obligations of the United States or in obligations guaranteed as
to both principal and interest by the United States.
``(2) The amounts described in paragraph (1), and the interest on,
and the proceeds from the sale or redemption of, the obligations
described in paragraph (1) shall be available to the National Council to
carry out this title.
``administrative powers of national council
``Sec. 404. <<NOTE: 29 USC 784.>> (a) The National Council may
prescribe such bylaws and rules as may be necessary to carry out its
duties under this title.
``(b) The National Council may hold such hearings, sit and act at
such times and places, take such testimony, and receive such evidence as
it deems advisable.
[[Page 112 STAT.1202]]
``(c) The National Council may appoint advisory committees to assist
the National Council in carrying out its duties. The members thereof
shall serve without compensation.
``(d) The National Council may use the United States mails in the
same manner and upon the same conditions as other departments and
agencies of the United States.
``(e) The National Council may use, with the consent of the agencies
represented on the Interagency Disability Coordinating Council, and as
authorized in title V, such services, personnel, information, and
facilities as may be needed to carry out its duties under this title,
with or without reimbursement to such agencies.
``authorization of appropriations
``Sec. 405. <<NOTE: 29 USC 785.>> 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.''.
SEC. 408. RIGHTS AND ADVOCACY.
(a) Conforming Amendments to Rights and Advocacy Provisions.--
(1) Employment.--Section 501 (29 U.S.C. 791) is
amended--
(A) in the third sentence of subsection (a), by
striking ``President's Committees on Employment of the
Handicapped'' and inserting ``President's Committees on
Employment of People With Disabilities''; and
(B) in subsection (e), by striking ``individualized
written rehabilitation program'' and inserting
``individualized plan for employment''.
(2) Access board.--Section 502 (29 U.S.C. 792) is
amended--
(A) in subsection (a)(1), in the sentence following
subparagraph (B), by striking ``Chairperson'' and
inserting ``chairperson'';
(B) in subsection (b)--
(i) in paragraph (2), by striking
``guidelines'' and inserting ``information'';
(ii) by striking paragraph (3) and inserting
the following:
``(3) establish and maintain--
``(A) minimum guidelines and requirements for the
standards issued pursuant to the Act commonly known as
the Architectural Barriers Act of 1968;
``(B) minimum guidelines and requirements for the
standards issued pursuant to titles II and III of the
Americans with Disabilities Act of 1990;
``(C) guidelines for accessibility of
telecommunications equipment and customer premises
equipment under section 255 of the Telecommunications
Act of 1934 (47 U.S.C. 255); and
``(D) standards for accessible electronic and
information technology under section 508;'';
(iii) in paragraph (9), by striking ``; and''
and inserting a semicolon;
(iv) in paragraph (10), by striking the period
and inserting ``; and''; and
(v) by adding at the end the following:
[[Page 112 STAT.1203]]
``(11) carry out the responsibilities specified for the
Access Board in section 508.'';
(C) in subsection (d)(1), by striking ``procedures
under this section'' and inserting ``procedures under
this subsection'';
(D) in subsection (g)(2), by striking ``Committee on
Education and Labor'' and inserting ``Committee on
Education and the Workforce'';
(E) in subsection (h)(2)(A), by striking
``paragraphs (5) and (7)'' and inserting ``paragraphs
(2) and (4)''; and
(F) in subsection (i), by striking ``fiscal years
1993 through 1997'' and inserting ``fiscal years 1999
through 2003''.
(3) Federal grants and contracts.--Section 504(a) (29 U.S.C.
794(a)) is amended in the first sentence by striking ``section
7(8)'' and inserting ``section 7(20)''.
(4) Secretarial responsibilities.--Section 506(a) (29 U.S.C.
794b(a)) is amended--
(A) by striking the second sentence and inserting
the following: ``Any concurrence of the Access Board
under paragraph (2) shall reflect its consideration of
cost studies carried out by States.''; and
(B) in the second sentence of subsection (c), by
striking ``provided under this paragraph'' and inserting
``provided under this subsection''.
(b) Electronic and Information Technology Regulations.--Section 508
(29 U.S.C. 794d) is amended to read as follows:
``SEC. 508. ELECTRONIC AND INFORMATION TECHNOLOGY.
``(a) Requirements for Federal Departments and
Agencies.--
``(1) Accessibility.--
``(A) Development, procurement, maintenance, or use
of electronic and information technology.--When
developing, procuring, maintaining, or using electronic
and information technology, each Federal department or
agency, including the United States Postal Service,
shall ensure, unless an undue burden would be imposed on
the department or agency, that the electronic and
information technology allows, regardless of the type of
medium of the technology--
``(i) individuals with disabilities who are
Federal employees to have access to and use of
information and data that is comparable to the
access to and use of the information and data by
Federal employees who are not individuals with
disabilities; and
``(ii) individuals with disabilities who are
members of the public seeking information or
services from a Federal department or agency to
have access to and use of information and data
that is comparable to the access to and use of the
information and data by such members of the public
who are not individuals with disabilities.
``(B) Alternative means efforts.--When development,
procurement, maintenance, or use of electronic and
information technology that meets the standards
published by the Access Board under paragraph (2) would
impose
[[Page 112 STAT.1204]]
an undue burden, the Federal department or agency shall
provide individuals with disabilities covered by
paragraph (1) with the information and data involved by
an alternative means of access that allows the
individual to use the information and data.
``(2) Electronic and information technology standards.--
``(A) <<NOTE: Deadline. Publication.>> In
general.--Not later than 18 months after the date of
enactment of the Rehabilitation Act Amendments of 1998,
the Architectural and Transportation Barriers Compliance
Board (referred to in this section as the `Access
Board'), after consultation with the Secretary of
Education, the Administrator of General Services, the
Secretary of Commerce, the Chairman of the Federal
Communications Commission, the Secretary of Defense, and
the head of any other Federal department or agency that
the Access Board determines to be appropriate, including
consultation on relevant research findings, and after
consultation with the electronic and information
technology industry and appropriate public or nonprofit
agencies or organizations, including organizations
representing individuals with disabilities, shall issue
and publish standards setting forth--
``(i) for purposes of this section, a
definition of electronic and information
technology that is consistent with the definition
of information technology specified in section
5002(3) of the Clinger-Cohen Act of 1996 (40
U.S.C. 1401(3)); and
``(ii) the technical and functional
performance criteria necessary to implement the
requirements set forth in paragraph (1).
``(B) Review and amendment.--The Access Board shall
periodically review and, as appropriate, amend the
standards required under subparagraph (A) to reflect
technological advances or changes in electronic and
information technology.
``(3) <<NOTE: Deadlines. Regulations.>> Incorporation of
standards.--Not later than 6 months after the Access Board
publishes the standards required under paragraph (2), the
Federal Acquisition Regulatory Council shall revise the Federal
Acquisition Regulation and each Federal department or agency
shall revise the Federal procurement policies and directives
under the control of the department or agency to incorporate
those standards. Not later than 6 months after the Access Board
revises any standards required under paragraph (2), the Council
shall revise the Federal Acquisition Regulation and each
appropriate Federal department or agency shall revise the
procurement policies and directives, as necessary, to
incorporate the revisions.
``(4) Acquisition planning.--In the event that a Federal
department or agency determines that compliance with the
standards issued by the Access Board under paragraph (2)
relating to procurement imposes an undue burden, the
documentation by the department or agency supporting the
procurement shall explain why compliance creates an undue
burden.
``(5) Exemption for national security systems.--This section
shall not apply to national security systems, as that
[[Page 112 STAT.1205]]
term is defined in section 5142 of the Clinger-Cohen Act of 1996
(40 U.S.C. 1452).
``(6) Construction.--
``(A) Equipment.--In a case in which the Federal
Government provides access to the public to information
or data through electronic and information technology,
nothing in this section shall be construed to require a
Federal department or agency--
``(i) to make equipment owned by the Federal
Government available for access and use by
individuals with disabilities covered by paragraph
(1) at a location other than that where the
electronic and information technology is provided
to the public; or
``(ii) to purchase equipment for access and
use by individuals with disabilities covered by
paragraph (1) at a location other than that where
the electronic and information technology is
provided to the public.
``(B) Software and peripheral devices.--Except as
required to comply with standards issued by the Access
Board under paragraph (2), nothing in paragraph (1)
requires the installation of specific accessibility-
related software or the attachment of a specific
accessibility-related peripheral device at a workstation
of a Federal employee who is not an individual with a
disability.
``(b) Technical Assistance.--The Administrator of General Services
and the Access Board shall provide technical assistance to individuals
and Federal departments and agencies concerning the requirements of this
section.
``(c) <<NOTE: Deadline. Reports.>> Agency Evaluations.--Not later
than 6 months after the date of enactment of the Rehabilitation Act
Amendments of 1998, the head of each Federal department or agency shall
evaluate the extent to which the electronic and information technology
of the department or agency is accessible to and usable by individuals
with disabilities described in subsection (a)(1), compared to the access
to and use of the technology by individuals described in such subsection
who are not individuals with disabilities, and submit a report
containing the evaluation to the Attorney General.
``(d) Reports.--
``(1) <<NOTE: Deadlines.>> Interim report.--Not later than
18 months after the date of enactment of the Rehabilitation Act
Amendments of 1998, the Attorney General shall prepare and
submit to the President a report containing information on and
recommendations regarding the extent to which the electronic and
information technology of the Federal Government is accessible
to and usable by individuals with disabilities described in
subsection (a)(1).
``(2) Biennial reports.--Not later than 3 years after the
date of enactment of the Rehabilitation Act Amendments of 1998,
and every 2 years thereafter, the Attorney General shall prepare
and submit to the President and Congress a report containing
information on and recommendations regarding the state of
Federal department and agency compliance with the requirements
of this section, including actions regarding individual
complaints under subsection (f ).
``(e) Cooperation.--Each head of a Federal department or agency
(including the Access Board, the Equal Employment Opportunity
Commission, and the General Services Administration) shall
[[Page 112 STAT.1206]]
provide to the Attorney General such information as the Attorney General
determines is necessary to conduct the evaluations under subsection (c)
and prepare the reports under subsection (d).
``(f ) Enforcement.--
``(1) General.--
``(A) <<NOTE: Effective date.>> Complaints.--
Effective 2 years after the date of enactment of the
Rehabilitation Act Amendments of 1998, any individual
with a disability may file a complaint alleging that a
Federal department or agency fails to comply with
subsection (a)(1) in providing electronic and
information technology.
``(B) Application.--This subsection shall apply only
to electronic and information technology that is
procured by a Federal department or agency not less than
2 years after the date of enactment of the
Rehabilitation Act Amendments of 1998.
``(2) Administrative complaints.--Complaints filed under
paragraph (1) shall be filed with the Federal department or
agency alleged to be in noncompliance. The Federal department or
agency receiving the complaint shall apply the complaint
procedures established to implement section 504 for resolving
allegations of discrimination in a federally conducted program
or activity.
``(3) Civil actions.--The remedies, procedures, and rights
set forth in sections 505(a)(2) and 505(b) shall be the
remedies, procedures, and rights available to any individual
with a disability filing a complaint under paragraph (1).
``(g) Application to Other Federal Laws.--This section shall not be
construed to limit any right, remedy, or procedure otherwise available
under any provision of Federal law (including sections 501 through 505)
that provides greater or equal protection for the rights of individuals
with disabilities than this section.''.
(c) Protection and Advocacy of Individual Rights.--Section 509 (29
U.S.C. 794e) is amended to read as follows:
``SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.
``(a) Purpose and Construction.--
``(1) Purpose.--The purpose of this section is to support a
system in each State to protect the legal and human rights of
individuals with disabilities who--
``(A) need services that are beyond the scope of
services authorized to be provided by the client
assistance program under section 112; and
``(B)(i) are ineligible for protection and advocacy
programs under part C of the Developmental Disabilities
Assistance and Bill of Rights Act (42 U.S.C. 6041 et
seq.) because the individuals do not have a
developmental disability, as defined in section 102 of
such Act (42 U.S.C. 6002); and
``(ii) are ineligible for services under the
Protection and Advocacy for Mentally Ill Individuals Act
of 1986 (42 U.S.C. 10801 et seq.) because the
individuals are not individuals with mental illness, as
defined in section 102 of such Act (42 U.S.C. 10802).
``(2) Construction.--This section shall not be construed to
require the provision of protection and advocacy services that
can be provided under the Technology-Related Assistance
[[Page 112 STAT.1207]]
for Individuals With Disabilities Act of 1988 (42 U.S.C. 2201 et
seq.).
``(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 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 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 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 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 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.
``(B) Minimums.--Subject to the availability of
appropriations to carry out this section, and except as
provided in paragraph (4), the allotment to any system
under subparagraph (A) shall be not less than $100,000
or \1/3\ of 1 percent of the remainder for the fiscal
year for which the allotment is made, whichever is
greater, and the allotment to any system under this
section for any fiscal year that is less than $100,000
or \1/3\ of 1 percent of such remainder shall be
increased to the greater of the two amounts.
``(4) Systems within other jurisdictions.--
``(A) In general.--For the purposes of paragraph
(3)(B), Guam, American Samoa, the United States Virgin
Islands, and the Commonwealth of the Northern Mariana
Islands shall not be considered to be States.
``(B) Allotment.--The eligible system within a
jurisdiction described in subparagraph (A) shall be
allotted
[[Page 112 STAT.1208]]
under paragraph (3)(A) not less than $50,000 for the
fiscal year for which the allotment is made.
``(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 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 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 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 shall make
such amount available for carrying out the provisions of this section to
one or more of the systems that the Commissioner determines will be able
to use additional amounts during such year for carrying out such
provisions. Any amount made available to a 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, at such time, in such form and manner, and containing such
information and assurances as the Commissioner determines necessary to
meet the requirements of this section, including assurances that the
eligible system will--
``(1) have in effect a system to protect and advocate the
rights of individuals with disabilities;
``(2) have the same general authorities, including access to
records and program income, as are set forth in part C of the
Developmental Disabilities Assistance and Bill of Rights Act (42
U.S.C. 6041 et seq.);
``(3) have the authority to pursue legal, administrative,
and other appropriate remedies or approaches to ensure the
protection of, and advocacy for, the rights of such individuals
within the State or the American Indian consortium who are
individuals described in subsection (a)(1);
``(4) provide information on and make referrals to programs
and services addressing the needs of individuals with
disabilities in the State or the American Indian consortium;
[[Page 112 STAT.1209]]
``(5) develop a statement of objectives and priorities on an
annual basis, and provide to the public, including individuals
with disabilities and, as appropriate, the individuals'
representatives, an opportunity to comment on the objectives and
priorities established by, and activities of, the system
including--
``(A) the objectives and priorities for the
activities of the system for each year and the rationale
for the establishment of such objectives and priorities;
and
``(B) the coordination of programs provided through
the system under this section with the advocacy programs
of the client assistance program under section 112, the
State long-term care ombudsman program established under
the Older Americans Act of 1965 (42 U.S.C. 3001 et
seq.), the Developmental Disabilities Assistance and
Bill of Rights Act (42 U.S.C. 6000 et seq.), and the
Protection and Advocacy for Mentally Ill Individuals Act
of 1986 (42 U.S.C. 10801 et seq.);
``(6) <<NOTE: Procedures.>> establish a grievance procedure
for clients or prospective clients of the system to ensure that
individuals with disabilities are afforded equal opportunity to
access the services of the system; and
``(7) provide assurances to the Commissioner 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 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.
``(2) Carryover.--Any amount paid to an eligible system that
serves a State or American Indian consortium for a fiscal year
that remains unobligated at the end of such year shall remain
available to such system that serves the State or American
Indian consortium for obligation during the next fiscal year for
the purposes for which such amount was paid.
``(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 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.
``(i) Administrative Cost.--In any State in which an eligible system
is located within a State agency, a State may use a portion of any
allotment under subsection (c) for the cost of the administration of the
system required by this section. Such portion may not exceed 5 percent
of the allotment.
``( j) Delegation.--The Commissioner may delegate the administration
of this program to the Commissioner of the Administration on
Developmental Disabilities within the Department of Health and Human
Services.
``(k) Report.--The Commissioner shall annually prepare and submit to
the Committee on Education and the Workforce of the
[[Page 112 STAT.1210]]
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.
``(m) Definitions.--As used in this section:
``(1) Eligible system.--The term `eligible system' means a
protection and advocacy system that is established under part C
of the Developmental Disabilities Assistance and Bill of Rights
Act (42 U.S.C. 6041 et seq.) and that meets the requirements of
subsection (f ).
``(2) American indian consortium.--The term `American Indian
consortium' means a consortium established as described in
section 142 of the Developmental Disabilities Assistance and
Bill of Rights Act (42 U.S.C. 6042).''.
SEC. 409. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES.
Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795 et seq.)
is amended to read as follows:
``TITLE VI-- <<NOTE: Employment Opportunities for Individuals With
Disabilities Act.>> EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH
DISABILITIES
``short title
``Sec. 601. <<NOTE: 29 USC 701 note.>> This title may be cited as
the `Employment Opportunities for Individuals With Disabilities Act'.
``Part A--Projects With Industry
``projects with industry
``Sec. 611. <<NOTE: 29 USC 795.>> (a)(1) The purpose of this part
is to create and expand job and career opportunities for individuals
with disabilities in the competitive labor market by engaging the talent
and leadership of private industry as partners in the rehabilitation
process, to identify competitive job and career opportunities and the
skills needed to perform such jobs, to create practical job and career
readiness and training programs, and to provide job placements and
career advancement.
``(2) The Commissioner, in consultation with the 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) provide for the establishment of business advisory
councils, that shall--
``(i) be comprised of--
``(I) representatives of private industry,
business concerns, and organized labor;
[[Page 112 STAT.1211]]
``(II) individuals with disabilities and
representatives of individuals with disabilities;
and
``(III) a representative of the appropriate
designated State unit;
``(ii) identify job and career availability within
the community, consistent with the current and projected
local employment opportunities identified by the local
workforce investment board for the community under
section 118(b)(1)(B) of the Workforce Investment Act of
1998;
``(iii) identify the skills necessary to perform the
jobs and careers identified; and
``(iv) prescribe training programs designed to
develop appropriate job and career skills, or job
placement programs designed to identify and develop job
placement and career advancement opportunities, for
individuals with disabilities in fields related to the
job and career availability identified under clause
(ii);
``(B) provide job development, job placement, and career
advancement services;
``(C) to the extent appropriate, provide for--
``(i) training in realistic work settings in order
to prepare individuals with disabilities for employment
and career advancement in the competitive market; and
``(ii) to the extent practicable, the modification
of any facilities or equipment of the employer involved
that are used primarily by individuals with
disabilities, except that a project shall not be
required to provide for such modification if the
modification is required as a reasonable accommodation
under the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.); and
``(D) provide individuals with disabilities with such
support services as may be required in order to maintain the
employment and career advancement for which the individuals have
received training under this part.
``(3)(A) An individual shall be eligible for services described in
paragraph (2) if the individual is determined to be an individual
described in section 102(a)(1), and if the determination is made in a
manner consistent with section 102(a).
``(B) Such a determination may be made by the recipient of a grant
under this part, to the extent the determination is appropriate and
available and consistent with the requirements of section 102(a).
``(4) <<NOTE: Contracts.>> The Commissioner shall enter into an
agreement with the grant recipient regarding the establishment of the
project. Any agreement shall be jointly developed by the Commissioner,
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 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 under
subsection (d), and, in conducting the review and
[[Page 112 STAT.1212]]
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.
``(6) The Commissioner may include, as part of agreements with grant
recipients, authority for such grant recipients to provide technical
assistance to--
``(A) assist employers in hiring individuals with
disabilities; or
``(B) improve or develop relationships between--
``(i) grant recipients or prospective grant
recipients; and
``(ii) employers or organized labor; or
``(C) assist employers in understanding and meeting the
requirements of the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.) as the Act relates to employment of
individuals with disabilities.
``(b) No payment shall be made by the Commissioner under any
agreement with a grant recipient entered into under subsection (a)
unless such agreement--
``(1) provides an assurance that individuals with
disabilities placed under such agreement shall receive at least
the applicable minimum wage;
``(2) provides an assurance that any individual with a
disability placed under this part shall be afforded terms and
benefits of employment equal to terms and benefits that are
afforded to the similarly situated nondisabled co-workers of the
individual, and that such individuals with disabilities shall
not be segregated from their co-workers; and
``(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.
``(c) Payments under this section with respect to any project may
not exceed 80 per centum of the costs of the project.
``(d)(1) <<NOTE: Standards.>> The Commissioner 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 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) <<NOTE: Grants.>> 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 at such time,
in such manner, and containing such information as the Commissioner may
require.
``(2) The Commissioner 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 shall award
grants under this section to new projects that will serve individuals
with disabilities in States, portions of States,
[[Page 112 STAT.1213]]
Indian tribes, or tribal organizations, that are currently unserved or
underserved by projects.
``(f )(1) <<NOTE: Federal Register, publication.>> The Commissioner
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) <<NOTE: Reports.>> Each grant recipient shall report to the
Commissioner 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 shall annually conduct onsite compliance
reviews of at least 15 percent of grant recipients. The Commissioner
shall select grant recipients for review on a random basis.
``(B) The Commissioner shall use the indicators in determining
compliance with the evaluation standards.
``(C) The Commissioner shall ensure that at least one member of a
team conducting such a review shall be an individual who--
``(i) is not an employee of the Federal Government; and
``(ii) has experience or expertise in conducting projects.
``(D) The Commissioner shall ensure that--
``(i) a representative of the appropriate designated State
unit shall participate in the review; and
``(ii) no person shall participate in the review of a grant
recipient if--
``(I) the grant recipient provides any direct
financial benefit to the reviewer; or
``(II) participation in the review would give the
appearance of a conflict of interest.
``(4) In making a determination concerning any subsequent grant
under this section, the Commissioner shall consider the past performance
of the applicant, if applicable. The Commissioner 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) <<NOTE: Reports.>> Each fiscal year the Commissioner 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 may identify individual grant
recipients in the analysis. In addition, the Commissioner shall report
the results of onsite compliance reviews, identifying individual grant
recipients.
``(g) The Commissioner may provide, directly or by way of grant,
contract, or cooperative agreement, technical assistance to--
``(1) entities conducting projects for the purpose of
assisting such entities in--
``(A) the improvement of or the development of
relationships with private industry or labor; or
``(B) the improvement of relationships with State
vocational rehabilitation agencies; and
``(2) entities planning the development of new projects.
``(h) As used in this section:
``(1) The term `agreement' means an agreement described in
subsection (a)(4).
``(2) The term `project' means a Project With Industry
established under subsection (a)(2).
``(3) The term `grant recipient' means a recipient of a
grant under subsection (a)(2).
[[Page 112 STAT.1214]]
``authorization of appropriations
``Sec. 612. <<NOTE: 29 USC 795a.>> 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.
``Part B--Supported Employment Services for Individuals With the Most
Significant Disabilities
``purpose
``Sec. 621. <<NOTE: 29 USC 795g.>> It is the purpose of this part
to authorize allotments, in addition to grants for vocational
rehabilitation services under title I, to assist States in developing
collaborative programs with appropriate entities to provide supported
employment services for individuals with the most significant
disabilities to enable such individuals to achieve the employment
outcome of supported employment.
``allotments
``Sec. 622. <<NOTE: 29 USC 795h.>> (a) In General.--
``(1) States.--The Secretary shall allot the sums
appropriated for each fiscal year to carry out this part among
the States on the basis of relative population of each State,
except that--
``(A) no State shall receive less than $250,000, or
\1/3\ of 1 percent of the sums appropriated for the
fiscal year for which the allotment is made, whichever
is greater; and
``(B) if the sums appropriated to carry out this
part for the fiscal year exceed by $1,000,000 or more
the sums appropriated to carry out this part in fiscal
year 1992, no State shall receive less than $300,000, or
\1/3\ of 1 percent of the sums appropriated for the
fiscal year for which the allotment is made, whichever
is greater.
``(2) Certain territories.--
``(A) In general.--For the purposes of this
subsection, Guam, American Samoa, the United States
Virgin Islands, and the Commonwealth of the Northern
Mariana Islands shall not be considered to be States.
``(B) Allotment.--Each jurisdiction described in
subparagraph (A) shall be allotted not less than one-
eighth of one percent of the amounts appropriated for
the fiscal year for which the allotment is made.
``(b) Reallotment.--Whenever the Commissioner determines that any
amount of an allotment to a State for any fiscal year will not be
expended by such State for carrying out the provisions of this part, the
Commissioner shall make such amount available for carrying out the
provisions of this part to one or more of the States that the
Commissioner determines will be able to use additional amounts during
such year for carrying out such provisions. Any amount made available to
a State for any fiscal year pursuant to the preceding sentence shall,
for the purposes of this section, be regarded as an increase in the
allotment of the State (as determined under the preceding provisions of
this section) for such year.
[[Page 112 STAT.1215]]
``availability of services
``Sec. 623. <<NOTE: 29 USC 795i.>> Funds provided under this part
may be used to provide supported employment services to individuals who
are eligible under this part. Funds provided under this part, or title
I, may not be used to provide extended services to individuals who are
eligible under this part or title I.
``eligibility
``Sec. 624. <<NOTE: 29 USC 795j.>> An individual shall be eligible
under this part to receive supported employment services authorized
under this Act if--
``(1) the individual is eligible for vocational
rehabilitation services;
``(2) the individual is determined to be an individual with
a most significant disability; and
``(3) a comprehensive assessment of rehabilitation needs of
the individual described in section 7(2)(B), including an
evaluation of rehabilitation, career, and job needs, identifies
supported employment as the appropriate employment outcome for
the individual.
``state plan
``Sec. 625. <<NOTE: 29 USC 795k.>> (a) State Plan Supplements.--To
be eligible for an allotment under this part, a State shall submit to
the Commissioner, as part of the State plan under section 101, a State
plan supplement for providing supported employment services authorized
under this Act to individuals who are eligible under this Act to receive
the services. Each State shall make such annual revisions in the plan
supplement as may be necessary.
``(b) Contents.--Each such plan supplement shall--
``(1) designate each designated State agency as the agency
to administer the program assisted under this part;
``(2) summarize the results of the comprehensive, statewide
assessment conducted under section 101(a)(15)(A)(i), with
respect to the rehabilitation needs of individuals with
significant disabilities and the need for supported employment
services, including needs related to coordination;
``(3) describe the quality, scope, and extent of supported
employment services authorized under this Act to be provided to
individuals who are eligible under this Act to receive the
services and specify the goals and plans of the State with
respect to the distribution of funds received under section 622;
``(4) demonstrate evidence of the efforts of the designated
State agency to identify and make arrangements (including
entering into cooperative agreements) with other State agencies
and other appropriate entities to assist in the provision of
supported employment services;
``(5) demonstrate evidence of the efforts of the designated
State agency to identify and make arrangements (including
entering into cooperative agreements) with other public or
nonprofit agencies or organizations within the State, employers,
natural supports, and other entities with respect to the
provision of extended services;
``(6) provide assurances that--
[[Page 112 STAT.1216]]
``(A) funds made available under this part will only
be used to provide supported employment services
authorized under this Act to individuals who are
eligible under this part to receive the services;
``(B) the comprehensive assessments of individuals
with significant disabilities conducted under section
102(b)(1) and funded under title I will include
consideration of supported employment as an appropriate
employment outcome;
``(C) an individualized plan for employment, as
required by section 102, will be developed and updated
using funds under title I in order to--
``(i) specify the supported employment
services to be provided;
``(ii) specify the expected extended services
needed; and
``(iii) identify the source of extended
services, which may include natural supports, or
to the extent that it is not possible to identify
the source of extended services at the time the
individualized plan for employment is developed, a
statement describing the basis for concluding that
there is a reasonable expectation that such
sources will become available;
``(D) the State will use funds provided under this
part only to supplement, and not supplant, the funds
provided under title I, in providing supported
employment services specified in the individualized plan
for employment;
``(E) services provided under an individualized plan
for employment will be coordinated with services
provided under other individualized plans established
under other Federal or State programs;
``(F) to the extent jobs skills training is
provided, the training will be provided on site; and
``(G) supported employment services will include
placement in an integrated setting for the maximum
number of hours possible based on the unique strengths,
resources, priorities, concerns, abilities,
capabilities, interests, and informed choice of
individuals with the most significant disabilities;
``(7) provide assurances that the State agencies designated
under paragraph (1) will expend not more than 5 percent of the
allotment of the State under this part for administrative costs
of carrying out this part; and
``(8) contain such other information and be submitted in
such manner as the Commissioner may require.
``restriction
``Sec. 626. <<NOTE: 29 USC 795l.>> Each State agency designated
under section 625(b)(1) shall collect the information required by
section 101(a)(10) separately for eligible individuals receiving
supported employment services under this part and for eligible
individuals receiving supported employment services under title I.
``savings provision
``Sec. 627. <<NOTE: 29 USC 795m.>> (a) Supported Employment
Services.--Nothing in this Act shall be construed to prohibit a State
from providing supported employment services in accordance with the
State plan
[[Page 112 STAT.1217]]
submitted under section 101 by using funds made available through a
State allotment under section 110.
``(b) Postemployment Services.--Nothing in this part shall be
construed to prohibit a State from providing discrete postemployment
services in accordance with the State plan submitted under section 101
by using funds made available through a State allotment under section
110 to an individual who is eligible under this part.
``authorization of appropriations
``Sec. 628. <<NOTE: 29 USC 795n.>> 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.''.
SEC. 410. INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING.
Title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796 et seq.)
is amended to read as follows:
``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING
``CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES
``PART A--GENERAL PROVISIONS
``SEC. 701. <<NOTE: 29 USC 796.>> PURPOSE.
``The purpose of this chapter is to promote a philosophy of
independent living, including a philosophy of consumer control, peer
support, self-help, self-determination, equal access, and individual and
system advocacy, in order to maximize the leadership, empowerment,
independence, and productivity of individuals with disabilities, and the
integration and full inclusion of individuals with disabilities into the
mainstream of American society, by--
``(1) providing financial assistance to States for
providing, expanding, and improving the provision of independent
living services;
``(2) providing financial assistance to develop and support
statewide networks of centers for independent living; and
``(3) providing financial assistance to States for improving
working relationships among State independent living
rehabilitation service programs, centers for independent living,
Statewide Independent Living Councils established under section
705, State vocational rehabilitation programs receiving
assistance under title I, State programs of supported employment
services receiving assistance under part B of title VI, client
assistance programs receiving assistance under section 112,
programs funded under other titles of this Act, programs funded
under other Federal law, and programs funded through non-Federal
sources.
[[Page 112 STAT.1218]]
``SEC. 702. <<NOTE: 29 USC 796a.>> DEFINITIONS.
``As used in this chapter:
``(1) Center for independent living.--The term `center for
independent living' means a consumer-controlled, community-
based, cross-disability, nonresidential private nonprofit agency
that--
``(A) is designed and operated within a local
community by individuals with disabilities; and
``(B) provides an array of independent living
services.
``(2) Consumer control.--The term `consumer control' means,
with respect to a center for independent living, that the center
vests power and authority in individuals with disabilities.
``SEC. 703. <<NOTE: 29 USC 796b.>> ELIGIBILITY FOR RECEIPT OF SERVICES.
``Services may be provided under this chapter to any individual with
a significant disability, as defined in section 7(21)(B).
``SEC. 704. <<NOTE: 29 USC 796c.>> STATE PLAN.
``(a) In General.--
``(1) Requirement.--To be eligible to receive financial
assistance under this chapter, a State shall submit to the
Commissioner, and obtain approval of, a State plan containing
such provisions as the Commissioner may require, including, at a
minimum, the provisions required in this section.
``(2) Joint development.--The plan under paragraph (1) shall
be jointly developed and signed by--
``(A) the director of the designated State unit; and
``(B) the chairperson of the Statewide Independent
Living Council, acting on behalf of and at the direction
of the Council.
``(3) Periodic review and revision.--The plan shall provide
for the review and revision of the plan, not less than once
every 3 years, to ensure the existence of appropriate planning,
financial support and coordination, and other assistance to
appropriately address, on a statewide and comprehensive basis,
needs in the State for--
``(A) the provision of State independent living
services;
``(B) the development and support of a statewide
network of centers for independent living; and
``(C) working relationships between--
``(i) programs providing independent living
services and independent living centers; and
``(ii) the vocational rehabilitation program
established under title I, and other programs
providing services for individuals with
disabilities.
``(4) Date of submission.--The State shall submit the plan
to the Commissioner 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
may withhold financial assistance under this chapter until such
time as the State submits such a plan.
``(b) Statewide Independent Living Council.--The plan shall provide
for the establishment of a Statewide Independent Living Council in
accordance with section 705.
[[Page 112 STAT.1219]]
``(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) receive, account for, and disburse funds received by
the State under this chapter based on the plan;
``(2) provide administrative support services for a program
under part B, and a program under part C in a case in which the
program is administered by the State under section 723;
``(3) <<NOTE: Records.>> keep such records and afford such
access to such records as the Commissioner finds to be necessary
with respect to the programs; and
``(4) submit such additional information or provide such
assurances as the Commissioner may require with respect to the
programs.
``(d) Objectives.--The plan shall--
``(1) specify the objectives to be achieved under the plan
and establish timelines for the achievement of the objectives;
and
``(2) explain how such objectives are consistent with and
further the purpose of this chapter.
``(e) Independent Living Services.--The plan shall provide that the
State will provide independent living services under this chapter to
individuals with significant disabilities, and will provide the services
to such an individual in accordance with an independent living plan
mutually agreed upon by an appropriate staff member of the service
provider and the individual, unless the individual signs a waiver
stating that such a plan is unnecessary.
``(f ) Scope and Arrangements.--The plan shall describe the extent
and scope of independent living services to be provided under this
chapter to meet such objectives. If the State makes arrangements, by
grant or contract, for providing such services, such arrangements shall
be described in the plan.
``(g) Network.--The plan shall set forth a design for the
establishment of a statewide network of centers for independent living
that comply with the standards and assurances set forth in section 725.
``(h) Centers.--In States in which State funding for centers for
independent living equals or exceeds the amount of funds allotted to the
State under part C, as provided in section 723, the plan shall include
policies, practices, and procedures governing the awarding of grants to
centers for independent living and oversight of such centers consistent
with section 723.
``(i) Cooperation, Coordination, and Working Relationships Among
Various Entities.--The plan shall set forth the steps that will be taken
to maximize the cooperation, coordination, and working relationships
among--
``(1) the independent living rehabilitation service program,
the Statewide Independent Living Council, and centers for
independent living; and
``(2) the designated State unit, other State agencies
represented on such Council, other councils that address the
needs of specific disability populations and issues, and other
public and private entities determined to be appropriate by the
Council.
``( j) Coordination of Services.--The plan shall describe how
services funded under this chapter will be coordinated with, and
[[Page 112 STAT.1220]]
complement, other services, in order to avoid unnecessary duplication
with other Federal, State, and local programs.
``(k) Coordination Between Federal and State Sources.--The plan
shall describe efforts to coordinate Federal and State funding for
centers for independent living and independent living services.
``(l) Outreach.--With respect to services and centers funded under
this chapter, the plan shall set forth steps to be taken regarding
outreach to populations that are unserved or underserved by programs
under this title, including minority groups and urban and rural
populations.
``(m) Requirements.--The plan shall provide satisfactory assurances
that all recipients of financial assistance under this chapter will--
``(1) <<NOTE: Notification.>> notify all individuals
seeking or receiving services under this chapter about the
availability of the client assistance program under section 112,
the purposes of the services provided under such program, and
how to contact such program;
``(2) take affirmative action to employ and advance in
employment qualified individuals with disabilities on the same
terms and conditions required with respect to the employment of
such individuals under the provisions of section 503;
``(3) adopt such fiscal control and fund accounting
procedures as may be necessary to ensure the proper disbursement
of and accounting for funds paid to the State under this
chapter;
``(4)(A) <<NOTE: Records.>> maintain records that fully
disclose--
``(i) the amount and disposition by such recipient
of the proceeds of such financial assistance;
``(ii) the total cost of the project or undertaking
in connection with which such financial assistance is
given or used; and
``(iii) the amount of that portion of the cost of
the project or undertaking supplied by other sources;
``(B) maintain such other records as the Commissioner
determines to be appropriate to facilitate an effective audit;
``(C) afford such access to records maintained under
subparagraphs (A) and (B) as the Commissioner determines to be
appropriate; and
``(D) <<NOTE: Reports.>> submit such reports with respect
to such records as the Commissioner determines to be
appropriate;
``(5) provide access to the Commissioner 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
``(6) provide for public hearings regarding the contents of
the plan during both the formulation and review of the plan.
``(n) Evaluation.--The plan shall establish a method for the
periodic evaluation of the effectiveness of the plan in meeting the
objectives established in subsection (d), including evaluation of
satisfaction by individuals with disabilities.
``SEC. 705. <<NOTE: 29 USC 796d.>> STATEWIDE INDEPENDENT LIVING
COUNCIL.
``(a) Establishment.--To be eligible to receive financial assistance
under this chapter, each State shall establish a Statewide
[[Page 112 STAT.1221]]
Independent Living Council (referred to in this section as the
`Council'). The Council shall not be established as an entity within a
State agency.
``(b) Composition and Appointment.--
``(1) Appointment.--Members of the Council shall be
appointed by the Governor. The Governor shall select members
after soliciting recommendations from representatives of
organizations representing a broad range of individuals with
disabilities and organizations interested in individuals with
disabilities.
``(2) Composition.--The Council shall include--
``(A) at least one director of a center for
independent living chosen by the directors of centers
for independent living within the State;
``(B) as ex officio, nonvoting members--
``(i) a representative from the designated
State unit; and
``(ii) representatives from other State
agencies that provide services for individuals
with disabilities; and
``(C) in a State in which one or more projects are
carried out under section 121, at least one
representative of the directors of the projects.
``(3) Additional members.--The Council may include--
``(A) other representatives from centers for
independent living;
``(B) parents and guardians of individuals with
disabilities;
``(C) advocates of and for individuals with
disabilities;
``(D) representatives from private businesses;
``(E) representatives from organizations that
provide services for individuals with disabilities; and
``(F) other appropriate individuals.
``(4) Qualifications.--
``(A) In general.--The Council shall be composed of
members--
``(i) who provide statewide representation;
``(ii) who represent a broad range of
individuals with disabilities from diverse
backgrounds;
``(iii) who are knowledgeable about centers
for independent living and independent living
services; and
``(iv) a majority of whom are persons who
are--
``(I) individuals with disabilities
described in section 7(20)(B); and
``(II) not employed by any State
agency or center for independent living.
``(B) Voting members.--A majority of the voting
members of the Council shall be--
``(i) individuals with disabilities described
in section 7(20)(B); and
``(ii) not employed by any State agency or
center for independent living.
``(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.
[[Page 112 STAT.1222]]
``(B) Designation by governor.--In States in which
the Governor does not have veto power pursuant to State
law, the Governor 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.
``(6) Terms of appointment.--
``(A) Length of term.--Each member of the Council
shall serve for a term of 3 years, except that--
``(i) a member appointed to fill a vacancy
occurring prior to the expiration of the term for
which a predecessor was appointed, shall be
appointed for the remainder of such term; and
``(ii) the terms of service of the members
initially appointed shall be (as specified by the
Governor) for such fewer number of years as will
provide for the expiration of terms on a staggered
basis.
``(B) Number of terms.--No member of the Council may
serve more than two consecutive full terms.
``(7) Vacancies.--
``(A) In general.--Except as provided in
subparagraph (B), any vacancy occurring in the
membership of the Council shall be filled in the same
manner as the original appointment. The vacancy shall
not affect the power of the remaining members to execute
the duties of the Council.
``(B) Delegation.--The Governor may delegate the
authority to fill such a vacancy to the remaining voting
members of the Council after making the original
appointment.
``(c) Duties.--The Council shall--
``(1) jointly develop and sign (in conjunction with the
designated State unit) the State plan required in section 704;
``(2) monitor, review, and evaluate the implementation of
the State plan;
``(3) coordinate activities with the State Rehabilitation
Council established under section 105, if the State has such a
Council, or the commission described in section 101(a)(21)(A),
if the State has such a commission, and councils that address
the needs of specific disability populations and issues under
other Federal law;
``(4) ensure that all regularly scheduled meetings of the
Statewide Independent Living Council are open to the public and
sufficient advance notice is provided; and
``(5) <<NOTE: Reports. Records.>> submit to the
Commissioner such periodic reports as the Commissioner may
reasonably request, and keep such records, and afford such
access to such records, as the Commissioner finds necessary to
verify such reports.
``(d) Hearings and Forums.--The Council is authorized to hold such
hearings and forums as the Council may determine to be necessary to
carry out the duties of the Council.
``(e) Plan.--
``(1) In general.--The Council shall prepare, in conjunction
with the designated State unit, a plan for the provision of such
resources, including such staff and personnel, as may be
necessary and sufficient to carry out the functions of the
Council under this section, with funds made available under this
chapter, and under section 110 (consistent with section
[[Page 112 STAT.1223]]
101(a)(18)), and from other public and private sources. The
resource plan shall, to the maximum extent possible, rely on the
use of resources in existence during the period of
implementation of the plan.
``(2) Supervision and evaluation.--Each Council shall,
consistent with State law, supervise and evaluate such staff and
other personnel as may be necessary to carry out the functions
of the Council under this section.
``(3) Conflict of interest.--While assisting the Council in
carrying out its duties, staff and other personnel shall not be
assigned duties by the designated State agency or any other
agency or office of the State, that would create a conflict of
interest.
``(f ) Compensation and Expenses.--The Council may use such
resources to reimburse members of the Council for reasonable and
necessary expenses of attending Council meetings and performing Council
duties (including child care and personal assistance services), and to
pay compensation to a member of the Council, if such member is not
employed or must forfeit wages from other employment, for each day the
member is engaged in performing Council duties.
``SEC. 706. <<NOTE: 29 USC 796d-1.>> RESPONSIBILITIES OF THE
COMMISSIONER.
``(a) Approval of State Plans.--
``(1) In general.--The Commissioner shall approve any State
plan submitted under section 704 that the Commissioner
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. <<NOTE: Notification.>> Prior to such disapproval, the
Commissioner 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 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; and
``(ii) to section 101 shall be deemed to be
references to section 704.
``(b) Indicators.--Not later than October 1, 1993, the Commissioner
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 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 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
[[Page 112 STAT.1224]]
with subsections (f ) and (g) of section 723, centers that
receive funding under section 723 in such State. The
Commissioner 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 shall--
``(A) to the maximum extent practicable, carry out
such a review by using employees of the Department who
are knowledgeable about the provision of independent
living services;
``(B) ensure that the employee of the Department
with responsibility for supervising such a review shall
have such knowledge; and
``(C) ensure that at least one member of a team
conducting such a review shall be an individual who--
``(i) is not a government employee; and
``(ii) has experience in the operation of
centers for independent living.
``(d) Reports.--The Commissioner 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
may identify individual centers for independent living in the analysis.
The Commissioner 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. <<NOTE: 29 USC 796e.>> 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 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.
``(B) Maintenance of 1992 amounts.--Subject to the
availability of appropriations to carry out this part,
the amount of any allotment made under subparagraph (A)
to a State for a fiscal year shall not be less than the
amount of an allotment made to the State for fiscal year
1992 under part A of this title, as in effect on the day
before the date of enactment of the Rehabilitation Act
Amendments of 1992.
``(C) Minimums.--Subject to the availability of
appropriations to carry out this part, and except as
provided in subparagraph (B), the allotment to any State
under subparagraph (A) shall be not less than $275,000
or \1/3\ of 1 percent of the sums made available for the
fiscal year for which the allotment is made, whichever
is greater, and the allotment of any State under this
section for any fiscal year that is less than $275,000
or \1/3\ of 1 percent
[[Page 112 STAT.1225]]
of such sums shall be increased to the greater of the
two amounts.
``(2) Certain territories.--
``(A) In general.--For the purposes of paragraph
(1)(C), Guam, American Samoa, the United States Virgin
Islands, and the Commonwealth of the Northern Mariana
Islands shall not be considered to be States.
``(B) Allotment.--Each jurisdiction described in
subparagraph (A) shall be allotted under paragraph
(1)(A) not less than \1/8\ of 1 percent of the amounts
made available for purposes of this part for the fiscal
year for which the allotment is made.
``(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 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 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 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 shall make such amount available for carrying out the
provisions of this part to one or more of the States that the
Commissioner determines will be able to use additional amounts during
such year for carrying out such provisions. Any amount made available to
a State for any fiscal year pursuant to the preceding sentence shall,
for the purposes of this section, be regarded as an increase in the
allotment of the State (as determined under the preceding provisions of
this section) for such year.
``SEC. 712. <<NOTE: 29 USC 796e-1.>> 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 may determine.
``(b) Federal Share.--
``(1) In general.--The Federal share with respect to any
State for any fiscal year shall be 90 percent of the
expenditures incurred by the State during such year under its
State plan approved under section 706.
[[Page 112 STAT.1226]]
``(2) Non-federal share.--The non-Federal share of the cost
of any project that receives assistance through an allotment
under this part may be provided in cash or in kind, fairly
evaluated, including plant, equipment, or services.
``SEC. 713. <<NOTE: 29 USC 796e-2.>> AUTHORIZED USES OF FUNDS.
``The State may use funds received under this part to provide the
resources described in section 705(e), relating to the Statewide
Independent Living Council, and may use funds received under this part--
``(1) to provide independent living services to individuals
with significant disabilities;
``(2) to demonstrate ways to expand and improve independent
living services;
``(3) to support the operation of centers for independent
living that are in compliance with the standards and assurances
set forth in subsections (b) and (c) of section 725;
``(4) to support activities to increase the capacities of
public or nonprofit agencies and organizations and other
entities to develop comprehensive approaches or systems for
providing independent living services;
``(5) to conduct studies and analyses, gather information,
develop model policies and procedures, and present information,
approaches, strategies, findings, conclusions, and
recommendations to Federal, State, and local policymakers in
order to enhance independent living services for individuals
with disabilities;
``(6) to train individuals with disabilities and individuals
providing services to individuals with disabilities and other
persons regarding the independent living philosophy; and
``(7) to provide outreach to populations that are unserved
or underserved by programs under this title, including minority
groups and urban and rural populations.
``SEC. 714. <<NOTE: 29 USC 796e-3.>> 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.
``PART C--CENTERS FOR INDEPENDENT LIVING
``SEC. 721. <<NOTE: 29 USC 796f.>> 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 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 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
[[Page 112 STAT.1227]]
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 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 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 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 may require. The
Commissioner 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 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
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.
``(B) Maintenance of 1992 amounts.--Subject to the
availability of appropriations to carry out this part,
the amount of any allotment made under subparagraph (A)
to a State for a fiscal year shall not be less than the
amount of financial assistance received by centers for
independent living in the State for fiscal year 1992
under part B of this title, as in effect on the day
before the date of enactment of the Rehabilitation Act
Amendments of 1992.
``(C) Minimums.--Subject to the availability of
appropriations to carry out this part and except as
provided in subparagraph (B), for a fiscal year in which
the amounts appropriated to carry out this part exceed
the amounts appropriated for fiscal year 1992 to carry
out part B of
[[Page 112 STAT.1228]]
this title, as in effect on the day before the date of
enactment of the Rehabilitation Act Amendments of 1992--
``(i) if such excess is not less than
$8,000,000, the allotment to any State under
subparagraph (A) shall be not less than $450,000
or \1/3\ of 1 percent of the sums made available
for the fiscal year for which the allotment is
made, whichever is greater, and the allotment of
any State under this section for any fiscal year
that is less than $450,000 or \1/3\ of 1 percent
of such sums shall be increased to the greater of
the 2 amounts;
``(ii) if such excess is not less than
$4,000,000 and is less than $8,000,000, the
allotment to any State under subparagraph (A)
shall be not less than $400,000 or \1/3\ of 1
percent of the sums made available for the fiscal
year for which the allotment is made, whichever is
greater, and the allotment of any State under this
section for any fiscal year that is less than
$400,000 or \1/3\ of 1 percent of such sums shall
be increased to the greater of the 2 amounts; and
``(iii) if such excess is less than
$4,000,000, the allotment to any State under
subparagraph (A) shall approach, as nearly as
possible, the greater of the 2 amounts described
in clause (ii).
``(2) Certain territories.--
``(A) In general.--For the purposes of paragraph
(1)(C), Guam, American Samoa, the United States Virgin
Islands, and the Commonwealth of the Northern Mariana
Islands shall not be considered to be States.
``(B) Allotment.--Each jurisdiction described in
subparagraph (A) shall be allotted under paragraph
(1)(A) not less than \1/8\ of 1 percent of the remainder
for the fiscal year for which the allotment is made.
``(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 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 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 determines that any
amount of an allotment to a State for any fiscal year will not be
expended by such State for carrying out the provisions of this part, the
Commissioner shall make such amount available for carrying out the
provisions of this part to one or more of the States that the
Commissioner determines will be able to use
[[Page 112 STAT.1229]]
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. <<NOTE: 29 USC 796f-1.>> 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 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 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 has
approved the State plan required by section 704, the Commissioner may
make a grant under this section to any eligible agency that--
``(1) has the power and authority to carry out the purpose
of this part and perform the functions set forth in section 725
within a community and to receive and administer funds under
this part, funds and contributions from private or public
sources that may be used in support of a center for independent
living, and funds from other public and private programs;
``(2) is determined by the Commissioner 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 at such
time, in such manner, and containing such information as the
Commissioner may require.
``(c) Existing Eligible Agencies.--In the administration of the
provisions of this section, the Commissioner shall award grants to any
eligible agency that has been awarded a grant under this part by
September 30, 1997, unless the Commissioner 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 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--
[[Page 112 STAT.1230]]
``(A) shall consider comments regarding the
application, if any, by the Statewide Independent Living
Council in the State in which the applicant is located;
``(B) shall consider the ability of each such
applicant to operate a center for independent living
based on--
``(i) evidence of the need for such a center;
``(ii) any past performance of such applicant
in providing services comparable to independent
living services;
``(iii) the plan for satisfying or
demonstrated success in satisfying the standards
and the assurances set forth in section 725;
``(iv) the quality of key personnel and the
involvement of individuals with significant
disabilities;
``(v) budgets and cost-effectiveness;
``(vi) an evaluation plan; and
``(vii) the ability of such applicant to carry
out the plans; and
``(C) shall give priority to applications from
applicants proposing to serve geographic areas within
each State that are currently unserved or underserved by
independent living programs, consistent with the
provisions of the State plan submitted under section 704
regarding establishment of a statewide network of
centers for independent living.
``(3) Current centers.--Notwithstanding paragraphs (1) and
(2), a center for independent living that receives assistance
under part B for a fiscal year shall be eligible for a grant for
the subsequent fiscal year under this subsection.
``(e) Order of Priorities.--The Commissioner 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 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 shall provide for a cost-of-living
increase for such existing centers for independent living.
``(3) The Commissioner shall fund new centers for
independent living, as described in subsection (d), that comply
with the standards and assurances set forth in section 725.
``(f ) Nonresidential Agencies.--A center that provides or manages
residential housing after October 1, 1994, shall not be considered to be
an eligible agency under this section.
``(g) Review.--
``(1) In general.--The Commissioner 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. <<NOTE: Notification.>> If the Commissioner 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 shall immediately notify such
center that it is out of compliance.
``(2) <<NOTE: Termination date.>> Enforcement.--The
Commissioner shall terminate all funds under this section to
such center 90 days after the date of such notification unless
the center submits a plan
[[Page 112 STAT.1231]]
to achieve compliance within 90 days of such notification and
such plan is approved by the Commissioner.
``SEC. 723. <<NOTE: 29 USC 796f-2.>> 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, as provided in paragraph
(3), shall award grants under this section for an
initial fiscal year if the Commissioner 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, 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 shall by
regulation specify the preceding fiscal year with
respect to which the Commissioner 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 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, 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 at such time,
and in such manner as the Commissioner may require, including
information about the amount of State funds described in
paragraph (1) for the preceding fiscal year. If the Commissioner
makes a determination described in subparagraph (A)(i) or (B),
as appropriate, of paragraph (1), the Commissioner
[[Page 112 STAT.1232]]
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 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 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) has the power and authority to carry out the purpose
of this part and perform the functions set forth in section 725
within a community and to receive and administer funds under
this part, funds and contributions from private or public
sources that may be used in support of a center for independent
living, and funds from other public and private programs;
``(2) is determined by the 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 director at such time,
in such manner, and containing such information as the head of
the designated State unit may require.
``(c) Existing Eligible Agencies.--In the administration of the
provisions of this section, the director of the designated State unit
shall award grants under this section to any eligible agency that has
been awarded a grant under this part by September 30, 1997, unless the
director makes a finding that the agency involved fails to comply with
the 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 the region is unserved
or underserved, and the increase in the allotment of the State
is sufficient to support an additional center for independent
living in the State, the director of the designated State unit
may award a grant under this section from among eligible
agencies, consistent with the provisions of the State plan under
section 704 setting forth the design of the State for
establishing a statewide network of centers for independent
living.
``(2) Selection.--In selecting from among eligible agencies
in awarding a grant under this part for a new center for
independent living--
``(A) the director of the designated State unit and
the chairperson of, or other individual designated by,
the Statewide Independent Living Council acting on
behalf of and at the direction of the Council, shall
jointly appoint a peer review committee that shall rank
applications in accordance with the standards and
assurances set forth in section 725 and criteria jointly
established by such director and such chairperson or
individual;
[[Page 112 STAT.1233]]
``(B) the peer review committee shall consider the
ability of each such applicant to operate a center for
independent living, and shall recommend an applicant to
receive a grant under this section, based on--
``(i) evidence of the need for a center for
independent living, consistent with the State
plan;
``(ii) any past performance of such applicant
in providing services comparable to independent
living services;
``(iii) the plan for complying with, or
demonstrated success in complying with, the
standards and the assurances set forth in section
725;
``(iv) the quality of key personnel of the
applicant and the involvement of individuals with
significant disabilities by the applicant;
``(v) the budgets and cost-effectiveness of
the applicant;
``(vi) the evaluation plan of the applicant;
and
``(vii) the ability of such applicant to carry
out the plans; and
``(C) the director of the designated State unit
shall award the grant on the basis of the
recommendations of the peer review committee if the
actions of the committee are consistent with Federal and
State law.
``(3) Current centers.--Notwithstanding paragraphs (1) and
(2), a center for independent living that receives assistance
under part B for a fiscal year shall be eligible for a grant for
the subsequent fiscal year under this subsection.
``(e) Order of Priorities.--Unless the director of the designated
State unit and the chairperson of the Council or other individual
designated by the Council acting on behalf of and at the direction of
the Council jointly agree on another order of priority, the 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 director of the designated State unit 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 director of the designated State unit shall
provide for a cost-of-living increase for such existing centers
for independent living.
``(3) The director of the designated State unit shall fund
new centers for independent living, as described in subsection
(d), that comply with the standards and assurances set forth in
section 725.
``(f ) Nonresidential Agencies.--A center that provides or manages
residential housing after October 1, 1994, shall not be considered to be
an eligible agency under this section.
``(g) Review.--
``(1) In general.--The director of the designated State unit
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
director of the designated State unit determines that
[[Page 112 STAT.1234]]
any center receiving funds under this section is not in
compliance with the standards and assurances set forth in
section 725, the director of the designated State unit shall
immediately notify such center that it is out of compliance.
``(2) Enforcement.--The director of the designated State
unit shall terminate all funds under this section to such center
90 days after--
``(A) the date of such notification; or
``(B) in the case of a center that requests an
appeal under subsection (i), the date of any final
decision under subsection (i),
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.
``(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.
``(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 for a final decision.
``SEC. 724. <<NOTE: 29 USC 796f-3.>> 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; and
``(B) obtains approval of the application under
section 722 or 723; or
``(2) after funding all applications so submitted and
approved, the Commissioner determines that funds remain
available to provide such assistance.
``SEC. 725. <<NOTE: 29 USC 796f-4.>> STANDARDS AND ASSURANCES FOR
CENTERS FOR INDEPENDENT LIVING.
``(a) In General.--Each center for independent living that receives
assistance under this part shall comply with the standards set out in
subsection (b) and provide and comply with the assurances set out in
subsection (c) in order to ensure that all programs
[[Page 112 STAT.1235]]
and activities under this part are planned, conducted, administered, and
evaluated in a manner consistent with the purposes of this chapter and
the objective of providing assistance effectively and efficiently.
``(b) Standards.--
``(1) Philosophy.--The center shall promote and practice the
independent living philosophy of--
``(A) consumer control of the center regarding
decisionmaking, service delivery, management, and
establishment of the policy and direction of the center;
``(B) self-help and self-advocacy;
``(C) development of peer relationships and peer
role models; and
``(D) equal access of individuals with significant
disabilities to society and to all services, programs,
activities, resources, and facilities, whether public or
private and regardless of the funding source.
``(2) Provision of services.--The center shall provide
services to individuals with a range of significant
disabilities. The center shall provide services on a cross-
disability basis (for individuals with all different types of
significant disabilities, including individuals with significant
disabilities who are members of populations that are unserved or
underserved by programs under this title). Eligibility for
services at any center for independent living shall be
determined by the center, and shall not be based on the presence
of any one or more specific significant disabilities.
``(3) Independent living goals.--The center shall facilitate
the development and achievement of independent living goals
selected by individuals with significant disabilities who seek
such assistance by the center.
``(4) Community options.--The center shall work to increase
the availability and improve the quality of community options
for independent living in order to facilitate the development
and achievement of independent living goals by individuals with
significant disabilities.
``(5) Independent living core services.--The center shall
provide independent living core services and, as appropriate, a
combination of any other independent living services.
``(6) Activities to increase community capacity.--The center
shall conduct activities to increase the capacity of communities
within the service area of the center to meet the needs of
individuals with significant disabilities.
``(7) Resource development activities.--The center shall
conduct resource development activities to obtain funding from
sources other than this chapter.
``(c) Assurances.--The eligible agency shall provide at such time
and in such manner as the Commissioner may require, such satisfactory
assurances as the Commissioner may require, including satisfactory
assurances that--
``(1) the applicant is an eligible agency;
``(2) the center will be designed and operated within local
communities by individuals with disabilities, including an
assurance that the center will have a Board that is the
principal governing body of the center and a majority of which
shall be composed of individuals with significant disabilities;
[[Page 112 STAT.1236]]
``(3) the applicant will comply with the standards set forth
in subsection (b);
``(4) the applicant will establish clear priorities through
annual and 3-year program and financial planning objectives for
the center, including overall goals or a mission for the center,
a work plan for achieving the goals or mission, specific
objectives, service priorities, and types of services to be
provided, and a description that shall demonstrate how the
proposed activities of the applicant are consistent with the
most recent 3-year State plan under section 704;
``(5) the applicant will use sound organizational and
personnel assignment practices, including taking affirmative
action to employ and advance in employment qualified individuals
with significant disabilities on the same terms and conditions
required with respect to the employment of individuals with
disabilities under section 503;
``(6) the applicant will ensure that the majority of the
staff, and individuals in decisionmaking positions, of the
applicant are individuals with disabilities;
``(7) the applicant will practice sound fiscal management,
including making arrangements for an annual independent fiscal
audit, notwithstanding section 7502(a)(2)(A) of title 31, United
States Code;
``(8) <<NOTE: Reports. Records.>> the applicant will
conduct annual self-evaluations, prepare an annual report, and
maintain records adequate to measure performance with respect to
the standards, containing information regarding, at a minimum--
``(A) the extent to which the center is in
compliance with the standards;
``(B) the number and types of individuals with
significant disabilities receiving services through the
center;
``(C) the types of services provided through the
center and the number of individuals with significant
disabilities receiving each type of service;
``(D) the sources and amounts of funding for the
operation of the center;
``(E) the number of individuals with significant
disabilities who are employed by, and the number who are
in management and decisionmaking positions in, the
center; and
``(F) a comparison, when appropriate, of the
activities of the center in prior years with the
activities of the center in the most recent year;
``(9) individuals with significant disabilities who are
seeking or receiving services at the center will be notified by
the center of the existence of, the availability of, and how to
contact, the client assistance program;
``(10) aggressive outreach regarding services provided
through the center will be conducted in an effort to reach
populations of individuals with significant disabilities that
are unserved or underserved by programs under this title,
especially minority groups and urban and rural populations;
``(11) staff at centers for independent living will receive
training on how to serve such unserved and underserved
populations, including minority groups and urban and rural
populations;
[[Page 112 STAT.1237]]
``(12) <<NOTE: Reports.>> the center will submit to the
Statewide Independent Living Council a copy of its approved
grant application and the annual report required under paragraph
(8);
``(13) <<NOTE: Reports.>> the center will prepare and
submit a report to the designated State unit or the
Commissioner, 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
``(14) an independent living plan described in section
704(e) will be developed unless the individual who would receive
services under the plan signs a waiver stating that such a plan
is unnecessary.
``SEC. 726. <<NOTE: 29 USC 796f-5.>> DEFINITIONS.
``As used in this part, the term `eligible agency' means a consumer-
controlled, community-based, cross-disability, nonresidential private
nonprofit agency.
``SEC. 727. <<NOTE: 29 USC 796f-6.>> 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.
``CHAPTER 2--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE
BLIND
``SEC. 751. <<NOTE: 29 USC 796j.>> DEFINITION.
``For purposes of this chapter, the term `older individual who is
blind' means an individual age 55 or older whose significant visual
impairment makes competitive employment extremely difficult to attain
but for whom independent living goals are feasible.
``SEC. 752. <<NOTE: 29 USC 796k.>> PROGRAM OF GRANTS.
``(a) In General.--
``(1) Authority for grants.--Subject to subsections (b) and
(c), the Commissioner 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 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).
``(b) Contingent Competitive Grants.--Beginning with fiscal year
1993, in the case of any fiscal year for which the amount appropriated
under section 753 is less than $13,000,000, grants made under subsection
(a) shall be--
``(1) discretionary grants made on a competitive basis to
States; or
``(2) grants made on a noncompetitive basis to pay for the
continuation costs of activities for which a grant was awarded--
``(A) under this chapter; or
``(B) under part C, as in effect on the day before
the date of enactment of the Rehabilitation Act
Amendments of 1992.
``(c) Contingent Formula Grants.--
[[Page 112 STAT.1238]]
``(1) In general.--In the case of any fiscal year for which
the amount appropriated under section 753 is equal to or greater
than $13,000,000, grants under subsection (a) shall be made only
to States and shall be made only from allotments under paragraph
(2).
``(2) Allotments.--For grants under subsection (a) for a
fiscal year described in paragraph (1), the Commissioner 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 an application in accordance with subsection
(i).
``(d) Services Generally.--The Commissioner may not make a grant
under subsection (a) unless the State involved agrees that the grant
will be expended only for purposes of--
``(1) providing independent living services to older
individuals who are blind;
``(2) conducting activities that will improve or expand
services for such individuals; and
``(3) conducting activities to help improve public
understanding of the problems of such individuals.
``(e) Independent Living Services.--Independent living
services for purposes of subsection (d)(1) include--
``(1) services to help correct blindness, such as--
``(A) outreach services;
``(B) visual screening;
``(C) surgical or therapeutic treatment to prevent,
correct, or modify disabling eye conditions; and
``(D) hospitalization related to such services;
``(2) the provision of eyeglasses and other visual aids;
``(3) the provision of services and equipment to assist an
older individual who is blind to become more mobile and more
self-sufficient;
``(4) mobility training, braille instruction, and other
services and equipment to help an older individual who is blind
adjust to blindness;
``(5) guide services, reader services, and transportation;
``(6) any other appropriate service designed to assist an
older individual who is blind in coping with daily living
activities, including supportive services and rehabilitation
teaching services;
``(7) independent living skills training, information and
referral services, peer counseling, and individual advocacy
training; and
``(8) other independent living services.
``(f ) Matching Funds.--
``(1) In general.--The Commissioner 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.
``(2) Determination of amount contributed.--Non-Federal
contributions required in paragraph (1) may be in cash or in
kind, fairly evaluated, including plant, equipment, or
[[Page 112 STAT.1239]]
services. Amounts provided by the Federal Government, or
services assisted or subsidized to any significant extent by the
Federal Government, may not be included in determining the
amount of such non-Federal contributions.
``(g) Certain Expenditures of Grants.--A State may expend a grant
under subsection (a) to carry out the purposes specified in subsection
(d) through grants to public and nonprofit private agencies or
organizations.
``(h) Requirement Regarding State Plan.--The Commissioner 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 may not make a grant
under subsection (a) unless an application for the grant is
submitted to the Commissioner and the application is in such
form, is made in such manner, and contains such agreements,
assurances, and information as the Commissioner 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 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) the number and types of older
individuals who are blind and are receiving
services;
``(ii) the types of services provided and the
number of older individuals who are blind and are
receiving each type of service;
``(iii) the sources and amounts of funding for
the operation of each project or program;
``(iv) the amounts and percentages of
resources committed to each type of service
provided;
``(v) data on actions taken to employ, and
advance in employment, qualified individuals with
significant disabilities, including older
individuals who are blind; and
``(vi) a comparison, if appropriate, of prior
year activities with the activities of the most
recent year;
``(B) an assurance that the agency will--
``(i) provide services that contribute to the
maintenance of, or the increased independence of,
older individuals who are blind; and
``(ii) engage in--
``(I) capacity-building activities,
including collaboration with other
agencies and organizations;
``(II) activities to promote
community awareness, involvement, and
assistance; and
[[Page 112 STAT.1240]]
``(III) outreach efforts; and
``(C) an assurance that the application is
consistent with the State plan for providing independent
living services required by section 704.
``( j) Amount of Formula Grant.--
``(1) In general.--Subject to the availability of
appropriations, the amount of an allotment under subsection (a)
for a State for a fiscal year shall be the greater of--
``(A) the amount determined under paragraph (2); or
``(B) the amount determined under paragraph (3).
``(2) Minimum allotment.--
``(A) States.--In the case of the several States,
the District of Columbia, and the Commonwealth of Puerto
Rico, the amount referred to in subparagraph (A) of
paragraph (1) for a fiscal year is the greater of--
``(i) $225,000; or
``(ii) an amount equal to \1/3\ of 1 percent
of the amount appropriated under section 753 for
the fiscal year and available for allotments under
subsection (a).
``(B) Certain territories.--In the case of Guam,
American Samoa, the United States Virgin Islands, and
the Commonwealth of the Northern Mariana Islands, the
amount referred to in subparagraph (A) of paragraph (1)
for a fiscal year is $40,000.
``(3) Formula.--The amount referred to in subparagraph (B)
of paragraph (1) for a State for a fiscal year is the product
of--
``(A) the amount appropriated under section 753 and
available for allotments under subsection (a); and
``(B) a percentage equal to the quotient of--
``(i) an amount equal to the number of
individuals residing in the State who are not less
than 55 years of age; divided by
``(ii) an amount equal to the number of
individuals residing in the United States who are
not less than 55 years of age.
``(4) Disposition of certain amounts.--
``(A) Grants.--From the amounts specified in
subparagraph (B), the Commissioner 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) the failure of any State to submit an
application under subsection (i);
``(ii) the failure of any State to prepare
within a reasonable period of time such
application in compliance with such subsection; or
``(iii) any State informing the Commissioner
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 may not make a
grant under subparagraph (A) unless the State involved
[[Page 112 STAT.1241]]
agrees that the grant is subject to the same conditions
as grants made under subsection (a).
``SEC. 753. <<NOTE: 29 USC 796l.>> 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.''.
SEC. 411. REPEAL.
Title VIII of the Rehabilitation Act of 1973 (29 U.S.C. 797 et seq.)
is repealed.
SEC. 412. 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 ``1993 through 1997'' and inserting
``1999 through 2003''.
(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 ``1993 through 1997'' and inserting ``1999 through 2003''.
(c) Registry.--Such Act (29 U.S.C. 1901 et seq.) is amended by
adding at the end the following:
``SEC. 209. <<NOTE: 29 USC 1908.>> REGISTRY.
``(a) In General.--To assist the Center in providing services to
individuals who are deaf-blind, the Center may establish and maintain
registries of such individuals in each of the regional field offices of
the network of the Center.
``(b) Voluntary Provision of Information.--No individual who is
deaf-blind may be required to provide information to the Center for any
purpose with respect to a registry established under subsection (a).
``(c) Nondisclosure.--The Center (including the network of the
Center) may not disclose information contained in a registry established
under subsection (a) to any individual or organization that is not
affiliated with the Center, unless the individual to whom the
information relates provides specific written authorization for the
Center to disclose the information.
``(d) <<NOTE: Applicability.>> Privacy Rights.--The requirements of
section 552a of title 5, United States Code (commonly known as the
`Privacy Act of 1974') shall apply to personally identifiable
information contained in the registries established by the Center under
subsection (a), in the same manner and to the same extent as such
requirements apply to a record of an agency.
``(e) Removal of Information.--On the request of an individual, the
Center shall remove all information relating to the individual from any
registry established under subsection (a).''.
SEC. 413. PRESIDENT'S COMMITTEE ON EMPLOYMENT OF PEOPLE WITH
DISABILITIES.
Section 2(2) of the joint resolution approved July 11, 1949 (63
Stat. 409, chapter 302; 36 U.S.C. 155b(2)) is amended by inserting
``solicit,'' before ``accept,''.
SEC. 414. CONFORMING AMENDMENTS.
(a) Randolph-Sheppard Act.--Section 2(e) of the Act of June 20, 1936
(commonly known as the ``Randolph-Sheppard Act'') (49
[[Page 112 STAT.1242]]
Stat. 1559, chapter 638; 20 U.S.C. 107a(e)) is amended by striking
``section 101(a)(1)(A)'' and inserting ``section 101(a)(2)(A)''.
(b) Technology-Related Assistance for Individuals With Disabilities
Act of 1988.--
(1) Section 101(b) of the Technology-Related Assistance for
Individuals With Disabilities Act of 1988 (29 U.S.C. 2211(b)) is
amended--
(A) in paragraph (7)(A)(ii)(II), by striking
``individualized written rehabilitation program'' and
inserting ``individualized plan for employment''; and
(B) in paragraph (9)(B), by striking ``(as defined
in section 7(25) of such Act (29 U.S.C. 706(25)))'' and
inserting ``(as defined in section 7 of such Act)''.
(2) Section 102(e)(23)(A) of such Act (29 U.S.C.
2212(e)(23)(A)) is amended by striking ``the assurance provided
by the State in accordance with section 101(a)(36) of the
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(36))'' and
inserting ``the portion of the State plan provided by the State
in accordance with section 101(a)(21) of the Rehabilitation Act
of 1973''.
(c) Title 38, United States Code.--Sections 3904(b) and 7303(b) of
title 38, United States Code, are amended by striking ``section
204(b)(2) of the Rehabilitation Act of 1973 (29 U.S.C. 762(b)(2))
(relating to the establishment and support of Rehabilitation Engineering
Research Centers)'' and inserting ``section 204(b)(3) of the
Rehabilitation Act of 1973 (relating to the establishment and support of
Rehabilitation Engineering Research Centers)''.
(d) National School Lunch Act.--Section 27(a)(1)(B) of the National
School Lunch Act (42 U.S.C. 1769h(a)(1)(B)) is amended by striking
``section 7(8) of the Rehabilitation Act of 1973 (29 U.S.C. 706(8))''
and inserting ``section 7 of the Rehabilitation Act of 1973''.
(e) Domestic Volunteer Service Act of 1973.--Section 421(11) of the
Domestic Volunteer Service Act of 1973 (42 U.S.C. 5061(11)) is amended
by striking ``section 7(8)(B) of the Rehabilitation Act of 1973 (29
U.S.C. 706(8)(B))'' and inserting ``section 7(20)(B) of the
Rehabilitation Act of 1973''.
(f ) Energy Conservation and Production Act.--Section 412(5) of the
Energy Conservation and Production Act (42 U.S.C. 6862(5)) is amended by
striking ``a handicapped individual as defined in section 7(7) of the
Rehabilitation Act of 1973'' and inserting ``an individual with a
disability, as defined in section 7 of the Rehabilitation Act of 1973''.
(g) National and Community Service Act of 1990.--Section 101(12) of
the National and Community Service Act of 1990 (42 U.S.C. 12511(12)) is
amended by striking ``section 7(8)(B) of the Rehabilitation Act of 1973
(29 U.S.C. 706(8)(B))'' and inserting ``section 7(20)(B) of the
Rehabilitation Act of 1973''.
TITLE V--GENERAL PROVISIONS
SEC. 501. <<NOTE: 20 USC 9271.>> STATE UNIFIED PLAN.
(a) Definition of Appropriate Secretary.--In this section, the term
``appropriate Secretary'' means the head of the Federal agency who
exercises administrative authority over an activity or program described
in subsection (b).
(b) State Unified Plan.--
[[Page 112 STAT.1243]]
(1) In general.--A State may develop and submit to the
appropriate Secretaries a State unified plan for 2 or more of
the activities or programs set forth in paragraph (2), except
that the State may include in the plan the activities described
in paragraph (2)(A) only with the prior approval of the
legislature of the State. The State unified plan shall cover one
or more of the activities set forth in subparagraphs (A) through
(D) of paragraph (2) and may cover one or more of the activities
set forth in subparagraphs (E) through (O) of paragraph (2).
(2) Activities.--The activities and programs referred to in
paragraph (1) are as follows:
(A) Secondary vocational education programs
authorized under the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C. 2301 et
seq.).
(B) Postsecondary vocational education programs
authorized under the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C. 2301 et
seq.).
(C) Activities authorized under title I.
(D) Activities authorized under title II.
(E) Programs authorized under section 6(d) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(d)).
(F) Work programs authorized under section 6(o) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(o)).
(G) Activities authorized under chapter 2 of title
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.).
(H) Programs authorized under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.).
(I) Programs authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.),
other than section 112 of such Act (29 U.S.C. 732).
(J) Activities authorized under chapter 41 of title
38, United States Code.
(K) Programs authorized under State unemployment
compensation laws (in accordance with applicable Federal
law).
(L) Programs authorized under part A of title IV of
the Social Security Act (42 U.S.C. 601 et seq.).
(M) Programs authorized under title V of the Older
Americans Act of 1965 (42 U.S.C. 3056 et seq.).
(N) Training activities carried out by the
Department of Housing and Urban Development.
(O) Programs authorized under the Community Services
Block Grant Act (42 U.S.C. 9901 et seq.).
(c) Requirements.--
(1) In general.--The portion of a State unified plan
covering an activity or program described in subsection (b)
shall be subject to the requirements, if any, applicable to a
plan or application for assistance under the Federal statute
authorizing the activity or program.
(2) Additional submission not required.--A State that
submits a State unified plan covering an activity or program
described in subsection (b) that is approved under subsection
(d) shall not be required to submit any other plan or
application in order to receive Federal funds to carry out the
activity or program.
(3) Coordination.--A State unified plan shall include--
[[Page 112 STAT.1244]]
(A) a description of the methods used for joint
planning and coordination of the programs and activities
included in the unified plan; and
(B) an assurance that the methods included an
opportunity for the entities responsible for planning or
administering such programs and activities to review and
comment on all portions of the unified plan.
(d) Approval by the Appropriate Secretaries.--
(1) Jurisdiction.--The appropriate Secretary shall have the
authority to approve the portion of the State unified plan
relating to the activity or program over which the appropriate
Secretary exercises administrative authority. On the approval of
the appropriate Secretary, the portion of the plan relating to
the activity or program shall be implemented by the State
pursuant to the applicable portion of the State unified plan.
(2) Approval.--
(A) In general.--A portion of the State unified plan
covering an activity or program described in subsection
(b) that is submitted to the appropriate Secretary under
this section shall be considered to be approved by the
appropriate Secretary at the end of the 90-day period
beginning on the day the appropriate Secretary receives
the portion, unless the appropriate Secretary makes a
written determination, during the 90-day period, that
the portion is not consistent with the requirements of
the Federal statute authorizing the activity or program
including the criteria for approval of a plan or
application, if any, under such statute or the plan is
not consistent with the requirements of subsection
(c)(3).
(B) Special rule.--In subparagraph (A), the term
``criteria for approval of a State plan'', relating to
activities carried out under title I or II or under the
Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2301 et seq.), includes a
requirement for agreement between the State and the
appropriate Secretary regarding State performance
measures, including levels of performance.
SEC. 502. <<NOTE: 20 USC 9272.>> 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. <<NOTE: 20 USC 9273.>> INCENTIVE GRANTS.
(a) <<NOTE: Effective date.>> In General.--Beginning on July 1,
2000, the Secretary shall award a grant to each State that exceeds the
State adjusted
[[Page 112 STAT.1245]]
levels of performance for title I, the expected levels of performance
for title II, and the levels of performance for programs under Public
Law 88-210 (as amended; 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 88-210 (as amended; 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 88-210 (as amended; 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.
SEC. 504. <<NOTE: 20 USC 9274.>> PRIVACY.
(a) Section 144 of the General Education Provisions Act.--Nothing in
this Act shall be construed to supersede the privacy protections
afforded parents and students under section 444 of the General Education
Provisions Act (20 U.S.C. 1232g), as added by the Family Educational
Rights and Privacy Act of 1974 (section 513 of Public Law 93-380; 88
Stat. 571).
(b) Prohibition on Development of National Database.--
(1) In general.--Nothing in this Act shall be construed to
permit the development of a national database of personally
identifiable information on individuals receiving services under
title I of this Act.
(2) Limitation.--Nothing in paragraph (1) shall be construed
to prevent the proper administration of national programs under
subtitles C and D of title I of this Act or to carry out program
management activities consistent with title I of this Act.
SEC. 505. <<NOTE: 20 USC 9275.>> BUY-AMERICAN REQUIREMENTS.
(a) Compliance With Buy American Act.--None of the funds made
available in this Act may be expended by an entity unless
[[Page 112 STAT.1246]]
the entity agrees that in expending the funds the entity will comply
with the Buy American Act (41 U.S.C. 10a et seq.).
(b) Sense of the Congress; Requirement Regarding Notice.--
(1) Purchase of american-made equipment and products.--In
the case of any equipment or product that may be authorized to
be purchased with financial assistance provided using funds made
available under this Act, it is the sense of the Congress that
entities receiving the assistance should, in expending the
assistance, purchase only American-made equipment and products.
(2) Notice to recipients of assistance.--In providing
financial assistance using funds made available under this Act,
the head of each Federal agency shall provide to each recipient
of the assistance a notice describing the statement made in
paragraph (1) by Congress.
(c) Prohibition of Contracts With Persons Falsely Labeling Products
as Made in America.--If it has been finally determined by a court or
Federal agency that any person intentionally affixed a label bearing a
``Made in America'' inscription, or any inscription with the same
meaning, to any product sold in or shipped to the United States that is
not made in the United States, the person shall be ineligible to receive
any contract or subcontract made with funds made available in this
subtitle, pursuant to the debarment, suspension, and ineligibility
procedures described in sections 9.400 through 9.409 of title 48, Code
of Federal Regulations, as such sections are in effect on the date of
enactment of this Act, or pursuant to any successor regulations.
SEC. 506. <<NOTE: 20 USC 9276.>> TRANSITION PROVISIONS.
(a) Workforce Investment Systems.--The Secretary of Labor shall take
such actions as the Secretary determines to be appropriate to provide
for the orderly transition from any authority under the Job Training
Partnership Act (29 U.S.C. 1501 et seq.) to the workforce investment
systems established under title I of this Act. Such actions shall
include the provision of guidance relating to the designation of State
workforce investment boards, local workforce investment areas, and local
workforce investment boards described in such title.
(b) Adult Education and Literacy Programs.--
(1) In general.--The Secretary of Education shall take such
actions as the Secretary determines to be appropriate to provide
for the transition from any authority under the Adult Education
Act (20 U.S.C. 1201 et seq.) to any authority under the Adult
Education and Family Literacy Act (as added by title II of this
Act).
(2) <<NOTE: Applicability.>> Limitation.--The authority to
take actions under paragraph (1) shall apply only for the 1-year
period beginning on the date of the enactment of this Act.
(c) <<NOTE: Deadlines. Federal Register, publications.>>
Regulations.--
(1) Interim final regulations.--Not later than 180 days
after the date of the enactment of this Act, the Secretary of
Labor shall develop and publish in the Federal Register interim
final regulations relating to the transition to, and
implementation of, this Act.
(2) Final regulations.--Not later than December 31, 1999,
the Secretary shall develop and publish in the Federal
[[Page 112 STAT.1247]]
Register final regulations relating to the transition to, and
implementation of, this Act.
(d) Expenditure of Funds During Transition.--
(1) In general.--Subject to paragraph (2) and in accordance
with regulations developed under subsection (b), States, grant
recipients, administrative entities, and other recipients of
financial assistance under the Job Training Partnership Act (29
U.S.C. 1501 et seq.) or under this Act may expend funds received
under the Job Training Partnership Act or under this Act, prior
to July 1, 2000, in order to plan and implement programs and
activities authorized under this Act.
(2) Additional requirements.--Not to exceed 2 percent of any
allotment to any State from amounts appropriated under the Job
Training Partnership Act or under this Act for fiscal year 1998
or 1999 may be made available to carry out paragraph (1) and not
less than 50 percent of any such amount used to carry out
paragraph (1) shall be made available to local entities for the
purposes described in such paragraph.
(e) <<NOTE: Deadline.>> Reorganization.--Not later than 1 year
after the date of the enactment of this Act, the Secretary of Labor
shall reorganize and align functions within the Department of Labor and
within the Employment and Training Administration in order to carry out
the duties and responsibilities required by this Act (and related laws)
in an effective and efficient manner.
SEC. 507. <<NOTE: 20 USC 9201 note.>> 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 the
enactment of this Act.
Approved August 7, 1998.
LEGISLATIVE HISTORY--H.R. 1385 (S. 1186):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 105-93 (Comm. on Education and the Workforce) and
105-659 (Comm. of Conference).
SENATE REPORTS: No. 105-109 accompanying S. 1186 (Comm. on Labor and
Human Resources).
CONGRESSIONAL RECORD:
Vol. 143 (1997):
May 16, considered and passed House.
Vol. 144 (1998):
May 1, 5, considered and passed
Senate, amended.
July 30, Senate agreed to conference
report.
July 31, House agreed to conference
report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998):
Aug. 7, Presidential remarks.
<all>