[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4501 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4501
To amend the Workforce Innovation and Opportunity Act to improve the
performance accountability system.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 11, 2024
Mr. Mullin introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Workforce Innovation and Opportunity Act to improve the
performance accountability system.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``WIOA Performance Accountability
Improvement Act''.
SEC. 2. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) State Performance Accountability Measures.--
(1) Primary indicators of performance.--Section
116(b)(2)(A) of the Workforce Innovation and Opportunity Act
(29 U.S.C. 3141(b)(2)(A)) is amended--
(A) in clause (i)--
(i) in subclause (II)--
(I) by striking ``fourth'' and
inserting ``second''; and
(II) by inserting ``and remain in
unsubsidized employment during the
fourth quarter after exit from the
program'' after ``the program'';
(ii) in subclause (V)--
(I) by striking ``, during a
program year,'';
(II) by striking ``are in'' and
inserting ``enter into''; and
(III) by inserting before the
semicolon at the end the following:
``within 6 months after the quarter in
which the participant enters into the
education or training program''; and
(iii) by amending subclause (VI) to read as
follows:
``(VI) of the program participants
who received training services and who
exited the program during a program
year, the percentage of such program
participants who completed, prior to
such exit, on-the-job training,
employer-directed skills development,
incumbent worker training, or an
apprenticeship.'';
(B) in clause (ii)--
(i) in subclause (II), by striking ``and''
at the end;
(ii) in subclause (III), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(IV) the percentage of program
participants who, during a program
year, participate in paid or unpaid
work experiences as described in
section 129(c)(2)(C).''; and
(C) by striking clause (iv).
(2) Levels of performance.--Section 116(b)(3)(A) of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3141(b)(3)(A)) is amended--
(A) by amending clause (iii) to read as follows:
``(iii) Identification in state plan.--
``(I) Secretaries.--For each State
submitting a State plan, the
Secretaries of Labor and Education
shall--
``(aa) not later than
December 1 of the calendar year
prior to the calendar year in
which such State plan is
submitted, for the first 2
program years covered by the
State plan, and not later than
December 1 of the year prior to
the third program year covered
by the State plan, for the
third and fourth program years
covered by the State plan,
propose expected levels of
performance for each of the
corresponding primary
indicators of performance for
each of the programs described
in clause (ii) for such State,
which levels shall--
``(AA) be
consistent with the
factors listed in
clause (v); and
``(BB) be proposed
in a manner that
ensures sufficient time
is provided for the
State to evaluate and
respond to such
proposals; and
``(bb) publish, on a public
website of the Department of
Labor, the statistical model
developed under clause (viii)
and the methodology used to
develop each such proposed
level of performance.
``(II) States.--Each State shall--
``(aa) evaluate each of the
expected levels of performance
proposed under subclause (I)
with respect to such State;
``(bb) based on such
evaluation of each such
proposed level of performance--
``(AA) accept the
expected level of
performance as so
proposed; or
``(BB) provide a
counterproposal for
such proposed expected
level of performance,
including an analysis
of how the
counterproposal
addresses factors or
circumstances unique to
the State that may not
have been accounted for
in the proposed
expected level of
performance; and
``(cc) include in the State
plan, with respect to each of
the corresponding primary
indicators of performance for
each of the programs described
in clause (ii) for such State--
``(AA) the expected
level of performance
proposed under
subclause (I);
``(BB) the
counterproposal for
such proposed level, if
any; and
``(CC) the expected
level of performance
that is agreed to under
clause (iv).''; and
(B) in clause (v)(II)--
(i) in the matter preceding item (aa), by
striking ``based on'' and inserting ``based on
(for each of the following factors that is
found to be predictive of performance on an
indicator for a program)''; and
(ii) in item (bb), by inserting ``, foster
care status, school status, education level,
highest grade level completed, low-income
status'' after ``ex-offender status''.
(b) Performance Reports.--Section 116(d) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3141(d)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) In general.--
``(A) Template for performance reports.--Not later
than 12 months after the date of enactment of the WIOA
Performance Accountability Improvement Act, the
Secretary of Labor, in conjunction with the Secretary
of Education, shall develop, or review and modify, as
appropriate, to comply with the requirements of this
subsection, the template for performance reports that
shall be used by States (including by States on behalf
of eligible providers of training services under
section 122) and local boards to produce a report on
outcomes achieved by the core programs. In developing,
or reviewing and modifying, such templates, the
Secretary of Labor, in conjunction with the Secretary
of Education, shall take into account the need to
maximize the value of the templates for workers,
jobseekers, employers, local elected officials, State
officials, Federal policymakers, and other key
stakeholders.
``(B) Standardized reporting.--In developing, or
reviewing and modifying, the template under
subparagraph (A), the Secretary of Labor, in
conjunction with the Secretary of Education, shall
ensure that States and local areas, in producing
performance reports for core programs and eligible
training providers, collect and report, in a comparable
and uniform format, information on common data
elements, which use terms that are assigned identical
meanings across all such reports.
``(C) Additional reporting.--The Secretary of
Labor, in conjunction with the Secretary of Education--
``(i) in addition to information on the
common data elements described in subparagraph
(B), may require a core program to provide
additional information as necessary for
effective reporting; and
``(ii) shall periodically review any
requirement for additional information to
ensure the requirement is necessary and does
not impose an undue reporting burden.'';
(2) in paragraph (2)--
(A) by redesignating subparagraphs (J) through (L)
as subparagraphs (K) through (M), respectively and
inserting after subparagraph (I) the following:
``(J) the median earnings gain of participants who
received training services, calculated as the
difference between--
``(i) median participant earnings in
unsubsidized employment during the second
quarter after program exit; and
``(ii) median participant earnings in
unsubsidized employment in the second quarter
prior to entering the program;''; and
(B) in subparagraph (L), as so redesignated, by
striking clause (ii); and
(C) by striking ``strategies for programs'' and all
that follows through ``the performance'', and inserting
``strategies for programs, the performance'';
(3) in paragraph (3)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) by redesignating subparagraph (C) as
subparagraph (E); and
(C) by inserting after subparagraph (B) the
following:
``(C) the percentage of the local area's allocation
under section 133(b) that the local area spent on
services paid for through an individual training
account described in section 134(c)(3)(F)(iii) or a
training contract described in section
134(c)(3)(G)(ii);
``(D) the percentage of the local area's allocation
under section 133(b) that the local area spent on
supportive services; and'';
(4) by amending paragraph (4) to read as follows:
``(4) Contents of eligible training providers performance
report.--
``(A) In general.--The State shall use the
information submitted by the eligible providers of
training services under section 122 and administrative
records, including quarterly wage records, of the
participants of the programs offered by the providers
to produce a performance report on the eligible
providers of training services in the State, which
shall include, subject to paragraph (6)(C)--
``(i) with respect to each program of study
(or the equivalent) of such a provider--
``(I) information specifying the
levels of performance achieved with
respect to the primary indicators of
performance described in subclauses (I)
through (IV) of subsection (b)(2)(A)(i)
with respect to all individuals
engaging in the program of study (or
the equivalent); and
``(II) the total number of
individuals exiting from the program of
study (or the equivalent);
``(ii) with respect to all such providers--
``(I) the total number of
participants who received training
services through each of the adult
program, and the dislocated worker
program, authorized under chapter 3 of
subtitle B, disaggregated by the type
of entity that provided the training,
during the most recent program year and
the 3 preceding program years;
``(II) the total number of
participants who exited from training
services, disaggregated by the type of
entity that provided the training,
during the most recent program year and
the 3 preceding program years;
``(III) the average cost for the
participants who received training
services, divided by the average
earnings received by such participants
during the second quarter after exit
from the program, disaggregated by the
type of entity that provided the
training, during the most recent
program year and the 3 preceding
program years; and
``(IV) the number of individuals
with barriers to employment served by
each of the adult program, and the
dislocated worker program, authorized
under chapter 3 of subtitle B,
disaggregated by each subpopulation of
such individuals, and by race,
ethnicity, sex, and age; and
``(iii) with respect to each recognized
postsecondary credential on the list of
credentials awarded by eligible providers in
the State described in section 122(d)--
``(I) information specifying the
levels of performance achieved with
respect to the primary indicators of
performance described in subclauses (I)
through (IV) of subsection (b)(2)(A)(i)
for all participants in the State
receiving such credential; and
``(II) information specifying the
levels of performance achieved with
respect to the primary indicators of
performance described in subclauses (I)
through (IV) of subsection (b)(2)(A)(i)
for participants in the State receiving
such credential with respect to
individuals with barriers to
employment, disaggregated by each
subpopulation of such individuals, and
by race, ethnicity, sex, and age.'';
and
(5) in paragraph (6)--
(A) by amending subparagraph (A) to read as
follows:
``(A) State performance reports.--The Secretary of
Labor and the Secretary of Education shall annually
make available the performance reports for States
containing the information described in paragraph (2),
which shall include making such reports available--
``(i) digitally using transparent, linked,
open, and interoperable data formats that are
human readable and machine actionable such that
the data from these reports--
``(I) is easily understandable; and
``(II) can be easily included in
web-based tools and services supporting
search, discovery, comparison,
analysis, navigation, and guidance; and
``(ii) in a printable format.''; and
(B) in subparagraph (B)--
(i) by striking ``(including by electronic
means), in an easily understandable format,'';
and
(ii) by adding at the end the following:
``The Secretary of Labor and the Secretary of
Education shall include, on the website where
the State performance reports required under
subparagraph (A) are made available, a link to
local area performance reports and the eligible
training provider report for each State. Such
reports shall be made available in each of the
formats described in subparagraph (A).''.
(c) Evaluation of State Programs.--Section 116(e) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3141(e)) is amended--
(1) in paragraph (1)--
(A) in the first sentence, by striking ``shall
conduct ongoing'' and inserting ``shall use data to
conduct analyses and ongoing''; and
(B) in the second sentence, by striking ``conduct
the'' and inserting ``conduct such analyses and''; and
(2) in paragraph (2), by adding ``A State may use other
forms of analysis, such as machine learning or other advanced
analytics, to improve program operations and outcomes and to
identify areas for further evaluation.'' at the end.
(d) Sanctions for State Failure To Meet State Performance
Accountability Measures.--Section 116(f) of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3141(f)) is amended to read as follows:
``(f) Sanctions for State Failure To Meet State Performance
Accountability Measures.--
``(1) Targeted support and assistance.--
``(A) In general.--If a State fails to meet 80
percent of the State adjusted level of performance for
an indicator described in subsection (b)(2)(A) for a
program for any program year, the Secretary of Labor
and the Secretary of Education shall provide technical
assistance.
``(B) Sanctions.--
``(i) In general.--If the State fails in
the manner described in subclause (I) or (II)
of clause (ii) with respect to a program year,
the percentage of each amount that would (in
the absence of this paragraph) be reserved by
the Governor under section 128(a)(1) for the
immediately succeeding program year shall be
reduced by 5 percentage points.
``(ii) Failures.--A State shall be subject
to clause (i)--
``(I) if (except in the case of
exceptional circumstances as determined
by the Secretary of Labor or the
Secretary of Education, as
appropriate), such State fails to
submit a report under subsection (d)
for the appropriate program year; or
``(II) for a failure under
subparagraph (A) that continues for a
second consecutive year.
``(2) Comprehensive support and assistance.--
``(A) In general.--If a State fails to meet an
average of 90 percent of the State adjusted levels of
performance for a single program across all
corresponding performance indicators for any program
year, or if a State fails to meet an average of 90
percent of the State adjusted levels of performance for
a single corresponding performance indicator across all
programs for any program year, the Secretary of Labor
and the Secretary of Education shall provide technical
assistance, as described and authorized under section
168(b), including assistance in the development of a
comprehensive performance improvement plan.
``(B) Second consecutive year failure.--If such
failure under subparagraph (A) continues for a second
consecutive year, the percentage of each amount that
would (in the absence of this subsection) be reserved
by the Governor under section 128(a)(1) for the
immediately succeeding program year shall be reduced by
10 percentage points.
``(3) Reallotment of reductions.--Any amounts not reserved
under section 128(a)(1) for a State for a program year pursuant
to paragraph (1)(B) or (2)(B) of this subsection shall be
realloted to other States in a manner consistent with paragraph
(1)(B) or (2)(B) of section 132(b).''.
(e) Sanctions for Local Area Failure To Meet Local Performance
Accountability Measures.--Section 116(g) of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3141(g)) is amended--
(1) in paragraph (1)--
(A) by inserting ``80 percent of the'' before
``local performance''; and
(B) by striking ``local performance accountability
measures'' and inserting ``local level of performance
for a single corresponding performance indicator for a
single program, an average of 90 percent of the local
levels of performance across all corresponding
performance indicators for a single program, or an
average of 90 percent of the local levels of
performance for a single corresponding performance
indicator across all programs,''; and
(2) in paragraph (2)--
(A) by amending subparagraph (A) to read as
follows:
``(A) In general.--If such failure continues, the
Governor shall take corrective actions, which shall
include--
``(i) in the case of a failure, as
described in paragraph (1), for a second
consecutive year, on any individual indicator,
across indicators for a single program, or on a
single indicator across programs, a 5-percent
reduction in the amount that would have
otherwise been provided (in the absence of this
clause) to the local area for the immediately
succeeding program year under chapter 2 or 3 of
subtitle B for the program subject to the
performance failure;
``(ii) in the case of a failure, as
described in paragraph (1), for a third
consecutive year, the development of a
reorganization plan through which the Governor
shall--
``(I) require the appointment and
certification of a new local board,
consistent with the criteria
established under section 107(b);
``(II) prohibit the use of one-stop
partners identified as achieving a poor
level of performance; and
``(III) revise or redesignate a
local area, which may include merging a
local area with another local area if
the Governor determines that the likely
cause of such continued performance
failure of a local area is due to such
local area's designation being granted
without the appropriate consideration
of parameters described under section
106(b)(1)(B); or
``(iii) other significant actions
determined appropriate by the Governor.'';
(B) in subparagraph (B)(i), by inserting ``(ii)''
after ``subparagraph (A)''; and
(C) by adding at the end the following:
``(D) Reallocation of reductions.--Any amounts not
allocated under chapter 2 or 3 of subtitle B to a local
area for a program year pursuant to subparagraph (A)(i)
retained by the Governor and added to the funds
reserved under section 128(a)(1) or 133(a)(1), as
applicable.''.
(f) Establishing Pay-for-Performance Contract Strategy
Incentives.--Section 116(h) of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3141(h)) is amended by striking ``non-Federal funds''
and inserting ``the funds reserved under section 128(a)(1)''.
(g) Fiscal and Management Accountability Information Systems.--
Section 116(i) of the Workforce Innovation and Opportunity Act (29
U.S.C. 3141(i)) is amended--
(1) in paragraph (2), by inserting ``, and may use
information provided from the National Directory of New Hires
in accordance with section 453(j)(8) of the Social Security Act
(42 U.S.C. 653(j)(8))'' after ``State law'';
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following:
``(3) Designated entity.--The Governor shall designate a
State agency (or appropriate State entity) to assist in
carrying out the performance reporting requirements for core
programs and eligible providers of training services. The
designated State agency (or appropriate State entity) shall be
responsible for--
``(A) facilitating data matches using quarterly
wage record information, including wage record
information made available by other States, to measure
employment and earnings outcomes;
``(B) data validation and reliability, as described
in subsection (d)(5); and
``(C) protection against disaggregation that would
violate applicable privacy standards, as described in
subsection (d)(6)(C).''.
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