H. Rept. 104-707 - 104th Congress (1995-1996)

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House Report 104-707 - WORKFORCE AND CAREER DEVELOPMENT ACT OF 1996

[House Report 104-707]
[From the U.S. Government Printing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-707
_______________________________________________________________________


 
              WORKFORCE AND CAREER DEVELOPMENT ACT OF 1996

                                _______
                                

                 July 25, 1996.--Ordered to be printed

_______________________________________________________________________


Mr. Goodling, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 1617]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendments of the Senate to the bill 
(H.R. 1617), to consolidate and reform workforce development 
and literacy programs, and for other purposes, having met, 
after full and free conference, have agreed to recommend and do 
recommend to their respective Houses as follows:
      That the House recede from its disagreement to the 
amendment of the Senate to the text of the bill and agree to 
the same with an amendment as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Workforce and Career 
Development Act of 1996''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Purpose and policy.
Sec. 4. Definitions.
Sec. 5. General provision.

       TITLE I--STATEWIDE WORKFORCE AND CAREER DEVELOPMENT SYSTEMS

                 Subtitle A--State and Local Provisions

Sec. 101. Statewide workforce and career development systems 
          established.
Sec. 102. State allotments.
Sec. 103. State apportionment by activity.
Sec. 104. State plan.
Sec. 105. Collaborative process.
Sec. 106. Accountability.
Sec. 107. Identification of eligible providers of training services.
Sec. 108. Local workforce development boards.

                         Subtitle B--Allocation

Sec. 111. Distribution for employment and training activities.
Sec. 112. Distribution for at-risk youth activities.
Sec. 113. Funding for State vocational education activities and 
          distribution for secondary school vocational education.
Sec. 114. Distribution for postsecondary and adult vocational education.
Sec. 115. Special rules for vocational education.
Sec. 116. Distribution for adult education and literacy.
Sec. 117. Distribution for flexible activities.

                        Subtitle C--Use of Funds

Sec. 121. Employment and training activities.
Sec. 122. At-risk youth activities.
Sec. 123. Vocational education activities.
Sec. 124. Adult education and literacy activities.
Sec. 125. Flexible activities.
Sec. 126. Requirements and restrictions relating to use of funds.

                     Subtitle D--National Activities

Sec. 131. Coordination provisions.
Sec. 132. Incentive grants and sanctions.
Sec. 133. National emergency grants.
Sec. 134. Evaluation; research, demonstrations, dissemination, and 
          technical assistance.
Sec. 135. Migrant and seasonal farmworker program.
Sec. 136. Native American Program.
Sec. 137. Grants to outlying areas.
Sec. 138. National Institute for Literacy.
Sec. 139. Labor market information.

                    Subtitle E--Transition Provisions

Sec. 141. Waivers.
Sec. 142. Technical assistance.
Sec. 143. Applications and plans under covered Acts.
Sec. 144. Interim authorizations of appropriations.

                     Subtitle F--General Provisions

Sec. 151. Authorization of appropriations.
Sec. 152. Local expenditures contrary to title.
Sec. 153. Effective dates.

      TITLE II--WORKFORCE AND CAREER DEVELOPMENT-RELATED ACTIVITIES

             Subtitle A--Amendments to the Wagner-Peyser Act

Sec. 201. Definitions.
Sec. 202. Functions.
Sec. 203. Designation of State agencies.
Sec. 204. Appropriations.
Sec. 205. Disposition of allotted funds.
Sec. 206. State plans.
Sec. 207. Repeal of Federal Advisory Council.
Sec. 208. Regulations.
Sec. 209. Effective date.

        Subtitle B--Amendments to the Rehabilitation Act of 1973

Sec. 211. References.
Sec. 212. Findings and purposes.
Sec. 213. Definitions.
Sec. 214. Administration.
Sec. 215. Reports.
Sec. 216. Evaluation.
Sec. 217. Declaration of policy.
Sec. 218. State plans.
Sec. 219. Individualized employment plans.
Sec. 220. State Rehabilitation Advisory Council.
Sec. 221. Evaluation standards and performance indicators.
Sec. 222. Effective date.

                          Subtitle C--Job Corps

Sec. 231. Definitions.
Sec. 232. Purposes.
Sec. 233. Establishment.
Sec. 234. Individuals eligible for the Job Corps.
Sec. 235. Screening and selection of applicants.
Sec. 236. Enrollment and assignment.
Sec. 237. Job Corps centers.
Sec. 238. Program activities.
Sec. 239. Support.
Sec. 240. Operating plan.
Sec. 241. Standards of conduct.
Sec. 242. Community participation.
Sec. 243. Counseling and placement.
Sec. 244. Advisory committees.
Sec. 245. Application of provisions of Federal law.
Sec. 246. Special provisions.
Sec. 247. Review of Job Corps Centers.
Sec. 248. Administration.
Sec. 249. Authorization of appropriations.
Sec. 250. Effective date.

       Subtitle D--Amendments to the National Literacy Act of 1991

Sec. 261. Extension of functional literacy and life skills program for 
          State and local prisoners.

                    TITLE III--MUSEUMS AND LIBRARIES

Sec. 301. Museum and library services.
Sec. 302. National Commission on Libraries and Information Science.
Sec. 303. Transfer of functions from Institute of Museum Services.
Sec. 304. Service of individuals serving on date of enactment.
Sec. 305. Consideration.
Sec. 306. Transition and transfer of funds.

                       TITLE IV--HIGHER EDUCATION

Sec. 401. Reorganization of the Student Loan Marketing Association 
          through the formation of a holding company.
Sec. 402. Connie Lee privatization.
Sec. 403. Eligible institution.

               TITLE V--REPEALS AND CONFORMING AMENDMENTS

Sec. 501. Repeals.
Sec. 502. Conforming amendments.
Sec. 503. Effective dates.

SEC. 3. PURPOSE AND POLICY.

    (a) Purpose.--The purpose of this Act is to transform the 
vast array of Federal education, employment, and job training 
programs from a collection of fragmented and duplicative 
categorical programs into streamlined, coherent, and 
accountable statewide systems designed--
            (1) to develop more fully the academic, 
        occupational, and literacy skills of all segments of 
        the population of the United States; and
            (2) to meet the needs of employers in the United 
        States to be competitive.
    (b) Policy.--It is the sense of the Congress that adult 
education and literacy activities are a key component of any 
successful statewide workforce and career development system.

SEC. 4. DEFINITIONS.

    Except as otherwise specified in this Act, as used in this 
Act:
            (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;
                    (C)(i) who lack sufficient mastery of basic 
                educational skills to enable the individuals to 
                function effectively in society; or
                    (ii) who do not have a certificate of 
                graduation from a school providing secondary 
                education and who have not achieved an 
                equivalent level of education; and
                    (D) who lack a mastery of basic skills and 
                are therefore unable to speak, read, or write 
                the English language.
            (2) Adult education and literacy activities.--The 
        term ``adult education and literacy activities'' means 
        the activities authorized in section 124.
            (3) All aspects of the industry.--The term ``all 
        aspects of the industry'' means strong experience in, 
        and comprehensive understanding of, the industry that 
        individuals are preparing to enter.
            (4) Area vocational education school.--The term 
        ``area vocational education school'' means--
                    (A) a specialized secondary school used 
                exclusively or principally for the provision of 
                vocational education to individuals who are 
                available for study in preparation for entering 
                the labor market;
                    (B) the department of a secondary school 
                exclusively or principally used for providing 
                vocational education in not fewer than 5 
                different occupational fields to individuals 
                who are available for study in preparation for 
                entering the labor market;
                    (C) a technical institute or vocational 
                school used exclusively or principally for the 
                provision of vocational education to 
                individuals who have completed or left 
                secondary school and who are available for 
                study in preparation for entering the labor 
                market, if the institute or school admits as 
                regular students both individuals who have 
                completed secondary school and individuals who 
                have left secondary school; or
                    (D) the department or division of a junior 
                college, or community college, that operates 
                under the policies of the eligible agency and 
                that provides vocational education in not fewer 
                than 5 different occupational fields leading to 
                immediate employment but not necessarily 
                leading to a baccalaureate degree, if the 
                department or division admits as regular 
                students both individuals who have completed 
                secondary school and individuals who have left 
                secondary school.
            (5) At-risk youth.--The term ``at-risk youth'' 
        means an individual who--
                    (A) is not less than age 15 and not more 
                than age 21;
                    (B) is low-income, defined as an individual 
                who meets the requirements of subparagraph (A), 
                (B), or (C) of paragraph (31); and
                    (C) is 1 or more of the following:
                            (i) A school dropout.
                            (ii) Homeless, a runaway, or a 
                        foster child.
                            (iii) Pregnant or a parent.
                            (iv) An offender.
                            (v) An individual who requires 
                        additional education, training, 
                        counseling, or related assistance in 
                        order to participate successfully in 
                        regular schoolwork, to complete an 
                        educational program, or to secure and 
                        hold employment.
            (6) At-risk youth activities.--The term ``at-risk 
        youth activities'' means the activities authorized in 
        section 122, carried out for at-risk youth.
            (7) Career grant.--The term ``career grant'' means 
        a voucher or credit issued to a participant under 
        subsection (e)(3) or (g) of section 121 for the 
        purchase of training services from eligible providers 
        of such services.
            (8) Career guidance and counseling.--The term 
        ``career guidance and counseling'' means a program 
        that--
                    (A) pertains to a body of subject matter 
                and related techniques and methods organized 
                for the development of career awareness, career 
                planning, career decisionmaking, placement 
                skills, and knowledge and understanding of 
                local, State, and national occupational, 
                educational, and labor market needs, trends, 
                and opportunities, in individuals;
                    (B) assists such individuals in making and 
                implementing informed educational and 
                occupational choices;
                    (C) is comprehensive in nature; and
                    (D) with respect to minors, includes the 
                involvement of parents, where practicable.
            (9) Chief elected official.--The term ``chief 
        elected official'' means the chief elected executive 
        officer of a unit of general local government in a 
        local workforce development area.
            (10) Community-based organization.--The term 
        ``community-based organization'' means a private 
        nonprofit organization of demonstrated effectiveness 
        that is representative of a community or a significant 
        segment of a community.
            (11) Cooperative education.--The term ``cooperative 
        education'' means a method of instruction of education 
        for individuals who, through written cooperative 
        arrangements between a school and employers, receive 
        instruction, including required academic courses and 
        related instruction, by alternation of study in school 
        with a job in any occupational field, which alternation 
        shall be planned and supervised by the school and 
        employer so that each contributes to the education and 
        employability of the individual, and may include an 
        arrangement in which work periods and school attendance 
        may be on alternate half days, full days, weeks, or 
        other periods of time in fulfilling the cooperative 
        program.
            (12) Covered activity.--The term ``covered 
        activity'' means an activity authorized to be carried 
        out under a provision described in section 501(f) (as 
        such provision was in effect on the day before the date 
        of enactment of this Act).
            (13) Dislocated worker.--The term ``dislocated 
        worker'' means an individual who--
                    (A)(i) has been terminated or laid off, or 
                who has received a notice of termination or 
                layoff, from employment;
                    (ii) is eligible for or has exhausted 
                entitlement to unemployment compensation; and
                    (iii) is unlikely to return to a previous 
                industry or occupation;
                    (B) has been terminated or laid off, or has 
                received a notice of termination or layoff, 
                from employment as a result of any permanent 
                closure of, or any substantial layoff at, a 
                plant, facility, or enterprise;
                    (C) has been unemployed long-term and has 
                limited opportunities for employment or 
                reemployment in the same or a similar 
                occupation in the area in which such individual 
                resides;
                    (D) was self-employed (including a farmer 
                and a rancher) but is unemployed as a result of 
                general economic conditions in the community in 
                which the individual resides or because of 
                natural disasters;
                    (E) is a displaced homemaker; or
                    (F) has become unemployed as a result of a 
                Federal action that limits the use of, or 
                restricts access to, a marine natural resource.
            (14) Displaced homemaker.--The term ``displaced 
        homemaker'' means an individual who--
                    (A) has attained 16 years of age; and
                    (B)(i) has worked primarily without 
                remuneration to care for a home and family, and 
                for that reason has diminished marketable 
                skills; or
                    (ii) is a parent whose youngest dependent 
                child will become ineligible to receive 
                assistance under the program for aid to 
                families with dependent children under part A 
                of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.) not later than 2 years 
                after the date on which the parent applies for 
                assistance under this title.
            (15) 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 provide the 
        service or program to a local educational agency.
            (16) Eligible agency.--The term ``eligible agency'' 
        means--
                    (A) in the case of vocational education 
                activities or requirements described in title 
                I--
                            (i) the individual, entity, or 
                        agency in a State responsible for 
                        administering or setting policies for 
                        vocational education in such State 
                        pursuant to State law; or
                            (ii) if no individual, entity, or 
                        agency is responsible for administering 
                        or setting such policies pursuant to 
                        State law, the individual, entity, or 
                        agency in a State responsible for 
                        administering or setting policies for 
                        vocational education in such State on 
                        the date of enactment of this Act; and
                    (B) in the case of adult education and 
                literacy activities or requirements described 
                in title I--
                            (i) the individual, entity, or 
                        agency in a State responsible for 
                        administering or setting policies for 
                        adult education and literacy services 
                        in such State pursuant to State law; or
                            (ii) if no individual, entity, or 
                        agency is responsible for administering 
                        or setting such policies pursuant to 
                        State law, the individual, entity, or 
                        agency in a State responsible for 
                        administering or setting policies for 
                        adult education and literacy services 
                        in such State on the date of enactment 
                        of this Act.
            (17) Eligible institution.--The term ``eligible 
        institution'', used with respect to vocational 
        education activities, means a local educational agency, 
        an area vocational education school, an educational 
        service agency, an institution of higher education (as 
        such term is defined in section 1201(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1141(a))), a State 
        corrections educational agency, and a consortium of 
        such entities.
            (18) Eligible provider.--The term ``eligible 
        provider'', used with respect to--
                    (A) one-stop career centers, means a 
                provider who is designated or certified in 
                accordance with section 108(d)(2)(A);
                    (B) training services (other than on-the-
                job training), means a provider who is 
                identified in accordance with section 107;
                    (C) at-risk youth activities, means a 
                provider who is awarded a grant in accordance 
                with subsection (c) or (d) of section 112;
                    (D) vocational education activities 
                described in section 123(b), means a provider 
                determined to be eligible for assistance in 
                accordance with section 113 or 114;
                    (E) adult education activities described in 
                section 124(b), means a provider determined to 
                be eligible for assistance in accordance with 
                section 116; or
                    (F) other workforce and career development 
                activities, means a public or private entity 
                selected to be responsible for such activities, 
                in accordance with this title.
            (19) Employment and training activities.--The term 
        ``employment and training activities'' means the 
        activities authorized in section 121.
            (20) English literacy program.--The term ``English 
        literacy program'' means a program of instruction 
        designed to help individuals of limited English 
        proficiency achieve full competence in the English 
        language.
            (21) Family and consumer sciences programs.--The 
        term ``family and consumer sciences programs'' means 
        instructional programs, services, and activities that 
        prepare students for personal, family, community, and 
        career roles.
            (22) Family literacy services.--The term ``family 
        literacy services'' means services that are of 
        sufficient intensity in terms of hours, and of 
        sufficient duration, to make sustainable changes in a 
        family and that integrate all of the following 
        activities:
                    (A) Interactive literacy activities between 
                parents and their children.
                    (B) Training for parents on how to be the 
                primary teacher for their children and full 
                partners in the education of their children.
                    (C) Parent literacy training.
                    (D) An age-appropriate education program 
                for children.
            (23) Flexible activities.--The term ``flexible 
        activities'' means the activities authorized in section 
        125.
            (24) Individual of limited english proficiency.--
        The term ``individual of limited English proficiency'' 
        means an individual--
                    (A) who has limited ability in speaking, 
                reading, or writing the English language; and
                    (B)(i) whose native language is a language 
                other than English; or
                    (ii) who lives in a family or community 
                environment where a language other than English 
                is the dominant language.
            (25) 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 1 individual with a disability.
            (26) Labor market area.--The term ``labor market 
        area'' means an economically integrated geographic area 
        within which individuals can--
                    (A) find employment within a reasonable 
                distance from their place of residence; or
                    (B) readily change employment without 
                changing their place of residence.
            (27) Literacy.--The term ``literacy'', used with 
        respect to an individual, means the ability of the 
        individual to speak, read, and write English, and 
        compute and solve problems, at levels of proficiency 
        necessary--
                    (A) to function on the job, in the family 
                of the individual, and in society;
                    (B) to achieve the goals of the individual; 
                and
                    (C) to develop the knowledge potential of 
                the individual.
            (28) Local board.--The term ``local board'' means a 
        local workforce development board established under 
        section 108.
            (29) Local educational agency.--The term ``local 
        educational agency'' has the meaning given such term in 
        section 14101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 8801).
            (30) Local workforce development area.--The term 
        ``local workforce development area'' means a local 
        workforce development area identified in accordance 
        with section 104(b)(4).
            (31) Low-income individual.--The term ``low-income 
        individual'' means an individual who--
                    (A) receives, or is a member of a family 
                that receives, cash welfare payments under a 
                Federal, State, or local welfare program;
                    (B) had received an income, or is a member 
                of a family that had received a total family 
                income, for the 6-month period prior to 
                application for the program involved (exclusive 
                of unemployment compensation, child support 
                payments, and payments described in 
                subparagraph (A)) that, in relation to family 
                size, does not exceed the higher of--
                            (i) the poverty line (as defined by 
                        the Office of Management and Budget, 
                        and revised annually in accordance with 
                        section 673(2) of the Community 
                        Services Block Grant Act (42 U.S.C. 
                        9902(2)), 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 of 
                the Secretary, 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.
            (32) 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.
            (33) On-the-job training.--The term ``on-the-job 
        training'' means training in the public or private 
        sector that is provided to a paid participant while 
        engaged in productive work in a job that--
                    (A) provides knowledge or skills essential 
                to the full and adequate performance of the 
                job;
                    (B) provides reimbursement to employers of 
                up to 50 percent of the wage rate of the 
                participant, for the extraordinary costs of 
                providing the training and additional 
                supervision related to the training; and
                    (C) is limited in duration as appropriate 
                to the occupation for which the participant is 
                being trained.
            (34) Outlying area.--The term ``outlying area'' 
        means the United States Virgin Islands, Guam, American 
        Samoa, the Commonwealth of the Northern Mariana 
        Islands, the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of 
        Palau.
            (35) Participant.--The term ``participant'', used 
        with respect to an activity carried out under this Act, 
        means an individual participating in the activity.
            (36) Pell grant recipient.--The term ``Pell Grant 
        recipient'' means a recipient of financial aid under 
        subpart 1 of part A of title IV of the Higher Education 
        Act of 1965 (20 U.S.C. 1070a et seq.).
            (37) Postsecondary educational institution.--The 
        term ``postsecondary educational institution'' means an 
        institution of higher education (as such term is 
        defined in section 481 of the Higher Education Act of 
        1965 (20 U.S.C. 1088)) that continues to meet the 
        eligibility and certification requirements under title 
        IV of such Act (20 U.S.C. 1070 et seq.).
            (38) Rapid response assistance.--The term ``rapid 
        response assistance'' means assistance provided by a 
        State, or by an entity designated by a State, with 
        funds provided by the State under section 111(a)(2)(B), 
        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) the provision of emergency assistance 
                adapted to the particular closure, layoff, or 
                disaster; and
                    (D) 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) Secretaries.--The term ``Secretaries'' means 
        the Secretary of Labor and the Secretary of Education, 
        in accordance with the interagency agreement described 
        in section 131.
            (42) Sequential course of study.--The term 
        ``sequential course of study'' means an integrated 
        series of courses that are directly related to the 
        educational and occupational skill preparation of an 
        individual for a job, or to preparation for 
        postsecondary education.
            (43) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.
            (44) State benchmarks.--The term ``State 
        benchmarks'', used with respect to a State, means--
                    (A) the quantifiable benchmarks required 
                under section 106(b) and identified in the 
                report submitted under section 106(c); and
                    (B) such other quantifiable benchmarks of 
                the statewide progress of the State toward 
                meeting the State goals as the State may 
                identify in the report submitted under section 
                106(c).
            (45) State educational agency.--The term ``State 
        educational agency'' has the meaning given such term in 
        section 14101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 8801).
            (46) State goals.--The term ``State goals'', used 
        with respect to a State, means--
                    (A) the goals specified in section 106(a); 
                and
                    (B) such other major goals of the statewide 
                system of the State as the State may identify 
                in the report submitted under section 106(c).
            (47) Statewide system.--The term ``statewide 
        system'' means a statewide workforce and career 
        development system, referred to in section 101, that 
        includes employment and training activities, activities 
        carried out pursuant to the Wagner-Peyser Act (29 
        U.S.C. 49 et seq.), at-risk youth activities, 
        vocational education activities, and adult education 
        and literacy activities, in the State.
            (48) Supportive services.--The term ``supportive 
        services'' means services such as transportation, child 
        care, dependent care, and needs-based payments, that 
        are necessary to enable an individual to participate in 
        employment and training activities or at-risk youth 
        activities.
            (49) Tech-prep program.--The term ``tech-prep 
        program'' means a program of study that--
                    (A) combines at least 2 years of secondary 
                education (as determined under State law) and 2 
                years of postsecondary education in a 
                nonduplicative sequential course of study;
                    (B) integrates academic and vocational 
                instruction and utilizes worksite learning 
                where appropriate;
                    (C) provides technical preparation in an 
                area such as engineering technology, applied 
                science, a mechanical, industrial, or practical 
                art or trade, agriculture, a health occupation, 
                business, or applied economics;
                    (D) builds student competence in 
                mathematics, science, communications, 
                economics, and workplace skills, through 
                applied academics and integrated instruction in 
                a coherent sequence of courses;
                    (E) leads to an associate degree or a 
                certificate in a specific career field; and
                    (F) leads to placement in appropriate 
                employment or further education.
            (50) 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.
            (51) Veteran.--The term ``veteran'' has the meaning 
        given such term in section 101(2) of title 38, United 
        States Code.
            (52) Vocational education.--The term ``vocational 
        education'' means organized educational programs that--
                    (A) offer a sequence of courses that 
                provide individuals with the academic knowledge 
                and skills the individuals need to prepare for 
                further education and careers in current or 
                emerging employment sectors; and
                    (B) include competency-based applied 
                learning that contributes to the academic 
                knowledge, higher-order reasoning and problem-
                solving skills, work attitudes, general 
                employability skills, and occupation-specific 
                skills, of an individual.
            (53) Vocational education activities.--The term 
        ``vocational education activities'' means the 
        activities authorized in section 123.
            (54) Vocational rehabilitation program.--The term 
        ``vocational rehabilitation program'' means a program 
        assisted under title I of the Rehabilitation Act of 
        1973 (29 U.S.C. 720 et seq.).
            (55) Vocational student organization.--The term 
        ``vocational student organization'' means an 
        organization, for individuals enrolled in programs of 
        vocational education activities, that engages in 
        activities as an integral part of the instructional 
        component of such programs, which organization may have 
        State and national units.
            (56) Workforce and career development activities.--
        The term ``workforce and career development 
        activities'' means employment and training activities, 
        at-risk youth activities, vocational education 
        activities, and adult education and literacy 
        activities.

SEC. 5. GENERAL PROVISION.

    None of the funds made available under this Act shall be 
used--
            (1) to require any participant to choose or pursue 
        a specific career path or major;
            (2) to require any participant to enter into a 
        specific course of study that requires, as a condition 
        of completion, attainment of a federally funded or 
        endorsed industry-recognized skill or standard; or
            (3) to require any participant to attain or obtain 
        a federally funded or endorsed industry-recognized 
        skill, certificate, or standard, unless the participant 
        has selected and is participating in a program or 
        course of study that requires, as a condition of 
        completion, attainment of an industry-recognized skill 
        or standard.

      TITLE I--STATEWIDE WORKFORCE AND CAREER DEVELOPMENT SYSTEMS

                 Subtitle A--State and Local Provisions

SEC. 101. STATEWIDE WORKFORCE AND CAREER DEVELOPMENT SYSTEMS 
                    ESTABLISHED.

    For program year 1998 and each subsequent program year, the 
Secretaries shall make allotments under section 102 to States 
to assist the States in paying for the cost of establishing 
statewide workforce and career development systems and carrying 
out workforce and career development activities through such 
statewide systems, in accordance with this title.

SEC. 102. STATE ALLOTMENTS.

    (a) In General.--The Secretaries shall allot to each State 
that meets the requirements of subsection (e) an amount equal 
to the total of the amounts made available under subparagraphs 
(A), (B), (C), and (D) of subsection (b)(2), adjusted in 
accordance with subsections (c) and (d).
    (b) Allotments Based on Populations.--
            (1) Definitions.--As used in this subsection:
                    (A) Adult recipient of assistance.--The 
                term ``adult recipient of assistance'' means a 
                recipient of assistance under a State program 
                funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.) who is not 
                a dependent child (as defined in section 406(a) 
                of such Act (42 U.S.C. 606(a))).
                    (B) Individual in poverty.--The term 
                ``individual in poverty'' means an individual 
                who--
                            (i) is not less than age 16;
                            (ii) is not more than age 64; and
                            (iii) is a member of a family (of 1 
                        or more members) with an income that 
                        does not exceed the poverty line.
                    (C) Poverty line.--The term ``poverty 
                line'' means the poverty line (as defined by 
                the Office of Management and Budget, and 
                revised annually in accordance with section 
                673(2) of the Community Services Block Grant 
                Act (42 U.S.C. 9902(2)) applicable to a family 
                of the size involved, using the most recent 
                available data provided by the Bureau of the 
                Census, prior to the program year for which the 
                allotment is made, and applying the definition 
                of poverty used by the Bureau of the Census in 
                compiling the 1990 decennial census.
            (2) Calculation.--Except as provided in subsections 
        (c) and (d), from the amount reserved under section 
        151(b)(1), the Secretaries--
                    (A) using funds equal to 60 percent of such 
                reserved amount, shall make available to each 
                State an amount that bears the same 
                relationship to such funds as the total number 
                of individuals who are not less than age 15 and 
                not more than age 65 (as determined by the 
                Secretaries using the most recent available 
                data provided by the Bureau of the Census, 
                prior to the program year for which the 
                allotment is made) in the State bears to the 
                total number of such individuals in all States;
                    (B) using funds equal to 20 percent of such 
                reserved amount, shall make available to each 
                State an amount that bears the same 
                relationship to such funds as the total number 
                of individuals in poverty in the State bears to 
                the total number of individuals in poverty in 
                all States;
                    (C) using funds equal to 10 percent of such 
                reserved amount, shall make available to each 
                State an amount that bears the same 
                relationship to such funds as the average 
                number of unemployed individuals (as determined 
                by the Secretary of Labor for the most recent 
                24-month period for which data are available, 
                prior to the program year for which the 
                allotment is made) in the State bears to the 
                average number of unemployed individuals (as so 
                determined) in all States; and
                    (D) using funds equal to 10 percent of such 
                reserved amount, shall make available to each 
                State an amount that bears the same 
                relationship to such funds as the average 
                monthly number of adult recipients of 
                assistance (as determined by the Secretary of 
                Health and Human Services for the most recent 
                12-month period for which data are available, 
                prior to the program year for which the 
                allotment is made) in the State bears to the 
                average monthly number of adult recipients of 
                assistance (as so determined) in all States.
    (c) Minimum State Allotment.--
            (1) Definition.--As used in this subsection, the 
        term ``national average per capita payment'', used with 
        respect to a program year, means the amount obtained by 
        dividing--
                    (A) the amount reserved under section 
                151(b)(1) for the program year; by
                    (B) the total number of individuals who are 
                not less than age 15 and not more than age 65 
                (as determined by the Secretaries using the 
                most recent available data provided by the 
                Bureau of the Census, prior to the program year 
                for which the allotment is made) in all States.
            (2) Minimum allotment.--Except as provided in 
        paragraph (3) and subsection (d), no State shall 
        receive an allotment under this section for a program 
        year in an amount that is less than 0.5 percent of the 
        amount reserved under section 151(b)(1) for the program 
        year.
            (3) Limitation.--No State that receives an increase 
        in an allotment under this section for a program year 
        as a result of the application of paragraph (2) shall 
        receive an allotment under this section for the program 
        year in an amount that is more than the product 
        obtained by multiplying--
                    (A) the total number of individuals who are 
                not less than age 15 and not more than age 65 
                (as determined by the Secretaries using the 
                most recent available data provided by the 
                Bureau of the Census, prior to the program year 
                for which the allotment is made) in the State; 
                and
                    (B) the product obtained by multiplying--
                            (i) 1.5; and
                            (ii) the national average per 
                        capita payment for the program year.
            (4) Adjustments.--In order to increase the 
        allotments of States as a result of the application of 
        paragraph (2), the Secretaries shall reduce, on a pro 
        rata basis, the allotments of the other States (except 
        as provided in subsection (d)).
    (d) Overall Limitations.--
            (1) Definition.--As used in this subsection, the 
        term ``State percentage'' means--
                    (A) with respect to the program year 
                preceding program year 1998, the percentage 
                that a State receives of the financial 
                assistance made available to States to carry 
                out covered activities for the year ending on 
                June 30, 1998; and
                    (B) with respect to program year 1998 and 
                each subsequent program year, the percentage 
                that a State receives of the amount reserved 
                under section 151(b)(1) for the program year.
            (2) Limitations.--No State shall receive an 
        allotment under this section for a program year in an 
        amount that would make the State percentage for the 
        program year--
                    (A) less than the product obtained by 
                multiplying--
                            (i) 0.98; and
                            (ii) the State percentage of the 
                        State for the preceding program year; 
                        or
                    (B) greater than the product obtained by 
                multiplying--
                            (i) 1.02; and
                            (ii) the State percentage of the 
                        State for the preceding program year.
    (e) Conditions.--The Secretaries shall allot funds under 
subsection (a) to States that--
            (1) submit State plans that contain all of the 
        information required under section 104(b), including 
        the identification of State goals and State benchmarks; 
        and
            (2) prepare the plans in accordance with the 
        requirements of sections 104 and 105 relating to the 
        development of the State plan.

SEC. 103. STATE APPORTIONMENT BY ACTIVITY.

    (a) Activities.--From the funds made available to a State 
through an allotment received under section 102 for a program 
year--
            (1) a portion equal to 32 percent of such sum shall 
        be made available for employment and training 
        activities;
            (2) a portion equal to 16 percent of such sum shall 
        be made available for at-risk youth activities;
            (3) a portion equal to 26 percent of such sum shall 
        be made available for vocational education activities;
            (4) a portion equal to 6 percent of such sum shall 
        be made available for adult education and literacy 
        activities; and
            (5) a portion equal to 20 percent of such sum shall 
        be made available for flexible activities (which 
        portion may be referred to in this title as the ``flex 
        account'');
carried out through the statewide system.
    (b) Recipients.--Subject to subsection (c), funds allotted 
to a State under section 102 shall be distributed--
            (1) to the Governor of the State for the portions 
        described in paragraphs (1) and (2) of subsection (a), 
        and such part of the flex account as the Governor may 
        be eligible to receive, as determined under the State 
        plan submitted under section 104; and
            (2) to the eligible agencies in the State for the 
        portions described in paragraphs (3) and (4) of 
        subsection (a), and such part of the flex account as 
        the eligible agencies may be eligible to receive, as 
        determined under the State plan submitted under section 
        104.
    (c) Construction.--Nothing in this title shall be 
construed--
            (1) to negate or supersede any State law that is 
        not inconsistent with the provisions of this title, 
        including the legal authority under State law of any 
        State agency, State entity, or State public official 
        over programs that are under the jurisdiction of the 
        agency, entity, or official;
            (2) to interfere with the authority of such agency, 
        entity, or official to enter into a contract under any 
        provision of law; and
            (3) to prohibit any individual, entity, or agency 
        in a State that is administering activities described 
        in section 123 or 124 prior to the date of enactment of 
        this Act, or setting education policies consistent with 
        authority under State law for such activities on the 
        day preceding the date of enactment of this Act, from 
        continuing to administer such activities or set such 
        education policies consistent with authority under 
        State law for such activities and in accordance with 
        this title.
    (d) Smith-Hughes Vocational Education Act.--Notwithstanding 
any other provision of law, the Secretary of Education shall 
use funds appropriated under section 1 of the Act of February 
23, 1917 (39 Stat. 929; 20 U.S.C. 11) (commonly known as the 
``Smith-Hughes Vocational Education Act'') to make allotments 
to States. Such funds shall be allotted to each State in the 
same manner and at the same time as allotments are made under 
section 102. Section 103(a) shall not apply with respect to 
such funds. The requirements of this title (other than section 
103(a)) shall apply to such funds to the same extent that the 
requirements apply to funds made available under section 
103(a)(3).

SEC. 104. STATE PLAN.

    (a) In General.--For a State to be eligible to receive an 
allotment under section 102, the Governor of the State shall 
submit to the Secretaries a single comprehensive State plan 
that outlines a 3-year strategy for the statewide system of the 
State and that meets the requirements of section 105 and this 
section.
    (b) Contents.--The State plan shall include--
            (1)(A) a description of the collaborative process 
        described in section 105 used in developing the plan, 
        including a description of the manner in which the 
        individuals and entities involved in the process 
        collaborated in the development of the plan; and
            (B)(i)(I) information demonstrating the support of 
        the individuals and entities participating in the 
        collaborative process for the State plan; and
            (II) the comments referred to in section 
        105(c)(2)(C), if any; and
            (ii) information demonstrating the agreement, if 
        any, of the Governor and the eligible agencies on all 
        elements of the State plan;
            (2) a description of the State goals and State 
        benchmarks for workforce and career development 
        activities, that includes--
                    (A) information identifying the State goals 
                and State benchmarks and how the goals and 
                benchmarks will ensure continuous improvement 
                of the statewide system and make the statewide 
                system relevant and responsive to labor market 
                and education needs at the local level;
                    (B) information identifying performance 
                indicators that relate to measurement of the 
                State progress toward meeting the State goals 
                and reaching the State benchmarks; and
                    (C) information describing how the State 
                will coordinate workforce and career 
                development activities to meet the State goals 
                and reach the State benchmarks;
            (3) information describing--
                    (A) the needs of the State with regard to 
                current and projected demands for workers, by 
                occupation;
                    (B) the skills and economic development 
                needs of the State; and
                    (C) the type and availability of workforce 
                and career development activities in the State;
            (4)(A) an identification of local workforce 
        development areas in the State, including a description 
        of the process used for the designation of such areas, 
        which shall take into consideration labor market areas, 
        service areas in which related Federal programs are 
        provided or historically have been provided, and 
        service areas in which related State programs are 
        provided or historically have been provided; or
            (B) if the State receives an increase in an 
        allotment under section 102 for a program year as a 
        result of the application of section 102(c)(2), 
        information stating that the State will be treated as a 
        local workforce development area for purposes of the 
        application of this title, at the election of the 
        State;
            (5) an identification of criteria for the 
        appointment of members of local workforce development 
        boards, based on the requirements of section 108;
            (6) a description of how the State will utilize the 
        statewide labor market information system described in 
        section 139(d);
            (7) a description of the measures that will be 
        taken by the State to assure coordination and 
        consistency and avoid duplication among activities 
        receiving assistance under this title, programs 
        receiving assistance under title II, and programs 
        carried out under the Wagner-Peyser Act (29 U.S.C. 49 
        et seq.) or the Rehabilitation Act of 1973 (29 U.S.C. 
        701 et seq.), including a description of common data 
        collection and reporting processes;
            (8) a description of the process used by the State 
        to provide an opportunity for public comment, and input 
        into the development of the plan, prior to submission 
        of the plan;
            (9) information identifying how the State will 
        obtain the active and continuous participation of 
        business, industry, and (as appropriate) labor in the 
        development and continuous improvement of the statewide 
        system;
            (10) assurances that the State will provide 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 
        allotment made under section 102;
            (11) information describing the allocation within 
        the State of the funds made available through the flex 
        account for the State;
            (12) information identifying how any funds that a 
        State receives through the allotment made under section 
        102 will be leveraged with other private and public 
        resources (including funds made available to the State 
        under the Wagner-Peyser Act (29 U.S.C. 49 et seq.)) to 
        maximize the effectiveness of such resources for all 
        activities described in subtitle C, and expand the 
        participation of business, industry, employees, and 
        individuals in the statewide system;
            (13) information identifying how the workforce and 
        career development activities to be carried out with 
        funds received through the allotment made under section 
        102 will be coordinated with programs carried out by 
        the Veterans' Employment and Training Service with 
        funds received under title 38, United States Code, in 
        order to meet the State goals and reach the State 
        benchmarks related to veterans;
            (14) an assurance that the funds made available to 
        the State through the allotment made under section 102 
        will supplement and not supplant other public funds 
        expended to provide activities described in subtitle C;
            (15) with respect to economic development 
        activities described in section 121(c)(1)(C), 
        information describing--
                    (A) any economic development activities 
                that will be carried out with the funds 
                described in section 111(a)(2)(B);
                    (B) how the activities will lead directly 
                to increased earnings of nonmanagerial 
                employees in the State; and
                    (C) whether the nonmanagerial employees 
                (including labor, as appropriate) support the 
                activities;
            (16) with respect to employment and training 
        activities, information--
                    (A) describing the employment and training 
                activities that will be carried out with the 
                funds received by the State through the 
                allotment made under section 102, including a 
                description of how the State will provide rapid 
                response assistance to dislocated workers;
                    (B) describing the strategy of the State 
                (including the timeframe for such strategy) for 
                development of a fully operational statewide 
                one-stop career center system as described in 
                section 121(d), including--
                            (i) criteria for use by local 
                        boards, with respect to the designation 
                        or certification of one-stop career 
                        center eligible providers, in each 
                        local workforce development area in 
                        accordance with section 
                        108(d)(4)(B)(i)(I);
                            (ii) the steps that the State will 
                        take over the 3 years covered by the 
                        plan to ensure that all publicly funded 
                        labor exchange services described in 
                        section 121(e)(2) or 139, and all such 
                        services authorized in the Wagner-
                        Peyser Act (29 U.S.C. 49 et seq.), are 
                        provided through the one-stop career 
                        center system of the State; and
                            (iii) the steps that the State will 
                        take over the 3 years covered by the 
                        plan to provide information to 
                        individuals through the one-stop career 
                        center system on the quality of 
                        workforce and career development 
                        activities, and vocational 
                        rehabilitation program activities, as 
                        appropriate;
                    (C) describing the procedures the State 
                will use to identify eligible providers of 
                training services described in section 
                121(e)(3), as required under this title;
                    (D) describing how the State will serve the 
                employment and training needs of dislocated 
                workers, low-income individuals, and other 
                individuals with multiple barriers to 
                employment (as determined by the State); and
                    (E) describing how the State will establish 
                and implement the required career grant pilot 
                program for dislocated workers pursuant to 
                section 121(g), including a description of the 
                size, scope, and quality of such program and a 
                description of how the State, after 3 years, 
                will evaluate such program and use the findings 
                of the evaluation to improve the delivery of 
                training services described in section 
                121(e)(3) for dislocated workers and other 
                participants under section 121;
            (17) with respect to at-risk youth activities, 
        information--
                    (A) describing the at-risk youth activities 
                that will be carried out with funds received by 
                the State through the allotment made under 
                section 102;
                    (B) describing how the State will 
                adequately address the needs of at-risk youth 
                in alternative education programs that teach to 
                the same challenging academic, occupational, 
                and skill proficiencies as are provided for all 
                other students; and
                    (C) identifying the types of criteria the 
                Governor and local boards will use to identify 
                effective and ineffective at-risk youth 
                activities and eligible providers of such 
                activities;
            (18) with respect to vocational education 
        activities, information--
                    (A) describing the vocational education 
                activities that will be carried out with funds 
                received by the State through the allotment 
                made under section 102;
                    (B) describing the plan of the State to 
                develop the academic and occupational skills of 
                students participating in such vocational 
                education activities, including--
                            (i) the integration of academic and 
                        vocational education;
                            (ii) the integration of classroom 
                        and worksite learning; and
                            (iii) linkages between secondary 
                        and postsecondary education;
                    (C) describing how the State will improve 
                career guidance and counseling;
                    (D) describing how the State will promote 
                the active involvement of parents and business 
                (including small- and medium-sized businesses) 
                in the planning, development, and 
                implementation of such vocational education 
                activities;
                    (E) describing how funds received by the 
                State through the allotment made under section 
                102 will be allocated among secondary school 
                vocational education, or postsecondary and 
                adult vocational education, or both;
                    (F) describing how the State will 
                adequately address the needs of students who 
                participate in such vocational education 
                activities to be taught to the same challenging 
                academic proficiencies as are provided for all 
                other students;
                    (G) describing how the State will annually 
                evaluate the effectiveness of such vocational 
                education activities;
                    (H) describing how the State will address 
                the professional development needs of the State 
                with respect to such vocational education 
                activities; and
                    (I) describing how the State will provide 
                local educational agencies in the State with 
                technical assistance; and
            (19) with respect to adult education and literacy 
        activities, information--
                    (A) describing the adult education and 
                literacy activities that will be carried out 
                with funds received by the State through the 
                allotment made under section 102;
                    (B) describing how such adult education and 
                literacy activities described in the State plan 
                and the State allocation of funds received 
                through the allotment made under section 102 
                for such activities are an integral part of 
                comprehensive efforts of the State to improve 
                education and training for all individuals; and
                    (C) describing how the State will annually 
                evaluate the effectiveness of such adult 
                education and literacy activities.
    (c) Special Rules.--
            (1) Governor.--The Governor of a State shall have 
        final authority to determine the content of the portion 
        of the State plan described in paragraphs (1) through 
        (17) of subsection (b).
            (2) Eligible agencies.--An eligible agency in a 
        State shall have final authority to determine the 
        content of the portion of the State plan described in 
        paragraph (18) or (19) of subsection (b), as 
        appropriate.
    (d) Modifications to Plan.--A State may submit 
modifications to the State plan in accordance with the 
requirements of this section and section 105, as necessary, 
during the 3-year period of the plan.

SEC. 105. COLLABORATIVE PROCESS.

    (a) In General.--A State shall use a collaborative process 
to develop the State plan described in section 104, through 
which individuals and entities including, at a minimum--
            (1) the Governor;
            (2) representatives, appointed by the Governor, 
        of--
                    (A) business and industry;
                    (B) local chief elected officials 
                (representing both cities and counties, where 
                appropriate);
                    (C) local educational agencies (including 
                vocational educators);
                    (D) postsecondary institutions (including 
                community and technical colleges);
                    (E) parents; and
                    (F) employees (which may include labor);
            (3) the lead State agency official for--
                    (A) the State educational agency;
                    (B) the eligible agency for vocational 
                education;
                    (C) the eligible agency for adult education 
                and literacy;
                    (D) the State agency responsible for 
                postsecondary education; and
                    (E) the State agency responsible for 
                vocational rehabilitation, and where 
                applicable, the State agency providing 
                vocational rehabilitation program activities 
                for the blind;
            (4) such other State agency officials, including 
        officials responsible for economic development and 
        employment, as the Governor may designate;
            (5) representatives of the State legislature; and
            (6) the representative of the Veterans' Employment 
        and Training Service assigned to the State under 
        section 4103 of title 38, United States Code;

shall collaborate in the development of the plan.
    (b) Alternative Processes.--
            (1) In general.--For purposes of complying with 
        subsection (a), a State may use any State collaborative 
        process (including any council, State workforce 
        development board, or similar entity) in existence on 
        the date of enactment of this Act that meets or is 
        conformed to meet the requirements of such subsection.
            (2) Functions of state human resources investment 
        councils.--If a State uses a State human resources 
        investment council in existence on the date of 
        enactment of this Act, as described in paragraph (1), 
        the functions of such board shall include--
                    (A) advising the Governor on the 
                development of the statewide system, the State 
                plan described in section 104, and the State 
                goals and State benchmarks;
                    (B) assisting in the development of 
                performance indicators that relate to the 
                measurement of State progress toward meeting 
                the State goals and reaching the State 
                benchmarks and providing guidance on how such 
                progress may be improved;
                    (C) assisting the Governor in preparing the 
                annual report to the Secretaries described in 
                section 106(c);
                    (D) assisting the Governor in developing 
                the statewide labor market information system 
                described in section 139(d); and
                    (E) assisting in the monitoring and 
                continuous improvement of the performance of 
                the statewide system, including evaluation of 
                the effectiveness of workforce and career 
                development activities.
    (c) Authority of Governor.--
            (1) Final authority.--If, after a reasonable 
        effort, the Governor is unable to obtain the support of 
        the individuals and entities participating in the 
        collaborative process described in subsection (a) or 
        (b) for the State plan, the Governor shall have final 
        authority to submit the State plan as described in 
        section 104, except as provided in section 104(c) and 
        in paragraph (3).
            (2) Process.--The Governor shall--
                    (A) provide such individuals and entities 
                with copies of the State plan;
                    (B) allow such individuals and entities to 
                submit to the Governor, not later than the end 
                of the 30-day period beginning on the date on 
                which the Governor provides such individuals 
                and entities with copies of such plan under 
                subparagraph (A), comments on such plan; and
                    (C) include in the State plan any such 
                comments that--
                            (i) are submitted by an eligible 
                        agency and represent disagreement with 
                        such plan, with respect to provisions 
                        of the State plan described in 
                        paragraph (18) or (19) of section 
                        104(b), as appropriate; or
                            (ii) are submitted by an individual 
                        or entity participating in the 
                        collaborative process.
            (3) Eligible agency comments.--An eligible agency, 
        in submitting comments under paragraph (2)(C)(i), may 
        submit provisions for the portion of the State plan 
        described in paragraph (18) or (19) of section 104(b), 
        as appropriate. The Governor shall include such 
        provisions in the State plan submitted under section 
        104. Such provisions shall be considered to be such 
        portion of the State plan.

SEC. 106. ACCOUNTABILITY.

    (a) Goals.--Each statewide system supported by an allotment 
under section 102 shall be designed to meet--
            (1) the goal of assisting participants in obtaining 
        meaningful unsubsidized employment opportunities in the 
        State; and
            (2) the goal of enhancing and developing more fully 
        the academic, occupational, and literacy skills of all 
        segments of the population of the State.
    (b) Benchmarks.--
            (1) Meaningful employment.--To be eligible to 
        receive an allotment under section 102, a State shall 
        develop and identify in the State plan submitted under 
        section 104, proposed quantifiable benchmarks to 
        measure the statewide progress of the State toward 
        meeting the goal described in subsection (a)(1), which 
        shall include, at a minimum, measures of--
                    (A) placement of participants in 
                unsubsidized employment;
                    (B) retention of the participants in 
                unsubsidized employment (12 months after 
                completion of the participation);
                    (C) increases in earnings, or in earnings 
                and employer-assisted benefits, for the 
                participants; and
                    (D) attainment by the participants of 
                industry-recognized occupational skills, as 
                appropriate.
            (2) Education.--To be eligible to receive an 
        allotment under section 102, a State shall develop and 
        identify in the State plan submitted under section 104, 
        proposed quantifiable benchmarks to measure the 
        statewide progress of the State toward meeting the goal 
        described in subsection (a)(2), which shall include, at 
        a minimum, measures, for participants, of--
                    (A) attainment of challenging State 
                academic proficiencies;
                    (B) attainment of secondary school diplomas 
                or general equivalency diplomas;
                    (C) attainment of industry-recognized 
                occupational skills according to skill 
                proficiencies for students in career 
                preparation programs;
                    (D) placement in, retention in, and 
                completion of postsecondary education or 
                advanced training, or placement and retention 
                in military service, employment, or qualified 
                apprenticeships; and
                    (E) attainment of the literacy skills and 
                knowledge individuals need to be productive and 
                responsible citizens and to become more 
                actively involved in the education of their 
                children.
            (3) Populations.--
                    (A) Minimum measures.--In developing and 
                identifying, under paragraphs (1) and (2), 
                measures of the progress of the State toward 
                meeting the goals described in subsection (a), 
                a State shall develop and identify in the State 
                plan, in addition to statewide benchmarks, 
                proposed quantifiable benchmarks for 
                populations that include, at a minimum--
                            (i) low-income individuals;
                            (ii) dislocated workers;
                            (iii) at-risk youth;
                            (iv) individuals with disabilities;
                            (v) veterans; and
                            (vi) individuals of limited 
                        literacy, as determined by the State.
                    (B) Additional measures.--In addition to 
                the benchmarks described in subparagraph (A), a 
                State may develop and identify in the State 
                plan proposed quantifiable benchmarks to 
                measure the progress of the State toward 
                meeting the goals described in subsection (a) 
                for populations with multiple barriers to 
                employment, which may include older workers, as 
                determined by the State.
            (4) Application.--
                    (A) Meaningful employment benchmarks.--
                Benchmarks described in paragraph (1) shall 
                apply to employment and training activities 
                and, as appropriate, to at-risk youth 
                activities and adult education and literacy 
                activities.
                    (B) Education benchmarks.--Benchmarks 
                described in paragraph (2) shall apply to 
                vocational education activities, at-risk youth 
                activities, and, as appropriate, adult 
                education and literacy activities.
            (5) Special rule.--If a State adopts for all 
        students in the State performance indicators, 
        attainment levels, or assessments for skills according 
        to challenging academic, occupational, or industry-
        recognized skill proficiencies, the State shall, at a 
        minimum, use such performance indicators, attainment 
        levels, or assessments in measuring the progress of all 
        students who participate in workforce and career 
        development activities.
            (6) Technical assistance.--
                    (A) In general.--The Secretaries shall 
                provide technical assistance to States 
                requesting such assistance, which may include 
                the development, in accordance with 
                subparagraph (B), of model benchmarks for each 
                of the benchmarks described in paragraphs (1) 
                and (2) at achievable levels based on existing 
                (as of the date of the development of the 
                benchmarks) workforce and career development 
                efforts in the States.
                    (B) Collaboration.--Any such model 
                benchmarks shall be developed in collaboration 
                with the States and other appropriate parties.
            (7) Incentive grants.--A State that meets the 
        requirements of section 132(a) (including requirements 
        relating to State benchmarks) shall be eligible to 
        receive an incentive grant under section 132(a).
            (8) Sanctions.--A State that has failed to meet the 
        State benchmarks described in paragraphs (1) and (2) 
        for the 3-year period covered by a State plan described 
        in section 104, as determined by the Secretaries, may 
        be subject to sanctions under section 132(b).
    (c) Report.--
            (1) In general.--Each State that receives an 
        allotment under section 102 shall annually prepare and 
        submit to the Secretaries a report that states how the 
        State is performing on State benchmarks that relate to 
        workforce and career development activities. The report 
        shall include information on how the local workforce 
        development areas in the State are performing on local 
        benchmarks described in section 108(d)(4)(A). The 
        report shall also include information on the status and 
        results of any State evaluations specified in 
        subsection (d) that relate to employment and training 
        activities carried out in the State. In preparing the 
        report, the State may include information on such 
        additional benchmarks as the State may establish to 
        meet the State goals.
            (2) Information dissemination.--The Secretaries 
        shall make the information contained in such reports 
        available to the general public through publication and 
        other appropriate methods, and shall disseminate State-
        by-State comparisons of the information.
            (3) Evaluation.--In preparing the report for the 
        third year of the 3-year period covered by the State 
        plan, the State shall include the findings of the 
        evaluation described in section 104(b)(16)(E) of the 
        career grant pilot program described in section 121(g).
    (d) Evaluation of State Programs.--
            (1) Employment and training activities.--Using 
        funds reserved under section 111(a)(2)(B), a State 
        shall conduct ongoing evaluations of employment and 
        training activities carried out in the State.
            (2) Methods.--The State shall--
                    (A) conduct such evaluations of employment 
                and training activities through controlled 
                experiments using experimental and control 
                groups chosen by random assignment;
                    (B) in conducting such evaluations, 
                determine, at a minimum, whether employment and 
                training activities effectively raise the 
                hourly wage rates of individuals receiving 
                services through such activities; and
                    (C) conduct, or arrange under paragraph (3) 
                for the conduct of, at least 1 such evaluation 
                at any given time during any period in which 
                the State is receiving funding under this title 
                for such activities.
            (3) Multi-state agreements.--A State may enter into 
        an agreement with 1 or more States to arrange for the 
        conduct of such evaluations in accordance with the 
        requirements of paragraphs (1) and (2).
    (e) Fiscal and Management Accountability Information 
Systems.--
            (1) In general.--Using funds reserved under 
        sections 111(a)(2)(B) and 112(a)(2)(C), the State may 
        operate a fiscal and management accountability 
        information system, based on guidelines established by 
        the Secretaries in consultation with the Governors and 
        other appropriate parties. Such guidelines shall 
        promote the efficient collection and use of fiscal and 
        management information for reporting and monitoring the 
        use of funds made available to the State for employment 
        and training activities and at-risk youth activities 
        and for use by the State in preparing the annual report 
        described in subsection (c). In measuring State 
        performance on State benchmarks, a State may, pursuant 
        to State law, utilize quarterly wage records available 
        through the unemployment insurance system.
            (2) 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). In addition, the State 
        shall protect the confidentiality of information 
        obtained through the fiscal and management 
        accountability information system through the use of 
        recognized security procedures.

SEC. 107. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.

    (a) Eligibility Requirements.--
            (1) In general.--Except as provided in subsection 
        (d), to be eligible to receive funds made available 
        under section 111 to provide training services 
        described in section 121(e)(3) (referred to in this 
        section as ``training services'') and be identified as 
        an eligible provider of such services, a provider of 
        such services shall meet the requirements of this 
        section.
            (2) Postsecondary educational institutions.--A 
        postsecondary educational institution shall 
        automatically be eligible to receive such funds for--
                    (A) a program that leads to an associate, 
                baccalaureate, professional, or graduate 
                degree;
                    (B) a program that--
                            (i) is at least 2 academic years in 
                        length; and
                            (ii) is acceptable for academic 
                        credit toward a baccalaureate degree; 
                        or
                    (C) a program that--
                            (i) is at least 1 academic year in 
                        length;
                            (ii) is a training program;
                            (iii) leads to a certificate, 
                        degree, or other recognized educational 
                        credential; and
                            (iv) prepares a student for gainful 
                        employment in a recognized occupation.
            (3) Other eligible providers.--
                    (A) Procedure.--The Governor shall 
                establish a procedure for determining the 
                eligibility of public and private providers not 
                described in paragraph (2) (including 
                eligibility of postsecondary educational 
                institutions for programs not described in 
                paragraph (2)) to receive such funds. In 
                determining the eligibility, the Governor shall 
                solicit and take into consideration 
                recommendations of the local boards concerning 
                the identification of eligible providers of 
                training services in local workforce 
                development areas.
                    (B) Levels of performance.--At a minimum, 
                the Governor shall establish a procedure that 
                requires such a provider to meet minimum 
                acceptable levels of performance based on--
                            (i) verifiable program-specific 
                        performance information described in 
                        subparagraph (C) and submitted to the 
                        State agency designated under 
                        subsection (b), as required under 
                        paragraphs (2) and (3) of subsection 
                        (b); and
                            (ii) performance criteria relating 
                        to the rates and percentages described 
                        in subparagraph (C)(i).
                    (C) Performance information.--
                            (i) Required information.--To be 
                        eligible to receive such funds, a 
                        provider shall submit information on--
                                    (I) program completion 
                                rates for participants in the 
                                applicable program conducted by 
                                the provider;
                                    (II) the percentage of the 
                                participants obtaining 
                                employment in an occupation 
                                related to the program 
                                conducted;
                                    (III) where appropriate, 
                                the rates of licensure or 
                                certification of graduates of 
                                the program; and
                                    (IV) where appropriate, the 
                                percentage of the participants 
                                who demonstrate significant 
                                gains in literacy and basic 
                                skills.
                            (ii) Additional information.--In 
                        addition to the performance information 
                        described in clause (i), the Governor 
                        may require that a provider described 
                        in this paragraph submit such other 
                        performance information as the Governor 
                        determines to be appropriate, which may 
                        include information relating to--
                                    (I) the adequacy of space, 
                                staff, equipment, instructional 
                                materials, and student support 
                                services offered by the 
                                provider through a program 
                                conducted by the provider;
                                    (II) the earnings of 
                                participants completing the 
                                program; and
                                    (III) the percentage of 
                                graduates of the program who 
                                attain industry-recognized 
                                occupational skills in the 
                                subject, occupation, or 
                                industry for which training is 
                                provided.
    (b) Administration.--
            (1) Designation.--The Governor shall designate a 
        State agency to collect and disseminate the performance 
        information described in subsection (a)(3)(C) and 
        submitted pursuant to this subsection and carry out 
        other duties described in this subsection.
            (2) Application.--To be eligible to receive funds 
        as described in subsection (a), a provider shall submit 
        an application at such time, in such manner, and 
        containing such information as the designated State 
        agency may require.
            (3) Submission.--To be eligible to receive funds as 
        described in subsection (a), a provider described in 
        subsection (a)(3) shall submit the performance 
        information described in subsection (a)(3)(C) annually 
        to the designated State agency at such time and in such 
        manner as the designated State agency may require. The 
        designated State agency may accept program-specific 
        performance information consistent with the 
        requirements for eligibility under title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) 
        from such a provider for purposes of enabling the 
        provider to fulfill the applicable requirements of this 
        paragraph.
            (4) List of eligible providers.--The designated 
        State agency, after reviewing the performance 
        information described in subsection (a)(3)(C) and using 
        the procedure described in subsection (a)(3)(B), shall 
        identify eligible providers of training services 
        described in paragraph (2) or (3) of subsection (a), 
        compile a list of such eligible providers, accompanied 
        by the performance information described in subsection 
        (a)(3)(C) for each such provider described in 
        subsection (a)(3), and disseminate such list and 
        information to one-stop career centers and to local 
        boards. Such list and information shall be made widely 
        available to participants in workforce and career 
        development activities and others through the one-stop 
        career center system described in section 121(d).
    (c) Enforcement.--
            (1) Accuracy of information.--If the designated 
        State agency determines that a provider or individual 
        supplying information on behalf of a provider 
        intentionally supplies inaccurate information under 
        this section, the agency shall terminate the 
        eligibility of the eligible provider to receive funds 
        described in subsection (a) for a period of time, but 
        not less than 2 years, as prescribed in regulations 
        issued by the Governor.
            (2) Compliance with criteria or requirements.--If 
        the designated State agency determines that an eligible 
        provider or a program of training services carried out 
        by an eligible provider fails to meet the required 
        performance criteria described in subsection 
        (a)(3)(B)(ii) or materially violates any provision of 
        this title or the regulations promulgated to implement 
        this title, the agency may terminate the eligibility of 
        the eligible provider to receive funds described in 
        subsection (a) for such program or take such other 
        action as the agency determines to be appropriate.
            (3) Eligibility under the higher education act of 
        1965.--If the designated State agency determines that 
        the eligibility of an eligible provider described in 
        subsection (a)(2) under title IV of the Higher 
        Education Act of 1965 has been terminated, the agency 
        shall--
                    (A) terminate the automatic eligibility of 
                the provider under subsection (a)(2); and
                    (B) require the provider to meet the 
                requirements of subsection (a)(3) to be 
                eligible to receive funds as described in 
                subsection (a).
            (4) Repayment.--Any 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.
            (5) Appeal.--The Governor shall establish a 
        procedure for an eligible provider to appeal a 
        determination by the designated State agency that 
        results in termination of eligibility under this 
        subsection. Such procedure shall provide an opportunity 
        for a hearing and prescribe appropriate time limits to 
        ensure prompt resolution of the appeal.
    (d) On-the-Job Training Exception.--
            (1) In general.--Providers of on-the-job training 
        shall not be subject to the requirements of subsection 
        (a), (b), or (c).
            (2) Collection and dissemination of information.--A 
        one-stop career center eligible provider in a local 
        workforce development area shall collect such 
        performance information from on-the-job training 
        providers as the Governor may require, and disseminate 
        such information through the delivery of core services 
        described in section 121(e)(2), as appropriate.

SEC. 108. LOCAL WORKFORCE DEVELOPMENT BOARDS.

    (a) Establishment.--There shall be established in each 
local workforce development area of a State, and certified by 
the Governor of the State, a local workforce development board, 
reflecting business and community interests in workforce and 
career development activities.
    (b) Membership.--
            (1) State criteria.--The Governor of the State 
        shall establish criteria for the appointment of members 
        of the local boards for local workforce development 
        areas in the State in accordance with the requirements 
        of paragraph (2). Information identifying such criteria 
        shall be included in the State plan submitted under 
        section 104.
            (2) Composition.--Such criteria shall require at a 
        minimum, that the membership of each local board--
                    (A) shall include--
                            (i) a majority of members who are 
                        representatives of business and 
                        industry in the local workforce 
                        development area, appointed from among 
                        individuals nominated by local business 
                        organizations and trade associations;
                            (ii) representatives of local 
                        secondary schools, representatives of 
                        postsecondary educational institutions 
                        (including representatives of community 
                        colleges), representatives of 
                        vocational educators, and 
                        representatives of providers of adult 
                        education and literacy services, where 
                        such schools, institutions, educators, 
                        or providers, as appropriate, exist; 
                        and
                            (iii) representatives of employees, 
                        which may include labor; and
                    (B) may include--
                            (i) individuals with disabilities;
                            (ii) parents;
                            (iii) veterans; and
                            (iv) representatives of community-
                        based organizations.
            (3) Chairperson.--The local board shall elect a 
        chairperson from among the members of the board.
    (c) Appointment and Certification of Board.--
            (1) Appointment of board members and assignment of 
        responsibilities.--
                    (A) In general.--The chief elected official 
                in a local workforce development area is 
                authorized to appoint the members of the local 
                board for such area, in accordance with the 
                State criteria established under subsection 
                (b).
                    (B) Multiple units of local government in 
                area.--
                            (i) In general.--In a case in which 
                        a local workforce development area 
                        includes more than 1 unit of general 
                        local government, the chief elected 
                        officials of such units may execute an 
                        agreement that specifies the respective 
                        roles of the individual chief elected 
                        officials--
                                    (I) in the appointment of 
                                the members of the local board 
                                from the individuals nominated 
                                or recommended to be such 
                                members in accordance with the 
                                criteria established under 
                                subsection (b); and
                                    (II) in carrying out any 
                                other responsibilities assigned 
                                to such officials.
                            (ii) Lack of agreement.--If, after 
                        a reasonable effort, the chief elected 
                        officials are unable to reach agreement 
                        as provided under clause (i), the 
                        Governor may appoint the members of the 
                        local board from individuals so 
                        nominated or recommended.
            (2) Certification.--
                    (A) In general.--The Governor may annually 
                certify 1 local board for each local workforce 
                development area in the State.
                    (B) Criteria.--Such certification shall be 
                based on factors including the criteria 
                established under subsection (b) and, for a 
                second or subsequent certification, the extent 
                to which the local board has ensured that 
                employment and training activities and at-risk 
                youth activities carried out in the local 
                workforce development area have met expected 
                levels of performance with respect to the local 
                benchmarks required under subsection (d)(4)(A).
                    (C) Failure to achieve certification.--
                Failure of a local board to achieve 
                certification shall result in reappointment and 
                certification of another local board for the 
                local workforce development area pursuant to 
                the process described in paragraph (1) and this 
                paragraph.
            (3) Decertification.--Notwithstanding paragraph 
        (2), the Governor may decertify a local board at any 
        time for fraud or abuse, or failure to carry out the 
        functions specified for the local board in paragraphs 
        (1) through (3) of subsection (d), after providing 
        notice and an opportunity for comment. If the Governor 
        decertifies a local board for a local workforce 
        development area, the Governor may require that a local 
        board be appointed and certified for the local 
        workforce development area pursuant to a plan developed 
        by the Governor in consultation with the chief elected 
        official in the local workforce development area and in 
        accordance with the criteria established under 
        subsection (b).
            (4) Exception.--Notwithstanding subsection (b) and 
        paragraphs (1) and (2), if a State described in section 
        104(b)(4)(B) indicates in the State plan that the State 
        will be treated as a local workforce development area 
        for purposes of the application of this title, the 
        Governor may designate the individuals and entities 
        involved in the collaborative process described in 
        section 105 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.--
                    (A) In general.--Each local board shall 
                develop and submit to the Governor a 
                comprehensive multiyear strategic local plan. 
                The local plan shall be consistent with the 
                State goals and State plan described in section 
                104.
                    (B) Contents.--The local plan shall 
                include--
                            (i) an identification of the 
                        workforce development needs of local 
                        industries, jobseekers, and workers;
                            (ii) a description of employment 
                        and training activities and at-risk 
                        youth activities to be carried out in 
                        the local workforce development area as 
                        required under sections 121 and 122, 
                        that, with activities authorized under 
                        the Wagner-Peyser Act (29 U.S.C. 49 et 
                        seq.), will contribute to the coherent 
                        delivery of workforce and career 
                        development activities;
                            (iii) a description of the local 
                        benchmarks negotiated with the Governor 
                        pursuant to paragraph (4)(A), to be 
                        used by the local board for measuring 
                        the performance of eligible providers, 
                        and the performance of the one-stop 
                        career center system, in the local 
                        workforce development area;
                            (iv) a description of the process 
                        negotiated with the Governor pursuant 
                        to paragraph (4)(B) that the local 
                        board will use to designate or certify, 
                        and to conduct oversight with respect 
                        to, one-stop career center eligible 
                        providers in the local workforce 
                        development area, that will--
                                    (I) ensure that the most 
                                effective and efficient 
                                providers will be chosen; and
                                    (II) ensure the continuous 
                                improvement of such providers 
                                and ensure that such providers 
                                will continue to meet the labor 
                                market needs of local employers 
                                and participants;
                            (v) a description of how the local 
                        board will ensure the continued 
                        participation of the chief elected 
                        official in the local workforce 
                        development area in carrying out the 
                        duties of the local board, including 
                        the participation of such official in 
                        carrying out the oversight 
                        responsibilities of the board;
                            (vi) a description of how the local 
                        board will obtain the active and 
                        continuous participation of 
                        representatives of business and 
                        industry, employees (which may include 
                        labor), local educational agencies, 
                        postsecondary educational institutions, 
                        providers of adult education and 
                        literacy services, vocational 
                        educators, other providers of workforce 
                        and career development activities, 
                        community-based organizations, parents, 
                        and consumers (including individuals 
                        with disabilities, older workers, and 
                        veterans), where appropriate, in the 
                        development and continuous improvement 
                        of the employment and training 
                        activities to be carried out in the 
                        local workforce development area;
                            (vii) a description of the steps 
                        the local board will take to work with 
                        local educational agencies, 
                        postsecondary educational institutions, 
                        vocational educators, providers of 
                        adult education and literacy services, 
                        and other representatives of the 
                        educational community to address local 
                        employment, education, and training 
                        needs;
                            (viii) a description of the process 
                        that will be used to fully involve 
                        representatives of business, employees 
                        (which may include labor), the local 
                        education community (including 
                        vocational educators and teachers), 
                        parents, and community-based 
                        organizations in the development and 
                        implementation of at-risk youth 
                        activities in the local workforce 
                        development area, including a 
                        description of the process used to 
                        ensure that the most effective and 
                        efficient providers are chosen to carry 
                        out the activities; and
                            (ix) such other information as the 
                        Governor may require.
                    (C) Consultation.--The local board shall--
                            (i) consult with the chief elected 
                        official in the appropriate local 
                        workforce development area in the 
                        development of the local plan; and
                            (ii) provide the chief elected 
                        official with a copy of the local plan.
                    (D) Approval.--
                            (i) In general.--The chief elected 
                        official shall--
                                    (I) approve the local plan; 
                                or
                                    (II) reject the local plan 
                                and make recommendations to the 
                                local board on how to improve 
                                the local plan.
                            (ii) Submission.--If, after a 
                        reasonable effort, the local board is 
                        unable to obtain the approval of the 
                        chief elected official for the local 
                        plan, the local board shall submit the 
                        plan to the Governor for approval under 
                        subparagraph (A), and shall submit the 
                        recommendations of the chief elected 
                        official to the Governor along with the 
                        plan.
            (2) Selection and oversight responsibilities.--
                    (A) One-stop career centers.--Consistent 
                with section 111(c)(1)(A) and the agreement 
                negotiated with the Governor under paragraph 
                (4)(B)(i), the local board is authorized to 
                designate or certify one-stop career center 
                eligible providers, and conduct oversight with 
                respect to such providers, in the local 
                workforce development area.
                    (B) At-risk youth activities.--Consistent 
                with section 112(d), the local board is 
                authorized to award grants on a competitive 
                basis to eligible providers of at-risk youth 
                activities, and conduct oversight with respect 
                to such providers, in the local workforce 
                development area.
            (3) Identification of eligible providers of 
        training services.--Consistent with section 107, the 
        local board is authorized to make recommendations to 
        the Governor concerning the identification of eligible 
        providers of training services described in section 
        121(e)(3) in the local workforce development area.
            (4) Negotiations.--
                    (A) Local benchmarks.--The local board and 
                the Governor shall negotiate and reach 
                agreement on local benchmarks designed to meet 
                the goals described in section 106(a) for the 
                local workforce development area. In 
                determining such benchmarks, the Governor and 
                the local board shall take into account the 
                State benchmarks described in section 106(b)(1) 
                with respect to employment and training 
                activities and as appropriate, at-risk youth 
                activities, the State benchmarks described in 
                section 106(b)(2) with respect to at-risk youth 
                activities, and specific economic, demographic, 
                and other characteristics of the populations to 
                be served in the local workforce development 
                area.
                    (B) Local one-stop delivery of services.--
                            (i) In general.--Consistent with 
                        criteria identified in the State plan 
                        information submitted under section 
                        104(b)(16)(B)(i), the local board and 
                        the Governor shall negotiate and reach 
                        agreement on a process to be used by 
                        the local board that meets the 
                        requirements of subclauses (I) and (II) 
                        of paragraph (1)(B)(iv) for--
                                    (I) the designation or 
                                certification of one-stop 
                                career center eligible 
                                providers in the local 
                                workforce development area, 
                                including a determination of 
                                the role of providers of 
                                activities authorized under the 
                                Wagner-Peyser Act in the one-
                                stop delivery of services in 
                                the local workforce development 
                                area; and
                                    (II) the continued role of 
                                the local board in conducting 
                                oversight with respect to one-
                                stop career center eligible 
                                providers, including the 
                                ability of the local board to 
                                terminate for cause the 
                                eligibility of a provider of 
                                such services.
                            (ii) Established one-stop career 
                        centers.--Notwithstanding section 
                        111(c)(1)(B), if a one-stop career 
                        center has been established in a local 
                        workforce development area prior to the 
                        date of enactment of this Act, or if 
                        approval has been obtained for a plan 
                        for a one-stop career center under the 
                        Wagner-Peyser Act (29 U.S.C. 49 et 
                        seq.) prior to the date of enactment of 
                        this Act, the local board and the 
                        Governor involved may agree to certify 
                        the one-stop career center provider for 
                        purposes of this subparagraph.
    (e) Sunshine Provision.--The local board shall make 
available to the public, on a regular basis, information 
regarding the activities of the local board, including 
information regarding membership, the designation and 
certification of one-stop career center eligible providers, and 
the award of grants to eligible providers of at-risk youth 
activities.
    (f) Other Activities.--
            (1) Limitation.--
                    (A) In general.--Except as provided in 
                subparagraph (B), no local board may directly 
                carry out an employment and training activity.
                    (B) Waivers.--The Governor of the State in 
                which the local board is located may grant to 
                the local board a written waiver of the 
                prohibition set forth in subparagraph (A).
            (2) Conflict of interest.--No member of a local 
        board may--
                    (A) vote on a matter under consideration by 
                the local board--
                            (i) regarding the provision of 
                        services by such member (or by an 
                        organization that such member 
                        represents); or
                            (ii) that would provide direct 
                        financial benefit to such member or the 
                        immediate family of such member; or
                    (B) engage in any other activity determined 
                by the Governor to constitute a conflict of 
                interest.
    (g) Technical Assistance.--If a local workforce development 
area fails to meet expected levels of performance on negotiated 
benchmarks described in subsection (d)(4)(A), the Governor may 
provide technical assistance to the local board to improve the 
level of performance of the local workforce development area.

                         Subtitle B--Allocation

SEC. 111. DISTRIBUTION FOR EMPLOYMENT AND TRAINING ACTIVITIES.

    (a) Reservations for State and Local Activities.--
            (1) In general.--The sum of the funds made 
        available to a State for any program year under 
        paragraphs (1) and (5) of section 103(a) for employment 
        and training activities shall be made available in 
        accordance with this section.
            (2) Distribution.--Of the sum described in 
        paragraph (1) that is made available to a State for a 
        program year--
                    (A) not less than 75 percent shall be made 
                available to local workforce development areas 
                under subsection (b) to carry out employment 
                and training activities described in 
                subsections (e) and (f) of section 121;
                    (B) not less than 20 percent shall be made 
                available to the Governor to carry out State 
                employment and training activities described in 
                subsections (b) and (c) of section 121; and
                    (C) not more than 5 percent shall be made 
                available for administrative expenses at the 
                State level.
    (b) Within State Formula.--
            (1) In general.--The Governor shall develop a 
        formula for the allocation of the funds described in 
        subsection (a)(2)(A) to local workforce development 
        areas, taking into account--
                    (A) the poverty rate, among individuals who 
                are not less than age 18 and not more than age 
                64, as determined by the Bureau of the Census, 
                within each local workforce development area;
                    (B) the unemployment rate within each local 
                workforce development area;
                    (C) the proportion of the State population 
                of individuals who are not less than age 18 and 
                not more than age 64, residing within each 
                local workforce development area; and
                    (D) such additional factors as the Governor 
                (in consultation with local boards and local 
                elected officials) determines to be necessary.
            (2) Equitable allocation.--In developing such 
        formula, the Governor shall ensure that--
                    (A) the funds described in subsection 
                (a)(2)(A) are allocated in a geographically 
                equitable manner throughout the State; and
                    (B) the factors described in paragraph (1) 
                do not receive disproportionate weight in the 
                allocation.
    (c) Eligibility.--
            (1) Eligibility for designation or certification as 
        a one-stop career center eligible provider.--
                    (A) In general.--To be eligible to receive 
                funds made available under this section to 
                provide employment and training activities 
                through a one-stop career center system and be 
                designated or certified as a one-stop career 
                center eligible provider for a local workforce 
                development area, an entity shall--
                            (i) be selected in accordance with 
                        section 108(d)(2)(A); and
                            (ii) be a public or private entity, 
                        or consortium of entities, located in 
                        the local workforce development area, 
                        which entity or consortium may include 
                        an institution of higher education (as 
                        defined in section 481 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1088), 
                        a local employment service office 
                        established under the Wagner-Peyser Act 
                        (29 U.S.C. 49 et seq.), a local 
                        government agency, a private for-profit 
                        entity, a private nonprofit entity, or 
                        other interested entity, of 
                        demonstrated effectiveness, such as a 
                        local chamber of commerce or other 
                        business organization.
                    (B) Exception.--Elementary schools and 
                secondary schools shall not be eligible for 
                designation or certification as one-stop career 
                center eligible providers.
            (2) Eligibility for identification as an eligible 
        provider of training services.--Except as provided in 
        section 107(d), to be eligible to receive funds made 
        available under this section to provide training 
        services described in section 121(e)(3) and be 
        identified as an eligible provider of such services, an 
        entity shall meet the requirements of section 107.

SEC. 112. DISTRIBUTION FOR AT-RISK YOUTH ACTIVITIES.

    (a) Reservations for State and Local Activities.--
            (1) In general.--The sum of the funds made 
        available to a State for any program year under 
        paragraphs (2) and (5) of section 103(a) for at-risk 
        youth activities shall be made available in accordance 
        with this section.
            (2) Distribution.--Of the sum described in 
        paragraph (1) that is made available to a State for a 
        program year--
                    (A) not less than 75 percent shall be made 
                available to local workforce development areas 
                under subsection (b) to carry out at-risk youth 
                activities;
                    (B) not more than 21 percent shall be made 
                available to the Governor to carry out at-risk 
                youth activities; and
                    (C) not more than 4 percent shall be made 
                available for administrative expenses at the 
                State level.
    (b) Within State Formula.--
            (1) In general.--The Governor, using the 
        collaborative process described in subsection (a) or 
        (b) of section 105, shall develop a formula for the 
        allocation of the funds described in subsection 
        (a)(2)(A) to local workforce development areas, taking 
        into account--
                    (A) the poverty rate, as determined by the 
                Bureau of the Census, within each local 
                workforce development area;
                    (B) the proportion of the State at-risk 
                youth population residing within each local 
                workforce development area; and
                    (C) such additional factors as are 
                determined to be necessary.
            (2) Equitable allocation.--In developing such 
        formula, the Governor shall ensure that--
                    (A) the funds described in subsection 
                (a)(2)(A) are allocated in a geographically 
                equitable manner throughout the State; and
                    (B) the factors described in paragraph (1) 
                do not receive disproportionate weight in the 
                allocation.
    (c) State Grants.--
            (1) In general.--The Governor shall use the funds 
        described in subsection (a)(2)(B) to award grants, on a 
        competitive basis, to eligible providers to carry out 
        at-risk youth activities under section 122.
            (2) Eligible providers.--Providers eligible to 
        receive grants under this subsection to carry out such 
        activities include--
                    (A) local educational agencies, area 
                vocational education schools, educational 
                service agencies, institutions of higher 
                education (as defined in section 1201(a) of the 
                Higher Education Act of 1965 (20 U.S.C. 
                1141(a))), State corrections educational 
                agencies, or consortia of such entities;
                    (B) units of general local government;
                    (C) private nonprofit organizations 
                (including community-based organizations);
                    (D) private for-profit entities; and
                    (E) other organizations or entities of 
                demonstrated effectiveness that are approved by 
                the Governor.
            (3) Application.--To be eligible to receive a grant 
        under this subsection from the State to carry out such 
        activities, a provider shall prepare and submit an 
        application to the Governor of the State at such time, 
        in such manner, and containing such information as the 
        Governor may require.
            (4) Award of grants.--
                    (A) Process.--
                            (i) In general.--The Governor shall 
                        develop a peer review process for 
                        reviewing the applications and awarding 
                        the grants on a competitive basis.
                            (ii) Criteria.--The Governor shall 
                        establish criteria described in section 
                        104(b)(17)(C) to be used in reviewing 
                        the applications.
                    (B) Awards.--
                            (i) In general.--Using the process 
                        referred to in subparagraph (A), and 
                        taking into consideration the criteria 
                        referred to in subparagraph (A), the 
                        Governor shall award the grants to 
                        eligible providers.
                            (ii) Priority.--In awarding the 
                        grants, the Governor shall give 
                        priority to providers submitting 
                        applications to serve communities, or 
                        combinations of communities, that 
                        contain a large number or a high 
                        concentration of at-risk youth.
                            (iii) Equitable distribution.--In 
                        awarding the grants, the Governor shall 
                        ensure that--
                                    (I) the funds made 
                                available through the grants 
                                are distributed in a 
                                geographically equitable manner 
                                throughout the State; and
                                    (II) no factor receives 
                                disproportionate weight in the 
                                distribution.
    (d) Local Grants.--
            (1) In general.--From the funds made available 
        under subsection (a)(2)(A) to a local workforce 
        development area (other than funds described in section 
        122(c)), the local board for such local workforce 
        development area shall award grants, on a competitive 
        basis, to eligible providers to carry out at-risk youth 
        activities under section 122.
            (2) Eligible providers.--Providers eligible to 
        receive grants under this subsection to carry out such 
        activities in a local workforce development area 
        include the providers described in subparagraphs (A) 
        through (D) of subsection (c)(2) and other 
        organizations or entities of demonstrated effectiveness 
        that are approved by the local board.
            (3) Application.--To be eligible to receive a grant 
        under this subsection from the local board to carry out 
        such activities in a local workforce development area, 
        a provider shall prepare and submit an application to 
        the board at such time, in such manner, and containing 
        such information as the board may require.
            (4) Award of grants.--
                    (A) Process.--
                            (i) In general.--The local board 
                        shall develop a peer review process for 
                        reviewing the applications and awarding 
                        the grants on a competitive basis.
                            (ii) Criteria.--The local board 
                        shall establish criteria described in 
                        section 104(b)(17)(C) to be used in 
                        reviewing the applications.
                    (B) Awards.--
                            (i) In general.--Using the process 
                        referred to in subparagraph (A), and 
                        taking into consideration the criteria 
                        referred to in subparagraph (A), the 
                        local board shall award the grants to 
                        eligible providers.
                            (ii) Priority.--In awarding the 
                        grants, the local board shall give 
                        priority to providers submitting 
                        applications to serve communities, or 
                        combinations of communities, that 
                        contain a large number or a high 
                        concentration of at-risk youth.
                            (iii) Equitable distribution.--In 
                        awarding the grants, the local board 
                        shall ensure that--
                                    (I) the funds made 
                                available through the grants 
                                are distributed in a 
                                geographically equitable manner 
                                throughout the local workforce 
                                development area; and
                                    (II) no factor receives 
                                disproportionate weight in the 
                                distribution.
            (5) Limitation.--No local board may directly carry 
        out an at-risk youth activity.
    (e) Technical Assistance.--The Governor, in consultation 
with the chief elected officials in a local workforce 
development area, shall provide technical assistance to the 
local board for the local workforce development area to improve 
the level of performance of the local workforce development 
area with respect to at-risk youth activities if--
            (1) the local board requests such technical 
        assistance; or
            (2) the Governor, in carrying out the certification 
        requirements of section 108(c)(2), determines that the 
        local board requires such technical assistance.

SEC. 113. FUNDING FOR STATE VOCATIONAL EDUCATION ACTIVITIES AND 
                    DISTRIBUTION FOR SECONDARY SCHOOL VOCATIONAL 
                    EDUCATION.

    (a) Reservations for State and Local Activities.--
            (1) In general.--The sum of the funds made 
        available to a State for any program year under 
        paragraphs (3) and (5) of section 103(a) for vocational 
        education activities shall be made available in 
        accordance with this section and sections 114 and 115.
            (2) Distribution.--Of the sum described in 
        paragraph (1) that is made available to an eligible 
        agency for vocational education for a program year--
                    (A) not less than 85 percent shall be made 
                available to eligible providers to carry out 
                vocational education activities under this 
                section or section 114;
                    (B) not more than 11 percent shall be made 
                available to carry out State activities 
                described in section 123(a); and
                    (C) not more than 4 percent shall be made 
                available for administrative expenses at the 
                State level.
            (3) State determinations.--From the amount 
        available to an eligible agency in a State for 
        distribution to eligible providers under paragraph 
        (2)(A) for a program year, such agency shall determine 
        the percentage of such amount that will be distributed 
        in accordance with this section and section 114 for 
        such year for vocational education activities in such 
        State in the area of secondary school vocational 
        education, or postsecondary and adult vocational 
        education, or both.
    (b) Allocation for Secondary School Vocational Education.--
            (1) In general.--Except as otherwise provided in 
        this section and section 115, each eligible agency for 
        vocational education in a State shall distribute the 
        portion of the funds made available for any program 
        year (from funds made available for the corresponding 
        fiscal year, as determined under section 151(c)) by 
        such agency for secondary school vocational education 
        under subsection (a)(3) to local educational agencies 
        within the State as follows:
                    (A) Seventy percent.--From 70 percent of 
                such portion, each local educational agency 
                shall be allocated an amount that bears the 
                same relationship to such 70 percent as the 
                number of children who are described in 
                paragraph (2) and reside in the school district 
                served by such agency for the preceding fiscal 
                year bears to the total number of such children 
                who reside in the school districts served by 
                all local educational agencies in the State for 
                such preceding year.
                    (B) Thirty percent.--From 30 percent of 
                such portion, each local educational agency 
                shall be allocated an amount that bears the 
                same relationship to such 30 percent as the 
                number of students enrolled in schools, and 
                adults enrolled in training programs, under the 
                jurisdiction of such local educational agency 
                for the preceding fiscal year bears to the 
                number of students enrolled in schools, and 
                adults enrolled in training programs, under the 
                jurisdiction of all local educational agencies 
                in the State for such preceding year.
            (2) Number of children.--
                    (A) In general.--The number of children 
                referred to in paragraph (1)(A) is the number 
                of children aged 5 through 17, inclusive, from 
                families with incomes below the poverty line 
                (as defined by the Office of Management and 
                Budget and revised annually in accordance with 
                section 673(2) of the Community Services Block 
                Grant Act (42 U.S.C. 9902(2))) applicable to a 
                family of the size involved for the fiscal year 
                for which the determination is made.
                    (B) Population updates.--In fiscal year 
                1999 and every 2 years thereafter, the 
                Secretary of Education shall use updated data 
                on the number of children aged 5 through 17, 
                inclusive, from families with incomes below the 
                poverty line for local educational agencies, 
                published by the Department of Commerce, unless 
                the Secretary of Education and the Secretary of 
                Commerce determine that use of the updated 
                population data would be inappropriate or 
                unreliable, taking into consideration the 
                recommendations of the study to be conducted by 
                the National Academy of Sciences pursuant to 
                section 1124(c)(4) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 
                6333(c)(4)). If the Secretary of Education and 
                the Secretary of Commerce determine that some 
                or all of the data referred to in this 
                subparagraph are inappropriate or unreliable, 
                they shall jointly issue a report setting forth 
                their reasons in detail. In determining the 
                families with incomes below the poverty line, 
                the Secretary shall utilize the criteria of 
                poverty used by the Bureau of the Census in 
                compiling the most recent decennial census, in 
                such form as those criteria have been updated 
                by increases in the Consumer Price Index for 
                all urban consumers, published by the Bureau of 
                Labor Statistics.
            (3) Waiver for more equitable distribution.--
        Subject to subsection (c), the Secretary of Education 
        may waive the application of paragraph (1) in the case 
        of any eligible agency that submits to the Secretary an 
        application for such waiver that--
                    (A) demonstrates that an alternative 
                formula will result in a greater distribution 
                of funds to local educational agencies within 
                the State that serve the highest number or 
                greatest percentage of children described in 
                paragraph (2) than the formula described in 
                paragraph (1); and
                    (B) includes a proposal for such an 
                alternative formula.
    (c) Minimum Allocation.--
            (1) In general.--Except as provided in paragraphs 
        (2) and (3), no local educational agency shall receive 
        an allocation under subsection (b) for a program year 
        unless the amount allocated to such agency under 
        subsection (b) is $15,000 or more. A local educational 
        agency may enter into a consortium with other local 
        educational agencies for purposes of meeting the 
        minimum allocation requirement of this paragraph.
            (2) Waiver.--The eligible agency may waive the 
        application of paragraph (1) in any case in which the 
        local educational agency--
                    (A) is located in a rural, sparsely 
                populated area; and
                    (B) demonstrates that such agency is unable 
                to enter into a consortium for purposes of 
                providing services under this section.
            (3) Redistribution.--Any amounts that are not 
        allocated by reason of paragraph (1) for a program year 
        shall be redistributed for such program year--
                    (A) to a local educational agency--
                            (i) that did not receive an 
                        allocation under subsection (b) or 
                        pursuant to paragraph (2) for such 
                        program year;
                            (ii) that is located in a rural, 
                        sparsely populated area; and
                            (iii) for which at least 15 percent 
                        of the children in the school district 
                        served by such agency are children 
                        described in subsection (b)(2); and
                    (B) for vocational education services and 
                activities of sufficient size, scope, and 
                quality to be effective.
    (d) Limited Jurisdiction Agencies.--
            (1) In general.--In applying the provisions of 
        subsection (b), no eligible agency receiving assistance 
        under this title shall allocate funds to a local 
        educational agency that serves only elementary schools, 
        but shall distribute such funds to the local 
        educational agency or regional educational agency that 
        provides secondary school services to secondary school 
        students in the same attendance area.
            (2) Special rule.--The amount to be distributed 
        under paragraph (1) for a program year to a local 
        educational agency that has jurisdiction only over 
        secondary schools shall be determined based on the 
        number of students that entered such secondary schools 
        in the previous year from the elementary schools 
        involved.
    (e) Allocations to Area Vocational Education Schools and 
Educational Service Agencies.--
            (1) In general.--Each eligible agency shall 
        distribute the portion of funds made available for any 
        program year by such agency for secondary school 
        vocational education under subsection (a)(3) to the 
        appropriate area vocational education school or 
        educational service agency in any case in which the 
        area vocational education school or educational service 
        agency, and the local educational agency concerned--
                    (A) have formed or will form a consortium 
                for the purpose of receiving funds under this 
                section; or
                    (B) have entered into or will enter into a 
                cooperative arrangement for such purpose.
            (2) Allocation basis.--If an area vocational 
        education school or educational service agency meets 
        the requirements of paragraph (1), then--
                    (A) the amount that would otherwise be 
                distributed to the local educational agency for 
                a program year under this section shall be 
                allocated to the area vocational education 
                school, the educational service agency, and the 
                local educational agency, based on each 
                school's or agency's relative share of students 
                who are attending vocational education programs 
                (based, if practicable, on the average 
                enrollment for the prior 3 years); or
                    (B) such amount may be allocated on the 
                basis of an agreement between the local 
                educational agency and the area vocational 
                education school or educational service agency.
            (3) Appeals procedure.--The eligible agency shall 
        establish an appeals procedure for resolution of any 
        dispute arising between a local educational agency and 
        an area vocational education school or an educational 
        service agency with respect to the allocation 
        procedures described in this section, including the 
        decision of a local educational agency to leave a 
        consortium or terminate a cooperative arrangement.
            (4) Consortium requirements.--
                    (A) In general.--Notwithstanding the 
                provisions of paragraphs (1), (2), and (3), any 
                local educational agency receiving an 
                allocation that is not sufficient to conduct a 
                secondary school vocational education program 
                of sufficient size, scope, and quality to be 
                effective may--
                            (i) form a consortium or enter into 
                        a cooperative agreement with an area 
                        vocational education school or 
                        educational service agency offering 
                        secondary school vocational education 
                        programs of sufficient size, scope, and 
                        quality to be effective; and
                            (ii) transfer such allocation to 
                        the area vocational education school or 
                        educational service agency.
                    (B) Funds to consortium.--Funds allocated 
                to a consortium formed to meet the requirements 
                of this paragraph shall be used only for 
                purposes and activities that are mutually 
                beneficial to all members of the consortium. 
                Such funds may not be reallocated to individual 
                members of the consortium for purposes or 
                activities benefiting only one member of the 
                consortium.
    (f) Data.--The Secretary of Education shall collect 
information from States regarding how funds made available by 
the eligible agency for vocational education under subsection 
(a)(3) are distributed to local educational agencies in 
accordance with this section.

SEC. 114. DISTRIBUTION FOR POSTSECONDARY AND ADULT VOCATIONAL 
                    EDUCATION.

    (a) Allocation.--
            (1) In general.--Except as provided in subsection 
        (b) and section 115, each eligible agency for 
        vocational education in a State, using the portion of 
        the funds made available for any program year by such 
        agency for postsecondary and adult vocational education 
        under section 113(a)(3), shall distribute such portion 
        to eligible institutions or consortia of eligible 
        institutions within the State.
            (2) Formula.--Each eligible institution or 
        consortium of eligible institutions shall receive an 
        amount for the program year (from funds made available 
        for the corresponding fiscal year, as determined under 
        section 151(c)) from such portion that bears the same 
        relationship to such portion as the number of 
        individuals who are Pell Grant recipients or recipients 
        of assistance from the Bureau of Indian Affairs and are 
        enrolled in programs offered by such eligible 
        institution or consortium of eligible institutions, 
        respectively, for the preceding fiscal year bears to 
        the number of all such individuals who are enrolled in 
        any such program within the State for such preceding 
        year.
            (3) Consortium requirements.--
                    (A) In general.--In order for a consortium 
                of eligible institutions described in paragraph 
                (1) to receive assistance pursuant to such 
                paragraph such consortium shall operate joint 
                projects that--
                            (i) provide services to all 
                        postsecondary institutions 
                        participating in the consortium; and
                            (ii) are of sufficient size, scope, 
                        and quality to be effective.
                    (B) Funds to consortium.--Funds allocated 
                to a consortium formed to meet the requirements 
                of this section shall be used only for purposes 
                and activities that are mutually beneficial to 
                all members of the consortium. Such funds may 
                not be reallocated to individual members of the 
                consortium for purposes or activities 
                benefiting only one member of the consortium.
    (b) Waiver for More Equitable Distribution.--The Secretary 
of Education may waive the application of subsection (a) in the 
case of any eligible agency that submits to the Secretary of 
Education an application for such a waiver that--
            (1) demonstrates that an alternative formula will 
        result in a greater distribution of funds to the 
        eligible institutions or consortia of eligible 
        institutions within the State that serve the highest 
        numbers of low-income individuals than the formula 
        described in subsection (a)(2); and
            (2) includes a proposal for such an alternative 
        formula.
    (c) Minimum Amount.--
            (1) In general.--No distribution of funds provided 
        to any eligible institution or consortium of eligible 
        institutions for a program year under this section 
        shall be for an amount that is less than $50,000.
            (2) Redistribution.--Any amounts that are not 
        distributed by reason of paragraph (1) shall be 
        redistributed to eligible institutions or consortia of 
        eligible institutions in accordance with the provisions 
        of this section.

SEC. 115. SPECIAL RULES FOR VOCATIONAL EDUCATION.

    (a) Special Rule for Minimal Allocation.--
            (1) General authority.--Notwithstanding the 
        provisions of section 113 or 114 and in order to make a 
        more equitable distribution of funds for programs 
        serving the highest numbers or greatest percentages of 
        low-income individuals, for any program year for which 
        a minimal amount is made available by an eligible 
        agency for distribution under section 113 or 114 such 
        agency may distribute such minimal amount for such 
        year--
                    (A) on a competitive basis; or
                    (B) through any alternative method 
                determined by the eligible agency.
            (2) Minimal amount.--For purposes of this section, 
        the term ``minimal amount'' means not more than 15 
        percent of the total amount made available by the 
        eligible agency under section 113(a)(3) for sections 
        113 and 114 for a program year.
    (b) Redistribution.--
            (1) In general.--In any program year that an 
        eligible provider receiving financial assistance under 
        section 113 or 114 does not expend all of the amounts 
        distributed to such provider for such year under 
        section 113 or 114, respectively, such provider shall 
        return any unexpended amounts to the eligible agency 
        for distribution under section 113 or 114, 
        respectively. The eligible agency may waive the 
        requirements of the preceding sentence, on a case-by-
        case basis, for good cause as determined by such 
        agency.
            (2) Redistribution of amounts returned late in a 
        program year.--In any program year in which amounts are 
        returned to the eligible agency under paragraph (1) for 
        programs described in section 113 or 114 and the 
        eligible agency is unable to redistribute such amounts 
        according to section 113 or 114, respectively, in time 
        for such amounts to be expended in such program year, 
        the eligible agency shall retain such amounts for 
        distribution in combination with amounts made available 
        under such section for the following program year.
    (c) Construction.--Nothing in section 113 or 114 shall be 
construed--
            (1) to prohibit a local educational agency (or a 
        consortium thereof) that receives assistance under 
        section 113, from working with an eligible provider (or 
        consortium thereof) that receives assistance under 
        section 114, to carry out secondary school vocational 
        education activities in accordance with this title; or
            (2) to prohibit an eligible provider (or consortium 
        thereof) that receives assistance under section 114, 
        from working with a local educational agency (or 
        consortium thereof) that receives assistance under 
        section 113, to carry out postsecondary and adult 
        vocational education activities in accordance with this 
        title.
    (d) Local Application for Vocational Education 
Activities.--
            (1) Application required.--Each provider in a State 
        desiring financial assistance under this subtitle for 
        vocational education activities shall submit an 
        application to the eligible agency for vocational 
        education at such time, in such manner, and accompanied 
        by such information as such agency (in consultation 
        with other educational entities as the eligible agency 
        determines appropriate) may require. Such application 
        shall cover the same period of time as the period of 
        time applicable to the State plan submitted under 
        section 104.
            (2) Contents.--Each application described in 
        paragraph (1) shall, at a minimum--
                    (A) describe how the vocational education 
                activities required under section 123 will be 
                carried out with funds received under this 
                subtitle;
                    (B) describe how the activities to be 
                carried out relate to meeting the State goals, 
                and reaching the State benchmarks, concerning 
                vocational education activities;
                    (C) describe how the provider will address 
                the needs of students who participate in 
                vocational education activities to be taught to 
                the same challenging academic proficiencies as 
                all students;
                    (D) describe the process that will be used 
                to independently evaluate and continuously 
                improve the performance of the provider;
                    (E) describe how the provider will 
                coordinate the activities of the provider with 
                the activities of the local board in the local 
                workforce development area; and
                    (F) describe how parents, teachers, and the 
                community are involved in the development and 
                implementation of activities under this 
                section.

SEC. 116. DISTRIBUTION FOR ADULT EDUCATION AND LITERACY.

    (a) Reservations for State and Local Activities.--
            (1) In general.--The sum of the funds made 
        available to a State for any program year under 
        paragraphs (4) and (5) of section 103(a) for adult 
        education and literacy activities shall be made 
        available in accordance with this section.
            (2) Distribution.--Of the sum described in 
        paragraph (1) that is made available to an eligible 
        agency for adult education and literacy for a program 
        year--
                    (A) not less than 85 percent shall be made 
                available to award grants in accordance with 
                this section to carry out adult education and 
                literacy activities;
                    (B) not more than 10 percent shall be made 
                available to carry out State activities 
                described in section 124(a); and
                    (C) subject to subparagraph (A), not more 
                than 5 percent, or $50,000, whichever is 
                greater, shall be made available for 
                administrative expenses at the State level.
    (b) Grants.--
            (1) In general.--Except as provided in paragraph 
        (2), from the amount made available to an eligible 
        agency for adult education and literacy under 
        subsection (a)(2)(A) for a program year, such agency 
        shall award grants, on a competitive basis, to local 
        educational agencies, correctional education agencies, 
        community-based organizations of demonstrated 
        effectiveness, volunteer literacy organizations, 
        libraries, public or private nonprofit agencies, 
        postsecondary educational institutions, public housing 
        authorities, and other nonprofit institutions, that 
        have the ability to provide literacy services to adults 
        and families, or consortia of agencies, organizations, 
        or institutions described in this subsection, to enable 
        such agencies, organizations, institutions, and 
        consortia to carry out adult education and literacy 
        activities.
            (2) Consortia.--An eligible agency may award a 
        grant under this section to a consortium that includes 
        a provider described in paragraph (1) and a for-profit 
        agency, organization, or institution, if such agency, 
        organization, or institution--
                    (A) can make a significant contribution to 
                carrying out the objectives of this title; and
                    (B) enters into a contract with such 
                provider to carry out adult education and 
                literacy activities.
    (c) Grant Requirements.--
            (1) Equitable access.--Each eligible agency 
        awarding a grant under this section for adult education 
        and literacy activities shall ensure that the providers 
        described in subsection (b) will be provided direct and 
        equitable access to all Federal funds provided under 
        this section.
            (2) Special rule.--Each eligible agency awarding a 
        grant under this section shall not use any funds made 
        available under this title for adult education and 
        literacy activities for the purpose of supporting or 
        providing programs, services, or activities for 
        individuals who are not individuals described in 
        subparagraphs (A) and (B) of section 4(1), except that 
        such agency may use such funds for such purpose if such 
        programs, services, or activities are related to family 
        literacy services.
            (3) Considerations.--In awarding grants under this 
        section, the eligible agency shall consider--
                    (A) the past effectiveness of a provider 
                described in subsection (b) in providing 
                services (especially with respect to 
                recruitment and retention of educationally 
                disadvantaged adults and the learning gains 
                demonstrated by such adults);
                    (B) the degree to which the provider will 
                coordinate services with other literacy and 
                social services available in the community, 
                including coordination with one-stop career 
                center systems established in section 121(d); 
                and
                    (C) the commitment of the provider to serve 
                individuals in the community who are most in 
                need of literacy services.
    (d) Local Administrative Cost Limits.--
            (1) In general.--Except as provided in paragraph 
        (2), of the funds provided under this section by an 
        eligible agency to a provider described in subsection 
        (b), not less than 95 percent shall be expended for 
        provision of adult education and literacy activities. 
        The remainder shall be used for planning, 
        administration, personnel development, and interagency 
        coordination.
            (2) Special rule.--In cases where the cost limits 
        described in paragraph (1) will be too restrictive to 
        allow for adequate planning, administration, personnel 
        development, and interagency coordination supported 
        under this section, the eligible agency shall negotiate 
        with the provider described in subsection (b) in order 
        to determine an adequate level of funds to be used for 
        noninstructional purposes.

SEC. 117. DISTRIBUTION FOR FLEXIBLE ACTIVITIES.

    (a) Employment and Training Activities.--A State that uses 
funds made available to the State under this title through the 
flex account to carry out employment and training activities 
shall distribute such funds in accordance with section 111.
    (b) At-Risk Youth Activities.--A State that uses funds made 
available to the State under this title through the flex 
account to carry out at-risk youth activities shall distribute 
such funds in accordance with section 112.
    (c) Vocational Education Activities.--A State that uses 
funds made available to the State under this title through the 
flex account to carry out vocational education activities shall 
distribute such funds in accordance with sections 113, 114, and 
115.
    (d) Adult Education and Literacy Activities.--A State that 
uses funds made available to the State under this title through 
the flex account to carry out adult education and literacy 
activities shall distribute such funds in accordance with 
section 116.

                        Subtitle C--Use of Funds

SEC. 121. EMPLOYMENT AND TRAINING ACTIVITIES.

    (a) In General.--Funds made available to States and local 
workforce development areas under this title for employment and 
training activities--
            (1) shall be used to carry out the activities 
        described in subsections (b), (e), and (g); and
            (2) may be used to carry out the activities 
        described in subsections (c) and (f).
    (b) Required State Activities.--A State shall use funds 
made available for State employment and training activities 
under section 111(a)(2)(B)--
            (1) to provide rapid response assistance;
            (2) to provide labor market information as 
        described in section 139; and
            (3) to conduct evaluations, under section 106(d), 
        of activities authorized in this section.
    (c) Permissible State Activities.--A State may use funds 
made available for State employment and training activities 
under section 111(a)(2)(B)--
            (1) to provide services that may include--
                    (A) providing professional development and 
                technical assistance;
                    (B) making incentive grants to local 
                workforce development areas for exemplary 
                performance in reaching or exceeding benchmarks 
                described in section 108(d)(4)(A);
                    (C) providing economic development 
                activities (to supplement other funds provided 
                by the State, a local agency, or the private 
                sector for such activities) that consist of--
                            (i) providing services to upgrade 
                        the skills of employed workers who are 
                        at risk of being permanently laid off;
                            (ii) retraining employed workers in 
                        new technologies and work processes 
                        that will facilitate the conversion and 
                        restructuring of business to assist in 
                        the avoidance of a permanent closure or 
                        substantial layoff at a plant, 
                        facility, or enterprise;
                            (iii) providing customized 
                        assessments of the skills of workers 
                        and an analysis of the skill needs of 
                        employers;
                            (iv) assisting consortia of small- 
                        and medium-size employers in upgrading 
                        the skills of their workforces;
                            (v) providing productivity and 
                        quality improvement training programs 
                        for the workforces of small- and 
                        medium-size employers; and
                            (vi) establishing and implementing 
                        an employer loan program to assist 
                        employees in skills upgrading;
                    (D) implementing efforts to increase the 
                number of participants trained and placed in 
                nontraditional employment; and
                    (E) carrying out other activities 
                authorized in this section that the State 
                determines to be necessary to assist local 
                workforce development areas in carrying out 
                activities described in subsection (e) or (f) 
                through the statewide system;
            (2) to operate a fiscal and management 
        accountability information system under section 106(e);
            (3) to assist in the establishment of the one-stop 
        career center system described in subsection (d); and
            (4) to carry out the career grant pilot program 
        described in subsection (g).
    (d) Establishment of One-Stop Career Center System.--
            (1) In general.--There shall be established in a 
        State that receives an allotment under section 102 a 
        one-stop career center system, which--
                    (A) shall provide the core services 
                described in subsection (e)(2);
                    (B) shall provide access to the activities 
                (if any) carried out under subsection (f);
                    (C) shall make labor market information 
                described in section 139 and subsection 
                (e)(2)(D) available and shall provide all job 
                search, placement, recruitment, and other labor 
                exchange services authorized under the Wagner-
                Peyser Act (29 U.S.C. 49 et seq.); and
                    (D)(i) shall provide access to training 
                services as described in subsection (e)(3), 
                which may include serving as the point of 
                distribution of career grants for training 
                services to participants in accordance with 
                subsection (e)(3); and
                    (ii) may serve as the point of distribution 
                of career grants for training services to 
                participants in accordance with subsection (g).
            (2) One-stop delivery.--At a minimum, the one-stop 
        career center system shall make the services described 
        in paragraph (1) available--
                    (A) through a network of eligible providers 
                that assures participants that the core 
                services described in subsection (e)(2) will be 
                available regardless of where the participants 
                initially enter the statewide system, including 
                the availability of such services through 
                multiple, connected access points, linked 
                electronically or technologically;
                    (B) through a network of career centers 
                that can provide the services described in 
                paragraph (1) to participants;
                    (C) at not less than 1 physical, co-located 
                career center in each local workforce 
                development area of the State, that provides 
                the services described in paragraph (1) to 
                participants seeking such services; or
                    (D) through a combination of the options 
                described in subparagraphs (A) through (C).
    (e) Required Local Activities.--
            (1) In general.--Funds made available to local 
        workforce development areas under section 111(a)(2)(A) 
        shall be used--
                    (A) to establish the one-stop career center 
                described in subsection (d);
                    (B) to provide the core services described 
                in paragraph (2) (referred to in this section 
                as ``core services'') to participants through 
                the one-stop career center system; and
                    (C) to provide training services described 
                in paragraph (3) (referred to in this section 
                as ``training services'') to participants 
                described in such paragraph.
            (2) Core services.--Funds made available to local 
        workforce development areas under section 111(a)(2)(A) 
        shall be used to provide core services, which shall be 
        available to all individuals through a one-stop career 
        center system and shall, at a minimum, include--
                    (A) outreach, intake, and orientation to 
                the information and other services available 
                through the one-stop career center system;
                    (B) initial assessment of skill levels, 
                aptitudes, abilities, and supportive service 
                needs;
                    (C) job search and placement assistance, 
                and, where appropriate, career counseling;
                    (D) provision of accurate labor market 
                information relating to--
                            (i) local, State, and, if 
                        appropriate, regional or national, 
                        occupations in demand; and
                            (ii) skill requirements for such 
                        occupations, where available;
                    (E)(i) provision of accurate information 
                relating to the quality and availability of 
                activities authorized in this section, at-risk 
                youth activities, vocational education 
                activities, adult education and literacy 
                activities, and vocational rehabilitation 
                program activities;
                    (ii) provision of information relating to 
                adult education and literary activities, 
                through cooperative efforts with eligible 
                providers of adult education and literacy 
                activities described in section 116(b); and
                    (iii) referral to appropriate activities 
                described in clauses (i) and (ii);
                    (F) provision of eligibility information 
                relating to unemployment compensation, publicly 
                funded education and training programs 
                (including registered apprenticeships), and 
                forms of public financial assistance, such as 
                student aid programs, that may be available in 
                order to enable individuals to participate in 
                workforce and career development activities;
                    (G) dissemination of lists of providers and 
                performance information in accordance with 
                paragraph (3)(E)(ii); and
                    (H) provision of information regarding how 
                the local workforce development area is 
                performing on the local benchmarks described in 
                section 108(d)(4)(A), and any additional 
                performance information provided by the local 
                board.
            (3) Required training services.--
                    (A) Services.--Funds made available to 
                local workforce development areas under section 
                111(a)(2)(A) shall be used to provide training 
                services to individuals who are unable to 
                obtain employment through the core services, 
                who after an interview, evaluation or 
                assessment, and counseling by an eligible 
                provider have been determined to be in need of 
                training services, and who meet the 
                requirements of subparagraph (B). Training 
                services may include--
                            (i) occupational skills training;
                            (ii) on-the-job training;
                            (iii) skills upgrading and 
                        retraining for persons not in the 
                        workforce; and
                            (iv) basic skills training when 
                        provided in combination with services 
                        described in clause (i), (ii), or 
                        (iii).
                    (B) Qualification.--
                            (i) Requirement.--Except as 
                        provided in clause (ii), provision of 
                        such training services shall be limited 
                        to participants who--
                                    (I) are unable to obtain 
                                other grant assistance for such 
                                services, including Federal 
                                Pell Grants established under 
                                title IV of the Higher 
                                Education Act of 1965 (20 
                                U.S.C. 1070 et seq.); or
                                    (II) who 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 workforce development area 
                        from such Federal Pell Grant.
                    (C) Priority.--In the event that funds are 
                limited within a local workforce development 
                area, priority shall be given to dislocated 
                workers and other unemployed individuals for 
                receipt of training services provided under 
                this paragraph. The appropriate local board and 
                the Governor shall provide policy guidance to 
                one-stop career center eligible providers in 
                the local workforce development area for making 
                determinations related to such priority.
                    (D) Delivery of services.--Training 
                services provided under this paragraph shall be 
                provided--
                            (i) except as provided in section 
                        107(d), through eligible providers of 
                        such services identified in accordance 
                        with section 107; and
                            (ii) in accordance with 
                        subparagraph (E).
                    (E) Consumer choice requirements.--
                            (i) In general.--Training services 
                        provided under this paragraph may be 
                        provided through the use of career 
                        grants, contracts, or other methods 
                        (which may include performance-based 
                        contracting) and shall, to the extent 
                        practicable, maximize consumer choice 
                        in the selection of an eligible 
                        provider of such services.
                            (ii) Eligible providers.--Each 
                        local workforce development area, 
                        through one-stop career centers, shall 
                        make available--
                                    (I) the list of eligible 
                                providers of training services 
                                required under section 
                                107(b)(4), with a description 
                                of the training courses 
                                available from such providers 
                                and a list of the names of on-
                                the-job training providers; and
                                    (II) the performance 
                                information described in 
                                subsections (b)(4) and (d)(2) 
                                of section 107 relating to such 
                                providers.
                            (iii) Purchase of services.--An 
                        individual eligible for receipt of 
                        training services under this paragraph 
                        may select an eligible provider of 
                        training services from the lists of 
                        providers described in clause (ii)(I). 
                        Upon such selection, the operator of 
                        the one-stop career center shall, to 
                        the extent practicable, refer such 
                        individual to the eligible provider of 
                        training services, and arrange for 
                        payment for such services.
                    (F) Use of career grants.--A State or a 
                local workforce development area may deliver 
                all training services authorized in this 
                paragraph through the use of career grants.
    (f) Permissible Local Activities.--
            (1) Discretionary one-stop delivery activities.--
        Funds made available to local workforce development 
        areas under section 111(a)(2)(A) may be used to 
        provide, through one-stop delivery described in 
        subsection (d)(2)--
                    (A) co-location of services related to 
                workforce and career development activities, 
                such as unemployment insurance, vocational 
                rehabilitation program activities, veterans' 
                employment services, or other public 
                assistance;
                    (B) intensive employment-related services 
                for participants who are unable to obtain 
                employment through the core services, as 
                determined by the State;
                    (C) dissemination to employers of 
                information on activities carried out through 
                the statewide system;
                    (D) customized screening and referral of 
                qualified participants to employment; and
                    (E) customized employment-related services 
                to employers on a fee-for-service basis.
            (2) Supportive services.--Funds made available to 
        local workforce development areas under section 
        111(a)(2)(A) may be used to provide supportive services 
        to participants--
                    (A) who are receiving training services; 
                and
                    (B) who are unable to obtain such 
                supportive services through other programs 
                providing such services.
            (3) Followup services.--Funds made available to 
        local workforce development areas under section 
        111(a)(2)(A) may be used to provide followup services 
        for participants in activities authorized in this 
        section who are placed in unsubsidized employment.
            (4) Needs-related payments.--
                    (A) In general.--Funds made available to 
                local workforce development areas under section 
                111(a)(2)(A) may be used to provide needs-
                related payments to dislocated workers who are 
                unemployed and do not qualify for, or have 
                ceased to qualify for, unemployment 
                compensation, for the purpose of enabling such 
                individuals to participate in training 
                services.
                    (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 8th week of 
                        the worker's initial unemployment 
                        compensation benefits period; or
                            (ii) if later, by the end of the 
                        8th week after the worker is informed 
                        that a short-term layoff will, in fact, 
                        exceed 6 months.
                    (C) Level of payments.--The level of a 
                needs-related payment made under this 
                paragraph--
                            (i) shall not exceed the greater 
                        of--
                                    (I) the applicable level of 
                                unemployment compensation; or
                                    (II) an amount equal to the 
                                poverty line (as defined by the 
                                Office of Management and 
                                Budget, and revised annually in 
                                accordance with section 673(2) 
                                of the Community Services Block 
                                Grant Act (42 U.S.C. 9902(2)) 
                                applicable to a family of the 
                                size involved, for an 
                                equivalent period; and
                            (ii) shall be adjusted to reflect 
                        changes in total family income.
            (5) Career grant pilot program.--Funds made 
        available to local workforce development areas under 
        section 111(a)(2)(A) may be used to carry out the 
        career grant pilot program described in subsection (g), 
        which may be carried out in conjunction with the 
        provision of training services under subsection (e)(3).
    (g) Career Grant Pilot Program for Dislocated Workers.--The 
State shall carry out (using funds made available under section 
111(a)(2)(B) or by making funds available to local workforce 
development areas under section 111(a)(2)(A)) a career grant 
pilot program for dislocated workers that is of sufficient 
size, scope, and quality to measure the effectiveness of the 
use of career grants for the provision of training services 
under subsection (e)(3).
    (h) Local Administration.--Not more than 10 percent of the 
funds made available under section 111(a)(2)(A) to a local 
workforce development area may be used for administrative 
expenses.

SEC. 122. AT-RISK YOUTH ACTIVITIES.

    (a) Required Activities.--Funds made available to Governors 
and local workforce development areas under this title for at-
risk youth activities shall be used to carry out, for at-risk 
youth, activities that--
            (1) provide strong linkages between academic, 
        occupational, and worksite learning;
            (2) provide postsecondary educational 
        opportunities, where appropriate;
            (3) involve business and parents in the design and 
        implementation of the activities;
            (4) provide adult mentoring;
            (5) provide career guidance and counseling; and
            (6) are of sufficient size, scope, and quality to 
        be effective.
    (b) Permissible Activities.--Funds made available to 
Governors and local workforce development areas under this 
title for at-risk youth activities may be used to carry out, 
for at-risk youth, activities that provide--
            (1) tutoring, study skills training, and 
        instruction, leading to completion of secondary school, 
        including dropout prevention strategies;
            (2) alternative secondary school services;
            (3) paid and unpaid work experience, including 
        summer employment opportunities, that are directly 
        linked to academic, occupational, and worksite 
        learning; and
            (4) training-related supportive services.
    (c) Local Administration.--Not more than 10 percent of the 
funds made available under section 112(a)(2)(A) to a local 
workforce development area may be used for administrative 
expenses. The local board for the local workforce development 
area may use not more than 4 percent of the funds made 
available under section 112(a)(2)(A) for the administrative 
expenses of the local board. The remainder of the 10 percent 
may be used for administrative expenses of eligible providers 
of at-risk youth activities in the local workforce development 
area.

SEC. 123. VOCATIONAL EDUCATION ACTIVITIES.

    (a) Permissible State Activities.--The eligible agency for 
vocational education shall use not more than 11 percent of the 
funds made available to the eligible agency under subtitle A 
for activities that may include--
            (1) an assessment of the activities authorized in 
        this section;
            (2) support for tech-prep programs;
            (3) support for activities authorized in this 
        section for single parents, displaced homemakers, and 
        single pregnant women;
            (4) professional development activities, 
        including--
                    (A) inservice and preservice training in 
                state-of-the-art vocational education programs 
                and techniques; and
                    (B) support of education programs for 
                teachers of vocational education in public 
                schools to ensure such teachers stay current 
                with the needs, expectations, and methods of 
                industry;
            (5) support for programs that offer experience in, 
        and understanding of, all aspects of the industry 
        students are preparing to enter;
            (6) leadership and instructional programs in 
        technology education;
            (7) support for cooperative education;
            (8) support for family and consumer sciences 
        programs;
            (9) support for vocational student organizations;
            (10) improvement of career guidance and counseling;
            (11) technical assistance; and
            (12) performance awards for 1 or more eligible 
        providers that the eligible agency determines have 
        achieved exceptional performance in providing 
        activities described in this section.
    (b) Required Local Activities.--The eligible agency for 
vocational education shall use not less than 85 percent of the 
funds made available to the eligible agency under subtitle A to 
provide financial assistance under sections 113 and 114 to 
eligible providers to enable such providers to carry out 
activities authorized in this section that include--
            (1)(A) integrating academic and vocational 
        education;
            (B) integrating classroom and worksite learning; 
        and
            (C) linking secondary and postsecondary education, 
        including implementing tech-prep programs;
            (2) providing career guidance and counseling;
            (3) providing vocational education programs of 
        sufficient size, scope, and quality to be effective;
            (4) improving and expanding access to quality, 
        state-of-the-art activities authorized in this section;
            (5) providing professional development; and
            (6) involving business and parents in the design 
        and implementation of activities authorized in this 
        section.

SEC. 124. ADULT EDUCATION AND LITERACY ACTIVITIES.

    (a) Permissible State Activities.--The eligible agency for 
adult education and literacy may use not more than 10 percent 
of the funds made available to the eligible agency under 
subtitle A for activities that may include--
            (1) the establishment or operation of professional 
        development programs to improve the quality of 
        instruction provided pursuant to local activities 
        authorized in this section, including instruction 
        provided by volunteers;
            (2) the provision of technical assistance to 
        eligible providers of activities authorized in this 
        section;
            (3) the provision of technology assistance to 
        eligible providers of activities authorized in this 
        section to enable the providers to improve the quality 
        of such activities;
            (4) the support of State or regional networks of 
        literacy resource centers; and
            (5) the monitoring and evaluation of the quality of 
        and the improvement in activities authorized in this 
        section.
    (b) Required Local Activities.--The eligible agency for 
adult education and literacy shall require that each eligible 
provider receiving a grant under section 116 use the grant to 
establish or operate 1 or more programs that provide 
instruction or services in 1 or more of the following 
categories:
            (1) Adult education and literacy services.
            (2) Family literacy services.
            (3) English literacy programs.

SEC. 125. FLEXIBLE ACTIVITIES.

    (a) In General.--A State may use the funds made available 
to the State under this title through the flex account to carry 
out--
            (1) employment and training activities;
            (2) at-risk youth activities;
            (3) vocational education activities; and
            (4) adult education and literacy activities.
    (b) Use of Funds.--
            (1) Employment and training activities.--A State 
        that uses funds made available to the State under this 
        title through the flex account to carry out employment 
        and training activities shall expend such funds in 
        accordance with sections 121 and 126.
            (2) At-risk youth activities.--A State that uses 
        funds made available to the State under this title 
        through the flex account to carry out at-risk youth 
        activities shall expend such funds in accordance with 
        sections 122 and 126.
            (3) Vocational education activities.--A State that 
        uses funds made available to the State under this title 
        through the flex account to carry out vocational 
        education activities shall expend such funds in 
        accordance with sections 123 and 126.
            (4) Adult education and literacy activities.--A 
        State that uses funds made available to the State under 
        this title through the flex account to carry out adult 
        education and literacy activities shall expend such 
        funds in accordance with sections 124 and 126.

SEC. 126. REQUIREMENTS AND RESTRICTIONS RELATING TO USE OF FUNDS.

    (a) Fiscal Requirements for Vocational Education Activities 
and Adult Education and Literacy Activities.--
            (1) Supplement not supplant.--Funds made available 
        under this title for vocational education activities or 
        adult education and literacy activities shall 
        supplement, and may not supplant, other public funds 
        expended to carry out activities described in section 
        123 or 124, respectively.
            (2) Maintenance of effort.--
                    (A) Determination.--
                            (i) In general.--Except as provided 
                        in clauses (ii) and (iii), and 
                        subparagraph (B), no payments shall be 
                        made under this title for any program 
                        year to a State for vocational 
                        education activities or adult education 
                        and literacy activities unless the 
                        Secretary of Education determines that 
                        the fiscal effort per student or the 
                        aggregate expenditures of such State 
                        for activities described in section 123 
                        or 124, respectively, for the program 
                        year preceding the program year for 
                        which the determination is made, 
                        equaled or exceeded such effort or 
                        expenditures for activities described 
                        in section 123 or 124, respectively, 
                        for the second program year preceding 
                        the fiscal year for which the 
                        determination is made.
                            (ii) Computation.--In computing the 
                        fiscal effort or aggregate expenditures 
                        pursuant to clause (i), the Secretary 
                        of Education shall exclude capital 
                        expenditures, special one-time project 
                        costs, similar windfalls, and the cost 
                        of pilot programs.
                            (iii) Decrease in federal 
                        support.--If the amount made available 
                        for vocational education activities or 
                        adult education and literacy activities 
                        under this title for a fiscal year is 
                        less than the amount made available for 
                        vocational education activities or 
                        adult education and literacy 
                        activities, respectively, under this 
                        title for the preceding fiscal year, 
                        then the fiscal effort per student or 
                        the aggregate expenditures of a State 
                        required by clause (i) for such 
                        preceding fiscal year shall be 
                        decreased by the same percentage as the 
                        percentage decrease in the amount so 
                        made available.
                    (B) Special rule.--Notwithstanding any 
                provision of the Carl D. Perkins Vocational 
                Education Act (as such Act was in effect on 
                September 24, 1990), a State shall be deemed to 
                have met the requirements of section 503 of 
                such Act with respect to decisions appealed by 
                applications filed on April 30, 1993 and 
                October 29, 1993 under section 452(b) of the 
                General Education Provisions Act.
                    (C) Waiver.--The Secretary of Education may 
                waive the requirements of subparagraph (A) 
                (with respect to not more than 5 percent of 
                expenditures required for the preceding fiscal 
                year by any eligible agency) for 1 program year 
                only, after making a determination that such 
                waiver would be equitable due to exceptional or 
                uncontrollable circumstances affecting the 
                ability of the eligible agency to meet such 
                requirements, such as a natural disaster or an 
                unforeseen and precipitous decline in financial 
                resources. No level of funding permitted under 
                such a waiver may be used as the basis for 
                computing the fiscal effort or aggregate 
                expenditures required under this paragraph for 
                years subsequent to the year covered by such 
                waiver. The fiscal effort or aggregate 
                expenditures for the subsequent years shall be 
                computed on the basis of the level of funding 
                that would, but for such waiver, have been 
                required.
            (3) Expenditures of non-federal funds for adult 
        education and literacy activities.--For any program 
        year for which an allotment is made to the State under 
        this title, the State shall expend, on programs and 
        activities relating to adult education and literacy 
        activities, an amount, derived from sources other than 
        the Federal Government, equal to 25 percent of the 
        amount made available to a State under paragraphs (4) 
        and (5) of section 103(a) for adult education and 
        literacy activities.
    (b) Limitations on Activities That Impact Employees.--
            (1) Wages.--No funds provided under this title 
        shall be used to pay the wages of incumbent employees 
        during their participation in economic development 
        activities described in section 121(c)(1)(C) provided 
        through the statewide system.
            (2) Relocation.--
                    (A) In general.--No funds provided under 
                this title for an employment and training 
                activity shall be used or proposed for use to 
                encourage or induce the relocation, of a 
                business or part of a business, that results in 
                a loss of employment for any employee of such 
                business at the original location, if such 
                original location is within the United States.
                    (B) Repayment.--If the Secretary of Labor 
                determines that a violation of this paragraph 
                or paragraph (3) has occurred, the Secretary of 
                Labor shall require the State that has violated 
                this paragraph or paragraph (3), respectively, 
                to repay to the United States an amount equal 
                to the amount expended in violation of this 
                paragraph or paragraph (3), respectively.
            (3) Training and assessments following 
        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 120 days after the date on which 
        such business commences operations at the new location, 
        if the relocation of such business or part of a 
        business, results in a loss of employment for any 
        employee of such business at the original location and 
        such original location is within the United States.
            (4) Displacement.--
                    (A) Prohibition on displacement.--A 
                participant in an activity authorized in 
                section 121 or 122 (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.
                    (C) Prohibition on replacement.--A 
                participant in a specified activity shall not 
                be employed in a job--
                            (i) when any other individual is on 
                        temporary layoff, with the clear 
                        possibility of recall, from the same or 
                        any substantially equivalent job with 
                        the participating employer; or
                            (ii) when the employer has 
                        terminated the employment of any 
                        regular employee or otherwise reduced 
                        the workforce of the employer with the 
                        intention of filling the vacancy so 
                        created with the participant.
            (5) 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.
            (6) Employment conditions.--Participants employed 
        or assigned to work in positions subsidized for 
        specified activities shall be provided benefits and 
        working conditions at the same level and to the same 
        extent as other employees working a similar length of 
        time and doing the same type of work.
            (7) Effect on other laws.--Nothing in this Act 
        shall be construed to modify or affect any Federal or 
        State law prohibiting discrimination on the basis of 
        race, color, religion, sex, national origin, age, or 
        disability.
            (8) Nondiscrimination.--Except as otherwise 
        permitted in law, no individual may be discriminated 
        against with respect to participation in specified 
        activities because of race, color, religion, sex, 
        national origin, age, or disability.
            (9) Grievance procedure.--A State that receives an 
        allotment under section 102 shall establish and 
        maintain a grievance procedure for resolving complaints 
        alleging violations of any of the prohibitions or 
        requirements described in this subsection.
            (10) Exclusive remedy.--Except as provided in 
        paragraph (7), nothing in this Act shall be construed 
        to provide an individual with an entitlement to a 
        service or to establish a right for an individual to 
        bring any action for a violation of a prohibition or 
        requirement of this title or to obtain services through 
        an activity established under this title, except that a 
        participant in specified activities under this title 
        may pursue a complaint alleging a violation of any of 
        the prohibitions or requirements described in this 
        subsection through the grievance procedure described in 
        paragraph (9).
    (c) Limitations on Participants in Training Services.--
            (1) Diploma or equivalent.--
                    (A) In general.--No individual may 
                participate in training services described in 
                section 121(e)(3) until the individual has 
                obtained a secondary school diploma or its 
                recognized equivalent, or is enrolled in a 
                program or course of study to obtain a 
                secondary school diploma or its recognized 
                equivalent.
                    (B) Exception.--Nothing in subparagraph (A) 
                shall prevent participation in such training 
                services by an individual for whom the 
                requirement described in subparagraph (A) has 
                been determined to be inappropriate, pursuant 
                to the interview, evaluation or assessment, and 
                counseling described in section 121(e)(3)(A).
            (2) Services.--
                    (A) Referral.--If an individual who has not 
                obtained a secondary school diploma or its 
                recognized equivalent applies to participate in 
                such training services, and a determination 
                described in paragraph (1)(B) has not been made 
                for such individual, such individual shall be 
                referred to State-approved adult education and 
                literacy activities that provide instruction 
                designed to help such individual obtain a 
                secondary school diploma or its recognized 
                equivalent.
                    (B) Provision of services.--Funds made 
                available under section 111(a)(2)(A) and 
                allocated within the local workforce 
                development area for the provision of such 
                training services may be used to provide State-
                approved adult education and literacy 
                activities that provide instruction designed to 
                help individuals obtain a secondary school 
                diploma or its recognized equivalent, to 
                individuals who--
                            (i) are seeking to participate in 
                        such training services; and
                            (ii) are otherwise unable to obtain 
                        such services.
    (d) Drug Testing Limitations on Participants in Training 
Services.--
            (1) Finding.--Congress finds that--
                    (A) the possession, distribution, and use 
                of drugs by participants in training services 
                should not be tolerated, and that such use 
                prevents participants from making full use of 
                the benefits extended through such training 
                services at the expense of taxpayers; and
                    (B) applicants and participants should be 
                tested for illegal drug use, in order to 
                maximize the training services and assistance 
                provided under this title.
            (2) Drug tests.--Each eligible provider of training 
        services described in section 121(e)(3) shall 
        administer a drug test--
                    (A) on a random basis, to individuals who 
                apply to participate in such training services; 
                and
                    (B) to a participant in such training 
                services, on reasonable suspicion of drug use 
                by the participant.
            (3) Eligibility of applicants.--In order for such 
        an applicant to be eligible to participate in such 
        training services, the applicant shall agree to submit 
        to a drug test administered as described in paragraph 
        (2)(A) and, if the test is administered to the 
        applicant, shall pass the test.
            (4) Eligibility of participants.--In order for such 
        a participant to remain eligible to participate in such 
        training services, the participant shall agree to 
        submit to a drug test administered as described in 
        paragraph (2)(B) and, if the test is administered to 
        the participant, shall pass the test. If a participant 
        refuses to submit to the drug test, or fails the drug 
        test, the eligible provider shall dismiss the 
        participant from participation in such training 
        services.
            (5) Reapplication.--
                    (A) In general.--Except as provided in 
                subparagraph (B), an individual who is an 
                applicant and is disqualified from eligibility 
                under paragraph (3), or who is a participant 
                and is dismissed under paragraph (4), may 
                reapply, not earlier than 6 months after the 
                date of the disqualification or dismissal, to 
                participate in such training services. If the 
                individual demonstrates that the individual has 
                completed a drug treatment program and passed a 
                drug test within the 30-day period prior to the 
                date of the reapplication, the individual may 
                participate in such training services, under 
                the same terms and conditions as apply to other 
                applicants and participants, including 
                submission to drug tests administered as 
                described in paragraph (2).
                    (B) Second disqualification or dismissal.--
                If the individual reapplies to participate in 
                such training services and fails a drug test 
                administered under paragraph (2) by the 
                eligible provider, while the individual is an 
                applicant or a participant, the eligible 
                provider shall disqualify the individual from 
                eligibility for, or dismiss the individual from 
                participation in, such training services. The 
                individual shall not be eligible to reapply for 
                participation in such training services for 2 
                years after such disqualification or dismissal.
            (6) Appeal.--A decision by an eligible provider to 
        disqualify an individual from eligibility for 
        participation in such training services under paragraph 
        (3) or (5), or to dismiss a participant as described in 
        paragraph (4) or (5), shall be subject to expeditious 
        appeal in accordance with procedures established by the 
        State in which the eligible provider is located.
            (7) National uniform guidelines.--
                    (A) In general.--The Secretary of Labor 
                shall develop voluntary guidelines to assist 
                eligible providers concerning the drug testing 
                required under this subsection.
                    (B) Privacy.--The guidelines shall promote, 
                to the maximum extent practicable, individual 
                privacy in the collection of specimen samples 
                for such drug testing.
                    (C) Laboratories and procedures.--With 
                respect to standards concerning laboratories 
                and procedures for such drug testing, the 
                guidelines shall incorporate the Mandatory 
                Guidelines for Federal Workplace Drug Testing 
                Programs, 53 Fed. Reg. 11970 (1988) (or a 
                successor to such guidelines), including the 
                portion of the mandatory guidelines that--
                            (i) establishes comprehensive 
                        standards for all aspects of laboratory 
                        drug testing and laboratory procedures, 
                        including standards that require the 
                        use of the best available technology 
                        for ensuring the full reliability and 
                        accuracy of drug tests and strict 
                        procedures governing the chain of 
                        custody of specimen samples;
                            (ii) establishes the minimum list 
                        of drugs for which individuals may be 
                        tested; and
                            (iii) establishes appropriate 
                        standards and procedures for periodic 
                        review of laboratories and criteria for 
                        certification and revocation of 
                        certification of laboratories to 
                        perform such drug testing.
                    (D) Screening and confirmation.--The 
                guidelines described in subparagraph (A) shall 
                provide that, for drug testing conducted under 
                this subsection--
                            (i) each laboratory involved in the 
                        drug testing of any individual shall 
                        have the capability and facility, at 
                        such laboratory, of performing 
                        screening and confirmation tests;
                            (ii) all tests that indicate the 
                        use, in violation of law (including 
                        Federal regulation) of a drug by the 
                        individual shall be confirmed by a 
                        scientifically recognized method of 
                        testing capable of providing 
                        quantitative data regarding the drug;
                            (iii) each specimen sample shall be 
                        subdivided, secured, and labeled in the 
                        presence of the individual; and
                            (iv) a portion of each specimen 
                        sample shall be retained in a secure 
                        manner to prevent the possibility of 
                        tampering, so that if the confirmation 
                        test results are positive the 
                        individual has an opportunity to have 
                        the retained portion assayed by a 
                        confirmation test done independently at 
                        a second certified laboratory, if the 
                        individual requests the independent 
                        test not later than 3 days after being 
                        advised of the results of the first 
                        confirmation test.
                    (E) Confidentiality.--The guidelines shall 
                provide for the confidentiality of the test 
                results and medical information (other than 
                information relating to a drug) of the 
                individuals tested under this subsection, 
                except that the provisions of this subparagraph 
                shall not preclude the use of test results for 
                the orderly imposition of appropriate sanctions 
                under this subsection.
                    (F) Selection for random tests.--The 
                guidelines shall ensure that individuals who 
                apply to participate in the training services 
                described in paragraph (2) are selected for 
                drug testing on a random basis, using 
                nondiscriminatory and impartial methods.
            (8) Nonliability of local boards.--A local board, 
        and the individual members of a local board, shall be 
        immune from civil liability with respect to any claim 
        based in whole or part on activities carried out to 
        implement this subsection.
            (9) Reporting requirements.--An eligible provider 
        shall make records of drug testing conducted under this 
        subsection available for inspection by other eligible 
        providers, including eligible providers in other local 
        workforce development areas, for the sole purpose of 
        enabling the providers to determine the eligibility 
        status of an applicant pursuant to this subsection.
            (10) Use of drug tests.--No Federal, State, or 
        local prosecutor may use drug test results obtained 
        under this subsection in a criminal action.
            (11) Definitions.--As used in this subsection:
                    (A) Drug.--The term ``drug'' means a 
                controlled substance, as defined in section 
                102(6) of the Controlled Substances Act (21 
                U.S.C. 802(6)).
                    (B) Drug test.--The term ``drug test'' 
                means a biochemical drug test carried out by a 
                facility that is approved by the eligible 
                provider administering the test.
                    (C) Random basis.--For purposes of the 
                application of this subsection in a State, the 
                term ``random basis'' has the meaning 
                determined by the Governor of the State, in the 
                sole discretion of the Governor.
    (e) Supportive Services.--Supportive services may be 
provided with funds provided through the allotment described in 
section 102 only to the extent that such services are not 
available through alternative funding sources specifically 
designated for such services.
    (f) Special Rule for Criminal Offenders.--Notwithstanding 
subtitle B and this subtitle, a portion of the funds made 
available under subtitle A may be distributed to 1 or more 
State corrections agencies to enable the State corrections 
agencies to carry out any activity described in this subtitle 
for juvenile and adult criminal offenders in correctional 
institutions in the State, including correctional institutions 
operated by local authorities.
    (g) Sense of the Congress.--It is the sense of the Congress 
that, to the greatest extent practicable, all equipment and 
products purchased with funds made available under this title 
should be made in the United States.

                    Subtitle D--National Activities

SEC. 131. COORDINATION PROVISIONS.

    (a) Collaborative Administration.--The Secretary of Labor 
and the Secretary of Education (referred to in this section as 
``the Secretaries'') shall enter into an interagency agreement 
to administer the provisions of this title (other than sections 
103(d), 113, 114, 126(a), 126(b), 138, and 139 (referred to in 
this section as the ``excluded provisions'')).
    (b) Responsibilities of Secretaries.--Such agreement shall 
specify the manner in which the Secretaries shall administer 
this title (other than the excluded provisions), including--
            (1) making allotment determinations under section 
        102;
            (2) reviewing State plans submitted in accordance 
        with section 104;
            (3) carrying out the duties assigned to the 
        Secretaries under section 106;
            (4)(A) establishing uniform procedures, including 
        grantmaking procedures; and
            (B) issuing uniform guidelines and regulations, 
        subject to subsection (e);
            (5) carrying out the duties assigned to the 
        Secretaries under this subtitle (other than sections 
        138 and 139);
            (6) preparing and submitting to the Committee on 
        Economic and Educational Opportunities of the House of 
        Representatives and the Committee on Labor and Human 
        Resources of the Senate an annual report on the 
        absolute and relative performance of States in reaching 
        State benchmarks; and
            (7) reviewing federally funded education, 
        employment, and job training programs, other than 
        activities authorized under this title, and submitting 
        recommendations to the Committees described in 
        paragraph (6) regarding the integration of such 
        programs into the statewide systems.
    (c) Contents.--The interagency agreement shall include, at 
a minimum--
            (1) a description of the methods the Secretaries 
        will use to work together to carry out their duties and 
        responsibilities under this title in a manner that will 
        ensure that neither the Department of Labor nor the 
        Department of Education duplicates the work of the 
        other department; and
            (2) a description of the manner in which the 
        Secretaries will utilize personnel and other resources 
        of the Department of Labor and the Department of 
        Education to administer this title (other than the 
        excluded provisions).
    (d) Administration of the Act.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Secretaries shall 
        prepare and submit to the President, the Committee on 
        Economic and Educational Opportunities of the House of 
        Representatives, and the Committee on Labor and Human 
        Resources of the Senate, the interagency agreement. 
        Such agreement shall also be available to the public 
        through publication in the Federal Register.
            (2) Approval.--Not later than 200 days after the 
        date of enactment of this Act, the President shall--
                    (A) approve or disapprove the interagency 
                agreement made by the Secretaries; and
                    (B) if the agreement is disapproved, make 
                recommendations to the Secretaries with respect 
                to an alternative plan and require the 
                Secretaries to submit such a plan in accordance 
                with this section not later than 30 days after 
                the date of the disapproval.
    (e) Limitation on Federal Regulations.--The Secretary of 
Labor or the Secretary of Education may issue regulations under 
this title only to the extent necessary to administer and 
ensure compliance with the specific requirements of this title.
    (f) Effect on Personnel.--
            (1) In general.--The Secretaries shall take such 
        actions as may be necessary, including reduction in 
        force actions, consistent with sections 3502 and 3595 
        of title 5, United States Code, to ensure that the 
        positions of personnel that relate to a covered 
        activity and are not otherwise minimally necessary to 
        carry out this Act are terminated.
            (2) Scope.--
                    (A) Initial reductions.--Not later than 
                July 1, 1998, the Secretaries shall take the 
                actions described in paragraph (1), including 
                reduction in force actions, with respect to not 
                less than \1/3\ of the number of positions of 
                personnel that relate to a covered activity.
                    (B) Subsequent reductions.--Not later than 
                July 1, 2003, the Secretaries shall take the 
                actions described in paragraph (1)--
                            (i) with respect to not less than 
                        60 percent of the number of positions 
                        of personnel that relate to a covered 
                        activity, unless the Secretaries submit 
                        (prior to July 1, 2003) a report to 
                        Congress demonstrating why such actions 
                        have not occurred; or
                            (ii) with respect to not less than 
                        40 percent of the number of positions 
                        of personnel that relate to a covered 
                        activity, if the Secretaries submit the 
                        report referred to in clause (i).
                    (C) Calculation.--For purposes of 
                calculating, under this paragraph, the number 
                of positions of personnel that relate to a 
                covered activity, such number shall include the 
                number of positions of personnel that are 
                terminated under paragraph (1).

SEC. 132. INCENTIVE GRANTS AND SANCTIONS.

    (a) Incentive Grants.--
            (1) Award of grants.--From amounts reserved under 
        section 151(b)(5) for any fiscal year, the Secretaries 
        may award incentive grants to States, each of which 
        shall be awarded for not more than $15,000,000 per 
        fiscal year to a State that--
                    (A)(i) reaches or exceeds, during the most 
                recent 12-month period for which data are 
                available, State benchmarks required under 
                section 106(b), including the benchmarks 
                required under section 106(b)(3); or
                    (ii) demonstrates continuing progress 
                toward reaching or exceeding, during the 3-year 
                period covered by the State plan submitted 
                under section 104, the benchmarks described in 
                clause (i);
                    (B) obtains an eligibility determination 
                described in paragraph (2)(A) for such 
                benchmarks; and
                    (C) demonstrates, in the State plan 
                information submitted under section 
                104(b)(1)(B)(ii), that the Governor and 
                eligible agencies have agreed on all elements 
                of the State plan.
            (2) Eligibility determinations.--
                    (A) Initial determinations.--
                            (i) Determination.--Not later than 
                        30 days after receipt of the State plan 
                        submitted under section 104, the 
                        Secretaries shall--
                                    (I) compare the proposed 
                                State benchmarks identified in 
                                the State plan with State 
                                benchmarks proposed in other 
                                State plans; and
                                    (II) determine if the 
                                proposed State benchmarks, 
                                taken as a whole, are 
                                sufficient to make the State 
                                eligible to qualify for an 
                                incentive grant under this 
                                subsection, if the State meets 
                                the requirements of 
                                subparagraphs (A) and (C) of 
                                paragraph (1).
                            (ii) Notification, revision, and 
                        technical assistance.--If the 
                        Secretaries determine that a State is 
                        not eligible to qualify for an 
                        incentive grant pursuant to clause 
                        (i)(II), the Secretaries shall provide, 
                        upon request, technical assistance to 
                        the State regarding the necessary 
                        action to be taken to make the State 
                        eligible to qualify for such grant 
                        under this subsection. Such State shall 
                        have 30 days after the date on which 
                        the State receives notification of 
                        ineligibility or the date on which the 
                        State receives technical assistance, 
                        whichever is later, to revise the State 
                        benchmarks in order to become eligible 
                        to qualify for an incentive grant under 
                        this subsection, if the State meets the 
                        requirements of subparagraphs (A) and 
                        (C) of paragraph (1).
                    (B) Grant determinations.--Not later than 
                30 days after receipt of an annual report 
                submitted under section 106(c) that contains an 
                application for such an incentive grant from a 
                State that meets the requirements of paragraph 
                (1), the Secretaries shall--
                            (i) compare the progress the State 
                        has made toward reaching or exceeding 
                        the State benchmarks, as described in 
                        such annual report, with the progress 
                        made by the other States towards 
                        reaching or exceeding their State 
                        benchmarks, as described in such annual 
                        reports of the other States; and
                            (ii) determine if the progress the 
                        State has made toward reaching or 
                        exceeding the State benchmarks, taken 
                        as a whole, is sufficient to enable the 
                        State to receive an incentive grant 
                        under this subsection.
            (3) Use of funds.--A State that receives an 
        incentive grant may use funds made available through 
        the grant only to carry out workforce and career 
        development activities. Determinations concerning the 
        distribution of such funds shall be made by the 
        individuals and entities participating in the 
        collaborative process described in subsection (a) or 
        (b) of section 105.
    (b) Sanctions.--
            (1) Finding.--If a State fails to meet the State 
        benchmarks required under section 106(b) for the 3 
        years covered by a State plan described in section 104, 
        the Secretaries shall determine whether the failure is 
        attributable to--
                    (A) employment and training activities;
                    (B) at-risk youth activities;
                    (C) vocational education activities; or
                    (D) adult education and literacy 
                activities.
            (2) Technical assistance or reduction of 
        allotments.--
                    (A) In general.--The Secretaries may--
                            (i) provide technical assistance to 
                        the State to improve the level of 
                        performance of the State; or
                            (ii) on making a determination 
                        described in paragraph (1), reduce, by 
                        not more than 10 percent, the portion 
                        of the allotment made under section 102 
                        for the category of activities to which 
                        the failure is attributable.
                    (B) Portion of the allotment.--For purposes 
                of subparagraph (A), in determining a portion 
                of an allotment for a category of activities, 
                the Secretaries shall include in such portion 
                any funds allocated to such category from the 
                flex account.
            (3) Funds resulting from reduced allotments.--The 
        Secretaries may use an amount retained as a result of a 
        reduction in an allotment made under paragraph 
        (2)(A)(ii) to award an incentive grant under subsection 
        (a).

SEC. 133. NATIONAL EMERGENCY GRANTS.

    (a) In General.--From the amounts reserved under section 
151(b)(5), the Secretary of Labor, in accordance with the 
interagency agreement developed pursuant to section 131, is 
authorized to award national emergency grants, in a timely 
manner--
            (1) to an entity described in subsection (b) to 
        provide employment and training assistance to workers 
        affected by major economic dislocations, such as plant 
        closures, mass layoffs, or closures and realignments of 
        military installations; and
            (2) to provide assistance to the Governor of any 
        State within the boundaries of which is an area that 
        has suffered an emergency or a major disaster as 
        defined in paragraphs (1) and (2), respectively, of 
        section 102 of The Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5122(1) and 
        (2)) (referred to in this section as the ``disaster 
        area'').
    (b) Employment and Training Assistance Requirements.--
            (1) Application.--To be eligible to receive a grant 
        under subsection (a)(1), an entity shall submit an 
        application to the Secretary of Labor at such time, in 
        such manner, and accompanied by such information, as 
        the Secretary may reasonably require.
            (2) Eligible entity.--For purposes of this section, 
        the term ``entity'' means a State, unit of general 
        local government, or public or private local entity, 
        including a for profit or nonprofit entity.
    (c) Disaster Relief Employment Assistance Requirements.--
Funds made available under subsection (a)(2)--
            (1) shall be used exclusively to provide employment 
        on projects that provide food, clothing, shelter, and 
        other humanitarian assistance for disaster victims, and 
        projects regarding demolition, cleaning, repair, 
        renovation, and reconstruction of damaged and destroyed 
        structures, facilities, and lands located within the 
        disaster area; and
            (2) may be expended through public and private 
        agencies and organizations engaged in such projects.

SEC. 134. EVALUATION; RESEARCH, DEMONSTRATIONS, DISSEMINATION, AND 
                    TECHNICAL ASSISTANCE.

    (a) Single Plan.--
            (1) In general.--The Secretaries, as part of the 
        interagency agreement required under section 131, shall 
        develop a single plan for evaluation and assessment, 
        research, demonstrations, dissemination, and technical 
        assistance activities with regard to the activities 
        assisted under this title.
            (2) Plan.--Such plan shall--
                    (A) identify the activities the Secretaries 
                will carry out under this section;
                    (B) describe how such activities will be 
                carried out collaboratively;
                    (C) describe how the Secretaries will 
                evaluate such activities in accordance with 
                subsection (b); and
                    (D) include such other information as the 
                Secretaries determine to be appropriate through 
                the interagency agreement.
    (b) Evaluation and Assessment.--
            (1) In general.--From amounts made available under 
        paragraph (3), the Secretaries shall provide for the 
        conduct of an independent evaluation and assessment of 
        employment and training activities, at-risk youth 
        activities, vocational education activities, and adult 
        education and literacy activities, through studies and 
        analyses conducted independently through grants and 
        contracts awarded on a competitive basis.
            (2) Contents.--Such evaluation and assessment shall 
        include descriptions of--
                    (A) the extent to which State, local, and 
                tribal entities have developed, implemented, or 
                improved the statewide system;
                    (B) the degree to which the expenditures at 
                the Federal, State, local, and tribal levels 
                address improvement in employment and training 
                activities, at-risk youth activities, 
                vocational education activities, and adult 
                education and literacy activities, including 
                the impact of funds provided under this title 
                on the delivery of such activities;
                    (C) the extent to which vocational 
                education activities and at-risk youth 
                activities succeed in preparing individuals 
                participating in such activities for entry into 
                postsecondary education, further learning, or 
                high-skill, high-wage careers;
                    (D) the effect of benchmarks, performance 
                measures, and other measures of accountability 
                on the delivery of employment and training 
                activities, at-risk youth activities, 
                vocational education activities, and adult 
                education and literacy activities, including 
                family literacy services;
                    (E) the extent to which employment and 
                training activities enhance the employment and 
                earnings of participants in such activities, 
                reduce income support costs, improve the 
                employment competencies of such participants, 
                and increase the level of employment of program 
                participants over the level of employment that 
                would have existed in the absence of such 
                activities, which may be evaluated using 
                experimental and control groups chosen by 
                scientific random assignment; and
                    (F) 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.
            (3) Authorization.--There are authorized to be 
        appropriated $15,000,000 for fiscal year 1998 and such 
        sums as may be necessary for each of the fiscal years 
        1999 through 2002 to carry out this subsection.
    (c) Research.--
            (1) In general.--The Secretaries, pursuant to the 
        interagency agreement, shall award grants, on a 
        competitive basis, to an institution of higher 
        education, a public or private organization or agency, 
        or a consortium of such institutions, organizations, or 
        agencies to establish a national research center or 
        centers--
                    (A) to carry out research for the purpose 
                of developing, improving, and identifying the 
                most successful methods and techniques for 
                addressing the education, employment, and 
                training needs of adults;
                    (B) to carry out research for the purpose 
                of developing, improving, and identifying the 
                most successful methods for successfully 
                addressing the education, employment, and 
                training needs of at-risk youth;
                    (C) to carry out research to increase the 
                effectiveness and improve the implementation of 
                vocational education activities, including 
                conducting research and development, and 
                providing technical assistance, with respect 
                to--
                            (i) combining academic, vocational 
                        education, and worksite learning;
                            (ii) identifying ways to establish 
                        effective linkages among employment and 
                        training activities, at-risk youth 
                        activities, and vocational education 
                        activities, at the State and local 
                        levels; and
                            (iii) conducting studies providing 
                        longitudinal information or formative 
                        evaluation with respect to vocational 
                        education activities;
                    (D) to carry out research to increase the 
                effectiveness of and improve the quality of 
                adult education and literacy activities, 
                including family literacy services;
                    (E) to provide technical assistance to 
                State and local recipients of assistance under 
                this title in developing and using benchmarks 
                and performance measures for improvement of 
                workforce and career development activities; 
                and
                    (F) to carry out such other activities as 
                the Secretaries determine to be appropriate to 
                achieve the purposes of this title.
            (2) Summary.--The Secretaries shall provide an 
        annual report summarizing the evaluations and 
        assessments described in subsection (b), and the 
        research conducted pursuant to this subsection, and the 
        findings of such evaluations and assessments, and 
        research, to the Committee on Economic and Educational 
        Opportunities of the House of Representatives and the 
        Committee on Labor and Human Resources of the Senate.
            (3) Authorization.--There are authorized to be 
        appropriated $15,000,000 for fiscal year 1998 and such 
        sums as may be necessary for each of the fiscal years 
        1999 through 2002 to carry out this subsection.
    (d) Demonstrations, Dissemination, and Technical 
Assistance.--
            (1) Authority.--
                    (A) Programs and assistance authorized.--
                The Secretaries, pursuant to the interagency 
                agreement, are authorized to carry out 
                demonstration programs, to replicate model 
                programs, to disseminate best practices 
                information, and to provide technical 
                assistance, for the purposes of developing, 
                improving, and identifying the most successful 
                methods and techniques for providing the 
                activities assisted under this title.
                    (B) Activities.--Such activities may be 
                carried out directly or through grants, 
                contracts, cooperative agreements, or through 
                the national center or centers, and may include 
                projects--
                            (i) conducted jointly with the 
                        Department of Defense to develop 
                        training programs utilizing computer-
                        based and other innovative learning 
                        technologies;
                            (ii) which promote the use of 
                        distance learning--
                                    (I) to enable students to 
                                take courses through the use of 
                                media technology, such as 
                                video, teleconferencing, 
                                computers, or the Internet; and
                                    (II) to deliver continuing 
                                education, skills upgrading and 
                                retraining services, and 
                                postsecondary education, 
                                directly to the community or to 
                                individuals who would not 
                                otherwise have access to such 
                                education and services; and
                            (iii) conducted through 
                        partnerships with national 
                        organizations which have special 
                        expertise in developing, organizing, 
                        and administering employment and 
                        training services for individuals with 
                        disabilities at the national, State, 
                        and local levels.
            (2) Clearinghouse.--The Secretaries shall maintain 
        a clearinghouse, through the national center or 
        centers, that will collect and disseminate to Federal, 
        State, and local organizations, agencies, and service 
        providers data and information, including information 
        on best practices, about the condition of statewide 
        systems and employment and training activities, at-risk 
        youth activities, vocational education activities, and 
        adult education and literacy activities.
            (3) Technical assistance.--The Secretaries shall 
        provide technical assistance to States and local areas 
        to enhance the capacity of such States and local areas 
        to develop and deliver effective activities under this 
        title.
            (4) Authorization.--There are authorized to be 
        appropriated $30,000,000 for fiscal year 1998 and such 
        sums as may be necessary for each of fiscal years 1999 
        through 2002 to carry out this subsection.
    (e) Transition Period.--Notwithstanding any other provision 
of law, the Secretaries may use funds made available under 
section 404 of the Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2404) to prepare, during 
the period beginning on January 1, 1998, and ending June 30, 
1998, to award a grant under subsection (c) on July 1, 1998.
    (f) Definition.--As used in this section, 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)).
    (g) Conforming Amendments.--Section 404(a)(2) of the Carl 
D. Perkins Vocational and Applied Technology Education Act (20 
U.S.C. 2404(a)(2)) is amended--
            (1) in subparagraph (A), by striking ``for a period 
        of 5 years'' and inserting ``until June 30, 1998''; and
            (2) in the first sentence of subparagraph (B), by 
        striking ``5''.
    (h) Effective Date.--
            (1) In general.--Except as provided in paragraphs 
        (2) and (3), this section shall take effect on July 1, 
        1998.
            (2) Transition provisions.--Subsection (e) shall 
        take effect on January 1, 1998.
            (3) Amendments.--The amendments made by subsection 
        (g) shall take effect on the date of enactment of this 
        Act.

SEC. 135. MIGRANT AND SEASONAL FARMWORKER PROGRAM.

    (a) In General.--From amounts reserved under section 
151(b)(2), the Secretaries shall make grants to, or enter into 
contracts with, eligible entities to carry out the activities 
described in subsection (d).
    (b) Eligible Entities.--To be eligible to receive a grant 
or enter into a contract under this section, an entity shall 
have an understanding of the problems of migrant farmworkers or 
seasonal farmworkers, a familiarity with the area to be served, 
and the ability to demonstrate a capacity to administer 
effectively a diversified program of workforce and career 
development activities for migrant farmworkers or seasonal 
farmworkers, respectively.
    (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 
        Secretaries a plan that describes a 3-year strategy for 
        meeting the needs of migrant farmworkers or seasonal 
        farmworkers, and the dependents of such 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 individuals 
                served to obtain or be retained in unsubsidized 
                employment;
                    (B) describe the services to be provided 
                and the manner in which such services are to be 
                integrated with other appropriate services; and
                    (C) describe the goals and benchmarks to be 
                used to assess the performance of such entity 
                in carrying out the activities assisted under 
                this section.
    (d) Authorized Activities.--Funds made available under this 
section shall be used to carry out comprehensive workforce and 
career development activities and related services for migrant 
farmworkers or seasonal farmworkers which may include 
employment, training, educational assistance, literacy 
assistance, an English literacy program, worker safety 
training, housing, supportive services, and the continuation of 
the case management database on participating migrant 
farmworkers or seasonal farmworkers.
    (e) Consultation With Governors and Local Boards.--In 
making grants and entering into contracts under this section, 
the Secretaries shall consult with the Governors and local 
boards of the States in which the eligible entities will carry 
out the activities described in subsection (d).
    (f) Regulations.--The Secretaries shall consult with 
migrant and seasonal farmworker groups and States in 
establishing regulations to carry out this section, including 
performance standards for eligible entities which take into 
account the economic circumstances of migrant farmworkers and 
seasonal farmworkers.
    (g) Definitions.--As used in this section:
            (1) Migrant farmworker.--The term ``migrant 
        farmworker'' means a seasonal farmworker whose farm 
        work requires travel such that the worker is unable to 
        return to a permanent place of residence within the 
        same day.
            (2) Seasonal farmworker.--The term ``seasonal 
        farmworker'' means a person who during the eligibility 
        determination period (12 consecutive months out of 24 
        months prior to application) has been primarily 
        employed in farm work that is characterized by chronic 
        unemployment or under employment.

SEC. 136. NATIVE AMERICAN PROGRAM.

    (a) Purpose and Policy.--
            (1) Purpose.--The purpose of this section is to 
        support workforce and career development activities for 
        Indian 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 and Native Hawaiian 
                communities in accordance with the goals and 
                values of such communities.
            (2)  Indian policy.--All programs assisted under 
        this section shall be administered in a manner 
        consistent with the principles of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450 et seq.) and the government-to-government 
        relationship between the Federal Government and Indian 
        tribal governments.
    (b) Definitions.--As used in this section:
            (1) Alaska native.--The term ``Alaska Native'' 
        means a Native as such term is defined in section 3(b) 
        of the Alaska Native Claims Settlement Act (43 U.S.C. 
        1602(b)).
            (2) Indian, indian tribe, and tribal 
        organization.--The terms ``Indian'', ``Indian tribe'', 
        and ``tribal organization'' have the meanings given 
        such terms in subsections (d), (e), and (l), 
        respectively, of section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450b).
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given such term in section 1201(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1141(a)).
            (4) 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).
            (5) Tribally controlled community college.--The 
        term ``tribally controlled community college'' has the 
        meaning given such term in section 2(a)(4) of the 
        Tribally Controlled Community College Assistance Act of 
        1978 (25 U.S.C. 1801(a)(4)).
            (6) Tribally controlled postsecondary vocational 
        institution.--The term ``tribally controlled 
        postsecondary vocational institution'' means an 
        institution of higher education that--
                    (A) is formally controlled, or has been 
                formally sanctioned or chartered, by the 
                governing body of an Indian tribe or Indian 
                tribes;
                    (B) offers a technical degree or 
                certificate granting program;
                    (C) is governed by a board of directors or 
                trustees, a majority of whom are Indians;
                    (D) demonstrates adherence to stated goals, 
                a philosophy, or a plan of operation, that 
                fosters individual Indian economic and self-
                sufficiency opportunity, including programs 
                that are appropriate to stated tribal goals of 
                developing individual entrepreneurships and 
                self-sustaining economic infrastructures on 
                reservations;
                    (E) has been in operation for at least 3 
                years;
                    (F) holds accreditation with or is a 
                candidate for accreditation by a nationally 
                recognized accrediting authority for 
                postsecondary vocational education; and
                    (G) enrolls the full-time equivalent of not 
                fewer than 100 students, of whom a majority are 
                Indians.
    (c) Program Authorized.--
            (1) In general.--From amounts reserved under 
        section 151(b)(3), the Secretaries shall make grants 
        to, or enter into contracts or cooperative agreements 
        with, Indian tribes, tribal organizations, Alaska 
        Native entities, tribally controlled community 
        colleges, tribally controlled postsecondary vocational 
        institutions, Indian-controlled organizations serving 
        Indians, or Native Hawaiian organizations to carry out 
        the authorized activities described in subsection (d).
            (2) Transfer of authority for vocational education 
        activities.--In carrying out paragraph (1), the 
        Secretaries may agree that the Secretary of Education 
        may provide any portion of assistance under paragraph 
        (1) devoted to vocational education activities, 
        including assistance provided to entities described in 
        paragraph (1) that are not eligible for funding 
        pursuant to the Tribally Controlled Community College 
        Assistance Act of 1978 (25 U.S.C. 1801 et seq.).
            (3) Special authority relating to secondary schools 
        operated or supported by the bureau of indian 
        affairs.--An Indian tribe, a tribal organization, or an 
        Alaska Native entity, that receives funds through a 
        grant made or contract entered into under paragraph (1) 
        may use the funds to provide assistance to a secondary 
        school operated or supported by the Bureau of Indian 
        Affairs to enable such school to carry out vocational 
        education activities.
    (d) Authorized Activities.--
            (1) In general.--Funds made available under this 
        section shall be used to carry out the activities 
        described in paragraphs (2) and (3) that--
                    (A) are consistent with this section; and
                    (B) are necessary to meet the needs of 
                Indians or Native Hawaiians preparing to enter, 
                reenter, or retain unsubsidized employment.
            (2) Workforce and career development activities and 
        supplemental services.--
                    (A) In general.--Funds made available under 
                this section shall be used for--
                            (i) comprehensive workforce and 
                        career development activities for 
                        Indians or Native Hawaiians; or
                            (ii) supplemental services for 
                        Indian or Native Hawaiian youth on or 
                        near Indian reservations and in 
                        Oklahoma, Alaska, or Hawaii.
                    (B) Special rule.--Notwithstanding any 
                other provision of this section, individuals 
                who were eligible to participate in programs 
                under section 401 of the Job Training 
                Partnership Act (29 U.S.C. 1671) (as such 
                section was in effect on the day before the 
                date of enactment of this Act) shall be 
                eligible to participate in an activity assisted 
                under subparagraph (A)(i).
            (3) Vocational education activities and adult 
        education and literacy activities.--Funds made 
        available under this section shall be used for--
                    (A) vocational education activities and 
                adult education and literacy activities 
                conducted by entities described in subsection 
                (c); or
                    (B) the support of tribally controlled 
                postsecondary vocational institutions in order 
                to ensure continuing and expanded educational 
                opportunities for Indian students.
    (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 
Secretaries a plan that describes a 3-year strategy for meeting 
the needs of Indian or Native Hawaiian individuals, as 
appropriate, in the area served by such entity. Such plan--
            (1) shall be consistent with the purposes of this 
        section;
            (2) shall identify the population to be served;
            (3) shall identify the education and employment 
        needs of the population to be served and the manner in 
        which the services to be provided will strengthen the 
        ability of the individuals served to obtain or retain 
        unsubsidized employment;
            (4) shall describe the services to be provided and 
        the manner in which such services are to be integrated 
        with other appropriate services; and
            (5) shall describe the goals and benchmarks to be 
        used to assess the performance of entities in carrying 
        out the activities assisted under this section.
    (f) Consolidation of Funds.--Each entity receiving 
assistance under this section may consolidate such assistance 
with assistance received from related programs in accordance 
with the provisions of the Indian Employment, Training and 
Related Services Demonstration Act of 1992 (25 U.S.C 3401 et 
seq.).
    (g) Nonduplicative and Nonexclusive Services.--Nothing in 
this section shall be construed--
            (1) to limit the eligibility of any entity 
        described in subsection (c) to participate in any 
        activity offered by a State or local entity under this 
        title; 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 
        Secretaries shall designate a single organizational 
        unit that shall have as the unit's primary 
        responsibility the administration of the activities 
        authorized in this section.
            (2) Regulations.--The Secretaries shall consult 
        with the entities described in subsection (c)--
                    (A) in establishing regulations to carry 
                out this section, including performance 
                standards for entities receiving assistance 
                under this section, that take into account the 
                economic circumstances of such entities; and
                    (B) in developing a funding distribution 
                plan that takes into consideration previous 
                levels of funding, and sources of funds not 
                provided pursuant to this title.
            (3) Technical assistance.--The Secretaries, through 
        the unit established under paragraph (1), are 
        authorized to provide technical assistance to entities 
        described in subsection (c) that receive assistance 
        under this section to enable such entities to improve 
        the workforce and career development activities 
        provided by such entities.

SEC. 137. GRANTS TO OUTLYING AREAS.

    (a) Applicability of Title to Outlying Areas.--The 
provisions of this title (other than this section) shall apply 
to each outlying area to the extent practicable in the same 
manner and to the same extent as the provisions apply to a 
State.
    (b) Allotment.--
            (1) In general.--For each program year the 
        Secretaries shall allot funds in accordance with 
        paragraph (2) for each outlying area that meets the 
        applicable requirements of this title to enable the 
        outlying area to carry out workforce and career 
        development activities.
            (2) Population data.--Except as provided in 
        subsection (c), from the amount reserved under section 
        151(b)(4), the Secretaries shall allot for each 
        outlying area an amount that bears the same 
        relationship to such funds as the total number of 
        individuals who are not less than age 15 but not more 
        than age 65 (as determined by the Secretaries using the 
        most recent census data prior to the program year for 
        which the allotment is made) in the outlying area bears 
        to the total number of such individuals in all outlying 
        areas.
    (c) Grant Awards.--
            (1) United states territories.--The Secretaries 
        shall award grants from allotments under subsection (b) 
        to Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and the United States Virgin 
        Islands.
            (2) Limitation for freely associated states.--
                    (A) Competitive grants.--Using funds 
                allotted for the Republic of the Marshall 
                Islands, the Federated States of Micronesia, 
                and the Republic of Palau under subsection (b), 
                the Secretaries 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 workforce and career development 
                activities.
                    (B) Award basis.--The Secretaries shall 
                award grants pursuant to subparagraph (A) on a 
                competitive basis and pursuant to 
                recommendations from the Pacific Region 
                Educational Laboratory in Honolulu, Hawaii.
                    (C) 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 
                paragraph for any program year that begins 
                after September 30, 2001.
                    (D) Administrative costs.--The Secretaries 
                may provide not more than 5 percent of the 
                amount made available for grants under this 
                paragraph to pay the administrative costs of 
                the Pacific Region Educational Laboratory 
                regarding activities assisted under this 
                section.

SEC. 138. NATIONAL INSTITUTE FOR LITERACY.

    (a) Establishment.--
            (1) In general.--There is established the National 
        Institute for Literacy (in this section referred to as 
        the ``Institute''). The Institute shall be administered 
        under the terms of an interagency agreement entered 
        into by the Secretary of Education with the Secretary 
        of Labor and the Secretary of Health and Human Services 
        (in this section referred to as the ``Interagency 
        Group''). The Interagency Group may include in the 
        Institute any research and development center, 
        institute, or clearinghouse established within the 
        Department of Education, the Department of Labor, or 
        the Department of Health and Human Services whose 
        purpose is determined by the Interagency Group to be 
        related to the purpose of the Institute.
            (2) Offices.--The Institute shall have offices 
        separate from the offices of the Department of 
        Education, the Department of Labor, and the Department 
        of Health and Human Services.
            (3) Board recommendations.--The Interagency Group 
        shall consider the recommendations of the National 
        Institute for Literacy Advisory Board (in this section 
        referred to as the ``Board'') established under 
        subsection (d) in planning the goals of the Institute 
        and in the implementation of any programs to achieve 
        such goals.
            (4) Daily operations.--The daily operations of the 
        Institute shall be carried out by the Director of the 
        Institute appointed under subsection (g).
    (b) Duties.--
            (1) In general.--The Institute shall improve the 
        quality and accountability of the adult basic skills 
        and literacy delivery system by--
                    (A) providing national leadership for the 
                improvement and expansion of the system for 
                delivery of literacy services;
                    (B) coordinating the delivery of such 
                services across Federal agencies;
                    (C) identifying effective models of basic 
                skills and literacy education for adults and 
                families that are essential to success in job 
                training, work, the family, and the community;
                    (D) supporting the creation of new methods 
                of offering improved literacy services;
                    (E) funding a network of State or regional 
                adult literacy resource centers to assist State 
                and local public and private nonprofit efforts 
                to improve literacy by--
                            (i) encouraging the coordination of 
                        literacy services;
                            (ii) carrying out evaluations of 
                        the effectiveness of adult education 
                        and literacy activities;
                            (iii) enhancing the capacity of 
                        State and local organizations to 
                        provide literacy services; and
                            (iv) serving as a reciprocal link 
                        between the Institute and providers of 
                        workforce and career development 
                        activities for the purpose of sharing 
                        information, data, research, expertise, 
                        and literacy resources;
                    (F) supporting the development of models at 
                the State and local level of accountability 
                systems that consist of goals, performance 
                measures, benchmarks, and assessments that can 
                be used to improve the quality of adult 
                education and literacy activities;
                    (G) providing technical assistance, 
                information, and other program improvement 
                activities to national, State, and local 
                organizations, such as--
                            (i) providing information and 
                        training to local boards and one-stop 
                        career centers concerning how literacy 
                        and basic skills services can be 
                        incorporated in a coordinated workforce 
                        development model;
                            (ii) improving the capacity of 
                        national, State, and local public and 
                        private organizations that provide 
                        literacy and basic skills services, 
                        professional development, and technical 
                        assistance, such as the State or 
                        regional adult literacy resource 
                        centers referred to in subparagraph 
                        (E); and
                            (iii) establishing a national 
                        literacy electronic database and 
                        communications network;
                    (H) working with the Interagency Group, 
                Federal agencies, and the Congress to ensure 
                that such Group, agencies, and the Congress 
                have the best information available on literacy 
                and basic skills programs in formulating 
                Federal policy with respect to the issues of 
                literacy, basic skills, and workforce and 
                career development; and
                    (I) assisting with the development of 
                policy with respect to literacy and basic 
                skills.
            (2) Grants, contracts, and agreements.--The 
        Institute may make grants to, or enter into contracts 
        or cooperative agreements with, individuals, public or 
        private institutions, agencies, organizations, or 
        consortia of such institutions, agencies, or 
        organizations to carry out the activities of the 
        Institute. Such grants, contracts, or agreements shall 
        be subject to the laws and regulations that generally 
        apply to grants, contracts, or agreements entered into 
        by Federal agencies.
    (c) Literacy Leadership.--
            (1) Fellowships.--The Institute, in consultation 
        with the Board, may award fellowships, with such 
        stipends and allowances as the Director considers 
        necessary, to outstanding individuals pursuing careers 
        in adult education or literacy in the areas of 
        instruction, management, research, or innovation.
            (2) Use of fellowships.--Fellowships awarded under 
        this subsection shall be used, under the auspices of 
        the Institute, to engage in research, education, 
        training, technical assistance, or other activities to 
        advance the field of adult education or literacy, 
        including the training of volunteer literacy providers 
        at the national, State, or local level.
            (3) Interns and volunteers.--The Institute, in 
        consultation with the Board, may award paid and unpaid 
        internships to individuals seeking to assist the 
        Institute in carrying out its mission. Notwithstanding 
        section 1342 of title 31, United States Code, the 
        Institute may accept and use voluntary and 
        uncompensated services as the Institute determines 
        necessary.
    (d) National Institute for Literacy Advisory Board.--
            (1) Establishment.--
                    (A) In general.--There is established a 
                National Institute for Literacy Advisory Board. 
                The Board shall consist of 10 individuals 
                appointed by the President, with the advice and 
                consent of the Senate, from individuals who--
                            (i) are not otherwise officers or 
                        employees of the Federal Government; 
                        and
                            (ii) are representative of entities 
                        or groups described in subparagraph 
                        (B).
                    (B) Entities or groups described.--The 
                entities or groups referred to in subparagraph 
                (A) are--
                            (i) literacy organizations and 
                        providers of literacy services, 
                        including--
                                    (I) nonprofit providers of 
                                literacy services;
                                    (II) providers of programs 
                                and services involving English 
                                language instruction; and
                                    (III) providers of services 
                                receiving assistance under this 
                                title;
                            (ii) businesses that have 
                        demonstrated interest in literacy 
                        programs;
                            (iii) literacy students;
                            (iv) experts in the area of 
                        literacy research;
                            (v) State and local governments; 
                        and
                            (vi) representatives of employees.
            (2) Duties.--The Board--
                    (A) shall make recommendations concerning 
                the appointment of the Director and staff of 
                the Institute;
                    (B) shall provide independent advice on the 
                operation of the Institute; and
                    (C) shall receive reports from the 
                Interagency Group and the Director.
            (3) Federal advisory committee act.--Except as 
        otherwise provided, the Board established by this 
        subsection shall be subject to the provisions of the 
        Federal Advisory Committee Act (5 U.S.C. App.).
            (4) Terms.--
                    (A) In general.--Each member of the Board 
                shall be appointed for a term of 3 years, 
                except that the initial terms for members may 
                be 1, 2, or 3 years in order to establish a 
                rotation in which \1/3\ of the members are 
                selected each year. Any such member may be 
                appointed for not more than 2 consecutive 
                terms.
                    (B) Vacancy appointments.--Any member 
                appointed to fill a vacancy occurring before 
                the expiration of the term for which the 
                member's predecessor was appointed shall be 
                appointed only for the remainder of that term. 
                A member may serve after the expiration of that 
                member's term until a successor has taken 
                office. A vacancy in the Board shall be filled 
                in the manner in which the original appointment 
                was made. A vacancy in the Board shall not 
                affect the powers of the Board.
            (5) Quorum.--A majority of the members of the Board 
        shall constitute a quorum but a lesser number may hold 
        hearings. Any recommendation of the Board may be passed 
        only by a majority of the Board's members present.
            (6) Election of officers.--The Chairperson and Vice 
        Chairperson of the Board shall be elected by the 
        members of the Board. The term of office of the 
        Chairperson and Vice Chairperson shall be 2 years.
            (7) Meetings.--The Board shall meet at the call of 
        the Chairperson or a majority of the members of the 
        Board.
    (e) Gifts, Bequests, and Devises.--The Institute may 
accept, administer, and use gifts or donations of services, 
money, or property, both real and personal.
    (f) Mails.--The Board and the Institute may use the United 
States mails in the same manner and under the same conditions 
as other departments and agencies of the Federal Government.
    (g) Director.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the 
pay of a Director.
    (h) Applicability of Certain Civil Service Laws.--The 
Director and staff of the Institute may be appointed without 
regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and may be 
paid without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of that title relating to 
classification and General Schedule pay rates, except that an 
individual so appointed may not receive pay in excess of the 
maximum rate payable under section 5376 of title 5, United 
States Code.
    (i) Experts and Consultants.--The Board and the Institute 
may procure temporary and intermittent services under section 
3109(b) of title 5, United States Code.
    (j) Report.--The Institute shall submit a report biennially 
to the Committee on Economic and Educational Opportunities 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 two fiscal years will 
        facilitate achievement of the goals of the Institute 
        and the goals of the literacy programs within the 
        Department of Education, the Department of Labor, and 
        the Department of Health and Human Services; and
            (3) any additional minority, or dissenting views 
        submitted by members of the Board.
    (k) Funding.--Any amounts appropriated to the Secretary of 
Education, the Secretary of Labor, or the Secretary of Health 
and Human Services for purposes that the Institute is 
authorized to perform under this section may be provided to the 
Institute for such purposes.
    (l) Authorization of Appropriations.--There are authorized 
to be appropriated $10,000,000 for fiscal year 1997 and such 
sums as may be necessary for each of the fiscal years 1998 
through 2002 to carry out this section.

SEC. 139. LABOR MARKET INFORMATION.

    (a) System Content.--
            (1) In general.--The Secretary of Labor, in 
        accordance with the provisions of this section, shall 
        oversee the maintenance and continuous improvement of 
        the system of labor market information that includes--
                    (A) statistical programs of data 
                collection, compilation, estimation, and 
                publication conducted in cooperation with the 
                Bureau of Labor Statistics;
                    (B) State and local employment information, 
                including other appropriate statistical data 
                related to labor market dynamics (compiled by 
                and for States and localities with technical 
                assistance provided by the Secretary) that 
                will--
                            (i) assist individuals to make 
                        informed choices relating to employment 
                        and training; and
                            (ii) assist employers to locate and 
                        train individuals who are seeking 
                        employment and training;
                    (C) technical standards 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) analysis of data and information 
                described in subparagraphs (A) and (B) for uses 
                such as State and local policymaking;
                    (E) wide dissemination of such data, 
                information, and analysis, training for users 
                of the data, information, and analysis, and 
                voluntary technical standards for dissemination 
                mechanisms; and
                    (F) programs of--
                            (i) research and demonstration; and
                            (ii) technical assistance for 
                        States and localities.
            (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 the information furnished 
                        under the provisions of this section 
                        for any purpose other than the 
                        statistical purposes for which such 
                        information is furnished;
                            (ii) make any publication from 
                        which the data contained in the 
                        information so furnished under this 
                        section can be used to identify any 
                        individual; or
                            (iii) permit any individual other 
                        than the sworn officers, employees, or 
                        agents of any Federal department or 
                        agency to examine individual reports 
                        through which the information is 
                        furnished.
                    (B) Immunity from legal process.--
                            (i) In general.--Any information 
                        that is collected and retained for 
                        purposes of this section shall be 
                        immune from the legal process and shall 
                        not, without the consent of the 
                        individual concerned, be admitted as 
                        evidence or used for any purpose in any 
                        action, suit, or other judicial or 
                        administrative proceeding.
                            (ii) Rule of construction.--Nothing 
                        in this subparagraph shall be construed 
                        as providing immunity from the legal 
                        process for information that is 
                        independently collected or produced for 
                        purposes other than for purposes of 
                        this section.
    (b) System Responsibilities.--
            (1) In general.--The labor market information 
        system shall be planned, administered, overseen, and 
        evaluated through a cooperative governance structure 
        involving the Federal Government, States, and local 
        entities.
            (2) Duties.--The Secretary, with respect to data 
        collection, analysis, and dissemination of labor market 
        information for the system, shall carry out the 
        following duties:
                    (A) Assign responsibilities within the 
                Department of Labor for elements of the system 
                content described in subsection (a) to ensure 
                that all statistical and administrative data 
                collected is consistent.
                    (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 States and 
                the Bureau of Labor Statistics, develop and 
                maintain the necessary elements of the system 
                described in subsection (a), including the 
                development of consistent definitions for use 
                by the States in collecting the data and 
                information described in subparagraphs (A) and 
                (B) of subsection (a)(1) and the development of 
                the annual plan under subsection (c).
    (c) Annual Plan.--
            (1) In general.--The Secretary, in collaboration 
        with the States and the Bureau of Labor Statistics, and 
        with the assistance of other appropriate Federal 
        agencies, shall prepare an annual plan that shall 
        describe the cooperative Federal-State governance 
        structure for the labor market information system. The 
        plan shall--
                    (A) describe the elements of the system, 
                including consistent definitions, formats, 
                collection methodologies, and other necessary 
                system elements, for use in collecting the data 
                and information described in subparagraphs (A) 
                and (B) of subsection (a)(1);
                    (B) describe how the system will ensure 
                that--
                            (i) such data are timely;
                            (ii) administrative records are 
                        consistent in order to facilitate 
                        aggregation of such data;
                            (iii) paperwork and reporting are 
                        reduced to a minimum; and
                            (iv) States and localities are 
                        fully involved in the maintenance and 
                        continuous improvement of the system at 
                        the State and local levels;
                    (C) evaluate the performance of the system 
                and recommend needed improvements; and
                    (D) describe current (as of the date of the 
                submission of the plan) spending and spending 
                needs to carry out activities under this 
                section.
            (2) Cooperation with the states.--The Secretary and 
        the Bureau of Labor Statistics, in cooperation with the 
        States, shall develop the plan by holding formal 
        consultations, which shall be held on not less than a 
        semiannual basis, with--
                    (A) State representatives who have 
                expertise in labor market information, selected 
                by the Governors of each State;
                    (B) representatives from each of the ten 
                Federal regions of the Department of Labor, 
                elected by and from among individuals who 
                perform the duties described in subsection 
                (d)(2) pursuant to a process agreed upon by the 
                Secretary and the States; and
                    (C) employers or representatives of 
                employers, elected pursuant to a process agreed 
                upon by the Secretary and the States.
    (d) State Responsibilities.--
            (1) Designation of state agency.--In order to 
        receive Federal financial assistance under this 
        section, the Governor of a State--
                    (A) shall designate a single State agency 
                or entity within the State to be responsible 
                for the management of the portions of the 
                system described in subsection (a) that 
                comprise a statewide labor market information 
                system; and
                    (B) may establish a process for the 
                oversight of such system.
            (2) Duties.--In order to receive Federal financial 
        assistance under this section, the State agency or 
        entity designated under paragraph (1)(A) shall--
                    (A) consult with employers and local 
                boards, where appropriate, about the labor 
                market relevance of the data to be collected 
                and disseminated through the statewide labor 
                market information system;
                    (B) maintain and continuously improve the 
                portions of the system described in subsection 
                (a) that comprise a statewide labor market 
                information system in accordance with this 
                section;
                    (C) ensure the performance of contract and 
                grant responsibilities for data collection, 
                analysis, and dissemination for such system;
                    (D) conduct such other data collection, 
                analysis, and dissemination activities as will 
                ensure an effective statewide labor market 
                information system; and
                    (E) participate in the development of the 
                annual plan described in subsection (c).
            (3) Rule of construction.--Nothing in this section 
        shall be construed as limiting the ability of a State 
        agency or entity to conduct additional data collection, 
        analysis, and dissemination activities with State funds 
        or with Federal funds from sources other than this 
        section.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $65,000,000 for 
fiscal year 1998 and such sums as may be necessary for each of 
the fiscal years 1999 through 2002.

                   Subtitle E--Transition Provisions

SEC. 141. WAIVERS.

    (a) Waiver Authority.--
            (1) In general.--Notwithstanding any other 
        provision of Federal law, and except as provided in 
        subsection (d), the Secretary may waive any requirement 
        under any provision of law relating to a covered 
        activity, or of any regulation issued under such a 
        provision, for--
                    (A) a State that requests such a waiver and 
                submits an application as described in 
                subsection (b); or
                    (B) a local entity that requests such a 
                waiver and complies with the requirements of 
                subsection (c);
        in order to assist the State or local entity in 
        planning or developing a statewide system or workforce 
        and career development activities to be carried out 
        through the statewide system.
            (2) Term.--Each waiver approved pursuant to this 
        section shall be for a period beginning on the date of 
        the approval and ending on June 30, 1998.
    (b) State Request for Waiver.--
            (1) In general.--A State may submit to the 
        Secretary a request for a waiver of 1 or more 
        requirements referred to in subsection (a). The request 
        may include a request for different waivers with 
        respect to different areas within the State.
            (2) Application.--To be eligible to receive a 
        waiver described in subsection (a), a State shall 
        submit an application to the Secretary at such time, in 
        such manner, and containing such information as the 
        Secretary may require, including information--
                    (A) identifying the requirement to be 
                waived and the goal that the State (or the 
                local entity applying to the State under 
                subsection (c)) intends to achieve through the 
                waiver;
                    (B) identifying, and describing the actions 
                that the State will take to remove, similar 
                State requirements;
                    (C) describing the activities to which the 
                waiver will apply, including information on how 
                the activities may be continued, or related to 
                activities carried out, under the statewide 
                system of the State;
                    (D) describing the number and type of 
                persons to be affected by such waiver; and
                    (E) providing evidence of support for the 
                waiver request by the State agencies or 
                officials with jurisdiction over the 
                requirement to be waived.
    (c) Local Entity Request for Waiver.--
            (1) In general.--A local entity that seeks a waiver 
        of 1 or more requirements referred to in subsection (a) 
        shall submit to the State a request for the waiver and 
        an application containing sufficient information to 
        enable the State to comply with the requirements of 
        subsection (b)(2). The State shall determine whether to 
        submit a request and an application for a waiver to the 
        Secretary, as provided in subsection (b).
            (2) Time limit.--
                    (A) In general.--The State shall make a 
                determination concerning whether to submit the 
                request and application for a waiver as 
                described in paragraph (1) not later than 30 
                days after the date on which the State receives 
                the application from the local entity.
                    (B) Direct submission.--
                            (i) In general.--If the State does 
                        not make a determination to submit or 
                        does not submit the request and 
                        application within the 30-day time 
                        period specified in subparagraph (A), 
                        the local entity may submit the request 
                        and application to the Secretary.
                            (ii) Requirements.--In submitting 
                        such a request, the local entity shall 
                        obtain the agreement of the State 
                        involved to comply with the 
                        requirements of this section that would 
                        otherwise apply to a State submitting a 
                        request for a waiver. In reviewing an 
                        application submitted under this 
                        section by a local entity, the 
                        Secretary shall comply with the 
                        requirements of this section that would 
                        otherwise apply to the Secretary with 
                        respect to review of such an 
                        application submitted by a State.
    (d) Waivers Not Authorized.--The Secretary may not waive 
any requirement of any provision referred to in subsection (a), 
or of any regulation issued under such provision, relating to--
            (1) the allocation of funds to States, local 
        entities, or individuals;
            (2) public health or safety, civil rights, 
        occupational safety and health, environmental 
        protection, displacement of employees, or fraud and 
        abuse;
            (3) the eligibility of an individual for 
        participation in a covered activity, except in a case 
        in which the State or local entity can demonstrate that 
        the individuals who would have been eligible to 
        participate in such activity without the waiver will 
        participate in a similar covered activity; or
            (4) a required supplementation of funds by the 
        State or a prohibition against the State supplanting 
        such funds.
    (e) Activities.--Subject to subsection (d), the Secretary 
may approve a request for a waiver described in subsection (a) 
that would enable a State or local entity to use the assistance 
that would otherwise have been used to carry out 2 or more 
covered activities (if the State or local entity were not using 
the assistance as described in this section)--
            (1) to address the high priority needs of 
        unemployed persons and at-risk youth in the appropriate 
        State or community for workforce and career development 
        activities;
            (2) to improve efficiencies in the delivery of the 
        covered activities; or
            (3) in the case of overlapping or duplicative 
        activities--
                    (A) by combining the covered activities and 
                funding the combined activities; or
                    (B) by eliminating 1 of the covered 
                activities and increasing the funding to the 
                remaining covered activity.
    (f) Approval or Disapproval.--The Secretary shall approve 
or disapprove any request submitted pursuant to subsection (b) 
or (c), not later than 60 days after the date of the 
submission, and shall issue a decision that shall include the 
reasons for approving or disapproving the request.
    (g) Failure To Act.--If the Secretary fails to approve or 
disapprove the request within the 60-day period described in 
subsection (f), the request shall be deemed to be approved on 
the day after such period ends. If the Secretary subsequently 
determines that the waiver relates to a matter described in 
subsection (d) and issues a decision that includes the reasons 
for the determination, the waiver shall be deemed to terminate 
on the date of issuance of the decision.
    (h) Definitions.--As used in this section:
            (1) Local entity.--The term ``local entity'' 
        means--
                    (A) a local educational agency responsible 
                for carrying out the covered activity at issue; 
                or
                    (B) the local public or private agency or 
                organization responsible for carrying out the 
                covered activity at issue.
            (2) Secretary.--The term ``Secretary'' means--
                    (A) the Secretary of Labor, with respect to 
                any act relating to a covered activity carried 
                out by the Secretary of Labor;
                    (B) the Secretary of Education, with 
                respect to any act relating to a covered 
                activity carried out by the Secretary of 
                Education; and
                    (C) the Secretary of Labor and the 
                Secretary of Education, acting jointly, with 
                respect to a covered activity under the School-
                to-Work Opportunities Act of 1994 (20 U.S.C. 
                6101 et seq.).
            (3) State.--The term ``State'' means--
                    (A) an eligible agency responsible for 
                carrying out the covered activity at issue; or
                    (B) the Governor, with respect to any act 
                by another State entity responsible for 
                carrying out the covered activity at issue.

SEC. 142. TECHNICAL ASSISTANCE.

    Beginning on the date of the enactment of this Act, the 
Secretaries shall provide technical assistance to States that 
request such assistance in--
            (1) preparing the State plan required under section 
        104; or
            (2) developing the State benchmarks required under 
        section 106(b).

SEC. 143. APPLICATIONS AND PLANS UNDER COVERED ACTS.

    Notwithstanding any other provision of law, no State or 
local entity shall be required to comply with any provision of 
law relating to a covered activity that would otherwise require 
the entity to submit an application or a plan to a Federal 
agency during fiscal year 1997 for funding of a covered 
activity. In determining whether to provide funding to the 
State or local entity for the covered activity, the Secretary 
of Labor or the Secretary of Education, as appropriate, shall 
consider the last application or plan, as appropriate, 
submitted by the entity for funding of the covered activity.

SEC. 144. INTERIM AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Carl D. Perkins Vocational and Applied Technology 
Education Act.--Section 3(a) of the Carl D. Perkins Vocational 
and Applied Technology Education Act (20 U.S.C. 2302(a)) is 
amended by striking ``for each of the fiscal years'' and all 
that follows through ``1995'' and inserting ``for each of 
fiscal years 1992 through 1998''.
    (b) Adult Education Act.--Section 313(a) of the Adult 
Education Act (20 U.S.C. 1201b(a)) is amended by striking ``for 
each of the fiscal years'' and all that follows through 
``1995'' and inserting ``for each of fiscal years 1993 through 
1998''.

                     Subtitle F--General Provisions

SEC. 151. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to 
carry out this title (except sections 134, 138, and 139) such 
sums as may be necessary for each of fiscal years 1998 through 
2002.
    (b) Reservations.--Of the amount appropriated under 
subsection (a) for a fiscal year--
            (1) 90 percent shall be reserved for making 
        allotments under section 102;
            (2) $70,000,000 shall be reserved for carrying out 
        section 135;
            (3) $90,000,000 shall be reserved for carrying out 
        section 136;
            (4) $14,000,000 shall be reserved for carrying out 
        section 137; and
            (5) the remainder shall be reserved for carrying 
        out sections 132 and 133.
    (c) Program Year.--
            (1) In general.--Appropriations for any fiscal year 
        for programs and activities carried out under this 
        title or subtitle C of title II shall be available for 
        obligation only on the basis of a program year. The 
        program year shall begin on July 1 in the fiscal year 
        for which the appropriation is made.
            (2) Administration.--Funds obligated for any 
        program year for employment and training activities and 
        at-risk youth activities may be expended by each 
        recipient during the program year and the 2 succeeding 
        program years.

SEC. 152. LOCAL EXPENDITURES CONTRARY TO TITLE.

    (a) Repayment by State.--Except as provided in sections 
107(c)(4) and 126(b)(2)(B), if the Secretaries require a State 
to repay funds as a result of a determination that an eligible 
provider of employment and training activities or at-risk youth 
activities in a local workforce development area of the State 
has expended funds made available under this title in a manner 
contrary to the objectives of this title, and such expenditure 
does not constitute fraud, embezzlement, or other criminal 
activity, the Governor of the State may use an amount deducted 
under subsection (b) to repay the funds.
    (b) Deduction by State.--The Governor may deduct an amount 
equal to the expenditure described in subsection (a) from a 
subsequent program year allocation to the local workforce 
development area from funds available for local administration 
for employment and training activities or at-risk youth 
activities, as appropriate.

SEC. 153. EFFECTIVE DATES.

    (a) In General.--Except as otherwise provided in section 
134 and subsection (b), this title shall take effect on July 1, 
1998.
    (b) Administration and National Institute for Literacy.--
Sections 131 and 138, subtitle E, section 151, and this section 
shall take effect on the date of enactment of this Act.

     TITLE II--WORKFORCE AND CAREER DEVELOPMENT-RELATED ACTIVITIES

            Subtitle A--Amendments to the Wagner-Peyser Act

SEC. 201. DEFINITIONS.

    Section 2 of the Wagner-Peyser Act (29 U.S.C. 49a) is 
amended--
            (1) in paragraph (1), by striking ``Job Training 
        Partnership Act'' and inserting ``Workforce and Career 
        Development Act of 1996'';
            (2) by striking paragraphs (2) and (4);
            (3) by redesignating paragraphs (3) and (5) as 
        paragraphs (6) and (7), respectively;
            (4) by inserting after paragraph (1) the following:
            ``(2) the term `local workforce development area' 
        has the meaning given such term in section 4 of the 
        Workforce and Career Development Act of 1996;
            ``(3) the term `local workforce development board' 
        means a local workforce development board established 
        under section 108 of the Workforce and Career 
        Development Act of 1996;
            ``(4) the term `one-stop career center system' 
        means a one-stop career center system established under 
        section 121(d) of the Workforce and Career Development 
        Act of 1996;
            ``(5) the term `public employment office' means an 
        office that provides employment services to the general 
        public and is part of a one-stop career center 
        system;''; and
            (5) in paragraph (6) (as redesignated in paragraph 
        (3)), by striking the semicolon and inserting ``; 
        and''.

SEC. 202. FUNCTIONS.

    (a) In General.--Section 3(a) of the Wagner-Peyser Act (29 
U.S.C. 49b(a)) is amended to read as follows:
    ``(a) The Secretary of Labor shall--
            ``(1) assist in the coordination and development of 
        a nationwide system of labor exchange services for the 
        general public, provided as part of the one-stop career 
        center 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 continuation of 
        any activities in which the individuals are required to 
        participate to receive the compensation.''.
    (b) Conforming Amendments.--Section 508(b) of the 
Unemployment Compensation Amendments of 1976 (42 U.S.C. 
603a(b)) 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. 203. DESIGNATION OF STATE AGENCIES.

    Section 4 of the Wagner-Peyser Act (29 U.S.C. 49c) is 
amended--
            (1) by striking ``a State shall, through its 
        legislature,'' and inserting ``a Governor, in 
        consultation with the State legislature, shall''; and
            (2) by striking ``United States Employment 
        Service'' and inserting ``Secretary''.

SEC. 204. APPROPRIATIONS.

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

SEC. 205. DISPOSITION OF ALLOTTED FUNDS.

    Section 7 of the Wagner-Peyser Act (29 U.S.C. 49f) is 
amended--
            (1) in subsection (b)(2), by striking ``private 
        industry council'' and inserting ``local workforce 
        development board'';
            (2) in subsection (c)(2), by striking ``any program 
        under'' and all that follows and inserting ``any 
        workforce and career development activity carried out 
        under the Workforce and Career Development Act of 
        1996.'';
            (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 and Career 
                Development Act of 1996''; and
            (4) by adding at the end the following:
    ``(e) All job search, placement, recruitment, labor market 
information, and other labor exchange services authorized under 
subsection (a) shall be provided as part of the one-stop career 
center system established by the State.''.

SEC. 206. 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 104 of the Workforce and Career 
Development Act of 1996, detailed plans for carrying out the 
provisions of this Act within such State.'';
            (2) by striking subsections (b), (c), and (e); and
            (3) by redesignating subsection (d) as subsection 
        (b).

SEC. 207. REPEAL OF FEDERAL ADVISORY COUNCIL.

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

SEC. 208. 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. 209. EFFECTIVE DATE.

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

        Subtitle B--Amendments to the Rehabilitation Act of 1973

SEC. 211. REFERENCES.

    Except as otherwise expressly provided in this subtitle, 
whenever in this subtitle an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a 
section or other provision of the Rehabilitation Act of 1973 
(29 U.S.C. 701 et seq.).

SEC. 212. FINDINGS AND PURPOSES.

    Section 2 (29 U.S.C. 701) is amended--
            (1) in subsection (a)(4), by striking ``the 
        provision of individualized training, independent 
        living services, educational and support services,'' 
        and inserting ``implementation of a statewide system 
        that provides meaningful and effective participation 
        for individuals with disabilities in workforce and 
        career development activities and activities carried 
        out through the vocational rehabilitation program 
        established under title I, and through the provision of 
        independent living services, support services,''; and
            (2) in subsection (b)(1)(A)--
                    (A) by striking ``and coordinated''; and
                    (B) by inserting ``that are coordinated 
                with statewide systems'' after ``vocational 
                rehabilitation''.

SEC. 213. DEFINITIONS.

    Section 7 (29 U.S.C. 706) is amended by adding at the end 
the following new paragraphs:
    ``(36) The term `statewide system' means a statewide 
system, as defined in section 4 of the Workforce and Career 
Development Act of 1996.
    ``(37) The term `workforce and career development 
activities' has the meaning given such term in section 4 of the 
Workforce and Career Development Act of 1996.''.

SEC. 214. ADMINISTRATION.

    Section 12(a)(1) (29 U.S.C. 711(a)(1)) is amended by 
inserting ``, including providing assistance to achieve the 
meaningful and effective participation by individuals with 
disabilities in the activities carried out through a statewide 
system'' before the semicolon.

SEC. 215. REPORTS.

    Section 13 (29 U.S.C. 712) is amended in the fourth 
sentence by striking ``The data elements'' and all that follows 
through ``age,'' and inserting the following: ``The information 
shall include all information that is required to be submitted 
in the report described in section 106(c) of the Workforce and 
Career Development Act of 1996 and that pertains to the 
employment of individuals with disabilities, including 
information on age,''.

SEC. 216. EVALUATION.

    Section 14(a) (29 U.S.C. 713(a)) is amended in the third 
sentence by striking ``to the extent feasible,'' and all that 
follows through the end of the sentence and inserting the 
following: ``to the maximum extent appropriate, be consistent 
with the State benchmarks established under paragraphs (1) and 
(2) of section 106(b) of the Workforce and Career Development 
Act of 1996. For purposes of this section, the Secretary may 
modify or supplement such benchmarks to the extent necessary to 
address unique considerations applicable to the participation 
of individuals with disabilities in the vocational 
rehabilitation program established under title I and activities 
carried out under other provisions of this Act.''.

SEC. 217. DECLARATION OF POLICY.

    Section 100(a) (29 U.S.C. 720(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (E), by striking ``; 
                and'' and inserting a semicolon;
                    (B) in subparagraph (F)--
                            (i) by inserting ``workforce and 
                        career development activities and'' 
                        before ``vocational rehabilitation 
                        services''; and
                            (ii) by striking the period and 
                        inserting ``; and''; and
                    (C) by adding at the end the following 
                subparagraph:
            ``(G) linkages between the vocational 
        rehabilitation program established under this title and 
        other components of the statewide system are critical 
        to ensure effective and meaningful participation by 
        individuals with disabilities in workforce and career 
        development activities.''; and
            (2) in paragraph (2)--
                    (A) by striking ``a comprehensive'' and 
                inserting ``statewide comprehensive''; and
                    (B) by striking ``program of vocational 
                rehabilitation that is designed'' and inserting 
                ``programs of vocational rehabilitation, each 
                of which is--
            ``(A) coordinated with a statewide system; and
            ``(B) designed''.

SEC. 218. STATE PLANS.

    (a) In General.--Section 101(a) (29 U.S.C. 721(a)) is 
amended--
            (1) in the first sentence, by striking ``, or shall 
        submit'' and all that follows through ``et seq.)'' and 
        inserting ``, and shall submit the State plan on the 
        same dates as the State submits the State plan 
        described in section 104 of the Workforce and Career 
        Development Act of 1996 to the Secretaries (as defined 
        in section 4 of such Act)'';
            (2) by inserting after the first sentence the 
        following: ``The State designated unit shall also 
        submit the State plan for vocational rehabilitation 
        services for review and comment to the individuals and 
        entities participating in the collaborative process 
        described in subsection (a) or (b) of section 105 of 
        the Workforce and Career Development Act of 1996 and 
        such individuals and entities shall submit comments on 
        the State plan to the State designated unit.'';
            (3) in paragraph (15)--
                    (A) by striking ``, including--'' and all 
                that follows through ``(C) review of'' and 
                inserting ``, including review of'';
                    (B) by striking ``paragraph (9)(C)'' and 
                inserting ``paragraph (9)(D)'';
                    (C) by striking ``most severe disabilities; 
                and'' and inserting ``most severe 
                disabilities;''; and
                    (D) by striking subparagraph (D);
            (4) by striking paragraphs (10), (27), (28), and 
        (30);
            (5) in paragraph (19)--
                    (A) by striking ``(19)'' and inserting 
                ``(19)(A)''; and
                    (B) by inserting ``and'' after the 
                semicolon;
            (6) in paragraph (20), by striking ``(20)'' and 
        inserting ``(B)'';
            (7) by redesignating--
                    (A) paragraphs (11) through (18) as 
                paragraphs (10) through (17), respectively;
                    (B) paragraph (19) (as amended by 
                paragraphs (5) and (6)) as paragraph (18);
                    (C) paragraphs (21) through (26) as 
                paragraphs (19) through (24), respectively;
                    (D) paragraph (29) as paragraph (25); and
                    (E) paragraphs (31) through (36) as 
                paragraphs (26) through (31), respectively;
            (8) in paragraph (5)--
                    (A) by striking subparagraph (A) and 
                inserting the following:
    ``(A) contain the plans, policies, and methods to be 
followed in carrying out the State plan and in the 
administration and supervision of the plan, including--
            ``(i)(I) the results of a comprehensive, statewide 
        assessment of the rehabilitation needs of individuals 
        with disabilities (including individuals with severe 
        disabilities, individuals with disabilities who are 
        minorities, and individuals with disabilities who have 
        been unserved, or underserved, by the vocational 
        rehabilitation system) who are residing within the 
        State; and
            ``(II) the response of the State to the assessment;
            ``(ii) a description of the method to be used to 
        expand and improve services to individuals with the 
        most severe disabilities, including individuals served 
        under part C of title VI;
            ``(iii) with regard to community rehabilitation 
        programs--
                    ``(I) a description of the method to be 
                used (such as a cooperative agreement) to 
                utilize the programs to the maximum extent 
                feasible; and
                    ``(II) a description of the needs of and 
                utilization of the programs, including the 
                community rehabilitation programs funded under 
                the Javits-Wagner-O'Day Act (41 U.S.C. 46 et 
                seq.) and such programs funded by State use 
                contracting programs; and
            ``(iv) an explanation of the methods by which the 
        State will provide vocational rehabilitation services 
        to all individuals with disabilities within the State 
        who are eligible for such services, and, in the event 
        that vocational rehabilitation services cannot be 
        provided to all such eligible individuals with 
        disabilities who apply for such services, information 
        showing and providing the justification for the order 
        to be followed in selecting individuals to whom 
        vocational rehabilitation services will be provided 
        (which order of selection for the provision of 
        vocational rehabilitation services shall be determined 
        on the basis of serving first the individuals with the 
        most severe disabilities in accordance with criteria 
        established by the State, and shall be consistent with 
        priorities in such order of selection so determined, 
        and outcome and service goals for serving individuals 
        with disabilities, established in regulations 
        prescribed by the Commissioner);'';
                    (B) in subparagraph (B), by striking ``; 
                and'' and inserting a semicolon; and
                    (C) by striking subparagraph (C) and 
                inserting the following subparagraphs:
    ``(C) with regard to the statewide assessment of 
rehabilitation needs described in subparagraph (A)(i)--
            ``(i) provide that the State agency will make 
        reports at such time, in such manner, and containing 
        such information, as the Commissioner may require to 
        carry out the functions of the Commissioner under this 
        title, and comply with such provisions as are necessary 
        to assure the correctness and verification of such 
        reports; and
            ``(ii) provide that reports made under clause (i) 
        will include information regarding individuals with 
        disabilities and, if an order of selection described in 
        subparagraph (A)(iv) is in effect in the State, will 
        separately include information regarding individuals 
        with the most severe disabilities, on--
                    ``(I) the number of such individuals who 
                are evaluated and the number rehabilitated;
                    ``(II) the costs of administration, 
                counseling, provision of direct services, 
                development of community rehabilitation 
                programs, and other functions carried out under 
                this Act; and
                    ``(III) the utilization by such individuals 
                of other programs pursuant to paragraph (10); 
                and
    ``(D) describe--
            ``(i) how a broad range of rehabilitation 
        technology services will be provided at each stage of 
        the rehabilitation process;
            ``(ii) how a broad range of such rehabilitation 
        technology services will be provided on a statewide 
        basis; and
            ``(iii) the training that may be provided to 
        vocational rehabilitation counselors, client assistance 
        personnel, personnel of the eligible providers of core 
        services described in subsection (e)(2) of section 121 
        of the Workforce and Career Development Act of 1996 
        through one-stop career centers described in subsection 
        (d) of such section, and other related services 
        personnel;'';
            (9) in subparagraph (A)(i)(II) of paragraph (7), by 
        striking ``, based on projections'' and all that 
        follows through ``relevant factors'';
            (10) in paragraph (9)--
                    (A) in subparagraph (B), by striking 
                ``written rehabilitation program'' and 
                inserting ``employment plan''; and
                    (B) in subparagraph (C), by striking ``plan 
                in accordance with such program'' and inserting 
                ``State plan in accordance with the employment 
                plan'';
            (11) in paragraph (10) (as redesignated in 
        paragraph (7))--
                    (A) in subparagraph (A), by striking 
                ``State's public'' and all that follows and 
                inserting ``Federal, State, and local programs 
                that are not part of the statewide system of 
                the State;''; and
                    (B) in subparagraph (C)--
                            (i) by striking ``if appropriate--
                        '' and all that follows through 
                        ``entering into'' and inserting ``if 
                        appropriate, entering into'';
                            (ii) by redesignating subclauses 
                        (I), (II), and (III) as clauses (i), 
                        (ii), and (iii), respectively; and
                            (iii) by indenting the clauses and 
                        aligning the margins of the clauses 
                        with the margins of clause (ii) of 
                        subparagraph (A) of paragraph (7);
            (12) in paragraph (20) (as redesignated in 
        paragraph (7)), by striking ``referrals to other 
        Federal and State programs'' and inserting ``referrals 
        within the statewide system of the State to programs''; 
        and
            (13) in paragraph (22) (as redesignated in 
        paragraph (7))--
                    (A) in subparagraph (B), by striking 
                ``written rehabilitation program'' and 
                inserting ``employment plan''; and
                    (B) in subparagraph (C)--
                            (i) in clause (ii), by striking ``; 
                        and'' and inserting a semicolon;
                            (ii) in clause (iii), by striking 
                        the semicolon and inserting ``; and''; 
                        and
                            (iii) by adding at the end the 
                        following clause:
                    ``(iv) the manner in which students who are 
                individuals with disabilities and who are not 
                in special education programs can access and 
                receive vocational rehabilitation services, 
                where appropriate;''.
    (b) Conforming Amendments.--
            (1) Section 7(22)(A)(i)(II) (29 U.S.C. 
        706(22)(A)(i)(II)) is amended by striking 
        ``101(a)(5)(A)'' each place it appears and inserting 
        ``101(a)(5)(A)(iv)''.
            (2) Section 12(d) (29 U.S.C. 711(d)) is amended by 
        striking ``101(a)(5)(A)'' and inserting 
        ``101(a)(5)(A)(iv)''.
            (3) Section 101(a) (29 U.S.C. 721(a)) is amended--
                    (A) in paragraph (18)(A) (as redesignated 
                in subsection (a)(7)), by striking ``paragraph 
                (15)'' and inserting ``paragraph (14)'';
                    (B) in paragraph (22) (as redesignated in 
                subsection (a)(7)), by striking ``paragraph 
                (11)(C)(ii)'' and inserting ``paragraph 
                (10)(C)'';
                    (C) in paragraph (27) (as redesignated in 
                subsection (a)(7)), by striking ``paragraph 
                (36)'' and inserting ``paragraph (31)''; and
                    (D) in subparagraph (C) of paragraph (31) 
                (as redesignated in subsection (a)(7)), by 
                striking ``101(a)(1)(A)(i)'' and inserting 
                ``paragraph (1)(A)(i)''.
            (4) Section 102 (29 U.S.C. 722) is amended--
                    (A) in subsection (a)(3), by striking 
                ``101(a)(24)'' and inserting ``101(a)(22)''; 
                and
                    (B) in subsection (d)(2)(C)(ii)--
                            (i) in subclause (II), by striking 
                        ``101(a)(36)'' and inserting 
                        ``101(a)(31)''; and
                            (ii) in subclause (III), by 
                        striking ``101(a)(36)(C)(ii)'' and 
                        inserting ``101(a)(31)(C)(ii)''.
            (5) Section 103(a)(13) (29 U.S.C. 723(a)(13)) is 
        amended by striking ``101(a)(11)'' and inserting 
        ``101(a)(10)''.
            (6) Section 105(a)(1) (29 U.S.C. 725(a)(1)) is 
        amended by striking ``101(a)(36)'' and inserting 
        ``101(a)(31)''.
            (7) Section 107(a) (29 U.S.C. 727(a)) is amended--
                    (A) in paragraph (2)(F), by striking 
                ``101(a)(32)'' and inserting ``101(a)(27)''; 
                and
                    (B) in paragraph (4)(C), by striking 
                ``101(a)(35)'' and inserting ``101(a)(30)''.
            (8) Section 111(a) (29 U.S.C. 731(a)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``101(a)(34)(A)'' 
                        and inserting ``101(a)(29)(A)''; and
                            (ii) by striking ``101(a)(34)(B)'' 
                        and inserting ``101(a)(29)(B)''; and
                    (B) in paragraph (2)(A), by striking 
                ``101(a)(17)'' and inserting ``101(a)(16)''.
            (9) Section 124(a)(1)(A) (29 U.S.C. 744(a)(1)(A)) 
        is amended by striking ``101(a)(34)(B)'' and inserting 
        ``101(a)(29)(B)''.
            (10) Section 315(b)(2) (29 U.S.C. 777e(b)(2)) is 
        amended by striking ``101(a)(22)'' and inserting 
        ``101(a)(20)''.
            (11) Section 102(e)(23)(A) of the Technology-
        Related Assistance for Individuals With Disabilities 
        Act of 1988 (29 U.S.C. 2212(e)(23)(A)) is amended by 
        striking ``section 101(a)(36) of the Rehabilitation Act 
        of 1973 (29 U.S.C. 721(a)(36))'' and inserting 
        ``section 101(a)(31) of the Rehabilitation Act of 1973 
        (29 U.S.C. 721(a)(31))''.

SEC. 219. INDIVIDUALIZED EMPLOYMENT PLANS.

    (a) In General.--Section 102 (29 U.S.C. 722) is amended--
            (1) by striking the section heading and inserting 
        the following:

``SEC. 102. INDIVIDUALIZED EMPLOYMENT PLANS.'';

            (2) in subsection (a)(6), by striking ``written 
        rehabilitation program'' and inserting ``employment 
        plan'';
            (3) in subsection (b)--
                    (A) in paragraph (1)(A)--
                            (i) in clause (i), by striking 
                        ``written rehabilitation program'' and 
                        inserting ``employment plan''; and
                            (ii) in clause (ii), by striking 
                        ``program'' and inserting ``plan'';
                    (B) in paragraph (1)(B)--
                            (i) in the matter preceding clause 
                        (i), by striking ``written 
                        rehabilitation program'' and inserting 
                        ``employment plan'';
                            (ii) in clause (iv)--
                                    (I) by striking subclause 
                                (I) and inserting the 
                                following:
            ``(I) include a statement of the specific 
        vocational rehabilitation services to be provided 
        (including, if appropriate, rehabilitation technology 
        services and training in how to use such services) that 
        includes specification of the public or private entity 
        that will provide each such vocational rehabilitation 
        service and the projected dates for the initiation and 
        the anticipated duration of each such service; and'';
                                    (II) by striking subclause 
                                (II); and
                                    (III) by redesignating 
                                subclause (III) as subclause 
                                (II); and
                            (iii) in clause (xi)(I), by 
                        striking ``program'' and inserting 
                        ``plan'';
                    (C) in paragraph (1)(C), by striking 
                ``written rehabilitation program and amendments 
                to the program'' and inserting ``employment 
                plan and amendments to the plan''; and
                    (D) in paragraph (2)--
                            (i) by striking ``program'' each 
                        place the term appears and inserting 
                        ``plan''; and
                            (ii) by striking ``written 
                        rehabilitation'' each place the term 
                        appears and inserting ``employment'';
            (4) in subsection (c)--
                    (A) in paragraph (1), by striking ``written 
                rehabilitation program'' and inserting 
                ``employment plan''; and
                    (B) by striking ``written program'' each 
                place the term appears and inserting ``plan''; 
                and
            (5) in subsection (d)--
                    (A) in paragraph (5), by striking ``written 
                rehabilitation program'' and inserting 
                ``employment plan''; and
                    (B) in paragraph (6)(A), by striking the 
                second sentence.
    (b) Conforming Amendments.--
            (1) The table of contents for the Act is amended by 
        striking the item relating to section 102 and inserting 
        the following:

    ``Sec. 102. Individualized employment plans.''.

            (2) Paragraphs (22)(B) and (27)(B), and 
        subparagraphs (B) and (C) of paragraph (34) of section 
        7 (29 U.S.C. 706), section 12(e)(1) (29 U.S.C. 
        711(e)(1)), section 501(e) (29 U.S.C. 791(e)), 
        subparagraphs (C), (D), and (E) of section 635(b)(6) 
        (29 U.S.C. 795n(b)(6) (C), (D), and (E)), section 
        802(g)(8)(B) (29 U.S.C. 797a(g)(8)(B)), and section 
        803(c)(2)(D) (29 U.S.C. 797b(c)(2)(D)) are amended by 
        striking ``written rehabilitation program'' each place 
        the term appears and inserting ``employment plan''.
            (3) Section 7(22)(B)(i) (29 U.S.C. 706(22)(B)(i)) 
        is amended by striking ``rehabilitation program'' and 
        inserting ``employment plan''.
            (4) Section 107(a)(3)(D) (29 U.S.C. 727(a)(3)(D)) 
        is amended by striking ``written rehabilitation 
        programs'' and inserting ``employment plans''.
            (5) Section 101(b)(7)(A)(ii)(II) of the Technology-
        Related Assistance for Individuals With Disabilities 
        Act of 1988 (29 U.S.C. 2211(b)(7)(A)(ii)(II)) is 
        amended by striking ``written rehabilitation program'' 
        and inserting ``employment plan''.

SEC. 220. STATE REHABILITATION ADVISORY COUNCIL.

    (a) In General.--Section 105 (29 U.S.C. 725) is amended--
            (1) in subsection (b)(1)(A)(vi), by inserting 
        before the semicolon the following: ``who, to the 
        extent feasible, are individuals involved in the 
        collaborative process described in section 105 of the 
        Workforce and Career Development Act of 1996''; and
            (2) in subsection (c)--
                    (A) by redesignating paragraphs (3) through 
                (7) as paragraphs (4) through (8), 
                respectively;
                    (B) by inserting after paragraph (2) the 
                following new paragraph:
            ``(3) advise the designated State agency and the 
        designated State unit regarding strategies for ensuring 
        that the vocational rehabilitation program established 
        under this title is coordinated with the statewide 
        system of the State;''; and
                    (C) in paragraph (6) (as redesignated in 
                subparagraph (A))--
                            (i) by striking ``6024), and'' and 
                        inserting ``6024),''; and
                            (ii) by striking the semicolon at 
                        the end and inserting the following: 
                        ``, and the individuals and entities 
                        involved in the collaborative process 
                        described in section 105 of the 
                        Workforce and Career Development Act of 
                        1996;''.
    (b) Conforming Amendment.--Subparagraph (B)(iv), and 
clauses (ii)(I) and (iii)(I) of subparagraph (C), of paragraph 
(31) (as redesignated in section 218(a)(7)) of section 101(a) 
(29 U.S.C. 721(a)) are amended by striking ``105(c)(3)'' and 
inserting ``105(c)(4)''.

SEC. 221. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

    Section 106(a)(1) (29 U.S.C. 726(a)(1)) is amended--
            (1) by striking ``(1) In general.--The Commissioner 
        shall'' and inserting the following:
            ``(1) Evaluation standards and performance 
        indicators.--
                    ``(A) In general.--The Commissioner 
                shall''; and
            (2) by adding at the end the following:
                    ``(B) Modification or supplementation.--
                            ``(i) In general.--The Commissioner 
                        shall modify or supplement such 
                        standards and indicators to ensure 
                        that, to the maximum extent 
                        appropriate, such standards and 
                        indicators are consistent with the 
                        State benchmarks established under 
                        paragraphs (1) and (2) of section 
                        106(b) of the Workforce and Career 
                        Development Act of 1996.
                            ``(ii) Additional provisions.--The 
                        Commissioner--
                                    ``(I) shall, in modifying 
                                or supplementing such standards 
                                and indicators, comply with the 
                                requirements under the 
                                timetable for establishing such 
                                benchmarks under the Workforce 
                                and Career Development Act of 
                                1996; and
                                    ``(II) may modify or 
                                supplement such standards and 
                                indicators, to the extent 
                                necessary, to address unique 
                                considerations applicable to 
                                individuals with disabilities 
                                in the vocational 
                                rehabilitation program.''.

SEC. 222. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this subtitle shall take effect on the date 
of enactment of this Act.
    (b) Statewide System Requirements.--The changes made in the 
Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) by the 
amendments made by this subtitle that relate to State 
benchmarks, or other components of a statewide system, shall 
take effect on July 1, 1998.

                         Subtitle C--Job Corps

SEC. 231. DEFINITIONS.

    As used in this subtitle:
            (1) Enrollee.--The term ``enrollee'' means an 
        individual enrolled in the Job Corps.
            (2) Governor.--The term ``Governor'' means the 
        chief executive officer of a State.
            (3) Job corps.--The term ``Job Corps'' means the 
        Job Corps described in section 233.
            (4) Job corps center.--The term ``Job Corps 
        center'' means a center described in section 233.
            (5) Operator.--The term ``operator'' means an 
        entity selected under this subtitle to operate a Job 
        Corps center.
            (6) Secretary.--The term ``Secretary'' means the 
        Secretary of Labor.

SEC. 232. 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 at-risk youth who need and can benefit from 
        an unusually intensive program, operated in a group 
        setting, 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 workforce and career development 
        activities; and
            (4) to prescribe various other powers, duties, and 
        responsibilities incident to the operation and 
        continuing development of the Job Corps.

SEC. 233. ESTABLISHMENT.

    There shall be established in the Department of Labor a Job 
Corps program, to carry out, in conjunction with the activities 
carried out under section 247, activities described in this 
subtitle for individuals enrolled in the Job Corps and assigned 
to a center.

SEC. 234. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

    To be eligible to become an enrollee, an individual shall 
be--
            (1) not less than age 15 and not more than age 24;
            (2) an individual who--
                    (A) receives, or is a member of a family 
                that receives, cash welfare payments under a 
                Federal, State, or local welfare program;
                    (B) had received an income, or is a member 
                of a family that had received a total family 
                income, for the 6-month period prior to 
                application for the program involved (exclusive 
                of unemployment compensation, child support 
                payments, and payments described in 
                subparagraph (A)) that, in relation to family 
                size, does not exceed the higher of--
                            (i) the poverty line (as defined by 
                        the Office of Management and Budget, 
                        and revised annually in accordance with 
                        section 673(2) of the Community 
                        Services Block Grant Act (42 U.S.C. 
                        9902(2)), 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 of 
                the Secretary, 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; and
            (3) an individual who is 1 or more of the 
        following:
                    (A) Basic skills deficient.
                    (B) A school dropout.
                    (C) Homeless or a runaway.
                    (D) Pregnant or a parent.
                    (E) An individual who requires additional 
                education, training, or intensive counseling 
                and related assistance, in order to secure and 
                hold employment or participate successfully in 
                regular schoolwork.

SEC. 235. SCREENING AND SELECTION OF APPLICANTS.

    (a) Standards and Procedures.--
            (1) In general.--The Secretary shall prescribe 
        specific standards and procedures for the screening and 
        selection of 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) for the screening and 
        selection of Job Corps applicants, the Secretary 
        shall--
                    (A) require enrollees to take drug tests 
                within 30 days of enrollment in the Job Corps;
                    (B) allocate, where necessary, additional 
                resources to increase the applicant pool;
                    (C) establish standards for outreach to and 
                screening of Job Corps applicants;
                    (D) where appropriate, take measures to 
                improve the professional capability of the 
                individuals conducting such screening;
                    (E) require Job Corps applicants to pass 
                background checks, conducted in accordance with 
                procedures established by the Secretary; and
                    (F) 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) eligible providers of core services 
                described in section 121(e)(2) through one-stop 
                career centers described in section 121(d);
                    (B) agencies and organizations such as 
                community action agencies, professional groups, 
                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 the 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.
    (b) Special Limitations.--No individual shall be selected 
as an enrollee unless the individual or organization 
implementing the standards and procedures determines that--
            (1) there is a reasonable expectation that the 
        individual considered for selection can participate 
        successfully in group situations and activities, is not 
        likely to engage in behavior that would prevent other 
        enrollees from receiving the benefit of the 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 surrounding communities; and
            (2) 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.

SEC. 236. ENROLLMENT AND ASSIGNMENT.

    (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) Assignment.--After the Secretary has determined that an 
enrollee is to be assigned to a Job Corps center, the enrollee 
shall be assigned to the center that is closest to the 
residence of the enrollee, except that the Secretary may waive 
this requirement for good cause, including to ensure an 
equitable opportunity for individuals described in section 234 
from various sections of the United States to participate in 
the Job Corps program, to prevent undue delays in assignment of 
an enrollee, to adequately meet the educational or other needs 
of an enrollee, and for efficiency and economy in the operation 
of the program.
    (c) 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 238(d) would 
        require an individual to participate for more than 2 
        years; or
            (2) as the Secretary may authorize in a special 
        case.

SEC. 237. JOB CORPS CENTERS.

    (a) Operators and Service Providers.--
            (1) Eligible entities.--The Secretary shall enter 
        into an agreement with a Federal, State, or local 
        agency, which may be a State board or agency that 
        operates or wishes to develop an area vocational 
        education school facility or residential vocational 
        school, or with a private organization, for the 
        operation of each Job Corps center. The Secretary shall 
        enter into an agreement with an appropriate entity to 
        provide services for a Job Corps center.
            (2) Selection process.--Except as provided in 
        subsections (c) and (d), the Secretary shall select an 
        entity to operate a Job Corps center on a competitive 
        basis, after reviewing the operating plans described in 
        section 240. In selecting a private or public entity to 
        serve as an operator for a Job Corps center, the 
        Secretary shall, at the request of the Governor of the 
        State in which the center is located, convene and 
        obtain the recommendation of a selection panel 
        described in section 242(b). In selecting an entity to 
        serve as an operator or to provide services for a Job 
        Corps center, the Secretary shall take into 
        consideration the previous performance of the entity, 
        if any, relating to operating or providing services for 
        a Job Corps center.
    (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 
section 238. 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 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.--As used 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. 238. PROGRAM ACTIVITIES.

    (a) Activities Provided Through Job Corps Centers.--Each 
Job Corps center shall provide enrollees assigned to the center 
with access to core services described in section 121(e)(2), 
and such other employment and training activities and at-risk 
youth activities as may be appropriate to meet the needs of the 
enrollees. Each Job Corps center shall provide the enrollees 
with such activities described in sections 121 and 122 as may 
be appropriate to meet the needs of the enrollees. 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 successfully in secondary education 
or postsecondary education programs, enrolling in other 
suitable training programs, or satisfying Armed Forces 
requirements, on completion of their enrollment.
    (b) Arrangements.--The Secretary shall arrange for 
enrollees assigned to Job Corps centers to receive employment 
and training activities and at-risk youth activities through or 
in coordination with the statewide system, including employment 
and training activities and at-risk youth activities provided 
through local public or private educational agencies, 
vocational educational institutions, or technical institutes.
    (c) Fiscal and Management Accountability Information 
System.--The Secretary shall establish a fiscal and management 
accountability information system for Job Corps centers, and 
coordinate the activities carried out through the system with 
activities carried out through the fiscal and management 
accountability information systems for States described in 
section 106(e), if such systems are established.
    (d) 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.
            (2) Postsecondary educational institutions.--The 
        advanced career training may be provided through a 
        postsecondary educational institution for an enrollee 
        who has obtained a secondary school diploma or its 
        recognized equivalent, has demonstrated commitment and 
        capacity in previous Job Corps participation, and has 
        an identified occupational goal.
            (3) Company-sponsored training programs.--The 
        Secretary may enter into contracts with appropriate 
        entities to provide the advanced career training 
        through intensive training in company-sponsored 
        training programs, combined with internships in work 
        settings.
            (4) 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.
            (5) 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 reasonable rate of 
        completion and placement in training-related jobs 
        before the operator may carry out such additional 
        enrollment.

SEC. 239. SUPPORT.

    The Secretary shall provide enrollees assigned to Job Corps 
centers with such personal allowances, including readjustment 
allowances, as the Secretary may determine to be necessary or 
appropriate to meet the needs of the enrollees.

SEC. 240. OPERATING PLAN.

    (a) In General.--To be eligible to operate a Job Corps 
center, an entity shall prepare and submit an operating plan to 
the Secretary for approval. Prior to submitting the plan to the 
Secretary, the entity shall submit the plan to the Governor of 
the State in which the center is located for review and 
comment. The entity shall submit any comments prepared by the 
Governor on the plan to the Secretary with the plan. Such plan 
shall include, at a minimum, information indicating--
            (1) in quantifiable terms, the extent to which the 
        center will contribute to the achievement of the 
        proposed State goals and State benchmarks identified in 
        the State plan submitted under section 104 for the 
        State in which the center is located;
            (2) the extent to which the activities described in 
        section 238 and delivered through the Job Corps center 
        are directly linked to the workforce and career 
        development needs of the region in which the center is 
        located;
            (3) an implementation strategy to ensure that all 
        enrollees assigned to the Job Corps center will have 
        access to services through the one-stop delivery of 
        core services described in section 121(e)(2); and
            (4) an implementation strategy to ensure that the 
        curricula of all such enrollees is integrated into 
        activities described in section 238(a), including work-
        based learning, work experience, and career-building 
        activities, and that such enrollees have the 
        opportunity to obtain secondary school diplomas or 
        their recognized equivalent.
    (b) Approval.--The Secretary shall not approve an operating 
plan described in subsection (a) for a center if the Secretary 
determines that the activities proposed to be carried out 
through the center are not sufficiently integrated with the 
activities carried out through the statewide system of the 
State in which the center is located.

SEC. 241. 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.--
            (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.--
                    (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) Definitions.--As used 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. 242. COMMUNITY PARTICIPATION.

    (a) Activities.--The Secretary shall encourage and 
cooperate in activities to establish a mutually beneficial 
relationship between Job Corps centers in the State and nearby 
communities. The activities shall include the use of local 
boards established in the State to provide a mechanism for 
joint discussion of common problems and for planning programs 
of mutual interest.
    (b) Selection Panels.--The Governor may recommend 
individuals to serve on a selection panel convened by the 
Secretary to provide recommendations to the Secretary regarding 
any competitive selection of an operator for a center in the 
State. The panel shall have not more than 7 members. In 
recommending individuals to serve on the panel, the Governor 
may recommend members of local boards established in the State, 
or other representatives selected by the Governor. The 
Secretary shall select at least 1 individual recommended by the 
Governor.
    (c) Activities.--Each Job Corps center director shall--
            (1) give officials of nearby communities 
        appropriate advance notice of changes in the rules, 
        procedures, or activities of the Job Corps center that 
        may affect or be of interest to the communities;
            (2) afford the communities a meaningful voice in 
        the affairs of the Job Corps center that are of direct 
        concern to the communities, including policies 
        governing the issuance and terms of passes to 
        enrollees; and
            (3) encourage the participation of enrollees in 
        programs for improvement of the communities, with 
        appropriate advance consultation with business, labor, 
        professional, and other interested groups, in the 
        communities.

SEC. 243. COUNSELING AND PLACEMENT.

    The Secretary shall ensure that enrollees assigned to Job 
Corps centers receive academic and vocational counseling and 
job placement services, which shall be provided, to the maximum 
extent practicable, through the delivery of core services 
described in section 121(e)(2).

SEC. 244. ADVISORY COMMITTEES.

    The Secretary is authorized to make use of 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.

SEC. 245. 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. 246. SPECIAL PROVISIONS.

    (a) Enrollment of Women.--The Secretary shall immediately 
take steps to achieve an enrollment of 50 percent women in the 
Job Corps program, consistent with the need--
            (1) to promote efficiency and economy in the 
        operation of the program;
            (2) to promote sound administrative practice; and
            (3) to meet the socioeconomic, educational, and 
        training needs of the population to be served by the 
        program.
    (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 carrying out the Job Corps program shall become 
the property of the United States.
    (c) Gross Receipts.--Transactions conducted by a private 
for-profit contractor or a nonprofit contractor in connection 
with the operation by the contractor of a Job Corps center or 
the provision of services by the contractor for a Job Corps 
center shall not be considered to be generating gross receipts. 
Such a contractor 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 contractor for operating or providing services for a Job 
Corps center. Such a contractor 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 contractor of any property, service, or other item in 
connection with the operation of or provision of services for a 
Job Corps center.
    (d) Management Fee.--The Secretary shall provide each 
operator or entity providing services for a Job Corps center 
with an equitable and negotiated management fee of not less 
than 1 percent of the contract amount.
    (e) 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.

SEC. 247. REVIEW OF JOB CORPS CENTERS.

    (a) National Job Corps Review Panel.--
            (1) Establishment.--The Secretary shall establish a 
        National Job Corps Review Panel (hereafter referred to 
        in this section as the ``Panel'').
            (2) Membership.--The Panel shall be composed of 
        nine individuals selected by the Secretary, of which--
                    (A) three individuals shall be members of 
                the national office of the Job Corps;
                    (B) three individuals shall be 
                representatives from the private sector who 
                have expertise and a demonstrated record of 
                success in understanding, analyzing, and 
                motivating at-risk youth; and
                    (C) three individuals shall be members of 
                the Office of the Inspector General of the 
                Department of Labor.
            (3) Duties.--The Panel shall conduct a review of 
        the activities carried out under part B of title IV of 
        the Job Training Partnership Act (29 U.S.C. 1691 et 
        seq.), and, not later than July 31, 1997, the Panel 
        shall submit to the Committee on Economic and 
        Educational Opportunities of the House of 
        Representatives and the Committee on Labor and Human 
        Resources of the Senate a report containing the results 
        of the review, including--
                    (A) information on the amount of funds 
                expended for fiscal year 1996 to carry out 
                activities under such part, for each State and 
                for the United States;
                    (B) for each Job Corps center funded under 
                such part, information on the amount of funds 
                expended for fiscal year 1996 under such part 
                to carry out activities related to the direct 
                operation of the center, including funds 
                expended for student training, outreach or 
                intake activities, meals and lodging, student 
                allowances, medical care, placement or 
                settlement activities, and administration;
                    (C) for each Job Corps center, information 
                on the amount of funds expended for fiscal year 
                1996 under such part through contracts to carry 
                out activities not related to the direct 
                operation of the center, including funds 
                expended for student travel, national outreach, 
                screening, and placement services, national 
                vocational training, and national and regional 
                administrative costs;
                    (D) for each Job Corps center, information 
                on the amount of funds expended for fiscal year 
                1996 under such part for facility construction, 
                rehabilitation, and acquisition expenses;
                    (E) information on the amount of funds 
                required to be expended under such part to 
                complete each new or proposed Job Corps center, 
                and to rehabilitate and repair each existing 
                Job Corps center, as of the date of the 
                submission of the report;
                    (F) a summary of the information described 
                in subparagraphs (B) through (E) for all Job 
                Corps centers;
                    (G) an assessment of the need to serve 
                individuals described in section 234 in the Job 
                Corps program, including--
                            (i) a cost-benefit analysis of the 
                        residential component of the Job Corps 
                        program;
                            (ii) the need for residential 
                        education and training services for 
                        individuals described in section 234, 
                        analyzed for each State and for the 
                        United States; and
                            (iii) the distribution of training 
                        positions in the Job Corps program, as 
                        compared to the need for the services 
                        described in clause (ii), analyzed for 
                        each State;
                    (H) an overview of the Job Corps program as 
                a whole and an analysis of individual Job Corps 
                centers, including a 5-year performance 
                measurement summary that includes information, 
                analyzed for the program and for each Job Corps 
                center, on--
                            (i) the number of enrollees served;
                            (ii) the number of former enrollees 
                        who entered employment, including the 
                        number of former enrollees placed in a 
                        position related to the job training 
                        received through the program and the 
                        number placed in a position not related 
                        to the job training received;
                            (iii) the number of former 
                        enrollees placed in jobs for 32 hours 
                        per week or more;
                            (iv) the number of former enrollees 
                        who entered employment and were 
                        retained in the employment for more 
                        than 13 weeks;
                            (v) the number of former enrollees 
                        who entered the Armed Forces;
                            (vi) the number of former enrollees 
                        who completed vocational training, and 
                        the rate of such completion, analyzed 
                        by vocation;
                            (vii) the number of former 
                        enrollees who entered postsecondary 
                        education;
                            (viii) the number and percentage of 
                        early dropouts from the Job Corps 
                        program;
                            (ix) the average wage of former 
                        enrollees, including wages from 
                        positions described in clause (ii);
                            (x) the number of former enrollees 
                        who obtained a secondary school diploma 
                        or its recognized equivalent;
                            (xi) the average level of learning 
                        gains for former enrollees; and
                            (xii) the number of former 
                        enrollees that did not--
                                    (I) enter employment or 
                                postsecondary education;
                                    (II) complete a vocational 
                                education program; or
                                    (III) make identifiable 
                                learning gains;
                    (I) information regarding the performance 
                of all existing Job Corps centers over the 3 
                years preceding the date of submission of the 
                report; and
                    (J) job placement rates for each Job Corps 
                center and each entity providing services to a 
                Job Corps center.
    (b) Recommendations of Panel.--
            (1) Recommendations.--The Panel shall, based on the 
        results of the review described in subsection (a), make 
        recommendations to the Secretary, regarding 
        improvements in the operation of the Job Corps program, 
        including--
                    (A) closing 5 Job Corps centers by 
                September 30, 1997, and 5 additional Job Corps 
                centers by September 30, 2000;
                    (B) relocating Job Corps centers described 
                in paragraph (2)(A)(iii) in cases in which 
                facility rehabilitation, renovation, or repair 
                is not cost-effective; and
                    (C) taking any other action that would 
                improve the operation of a Job Corps center or 
                any other appropriate action.
            (2) Considerations.--
                    (A) In general.--In determining whether to 
                recommend that the Secretary close a Job Corps 
                center, the Panel shall consider whether the 
                center--
                            (i) has consistently received low 
                        performance measurement ratings under 
                        the Department of Labor or the Office 
                        of Inspector General Job Corps rating 
                        system;
                            (ii) is among the centers that have 
                        experienced the highest number of 
                        serious incidents of violence or 
                        criminal activity in the past 5 years;
                            (iii) is among the centers that 
                        require the largest funding for 
                        renovation or repair, as specified in 
                        the Department of Labor Job Corps 
                        Construction/Rehabilitation Funding 
                        Needs Survey, or for rehabilitation or 
                        repair, as reflected in the portion of 
                        the review described in subsection 
                        (a)(3)(E);
                            (iv) is among the centers for which 
                        the highest relative or absolute fiscal 
                        year 1996 expenditures were made, for 
                        any of the categories of expenditures 
                        described in subparagraph (B), (C), or 
                        (D) of subsection (a)(3), as reflected 
                        in the review described in subsection 
                        (a);
                            (v) is among the centers with the 
                        least State and local support; or
                            (vi) is among the centers with the 
                        lowest rating on such additional 
                        criteria as the Panel may determine to 
                        be appropriate.
                    (B) Coverage of states and regions.--
                Notwithstanding subparagraph (A), the Panel 
                shall not recommend that the Secretary close 
                the only Job Corps center in a State or a 
                region of the United States.
                    (C) Allowance for new job corps centers.--
                Notwithstanding any other provision of this 
                section, if the planning or construction of a 
                Job Corps center that received Federal funding 
                for fiscal year 1994 or 1995 has not been 
                completed by the date of enactment of this 
                Act--
                            (i) the appropriate entity may 
                        complete the planning or construction 
                        and begin operation of the center; and
                            (ii) the Panel shall not evaluate 
                        the center under this section sooner 
                        than 3 years after the first date of 
                        operation of the center.
            (3)  Report.--Not later than August 30, 1997, the 
        Panel shall submit to the Secretary a report that 
        contains--
                    (A) the results of the review conducted 
                under subsection (a) (as contained in the 
                report submitted under such subsection); and
                    (B) the recommendations described in 
                paragraph (1).
    (c) Implementation of Performance Improvements.--The 
Secretary shall, after reviewing the report submitted under 
subsection (b)(3), implement improvements in the operation of 
the Job Corps program, including closing 10 individual Job 
Corps centers pursuant to subsection (b). In implementing such 
improvements, the Secretary may close such additional Job Corps 
centers as the Secretary determines to be appropriate. Funds 
saved through the implementation of such improvements shall be 
used to maintain overall Job Corps program service levels, 
improve facilities at existing Job Corps centers, relocate Job 
Corps centers, initiate new Job Corps centers with a priority 
on placing Job Corps centers in States without existing Job 
Corps centers, and make other performance improvements in the 
Job Corps program.
    (d) Report to Congress.--The Secretary shall annually 
report to Congress the information specified in subparagraphs 
(H), (I), and (J) of subsection (a)(3) and such additional 
information relating to the Job Corps program as the Secretary 
may determine to be appropriate.

SEC. 248. ADMINISTRATION.

    The Secretary shall carry out the responsibilities 
specified for the Secretary in this subtitle, notwithstanding 
any other provision of this Act.

SEC. 249. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary for each of the fiscal years 1998 through 2002 to 
carry out this subtitle.

SEC. 250. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this 
subtitle shall take effect on July 1, 1998.
    (b) Report.--Section 247 shall take effect on the date of 
enactment of this Act.

      Subtitle D--Amendments to the National Literacy Act of 1991

SEC. 261. EXTENSION OF FUNCTIONAL LITERACY AND LIFE SKILLS PROGRAM FOR 
                    STATE AND LOCAL PRISONERS.

    Paragraph (3) of section 601(i) of the National Literacy 
Act of 1991 (20 U.S.C. 1211-2(i)) is amended--
            (1) by striking ``1994, and'' and inserting 
        ``1994,''; and
            (2) by inserting ``, and such sums as may be 
        necessary for each of the fiscal years 1997, 1998, 
        1999, 2000, 2001, and 2002'' before the period.

                    TITLE III--MUSEUMS AND LIBRARIES

SEC. 301. MUSEUM AND LIBRARY SERVICES.

    The Museum Services Act (20 U.S.C. 961 et seq.) is amended 
to read as follows:

                ``TITLE II--MUSEUM AND LIBRARY SERVICES

                    ``Subtitle A--General Provisions

``SEC. 201. SHORT TITLE.

    ``This title may be cited as the `Museum and Library 
Services Act'.

``SEC. 202. GENERAL DEFINITIONS.

    ``As used in this title:
            ``(1) Commission.--The term `Commission' means the 
        National Commission on Libraries and Information 
        Science established under section 3 of the National 
        Commission on Libraries and Information Sciences Act 
        (20 U.S.C. 1502).
            ``(2) Director.--The term `Director' means the 
        Director of the Institute appointed under section 204.
            ``(3) Institute.--The term `Institute' means the 
        Institute of Museum and Library Services established 
        under section 203.
            ``(4) Museum board.--The term `Museum Board' means 
        the National Museum Services Board established under 
        section 275.

``SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

    ``(a) Establishment.--There is established, within the 
National Foundation on the Arts and the Humanities, an 
Institute of Museum and Library Services.
    ``(b) Offices.--The Institute shall consist of an Office of 
Museum Services and an Office of Library Services. There shall 
be a National Museum Services Board in the Office of Museum 
Services.

``SEC. 204. DIRECTOR OF THE INSTITUTE.

    ``(a) Appointment.--
            ``(1) In general.--The Institute shall be headed by 
        a Director, appointed by the President, by and with the 
        advice and consent of the Senate.
            ``(2) Term.--The Director shall serve for a term of 
        4 years.
            ``(3) Qualifications.--Beginning with the first 
        individual appointed to the position of Director after 
        the date of enactment of the Workforce and Career 
        Development Act of 1996, every second individual so 
        appointed shall be appointed from among individuals who 
        have special competence with regard to library and 
        information services. Beginning with the second 
        individual appointed to the position of Director after 
        the date of enactment of the Workforce and Career 
        Development Act of 1996, every second individual so 
        appointed shall be appointed from among individuals who 
        have special competence with regard to museum services.
    ``(b) Compensation.--The Director shall be compensated at 
the rate provided for level III of the Executive Schedule under 
section 5314 of title 5, United States Code.
    ``(c) Duties and Powers.--The Director shall perform such 
duties and exercise such powers as may be prescribed by law, 
including awarding financial assistance for activities 
described in this title.
    ``(d) Nondelegation.--The Director shall not delegate any 
of the functions of the Director to any person who is not an 
officer or employee of the Institute.
    ``(e) Coordination.--The Director shall ensure coordination 
of the policies and activities of the Institute with the 
policies and activities of other agencies and offices of the 
Federal Government having interest in and responsibilities for 
the improvement of museums and libraries and information 
services.

``SEC. 205. DEPUTY DIRECTORS.

    ``The Office of Library Services shall be headed by a 
Deputy Director, who shall be appointed by the Director from 
among individuals who have a graduate degree in library science 
and expertise in library and information services. The Office 
of Museum Services shall be headed by a Deputy Director, who 
shall be appointed by the Director from among individuals who 
have expertise in museum services.

``SEC. 206. PERSONNEL.

    ``(a) In General.--The Director may, in accordance with 
applicable provisions of title 5, United States Code, appoint 
and determine the compensation of such employees as the 
Director determines to be necessary to carry out the duties of 
the Institute.
    ``(b) Voluntary Services.--The Director may accept and 
utilize the voluntary services of individuals and reimburse the 
individuals for travel expenses, including per diem in lieu of 
subsistence, in the same amounts and to the same extent as 
authorized under section 5703 of title 5, United States Code, 
for persons employed intermittently in Federal Government 
service.

``SEC. 207. CONTRIBUTIONS.

    ``The Institute is authorized to solicit, accept, receive, 
and invest in the name of the United States, gifts, bequests, 
or devises of money and other property or services and to use 
such property or services in furtherance of the functions of 
the Institute. Any proceeds from such gifts, bequests, or 
devises, after acceptance by the Institute, shall be paid by 
the donor or the representative of the donor to the Director. 
The Director shall enter the proceeds in a special-interest 
bearing account to the credit of the Institute for the purposes 
specified in each case.

             ``Subtitle B--Library Services and Technology

``SEC. 211. SHORT TITLE.

    ``This subtitle may be cited as the `Library Services and 
Technology Act'.

``SEC. 212. PURPOSE.

    ``It is the purpose of this subtitle--
            ``(1) to consolidate Federal library service 
        programs;
            ``(2) to stimulate excellence and promote access to 
        learning and information resources in all types of 
        libraries for individuals of all ages;
            ``(3) to promote library services that provide all 
        users access to information through State, regional, 
        national and international electronic networks;
            ``(4) to provide linkages among and between 
        libraries and one-stop career center systems; and
            ``(5) to promote targeted library services to 
        people of diverse geographic, cultural, and 
        socioeconomic backgrounds, to individuals with 
        disabilities, and to people with limited functional 
        literacy or information skills.

``SEC. 213. DEFINITIONS.

    ``As used in this subtitle:
            ``(1) Indian tribe.--The term `Indian tribe' means 
        any tribe, band, nation, or other organized group or 
        community, including any Alaska native village, 
        regional corporation, or village corporation, as 
        defined in or established pursuant to the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1601 et seq.), which 
        is recognized by the Secretary of the Interior as 
        eligible for the special programs and services provided 
        by the United States to Indians because of their status 
        as Indians.
            ``(2) Library.--The term `library' includes--
                    ``(A) a public library;
                    ``(B) a public elementary school or 
                secondary school library;
                    ``(C) an academic library;
                    ``(D) a research library, which for the 
                purposes of this subtitle means a library 
                that--
                            ``(i) makes publicly available 
                        library services and materials suitable 
                        for scholarly research and not 
                        otherwise available to the public; and
                            ``(ii) is not an integral part of 
                        an institution of higher education; and
                    ``(E) a private library, but only if the 
                State in which such private library is located 
                determines that the library should be 
                considered a library for purposes of this 
                subtitle.
            ``(3) Library consortium.--The term `library 
        consortium' means any local, statewide, regional, 
        interstate, or international cooperative association of 
        library entities which provides for the systematic and 
        effective coordination of the resources of school, 
        public, academic, and special libraries and information 
        centers, for improved services for the clientele of 
        such library entities.
            ``(4) State.--The term `State', unless otherwise 
        specified, includes each of the 50 States of the United 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, Guam, 
        American Samoa, the Commonwealth of the Northern 
        Mariana Islands, the Republic of the Marshall Islands, 
        the Federated States of Micronesia, and the Republic of 
        Palau.
            ``(5) State library administrative agency.--The 
        term `State library administrative agency' means the 
        official agency of a State charged by the law of the 
        State with the extension and development of public 
        library services throughout the State.
            ``(6) State plan.--The term `State plan' means the 
        document which gives assurances that the officially 
        designated State library administrative agency has the 
        fiscal and legal authority and capability to administer 
        all aspects of this subtitle, provides assurances for 
        establishing the State's policies, priorities, 
        criteria, and procedures necessary to the 
        implementation of all programs under this subtitle, 
        submits copies for approval as required by regulations 
        promulgated by the Director, identifies a State's 
        library needs, and sets forth the activities to be 
        taken toward meeting the identified needs supported 
        with the assistance of Federal funds made available 
        under this subtitle.

``SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be 
        appropriated $150,000,000 for fiscal year 1997 and such 
        sums as may be necessary for each of the fiscal years 
        1998 through 2002 to carry out this subtitle.
            ``(2) Transfer.--The Secretary of Education shall--
                    ``(A) transfer any funds appropriated under 
                the authority of paragraph (1) to the Director 
                to enable the Director to carry out this 
                subtitle; and
                    ``(B) not exercise any authority concerning 
                the administration of this title other than the 
                transfer described in subparagraph (A).
    ``(b) Forward Funding.--
            ``(1) In general.--To the end of affording the 
        responsible Federal, State, and local officers adequate 
        notice of available Federal financial assistance for 
        carrying out ongoing library activities and projects, 
        appropriations for grants, contracts, or other payments 
        under any program under this subtitle are authorized to 
        be included in the appropriations Act for the fiscal 
        year preceding the fiscal year during which such 
        activities and projects shall be carried out.
            ``(2) Additional authorization of appropriations.--
        In order to effect a transition to the timing of 
        appropriation action authorized by subsection (a), the 
        application of this section may result in the 
        enactment, in a fiscal year, of separate appropriations 
        for a program under this subtitle (whether in the same 
        appropriations Act or otherwise) for two consecutive 
        fiscal years.
    ``(c) Administration.--Not more than 3 percent of the funds 
appropriated under this section for a fiscal year may be used 
to pay for the Federal administrative costs of carrying out 
this subtitle.

                ``CHAPTER 1--BASIC PROGRAM REQUIREMENTS

``SEC. 221. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--
            ``(1) In general.--From the amount appropriated 
        under the authority of section 214 for any fiscal year, 
        the Director--
                    ``(A) shall reserve 1\1/2\ percent to award 
                grants in accordance with section 261; and
                    ``(B) shall reserve 4 percent to award 
                national leadership grants or contracts in 
                accordance with section 262.
            ``(2) Special rule.--If the funds reserved pursuant 
        to paragraph (1)(B) for a fiscal year have not been 
        obligated by the end of such fiscal year, then such 
        funds shall be allotted in accordance with subsection 
        (b) for the fiscal year succeeding the fiscal year for 
        which the funds were so reserved.
    ``(b) Allotments.--
            ``(1) In general.--From the sums appropriated under 
        the authority of section 214 and not reserved under 
        subsection (a) for any fiscal year, the Director shall 
        award grants from minimum allotments, as determined 
        under paragraph (3), to each State. Any sums remaining 
        after minimum allotments are made for such year shall 
        be allotted in the manner set forth in paragraph (2).
            ``(2) Remainder.--From the remainder of any sums 
        appropriated under the authority of section 214 that 
        are not reserved under subsection (a) and not allotted 
        under paragraph (1) for any fiscal year, the Director 
        shall award grants to each State in an amount that 
        bears the same relation to such remainder as the 
        population of the State bears to the population of all 
        States.
            ``(3) Minimum allotment.--
                    ``(A) In general.--For the purposes of this 
                subsection, the minimum allotment for each 
                State shall be $340,000, except that the 
                minimum allotment shall be $40,000 in the case 
                of the United States Virgin Islands, Guam, 
                American Samoa, the Commonwealth of the 
                Northern Mariana Islands, the Republic of the 
                Marshall Islands, the Federated States of 
                Micronesia, and the Republic of Palau.
                    ``(B) Ratable reductions.--If the sum 
                appropriated under the authority of section 214 
                and not reserved under subsection (a) for any 
                fiscal year is insufficient to fully satisfy 
                the aggregate of the minimum allotments for all 
                States for that purpose for such year, each of 
                such minimum allotments shall be reduced 
                ratably.
                    ``(C) Special rule.--
                            ``(i) In general.--Notwithstanding 
                        any other provision of this subsection 
                        and using funds allotted for the 
                        Republic of the Marshall Islands, the 
                        Federated States of Micronesia, and the 
                        Republic of Palau under this 
                        subsection, the Director 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 
                        Director determines are not 
                        inconsistent with this subparagraph.
                            ``(ii) Award basis.--The Director 
                        shall award grants pursuant to clause 
                        (i) on a competitive basis and pursuant 
                        to recommendations from the Pacific 
                        Region Educational Laboratory in 
                        Honolulu, Hawaii.
                            ``(iii) 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.
                            ``(iv) Administrative costs.--The 
                        Director may provide not more than 5 
                        percent of the funds made available for 
                        grants under this subparagraph to pay 
                        the administrative costs of the Pacific 
                        Region Educational Laboratory regarding 
                        activities assisted under this 
                        subparagraph.
            ``(4) Data.--The population of each State and of 
        all the States shall be determined by the Director on 
        the basis of the most recent data available from the 
        Bureau of the Census.

``SEC. 222. ADMINISTRATION.

    ``(a) In General.--Not more than 4 percent of the total 
amount of funds received under this subtitle for any fiscal 
year by a State may be used for administrative costs.
    ``(b) Construction.--Nothing in this section shall be 
construed to limit spending for evaluation costs under section 
224(c) from sources other than this subtitle.

``SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE OF EFFORT 
                    REQUIREMENTS.

    ``(a) Payments.--The Director shall pay to each State 
library administrative agency having a State plan approved 
under section 224 the Federal share of the cost of the 
activities described in the State plan.
    ``(b) Federal Share.--
            ``(1) In general.--The Federal share shall be 66 
        percent.
            ``(2) Non-federal share.--The non-Federal share of 
        payments shall be provided from non-Federal, State, or 
        local sources.
    ``(c) Maintenance of Effort.--
            ``(1) State expenditures.--
                    ``(A) Requirement.--
                            ``(i) In general.--The amount 
                        otherwise payable to a State for a 
                        fiscal year pursuant to an allotment 
                        under this chapter shall be reduced if 
                        the level of State expenditures, as 
                        described in paragraph (2), for the 
                        previous fiscal year is less than the 
                        average of the total of such 
                        expenditures for the 3 fiscal years 
                        preceding that previous fiscal year. 
                        The amount of the reduction in 
                        allotment for any fiscal year shall be 
                        equal to the amount by which the level 
                        of such State expenditures for the 
                        fiscal year for which the determination 
                        is made is less than the average of the 
                        total of such expenditures for the 3 
                        fiscal years preceding the fiscal year 
                        for which the determination is made.
                            ``(ii) Calculation.--Any decrease 
                        in State expenditures resulting from 
                        the application of subparagraph (B) 
                        shall be excluded from the calculation 
                        of the average level of State 
                        expenditures for any 3-year period 
                        described in clause (i).
                    ``(B) Decrease in federal support.--If the 
                amount made available under this subtitle for a 
                fiscal year is less than the amount made 
                available under this subtitle for the preceding 
                fiscal year, then the expenditures required by 
                subparagraph (A) for such preceding fiscal year 
                shall be decreased by the same percentage as 
                the percentage decrease in the amount so made 
                available.
            ``(2) Level of state expenditures.--The level of 
        State expenditures for the purposes of paragraph (1) 
        shall include all State dollars expended by the State 
        library administrative agency for library programs that 
        are consistent with the purposes of this subtitle. All 
        funds included in the maintenance of effort calculation 
        under this subsection shall be expended during the 
        fiscal year for which the determination is made, and 
        shall not include capital expenditures, special one-
        time project costs, or similar windfalls.
            ``(3) Waiver.--The Director may waive the 
        requirements of paragraph (1) if the Director 
        determines that such a waiver would be equitable due to 
        exceptional or uncontrollable circumstances such as a 
        natural disaster or a precipitous and unforeseen 
        decline in the financial resources of the State.

``SEC. 224. STATE PLANS.

    ``(a) State Plan Required.--
            ``(1) In general.--In order to be eligible to 
        receive a grant under this subtitle, a State library 
        administrative agency shall submit a State plan to the 
        Director not later than April 1, 1997.
            ``(2) Duration.--The State plan shall cover a 
        period of 5 fiscal years.
            ``(3) Revisions.--If a State library administrative 
        agency makes a substantive revision to its State plan, 
        then the State library administrative agency shall 
        submit to the Director an amendment to the State plan 
        containing such revision not later than April 1 of the 
        fiscal year preceding the fiscal year for which the 
        amendment will be effective.
    ``(b) Contents.--The State plan shall--
            ``(1) establish goals, and specify priorities, for 
        the State consistent with the purposes of this 
        subtitle;
            ``(2) describe activities that are consistent with 
        the goals and priorities established under paragraph 
        (1), the purposes of this subtitle, and section 231, 
        that the State library administrative agency will carry 
        out during such year using such grant;
            ``(3) describe the procedures that such agency will 
        use to carry out the activities described in paragraph 
        (2);
            ``(4) describe the methodology that such agency 
        will use to evaluate the success of the activities 
        established under paragraph (2) in achieving the goals 
        and meeting the priorities described in paragraph (1);
            ``(5) describe the procedures that such agency will 
        use to involve libraries and library users throughout 
        the State in policy decisions regarding implementation 
        of this subtitle; and
            ``(6) provide assurances satisfactory to the 
        Director that such agency will make such reports, in 
        such form and containing such information, as the 
        Director may reasonably require to carry out this 
        subtitle and to determine the extent to which funds 
        provided under this subtitle have been effective in 
        carrying out the purposes of this subtitle.
    ``(c) Evaluation and Report.--Each State library 
administrative agency receiving a grant under this subtitle 
shall independently evaluate, and report to the Director 
regarding, the activities assisted under this subtitle, prior 
to the end of the 5-year plan.
    ``(d) Information.--Each library receiving assistance under 
this subtitle shall submit to the State library administrative 
agency such information as such agency may require to meet the 
requirements of subsection (c).
    ``(e) Approval.--
            ``(1) In general.--The Director shall approve any 
        State plan under this subtitle that meets the 
        requirements of this subtitle and provides satisfactory 
        assurances that the provisions of such plan will be 
        carried out.
            ``(2) Public availability.--Each State library 
        administrative agency receiving a grant under this 
        subtitle shall make the State plan available to the 
        public.
            ``(3) Administration.--If the Director determines 
        that the State plan does not meet the requirements of 
        this section, the Director shall--
                    ``(A) immediately notify the State library 
                administrative agency of such determination and 
                the reasons for such determination;
                    ``(B) offer the State library 
                administrative agency the opportunity to revise 
                its State plan;
                    ``(C) provide technical assistance in order 
                to assist the State library administrative 
                agency in meeting the requirements of this 
                section; and
                    ``(D) provide the State library 
                administrative agency the opportunity for a 
                hearing.

                     ``CHAPTER 2--LIBRARY PROGRAMS

``SEC. 231. GRANTS TO STATES.

    ``(a) In General.--Of the funds provided to a State library 
administrative agency under section 214, such agency shall 
expend, either directly or through subgrants or cooperative 
agreements, at least 96 percent of such funds for--
            ``(1) establishing or enhancing electronic linkages 
        among or between libraries, library consortia, one-stop 
        career center systems established under section 121(d) 
        of the Workforce and Career Development Act of 1996, 
        and eligible providers as such term is defined in 
        section 4 of such Act, or any combination thereof; and
            ``(2) targeting library and information services to 
        persons having difficulty using a library and to 
        underserved urban and rural communities, including 
        children (from birth through age 17) from families with 
        incomes below the poverty line (as defined by the 
        Office of Management and Budget and revised annually in 
        accordance with section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)) applicable 
        to a family of the size involved.
    ``(b) Special Rule.--Each State library administrative 
agency receiving funds under this chapter may apportion the 
funds available for the purposes described in subsection (a) 
between the two purposes described in paragraphs (1) and (2) of 
such subsection, as appropriate, to meet the needs of the 
individual State.

                 ``CHAPTER 3--ADMINISTRATIVE PROVISIONS

                   ``Subchapter A--State Requirements

``SEC. 251. STATE ADVISORY COUNCILS.

    ``Each State desiring assistance under this subtitle may 
establish a State advisory council which is broadly 
representative of the library entities in the State, including 
public, school, academic, special, and institutional libraries, 
and libraries serving individuals with disabilities.

                  ``Subchapter B--Federal Requirements

``SEC. 261. SERVICES FOR INDIAN TRIBES.

    ``From amounts reserved under section 221(a)(1)(A) for any 
fiscal year the Director shall award grants to organizations 
primarily serving and representing Indian tribes to enable such 
organizations to carry out the activities described in section 
231.

``SEC. 262. NATIONAL LEADERSHIP GRANTS OR CONTRACTS.

    ``(a) In General.--From the amounts reserved under section 
221(a)(1)(B) for any fiscal year the Director shall establish 
and carry out a program awarding national leadership grants or 
contracts to enhance the quality of library services nationwide 
and to provide coordination between libraries and museums. Such 
grants or contracts shall be used for activities that may 
include--
            ``(1) education and training of persons in library 
        and information science, particularly in areas of new 
        technology and other critical needs, including graduate 
        fellowships, traineeships, institutes, or other 
        programs;
            ``(2) research and demonstration projects related 
        to the improvement of libraries, education in library 
        and information science, enhancement of library 
        services through effective and efficient use of new 
        technologies, and dissemination of information derived 
        from such projects;
            ``(3) preservation or digitization of library 
        materials and resources, giving priority to projects 
        emphasizing coordination, avoidance of duplication, and 
        access by researchers beyond the institution or library 
        entity undertaking the project; and
            ``(4) model programs demonstrating cooperative 
        efforts between libraries and museums.
    ``(b) Grants or Contracts.--
            ``(1) In general.--The Director may carry out the 
        activities described in subsection (a) by awarding 
        grants to, or entering into contracts with, libraries, 
        agencies, institutions of higher education, or museums, 
        where appropriate.
            ``(2) Competitive basis.--Grants and contracts 
        under this section shall be awarded on a competitive 
        basis.
    ``(c) Special Rule.--The Director shall make every effort 
to ensure that activities assisted under this section are 
administered by appropriate library and museum professionals or 
experts.

``SEC. 263. STATE AND LOCAL INITIATIVES.

    ``Nothing in this subtitle shall be construed to interfere 
with State and local initiatives and responsibility in the 
conduct of library services. The administration of libraries, 
the selection of personnel and library books and materials, and 
insofar as consistent with the purposes of this subtitle, the 
determination of the best uses of the funds provided under this 
subtitle, shall be reserved for the States and their local 
subdivisions.

                     ``Subtitle C--Museum Services

``SEC. 271. PURPOSE.

    ``It is the purpose of this subtitle--
            ``(1) to encourage and assist museums in their 
        educational role, in conjunction with formal systems of 
        elementary, secondary, and postsecondary education, and 
        with programs of nonformal education for all age 
        groups;
            ``(2) to assist museums in modernizing their 
        methods and facilities so that the museums are better 
        able to conserve the cultural, historic, and scientific 
        heritage of the United States; and
            ``(3) to ease the financial burden borne by museums 
        as a result of their increasing use by the public.

``SEC. 272. DEFINITIONS.

    ``As used in this subtitle:
            ``(1) Museum.--The term `museum' means a public or 
        private nonprofit agency or institution organized on a 
        permanent basis for essentially educational or 
        aesthetic purposes, that utilizes a professional staff, 
        owns or utilizes tangible objects, cares for the 
        tangible objects, and exhibits the tangible objects to 
        the public on a regular basis.
            ``(2) State.--The term `State' means each of the 50 
        States of the United States, the District of Columbia, 
        the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, American Samoa, the Commonwealth 
        of the Northern Mariana Islands, the Republic of the 
        Marshall Islands, the Federated States of Micronesia, 
        and the Republic of Palau.

``SEC. 273. MUSEUM SERVICES ACTIVITIES.

    ``(a) Grants.--The Director, subject to the policy 
direction of the Museum Board, may make grants to museums to 
pay for the Federal share of the cost of increasing and 
improving museum services, through such activities as--
            ``(1) programs that enable museums to construct or 
        install displays, interpretations, and exhibitions in 
        order to improve museum services provided to the 
        public;
            ``(2) assisting museums in developing and 
        maintaining professionally trained or otherwise 
        experienced staff to meet the needs of the museums;
            ``(3) assisting museums in meeting the 
        administrative costs of preserving and maintaining the 
        collections of the museums, exhibiting the collections 
        to the public, and providing educational programs to 
        the public through the use of the collections;
            ``(4) assisting museums in cooperating with each 
        other in developing traveling exhibitions, meeting 
        transportation costs, and identifying and locating 
        collections available for loan;
            ``(5) assisting museums in the conservation of 
        their collections;
            ``(6) developing and carrying out specialized 
        programs for specific segments of the public, such as 
        programs for urban neighborhoods, rural areas, Indian 
        reservations, and penal and other State institutions; 
        and
            ``(7) model programs demonstrating cooperative 
        efforts between libraries and museums.
    ``(b) Contracts and Cooperative Agreements.--
            ``(1) Projects to strengthen museum services.--The 
        Director, subject to the policy direction of the Museum 
        Board, is authorized to enter into contracts and 
        cooperative agreements with appropriate entities, as 
        determined by the Director, to pay for the Federal 
        share of enabling the entities to undertake projects 
        designed to strengthen museum services, except that any 
        contracts or cooperative agreements entered into 
        pursuant to this subsection shall be effective only to 
        such extent or in such amounts as are provided in 
        appropriations acts.
            ``(2) Limitation on amount.--The aggregate amount 
        of financial assistance made available under this 
        subsection for a fiscal year shall not exceed 15 
        percent of the amount appropriated under this subtitle 
        for such fiscal year.
            ``(3) Operational expenses.--No financial 
        assistance may be provided under this subsection to pay 
        for operational expenses.
    ``(c) Federal Share.--
            ``(1) 50 percent.--Except as provided in paragraph 
        (2), the Federal share described in subsections (a) and 
        (b) shall be not more than 50 percent.
            ``(2) Greater than 50 percent.--The Director may 
        use not more than 20 percent of the funds made 
        available under this subtitle for a fiscal year to make 
        grants under subsection (a), or enter into contracts or 
        agreements under subsection (b), for which the Federal 
        share may be greater than 50 percent.
    ``(d) Review and Evaluation.--The Director shall establish 
procedures for reviewing and evaluating grants, contracts, and 
cooperative agreements made or entered into under this 
subtitle. Procedures for reviewing grant applications or 
contracts and cooperative agreements for financial assistance 
under this subtitle shall not be subject to any review outside 
of the Institute.

``SEC. 274. AWARD.

    ``The Director, with the advice of the Museum Board, may 
annually award a National Award for Museum Service to 
outstanding museums that have made significant contributions in 
service to their communities.

``SEC. 275. NATIONAL MUSEUM SERVICES BOARD.

    ``(a) Establishment.--There is established in the Institute 
a National Museum Services Board.
    ``(b) Composition and Qualifications.--
            ``(1) Composition.--The Museum Board shall consist 
        of the Director and 14 members appointed by the 
        President, by and with the advice and consent of the 
        Senate.
            ``(2) Qualifications.--The appointive members of 
        the Museum Board shall be selected from among citizens 
        of the United States--
                    ``(A) who are members of the general 
                public;
                    ``(B) who are or have been affiliated 
                with--
                            ``(i) resources that, collectively, 
                        are broadly representative of the 
                        curatorial, conservation, educational, 
                        and cultural resources of the United 
                        States; or
                            ``(ii) museums that, collectively, 
                        are broadly representative of various 
                        types of museums, including museums 
                        relating to science, history, 
                        technology, art, zoos, and botanical 
                        gardens; and
                    ``(C) who are recognized for their broad 
                knowledge, expertise, or experience in museums 
                or commitment to museums.
            ``(3) Geographic and other representation.--Members 
        of the Museum Board shall be appointed to reflect 
        persons from various geographic regions of the United 
        States. The Museum Board may not include, at any time, 
        more than 3 members from a single State. In making such 
        appointments, the President shall give due regard to 
        equitable representation of women, minorities, and 
        persons with disabilities who are involved with 
        museums.
    ``(c) Terms.--
            ``(1) In general.--Each appointive member of the 
        Museum Board shall serve for a term of 5 years, except 
        that--
                    ``(A) of the members first appointed, 3 
                shall serve for terms of 5 years, 3 shall serve 
                for terms of 4 years, 3 shall serve for terms 
                of 3 years, 3 shall serve for terms of 2 years, 
                and 2 shall serve for terms of 1 year, as 
                designated by the President at the time of 
                nomination for appointment; and
                    ``(B) any member appointed to fill a 
                vacancy shall serve for the remainder of the 
                term for which the predecessor of the member 
                was appointed.
            ``(2) Reappointment.--No member of the Museum Board 
        who has been a member for more than 7 consecutive years 
        shall be eligible for reappointment.
            ``(3) Service until successor takes office.--
        Notwithstanding any other provision of this subsection, 
        a member of the Museum Board shall serve after the 
        expiration of the term of the member until the 
        successor to the member takes office.
    ``(d) Duties and Powers.--The Museum Board shall have the 
responsibility to advise the Director on general policies with 
respect to the duties, powers, and authority of the Institute 
relating to museum services, including general policies with 
respect to--
            ``(1) financial assistance awarded under this 
        subtitle for museum services; and
            ``(2) projects described in section 262(a)(4).
    ``(e) Chairperson.--The President shall designate 1 of the 
appointive members of the Museum Board as Chairperson of the 
Museum Board.
    ``(f) Meetings.--
            ``(1) In general.--The Museum Board shall meet--
                    ``(A) not less than 3 times each year, 
                including--
                            ``(i) not less than 2 times each 
                        year separately; and
                            ``(ii) not less than 1 time each 
                        year in a joint meeting with the 
                        Commission, convened for purposes of 
                        making general policies with respect to 
                        financial assistance for projects 
                        described in section 262(a)(4); and
                    ``(B) at the call of the Director.
            ``(2) Vote.--All decisions by the Museum Board with 
        respect to the exercise of the duties and powers of the 
        Museum Board shall be made by a majority vote of the 
        members of the Museum Board who are present. All 
        decisions by the Commission and the Museum Board with 
        respect to the policies described in paragraph 
        (1)(A)(ii) shall be made by a \2/3\ majority vote of 
        the total number of the members of the Commission and 
        the Museum Board who are present.
    ``(g) Quorum.--A majority of the members of the Museum 
Board shall constitute a quorum for the conduct of business at 
official meetings of the Museum Board, but a lesser number of 
members may hold hearings. A majority of the members of the 
Commission and a majority of the members of the Museum Board 
shall constitute a quorum for the conduct of business at 
official joint meetings of the Commission and the Museum Board.
    ``(h) Compensation and Travel Expenses.--
            ``(1) Compensation.--Each member of the Museum 
        Board who is not an officer or employee of the Federal 
        Government shall be compensated at a rate to be fixed 
        by the President, but not to exceed the daily 
        equivalent of the maximum rate authorized for a 
        position above grade GS-15 of the General Schedule 
        under section 5108 of title 5, United States Code, for 
        each day (including travel time) during which such 
        member is engaged in the performance of the duties of 
        the Museum Board. All members of the Museum Board who 
        are officers or employees of the Federal Government 
        shall serve without compensation in addition to 
        compensation received for their services as officers or 
        employees of the Federal Government.
            ``(2) Travel expenses.--The members of the Museum 
        Board shall be allowed travel expenses, including per 
        diem in lieu of subsistence, in the same amounts and to 
        the same extent, as authorized under section 5703 of 
        title 5, United States Code, for persons employed 
        intermittently in Federal Government service.
    ``(i) Coordination.--The Museum Board, with the advice of 
the Director, shall take steps to ensure that the policies and 
activities of the Institute are coordinated with other 
activities of the Federal Government.

``SEC. 276. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants.--For the purpose of carrying out this 
subtitle, there are authorized to be appropriated to the 
Director $28,700,000 for the fiscal year 1997, and such sums as 
may be necessary for each of the fiscal years 1998 through 
2002.
    ``(b) Administration.--Not more than 10 percent of the 
funds appropriated under this section for a fiscal year may be 
used to pay for the administrative costs of carrying out this 
subtitle.
    ``(c) Sums Remaining Available.--Sums appropriated pursuant 
to subsection (a) for any fiscal year shall remain available 
for obligation until expended.''.

SEC. 302. NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE.

    (a) Functions.--Section 5 of the National Commission on 
Libraries and Information Science Act (20 U.S.C. 1504) is 
amended--
            (1) by redesignating subsections (b) through (d) as 
        subsections (d) through (f), respectively; and
            (2) by inserting after subsection (a) the 
        following:
    ``(b) The Commission shall have the responsibility to 
advise the Director of the Institute of Museum and Library 
Services on general policies with respect to the duties, 
powers, and authority of the Institute of Museum and Library 
Services relating to library services, including--
            ``(1) general policies with respect to--
                    ``(A) financial assistance awarded under 
                the Museum and Library Services Act for library 
                services; and
                    ``(B) projects described in section 
                262(a)(4) of such Act; and
            ``(2) measures to ensure that the policies and 
        activities of the Institute of Museum and Library 
        Services are coordinated with other activities of the 
        Federal Government.
    ``(c)(1) The Commission shall meet not less than 1 time 
each year in a joint meeting with the National Museum Services 
Board, convened for purposes of providing advice on general 
policy with respect to financial assistance for projects 
described in section 262(a)(4) of such Act.
    ``(2) All decisions by the Commission and the National 
Museum Services Board with respect to the advice on general 
policy described in paragraph (1) shall be made by a \2/3\ 
majority vote of the total number of the members of the 
Commission and the National Museum Services Board who are 
present.
    ``(3) A majority of the members of the Commission and a 
majority of the members of the National Museum Services Board 
shall constitute a quorum for the conduct of business at 
official joint meetings of the Commission and the National 
Museum Services Board.''.
    (b) Membership.--Section 6 of the National Commission on 
Libraries and Information Science Act (20 U.S.C. 1505) is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking 
                ``Librarian of Congress'' and inserting 
                ``Librarian of Congress, the Director of the 
                Institute of Museum and Library Services (who 
                shall serve as an ex officio, nonvoting 
                member),'';
                    (B) in the second sentence--
                            (i) by striking ``special 
                        competence or interest in'' and 
                        inserting ``special competence in or 
                        knowledge of''; and
                            (ii) by inserting before the period 
                        the following: ``and at least one other 
                        of whom shall be knowledgeable with 
                        respect to the library and information 
                        service and science needs of the 
                        elderly'';
                    (C) in the third sentence, by inserting 
                ``appointive'' before ``members''; and
                    (D) in the last sentence, by striking 
                ``term and at least'' and all that follows and 
                inserting ``term.''; and
            (2) in subsection (b), by striking ``the rate 
        specified'' and all that follows through ``and while'' 
        and inserting ``the daily equivalent of the maximum 
        rate authorized for a position above grade GS-15 of the 
        General Schedule under section 5108 of title 5, United 
        States Code, for each day (including traveltime) during 
        which the members are engaged in the business of the 
        Commission. While''.

SEC. 303. TRANSFER OF FUNCTIONS FROM INSTITUTE OF MUSEUM SERVICES.

    (a) Definitions.--For purposes of this section, unless 
otherwise provided or indicated by the context--
            (1) the term ``Federal agency'' has the meaning 
        given to the term ``agency'' by section 551(1) of title 
        5, United States Code;
            (2) the term ``function'' means any duty, 
        obligation, power, authority, responsibility, right, 
        privilege, activity, or program; and
            (3) the term ``office'' includes any office, 
        administration, agency, institute, unit, organizational 
        entity, or component thereof.
    (b) Transfer of Functions From the Institute of Museum 
Services and the Library Program Office.--There are transferred 
to the Director of the Institute of Museum and Library Services 
established under section 203 of the Museum and Library 
Services Act--
            (1) all functions that the Director of the 
        Institute of Museum Services exercised before the date 
        of enactment of this section (including all related 
        functions of any officer or employee of the Institute 
        of Museum Services); and
            (2) all functions that the Director of Library 
        Programs in the Office of Educational Research and 
        Improvement in the Department of Education exercised 
        before the date of enactment of this section and any 
        related function of any officer or employee of the 
        Department of Education.
    (c) Determinations of Certain Functions by the Office of 
Management and Budget.--If necessary, the Office of Management 
and Budget shall make any determination of the functions that 
are transferred under subsection (b).
    (d) Delegation and Assignment.--Except where otherwise 
expressly prohibited by law or otherwise provided by this 
section, the Director of the Institute of Museum and Library 
Services may delegate any of the functions transferred to the 
Director of the Institute of Museum and Library Services by 
this section and any function transferred or granted to such 
Director of the Institute of Museum and Library Services after 
the effective date of this section to such officers and 
employees of the Institute of Museum and Library Services as 
the Director of the Institute of Museum and Library Services 
may designate, and may authorize successive redelegations of 
such functions as may be necessary or appropriate, except that 
any delegation of any such functions with respect to libraries 
shall be made to the Deputy Director of the Office of Library 
Services and with respect to museums shall be made to the 
Deputy Director of the Office of Museum Services. No delegation 
of functions by the Director of the Institute of Museum and 
Library Services under this section or under any other 
provision of this section shall relieve such Director of the 
Institute of Museum and Library Services of responsibility for 
the administration of such functions.
    (e) Reorganization.--The Director of the Institute of 
Museum and Library Services may allocate or reallocate any 
function transferred under subsection (b) among the officers of 
the Institute of Museum and Library Services, and may 
establish, consolidate, alter, or discontinue such 
organizational entities in the Institute of Museum and Library 
Services as may be necessary or appropriate.
    (f) Rules.--The Director of the Institute of Museum and 
Library Services may prescribe, in accordance with chapters 5 
and 6 of title 5, United States Code, such rules and 
regulations as the Director of the Institute of Museum and 
Library Services determines to be necessary or appropriate to 
administer and manage the functions of the Institute of Museum 
and Library Services.
    (g) Transfer and Allocations of Appropriations and 
Personnel.--Except as otherwise provided in this section, the 
personnel employed in connection with, and the assets, 
liabilities, contracts, property, records, and unexpended 
balances of appropriations, authorizations, allocations, and 
other funds employed, used, held, arising from, available to, 
or to be made available in connection with the functions 
transferred by this section, subject to section 1531 of title 
31, United States Code, shall be transferred to the Institute 
of Museum and Library Services. Unexpended funds transferred 
pursuant to this subsection shall be used only for the purposes 
for which the funds were originally authorized and 
appropriated.
    (h) Incidental Transfers.--The Director of the Office of 
Management and Budget, at such time or times as the Director 
shall provide, may make such determinations as may be necessary 
with regard to the functions transferred by this section, and 
make such additional incidental dispositions of personnel, 
assets, liabilities, grants, contracts, property, records, and 
unexpended balances of appropriations, authorizations, 
allocations, and other funds held, used, arising from, 
available to, or to be made available in connection with such 
functions, as may be necessary to carry out this section. The 
Director of the Office of Management and Budget shall provide 
for the termination of the affairs of all entities terminated 
by this section and for such further measures and dispositions 
as may be necessary to effectuate the purposes of this section.
    (i) Effect on Personnel.--
            (1) In general.--Except as otherwise provided by 
        this section, the transfer pursuant to this section of 
        full-time personnel (except special Government 
        employees) and part-time personnel holding permanent 
        positions shall not cause any such employee to be 
        separated or reduced in grade or compensation for 1 
        year after the date of transfer of such employee under 
        this section.
            (2) Executive schedule positions.--Except as 
        otherwise provided in this section, any person who, on 
        the day preceding the effective date of this section, 
        held a position compensated in accordance with the 
        Executive Schedule prescribed in chapter 53 of title 5, 
        United States Code, and who, without a break in 
        service, is appointed in the Institute of Museum and 
        Library Services to a position having duties comparable 
        to the duties performed immediately preceding such 
        appointment shall continue to be compensated in such 
        new position at not less than the rate provided for 
        such previous position, for the duration of the service 
        of such person in such new position.
    (j) Savings Provisions.--
            (1) Continuing effect of legal documents.--All 
        orders, determinations, rules, regulations, permits, 
        agreements, grants, contracts, certificates, licenses, 
        registrations, privileges, and other administrative 
        actions--
                    (A) that have been issued, made, granted, 
                or allowed to become effective by the 
                President, any Federal agency or official of a 
                Federal agency, or by a court of competent 
                jurisdiction, in the performance of functions 
                that are transferred under this section; and
                    (B) that were in effect before the 
                effective date of this section, or were final 
                before the effective date of this section and 
                are to become effective on or after the 
                effective date of this section;
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked 
        in accordance with law by the President, the Director 
        of the Institute of Museum and Library Services or 
        other authorized official, a court of competent 
        jurisdiction, or by operation of law.
            (2) Proceedings not affected.--This section shall 
        not affect any proceedings, including notices of 
        proposed rulemaking, or any application for any 
        license, permit, certificate, or financial assistance 
        pending before the Institute of Museum Services on the 
        effective date of this section, with respect to 
        functions transferred by this section. Such proceedings 
        and applications shall be continued. Orders shall be 
        issued in such proceedings, appeals shall be taken from 
        the orders, and payments shall be made pursuant to the 
        orders, as if this section had not been enacted, and 
        orders issued in any such proceedings shall continue in 
        effect until modified, terminated, superseded, or 
        revoked by a duly authorized official, by a court of 
        competent jurisdiction, or by operation of law. Nothing 
        in this paragraph shall be construed to prohibit the 
        discontinuance or modification of any such proceeding 
        under the same terms and conditions and to the same 
        extent that such proceeding could have been 
        discontinued or modified if this section had not been 
        enacted.
            (3) Suits not affected.--This section shall not 
        affect suits commenced before the effective date of 
        this section, and in all such suits, proceedings shall 
        be had, appeals taken, and judgments rendered in the 
        same manner and with the same effect as if this section 
        had not been enacted.
            (4) Nonabatement of actions.--No suit, action, or 
        other proceeding commenced by or against the Institute 
        of Museum Services, or by or against any individual in 
        the official capacity of such individual as an officer 
        of the Institute of Museum Services, shall abate by 
        reason of the enactment of this section.
            (5) Administrative actions relating to promulgation 
        of regulations.--Any administrative action relating to 
        the preparation or promulgation of a regulation by the 
        Institute of Museum Services relating to a function 
        transferred under this section may be continued by the 
        Institute of Museum and Library Services with the same 
        effect as if this section had not been enacted.
    (k) Transition.--The Director of the Institute of Museum 
and Library Services may utilize--
            (1) the services of such officers, employees, and 
        other personnel of the Institute of Museum Services 
        with respect to functions transferred to the Institute 
        of Museum and Library Services by this section; and
            (2) funds appropriated to such functions for such 
        period of time as may reasonably be needed to 
        facilitate the orderly implementation of this section.
    (l) References.--A reference in any other Federal law, 
Executive order, rule, regulation, or delegation of authority, 
or any document of or relating to--
            (1) the Director of the Institute of Museum 
        Services with regard to functions transferred under 
        subsection (b), shall be deemed to refer to the 
        Director of the Institute of Museum and Library 
        Services; and
            (2) the Institute of Museum Services with regard to 
        functions transferred under subsection (b), shall be 
        deemed to refer to the Institute of Museum and Library 
        Services.
    (m) Additional Conforming Amendments.--
            (1) Recommended legislation.--After consultation 
        with the appropriate committees of Congress and the 
        Director of the Office of Management and Budget, the 
        Director of the Institute of Museum and Library 
        Services shall prepare and submit to the appropriate 
        committees of Congress recommended legislation 
        containing technical and conforming amendments to 
        reflect the changes made by this section.
            (2) Submission to congress.--Not later than 6 
        months after the effective date of this section, the 
        Director of the Institute of Museum and Library 
        Services shall submit to the appropriate committees of 
        Congress the recommended legislation referred to under 
        paragraph (1).

SEC. 304. SERVICE OF INDIVIDUALS SERVING ON DATE OF ENACTMENT.

    Notwithstanding section 204 of the Museum and Library 
Services Act, the individual who was appointed to the position 
of Director of the Institute of Museum Services under section 
205 of the Museum Services Act (as such section was in effect 
on the day before the date of enactment of this Act) and who is 
serving in such position on the day before the date of 
enactment of this Act shall serve as the first Director of the 
Institute of Museum and Library Services under section 204 of 
the Museum and Library Services Act (as added by section 301 of 
this title), and shall serve at the pleasure of the President.

SEC. 305. CONSIDERATION.

    Consistent with title 5, United States Code, in appointing 
employees of the Office of Library Services, the Director of 
the Institute of Museum and Library Services shall give strong 
consideration to individuals with experience in administering 
State-based and national library and information services 
programs.

SEC. 306. TRANSITION AND TRANSFER OF FUNDS.

    (a) Transition.--The Director of the Office of Management 
and Budget shall take appropriate measures to ensure an orderly 
transition from the activities previously administered by the 
Director of Library Programs in the Office of Educational 
Research and Improvement in the Department of Education to the 
activities administered by the Institute for Museum and Library 
Services under this title. Such measures may include the 
transfer of appropriated funds.
    (b) Transfer.--The Secretary of Education shall transfer to 
the Director the amount of funds necessary to ensure the 
orderly transition from activities previously administered by 
the Director of the Office of Library Programs in the Office of 
Educational Research and Improvement in the Department of 
Education to the activities administered by the Institute for 
Museum and Library Services. In no event shall the amount of 
funds transferred pursuant to the preceding sentence be less 
than $200,000.

                       TITLE IV--HIGHER EDUCATION

SEC. 401. REORGANIZATION OF THE STUDENT LOAN MARKETING ASSOCIATION 
                    THROUGH THE FORMATION OF A HOLDING COMPANY.

    (a) Amendment.--Part B of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1071 et seq.) is amended by inserting 
after section 439 (20 U.S.C. 1087-2) the following new section:

``SEC. 440. REORGANIZATION OF THE STUDENT LOAN MARKETING ASSOCIATION 
                    THROUGH THE FORMATION OF A HOLDING COMPANY.

    ``(a) Actions by the Association's Board of Directors.--The 
Board of Directors of the Association shall take or cause to be 
taken all such action as the Board of Directors deems necessary 
or appropriate to effect, upon the shareholder approval 
described in subsection (b), a restructuring of the common 
stock ownership of the Association, as set forth in a plan of 
reorganization adopted by the Board of Directors (the terms of 
which shall be consistent with this section) so that all of the 
outstanding common shares of the Association shall be directly 
owned by a Holding Company. Such actions may include, in the 
Board of Director's discretion, a merger of a wholly owned 
subsidiary of the Holding Company with and into the 
Association, which would have the effect provided in the plan 
of reorganization and the law of the jurisdiction in which such 
subsidiary is incorporated. As part of the restructuring, the 
Board of Directors may cause--
            ``(1) the common shares of the Association to be 
        converted, on the reorganization effective date, to 
        common shares of the Holding Company on a one for one 
        basis, consistent with applicable State or District of 
        Columbia law; and
            ``(2) Holding Company common shares to be 
        registered with the Securities and Exchange Commission.
    ``(b) Shareholder Approval.--The plan of reorganization 
adopted by the Board of Directors pursuant to subsection (a) 
shall be submitted to common shareholders of the Association 
for their approval. The reorganization shall occur on the 
reorganization effective date, provided that the plan of 
reorganization has been approved by the affirmative votes, cast 
in person or by proxy, of the holders of a majority of the 
issued and outstanding shares of the Association common stock.
    ``(c) Transition.--In the event the shareholders of the 
Association approve the plan of reorganization under subsection 
(b), the following provisions shall apply beginning on the 
reorganization effective date:
            ``(1) In general.--Except as specifically provided 
        in this section, until the dissolution date the 
        Association shall continue to have all of the rights, 
        privileges and obligations set forth in, and shall be 
        subject to all of the limitations and restrictions of, 
        section 439, and the Association shall continue to 
        carry out the purposes of such section. The Holding 
        Company and any subsidiary of the Holding Company 
        (other than the Association) shall not be entitled to 
        any of the rights, privileges, and obligations, and 
        shall not be subject to the limitations and 
        restrictions, applicable to the Association under 
        section 439, except as specifically provided in this 
        section. The Holding Company and any subsidiary of the 
        Holding Company (other than the Association or a 
        subsidiary of the Association) shall not purchase loans 
        insured under this Act until such time as the 
        Association ceases acquiring such loans, except that 
        the Holding Company may purchase such loans if the 
        Association is merely continuing to acquire loans as a 
        lender of last resort pursuant to section 439(q) or 
        under an agreement with the Secretary described in 
        paragraph (6).
            ``(2) Transfer of certain property.--
                    ``(A) In general.--Except as provided in 
                this section, on the reorganization effective 
                date or as soon as practicable thereafter, the 
                Association shall use the Association's best 
                efforts to transfer to the Holding Company or 
                any subsidiary of the Holding Company (or 
                both), as directed by the Holding Company, all 
                real and personal property of the Association 
                (both tangible and intangible) other than the 
                remaining property. Subject to the preceding 
                sentence, such transferred property shall 
                include all right, title, and interest in--
                            ``(i) direct or indirect 
                        subsidiaries of the Association 
                        (excluding special purpose funding 
                        companies in existence on the date of 
                        enactment of this section and any 
                        interest in any government-sponsored 
                        enterprise);
                            ``(ii) contracts, leases, and other 
                        agreements of the Association;
                            ``(iii) licenses and other 
                        intellectual property of the 
                        Association; and
                            ``(iv) any other property of the 
                        Association.
                    ``(B) Construction.--Nothing in this 
                paragraph shall be construed to prohibit the 
                Association from transferring remaining 
                property from time to time to the Holding 
                Company or any subsidiary of the Holding 
                Company, subject to the provisions of paragraph 
                (4).
            ``(3) Transfer of personnel.--On the reorganization 
        effective date, employees of the Association shall 
        become employees of the Holding Company (or any 
        subsidiary of the Holding Company), and the Holding 
        Company (or any subsidiary of the Holding Company) 
        shall provide all necessary and appropriate management 
        and operational support (including loan servicing) to 
        the Association, as requested by the Association. The 
        Association, however, may obtain such management and 
        operational support from persons or entities not 
        associated with the Holding Company.
            ``(4) Dividends.--The Association may pay dividends 
        in the form of cash or noncash distributions so long as 
        at the time of the declaration of such dividends, after 
        giving effect to the payment of such dividends as of 
        the date of such declaration by the Board of Directors 
        of the Association, the Association's capital would be 
        in compliance with the capital standards and 
        requirements set forth in section 439(r). If, at any 
        time after the reorganization effective date, the 
        Association fails to comply with such capital 
        standards, the Holding Company shall transfer to the 
        Association additional capital in such amounts as are 
        necessary to ensure that the Association again complies 
        with the capital standards.
            ``(5) Certification prior to dividend.--Prior to 
        any such distribution, the Association shall certify to 
        the Secretary of the Treasury that the payment of the 
        dividend will be made in compliance with this paragraph 
        and shall provide copies of all calculations needed to 
        make such certification.
            ``(6) Restrictions on new business activity or 
        acquisition of assets by association.--
                    ``(A) In general.--After the reorganization 
                effective date, the Association shall not 
                engage in any new business activities or 
                acquire any additional program assets described 
                in section 439(d) other than in connection 
                with--
                            ``(i) student loan purchases 
                        through September 30, 2007;
                            ``(ii) contractual commitments for 
                        future warehousing advances, or 
                        pursuant to letters of credit or 
                        standby bond purchase agreements, which 
                        are outstanding as of the 
                        reorganization effective date;
                            ``(iii) the Association serving as 
                        a lender-of-last-resort pursuant to 
                        section 439(q); and
                            ``(iv) the Association's purchase 
                        of loans insured under this part, if 
                        the Secretary, with the approval of the 
                        Secretary of the Treasury, enters into 
                        an agreement with the Association for 
                        the continuation or resumption of the 
                        Association's secondary market purchase 
                        program because the Secretary 
                        determines there is inadequate 
                        liquidity for loans made under this 
                        part.
                    ``(B) Agreement.--The Secretary is 
                authorized to enter into an agreement described 
                in clause (iii) of subparagraph (A) with the 
                Association covering such secondary market 
                activities. Any agreement entered into under 
                such clause shall cover a period of 12 months, 
                but may be renewed if the Secretary determines 
                that liquidity remains inadequate. The fee 
                provided under section 439(h)(7) shall not 
                apply to loans acquired under any such 
                agreement with the Secretary.
            ``(7) Issuance of debt obligations during the 
        transition period; attributes of debt obligations.--
        After the reorganization effective date, the 
        Association shall not issue debt obligations which 
        mature later than September 30, 2008, except in 
        connection with serving as a lender-of-last-resort 
        pursuant to section 439(q) or with purchasing loans 
        under an agreement with the Secretary as described in 
        paragraph (6). Nothing in this section shall modify the 
        attributes accorded the debt obligations of the 
        Association by section 439, regardless of whether such 
        debt obligations are incurred prior to, or at any time 
        following, the reorganization effective date or are 
        transferred to a trust in accordance with subsection 
        (d).
            ``(8) Monitoring of safety and soundness.--
                    ``(A) Obligation to obtain, maintain, and 
                report information.--The Association shall 
                obtain such information and make and keep such 
                records as the Secretary of the Treasury may 
                from time to time prescribe concerning--
                            ``(i) the financial risk to the 
                        Association resulting from the 
                        activities of any associated person, to 
                        the extent such activities are 
                        reasonably likely to have a material 
                        impact on the financial condition of 
                        the Association, including the 
                        Association's capital ratio, the 
                        Association's liquidity, or the 
                        Association's ability to conduct and 
                        finance the Association's operations; 
                        and
                            ``(ii) the Association's policies, 
                        procedures, and systems for monitoring 
                        and controlling any such financial 
                        risk.
                    ``(B) Summary reports.--The Secretary of 
                the Treasury may require summary reports of the 
                information described in subparagraph (A) to be 
                filed no more frequently than quarterly. If, as 
                a result of adverse market conditions or based 
                on reports provided pursuant to this 
                subparagraph or other available information, 
                the Secretary of the Treasury has concerns 
                regarding the financial or operational 
                condition of the Association, the Secretary of 
                the Treasury may, notwithstanding the preceding 
                sentence and subparagraph (A), require the 
                Association to make reports concerning the 
                activities of any associated person whose 
                business activities are reasonably likely to 
                have a material impact on the financial or 
                operational condition of the Association.
                    ``(C) Separate operation of corporations.--
                            ``(i) In general.--The funds and 
                        assets of the Association shall at all 
                        times be maintained separately from the 
                        funds and assets of the Holding Company 
                        or any subsidiary of the Holding 
                        Company and may be used by the 
                        Association solely to carry out the 
                        Association's purposes and to fulfill 
                        the Association's obligations.
                            ``(ii) Books and records.--The 
                        Association shall maintain books and 
                        records that clearly reflect the assets 
                        and liabilities of the Association, 
                        separate from the assets and 
                        liabilities of the Holding Company or 
                        any subsidiary of the Holding Company.
                            ``(iii) Corporate office.--The 
                        Association shall maintain a corporate 
                        office that is physically separate from 
                        any office of the Holding Company or 
                        any subsidiary of the Holding Company.
                            ``(iv) Director.--No director of 
                        the Association who is appointed by the 
                        President pursuant to section 
                        439(c)(1)(A) may serve as a director of 
                        the Holding Company.
                            ``(v) One officer requirement.--At 
                        least one officer of the Association 
                        shall be an officer solely of the 
                        Association.
                            ``(vi) Transactions.--Transactions 
                        between the Association and the Holding 
                        Company or any subsidiary of the 
                        Holding Company, including any loan 
                        servicing arrangements, shall be on 
                        terms no less favorable to the 
                        Association than the Association could 
                        obtain from an unrelated third party 
                        offering comparable services.
                            ``(vii) Credit prohibition.--The 
                        Association shall not extend credit to 
                        the Holding Company or any subsidiary 
                        of the Holding Company nor guarantee or 
                        provide any credit enhancement to any 
                        debt obligations of the Holding Company 
                        or any subsidiary of the Holding 
                        Company.
                            ``(viii) Amounts collected.--Any 
                        amounts collected on behalf of the 
                        Association by the Holding Company or 
                        any subsidiary of the Holding Company 
                        with respect to the assets of the 
                        Association, pursuant to a servicing 
                        contract or other arrangement between 
                        the Association and the Holding Company 
                        or any subsidiary of the Holding 
                        Company, shall be collected solely for 
                        the benefit of the Association and 
                        shall be immediately deposited by the 
                        Holding Company or such subsidiary to 
                        an account under the sole control of 
                        the Association.
                    ``(D) Encumbrance of assets.--
                Notwithstanding any Federal or State law, rule, 
                or regulation, or legal or equitable principle, 
                doctrine, or theory to the contrary, under no 
                circumstances shall the assets of the 
                Association be available or used to pay claims 
                or debts of or incurred by the Holding Company. 
                Nothing in this subparagraph shall be construed 
                to limit the right of the Association to pay 
                dividends not otherwise prohibited under this 
                subparagraph or to limit any liability of the 
                Holding Company explicitly provided for in this 
                section.
                    ``(E) Holding company activities.--After 
                the reorganization effective date and prior to 
                the dissolution date, all business activities 
                of the Holding Company shall be conducted 
                through subsidiaries of the Holding Company.
                    ``(F) Confidentiality.--Any information 
                provided by the Association pursuant to this 
                section shall be subject to the same 
                confidentiality obligations contained in 
                section 439(r)(12).
                    ``(G) Definition.--For purposes of this 
                paragraph, the term `associated person' means 
                any person, other than a natural person, who is 
                directly or indirectly controlling, controlled 
                by, or under common control with, the 
                Association.
            ``(9) Issuance of stock warrants.--On the 
        reorganization effective date, the Holding Company 
        shall issue to the Secretary of the Treasury a number 
        of stock warrants that is equal to one percent of the 
        outstanding shares of the Association, determined as of 
        the last day of the fiscal quarter preceding the date 
        of enactment of this section, with each stock warrant 
        entitling the holder of the stock warrant to purchase 
        from the Holding Company one share of the registered 
        common stock of the Holding Company or the Holding 
        Company's successors or assigns, at any time on or 
        before September 30, 2008. The exercise price for such 
        warrants shall be an amount equal to the average 
        closing price of the common stock of the Association 
        for the 20 business days prior to the date of enactment 
        of this section on the exchange or market which is then 
        the primary exchange or market for the common stock of 
        the Association. The number of shares of Holding 
        Company common stock subject to each warrant and the 
        exercise price of each warrant shall be adjusted as 
        necessary to reflect--
                    ``(A) the conversion of Association common 
                stock into Holding Company common stock as part 
                of the plan of reorganization approved by the 
                Association's shareholders; and
                    ``(B) any issuance or sale of stock 
                (including issuance or sale of treasury stock), 
                stock split, recapitalization, reorganization, 
                or other corporate event, if agreed to by the 
                Secretary of the Treasury and the Association.
            ``(10) Restrictions on transfer of association 
        shares and bankruptcy of association.--After the 
        reorganization effective date, the Holding Company 
        shall not sell, pledge, or otherwise transfer the 
        outstanding shares of the Association, or agree to or 
        cause the liquidation of the Association or cause the 
        Association to file a petition for bankruptcy under 
        title 11, United States Code, without prior approval of 
        the Secretary of the Treasury and the Secretary of 
        Education.
    ``(d) Termination of the Association.--In the event the 
shareholders of the Association approve a plan of 
reorganization under subsection (b), the Association shall 
dissolve, and the Association's separate existence shall 
terminate on September 30, 2008, after discharge of all 
outstanding debt obligations and liquidation pursuant to this 
subsection. The Association may dissolve pursuant to this 
subsection prior to such date by notifying the Secretary of 
Education and the Secretary of the Treasury of the 
Association's intention to dissolve, unless within 60 days 
after receipt of such notice the Secretary of Education 
notifies the Association that the Association continues to be 
needed to serve as a lender of last resort pursuant to section 
439(q) or continues to be needed to purchase loans under an 
agreement with the Secretary described in paragraph (6). On the 
dissolution date, the Association shall take the following 
actions:
            ``(1) Establishment of a trust.--The Association 
        shall, under the terms of an irrevocable trust 
        agreement that is in form and substance satisfactory to 
        the Secretary of the Treasury, the Association and the 
        appointed trustee, irrevocably transfer all remaining 
        obligations of the Association to the trust and 
        irrevocably deposit or cause to be deposited into such 
        trust, to be held as trust funds solely for the benefit 
        of holders of the remaining obligations, money or 
        direct noncallable obligations of the United States or 
        any agency thereof for which payment the full faith and 
        credit of the United States is pledged, maturing as to 
        principal and interest in such amounts and at such 
        times as are determined by the Secretary of the 
        Treasury to be sufficient, without consideration of any 
        significant reinvestment of such interest, to pay the 
        principal of, and interest on, the remaining 
        obligations in accordance with their terms. To the 
        extent the Association cannot provide money or 
        qualifying obligations in the amount required, the 
        Holding Company shall be required to transfer money or 
        qualifying obligations to the trust in the amount 
        necessary to prevent any deficiency.
            ``(2) Use of trust assets.--All money, obligations, 
        or financial assets deposited into the trust pursuant 
        to this subsection shall be applied by the trustee to 
        the payment of the remaining obligations assumed by the 
        trust.
            ``(3) Obligations not transferred to the trust.--
        The Association shall make proper provision for all 
        other obligations of the Association not transferred to 
        the trust, including the repurchase or redemption, or 
        the making of proper provision for the repurchase or 
        redemption, of any preferred stock of the Association 
        outstanding. Any obligations of the Association which 
        cannot be fully satisfied shall become liabilities of 
        the Holding Company as of the date of dissolution.
            ``(4) Transfer of remaining assets.--After 
        compliance with paragraphs (1) and (3), any remaining 
        assets of the trust shall be transferred to the Holding 
        Company or any subsidiary of the Holding Company, as 
        directed by the Holding Company.
    ``(e) Operation of the Holding Company.--In the event the 
shareholders of the Association approve the plan of 
reorganization under subsection (b), the following provisions 
shall apply beginning on the reorganization effective date:
            ``(1) Holding company board of directors.--The 
        number of members and composition of the Board of 
        Directors of the Holding Company shall be determined as 
        set forth in the Holding Company's charter or like 
        instrument (as amended from time to time) or bylaws (as 
        amended from time to time) and as permitted under the 
        laws of the jurisdiction of the Holding Company's 
        incorporation.
            ``(2) Holding company name.--The names of the 
        Holding Company and any subsidiary of the Holding 
        Company (other than the Association)--
                    ``(A) may not contain the name `Student 
                Loan Marketing Association'; and
                    ``(B) may contain, to the extent permitted 
                by applicable State or District of Columbia 
                law, `Sallie Mae' or variations thereof, or 
                such other names as the Board of Directors of 
                the Association or the Holding Company deems 
                appropriate.
            ``(3) Use of sallie mae name.--Subject to paragraph 
        (2), the Association may assign to the Holding Company, 
        or any subsidiary of the Holding Company, the `Sallie 
        Mae' name as a trademark and service mark, except that 
        neither the Holding Company nor any subsidiary of the 
        Holding Company (other than the Association or any 
        subsidiary of the Association) may use the `Sallie Mae' 
        name on, or to identify the issuer of, any debt 
        obligation or other security offered or sold by the 
        Holding Company or any subsidiary of the Holding 
        Company (other than a debt obligation or other security 
        issued to the Holding Company or any subsidiary of the 
        Holding Company). The Association shall remit to the 
        Secretary of the Treasury $5,000,000 within 60 days of 
        the reorganization effective date as compensation for 
        the right to assign such trademark or service mark.
            ``(4) Disclosure required.--Until 3 years after the 
        dissolution date, the Holding Company, and any 
        subsidiary of the Holding Company (other than the 
        Association), shall prominently display--
                    ``(A) in any document offering the Holding 
                Company's securities, a statement that the 
                obligations of the Holding Company and any 
                subsidiary of the Holding Company are not 
                guaranteed by the full faith and credit of the 
                United States; and
                    ``(B) in any advertisement or promotional 
                materials which use the `Sallie Mae' name or 
                mark, a statement that neither the Holding 
                Company nor any subsidiary of the Holding 
                Company is a government-sponsored enterprise or 
                instrumentality of the United States.
    ``(f) Strict Construction.--Except as specifically set 
forth in this section, nothing in this section shall be 
construed to limit the authority of the Association as a 
federally chartered corporation, or of the Holding Company as a 
State or District of Columbia chartered corporation.
    ``(g) Right To Enforce.--The Secretary of Education or the 
Secretary of the Treasury, as appropriate, may request that the 
Attorney General bring an action in the United States District 
Court for the District of Columbia for the enforcement of any 
provision of this section, or may, under the direction or 
control of the Attorney General, bring such an action. Such 
court shall have jurisdiction and power to order and require 
compliance with this section.
    ``(h) Deadline for Reorganization Effective Date.--This 
section shall be of no further force and effect in the event 
that the reorganization effective date does not occur on or 
before 18 months after the date of enactment of this section.
    ``(i) Definitions.--For purposes of this section:
            ``(1) Association.--The term `Association' means 
        the Student Loan Marketing Association.
            ``(2) Dissolution date.--The term `dissolution 
        date' means September 30, 2008, or such earlier date as 
        the Secretary of Education permits the transfer of 
        remaining obligations in accordance with subsection 
        (d).
            ``(3) Holding company.--The term `Holding Company' 
        means the new business corporation established pursuant 
        to this section by the Association under the laws of 
        any State of the United States or the District of 
        Columbia for the purposes of the reorganization and 
        restructuring described in subsection (a).
            ``(4) Remaining obligations.--The term `remaining 
        obligations' means the debt obligations of the 
        Association outstanding as of the dissolution date.
            ``(5) Remaining property.--The term `remaining 
        property' means the following assets and liabilities of 
        the Association which are outstanding as of the 
        reorganization effective date:
                    ``(A) Debt obligations issued by the 
                Association.
                    ``(B) Contracts relating to interest rate, 
                currency, or commodity positions or 
                protections.
                    ``(C) Investment securities owned by the 
                Association.
                    ``(D) Any instruments, assets, or 
                agreements described in section 439(d) 
                (including, without limitation, all student 
                loans and agreements relating to the purchase 
                and sale of student loans, forward purchase and 
                lending commitments, warehousing advances, 
                academic facilities obligations, letters of 
                credit, standby bond purchase agreements, 
                liquidity agreements, and student loan revenue 
                bonds or other loans).
                    ``(E) Except as specifically prohibited by 
                this section or section 439, any other 
                nonmaterial assets or liabilities of the 
                Association which the Association's Board of 
                Directors determines to be necessary or 
                appropriate to the Association's operations.
            ``(6) Reorganization.--The term `reorganization' 
        means the restructuring event or events (including any 
        merger event) giving effect to the Holding Company 
        structure described in subsection (a).
            ``(7) Reorganization effective date.--The term 
        `reorganization effective date' means the effective 
        date of the reorganization as determined by the Board 
        of Directors of the Association, which shall not be 
        earlier than the date that shareholder approval is 
        obtained pursuant to subsection (b) and shall not be 
        later than the date that is 18 months after the date of 
        enactment of this section.
            ``(8) Subsidiary.--The term `subsidiary' includes 
        one or more direct or indirect subsidiaries.''.
    (b) Technical Amendments.--
            (1) Eligible lender.--
                    (A) Amendments to the higher education 
                act.--
                            (i) Definition of eligible 
                        lender.--Section 435(d)(1)(F) of the 
                        Higher Education Act of 1965 (20 U.S.C. 
                        1085(d)(1)(F)) is amended by inserting 
                        after ``Student Loan Marketing 
                        Association'' the following: ``or the 
                        Holding Company of the Student Loan 
                        Marketing Association, including any 
                        subsidiary of the Holding Company, 
                        created pursuant to section 440,''.
                            (ii) Definition of eligible lender 
                        and federal consolidation loans.--
                        Sections 435(d)(1)(G) and 428C(a)(1)(A) 
                        of such Act (20 U.S.C. 1085(d)(1)(G) 
                        and 1078-3(a)(1)(A)) are each amended 
                        by inserting after ``Student Loan 
                        Marketing Association'' the following: 
                        ``or the Holding Company of the Student 
                        Loan Marketing Association, including 
                        any subsidiary of the Holding Company, 
                        created pursuant to section 440''.
                    (B) Effective date.--The amendments made by 
                this paragraph shall take effect on the 
                reorganization effective date as defined in 
                section 440(h) of the Higher Education Act of 
                1965 (as added by subsection (a)).
            (2) Enforcement of safety and soundness 
        requirements.--Section 439(r) of the Higher Education 
        Act of 1965 (20 U.S.C. 1087-2(r)) is amended--
                    (A) in the first sentence of paragraph 
                (12), by inserting ``or the Association's 
                associated persons'' after ``by the 
                Association'';
                    (B) by redesignating paragraph (13) as 
                paragraph (15); and
                    (C) by inserting after paragraph (12) the 
                following new paragraph:
            ``(13) Enforcement of safety and soundness 
        requirements.--The Secretary of Education or the 
        Secretary of the Treasury, as appropriate, may request 
        that the Attorney General bring an action in the United 
        States District Court for the District of Columbia for 
        the enforcement of any provision of this section, or 
        may, under the direction or control of the Attorney 
        General, bring such an action. Such court shall have 
        jurisdiction and power to order and require compliance 
        with this section.''.
            (3) Financial safety and soundness.--Section 439(r) 
        of the Higher Education Act of 1965 (20 U.S.C. 1087-
        2(r)) is further amended--
                    (A) in paragraph (1)--
                            (i) by striking ``and'' at the end 
                        of subparagraph (A);
                            (ii) by striking the period at the 
                        end of subparagraph (B) and inserting 
                        ``; and''; and
                            (iii) by adding at the end the 
                        following new subparagraph:
                    ``(C)(i) financial statements of the 
                Association within 45 days of the end of each 
                fiscal quarter; and
                    ``(ii) reports setting forth the 
                calculation of the capital ratio of the 
                Association within 45 days of the end of each 
                fiscal quarter.'';
                    (B) in paragraph (2)--
                            (i) by striking clauses (i) and 
                        (ii) of subparagraph (A) and inserting 
                        the following:
                    ``(i) appoint auditors or examiners to 
                conduct audits of the Association from time to 
                time to determine the condition of the 
                Association for the purpose of assessing the 
                Association's financial safety and soundness 
                and to determine whether the requirements of 
                this section and section 440 are being met; and
                    ``(ii) obtain the services of such experts 
                as the Secretary of the Treasury determines 
                necessary and appropriate, as authorized by 
                section 3109 of title 5, United States Code, to 
                assist in determining the condition of the 
                Association for the purpose of assessing the 
                Association's financial safety and soundness, 
                and to determine whether the requirements of 
                this section and section 440 are being met.''; 
                and
                            (ii) by adding at the end the 
                        following new subparagraph:
            ``(D) Annual assessment.--
                    ``(i) In general.--For each fiscal year 
                beginning on or after October 1, 1996, the 
                Secretary of the Treasury may establish and 
                collect from the Association an assessment (or 
                assessments) in amounts sufficient to provide 
                for reasonable costs and expenses of carrying 
                out the duties of the Secretary of the Treasury 
                under this section and section 440 during such 
                fiscal year. In no event may the total amount 
                so assessed exceed, for any fiscal year, 
                $800,000, adjusted for each fiscal year ending 
                after September 30, 1997, by the ratio of the 
                Consumer Price Index for All Urban Consumers 
                (issued by the Bureau of Labor Statistics) for 
                the final month of the fiscal year preceding 
                the fiscal year for which the assessment is 
                made to the Consumer Price Index for All Urban 
                Consumers for September 1997.
                    ``(ii) Deposit.--Amounts collected from 
                assessments under this subparagraph shall be 
                deposited in an account within the Treasury of 
                the United States as designated by the 
                Secretary of the Treasury and shall remain 
                available subject to amounts specified in 
                appropriations Acts to carry out the duties of 
                the Secretary of the Treasury under this 
                subsection and section 440.'';
                    (C) in paragraph (11), by striking 
                ``paragraphs (4) and (6)(A)'' and inserting 
                ``paragraphs (4), (6)(A), and (14)''; and
                    (D) by inserting after paragraph (13) (as 
                added by paragraph (2)(C)) the following new 
                paragraph:
            ``(14) Actions by secretary.--
                    ``(A) In general.--For any fiscal quarter 
                ending after January 1, 2000, the Association 
                shall have a capital ratio of at least 2.25 
                percent. The Secretary of the Treasury may, 
                whenever such capital ratio is not met, take 
                any one or more of the actions described in 
                paragraph (7), except that--
                            ``(i) the capital ratio to be 
                        restored pursuant to paragraph (7)(D) 
                        shall be 2.25 percent; and
                            ``(ii) if the relevant capital 
                        ratio is in excess of or equal to 2 
                        percent for such quarter, the Secretary 
                        of the Treasury shall defer taking any 
                        of the actions set forth in paragraph 
                        (7) until the next succeeding quarter 
                        and may then proceed with any such 
                        action only if the capital ratio of the 
                        Association remains below 2.25 percent.
                    ``(B) Applicability.--The provisions of 
                paragraphs (4), (5), (6), (8), (9), (10), and 
                (11) shall be of no further application to the 
                Association for any period after January 1, 
                2000.''.
            (4) Information required; dividends.--Section 
        439(r) of the Higher Education Act of 1965 (20 U.S.C. 
        1087-2(r)) is further amended--
                    (A) by adding at the end of paragraph (2) 
                (as amended in paragraph (3)(B)(ii)) the 
                following new subparagraph:
            ``(E) Obligation to obtain, maintain, and report 
        information.--
                    ``(i) In general.--The Association shall 
                obtain such information and make and keep such 
                records as the Secretary of the Treasury may 
                from time to time prescribe concerning--
                            ``(I) the financial risk to the 
                        Association resulting from the 
                        activities of any associated person, to 
                        the extent such activities are 
                        reasonably likely to have a material 
                        impact on the financial condition of 
                        the Association, including the 
                        Association's capital ratio, the 
                        Association's liquidity, or the 
                        Association's ability to conduct and 
                        finance the Association's operations; 
                        and
                            ``(II) the Association's policies, 
                        procedures, and systems for monitoring 
                        and controlling any such financial 
                        risk.
                    ``(ii) Summary reports.--The Secretary of 
                the Treasury may require summary reports of 
                such information to be filed no more frequently 
                than quarterly. If, as a result of adverse 
                market conditions or based on reports provided 
                pursuant to this subparagraph or other 
                available information, the Secretary of the 
                Treasury has concerns regarding the financial 
                or operational condition of the Association, 
                the Secretary of the Treasury may, 
                notwithstanding the preceding sentence and 
                clause (i), require the Association to make 
                reports concerning the activities of any 
                associated person, whose business activities 
                are reasonably likely to have a material impact 
                on the financial or operational condition of 
                the Association.
                    ``(iii) Definition.--For purposes of this 
                subparagraph, the term `associated person' 
                means any person, other than a natural person, 
                directly or indirectly controlling, controlled 
                by, or under common control with the 
                Association.''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(16) Dividends.--The Association may pay 
        dividends in the form of cash or noncash distributions 
        so long as at the time of the declaration of such 
        dividends, after giving effect to the payment of such 
        dividends as of the date of such declaration by the 
        Board of Directors of the Association, the 
        Association's capital would be in compliance with the 
        capital standards set forth in this section.''.
    (c) Sunset of the Association's Charter if No 
Reorganization Plan Occurs.--Section 439 of the Higher 
Education Act of 1965 (20 U.S.C. 1087-2) is amended by adding 
at the end the following new subsections:
    ``(s) Charter Sunset.--
            ``(1) Application of provisions.--This subsection 
        applies beginning 18 months and one day after the date 
        of enactment of this subsection if no reorganization of 
        the Association occurs in accordance with the 
        provisions of section 440.
            ``(2) Sunset plan.--
                    ``(A) Plan submission by the association.--
                Not later than July 1, 2007, the Association 
                shall submit to the Secretary of the Treasury 
                and to the Chairman and Ranking Member of the 
                Committee on Labor and Human Resources of the 
                Senate and the Chairman and Ranking Member of 
                the Committee on Economic and Educational 
                Opportunities of the House of Representatives, 
                a detailed plan for the orderly winding up, by 
                July 1, 2013, of business activities conducted 
                pursuant to the charter set forth in this 
                section. Such plan shall--
                            ``(i) ensure that the Association 
                        will have adequate assets to transfer 
                        to a trust, as provided in this 
                        subsection, to ensure full payment of 
                        remaining obligations of the 
                        Association in accordance with the 
                        terms of such obligations;
                            ``(ii) provide that all assets not 
                        used to pay liabilities shall be 
                        distributed to shareholders as provided 
                        in this subsection; and
                            ``(iii) provide that the operations 
                        of the Association shall remain 
                        separate and distinct from that of any 
                        entity to which the assets of the 
                        Association are transferred.
                    ``(B) Amendment of the plan by the 
                association.--The Association shall from time 
                to time amend such plan to reflect changed 
                circumstances, and submit such amendments to 
                the Secretary of the Treasury and to the 
                Chairman and Ranking Minority Member of the 
                Committee on Labor and Human Resources of the 
                Senate and Chairman and Ranking Minority Member 
                of the Committee on Economic and Educational 
                Opportunities of the House of Representatives. 
                In no case may any amendment extend the date 
                for full implementation of the plan beyond the 
                dissolution date provided in paragraph (3).
                    ``(C) Plan monitoring.--The Secretary shall 
                monitor the Association's compliance with the 
                plan and shall continue to review the plan 
                (including any amendments thereto).
                    ``(D) Amendment of the plan by the 
                secretary of the treasury.--The Secretary of 
                the Treasury may require the Association to 
                amend the plan (including any amendments to the 
                plan), if the Secretary of the Treasury deems 
                such amendments necessary to ensure full 
                payment of all obligations of the Association.
                    ``(E) Implementation by the association.--
                The Association shall promptly implement the 
                plan (including any amendments to the plan, 
                whether such amendments are made by the 
                Association or are required to be made by the 
                Secretary of the Treasury).
            ``(3) Dissolution of the association.--The 
        Association shall dissolve and the Association's 
        separate existence shall terminate on July 1, 2013, 
        after discharge of all outstanding debt obligations and 
        liquidation pursuant to this subsection. The 
        Association may dissolve pursuant to this subsection 
        prior to such date by notifying the Secretary of 
        Education and the Secretary of the Treasury of the 
        Association's intention to dissolve, unless within 60 
        days of receipt of such notice the Secretary of 
        Education notifies the Association that the Association 
        continues to be needed to serve as a lender of last 
        resort pursuant to subsection (q) or continues to be 
        needed to purchase loans under an agreement with the 
        Secretary described in paragraph (4)(A). On the 
        dissolution date, the Association shall take the 
        following actions:
                    ``(A) Establishment of a trust.--The 
                Association shall, under the terms of an 
                irrevocable trust agreement in form and 
                substance satisfactory to the Secretary of the 
                Treasury, the Association, and the appointed 
                trustee, irrevocably transfer all remaining 
                obligations of the Association to a trust and 
                irrevocably deposit or cause to be deposited 
                into such trust, to be held as trust funds 
                solely for the benefit of holders of the 
                remaining obligations, money or direct 
                noncallable obligations of the United States or 
                any agency thereof for which payment the full 
                faith and credit of the United States is 
                pledged, maturing as to principal and interest 
                in such amounts and at such times as are 
                determined by the Secretary of the Treasury to 
                be sufficient, without consideration of any 
                significant reinvestment of such interest to 
                pay the principal of, and interest on, the 
                remaining obligations in accordance with their 
                terms.
                    ``(B) Use of trust assets.--All money, 
                obligations, or financial assets deposited into 
                the trust pursuant to this subsection shall be 
                applied by the trustee to the payment of the 
                remaining obligations assumed by the trust. 
                Upon the fulfillment of the trustee's duties 
                under the trust, any remaining assets of the 
                trust shall be transferred to the persons who, 
                at the time of the dissolution, were the 
                shareholders of the Association, or to the 
                legal successors or assigns of such persons.
                    ``(C) Obligations not transferred to the 
                trust.--The Association shall make proper 
                provision for all other obligations of the 
                Association, including the repurchase or 
                redemption, or the making of proper provision 
                for the repurchase or redemption, of any 
                preferred stock of the Association outstanding.
                    ``(D) Transfer of remaining assets.--After 
                compliance with subparagraphs (A) and (C), the 
                Association shall transfer to the shareholders 
                of the Association any remaining assets of the 
                Association.
            ``(4) Restrictions relating to winding up.--
                    ``(A) Restrictions on new business activity 
                or acquisition of assets by the association.--
                            ``(i) In general.--Beginning on 
                        July 1, 2009, the Association shall not 
                        engage in any new business activities 
                        or acquire any additional program 
                        assets (including acquiring assets 
                        pursuant to contractual commitments) 
                        described in subsection (d) other than 
                        in connection with the Association--
                                    ``(I) serving as a lender 
                                of last resort pursuant to 
                                subsection (q); and
                                    ``(II) purchasing loans 
                                insured under this part, if the 
                                Secretary, with the approval of 
                                the Secretary of the Treasury, 
                                enters into an agreement with 
                                the Association for the 
                                continuation or resumption of 
                                the Association's secondary 
                                market purchase program because 
                                the Secretary determines there 
                                is inadequate liquidity for 
                                loans made under this part.
                            ``(ii) Agreement.--The Secretary is 
                        authorized to enter into an agreement 
                        described in subclause (II) of clause 
                        (i) with the Association covering such 
                        secondary market activities. Any 
                        agreement entered into under such 
                        subclause shall cover a period of 12 
                        months, but may be renewed if the 
                        Secretary determines that liquidity 
                        remains inadequate. The fee provided 
                        under subsection (h)(7) shall not apply 
                        to loans acquired under any such 
                        agreement with the Secretary.
                    ``(B) Issuance of debt obligations during 
                the wind up period; attributes of debt 
                obligations.--The Association shall not issue 
                debt obligations which mature later than July 
                1, 2013, except in connection with serving as a 
                lender of last resort pursuant to subsection 
                (q) or with purchasing loans under an agreement 
                with the Secretary as described in subparagraph 
                (A). Nothing in this subsection shall modify 
                the attributes accorded the debt obligations of 
                the Association by this section, regardless of 
                whether such debt obligations are transferred 
                to a trust in accordance with paragraph (3).
                    ``(C) Use of association name.--The 
                Association may not transfer or permit the use 
                of the name `Student Loan Marketing 
                Association', `Sallie Mae', or any variation 
                thereof, to or by any entity other than a 
                subsidiary of the Association.''.
    (d) Repeals.--
            (1) In general.--Sections 439 of the Higher 
        Education Act of 1965 (20 U.S.C. 1087-2) and 440 of 
        such Act (as added by subsection (a) of this section) 
        are repealed.
            (2) Effective date.--The repeals made by paragraph 
        (1) shall be effective one year after--
                    (A) the dissolution date, as such term is 
                defined in section 440(i)(2) of the Higher 
                Education Act of 1965 (as added by subsection 
                (a)), if a reorganization occurs in accordance 
                with section 440 of such Act; or
                    (B) the date the Association is dissolved 
                pursuant to section 439(s) of such Act (as 
                added by subsection (c)), if a reorganization 
                does not occur in accordance with section 440 
                of such Act.
    (e) Association Names.--Upon dissolution in accordance with 
section 439 of the Higher Education Act of 1965 (20 U.S.C. 
1087-2), the names ``Student Loan Marketing Association'', 
``Sallie Mae'', and any variations thereof may not be used by 
any entity engaged in any business similar to the business 
conducted pursuant to section 439 of such Act (as such section 
was in effect on the date of enactment of this Act) without the 
approval of the Secretary of the Treasury.

SEC. 402. CONNIE LEE PRIVATIZATION.

    (a) Status of the Corporation and Corporate Powers; 
Obligations Not Federally Guaranteed.--
            (1) Status of the corporation.--The Corporation 
        shall not be an agency, instrumentality, or 
        establishment of the United States Government, nor a 
        Government corporation, nor a Government controlled 
        corporation, as such terms are defined in section 103 
        of title 5, United States Code. No action under section 
        1491 of title 28, United States Code (commonly known as 
        the Tucker Act) shall be allowable against the United 
        States based on the actions of the Corporation.
            (2) Corporate powers.--The Corporation shall be 
        subject to the provisions of this section, and, to the 
        extent not inconsistent with this section, to the 
        District of Columbia Business Corporation Act (or the 
        comparable law of another State, if applicable). The 
        Corporation shall have the powers conferred upon a 
        corporation by the District of Columbia Business 
        Corporation Act (or such other applicable State law) as 
        from time to time in effect in order to conduct the 
        Corporation's affairs as a private, for-profit 
        corporation and to carry out the Corporation's purposes 
        and activities incidental thereto. The Corporation 
        shall have the power to enter into contracts, to 
        execute instruments, to incur liabilities, to provide 
        products and services, and to do all things as are 
        necessary or incidental to the proper management of the 
        Corporation's affairs and the efficient operation of a 
        private, for-profit business.
            (3) Limitation on ownership of stock.--
                    (A) Secretary of the treasury.--The 
                Secretary of the Treasury, in completing the 
                sale of stock pursuant to subsection (c), may 
                not sell or issue the stock held by the 
                Secretary of Education to an agency, 
                instrumentality, or establishment of the United 
                States Government, or to a Government 
                corporation or a Government controlled 
                corporation, as such terms are defined in 
                section 103 of title 5, United States Code, or 
                to a government-sponsored enterprise as such 
                term is defined in section 622 of title 2, 
                United States Code.
                    (B) Student loan marketing association.--
                The Student Loan Marketing Association shall 
                not increase its share of the ownership of the 
                Corporation in excess of 42 percent of the 
                shares of stock of the Corporation outstanding 
                on the date of enactment of this Act. The 
                Student Loan Marketing Association shall not 
                control the operation of the Corporation, 
                except that the Student Loan Marketing 
                Association may participate in the election of 
                directors as a shareholder, and may continue to 
                exercise the Student Loan Marketing 
                Association's right to appoint directors under 
                section 754 of the Higher Education Act of 1965 
                (20 U.S.C. 1132f-3) as long as that section is 
                in effect.
                    (C) Prohibition.--Until such time as the 
                Secretary of the Treasury sells the stock of 
                the Corporation owned by the Secretary of 
                Education pursuant to subsection (c), the 
                Student Loan Marketing Association shall not 
                provide financial support or guarantees to the 
                Corporation.
                    (D) Financial support or guarantees.--After 
                the Secretary of the Treasury sells the stock 
                of the Corporation owned by the Secretary of 
                Education pursuant to subsection (c), the 
                Student Loan Marketing Association may provide 
                financial support or guarantees to the 
                Corporation, if such support or guarantees are 
                subject to terms and conditions that are no 
                more advantageous to the Corporation than the 
                terms and conditions the Student Loan Marketing 
                Association provides to other entities, 
                including, where applicable, other monoline 
                financial guaranty corporations in which the 
                Student Loan Marketing Association has no 
                ownership interest.
            (4) No federal guarantee.--
                    (A) Obligations insured by the 
                corporation.--
                            (i) Full faith and credit of the 
                        united states.--No obligation that is 
                        insured, guaranteed, or otherwise 
                        backed by the Corporation shall be 
                        deemed to be an obligation that is 
                        guaranteed by the full faith and credit 
                        of the United States.
                            (ii) Student loan marketing 
                        association.--No obligation that is 
                        insured, guaranteed, or otherwise 
                        backed by the Corporation shall be 
                        deemed to be an obligation that is 
                        guaranteed by the Student Loan 
                        Marketing Association.
                            (iii) Special rule.--This paragraph 
                        shall not affect the determination of 
                        whether such obligation is guaranteed 
                        for purposes of Federal income taxes.
                    (B) Securities offered by the 
                corporation.--No debt or equity securities of 
                the Corporation shall be deemed to be 
                guaranteed by the full faith and credit of the 
                United States.
            (5) Definition.--The term ``Corporation'' as used 
        in this section means the College Construction Loan 
        Insurance Association as in existence on the day before 
        the date of enactment of this Act, and any successor 
        corporation.
    (b) Related Privatization Requirements.--
            (1) Notice requirements.--
                    (A) In general.--During the six-year period 
                following the date of enactment of this Act, 
                the Corporation shall include, in each of the 
                Corporation's contracts for the insurance, 
                guarantee, or reinsurance of obligations, and 
                in each document offering debt or equity 
                securities of the Corporation, a prominent 
                statement providing notice that--
                            (i) such obligations or such 
                        securities, as the case may be, are not 
                        obligations of the United States, nor 
                        are such obligations or such 
                        securities, as the case may be, 
                        guaranteed in any way by the full faith 
                        and credit of the United States; and
                            (ii) the Corporation is not an 
                        instrumentality of the United States.
                    (B) Additional notice.--During the five-
                year period following the sale of stock 
                pursuant to subsection (c)(1), in addition to 
                the notice requirements in subparagraph (A), 
                the Corporation shall include, in each of the 
                contracts and documents referred to in such 
                subparagraph, a prominent statement providing 
                notice that the United States is not an 
                investor in the Corporation.
            (2) Corporate charter.--The Corporation's charter 
        shall be amended as necessary and without delay to 
        conform to the requirements of this section.
            (3) Corporate name.--The name of the Corporation, 
        or of any direct or indirect subsidiary thereof, may 
        not contain the term ``College Construction Loan 
        Insurance Association'', or any substantially similar 
        variation thereof.
            (4) Articles of incorporation.--The Corporation 
        shall amend the Corporation's articles of incorporation 
        without delay to reflect that one of the purposes of 
        the Corporation shall be to guarantee, insure, and 
        reinsure bonds, leases, and other evidences of debt of 
        educational institutions, including Historically Black 
        Colleges and Universities and other academic 
        institutions which are ranked in the lower investment 
        grade category using a nationally recognized credit 
        rating system.
            (5) Requirements until stock sale.--Notwithstanding 
        subsection (d), the requirements of sections 754 and 
        760 of the Higher Education Act of 1965 (20 U.S.C. 
        1132f-3 and 1132f-9), as such sections were in effect 
        on the day before the date of enactment of this Act, 
        shall continue to be effective until the day 
        immediately following the date of closing of the 
        purchase of the Secretary of Education's stock (or the 
        date of closing of the final purchase, in the case of 
        multiple transactions) pursuant to subsection (c)(1) of 
        this Act.
    (c) Sale of Federally Owned Stock.--
            (1) Sale of stock required.--The Secretary of the 
        Treasury shall sell, pursuant to section 324 of title 
        31, United States Code, the stock of the Corporation 
        owned by the Secretary of Education as soon as possible 
        after the date of enactment of this Act, but not later 
        than six months after such date.
            (2) Purchase by the corporation.--In the event that 
        the Secretary of the Treasury is unable to sell the 
        stock, or any portion thereof, at a price acceptable to 
        the Secretary of Education and the Secretary of the 
        Treasury, the Corporation shall purchase, within six 
        months after the date of enactment of this Act, such 
        stock at a price determined by the Secretary of the 
        Treasury and acceptable to the Corporation based on the 
        independent appraisal of one or more nationally 
        recognized financial firms, except that such price 
        shall not exceed the value of the Secretary of 
        Education's stock as determined by the Congressional 
        Budget Office in House Report 104-153, dated June 22, 
        1995.
            (3) Reimbursement of costs of sale.--The Secretary 
        of the Treasury shall be reimbursed from the proceeds 
        of the sale of the stock under this subsection for all 
        reasonable costs related to such sale, including all 
        reasonable expenses relating to one or more independent 
        appraisals under this subsection.
            (4) Assistance by the corporation.--The Corporation 
        shall provide such assistance as the Secretary of the 
        Treasury and the Secretary of Education may require to 
        facilitate the sale of the stock under this subsection.
    (d) Repeal of Statutory Restrictions and Related 
Provisions.--Part D of title VII of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.) is repealed.

SEC. 403. ELIGIBLE INSTITUTION.

    (a) Amendments.--Section 481(b) of the Higher Education Act 
of 1965 (20 U.S.C. 1088(b)) is amended by inserting after the 
end of the first sentence the following new sentence: ``For the 
purposes of determining whether an institution meets the 
requirements of clause (6), the Secretary shall not consider 
the financial information of any institution for a fiscal year 
that began on or before April 30, 1994.''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall apply to any determination made on or after July 1, 1994, 
by the Secretary of Education pursuant to section 481(b)(6) of 
the Higher Education Act of 1965 (20 U.S.C. 1088(b)(6)).

               TITLE V--REPEALS AND CONFORMING AMENDMENTS

SEC. 501. 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).
            (3) The Library Services and Construction Act (20 
        U.S.C. 351 et seq.).
            (4) Part F of the Technology for Education Act of 
        1994 (contained in title III of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7001 et 
        seq.)).
            (5) The School Dropout Assistance Act (part C of 
        title V of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 7261 et seq.)).
            (6) The Displaced Homemakers Self-Sufficiency 
        Assistance Act (29 U.S.C. 2301 et seq.).
            (7) Section 211 of the Appalachian Regional 
        Development Act of 1965 (40 U.S.C. App. 211).
            (8) 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).
            (9) Section 201 of the National Literacy Act of 
        1991 (20 U.S.C. 1211-1).
            (10) Section 304 of the National Literacy Act of 
        1991 (20 U.S.C. 1213c note).
    (b) Immediate Repeal of Higher Education Act of 1965 
Provisions.--The following provisions of the Higher Education 
Act of 1965 (20 U.S.C. 1001 et seq.) are repealed:
            (1) Part B of title I (20 U.S.C. 1011 et seq.), 
        relating to articulation agreements.
            (2) Part C of title I (20 U.S.C. 1015 et seq.), 
        relating to access and equity to education for all 
        Americans through telecommunications.
            (3) Title II (20 U.S.C. 1021 et seq.), relating to 
        academic libraries and information services.
            (4) Chapter 3 of subpart 2 of part A of title IV 
        (20 U.S.C. 1070a-31 et seq.), relating to presidential 
        access scholarships.
            (5) Chapter 4 of subpart 2 of part A of title IV 
        (20 U.S.C. 1070a-41 et seq.), relating to model program 
        community partnerships and counseling grants.
            (6) Section 409B (20 U.S.C. 1070a-52), relating to 
        an early awareness information program.
            (7) Chapter 8 of subpart 2 of part A of title IV 
        (20 U.S.C. 1070a-81), relating to technical assistance 
        for teachers and counselors.
            (8) Subpart 8 of part A of title IV (20 U.S.C. 
        1070f), relating to special child care services for 
        disadvantaged college students.
            (9) Section 428J (20 U.S.C. 1078-10), relating to 
        loan forgiveness for teachers, individuals performing 
        national community service and nurses.
            (10) Section 486 (20 U.S.C. 1093), relating to 
        training in financial aid services.
            (11) Subpart 1 of part H of title IV (20 U.S.C. 
        1099a et seq.) relating to State postsecondary review 
        programs.
            (12) Part A of title V (20 U.S.C. 1102 et seq.), 
        relating to State and local programs for teacher 
        excellence.
            (13) Part B of title V (20 U.S.C. 1103 et seq.), 
        relating to national teacher academies.
            (14) Subpart 1 of part C of title V (20 U.S.C. 1104 
        et seq.), relating to Paul Douglas teacher 
        scholarships.
            (15) Subpart 3 of part C of title V (20 U.S.C. 1106 
        et seq.), relating to the teacher corps.
            (16) Subpart 3 of part D of title V (20 U.S.C. 1109 
        et seq.), relating to class size demonstration grants.
            (17) Subpart 4 of part D of title V (20 U.S.C. 1110 
        et seq.), relating to middle school teaching 
        demonstration programs.
            (18) Subpart 1 of part E of title V (20 U.S.C. 1111 
        et seq.), relating to new teaching careers.
            (19) Subpart 1 of part F of title V (20 U.S.C. 
        1113), relating to the national mini corps programs.
            (20) Section 586 (20 U.S.C. 1114), relating to 
        demonstration grants for critical language and area 
        studies.
            (21) Section 587 (20 U.S.C. 1114a), relating to 
        development of foreign languages and cultures 
        instructional materials.
            (22) Subpart 3 of part F of title V (20 U.S.C. 
        1115), relating to small State teaching initiatives.
            (23) Subpart 4 of part F of title V (20 U.S.C. 
        1116), relating to faculty development grants.
            (24) Section 597 and subsection (b) of section 599 
        (20 U.S.C. 1117a and 1117c), relating to early 
        childhood staff training and professional enhancement.
            (25) Section 605 (20 U.S.C. 1124a), relating to 
        intensive summer language institutes.
            (26) Section 607 (20 U.S.C. 1125a), relating to 
        periodicals and other research material published 
        outside the United States.
            (27) Part A of title VII (20 U.S.C. 1132b et seq.), 
        relating to improvement of academic and library 
        facilities.
            (28) Title VIII (20 U.S.C. 1133 et seq.), relating 
        to cooperative education programs.
            (29) Part A of title IX (20 U.S.C. 1134a et seq.), 
        relating to grants to institutions and consortia to 
        encourage women and minority participation in graduate 
        education.
            (30) Part B of title IX (20 U.S.C. 1134d et seq.), 
        relating to the Patricia Roberts Harris fellowship 
        program.
            (31) Part E of title IX (20 U.S.C. 1134r et seq.), 
        relating to the faculty development fellowship program.
            (32) Part F of title IX (20 U.S.C. 1134s et seq.), 
        relating to assistance for training in the legal 
        profession.
            (33) Subpart 2 of part B of title X (20 U.S.C. 
        1135c et seq.), relating to science and engineering 
        access programs.
            (34) Part C of title X (20 U.S.C. 1135e et seq.), 
        relating to women and minorities science and 
        engineering outreach demonstration programs.
            (35) Part D of title X (20 U.S.C. 1135f), relating 
        to the Dwight D. Eisenhower leadership program.
    (c) Immediate Repeal of Education Amendments of 1986 
Provisions.--The following provisions of the Higher Education 
Amendments of 1986 are repealed:
            (1) Part D of title XIII (20 U.S.C. 1029 note), 
        relating to library resources.
            (2) Part E of title XIII (20 U.S.C. 1221-1 note), 
        relating to a National Academy of Science study.
            (3) Part B of title XV (20 U.S.C. 4441 et seq.), 
        relating to Native Hawaiian and Alaska Native culture 
        and art development.
    (d) Immediate Repeal of Education Amendments of 1974 
Provision.--Section 519 of the Education Amendments of 1974 (20 
U.S.C. 1221i) is repealed.
    (e) Immediate Repeal of Education Amendments of 1992 
Provisions.--The following provisions of the Higher Education 
Amendments of 1992 are repealed:
            (1) Part F of title XIII (25 U.S.C. 3351 et seq.), 
        relating to American Indian postsecondary economic 
        development scholarships.
            (2) Part G of title XIII (25 U.S.C. 3371), relating 
        to American Indian teacher training.
            (3) Section 1406 (20 U.S.C. 1221e-1 note), relating 
        to a national survey of factors associated with 
        participation.
            (4) Section 1409 (20 U.S.C. 1132a note), relating 
        to a study of environmental hazards in institutions of 
        higher education.
            (5) Section 1412 (20 U.S.C. 1101 note), relating to 
        a national job bank for teacher recruitment.
            (6) Part B of title XV (20 U.S.C. 1452 note), 
        relating to a national clearinghouse for postsecondary 
        education materials.
            (7) Part C of title XV (20 U.S.C. 1101 note), 
        relating to a school-based decisionmakers demonstration 
        program.
            (8) Part D of title XV (20 U.S.C. 1145h note), 
        relating to grants for sexual offenses education.
            (9) Part E of title XV (20 U.S.C. 1070 note), 
        relating to Olympic scholarships.
            (10) Part G of title XV (20 U.S.C. 1070a-11 note), 
        relating to advanced placement fee payment programs.
    (f) Subsequent Repeals.--The following provisions are 
repealed:
            (1) The Carl D. Perkins Vocational and Applied 
        Technology Education Act (20 U.S.C. 2301 et seq.).
            (2) The Adult Education Act (20 U.S.C. 1201 et 
        seq.).
            (3) The School-to-Work Opportunities Act of 1994 
        (20 U.S.C. 6101 et seq.).
            (4) The Job Training Partnership Act (29 U.S.C. 
        1501 et seq.).

SEC. 502. CONFORMING AMENDMENTS.

    (a) References to Section 204 of the Immigration Reform and 
Control Act of 1986.--The table of contents for the Immigration 
Reform and Control Act of 1986 is amended by striking the item 
relating to section 204 of such Act.
    (b) References to Title II of Public Law 95-250.--Section 
103 of Public Law 95-250 (16 U.S.C. 79l) is amended--
            (1) by striking the second sentence of subsection 
        (a); and
            (2) by striking the second sentence of subsection 
        (b).
    (c) References to Library Services and Construction Act.--
            (1) Technology for education act of 1994.--The 
        Technology for Education Act of 1994 (20 U.S.C. 6801 et 
        seq.) is amended in section 3113(10) by striking 
        ``section 3 of the Library Services and Construction 
        Act;'' and inserting ``section 4 of the Workforce and 
        Career Development Act of 1996;''.
            (2) Omnibus education reconciliation act of 1981.--
        Section 528 of the Omnibus Education Reconciliation Act 
        of 1981 (20 U.S.C. 3489) is amended--
                    (A) by striking paragraph (12); and
                    (B) by redesignating paragraphs (13) 
                through (15) as paragraphs (12) through (14), 
                respectively.
            (3) Elementary and secondary education act of 
        1965.--Section 3113(10) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6813(10)) is amended 
        by striking ``section 3 of the Library Services and 
        Construction Act'' and inserting ``section 213 of the 
        Library Services and Technology Act''.
            (4) Community improvement volunteer act of 1994.--
        Section 7305 of the Community Improvement Volunteer Act 
        of 1994 (40 U.S.C. 276d-3) is amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) through 
                (6) as paragraphs (1) through (5), 
                respectively.
            (5) Appalachian regional development act of 1965.--
        Section 214(c) of the Appalachian Regional Development 
        Act of 1965 (40 U.S.C. App. 214(c)) is amended by 
        striking ``Library Services and Construction Act;''.
            (6) Demonstration cities and metropolitan 
        development act of 1966.--Section 208(2) of the 
        Demonstration Cities and Metropolitan Development Act 
        of 1966 (42 U.S.C. 3338(2)) is amended by striking 
        ``title II of the Library Services and Construction 
        Act;''.
            (7) Public law 87-688.--Subsection (c) of the first 
        section of the Act entitled ``An Act to extend the 
        application of certain laws to American Samoa'', 
        approved September 25, 1962 (48 U.S.C. 1666(c)) is 
        amended by striking ``the Library Services Act (70 
        Stat. 293; 20 U.S.C. 351 et seq.),''.
            (8) Communications act of 1934.--Paragraph (4) of 
        section 254(h) of the Communications Act of 1934 (47 
        U.S.C. 254(h)(4)) is amended by striking ``library not 
        eligible for participation in State-based plans for 
        funds under title III of the Library Services and 
        Construction Act (20 U.S.C. 335c et seq.)'' and 
        inserting ``library or library consortium not eligible 
        for assistance from a State library administrative 
        agency under the Library Services and Technology Act''.
    (d) Reference to School Dropout Assistance Act.--Section 
441 of the General Education Provisions Act (42 U.S.C. 1232d), 
as amended by section 261(f) of the Improving America's Schools 
Act of 1994, is further amended by striking ``(subject to the 
provisions of part C of title V of the Elementary and Secondary 
Education Act of 1965)''.
    (e) References to Title VII of the Stewart B. McKinney 
Homeless Assistance Act.--
            (1) Table of contents.--The table of contents of 
        the Stewart B. McKinney Homeless Assistance Act (42 
        U.S.C. 1142 et seq.) is amended by striking the items 
        relating to title VII of such Act, except subtitle B 
        and section 738 of such title.
            (2) Title 31, united states code.--Section 6703(a) 
        of title 31, United States Code, is amended--
                    (A) by striking paragraph (15); and
                    (B) by redesignating paragraphs (16) 
                through (19) as paragraphs (15) through (18), 
                respectively.
    (f) References to Institute of Museum Services.--
            (1) Title 5, united states code.--Section 5315 of 
        title 5, United States Code, is amended by striking the 
        following:
            ``Director of the Institute of Museum Services.'' 
        and inserting the following:
            ``Director of the Institute of Museum and Library 
        Services.''.
            (2) Department of education organization act.--
        Section 301 of the Department of Education Organization 
        Act (20 U.S.C. 3441) is amended--
                    (A) in subsection (a)--
                            (i) by striking paragraph (5); and
                            (ii) by redesignating paragraphs 
                        (6) and (7) as paragraphs (5) and (6), 
                        respectively; and
                    (B) in subsection (b)--
                            (i) by striking paragraph (4); and
                            (ii) by redesignating paragraphs 
                        (5) through (7) as paragraphs (4) 
                        through (6), respectively.
            (3) Elementary and secondary education act of 
        1965.--
                    (A) Sections 2101(b), 2205(c)(1)(D), 
                2208(d)(1)(H)(v), and 2209(b)(1)(C)(vi), and 
                subsections (d)(6) and (e)(2) of section 10401 
                of the Elementary and Secondary Education Act 
                of 1965 (20 U.S.C. 6621(b), 6645(c)(1)(D), 
                6648(d)(1)(H)(v), 6649(b)(1)(C)(vi), and 8091 
                (d)(6) and (e)(2)) are amended by striking 
                ``the Institute of Museum Services'' and 
                inserting ``the Institute of Museum and Library 
                Services''.
                    (B) Section 10412(b) of such Act (20 U.S.C. 
                8102(b)) is amended--
                            (i) in paragraph (2), by striking 
                        ``the Director of the Institute of 
                        Museum Services,'' and inserting ``the 
                        Director of the Institute of Museum and 
                        Library Services,''; and
                            (ii) in paragraph (7), by striking 
                        ``the Director of the Institute of 
                        Museum Services,'' and inserting ``the 
                        Director of the Institute of Museum and 
                        Library Services,''.
                    (C) Section 10414(a)(2)(B) of such Act (20 
                U.S.C. 8104(a)(2)(B)) is amended by striking 
                clause (iii) and inserting the following new 
                clause:
                            ``(iii) the Institute of Museum and 
                        Library Services.''.
    (g) References to Office of Libraries and Learning 
Resources.--Section 413(b)(1) of the Department of Education 
Organization Act (20 U.S.C. 3473(b)(1)) is amended--
            (1) by striking subparagraph (H); and
            (2) by redesignating subparagraphs (I) through (M) 
        as subparagraphs (H) through (L), respectively.
    (h) References to State Postsecondary Review Entity 
Programs.--The Higher Education Act of 1965 is amended--
            (1) in section 356(b)(2) (20 U.S.C. 10696(b)), by 
        striking ``II,'';
            (2) in section 453(c)(2) (20 U.S.C. 1087c(c)(2))--
                    (A) by striking subparagraph (E); and
                    (B) by redesignating subparagraphs (F) 
                through (H) as subparagraphs (E) through (G), 
                respectively;
            (3) in section 487(a)(3) (20 U.S.C. 1094(a)(3)), by 
        striking subparagraph (B) and redesignating 
        subparagraphs (C) and (D) as subparagraphs (B) and (C), 
        respectively;
            (4) in section 487(a)(15) (20 U.S.C. 1094(a)(15)), 
        by striking ``the Secretary of Veterans Affairs, and 
        State review entities under subpart 1 of part H'' and 
        inserting ``and the Secretary of Veterans Affairs'';
            (5) in section 487(a)(21) (20 U.S.C. 1094(a)(21)), 
        by striking ``, State postsecondary review entities,'';
            (6) in section 487(c)(1)(A)(i) (20 U.S.C. 
        1094(c)(1)(A)(i)), by striking ``State agencies, and 
        the State review entities referred to in subpart 1 of 
        part H'' and inserting ``and State agencies'';
            (7) in section 487(c)(4) (20 U.S.C. 1094(c)(4)), by 
        striking ``, after consultation with each State review 
        entity designated under subpart 1 of part H,'';
            (8) in section 487(c)(5) (20 U.S.C. 1094(c)(5)), by 
        striking ``State review entities designated under 
        subpart 1 of part H,'';
            (9) in section 496(a)(7) (20 U.S.C. 1099b(a)(7)), 
        by striking ``and the appropriate State postsecondary 
        review entity'';
            (10) in section 496(a)(8) (20 U.S.C. 1099b(a)(8)), 
        by striking ``and the State postsecondary review entity 
        of the State in which the institution of higher 
        education is located'';
            (11) in section 498(g)(2) (20 U.S.C. 1099c(g)(2)), 
        by striking everything after the first sentence;
            (12) in section 498A(a)(2)(D) (20 U.S.C. 1099c-
        1(a)(2)(D)), by striking ``by the appropriate State 
        postsecondary review entity designated under subpart 1 
        of this part or'';
            (13) in section 498A(a)(2) (20 U.S.C. 1099c-
        1(a)(2))--
                    (A) by inserting ``and'' after the 
                semicolon at the end of subparagraph (E);
                    (B) by striking subparagraph (F); and
                    (C) by redesignating subparagraph (G) as 
                subparagraph (F); and
            (14) in section 498A(a)(3) (20 U.S.C. 1099c-
        1(a)(3))--
                    (A) by inserting ``and'' after the 
                semicolon at the end of subparagraph (C);
                    (B) by striking ``; and'' at the end of 
                subparagraph (D) and inserting a period; and
                    (C) by striking subparagraph (E).
    (i) References to Carl D. Perkins Vocational and Applied 
Technology Education Act.--
            (1) Immigration and nationality act.--Section 
        245A(h)(4)(C) of the Immigration and Nationality Act (8 
        U.S.C. 1255a(h)(4)(C)) is amended by striking 
        ``Vocational Education Act of 1963'' and inserting 
        ``Workforce and Career Development Act of 1996''.
            (2) National defense authorization act.--Section 
        4461 of the National Defense Authorization Act for 
        Fiscal Year 1993 (10 U.S.C. 1143 note) is amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraphs (5) and (6) 
                as paragraphs (4) and (5), respectively.
            (3) Individuals with disabilities education act.--
        Section 626(g) of the Individuals with Disabilities 
        Education Act (20 U.S.C. 1425(g)) is amended--
                    (A) by striking ``1973,'' and inserting 
                ``1973 and''; and
                    (B) by striking ``, and the Carl D. Perkins 
                Vocational and Applied Technology Education 
                Act''.
            (4) Elementary and secondary education act of 
        1965.--The Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6301 et seq.) is amended--
                    (A) in section 1114(b)(2)(C)(v) (20 U.S.C. 
                6314(b)(2)(C)(v)), by striking ``Carl D. 
                Perkins Vocational and Applied Technology 
                Education Act,'' and inserting ``Workforce and 
                Career Development Act of 1996'';
                    (B) in section 9115(b)(5) (20 U.S.C. 
                7815(b)(5)), by striking ``Carl D. Perkins 
                Vocational and Applied Technology Education 
                Act'' and inserting ``Workforce and Career 
                Development Act of 1996'';
                    (C) in section 14302(a)(2) (20 U.S.C. 
                8852(a)(2))--
                            (i) by striking subparagraph (C); 
                        and
                            (ii) by redesignating subparagraphs 
                        (D), (E), and (F) as subparagraphs (C), 
                        (D), and (E), respectively; and
                    (D) in the matter preceding subparagraph 
                (A) of section 14307(a)(1) (20 U.S.C. 
                8857(a)(1)), by striking ``Carl D. Perkins 
                Vocational and Applied Technology Education 
                Act'' and inserting ``Workforce and Career 
                Development Act of 1996''.
            (5) Equity in educational land-grant status act of 
        1994.--Section 533(c)(4)(A) of the Equity in 
        Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 
        note) is amended by striking ``(20 U.S.C. 2397h(3)'' 
        and inserting ``, as such section was in effect on the 
        day preceding the date of enactment of the Workforce 
        and Career Development Act of 1996''.
            (6) Improving america's schools act of 1994.--
        Section 563 of the Improving America's Schools Act of 
        1994 (20 U.S.C. 6301 note) is amended by striking ``the 
        date of enactment of an Act reauthorizing the Carl D. 
        Perkins Vocational and Applied Technology Education Act 
        (20 U.S.C. 2301 et seq.)'' and inserting ``July 1, 
        1998''.
            (7) Internal revenue code of 1986.--Section 
        135(c)(3)(B) of the Internal Revenue Code of 1986 (26 
        U.S.C. 135(c)(3)(B)) is amended--
                    (A) by striking ``subparagraph (C) or (D) 
                of section 521(3) of the Carl D. Perkins 
                Vocational Education Act'' and inserting 
                ``subparagraph (C) or (D) of section 4(4) of 
                the Workforce and Career Development Act of 
                1996''; and
                    (B) by striking ``any State (as defined in 
                section 521(27) of such Act)'' and inserting 
                ``any State or outlying area (as the terms 
                `State' and `outlying area' are defined in 
                section 4 of such Act)''.
            (8) Appalachian regional development act of 1965.--
        Section 214(c) of the Appalachian Regional Development 
        Act of 1965 (40 U.S.C. App. 214(c)) (as amended by 
        subsection (c)(5)) is further amended by striking 
        ``Carl D. Perkins Vocational Education Act'' and 
        inserting ``Workforce and Career Development Act of 
        1996''.
            (9) Vocational education amendments of 1968.--
        Section 104 of the Vocational Education Amendments of 
        1968 (82 Stat. 1091) is amended by striking ``section 3 
        of the Carl D. Perkins Vocational Education Act'' and 
        inserting ``the Workforce and Career Development Act of 
        1996''.
            (10) Older americans act of 1965.--The Older 
        Americans Act of 1965 (42 U.S.C. 3001 et seq.) is 
        amended--
                    (A) in section 502(b)(1)(N)(i) (42 U.S.C. 
                3056(b)(1)(N)(i)), by striking ``or the Carl D. 
                Perkins Vocational and Applied Technology 
                Education Act (20 U.S.C. 2301 et seq.)''; and
                    (B) in section 505(d)(2) (42 U.S.C. 
                3056c(d)(2))--
                            (i) by striking ``the Secretary of 
                        Education'' and inserting ``the 
                        Secretaries (as defined in section 4 of 
                        the Workforce and Career Development 
                        Act of 1996)'';
                            (ii) by striking ``employment and 
                        training programs'' and inserting 
                        ``workforce and career development 
                        activities''; and
                            (iii) by striking ``the Carl D. 
                        Perkins Vocational and Applied 
                        Technology Education Act (20 U.S.C. 
                        2301 et seq.)'' and inserting ``the 
                        Workforce and Career Development Act of 
                        1996''.
    (j) References to Adult Education Act.--
            (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 ``Workforce and Career Development 
                Act of 1996''.
                    (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 ``Workforce and Career 
                Development Act of 1996''.
                    (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 Workforce and 
                Career Development Act of 1996''.
                    (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 4 of the 
                Workforce and Career Development Act of 1996''.
                    (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 4 of 
                the Workforce and Career Development Act of 
                1996''.
            (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 ``Workforce and Career Development 
        Act of 1996''.
    (k) References to School-to-Work Opportunities Act of 
1994.--
            (1) Section 1114 of esea.--Section 1114(b)(2)(C)(v) 
        of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 6314(b)(2)(C)(v)) (as amended in subsection 
        (i)(4)(A)) is further amended by striking ``the School-
        to-Work Opportunities Act of 1994,''.
            (2) Section 5204 of esea.--Section 5204 of such Act 
        (20 U.S.C. 7234) is amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraphs (5) through 
                (7) as paragraphs (4) through (6), 
                respectively.
            (3) Section 9115 of esea.--Section 9115(b)(5) of 
        such Act (20 U.S.C. 7815(b)(5)) (as amended in 
        subsection (i)(4)(B)) is further amended by striking 
        ``the School-to-Work Opportunities Act of 1994 and''.
            (4) Section 14302 of esea.--Section 14302(a)(2) of 
        such Act (20 U.S.C. 8852(a)(2)) (as amended in 
        subsection (i)(4)(C)) is further amended--
                    (A) in subparagraph (C) (as redesignated in 
                such subsection), by striking the semicolon and 
                inserting ``; and'';
                    (B) by striking subparagraph (D) (as 
                redesignated in such subsection); and
                    (C) by redesignating subparagraph (E) (as 
                redesignated in such subsection) as 
                subparagraph (D).
            (5) Section 14307 of esea.--Section 14307(a)(1) of 
        such Act (20 U.S.C. 8857(a)(1)) (as amended in 
        subsection (i)(4)(D)) is further amended by striking 
        ``, the School-to-Work Opportunities Act of 1994,''.
            (6) Section 14701 of esea.--Section 14701(b)(1) of 
        such Act (20 U.S.C. 8941(b)(1)) is amended--
                    (A) in subparagraph (B)(ii), by striking 
                ``, and the School-to-Work Opportunities Act of 
                1994, and be coordinated with evaluations of 
                such Acts'' and inserting ``and be coordinated 
                with evaluations of such Act''; and
                    (B) in subparagraph (C)(ii), by striking 
                ``, the School-to-Work Opportunities Act of 
                1994,''.
    (l) References to Job Training Partnership Act.--
            (1) Title 5, united states code.--Section 3502(d) 
        of title 5, United States Code, is amended--
                    (A) in paragraph (3)--
                            (i) in subparagraph (A), by 
                        striking clause (i) and inserting the 
                        following:
                    ``(i) the Governor of the appropriate 
                State; and''; and
                            (ii) in subparagraph (B)(iii), by 
                        striking ``other services under the Job 
                        Training Partnership Act'' and 
                        inserting ``other workforce and career 
                        development activities under the 
                        Workforce and Career Development Act of 
                        1996''; and
                    (B) in paragraph (4), in the second 
                sentence, by striking ``Secretary of Labor on 
                matters relating to the Job Training 
                Partnership Act'' and inserting ``the 
                Secretaries (as defined in section 4 of the 
                Workforce and Career Development Act of 1996) 
                on matters relating to such Act''.
            (2) Food stamp act of 1977.--
                    (A) Section 5.--Section 5(l) of the Food 
                Stamp Act of 1977 (7 U.S.C. 2014(l)) is amended 
                by striking ``Notwithstanding section 142(b) of 
                the Job Training Partnership Act (29 U.S.C. 
                1552(b)), earnings to individuals participating 
                in on-the-job training programs under section 
                204(b)(1)(C) or section 264(c)(1)(A) of the Job 
                Training Partnership Act'' and inserting 
                ``Earnings to individuals participating in on-
                the-job training under the Workforce and Career 
                Development Act of 1996''.
                    (B) Section 6.--Section 6 of the Food Stamp 
                Act of 1977 (7 U.S.C. 2015) is amended--
                            (i) in subsection (d)(4)(N), by 
                        striking ``the State public employment 
                        offices and agencies operating programs 
                        under the Job Training Partnership 
                        Act'' and inserting ``the State public 
                        employment offices and other State 
                        agencies and providers providing 
                        employment and training activities 
                        under the Workforce and Career 
                        Development Act of 1996''; and
                            (ii) in subsection (e)(3), by 
                        striking subparagraph (A) and inserting 
                        the following:
                    ``(A) a program relating to employment and 
                training activities carried out under the 
                Workforce and Career Development Act of 
                1996;''.
                    (C) Section 17.--The second sentence of 
                section 17(b)(2) of the Food Stamp Act of 1977 
                (7 U.S.C. 2026(b)(2)) is amended--
                            (i) by striking ``to accept an 
                        offer of employment from a political 
                        subdivision or a prime sponsor pursuant 
                        to the Comprehensive Employment and 
                        Training Act of 1973, as amended (29 
                        U.S.C. 812),'' and inserting ``to 
                        accept an offer of employment from a 
                        service provider carrying out 
                        employment and training activities 
                        through a program carried out under the 
                        Workforce and Career Development Act of 
                        1996,''; and
                            (ii) by striking ``: Provided, That 
                        all of the political subdivision's'' 
                        and all that follows and inserting ``, 
                        if all of the jobs supported under the 
                        program have been made available to 
                        participants in the program before the 
                        service provider providing the jobs 
                        extends an offer of employment under 
                        this paragraph, and if the service 
                        provider, in employing the person, 
                        complies with the requirements of 
                        Federal law that relate to the 
                        program.''.
            (3) Immigration and nationality act.--Section 
        245A(h)(4)(F) of the Immigration and Nationality Act (8 
        U.S.C. 1255a(h)(4)(F)) is amended by striking ``The Job 
        Training Partnership Act.'' and inserting ``The 
        Workforce and Career Development Act of 1996.''.
            (4) Refugee education assistance act of 1980.--
        Section 402(a)(4) of the Refugee Education Assistance 
        Act of 1980 (8 U.S.C. 1522 note) is amended by striking 
        ``the Comprehensive Employment and Training Act of 
        1973'' and inserting ``the Workforce and Career 
        Development Act of 1996''.
            (5) National defense authorization act for fiscal 
        year 1993.--
                    (A) Section 3161.--Section 3161(c)(6) of 
                the National Defense Authorization Act for 
                Fiscal Year 1993 (42 U.S.C. 7274h(c)(6)) is 
                amended by striking subparagraph (A) and 
                inserting the following:
                    ``(A) programs carried out by the 
                Secretaries (as defined in section 4 of the 
                Workforce and Career Development Act of 1996) 
                under such Act;''.
                    (B) Section 4461.--Section 4461(1) of the 
                National Defense Authorization Act for Fiscal 
                Year 1993 (10 U.S.C. 1143 note) is amended by 
                striking ``The Job Training Partnership Act (29 
                U.S.C. 1501 et seq.).'' and inserting ``The 
                Workforce and Career Development Act of 
                1996.''.
                    (C) Section 4471.--Section 4471 of the 
                National Defense Authorization Act for Fiscal 
                Year 1993 (10 U.S.C. 2501 note) is amended--
                            (i) in subsection (d)(2), by 
                        striking ``the State dislocated'' and 
                        all that follows through ``and the 
                        chief'' and inserting ``the Governor of 
                        the appropriate State and the chief'';
                            (ii) in subsection (e)--
                                    (I) in the first sentence, 
                                by striking ``for training, 
                                adjustment assistance, and 
                                employment services'' and all 
                                that follows through ``except 
                                where'' and inserting ``to 
                                participate in employment and 
                                training activities carried out 
                                under the Workforce and Career 
                                Development Act of 1996, except 
                                in a case in which''; and
                                    (II) by striking the second 
                                sentence; and
                            (iii) in subsection (f)--
                                    (I) in paragraph (3)--
                                            (aa) in 
                                        subparagraph (B), by 
                                        striking ``the State 
                                        dislocated'' and all 
                                        that follows through 
                                        ``and the chief'' and 
                                        inserting ``the 
                                        Governor of the 
                                        appropriate State and 
                                        the chief''; and
                                            (bb) in 
                                        subparagraph (C), by 
                                        striking ``grantee 
                                        under section 325(a) or 
                                        325A(a)'' and all that 
                                        follows through 
                                        ``employment services'' 
                                        and inserting 
                                        ``recipient of 
                                        assistance under the 
                                        Workforce and Career 
                                        Development Act of 1996 
                                        providing employment 
                                        and training 
                                        activities''; and
                                    (II) in paragraph (4), by 
                                striking ``for training,'' and 
                                all that follows through 
                                ``beginning'' and inserting 
                                ``to participate in employment 
                                and training activities under 
                                the Workforce and Career 
                                Development Act of 1996 
                                beginning''.
                    (D) Section 4492.--Section 4492(b) of the 
                National Defense Authorization Act for Fiscal 
                Year 1993 (10 U.S.C. 1143 note) is amended by 
                striking ``the Job Training Partnership Act'' 
                and inserting ``the Workforce and Career 
                Development Act of 1996''.
            (6) National defense authorization act for fiscal 
        year 1991.--Section 4003(5)(C) of the National Defense 
        Authorization Act for Fiscal Year 1991 (10 U.S.C. 2391 
        note) is amended by inserting before the period the 
        following: ``, as in effect on the day before the date 
        of the enactment of the Workforce and Career 
        Development Act of 1996''.
            (7) National defense authorization act for fiscal 
        year 1994.--Section 1333(c)(2)(B) of the National 
        Defense Authorization Act for Fiscal Year 1994 (10 
        U.S.C. 2701 note) is amended by striking ``Private 
        industry councils (as described in section 102 of the 
        Job Training Partnership Act (29 U.S.C. 1512)).'' and 
        inserting ``Local workforce development boards 
        established under section 108 of the Workforce and 
        Career Development Act of 1996.''.
            (8) Small business act.--The fourth sentence of 
        section 7(j)(13)(E) of the Small Business Act (15 
        U.S.C. 636(j)(13)(E)) is amended by striking ``the Job 
        Training Partnership Act (29 U.S.C. 1501 et seq.)'' and 
        inserting ``the Workforce and Career Development Act of 
        1996''.
            (9) Employment act of 1946.--Section 4(f)(2)(B) of 
        the Employment Act of 1946 (15 U.S.C. 1022a(f)(2)(B)) 
        is amended by striking ``and include these in the 
        annual Employment and Training Report of the President 
        required under section 705(a) of the Comprehensive 
        Employment and Training Act of 1973 (hereinafter in 
        this Act referred to as `CETA')'' and inserting ``and 
        prepare and submit to the President an annual report 
        containing the recommendations''.
            (10) Full employment and balanced growth act of 
        1978.--
                    (A) Section 206.--Section 206 of the Full 
                Employment and Balanced Growth Act of 1978 (15 
                U.S.C. 3116) is amended--
                            (i) in subsection (b)--
                                    (I) in the matter preceding 
                                paragraph (1), by striking 
                                ``CETA'' and inserting ``the 
                                Workforce and Career 
                                Development Act of 1996''; and
                                    (II) in paragraph (1), by 
                                striking ``(including use of 
                                section 110 of CETA when 
                                necessary)''; and
                            (ii) in subsection (c)(1), by 
                        striking ``CETA'' and inserting 
                        ``activities carried out under the 
                        Workforce and Career Development Act of 
                        1996''.
                    (B) Section 401.--Section 401(d) of the 
                Full Employment and Balanced Growth Act of 1978 
                (15 U.S.C. 3151(d)) is amended by striking 
                ``include, in the annual Employment and 
                Training Report of the President provided under 
                section 705(a) of CETA,'' and inserting 
                ``include, in the annual report referred to in 
                section 4(f)(2)(B) of the Employment Act of 
                1946 (15 U.S.C. 1022a(f)(2)(B)),''.
            (11) Title 18, united states code.--Subsections 
        (a), (b), and (c) of section 665 of title 18, United 
        States Code are amended by striking ``the Comprehensive 
        Employment and Training Act or the Job Training 
        Partnership Act'' and inserting ``the Workforce and 
        Career Development Act of 1996''.
            (12) Trade act of 1974.--Section 239(e) of the 
        Trade Act of 1974 (19 U.S.C. 2311(e)) is amended by 
        striking ``under title III of the Job Training 
        Partnership Act'' and inserting ``made available under 
        the Workforce and Career Development Act of 1996''.
            (13) Higher education act.--Section 480(b)(14) of 
        the Higher Education Act of 1965 (20 U.S.C. 
        1087vv(b)(14)) is amended by striking ``Job Training 
        Partnership Act noneducational benefits'' and inserting 
        ``benefits received through participation in employment 
        and training activities under the Workforce and Career 
        Development Act of 1996''.
            (14) Individuals with disabilities education act.--
        Section 626 of the Individuals with Disabilities 
        Education Act (20 U.S.C. 1425) is amended--
                    (A) in the first sentence of subsection 
                (a), by striking ``(including the State job 
                training coordinating councils and service 
                delivery area administrative entities 
                established under the Job Training Partnership 
                Act)'' and inserting ``(including the 
                individuals and entities participating in the 
                State collaborative process under subsection 
                (a) or (b) of section 105 of the Workforce and 
                Career Development Act of 1996 and local 
                workforce development boards established under 
                section 108 of such Act)'';
                    (B) in subsection (e)--
                            (i) in paragraphs (3)(C) and 
                        (4)(A)(iii), by striking ``local 
                        Private Industry Councils (PICS) 
                        authorized by the Job Training 
                        Partnership Act (JTPA),'' and inserting 
                        ``local workforce development boards 
                        established under section 108 of the 
                        Workforce and Career Development Act of 
                        1996,''; and
                            (ii) in clauses (iii), (iv), (v), 
                        and (vii) of paragraph (4)(B), by 
                        striking ``PICS authorized by the 
                        JTPA'' and inserting ``local workforce 
                        development boards established under 
                        section 108 of the Workforce and Career 
                        Development Act of 1996''; and
                    (C) in subsection (g) (as amended by 
                subsection (i)(3)), by striking ``the Job 
                Training Partnership Act (JTPA)'' and inserting 
                ``the Workforce and Career Development Act of 
                1996''.
            (15) Department of education organization act.--
        Subsection (a) of section 302 of the Department of 
        Education Organization Act (20 U.S.C. 3443(a)) (as 
        redesignated in section 271(a)(2) of the Improving 
        America's Schools Act of 1994) is amended by striking 
        ``under section 303(c)(2) of the Comprehensive 
        Employment and Training Act'' and inserting ``relating 
        to such education''.
            (16) National skill standards act of 1994.--
                    (A) Section 504.--Section 504(c)(3) of the 
                National Skill Standards Act of 1994 (20 U.S.C. 
                5934(c)(3)) is amended by striking ``the 
                Capacity Building and Information and 
                Dissemination Network established under section 
                453(b) of the Job Training Partnership Act (29 
                U.S.C. 1733(b)) and''.
                    (B) Section 508.--Section 508(1) of the 
                National Skill Standards Act of 1994 (20 U.S.C. 
                5938(1)) is amended to read as follows:
            ``(1) Community-based organization.--The term 
        `community-based organization' means a private 
        nonprofit organization of demonstrated effectiveness 
        that is representative of a community or a significant 
        segment of a community and that provides workforce and 
        career development activities, as defined in section 4 
        of the Workforce and Career Development Act of 1996.''.
            (17) Elementary and secondary education act of 
        1965.--
                    (A) Section 1205.--Section 1205(8)(B) of 
                the Elementary and Secondary Education Act of 
                1965 (20 U.S.C. 6365(8)(B)) (as amended by 
                subsection (j)(2)(B)) is further amended by 
                striking ``, the Individuals with Disabilities 
                Education Act, and the Job Training Partnership 
                Act'' and inserting ``and the Individuals with 
                Disabilities Education Act''.
                    (B) Section 1414.--Section 1414(c)(8) of 
                the Elementary and Secondary Education Act of 
                1965 (20 U.S.C. 6434(c)(8)) is amended by 
                striking ``programs under the Job Training 
                Partnership Act,'' and inserting ``activities 
                under the Workforce and Career Development Act 
                of 1996,''.
                    (C) Section 1423.--Section 1423(9) of the 
                Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 6453(9)) is amended by striking 
                ``programs under the Job Training and 
                Partnership Act'' and inserting ``activities 
                under the Workforce and Career Development Act 
                of 1996''.
                    (D) Section 1425.--Section 1425(9) of the 
                Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 6455(9)) is amended by striking ``, 
                such as funds under the Job Training 
                Partnership Act,'' and inserting ``, such as 
                funds made available under the Workforce and 
                Career Development Act of 1996,''.
            (18) Freedom support act.--The last sentence of 
        section 505 of the FREEDOM Support Act (22 U.S.C. 5855) 
        is amended by striking ``, through the Defense 
        Conversion'' and all that follows through ``or 
        through'' and inserting ``or through''.
            (19) Internal revenue code of 1986.--
                    (A) Section 42.--Section 42(i)(3)(D)(i)(II) 
                of the Internal Revenue Code of 1986 is amended 
                by striking ``assistance under'' and all that 
                follows through ``or under'' and inserting 
                ``assistance under the Workforce and Career 
                Development Act of 1996 or under''.
                    (B) Section 51.--Section 51(d) of the 
                Internal Revenue Code of 1986 is amended by 
                striking paragraph (10).
                    (C) Section 6334.--Section 6334(d)(12) of 
                the Internal Revenue Code of 1986 is amended to 
                read as follows:
            ``(12) Assistance under the workforce and career 
        development act of 1996.--Any amount payable to a 
        participant in workforce and career development 
        activities carried out under the Workforce and Career 
        Development Act of 1996 from funds appropriated under 
        such Act.''.
            (20) Emergency jobs and unemployment assistance act 
        of 1974.--
                    (A) Section 204.--Section 204(b) of the 
                Emergency Jobs and Unemployment Assistance Act 
                of 1974 (26 U.S.C. 3304 note) is amended by 
                striking ``designate as an area'' and all that 
                follows and inserting ``designate as an area 
                under this section an area that is a local 
                workforce development area under the Workforce 
                and Career Development Act of 1996.''.
                    (B) Section 223.--Section 223 of the 
                Emergency Jobs and Unemployment Assistance Act 
                of 1974 (26 U.S.C. 3304 note) is amended--
                            (i) in paragraph (3), by striking 
                        ``assistance provided'' and all that 
                        follows and inserting ``assistance 
                        provided under the Workforce and Career 
                        Development Act of 1996;''; and
                            (ii) in paragraph (4), by striking 
                        ``funds provided'' and all that follows 
                        and inserting ``funds provided under 
                        the Workforce and Career Development 
                        Act of 1996;''.
            (21) Rehabilitation act.--Section 612(b) of the 
        Rehabilitation Act of 1973 (29 U.S.C. 795a(b)) is 
        amended by striking ``the Job Training Partnership 
        Act'' and inserting ``the Workforce and Career 
        Development Act of 1996''.
            (22) Job training reform amendments of 1992.--
        Section 701 of the Job Training Reform Amendments of 
        1992 (29 U.S.C. 1501 note) is repealed.
            (23) Public law 98-524.--Section 7 of Public Law 
        98-524 (29 U.S.C. 1551 note) is repealed.
            (24) Veterans' benefits and programs improvement 
        act of 1988.--Section 402 of the Veterans' Benefits and 
        Programs Improvement Act of 1988 (29 U.S.C. 1721 note) 
        is amended--
                    (A) in subsection (a), by striking ``title 
                III of the Job Training Partnership Act (29 
                U.S.C. 1651 et seq.)'' and inserting ``the 
                Workforce and Career Development Act of 1996'';
                    (B) in subsection (c), by striking 
                ``Training, in consultation with the office 
                designated or created under section 322(b) of 
                the Job Training Partnership Act,'' and 
                inserting ``Training''; and
                    (C) in subsection (d)--
                            (i) in paragraph (1), by striking 
                        ``under--'' and all that follows 
                        through ``the Veterans' '' and 
                        inserting ``under the Veterans' ''; and
                            (ii) in paragraph (2), by striking 
                        ``Employment and training'' and all 
                        that follows and inserting ``Employment 
                        and training activities under the 
                        Workforce and Career Development Act of 
                        1996.''.
            (25) Veterans' job training act.--
                    (A) Section 13.--Section 13(b) of the 
                Veterans' Job Training Act (29 U.S.C. 1721 
                note) is amended by striking ``assistance under 
                the Job Training Partnership Act (29 U.S.C. 
                1501 et seq.)'' and inserting ``assistance 
                under the Workforce and Career Development Act 
                of 1996''.
                    (B) Section 14.--Section 14(b)(3)(B)(i)(II) 
                of the Veterans' Job Training Act (29 U.S.C. 
                1721 note) is amended by striking ``under part 
                C of title IV of the Job Training Partnership 
                Act (29 U.S.C. 1501 et seq.)'' and inserting 
                ``under the Workforce and Career Development 
                Act of 1996''.
                    (C) Section 15.--Section 15(c)(2) of the 
                Veterans' Job Training Act (29 U.S.C. 1721 
                note) is amended--
                            (i) in the second sentence, by 
                        striking ``part C of title IV of the 
                        Job Training Partnership Act (29 U.S.C. 
                        1501 et seq.)'' and inserting ``the 
                        Workforce and Career Development Act of 
                        1996''; and
                            (ii) in the third sentence, by 
                        striking ``title III of''.
            (26) Worker adjustment and retraining notification 
        act.--Section 3(a)(2) of the Worker Adjustment and 
        Retraining Notification Act (29 U.S.C. 2102(a)(2)) is 
        amended by striking ``to the State'' and all that 
        follows through ``and the chief'' and inserting ``to 
        the Governor of the appropriate State and the chief''.
            (27) Title 31, united states code.--Section 6703(a) 
        of title 31, United States Code, is amended by striking 
        paragraph (4) and inserting the following:
            ``(4) Activities under the Workforce and Career 
        Development Act of 1996.''.
            (28) Veterans' rehabilitation and education 
        amendments of 1980.--Section 512 of the Veterans' 
        Rehabilitation and Education Amendments of 1980 (38 
        U.S.C. 4101 note) is amended by striking ``the 
        Comprehensive Employment and Training Act (29 U.S.C. et 
        seq.),'' and inserting ``the Workforce and Career 
        Development Act of 1996,''.
            (29) Title 38, united states code.--
                    (A) Section 4102a.--Section 4102A(d) of 
                title 38, United States Code, is amended by 
                striking ``the Job Training Partnership Act'' 
                and inserting ``the Workforce and Career 
                Development Act of 1996''.
                    (B) Section 4103a.--Section 4103A(c)(4) of 
                title 38, United States Code, is amended by 
                striking ``(including part C of title IV of the 
                Job Training Partnership Act (29 U.S.C. 1501 et 
                seq.))''.
                    (C) Section 4213.--Section 4213 of title 
                38, United States Code, is amended by striking 
                ``any employment or training program assisted 
                under the Job Training Partnership Act (29 
                U.S.C. 1501 et seq.),'' and inserting ``any 
                employment and training activity carried out 
                under the Workforce and Career Development Act 
                of 1996,''.
            (30) United states housing act.--Section 23 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437u) is 
        amended--
                    (A) in subsection (b)(2)(A), by striking 
                ``the Job Training'' and all that follows 
                through ``or the'' and inserting ``the 
                Workforce and Career Development Act of 1996 or 
                the'';
                    (B) in the first sentence of subsection 
                (f)(2), by striking ``programs under the'' and 
                all that follows through ``and the'' and 
                inserting ``activities under the Workforce and 
                Career Development Act of 1996 and the''; and
                    (C) in subsection (g)--
                            (i) in paragraph (2), by striking 
                        ``programs under the'' and all that 
                        follows through ``and the'' and 
                        inserting ``activities under the 
                        Workforce and Career Development Act of 
                        1996 and the''; and
                            (ii) in paragraph (3)(H), by 
                        striking ``program under'' and all that 
                        follows through ``and any other'' and 
                        inserting ``activity under the 
                        Workforce and Career Development Act of 
                        1996 and any other''.
            (31) Housing act of 1949.--Section 504(c)(3) of the 
        Housing Act of 1949 (42 U.S.C. 1474(c)(3)) is amended 
        by striking ``pursuant to'' and all that follows 
        through ``or the'' and inserting ``pursuant to the 
        Workforce and Career Development Act of 1996 or the''.
            (32) Older americans act of 1965.--
                    (A) Section 203.--Section 203 of the Older 
                Americans Act of 1965 (42 U.S.C. 3013) is 
                amended--
                            (i) in subsection (a)(2), by 
                        striking the last sentence and 
                        inserting the following: ``In 
                        particular, the Secretary of Labor and 
                        the Secretary of Education shall 
                        consult and cooperate with the 
                        Assistant Secretary in carrying out the 
                        Workforce and Career Development Act of 
                        1996.''; and
                            (ii) in subsection (b), by striking 
                        paragraph (1) and inserting the 
                        following:
            ``(1) the Workforce and Career Development Act of 
        1996,''.
                    (B) Section 502.--Section 502 of the Older 
                Americans Act of 1965 (42 U.S.C. 3056) is 
                amended--
                            (i) in subsection (b)(1)(N)(i) (as 
                        amended by subsection (i)(10)(A)), by 
                        striking ``the Job Training Partnership 
                        Act (29 U.S.C. 1501 et seq.)'' and 
                        inserting ``the Workforce and Career 
                        Development Act of 1996''; and
                            (ii) in subsection (e)(2)(C), by 
                        striking ``programs carried out under 
                        section 124 of the Job Training 
                        Partnership Act (29 U.S.C. 1534)'' and 
                        inserting ``employment and training 
                        activities carried out under the 
                        Workforce and Career Development Act of 
                        1996''.
                    (C) Section 503.--Section 503(b)(1) of the 
                Older Americans Act of 1965 (42 U.S.C. 
                3056a(b)(1)) is amended by striking ``the Job 
                Training Partnership Act,'' each place it 
                appears and inserting ``the Workforce and 
                Career Development Act of 1996,''.
                    (D) Section 510.--Section 510 of the Older 
                Americans Act of 1965 (42 U.S.C. 3056h) is 
                amended by striking ``the Job Training 
                Partnership Act, eligible individuals shall be 
                deemed to satisfy the requirements of sections 
                203 and 204(d)(5)(A) of such Act (29 U.S.C. 
                1603, 1604(d)(5)(A))'' and inserting ``the 
                Workforce and Career Development Act of 1996, 
                eligible individuals shall be deemed to satisfy 
                the requirements of such Act''.
            (33) Omnibus crime control and safe streets act of 
        1968.--Section 1801(b)(3) of the Omnibus Crime Control 
        and Safe Streets Act of 1968 (42 U.S.C. 3796ee(b)(3)) 
        is amended by striking ``activities carried out under 
        part B of title IV of the Job Training Partnership Act 
        (relating to Job Corps) (29 U.S.C. 1691 et seq.)'' and 
        inserting ``activities carried out under subtitle C of 
        title II of the Workforce and Career Development Act of 
        1996''.
            (34) Environmental programs assistance act of 
        1984.--The second sentence of section 2(a) of the 
        Environmental Programs Assistance Act of 1984 (42 
        U.S.C. 4368a(a)) is amended by striking ``and title IV 
        of the Job Training Partnership Act'' and inserting 
        ``and the Workforce and Career Development Act of 
        1996''.
            (35) Domestic volunteer service act of 1973.--
                    (A) Section 103.--The second sentence of 
                section 103(d) of the Domestic Volunteer 
                Service Act of 1973 (42 U.S.C. 4953(d)) is 
                amended to read as follows: ``Whenever 
                feasible, such efforts shall be coordinated 
                with a local workforce development board 
                established under section 108 of the Workforce 
                and Career Development Act of 1996.''.
                    (B) Section 109.--Subsections (c)(2) and 
                (d)(2) of section 109 of the Domestic Volunteer 
                Service Act of 1973 (42 U.S.C. 4959) is amended 
                by striking ``administrative entities 
                designated to administer job training plans 
                under the Job Training Partnership Act'' and 
                inserting ``eligible providers of training 
                services, as defined in section 4 of the 
                Workforce and Career Development Act of 1996''.
            (36) Age discrimination act of 1975.--Section 
        304(c)(1) of the Age Discrimination Act of 1975 (42 
        U.S.C. 6103(c)(1)) is amended by striking ``the 
        Comprehensive Employment and Training Act of 1974 (29 
        U.S.C. 801, et seq.), as amended,'' and inserting ``the 
        Workforce and Career Development Act of 1996''.
            (37) Energy conservation and production act.--
        Section 414(b)(3) of the Energy Conservation and 
        Production Act (42 U.S.C. 6864(b)(3)) is amended by 
        striking ``the Comprehensive Employment and Training 
        Act of 1973'' and inserting ``the Workforce and Career 
        Development Act of 1996''.
            (38) National energy conservation policy act.--
        Section 233 of the National Energy Conservation Policy 
        Act (42 U.S.C. 6873) is amended, in the matter 
        preceding paragraph (1), by striking ``the 
        Comprehensive Employment and Training Act of 1973'' and 
        inserting ``the Workforce and Career Development Act of 
        1996''.
            (39) Community economic development act of 1981.--
        Section 617(a)(3) of the Community Economic Development 
        Act of 1981 (42 U.S.C. 9806(a)(3)) is amended by 
        striking ``activities such as those described in the 
        Comprehensive Employment and Training Act'' and 
        inserting ``employment and training activities 
        described in the Workforce and Career Development Act 
        of 1996''.
            (40) Stewart b. mckinney homeless assistance act.--
        Section 103(b)(2) of the Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11302(b)(2)) is amended by 
        striking ``the Job Training Partnership Act'' and 
        inserting ``the Workforce and Career Development Act of 
        1996''.
            (41) National and community service act of 1990.--
                    (A) Section 177.--Section 177(d) of the 
                National and Community Service Act of 1990 (42 
                U.S.C. 12637(d)) is amended to read as follows:
    ``(d) Treatment of Benefits.--Allowances, earnings, and 
payments to individuals participating in programs that receive 
assistance under this title shall not be considered to be 
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.).''.
                    (B) Section 198c.--Section 198C of the 
                National and Community Service Act of 1990 (42 
                U.S.C. 12653c) is amended--
                            (i) in subsection (b)(1), by 
                        striking ``a military installation 
                        described in section 325(e)(1) of the 
                        Job Training Partnership Act (29 U.S.C. 
                        1662d(e)(1)).'' and inserting ``a 
                        military installation being closed or 
                        realigned under--
                    ``(A) the Defense Base Closure and 
                Realignment Act of 1990 (part A of title XXIX 
                of Public Law 101-510; 10 U.S.C. 2687 note); 
                and
                    ``(B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act 
                (Public Law 100-526; 10 U.S.C. 2687 note).''; 
                and
                            (ii) in subsection (e)(1)(B), by 
                        striking clause (iii) and inserting the 
                        following:
                    ``(iii) an at-risk youth (as defined in 
                section 4 of the Workforce and Career 
                Development Act of 1996).''.
                    (C) Section 199l.--Section 199L(a) of the 
                National and Community Service Act of 1990 (42 
                U.S.C. 12655m(a)) is amended by striking ``the 
                Job Training Partnership Act (29 U.S.C. 1501 et 
                seq.)'' and inserting ``the Workforce and 
                Career Development Act of 1996''.
            (42) Cranston-gonzalez national affordable housing 
        act.--
                    (A) Section 454.--Subparagraphs (H) and (M) 
                of subsection (c)(2), and subsection (d)(7), of 
                section 454 of the Cranston-Gonzalez National 
                Affordable Housing Act (42 U.S.C. 12899c) are 
                amended by striking ``the Job Training 
                Partnership Act'' and inserting ``the Workforce 
                and Career Development Act of 1996''.
                    (B) Section 456.--The first sentence of 
                section 456(e) of the Cranston-Gonzalez 
                National Affordable Housing Act (42 U.S.C. 
                12899e(e)) is amended by inserting ``(as in 
                effect on the day before the date of the 
                enactment of the Workforce and Career 
                Development Act of 1996)'' after ``the Job 
                Training Partnership Act'' each place it 
                appears.
            (43) Violent crime control and law enforcement act 
        of 1994.--Section 31113(a)(4)(C) of the Violent Crime 
        Control and Law Enforcement Act of 1994 (42 U.S.C. 
        13823(a)(4)(C)) is amended by striking ``authorized 
        under the Job Training Partnership Act (29 U.S.C. 1501 
        et seq.)'' and inserting ``or employment and training 
        activities authorized under the Workforce and Career 
        Development Act of 1996''.

SEC. 503. EFFECTIVE DATES.

    (a) Repeals.--
            (1) Immediate repeals.--The repeals made by 
        subsections (a) through (e) of section 501 shall take 
        effect on the date of the enactment of this Act.
            (2) Subsequent repeals.--The repeals made by 
        section 501(f) shall take effect on July 1, 1998.
    (b) Conforming Amendments.--
            (1) Immediately effective amendments.--The 
        amendments made by subsections (a) through (h) of 
        section 502 shall take effect on the date of the 
        enactment of this Act.
            (2) Subsequently effective amendments.--The 
        amendments made by subsections (i) through (l) of 
        section 502 shall take effect on July 1, 1998.
      And the Senate agree to the same.
      That the House recede from its disagreement to the 
amendment of the Senate to the title of the bill and agree to 
the same with an amendment as follows:
      In lieu of the matter proposed to be inserted by the 
amendment of the Senate to the title of the bill, insert the 
following: ``An Act to consolidate Federal employment, 
education, and job training programs and create statewide 
workforce and career development systems, and for other 
purposes.''.
      And the Senate agree to the same.

                                   Bill Goodling,
                                   Steve Gunderson,
                                   Randy ``Duke'' Cunningham,
                                   Howard P. ``Buck'' McKeon,
                                   Frank D. Riggs,
                                   Lindsey Graham,
                                   Mark Souder,
                                 Managers on the Part of the House.

                                   Nancy Landon Kassebaum,
                                   Jim Jeffords,
                                   Dan Coats,
                                   Judd Gregg,
                                   Bill Frist,
                                   Mike DeWine,
                                   John Ashcroft,
                                   Spencer Abraham,
                                   Slade Gorton,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 1617) to 
consolidate and reform workforce development and literacy 
programs, and for other purposes, submit the following joint 
statement to the House and the Senate in explanation of the 
effect of the action agreed upon by the managers and 
recommended in the accompanying conference report:

                         Statement of Managers

                                general

Short title
      1. The House bill is referred to as the CAREERS Act. The 
Senate amendment is referred to as the Workforce Development 
Act of 1995.
      The House recedes with an amendment naming the bill the 
``Workforce and Career Development Act of 1996''.
Table of contents
      2. Both the House bill and the Senate amendment contain a 
table of contents.
      Legislative counsel.
Findings
      3. The Senate amendment provides findings on the failures 
of the existing Federal job training system. The House bill 
contains no findings, except those for title IV, Adult 
Education and Literacy Programs. (See next Note.)
      The Senate recedes.
      3a. The House bill provides findings on the importance of 
improving literacy.
      The House recedes.
Purpose
      4. The House bill provides one purpose for the Act--to 
transform existing programs into a more effective system. The 
Senate amendment contains three purposes: (1) to create 
statewide workforce development systems, (2) to improve skills, 
and (3) to promote economic development.
      The Senate recedes with an amendment combining the 
purposes of both bills.
      4a. The House bill contains additional purposes for the 
youth development and career preparation, adult employment and 
training, and adult education and literacy titles.
      The House recedes.
Authorizations
      5. The House bill provides authorizations of (1) 
$2,324,600,000 for the youth development grant, (2) 
$2,183,000,000 for the adult training grant, and (3) 
$280,000,000 for the adult education and literacy grant. The 
Senate amendment provides for an authorization of 
$5,884,000,000 for workforce development for fiscal year 1996 
and 1997 (which includes funds made available under the Wagner-
Peyser Act). The Senate amendment also provides for an 
authorization of $2,100,000,000 for Job Corps and at-risk 
youth, and $500,000 for transition to the Federal Partnership.
      The Senate recedes with an amendment authorizing ``such 
sums'' for a single workforce and career development block 
grant and ``such sums'' for Job Corps.
      5a. The House bill authorizes funds from fiscal year 
1997-2002. The Senate amendment authorizes funds from fiscal 
year 1998-2001, except that for fiscal years 1996 and 1997, 
$500,000 is authorized for the National Board.
      The Senate recedes with an amendment authorizing 
appropriations beginning in fiscal year 1998 through fiscal 
year 2002.
      6. Both the House bill and the Senate amendment provide 
for program years beginning on July 1 each fiscal year.
      The House recedes.
      7. Both the House bill and the Senate amendment allow 
funds obligated for any program year to be expended by the 
recipient during the program year and 2 years thereafter. 
However, the House bill requires the Secretary to reallot a 
portion of the unexpended funds. Under the Senate amendment, no 
amount can be deobligated if the rate of expenditure is 
consistent with the State's plan.
      The House recedes with an amendment authorizing carryover 
of funds for employment and training and at-risk youth 
activities for up to two years.
Definitions
      8. The House bill, but not the Senate amendment, includes 
a definition of ``administration,'' which applies only to the 
youth grant.
      The House recedes.
      9. Both the House bill and the Senate amendment 
definitions of ``adult'' differ in the calculation of age and 
whether or not an individual is required to be enrolled in a 
secondary school. In addition, the Senate amendment's 
definition of ``adult'' applies only to the definition of adult 
education programs.
      The House and Senate recede.
      10. The House bill and the Senate amendment have similar 
definitions of ``adult education,'' but the House bill includes 
in the definition instruction for adults who are not enrolled 
or not required to be enrolled in school and who lack mastery 
of basic skills.
      The Senate recedes with an amendment combining the 
definition of ``adult education'' in both bills.
      11. The House bill, but not the Senate amendment, 
includes a definition of ``all aspects of the industry,'' which 
applies only to the youth grant.
      The Senate recedes with an amendment to modify the 
definition of ``all aspects of the industry''.
      12. The Senate amendment, but not the House bill, defines 
``appropriate Secretary'' to mean either the Secretary of 
Labor, the Secretary of Education, or both Secretaries acting 
jointly.
      The House recedes.
      13. Both the House bill and the Senate amendment include 
similar definitions of ``area vocational education school.'' 
The Senate amendment includes technical institutions on 
vocational schools, but only if the institute or school admits 
both individuals who have finished secondary school and who 
have left secondary school. The House bill requires that the 
department or division of a junior college, community college, 
or university operate under the policies of the State board.
      The Senate recedes with an amendment replacing the 
reference to ``State board'' with ``eligibility agency''.
      14. The House bill, but not the Senate amendment, 
includes a definition of ``articulation agreement,'' which 
applies only to the youth grant.
      The House recedes.
      15. The House bill and the Senate amendment differ in the 
definition of ``at-risk youth''. For example, the House bill 
defines ``at-risk youth'' as including both out-of-school and 
in-school youth. The Senate amendment defines ``at-risk youth'' 
in terms of low income.
      The House recedes with an amendment defining ``at-risk 
youth'' as an individual who is between the ages of 15 and 21, 
is low-income, and who has additional barriers to education or 
employment.
      15a. The Senate amendment also defines ``at-risk youth'' 
for the purposes of the Job Corps and at-risk youth title.
      The Senate recedes.
      16. The House bill, but not the Senate amendment, 
includes a definition of ``career grant.''
      The Senate recedes with an amendment defining a ``career 
grant'' as a voucher or credit used to purchase training 
services.
      17. The House bill, but not the Senate amendment, 
includes a definition of ``case management.''
      The House recedes.
      18. The House bill and the Senate amendment include 
similar definitions of ``chief elected official,'' except that 
the House bill refers to workforce development areas and the 
Senate amendment refers to substate areas.
      The Senate recedes.
      19. The House bill and the Senate amendment include 
similar definitions of ``community-based organization.'' 
However, the Senate bill requires the organization to have 
demonstrated effectiveness and to provide workforce development 
activities. The House bill lists the activities.
      The House recedes with an amendment defining a 
``community-based organization'' as a private, non-profit 
organization of demonstrated effectiveness.
      While the Managers intend that providers under this 
system, including community-based organizations, be of 
``demonstrated effectiveness,'' this is in no way intended to 
limit the ability of new providers to participate in the 
delivery of services under workforce and career preparation 
programs. Such providers simply must be able to demonstrate 
that they can provide services effectively.
      20. The House bill, but not the Senate amendment, 
includes a definition of ``comprehensive career guidance and 
counseling''.
      The Senate recedes with an amendment to modify the 
definition of ``career guidance and counseling''.
      21. The House bill, but not the Senate amendment, 
includes a definition of ``cooperative education,'' which 
applies only to the youth grant.
      The Senate recedes.
      22. The House bill, but not the Senate amendment, 
includes a definition of ``correctional education agency,'' 
which applies only to the adult education and family literacy 
grant.
      The House recedes.
      23. The House bill, but not the Senate amendment, 
includes a definition of ``cooperative vocational education,'' 
which applies only to the youth grant.
      The House recedes.
      24. The Senate amendment, but not the House bill, 
includes a definition of ``covered activity,'' (programs 
repealed or amended under this Act).
      The House recedes with technical and conforming 
amendments.
      25. The House bill, but not the Senate amendment, 
includes a definition of ``curricula,'' which applies only to 
the youth grant.
      The House recedes.
      26. The House bill, but not the Senate amendment, 
includes a definition of ``demographic characteristics.''
      The House recedes.
      27. The House bill and the Senate amendment have similar 
definitions of ``dislocated worker.'' However, the Senate 
amendment includes in the definition a displaced homemaker and 
an individual unemployed as a result of Federal action limiting 
the use of marine natural resources.
      The Senate recedes with an amendment striking the 
reference to older workers and inserting references to 
displaced homemakers and individuals displaced because of 
Federal action that limits the use of marine natural resources 
in the definition of ``dislocated worker''.
      The Managers agreed to strike the specific reference to 
older workers in the definition because it was determined that 
older workers who are dislocated from their jobs are implicitly 
covered under the definition of a dislocated worker. It is 
still the intent of the Managers, however, that older workers 
who are in need of employment and training activities, be 
served fairly and equitably through employment training 
activities authorized under this Act.
      28. The House bill and the Senate amendment contain 
different definitions of ``displaced homemaker.'' For example, 
the House bill includes in the definition an adult dependent on 
public assistance or a parent whose youngest dependent child is 
ineligible for assistance. The Senate amendment's definition 
requires the Federal Partnership to determine guidelines solely 
for individuals who were full-time homemakers previously 
receiving financial support.
      The Senate recedes with an amendment modifying the 
definition of ``displaced homemaker''.
      29. The House bill, but not the Senate amendment, 
includes a definition of ``earnings.''
      The House recedes.
      30. The Senate amendment, but not the House bill, 
includes a definition of ``economic development activities.''
      The Senate recedes.
      31. The House bill, but not the Senate amendment, 
includes a definition of ``economic development agencies.''
      The House recedes.
      32. The House bill, but not the Senate bill, includes a 
definition of ``economically disadvantaged.''
      The Senate recedes with an amendment changing the term 
``economically disadvantaged'' to ``low-income individual'', 
modifying the reference to poverty guidelines, and striking 
additional State criteria.
      33. The House bill and the Senate amendment include 
similar definitions of ``educational service agency.'' However, 
the House bill provides that an educational service agency be 
recognized as an administrative agency for vocational 
education.
      The House recedes.
      34. The House bill, but not the Senate amendment, 
includes a definition of ``educationally disadvantaged adult,'' 
which applies only to the adult education and family literacy 
grant.
      The House recedes.
      35. The Senate amendment, but not the House bill, 
includes a definition of ``elementary school; secondary 
school.'' In addition, the Senate amendment includes a 
definition of ``local educational agency.'' (See Note 52 for 
the comparable House definition of local educational agency.)
      The House recedes with an amendment striking the 
definition of ``elementary school'' and ``local educational 
agency''.
      36. The House bill, but not the Senate amendment, 
includes a definition of ``eligible institution,'' which 
applies only to the youth grant.
      The Senate recedes with an amendment striking the 
reference to ``intermediate educational agency'' and replacing 
it with ``educational service agency''.
      37. The House bill, but not the Senate amendment, 
includes a definition of ``employed.''
      The House recedes.
      38. The House bill, but not the Senate amendment, 
includes a definition of ``English literacy program.''
      The Senate recedes with an amendment striking the 
reference to ``adults, out-of-school youth, or both''.
      39. The House bill, but not the Senate amendment, 
includes a definition of ``excess number.''
      The House recedes.
      40. The House bill, but not the Senate amendment, 
includes a definition of ``family and consumer sciences.''
      The Senate recedes.
      41. The House bill, but not the Senate amendment, 
includes a definition of ``family literacy services,'' which 
applies only to the adult education and family literacy grant.
      The Senate recedes.
      42. The Senate amendment, but not the House bill, 
includes a definition of ``Federal Partnership.''
      The Senate recedes.
      43. The Senate amendment, but not the House bill, 
includes a definition of ``flexible workforce activities.''
      Legislative counsel.
      44. The House bill, but not the Senate amendment, 
includes a definition of ``Governor.''
      The House recedes.
      45. The House bill, but not the Senate amendment, 
includes a definition of ``individual of limited English 
proficiency.''
      The Senate recedes with an amendment changing ``adult or 
youth'' to ``individual''.
      46. The House bill and the Senate amendment include a 
definition of ``individuals with disabilities.'' The Senate 
amendment also includes a definition of ``individual with a 
disability.'' The House bill refers to the Rehabilitation Act 
of 1973, the Senate amendment refers to section 3 of the 
Americans with Disabilities Act of 1990.
      The House recedes.
      47. The House bill, but not the Senate amendment, 
includes a definition of ``institution of higher education.'' 
(See Note 36 for a definition of ``eligible institution.'')
      The House recedes.
      48. The House bill, but not the Senate amendment, 
includes a definition of ``job search assistance.''
      The House recedes.
      49. The House bill, but not the Senate amendment, 
includes a definition of ``labor market area.''
      The Senate recedes with an amendment striking second 
sentence of House definition.
      50. The House bill, but not the Senate amendment, 
includes a definition of ``library.'' However, the Senate 
amendment includes definitions of ``library consortia,'' 
``library entity,'' and ``public library'' in the provisions 
pertaining to Museums and Libraries. (See Note 550a)
      The House recedes.
      51. The House bill, but not the Senate amendment, 
includes a definition of ``literacy.''
      The Senate recedes.
      52. Both the House bill and the Senate amendment, include 
the same definition for ``local educational agency.'' (See Note 
35 for the comparable Senate definition)
      The Senate recedes.
      53. The Senate amendment, but not the House bill, 
includes a definition of ``local entity.''
      Legislative counsel.
      54. The Senate amendment, but not the House bill, 
includes a definition of ``local partnership.''
      The Senate recedes.
      55. The House bill, but not the Senate amendment, 
includes a definition of ``migrant farmworker.''
      The House recedes.
      56. The Senate amendment, but not the House bill, 
includes a definition of ``National Board.''
      The Senate recedes.
      57. The House bill, but not the Senate amendment, 
includes a definition of ``Native American.'' However, the 
Senate amendment includes definitions of ``Indian,'' ``Alaska 
Native,'' and ``Native Hawaiian'' in the provisions pertaining 
solely to Indian workforce development activities in section 
107. (See Note 422)
      The House recedes.
      58. The House bill, but not the Senate amendment, 
includes a definition of ``nontraditional employment.''
      The Senate recedes with an amendment modifying the 
definition of ``nontraditional employment''.
      59. The House bill, but not the Senate amendment, 
includes a definition of ``on-the-job training.''
      The Senate recedes with an amendment striking the 
reference to the Occupational Employment Statistics Program 
Dictionary, and replacing it with criteria limiting the 
duration of on-the-job training, as appropriate.
      60. The Senate amendment, but not the House bill, 
includes a definition of ``outlying area.'' (See related Note 
76)
      The House recedes.
      61. The Senate amendment, but not the House bill, 
includes a definition of ``participant.''
      The Senate recedes.
      62. The House bill, but not the Senate amendment, 
includes a definition of ``partnership'' which applies only to 
the youth grant.
      The House recedes.
      63. Both the House bill and the Senate amendment include 
a definition of ``postsecondary educational institution.'' The 
House bill refers to eligibility and certification requirements 
under the Higher Education Act of 1965. The Senate amendment 
requires two or four year programs of instruction.
      The Senate recedes.
      64. The House bill, but not the Senate amendment, 
includes a definition of ``preemployment skills training; job 
readiness skills training.''
      The House recedes.
      65. The House bill, but not the Senate amendment, 
includes a definition of ``public assistance.'' (See related 
Note 91)
      The House recedes.
      66. The House bill defines ``rapid response.'' The Senate 
amendment defines ``rapid response assistance.'' The House bill 
specifies who provides the assistance, when on-site contact 
should occur, and lists types of assistance. The House bill 
refers to ``substantial layoff,'' the Senate amendment refers 
to ``layoff of 50 or more people.''
      The House recedes with an amendment combining the two 
definitions into a single definition of ``rapid response 
assistance''.
      67. The House bill, but not the Senate amendment, 
includes a definition of ``registered apprenticeship.''
      The House recedes.
      68. The House bill, but not the Senate amendment, 
includes a definition of ``school dropout.''
      The Senate recedes with an amendment replacing ``youth'' 
with ``individual'' and striking the reference to a certificate 
of a secondary school equivalency program.
      69. The Senate amendment, but not the House bill, 
includes a definition of ``school-to-work activities.''
      The Senate recedes.
      70. The House bill, but not the Senate amendment, 
includes a definition of ``seasonal farmworker.''
      The House recedes.
      71. The House bill, but not the Senate amendment, 
includes a definition of ``Secretary,'' which applies to both 
the youth grant and adult education and family literacy grant.
      The House recedes.
      72. The House bill, but not the Senate amendment, 
includes a definition of ``sequential course of study,'' which 
applies only to the youth grant.
      The Senate recedes with an amendment striking ``youth'' 
and inserting ``individuals.''
      73. The House bill, but not the Senate amendment, 
includes a definition of ``single parent,'' which applies only 
to the youth grant.
      The House recedes.
      74. The House bill, but not the Senate amendment, 
includes a definition of ``skill certificate.''
      The House recedes.
      75. The House bill, but not the Senate amendment, 
includes a definition of ``special populations,'' which applies 
only to the youth grant.
      The House recedes.
      76. Both the House bill and the Senate amendment include 
a definition of ``State,'' however, the House bill includes in 
the definition the Virgin Islands, American Samoa, Guam, and 
the Commonwealth of the Northern Mariana Islands.
      The House recedes.
      77. The Senate amendment, but not the House bill, 
includes a definition of ``State benchmarks.''
      The House recedes with conforming amendments.
      78. The House bill and the Senate amendment include 
different definitions of ``State Educational Agency.'' The 
House bill includes the same definition as the Elementary and 
Secondary Education Act. The Senate amendment's definition 
differs from the Elementary and Secondary Education Act by 
including the State board of education or other officer, and by 
adding the clause ``or, if there is no such officer or agency, 
an officer or agency designated by the Governor or by State 
law.''
      The Senate recedes.
      79. The Senate amendment, but not the House bill, 
includes a definition of ``State goals.''
      The House recedes.
      80. Both the House bill and the Senate amendment include 
a definition of ``State library administrative agency.'' 
However, the Senate amendment definition is included in the 
provisions pertaining to Museums and Libraries. (See Note 550b)
      The Senate recedes. (Definition moves to libraries 
section.)
      81. The Senate amendment, but not the House bill, 
includes a definition of ``statewide system.''
      The House recedes with an amendment including employment 
and training activities, vocational education activities, adult 
education and literacy activities, at-risk youth activities, 
and activities carried out pursuant to the Wagner-Peyser Act in 
the definition of ``statewide system''.
      82. The Senate amendment, but not the House bill, 
includes a definition of ``substate area.''
      The Senate recedes.
      83. The House bill, but not the Senate amendment, 
includes a definition of ``supportive services.''
      The Senate recedes with an amendment streamlining the 
definition of ``supportive services''.
      84. Both the House bill and the Senate amendment include 
similar definitions of ``tech-prep.'' The House bill defines 
``tech-prep education program,'' the Senate amendment defines 
``tech-prep program.''
      The House recedes.
      84a. The Senate amendment refers to State law.
      The House recedes with an amendment striking ``sequence'' 
and inserting ``sequential course of study.''
      84b. The Senate amendment includes work-site learning.
      The House recedes.
      84c. The House bill provides technical preparation in at 
least 1 field. The Senate amendment includes applied economics.
      The House recedes.
      84d. The Senate amendment includes economics.
      The House recedes.
      84e. The House bill refers to careers meeting labor 
market needs.
      The House recedes.
      85. The House bill, but not the Senate amendment, 
includes a definition of ``unemployed.''
      The House recedes.
      86. The House bill, but not the Senate amendment, 
includes a definition of ``unit of general local government.''
      The Senate recedes.
      87. Both the House bill and the Senate amendment 
definitions are the same, except for a technical difference.
      The House recedes.
      88. Both the House bill and the Senate amendment include 
different definitions of ``vocational education.''
      The House recedes.
      89. The House bill, but not the Senate amendment, 
includes a definition of ``vocational student organizations,'' 
which applies only to the youth grant.
      The Senate recedes with an amendment striking all after 
the word ``units''.
      90. The Senate amendment, but not the House bill, 
includes a definition of ``vocational rehabilitation program.''
      The House recedes.
      91. The Senate amendment, but not the House bill, 
includes a definition of ``welfare assistance.'' (See related 
Note 65)
      The Senate recedes.
      92. The Senate amendment, but not the House bill, 
includes a definition of ``welfare recipient.''
      The Senate recedes.
      93. The House bill, but not the Senate amendment, 
includes a definition of ``work experience.''
      The House recedes.
      94. The Senate amendment, but not the House bill, 
includes a definition of ``workforce development activities.''
      The House recedes with an amendment striking ``workforce 
development activities'' and inserting ``workforce and career 
development activities.''
      95. The Senate amendment, but not the House bill, 
includes a definition of ``workforce education activities.''
      The House recedes with an amendment referencing 
``vocational education activities'' and ``adult education and 
literacy activities'' instead of ``workforce education 
activities.''
      96. The Senate amendment, but not the House bill, 
includes a definition of ``workforce employment activities.''
      The House recedes with an amendment referencing 
``employment and training activities'' instead of ``workforce 
employment activities.''
      97. The Senate amendment, but not the House bill, 
includes a definition of ``workforce preparation activities for 
at-risk youth.''
      The House recedes with an amendment referencing ``at-risk 
youth activities'' instead of ``workforce preparation 
activities for at-risk youth.''
      98. The House bill, but not the Senate amendment, 
includes a definition of ``workplace mentor.''
      The House recedes.
      99. The House bill, but not the Senate amendment, 
includes a definition of ``youth.''
      The House recedes.

                               state role

Description of system
      100. The House bill, but not the Senate amendment, uses 
title I to establish an infrastructure for the workforce 
development and literacy system, composed of three block 
grants.
      The House recedes.
      101. The Senate amendment, but not the House bill, 
provides for the Secretaries to make an allotment to each State 
to establish a statewide workforce development system.
      The House recedes with an amendment conforming the 
reference to the Secretary of Education and the Secretary of 
Labor to the ``Secretaries'' as defined in this title.
      102. Under the House bill, grants for programs are 
provided under four separate titles, known as Workforce 
Development and Literacy Programs. (The House bill no longer 
contains a separate title for vocational rehabilitation.) Under 
the Senate amendment, a State must allocate its allotment as 
follows: 25% for workforce employment, 25% for workforce 
education, and the remaining 50% for the flex account.
      The House recedes with an amendment apportioning a 
State's block grant funds as follows: 32 percent for employment 
and training activities, 26 percent for vocational education 
activities, 16 percent for at-risk youth activities, and 6 
percent for adult education and literacy activities.
      102(a). The Senate amendment, but not the House bill, 
provides that 50% of the allotment be used for the flex account 
for workforce employment or workforce education activities, as 
a State may decide. In addition, a State would be required to 
spend a portion of the flex account on school-to-work 
activities. (See Note 350) A State may also use a portion of 
the flex account for economic development activities, if 
certain conditions are met. (See Note 352)
      The House recedes with an amendment apportioning 20 
percent for the flex account.
      103. The House, but not the Senate amendment, allows the 
Governor to transfer up to 10% of the funds between title II 
(youth) and title III (adult training).
      The House recedes.
      104. Under the Senate amendment, but not the House bill, 
the Secretaries are directed to make payments to the Governor 
for workforce employment and to the State educational agency 
for workforce education.
      The House recedes with an amendment providing that block 
grant funds allotted to a State will be distributed to the 
Governor for employment and training and at-risk youth 
activities, and to the eligible agency for vocational education 
and adult education and literacy activities. The amendment 
further provides for a definition for the term ``eligible 
agency.''
      The Managers intend that the reference to ``State law'' 
in determining the individual, entity or agency in a State 
responsible for administering or setting policies for 
vocational education or adult education and literacy includes 
State statutes or the State constitution. The term ``State 
law'' does not include regulations by the Governor. The 
Managers do not intend to prohibit States from redesignating 
the agency or agencies responsible for these activities by 
State statute.
Collaborative process/State boards
      105. The House bill, but not the Senate amendment, 
requires a Governor to certify to the Secretaries that a 
collaborative process has occurred where required under the 
Act.
      The House recedes.
      106. Under the House bill, the collaborative process is a 
process for making the key decisions at the State level, 
including development of the State plan. The collaborative 
process under the Senate amendment is used solely for 
developing the State's strategic plan. The State provides a 
description of the process in its plan.
      The Senate recedes with an amendment clarifying that the 
collaborative process is to be used for the development of the 
State plan.
      107. The House bill and the Senate amendment list the 
participants in the collaborative process.
      The Senate recedes with an amendment combining and 
modifying the lists of participants in the collaborative 
process from both bills.
      In determining who should participate in each State's 
collaborative process, the Managers intentionally limited the 
number of individuals and entities who are required by the 
legislation to participate in such effort. However, this was in 
no way intended to be an exhaustive list. The Managers 
encourage the participation of employment and training 
providers, especially private providers such as outplacement 
firms and for-profit training companies, whose private sector 
perspective and expertise should prove valuable to a State's 
comprehensive workforce preparation efforts.
      108. The House bill, but not the Senate amendment, allows 
States to use existing processes, including State councils, 
that are substantially the same as those described in section 
103(a) and (b), outlining the collaborative process.
      The Senate recedes with an amendment allowing an existing 
State board, council or other entity to serve as the State's 
collaborative process, and describing the functions of such a 
State board.
      109. The Senate amendment permits the Governor to 
establish a State workforce development board to assist in the 
development of the statewide workforce development system. The 
House bill permits existing State boards under section 103(c) 
(See previous Note).
      The Senate recedes.
      110. Both the House bill and the Senate amendment allow 
the Governor to act, if he or she is unable to obtain the 
support of the participants in the collaborative process. 
However, comments from participants must be included in the 
State plan. The House bill specifically gives the Governor 
final authority to submit the State plan, and to make decisions 
for all programs authorized under the Act, except where State 
law provides such authority to an individual or agency other 
than the Governor.
      The Senate recedes with an amendment clarifying that the 
Governor shall have final authority for the content of the 
State plan relating to employment and training and at-risk 
youth activities, and the eligible agency shall have final 
authority for the content of the State plan relating to 
vocational education and adult education and literacy 
activities. The amendment further clarifies that the Governor 
has final authority to submit the State plan, including 
comments submitted by participants in the collaborative 
process. If the eligible agency disagrees with the portion of 
the State plan in its jurisdiction, the eligible agency's 
comments shall be considered to be the State's plan for those 
activities.
      111. The House bill and the Senate amendment provide that 
neither shall be construed to supersede State law or authority, 
although the Senate amendment applies only to education 
activities.
      The Senate recedes with an amendment combining the 
provisions of both bills that provides that nothing in this 
title should supersede State law.
      It was important to the Managers that nothing in this Act 
supersede or negate the authority of any State official, 
agency, or entity over programs under that official's, 
agency's, or entity's jurisdiction. The Managers wish to 
clarify that this protection is also extended to any existing 
authority or jurisdiction granted by State law to State 
Legislatures.
State allotments
            (Workforce Development/At-Risk Youth)
      112. The Senate amendment, but not the House bill, 
provides that funds be expended in accordance with the State's 
laws and procedures.
      The Senate recedes.
      113. Under the Senate amendment, funds for workforce 
development activities will be distributed according to a 
formula based on the following factors: 60% of the funds based 
on each State's percentage share of the population aged 15 to 
65 years, 20% of the funds based on each State's percentage 
share of individuals aged 18 to 64 years who are at or below 
the official poverty line, 10% of the funds based on each 
State's percentage share of the average unemployment rate for 
the previous 2 years; and 10% based on each State's percentage 
share of adult recipients of welfare assistance. The House bill 
has no comparable allotment requirement for a single grant to 
States, but does provide allotments to States under the three 
separate block grants. (See Notes 115, 116, & 117)
      The House recedes with an amendment changing the age 
range of individuals in poverty to ages 16 to 64, and making 
other conforming changes in the State allotments.
      113a. Under the Senate amendment, in addition to the 
factors described in the previous Note, there is a provision 
for a State minimum allocation, so that no State receives less 
than 0.5% of the total allocation. However, the application of 
the minimum grant provision cannot result in an allotment that 
is larger than 150% of the product of a State's population 
times the national per capita payment under the formula (which 
is the total allocation divided by the total population). The 
House bill also includes State minimums in its separate grant 
allotments. (See Notes 115, 116, & 117)
      The House recedes with an amendment striking any 
references to the Federal Partnership.
      113b. Notwithstanding any other provision of the formula 
in the Senate amendment, no State would receive an increase or 
decrease of more than 5% in its share of funds from the 
previous year.
      The House recedes with an amendment striking ``0.95'' and 
inserting ``0.98''; and striking ``1.05'' and inserting 
``1.02''.
      114. The Senate amendment provides funding for Job Corps 
and at-risk youth through an allotment based on 1996 
appropriations for Job Corps, and the remainder distributed by 
formula for workforce preparation activities for at-risk youth. 
The House bill provides funding for at-risk youth under the 
youth grant. (See Note 115). The House bill retains current law 
for Job Corps.
      The Senate recedes.
      114a. Under the Senate amendment, the Secretaries provide 
funds for the operation of Job Corps centers based on the 
amounts appropriated in fiscal year 1996 and such additional 
amounts as are necessary for the construction of new centers.
      The Senate recedes.
      114b. Under the Senate amendment, the Secretaries may 
reserve at-risk youth funds for Indians and Native Hawaiians.
      The Senate recedes.
      114c. Remaining funds for at-risk youth are allocated in 
the Senate amendment based on the following factors: 33\1/3\% 
of the funds based on each State's percentage share of the 
average unemployment rate for the previous two years, 33\1/3\% 
of the funds based on each State's percentage share of 
individuals aged 18 to 64 years who are at or below the 
official poverty line, and 33\1/3\ percent of the funds based 
on each State's percentage share of at-risk youth.
      The Senate recedes.
            (Youth)
      115. Under the House bill's grant for youth (which 
includes in-school and at-risk youth), States are provided an 
amount of funding which bears the same ratio as the average of 
funds they received in fiscal year 1995 under sections 101 and 
101A of the Perkins Act (basic State and tech prep grants) and 
sections 252 and 262 of JTPA (Title II-B Summer Youth and Title 
II-C Youth Training). A small State minimum of \1/4\ of 1% is 
provided. For a description of the Senate allotment for 
workforce development (which includes youth) and the allotment 
for at-risk youth. (See Notes 113 and 114).
      The House recedes.
            (Employment and Training Activities)
      116. Under the House bill's grant for adult employment 
and training, States are provided funds based on each State's 
share of fiscal year 1995 appropriations under JTPA Title II-A 
(Adult Training) and Title III (Dislocated Workers). In 
addition, no State would receive less than 0.25% of the amount 
made available for these activities. For a description of the 
Senate allotment which includes employment and training, see 
Note 113.
      The House recedes.
            (Adult Education)
      117. Under the House bill's grant for adult education and 
literacy, States are provided an allotment of $250,000. Funds 
remaining after these allotments are made would be distributed 
to States in proportion to the adult population who are: at 
least 16 years of age but less than 61 years, beyond the age of 
compulsory school attendance, do not have a high school diploma 
(or the equivalent), and who are not currently enrolled in 
school. For a description of the Senate allotment which 
includes adult education, see Note 113.
      The House recedes.
State responsibilities
            (State plan/General)
      118. Under the House bill, the Governor must submit a 
single State plan (to the Secretaries of Education and Labor) 
for the workforce development and literacy programs under the 
Act. Under the Senate amendment, the Governor must submit a 
single, comprehensive 3-year plan to the Federal Partnership.
      The Senate recedes with an amendment clarifying that the 
State plan will cover a 3-year period.
      119. Under the House bill, but not the Senate amendment, 
the plan remains in effect for 6 years, unless the State 
modifies the plan.
      The Senate recedes with an amendment clarifying that a 
State may submit modifications to its State plan during the 3-
year period.
Contents
      120. Under the Senate amendment, but not the House bill, 
the plan contains three components: (1) the strategic plan, (2) 
the description of workforce employment activities, and (3) the 
description of workforce education activities. The strategic 
plan, developed through the collaborative process, describes 
the statewide strategy and the allocation of funds in the flex 
account.
      The Senate recedes.
      121. Both the House bill and the Senate amendment require 
that State plans include various elements. To the extent both 
the House bill and the Senate amendment contain comparable 
requirements, there are differences in content.
      The Senate recedes with an amendment changing the title 
to ``State Plan'' and striking ``workforce development and 
literacy''.
      121a. Both the House bill and the Senate amendment 
require a description of the collaborative process. The House 
bill and the Senate amendment differ in the use of the 
collaborative process. The Senate amendment also requires a 
demonstration of support by the participants. (See Note 106)
      The House recedes with an amendment requiring the State 
plan to describe the collaborative process, and to demonstrate 
the support of participants for the plan and the agreement of 
the eligible agencies for the plan.
      121b. Both the House bill and the Senate amendment 
require a description of the State goals (and in the Senate 
amendment, State benchmarks) for workforce development and how 
to achieve them.
      The House recedes with an amendment requiring the State 
plan to describe State goals and benchmarks and how workforce 
and career activities will be coordinated to reach them.
      121c. Both the House bill and the Senate amendment 
require a description of the current and future workforce 
development needs of each State.
      The Senate recedes with an amendment requiring the State 
plan to describe workforce and career development needs in the 
State.
      121d. Both the House bill and the Senate amendment 
require a description of performance indicators to measure and 
continuously improve upon the performance of the statewide 
system. The House bill requires the identification of progress 
indicators. (See Notes 123c and 125b for comparable Senate 
provisions)
      The House and Senate recede.
      121e. The House bill, but not the Senate amendment, 
requires a description of how the State will comply with the 
requirements for (1) the designation of workforce development 
areas, (2) the establishment of local boards, (3) integrated 
career center system, and (4) identification of eligible 
education and training providers, as required by the Act.
      The Senate recedes with an amendment requiring the 
identification of local workforce development areas in the 
State plan, with an exception for small States, and the 
development and inclusion of criteria to identify effective and 
ineffective at-risk youth providers and programs.
      Under the conference agreement, local workforce 
development areas are to be identified as a part of the 
collaborative planning process in each State, with such 
identification included in the State plan. As such, it is the 
intent of the Managers that individuals involved in the 
collaborative process, including representatives of local chief 
elected officials, local educational agencies, postsecondary 
institutions (including community colleges), and business, as 
well as others, be involved in the identification of these 
local areas. In addition, as part of the broader requirement 
that the State plan must be made available to the public for 
comment, it is intended that the designation of these areas is 
truly a participatory process.
      Regarding identification of the actual geographic 
boundaries of local workforce development areas, in addition to 
labor market areas, the Managers encourage States to take into 
consideration existing service areas (including service 
delivery areas established under the Job Training Partnership 
Act, areas served by postsecondary institutions and area 
vocational education schools, areas served by local educational 
agencies and intermediate educational agencies, and units of 
general local government). The Managers also encourage States 
to take into account the distance that individuals must travel 
for receipt of services in making such determinations.
      The Managers also intend for the identification of 
effective and ineffective providers of at-risk youth activities 
to provide States and local workforce development boards with 
useful information regarding ``best practices'' and ``failed 
practices'' in addressing the employment and training needs of 
at-risk youth.
      121f. Both the House bill and the Senate amendment 
require a description of how the State will participate in the 
national labor market information system.
      The Senate recedes with an amendment requiring the State 
plan to describe the statewide labor market information system.
      121g. The House bill, but not the Senate amendment, 
requires additional plan elements outlined in titles II-IV.
      The House recedes.
      121h. Both the House bill and the Senate amendment 
require a description of how the State will eliminate 
duplication among services, including a description of common 
data collection and reporting processes.
      The Senate recedes.
      121i. The House bill, but not the Senate amendment, 
requires a description of the process for public comment.
      The Senate recedes.
      121j. Both the House bill and the Senate amendment 
require a description of business participation.
      The House recedes with an amendment clarifying 
participation of labor, as appropriate.
      121k. The House bill, but not the Senate amendment, 
requires assurance that the State will be accountable for funds 
distributed under the Act.
      The Senate recedes.
      121l. The House bill, but not the Senate amendment, 
requires a description of the sanctions which may be imposed 
for actions contrary to the Act.
      The House recedes.
      121m. The Senate amendment, but not the House bill, 
requires a description of how funds in the flex account will be 
allocated among workforce activities.
      The Senate recedes.
      121n. The Senate amendment, but not the House bill, 
requires information regarding the participation of local 
partnerships.
      The Senate recedes.
      121o. The Senate amendment, but not the House bill, 
requires information regarding other public and private 
resources for workforce development activities.
      The House recedes with an amendment including a reference 
to the Wagner-Peyser Act and clarifying the participation of 
employees in the statewide system.
      121p. The Senate amendment, but not the House bill, 
requires information regarding how Veterans' employment 
activities will be coordinated with the statewide system.
      The House recedes.
      121q. The Senate amendment, but not the House bill, 
requires an assurance that funds under the Act will supplement 
and not supplant other public funds for workforce development 
activities.
      The House recedes.
      121r. The Senate amendment, but not the House bill, 
requires information regarding economic development activities, 
if any.
      The House recedes with an amendment striking the 
reference to ``labor organizations'' and replacing it with a 
reference to ``labor, as appropriate''.
      122. Under the House bill, but not the Senate amendment, 
States must provide additional information regarding adult 
employment and training activities.
      The House recedes.
      122a. The House bill, but not the Senate amendment, 
requires a description of how the State will serve the 
employment and training needs of various segments of the 
population, and how it will provide rapid response assistance 
to dislocated workers.
      The Senate recedes with an amendment requiring the State 
plan to describe how the State will serve dislocated workers 
and other unemployed individuals.
      123. Under the Senate amendment, but not the House bill, 
the second part of the plan, developed by the Governor, 
describes workforce employment activities.
      The Senate recedes.
      123a. The Senate amendment requires an identification of 
substate areas. The House bill requires a description of how 
the State will designate local workforce development areas. 
(See Note 129 and 121e).
      The Senate recedes.
      123b. The Senate amendment requires a description of the 
basic features of the State's one-stop career center system. 
The House bill requires a description of how the State will 
establish integrated career center systems. (See Note 121e)
      The House recedes with an amendment requiring the State 
plan to describe the strategy for developing the one-stop 
career center system in the State.
      123c. The Senate amendment requires an identification of 
performance indicators relating to the State goals and 
benchmarks for workforce employment activities. The House bill 
requires an identification of progress indicators. (See related 
Note 121d for comparable House provision)
      The Senate recedes.
      123d. The Senate amendment requires a description of the 
workforce employment activities to be carried out. The House 
bill contains no such specific plan requirement.
      The House recedes with an amendment requiring the State 
plan to describe how the State will provide rapid response 
assistance to dislocated workers.
      123e. The Senate amendment requires a description of the 
steps the State will take over three years to establish a 
statewide labor market information system. The House bill 
requires a description of the State's participation in the 
labor market information system (See Note 121f for comparable 
House provision)
      The Senate recedes.
      123f. The Senate amendment, but not the House bill, 
requires a description of the steps the State will take over 
three years to establish a job placement accountability system.
      The House recedes.
      123g. The Senate amendment requires a description of the 
process the State will use to approve training providers. The 
House bill requires a description of how the State will 
identify education and training providers. (See Note 121e)
      The House recedes with an amendment requiring the State 
plan to describe the process the State will use to identify 
eligible providers of training services.
      124. In order to receive funds for youth, under the House 
bill, but not the Senate amendment, a State must submit 
additional information describing activities for youth.
      The House recedes with an amendment inserting ``With 
respect to vocational education activities, information--''.
      124a. The House bill, but not the Senate amendment, 
requires a description of the State's plan to develop the 
academic and occupational skills of youth and provide the 
attainment of challenging vocational-technical education 
standards. (See Notes 125g and 125k for Senate plan 
requirements regarding workforce education activities to 
improve education and performance measures)
      The Senate recedes with an amendment requiring the State 
plan to describe how the State will develop the academic and 
occupational skills of students participating in vocational 
education activities.
      124b. The House bill, but not the Senate amendment, 
requires a description of how the State will improve 
comprehensive career guidance and counseling. Both the House 
bill and the Senate amendment require a description of how the 
State will address professional development needs. (See related 
Note 125I)
      The Senate recedes with an amendment requiring the State 
plan to describe how the State will improve career guidance and 
counseling.
      124c. The House bill, but not the Senate amendment, 
requires a description of the State's strategy for integrating 
academic, vocational, and work-based learning. Both the House 
bill and the Senate amendment require collaborative efforts. 
(See related Note 125)
      The House recedes.
      124d. Both the House bill and the Senate amendment 
require a description of how the State will encourage the 
participation of parents (and under the House bill--
businesses), in education and youth development activities.
      The Senate recedes with an amendment requiring the State 
plan to describe the involvement of parents and business in 
vocational education activities.
      124e. The House bill, but not the Senate amendment, 
requires a description of how the State will serve single 
parents, displaced homemakers, and single pregnant women and 
promote the elimination of sex bias without mandating a set-
aside.
      The House recedes.
      125. Under the Senate amendment, but not the House bill, 
the third part of the plan, developed by representatives of 
education, describes workforce education activities.
      The Senate recedes.
      125a. The Senate amendment, but not the House bill, 
requires a description of how the funds will be allocated among 
adult education, and among secondary and postsecondary 
vocational education programs. [Note: The House bill has 
separate grants for youth and for adult education and 
literacy.]
      The House recedes with an amendment requiring the State 
plan to describe how vocational education funds will be 
allocated among secondary and postsecondary and adult 
vocational education.
      125b. In the House bill, goals and progress indicators 
for adult education and family literacy must be described in 
the plan as a condition of receiving funds. In the Senate 
amendment, performance indicators for workforce education 
activities must be identified in the plan.
      The House recedes with an amendment moving the reference 
to performance indicators from this section to a single 
reference following the description of the State goals and 
benchmarks included in the State plan.
      125c. The Senate amendment, but not the House bill, 
requires a description of the workforce education activities to 
be carried out.
      The House recedes with technical amendments.
      125d. The Senate amendment requires a description of how 
the State will address the adult education needs of the State. 
The House bill includes an assessment of adult education needs 
in section 104(b)(2)(B). (See Note 121c)
      The Senate recedes.
      125e. The Senate amendment, but not the House bill, 
requires a description of how the State will disaggregate data 
relating to at-risk youth.
      The Senate recedes.
      125f. The Senate amendment, but not the House bill, 
requires a description of how the State will adequately address 
the needs of at-risk youth in alternative education programs.
      The Senate recedes.
      125g. The Senate amendment, but not the House bill, 
requires a description of how the workforce education funds and 
activities are an integral part of State efforts to improve 
education.
      The House recedes with an amendment requiring the State 
plan to describe how the State will address the needs of 
students participating in vocational education activities to be 
taught to the same challenging academic proficiencies as all 
students.
      125h. The Senate amendment, but not the House bill, 
requires a description of how the State will annually evaluate 
the effectiveness of the workforce education plan.
      The House recedes with technical amendments.
      125i. The Senate amendment requires a description of how 
the State will address the professional development needs for 
workforce education activities. (See Note 124b for related 
House provision)
      The House recedes with technical amendments.
      125j. The Senate amendment, but not the House bill, 
requires a description of how the State will provide technical 
assistance to local educational agencies.
      The House recedes.
      125k. The Senate amendment, but not the House bill, 
requires a description of how the State will assess its 
progress in implementing student performance measures.
      The Senate recedes.
      126. Under the Senate amendment, a State must provide 
additional information in the plan to be eligible for funds for 
at-risk youth. However, a State is not required to provide such 
information in order to be eligible for funds for other 
workforce development activities.
      The House recedes with an amendment requiring a 
description to be included in the State plan of the State's at-
risk youth activities and adult education and literacy 
activities.
      127. The Senate amendment provides that the Governor may 
develop the entire plan with the consent of certain 
representatives of education. The House bill provides for the 
Governor, through the collaborative process, (which includes 
representatives of education) to develop the plan. (See Notes 
118 and 121a)
      The Senate recedes.
Conditions
      128. Under the House bill, in order for a State to 
receive a grant under one or more of the programs, it must: 
establish a collaborative process, develop a plan, and comply 
with the requirements of the Act. Additional requirements must 
be satisfied in order to receive an adult education and 
literacy grant. The Senate amendment provides that a State plan 
will be approved if the State has: included the required 
information in the plan, developed the strategic plan through 
the collaborative process, and negotiated the State benchmarks.
      The House recedes with an amendment providing that in 
order to receive funds, a State must submit a State plan 
containing all required elements and prepared through the 
collaborative process.
      128a. The House bill requires States to meet additional 
grant requirements, including establishing goals, progress 
indicators, and performance measures, in order to receive funds 
for adult education and literacy.
      The House recedes.
Provisions regarding local Workforce Development Area/Boards
      129. Under the House bill, the Governor is required to 
designate local workforce development areas through the 
collaborative process, after consultation with local chief 
elected officials, and after considering comments received 
through public participation. The Senate amendment requires 
plan information on substate areas. (See Note 123a)
      The House recedes.
Criteria for selection
      130. Under the House bill, a State is required to 
establish a local workforce development board in each local 
workforce development area. Under the Senate amendment, a State 
may elect to have local workforce development boards in 
substate areas, but is not required to do so. (See Note 182)
      The House and Senate recede.
      131. Both the House bill and the Senate amendment allow 
the Governor to establish criteria for use by local chief 
elected officials in the selection of members of local boards. 
The House bill requires the Governor to determine the criteria 
through the collaborative process. (See Note 183)
      The House and Senate recede.
Certification
      132. Under the Senate amendment, but not the House bill, 
if a State elects to establish State and local workforce 
development boards, or elects to offer services through 
vouchers beginning in program year 2000, it may use up to 50% 
of the funds in the flex account for economic development.
      The Senate recedes.
      133. Under the House bill, but not the Senate amendment, 
the Governor is authorized to certify biennially one board for 
each workforce development area. If a workforce development 
area is a State, the collaborative process may serve as the 
local workforce development board.
      The House recedes.
One-stops/integrated career center systems
      134. The House bill, but not the Senate amendment, 
requires the Governor to ensure the establishment of an 
integrated career center system by local workforce development 
boards within each local workforce development area. The Senate 
amendment requires the Governor to establish a statewide 
approach to integrating employment and training activities. 
(See Note 321)
      The House recedes.
      135. The House bill, but not the Senate amendment, 
requires the Governor, through the collaborative process, to 
establish statewide criteria for selecting career center 
providers. (See Note 322)
      The House recedes.
      136. Both the House bill and the Senate amendment require 
States to implement a statewide approach to the delivery of 
employment and training, based on the concept of integrated or 
one-stop career centers, although the requirements of each bill 
differ. (See Note 323)
      The House and Senate recede.
      136a. The House bill requires a system where common 
intake, assessment, and job search are provided. The Senate 
amendment provides as an option a system where core services 
are provided, regardless of point of entry. (See Note 323a)
      The House and Senate recede.
      136b. Both the House bill and the Senate amendment allow 
for access points that are electronically or computer linked. 
The House bill further provides for the availability of labor 
market information and common management information across the 
system. (See Note 323b)
      The House and Senate recede.
      136c. The House bill requires at least one physical, co-
located career center (to the extent practicable), but 
encourages a network of such centers combined with affiliated 
sites. The Senate amendment provides as an option, that there 
be core services available at not less than one physical 
location in each substate area, and also allows for a 
combination of the options listed above.
      The House and Senate recede.
      137. The House bill, not the Senate amendment, permits 
the Governor, through the collaborative process, to develop 
alternatives to the integrated career center system, subject to 
approval by the Secretaries. (See Note 328)
      The House recedes.
Identification of education/training providers
      138. The House bill requires an identification process 
for determining which service providers are eligible to receive 
funds for adult training or vocational rehabilitation programs 
through vouchers, skill grants, or otherwise. The Senate 
amendment has no such requirement, other than to identify in 
the State plan the criteria for eligible providers, if a State 
chooses to offer services through vouchers. (See Note 339)
      The Senate recedes with an amendment providing that 
certain programs of postsecondary educational institutions are 
automatically eligible to be providers of training services.
      The Managers recognize the demonstrated effectiveness of 
the Center for Employment and Training (CET) in providing 
employment education, training, and placement services to low 
income individuals. While it is recognized that States and 
local boards require flexibility in choosing the most 
appropriate training models to meet their individual needs, it 
is the Managers' intent, where possible, that exemplary models 
of demonstrated effectiveness such as CET be replicated on the 
State and local levels.
      139. The House bill, but not the Senate amendment, 
establishes an alternative eligibility procedure for service 
providers that are not eligible to participate in title IV of 
the Higher Education Act of 1965. (See Note 340)
      The Senate recedes with an amendment requiring the 
Governor to establish an alternative procedure to determine the 
eligibility of other public and private providers of training 
services that are not determined to be automatically eligible.
      The Managers recognize that both private non-profit and 
for-profit providers of training services should be encouraged 
to participate fully as providers of training services. Since 
1980, private sector professional firms have developed 
extensive programs to serve the growing training needs of our 
rapidly changing economy and workforce. Research indicates that 
the training market in the information technology training 
industry alone totaled $2 billion in 1994, most of this 
provided by commercial firms. This section of the legislation 
will enable States to authorize a wide variety of training 
providers to participate in training programs. This expanded 
provider involvement will allow program participants to access 
the training through both public and private providers that 
will best enable them to enter or re-enter the workforce. By 
ensuring that one provider is not favored over another, this 
section provides maximum consumer choice and easy access to 
services.
      140. The House bill requires the State to identify 
performance-based information to be submitted by service 
providers. The Senate amendment has no such requirement, other 
than to identify in the State plan information related to 
ensuring the accountability of service providers, if a State 
chooses to offer services through vouchers. (See Note 341)
      The Senate recedes with an amendment describing the 
information that is required to be submitted by providers 
seeking eligibility under the alternative procedure, and 
additional information that the Governor may also require.
      141. Under the House bill, but not the Senate amendment, 
the Governor must designate a State agency to collect, verify, 
and disseminate performance-based information relating to 
service providers, along with a list of eligible providers, to 
local workforce development boards and integrated career center 
systems. (See Note 342)
      The Senate recedes with an amendment requiring the 
Governor to designate a State agency to collect and disseminate 
the required information, receive applications from providers, 
and publish a list of eligible providers of training services.
      The conference agreement allows States to accept from 
service providers offering programs not automatically eligible 
for participation in training programs, performance information 
consistent with requirements for eligibility under Title IV of 
the Higher Education Act.
      The Managers note that regulations implementing Title IV 
include provisions regarding the calculation of completion 
rates (34 CFR 668.8(f)) and of placement rates (34 CFR 
668.8(g)). The regulations permit Title IV eligibility only for 
those programs with substantiated completion rates of at least 
70 percent and with substantiated placement rates of at least 
70 percent (34 CFR 668.8(e)). States are encouraged to adopt 
similar standards in establishing their performance information 
requirements.
      142. Under the House bill, but not the Senate amendment, 
a service provider who provides inaccurate, performance-based 
information will be disqualified from receiving funds under 
this Act for two years, unless upon an appeal the provider can 
demonstrate that the information was provided in good faith. 
(See Note 343)
      The Senate recedes with an amendment providing that 
providers who intentionally supply inaccurate information shall 
have their eligibility terminated for at least two years. 
Providers who fail to meet required performance criteria or 
otherwise materially violate the provisions of the title may 
also have their eligibility terminated. The Governor is 
required to establish an appeals process.
      The provision of inaccurate information to the designated 
State agency is grounds for disqualification of a provider from 
program participation for two years or longer. The purpose of 
this provision is to penalize providers that intentionally and 
fraudulently misrepresent program performance to obtain 
eligibility. The Managers do not intend that providers be 
disqualified on the basis of minor errors in information 
submitted to the designated State agency, such as small errors 
in math.
      143. Under the House bill, but not the Senate amendment, 
on-the-job training providers are exempt from this section, 
except that performance-based information on such providers 
must be collected and disseminated. (See note 344)
      The Senate recedes with an amendment stating that 
providers of on-the-job training are exempt from these 
requirements. The Governor may require one-stop career centers 
to collect and disseminate performance information about on-
the-job training providers.
      144. The House bill, but not the Senate amendment, 
provides that nothing in this section prohibits a State from 
providing services. (See Note 345)
      The House recedes.
Accountability
      145. Both the House bill and the Senate amendment require 
States to submit a performance report each year. The House 
bill, but not the Senate amendment, requires reporting on 
performance of local areas and local entities; and public 
disclosure of such reports. The Senate amendment, but not the 
House bill, requires the results of any on-going State 
evaluations of workforce development activities. (See Note 163)
      The House recedes with an amendment requiring States to 
submit an annual report on their progress toward meeting their 
goals and benchmarks.
      146. The House bill, but not the Senate amendment, 
requires States to submit a report for adult education and 
literacy.
      The House recedes.
      147. The Senate amendment, but not the House bill, allows 
States to submit a consolidated workforce development and 
welfare assistance report to the Federal Partnership, the 
Secretary of Agriculture, and the Secretary of Health and Human 
Services.
      The Senate recedes.
Core indicators/goals and benchmarks
      148. The Senate amendment establishes two principal goals 
for each statewide system: (1) providing meaningful employment 
and (2) improving skills.
      The House recedes.
      149. The House bill, but not the Senate amendment, 
requires each State to develop a statewide performance 
accountability system. The Senate amendment requires a job 
placement accountability system. (See Note 165)
      The House recedes.
      150. Under the House bill each State must identify 
indicators of performance, consistent with State goals, which 
at a minimum must include core indicators as provided under 
this section. The Senate amendment required benchmarks. (See 
Note 152)
      The House recedes.
      151. The House bill, but not the Senate amendment, 
requires the Secretaries of Labor and Education to collaborate 
with States, representatives of business and others to develop 
technical definitions of core indicators.
      The House recedes.
      152. The House bill requires common core indicators for 
adults, with additional indicators specifically for adult 
employment and training, adult education and literacy, and 
vocational rehabilitation. The House bill also requires core 
performance indicators for youth. The Senate amendment requires 
States to develop benchmarks for attaining the goals of 
meaningful employment and improved skills.
      The House recedes with an amendment combining the core 
indicators for adults in the House bill with the employment 
benchmarks in the Senate bill and combining the core indicators 
for youth development and career preparation in the House bill 
with the education benchmarks in the Senate bill. The amendment 
also clarifies that employment benchmarks apply to employment 
and training activities and, where appropriate, to at-risk 
youth activities and adult education and literacy activities. 
The education benchmarks apply to vocational education 
activities, at-risk youth activities and where appropriate, 
adult education and literacy activities.
      152(a) While certain of the House bill's core indicators 
are similar to the Senate amendment's benchmarks, the House 
bill's indicators are organized around youth and adults. The 
Senate amendment's benchmarks correspond to employment and 
education.
      The House recedes with an amendment requiring States to 
develop minimum measures for certain specific populations, to 
measure how these populations are meeting the State's 
employment and education goals and benchmarks. States may also 
develop such measures for additional populations.
      153. The House bill, but not the Senate amendment, also 
requires, through the collaborative process, the establishment 
of goals for improving literacy and progress indicators to 
evaluate local providers receiving literacy funds.
      The House recedes.
      154. The Senate amendment, but not the House bill, allows 
States to use existing performance measures for skills 
attainment.
      The House recedes with an amendment clarifying that the 
special rule applies to a State that adopts performance 
indicators, attainment levels, or assessments.
      The Managers intend that if a State has already 
implemented a system of evaluation, that State may use this 
system rather than developing a new system of measures. The 
Managers recognize many States have already established 
rigorous State academic measures for both vocational and non-
vocational students and the Managers do not want to duplicate 
the efforts of these States. The Managers want to make sure 
however, that if a State desires to change these measures, the 
Special Rule does not preclude any State from revising their 
State academic or other standards. The Managers also want to 
clarify that the decision of whether or not to use existing 
State measures is a State decision and is not mandated by this 
bill.
      155. Under the House bill, but not the Senate amendment, 
each State must identify expected levels of performance for 
local areas, which may be adjusted by the Governor through the 
collaborative process.
      The House recedes.
      156. Under the House bill, the Secretaries, through 
collaboration with States, representatives of business, and 
others, must identify challenging levels of performance with 
respect to core indicators. Under the Senate amendment, the 
Federal Partnership must establish model benchmarks based on 
existing State efforts.
      The House recedes with an amendment providing that the 
Secretaries shall provide technical assistance to States that 
request such assistance in the development of State benchmarks, 
which may include the development of model benchmarks.
      If the Secretaries of Education and Labor decide to 
develop model benchmarks in order to provide effective 
technical assistance to the States, the Secretaries must do so 
in collaboration with the States and with other appropriate 
parties. The Managers intend that this collaborative process 
include Governors, leading representatives of business and 
industry, representatives of employees, leaders in education 
and training, parents, and other interested parties for the 
identification of challenging benchmarks which States may use 
as models in development of their own State benchmarks. Such 
process may also include the development of technical 
definitions for use by the States in measuring the benchmarks, 
in order to encourage nationwide comparability of data.
      157. The Senate amendment, but not the House bill, 
provides a process through which States negotiate with the 
Federal Partnership to determine appropriate benchmark levels.
      The Senate recedes.
Incentives
      158. Both the House bill and Senate amendment provide 
incentive grants based on performance. The House bill provides 
incentive grants and grants for exemplary statewide system 
design, funded through the adult and employment training grant. 
[Note: State to local incentive grants are discussed under the 
heading ``Uses of Funds'']
      The House and Senate recede.
      159. The Senate amendment, but not the House bill, 
provides incentive grants of up to $15 million annually to 
States that (1) reach or exceed their benchmarks, (2) reduce 
the number of welfare recipients, or (3) choose to offer 
services through vouchers.
      The House recedes with an amendment providing that the 
Secretaries may award incentive grants of not more than $15 
million per year to States that reach, exceed, or demonstrate 
continuing progress toward reaching State benchmarks. In order 
for a State to be eligible to receive an incentive grant, the 
Governor and eligible agency must agree on all contents of the 
State plan. If the State is not eligible for receipt of an 
incentive grant, the Secretaries shall provide technical 
assistance to the State upon request. A State that is initially 
determined ineligible for an incentive grant will have 30 days 
to revise its benchmarks.
Sanctions
      160. The Senate amendment, but not the House bill, allows 
the Federal Partnership to determine the imposition of 
sanctions of States that have failed to demonstrate progress 
toward reaching their benchmarks over three years.
      The House recedes with an amendment providing that a 
State that fails to meet its benchmarks for the 3-years covered 
by a State plan, may be sanctioned by the Secretaries by up to 
10 percent of its total block grant allotment.
      161. Both the House bill and the Senate amendment permit 
the Secretaries to reduce funding for poor performance. The 
House bill provides for a reduction of 5% based on the State's 
degree of failure. The House bill also provides for technical 
assistance.
      The Senate recedes with an amendment providing that the 
Secretaries may determine whether the State's failure to meet 
its benchmarks was attributable to one or more categories of 
activities authorized under this title. If so, the Secretaries 
may provide technical assistance or reduce the portion of the 
allotment for the responsible category not more than 10 
percent.
      161a. Under the Senate amendment, but not the House bill, 
if a State has submitted an integrated plan under section 
105(b)(5), the Secretaries may reduce only the portion of 
funding (up to 5%) for the category of activities--workforce 
employment or workforce education--to which the failure is 
attributable. States would also be required to transfer an 
equal percentage of funds from such reduced category of 
activities to the other category and spend such amount in 
accordance with the integrated plan.
      The Senate recedes.
      161b. Under the Senate amendment, but not the House bill, 
funds returned by the Secretaries as a result of a reduction 
may be used to award incentive grants.
      The House recedes with technical amendments.
Local sanctions and consequences
      162. The House bill, but not the Senate amendment, allows 
the Governor, through the collaborative process, to establish 
criteria for determining poor performance of local entities.
      The House recedes.
      162a. The House bill, but not the Senate amendment, 
allows the Governor, through the collaborative process, to 
provide technical assistance to local workforce development 
areas that perform poorly. Continued poor performance may 
result in a reduction of funds or other corrective action.
      The House recedes.
Evaluations
      163. Both the House bill and the Senate amendment provide 
for ongoing evaluations of employment-related activities, 
including the use of controlled experiments using groups chosen 
by random assignment. In the House bill, the Secretary of Labor 
performs the evaluations, and in the Senate amendment the 
States perform the evaluations. (See Note 417a)
      The House recedes with an amendment requiring States to 
conduct ongoing evaluations of employment and training 
activities through the use of controlled experiments. Such 
evaluations would determine, at a minimum, whether employment 
and training activities effectively raise the hourly wage rates 
of participants. States would be required to conduct at least 1 
evaluation during any period in which the State is receiving 
funding, but could enter into an agreement with another State 
to share the costs of such evaluation.
      164. The House bill, but not the Senate amendment, also 
allows the Secretary of Labor to conduct evaluations of other 
Federal employment-related programs to determine their 
effectiveness. (See Note 417b)
      The House recedes.
Job placement accountability system
      165. The Senate amendment, but not the House bill, 
requires each State to establish a job placement accountability 
system to provide a uniform set of data to measure progress of 
the State toward reaching its benchmarks.
      The Senate recedes.
Management information system
      166. The House bill, but not the Senate amendment, 
authorizes each State to design a unified management 
information system for reporting and monitoring programs and 
workforce development expenditures. Such system must ensure 
privacy protections.
      The Senate recedes with an amendment authorizing States 
to operate fiscal and management accountability information 
systems that streamline reporting and monitoring of Federal 
funds for employment and training activities and at-risk youth 
activities. In addition, States are authorized to utilize 
quarterly wage records available through the unemployment 
insurance system to facilitate reporting on employment 
benchmarks. The State is required to protect the 
confidentiality of any information obtained pursuant to the 
fiscal and management accountability information system through 
the use of recognized security procedures and shall also comply 
with the provisions of the Family Education Rights and Privacy 
Act under Section 444 of the General Education Provisions Act.
Other
      167. The Senate amendment, but not the House bill, 
provides that States monitor the participation of individuals 
who are engaged in workforce activities as a condition of 
receiving welfare assistance.
      The Senate recedes.
General State provisions
      168. Both the House bill and the Senate amendment include 
provisions for disallowed costs. Under the House bill, 
expenditures disallowed by either Secretary for adult 
employment and training, at-risk youth, or vocational 
rehabilitation, may be repaid from funds allocated for such 
grants in subsequent years. Under the Senate amendment, the 
Governor may deduct workforce employment funds allocated to 
substate areas in subsequent program years.
      The House recedes with an amendment providing that if the 
Secretaries require a State to repay funds because a local 
eligible provider of employment and training activities or at-
risk youth activities has expended funds in a manner contrary 
to the objectives of the block grant, and such expenditure does 
not constitute fraud, embezzlement, or other criminal activity, 
the Governor may deduct an equal amount from a subsequent 
program year allocation to the local workforce development area 
from funds available for administration of such activities in 
the local area, for such repayment.
Workers' rights
      169. The Senate amendment, but not the House bill, 
contains limitations on the uses of funds.
      The House recedes.
      169a. The Senate amendment prohibits funds from being 
used to pay the wages of incumbent workers.
      The House recedes.
      169b. The Senate amendment restricts the use of funds in 
connection with the relocation of businesses.
      The House recedes with an amendment clarifying that the 
business which has relocated was originally located within the 
United States.
      170. Both the House bill and the Senate amendment 
prohibit the displacement of currently employed workers, 
although the House bill applies only to the adult employment 
and training and youth grants.
      The House recedes.
      171. Both the House bill and the Senate amendment 
prohibit the impairment of existing contracts. However, the 
House bill further requires that any program inconsistent with 
such an agreement must have the approval of the labor 
organization and the employer.
      The Senate recedes with technical amendments.
      172. Both the House bill and the Senate amendment 
prohibit the replacement of terminated employees, although 
there are several differences in content.
      The Senate recedes with technical amendments.
      173. Both the House bill and the Senate amendment address 
health and safety with different standards. The Senate 
amendment also requires standards for workers' compensation.
      The House recedes with an amendment clarifying that to 
the extent workers' compensation law is applicable in a State, 
then workers' compensation shall be provided to participants on 
the same basis as the compensation is provided to other 
individuals in the State engaged in similar employment.
      174. The Senate amendment, but not the House bill, 
provides standards for employment conditions for subsidized 
employment.
      The House recedes.
      175. Both the House bill and the Senate amendment address 
anti-discrimination through different means.
      The Senate recedes with an amendment stating that nothing 
in this Act shall be construed to modify or affect any Federal 
or State law prohibiting discrimination on the basis of race, 
color, religion, sex, national origin, age, or disability and 
that except as otherwise permitted in law, no individual may be 
discriminated against with respect to participation in certain 
workforce and career development activities. In addition, 
nothing in this Act shall be construed to provide an individual 
with an entitlement to a service or to establish a right for an 
individual to bring any action for a violation of a requirement 
of this section or to obtain services, except through the 
grievance procedure specified in this section.
      The phrase ``Except as otherwise permitted in law'' is 
intended to bring Federal workforce and career development 
activities within the scope of relevant civil rights provisions 
which recognize specific exceptions to general prohibitions 
against discrimination. For example, Title IX of the Education 
Amendments Act of 1972, which prohibits discrimination based on 
sex in any education program receiving Federal financial 
assistance, exempts certain institutions, associations and 
activities from its terms. Since workforce and career 
development activities may include ``education programs'' 
within the meaning of Title IX, institutions, associations and 
activities that are exempt from Title IX are likewise exempt 
from this provision's proscription against sex-based 
discrimination.
      176. The Senate amendment, but not the House bill, 
provides for a grievance procedure and remedies for violations 
under this section.
      The House recedes with an amendment requiring States to 
establish a grievance procedure for resolving complaints 
alleging violations of any of the prohibitions or requirements 
described in this section.
      176a. The Senate amendment, but not the House bill, 
provides remedies that may be imposed under this paragraph for 
violations of the prohibitions and requirements described in 
this subsection.
      The House recedes with an amendment providing that the 
Secretary of Labor shall require a State to repay funds 
expended in violation of the prohibition against business 
relocation.
GED requirements
      177. The Senate amendment, but not the House bill, 
prohibits participation in certain workforce employment 
activities until an individual has obtained a diploma or its 
equivalent, or is enrolled in a program to obtain the same.
      The House recedes with an amendment prohibiting an 
individual from participating in training services until such 
individual has obtained a secondary school diploma or its 
recognized equivalent, or is enrolled in a program or course of 
study to obtain a secondary school diploma or its recognized 
equivalent. An individual would not be denied such training 
services, however, if the requirement is determined to be 
inappropriate after an interview, evaluation or assessment, and 
counseling. Funds made available for training services may be 
used to provide State-approved adult education and literacy 
activities to help individuals meet the requirement.
Drug testing
      178. The Senate amendment, but not the House bill, 
requires local providers to administer a drug test to 
applicants, on a random basis, and to participants, upon 
reasonable suspicion of drug use.
      The House recedes with an amendment providing additional 
safeguards to the mandatory requirement that States conduct 
drug testing of participants in training services. Such 
safeguards include voluntary guidelines based upon the 
Mandatory Guidelines for Federal Workplace Drug Testing 
Programs, immunity from liability, prohibition against the use 
of drug test results in criminal actions, and reporting 
requirements to prevent unnecessary multiple tests.
American made
      179. The House bill, but not the Senate amendment, 
includes a provision encouraging the purchase of American-made 
products.
      The Senate recedes with an amendment striking the notice 
requirement with respect to the purchase of American-made 
products.
No entitlement to services
      180. The House bill prohibits private rights of action 
for services under the adult employment and training title. The 
Senate amendment provides that no individual is entitled to 
services under the Act.
      The House and Senate recede.

                               local role

Establishment of local workforce development boards
      182. The House bill requires the Governor to ensure the 
establishment of workforce boards within each workforce 
development area. The Senate amendment allows, but does not 
require, the State to establish local workforce boards in each 
substate area. (See Note 130)
      The Senate recedes with an amendment requiring the 
establishment of a local workforce development board in each 
local workforce development area in a State.
      183. Both the House bill and the Senate amendment allow 
the Governor to establish criteria for use by local chief 
elected officials in the selection of members of local boards. 
The House bill requires the Governor to determine the criteria 
through the collaborative process. (See Note 131)
      The House recedes with an amendment requiring the 
Governor of a State to establish criteria for the appointment 
of members to local boards, which criteria shall be included in 
the State plan.
      184. Both the House bill and the Senate amendment include 
minimum requirements for representation on local workforce 
boards.
      The Senate recedes with an amendment requiring a majority 
of business representatives on the local board.
      184a. Both the House bill and the Senate amendment 
require a majority business representation. The House bill 
further specifies the types of representatives.
      The Senate recedes with an amendment inserting ``a 
majority of members who are representatives of business and 
industry in the workforce development area appointed from among 
nominations submitted by local business organizations and trade 
associations;''.
      184b. Both the House bill and the Senate amendment 
require representation of one or more individuals with 
disabilities.
      The House and Senate recede.
      184c. Both the House bill and the Senate amendment 
include representatives of education. The House bill further 
specifies the types of representatives, including training 
providers.
      The House recedes with an amendment requiring 
representatives of education on the local board.
      184d. Both the House bill and the Senate amendment 
include representatives of community-based organizations, 
employees, and veterans. The Senate amendment includes a 
minimum 25% representation requirement for this category of 
representatives excluding veterans.
      The Senate recedes with an amendment requiring 
representatives of employees, which may include labor, on the 
local board. Additional members of the board may include 
individuals with disabilities, parents, veterans, and 
community-based organizations.
      185. The House bill requires that the local board elect 
its chairperson from among the members of its board, and allows 
the board to adopt its operating procedures. The Senate 
amendment requires that each local board select a chairperson 
from its business members.
      The Senate recedes with an amendment requiring the local 
board to elect its own chairperson from among the members of 
the board.
      186. The House bill includes provisions governing the 
selection of members of local workforce boards, including 
provisions governing the appointment of board members by 
locally-elected officials, in areas with multiple 
jurisdictions. The Senate amendment contains similar provisions 
governing selection of representatives of local partnerships, 
but not of local boards (See Note 199c).
      The Senate recedes with an amendment authorizing the 
chief local elected official to appoint the members of the 
local board. Where a local workforce development area is 
comprised of more than one unit of local government, the chief 
elected officials of such units are authorized to enter into an 
agreement defining their respective roles. If the chief elected 
officials are unable to reach agreement, the Governor is 
authorized to appoint the members of the local board.
      187. The House bill, but not the Senate amendment, 
authorizes the Governor to biennially certify one local 
workforce board for each workforce development area. (See Note 
133)
      The Senate recedes with an amendment authorizing the 
Governor to annually certify one local board in each local 
workforce development area. Such certification shall be based 
on criteria outlined in the State plan and for a second or 
subsequent certification the extent to which the local board 
has ensured that local programs have met expected levels of 
performance. Failure to achieve certification shall result in 
reappointment of another local board pursuant to the 
requirements of this section. A Governor may decertify a local 
board at any time for fraud, abuse, or failure to perform its 
required duties (with the exception of the duty of negotiate 
with the Governor on local benchmarks and on the designation of 
one-stop career centers).
      The references to Governor in the certification process 
shall mean that the Governor or the Governor's designee is 
authorized to certify local workforce development boards.
      188. Under the House bill, if the workforce development 
area is a State, the State collaborative process may serve as 
the local workforce development board. (See Note 133). The 
Senate amendment contains a comparable provision for the local 
partnership. (See Note 201)
      The Senate recedes with an amendment providing an 
exception for small States that may designate the members of 
the collaborative process at the State level to carry out the 
required activities in this section.
      189. The House bill and the Senate amendment list certain 
duties/functions of local workforce boards.
      Legislative counsel.
      189a. Both the House bill and the Senate amendment 
require local workforce boards to develop, and submit to the 
Governor, a local workforce development plan. The House bill 
requires a biennial plan, and a local approval process. If the 
board is unable to obtain the approval of local officials, the 
plan may be submitted directly to the Governor, with the 
comments of such officials. The Senate amendment requires a 3-
year plan, but contains no comparable local approval process, 
but does require that the board consult with chief elected 
officials. (See Note 193)
      The Senate recedes with an amendment requiring local 
boards to conduct the following activities: (1) develop and 
submit to the Governor a local workforce development plan, 
outlining the employment and training activities and at-risk 
youth activities to be carried out in the local area; (2) 
designate or certify one-stop career center eligible providers 
in the local area, award competitive grants to at-risk youth 
eligible providers, and conduct oversight with respect to local 
programs; and (3) make recommendations to the Governor 
identifying eligible providers of training services.
      190. The Senate amendment, but not the House bill, 
requires the local board to enter into local agreement with the 
Governor including how funds shall be spent for workforce 
development activities. (See Note 199).
      The Senate recedes.
      191. The House bill requires the local board to identify 
and assess the needs of the local workforce development area. A 
similar provision is included in the Senate amendment under the 
local plan.
      The House recedes.
      192. The House bill and the Senate amendment contain 
budget and oversight duties for the local board. (See related 
Note 192b)
      The House recedes.
      192a. The House bill requires the local board to develop 
a budget for the adult training and the at-risk youth programs, 
and the integrated career center system, subject to the 
approval of the local elected official(s). (See related Note 
192b)
      The House recedes.
      192b. The House bill requires the local board (in 
partnership with the local elected official(s)) to conduct 
oversight of the above-listed programs. The Senate amendment 
requires the local board to oversee the operation of the one-
stop delivery system, including the designation of local 
entities and approval of annual budgets. (See related Note 
192a)
      The House recedes with an amendment requiring the local 
board and the Governor to negotiate and reach agreement on 
local benchmarks to measure the performance of employment and 
training activities and at-risk youth activities and the 
process to be used by the local board to designate or certify 
one-stop career center eligible providers. The Governor and the 
local board may agree to certify a one-stop career center 
provider that was established prior to the date of enactment of 
this Act.
      192c. The Senate amendment, but not the House bill, also 
requires the local board to submit annual progress reports to 
the Governor.
      The Senate recedes.
      193. The Senate amendment requires that the local board's 
functions be conducted in consultation with the local chief 
elected official(s). (See Notes 189a, 192a and 192b for related 
House provisions)
      The House recedes with an amendment requiring the local 
board to consult with the chief local elected official in 
developing the local plan, to provide copies of the local plan 
to such official, and to include any recommendations submitted 
by such official with the local plan submitted to the Governor.
      194. The House bill provides that the local board may 
receive and disburse funds for adult training and at-risk youth 
programs, or may designate a fiscal agent (which may include 
the State through a mutual agreement between the local board 
and the State). The Senate amendment contains no comparable 
provision.
      The House recedes.
      194a. The House bill allows the local board to employ its 
own staff. The Senate amendment contains no comparable 
provisions.
      The House recedes.
      The Managers agree that statutory language authorizing 
local boards to employ staff is not necessary, as such 
authority is implicit in the legislation. Up to 10 percent of 
employment and training funds and at-risk youth distributed to 
local workforce development areas may be spent on 
administrative expenses. While local workforce development 
boards may use a portion of these administrative funds to 
employ necessary staff (limited to 4 percent under the at-risk 
youth provisions), the Managers intend that such 
administrative, and in particular staff expenses of local 
boards be limited. Because local boards will no longer be 
involved in the operation of programs (with limited 
exceptions), as well as the significant reduction of paperwork 
and reporting requirements as a result of this legislation, the 
administrative expenses of local boards should be significantly 
reduced from those currently spent by private industry councils 
under the Job Training Partnership Act.
      195. The House, but not the Senate amendment, specifies 
that the local board may not operate programs established under 
this Act. The House bill further allows Governors to prohibit 
employees of agencies from providing staff support to local 
boards.
      The Senate recedes with an amendment prohibiting local 
boards from carrying out employment and training activities, 
unless granted a waiver by the Governor.
      Although the conference agreement allows a Governor to 
waive restrictions that prohibit a local workforce development 
board from directly providing services, the Mangers believe 
this authority should be exercised only on rare occasions. One 
example would be in a rural area where a competitive selection 
process has produced no other qualified service provider with 
demonstrated expertise. The workforce development board should 
be the service provider of last resort.
      Clearly, a key element of this Act is the reliance on the 
provision of services by entities who meet certain 
qualification standards and are able to achieve specified 
positive outcomes. This, the Managers believe, is best 
accomplished through an open, fair and competitive process to 
select entities to provide services to eligible individuals.
      196. The House bill and the Senate amendment contain 
similar conflict of interest provisions. Under the House bill, 
the Governor is authorized to enforce more rigorous standards. 
The Senate amendment allows the Governor to determine 
activities that constitute a conflict of interest. The Senate 
amendment also prohibits local board members from voting on 
matters that would benefit immediate family members.
      The Senate recedes with an amendment prohibiting the 
local board from engaging in activities that constitute a 
conflict of interest and requiring the local board to make 
available to the public information regarding the board's 
activities in the local area.
      197. The House bill allows the Governor, through the 
collaborative process, to require local boards to carry out 
other duties as determined appropriate.
      The House recedes.
      198. Under the Senate amendment, but not the House bill, 
if a State elects to establish State and local boards, or 
elects to offer services through vouchers (starting in the year 
2000), it may use up to 50% of its flex account funds for 
economic development. (See Note 132)
      The Senate recedes.
Local agreements
      199. The Senate amendment, but not the House bill, 
requires the Governor to enter into agreements with local 
partnerships (or where established, local boards), regarding 
workforce development activities in each substate area.
      The Senate recedes.
      199a. Under the Senate amendment, the local partnership 
(or local board) may make recommendations on the allocation of 
funds for, or administration of, workforce education 
activities, in accordance with the Act.
      The Senate recedes.
      199b. The Senate amendment requires that local 
partnerships be established by the chief local elected official 
and includes representation requirements.
      The Senate recedes.
      199c. The Senate amendment provides for the appointment 
of the partnership, by local elected officials, in areas with 
multiple jurisdictions. (See Note 186 for comparable House 
provision).
      The Senate recedes.
      199d. The Senate amendment includes required 
representation of business in the partnership, and a 
requirement that business representatives have a lead role in 
the partnership's activities.
      The Senate recedes.
      199e. The Senate amendment lists the contents of the 
local partnership agreement.
      The Senate recedes.
      200. Under the Senate amendment, but not the House bill, 
if the Governor is unable to reach agreement with the local 
partnership (or board), The Governor shall provide the local 
partnership (or board) an opportunity to comment on fund 
allocation.
      The Senate recedes.
      201. The Senate amendment allows a State to be treated as 
a substate area for purposes of the partnership and local board 
requirements. (See Note 188 for comparable House provision.)
      The Senate recedes.

                              Use of Funds

Education/youth
      202. Both the House bill and the Senate amendment reserve 
funds for State activities.
      The House bill grants general authority to States to 
conduct State programs and activities using not more than 8% of 
funds allotted to the State. The Senate amendment requires the 
State educational agency to carry out statewide workforce 
education activities using 20% of funds made available to the 
State. (See Note 218a)
      The Senate recedes with a technical amendment providing 
that the eligible agency shall conduct State programs and 
activities.
      203. The House bill specifically lists 12 permissible 
activities for which the 8% of State funds may be used. The 
Senate amendment lists 3 broad categories of permissible 
activities for which 20% of the State funds may be used.
      The Senate recedes with an amendment providing a list of 
permissible State uses of funds.
      203a. The House bill, but not the Senate amendment, 
allows a State to use money from their 8% State held funds to 
make performance awards to local communities who have exceeded 
their performance goals, implemented exemplary youth programs 
at the local level, or provided exemplary education services 
and activities for at-risk youth.
      The House recedes.
      204. The House bill, but not the Senate amendment, 
requires institutions receiving funds at the local level under 
the youth development and career preparation grant to use the 
monies to improve youth development and career-related 
education programs.
      The House recedes with a technical amendment.
      205. Both the House bill and the Senate amendment have 
required uses of funds. The House bill requires that funds 
received by eligible institutions at the local level for in-
school youth programs shall be used for specific programs. The 
Senate amendment requires that funds received by the State 
educational agency shall be used for specific workforce 
education activities.
      The Senate recedes with a technical amendment.
      The Managers intend that activities such as purchasing, 
leasing or upgrading equipment, including instructional 
material; inservice training of vocational and academic 
instructors; apprenticeship programs; and those activities 
which provide strong experience in, and understanding of, all 
aspects of the industry students are preparing to enter not be 
precluded from funding at the local level. The bill's list of 
required activities is not meant to limit schools and school 
districts' ability to find creative ways to meet their 
education goals.
      205a. Both the House bill and the Senate amendment 
require integration of academic and vocational education, 
linkages of secondary and postsecondary education, and career 
guidance and counseling. In addition, the Senate amendment 
requires tech-prep to be implemented as part of linking 
secondary and postsecondary education.
      The House recedes with an amendment modifying the list of 
required local uses of funds for vocational education 
activities.
      205b. Both the House bill and the Senate amendment have 
additional required uses of funds.
      The Senate recedes with an amendment with additional 
required local activities for vocational education.
      206. The House bill, but not the Senate amendment, lists 
eleven additional permissible uses of funds by eligible 
institutions at the local level for in-school youth programs.
      The House recedes.
At-risk-youth
      207. The House bill, but not the Senate amendment, grants 
general authority for local workforce development boards to 
subgrant to providers for programs that serve at-risk and out-
of-school youth. (See Note 283)
      The House recedes.
      208. The Senate amendment, but not the House bill, grants 
authority to the Secretary of Labor and Secretary of Education, 
acting jointly on the advice of the Federal Partnership, to 
make allotments to States to enable the Secretary of Labor and 
the States to carry out at-risk youth programs. (See Note 284)
      The Senate recedes.
      209. The Senate amendment, but not the House bill, 
requires the Secretary of Labor to continue funding for Job 
Corps centers who received assistance under part B of title IV 
JTPA in FY 1996 and which were not closed under section 156. 
(See Note 285)
      The Senate recedes.
      210. The Senate amendment, but not the House bill, 
requires States to use a portion of the funds reserved for 
Indians and Native Hawaiians to make grants to eligible 
entities to run summer job programs that provide work-based 
learning opportunities that are directly linked to year-round 
school-to-work activities. The Senate amendment further 
requires that no funds shall be used to displace employed 
workers. (See Note 286)
      [Statutory cite to subsection (c)(3) is incorrect. 
Statutory cite should be subsection (c)(4) which is the 
allotment for at-risk youth.]
      The Senate recedes.
      211. The House bill, but not the Senate amendment, lists 
8 program elements which local workforce development boards are 
required to provide for at-risk and out-of-school youth. (See 
Note 210 for the Senate amendment's required activities.)
      The House recedes.
      212. The House bill lists additional permissible uses of 
funds by eligible providers at the local level for at-risk/out-
of-school youth programs. (See Note 288). The Senate amendment 
permits States to make grants to eligible entities to carry out 
alternative programs or other activities for at-risk youth. The 
activities are not specifically listed.
      The House and Senate recede.
      213. The House bill, but not the Senate amendment, limits 
administrative funds used by a local workforce development 
board to no more than 10%. (See Note 289)
      The House recedes.
      214. The House bill, but not the Senate amendment, does 
not permit local workforce boards to operate programs (See Note 
195), and requires that they subcontract to eligible providers. 
(See Note 290)
      The House recedes.
      215. The House bill, but not the Senate amendment, lists 
eligible providers to receive contracts from the local 
workforce development board including: (1) eligible 
institutions including local educational agencies, area 
vocational schools, intermediate educational agencies; 
postsecondary institutions including community colleges, State 
corrections educational agency and any consortia of the 
aforementioned list; (2) local government entities; (3) 
private, nonprofit organizations including community based 
organizations; (4) private, for-profit entities; or (5) other 
organizations or entities that have a demonstrated 
effectiveness and have been approved by the local workforce 
development board. (See Note 291)
      The House recedes.
Maintenance of effort
      216. The Senate amendment, but not the House bill, 
requires that States expend the same amount of money, or more, 
for workforce education activities as they did the preceding 
fiscal year in order to receive Federal funds. The Senate 
amendment further provides that the Federal Partnership may 
grant a waiver to a State for a 95% maintenance-of-effort 
requirement for 1 year only.
      The House recedes with an amendment which provides that 
if the Federal share for a State decreases, then the fiscal 
effort required of the State shall be decreased by the same 
percentage as the percentage decrease in the overall amount 
made available to the State. The amendment also corrects a 
previous calculation of maintenance of effort.

                              Limitations

Supplement not supplant
      217. Both the House bill and the Senate amendment provide 
that funds used by a State shall supplement and not supplant 
other public funds for workforce education and youth 
development and career preparation programs. The House 
requirement applies to youth development programs, not adult 
education. The Senate amendment applies to workforce education 
programs.
      The House recedes with a technical amendment.
Allocation for State/Local programs
      218. Both the House bill and the Senate amendment have a 
within State allocation. (See related Note 293)
      Legislative counsel.
      218a. The House bill provides that the Governor, through 
the collaborative process, allocate not less than 90% of funds 
to the local level. The Senate amendment provides that the 
State educational agency distribute 80% of funds to eligible 
local entities.
      The Senate recedes with a technical amendment.
      218b. The House bill requires not less than 90% of a 
State's funds for the youth block grant go to the local level 
to serve in-school and at-risk/out-of-school youth, not more 
than 8% for State programs and not more than 2% for 
administration. The Senate amendment requires that 80% of a 
State's funds for workforce education go to the local level, 
and 20% for State activities (with no more than 5% of such 20%) 
for administration.
      The Senate recedes with an amendment providing that not 
less than 85 percent of funds be distributed to the local 
level, not more than 11 percent for State programs, and not 
more than 4 percent for administrative expenses.
      219. The Senate amendment provides that the State 
educational agency shall determine how workforce education 
funds are allocated among secondary vocational education, 
postsecondary vocational education and adult education 
programs. The House bill provides separate funding streams for 
a youth development and career preparation grant and for an 
adult education and literacy grant.
      The House recedes with an amendment requiring the 
eligible agency to determine how vocational education funds 
will be allocated between secondary vocational education and 
postsecondary and adult vocational education.
      220. The House bill, but not the Senate amendment, 
requires that of the 90% of funds sent to the local level, not 
less than 40% of the funds must be used for programs serving 
in-school youth and not less than 40% of the funds must be used 
for programs to serve at-risk and out-of-school youth. Of the 
remaining 20% of funds, the Governor, through the collaborative 
process, can distribute one-half of the remaining funds by 
formula and one-half by either discretionary grant or formula.
      The House recedes.
Within State formula
      221. Both the House bill and the Senate amendment provide 
for a within State formula.
      Legislative counsel.
      221a. The House bill requires the Governor, through the 
collaborative process, to develop a formula taking into account 
local poverty rates, the proportion of the State's youth 
population residing within local communities and other factors 
considered appropriate. In establishing the formula, the 
Governor shall ensure that funds are equitably distributed 
throughout the State and that the factors described above do 
not receive disproportionate weighting.
      The House recedes with a technical amendment.
      221b. The Senate amendment requires distribution of funds 
for secondary school vocational education to be distributed 
according to the current Perkins law formula--70% allocated on 
Title I ESEA formula, 20% allocated based on the number of 
children served under IDEA, and 10% allocated on the total 
number of students enrolled in schools and adults enrolled in 
training programs under the jurisdiction of local educational 
agencies.
      The House recedes with an amendment providing that the 
formula for distribution of funds for secondary school 
vocational education be distributed as follows: 70 percent 
based on the number of children aged 5 to 17 living in poor 
families; and 30 percent based on the overall number of 
students within the local educational agency. The amendment 
also allows an eligible agency to develop an alternative 
formula if such formula distributes more funds to local 
educational agencies with the highest number or percentage of 
poor students.
      The Managers recognize that States are in a better 
position to know their needs and have therefore provided a 
waiver which allows the eligible agency the option to develop 
an alternative formula which would better target poor areas--
both those with high populations of poor and those with high 
percentages of poor. The Managers intend that providing a 
waiver for high percentages of poor will enable more funds to 
flow to poor, rural areas. The requirement that an alternative 
formula target more dollars to school districts that serve the 
``highest'' number or ``greatest'' percentage of poor children 
is meant to include a group of such districts, not a single 
district. A State may determine the range of poor districts 
that it will target with an alternative formula.
      222. Both the House bill and the Senate amendment 
establish minimum grant awards of $15,000 for a local 
educational agency or consortium of such agencies.
      The House recedes.
      223. Both the House bill and the Senate amendment permit 
a State to grant a waiver for the minimum grant amount in cases 
where the eligible recipient is located in a rural, sparsely 
populated area; and demonstrates that they are unable to enter 
into a consortium for purposes of providing services.
      The House recedes with a technical amendment.
      224. The Senate amendment, but not the House bill, 
requires that any funds not allocated by reason of minimum 
grant award for secondary school vocational education shall be 
redistributed to local educational agencies.
      The House recedes with an amendment allowing an eligible 
agency to redistribute funds to rural, poor areas.
      The Managers are concerned that not enough of the Federal 
dollars are reaching rural, poor areas. Language is included 
which creates a source of funds for eligible agencies to 
distribute to high poverty rural areas which are often in 
greater need. Funds for this purpose would come from funds not 
distributed to districts which failed to qualify for the 
minimum grant. These funds would be distributed only to poor, 
rural areas that were ineligible to receive formula funds.
      225. The Senate amendment, but not the House bill, 
retains current Perkins law prohibiting funds from being 
allocated to a local educational agency that serves only 
elementary schools.
      The House recedes.
      226. The Senate amendment retains current Perkins law in 
allocating funds to area vocational education schools or 
educational service agencies. The House bill provides funding 
for area vocational education schools and educational service 
agencies in the within State formula. (See Note 221a)
      The House recedes with an amendment striking the 
requirement that area vocational schools serve more low-income 
or disabled students than the LEA.
      227. The Senate amendment, but not the House bill, 
retains current Perkins law which provides that funds for 
postsecondary and adult vocational education shall be 
distributed according to the formula in current Perkins law 
which gives priority to institutions serving Pell Grant and 
Bureau of Indian Affairs recipients. The House bill provides 
funding for postsecondary education in the within State 
formula. (See Note 221a)
      The House recedes with an amendment striking the 
reservation for corrections vocational education.
      227a. The Senate amendment, but not the House bill, 
allows the Federal Partnership to waive the postsecondary and 
adult vocational education formula in favor of a more equitable 
distribution of funds upon application from the State 
educational agency.
      The House recedes with an amendment striking the 
additional criteria for the alternative formula.
      228. Both the House bill and the Senate amendment 
establish minimum grant awards of $50,000 to postsecondary 
institutions or consortium of such institutions.
      The House recedes.
      229. The House bill, but not the Senate amendment, allows 
secondary-postsecondary institutions to form consortia to 
receive grant funds with a minimum award of $50,000.
      The House recedes.
      230. The Senate amendment, but not the House bill, 
requires that any funds not allocated by reason of minimum 
grant awards for postsecondary and adult vocational education 
shall be redistributed to eligible institutions.
      The House recedes.
      231. The House bill, but not the Senate amendment, 
prevents consortium from forming to receive funds and then 
separate immediately after and divide the funds. The House bill 
further requires that consortia must form for the purposes 
established under the youth development and career preparation 
title and to stay in a consortia arrangement for purposes of 
delivering services to youth.
      The Senate recedes with conforming amendments.
      232. The House bill, but not the Senate amendment, 
establishes minimum grant awards of $15,000 for local workforce 
development boards to serve at-risk/out-of-school youth. 
(Section repeated. See Note 295)
      The House recedes.
      233. The Senate amendment requires States to reserve an 
amount of funds from the amount they receive for postsecondary 
and adult voational education to distribute to State 
corrections agencies. The House bill allows States to use funds 
from their 8% of State monies for corrections education. (See 
Note 203)
      The House recedes with an amendment providing that 
corrections institutions may receive funds for any of the four 
authorized activities.
      234. The Senate amendment, but not the House bill, 
includes definitions for ``eligible institution,'' low-
income,'' and ``Pell Grant recipient'' that only apply to the 
within State formula.
      The House recedes with an amendment striking the 
references to ``eligible institutions'' and ``low-income'' and 
moving the definition of ``Pell Grant recipient'' to the 
general definitions section.
Local process for receipt of funds
      235. The house bill, but not the Senate amendment, states 
that in order to receive a grant at the local level, the local 
workforce development board and eligible institution(s) must 
form a partnership. The purpose of the partnership is to allow 
for collaborative planning, coordination of programs serving 
in-school and at-risk/out-of-school youth and allow for 
effective public participation. (See Note 296)
      The House recedes.
      236. Both the House bill and the Senate amendment provide 
for a local application. (The Senate amendment has a separate 
at-risk application. See related Note 297b)
      The House recedes with an amendment requiring local 
entities to submit an application to the eligible agency for 
vocational educational funds.
      236a. The House bill states that the partnership must 
develop and submit for approval to the Governor, through the 
State collaborative process, a comprehensive plan outlining how 
they are planning to serve both in-school and at-risk/out-of-
school youth.
      The House recedes.
      236b. The Senate amendment requires each eligible entity 
to submit an application to the State educational agency for 
funding of workforce education activities (including vocational 
education activities for youth and adults). The Senate 
amendment further includes a list of items to be included in 
the application.
      The House recedes with an amendment modifying the local 
application for vocational education funds.
      237. The House bill, but not the Senate amendment, 
requires the partnership assure the involvement of parents, 
teachers and the local community in the planning process. (See 
Note 298)
      The House recedes.
      238. The House bill, but not the Senate amendment, 
provides that the Governor, through the collaborative process, 
is authorized to develop procedures for the resolution of 
issues in dispute. (See Note 299).
      The House recedes.
      239a. The House bill outlines that funds directed to the 
local level from the State to serve in-school youth must go to 
schools and eligible institutions. Funds directed to the local 
level from the State to serve at-risk youth will be sent to the 
local workforce development board to be subgranted to eligible 
entities for programs to serve at-risk and out-of-school youth.
      The House recedes.
      239b. The Senate amendment distributes secondary and 
postsecondary workforce education funds by formula to schools. 
(See Notes 221, 226, & 227). At-risk youth funds are 
distributed by competitive grants to local entities. (See Note 
300).
      The House recedes.
Adult education and literacy
      240. The House bill and the Senate amendment provide 
funds for adult education and literacy. The House bill provides 
a separate Adult Education and Family Literacy Block Grant. The 
Senate amendment provides that the State educational agency 
shall determine how workforce education funds are allocated 
among secondary vocational education, postsecondary vocational 
education and adult education and literacy programs. (See Note 
219).
      The Senate recedes on the requirement that the State 
educational agency allocate workforce education funds.
      241. The House bill, but not the Senate amendment, 
requires States to use 3% off the top of their Adult Education 
Block Grant to provide funds, on a competitive basis to local 
service providers that have provided adult education or family 
literacy services to certain target populations.
      The House recedes.
      242. The House bill provides that States may use no more 
than 12% of funds received under the Adult Education Block 
Grant, after the deduction of the 3% for target populations, 
for a variety of specified activities. The Senate amendment 
lists 3 broad categories of permissible activities for which 
20% of workforce education funds reserved at the State level 
may be used.
      The Senate recedes with an amendment providing that not 
more than 10 percent of adult education and literacy funds may 
be spent for a variety of State activities, including 
professional development, technical assistance, technology 
assistance, regional literacy networks, and evaluation.
Matching
      243. The House bill, but not the Senate amendment, 
requires that a State receiving a grant shall spend, from non-
Federal funds, an amount equal to 25% of the State's initial 
and additional allotments of the year for adult education and 
family literacy services.
      The Senate recedes with technical amendments.
      244. The House bill, but not the Senate amendment, 
provides that States may use no more than 3% of their block 
grant, or $50,000, whichever is greater, for planning, 
administration, interagency coordination and support for 
integrated career center systems. The Senate amendment requires 
that 80% of a State's funds for workforce education go to the 
local level, and 20% for State activities (with no more than 5% 
of such 20%) for administration. (See Note 218a)
      The Senate recedes with an amendment providing that not 
more than 5 percent or $50,000 (whichever is greater) of adult 
education and literacy funds shall be spent on administrative 
expenses.
      245. The Senate amendment, but not the House bill, sets a 
local administrative cost limit of 5% on agencies, 
organizations, institutions or consortiums which provide adult 
education instructional activities. Such funds may be used for 
planning, administration, personnel development and interagency 
coordination.
      The Senate amendment further allows the State educational 
agency to negotiate with grant recipients in cases where cost 
limits would be too restrictive to permit them from carrying 
out allowable activities.
      The House recedes with an amendment substituting the 
references to ``State educational agency'' with ``eligible 
agency.''
Distribution
      246. The House bill and the Senate amendment provide for 
the distribution of funds to local providers.
      Legislative counsel.
      246a. The House bill provides that States are to use 85% 
of funds under the block grant to make grants, on a competitive 
basis, to local service providers. The Senate amendment 
provides that a State educational agency shall award grants for 
adult education, on a competitive basis to eligible entities 
and/or a consortia of such entities.
      The House recedes with an amendment requiring that 85 
percent of the adult education and literacy funds be allocated 
to local providers, and lists the entities eligible for 
assistance.
      246b. The House bill and the Senate amendment have 
similar lists of eligible entities, but the House provision is 
contained under its ``equitable access'' provisions. (See Note 
247a)
      The House recedes with an amendment adding ``family 
literacy services'' to a list of eligible entities.
      247. Both the House bill and the Senate amendment provide 
a list of grant requirements.
      Legislative counsel.
      247a. Both the House bill and the Senate amendment 
include a provision requiring direct and equitable access to 
all eligible entities.
      The House recedes with an amendment substituting the 
reference to ``State educational agency'' with ``eligible 
agency'' and restricting the use of adult education and 
literacy funds for programs that serve non-adult populations, 
unless such programs are related to family literacy services.
      247b. The House bill, but not the Senate amendment, 
requires a State to give priority to local service providers 
which demonstrate joint planning with local workforce 
development boards and integrated career center systems.
      The House recedes.
      247c. The Senate amendment, but not the House bill, 
requires States to consider the past effectiveness of 
applicants in providing services, the degree to which the 
applicant will coordinate and utilize other literacy and social 
services available in the community and the commitment of the 
applicant to serve those in the community who are most in need 
of literacy services.
      The House recedes with technical amendments.
      248. The Senate amendment, but not the House bill, allows 
a State educational agency under certain circumstances to award 
a grant to a consortium that includes an eligible entity and a 
for-profit agency, organization or institution.
      The House recedes with a technical amendment.
      249. The House bill, but not the Senate amendment, allows 
a local service provider which receives a grant from a State 
under this subtitle to negotiate with a local workforce 
development board with respect to receipt of payments for adult 
education and literacy services provided by a provider to 
adults referred to the provider by a program supported by other 
titles of the House bill.
      The House recedes.
      250. The House bill, but not the Senate amendment, 
authorizes a local service provider receiving a grant under 
this block grant to receive payment for adult education and 
literacy services provided to an adult participating in 
programs authorized under other titles of the House bill, 
either in the form of a career grant or by some other means.
      The House recedes.
      251. The Senate amendment, but not the House bill, 
requires each eligible entity to submit an application to the 
State educational agency for funding of workforce education 
activities (including adult education activities). (See Note 
236b)
      The Senate recedes.
Use of funds
      252. The House bill requires that local services 
providers which receive a grant must use such grant to 
establish or operate one or more programs that provide 
instruction or services within one or more of the following 
categories: adult basic education, adult secondary education, 
English literacy instruction, and family literacy services.
      The Senate amendment lists literacy and basic education 
services for adults and out-of-school youth, including adults 
and out-of-school youth in correctional institutions and 
programs for adults and out-of-school youth to complete their 
secondary education among their list of Workforce Education 
Activities. (See Senate Section 106(b)(4)(5))
      The Senate recedes with an amendment requiring that adult 
education and literacy funds at the local level be used for 
adult education services, English literacy services, and family 
literacy services.
National Literacy Act
      253. Both the House bill and the Senate amendment 
allocate funds for the National Institute of Literacy.
      The House bill reserves $4.5 million in each fiscal year 
for the National Institute for Literacy. Such funds are 
reserved at the Federal level before distribution to the 
States.
      The Senate amendment reserves 0.15% of the $5,884,000,000 
authorization ($8,830,000) for four programs, including funds 
for the National Institute for Literacy.
      The Senate recedes with an amendment authorizing the 
appropriation of $10 million for fiscal year 1997 and such sums 
through fiscal year 2002 for the National Institute for 
Literacy.
      254. Both the House bill and the Senate amendment 
establish the National Institute for Literacy.
      The House bill requires the Institute to be administered 
under the terms of an interagency agreement entered into by the 
Secretary of Education with the Secretaries of Labor and Health 
and Human Services (the Interagency Group).
      The Senate amendment requires the Institute to be 
administered by the Federal Partnership established under the 
Workforce Development Act of 1995.
      The Senate recedes.
      255. Both the House bill and the Senate amendment allow 
the inclusion in the Institute of any research and development 
center, institute or clearinghouse whose purpose is related to 
the purpose of the Institute.
      Legislative counsel.
      256. The Senate amendment, but not the House bill, 
requires the Institute to have offices separate from the 
offices of the Department of Education or the Department of 
Labor.
      The House recedes.
      257. Both the House bill and the Senate amendment require 
the Interagency Group (Federal Partnership) to consider 
recommendations of the National Institute for Literacy Advisory 
Board (National Institute Council) in planning the goals of the 
Institute and implementing programs to achieve such goals. Both 
the House bill and the Senate amendment require the daily 
operations to be carried out by the Director of the Institute.
      The Senate amendment, but not the House bill, requires 
the Federal Partnership to provide a written explanation to the 
Council if it does not follow the Council's recommendations and 
allows the Council to request a meeting to discuss the 
Council's recommendations.
      The Senate recedes.
      258. Both the House bill and the Senate amendment set 
forth the duties and activities of the Institute, with 
differences.
      The Senate recedes with an amendment listing the 
activities for the National Institute for Literacy.
      259. Both the House bill and the Senate amendment permit 
the Institute to award fellowships with stipends and allowances 
which the Director considers necessary to outstanding 
individuals pursuing careers in adult education or literacy.
      Legislative counsel.
      260. Both the House bill and the Senate amendment provide 
that such fellowships be used to engage in research, education, 
training, technical assistance or other activities to advance 
the field of adult education or literacy.
      Legislative counsel.
      261. The Senate amendment, but not the House bill 
requires individuals receiving fellowships to be called 
``Literacy Leader Fellows.''
      The Senate recedes.
      262. The House bill, but not the Senate amendment, allows 
the Institute to award paid and unpaid internships to 
individuals seeking to help the Institute. The House bill 
allows the Institute to accept and use voluntary and 
uncompensated services as they deem necessary.
      The Senate recedes.
      263. The House bill establishes the National Institute 
for Literacy Advisory Board. The Senate amendment establishes 
the National Institute Council.
      The Senate recedes.
      263a. Both entities serve in an advisory capacity and 
consist of ten individuals appointed by the President with the 
advice and consent of the Senate.
      The Senate recedes.
      263b. Both the House bill and the Senate amendment 
require that such individuals may not otherwise be officers or 
employees of the Federal Government and be representative of 
entities or groups described in Note 264.
      The Senate recedes.
      263c. The Senate amendment requires such individuals to 
be chosen from recommendations made to the President by 
individuals who represent such entities or groups.
      The Senate recedes.
      264. Both the House bill and the Senate amendment 
describe the entities or groups from which members are to be 
chosen. The only differences are that: (a) the House bill, but 
not the Senate amendment, includes providers of programs and 
services involving English language instruction; and (b) the 
House bill refers to ``representatives of employees'' and the 
Senate amendment refers to ``organized labor.''
      The Senate recedes.
      265. Both the House bill and the Senate amendment contain 
a list of duties for the Board (Council). The duties are the 
same.
      The Senate recedes.
      266. The Senate amendment, but not the House bill, 
requires the Council to be subject to the provisions of the 
Federal Advisory Committee Act.
      The House recedes with an amendment substituting the 
reference to ``Council'' with ``Board.''
      267. Both the House bill and the Senate amendment limit 
the term of members of the Board (Council) to three years. The 
Senate amendment prohibits a member from being appointed for 
not more than two consecutive terms. The House bill requires 
that initial terms for members may be one, two or three years 
in order to establish a rotation in which one-third of the 
members are selected each year.
      The Senate recedes with an amendment requiring that any 
member of the Board may not be appointed for more than 2 
consecutive terms.
      268. Both the House bill and Senate amendment contain the 
same provisions for appointing members to fill a vacancy which 
occurs before the expiration of the term for which a member was 
appointed.
      The Senate recedes.
      269. Both the House bill and the Senate amendment contain 
provisions regarding the number of members required to 
constitute a quorum but allow a lesser number to hold hearings. 
Both the House bill and Senate amendment require that 
recommendations be passed only by a majority of its members.
      The Senate recedes.
      270. Both the House bill and Senate amendment provide for 
the election of a chairperson and vice chairperson. The House 
bill provides that each shall serve for a term of one year. The 
Senate amendment permits such individuals to serve for two 
years.
      The House recedes.
      271. Both the House bill and the Senate amendment provide 
that the Board (Council) shall meet at the call of the 
chairperson or a majority of its members.
      The Senate recedes.
      272. Both the House bill and the Senate amendment provide 
for gifts, bequests and devises.
      The House bill allows the Institute to accept, administer 
and use gifts or donations of services, money or property, both 
real and personal.
      The Senate amendment allows the Institute and the Council 
to accept (but not solicit), use, and dispose of gifts, 
bequests or devices of services or property for the purpose of 
aiding or facilitating the work of the Institute or Council. 
The Senate amendment requires such gifts, bequests or devices 
of money and proceeds from sales of other property to be 
deposited in the Treasury and be available for disbursement 
upon order of the Institute or the Council.
      The Senate recedes.
      273. Both the House bill and the Senate amendment permit 
the Board (Council) and the Institute to use the mails in the 
same manner as other departments and agencies.
      The Senate recedes.
      274. Both the House bill and the Senate amendment provide 
that the Interagency Group (Federal Partnership), after 
considering recommendations of the Board (Council) is to 
appoint and fix the pay of the Director. The Senate amendment 
provides that the Director of the Federal Partnership is also 
to appoint and fix the pay of the staff of the Institute.
      The Senate recedes.
      275. Both the House bill and the Senate amendment contain 
provisions regarding the applicability of certain Civil Service 
laws.
      Legislative counsel.
      276. Both the House bill and the Senate amendment contain 
identical provisions with respect to experts and consultants.
      The Senate recedes.
      277. Both the House bill and the Senate amendment require 
the Institute to submit a biennial report.
      The House recedes.
      277a. The House bill requires the report be submitted to 
the Interagency Group and the Congress. The Senate amendment 
requires the report be submitted to the appropriate committees 
of Congress.
      The House recedes.
      277b. The Senate amendment also includes a list of items 
which must be included in such report.
      The House recedes with technical amendments.
      278. The Senate amendment, but not the House bill, 
provides that funds appropriated to the Federal Partnership, 
the Secretary of Education, the Secretary of Labor, or the 
Secretary of Health and Human Services for purposes that the 
Institute is authorized to perform, may be provided to the 
Institute.
      The House recedes with an amendment striking the 
reference to ``the Federal Partnership.''
      279. Both the House bill and the Senate amendment address 
State or Regional Adult Literacy Resources Centers.
      The Senate amendment specifically provides for the 
establishment of a network of State or regional adult literacy 
resource centers to assist State and local public and private 
nonprofit efforts to eliminate illiteracy. The House bill 
allows States and the Department of Education to fund these 
activities. (See Notes 242 & 282)
      The House and Senate recede.
      280. The House bill repeals the National Workforce 
Literacy Assistance Collaborative. (See Note 449a.) The Senate 
amendment repeals the authorization of appropriations for the 
National Workforce Literacy Assistance Collaborative.
      The Senate recedes.
      280a. Both the House bill and the Senate amendment repeal 
the Family Literacy Public Broadcasting Program. (See Note 449a 
for House repeal)
      The Senate recedes.
      281. The Senate amendment, but not the House bill, 
extends through the year 2001 the separate program providing 
literacy for incarcerated individuals. The House bill repeals 
this program. (See Note 449a for House repeal)
      The House recedes.
      282. The House bill, but not the Senate amendment, 
requires the Secretary of Education to carry out a program of 
national leadership and evaluation activities to enhance the 
quality of adult education and family literacy programs 
nationwide. The House bill outlines the list of authorized 
activities, includes the information to be received from a 
national evaluation, and allows the Secretary to carry out 
activities directly or through grants, contracts and 
cooperative agreements.
      The House recedes.
At-risk youth
      283. The House bill, but not the Senate amendment, grants 
general authority for local workforce development boards to 
subgrant to providers for programs that serve at-risk and out-
of-school youth. (See Note 207)
      The Senate recedes with an amendment providing authority 
to carry out at-risk youth activities.
      284. The Senate amendment, but not the House bill, grants 
authority to the Secretary of Labor and Secretary of Education, 
acting jointly on the advice of the Federal Partnership, to 
make allotments to States to enable the Secretary of Labor and 
the States to carry out at-risk youth programs. (See Note 208)
      The Senate recedes.
      285. The Senate amendment, but not the House bill, 
requires the Secretary of Labor to continue funding for Job 
Corps centers who received assistance under part B of title IV 
JTPA in FY 1996 and which were not closed under section 156. 
(See Note 209)
      The Senate recedes.
      286. The Senate amendment, but not the House bill, 
requires States to use a portion of the funds reserved for 
Indians and Native Hawaiians to make grants to eligible 
entities to run summer job programs and provide work-based 
learning opportunities that are directly linked to year-round 
school-to-work activities. Senate amendment requires that no 
funds shall be used to displace employed workers. (See Note 
210)
      [Statutory cite to subsection (c)(3) is incorrect. 
Statutory cite should be subsection (c)(4) which is the 
allotment for at-risk youth.]
      The Senate recedes.
      287. The House bill, but not the Senate amendment, lists 
8 program elements which local workforce development boards are 
required to provide for at-risk and out-of-school youth. (See 
Note 286 for the Senate amendment's required activities)
      The Senate recedes with an amendment providing required 
program elements for at-risk youth activities.
      288. The House bill lists additional permissible uses of 
funds by eligible providers at the local level for at-risk and 
out-of-school youth programs. (See Note 212). The Senate 
amendment permits States to make grants to eligible entities to 
carry out alternative programs or other activities for at-risk 
youth programs. The activities are not specifically listed.
      The Senate recedes with an amendment providing additional 
program elements for at-risk youth activities.
      289. The House bill, but not the Senate amendment, limits 
administrative funds used by local workforce development boards 
to no more than 10%. (See Note 213)
      The House recedes.
      290. The House bill, but not the Senate amendment, does 
not permit local workforce boards to operate programs (See Note 
195), and requires that they subcontract to eligible providers. 
(See Note 214)
      The Senate recedes with an amendment prohibiting a local 
workforce development board from operating programs, but 
allowing the local board to contract with eligible providers of 
at-risk youth activities of demonstrated effectiveness.
      291. The House bill, but not the Senate amendment, lists 
eligible providers to receive contracts from the local 
workforce development board including: (1) eligible 
institutions including local educational agencies; 
postsecondary institutions including community colleges, State 
corrections educational agency and any consortia of the 
aforementioned list; (2) local government entities; (3) 
private, nonprofit organizations including community based 
organizations; (4) private, for-profit entities; or (5) other 
organizations or entities that have a demonstrated 
effectiveness and have been approved by the local workforce 
development board. (See Note 215)
      The Senate recedes with an amendment allowing Governors 
or local workforce development boards to approve other 
organizations or entities of demonstrated effectiveness as 
eligible providers of at-risk youth activities.
      The Managers recognize the demonstrated effectiveness of 
the Center for Employment and Training (CET), the Youth Build 
Program, the Employability program developed at North Omaha's 
Sacred Heart School (which helps students in a low-income 
minority district with high unemployment to obtain skills 
needed to retain meaningful employment), and the Opportunities 
Industrialization Centers of America in providing employment 
education, training, and placement services to at-risk youth. 
While it is recognized that States and local workforce 
development boards require flexibility in choosing the most 
appropriate training models to meet their individual needs, it 
is the Managers' intent, where possible, that exemplary models 
of demonstrated effectiveness such as CET be replicated on the 
State and local levels.
      292. The Senate amendment, but not the House bill, 
provides that at-risk youth funds be expended in accordance 
with the State's laws and procedures. (See Note 112)
      The Senate recedes.
Allocations for State/local programs
      293. Both the House bill and the Senate amendment have a 
within State allocation. (See related Note 218)
      The House recedes with a technical amendment.
      293a. The House bill requires that not less than 90% of a 
State's funds for the youth grant go to the local level to 
serve in-school and at-risk/out-of-school youth, not more than 
8% for State programs and not more than 2% for administration. 
The Senate amendment requires that 85% of a State's funds for 
at-risk youth activities go to the local level and 15% for 
State activities.
      The House recedes with an amendment distributing funds 
for at-risk youth activities and outlining the development of a 
within State formula that must take into account certain 
factors for the distribution of local funds. The amendment 
further outlines the awarding of grants. Funds are distributed 
as follows: 75 percent to local workforce development areas; 21 
percent to the Governor; and 4 percent for administrative 
purposes at the State level.
      294. The House bill, but not the Senate amendment, 
requires that of the 90% of funds sent to the local level, not 
less than 40% of the funds must be used for programs to serve 
at-risk and out-of-school youth. Of the remaining 20% of funds, 
the Governor, through the collaborative process, can distribute 
one-half of the remaining funds by formula and one-half by 
either discretionary grant or formula. (See Note 220)
      The House recedes.
      295. The House bill, but not the Senate amendment, 
establishes minimum grant awards of $15,000 for local workforce 
development boards to serve at-risk/out-of-school youth. (See 
Note 232)
      The House recedes.
      296. The House bill, but not the Senate amendment, states 
that in order to receive a grant at the local level, the local 
workforce development board and eligible institution(s) must 
for a partnership. The purpose of the partnership is to allow 
for collaborative planning, coordination of programs serving 
in-school and at-risk/out-of-school youth and allow for 
effective public participation. (See Note 235)
      The House recedes.
      297. Both the House bill and the Senate amendment provide 
for a local application.
      The House recedes.
      297a. The House bill states that the partnership must 
develop and submit for approval to the Governor, through the 
State collaborative process, a comprehensive plan outlining how 
they are planning to serve both in-school and at-risk/out-of-
school youth. (See Note 236)
      The House recedes.
      297b. The Senate amendment requires eligible entities to 
submit an application to the Governor for funding of certain 
at-risk youth activities.
      The House recedes with an amendment requiring entities to 
submit a local application in order to receive funding.
      298. The House bill, but not the Senate amendment, 
requires the partnership to assure the involvement of parents, 
teachers and the local community in the planning process. (See 
Note 237)
      The House recedes.
      299. The House bill, but not the Senate amendment, 
provides that the Governor, through the collaborative process, 
is authorized to develop procedures for the resolution of 
issues in dispute. (See Note 238)
      The House recedes.
      300. The House bill outlines that funds directed to the 
local level from the State to serve at-risk and out-of-school 
youth will be sent to the local workforce development board to 
be subgranted to eligible entities. The Senate amendment 
distributes funds for at-risk youth programs to local entities 
in part by competitive grants. (See Note 239b for House 
provision, and Note 297 for Senate provision.)
      The House recedes.
Job Corps
      301. The Senate amendment contains provisions regarding 
Job Corps. The House bill has no comparable provisions, but 
retains Job Corps under current law.
      The House recedes.
      302. The Senate amendment, but not the House bill, 
provides for definitions relating to Job Corps which includes a 
definition for ``at-risk youth''. (See Note 15 for House 
definition of ``at-risk youth''.)
      The House recedes with an amendment striking the 
definition of at-risk youth.
      303. The Senate amendment, but not the House bill, 
provides specific purposes for Job Corps.
      The House recedes.
      304. The Senate amendment, but not the House bill, 
establishes a Job Corps program in the Department of Labor.
      The House recedes with an amendment striking the 
reference to the ``National Board''.
      305. Under the Senate amendment, but not the House bill, 
only at-risk youth are eligible for Job Corps.
      The House recedes with an amendment providing 
requirements to be eligible to become an enrollee of the Job 
Corps program.
      306. The Senate amendment, but not the House bill, 
requires the Secretary of Labor to prescribe procedures for 
screening and selecting applicants, after consultation with 
States and localities.
      The House recedes with an amendment striking the 
references to State workforce development boards and local 
partnerships.
      306a. The Senate amendment, but not the House bill, lists 
requirements for such screening and selection, provides for 
their implementation, and requires consultation with 
individuals and organizations.
      The House recedes with an amendment requiring that in 
addition to other factors, the Secretary of Labor assure that 
Job Corps enrollees include an appropriate number of candidates 
selected from rural areas.
      306b. The Senate amendment, but not the House bill, 
contains special limitations on enrollees.
      The House recedes.
      307. The Senate amendment, but not the House bill, 
provides requirements for the enrollment in, and assignment to, 
Job Corps centers.
      The House recedes.
      308. The Senate amendment, but not the House bill, 
provides for the eligibility and selection of operators of Job 
Corps Centers, the character and activities of those centers, 
and special provisions for Civilian Conservation Centers and 
centers operated by Indian Tribes.
      The House recedes.
      309. The Senate amendment, but not the House bill, 
requires Job Corps centers to provide workforce development 
activities to meet the needs of enrollees through or in 
coordination with the statewide system. The Senate amendment 
also requires the Secretary of Labor to establish a job 
placement accountability system for Job Corps Centers.
      The House recedes with an amendment requiring the 
Secretary of Labor to establish a fiscal and management 
accountability system for Job Corps centers and to coordinate 
its activities, carried out through the fiscal and management 
accountability systems for States, if any.
      309a. The Senate amendment, but not the House bill, 
provides for advance career training programs for certain Job 
Corps enrollees.
      The House recedes.
      309b. The Senate amendment, but not the House bill, 
provides for full benefits or a monthly stipend for 
participants in an advanced training program.
      The House recedes.
      310. The Senate amendment, but not the House bill, 
provides for personal allowances for Job Corps enrollees.
      The House recedes.
      311. The Senate amendment, but not the House bill, 
requires center operators to submit a plan to the Secretary of 
Labor for approval. The Senate amendment lists the requirements 
for such plan.
      The House recedes with conforming and technical changes.
      312. The Senate amendment, but not the House bill, 
requires the Secretary of Labor to provide standards of 
conduct, including a zero tolerance policy for violence and 
drug abuse, to be enforced by the center directors.
      The House recedes.
      313. The Senate amendment, but not the House bill, 
directs the Secretary of Labor to encourage community 
participation and establishes a selection panel for center 
operators. The Senate amendment also requires each center 
director to engage in certain community outreach efforts.
      The House recedes with conforming and technical changes.
      314. The Senate amendment, but not the House bill, 
directs the Secretary of Labor to ensure that Job Corps 
enrollees receive counseling and placement.
      The House recedes.
      315. The Senate amendment, but not the House bill, 
authorizes the Secretary of Labor to use advisory committees to 
assist Job Corps activities.
      The House recedes.
      316. The Senate amendment, but not the House bill, 
provides that Job Corps enrollees are not to be considered 
Federal employees except with respect to the Internal Revenue 
Code, the Social Security Act, Federal workers' compensation, 
and Federal tort claims.
      The House recedes.
      317. The Senate amendment, but not the House bill, 
contains special provisions relating to Job Corps, including 
directing the Secretary of Labor to take steps to achieve an 
enrollment of 50% women, State tax exemptions, and minimum 
management fee requirements.
      The House recedes.
      318. The Senate amendment, but not the House bill, 
provides for a review of all Job Corps Centers by March 31, 
1997, and lists the requirements for such review.
      The House recedes with an amendment requiring the 
Secretary of Labor to establish a National Job Corps Review 
Panel consisting of nine persons to conduct a review of Job 
Corps activities to be completed not later than July 31, 1997.
      318a. The Senate amendment, but not the House bill, 
requires the National Board to make recommendations to the 
Secretary of Labor on how to improve Job Corps, including the 
closure of 5 centers by September 30, 1997 and 5 centers by 
September 30, 2000.
      The House recedes with an amendment striking all 
references to the ``National Board'' and inserting ``National 
Job Corps Review Panel''.
      318b. The Senate amendment, but not the House bill, 
provides that the National Board take into account specific 
considerations in recommending the closure of centers.
      The House recedes with an amendment striking all 
references to the ``National Board'' and inserting ``National 
Job Corps Review Panel''.
      318c. The Senate amendment, but not the House bill, 
requires the National Board to submit a report of its findings 
not later than June 30, 1997.
      The House recedes with an amendment striking all 
references to the ``National Board'' and inserting ``National 
Job Corps Review Panel'', and changing the date the report must 
be submitted from June 30 to August 30, 1997.
      318d. The Senate amendment, but not the House bill, 
requires the Secretary to implement improvements in Job Corps, 
including the closure of 10 centers, and report annually to 
Congress.
      The House recedes with an amendment requiring the 
Secretary of Labor, if initiating a new Job Corps center, to 
make it a priority on placing Job Corps centers in those States 
without existing Job Corps centers.
      The Managers intend that the States without existing Job 
Corps Centers receive a priority, but that the quality of 
applications continue to be a primary consideration.
      319. The Senate amendment, but not the House bill, 
provides for the Secretary of Labor to carry out his 
responsibilities, notwithstanding other provisions of the 
title.
      The House recedes.
      320. The Senate amendment, but not the House bill, has an 
effective date of July 1, 1998 for the Job Corps provisions, 
except for the report, which will begin immediately.
      The House recedes.

                   employment and training activities

One-Stops/integrated career center system
      321. The House bill requires the Governor to ensure the 
establishment of an integrated career center system by local 
workforce boards within each workforce development area. The 
Senate amendment has no comparable provisions. (See Note 134)
      The Senate recedes with an amendment requiring States to 
establish one-stop career center systems.
      322. The House bill, but not the Senate amendment, 
requires the Governor, through the collaborative process, to 
establish statewide criteria for selecting career center 
providers. (See Note 135)
      The House recedes.
      323. Both the House bill and the Senate amendment require 
States to implement a statewide approach to the delivery of 
employment and training, based on the concept of integrated or 
one-stop career centers, although the requirements of each bill 
differ. (See Note 136)
      The Senate recedes with conforming amendments.
      323a. The House bill requires a system where common 
intake, assessment, and job search are provided. The Senate 
amendment provides as an option, a system where core services 
are provided, regardless of point of entry.
      The House recedes with an amendment providing that core 
services may be provided through a network that assures 
participants that such services will be available regardless of 
where the participants initially enter the statewide system, 
including through multiple, connected access points, linked 
electronically or technologically.
      323b. Both the House bill and Senate amendment allow for 
access points that are electronically or computer linked. The 
House bill further provides for the availability of labor 
market information and common management information across the 
system.
      The House and Senate recede.
      323c. The House bill requires at least one physical, co-
located career center (to the extent practicable), but 
encourages a network of such centers combined with affiliated 
sites. The Senate amendment provides as an option, that there 
are core services available at not less than one physical 
location in each substate area, and also allows for a 
combination of the options listed above.
      The House recedes with an amendment providing that core 
services may be provided through a network of career centers 
which can provide core services and services authorized under 
the Wagner-Peyser Act to individuals; at not less than one 
physical, co-located center in each workforce development area 
of the State, which provides comprehensive core services to 
individuals seeking such services; or through some combination 
of the options described in this section.
      323d. The House bill requires that labor market 
information compiled pursuant to title II of the Wagner-Peyser 
Act be available through all career centers and affiliated 
sites. The Senate amendment has no comparable provision.
      The Senate recedes with an amendment providing that labor 
market information, shall be available through the one-stop 
career center system.
      323e. The House bill, but not the Senate amendment, 
provides that an entity or consortium of entities in a local 
workforce area may be designated by the local board to operate 
a career center, and lists certain eligible entities.
      The Senate recedes with an amendment listing public and 
private eligible providers that may be designated or certified 
to operate a one-step career center. The amendment also 
includes an exception providing that elementary and secondary 
schools shall not be eligible to operate a one-stop career 
center.
      324. Both the House bill and Senate amendment list core 
services to be provided through integrated career centers or 
one-stop delivery systems.
      The House recedes.
      324a. The House bill requires that core services be 
provided on a universal and non-discriminatory basis, with 
reasonable accommodations for individuals with disabilities. 
The Senate amendment contains no such specific provision, but 
also does not restrict eligibility for core services.
      The House recedes with an amendment providing that core 
services shall be available to all individuals seeking such 
services.
      324b. Both the House bill and Senate amendment require 
that outreach and intake for services be available, and the 
Senate amendment includes orientation to services available 
through the one-stop.
      The House recedes.
      324c. Both the House bill and Senate amendment include 
initial assessment of skill levels, service needs, and need for 
supportive services. However, the two bills differ in what is 
to be specifically assessed.
      The House recedes.
      324d. Both the House bill and Senate amendment require 
job search assistance (the Senate amendment also specifies 
placement assistance), and career counseling, although the 
Senate amendment provides for career counseling where 
appropriate. The House bill also includes career planning based 
on a preliminary assessment.
      The House recedes.
      324e. Both the House bill and Senate amendment provide 
for information related to the local labor market. However the 
language differs as to what is required.
      The Senate recedes with an amendment providing that one-
stop career center systems shall provide accurate labor market 
information relating to local and State, and if appropriate, to 
regional or national occupations in demand and skill 
requirements for such occupations, where available.
      324f. The Senate amendment provides for information on 
the quality and availability of other workforce employment, 
education, and vocational rehabilitation activities, and for 
referral to such programs. The House bill also provides such 
information and referral to programs, but refers to specific 
programs.
      The House recedes with an amendment providing that one-
stop career centers shall provide accurate information relating 
to the quality and availability of workforce and career 
development activities and vocational rehabilitation 
activities; referrals to such programs; and the provision of 
information related to adult education and literacy activities 
through cooperative efforts with eligible providers of such 
activities.
      324g. The House bill requires that information on 
eligibility for Federal education and training programs be 
provided. The Senate amendment requires such information on 
forms of public financial assistance.
      The Senate recedes with an amendment requiring one-stop 
career centers to provide eligibility information relating to 
unemployment compensation, publicly-funded education and 
training programs, and forms of public financial assistance, 
such as student aid programs, that may be available in order to 
enable individuals to participate in workforce and career 
development activities.
      324h. The House bill, but not the Senate amendment, 
requires that information on the performance of programs be 
available through career centers.
      The Senate recedes with an amendment requiring one-stop 
career centers to provide performance information on eligible 
training providers.
      324i. The Senate amendment, but not the House bill, 
requires that customized screening and referral be provided.
      The Senate recedes.
      324j. The Senate amendment, but not the House bill, 
requires information on performance of the substate area with 
respect to the State benchmarks.
      The House recedes with an amendment requiring one-stop 
career centers to provide information on how the local 
workforce development areas are performing on their local 
benchmarks, and any additional performance information provided 
by the local boards.
      324k. The House bill, but not the Senate amendment, 
requires career centers to accept applications for unemployment 
compensation. The Senate amendment allows States to co-locate 
with unemployment compensation services. (See Note 327)
      The House recedes.
      325. The House bill, but not the Senate amendment, 
specifies that career centers or affiliated sites may serve as 
the point of distribution of career grants.
      The Senate recedes with an amendment providing that a 
one-stop career center may serve as the point of distribution 
of career grants for the purchase of training services.
      326. The House bill, but not the Senate amendment, allows 
career center systems to contract out for core services for 
individuals with severe disabilities.
      The House recedes.
      327. Both the House bill and Senate amendment contain 
different permissible or additional services that may be 
provided through the integrated career center or one-stop 
delivery systems.
      The House recedes with conforming amendments and 
inserting additional discretionary one-stop activities.
      328. The House bill, but not the Senate amendment, 
permits the Governor, through the collaborative process, to 
develop alternatives to the integrated career center system, 
subject to the approval of the Secretaries.
      The House recedes.
Employment and training use of funds
      329. The Senate amendment, but not the House bill, 
requires the following use of funds for workforce employment 
activities: one-stop delivery of core services; establishment 
of a labor market information system; and establishment of a 
job placement accountability system.
      The Senate amendment also permits the use of funds for: 
permissible one-stop activities; other permissible training 
activities; staff development; incentive grants; and the 
provision of training services through vouchers.
      The House recedes with an amendment requiring that funds 
made available to a State and local workforce development areas 
for employment and training activities shall be used to carry 
out required State and local employment and training 
activities; to conduct a career grant pilot program; and may be 
used to carry out permissible State and local employment and 
training activities.
      330. The House bill, but not the Senate amendment, 
requires that certain mandatory activities be conducted by the 
State, from funds reserved by the Governor under the Adult 
Employment and Training grant, including: rapid response 
activities; and additional assistance for other worker 
dislocation events.
      The Senate recedes with an amendment requiring States to 
use a portion of their State-held employment and training funds 
for rapid response assistance; labor market information; and to 
conduct evaluations.
Discretionary activities
      331. Both the House bill and the Senate amendment list 
certain discretionary activities. The House bill, not the 
Senate amendment, specifically lists certain activities to be 
carried out by the State, and funded from the Governor's 
reserve. Under the Senate amendment's, permissible activities 
under section 106(a)(6) (A) through (N) are listed below, 
starting with Note 333b.
      The House recedes with an amendment inserting a new title 
``PERMISSIBLE STATE ACTIVITIES'', with conforming and technical 
changes.
      331a. Both the House bill and the Senate amendment allow 
funds to be used for staff development and training, but the 
House bill further allows for capacity building.
      The House recedes with an amendment allowing a State to 
use State funds to provide professional development and 
technical assistance.
      331b. Both the House bill and the Senate amendment allow 
for incentive grant awards, but the House bill further allows 
for research and demonstration.
      The House recedes with an amendment allowing a State to 
use State funds to provide incentive grants to workforce 
development areas for exemplary performance in reaching or 
exceeding benchmarks.
      331c. In addition, the House bill allows States to use 
State reserve funds for incumbent worker training; assistance 
for career center systems; support for a common management 
information system; and training in nontraditional employment.
      The House recedes with an amendment allowing additional 
permissible State activities including; certain economic 
development activities; implementation of efforts to increase 
the number of individuals trained and placed in nontraditional 
employment; other employment and training activities that the 
State deems necessary to assist local workforce development 
areas; a fiscal and management accountability system; the 
establishment of the one-stop career center system; and the 
career grant pilot program.
      332. The House bill requires that adult employment and 
training grant funds be used to provide core services to adults 
through career center systems. The Senate amendment requires 
that workforce employment funds be used to provide core 
services through one-stop delivery. (See Note 324)
      The House recedes.
      333. The House bill, but not the Senate amendment, 
requires that adult employment training grant funds be used to 
provide intensive services, through career center systems, to 
adults who are unable to obtain employment through core 
services, but provides discretion on the types of services. The 
Senate amendment provides that intensive services are a 
permissible one-stop delivery activity. (See Note 327)
      The Senate recedes with an amendment providing that funds 
made available to local workforce development areas shall be 
used to provide core services to individuals through the one-
stop career center system of the State; and to provide training 
services to individuals who are unable to obtain employment 
through the core services and who after an interview, 
evaluation or assessment, and counseling, have been determined 
to be in need of training services.
      333a. The House bill, but not the Senate amendment, 
specifies that intensive services may include: comprehensive 
and specialized assessments; individual employment plans; 
identification of employment goals; group or individual 
counseling and career planning; case management; and follow up 
counseling for up to 1 year.
      The House recedes.
      333b. Both the House bill and the Senate amendment permit 
the use of funds for case management and follow-up services.
      The Senate recedes with an amendment authorizing training 
services which may include occupational skills training; on-
the-job-training; skills upgrading and retraining for persons 
not in the workforce; and basic skills training when in 
combination with at least one of the other services listed.
      334. The House bill requires that adult employment 
training grant funds be used to provide education and training 
services for only those adults who are unable to obtain 
employment through core or intensive services, and who are 
unable to obtain other grant assistance, but provides 
discretion on the types of education and training services. The 
Senate amendment does not require funds to be spent on such 
training activities, nor are there prerequisites for obtaining 
such services.
      The Senate recedes with an amendment requiring that funds 
may be used to provide training services for individuals who 
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; or who require assistance beyond 
that made available from other grant assistance programs 
including Federal Pell Grants. The amendment also provides that 
training services may be provided to an individual while an 
application for a Pell grant is pending, provided that if such 
individual is subsequently awarded a Pell grant, appropriate 
reimbursement is made to the workforce development area from 
such Pell grant.
      334a. The House bill and the Senate amendment include 
comparable training services as permissible uses of funds, but 
also include different additional services.
      The House recedes.
      334b. The House bill permits funds to be used for 
remedial education and literacy programs. The Senate amendment 
provides for such services under workforce education 
activities.
      The House recedes.
      334c. Both the House bill and the Senate amendment allow 
for: occupational skills training, on-the-job training, 
programs that combine workplace training with related 
instruction; skill upgrading and retraining; entrepreneurial 
training; employability training; and customized training. The 
House bill also allows private sector training. The Senate 
amendment also includes: preemployment training for youth; 
rapid response assistance; connecting activities for businesses 
to provide work-based learning for youth; and services to 
assist individuals in attaining industry-based skills.
      The House and Senate recede.
      335. Both the House bill and the Senate amendment list 
supportive services as an allowable use of funds. However, the 
House bill limits such assistance.
      The Senate recedes with an amendment providing for 
additional permissible services including supportive services 
which may be provided to individuals who are receiving training 
services; and who are unable to obtain such supportive services 
through other programs providing such services. Follow-up 
services for individuals who are placed in unsubsidized 
employment are also authorized.
      335a. The House bill, but not the Senate amendment, 
specifies the allowable use of needs-related payments, with 
specific education and training participation requirements.
      The Senate recedes with an amendment to add as a 
permissible local activity, the provision of needs related 
payments to individuals enrolled in training programs in order 
to enable their participation in such training services. In 
addition, certain time limits and payment caps were added for 
the provision of such payments.
      336. The House bill, but not the Senate amendment, 
requires local boards to establish a priority process for 
providing intensive, or education and training services to 
dislocated workers and economically disadvantaged individuals 
when funding is limited.
      The Senate recedes with an amendment to require that 
priority be given to dislocated workers and other unemployed 
individuals for receipt of training services with guidance 
provided to one-stop career centers by the Governor and local 
boards in establishing such policies.
      The Managers agree that priority should be given to 
dislocated workers and other unemployed individuals in the 
provision of training services, when funding is limited. Such 
priority for services is consistent with the employment-first 
approach to training taken under the employment and training 
component of this legislation. This priority language however, 
is not intended to preclude the provision of training services 
to other individuals, particularly to low income employed 
individuals, for which training is essential to obtain high 
skilled employment. Substantial flexibility is granted to 
States and local workforce development areas in making such 
individual determinations.
Career grants/vouchers
      337. The House bill requires that education and training 
services for adults be provided through the use of career 
grants (vouchers), with providers identified in accordance with 
section 108 of the House bill. Such grants must be provided 
through the career center system. The Senate amendment allows, 
but does not require States to deliver some or all of the 
permissible employment activities under section 106(a)(6) 
through vouchers administered through the one-stop system.
      The Senate amendment restricts the receipt of vouchers to 
individuals age 18 or older, who are unable to obtain Pell 
grants. The House bill also restricts receipt of career grants 
(vouchers). (See Note 334)
      The Senate recedes with an amendment clarifying that 
training services may be provided through the use of career 
grants, and requiring States to carry out a career grant pilot 
program for dislocated workers that is of sufficient size, 
scope and quality to measure the effectiveness of the use of 
such a method of service delivery. The amendment requires 
States to describe in their State plan how the State will 
establish and implement the required career grant pilot program 
for dislocated workers and a description of how the State, 
after 3 years, will evaluate such program and use such findings 
to improve the delivery of training services for dislocated 
workers and other individuals. The amendment also requires that 
all training services shall be provided through the use of 
career grants, contracts, or other methods that shall to the 
extent practicable, maximize consumer choice in the selection 
of an eligible provider.
      337a. The House bill, but not the Senate amendment, 
provides 4 exceptions to the required use of vouchers.
      The House recedes.
      337b. The House bill, but not the Senate amendment, 
allows a 3-year transition for the full implementation of 
vouchers, from the date of enactment.
      The House recedes.
      337c. The House bill, but not the Senate amendment, 
requires that education and training be directly linked to 
occupations in demand.
      The Senate recedes.
      338. Under the Senate amendment, but not the House bill, 
States that choose to use vouchers must describe in the State 
plan criteria for the activities, the amount of funds and the 
eligibility of participants and providers.
      The Senate recedes.
      339. The House bill requires an identification process 
for determining which service providers are eligible to receive 
funds for adult training or vocational rehabilitation programs. 
The Senate amendment has no such requirement, other than to 
identify in the State plan the criteria for eligible providers, 
if a State chooses to offer services through vouchers. (See 
Note 138)
      The House and Senate recede.
      340. The House bill, but not the Senate amendment, 
establishes an alternative eligibility procedure for service 
providers that are not eligible to participate in title IV of 
the Higher Education Act. (See Note 139)
      The House recedes.
      341. The House bill requires the State to identify 
performance-based information to be submitted by service 
providers. The Senate amendment has no such requirement, other 
than to identify in the State plan information related to 
ensuring the accountability of service providers, if a State 
chooses to offer services through vouchers. (See Note 140)
      The House and Senate recede.
      342. Under the House bill, but not the Senate amendment, 
the Governor must designate a State agency to collect, verify, 
and disseminate performance-based information relating to 
service providers, along with a list of eligible providers, to 
local workforce development boards, and integrated career 
center systems. (See Note 141)
      The House recedes.
      343. Under the House bill, but not the Senate amendment, 
a service provider who provides inaccurate performance-based 
information will be disqualified from receiving funds under 
this Act for two years, unless upon the appeal, the provider 
can demonstrate that the information was provided in good 
faith. (See Note 142)
      The House recedes.
      344. Under the House bill, but not the Senate amendment, 
on-the-job training providers are exempt from this section, 
except that performance-based information on such providers 
must be collected and disseminated. (See Note 143)
      The House recedes.
      344a. The House bill, but not the Senate amendment, 
provides that nothing in this section prohibits a State from 
providing services. (See Note 144)
      The House recedes.
      345. The Senate amendment, but not the House bill, 
requires a State that chooses to provide training activities 
must indicate in the State plan the extent to which the State 
will use vouchers to deliver such training activities.
      The Senate recedes.
Substate allocation
      346. The Senate amendment, but not the House bill, 
provides that funds made available for workforce employment 
activities (less Wagner-Peyser funds), and funds from the flex 
account dedicated to workforce employment activities, are 
available to the Governor to distribute as provided in the next 
Note. (See Note 347)
      The Senate recedes.
      347. The House bill allows Governors to reserve up to 20% 
of the State's allotment under the adult training grant for 
statewide activities and administration. From this 20% reserve, 
States are limited to 25% for administration. The Senate 
amendment allows Governors to reserve up to 25% to carry out 
workforce employment activities. From this 25% reserve, States 
are limited to 20% for administrative expenses.
      The House recedes with an amendment requiring that of the 
funds made available for employment and training activities for 
a program year, 20 percent shall be reserved by the Governor to 
carry out State employment and training activities; and not 
more than 5% shall be made available for administrative 
expenses at the State level.
      347a. The House bill requires that Governors allocate the 
remainder of funds to workforce development areas. The Senate 
amendment requires that Governors distribute 75% of funds to 
local entities.
      The House recedes with an amendment requiring that of the 
funds made available for employment and training activities for 
a program year, 75 percent shall be distributed by the Governor 
to local workforce development areas to carry out employment 
and training activities.
      347b. The House bill requires that of the funds to be 
distributed to workforce development areas, 90% be allocated 
based on a substate formula, established by the Governor, 
through the collaborative process and after consultation with 
local officials, taking into account: poverty rates; 
unemployment rates; the State's adult population within each 
local workforce area; and other factors as considered 
appropriate. The formula must distribute funds equitably, and 
none of the factors can receive disproportionate weighting.
      The Senate amendment requires the Governor to distribute 
the 75% of funds to local entities based on such factors as the 
relative distribution among substate areas of individuals who 
are not less than 15 and not more than 65; individuals in 
poverty, unemployed individuals, and adult recipients of 
assistance. The Senate amendment also allows Governors, in 
consultation with local partnerships (or local boards) to 
include such additional factors as determined necessary.
      The Senate recedes with an amendment requiring that the 
Governor develop a formula for the allocation of 75 percent of 
the employment and training funds to workforce development 
areas that must take into account certain factors for the 
distribution of local funds.
      347c. The House bill, but not the Senate amendment, 
allows the Governor discretion over 10% of the funds required 
for distribution to local workforce boards.
      The House recedes.
      348. The House bill limits the administrative costs of 
the local workforce development board to 10%. The Senate has no 
comparable provision.
      The Senate recedes with amendment striking ``board'' and 
inserting ``area.''
Flex account
      349. The Senate amendment, but not the House bill, allows 
the use of flex-account funds for school-to-work, workforce 
employment activities, workforce education activities and 
economic development.
      The House recedes with an amendment striking 
``WORKFORCE''.
      350. The Senate amendment, but not the House bill, 
requires States to use a portion of flex account funds for 
school-to-work activities, broadly defined. However, any State 
receiving a grant under the School-to-Work Opportunities Act of 
1994, must continue such activities under the terms of the 
grant.
      The Senate recedes.
      351. Under the Senate amendment, but not the House bill, 
States may use flex account funds for either training 
activities or education activities, as the State decides.
      The House recedes with an amendment allowing States to 
use flex-account funds to carry out employment and training, 
at-risk youth, vocational education, and adult education and 
literacy activities.
      352. Under the Senate amendment, but not the House bill, 
a State may engage in economic development activities if the 
State has established State and local workforce development 
boards or provides services through vouchers beginning in the 
year 2000. A State may use up to 50% of the flex account funds 
to engage in the listed activities for upgrading skills of 
incumbent workers.
      The Senate recedes.

                                FEDERAL

Administrative Partnership
      353. The Senate amendment, but not the House bill, 
establishes in the Department of Labor and the Department of 
Education a Workforce Development Partnership (``Federal 
Partnership''), under the joint control of the Secretary of 
Labor and the Secretary of Education, to administer the Act.
      The House recedes with an amendment requiring the 
Secretary of Labor and the Secretary of Education to enter into 
an interagency agreement to administer the provisions of this 
title, other than sections relating to vocational education, 
labor market information and national literacy activities.
      354. Under the Senate amendment, but not the House bill, 
the Secretary of Labor and the Secretary of Education, working 
jointly through the Federal Partnership, will be responsible 
for activities including: approving State plans and benchmarks, 
making allotments to States, awarding annual incentive grants, 
applying sanctions, designing the transfer of personnel and 
activities to the Partnership, and disseminating information 
and providing technical assistance to States.
      The House recedes with an amendment requiring the 
Secretary of Labor and the Secretary of Education to agree on 
the administration of this title.
      355. Under the Senate amendment, but not the House bill, 
the Federal Partnership will be directed by a National 
Workforce Development Board, composed of 13 members, appointed 
by the President by and with the advice and consent of the 
Senate, including: 7 representatives of business and industry, 
2 representatives of labor and workers, 2 representatives of 
adult and vocational education, and 2 Governors.
      The Senate recedes.
      356. Under the Senate amendment, but not the House bill, 
the Federal Partnership will be responsible for activities 
including: overseeing the development and implementation of the 
nationwide integrated labor market information system, 
establishing model benchmarks, negotiating State benchmarks, 
receiving and reviewing reports, preparing an annual report on 
the performance of States toward reaching the benchmarks, 
advising the Secretary of Labor and the Secretary of Education 
regarding the review and approval of State plans and procedures 
for awarding incentive grants and applying sanctions, reviewing 
Federal programs and recommending how they could be integrated 
into State systems, and reviewing any issues about which the 
Secretary of Labor and the Secretary of Education disagree and 
making recommendations to the President regarding their 
resolution.
      The Senate recedes.
      357. The Senate amendment, but not the House bill, 
provides for the appointment by the President of a Director, by 
and with the advice and consent of the Senate, to administer 
the general duties of the Federal Partnership.
      The Senate recedes.
      358. The Senate amendment, but not the House bill, 
provides for the transfer of personnel from the Employment and 
Training Administration (ETA) within the Department of Labor 
and the Office of Adult and Vocational Education (OAVE) within 
the Department of Education to the Federal Partnership.
      The Senate recedes.
      358a. The Senate amendment, but not the House bill, 
requires the Secretaries to submit a proposed workplan 
outlining the transfers to be made to the Federal Partnership.
      The House recedes with an amendment requiring the 
Secretaries to prepare and submit to the President and the 
appropriate committees of Congress, not later than 180 days 
after the date of enactment, an interagency agreement which 
includes a description of how the Secretary of Labor and the 
Secretary of Education will work together to carry out their 
duties and responsibilities under this title.
      358b. The Senate amendment, but not the House bill, 
provides that the National Board shall review the Secretaries' 
workplan. The National Board may reject the workplan and submit 
their own workplan to the President outlining the transfers to 
be made to the Federal Partnership.
      The Senate recedes.
      358c. Under the Senate amendment, but not the House bill, 
the President shall make a decision regarding the 
implementation of such workplan.
      The House recedes with an amendment requiring the 
President within 200 days to approve or disapprove the 
interagency agreement, and make recommendations on an 
alternative plan, in the event such agreement is not approved.
      358d. The Senate amendment, but not the House bill, 
provides that if the Secretaries do not submit a workplan, the 
President shall delegate full responsibility for the 
administration of this Act to either the Secretary of Labor or 
the Secretary of Education.
      The Senate recedes.
      359. The Senate amendment, but not the House bill, 
requires an initial one-third reduction in the number of 
Federal employees necessary to perform the functions associated 
with the Federal administration of the Act. Not later than 5 
years after the date of initial transfers to the Federal 
Partnerships there must be a 60% reduction in the number of 
Federal employees, unless the Secretaries submit a report to 
Congress stating why such reduction has not occurred. However, 
there must be a minimum 40% reduction in the number of Federal 
employees.
      The House recedes with an amendment making technical 
changes.
      360. The Senate amendment, but not the House bill, 
provides that personnel from ETA and OAVE that do not perform 
functions related to the administration of the Act will be 
transferred to other entities in the appropriate department.
      The Senate recedes.
      361. The Senate amendment, but not the House bill, 
requires the Secretaries to submit an additional workplan 
outlining the transfers of individuals to entities other than 
the Federal Partnership.
      The Senate recedes.
      362. The Senate amendment, but not the House bill, 
eliminates the Office of Adult and Vocational Education (OAVE) 
within the Department of Education and the Employment and 
Training Administration (ETA) within the Department of Labor on 
July 1, 1998.
      The Senate recedes.
Wagner-Peyser (Employment Service)
      363. The Senate amendment, but not the House bill, amends 
section 1 of the Wagner-Peyser Act to provide that the Federal 
Partnership shall oversee the activities of the Employment 
Service.
      The Senate recedes.
      364. Both the House bill and the Senate amendment amend 
section 2 to reflect the repeal of the Job Training Partnership 
Act and to conform the definitions and terms to each of the 
appropriate bills.
      The Senate recedes with technical and conforming 
amendments.
      365. Both the House bill and the Senate amendment amend 
section 3, the duties of the Federal government, by requiring 
the Secretary of Labor (or the Federal Partnership in the 
Senate amendment) to assist in the coordination and development 
of a nationwide system of labor exchange services for the 
general public, to assist in the development of continuous 
improvement models for such nationwide system which ensures 
private sector satisfaction and meets the demands of 
jobseekers, and to ensure the continued services for 
individuals receiving unemployment compensation.
      The House recedes with an amendment requiring the 
Secretary of Labor to assist in the coordination and 
development of a nationwide system of labor exchange services 
for the general public, provided as part of the one-stop career 
center systems of the States; 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 ensure, for 
individuals otherwise eligible to receive unemployment 
compensation, the continuation of any activities in which the 
individuals are required to participate to receive the 
compensation.
      366. The Senate amendment, but not the House bill, makes 
conforming amendments to the Unemployment Compensation 
Amendments of 1976.
      The House recedes.
      367. Both the House bill and Senate amendment amend 
section 4 to require the Governor (and in the House bill, the 
Governor through the collaborative process) to designate a 
State agency to carry out the Act.
      The House recedes with an amendment inserting ``in 
consultation with the State legislature''.
      367a. In the House bill, the designated State agency 
cooperates with the Secretary of Labor. In the Senate 
amendment, such agency cooperates with the Federal Partnership.
      The Senate recedes.
      368. The House bill requires that 25% of the funds 
available under the Wagner-Peyser Act be used to cover both the 
current BLS programs (funded under sec. 14) and to support 
State/local labor market information.
      The House recedes.
      369. The Senate amendment, but not the House bill, amends 
section 5(c) to strike an obsolete provision.
      The House recedes.
      370. Both the House bill and the Senate amendments amend 
section 7 to conform with the repeals of the Job Training 
Partnership Act and the Carl D. Perkins Vocational and Applied 
Technology Education Act.
      The House recedes with an amendment striking ``Workforce 
Development Act of 1995'' and inserting ``Workforce and Career 
Development Act of 1996''.
      370a. The Senate amendment, but not the House bill, 
requires that labor exchange services be provided through the 
one-stop career center system. The House bill has a similar 
provision in its definition of ``Public Employment Office.''
      The House recedes with an amendment striking ``through'' 
and inserting ``as part of''.
      371. Both the House bill and the Senate amendment amend 
section 8 to require States to submit detailed plans for 
carrying out this Act as a part of their workforce development 
plans.
      The Senate recedes with an amendment requiring that any 
State desiring to receive assistance under the Wagner-Peyser 
Act shall submit to the Secretary, as part of the State plan 
under the Workforce and Career Development Act, plans for 
carrying out the provisions of the Wagner-Peyser Act.
      372. Both the House bill and the Senate bills repeal 
section 11, the Federal Advisory Council.
      The Senate recedes.
      373. Both the House bill and the Senate amendment include 
conforming amendments.
      The Senate recedes with an amendment striking reference 
to ``Consolidated and Reformed Education, Employment, and 
Rehabilitation Systems Act'' and inserting ``the Workforce and 
Career Development Act of 1996''.
Labor market information
      374. The Senate amendment, but not the House bill, 
requires States to use a portion of their workforce employment 
funds to pay for a statewide labor market information system. 
(See Note 368 for related House provision)
      The Senate recedes.
      375. The House bill, but not the Senate amendment, places 
the labor market information activities under the Wagner-Peyser 
Act.
      The Senate recedes with an amendment authorizing an 
appropriation of $65 million for fiscal year 1998 and such sums 
through fiscal year 2002.
      375a. The House bill, but not the Senate amendment 
provides a purpose.
      The House recedes.
      376. The House bill provides the Secretary of Labor with 
the responsibility for the LMI system. The Senate amendment 
provides this responsibility to the Federal Partnership. Both 
the House bill and the Senate amendment list comparable 
elements of the nationwide LMI system, with language 
differences.
      The House recedes with an amendment requiring the 
Secretary of Labor, in accordance with this section, to oversee 
the maintenance and continuous improvement of the system of 
labor market information.
      The Managers commend the National and State Occupational 
Information Coordinating Committee (NOICC/SOICC) for leadership 
in building the foundation for the existing labor market 
information system, which includes occupational information. 
Further, the Managers assume that the Federal and State 
governments will build upon the NOICC/SOICC initiatives in the 
development of occupational, career and consumer information 
delivery systems and related products, the training of 
professionals in the use of labor market information in career 
decision making, the support of career development programs, 
and in coordinating a multi-agency approach in building upon 
the existing labor market information system.
      At the State level, the Managers encourage Governors and 
State agency heads to use the SOICC to carry out the 
collaborative, interagency process in building upon the 
existing statewide labor market information system. Further, at 
the Federal level, the Managers wish to make clear that the 
NOICC may be used during transition to support the labor market 
information system activities of the Department of Education 
and the Department of Labor and encourage the continued use of 
NOICC expertise under the improved system.
      376a. The House bill specifies that data may include data 
aggregated by demographic characteristics. The Senate amendment 
states that data may be from ``cooperative statistical'' 
programs.
      The Senate recedes with an amendment to include within 
the system of labor market information statistical programs of 
data collection, compilation, estimation and publication 
conducted in cooperation with the Bureau of Labor Statistics.
      The specific cooperative statistics program currently 
managed by the Bureau of Labor Statistics include: Current 
Employment Statistics (CES), Local Area Unemployment Statistics 
(LAUS), Occupational Employment Statistics (OES), Mass Layoff 
Statistics (MLS). The Managers intend that these programs will 
continue to be authorized under the Wagner-Peyser Act and that 
this legislation will not alter the way they are funded. The 
Bureau of Labor Statistics will continue to justify funding 
levels through the appropriations process, as it has in the 
past, including its request for non-trust funds money.
      376b. The House bill includes data on individuals with 
severe disabilities and clarifies that data under this part are 
available from the Bureau of Census and other sources. The 
Senate amendment specifies that such data should be current and 
be collected from populations at the substate, State and 
national level.
      The House and Senate recede.
      376c. The House bill, but not the Senate amendment, 
specifies that data shall be maintained in an aggregated 
fashion and specifies that such data are available from the 
Bureau of Census and other sources.
      The House and Senate recede.
      376d. The House bill, but not the Senate amendment, 
clarifies that information such as the unemployment insurance 
wage data records may be used.
      The House and Senate recede.
      376e. The Senate amendment, but not the House bill, 
specifies the form in which employment and consumer information 
shall be collected.
      The Senate recedes with an amendment requiring that State 
and local employment information include other appropriate 
statistical data related to labor market dynamics which will 
assist individuals to make informed choices related to 
employment and training and assist employers to locate and 
train employees who are seeking employment and training.
      The Managers intend that the State-based data collection 
and analysis be produced in a way as to produce a common set of 
labor market products and services that will be consistently 
available in all parts of the country and that, at the same 
time, will meet the unique needs of States and localities. The 
primary customers of the State and local products and services 
will be job seekers, employers and counselors. The consumer 
information, as described under Section 121, and other 
information supplied by the States and local workforce 
development boards will also be useful to these customers. To 
the extent feasible, the core products and services are 
expected to include: profiles of employers in the local labor 
market, including job openings, locations, hiring requirements, 
the nature of the work, employment requirements, wages, 
benefits, and hiring patterns--as such information is 
volunteered by employers; aggregate data related to the 
employment and training needs and skill levels of job seekers 
in the local labor market area.
      376f. The House bill would profile ``employers'' as 
opposed to ``industries'' as in the Senate amendment. The House 
bill, but not the Senate amendment would also collect 
information on hiring patterns.
      The House and Senate recede.
      376g. The House bill, but not the Senate amendment, 
specifies that aggregate data shall be maintained.
      The House and Senate recede.
      376h. The House bill includes collection of information 
on the level of satisfaction of the participants and their 
employers and would also require the collection of descriptive 
information on programs (beyond performance).
      The Senate amendment requires that the performance data 
include the percentage of program completion, while the House 
bill refers to summary data on program completion.
      The House and Senate recede.
      376hh. The House bill and the Senate amendment provide 
for technical standards.
      The Senate recedes with an amendment to include within 
the system of labor market information technical standards for 
data and information which at a minimum, meet the criteria of 
chapter 35 of title 44.
      The technical standards in Section 139(a) will ensure the 
standardization of data and will ensure that data from one 
State can be compared with data available in another State. 
Technical standards are important because of the mobility of 
the U.S. workforce and the number of States with multi-State 
labor markets. These technical standards, to the extent 
practicable, are also intended to cover the consumer 
information in this Act.
      376i. The Senate amendment, but not the House bill, also 
includes standardized definitions of labor market terms related 
to State benchmarks.
      The House and Senate recede.
      376j. The Senate amendment, but not the House bill, 
clarifies that the collection and analysis should be of labor 
market and occupational information.
      The House and Senate recede.
      376k. The Senate amendment, but not the House bill, 
specifies occupational information.
      The House and Senate recede.
      376l. The House bill uses the term ``Federal,'' the 
Senate version uses the term ``national'' for the purposes of 
policymaking.
      The Senate recedes with an amendment to include within 
the system of labor market information analysis of data 
information for uses such as State and local policymaking.
      376m. The Senate amendment, but not the House bill, also 
specifies research on occupational dynamics.
      The House and Senate recede.
      376n. The House bill, but not the Senate amendment, 
includes the standardization of technical standards and the 
design of user interfaces and communication protocols.
      The Senate recedes with an amendment to include within 
the labor market information system the wide dissemination of 
data and analysis, training for users of the data and analysis, 
and voluntary technical standards for dissemination mechanisms.
      376o. The House bill includes programs providing 
assistance in using systems to improve access to individuals to 
labor market information. The Senate amendment includes 
programs in the area of continuous improvement of data and 
provides for the training of counselors, teachers and others in 
using the LMI system to improve career decisionmaking.
      The Senate recedes with an amendment to include within 
the system of labor market information programs of research and 
demonstration, and technical assistance for States and 
localities.
      377. The House bill, but not the Senate amendment, 
specifies that statistical information collected as part of the 
LMI system would be subject to a number of confidentiality 
requirements. (This language is similar to the current 
statutory language under which the census data is collected)
      The Senate recedes with an amendment requiring that no 
officer or employee of the Federal Government or agent of the 
Federal Government may use the information furnished under the 
provisions of this section for any purpose other than the 
statistical purposes for which it is furnished; make any 
publication whereby the data contained in the information so 
furnished under this section can be used to identify any 
individual; or permit anyone other than the sworn officers, 
employees or agents of any Federal department or agency to 
examine individual reports through which the information is 
furnished.
      378. Under the House bill, but not the Senate amendment, 
any information collected as part of the LMI system may not be 
used against an individual in a legal process.
      The Senate recedes with an amendment providing that 
nothing in this subparagraph shall be construed as providing 
immunity from the legal process for information that is 
independently collected or produced for purposes other than for 
purposes of this section.
      379. Both the House bill and the Senate amendment outline 
the cooperative administrative structure for the LMI system, 
but the House bill refers to local entities as part of such 
structure.
      The Senate recedes with an amendment providing that the 
labor market information system be planned, administered, 
overseen, and evaluated by a cooperative governance structure 
involving the Federal Government, States, and local entities. 
The amendment also specifies certain duties for the Secretary 
of Labor.
      380. The House bill, but not the Senate amendment 
requires the Secretary of Labor to carry out specific duties 
with respect to data collection.
      The House recedes.
      381. The House bill requires the Secretary, in 
collaboration with Bureau of Labor Statistics to carry out 
additional duties. The Senate amendment requires plan 
information regarding such duties.
      The House recedes.
      382. The House bill, but not the Senate amendment, 
clarifies that the annual plan is part of the DOL budget 
submitted to Congress. As such, it is the written justification 
for the use of these funds and for the priority of these funds 
for the following fiscal year. Both the House bill and the 
Senate amendment require the plan to include various elements. 
To the extent that both bills include similar elements, there 
are differences in content.
      The House recedes with an amendment requiring the 
Secretary of Labor, in collaboration with the States and the 
Bureau of Labor Statistics, and with the assistance of other 
appropriate Federal agencies, to prepare an annual plan that 
shall describe the cooperative Federal-State governance 
structure for the labor market information system.
      383. The House bill requires that the plan be developed 
through a formal process involving the Secretary of Labor, 
Bureau of Labor Statistics and State directors of LMI, whereas 
the Senate amendment requires a description of formal 
consultations.
      The Senate recedes with an amendment requiring the 
Secretary of Labor and the Bureau of Labor Statistics, in 
cooperation with the States, to develop the plan by holding 
formal consultations with State representatives who have 
expertise in labor market information; and pursuant to a 
process agreed upon by the Secretary of Labor and the States, 
representatives from each of the Federal regions of the 
Department of Labor; and employers or representatives of 
employers.
      384. Both the House bill and the Senate amendment allow 
for representatives of the Governor to participate in 
deliberations relating to budget issues for the development of 
the annual plan.
      The House and Senate recede.
      385. Under both the House bill and the Senate amendment, 
the Governor must designate a single State agency (or entity in 
the Senate amendment) to be responsible for the management of 
the statewide LMI system. Under the House bill this agency 
would also have an oversight role. In the Senate amendment, the 
oversight function would be carried out under an interagency 
process.
      The House recedes with an amendment requiring the 
Governor of a State to designate a single State agency or 
entity to be responsible for the management of the statewide 
labor market information system and authorizing establishment 
of a process for the oversight of such a system.
      386. Both the House bill and the Senate amendment require 
States to carry out specific duties in exchange for receipt of 
funds. To the extent that both bills include similar 
requirements, they differ in content.
      The House recedes with an amendment describing the duties 
of the State agency designated to be responsible for labor 
market information.
      386a. The Senate amendment, but not the House bill, 
provides for a rule of construction.
      The House recedes.
      387. Under the Senate amendment, but not the House bill, 
this section takes effect July 1, 1998. (See Note 456 for 
comparable House provision)
      The House recedes.
UI trust fund
      388. The Senate amendment, but not the House bill, makes 
amendments to the Unemployment Trust Fund to conform with the 
Workforce Development Act.
      The Senate recedes.
Limited Federal regulations
      389. The House bill, but not the Senate amendment, 
restricts Department of Education and Department of Labor from 
issuing unnecessary regulations in regard to this Act.
      The Senate recedes with conforming and technical changes.

                           National Programs

Education/youth
      390. The House bill authorizes $25 million or 20% of 
total funding for the youth development block grant funding--
whichever is less--for Federal research, a national assessment 
of youth development programs and a national center(s) for 
research on youth development programs. The Senate amendment 
reserves 0.15% of the $5.884 billion authorization ($8,826,000) 
for a national center for research in education and workforce 
development, a national assessment of vocational education and 
the National Institute for Literacy.
      The House and Senate recede.
      391. The House bill, but not the Senate amendment, allows 
the Secretary to award discretionary grants for demonstration 
and model programs. Funds may also be used by the Department of 
Education for evaluation, capacity building and technical 
assistance.
      The Senate recedes with an amendment requiring the 
Secretaries, as part of the interagency agreement, to develop a 
single plan for assessment and evaluation, research, 
demonstrations, dissemination of model programs, and technical 
assistance activities with regard to the services and 
activities carried out under this title. The amendment 
authorizes $15 million for assessment and evaluation of 
activities assisted under this title; $15 million for a 
national research center or centers; $30 million for 
demonstration programs, replication of model programs, 
dissemination of best practices information, and technical 
assistance for fiscal years 1998-2002.
      The Managers intend that the Secretaries may use 
demonstration funds to allow national disability organizations 
to continue to carry out national employment, training and job 
placement activities for which they are uniquely qualified.
      It is also the intent of the Managers that in awarding 
demonstration grants under this authority that the Secretaries 
give strong consideration to projects that involve a 
partnership between a four year higher education institution, 
local public educational organizations, non-profit 
organizations and private sector business participants that 
provide program support, facilities, specific skills training, 
retraining, education, tutoring, counseling, employment 
preparation through distance learning in emerging and 
established professions to individuals who otherwise would not 
have access to such services, as exemplified by programs 
currently proposed by Pacific Union College and Napa Valley 
Community Resource Center in Angwin, California.
      The Managers further intend for the Secretaries to use 
the resources made available under the ``Demonstrations, 
Dissemination, and Technical Assistance'' section to replicate 
models of demonstrated effectiveness, such as the Center for 
Employment and Training (CET) and the Youth Build Program, for 
the purpose of developing, improving, and identifying the most 
successful methods and techniques in providing the services and 
activities authorized under this Act.
      392. The House bill, but not the Senate amendment, 
requires the Secretary of Education to establish a system to 
disseminate information received from research and development 
activities.
      The House recedes.
      393. The House bill requires Office of Educational 
Research and Improvement to conduct a biennial assessment. The 
Senate amendment requires the Secretary to conduct an 
assessment.
      The House and Senate recede.
      394. The Senate amendment, but not the House bill, 
creates a national advisory panel to advise the Secretary on 
the assessment. The advisory panel may submit an independent 
analysis to the appropriate congressional committees and the 
Federal Partnership.
      The Senate recedes.
      395. Both the House bill and the Senate amendment require 
the assessment to review certain activities.
      The House and Senate recede.
      395a. Both the House bill and the Senate amendment 
require a review of how funds received are being used by State 
and local areas to achieve the intended results of this Act; 
program improvement; the effect of performance measures, 
accountability and State and local assessments; and the success 
of students in meeting academic and occupational measures.
      The House and Senate recede.
      395b. Both the House bill and the Senate amendment have 
additional assessment requirements.
      The House and Senate recede.
      396. The Senate amendment, but not the House bill, 
requires the Secretary to consult with Congress on the design 
and implementation of the assessment. The Senate amendment 
further requires an interim report to Congress and prohibits 
review of the report outside the Department of Education prior 
to the transmittal to Congress.
      The Senate recedes.
      397. The Senate amendment has an effective date of July 
1, 1998. (See Note 456 for comparable House provision.)
      The Senate recedes.
      398. Both the House bill and the Senate amendment allow 
institutions of higher education, public and private agencies 
or consortia of such agencies to compete for a national 
research center contract.
      The House and Senate recede.
      398a. The House bill allows the Secretary of Education to 
contract for a National center to conduct research. The Senate 
amendment allows the Secretary of Education and the Secretary 
of Labor, acting on the advice of the Federal Partnership, to 
award a contract for a national center.
      The House recedes.
      398b. The House bill, but not the Senate amendment, 
requires that if such centers are established, the national 
center currently in operation shall continue under the terms of 
its contract.
      The House recedes.
      399. Both the House bill and the Senate amendment require 
the center to carry out required activities.
      The House and Senate recede.
      399a. Both the House bill and the Senate amendment 
require research and assistance in combining academic and 
vocational education, new models for remediation of academic 
skills, new linkages among education and job training, and new 
models for career guidance.
      The House and Senate recede.
      399b. Both the House bill and the Senate amendment have 
additional required activities.
      The House and Senate recede.
      400. Both the House bill and the Senate amendment require 
the center to help States and localities develop performance 
measures and indicators. The House bill further requires the 
center to provide technical assistance and outreach.
      The House and Senate recede.
      401. Both the House bill and the Senate amendment require 
the center to maintain a clearinghouse to disseminate 
information to Federal, State and local entities.
      The House and Senate recede.
      402. The Senate amendment allows the Federal Partnership 
to ask the center to study topics or conduct activities as they 
determine necessary. The House bill allows the Secretary of 
Education to request that the center conduct other activities.
      The Senate recedes.
      403. The Senate amendment, but not the House bill, 
requires the center to identify current research and technical 
assistance needs using a variety of sources including a panel 
of Federal, State and local practitioners.
      The Senate recedes.
      404. The House bill and the Senate amendment require the 
center to annually submit a report to the Secretaries of 
Education and Labor and to the House and Senate authorizing 
committees. The Senate amendment further requires the center to 
annually submit a report to the Federal Partnership.
      The House and Senate recede.
      405. The Senate amendment, but not the House bill, 
provides a 6 month transition period between the current grant 
aware expiration and subsequent authorization.
      The House recedes with an amendment striking ``on the 
advice of the Federal Partnership''.
      406. Both the House bill and the Senate amendment use the 
definition of higher education which excludes proprietary 
schools. (See Note 36 for House definition of ``eligible 
institution.'')
      The House recedes.
      407. The Senate amendment, but not the House bill, makes 
conforming amendments to current law for the transition period.
      The House recedes.
      408. The Senate amendment has a July 1, 1998 effective 
date and includes a January 1, 1998 effective date for the 
transition period for the national center. (See Note 456 for 
comparable House provision.)
      The House recedes.
Employment and training activities
      409. The House bill reserves 15% of the adult employment 
and training grant authorization ($327 million) for national 
discretionary grants (including incentive grants, research, 
development, and workforce development loans). The Senate 
amendment reserves 5% of the $5.88 billion authorization ($294 
million) for national discretionary grants, incentive grants 
and for the administration of this title.
      The House recedes with an amendment reserving 10 percent 
of the block grant for national activities. After funds have 
been distributed for Native Americans, migrants, and the 
outlying areas programs, the remainder shall be reserved for 
national emergency grants and incentive grants.
      410. Under the House bill, the Secretary of Labor is 
provided full discretion to award grants for major economic 
dislocations. Under the Senate amendment, the Secretary of 
Labor and the Secretary of Education must act jointly on the 
advice of the Federal Partnership for the award of such grant. 
The Senate amendment also includes a provision for an emergency 
determination.
      The Senate recedes with an amendment authorizing the 
Secretary of Labor to award national emergency grants to 
provide employment and training assistance to workers affected 
by major economic dislocations such as plant closures, mass 
layoffs, or closures and realignment of military installations.
      For the purposes of awarding a National Emergency Grant, 
it is the intent of the Managers that the Secretary of Labor 
should develop criteria to determine if an event constitutes a 
``major economic dislocation.'' In doing so, the Secretary 
should consider the number of workers affected in relation to 
the size and unique situation of the community affected, rather 
than by establishing any one threshold number. The Managers are 
deeply concerned that establishing an arbitrary threshold 
overlooks the varying impact of these kinds of events on 
communities of different sizes. For instance, a plant closing 
or other event affecting a small number of workers has a 
profoundly different impact on a large community as compared to 
a small community.
      411. The House bill includes a number of entities as 
eligible to receive grants under this part. The Senate 
amendment includes a State or local entity as eligible to 
receive grants under this part. (See Note 53 for Senate 
description of ``local entity.'')
      The House recedes with an amendment defining ``eligible 
entity'' to mean a State, a unit of general local government, 
or a public or private local entity (including for-profit or 
non-profit).
      412. Under the House bill, eligible entities must submit 
an application to the Secretary of Labor. Under the Senate 
amendment, such entities must submit an application to the 
Federal Partnership.
      The Senate recedes.
      413. Both the House bill and the Senate amendment provide 
that funds may be used for disaster relief employment 
assistance.
      The Senate recedes with an amendment authorizing the 
Secretary of Labor 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.
      414. The House bill, but not the Senate amendment, 
clarifies that funds may be expended through public and private 
agencies.
      The Senate recedes.
      415. Under the House bill, but not the Senate amendment, 
only individuals dislocated or laid off due to the disaster are 
eligible to be offered disaster employment.
      The House recedes with an amendment requiring that funds 
be used exclusively to provide employment on projects assisting 
disaster areas.
      416. The House bill, but not the Senate amendment, limits 
the length of time such individuals may be employed under this 
part to six months.
      The House recedes.
      417. The House bill, but not the Senate amendment, 
provides for the Secretary of Labor to use a portion of its 
discretionary funding to carry out research, demonstrations, 
evaluations, national partnerships, capacity building and 
technical assistance.
      The House recedes.
      417a. Both the House bill and the Senate amendment 
provide for ongoing evaluations of employment-related 
activities, including the use of controlled experiments using 
groups chosen by random assignment. In the House bill, the 
Secretary of Labor performs the evaluations, and in the Senate 
amendment the States perform the evaluations. (See Note 163)
      The House recedes.
      417b. The House bill, but not the Senate amendment, also 
allows the Secretary of Labor to conduct evaluations of other 
Federal employment-related workforce programs to determine 
their effectiveness. (See Note 164)
      The House recedes.
      417c. The House bill requires the Secretary of Labor to 
provide capacity building and technical assistance. The Senate 
amendment requires the Secretary of Labor and the Secretary of 
Education, acting jointly, to provide technical assistance in 
appropriate cases. (See Note 354.)
      The House recedes.
      418. The House bill, but not the Senate amendment, allows 
the Secretary of Labor to use a portion of its discretionary 
funding to make grants to States to establish workforce skills 
and loan programs.
      The House recedes.
Native American programs
      419. The House bill reserves 4% of the Adult Employment 
and Training Grant authorization of $85 million, whichever is 
less, for Native American programs. The Senate amendment 
reserves 1.25% of the $5.884 billion authorization ($73.5 
million) for Native American programs.
      The House recedes with an amendment reserving $90 million 
from the annual appropriation for Native American programs.
      420. The Senate amendment, but not the House bill, allows 
the Secretaries to reserve a portion of at-risk youth funds to 
carry out programs for Native American at-risk youth.
      The Senate recedes.
      421. The Senate amendment, but not the House bill, 
contains purposes.
      The House recedes.
      422. The Senate amendment includes several definitions 
relating to Indian workforce activities. (For comparable 
definition of Native American in the House bill see Note 57)
      The House recedes.
      423. Both the House bill and the Senate amendment 
authorize similar entities for the receipt of funds. However, 
in the House bill, Indian controlled organizations serving 
``off-reservation'' areas are eligible, in the Senate 
amendment, such entities serving ``Indians'' are eligible. 
Also, the House bill specifies the types of areas served by 
Alaska Native entities.
      The House recedes with an amendment making technical 
changes.
      424. The Senate amendment, but not the House bill, 
requires the Secretaries to distribute funds by formula.
      The Senate recedes.
      425. Both the House bill and the Senate amendment list 
authorized activities. However, the Senate amendment further 
specifies such activities.
      The House recedes with an amendment requiring that 
activities carried out are consistent with this section and are 
necessary to meet the needs of Indians or Native Hawaiians 
preparing to enter, reenter, or retain unsubsidized employment. 
The amendment requires that funds be used for workforce 
development activities and supplemental services and vocational 
education, adult education, and literacy services.
      426. The Senate amendment, but not the House bill, 
continues eligibility for individuals previously eligible under 
the JTPA program for Native Americans.
      The House recedes.
      427. The House bill, but not the Senate amendment, allows 
for the Secretary of Labor to transfer authority to the 
Secretary of Education to carry out specific vocational 
education programs for Native Americans.
      The Senate recedes with an amendment allowing the 
Secretaries to agree that the Secretary of Education may carry 
out any portion of assistance devoted to vocational education 
activities including assistance to entities not eligible for 
funding pursuant to the Tribally Controlled Community College 
Assistance Act.
      The Managers have consolidated employment and training 
services, including vocational education services, into a 
Native American block grant. The Department of Labor as part of 
the interagency agreement is encouraged to transfer the portion 
of the funds covering vocational education services to the 
Department of Education in recognition of that Department's 
special expertise in this area.
      In making grants for education services the Secretary, 
consistent with previous policy, shall give consideration to 
applications from Tribally Controlled Community Colleges. The 
Managers also recognize the important role of the two tribal 
postsecondary vocational education institutions--United Tribes 
Technical College and Crownpoint Institute of Technology--and 
expect the Secretary to continue support for these institutions 
from funds allocated under this section.
      428. The Senate amendment, but not the House bill, 
requires eligible entities to submit a 3-year plan to the 
Federal Partnership.
      The House recedes with an amendment striking ``Federal 
Partnership'' and inserting ``Secretaries''.
      429. Both the House bill and the Senate amendment allow 
eligible entities to further consolidate funds under this Act 
in accordance with P.L. 102-477.
      The Senate recedes.
      430. The Senate amendment, but not the House bill, 
includes provisions regarding nonduplicative and nonexclusive 
services.
      The House recedes.
      431. The Senate amendment, but not the House bill, 
establishes an office within the Federal Partnership to 
administer this section.
      The House recedes with an amendment requiring the 
Secretaries to designate a single organizational unit to 
administer Native American programs and to provide technical 
assistance.
      432. Both the House bill and the Senate amendment require 
that regulations be developed in consultation with Tribal 
entities. Under the House bill, the Secretary of Labor is 
responsible for establishing regulations, whereas the Senate 
amendment specifies the Partnership, through the Native 
American office.
      The Senate recedes with an amendment requiring the 
Secretaries to consult with the eligible entities in 
establishing regulations and performance standards for Native 
American programs.
      433. The Senate amendment, but not the House bill, 
permits the Secretaries to act jointly in the distribution of 
at-risk youth funds, if any, for Native Americans.
      The Senate recedes.
Migrant and seasonal farmworker program
      434. The House bill reserves 4% of the Adult Training and 
Employment authorization or $85 million, whichever is less, for 
migrant and seasonal farmworkers. The Senate amendment reserves 
1.25% of the $5.884 billion authorization ($73.5 million) for 
migrant and seasonal farmworkers.
      The Senate recedes with an amendment reserving $70 
million from the annual appropriation for migrant and seasonal 
farmworker programs.
      The conference agreement includes the consolidation of 
current programs for migrant and seasonal farmworkers into a 
single program which is intended to serve as the main vehicle 
for Federal investments in migrant and seasonal farmworkers' 
training, placement, and related assistance. These investments 
assist farmworkers to secure stable, meaningful employment. 
These programs target services to one of the most hard-to-serve 
and at-risk populations in the United States.
      The legislative language includes broad allowable 
services that may be provided under this section for migrant 
and seasonal farmworkers and their dependents including single 
purpose grants for the provision of training and technical 
assistance for housing and related assistance.
      434a. The House bill authorizes the Secretary of Labor to 
carry out this program. The Senate amendment authorizes the 
Secretaries, acting jointly on advice of the Federal 
Partnership, to carry out this program.
      The House recedes with an amendment making technical 
changes.
      435. The House bill allows the Secretary of Labor to 
determine eligible entities. The Senate amendment lists 
specific criteria for eligible entities.
      The House recedes with an amendment requiring that 
eligible entities shall have an understanding of the problems 
of migrant and seasonal farmworkers, a familiarity with the 
area to be served, and can demonstrate a capacity to administer 
effectively a diversified program of workforce development 
activities for migrant and seasonal farmworkers.
      436. The House bill lists specific allowable activities. 
The Senate amendment authorizes funds for ``comprehensive 
workforce development activities and related services.''
      The Senate recedes with an amendment requiring that funds 
made available under this section shall be used to carry out 
comprehensive workforce development activities and related 
services for migrant and seasonal farmworkers and their 
dependents.
      437. The House bill, but not the Senate amendment, 
require that regulations be developed in consultation with 
farmworker groups.
      The Senate recedes with an amendment requiring the 
Secretaries to consult with seasonal and migrant farmworker 
groups and States in establishing regulations and performance 
standards for the migrant and seasonal farmworker program.
      438. The Senate amendment, but not the House bill, 
requires eligible entities to submit a 3-year plan to the 
Federal Partnership.
      The House recedes with an amendment requiring that 
eligible entities submit to the Secretaries a plan that 
describes a 3-year strategy for meeting the needs of migrant 
and seasonal farmworkers and their dependents.
      439. The Senate amendment, but not the House bill, 
require that grants be distributed in consultation with 
Governors and local partnership.
      The House recedes with an amendment requiring that in 
making grants and entering into contracts under this section, 
the Secretaries shall consult with the Governors and with local 
workforce development boards.
Territories/Outlying areas
      440. The House bill provides funding for territories in 
each of the three grants. For the youth grant, funds are 
available to territories through the State allotment, with the 
definition of ``State'' including such territories. For the 
adult employment and training grant, up to one quarter of 1% of 
the authorized allotment available for States, ($4.6 million), 
is reserved for territories. For the adult education and 
literacy grant, $100,000 is reserved for each of the 
territories. The Senate amendment authorizes .2% of the $5.884 
billion authorization ($11.76 million) for outlying areas.
      The House recedes with an amendment reserving $14 million 
from the annual appropriation for the outlying areas.
      441. The Senate amendment, but not the House bill, 
authorizes the Secretaries, acting jointly on the advice of the 
Federal partnership, to award grants to outlying areas.
      The House recedes with an amendment that allots funds to 
the outlying areas, reserves the funds allotted to the Republic 
of the Marshall Islands, the Federated States of Micronesia and 
Palau for a competitive grant award to all of the outlying 
areas based on recommendations by the Pacific Region 
Educational Lab to the Secretaries, and terminates the 
authority for the Republic of the Marshall Islands, the 
Federated States of Micronesia and Palau to receive funds under 
this title on September 30, 2001.

                                 other

No tracking
      442. The House bill, but not the Senate amendment, 
includes two provisions prohibiting the tracking of 
individuals, including youth, into a specific career or to 
require the attainment of a federally funded or endorsed skill 
certificate.
      The Senate recedes with a clarifying amendment.
Transition
      443. The House bill provides that the Secretary of Labor 
and the Secretary of Education will ensure an orderly 
transition from programs repealed or amended. The Senate 
amendment provides that States and local entities may seek 
waivers from the Secretaries under any of the programs repealed 
or amended during the 2 year transition period.
      The House recedes with technical and conforming changes 
and increasing the time the Secretary has to approve or 
disapprove a waiver from 45 to 60 days.
      444. The Senate amendment, but not the House bill, 
provides a flexibility demonstration program for six States 
(which meet specific eligibility requirements) to waive any 
statutory or regulatory requirement under any of the programs 
repealed or amended during the 2-year transition period.
      The Senate recedes.
      445. The Senate amendment, but not the House bill, 
requires each State to submit an interim State plan to the 
Federal Partnership by June 30, 1997. The Secretaries may 
approve the interim plan and authorize the full integration of 
program funds and activities as provided in the block grant in 
fiscal year 1997. If the Secretaries disapprove the interim 
plan, they must make recommendations and provide technical 
assistance to States for developing the State plan to be 
submitted for fiscal year 1998.
      The House recedes with an amendment authorizing the 
Secretaries to provide technical assistance to States that 
request such assistance in preparing the State plan or in 
developing the State benchmarks.
      446. The Senate amendment, but not the House bill, 
provides that States and local entities will not be required to 
submit applications or plans in fiscal years 1996 or 1997 in 
order to receive funding under any programs which will 
ultimately be repealed under the Act.
      The House recedes with an amendment striking ``1996 or''.
      447. The Senate amendment, but not the House bill, 
provides that the Federal Partnership will take over 
administration of the School-to-Work Opportunities Act on 
October 1, 1996.
      The Senate recedes.
      448. The Senate amendment, but not the House bill, 
extends the authorizations for the Carl D. Perkins Vocational 
and Applied Technology Act and the Adult Education Act through 
fiscal years 1998.
      The House recedes with an amendment striking paragraphs 
(b)(2), (b)(3), and (b)(4).
Repealers
      449. Under the House bill, the Smith-Hughes Act is 
repealed on October 1, 1995. Under the Senate amendment, the 
following laws are repealed immediately upon enactment: (1) the 
State Legalization Impact Assistance Grant (SLIAG), (2) Title 
II of Public Law 95-250, (3) the Displaced Homemakers Self-
Sufficiency Assistance Act, (4) the Appalachian Vocational and 
Other Education Facilities & Operations program, (5) the Job 
Training for the Homeless Demonstration Project, (6) Section 
5322 of title 49, U.S.C., and (7) Subchapter I of chapter 421 
of title 49, U.S.C.
      The House recedes with an amendment striking the repeal 
of Section 5322 of title 49, United States Code and Subchapter 
I of chapter 421 of title 49, United States Code.
      449a. Under the House bill, the following laws are 
repealed on July 1, 1997: (1) the Carl D. Perkins Vocational 
and Applied Technology Education Act, (2) the School-to-Work 
Opportunities Act, (3) the Adult Education Act, (4) the Adult 
Education for the Homeless program, (5) the School Dropout 
Assistance Act, (6) the National Literacy Act (except section 
101), (7) the Library Services and Construction Act, (8) the 
Technology for Education Act of 1994, and (9) the Job Training 
for the Homeless Demonstration Project.
      Under the Senate amendment, the following laws are 
repealed on July 1, 1998: (1) the Carl D. Perkins Vocational 
and Applied Technology Education Act, (2) the School-to-Work 
Opportunities Act, (3) the Adult Education Act, (4) the Adult 
Education for the Homeless program, and (5) the Education for 
Homeless Children and Youth Education program.
      The Senate recedes with an amendment striking the repeal 
of The National Literacy Act of 1991, and repealing Title VII 
of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11421 et seq.), other than subtitle B and section 738.
      449b. Under the House bill, all of the Job Training 
Partnership Act, except for the Job Corps program and the 
veterans' employment programs, is repealed on July 1, 1997. 
Under the Senate amendment, all of the Job Training Partnership 
Act is repealed on July 1, 1998.
      The House recedes with an amendment striking paragraph 
(c)(2).
      450. Both the House bill and the Senate amendment make 
amendments to other laws to conform with the repeal of programs 
as described in Note 449.
      Legislative counsel.
      450a. Both the House bill and the Senate amendment make 
conforming amendments to other Federal laws which reference the 
Adult Education Act.
      Legislative counsel.
      450b. The Senate amendment, but not the House bill, makes 
conforming amendments to other Federal laws which reference the 
Carl D. Perkins Vocational and Applied Technology Education 
Act.
      Legislative counsel.
      450c. The Senate amendment, not the House bill, makes 
conforming amendments to other Federal laws which reference the 
School-to-Work Opportunities Act of 1994.
      Legislative counsel.
      450d. The House bill includes conforming amendments to 
the Job Training Partnership Act to reflect the repeal of some 
parts of such Act. The Senate amendment, which repeals the 
entire Job Training Partnership Act, makes conforming 
amendments to other Federal laws which reference the Job 
Training Partnership Act.
      Legislative counsel.
      450e. The Senate amendment, not the House bill, makes 
conforming amendments to other Federal laws which reference the 
Stewart B. McKinney Homeless Assistance Act.
      Legislative counsel.
      450f. The Senate amendment, not the House bill, requires 
the Federal Partnership, after consultation with the 
appropriate committees of Congress and the Director of the 
Office of Management and Budget, to submit to Congress 
legislation containing further technical and conforming 
amendments.
      The Senate recedes.
      450g. Under the House bill, the conforming amendments are 
effective on July 1, 1997. Under the Senate amendment, the 
conforming amendments for the programs repealed immediately are 
effective on the date of enactment, and for the programs 
repealed subsequently are effective on July 1, 1998.
      The House recedes.
Higher Ed Repeals
      451. The House bill, but not the Senate amendment, 
repeals the following programs:
      (1) Articulation Agreements
      (2) Access & Equity to Education for all Americans 
through Telecommunications
      (3) Academic Libraries and Information Services
      (4) National Early Intervention Scholarships
      (5) Presidential Access Scholarships
      (6) Model Program Community Partnership & Counseling 
Grants
      (7) Early Awareness Information Program
      (8) Technical Assistance for Teachers & Counselors
      (9) Special Child Care Services for Disadvantaged College 
Students
      (10) Loan Forgiveness for Teachers, Individuals 
Performing Community Service and Nurses
      (11) Training in Financial Aid Services
      (12) State Postsecondary Review Program
      (13) State & Local Programs for Teacher Excellence
      (14) National Teacher Academies
      (15) Paul Douglas Teacher Scholarships
      (16) Teacher Corps
      (17) Class Size Demonstration Grant
      (18) Middle School Teaching Demonstration Programs
      (19) New Teaching Careers
      (20) National Mini Corps Programs
      (21) Demonstration Grants for Critical Language/Area 
Studies
      (22) Development of Foreign Language & Culture 
Instructions Materials
      (23) Small State Teaching Initiative
      (24) Faculty Development Grants
      (25) Early Childhood Staff Training & Professional 
Enhancement
      (26) Intensive Summer Language Institutes
      (27) Periodicals and Other Research Materials Published 
Outside the United States
      (28) Improvement of Academic & Library Facilities
      (29) Cooperative Education
      (30) Grants to Institutions and Consortia To Encourage 
Women & Minority Participation in Graduate Education
      (31) Harris Fellowships
      (32) Javits Fellowships
      (33) Faculty Development Fellowship Program
      (34) Assistance for Training in the Legal Profession
      (35) Law School Clinical Experience
      (36) FIPSE--Special Projects in Areas of National Need
      (37) Science & Engineering Access
      (38) Woman & Minorities Science & Engineering Outreach 
Demonstration Programs
      (39) Eisenhower Leadership Program
      (40) Community Service Programs

      (1) National Academy of Science Study
      (2) Native Hawaiian and Alaska Native Culture and Arts 
Development

      (1) American Indian Postsecondary Economic Development 
Scholarship
      (2) American Indian Teach Training
      (3) National Survey of Factors Associated with 
Participation
      (4) Study of Environmental Hazards in Institutions of 
Higher Education
      (5) National Job Bank for Teacher Recruitment
      (6) National Clearinghouse for Postsecondary Education 
Materials
      (7) School-Based Decisionmakers
      (8) Grants for Sexual Offenses Education
      (9) Olympic Scholarships
      (10) Advanced Placement Fee Payment Program
      The Senate recedes with an amendment striking the repeal 
of the National Early Intervention Scholarships program; the 
Javits Fellowship program; the Law School Clinical Experience 
program; the FIPSE--Special Projects in Areas of National Needs 
program; and the Community Service Programs.
      452. The House bill, but not the Senate amendment, 
deletes all references to State postsecondary review entities.
      The Senate recedes.
      453. The House bill, but not the Senate amendment, amends 
the Higher Education Act to specify that, for purposes of 
eligibility under Section 481(b)(6) [the 85/15 Rule], a 
proprietary institution may use its independent auditor rather 
than a certified public accountant to review the school's 
financial data; may use generally accepted accounting practices 
to determine compliance; and may count revenues earned from 
providing training on a contractual basis to government, 
business, or industry as non-Federal revenue.
      The House recedes.
      454. The House bill, but not the Senate amendment, 
prohibits the Secretary from considering an institution's 
financial information for an institution's fiscal year which 
began on or before April 30, 1994. This date coincides with the 
day after which the Secretary's regulations implementing the 
85/15 rule became final.
      The Senate recedes.
      455. The House bill, but not the Senate amendment, sets 
an effective date for these changes of July 1, 1994. This date 
coincides with the start of the 1994-1995 academic year.
      The Senate recedes.
Effective date
      456. The House bill takes effect on July 1, 1997. The 
Senate amendment (including the workforce development grant and 
the at-risk youth grant) takes effect on July 1, 1998.
      The House recedes with technical amendments.
Immigration and Nationality Act
      457. The Senate amendment, but not the House bill, amends 
the Immigration and Nationality Act to prohibit funds 
authorized under that Act to be used for training activities 
for refugees.
      The Senate recedes.
Rehabilitation Act
      458. The House bill, but not the Senate amendment, 
provides that the Act retains current law and has no legal 
effect on the Rehabilitation Act of 1973.
      The House recedes.
      459. The Senate amendment, but not the House bill, 
explains that references in title II, subtitle A, of the 
Workforce Development Act of 1995, unless otherwise noted, are 
to the Rehabilitation Act of 1973.
      The House recedes.
      460. The Senate amendment, but not the House bill, amends 
section 2(a)(4) of the Rehabilitation Act by indicating that 
increased employment of individuals with disabilities can be 
achieved through implementation of a statewide workforce 
development system that provides meaningful and effective 
participation for such individuals in workforce development 
activities and through title I of the Rehabilitation Act. The 
Senate amendment also amends section 2(b)(1)(A) of the 
Rehabilitation Act by adding that empowering individuals with 
disabilities can occur through statewide workforce development 
systems that include comprehensive and coordinated programs of 
vocational rehabilitation.
      The House recedes with an amendment striking ``and (2) in 
subsection (b)(1)(A)'', by inserting ``statewide workforce 
development systems that include, as integral components,'' 
after ``(A)''; and inserting ``(2) in subsection (b)(1)(A), by 
striking `and coordinated' and inserting prior to the 
semicolon, `that coordinate with statewide workforce 
development systems''.
      461. The Senate amendment, but not the House bill, 
repeals section 6 of the Rehabilitation Act that allows 
consolidated plans from State vocational rehabilitation 
agencies and State developmental disabilities councils.
      The Senate recedes.
      462. The Senate amendment, but not the House bill, amends 
section 7 of the Rehabilitation Act by conforming definitions 
with the Work Force Development Act.
      The House recedes with conforming amendments.
      463. The Senate amendment, but not the House bill, amends 
section 12(a)(1) of the Rehabilitation Act by giving the 
Commissioner of the Rehabilitation Services Administration the 
authority to provide consultative services and technical 
assistance to public and nonprofit private agencies to achieve 
the meaningful participation of individuals with disabilities 
in the statewide workforce development system.
      The House recedes with conforming amendments.
      464. The Senate amendment, but not the House bill, amends 
section 13 of the Rehabilitation Act by conforming data 
collection with the Workforce Development Act of 1995.
      The House recedes with conforming amendments.
      465. The Senate amendment, but not the House bill, amends 
section 14(a) of the Rehabilitation Act by conforming 
evaluation requirements with the Workforce Development Act of 
1995. The Senate amendment also states that the Secretary may 
modify or supplement such benchmarks, under certain conditions, 
to address unique conditions associated with reporting on 
individuals with disabilities.
      The House recedes with conforming amendments.
      466. The Senate amendment, but not the House bill, amends 
section 100(a)(1)(F) of the Rehabilitation Act by adding to the 
finding the term ``workforce development activities''.
      The House recedes.
      467. The Senate amendment, but not the House bill, adds a 
new (G) to section 100(a)(1) of the Rehabilitation Act, a 
finding which states that linkages between vocational 
rehabilitation program and other components of the workforce 
development system are critical to the effective and meaningful 
participation of individuals with disabilities in workforce 
development activities.
      The House recedes with conforming amendments.
      468. The Senate amendment, but not the House bill, amends 
section 100(a)(2) of the Rehabilitation Act, which expresses 
the purpose of title I, adding specifications that a program of 
vocational rehabilitation is an integral component of a 
statewide workforce development system.
      The House recedes with an amendment striking ``an 
integral component of'' and inserting ``coordinated with the'' 
and conforming amendments.
      469. The Senate amendment, but not the House bill, amends 
section 101(a) of the Rehabilitation Act, conforming the 
schedule for submitting the State plan under title I of the 
Rehabilitation Act to coincide with the schedule for submission 
of the workforce plan, and requires that the State plan 
required under title I of the Rehabilitation Act be submitted 
to any State workforce development board for review and 
comment, and submission of such comments to the appropriate 
designated State unit which administers the vocational 
rehabilitation program.
      The House recedes with an amendment striking paragraph 
``(3)'' and inserting ``(3) by striking paragraphs (10)(A), 
(15)(A-B), (27), (28) and (30)''; striking paragraphs ``(6)'' 
and ``(7)''; and conforming amendments.
      470. The Senate amendment, but not the House bill, adds a 
new paragraph (3) with regard to improving and expanding 
vocational rehabilitation services for individuals with 
disabilities.
      The Senate recedes.
      471. The Senate amendment, but not the House bill, adds 
in paragraph (6) (so redesignated), that the State plan shall 
include the results of a comprehensive, statewide needs 
assessment.
      The House recedes with an amendment to section 101(a)(9) 
to include, in the assessment, the utilization of community 
rehabilitation programs funded under the Javits-Wagner-O'Day 
Act and State use contracting programs and clarifying that 
training may be provided to counselors and other personnel.
      472. The Senate amendment, but not the House bill, amends 
subparagraph (A) of paragraph (8) as redesignated, by 
consolidating provisions pertaining to personnel development.
      The House recedes.
      473. The Senate amendment, but not the House bill, 
deletes in section 101(a) of the Rehabilitation Act, in 
paragraph (9) as redesignated, reference to individuals at 
extreme medical risk.
      The Senate recedes.
      474. The Senate amendment, but not the House bill, makes 
technical changes to section 101(a) of the Rehabilitation Act, 
in paragraph (10) as redesignated, substituting the term 
``individualized employment plan'' for the term 
``individualized written rehabilitation program.''
      The House recedes with conforming amendments.
      475. The Senate amendment, but not the House bill, amends 
paragraph (11) as redesignated, allowing for entering into 
cooperative agreements with entities that are and are not part 
of the workforce development system.
      The House recedes with conforming amendments.
      476. The Senate amendment, but not the House bill, adds 
in paragraph (14) as redesignated, the requirement for timely 
notice of public hearings, collecting comments, and 
disseminating information about how comments affect the 
delivery of services.
      The Senate recedes.
      477. The Senate amendment, but not the House bill, amends 
paragraph (16) as redesignated, establishing the obligation to 
make referrals within the workforce development system.
      The House recedes.
      478. The Senate amendment, but not the House bill, amends 
paragraph (17) as redesignated, by transferring the current law 
provisions of Sec. 101(a)(30) of the Rehabilitation Act which 
describes how the needs of individuals who are not in special 
education can access and receive vocational rehabilitation 
services.
      The House recedes.
      479. The Senate amendment, but not the House bill, amends 
section 102 of the Rehabilitation Act by substituting the term 
``individualized employment plan'' for the term 
``individualized written rehabilitation program'', wherever it 
appears.
      The House recedes.
      480. The Senate amendment, but not the House bill, amends 
section 103 of the Rehabilitation Act by removing the authority 
to use title I funds of the Rehabilitation Act for surgery or 
construction.
      The Senate recedes.
      481. The Senate amendment, but not the House bill, amends 
section 105 of the Rehabilitation Act by encouraging links 
between members of the Council and any boards established under 
the Workforce Development Act of 1995.
      The House recedes with conforming amendments.
      482. The Senate amendment, but not the House bill, amends 
section 106(a)(1) of the Rehabilitation Act to require that 
standards and indicators, to the maximum extent appropriate, 
will be consistent with benchmarks established under the 
Workforce Development Act of 1995. The Senate amendment also 
provides that the Secretary may modify or supplement such 
benchmarks, under certain conditions, to address unique 
conditions associated with reporting on individuals with 
disabilities.
      The House recedes with an amendment that specifies the 
application of this requirement to future standards and 
indicators under the authority of the Commissioner of the 
Rehabilitation Services Administration to modify or supplement 
such benchmarks.
      483. The Senate amendment, but not the House bill, amends 
Title I by repealing part C, Innovation and Expansion Grants, 
and redesignating parts D, American Indian Vocational 
Rehabilitation Services, and E, Vocational Rehabilitation 
Services Client Information, as parts C and D.
      The Senate recedes.
      484. The Senate amendment, but not the House bill, makes 
conforming amendments to the Rehabilitation Act of 1973.
      The Senate recedes.
      485. The Senate amendment, but not the House bill, 
provides that amendments to the Rehabilitation Act take effect 
upon enactment, except that statewide system requirements, 
specifically provisions that relate to State benchmarks or 
other components of a statewide system, shall take effect in a 
State that submits and obtains approval of an interim plan 
under section 173 for program year 1997 on July 1, 1997; and in 
any other State, on July 1, 1998.
      The House recedes with an amendment to conform the dates 
with the rest of the Act.
Higher education privatization
      486. The House bill, but not the Senate amendment, 
requires Sallie Mae's current Board of Directors to develop a 
reorganization plan for the restructuring of the Association's 
ownership. Current shares in Sallie Mae would be converted into 
shares in a newly formed Holding Company chartered in a State 
or the District of Columbia.
      The Senate recedes with an amendment providing that the 
Student Loan Marketing Association (SLMA) shall either vote to 
reorganize as a private company or shall be dissolved. In 
either instance, SLMA as a government sponsored enterprise with 
implicit Federal financial backing, shall cease to exist. The 
amendment specifies that within 18 months of the date of 
enactment, SLMA's board of directors shall develop a plan for 
reorganization and present such plan to its shareholders for 
approval. In the event that the shareholders agree to the plan, 
a newly formed corporation shall coexist with the current GSE 
until 2008. This lengthy transition is necessary for budget 
purposes, during which time only the GSE may engage in Federal 
student loan activity authorized under the Higher Education Act 
of 1965. In the event that the shareholders do not agree to 
reorganize, SLMA shall submit to the Secretary of the Treasury 
a plan outlining how it will cease all business activities by 
the year 2013.
      487. The House bill, but not the Senate amendment, 
requires that the reorganization plan be approved by the 
holders of a majority of Sallie Mae's outstanding stock. As 
defined, the ``reorganization effective date'' means the date 
determined by the Association Board of Directors pending 
stockholder approval, but no later than 18 months after the 
enactment of this section.
      The House recedes.
      488. The House bill, but not the Senate amendment, 
clarifies that, except as specifically modified by the 
provisions of section 440, the provisions of section 439 of the 
Higher Education Act continue to apply in full force and effect 
to the Association during its wind-down period following the 
reorganization of its ownership. The Holding Company and its 
other subsidiaries shall not be entitled or subject to any of 
the rights, privileges, obligations or limitations applicable 
to the Association under section 439, except as specifically 
provided in section 440. This section clarifies that the 
Holding Company and its non-GSE subsidiaries shall not purchase 
federally-insured student loans until the Association ceases to 
purchase such loans, except for the Association's purchase of 
such loans as a lender-of-last-resort or under agreement with 
the Secretary of Education pursuant to section 440(c)(6).
      The House recedes.
      489. The House bill, but not the Senate amendment, 
specifies that, as soon as practicable after the 
reorganization, the Association would be required to use its 
best efforts to transfer to the Holding Company or its non-GSE 
subsidiaries all real and personal property, including 
intangibles held by the Association, except for property 
defined as ``remaining property.'' Remaining property would 
include the financial, program-related assets and obligations 
of the Association, such as debt obligations, student loans, 
portfolio investments, letters of credit, outstanding swap 
agreements and forward purchase commitments. Such property 
could be transferred out of the GSE subsequently, so long as 
the GSE continued to maintain adequate capital to meet the 
requirements of section 439(r), as amended.
      The House recedes.
      490. The House bill, but not the Senate amendment, 
specifies that at the time of the reorganization, the employees 
of the Association will become employees of the Holding Company 
or the other subsidiaries. This provision requires the Holding 
Company and the subsidiaries to provide management and 
operational support for the Association during the wind-down as 
requested by the Association. The Association is also 
specifically empowered to obtain management and operational 
support from persons other than the Holding Company and the 
subsidiaries.
      The House recedes.
      491. The House bill, but not the Senate amendment, 
clarifies that the Association may pay dividends in the form of 
cash or noncash distributions to the Holding Company, just as 
it may pay dividends to shareholders under current law. The 
payment of dividends would continue to be subject to the 
requirements of section 439(r).
      The House recedes.
      492. The House bill, but not the Senate amendment, 
provides that for purposes of calculating compliance with the 
Association's capital requirements, any distribution of noncash 
assets by the Association to the Holding Company is to be 
valued at net book value as of the date the distribution was 
approved by the Association's Board of Directors.
      The House recedes.
      493. The House bill, but not the Senate amendment, limits 
the Association's ability to engage in new business activities 
or acquire new assets following the reorganization. Activities 
may be undertaken in connection with student loan purchases 
through September 30, 2005; in connection with contractual 
commitments for future warehousing advances, where such 
commitments are outstanding as of the date of the 
reorganization; or pursuant to a letter of credit or standby 
bond purchase agreement that is outstanding as of such date. 
Activities may also be undertaken in connection with the GSE's 
role as lender of last resort pursuant to section 439. Finally, 
activities may be undertaken pursuant to agreements entered 
into with the Secretary of Education if the Secretary requests 
the Association to continue or resume its secondary market 
purchase program. The Secretary may make such a request only 
after determining that there is inadequate liquidity for loans 
made under Part B of Title IV of the Higher Education Act. Any 
such agreement shall cover a period of 12 months, but may be 
renewed if the Secretary determines that liquidity remains 
inadequate. The provision provides that the offset fee provided 
under section 439(h)(7) shall not apply to loans acquired 
pursuant to any such agreement.
      The House recedes.
      494. The House bill, but not the Senate amendment, 
prohibits the Association from issuing new debt obligations 
that mature later than September 30, 2009, except in connection 
with fulfilling the Association's lender of last resort role or 
with purchasing loans under an agreement with the Secretary of 
Education described in the previous paragraph.
      The House recedes.
      495. The House bill, but not the Senate amendment, 
establishes new requirements to the safety and soundness 
requirements currently applicable to the Association under the 
Higher Education Act. The GSE is required to obtain such 
information and keep such records as the Secretary of the 
Treasury may prescribe concerning any material financial risk 
to the Association which could reasonably result from the 
activities of the Holding Company or its non-GSE subsidiaries. 
The GSE must also keep records relating to the policies, 
procedures and systems used by the GSE to monitor and control 
such risk. The summary reports may be required by the Secretary 
of the Treasury, but no more frequently than quarterly.
      The House recedes.
      496. The House bill, but not the Senate amendment, 
imposes requirements to ensure that a substantial degree of 
separation is maintained between the Association and its 
affiliates, including (i) the assets of the Association shall 
be maintained separately from those of the Holding Company and 
its other subsidiaries and may be used only in connection with 
the Association's purposes and obligations; (ii) the 
Association's books and records shall clearly reflect the 
assets and liabilities of the Association, separate from the 
assets and liabilities of the Holding Company and its other 
subsidiaries; (iii) the Association's corporate office shall be 
physically separate from all offices of the Holding Company and 
its other subsidiaries; (iv) no director of the Association who 
is appointed by the President may serve as a director of the 
Holding Company; (v) at least one of the Association's officers 
shall be an officer solely of the Association; (vi) 
transactions between the Association and the Holding Company 
and its subsidiaries shall be on terms no less favorable than 
the Association would receive from a third party; (vii) the 
Association shall not extend credit to the Holding Company or 
its subsidiaries or guarantee or provide credit enhancement for 
any debt of the Holding Company or the subsidiaries; (viii) any 
amounts collected on behalf of the Association by the Holding 
Company or its other subsidiaries with respect to the assets of 
the Association are required to be immediately deposited to an 
account controlled solely by the Association. No restrictions 
shall apply to directors of the Association not appointed by 
the President.
      The House recedes.
      497. The House bill, but not the Senate amendment, 
provides that under no circumstances shall the assets of the 
Association be available to pay claims or debts incurred by the 
Holding Company.
      The above requirement shall not limit the right of the 
Association to pay dividends that are otherwise permissible and 
shall not limit any liability of the Holding Company that is 
explicitly provided for in Part B.
      The House recedes.
      498. The House bill, but not the Senate amendment, limits 
the Holding Company's activities to the ownership of the 
Association and its other subsidiaries during the wind-down 
period, and all business activities shall be conducted at the 
subsidiary level.
      The House recedes.
      499. The House bill, but not the Senate amendment, gives 
the Holding Company, as sole shareholder of Sallie Mae, the 
authority to choose the shareholder-elected members of the 
Association's Board of Directors. The directors will not be 
required to meet current eligibility standards.
      The House recedes.
      500. The House bill, but not the Senate amendment, 
requires the Holding Company to issue to the Secretary of the 
Treasury 200,000 stock warrants, each warrant entitling the 
holder to purchase a share of stock of the Holding Company at 
any time on or before September 30, 2009.
      The House recedes.
      501. The House bill, but not the Senate amendment, 
provides that after the reorganization, the Holding Company 
shall not sell, pledge, or otherwise transfer any outstanding 
shares of the Association, or cause the Association to 
liquidate or file bankruptcy, without the approval of the 
Secretary of the Treasury and the Secretary of Education.
      The House recedes.
      502. The House bill, but not the Senate amendment, limits 
the period for winding down the GSE activities of the 
Association to September 30, 2009. The Association may 
determine to cease its activities and dissolve prior to 
September 30, 2009, unless the Secretary of Education 
determines that the Association continues to be needed as a 
leader of last resort or continues to be needed to purchase 
loans in furtherance of an agreement under section 440(a)(6).
      The House recedes.
      503. The House bill, but not the Senate amendment, 
requires at the end of the period all of the Association's 
outstanding debt obligations to be transferred to a trust that 
will satisfy all payment obligations on the remaining debt 
issues which will retain the attributes accorded them by the 
Association's statutory charter. The Association must deposit 
certain qualifying assets into the trust. The assets are to be 
transferred irrevocably, solely for the benefit of the holders 
of the Association's debt obligations, and in such amount as is 
determined by the Secretary of the Treasury to be sufficient to 
pay the principal and interest on the outstanding debt 
obligations according to their terms. To the extent that the 
Association cannot provide qualifying assets in the amount 
required, the Holding Company shall be required to transfer 
such assets in an amount necessary to prevent any deficiency.
      The House recedes.
      504. The House bill, but not the Senate amendment, 
requires the trust to transfer any remaining assets to either 
the Holding Company or its subsidiaries as directed by the 
Holding Company.
      The House recedes.
      505. The House bill, but not the Senate amendment, 
requires that after funding the trust and prior to dissolution, 
the Association must take whatever actions are necessary to 
discharge all other obligations of the Association, including 
the repurchase or redemption of the Association's preferred 
stock. Any such obligations that cannot be fully satisfied 
shall become liabilities of the Holding Company as of the date 
of dissolution.
      The House recedes.
      506. The House bill, but not the Senate amendment, 
requires that to the extent that any assets remain in the 
Association following the foregoing procedures, such assets 
shall be transferred to the Holding Company.
      The House recedes.
      507. The House bill, but not the Senate amendment, 
specifies that the number and composition of the Board of 
Directors of the Holding Company shall be as set forth in the 
Holding Company's charter or bylaws and as permissible under 
the laws of the jurisdiction of its incorporation.
      The House recedes.
      508. The House bill, but not the Senate amendment, 
specifically prohibits the use of the name ``Student Loan 
Marketing Association'' and allows the use of ``Sallie Mae'' to 
the extent permitted by the applicable State or DC law.
      The House recedes.
      509. The House bill, but not the Senate amendment, 
specifically permits the Association to assign to the Holding 
Company or any of its other subsidiaries the name ``Sallie 
Mae,'' to be used as a trademark or service mark. The bill 
includes a fee of $5 million in 1996 for the right to assign 
the name.
      The House recedes.
      510. The House bill, but not the Senate amendment, 
requires certain disclosures to be made during the period 
commencing after the reorganization and ending three years 
after the dissolution of the Association.
      The House recedes.
      511. The House bill, but not the Senate amendment, makes 
clear that, except as explicitly provided, the section is not 
intended to limit the authority of the Association to act as a 
federally chartered GSE or the authority of the Holding Company 
to take any actions that are lawful for a State-chartered 
corporation.
      The House recedes.
      512. The House bill, but not the Senate amendment, grants 
authority to the Attorney General, upon request of the 
Secretary of Education or the Secretary of the Treasury, to 
enforce the provisions of new Section 440, by action brought in 
the United States District Court for the District of Columbia.
      The House recedes.
      513. The House bill, but not the Senate amendment, sets a 
deadline of 18 months after the effective date of the section 
for the occurrence of the reorganization pursuant to which 
Sallie Mae's outstanding common stock will be converted to 
common stock of the Holding Company. If the reorganization has 
not taken place by 18 months after the effective date of 
section 440, this subsection provides that the section shall be 
of no further force and effect.
      The House recedes.
      514. The House bill, but not the Senate amendment, sets 
forth the defined terms used throughout section 440.
      The House recedes.
      515. The House bill, but not the Senate amendment, sets 
forth technical amendments to the Higher Education Act.
      The House recedes.
      516. The House bill, but not the Senate amendment, 
permits the Holding Company and any of its subsidiaries to be 
eligible lenders under the Higher Education Act for secondary 
market purposes.
      The House recedes.
      517. The House bill, but not the Senate amendment, 
supplements existing safety and soundness requirements 
applicable to the Association by amending Section 439(r) of the 
Higher Education Act to authorize the Attorney General, upon 
request of the Secretary of Education or the Secretary of the 
Treasury to enforce such requirements in an action before the 
United States District Court for the District of Columbia.
      The House recedes.
      518. The House bill, but not the Senate amendment, amends 
the safety and soundness requirements set forth in Section 
439(r). The subsection supplements the reports provided by the 
Association in support of its safety and soundness requirements 
by requiring the Association to provide to the Secretary of the 
Treasury, within 45 days of the end of each calendar quarter, 
financial statements and quarterly reports setting forth the 
calculation of the Association's capital ratio. The subsection 
also amends the safety and soundness provisions relating to the 
Association's capital ratio by providing new capital 
requirements applicable to the Association after January 1, 
2000, if the Association's shareholders have approved the 
reorganization. At such time, the Association will be required 
to maintain a capital ratio of 2.25 percent for any quarter. If 
the Association fails to maintain such ratio, the Secretary of 
the Treasury may take certain specified actions to limit 
increases in the Association's liabilities, restrict growth in 
the Association's assets (other than student loan purchases and 
warehousing advances), restrict capital distributions by the 
Association, require that the Association issue new capital 
sufficient to restore the capital ratio to the required 2.25 
percent, and limit certain increases in the executive 
compensation paid by the Association. However, if the 
Association's capital ratio for any quarter falls below 2.25 
percent, but is equal to or in excess of 2 percent, the 
Secretary must defer taking such actions until the next quarter 
and then may proceed with such actions only if the capital 
ratio remains below 2.25 percent. Further, the Association is 
deemed to be in compliance with its capital ratio requirements 
if it is rated by two nationally recognized statistical rating 
organizations, without regard to its status as a federally 
chartered corporation, in one of the two highest full rating 
categories.
      The House recedes.
      519. The House bill, but not the Senate amendment, 
provides that upon the dissolution of the Association and the 
creation of the trust pursuant to new section 440(d), both the 
Association's Federal charter and section 439, shall be 
repealed.
      The House recedes.
      520. The House bill, but not the Senate amendment, 
privatizes the College Construction Loan Insurance Association 
(``Connie Lee,'' or ``the Corporation'').
      The Senate recedes with an amendment repealing the 
authorizing legislation which created Connie Lee. The Secretary 
of the Treasury is required to sell the Connie Lee stock owned 
by the Secretary of Education within 6 months of the date of 
enactment of this legislation ensuring the total privatization 
of Connie Lee. Connie Lee will no longer have a Federal charter 
or any ties to the Federal Government.
      521. The House bill, but not the Senate amendment, 
repeals Federal restrictions on Connie Lee's activities.
      The House recedes.
      522. The House bill, but not the Senate amendment, 
restricts stock ownership in the Corporation for government 
agencies, government corporations, and government sponsored 
enterprises, including Sallie Mae. Specifically, Sallie Mae may 
continue to own stock held as of the day of enactment, but may 
not acquire new stock in the Corporation until such time as 
Sallie Mae is privatized.
      The House recedes.
      523. The House bill, but not the Senate amendment, 
prohibits Sallie Mae from controlling the operations of the 
Corporation, but allows it to retain its current representation 
on the board of the Corporation. The House bill further 
prevents Sallie Mae from providing financial support or 
guarantees to the Corporation.
      The House recedes.
      524. The House bill, but not the Senate amendment, 
requires that, for a five year period following enactment, the 
Corporation shall disclose that it is not a government 
sponsored corporation or instrumentality.
      The House recedes.
      525. The House bill, but not the Senate amendment, 
prohibits the Corporation from using the name College 
Construction Loan Insurance Association.
      The House recedes.
      526. The House bill, but not the Senate amendment, 
requires certain amendments to the Corporation's Articles of 
Incorporation.
      The House recedes.
      527. The House bill, but not the Senate amendment, places 
certain reporting requirements on the Corporation for a period 
of two years.
      The House recedes.
      528. The House bill, but not the Senate amendment, 
requires the Secretary of the Treasury to sell the federally 
held stock in the Corporation within six months of the date of 
enactment.
      The House recedes.
      529. The House bill, but not the Senate amendment, 
requires that, in the event that the Secretary of the Treasury 
cannot sell the federally held stock to another entity, the 
Corporation must repurchase the stock at a price not to exceed 
the value estimated by the Congressional Budget Office.
      The House recedes.
Museums and library services
      530. The House bill consolidates the Federal library 
programs under the Library Services and Construction Act, the 
Elementary and Secondary Education Act, and Title II of the 
Higher Education Act into one Federal libraries program focused 
on helping libraries acquire and use new technologies and 
forging electronic ties among libraries and between libraries 
and one-stop career centers.
      The Senate amendment creates a new Institute of Museums 
and Library Services, and consolidates into it the functions of 
the Institute of Museum Services (IMS), along with Federal 
library programs under the Library Services and Construction 
Act and Title II of the Higher Education Act. Focuses of the 
Senate amendment include technology, life-long learning, and 
information access for those needing special services.
      Legislative counsel.
      531. The House bill authorizes $110 million for each of 
fiscal years 1997, 1998, 1999, 2000, 2001, and 2002 for library 
technology programs under this act. The House bill further 
authorizes the forward funding of these programs.
      The House and Senate recede with an amendment authorizing 
$150 million for fiscal year 1997 and such sums for fiscal year 
1998 through fiscal year 2002. The amendment provides for 
forward funding and an additional authorization of 
appropriations to effect a timely transition to the new 
authorization. Additional amounts as may be necessary are 
authorized to be appropriated for the fiscal year prior to the 
first year in which appropriations are made under the forward 
funding procedure.
      531a. The Senate amendment authorizes $75 million for 
Fiscal Year 1996 and such sums as necessary for fiscal years 
1997-2000 for library technology programs.
      The Senate recedes.
      531b. The Senate amendment, but not the House bill, 
authorizes $75 million for Fiscal Year 1996 and such sums as 
necessary for fiscal years 1997-2000 to provide library 
services to special populations.
      The Senate recedes.
      531bb. The Senate amendment, but not the House bill, 
allows for the transfer of funds between the Secretary of 
Education and the Director of Museum Services.
      The House recedes.
      531c. The Senate amendment, but not the House bill, 
provides that no less than 5% nor more than 7% of library funds 
be used for joint projects with museums.
      The Senate recedes.
      531d. The Senate amendment, but not the House bill, 
allows not more than 10% of funds appropriated for library 
services under this Act to be spent for Federal administration.
      The House recedes with an amendment limiting 
administrative funds to 3 percent.
      531e. The Senate amendment, but not the House bill, 
authorizes $28,700,000 for FY1996, and such sums as necessary 
for Fiscal Years 1997-2000 for museum services under this Act.
      The House recedes with an amendment authorizing 
$28,700,000 for fiscal year 1997, and such sums as may be 
necessary for fiscal year 1998 through fiscal year 2002.
      531f. The Senate amendment, but not the House bill, 
allows not more than 10% of funds appropriated for museum 
services to be used for administrative expenses.
      The House recedes.
      531g. The Senate amendment, but not the House bill, 
provides that not less than 5% nor more than 7% of appropriated 
museum funding be used for joint projects with libraries.
      The Senate recedes.
      531h. The Senate amendment, but not the House bill, 
mandates that funds made available for museum services under 
this Act shall remain available until expended.
      The House recedes.
      531i. The Senate amendment, but not the House bill, 
authorizes such sums as necessary for the Arts and Artifacts 
Indemnity Act.
      The Senate recedes.
      532. The Senate amendment, but not the House bill, amends 
the Museum Services Act.
      The House recedes.
      533. The Senate amendment, but not the House bill, 
includes certain definitions.
      The House recedes.
      534. The Senate amendment, but not the House bill, 
establishes an Institute of Museum and Library Services.
      The House recedes.
      535. The Senate amendment, but not the House bill, 
provides for the appointment of a Director of the Institute of 
Museum and Library Services by the President with the advice 
and consent of the Senate. The Senate amendment further 
provides that the Director will serve for a term of 4 years, 
and that the appointment will alternate between individuals 
with expertise in library and museum services.
      The House recedes.
      536. The Senate amendment, but not the House bill, 
provides for the appointment by the Director of Deputy 
Directors for the offices of Library Services and Museum 
Services.
      The House recedes with an amendment striking paragraph 
(b).
      537. The Senate amendment, but not the House bill, 
provides for the staffing of the Institute by the Director.
      The House recedes.
      538. The Senate amendment, but not the House bill, 
provides the Director with the authority to accept or solicit 
gifts and bequests on behalf of the Institute.
      The House recedes.
      539. The Senate amendment, but not the House bill, sets 
forth purposes for funding of museum services under this 
subtitle.
      The House recedes.
      540. The Senate amendment, but not the House bill, sets 
forth definitions for this subtitle.
      The House recedes with an amendment providing a 
definition of ``State'' for this subtitle to mean, in addition 
to the several States of the Union, the Commonwealth of Puerto 
Rico, the District of Columbia, Guam, American Samoa, the 
Northern Mariana Islands, the Virgin Islands, the Federated 
States of Micronesia, the Republic of the Marshall Islands, and 
the Republic of Palau.
      541. The Senate amendment, but not the House bill, 
empowers the Director of the Institute to award grants for 
Museum improvements, and outlines purposes for which the grants 
may be used.
      The House recedes with an amendment adding model programs 
demonstrating cooperative efforts between libraries and museums 
to the list of museum services activities.
      541a. The Senate amendment, but not the House bill, 
allows the Director to enter into contract or cooperative 
agreements for the improvement of museums.
      The House recedes.
      541b. The Senate amendment, but not the House bill, 
limits the Federal share of activities funded under this 
section.
      The House recedes.
      541c. The Senate amendment, but not the House bill, 
requires the Director to develop procedures for reviewing 
assistance made under this Section.
      The House recedes.
      542. The Senate amendment, but not the House bill, 
provides for an assessment of collaborative efforts that 
museums can engage in to serve the public more effectively, 
applicable only in years when appropriations for museum 
services exceed $28.7 million.
      The Senate recedes.
      543. The Senate amendment, but not the House bill, allows 
the Director to annually award a national award for museum 
services to outstanding museums for significant contributions 
in service to the community.
      The House recedes.
      544. The Senate amendment, but not the House bill, 
establishes a National Museum Service Board appointed by the 
President with advice and consent of the Senate.
      The House recedes.
      544a. The Senate amendment, but not the House bill, sets 
forth qualifications for appointment to the Board.
      The House recedes.
      544b. The Senate amendment, but not the House bill, 
provides for 5 year staggered terms for members of the board.
      The House recedes.
      544c. The Senate amendment, but not the House bill, sets 
forth the powers and duties of the board. The Senate amendment 
further outlines the structure and general operating rules of 
the Board.
      The House recedes.
      545. The Senate amendment, but not the House bill, amends 
the National Commission on Libraries and Information Science 
Act to provide the commission with the responsibility of 
advising the Director of the Institute of Museum and Library 
Services on matters relating to library services. The Senate 
amendment further outlines procedures for advising the Director 
and modifies membership and membership criteria for the 
commission.
      The House recedes.
      546. The Senate amendment, but not the House bill, 
provides for the orderly transition of functions from the 
Institute of Museum Services (IMS) to the Institute of Museum 
and Library Services.
      The House recedes with an amendment transferring all 
functions formerly exercised by the Director of Library 
Programs in the Department of Education's Office of Education 
Research and Improvements to the Institute.
      547. The Senate amendment, but not the House bill, 
provides an authorization for the Arts and Artifacts Indemnity 
Act.
      The Senate recedes.
      547a. The Senate amendment, but not the House bill, 
transfers authority for indemnity agreements to the Director of 
the IMLS from the Federal Council on the Arts and the 
Humanities.
      The Senate recedes.
      547b. The Senate amendment, but not the House bill, 
retains the definition of eligible items from current law.
      The Senate recedes.
      547c. The Senate amendment, but not the House bill, 
expands coverage under the Act to domestic exhibits on display 
within the U.S.
      The Senate recedes.
      547d. The Senate amendment, but not the House bill, 
retains the applications procedure from current law.
      The Senate recedes.
      547e. The Senate amendment, but not the House bill, 
retains the terms under which indemnity agreements are made 
from current law.
      The Senate recedes.
      547f. The Senate amendment, but not the House bill, makes 
conforming amendments to current law with respect to the 
authority of the Director to issue regulations and certify 
claims.
      The Senate recedes.
      547g. The Senate amendment, but not the House bill, 
retains reporting requirements from current law.
      The Senate recedes.
      548. The Senate amendment, but not the House bill, 
provides for a short title.
      The House recedes.
      549. Both the House bill and the Senate amendment provide 
for purposes.
      The House and Senate recede with an amendment stating the 
purpose of this subtitle.
      549a. The purposes of the House bill are limited to the 
consolidation of library programs, providing access through new 
technology and providing electronic linkages among libraries 
and between libraries and integrated career center systems. The 
House bill contains no recognition of need.
      The House recedes.
      549b. The purposes of the Senate amendment include an 
emphasis on life-long access to learning and library 
information resources as well as preparing libraries for 
service in the 21st Century in the areas of access to 
electronic networks, workforce and economic development, and 
adequate provision of resources and services to special 
populations.
      The Senate recedes.
      550. Both the House bill and the Senate amendment provide 
definitions relative to library services. However, definitions 
in the House bill are in title I of the House bill.
      The House recedes.
      550a. The Senate amendment includes definitions of 
``library consortia,'' ``library entity,'' and ``public 
library.'' The House bill includes a definition of ``library'' 
in the general definitions section. (See Note 50.)
      The House and Senate recede with an amendment retaining 
the definitions of ``library consortia'' and ``State''; 
striking the definition of ``library entity'' and ``State 
advisory council,'' and modifying the definition of 
``library''.
      550b. Both the House bill and the Senate amendment 
include a definition of ``State library administrative 
agency''. The Senate amendment also includes a definition of 
``State Plan''. (See Note 80.)
      The Senate recedes on the definition of ``STATE LIBRARY 
ADMINISTRATIVE AGENCY'' and the House recedes on the definition 
of ``STATE PLAN''.
      551. The Senate amendment, but not the House bill, 
reserves 1\1/2\% of funds appropriated for serving Indian 
Tribes. In the House bill, Indian Tribes may use funds allotted 
under section 325 for library services.
      The House recedes.
      551a. The Senate amendment, but not the House bill, 
reserves 8% of allotted funds for a national leadership program 
in library services.
      The House recedes with an amendment reserving 4 percent 
of allotted funds for ``National Leadership Grants'', and 
specifying that if these funds have not been obligated by the 
end of the fiscal year in which they are reserved, that they 
shall be reobligated in the next fiscal year to the States as 
part of the States' formula grant. The House amendment further 
stipulates that States may carryover unobligated funds for use 
in the next fiscal year.
      552. Both the House bill and the Senate amendment provide 
for minimum State allotments. However, the House bill does not 
provide funding for the Freely Associated States.
      The House recedes with an amendment providing that funds 
allotted to the ``Freely Associated States'' be reserved for 
competitive grants to all outlying areas based on the 
recommendations by the Pacific Region Educational Lab to the 
Director, limits the Pacific Regional Education Laboratory to 
using no more than 5 percent of these funds for administrative 
purposes, and specifies that eligibility for assistance under 
this Act for the Republic of the Marshall Islands, the 
Federated States of Micronesia, and the Republic of Palau shall 
terminate as of September 30, 2001.
      552aa. The House bill and the Senate amendment both 
provide allotments.
      The House recedes with an amendment authorizing the State 
minimum allotment at $340,000.
      552a. Both the House bill and the Senate amendment 
provide for the ratable reduction of funds should 
appropriations be insufficient.
      Legislative counsel.
      552b. Both the House bill and the Senate amendment allot 
remaining funds based on State populations.
      Legislative counsel.
      553. The House bill, but not the Senate amendment, 
requires the Secretary to make grants to States that will meet 
minimum requirements such as submitting an approved 
application, providing 100% of the amount of the grant to the 
State library administrative agency, and requiring that agency 
to use the allocated funds to carry out activities described in 
the application. The House bill further provides that such 
grant will be the lesser of the sum of the initial allotment 
and the additional allotment or 75% of the total cost of the 
activities described in the application.
      The House recedes.
      554. Both the House bill and the Senate amendment limit 
administrative funding at the State level. The Senate amendment 
limits this amount to not more than 5%. The House bill limits 
State administrative funding to 3% elsewhere in this Subtitle.
      The Senate recedes with an amendment allowing States to 
use no more than 4 percent of funds allotted for administrative 
purposes.
      555. The Senate amendment establishes the Federal share 
for programs under this subtitle and sets forth maintenance of 
effort provisions. The House bill establishes the Federal share 
for programs under this subtitle, but does not require 
maintenance of effort.
      The House recedes.
      555a. The Senate amendment sets the Federal share for 
State projects at 50% with higher Federal shares for the Trust 
Territories, and defines non-Federal share. The House bill sets 
the Federal share for State projects at 75%, and makes no 
distinction for the Trust Territories.
      The House recedes with an amendment setting the Federal 
share for the States and Trust Territories at 66 percent.
      555b. The Senate amendment, but not the House bill, 
reduces a State's allocation if the State fails to maintain its 
funding level for library services. The reduction in Federal 
allocation is in proportion to the reduction in State effort.
      The House recedes with an amendment clarifying that 
States may reduce their maintenance-of-effort in proportion to 
any Federal reduction without being penalized.
      555c. The Senate amendment, but not the House bill, 
provides a waiver for reductions in a State's allocation under 
this subsection if the reduction in State efforts is due to 
certain uncontrollable circumstances.
      The House recedes.
      556. The House bill requires that each State seeking a 
grant under this subtitle submit an annual application 
establishing goals and priorities consistent with the purposes 
of this subtitle describing activities and procedures to reach 
these goals, describing methodologies for evaluation, 
describing procedures to involve libraries and their areas in 
policy decisions to implement this subtitle, and assuring that 
reporting practices required by the Secretary will be 
implemented. The Senate amendment requires States to provide 
similar information as part of the State plan, which covers a 
period of 5 years.
      The Senate recedes with an amendment providing that 
States submit a plan covering a 5 year period.
      556a. The House bill requires the Secretary to approve 
each application which meets the requirements outlined in Note 
556. The House bill further provides States with an opportunity 
to revise their applications, should they fail to be approved. 
The Senate amendment requires the Director to approve a State 
plan if it meets the purposes of this subtitle. The Senate 
amendment further provides that if a State plan is not 
approved, the State will have an opportunity to revise its 
plan, that the Director will provide the State with technical 
assistance and that the State library administrative agency 
will have the opportunity for a hearing.
      The House recedes.
      557. The House bill, but not the Senate amendment, 
requires that State library administrative agencies use at 
least 97% of funds provided under this subtitle for 
electronically connecting libraries to integrated career center 
systems, establishing or enhancing linkages among libraries, 
assisting libraries to access information through electronic 
networks, encouraging the formation of library consortia, 
helping libraries acquire and share new technologies, and 
improving library services for individuals with special needs. 
The Senate amendment does require that State library 
administrative agencies follow their State plan.
      The Senate recedes with an amendment requiring State 
agencies to expend at least 96 percent of funds received under 
this subtitle to establish or enhance linkages among or between 
libraries, library consortia, one-stop career centers, and 
local service providers, or any combination thereof, and to 
target library and information services to persons having 
difficulty using a library and underserved urban and rural 
communities, including children from families living below the 
official income poverty line. Each State agency may apportion 
funds between these purposes, as appropriate, to meet the needs 
of the individual State.
      The Managers note that these purposes are not mutually 
exclusive, and that enhancing electronic resources may also 
meet the needs of disadvantaged persons.
      557a. The House bill limits the amount of each State's 
allotment used for administrative expenses by the State library 
administrative agency to no more than 3%. The Senate amendment 
limits this amount to 5%. (See Note 554.)
      The House recedes.
      558. The Senate amendment, but not the House bill, 
creates a separate program to provide library services for 
special populations. However, the House bill does make the 
improvement of library services for special populations an 
allowable use of funds at the discretion of the State library 
administrative agency.
      The Senate recedes.
      559. The Senate amendment, but not the House bill, 
requires State library administrative agencies to reserve up to 
15% of their Federal funds to serve children in poverty. In 
determining this amount, the State agency shall set aside up to 
$1.50 per preschool child from families below the poverty 
level, and up to $1.00 per school aged child from families 
living below the poverty levels.
      The Senate recedes.
      559a. Of the amount reserved for children in poverty, the 
Senate amendment, but not the House bill, requires that each 
library in the State receive a share equal to its share of such 
children.
      The Senate recedes.
      559b. The Senate amendment, but not the House bill, 
allows for the aggregation of funds set aside to serve children 
in poverty, should an individual library's grant be too small 
to be effective. The Senate amendment further prescribes 
conditions under which such funds can be aggregated.
      The Senate recedes.
      559c. The Senate amendment, but not the House bill, 
requires that public libraries seeking grants to serve children 
in poverty submit a plan for how those children will be served.
      The Senate recedes.
      560. The Senate amendment, but not the House bill, sets 
forth specific criteria under which States must evaluate 
activities undertaken in accordance with the library technology 
and library services provisions of the Senate amendment.
      The Senate recedes with an amendment moving evaluations 
to State plan. (See Note 556)
      561. The Senate amendment, but not the House bill, 
requires that States receiving assistance under this subtitle 
establish a State advisory council. The Senate amendment 
further sets forth guidelines for the composition and duties of 
these councils.
      The House recedes with an amendment providing that a 
State may establish a State advisory council which is broadly 
representative of the library entities within the State.
      562. The Senate amendment, but not the House bill, 
provides for grants for library services for Indian Tribes. The 
Senate amendment further specifies the purposes for which these 
grants can be used, requirements as to who may administer these 
funds, and maintenance of effort requirements.
      The Senate recedes with an amendment to conform Indian 
provisions with the rest of the Act.
      562a. The Senate amendment, but not the House bill, 
prescribes the procedure for applying for grants under this 
section.
      The Senate recedes.
      563. The Senate amendment, but not the House bill, 
establishes a national leadership program for library services, 
and sets forth activities for which such funds may be used.
      The House recedes with an amendment providing for 
``National Leadership Grants'' to enhance the quality of 
library services nationwide and to provide coordination with 
museums.
      563a. The Senate amendment, but not the House bill, sets 
forth criteria under which the director may award leadership 
grants, including that awards be made on a competitive basis.
      The Senate recedes.
      564. The Senate amendment, but not the House bill, 
specifies that nothing in this subtitle shall be construed to 
interfere with State or local initiatives.
      The House recedes.
      565. The House bill repeals the Library Services and 
Construction Act, Title II of the Higher Education Act, and 
Part F of the Technology for Education Act.
      The Senate recedes.
      565a. The Senate amendment repeals the Library Services 
and Construction Act and Title II of the Higher Education Act, 
but not Part F of the Technology for Education Act.
      The Senate recedes.
      565b. Both the House bill and the Senate amendment make 
technical and conforming amendments to reflect these repeals.
      Legislative counsel.
                                   Bill Goodling,
                                   Steve Gunderson,
                                   Randy ``Duke'' Cunningham,
                                   Howard P. ``Buck'' McKeon,
                                   Frank D. Riggs,
                                   Lindsay Graham,
                                   Mark Souder,
                                 Managers on the Part of the House.

                                   Nancy Landon Kassebaum,
                                   Jim Jeffords,
                                   Dan Coats,
                                   Judd Gregg,
                                   Bill Frist,
                                   Mike DeWine,
                                   John Ashcroft,
                                   Spencer Abraham,
                                   Slade Gorton,
                                Managers on the Part of the Senate.