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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-93
_______________________________________________________________________


 
       EMPLOYMENT, TRAINING, AND LITERACY ENHANCEMENT ACT OF 1997


                               ----------                              

                              R E P O R T

                                 of the

                              COMMITTEE ON
                      EDUCATION AND THE WORKFORCE
                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 1385

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]




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



       EMPLOYMENT, TRAINING, AND LITERACY ENHANCEMENT ACT OF 1997



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-93
_______________________________________________________________________


       EMPLOYMENT, TRAINING, AND LITERACY ENHANCEMENT ACT OF 1997


                               __________

                              R E P O R T

                                 of the

                              COMMITTEE ON

                      EDUCATION AND THE WORKFORCE

                        HOUSE OF REPRESENTATIVES

                                   on

                               H.R. 1385

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]




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


105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-93
_______________________________________________________________________


       EMPLOYMENT, TRAINING, AND LITERACY ENHANCEMENT ACT OF 1997

                                _______
                                

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

_______________________________________________________________________


   Mr. Goodling, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                        [To accompany H.R. 1385]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 1385) to consolidate, coordinate, and 
improve employment, training, literacy, and vocational 
rehabilitation programs in the United States, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Employment, Training, and Literacy 
Enhancement Act of 1997''.

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

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

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

        DIVISION A--EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS

   TITLE I--AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM REQUIREMENTS

                     Subtitle A--General Provisions

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

         Subtitle B--State and Local Administrative Provisions

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

               Subtitle C--Program and Fiscal Provisions

                     Chapter 1--General Provisions

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

            Chapter 2--Performance Accountability Provisions

Sec. 131. Performance accountability provisions.

                      Chapter 3--Other Provisions

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

                  Subtitle D--Miscellaneous Provisions

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

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

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

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

Sec. 301. Adult employment and training opportunities grants.

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

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

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

                         Subtitle B--Job Corps

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

                    Subtitle C--National Activities

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

                         Subtitle D--Repealers

Sec. 451. Repealers.

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

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

                   TITLE VI--MISCELLANEOUS PROVISIONS

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

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

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

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

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

             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

       Subtitle A--Amendments to the Job Training Partnership Act

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

                  Subtitle B--Amendments to Other Acts

Sec. 911. Amendments to other Acts.

           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

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

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

              TITLE XXI--AMENDMENTS TO GENERAL PROVISIONS

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

      TITLE XXII--AMENDMENTS TO VOCATIONAL REHABILITATION SERVICES

                     Subtitle A--General Provisions

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

          Subtitle B--Basic Vocational Rehabilitation Services

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

            TITLE XXIII--AMENDMENTS TO RESEARCH AND TRAINING

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

     TITLE XXIV--AMENDMENTS TO TRAINING AND DEMONSTRATION PROJECTS

  Subtitle A--Training Programs and Community Rehabilitation Programs

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

        Subtitle B--Special Projects and Supplementary Services

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

        TITLE XXV--AMENDMENTS TO NATIONAL COUNCIL ON DISABILITY

Sec. 2251. Authorization of appropriations.

             TITLE XXVI--AMENDMENTS TO RIGHTS AND ADVOCACY

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

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

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

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

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

 TITLE XXIX--AMENDMENTS TO SPECIAL DEMONSTRATIONS AND TRAINING PROJECTS

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

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

Sec. 2295. Authorization of appropriations.

                       TITLE XXXI--EFFECTIVE DATE

Sec. 2297. Effective date.

        DIVISION A--EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS

   TITLE I--AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM REQUIREMENTS

                     Subtitle A--General Provisions

SEC. 101. STATEMENT OF PURPOSE.

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

``SEC. 2. STATEMENT OF PURPOSE.

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

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 103. DEFINITIONS.

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

         Subtitle B--State and Local Administrative Provisions

SEC. 111. STATE ADMINISTRATIVE PROVISIONS.

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

               ``PART A--STATE ADMINISTRATIVE PROVISIONS

``SEC. 101. STATE PLAN.

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

``SEC. 102. COLLABORATIVE PROCESS.

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

SEC. 112. LOCAL ADMINISTRATIVE PROVISIONS.

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

``SEC. 121. LOCAL WORKFORCE DEVELOPMENT AREAS.

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

``SEC. 122. LOCAL WORKFORCE DEVELOPMENT BOARDS.

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

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

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

``SEC. 124. IDENTIFICATION OF TRAINING PROVIDERS.

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

               Subtitle C--Program and Fiscal Provisions

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 121. GENERAL PROGRAM REQUIREMENTS.

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

SEC. 122. BENEFITS.

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

SEC. 123. LABOR STANDARDS.

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

``SEC. 143. LABOR STANDARDS.

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

SEC. 124. GRIEVANCE PROCEDURE.

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

``SEC. 144. GRIEVANCE PROCEDURE.

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

SEC. 125. IDENTIFICATION OF ADDITIONAL IMPOSED REQUIREMENTS.

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

SEC. 126. AUTHORITY OF STATE LEGISLATURE.

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

SEC. 127. INTERSTATE AGREEMENTS.

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

            CHAPTER 2--PERFORMANCE ACCOUNTABILITY PROVISIONS

SEC. 131. PERFORMANCE ACCOUNTABILITY PROVISIONS.

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

``SEC. 151. PERFORMANCE ACCOUNTABILITY SYSTEM.

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

``SEC. 152. INDICATORS OF PERFORMANCE.

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

``SEC. 153. STATE ADJUSTED BENCHMARKS.

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

``SEC. 154. CORE INDICATORS OF PERFORMANCE.

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

``SEC. 155. REPORT ON PERFORMANCE.

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

``SEC. 156. INCENTIVE GRANTS AND SANCTIONS.

  ``(a) Incentive Grants.--
          ``(1) Award of grants.--From amounts made available under 
        section 452 and section 502 for any fiscal year, the 
        appropriate Secretary may award incentive grants to States 
        that--
                  ``(A) exceed, during the most recent 12-month period 
                for which data are available, the adjusted State 
                benchmarks described under section 153(a);
                  ``(B) demonstrate continuing progress toward 
                exceeding, during the 3-year period covered by the 
                State plan submitted under section 101, the adjusted 
                State benchmarks described under section 153(a); or
                  ``(C) demonstrate significant progress in the 
                coordination and integration of employment, training, 
                literacy, and other human resource and workforce 
                preparation programs within the State, and demonstrate 
                high performance in such programs.
          ``(2) Technical assistance.--The Secretary, upon request, 
        shall provide technical assistance to any State that does not 
        qualify for receipt of an incentive grant under paragraph (1).
          ``(3) Use of funds.--A State that receives an incentive grant 
        under paragraph (1) may use funds made available under such 
        grant only to carry out employment, training, or literacy 
        activities.
  ``(b) Sanctions.--
          ``(1) States.--
                  ``(A) Technical assistance.--If a State fails to meet 
                expected levels of performance for a program for any 
                program year as established pursuant to section 153(a), 
                the Secretary of Labor for programs established under 
                title II and title III, or the Secretary of Education 
                for programs established under the Adult Education and 
                Family Literacy Act, shall, upon request, provide 
                technical assistance, including assistance in the 
                development of a performance improvement plan.
                  ``(B) Reduction in amount of grant.--If such failure 
                continues for a second consecutive year, the 
                appropriate Secretary may reduce by not more than 5 
                percent, the amount of the grant that would (in the 
                absence of this paragraph) be payable to the State 
                under such program for the immediately succeeding 
                program year. Such penalty shall be based on the degree 
                of failure to meet adjusted levels of performance.
          ``(2) Local areas.--
                  ``(A) Technical assistance.--If a local workforce 
                development area, or other applicable local 
                administrative entity, fails to meet expected levels of 
                performance for a program for any program year under 
                section 153(b), the Governor, upon request to the 
                Secretary, shall provide technical assistance, 
                including the development of a performance improvement 
                plan.
                  ``(B) Corrective actions.--
                          ``(i) In general.--If such failure continues 
                        for a second consecutive year, the Governor 
                        shall take corrective actions, which may 
                        include development of a reorganization plan 
                        through which the Governor may require the 
                        appointment of a new local board (consistent 
                        with the criteria established under section 
                        122(b)), prohibit the use of designated service 
                        providers, require the redesignation of a local 
                        administrative entity (in such case chosen 
                        jointly by the Governor and the chief elected 
                        official in the local workforce development 
                        area), or such other actions as the Governor 
                        determines are appropriate, consistent with 
                        State law, and the requirements of this 
                        subparagraph.
                          ``(ii) Appeal by workforce development 
                        area.--A workforce development area that is 
                        subject to a reorganization plan under clause 
                        (i) may, not later than 30 days after receiving 
                        notice thereof, appeal to theSecretary to 
rescind or revise such plan. In such case, the Secretary shall make a 
final decision not later than 45 days after the receipt of the appeal.
                          ``(iii) Effective date.--The actions taken by 
                        the Governor under clause (i) shall not become 
                        effective until the time the appeal has expired 
                        (consistent with clause (ii)), or the Secretary 
                        has issued a final decision.''.

                      CHAPTER 3--OTHER PROVISIONS

SEC. 141. PROMPT ALLOCATION OF FUNDS.

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

SEC. 142. FISCAL CONTROLS; SANCTIONS.

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

SEC. 143. REPORTS; RECORDKEEPING; INVESTIGATIONS.

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

SEC. 144. ADMINISTRATIVE ADJUDICATION.

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

SEC. 145. NONDISCRIMINATION.

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

``SEC. 167. NONDISCRIMINATION.

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

SEC. 146. JUDICIAL REVIEW.

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

SEC. 147. ADMINISTRATIVE PROVISIONS.

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

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

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

SEC. 149. CONSTRUCTION.

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

SEC. 150. LIMITATION ON CERTAIN COSTS.

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

``SEC. 172. LIMITATION ON CERTAIN COSTS.

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

                  Subtitle D--Miscellaneous Provisions

SEC. 161. CRIMINAL PROVISIONS.

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

SEC. 162. REFERENCE.

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

``SEC. 183. REFERENCE.

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

SEC. 163. REPEALERS.

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

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

SEC. 201. ADULT TRAINING PROGRAM.

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

SEC. 202. SUMMER YOUTH EMPLOYMENT AND TRAINING PROGRAM.

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

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

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

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

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

``SEC. 202. AUTHORIZATION.

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

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

                  (B) by striking subsections (b) and (c);
                  (C) by redesignating subsections (a) and (d) as 
                subsections (b) and (c), respectively;
                  (D) by inserting before subsection (b) (as 
                redesignated) the following:
  ``(a) In General.--Of the amount appropriated pursuant to section 
3(a)(1) to carry out this title for a fiscal year, the Secretary shall 
allot such amount in accordance with subsection (b).'';
                  (E) in subsection (b) (as redesignated)--
                          (i) in the heading to read as follows:
  ``(b) Allotment Among States.--'';
                          (ii) in paragraph (1) to read as follows:
          ``(1) Outlying areas.--
                  ``(A) In general.--From the amount appropriated for 
                any fiscal year to carry out this title, the Secretary 
                shall reserve not more than one quarter of one percent 
                to provide assistance to--
                          ``(i) the outlying areas; and
                          ``(ii) for each of the fiscal years 1998 
                        through 2001, to carry out the competition 
                        described in subparagraph (B), except that the 
                        amount reserved to carry out such subparagraph 
                        for any such fiscal year shall not exceed the 
                        amount reserved for the freely associated 
                        states for fiscal year 1997, from amounts 
                        reserved under section 262(a)(1) of the Job 
                        Training Partnership Act (29 U.S.C. 1642(a)(1)) 
                        (as such section was in effect on the day 
                        before the date of the enactment of Employment, 
                        Training, and Literacy Enhancement Act of 
                        1997).
                  ``(B) Limitation for freely associated states.--
                          ``(i) Competitive grants.--The Secretary 
                        shall use funds described in subparagraph 
                        (A)(ii) to award grants to Guam, American 
                        Samoa, the Commonwealth of the Northern Mariana 
                        Islands, and the freely associated states to 
                        carry out the purposes of this title.
                          ``(ii) Award basis.--The Secretary shall 
                        award grants pursuant to clause (i) on a 
                        competitive basis and pursuant to the 
                        recommendations of experts in the field of 
                        employment and training, working through the 
                        Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii.
                          ``(iii) Assistance requirements.--Any freely 
                        associated state that desires to receive 
                        amounts under this title shall include in its 
                        application for assistance--
                                  ``(I) information demonstrating that 
                                it will meet all conditions that apply 
                                to States under this title;
                                  ``(II) an assurance that, 
                                notwithstanding any other provision of 
                                this title, it will use such amounts 
                                only for the direct provision of 
                                services; and
                                  ``(III) such other information and 
                                assurances as the Secretary may 
                                require.
                          ``(iv) Termination of eligibility.--
                        Notwithstanding any other provision of law, the 
                        freely associated states shall not receive any 
                        funds under this title for any program year 
                        that begins after September 30, 2001.
                          ``(v) Administrative costs.--The Secretary 
                        may provide not more than 5 percent of the 
                        amount made available for grants under this 
                        subparagraph to pay the administrative costs of 
                        the Pacific Region Educational Laboratory in 
                        Honolulu, Hawaii, regarding activities assisted 
                        under this section.
                  ``(C) Additional requirement.--The provisions of 
                Public Law 95-134, permitting the consolidation of 
                grants by the outlying areas, shall not apply to funds 
                provided to those areas or to the freely associated 
                states under this section.
                  ``(D) Definition.--For purposes of this paragraph, 
                the term `freely associated states' means the Republic 
                of the Marshall Islands, the Federated States of 
                Micronesia, and the Republic of Palau.''; and
                          (iii) in paragraph (2)--
                                  (I) by inserting after the heading 
                                the following:
                  ``(A) In general.--'';
                                  (II) by striking ``82 percent of the 
                                remainder'' and all that follows and 
                                inserting the following: ``the 
                                remaining amount to the States pursuant 
                                to the formula contained in 
                                subparagraph (B).''; and
                                  (III) by adding at the end the 
                                following:
                  ``(B) Formula.--Subject to the provisions of 
                subparagraphs (C) and (D) of the amounts allotted to 
                States for this title for each fiscal year--
                          ``(i) 33\1/3\ percent shall be allotted on 
                        the basis of the relative number of unemployed 
                        individuals residing in areas of substantial 
                        unemployment within each State as compared to 
                        the total number of such unemployed individuals 
                        in all such areas of substantial unemployment 
                        in all States;
                          ``(ii) 33\1/3\ percent shall be allotted on 
                        the basis of the relative excess number of 
                        unemployed individuals who reside in each State 
                        as compared to the total excess number of 
                        unemployed individuals in all States; and
                          ``(iii) 33\1/3\ percent shall be allotted on 
                        the basis of the relative number of 
                        economically disadvantaged youth within each 
                        State as compared to the total number 
ofeconomically disadvantaged youth in all States.
                  ``(C) Minimum allotment.--
                          ``(i) Minimum percentage.--No State shall be 
                        allotted less than 90 percent of its allotment 
                        percentage for the fiscal year preceding the 
                        fiscal year for which the determination is 
                        made.
                          ``(ii) Maximum percentage.--No State shall be 
                        allotted more than 130 percent of its allotment 
                        percentage for the fiscal year preceding the 
                        fiscal year for which the determination is 
                        made.
                  ``(D) Small state minimum allotment.--No State shall 
                receive less than one-quarter of one percent of the 
                amount available under this title for a fiscal year. 
                Amounts necessary for increasing such payments to 
                States to comply with the preceding sentence shall be 
                obtained by ratably reducing the amounts to be paid to 
                other States.''; and
                  (F) in subsection (c)(1)(A) (as redesignated)--
                          (i) in the heading, by striking 
                        ``Economically disadvantaged'' and inserting 
                        ``Disadvantaged''; and
                          (ii) in the matter preceding clause (i), by 
                        striking ``economically''.
  (c) Allocation Within States.--Title II of the Job Training 
Partnership Act (29 U.S.C. 1601 et seq.), as amended by this Act, is 
further amended by inserting after section 203 the following:

``SEC. 204. ALLOCATION WITHIN STATES.

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

``SEC. 207. SELECTION OF SERVICE PROVIDERS.

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

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

SEC. 301. ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS.

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

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

``SEC. 301. PURPOSE.

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

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

``SEC. 311. AUTHORIZATION.

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

``SEC. 312. ALLOTMENT AMONG STATES.

  ``(a) In General.--Of the amount appropriated pursuant to section 
3(a)(2) to carry out this title for a fiscal year, the Secretary--
          ``(1) shall allot the total amount appropriated pursuant to 
        section 3(a)(2)(A) in accordance with subsection (b)(1); and
          ``(2)(A) shall allot 80 percent of the amount appropriated 
        pursuant to section 3(a)(2)(B) in accordance with the 
        subsection (b)(2); and
          ``(B) shall reserve the remainder of the amount appropriated 
        pursuant to section 3(a)(2)(B) for use under part B.
  ``(b) Allotment Among States.--
          ``(1) Adult employment and training.--
                  ``(A) Reservation for outlying areas.--
                          ``(i) In general.--Of the amount allotted 
                        under subsection (a)(1), the Secretary shall 
                        allot not more than one quarter of one percent 
                        among the outlying areas.
                          ``(ii) Applicability of additional 
                        requirements.--Of the amount allotted under 
                        clause (i), the Secretary shall award grants to 
                        Guam, American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, and the freely 
                        associated states in accordance with the 
                        requirements of section 203(b)(1).
                  ``(B) States.--
                          ``(i) In general.--After determining the 
                        amount to be allotted under subparagraph (A), 
                        the Secretary shall allot the remaining amount 
                        to the States pursuant to the formula contained 
                        in clause (ii).
                          ``(ii) Formula.--Subject to the provisions of 
                        clause (iii), of the amounts allotted to States 
                        for adult employment and training under this 
                        title for each fiscal year--
                                  ``(I) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of unemployed individuals 
                                residing in areas of substantial 
                                unemployment within each State as 
                                compared to the total number of such 
                                unemployed individuals in all such 
                                areas of substantial unemployment in 
                                all States;
                                  ``(II) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                excess number of unemployed individuals 
                                within each State as compared tothe 
total excess number of unemployed individuals in all States; and
                                  ``(III) 33\1/3\ percent shall be 
                                allotted on the basis of the relative 
                                number of economically disadvantaged 
                                adults within each State as compared to 
                                the total number of economically 
                                disadvantaged adults in all States.
                          ``(iii) Minimum allotment.--
                                  ``(I) Minimum percentage.--No State 
                                shall be allotted less than 90 percent 
                                of its allotment percentage for the 
                                fiscal year preceding the fiscal year 
                                for which the determination is made.
                                  ``(II) Maximum percentage.--No State 
                                shall be allotted more than 130 percent 
                                of its allotment percentage for the 
                                fiscal year preceding the fiscal year 
                                for which the determination is made.
                          ``(iv) Small state minimum allotment.--No 
                        State shall receive less than one-quarter of 
                        one percent of the amount available under this 
                        subparagraph for a fiscal year. Amounts 
                        necessary for increasing such payments to 
                        States to comply with the preceding sentence 
                        shall be obtained by ratably reducing the 
                        amounts to be paid to other States.
          ``(2) Dislocated workers.--
                  ``(A) Reservation for outlying areas.--
                          ``(i) In general.--Of the amount allotted 
                        under subsection (a)(2)(A), the Secretary shall 
                        allot not more than one quarter of one percent 
                        among the outlying areas.
                          ``(ii) Applicability of additional 
                        requirements.--Of the amount allotted under 
                        clause (i), the Secretary shall award grants to 
                        Guam, American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, and the freely 
                        associated states in accordance with the 
                        requirements of section 203(b)(1).
                  ``(B) States.--
                          ``(i) In general.--After determining the 
                        amount to be allotted under subparagraph (A), 
                        the Secretary shall allot the remaining amount 
                        to the States pursuant to the formula contained 
                        in clause (ii).
                          ``(ii) Formula.--Subject to the provisions of 
                        clause (iii), of the amounts allotted to States 
                        for dislocated worker employment and training 
                        under this title for each fiscal year--
                                  ``(I) 33\1/3\ percent shall be 
                                allotted among the States on the basis 
                                of the relative number of unemployed 
                                individuals who reside in each State as 
                                compared to the total number of 
                                unemployed individuals in all the 
                                States;
                                  ``(II) 33\1/3\ percent shall be 
                                allotted among the States on the basis 
                                of the relative excess number of 
                                unemployed individuals who reside in 
                                each State as compared to the total 
                                excess number of unemployed individuals 
                                in all the States (for purposes of this 
                                subclause, the term `excess number' 
                                means the number which represents 
                                unemployed individuals in excess of 4.5 
                                percent of the civilian labor force in 
                                the State); and
                                  ``(III) 33\1/3\ percent shall be 
                                allotted among the States on the basis 
                                of the relative number of individuals 
                                who have been unemployed for 15 weeks 
                                or more and who reside in each State as 
                                compared to the total number of such 
                                individuals in all the States.
                          ``(iii) Minimum allotment.--
                                  ``(I) Minimum percentage.--No State 
                                shall be allotted less than 90 percent 
                                of its allotment percentage for the 
                                fiscal year preceding the fiscal year 
                                for which the determination is made.
                                  ``(II) Maximum percentage.--No State 
                                shall be allotted more than 130 percent 
                                of its allotment percentage for the 
                                fiscal year preceding the fiscal year 
                                for which the determination is made.
                          ``(iv) Small state minimum allotment.--No 
                        State shall receive less than one-quarter of 
                        one percent of the amount available under this 
                        subparagraph for a fiscal year. Amounts 
                        necessary for increasing such payments to 
                        States to comply with the preceding sentence 
                        shall be obtained by ratably reducing the 
                        amounts to be paid to other States.

``SEC. 313. ALLOCATION WITHIN STATES.

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

``SEC. 314. USE OF AMOUNTS.

  ``(a) Core Services.--Amounts allocated for adults under section 
313(b)(2)(B) and for dislocated workers under section 313(b)(2)(C) 
shall be used to provide core services described in section 123(d) to 
adults and dislocated workers, respectively, through a full service 
employment and training delivery system in accordance with such 
section.
  ``(b) Intensive Services.--
          ``(1) In general.--Amounts allocated for adults under section 
        313(b)(2)(B) and for dislocated workers under section 
        313(b)(2)(C) shall be used to provide intensive services to 
        adults and dislocated workers, respectively--
                  ``(A)(i) who are unable to obtain employment through 
                core services under subsection (a); and
                  ``(ii) who have been determined to be in need of more 
                intensive services in order to gain employment; or
                  ``(B)(i) who are employed but are economically 
                disadvantaged despite such employment; and
                  ``(ii) who are determined to be in need of such 
                intensive services in order to gain employment that 
                allows for self-sufficiency.
          ``(2) Delivery of services.--Such intensive services shall be 
        provided--
                  ``(A) directly through full service eligible 
                providers identified pursuant to section 123(c); or
                  ``(B) through contracts through full service 
                employment and training delivery systems with service 
                providers approved by the local workforce development 
                board, which may include private, for-profit providers.
          ``(3) Types of services.--Such intensive services may include 
        the following:
                  ``(A) Comprehensive and specialized assessments of 
                the skill levels and service needs of adults, which may 
                include--
                          ``(i) diagnostic testing and other assessment 
                        tools; and
                          ``(ii) in-depth interviewing and evaluation 
                        to identify employment barriers and appropriate 
                        employment goals.
                  ``(B) Development of an individual employment plan, 
                to identify the employment goals, appropriate 
                achievement objectives, and the appropriate combination 
                of services for the participant to achieve the 
                employment goal.
                  ``(C) Group counseling.
                  ``(D) Individual counseling and career planning.
                  ``(E) Case management for participants receiving 
                training services under subsection (c).
                  ``(F) Follow-up services for participants placed in 
                training or employment, for up to 1 year, to assist in 
                retention or advancement in employment.
  ``(c) Training Services.--
          ``(1) In general.--Amounts allocated for adults under section 
        313(b)(2)(B) and for dislocated workers under section 
        313(b)(2)(C) shall be used to provide training services to 
        adults and dislocated workers, respectively--
                  ``(A) who are unable to obtain employment through 
                core services under subsection (a);
                  ``(B) who are in need of training services in order 
                to gain employment as a result of determinations made 
                through--
                          ``(i) initial assessments under subsection 
                        (a); or
                          ``(ii) comprehensive and specialized 
                        assessments under subsection (b)(3)(A); or
                  ``(C)(i) who are employed but are economically 
                disadvantaged despite such employment; and
                  ``(ii) who are determined to be in need of such 
                training services in order to gain employment that 
                allows for self-sufficiency.
          ``(2) Participant qualification.--
                  ``(A) Requirements.--Except as provided in 
                subparagraph (B), provision of such training services 
                shall be limited to participants who--
                          ``(i) are unable to obtain other grant 
                        assistance for such services, including Federal 
                        Pell Grants established under title IV of the 
                        Higher Education Act of 1965 (20 U.S.C. 1070 et 
                        seq.); or
                          ``(ii) require assistance beyond the 
                        assistance made available under other grant 
                        assistance programs, including Federal Pell 
                        Grants.
                  ``(B) Reimbursements.--Training services may be 
                provided under this subsection to an individual who 
                otherwise meets the requirements of this subsection 
                while an application for a Federal Pell Grant or other 
                grant assistance is pending, except that if such 
                individual is subsequently awarded a Federal Pell Grant 
                or other grant assistance, appropriate reimbursement 
                shall be made to the local workforce development area 
                from such Federal Pell Grant or other grant assistance.
          ``(3) Provider qualification.--Such training services shall 
        be provided through training providers identified under in 
        accordance with section 124.
          ``(4) Types of services.--Such training services may include 
        the following:
                  ``(A) Basic skills training, including remedial 
                education, literacy training, and English literacy 
                program instruction.
                  ``(B) Occupational skills training, including 
                training for nontraditional employment.
                  ``(C) On-the-job training.
                  ``(D) Programs that combine workplace training with 
                related instruction, which may include cooperative 
                education programs.
                  ``(E) Training programs operated by the private 
                sector.
                  ``(F) Skill upgrading and retraining.
                  ``(G) Entrepreneurial training.
                  ``(H) Employability training to enhance basic 
                workplace competencies.
                  ``(I) Customized training conducted with a commitment 
                by an employer or group of employers to employ an 
                individual upon successful completion of the training.
          ``(5) Individual choice requirements.--
                  ``(A) In general.--All training services under this 
                section shall be provided through service delivery 
                methods that, to the extent practicable, maximize 
                consumer choice in the selection of eligible providers 
                of training services.
                  ``(B) Information on eligible providers.--Each local 
                workforce development board, through the full service 
                employment and training delivery system, shall make 
                available--
                          ``(i) the list of eligible providers of 
                        training services required under section 124, 
                        with a description of the training courses 
                        available from such providers and a list of the 
                        names of on-the-job training providers; and
                          ``(ii) the performance information described 
                        in section 124 relating to such providers.
                  ``(C) Purchase of services.--An individual eligible 
                for training services under this section may select an 
                eligible provider of training services from the list of 
                providers described in subparagraph (B)(i). Upon such 
                selection, the full service eligible provider shall, to 
                the extent practicable, refer such individual to the 
                selected eligible provider of training services and 
                arrange for payment for such services.
          ``(6) Additional requirements.--
                  ``(A) Use of skill grants.--
                          ``(i) In general.--Except as provided in 
                        clause (ii) and clause (iii), training services 
                        under this section shall be provided through 
                        the use of skill grants in accordance with this 
                        subsection, and shall be distributed to 
                        eligible individuals through full service 
                        eligible providers or affiliated sites as 
                        described in section 123.
                          ``(ii) Exceptions.--Training services 
                        authorized under this title may be provided 
                        pursuant to a contract for services in lieu of 
                        a skill grant if the requirements of paragraph 
                        (5) are met and if--
                                  ``(I) such services are on-the-job 
                                training provided by an employer;
                                  ``(II) the local workforce 
                                development board determines there are 
                                an insufficient number of qualified 
                                providers of training services in the 
                                workforce development area to 
                                accomplish the purposes of a skill 
                                grant system;
                                  ``(III) the local workforce 
                                development board determines that the 
                                qualified providers of training 
                                services in the workforce development 
                                area are unable to provide effective 
                                services to special participant 
                                populations; or
                                  ``(IV) the local workforce 
                                development board decides to enter into 
                                a direct training contract with a 
                                community based organization.
                          ``(iii) Transition.--Each State shall, not 
                        later than three years after the date of the 
                        enactment of the Employment, Training, and 
                        Literacy Enhancement Act of 1997, fully 
                        implement the requirements of clause (i). 
                        Nothing in this Act shall prohibit a State from 
                        beginning such implementation at an earlier 
                        date.
                  ``(B) Linkage to occupations in demand.--Training 
                services under this subsection shall be directly linked 
                to occupations for which there is a demand in the local 
                workforce development area, or in another area to which 
                an adult receiving such services is willing to 
                relocate, except that a local workforce development 
                board may approve training in occupations determined by 
                the local board to be in sectors of the economy which 
                have a high potential for sustained demand or growth in 
                the local workforce development area.
  ``(d) Additional Uses of Amounts.--
          ``(1) Supportive services.--Amounts allocated for adults 
        under section 313(b)(2)(B) and for dislocated workers under 
        section 313(b)(2)(C) may be used to provide supportive services 
        for adults and dislocated workers, respectively--
                  ``(A) who are receiving assistance under any of 
                subsections (a) through (c); and
                  ``(B) who are unable to receive such services through 
                other programs providing such services.
          ``(2) Needs-related payments.--
                  ``(A) In general.--Amounts allocated under section 
                313(b) may be used to provide needs-related payments to 
                adults and dislocated workers who are unemployed and do 
                not qualify for (or have ceased to qualify for) 
                unemployment compensation for the purpose of enabling 
                such individuals to participate in training programs 
                under subsection (c).
                  ``(B) Additional eligibility requirements.--In 
                addition to the requirements contained in subparagraph 
                (A), a dislocated worker who has exhausted unemployment 
                insurance benefits may be eligible to receive needs-
                related payments under this paragraph only if such 
                worker was enrolled in training by the end of the 13th 
                week of the worker's most recent layoff, or, if later, 
                by the end of the 8th week after the worker is informed 
                that a short-term layoff will in fact exceed 6 months.
  ``(e) Priority.--From funds allocated to local workforce development 
areas for adult employment and training under section 313(b)(1)(B)(i), 
priority shall be given to welfare recipients and other economically 
disadvantaged individuals with multiple barriers to employment for 
receipt of intensive services and training services provided under 
subsections (b) and (c) of section 314, respectively.

                      ``PART B--NATIONAL PROGRAMS

``SEC. 321. NATIONAL EMERGENCY GRANTS.

  ``(a) In General.--From the amount reserved under section 312(a)(2), 
the Secretary of Labor is authorized to award national emergency grants 
in a timely manner--
          ``(1) to an entity described in subsection (b) to provide 
        employment and training assistance to workers affected by major 
        economic dislocations, such as plant closures, mass layoffs, or 
        closures and realignments of military installations; and
          ``(2) to provide assistance to the Governor of any State 
        within the boundaries of which is an area that has suffered an 
        emergency or a major disaster as defined in paragraphs (1) and 
        (2), respectively, of section 102 of The Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(1) 
        and (2)) (referred to in this section as the `disaster area').
  ``(b) Employment and Training Assistance Requirements.--
          ``(1) Application.--To be eligible to receive a grant under 
        subsection (a)(1), an entity shall submit an application to the 
        Secretary of Labor at such time, in such manner, and 
        accompanied by such information, as the Secretary may 
        reasonably require.
          ``(2) Eligible entity.--For purposes of this section, the 
        term `entity' means a State, local workforce development board, 
        employer or employer association, worker-management transition 
        assistance committee or other employer-employee entity, 
        representative of employees, community development corporation 
        or community-based organization, or an industry consortia
  ``(c) Disaster Relief Employment Assistance Requirements.--
          ``(1) In general.--Funds made available under subsection 
        (a)(2)--
                  ``(A) shall be used exclusively to provide employment 
                on projects that provide food, clothing, shelter, and 
                other humanitarian assistance for disaster victims, and 
                projects regarding demolition, cleaning, repair, 
                renovation, and reconstruction of damaged and destroyed 
                structures, facilities, and lands located within the 
                disaster area; and
                  ``(B) may be expended through public and private 
                agencies and organizations engaged in such projects.
          ``(2) Eligibility.--An individual shall be eligible to be 
        offered disaster relief employment under this section if such 
        individual is a dislocated worker or is temporarily or 
        permanently laid off as a consequence of the disaster.
          ``(3) Limitations on disaster relief employment.--No 
        individual shall be employed under this part for more than 6 
        months for work related to recovery from a single natural 
        disaster.

``SEC. 322. SKILL UPGRADING PROJECTS IN ENTERPRISE ZONES OR EMPOWERMENT 
                    COMMUNITIES.

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

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

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

SEC. 401. NATIVE AMERICAN PROGRAM.

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

``SEC. 401. NATIVE AMERICAN PROGRAMS.

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

SEC. 402. MIGRANT AND SEASONAL FARMWORKER PROGRAM.

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

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

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

                         Subtitle B--Job Corps

SEC. 411. STATEMENT OF PURPOSE.

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

SEC. 412. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.

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

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

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

SEC. 414. JOB CORPS CENTERS.

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

SEC. 415. STANDARDS OF CONDUCT.

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

SEC. 416. COUNSELING AND JOB PLACEMENT.

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

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

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

                    Subtitle C--National Activities

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

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

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

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

``SEC. 452. INCENTIVE GRANTS.

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

SEC. 422. NONTRADITIONAL EMPLOYMENT DEMONSTRATION PROGRAM.

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

                         Subtitle D--Repealers

SEC. 451. REPEALERS.

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

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

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

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

SEC. 502. AMENDMENT TO ADULT EDUCATION ACT.

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

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

``SEC. 301. SHORT TITLE.

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

``SEC. 302. STATEMENT OF PURPOSE.

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

``SEC. 303. DEFINITION.

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

``SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

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

                 ``PART A--GRANTS TO ELIGIBLE AGENCIES

``SEC. 311. AUTHORITY TO MAKE GRANTS.

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

``SEC. 312. ALLOTMENTS.

  ``(a) Initial Allotments.--From the sums available for the purpose of 
making grants under this part for any fiscal year, the Secretary shall 
allot to each eligible agency that in accordance with section 101 of 
the Employment, Training, and Literacy Enhancement Act submits to the 
Secretary a plan for the year an initial amount as follows:
          ``(1) $100,000, in the case of an eligible agency of the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.
          ``(2) $250,000, in the case of any other eligible agency.
  ``(b) Additional Allotments.--
          ``(1) In general.--From the remainder available for the 
        purpose of making grants under this part for any fiscal year 
        after the application of subsection (a), the Secretary shall 
        allot to each eligible agency that receives an initial 
        allotment under such subsection an additional amount that bears 
        the same relationship to such remainder as the number of 
        qualifying adults in the State or outlying area of the agency 
        bears to the number of such adults in all States and outlying 
        areas.
          ``(2) Qualifying adult.--For purposes of this subsection, the 
        term `qualifying adult' means an adult who--
                  ``(A) is at least 16 years of age, but less than 61 
                years of age;
                  ``(B) is beyond the age of compulsory school 
                attendance under the law of the State or outlying area;
                  ``(C) does not have a certificate of graduation from 
                a school providing secondary education and has not 
                achieved an equivalent level of education; and
                  ``(D) is not currently enrolled in secondary school.
  ``(c) Special Rule.--
          ``(1) In general.--Using funds not to exceed the amount 
        appropriated and reserved under the Adult Education Act for 
        fiscal year 1997 for the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau, the 
        Secretary shall award grants, from funds made available under 
        subsections (a) and (b), to Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, or 
        the Republic of Palau to carry out activities described in this 
        part in accordance with the provisions of this part that the 
        Secretary determines are not inconsistent with this subsection.
          ``(2) Award basis.--The Secretary shall award grants pursuant 
        to paragraph (1) on a competitive basis and pursuant to 
        recommendations from the Pacific Region Educational Laboratory 
        in Honolulu, Hawaii.
          ``(3) Termination of eligibility.--Notwithstanding any other 
        provision of law, the Republic of the Marshall Islands, the 
        Federated States of Micronesia, and the Republic of Palau shall 
        not receive any funds under this part for any fiscal year that 
        begins after September 30, 2001.
          ``(4) Administrative costs.--The Secretary may provide not 
        more than 5 percent of the funds made available for grants 
        under this subsection to pay the administrative costs of the 
        Pacific Region Educational Laboratory regarding activities 
        assisted under this subsection.
  ``(d) Hold-harmless.--
          ``(1) In general.--Notwithstanding subsection (a)--
                  ``(A) for fiscal year 1998, no eligible agency shall 
                receive an allotment that is less than 90 percent of 
                the payments made to the State of the agency for fiscal 
                year 1997 for programs for which funds were authorized 
                to be appropriated under section 313 of the Adult 
                Education Act (as such Act was in effect on the day 
                before the date of the enactment of the Employment, 
                Training, and Literacy Enhancement Act of 1997); and
                  ``(B) for fiscal year 1999 and each succeeding fiscal 
                year, no eligible agency shall receive an allotment 
                that is less than 90 percent of the amount the agency 
                received for the preceding fiscal year for programs 
                under this Act.
          ``(2) Ratable reduction.--If for any fiscal year the amount 
        available for allotment under this section is insufficient to 
        satisfy the provisions of paragraph (1), the Secretary shall 
        ratably reduce the payments to all eligible agencies, as 
        necessary.
  ``(e) Reallotment.--The portion of any eligible agency's allotment 
under subsection (a) or (b) for a fiscal year that the Secretary 
determines will not be required for the period such allotment is 
available for carrying out activities under this part, shall be 
available for reallotment from time to time, on such dates during such 
period as the Secretary shall fix, to other eligible agencies in 
proportion to the original allotments to such agencies under such 
subsection for such year.

``SEC. 313. USE OF FUNDS.

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

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

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

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

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

                      ``PART B--NATIONAL PROGRAMS

``SEC. 321. NATIONAL INSTITUTE FOR LITERACY.

  ``(a) Purpose.--The National Institute for Literacy shall--
          ``(1) provide national leadership with respect to literacy in 
        the United States;
          ``(2) coordinate literacy services; and
          ``(3) serve as a national resource for adult education and 
        family literacy by providing the best and most current 
        information available and supporting the creation of new ways 
        to offer services of proven effectiveness.
  ``(b) Establishment.--
          ``(1) In general.--There is established the National 
        Institute for Literacy (in this section referred to as the 
        `Institute'). The Institute shall be administered under the 
        terms of an interagency agreement entered into by the Secretary 
        of Education with the Secretary of Labor and the Secretary of 
        Health and Human Services (in this section referred to as the 
        `Interagency Group'). The Interagency Group may include in the 
        Institute any research and development center, institute, or 
        clearinghouse established within the Department of Education, 
        the Department of Labor, or the Department of Health and Human 
        Services whose purpose is determined by the Interagency Group 
        to be related to the purpose of the Institute.
          ``(2) Offices.--The Institute shall have offices separate 
        from the offices of the Department of Education, the Department 
        of Labor, and the Department of Health and Human Services.
          ``(3) Board recommendations.--The Interagency Group shall 
        consider the recommendations of the National Institute for 
        Literacy Advisory Board (in this section referred to as the 
        `Board') established under subsection (d) in planning the goals 
        of the Institute and in the implementation of any programs to 
        achieve such goals.
          ``(4) Daily operations.--The daily operations of the 
        Institute shall be carried out by the Director of the Institute 
        appointed under subsection (g).
  ``(c) Duties.--
          ``(1) In general.--In order to provide leadership for the 
        improvement and expansion of the system for delivery of 
        literacy services, the Institute is authorized--
                  ``(A) to establish, and make accessible, a national 
                electronic data base of information that disseminates 
                information to the broadest possible audience within 
                the literacy and basic skills field, and that 
                includes--
                          ``(i) effective practices in the provision of 
                        literacy and basic skills instruction, 
                        including the integration of such instruction 
                        with occupational skills training;
                          ``(ii) public and private literacy and basic 
                        skills programs and Federal, State, and local 
                        policies affecting the provision of literacy 
                        services at the national, State, and local 
                        levels;
                          ``(iii) opportunities for technical 
                        assistance, meetings, conferences, and other 
                        opportunities that lead to the improvement of 
                        literacy and basic skills services; and
                          ``(iv) a communication network for literacy 
                        programs, providers, social service agencies, 
                        and students;
                  ``(B) to coordinate support for the provision of 
                literacy and basic skills services across Federal 
                agencies and at the State and local levels;
                  ``(C) to coordinate the support of research and 
                development on literacy and basic skills in families 
                and adults across Federal agencies, especially with the 
                Office of Educational Research and Improvement in the 
                Department of Education, and to carry out basic and 
                applied research and development on topics that are not 
                being investigated by other organizations or agencies;
                  ``(D) to collect and disseminate information on 
                methods of advancing literacy that show great promise;
                  ``(E) funding a network of State or regional adult 
                literacy resource centers to assist State and local 
                public and private nonprofit efforts to improve 
                literacy by--
                          ``(i) encouraging the coordination of 
                        literacy services;
                          ``(ii) carrying out evaluations of the 
                        effectiveness of adult education and literacy 
                        activities;
                          ``(iii) enhancing the capacity of State and 
                        local organizations to provide literacy 
                        services; and
                          ``(iv) serving as a reciprocal link between 
                        the Institute and providers of adult education 
                        and literacy activities for the purpose of 
                        sharing information, data, research, expertise, 
                        and literacy resources;
                  ``(F) to coordinate and share information with 
                national organizations and associations that are 
                interested in literacy and workforce development;
                  ``(G) to inform the development of policy with 
                respect to literacy and basic skills; and
                  ``(H) to undertake other activities that lead to the 
                improvement of the Nation's literacy delivery system 
                and that complement other such efforts being undertaken 
                by public and private agencies and organizations.
          ``(2) Grants, contracts, and agreements.--The Institute may 
        make grants to, or enter into contracts or cooperative 
        agreements with, individuals, public or private institutions, 
        agencies, organizations, or consortia of such institutions, 
        agencies, or organizations to carry out the activities of the 
        Institute. Such grants, contracts, or agreements shall be 
        subject to the laws and regulations that generally apply to 
        grants, contracts, or agreements entered into by Federal 
        agencies.
  ``(d) Literacy Leadership.--
          ``(1) Fellowships.--The Institute, in consultation with the 
        Board, may award fellowships, with such stipends and allowances 
        as the Director considers necessary, to outstanding individuals 
        pursuing careers in adult education or literacy in the areas of 
        instruction, management, research, or innovation.
          ``(2) Use of fellowships.--Fellowships awarded under this 
        subsection shall be used, under the auspices of the Institute, 
        to engage in research, education, training, technical 
        assistance, or other activities to advance the field of adult 
        education or literacy, including the training of volunteer 
        literacy providers at the national, State, or local level.
          ``(3) Interns and volunteers.--The Institute, in consultation 
        with the Board, may award paid and unpaid internships to 
        individuals seeking to assist the Institute in carrying out its 
        mission. Notwithstanding section 1342 of title 31, United 
        States Code, the Institute may accept and use voluntary and 
        uncompensated services as the Institute determines necessary.
  ``(e) National Institute for Literacy Advisory Board.--
          ``(1) Establishment.--
                  ``(A) In general.--There is established a National 
                Institute for Literacy Advisory Board. The Board shall 
                consist of 10 individuals, appointed by the Interagency 
                Group, from individuals who--
                          ``(i) are not otherwise officers or employees 
                        of the Federal Government; and
                          ``(ii) are representative of entities or 
                        groups described in subparagraph (B).
                  ``(B) Entities or groups described.--The entities or 
                groups referred to in subparagraph (A) are--
                          ``(i) literacy organizations and providers of 
                        literacy services, including--
                                  ``(I) nonprofit providers of literacy 
                                services;
                                  ``(II) providers of programs and 
                                services involving English language 
                                instruction; and
                                  ``(III) providers of services 
                                receiving assistance under this title;
                          ``(ii) businesses that have demonstrated 
                        interest in literacy programs;
                          ``(iii) literacy students;
                          ``(iv) experts in the area of literacy 
                        research;
                          ``(v) State and local governments;
                          ``(vi) representatives of employees; and
                          ``(vii) State directors of adult education.
          ``(2) Duties.--The Board--
                  ``(A) shall make recommendations concerning the 
                appointment of the Director and staff of the Institute;
                  ``(B) shall provide independent advice on the 
                operation of the Institute; and
                  ``(C) shall receive reports from the Interagency 
                Group and the Director.
          ``(3) Federal advisory committee act.--Except as otherwise 
        provided, the Board established by this subsection shall be 
        subject to the provisions of the Federal Advisory Committee Act 
        (5 U.S.C. App.).
          ``(4) Terms.--
                  ``(A) In general.--Each member of the Board shall be 
                appointed for a term of 3 years, except that the 
                initial terms for members may be 1, 2, or 3 years in 
                order to establish a rotation in which \1/3\ of the 
                members are selected each year. Any such member may be 
                appointed for not more than 2 consecutive terms.
                  ``(B) Vacancy appointments.--Any member appointed to 
                fill a vacancy occurring before the expiration of the 
                term for which the member's predecessor was appointed 
                shall be appointed only for the remainder of that term. 
                A member may serve after the expiration of that 
                member's term until a successor has taken office. A 
                vacancy in the Board shall be filled in the manner in 
                which the original appointment was made. A vacancy in 
                the Board shall not affect the powers of the Board.
          ``(5) Quorum.--A majority of the members of the Board shall 
        constitute a quorum but a lesser number may hold hearings. Any 
        recommendation of the Board may be passed only by a majority of 
        the Board's members present.
          ``(6) Election of officers.--The Chairperson and Vice 
        Chairperson of the Board shall be elected by the members of the 
        Board. The term of office of the Chairperson and Vice 
        Chairperson shall be 2 years.
          ``(7) Meetings.--The Board shall meet at the call of the 
        Chairperson or a majority of the members of the Board.
  ``(f) Gifts, Bequests, and Devises.--The Institute may accept, 
administer, and use gifts or donations of services, money, or property, 
both real and personal.
  ``(g) Mails.--The Board and the Institute may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.
  ``(h) Director.--The Interagency Group, after considering 
recommendations made by the Board, shall appoint and fix the pay of a 
Director.
  ``(i) Applicability of Certain Civil Service Laws.--The Director and 
staff of the Institute may be appointed without regard to the 
provisions of title 5, United States Code, governing appointments in 
the competitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of that title 
relating to classification and General Schedule pay rates, except that 
anindividual so appointed may not receive pay in excess of the maximum 
rate payable under section 5376 of title 5, United States Code.
  ``(j) Experts and Consultants.--The Board and the Institute may 
procure temporary and intermittent services under section 3109(b) of 
title 5, United States Code.
  ``(k) Report.--The Institute shall submit a report biennially to the 
committees of the United States House of Representatives and the Senate 
having jurisdiction over this title. Each report submitted under this 
subsection shall include--
          ``(1) a comprehensive and detailed description of the 
        Institute's operations, activities, financial condition, and 
        accomplishments in the field of literacy for the period covered 
        by the report;
          ``(2) a description of how plans for the operation of the 
        Institute for the succeeding two fiscal years will facilitate 
        achievement of the goals of the Institute and the goals of the 
        literacy programs within the Department of Education, the 
        Department of Labor, and the Department of Health and Human 
        Services; and
          ``(3) any additional minority, or dissenting views submitted 
        by members of the Board.
  ``(l) Funding.--Any amounts appropriated to the Secretary of 
Education, the Secretary of Labor, or the Secretary of Health and Human 
Services for purposes that the Institute is authorized to perform under 
this section may be provided to the Institute for such purposes.

``SEC. 322. NATIONAL LEADERSHIP ACTIVITIES.

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

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

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

SEC. 504. CONFORMING AMENDMENTS.

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

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. REPEALERS.

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

SEC. 602. CONFORMING AMENDMENTS.

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

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

SEC. 701. AMENDMENTS TO COUNCIL.

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

SEC. 702. TRANSFER OF COUNCIL.

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

SEC. 703. CONFORMING AMENDMENTS.

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

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

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

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

SEC. 801. DEFINITIONS.

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

SEC. 802. FUNCTIONS.

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

SEC. 803. DESIGNATION OF STATE AGENCIES.

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

SEC. 804. APPROPRIATIONS.

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

SEC. 805. DISPOSITION OF ALLOTTED FUNDS.

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

SEC. 806. STATE PLANS.

  Section 8 of the Wagner-Peyser Act (29 U.S.C. 49g) is amended--
          (1) in subsection (a) to read as follows:
  ``(a) Any State desiring to receive assistance under this Act shall 
submit to the Secretary, as part of the State plan submitted under 
section 101 of the Employment, Training, and Literacy Enhancement Act, 
detailed plans for carrying out the provisions of this Act within such 
State.'';
          (2) by striking subsections (b), (c), and (e); and
          (3) by redesignating subsection (d) as subsection (b).

SEC. 807. FEDERAL ADVISORY COUNCIL.

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

SEC. 808. REGULATIONS.

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

SEC. 809. EFFECTIVE DATE.

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

             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

       Subtitle A--Amendments to the Job Training Partnership Act

SEC. 901. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

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

          ``TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS

               ``Part A--State Administrative Provisions

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

               ``Part B--Local Administrative Provisions

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

                ``Part C--Program and Fiscal Provisions

                      ``Subpart 1--General Provisions

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

            ``Subpart 2--Performance Accountability Provisions

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

                       ``Subpart 3--Other Provisions

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

                   ``Part D--Miscellaneous Provisions

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

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

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

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

``Sec. 301. Purpose.

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

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

                      ``Part B--National Programs

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

              ``TITLE IV--FEDERALLY ADMINISTERED PROGRAMS

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

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

                          ``Part B--Job Corps

``Sec. 421. Statement of purpose.
``Sec. 422. Establishment of the Job Corps.
``Sec. 423. Individuals eligible for the Job Corps.
``Sec. 424. Screening and selection of applicants: general provisions.
``Sec. 425. Screening and selection: special limitations.
``Sec. 426. Enrollment and assignment.
``Sec. 427. Job Corps centers.
``Sec. 428. Program activities.
``Sec. 429. Allowances and support.
``Sec. 430. Standards of conduct.
``Sec. 431. Community participation.
``Sec. 432. Counseling and job placement.
``Sec. 433. Experimental and developmental projects and coordination 
with other programs.
``Sec. 433A. Job Corps centers for homeless families.
``Sec. 434. Advisory boards and committees.
``Sec. 435. Participation of the States.
``Sec. 436. Application of provisions of Federal law.
``Sec. 437. Special provisions.
``Sec. 438. General provisions.
``Sec. 439. Donations.

                ``Part C--Veterans' Employment Programs

``Sec. 441. Authorization of programs.

                     ``Part D--National Activities

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

                   ``Part E--Labor Market Information

``Sec. 461. Labor market information; availability of funds.
``Sec. 462. Cooperative labor market information program.
``Sec. 463. Special federal responsibilities.
``Sec. 464. National Occupational Information Coordinating Committee.
``Sec. 465. Job bank program.
``Sec. 466. State job bank systems.
``Sec. 467. State labor market information programs.''.

SEC. 902. DEFINITIONS.

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

``SEC. 4. DEFINITIONS.

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

SEC. 903. AMENDMENTS TO TITLE I.

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

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

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

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

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

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

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

                   ``Subpart 1--General Provisions'';

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

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

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

                    ``Subpart 3--Other Provisions''.

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

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

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

``SEC. 142. BENEFITS.'';

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

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

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

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

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

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

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

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

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

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

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

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

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

``SEC. 163. MONITORING.'';

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 904. AMENDMENTS TO TITLE IV.

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

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

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

                         ``PART B--JOB CORPS''.

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

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

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

                    ``PART D--NATIONAL ACTIVITIES''.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 905. AMENDMENTS TO TITLE VI.

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

SEC. 906. CLARIFICATION.

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

                  Subtitle B--Amendments to Other Acts

SEC. 911. AMENDMENTS TO OTHER ACTS.

  The following Acts are amended as follows:
          (1) Title 5, united states code.--Section 3502(d) of title 5, 
        United States Code, is amended--
                  (A) in paragraph (3)--
                          (i) in subparagraph (A)(i), by striking ``or 
                        units (referred to in section 311(b)(2) of the 
                        Job Training Partnership Act)'' and inserting 
                        ``referred to in section 313(a)(2)(B)(i) of the 
                        Employment, Training, and Literacy Enhancement 
                        Act''; and
                          (ii) in subparagraph (B)(iii), by striking 
                        ``Job Training Partnership Act'' and inserting 
                        ``Employment, Training, and Literacy 
                        Enhancement Act''; and
                  (B) in paragraph (4), in the second sentence, by 
                striking ``Job Training Partnership Act'' and inserting 
                ``Employment, Training, and Literacy Enhancement Act''.
          (2) Food stamp act of 1977.--
                  (A) Section 5.--Section 5(l) of the Food Stamp Act of 
                1977 (7 U.S.C. 2014(l)) is amended by striking 
                ``section 142(b) of the Job Training Partnership Act 
                (29 U.S.C. 1552(b))'' and inserting ``title II, III, or 
                IV of the Employment, Training, and Literacy 
                Enhancement Act''.
                  (B) Section 6.--Section 6 of the Food Stamp Act of 
                1977 (7 U.S.C. 2015) is amended--
                          (i) in subsection (d)(4)(M), by striking 
                        ``Job Training Partnership Act'' and inserting 
                        ``Employment, Training, and Literacy 
                        Enhancement Act''; and
                          (ii) in subsection (e)(3), by striking 
                        subparagraph (A) and inserting the following:
                  ``(A) a program under title II, III, or IV of the 
                Employment, Training, and Literacy Enhancement Act;''.
                  (C) Section 17.--The second sentence of section 
                17(b)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
                2026(b)(2)) is amended--
                          (i) by striking ``to accept an offer of 
                        employment from a political subdivision or a 
                        prime sponsor pursuant to the Comprehensive 
                        Employment and Training Act of 1973, as amended 
                        (29 U.S.C. 812),'' and inserting ``to accept an 
                        offer of employment from a service provider 
                        carrying out employment and training activities 
                        through a program carried out under title II, 
                        III, or IV of the Employment, Training, and 
                        Literacy Enhancement Act,''; and
                          (ii) by striking ``: Provided, That all of 
                        the political subdivision's'' and all that 
                        follows and inserting ``, if all of the jobs 
                        supported under the program have been made 
                        available to participants in the program before 
                        the service provider providing the jobs extends 
                        an offer of employment under this paragraph, 
                        and if the service provider, in employing the 
                        person, complies with the requirements of 
                        Federal law that relate to the program.''.
          (3) Immigration and nationality act.--Section 245A(h)(4)(F) 
        of the Immigration and Nationality Act (8 U.S.C. 
        1255a(h)(4)(F)) is amended by striking ``The Job Training 
        Partnership Act.'' and inserting ``The Employment, Training, 
        and Literacy Enhancement Act.''.
          (4) Refugee education assistance act of 1980.--Section 
        402(a)(4) of the Refugee Education Assistance Act of 1980 (8 
        U.S.C. 1522 note) is amended by striking ``the Comprehensive 
        Employment and Training Act of 1973'' and inserting ``the 
        Employment, Training, and Literacy Enhancement Act''.
          (5) National defense authorization act for fiscal year 
        1993.--
                  (A) Section 3161.--Section 3161(c)(6) of the National 
                Defense Authorization Act for Fiscal Year 1993 (42 
                U.S.C. 7274h(c)(6)) is amended by striking ``Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                inserting ``title II, III, or IV of the Employment, 
                Training, and Literacy Enhancement Act''.
                  (B) Section 4461.--Section 4461(1) of the National 
                Defense Authorization Act for Fiscal Year 1993 (10 
                U.S.C. 1143 note) is amended by striking ``The Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.).'' 
                and inserting ``The Employment, Training, and Literacy 
                Enhancement Act.''.
                  (C) Section 4471.--Section 4471 of the National 
                Defense Authorization Act for Fiscal Year 1993 (10 
                U.S.C. 2501 note) is amended--
                          (i) in subsection (c)(2), by striking 
                        ``section 311(b)(2) of the Job Training 
                        Partnership Act (29 U.S.C. 1661(b)(2))'' and 
                        inserting ``313(a)(2)(B)(i) of the Employment, 
                        Training, and Literacy Enhancement Act'';
                          (ii) in subsection (d)--
                                  (I) in the first sentence, by 
                                striking ``for training, adjustment 
                                assistance, and employment services'' 
                                and all that follows through ``except 
                                where'' and inserting ``to participate 
                                in employment and training activities 
                                carried out under the Employment, 
                                Training, and Literacy Enhancement Act, 
                                except in a case in which''; and
                                  (II) by striking the second sentence; 
                                and
                          (iii) in subsection (e), by striking ``for 
                        training,'' and all that follows through 
                        ``beginning'' and inserting ``to participate in 
                        employment and training activities under the 
                        Employment, Training, and Literacy Enhancement 
                        Act beginning''.
          (6) National defense authorization act for fiscal year 
        1991.--Section 4003(5)(C) of the National Defense Authorization 
        Act for Fiscal Year 1991 (10 U.S.C. 2391 note) is amended by 
        inserting before the period the following: ``, as in effect on 
        the day before the date of the enactment of the Employment, 
        Training, and Literacy Enhancement Act of 1997''.
          (7) National defense authorization act for fiscal year 
        1994.--Section 1333(c)(2)(B) of the National Defense 
        Authorization Act for Fiscal Year 1994 (10 U.S.C. 2701 note) is 
        amended by striking ``Private industry councils (as described 
        in section 102 of the Job Training Partnership Act (29 U.S.C. 
        1512)).'' and inserting ``Local workforce development boards 
        established under section 122 of the Employment, Training, and 
        Literacy Enhancement Act.''.
          (8) Small business act.--The fourth sentence of section 
        7(j)(13)(E) of the Small Business Act (15 U.S.C. 636(j)(13)(E)) 
        is amended by striking ``under the Job Training Partnership Act 
        (29 U.S.C. 1501 et seq.)'' and inserting ``under section 124 of 
        the Employment, Training, and Literacy Enhancement Act''.
          (9) Employment act of 1946.--Section 4(f)(2)(B) of the 
        Employment Act of 1946 (15 U.S.C. 1022a(f)(2)(B)) is amended by 
        striking ``and include these in the annual Employment and 
        Training Report of the President required under section 705(a) 
        of the Comprehensive Employment and Training Act of 1973 
        (hereinafter in this Act referred to as `CETA')'' and inserting 
        ``and prepare and submit to the President an annual report 
        containing the recommendations''.
          (10) Full employment and balanced growth act of 1978.--
                  (A) Section 206.--Section 206 of the Full Employment 
                and Balanced Growth Act of 1978 (15 U.S.C. 3116) is 
                amended--
                          (i) in subsection (b)--
                                  (I) in the matter preceding paragraph 
                                (1), by striking ``CETA'' and inserting 
                                ``the Employment, Training, and 
                                Literacy Enhancement Act''; and
                                  (II) in paragraph (1), by striking 
                                ``(including use of section 110 of CETA 
                                when necessary)''; and
                          (ii) in subsection (c)(1), by striking 
                        ``through the expansion of CETA and other''.
                  (B) Section 401.--Section 401(d) of the Full 
                Employment and Balanced Growth Act of 1978 (15 U.S.C. 
                3151(d)) is amended by striking ``include, in the 
                annual Employment and Training Report of the President 
                provided under section 705(a) of CETA,'' and inserting 
                ``include, in the annual report referred to in section 
                4(f)(2)(B) of the Employment Act of 1946 (15 U.S.C. 
                1022a(f)(2)(B)),''.
          (11) Title 18, united states code.--Subsections (a), (b), and 
        (c) of section 665 of title 18, United States Code are amended 
        by striking ``or the Job Training Partnership Act'' and 
        inserting ``the Job Training Partnership Act, or the 
        Employment, Training, and Literacy Enhancement Act''.
          (12) Trade act of 1974.--Section 239(e) of the Trade Act of 
        1974 (19 U.S.C. 2311(e)) is amended by striking ``Job Training 
        Partnership Act'' and inserting ``Employment, Training, and 
        Literacy Enhancement Act''.
          (13) Higher education act of 1965.--Section 480(b)(14) of the 
        Higher Education Act of 1965 (20 U.S.C. 1087vv(b)(14)) is 
        amended by striking ``Job Training Partnership Act'' and 
        inserting ``received through participation under title II, III, 
        or IV of the Employment, Training, and Literacy Enhancement 
        Act''.
          (14) Individuals with disabilities education act.--Section 
        626 of the Individuals with Disabilities Education Act (20 
        U.S.C. 1425) is amended--
                  (A) in the first sentence of subsection (a), by 
                striking ``(including the State job training 
                coordinating councils and service delivery area 
                administrative entities established under the Job 
                Training Partnership Act)'' and inserting ``(including 
                the State collaborative process under of section 102 of 
                the Employment, Training, and Literacy Enhancement Act 
                and local workforce development boards established 
                under section 122 of such Act)'';
                  (B) in subsection (e)--
                          (i) in paragraph (3)(C), by striking ``local 
                        Private Industry Councils (PICS) authorized by 
                        the Job Training Partnership Act (JTPA),'' and 
                        inserting ``local workforce development boards 
                        established under section 122 of the 
                        Employment, Training, and Literacy Enhancement 
                        Act,'';
                          (ii) in paragraph (4)(A)(iii), by striking 
                        ``local Private Industry Councils (PICS) 
                        authorized by the JTPA,'' and inserting ``local 
                        workforce development boards established under 
                        section 122 of the Employment, Training, and 
                        Literacy Enhancement Act,''; and
                          (iii) in clauses (iii), (iv), (v), and (vii) 
                        of paragraph (4)(B), by striking ``PICS 
                        authorized by the JTPA'' and inserting ``local 
                        workforce development boards established under 
                        section 122 of the Employment, Training, and 
                        Literacy Enhancement Act''; and
                  (C) in subsection (g), by striking ``the Job Training 
                Partnership Act (JTPA),'' and inserting ``the 
                Employment, Training, and Literacy Enhancement Act,''.
          (15) Department of education organization act.--Subsection 
        (a) of section 302 of the Department of Education Organization 
        Act (20 U.S.C. 3443(a)) (as redesignated in section 271(a)(2) 
        of the Improving America's Schools Act of 1994) is amended by 
        striking ``under section 303(c)(2) of the Comprehensive 
        Employment and Training Act'' and inserting ``relating to such 
        education''.
          (16) National skill standards act of 1994.--
                  (A) Section 504.--Section 504(c)(3) of the National 
                Skill Standards Act of 1994 (20 U.S.C. 5934(c)(3)) is 
                amended by striking ``the Capacity Building and 
                Information and Dissemination Network established under 
                section 453(b) of the Job Training Partnership Act (29 
                U.S.C. 1733(b)) and''.
                  (B) Section 508.--Section 508(1) of the National 
                Skill Standards Act of 1994 (20 U.S.C. 5938(1)) is 
                amended to read as follows:
          ``(1) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization of 
        demonstrated effectiveness that is representative of a 
        community or a significant segment of a community and that 
        provides workforce and career development activities, as 
        defined in section 4 of the Employment, Training, and Literacy 
        Enhancement Act.''.
          (17) Elementary and secondary education act of 1965.--
                  (A) Section 1205.--Section 1205(8)(B) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6365(8)(B)) is amended by striking ``, the Adult 
                Education Act, the Individuals with Disabilities 
                Education Act, and the Job Training Partnership Act'' 
                and inserting ``the Individuals with Disabilities 
                Education Act, and the Employment, Training, and 
                Literacy Enhancement Act''.
                  (B) Section 1414.--Section 1414(c)(8) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6434(c)(8)) is amended by striking ``programs 
                under the Job Training Partnership Act,'' and inserting 
                ``activities under the Employment, Training, and 
                Literacy Enhancement Act,''.
                  (C) Section 1423.--Section 1423(9) of the Elementary 
                and Secondary Education Act of 1965 (20 U.S.C. 6453(9)) 
                is amended by striking ``programs under the Job 
                Training and Partnership Act'' and inserting 
                ``activities under the Employment, Training, and 
                Literacy Enhancement Act''.
                  (D) Section 1425.--Section 1425(9) of the Elementary 
                and Secondary Education Act of 1965 (20 U.S.C. 6455(9)) 
                is amended by striking ``, such as funds under the Job 
                Training Partnership Act,'' and inserting ``, such as 
                funds made available under the Employment, Training, 
                and Literacy Enhancement Act,''.
          (18) Freedom support act.--The last sentence of section 505 
        of the FREEDOM Support Act (22 U.S.C. 5855) is amended by 
        striking ``, through the Defense Conversion'' and all that 
        follows through ``or through'' and inserting ``or through''.
          (19) Emergency jobs and unemployment assistance act of 
        1974.--
                  (A) Section 204.--Section 204(b) of the Emergency 
                Jobs and Unemployment Assistance Act of 1974 (26 U.S.C. 
                3304 note) is amended by striking ``designate as an 
                area'' and all that follows and inserting ``designate 
                as an area under this section an area that is a local 
                workforce development area under the Employment, 
                Training, and Literacy Enhancement Act.''.
                  (B) Section 223.--Section 223 of the Emergency Jobs 
                and Unemployment Assistance Act of 1974 (26 U.S.C. 3304 
                note) is amended--
                          (i) in paragraph (3), by striking 
                        ``assistance provided'' and all that follows 
                        and inserting ``assistance provided under the 
                        Employment, Training, and Literacy Enhancement 
                        Act;''; and
                          (ii) in paragraph (4), by striking ``funds 
                        provided'' and all that follows and inserting 
                        ``funds provided under the Employment, 
                        Training, and Literacy Enhancement Act;''.
          (20) Job training reform amendments of 1992.--Section 701 of 
        the Job Training Reform Amendments of 1992 (29 U.S.C. 1501 
        note) is repealed.
          (21) Public law 98-524.--Section 7 of Public Law 98-524 (29 
        U.S.C. 1551 note) is repealed.
          (22) Veterans' benefits and programs improvement act of 
        1988.--Section 402 of the Veterans' Benefits and Programs 
        Improvement Act of 1988 (29 U.S.C. 1721 note) is amended--
                  (A) in subsection (a), by striking ``title III of the 
                Job Training Partnership Act (29 U.S.C. 1651 et seq.)'' 
                and inserting ``the Employment, Training, and Literacy 
                Enhancement Act'';
                  (B) in subsection (c), by striking ``Training, in 
                consultation with the office designated or created 
                under section 322(b) of the Job Training Partnership 
                Act,'' and inserting ``Training''; and
                  (C) in subsection (d)--
                          (i) in paragraph (1), by striking ``under--'' 
                        and all that follows through ``the Veterans' '' 
                        and inserting ``under the Veterans' ''; and
                          (ii) in paragraph (2), by striking 
                        ``Employment and training'' and all that 
                        follows and inserting ``Employment, training, 
                        and literacy activities under the Employment, 
                        Training, and Literacy Enhancement Act.''.
          (23) Veterans' job training act.--
                  (A) Section 13.--Section 13(b) of the Veterans' Job 
                Training Act (29 U.S.C. 1721 note) is amended by 
                striking ``assistance under the Job Training 
                Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                inserting ``assistance under the Employment, Training, 
                and Literacy Enhancement Act''.
                  (B) Section 14.--Section 14(b)(3)(B)(i)(II) of the 
                Veterans' Job Training Act (29 U.S.C. 1721 note) is 
                amended by striking ``under part C of title IV of the 
                Job Training Partnership Act (29 U.S.C. 1501 et seq.)'' 
                and inserting ``under the Employment, Training, and 
                Literacy Enhancement Act''.
                  (C) Section 15.--Section 15(c)(2) of the Veterans' 
                Job Training Act (29 U.S.C. 1721 note) is amended--
                          (i) in the second sentence, by striking 
                        ``part C of title IV of the Job Training 
                        Partnership Act (29 U.S.C. 1501 et seq.)'' and 
                        inserting ``the Employment, Training, and 
                        Literacy Enhancement Act''; and
                          (ii) in the third sentence, by striking 
                        ``title III of''.
          (24) Worker adjustment and retraining notification act.--
        Section 3(a)(2) of the Worker Adjustment and Retraining 
        Notification Act (29 U.S.C. 2102(a)(2)) is amended by striking 
        ``title III of the Job Training Partnership
        Act'' and inserting ``title II, III, or IV of the Employment, 
        Training, and Literacy Enhancement Act''.
          (25) Title 31, united states code.--Section 6703(a) of title 
        31, United States Code, is amended by striking paragraph (4) 
        and inserting the following:
          ``(4) Programs under title III or IV of the Employment, 
        Training, and Literacy Enhancement Act.''.
          (26) Veterans' rehabilitation and education amendments of 
        1980.--Section 512 of the Veterans' Rehabilitation and 
        Education Amendments of 1980 (38 U.S.C. 4101 note) is amended 
        by striking ``the Comprehensive Employment and Training Act (29 
        U.S.C. et seq.),'' and inserting ``the Employment, Training, 
        and Literacy Enhancement Act,''.
          (27) Title 38, united states code.--
                  (A) Section 4102a.--Section 4102A(d) of title 38, 
                United States Code, is amended by striking ``the Job 
                Training Partnership Act'' and inserting ``the 
                Employment, Training, and Literacy Enhancement Act''.
                  (B) Section 4103a.--Section 4103A(c)(4) of title 38, 
                United States Code, is amended by striking ``Job 
                Training Partnership Act (29 U.S.C. 1501 et seq.))'' 
                and inserting ``Employment, Training, and Literacy 
                Enhancement Act)''.
                  (C) Section 4213.--Section 4213 of title 38, United 
                States Code, is amended by striking ``Job Training 
                Partnership Act (29 U.S.C. 1501 et seq.),'' and 
                inserting ``Employment, Training, and Literacy 
                Enhancement Act,''.
          (28) United states housing act of 1937.--Section 23 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437u) is 
        amended--
                  (A) in subsection (b)(2)(A), by striking ``the Job 
                Training'' and all that follows through ``or the'' and 
                inserting ``the Employment, Training, and Literacy 
                Enhancement Act or the'';
                  (B) in the first sentence of subsection (f)(2), by 
                striking ``programs under the'' and all that follows 
                through ``and the'' and inserting ``programs under 
                title II, III, or IV of the Employment, Training, and 
                Literacy Enhancement Act and the''; and
                  (C) in subsection (g)--
                          (i) in paragraph (2), by striking ``programs 
                        under the'' and all that follows through ``and 
                        the'' and inserting ``programs under title II, 
                        III, or IV of the Employment, Training, and 
                        Literacy Enhancement Act and the''; and
                          (ii) in paragraph (3)(H), by striking 
                        ``program under'' and all that follows through 
                        ``and any other'' and inserting ``program under 
                        title II, III, or IV of the Employment, 
                        Training, and Literacy Enhancement Act and any 
                        other''.
          (29) Housing act of 1949.--Section 504(c)(3) of the Housing 
        Act of 1949 (42 U.S.C. 1474(c)(3)) is amended by striking 
        ``pursuant to'' and all that follows through ``or the'' and 
        inserting ``pursuant to the Employment, Training, and Literacy 
        Enhancement Act or the''.
          (30) Older americans act of 1965.--
                  (A) Section 203.--Section 203 of the Older Americans 
                Act of 1965 (42 U.S.C. 3013) is amended--
                          (i) in subsection (a)(2), by striking the 
                        last sentence and inserting the following: ``In 
                        particular, the Secretary of Labor and the 
                        Secretary of Education shall consult and 
                        cooperate with the Assistant Secretary in 
                        carrying out the Employment, Training, and 
                        Literacy Enhancement Act of 1997.''; and
                          (ii) in subsection (b), by striking paragraph 
                        (1) and inserting the following:
          ``(1) the Employment, Training, and Literacy Enhancement 
        Act,''.
                  (B) Section 502.--Section 502 of the Older Americans 
                Act of 1965 (42 U.S.C. 3056) is amended--
                          (i) in subsection (b)(1)(N)(i), by striking 
                        ``the Job Training Partnership Act (29 U.S.C. 
                        1501 et seq.)'' and inserting ``the Employment, 
                        Training, and Literacy Enhancement Act''; and
                          (ii) in subsection (e)(2)(C), by striking 
                        ``programs carried out under section 124 of the 
                        Job Training Partnership Act (29 U.S.C. 1534)'' 
                        and inserting ``employment and training 
                        activities carried out under title III of the 
                        Employment, Training, and Literacy Enhancement 
                        Act''.
                  (C) Section 503.--Section 503(b)(1) of the Older 
                Americans Act of 1965 (42 U.S.C. 3056a(b)(1)) is 
                amended by striking ``the Job Training Partnership 
                Act,'' each place it appears and inserting ``the 
                Employment, Training, and Literacy Enhancement Act,''.
          (31) Omnibus crime control and safe streets act of 1968.--
        Section 1801(b)(3) of the Omnibus Crime Control and Safe 
        Streets Act of 1968 (42 U.S.C. 3796ee(b)(3)) is amended by 
        striking ``Job Training Partnership Act (relating to Job Corps) 
        (29 U.S.C. 1691 et seq.)'' and inserting ``Employment, 
        Training, and Literacy Enhancement Act''.
          (32) Environmental programs assistance act of 1984.--The 
        second sentence of section 2(a) of the Environmental Programs 
        Assistance Act of 1984 (42 U.S.C. 4368a(a)) is amended by 
        striking ``Job Training Partnership Act'' and inserting 
        ``Employment, Training, and Literacy Enhancement Act''.
          (33) Domestic volunteer service act of 1973.--
                  (A) Section 103.--Section 103(d) of the Domestic 
                Volunteer Service Act of 1973 (42 U.S.C. 4953(d)) is 
                amended in the second sentence to read as follows: 
                ``Whenever feasible, such efforts shall be coordinated 
                with a local workforce development board established 
                under section 122 of the Employment, Training, and 
                Literacy Enhancement Act.''.
                  (B) Section 109.--Subsections (c)(2) and (d)(2) of 
                section 109 of the Domestic Volunteer Service Act of 
                1973 (42 U.S.C. 4959) is amended by striking ``Job 
                Training Partnership Act'' and inserting ``Employment, 
                Training, and Literacy Enhancement Act''.
          (34) Age discrimination act of 1975.--Section 304(c)(1) of 
        the Age Discrimination Act of 1975 (42 U.S.C. 6103(c)(1)) is 
        amended by striking ``the Comprehensive Employment and Training 
        Act of 1974 (29 U.S.C. 801 et seq.), as amended,'' and 
        inserting ``the Employment, Training, and Literacy Enhancement 
        Act''.
          (35) Energy conservation and production act.--Section 
        414(b)(3) of the Energy Conservation and Production Act (42 
        U.S.C. 6864(b)(3)) is amended by striking ``the Comprehensive 
        Employment and Training Act of 1973'' and inserting ``the 
        Employment, Training, and Literacy Enhancement Act''.
          (36) National energy conservation policy act.--Section 233 of 
        the National Energy Conservation Policy Act (42 U.S.C. 6873) is 
        amended, in the matter preceding paragraph (1), by striking 
        ``the Comprehensive Employment and Training Act of 1973'' and 
        inserting ``the Employment, Training, and Literacy Enhancement 
        Act''.
          (37) Community economic development act of 1981.--Section 
        617(a)(3) of the Community Economic Development Act of 1981 (42 
        U.S.C. 9806(a)(3)) is amended by striking ``activities such as 
        those described in the Comprehensive Employment and Training 
        Act'' and inserting ``employment and training activities 
        described in the Employment, Training, and Literacy Enhancement 
        Act''.
          (38) Stewart b. mckinney homeless assistance act.--Section 
        103(b)(2) of the Stewart B. McKinney Homeless Assistance Act 
        (42 U.S.C. 11302(b)(2)) is amended by striking ``the Job 
        Training Partnership Act'' and inserting ``the Employment, 
        Training, and Literacy Enhancement Act''.
          (39) National and community service act of 1990.--
                  (A) Section 177.--Section 177(d) of the National and 
                Community Service Act of 1990 (42 U.S.C. 12637(d)) is 
                amended by striking ``Job Training Partnership Act'' 
                each place it appears and inserting ``Employment, 
                Training, and Literacy Enhancement Act''.
                  (B) Section 198c.--Section 198C of the National and 
                Community Service Act of 1990 (42 U.S.C. 12653c) is 
                amended--
                          (i) in subsection (b)(1), by striking ``a 
                        military installation described in section 
                        325(e)(1) of the Job Training Partnership Act 
                        (29 U.S.C. 1662d(e)(1)).'' and inserting ``a 
                        military installation being closed or realigned 
                        under--
                  ``(A) the Defense Base Closure and Realignment Act of 
                1990 (part A of title XXIX of Public Law 101-510; 10 
                U.S.C. 2687 note); and
                  ``(B) title II of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (Public 
                Law 100-526; 10 U.S.C. 2687 note).''; and
                          (ii) in subsection (e)(1)(B), by striking 
                        clause (iii) and inserting the following:
                  ``(iii) an at-risk youth (as defined in section 4 of 
                the Employment, Training, and Literacy Enhancement 
                Act).''.
                  (C) Section 199l.--Section 199L(a) of the National 
                and Community Service Act of 1990 (42 U.S.C. 12655m(a)) 
                is amended by striking ``the Job Training Partnership 
                Act (29 U.S.C. 1501 et seq.)'' and inserting ``the 
                Employment, Training, and Literacy Enhancement Act''.
          (40) Cranston-gonzalez national affordable housing act.--
                  (A) Section 454.--Subparagraphs (H) and (M) of 
                subsection (c)(2), and subsection (d)(7), of section 
                454 of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 12899c) are amended by striking 
                ``the Job Training Partnership Act'' and inserting 
                ``the Employment, Training, and Literacy Enhancement 
                Act''.
                  (B) Section 456.--The first sentence of section 
                456(e) of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 12899e(e)) is amended by 
                striking ``the Job Training Partnership Act'' each 
                place it appears and inserting ``the Employment, 
                Training, and Literacy Enhancement Act''.
          (41) Violent crime control and law enforcement act of 1994.--
        Section 31113(a)(4)(C) of the Violent Crime Control and Law 
        Enforcement Act of 1994 (42 U.S.C. 13823(a)(4)(C)) is amended 
        by inserting after ``the Job Training Partnership Act (29 
        U.S.C. 1501 et seq.)'' the following: ``, title II, III, or IV 
        of the Employment, Training, and Literacy Enhancement Act,''.
          (42) Personal responsibility and work opportunity 
        reconciliation act of 1996.--Section 403(c)(2)(K) and section 
        423(d)(11) of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (8 U.S.C. 1613(c)(2)(K) and 1138a 
        note) are amended by striking ``Job Training Partnership Act'' 
        each place it appears and inserting ``Employment, Training, and 
        Literacy Enhancement Act''.

           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

SEC. 1001. EFFECTIVE DATE.

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

SEC. 1002. TRANSITION PROVISIONS.

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

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

              TITLE XXI--AMENDMENTS TO GENERAL PROVISIONS

SEC. 2101. REHABILITATION SERVICES ADMINISTRATION.

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

SEC. 2102. DEFINITIONS.

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

SEC. 2103. REPORTS.

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

      TITLE XXII--AMENDMENTS TO VOCATIONAL REHABILITATION SERVICES

                     Subtitle A--General Provisions

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

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

SEC. 2202. STATE PLANS.

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

SEC. 2203. SCOPE OF VOCATIONAL REHABILITATION SERVICES.

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

SEC. 2204. STATE REHABILITATION ADVISORY COUNCIL.

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

SEC. 2205. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

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

SEC. 2206. MONITORING AND REVIEW.

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

          Subtitle B--Basic Vocational Rehabilitation Services

SEC. 2211. STATE ALLOTMENTS.

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

SEC. 2212. PAYMENTS TO STATES.

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

SEC. 2213. CLIENT ASSISTANCE PROGRAM.

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

            TITLE XXIII--AMENDMENTS TO RESEARCH AND TRAINING

SEC. 2221. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

     TITLE XXIV--AMENDMENTS TO TRAINING AND DEMONSTRATION PROJECTS

  Subtitle A--Training Programs and Community Rehabilitation Programs

SEC. 2231. TRAINING.

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

SEC. 2232. REPEALERS.

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

SEC. 2233. AUTHORIZATION OF APPROPRIATIONS.

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

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

        Subtitle B--Special Projects and Supplementary Services

SEC. 2241. SPECIAL DEMONSTRATION PROGRAMS

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

SEC. 2242. MIGRATORY WORKERS.

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

SEC. 2243. REPEALERS.

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

SEC. 2244. SPECIAL RECREATIONAL PROGRAMS.

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

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

        TITLE XXV--AMENDMENTS TO NATIONAL COUNCIL ON DISABILITY

SEC. 2251. AUTHORIZATION OF APPROPRIATIONS.

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

             TITLE XXVI--AMENDMENTS TO RIGHTS AND ADVOCACY

SEC. 2261. EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.

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

SEC. 2262. ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD.

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

SEC. 2263. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

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

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

SEC. 2271. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 2272. REPEALERS.

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

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

SEC. 2281. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

 TITLE XXIX--AMENDMENTS TO SPECIAL DEMONSTRATIONS AND TRAINING PROJECTS

SEC. 2291. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 2292. DEMONSTRATION ACTIVITIES.

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

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

  ``(a) Grants.--The Commissioner may make grants to States and public 
or nonprofit agencies and organizations to pay all or part of the costs 
of projects to demonstrate ways to increase client choice in the 
rehabilitation process, including the selection of providers of 
vocational rehabilitation services.
  ``(b) Use of Funds.--An entity that receives a grant under this 
section shall use the grant only--
          ``(1) for activities that are directly related to planning, 
        operating, and evaluating the demonstration projects; and
          ``(2) to supplement, and not supplant, funds made available 
        from Federal and non-Federal sources for such projects.
  ``(c) Application.--Any eligible entity that desires to receive a 
grant under this section shall submit an application at such time, in 
such manner, and containing such information and assurances as the 
Commissioner may require, including--
          ``(1) a description of--
                  ``(A) how the applicant intends to promote increased 
                client choice in the rehabilitation process, including 
                a description, if appropriate, of how an applicant will 
                determine the cost of any service or product offered to 
                an eligible client;
                  ``(B) how the applicant intends to ensure that any 
                vocational rehabilitation service or related service is 
                provided by a qualified provider who is accredited or 
                meets such other quality assurance and cost-control 
                criteria as the State may establish; and
                  ``(C) the outreach activities to be conducted by the 
                applicant to obtain eligible clients; and
          ``(2) assurances that a written plan will be established with 
        the full participation of the client, which plan shall, at a 
        minimum, include--
                  ``(A) a statement of the vocational rehabilitation 
                goals to be achieved;
                  ``(B) a statement of the specific vocational 
                rehabilitation services to be provided, the projected 
                dates for their initiation, and the anticipated 
                duration of each such service; and
                  ``(C) objective criteria, an evaluation procedure, 
                and a schedule, for determining whether such goals are 
                being achieved.
  ``(d) Award of Grants.--In selecting entities to receive grants under 
subsection (a), the Commissioner shall take into consideration the--
          ``(1) diversity of strategies used to increase client choice, 
        including selection among qualified service providers;
          ``(2) geographic distribution of projects; and
          ``(3) diversity of clients to be served.
  ``(e) Records.--Entities that receive grants under subsection (a) 
shall maintain such records as the Commissioner may require and comply 
with any request from the Commissioner for such records.
  ``(f) Direct Services.--At least 80 percent of the funds awarded for 
any project under this section shall be used for direct services, as 
specifically chosen by eligible clients.
  ``(g) Evaluation.--The Commissioner shall conduct an evaluation of 
the demonstration projects with respect to the services provided, 
clients served, client outcomes obtained, implementation issues 
addressed, the cost effectiveness of the project, and the effects of 
increased choice on clients and service providers. The Commissioner may 
reserve funds for the evaluation for a fiscal year from the amounts 
appropriated to carry out projects under this section for the fiscal 
year.
  ``(h) Definitions.--For the purposes of this section:
          ``(1) Direct services.--The term `direct services' means 
        vocational rehabilitation services, as described in section 
        103(a).
          ``(2) Eligible client.--The term `eligible client' means an 
        individual with a disability, as defined in section 7(8)(A), 
        who is not currently receiving services under an individualized 
        written rehabilitation program established through a designated 
        State unit.''.

SEC. 2293. TRAINING ACTIVITIES.

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

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

SEC. 2295. AUTHORIZATION OF APPROPRIATIONS.

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

                       TITLE XXXI--EFFECTIVE DATE

SEC. 2297. EFFECTIVE DATE.

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

                                Purpose

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

                            Committee Action

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

   Introduction of Employment, Training and Literacy Enhancement Act

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

                           Legislative Action

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

                                Summary

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

                      TITLE I--GENERAL PROVISIONS

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

  TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                                 GRANT

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

             TITLE III--ADULT EMPLOYMENT AND TRAINING GRANT

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

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

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

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

    Title V consolidates several adult education and literacy 
programs into a single block grant to the States. Funds 
distributed to local adult education providers, through the 
States, are to be used to provide adult education and family 
literacy services to qualifying adults. The authorization for 
the National Institute for Literacy is contained under this 
Title. Title V also provides a framework to help ensure that 
adult education programs are closely aligned with federal job 
training programs.

                   TITLE VI--MISCELLANEOUS PROVISIONS

    Title VI includes repealers and conforming amendments.

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

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

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

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

             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

    Title IX includes additional technical and conforming 
amendments.

           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

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

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

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

                            Committee Views

    For years, concerns have mounted regarding this nation's 
confusing array of job training and employment-assistance 
programs. In 1993, the U.S. General Accounting Office 
identified as many as 163 different Federal programs which 
offer some form of education, job training or employment 
assistance for youth and adults. In addition to the excessive 
number of Federal programs, the quality of U.S. training 
programs varies significantly. At a time when the skill 
requirements of the U.S. workforce are at an all-time high, 
this country can no longer tolerate such inefficiency.
    After careful consideration of this issue, and 
comprehensive hearings over the past three years, the Committee 
has developed legislation to take an important step in 
addressing these concerns. H.R. 1385, the ``Employment, 
Training, and Literacy Enhancement Act of 1997'' consolidates 
over 60 existing employment, training, and literacy programs 
through the establishment of three block grants to States and 
localities, and through amendments to the Rehabilitation Act of 
1973. However, in development of this legislation the Committee 
determined not to include K-12 school-based programs for 
consolidation or reform in this bill, which accounted for many 
of the programs identified by the GAO in its earlier reports.
    The consolidation in H.R. 1385 eliminates unnecessary 
duplication and fragmentation within employment, training, and 
literacy programs, while providing States and localities with 
the necessary flexibility to design programs to meet the needs 
in their communities of disadvantaged youth, dislocated workers 
and other adults in need of employment and training assistance, 
and individuals with basic skills deficiencies. The bill is 
based upon three guiding principles for reform:
    Individual choice:
          Providing individuals with choice in the selection of 
        employment options and training providers to meet their 
        personal needs through vouchers (skill grants).
    Quality training For the 21st century:
          Establishing a level playing field, where the best 
        providers of employment and training services, 
        including private sector providers, are able to compete 
        to provide services.
          Providing up-to-date information on jobs that are 
        available within local communities, the skills that are 
        necessary for such jobs, and training opportunities 
        within the community.
          Involving employers in the design and implementation 
        of employment and training programs to ensure they are 
        relevant to the skill needs of business in the 
        community.
    Reforming the system by driving resources and authority to 
local communities:
          Transferring responsibility for the design and 
        implementation of programs to States and local 
        communities.
          Consolidating existing Federal job training 
        programs--providing States and local communities easier 
        access to funding for workforce development programs 
        that best meet the needs of their individual States and 
        localities.
          Encouraging further program consolidation and 
        integration at the State and local levels, by removing 
        barriers in Federal statutes to such reforms.
          Increasing ease of access to high quality employment, 
        training, and adult education and literacy services.
    These principles appear to be very consistent with those 
expressed by Utah's State Senator David Steele in testimony 
provided to the Committee at the February 11 hearing on reform 
of employment and training programs. At that hearing, Senator 
Steele, testifying on behalf of the National Conference of 
State Legislatures, described the features that are included in 
Utah's reform legislation and that he considered as essential 
in the reform of workforce programs--``These features include: 
a user friendly or customer driven design; regional workforce 
service councils; a provision for ``one stop'' services; a 
planning process that involved both the legislative and 
executive branches of State government; and a commitment to the 
continuous improvement of the system.''

           TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS

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

            State Plan and Collaborative Process Provisions

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

                               State Plan

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

                         Collaborative Process

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

           Establishment of Local Workforce Development Areas

    The bill requires that States desiring to receive a grant 
under this Act, designate local geographic areas, called 
workforce development areas for the purpose of distributing 
funds and the delivery of services in local employment and 
training programs. In the designation of such areas, the 
Governor must work through the collaborative process, consult 
with local chief elected officials, and consider comments 
received through the public participation process (described in 
the State plan). Such areas must be consistent with local labor 
market areas, and must be designated taking into consideration 
existing units of general local government, geographic areas 
served by local educational agencies and intermediate 
educational agencies, geographic areas served by postsecondary 
institutions and area vocational education schools, service 
delivery areas previously established under the Job Training 
Partnership Act, and the distance that individuals will need to 
travel to receive services.

          Establishment of Local Workforce Development Boards

    The bill requires Governors, through the collaborative 
process, to establish workforce development boards within each 
local workforce development area and to establish criteria for 
use by local chief elected officials in the selection of 
members of such boards.
    During the development of this bill, the Committee decided 
to assign responsibility for the actual design and operation of 
local employment and training programs to the local level. 
Further, there was a decision made to fully involve employers 
in the design of such local programs. For this reason, local 
workforce development boards, with a majority representation of 
business and industry, are required in each workforce 
development area for the receipt of funding and design of local 
workforce development systems. The establishment of local 
boards is consistent with the testimony received by the 
Committee on job training reform, including testimony provided 
at the March 4th hearing by Ms. Susan Kelley, Vice President of 
Valencia Community College in Orlando, Florida. In her remarks, 
Ms. Kelley explained that ``results that are meaningful to 
local business and industry should drive the system. While 
broad benchmark categories should be included in the federal 
legislation, the only people who can truly tell us what 
improvements are desirable and attainable, and which areas of 
concentration will produce the greatest good in terms of local 
economic development, are in our local business community. We 
all know that is true, and there is no excuse not to place the 
system in their hands. Local boards must be required, and they 
must have a minimum of 51 percent private sector membership.''
    By amending the Job Training Partnership Act, replacing 
existing Private Industry Councils (PICs) with local workforce 
development boards, there is no longer the assumption that 
private industry councils (PICs) as established under JTPA will 
continue to exist, and as such, there is no presumptive 
designation of PICs as workforce development boards. However, 
local areas may reconstitute existing private industry councils 
to serve as local workforce development boards in areas where 
the PIC is exceptionally strong. The Committee encourages 
Governors, the individuals involved in the collaborative 
process, and local chief elected officials to consider 
carefully such redesignation to determine whether or not 
existing private industry councils are capable of fulfilling 
the added responsibilities assigned to workforce development 
boards under this Act. The Committee urges Governors, local 
elected officials, and other decision makers, to ensure that 
changes are made where change needs to occur, in order to have 
the strongest employment and training programs possible.
    Workforce development boards must at a minimum, consist of 
a majority of members who are representatives of business and 
industry, including individuals who are owners of businesses, 
chief executives or chief operating officers of private 
business, and other business executives with optimum policy 
making authority in local businesses. These business 
representatives must be selected from among a list of nominees 
submitted by local business organizations and trade 
associations.
    In addition, the local board must include: representatives 
of education, including representatives of local educational 
agencies, school boards, postsecondary institutions(including 
community colleges), and representatives of adult education and 
literacy providers, selected from among individuals nominated by 
regional or local educational agencies, institutions, or organizations 
representing such individuals or entities. The bill also requires that 
the following groups be appointed to serve on the local boards: 
representatives of community-based organizations (including as 
appropriate, organizations with experience in serving individuals with 
disabilities); representatives of employees (which may include labor); 
and representatives of the public who may include program participants, 
parents, individuals with disabilities, older workers, veterans, or 
organizations serving such individuals. Such members of local boards 
shall also be selected from nominations of regional or local agencies, 
institutions, or organizations representing such individuals or 
entities in the local area. Finally, representatives of local welfare 
and economic development agencies are required to serve on local boards 
as well.
    While the bill contains no further language regarding the 
types of individuals who must be represented from the above-
listed categories, the Committee urges the selection of 
individuals with decision-making capability. For example, 
individuals representing local educational agencies are 
encouraged to be chosen from nominees including superintendents 
of schools or local school board members. Similarly, we 
recommend that individuals representing postsecondary 
institutions be chosen from nominees including college 
presidents and college board members or trustees. These boards 
will only be as successful as the collective abilities of their 
membership.
    Governors are provided the authority to certify biennially 
local workforce development boards in order to ensure 
compliance with the State's selection criteria and overall 
policies set for such boards. However, local boards are 
authorized to elect their own chairperson from among their 
members, and to establish bylaws and other operating procedures 
as consistent with the purposes of the Act and with the State 
plan.
    Recognizing that some States, particularly very small and 
sparsely populated States, will be composed of only one 
workforce development area, the bill allows that the 
individuals comprising the Governor's collaborative process may 
be reconstituted to serve the functions of a local workforce 
development board for those States.
    Under the Committee bill, the role of the local workforce 
development board is significantly expanded over the role 
currently provided for private industry councils under JTPA. 
The local board is ultimately responsible for development of a 
local strategic workforce development plan and identification 
of occupations in demand and the training needs of the local 
workforce development area. The board is responsible for: the 
selection of service providers (for both the full service 
employment and training delivery system, and for disadvantaged 
youth programs); budget and program oversight over 
disadvantaged youth programs established under title II, adult 
employment and training programs established under title III, 
and the local full service employment and training delivery 
systems.
    Local boards are authorized to receive and disburse funds 
made available for carrying out the above-listed programs or 
may designate an administrative entity for the purpose of 
disbursement of funds to full service providers and other 
service providers, as designated by the local board. The board 
may employ its own staff, independent of local programs and 
service providers. However, due to the expanded 
responsibilities of the workforce board, as well as to attract 
higher level business representatives, boards may not directly 
provide services authorized under this legislation, unless they 
receive a waiver from the Governor to do so. While the 
Committee bill includes the waiver authority, Members of the 
Committee strongly urge Governors to provide such waivers only 
on rare occasions, where necessary either to improve program 
performance, or in order to provide a full array of services, 
as may be particularly necessary in rural areas where a 
competitive selection process has produced no other qualified 
service providers with demonstrated expertise. In other words, 
the local boards should be the service providers of last 
resort. This is a significant change from current law.
    Local boards, in combination with local chief elected 
officials are also assigned the responsibility of negotiating 
with the Governor on local benchmarks for the workforce 
development area and on the role of local boards in the 
selection of service providers in the full service employment 
and training delivery system.

                    Role of Local Elected Officials

    Local elected officials continue to play a key role in the 
design and implementation of local employment and training 
systems for adults and for disadvantaged youth. Local officials 
appoint members of the local workforce development board under 
the bill. The local board is required to consult with the chief 
elected official in development of the local plan and the local 
official may approve the plan or reject it and make 
recommendations to the board on how to improve the plan. If 
after a reasonable effort the local board is unable to obtain 
approval of the local chief elected official, the plan may be 
submitted to the Governor, but only with the recommendations of 
the chief elected official. In addition, consistent with 
current law, local boards are required to provide opportunity 
for review and comment on the local plan to community-based 
organizations, local education and other social service 
agencies, local business organizations, representatives of 
employees, and the general public, prior to submission of the 
plan to the Governor.
    Local officials are authorized to approve local budgets and 
have joint oversight authority with the local board over 
programs authorized under titles II and III of this Act. Local 
governments may also be designated by the board as the 
administrative entity for local workforce development systems, 
and may compete to provide services through the full service 
employment and training delivery system. Finally, as previously 
mentioned, local officials, along with local boards, negotiate 
with the Governor on local benchmarks against which the 
performance of the local workforce development area will be 
measured and on the role of the local board in designating 
providers for participation in the full service employment and 
training delivery system.
    This legislation intentionally elevates the role of local 
boards in local employment and training delivery systems, 
illustrating the Committee's recognition of the importance of 
employer buy-in and involvement in the design of the local 
system. However, the Committee also recognizes the important 
role of local elected officials to an effective employment and 
training system and is committed to the continuance of such a 
vital role.
    With the increased responsibility bestowed upon local 
workforce development boards, the Committee felt it very 
important to provide strong conflict of interest language in 
the bill. Therefore the bill provides that no member of a 
workforce development board may cast a vote or participate in 
the consideration of the provision of services that in any way 
provides financial benefit to such member, an organization that 
such member represents, or to an immediate family member of 
such member. In addition, a Governor may enforce more rigorous 
conflict of interest standards, as determined appropriate.

 Establishment of Local Full Service Employment and Training Delivery 
                                Systems

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

                  Identification of Training Providers

    H.R. 1385 establishes a process for identifying training 
providers who are qualified to provide training services under 
the Adult Employment and Training program authorized under 
title III of the bill. Because this legislation builds on the 
use of skill grants (vouchers) for the provision of training 
services, establishment of such an identification process is 
essential to identify qualified providers and to guard against 
``fly-by-night'' providers that may take advantage of program 
participants.
    Eligibility. The bill establishes two ways for training 
programs to become eligible to provide services under the title 
III program. First, training programs that lead to an 
associate, baccalaureate, professional, or graduate degree; 
that are at least two academic years in length and acceptable 
for academic credit toward a baccalaureate degree; or are at 
least one academic year in length, lead to a certificate, 
degree, or other recognized educational credential and prepare 
a participant for gainful employment in a recognized 
occupation; and that are offered by postsecondary institutions 
that are currently eligible under title IV of the Higher 
Education Act of 1965 are automatically eligible to provide 
training services under the adult employment and training 
programs. Second, all other providers may become eligible to 
provide training if determined eligible by a local workforce 
development board, through an alternative eligibility procedure 
developed by the Governor for use by all local boards in the 
State. As part of each State's alternative eligibility 
procedure, Governors must establish minimum acceptable levels 
of performance for training programs which must be taken into 
account by local boards when determining eligibility.
    Performance Reporting. All participating training providers 
under the title III program must submit performance-based 
information on participating programs to a State agency 
designated by the Governor that is responsible for compiling 
and disseminating such information. This State agency is also 
responsible for compiling the list of eligible providers of 
training throughout the State. This information is then sent to 
local boards, who in turn provide such information, through the 
full service employment and training delivery system to 
individuals in need of training assistance. This information 
gathering and dissemination process is essential so individuals 
are empowered to make informed choices in their selection of 
occupations and training providers.
    Performance information that is required for submission 
includes: program completion rates for individuals in the 
applicable programs conducted by the provider; the percentage 
of individuals in the applicable programs who obtain 
employment, which may also specify the percentage of 
individuals who obtain employment in an occupation related to 
the program conducted; and, the earnings at placement of 
individuals who complete the program.
    The Governor may also require that providers submit 
additional performance information, which may include 
information relating to: the retention in employment and the 
subsequent earnings of the individuals who complete the 
applicable program; where appropriate, the rates of licensure 
or certification of individuals who complete the program; the 
percentage of individuals who complete the program who attain 
industry-recognized occupational skills in the subject, 
occupation, or industry for which training is provided, where 
applicable; and the adequacy of space, staff, equipment, 
instructional materials, and student support services offered 
by the provider through a program conducted by the provider. 
However, if the additional information requested by the 
Governor imposes extraordinary costs on providers, the Governor 
must provide access to cost-effective methods for the 
collection of such information or provide additional resources 
to assist providers in the collection of such information from 
funds made available under the adult employment and training 
program.
    Transition. For program years 1999 and 2000, the 
performance-based information that is required of training 
providers need only to pertain to participants who are actually 
served through the title III adult employment and training 
programs.
    Enforcement Authority. In addition to other enforcement 
authority, the State is vested with authority to terminate the 
eligibility of training providers for consistent and 
substantial failure to meet performance criteria established by 
the State. The State is also authorized to terminate such 
eligibility if the State agency or a local board determines 
that an eligible provider substantially violates any 
requirement under this Act. The bill includes an appeal process 
for training providers that are either denied eligibility or 
whose eligibility is terminated.
    Exceptions. Providers of on-the-job training and registered 
apprenticeship programs are not subject to the eligibility 
requirements under this section, but on-the-job training 
providers must provide performance information if required by 
the Governor.
    The bill recognizes the importance of including the private 
sector as providers of training services under local employment 
and training programs. Since 1980, private professional firms 
have developed extensive programs to serve the growing training 
needs of our rapidly changing economy and workforce. Research 
indicates that the training market in the information 
technology training industry alone totaled $2 billion in 1994, 
most of this provided by commercial firms. This section of H.R. 
1385 enables a wide variety of training and education providers 
to participate in adult job training programs. This expanded 
provider involvement allows participants to access training 
that will best enable them to enter or re-enter the workforce.

                       Performance Accountability

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

                Fiscal and General Program Requirements

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

  TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                                 GRANTS

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

     TITLE III--ADULT EMPLOYMENT AND TRAINING CONSOLIDATION GRANTS

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

                       National Emergency Grants

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

                     TITLE IV--NATIONAL ACTIVITIES

                            Native Americans

    The Committee has provided for a continuation of services 
to Indians, Alaska Natives and Native Hawaiians. Section 401 
addresses the unique relationship between these populations and 
the Federal government. Services are to be implemented in a 
manner consistent with overall Federal policy toward these 
groups.
    The committee is aware that these groups experience the 
highest unemployment rates of all other populations in the 
American work force. This is due, in large part, to a lack of 
educational and employment and training opportunities. As a 
result, the ability of Native Americans to locate and retain 
employment and to successfully compete in the work force is 
seriously impaired.
    This section authorizes a wide range of services and 
support for a variety of types of Native American service 
providers. In general, the Committee intends that available 
funds be distributed in such a way that the various 
constituencies served by these programs continue to receive 
services proportional to those received in the past.
    In order to ensure that these services are effective in 
addressing special Native American needs, the organizational 
unit in the Labor Department with responsibility for this 
section should have particular competence in the administration 
of programs for this service population and be staffed 
accordingly.
    The Committee points out that Indian, Alaska Native and 
Native Hawaiian service providers are also eligible, consistent 
with other provisions in the bill, to receive funds under the 
various block grants administered by the States.

                   Migrants and Seasonal Farmworkers

    The Congress recognizes that this program will be the main 
source of Federal assistance in meeting migrant and seasonal 
farmworkers' and their dependents' employment, training, 
education, and other supportive service needs. These 
investments assist farmworkers to obtain or retain stable 
employment, both within and outside of agriculture, to provide 
development and other educational assistance to enhance their 
employability, and to provide emergency assistance and other 
supportive services that will stabilize and improve their 
agricultural employment situation. In addition, the Committee 
recognizes that eligible activities under this part include 
single purpose grants for training and technical assistance for 
housing and related facilities for migrant and seasonal 
farmworkers.
    The Committee is aware of the quality, innovation, and 
cost-effectiveness of services and assistance provided to 
farmworker grantees by the Association of Farmworker 
Opportunity Programs (AFOP) and encourages the Department to 
continue their activities, including technical assistance and 
training, development and implementation of a farmworker 
database and other information technologies anddevelopments 
that can further improve the capabilities of grantees funded under this 
part. The Secretary must consult with farmworker organizations, such as 
AFOP and grantees prior to the promulgation of policies, rules, 
regulations, and performance standards or measures relating to migrant 
and seasonal farmworkers and farmworker programs.
    Due to the changing nature of agricultural employment both 
within and outside of the United States that affects the U.S. 
domestic farmworker population, Congress urges the Department 
to be responsive to these changes and periodically review and 
make necessary adjustments to ensure a quality program for 
migrant and seasonal farmworkers.

                     Labor Market Information (LMI)

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

            TITLE V--ADULT EDUCATION AND FAMILY LITERACY ACT

 Ensuring Program Flexibility to Meet the Diverse Needs of Participants

    The 1992 National Adult Literacy Survey, which measured the 
ability of individuals to read and understand words, to use 
documents effectively, and to perform tasks such as balancing a 
checkbook and totaling purchases, found that 20 percent of 
adults had minimal basic skills. In fact, of the five levels of 
literacy used in the survey, almost 50 percent of participants 
were found to be in the bottom two levels of literacy. Forty-
three percent of those in the lowest literacy level live in 
poverty, 17 percent were receiving food stamps and 70 percent 
were unemployed or under-employed. More than two-thirds of 
unwed parents, adults in poverty, school dropouts and arrestees 
have below average literacy levels.
    In developing the Employment, Training and Literacy 
Enhancement Act, the Committee took these needs into 
consideration. The Committee also recognized that the adult 
education and literacy delivery system is unlike the 
elementary, secondary, and postsecondary education systems in 
many important respects. This is a unique system characterized 
by a diverse group of providers, diverse students, and limited 
resources as demonstrated in the following examples.
    For the most part, those served in adult education are 
young adults. 58% are between the ages of 16-31. Many of these 
young people have dropped out of school and are trying to get 
back on the road to self sufficiency and opportunity. A 
subgroup of this population is clearly the young mother on AFDC 
who, under the various welfare reform proposals, will be 
required to find a job relatively quickly.
    Almost half the participants in this part of the American 
educational system are working. In other words, this is not a 
field that serves only the very poor and those unattached to 
the workforce. Many students are blue collar workers or 
dislocated workers who understand that to get ahead and provide 
for a family in 1995, it takes an education and the requisite 
skills.
    Not everyone participates in these programs solely to 
improve their employment prospects. Many are looking to become 
citizens, to help their children succeed in school, and to 
fulfill a variety of other personal, economic, and social 
goals. Most of these goals have serious implications for our 
national well-being.
    Providers of services in this system are many and varied. 
They include local education agencies, community colleges, 
community-based organizations, libraries, churches, and private 
businesses. The diversity of providers is both a strength and a 
challenge to building a high quality system. Service are 
located in the communities where they are most needed and 
easily accessible. But different programs often are not 
coordinated and lack shared information and resources to 
improve the quality of their services.
    The staffing of adult education and literacy programs is 
significantly different from that of elementary, secondary, and 
postsecondary education. The vast majority of adult education 
staff are part time professionals, working in isolation from 
the rest of the educational system, with little training and 
virtually no benefits. Only 25 percent of the teaching force is 
full time. Almost 75 percent of all programs have volunteers, 
most serving as tutors.
    Based on the diverse needs of adult students and the unique 
characteristics of the service delivery system, the Committee 
felt that the Adult Education and Family Literacy Act should 
provide the eligible agency within the state with the maximum 
flexibility to meet the needs of its constituency. The existing 
Adult Education law contained a number of set asides and caps. 
For example, current law sets forth the following caps and set-
asides: (a) not less than 10 percent of funds received by 
States are to be used for corrections education and education 
for other institutionalized individuals; (b) not more than 20 
percent of their allotment is to be used for high school 
equivalency programs, and (c) not less than 15 percent of funds 
they receive are to be used for experimental demonstrations and 
teacher training projects. H.R. 1385 eliminates these caps and 
set asides in the belief that the needs of those currently 
servedthrough the set-asides and reserves can be better met 
with a highly flexible, consolidated State grant.
    Section 313 of this legislation provides that States may 
retain 15 percent of their allotment for administrative 
expenses and State level activities related to adult education 
and literacy including technology assistance, professional 
development, State literacy resource centers, and support 
services such as transportation and child care for individuals 
who otherwise would be unable to participate in programs under 
this Act. Eligible agencies can use no more than 5 percentage 
points for State administration. Agencies which use less than 
five percentage points for administration can use remaining 
funds for other State level activities related to literacy.
    Eligible providers at the local level can use funds for 
adult education and literacy services, including services 
provided on the work site; family literacy services; and 
English literacy programs. They may retain 5 percent of their 
grant for administrative purposes.

           Focusing Our Efforts to Create a Literate Society

    According to a 1992 report entitled ``Study of Federal 
Funding Sources and Services for Adult Education,'' 84 programs 
in 11 agencies were identified as supporting adult education 
services between 1986 and 1988. Twenty-seven of these programs 
were categorized as primary programs in which adult education 
was explicitly stated as a priority objective in each program's 
authorizing legislation. Of these 27 programs, the dominant 
focus was basic skills and literacy.
    In addition, the Adult Education Act and the National 
Literacy Act authorizes a variety of small literacy programs 
which provide services which can be provided through basic 
adult education programs operated in each State. The Committee 
believes that the populations served by these small programs 
can be more effectively served under the Adult Education Act, 
which is more far-reaching than smaller programs and has the 
ability to provide a wider range of services to a greater 
number of participants.
    The Committee has, therefore, consolidated the adult 
education and literacy programs under its jurisdiction into a 
single block grant to the states. The block grant will be 
focused upon adult basic education programs, adult secondary 
education programs, programs providing English literacy 
instruction and family literacy programs. The consolidation 
increases the flexibility of States and local providers, to 
design and fund programs which best meet the needs of 
participants.

           Eligible Entities and Direct and Equitable Access

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

                            Family Literacy

    Family literacy programs have proven effective in reaching 
some of the most difficult to serve populations, including 
individuals with low literacy skills and those receiving 
welfare payments. In describing family literacy, Sharon 
Darling, Executive Director, National Center for Family 
Literacy, in her testimony before the Committee stated,

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

    Unfortunately, many children have parents who are under-
educated, have low literacy skills and lack the self-esteem 
necessary to be their child's first teacher. As a result, these 
children lack a strong literacy experience, lack reading 
readiness, and enter school behind their peers. By working with 
the entire family, family literacy programs not only assist 
parents in building their literacy and education skills, but 
they also provide educational assistance to their children to 
ensure that they do not experience educational failure. Family 
literacy programs have demonstrated their effectiveness in 
bringing about change in the home. Parents begin to read to 
their children and support their child's education. Over the 
long term, children whose parents participate in the program 
are less likely to need special education or to be held back in 
school. Participation in family literacy programs not only 
helps adults become self-sufficient, it empowers parents and 
provides them with the skills they need to work with schools to 
ensure their child receives the best possible education.
    Sharon Darling cited the results of a recent follow-up 
study of 200 representative families in four states, performed 
one to six years after attending a family literacy program and 
found that:
          51 percent of the adults had received a high school 
        equivalency certificate;
          43 percent were employed, compared to 14 percent 
        before enrolling;
          13 percent have enrolled in higher education or 
        training programs and another 11 percent are continuing 
        in adult education programs working toward GED 
        certification;
          Dependence on public assistance was reduced by 50 
        percent; and,
          The present primary teachers rate almost 80 percent 
        of former family literacy children at or above the 
        class average on such factors as attendance, classroom 
        behavior, relations with other children, motivation to 
        learn, family support for education, and probability of 
        success in school.
    For these reasons, we have added family literacy as one of 
the uses of funds for which these block grant dollars may be 
used under Section 314.

                      Strong Links to Job Training

    One of the primary changes in this legislation is the new 
connection between job training and adult education systems. 
Too many individuals seeking job training find themselves 
unable to benefit from programs because they do not have the 
literacy skills necessary to benefit from training programs.
    Increased employability is a priority outcome for adult 
basic education services--for both the individuals who need to 
strengthen their educational skills and for the communities in 
which they live and work. Testimony provided to the Committee 
by Mr. L. E. Bunch, Assistant Director, UAW-GM Center for Human 
Resources, which recognized the need to offer skill upgrading 
classes to employees and their spouses, pointed out the 
benefits of their adult education program:

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

    The ability of communities to attract and maintain high 
performance, high wage businesses and industries and the 
ability of individuals to obtain and retain good jobs at these 
workplaces have a common denominator: a strong educational 
foundation upon which responsive, flexible and high quality 
products and services can be built.
    The Employment, Training and Literacy Enhancement Act 
eliminates current barriers to strong partnerships between 
education and job training programs and involves the education 
community in the development of a State's job training system. 
This acknowledgment will address some of the current problems 
facing individuals with low literacy skills who are seeking 
training and employment. It is the view of the Committee that 
the current adult education system be strengthened in order to 
meet the job training demands under this legislation, as well 
as under welfare reform.

                         Maintenance of Effort

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

             Using Adult Education Funds For Other Purposes

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

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

    According to the most recent National Evaluation of Adult 
Education Programs (1995) (NEAEP), the number of participants 
enrolling in English as a Second Language (ESL) programs is on 
the increase. In the 1992-1993 program year, 40 percent of 
program participants were enrolled in ESL classes. In 1980, ESL 
learners constituted just under 20 percent of enrollees. This 
grew to 31 percent in 1992 and 1993 and, according to the NEAEP 
study, 46 percent of new enrollees entered ESL instruction.
    These are but a few examples of the types of assistance 
provided to individuals which are not related to employment but 
which assist them in completing the types of everyday tasks 
which individuals with good literacy skills take for granted. 
The Committee felt, therefore, that it was important to allow 
the continued use of funds for purposes other than employment-
related literacy programs.

                       Measuring Program Success

    In Section 154 of this Act, the Committee has set forth 
core indicators of performance for adult education and literacy 
programs, which States can use to monitor the success of adult 
education and literacy programs funded under this Act. While 
high school diplomas and GEDs are some of the more commonly 
used measures of program success, the Committee recognizes that 
there are other measures, particularly for individuals with low 
literacy levels. By setting broad parameters for measuring 
program success, the Committee has allotted to States the 
responsibility for establishing their own statewide goals and 
benchmarks for achieving those goals. At the same time, we will 
be able to monitor whether or not programs funded under this 
Act are effectively serving the diverse educational needs of 
individuals no longer in school. The Committee expects States 
to use information collected from local providers to improve 
programs and make decisions on the allocation of resources.

The National Institute for Literacy and State Literacy Resource Centers

    Section 321 of the Committee bill continues the 
authorization of the National Institute for Literacy. The 
National Institute for Literacy (NIFL) is a critical part of 
the national effort to improve the nation's system of adult 
education and literacy. The research, development, technical 
assistance, and information that the NIFL provides to State and 
local programs will be even more important as literacy 
providers work to meet the goals and performance standards 
required by this legislation. For example, the electronic 
information and communications network developed by the NIFL 
will provide the adult education and literacy field with up-to-
date information both from national sources and other State and 
local programs. Since literacy and basic skills education for 
adults and families is vital to attaining many of the nation's 
economic and social goals, the NIFL must provide leadership in 
creating more effective and efficient literacy services.
    The Committee intends for the NIFL to be a national 
resource for Federal agencies, States, and local employment and 
education programs as they implement the Employment, Training 
and Literacy Enhancement Act. The interagency nature of the 
NIFL is a perfect fit for the coordinated, consolidated human 
resource development system that is the goal of this 
legislation. The Committee expects the NIFL to continue in this 
role of working with the Departments of Labor, Education, and 
Health and Human Services and expects these Federal agencies to 
work closely with the NIFL to support its mission.
    In order to speed the replacement of members of the 
National Institute for Literacy Advisory Board, the Committee 
has modified current law to allow the Interagency Group (the 
Departments of Education, Labor, and Health and Human Services) 
to appoint members to the board. This is no reflection on the 
important role played by the Institute. Rather a response to a 
concern about the length of the Presidential appointment 
process.
    The Committee did not provide a separate line item for 
State Literacy Resource Centers. While the Committee believes 
the Centers serve a meaningful purpose, it is important at this 
time to focus as many dollars as possible on providing services 
at the local level. However, in view of the fact that these 
State centers provide an important link between States and 
local programs and the National Institute for Literacy and may 
not be continued without some type of Federal support, the 
Committee has included language in Section 314 allows 
individual States to fund these centers out of the funds they 
receive under this Act. Section 321 of the bill permits the 
National Institute for Literacy to fund a network of State or 
regional adult literacy resource centers to assist State and 
local public and private nonprofit efforts to improve literacy. 
The Institute is already funding a variety of activities 
through these centers and the Committee supports the continued 
funding of such activities.

            TITLE VIII--AMENDMENTS TO THE WAGNER-PEYSER ACT

    This Committee feels that because the Wagner-Peyser Act is 
financed almost exclusively by employers through the Federal 
Unemployment Tax Act (FUTA), there is an obligation to ensure 
that these funds are used for their intended purpose to 
maintain a national system of employment services. The 
amendments to the Wagner-Peyser Act ensure that its programs 
are fully coordinated with the full service employment and 
training delivery system proposed under this legislation.
    The Committee wants to stress the importance of the 
connection between the Employment Service (ES) and the 
Unemployment Insurance (UI) System. This linkage has been 
proven to move UI recipients back to work more quickly, thereby 
keeping unemployment taxes as low as possible.
    Amendments to the Wagner-Peyser Act reflect the need to 
have this statute be consistent with the changes and repeals of 
other job training programs under H.R. 1385. Specifically, 
conforming amendments have been changed throughout. In order to 
ensure coordination between the Employment Service Offices 
within the full service employment and training delivery 
system, the amendments clarify the role of the Secretary of 
Labor to oversee this process, as well as to establish 
accountability and performance measures for the Employment 
Service. The role of Governors is also enhanced under these 
amendments by providing them more authority over the funds 
provided under this Act, in accordance with State statute. In 
the past, some Governors have found it difficult to ensure that 
Employment Service funds in their State are coordinated with 
the overall employment and training strategy.
    In order to reduce the burden upon States in submitting 
multiple plans, amendments to Subsection (f), in combination 
with the State plan provisions of this legislation, require 
that the State plan under Wagner-Peyser be submitted as part of 
the State employment, training, and literacy plan. It is the 
Committee's intention that this will ensure even greater 
coordination between these systems. The bill also eliminates 
the statutory authority of the Federal Advisory Council.

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

                               Background

    The Rehabilitation Act of 1973 provides comprehensive 
Vocational Rehabilitation (VR) services to help individuals 
with physical and mental disabilities become employable and 
achieve independence and integration into society. The 
Rehabilitation Act was originally enacted in 1920 as a means of 
returning injured workers to their jobs. The program was 
expanded in 1943 to help meet the manpower shortage after the 
entry of the United States into World War II. Amendments in 
1973 gave service priority to persons with severe disabilities 
if such persons had employment potential. The 1978 amendments 
expanded the Act by adding a major new service category, 
comprehensive services for independent living, for persons with 
severe disabilities without current employment potential. 
Amendments in 1986 strengthened services to the severely 
disabled by authorizing employment services for persons unable 
to maintain competitive employment without special assistance.
    Amendments in 1992 reauthorized the Act for five years 
through FY 1997. Among other provisions, the law included 
amendments to establish a general presumption that persons with 
disabilities, including persons with severe disabilities, can 
benefit from VR services in terms of an employment outcome, 
unless the State VR agency can show evidence otherwise. This 
presumption allows some persons, who would not have otherwise 
been eligible, to enter the program. The amendments also 
required that eligibility for VR services be determined within 
60 days of application; increased client choice of VR services; 
and increased requirements for consumer control of 
rehabilitation policy and service delivery.

               The Need for a Future Comprehensive Review

    The public rehabilitation system has evolved over a 75 year 
history and has developed a degree of expertise and success in 
serving those individuals with disabilities who have the 
greatest needs. The Committee believes that the 1992 amendments 
to the Act made important changes to improve the nation's State 
vocational rehabilitation systems. Based on the Committee's 
review of the Act and its implementation, and evidence of 
difficulties with the program that have come out over the last 
five years, the Committee believes that the Act, particularly 
the Title I Vocational Rehabilitation Services program, merits 
a comprehensive review. Strong evidence supports the need for 
such a review.
    Testimony before this Committee has been mixed on the need 
for change and the scope of that change. During hearings this 
year, Judith Heumann, Assistant Secretary for the Office of 
Special Education and Rehabilitative Services noted that, 
``State VR agencies have been successful in increasing the 
numbers of individuals achieving an employment outcome.'' Yet 
later in her statement, she conceded that, ``we must increase 
employer involvement [and] continue our efforts to streamline 
the rehabilitation process.''
    At the same hearing, Paul Spooner, Executive Director of 
MetroWest Center for Independent Living in Framingham, 
Massachusetts presented a similarly mixed view of the current 
state of the vocational rehabilitation system. He said:

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

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

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

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

          The systems, procedures and required processes 
        imposed on providers of rehabilitation services are an 
        anachronism which somehow prevail despite the knowledge 
        that they are, in many respects, obstacles which limit 
        and compromise the effective and responsible delivery 
        of services for consumers. The public program of 
        vocational rehabilitation has created, over many 
        decades, a burdensome reliance on ``process'' which has 
        created an environment where value is placed on form 
        over substance.

    Public reports have been critical of the current system. In 
its 1993 study, the General Accounting Office pointed out 
emerging factors which are placing great strain on the 
centralized system:

          Effective vocational rehabilitation programs are 
        important for a number of reasons. First, a productive 
        and humane society is enhanced by the useful employment 
        of as many of its adult members as possible. Second, 
        statistics suggest that the population of Americans 
        with work disabilities may be increasing. Some scholars 
        have argued that recent reductions in the risk of death 
        from accidents and illnesses are associated with an 
        increasing risk of disability. And third, technological 
        developments such as the availability of assistive 
        devices and new behavioral training techniques have 
        made it possible for individuals who were previously 
        regarded as unemployable to enter the workplace.

    With these changes in the characteristics of the population 
needing services, additional strains are being placed on the 
system. From FY 1992 to FY 1993, the number of newly eligible 
persons increased by 24 percent, the highest intake level in 16 
years. Requirements added in the 1992 amendments have recently 
affected VR caseload trends. These included the presumption of 
benefits, and that VR agencies make eligibility determinations 
within 60 days of a person's application.
    In January 1997, the National Alliance for the Mentally Ill 
released a report entitled, ``A Legacy of Failure: The 
Inability of the Federal-State Vocational Rehabilitation System 
to Serve People with Mental Illness.'' That report strongly 
criticized the State system, stating that, ``the federal-state 
vocational rehabilitation system has achieved dismal outcomes 
in serving people with severe mental illness. It achieves a 
lower rate of closure into meaningful jobs as compared to 
others with physical disabilities and mental retardation.'' The 
report went on to conclude that, ``Most state vocational 
rehabilitation agencies show little initiative to revise 
existing procedures or to adopt systems that would create real 
incentives for counselors to serve consumers with complex 
needs, including those with severe mental illness.''
    Given the calls to action, the heavy criticism of the 
vocational rehabilitation system, and the dissent from that 
criticism, the Committee strongly believes that the 
Rehabilitation Act needs significant and careful review. 
Unfortunately, the Committee believes that it is unable at this 
time to provide the kind of in-depth legislative oversight that 
this program merits. The primary problem has been the uneven 
implementation of the 1992 Amendments. As noted by Mr. Spooner 
during the Committee's hearings, some States have implemented 
the regulations and some have not.
    The Department of Education bears significant 
responsibility for this problem. The Department failed to 
propose and finalize regulations implementing the 1992 State-
Federal program changes until February, 1997. It failed to 
implement changes to the Title VI Projects With Industry 
regulations until 1997. And, as of this time, the Department 
has yet to release even draft versions of the Standards and 
Indicators implementing regulations a full four and a half 
years after the passage of the 1992 Amendments. Although the 
historic practice in reviewing and authorizing this law has 
been to review the implementation of the Act, based on its 
implementation over the previous five years, the Committee does 
not believe that the 1992 Amendments have been implemented 
sufficiently or uniformly enough to properly review their 
results.

          Length of Authorization, Scope of Reforms and Views

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

                    Explanation of Other Amendments

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

                               Conclusion

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

                      Section-by-Section Analysis

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

        DIVISION A--EMPLOYMENT, TRAINING, AND LITERACY PROGRAMS

   TITLE I--AMENDMENTS TO GENERAL PROVISIONS AND PROGRAM REQUIREMENTS

                     Subtitle A--General Provisions

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

         Subtitle B--State and Local Administrative Provisions

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

               Subtitle C--Program and Fiscal Provisions

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

                  Subtitle D--Miscellaneous Provisions

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

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

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

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

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

       PART A--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

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

                       PART B--NATIONAL PROGRAMS

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

        TITLE IV--AMENDMENTS TO FEDERALLY ADMINISTERED PROGRAMS

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

                         Subtitle B--Job Corps

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

                    Subtitle C--National Activities

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

                         Subtitle D--Repealers

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

            TITLE V--AMENDMENTS TO ADULT EDUCATION PROGRAMS

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

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

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

                 ``Part A--Grants To Eligible Agencies

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

                      ``Part B--National Programs

    ``Section 321 sets forth the purposes, establishment, and 
duties of the National Institute for Literacy. Outlines 
authorized activities. Establishes and outlines the terms and 
operating procedures for a National Institute for Literacy 
Advisory Board.
    ``Section 322 allows the Secretary to establish and carry 
out a program of national leadership and evaluation activities. 
Sets forth activities for which funds may be used.''
    Section 503 repeals the National Literacy Act of 1991.
    Section 504 repeals subsection (b) of section 402 of the 
Refugee Education Assistance Act of 1980 and makes other Act 
conforming amendments.

                   TITLE VI--MISCELLANEOUS PROVISIONS

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

    TITLE VII--AMENDMENTS TO STATE HUMAN RESOURCE INVESTMENT COUNCIL

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

              TITLE VIII--AMENDMENTS TO WAGNER-PEYSER ACT

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

             TITLE IX--TECHNICAL AND CONFORMING AMENDMENTS

                     Subtitle A--Amendments to JTPA

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

                  Subtitle B--Amendments to Other Acts

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

           TITLE X--EFFECTIVE DATE AND TRANSITION PROVISIONS

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

             DIVISION B--VOCATIONAL REHABILITATION PROGRAMS

              TITLE XXI--AMENDMENTS TO GENERAL PROVISIONS

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

                        Explanation of Amendment

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

                  Oversight Findings of the Committee

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives and clause 2(b)(1) of 
rule X of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in the body of this report.

                    Government Reform and Oversight

    With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations form the Committee on Government Reform and 
Oversight on the subject of H.R. 1385.

                           Committee Estimate

    Clause 7 of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 1385. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                        Constitutional Authority

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

                Application of Law to Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. This bill provides funds to States for programs and 
services to eligible recipients; the bill does not prohibit 
legislative branch employees from otherwise being eligible for 
such services.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget & Impoundment 
Control Act requires a statement of whether the provisions of 
the reported bill include unfunded mandates. The Committee 
received a letter regarding unfunded mandates from the Director 
of the Congressional Budget Office and as such the Committee 
agrees that the bill does not contain any unfunded mandates. 
See infra.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the House of Representatives and section 308(a) of 
the Congressional Budget Act of 1974 and with respect to 
requirements of clause 2(l)(3)(C) of rule XI of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 1385 from the Director of the Congressional Budget 
Office:

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

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

                                Summary

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

                Estimated cost to the federal government

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

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

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

                           basis of estimate

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

Division A: Employment, training, and literacy programs

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

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

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

Division B: Vocational rehabilitation programs

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

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

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

                      pay-as-you-go considerations

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

                        intergovernmental impact

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

                 estimated impact on the private sector

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



         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italics, existing law in which no change is proposed 
is shown in roman):

                      JOB TRAINING PARTNERSHIP ACT

  AN ACT To provide for a job training program and for other purposes.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled,

                    [short title; table of contents

  [Section 1. This Act may be cited as the ``Job Training 
Partnership Act''.

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

                   [TITLE I--JOB TRAINING PARTNERSHIP

                    [Part A--Service Delivery System

[Sec. 101. Establishment of service delivery areas.
[Sec. 102. Establishment of private industry council.
[Sec. 103. Functions of private industry council.
[Sec. 104. Job training plan.
[Sec. 105. Review and approval of plan.
[Sec. 106. Performance standards.
[Sec. 107. Selection of service providers.
[Sec. 108. Limitation on certain costs.
[Sec. 109. Recapture and reallotment of unobligated funds.

               [Part B--Additional State Responsibilities

[Sec. 121. Governor's coordination and special services plan.
[Sec. 122. State job training coordinating council.
[Sec. 123. State education coordination and grants.
[Sec. 124. Identification of additional imposed requirements.
[Sec. 125. State labor market information programs.
[Sec. 126. Authority of State legislature.
[Sec. 127. Interstate agreements.

        [Part C--Program Requirements for Service Delivery System

[Sec. 141. General program requirements.
[Sec. 142. Benefits.
[Sec. 143. Labor standards.
[Sec. 144. Grievance procedure.
[Sec. 145. Prohibition against Federal control of education.

          [Part D--Federal and Fiscal Administrative Provisions

[Sec. 161. Program year.
[Sec. 162. Prompt allocation of funds.
[Sec. 163. Monitoring.
[Sec. 164. Fiscal controls; sanctions.
[Sec. 165. Reports, recordkeeping, and investigations.
[Sec. 166. Administrative adjudication.
[Sec. 167. Nondiscrimination.
[Sec. 168. Judicial review.
[Sec. 169. Administrative provisions.
[Sec. 170. Utilization of services and facilities.
[Sec. 171. Obligational authority.
[Sec. 172. Presidential awards for outstanding private sector 
          involvement in job training programs.
[Sec. 173. Construction.

                    [Part E--Miscellaneous Provisions

[Sec. 182. Criminal provisions.
[Sec. 183. Reference.
[Sec. 184. Repealers.

           [TITLE II--TRAINING SERVICES FOR THE DISADVANTAGED

                     [Part A--Adult Training Program

[Sec. 201. Statement of purpose.
[Sec. 202. Allotment and allocation.
[Sec. 203. Eligibility for services.
[Sec. 204. Program design.
[Sec. 205. Linkages.
[Sec. 206. Transfer of funds.

         [Part B--Summer Youth Employment and Training Programs

[Sec. 251. Purpose.
[Sec. 252. Authorization of appropriations; allotment and allocation.
[Sec. 253. Use of funds.
[Sec. 254. Limitations.
[Sec. 255. Applicable provisions.
[Sec. 256. Transfer of funds.

                     [Part C--Youth Training Program

[Sec. 261. Statement of purpose.
[Sec. 262. Allotment and allocation.
[Sec. 263. Eligibility for services.
[Sec. 264. Program design.
[Sec. 265. Linkages.
[Sec. 266. Transfer of funds.

  [TITLE III--EMPLOYMENT AND TRAINING ASSISTANCE FOR DISLOCATED WORKERS

[Sec. 301. Definitions.
[Sec. 302. Allotment.
[Sec. 303. Recapture and reallotment of unexpended funds.

                   [Part A--State Delivery of Services

[Sec. 311. State plan.
[Sec. 312. Substate grantees.
[Sec. 313. Substate plan.
[Sec. 314. Use of funds; services to be provided.
[Sec. 315. Limitations on uses of funds.
[Sec. 316. Retraining services availability.
[Sec. 317. Functions of State job training coordinating council.

                    [Part B--Federal Responsibilities

[Sec. 321. Federal administration.
[Sec. 322. Federal delivery of dislocated worker services.
[Sec. 323. Allowable activities.
[Sec. 324. Demonstration programs.
[Sec. 325. Defense conversion adjustment program.
[Sec. 325A. Defense Diversification Program.
[Sec. 326. Clean Air Employment Transition Assistance.

               [TITLE IV--FEDERALLY ADMINISTERED PROGRAMS

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

[Sec. 401. Native American programs.
[Sec. 402. Migrant and seasonal farmworker programs.
[Sec. 403. Grant procedures.

                           [Part B--Job Corps

[Sec. 421. Statement of purpose.
[Sec. 422. Establishment of the Job Corps.
[Sec. 423. Individuals eligible for the Job Corps.
[Sec. 424. Screening and selection of applicants: general provisions.
[Sec. 425. Screening and selection: special limitations.
[Sec. 426. Enrollment and assignment.
[Sec. 427. Job Corps centers.
[Sec. 428. Program activities.
[Sec. 429. Allowances and support.
[Sec. 430. Standards of conduct.
[Sec. 431. Community participation.
[Sec. 432. Counseling and job placement.
[Sec. 433. Experimental and developmental projects and coordination with 
          other programs.
[Sec. 433A. Job Corps centers for homeless families.
[Sec. 434. Advisory boards and committees.
[Sec. 435. Participation of the States.
[Sec. 436. Application of provisions of Federal law.
[Sec. 437. Special provisions.
[Sec. 438. General provisions.
[Sec. 439. Donations.

                 [Part C--Veterans' Employment Programs

[Sec. 441. Programs authorized.

                      [Part D--National Activities

[Sec. 451. National partnership and special training programs.
[Sec. 452. Research, demonstration, and evaluation.
[Sec. 453. Capacity building, information, dissemination, and 
          replication activities.
[Sec. 454. Guidance and technical assistance.
[Sec. 455. Uniform requirements.
[Sec. 456. Nontraditional employment demonstration program.

                    [Part E--Labor Market Information

[Sec. 461. Labor market information; availability of funds.
[Sec. 462. Cooperative labor market information program.
[Sec. 463. Special Federal responsibilities.
[Sec. 464. National occupational information coordinating committee.
[Sec. 465. Job bank program.

           [Part F--National Commission for Employment Policy

[Sec. 471. Statement of purpose.
[Sec. 472. Commission established.
[Sec. 473. Functions of the commission.
[Sec. 474. Administrative provisions.
[Sec. 475. Reports.

       [Part G--Training to Fulfill Affirmative Action Obligations

[Sec. 481. Affirmative action.

                   [Part H--Youth Fair Chance Program

[Sec. 491. Statement of purpose.
[Sec. 492. Program authorized.
[Sec. 493. Application.
[Sec. 494. Grant agreement.
[Sec. 495. Job guarantees.
[Sec. 496. Payments; Federal share.
[Sec. 497. Reporting.
[Sec. 498. Federal responsibilities.
[Sec. 498A. Definitions.

                 [Part I--Microenterprise Grants Program

[Sec. 499. Microenterprise grants.

             [Part J--Disaster Relief Employment Assistance

[Sec. 499A. General authority.
[Sec. 499B. Use of funds.
[Sec. 499C. Definitions.

  [TITLE V--JOBS FOR EMPLOYABLE DEPENDENT INDIVIDUALS INCENTIVE BONUS 
                                 PROGRAM

[Sec. 501. Statement of purpose.
[Sec. 502. Payments.
[Sec. 503. Amount of incentive bonus.
[Sec. 504. Use of incentive bonus funds.
[Sec. 505. Notice and application.
[Sec. 506. Eligibility for incentive bonuses.
[Sec. 507. Information and data collection.
[Sec. 508. Evaluation and report.
[Sec. 509. Implementing regulations.

                   [TITLE VI--MISCELLANEOUS PROVISIONS

[Sec. 601. Amendments to the Wagner-Peyser Act.
[Sec. 602. Amendments to part C of title IV of the Social Security Act.
[Sec. 603. Earnings disregard.
[Sec. 604. Enforcement of Military Selective Service Act.
[Sec. 605. State job bank systems.

           [TITLE VII--STATE HUMAN RESOURCE INVESTMENT COUNCIL

[Sec. 701. Establishment and functions.
[Sec. 702. Composition.
[Sec. 703. Administration.

                         [statement of purpose

  [Sec. 2. It is the purpose of this Act to establish programs 
to prepare youth and adults facing serious barriers to 
employment for participation in the labor force by providing 
job training and other services that will result in increased 
employment and earnings, increased educational and occupational 
skills, and decreased welfare dependency, thereby improving the 
quality of the work force and enhancing the productivity and 
competitiveness of the Nation.

                    [authorization of appropriations

  [Sec. 3. (a)(1) There are authorized to be appropriated to 
carry out parts A and C of title II such sums as may be 
necessary for fiscal year 1993 and for each succeeding fiscal 
year. Of the sums appropriated to carry out parts A and C of 
title II for each such fiscal year, an amount not less than 40 
percent of such sums shall be made available to carry out part 
A of such title and an amount not less than 40 percent of such 
sums shall be made available to carry out part C of such title.
  [(2) There are authorized to be appropriated to carry out 
part B of title II such sums as may be necessary for fiscal 
year 1993 and for each succeeding fiscal year.
  [(b) There are authorized to be appropriated to carry out 
title III (other than section 326 thereof)--
          [(1) $980,000,000 for fiscal year 1989; and
          [(2) such sums as may be necessary for each 
        succeeding fiscal year.
  [(c)(1) There are authorized to be appropriated to carry out 
parts A, C, D, E, F, and G of title IV for fiscal year 1993 and 
each succeeding fiscal year an amount equal to not more than 7 
percent of the total amount appropriated to carry out this Act 
for each such fiscal year.
  [(2) From the amount appropriated under paragraph (1) for any 
fiscal year, the Secretary--
          [(A) shall first reserve--
                  [(i) an amount of not less than 3.3 percent 
                of the amount available for parts A and C of 
                title II for such fiscal year to carry out 
                section 401; and
                  [(ii) an amount of not less than 3.2 percent 
                of the amount available for parts A and C of 
                title II for such fiscal year to carry out 
                section 402; and
          [(B) after making such reservations, shall reserve--
                  [(i) an amount equal to 7 percent of the 
                amount appropriated under paragraph (1) to 
                carry out part C of title IV;
                  [(ii) $15,000,000 to carry out section 453, 
                of which--
                          [(I) not less than 20 percent shall 
                        be used to carry out section 453(b);
                          [(II) not less than 20 percent shall 
                        be used to carry out section 453(c); 
                        and
                          [(III) $1,000,000 shall be used to 
                        carry out section 453(d);
                  [(iii) $6,000,000 to carry out subsections 
                (e) and (f) of section 462; and
                  [(iv) $2,000,000 to carry out part F of title 
                IV.
  [(3) There are authorized to be appropriated to carry out 
part H of title IV $100,000,000 for fiscal year 1993 and such 
sums as may be necessary for each of the fiscal years 1994 
through 1997.
  [(4) There are authorized to be appropriated to carry out 
part I of title IV $5,000,000 for each of the fiscal years 1993 
through 1997.
  [(5) There are authorized to be appropriated to carry out 
part J of title IV, $15,000,000 for fiscal year 1993 and such 
sums as may be necessary for each succeeding fiscal year.
  [(d) There are authorized to be appropriated $618,000,000 for 
fiscal year 1983, and such sums as may be necessary for each 
succeeding fiscal year, to carry out part B of title IV of this 
Act.
  [(e) There are authorized to be appropriated for each of 
fiscal years 1990 through 1996 such sums as may be necessary to 
carry out title V.
  [(f) The authorizations of appropriations contained in this 
section are subject to the program year provisions of section 
161.]

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

           TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS

                 Part A--State Administrative Provisions

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

                 Part B--Local Administrative Provisions

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

                  Part C--Program and Fiscal Provisions

                       Subpart 1--General Provisions

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

             Subpart 2--Performance Accountability Provisions

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

                        Subpart 3--Other Provisions

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

                    Part D--Miscellaneous Provisions

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

  TITLE II--DISADVANTAGED YOUTH EMPLOYMENT AND TRAINING OPPORTUNITIES 
                                 GRANTS

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

      TITLE III--ADULT EMPLOYMENT AND TRAINING OPPORTUNITIES GRANTS

Sec. 301. Purpose.

       Part A--Adult Employment and Training Opportunities Grants

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

                        Part B--National Programs

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

                TITLE IV--FEDERALLY ADMINISTERED PROGRAMS

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

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

                            Part B--Job Corps

Sec. 421. Statement of purpose.
Sec. 422. Establishment of the Job Corps.
Sec. 423. Individuals eligible for the Job Corps.
Sec. 424. Screening and selection of applicants: general provisions.
Sec. 425. Screening and selection: special limitations.
Sec. 426. Enrollment and assignment.
Sec. 427. Job Corps centers.
Sec. 428. Program activities.
Sec. 429. Allowances and support.
Sec. 430. Standards of conduct.
Sec. 431. Community participation.
Sec. 432. Counseling and job placement.
Sec. 433. Experimental and developmental projects and coordination with 
          other programs.
Sec. 433A. Job Corps centers for homeless families.
Sec. 434. Advisory boards and committees.
Sec. 435. Participation of the States.
Sec. 436. Application of provisions of Federal law.
Sec. 437. Special provisions.
Sec. 438. General provisions.
Sec. 439. Donations.

                  Part C--Veterans' Employment Programs

Sec. 441. Authorization of programs.

                       Part D--National Activities

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

                    Part E--Labor Market Information

Sec. 461. Labor market information; availability of funds.
Sec. 462. Cooperative labor market information program.
Sec. 463. Special federal responsibilities.
Sec. 464. National Occupational Information Coordinating Committee.
Sec. 465. Job bank program.
Sec. 466. State job bank systems.
Sec. 467. State labor market information programs.

SEC. 2. STATEMENT OF PURPOSE.

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

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

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

                              [definitions

  [Sec. 4. For the purposes of this Act, the following 
definitions apply:
          [(1) The term ``academic credit'' means credit for 
        education, training, or work experience applicable 
        toward a secondary school diploma, a postsecondary 
        degree, or an accredited certificate of completion, 
        consistent with applicable State law and regulation and 
        the requirements of an accredited educational agency or 
        institution in a State.
          [(2) The term ``administrative entity'' means the 
        entity designated to administer a job training plan 
        under section 103(b)(1)(B).]

SEC. 4. DEFINITIONS.

  As used in this Act, the following definitions apply:
          (1) Adult education and literacy activities.--The 
        term ``adult education and literacy activities'' means 
        the activities authorized under section 314 of the 
        Adult Education and Family Literacy Act.
          (2) Appropriate secretary.--The term ``appropriate 
        Secretary'' means--
                  (A) the Secretary of Labor, with respect to 
                programs authorized under titles II, III, and 
                IV of this Act; and
                  (B) the Secretary of Education, with respect 
                to programs authorized under the Adult 
                Education and Family Literacy Act.
          (3) [The term] Area of substantial unemployment.--The 
        term ``area of substantial unemployment'' means any 
        area of sufficient size and scope to sustain programs 
        [under parts A and C of title II] under title II and 
        title III of this Act and which has an average rate of 
        unemployment of at least 6.5 percent for the most 
        recent twelve months as determined by the Secretary. 
        Determinations of areas of substantial unemployment 
        shall be made once each fiscal year.
          [(4) The term ``chief elected official'' includes--
                  [(A) in the case of a State, the Governor;
                  [(B) in the District of Columbia, the mayor; 
                and
                  [(C) in the case of a service delivery area 
                designated under section 101(a)(4)(A)(iii), the 
                governing body.
          [(5) The term ``community-based organizations'' means 
        private nonprofit organizations which are 
        representative of communities or significant segments 
        of communities and which provide job training services 
        (for example, Opportunities Industrialization Centers, 
        the National Urban League, SER-Jobs for Progress, 
        United Way of America, Mainstream, the National Puerto 
        Rican Forum, National Council of La Raza, 70,001, Jobs 
        for Youth, the Association of Farmworker Opportunity 
        Programs, the Center for Employment Training, literacy 
        organizations, agencies or organizations serving older 
        individuals, organizations that provide service 
        opportunities, youth corps programs, organizations 
        operating career intern programs, neighborhood groups 
        and organizations, community action agencies, community 
        development corporations, vocational rehabilitation 
        organizations, rehabilitation facilities (as defined in 
        section 7(10) of the Rehabilitation Act of 1973), 
        agencies serving youth, agencies serving individuals 
        with disabilities, including disabled veterans, 
        agencies serving displaced homemakers, union-related 
        organizations, and employer-related nonprofit 
        organizations), and organizations serving 
        nonreservation Indians, as well as tribal governments 
        and Native Alaskan groups.
          [(6) Except as otherwise provided therein, the term 
        ``council'' means the private industry council 
        established under section 102.]
          [(31) The term] (4) Basic skills deficient.--The term 
        ``basic skills deficient'' means, with respect to an 
        individual, that the individual has English reading or 
        computing skills at or below the 8th grade level on a 
        generally accepted standardized test or a comparable 
        score on a criterion-referenced test.
          [(32) The term] (5) Case management.--The term ``case 
        management'' means the provision of a client-centered 
        approach in the delivery of services, designed to--
                  (A) prepare and coordinate comprehensive 
                employment plans, such as service strategies, 
                for participants to ensure access to the 
                necessary training and supportive services, 
                using, where feasible, computer-based 
                technologies; and
                  (B) provide job and career counseling during 
                program participation and after job placement.
          (6) Chief elected official.--The term ``chief elected 
        official'' means the chief elected executive officer of 
        a unit of general local government in a workforce 
        development area.
          [(33) The term] (7) Citizenship skills.--The term 
        ``citizenship skills'' means skills and qualities, such 
        as teamwork, problem-solving ability, self-esteem, 
        initiative, leadership, commitment to life-long 
        learning, and an ethic of civic responsibility, that 
        are characteristic of productive workers and good 
        citizens.
          (8) Community-based organization.--The term 
        ``community-based organization'' means a private 
        nonprofit organization that is representative of a 
        community or a significant segment of a community and 
        that has demonstrated the ability, or that can 
        demonstrate a capacity, to effectively administer a 
        program under this Act.
          (9) Dislocated worker.--The term ``dislocated 
        worker'' means an individual who--
                  (A)(i) has been terminated or laid off, or 
                who has received a notice of termination or 
                layoff, from employment;
                  (ii) is eligible for or has exhausted 
                entitlement to unemployment compensation; and
                  (iii) is unlikely to return to a previous 
                industry or occupation;
                  (B) has been terminated or laid off, or has 
                received a notice of termination or layoff, 
                from employment as a result of any permanent 
                closure of, or and substantial layoff at, a 
                plant, facility, or enterprise;
                  (C) was self-employed (including a farmer and 
                a rancher) but is unemployed as a result of 
                general economic conditions in the community in 
                which the individual resides or because of 
                natural disasters;
                  (D) is a displaced homemaker; or
                  (E) has become unemployed as a result of a 
                Federal action that limits the use of, or 
                restricts access to, a marine natural resource.
          [(29) The term] (10) Displaced homemaker.--The term 
        ``displaced homemaker'' means an individual who has 
        been providing unpaid services to family members in the 
        home and who--
                  (A) has been dependent either--
                          (i) on public assistance and whose 
                        youngest child is within 2 years of 
                        losing eligibility under part A of 
                        title IV of the Social Security Act; or
                          (ii) on the income of another family 
                        member but is no longer supported by 
                        that income; and
                  (B) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or 
                upgrading employment.
          [(7) The term] (11) Economic development agencies.--
        The term ``economic development agencies'' includes 
        local planning and zoning commissions or boards, 
        community development agencies, and other local 
        agencies and institutions responsible for regulating, 
        promoting, or assisting in local economic development.
          [(8) The term] (12) Economically disadvantaged.--The 
        term ``economically disadvantaged'' means an individual 
        who (A) receives, or is a member of a family which 
        receives, cash welfare payments under a Federal, State, 
        or local welfare program; (B) has, or is a member of a 
        family which has, received a total family income for 
        the six-month period prior to application for the 
        program involved (exclusive of unemployment 
        compensation, child support payments, and welfare 
        payments) which, in relation to family size, was not in 
        excess of the higher of (i) the official poverty line 
        (as defined by the Office of Management and Budget, and 
        revised annually in accordance with section 673(2) of 
        the Omnibus Budget Reconciliation Act of 1981 (42 
        U.S.C. 9902(2)), or (ii) 70 percent of the lower living 
        standard income level; (C) is receiving (or has been 
        determined within the 6-month period prior to the 
        application for the program involved to be eligible to 
        receive) food stamps pursuant to the Food Stamp Act of 
        1977; (D) qualifies as a homeless individual under 
        subsections (a) and (c) of section 103 of the Stewart 
        B. McKinney Homeless Assistance Act; (E) is a foster 
        child on behalf of whom State or local government 
        payments are made; or (F) in cases permitted by 
        regulations of the Secretary, is an individual with a 
        disability whose own income meets the requirements of 
        clause (A) or (B), but who is a member of a family 
        whose income does not meet such requirements.
          (13) Employment, training and literacy programs.--The 
        term ``employment, training and literacy programs'' 
        means programs authorized under titles II and III of 
        this Act and the Adult Education and Family Literacy 
        Act.
          (14) English literacy program.--The term ``English 
        literacy program'' means a program of instruction 
        designed to help individuals of limited English 
        proficiency achieve full competence in the English 
        language.
          [(34) The term] (15) Family.--The term ``family'' 
        means two or more persons related by blood, marriage, 
        or decree of court, who are living in a single 
        residence, and are included in one or more of the 
        following categories:
                  (A) A husband, wife, and dependent children.
                  (B) A parent or guardian and dependent 
                children.
                  (C) A husband and wife.
          (16) Family literacy services.--The term ``family 
        literacy services'' means services that are of 
        sufficient intensity in terms of hours, and of 
        sufficient duration, to make sustainable changes in a 
        family and that integrate all of the following 
        activities:
                  (A) Interactive literacy activities between 
                parents and their children.
                  (B) Training for parents on how to be the 
                primary teacher for their children and full 
                partners in the education of their children.
                  (C) Parent literacy training that leads to 
                economic self-sufficiency.
                  (D) An age-appropriate education to prepare 
                children for success in school and life 
                experiences.
          (17) Full service eligible providers.--The term 
        ``full service eligible provider'' means a provider 
        designated under section 123(c).
          [(9) The term] (18) Governor.--The term ``Governor'' 
        means the chief executive of any State.
          (19) Human resource programs.--The term ``human 
        resource programs'' means programs identified under 
        section 103.
          (20) Individual of limited english proficiency.--The 
        term ``individual of limited English proficiency'' 
        means an individual--
                  (A) who has limited ability in speaking, 
                reading, or writing the English language; and
                  (B)(i) whose native language is a language 
                other than English; or
                  (ii) who lives in a family or community 
                environment where a language other that English 
                is the dominant language.
          [(10)(A) The term ``individual with a disability'' 
        means any individual who has a physical or mental 
        disability which for such individual constitutes or 
        results in a substantial handicap to employment.
          [(B) The term ``individuals with disabilities'' means 
        more than one individual with a disability.
          [(11) The term ``Hawaiian native'' means any 
        individual any of whose ancestors were natives, prior 
        to 1778, of the area which now comprises the State of 
        Hawaii.]
          (21) Individual with a disability.--(A) The term 
        ``individual with a disability'' means an individual 
        with any disability (as defined in section 3 of the 
        Americans with Disabilities Act of 1990 (42 U.S.C. 
        12102)).
          (B) The term ``individuals with disabilities'' means 
        more than one individual with a disability.
          [(12) The term] (22) Institution of higher 
        education.--The term ``institution of higher 
        education'' means any institution of higher education 
        as that term is defined in section 1201(a) of the 
        Higher Education Act of 1965.
          [(13) The term] (23) Labor market area.--The term 
        ``labor market area'' means an economically integrated 
        geographic area within which individuals can reside and 
        find employment within a reasonable distance or can 
        readily change employment without changing their place 
        of residence. Such areas shall be identified in 
        accordance with criteria used by the Bureau of Labor 
        Statistics of the Department of Labor in defining such 
        areas or similar criteria established by a Governor.
          (24) Literacy.--The term ``literacy'' used with 
        respect to an individual, means the ability of the 
        individual to speak, read, and write English, and 
        compute and solve problems, at levels of proficiency 
        necessary--
                  (A) to function on the job, in the family of 
                the individual, and in society;
                  (B) to achieve the goals of the individual; 
                and
                  (C) to develop the knowledge potential of the 
                individual.
          (25) Local benchmarks.--The term ``local benchmarks'' 
        means the expected level of performance of a local 
        workforce development area established pursuant to 
        section 153(b).
          (26) Local board.--The term ``local board'' means a 
        local workforce development board established under 
        section 122.
          [(14) The term] (27) Local educational agency.--The 
        term ``local educational agency'' means such an agency 
        as defined in [section 521(22) of the Carl D. Perkins 
        Vocational Education Act] section 14101 of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 8801).
          (28) Local workforce development area.--The term 
        ``local workforce development area'' means an area 
        designated under section 121(a).
          [(15) The term] (29) Low-income level.--The term 
        ``low-income level'' means $7,000 with respect to 
        income in 1969, and for any later year means that 
        amount which bears the same relationship to $7,000 as 
        the Consumer Price Index for that year bears to the 
        Consumer Price Index for 1969, rounded to the nearest 
        $1,000.
          [(16) The term] (30) Lower living standard income 
        level.--The term ``lower living standard income level'' 
        means that income level (adjusted for regional, 
        metropolitan, urban, and rural differences and family 
        size) determined annually by the Secretary based on the 
        most recent ``lower living family budget'' issued by 
        the Secretary.
          [(30) The term] (31) Nontraditional employment.--The 
        term ``nontraditional employment'' as applied to women 
        refers to occupations or fields of work where women 
        comprise less than 25 percent of the individuals 
        employed in such occupation or field of work.
          [(17) The term] (32) Offender.--The term ``offender'' 
        means any adult or juvenile who is or has been subject 
        to any stage of the criminal justice process for whom 
        services under this Act may be beneficial or who 
        requires assistance in overcoming artificial barriers 
        to employment resulting from a record of arrest or 
        conviction.
          (33) On-the-job training.--The term ``on-the-job 
        training'' means training by an employer that is 
        provided to a paid participant while engaged in 
        productive work in a job that--
                  (A) provides knowledge or skills essential to 
                the full and adequate performance of the job;
                  (B) provides reimbursement to employers of up 
                to 50 percent of the wage rate of the 
                participant, for the extraordinary costs of 
                providing the training and additional 
                supervision related to the training; and
                  (C) is limited in duration as appropriate to 
                the occupation for which the participant is 
                being trained, taking into account the content 
                of the training, the prior work experience of 
                the participant, and the service strategy of 
                the participant, as appropriate.
          (34) Outlying area.--The term ``outlying area'' means 
        the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, the 
        Republic of the Marshall Islands, the Federated States 
        of Micronesia, and the Republic of Palau.
          [(35) The term ``hard-to-serve individual'' means an 
        individual who is included in one or more of the 
        categories described in section 203(b) or subsection 
        (b) or (d) of section 263.
          [(36) The term ``JOBS'' means the Job Opportunities 
        and Basic Skills Training Program authorized under part 
        F of title IV of the Social Security Act (42 U.S.C. 681 
        et seq.).]
          [(37) The term] (35) Participant.--The term 
        ``participant'' means an individual who has been 
        determined to be eligible to participate in and who is 
        receiving services (except [post-termination services 
        authorized under sections 204(c)(4) and 264(d)(5) and 
        follow up services authorized under section 253(d)] 
        follow up services authorized under this Act) under a 
        program authorized by this Act. Participation shall be 
        deemed to commence on the first day, following 
        determination of eligibility, on which the participant 
        began receiving subsidized employment, training, or 
        other services provided under this Act.
          [(18) The term] (36) Postsecondary institution.--The 
        term ``postsecondary institution'' means an institution 
        of higher education [as that term is defined in section 
        481(a)(1) of the Higher Education Act of 1965.] (as 
        such term is defined in section 481 of the Higher 
        Education Act of 1965 (20 U.S.C. 1088)) that continues 
        to meet the eligibility and certification requirements 
        under title IV of such Act (20 U.S.C. 1070 et seq.).
          [(19) The term ``private sector'' means, for purposes 
        of the State job training councils and private industry 
        councils, persons who are owners, chief executives or 
        chief operating officers of private for-profit 
        employers and major nongovernmental employers, such as 
        health and educational institutions or other executives 
        of such employers who have substantial management or 
        policy responsibility.]
          [(20) The term] (37) Public assistance.--The term 
        ``public assistance'' means Federal, State, or local 
        government cash payments for which eligibility is 
        determined by a needs or income test.
          [(21) The term ``Secretary'' means the Secretary of 
        Labor.
          [(22) The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, the Northern 
        Mariana Islands, American Samoa, the Federated States 
        of Micronesia, the Republic of the Marshall Islands, 
        and Palau.]
          (38) Rapid response assistance.--The term ``rapid 
        response assistance'' means assistance provided by a 
        State, or by an entity designated by a State, with 
        funds provided by the State under section 313(a)(2) in 
        the case of a permanent closure or mass layoff at a 
        plant, facility, or enterprise, or a natural or other 
        disaster, that results in mass job dislocation, in 
        order to assist dislocated workers in obtaining 
        reemployment as soon as possible, with services 
        including--
                  (A) the establishment of onsite contact with 
                employers and employee representatives--
                          (i) immediately after the State is 
                        notified of a current or projected 
                        permanent closure or mass layoff; or
                          (ii) in the case of a disaster, 
                        immediately after the State is made 
                        aware of mass job dislocation as a 
                        result of such disaster;
                  (B) the provision of information and access 
                to available employment and training 
                activities;
                  (C) assistance in establishing voluntary 
                labor management committees with the ability to 
                devise and implement a strategy for assessing 
                the employment and training needs of dislocated 
                workers and obtaining services to meet those 
                needs;
                  (D) the provision of emergency assistance 
                adapted to the particular closure, layoff, or 
                disaster; and
                  (E) the provision of assistance to the local 
                community in developing a coordinated response 
                and in obtaining access to State economic 
                development assistance.
          (39) Representatives of employees.--For purposes of 
        section 122, the term ``representatives of employees'' 
        means--
                  (A) individuals who have been elected by 
                organizations, associations, or a network of 
                similar institutions to represent the economic 
                interests of employees at a significant segment 
                of workplaces located in, or adjacent to, the 
                local workforce development area; or
                  (B) individuals from organizations, 
                associations, or a network of similar 
                institutions, with expertise to represent, or 
                experience representing, the interests of 
                employees with respect to the job training 
                priorities in the local workforce development 
                area.
          [(38) The term] (40) School dropout.--The term 
        ``school dropout'' means an individual who is no longer 
        attending any school and who has not received a 
        secondary school diploma or a certificate from a 
        program of equivalency for such a diploma.
          (41) Secretaries.--The term ``Secretaries'' means the 
        Secretary of Labor and the Secretary of Education.
          (42) Skill grant.--The term ``skill grant'' means a 
        voucher or credit issued to a participant under section 
        314(c)(6)(A) for the purchase of training services from 
        eligible providers of such services.
          (43) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.
          (44) State adjusted benchmarks.--The term ``state 
        adjusted benchmarks'' means a state's expected levels 
        of performance established pursuant to 153(a).
          (45) State benchmark.--The term ``State benchmark'' 
        means the benchmarks established by the state pursuant 
        to section 152(a).
          [(23) The term] (46) State educational agency.--The 
        term ``State educational agency'' means such an agency 
        as defined in section 14101 of the Elementary and 
        Secondary Education Act of 1965.
          [(24) The term ``supportive services'' means services 
        which are necessary to enable an individual eligible 
        for training under this Act, but who cannot afford to 
        pay for such services, to participate in a training 
        program funded under this Act. Such supportive services 
        may include transportation, health care, financial 
        assistance (except as a post-termination service), drug 
        and alcohol abuse counseling and referral, individual 
        and family counseling, special services, and materials 
        for individuals with disabilities, job coaches, child 
        care and dependent care, meals, temporary shelter, 
        financial counseling, and other reasonable expenses 
        required for participation in the training program and 
        may be provided in-kind or through cash assistance.]
          (47) Statewide system.--The term ``statewide system'' 
        means a statewide employment and training and literacy 
        system that includes programs authorized under titles 
        II and III of this Act and the Adult Education and 
        Family Literacy Act.
          (48) Supportive services.--The term ``supportive 
        services'' means services such as transportation, child 
        care, dependent care, and needs-based payments, that 
        are necessary to enable an individual to participate in 
        programs authorized under title II and title III of 
        this Act, consistent with the provisions of such 
        titles.
          [(39) The term] (49) Termination.--The term 
        ``termination'' means the separation of a participant 
        who is no longer receiving services (except post-
        termination services authorized under sections 
        204(c)(4) and 264(d)(5) and followup services 
        authorized under section 253(d)) under a program 
        authorized by this Act.
          [(25) The term] (50) Unemployed individuals.--The 
        term ``unemployed individuals'' means individuals who 
        are without jobs and who want and are available for 
        work. The determination of whether individuals are 
        without jobs shall be made in accordance with the 
        criteria used by the Bureau of Labor Statistics of the 
        Department of Labor in defining individuals as 
        unemployed.
          [(26) The term] (51) Unit of general local 
        government.--The term ``unit of general local 
        government'' means any general purpose political 
        subdivision of a State which has the power to levy 
        taxes and spend funds, as well as general corporate and 
        police powers.
          [(27)(A) The term ``veteran'' means an individual who 
        served in the active military, naval, or air service, 
        and who was discharged or released therefrom under 
        conditions other than dishonorable.
          [(B) The term ``disabled veteran'' means (i) a 
        veteran who is entitled to compensation under laws 
        administered by the Secretary of Veterans Affairs, or 
        (ii) an individual who was discharged or released from 
        active duty because of service-connected disability.
          [(C) The term ``recently separated veteran'' means 
        any veteran who applies for participation under any 
        title of this Act within 48 months of the discharge or 
        release from active military, naval, or air service.
          [(D) The term ``Vietnam era veteran'' means a veteran 
        any part of whose active military service occurred 
        between August 5, 1964, and May 7, 1975.]
          (52) Veteran.--The term ``veteran'' has the meaning 
        given such term in section 101(2) of title 38, United 
        States Code.
          [(28) The term] (53) Vocational education.--The term 
        ``vocational education'' has the meaning provided in 
        section 521(41) of the Carl D. Perkins Vocational 
        Education Act.
          [(40) The term] (54) Youth corps program.--The term 
        ``youth corps program'' means a program, such as a 
        conservation corps or youth service program, that 
        offers productive work with visible community benefits 
        in a natural resource or human service setting and that 
        gives participants a mix of work experience, basic and 
        life skills, education, training, and supportive 
        services.

                   [TITLE I--JOB TRAINING PARTNERSHIP

                    [Part A--Service Delivery System

                [establishment of service delivery areas

  [Sec. 101. (a)(1) The Governor shall, after receiving the 
proposal of the State job training coordinating council, 
publish a proposed designation of service delivery areas for 
the State each of which--
          [(A) is comprised of the State or one or more units 
        of general local government;
          [(B) will promote effective delivery of job training 
        services; and
          [(C)(i) is consistent with labor market areas or 
        standard metropolitan statistical areas, but this 
        clause shall not be construed to require designation of 
        an entire labor market area; or
          [(ii) is consistent with areas in which related 
        services are provided under other State or Federal 
        programs.
  [(2) The Council shall include in its proposal a written 
explanation of the reasons for designating each service 
delivery area.
  [(3) Units of general local government (and combinations 
thereof), business organizations, and other affected persons or 
organizations shall be given an opportunity to comment on the 
proposed designation of service delivery areas and to request 
revisions thereof.
  [(4)(A) The Governor shall approve any request to be a 
service delivery area from--
          [(i) any unit of general local government with a 
        population of 200,000 or more;
          [(ii) any consortium of contiguous units of general 
        local government with an aggregate population of 
        200,000 or more which serves a substantial part of one 
        or more labor market areas; and
          [(iii) any concentrated employment program grantee 
        for a rural area which served as a prime sponsor under 
        the Comprehensive Employment and Training Act.
  [(B) The Governor may approve a request to be a service 
delivery area from any unit of general local government or 
consortium of contiguous units of general local government, 
without regard to population, which serves a substantial 
portion of a labor market area.
  [(C) If the Governor denies a request submitted under 
subparagraph (A) and the entity making such request alleges 
that the decision of the Governor is contrary to the provisions 
of this section, such entity may appeal the decision to the 
Secretary, who shall make a final decision within 30 days after 
such appeal is received.
  [(b) The Governor shall make a final designation of service 
delivery areas within the State. Before making a final 
designation of service delivery areas for the State, the 
Governor shall review the comments submitted under subsection 
(a)(3) and requests submitted under subsection (a)(4).
  [(c)(1) In accordance with subsection (a), the Governor may 
redesignate service delivery areas no more frequently than 
every two years, except as provided for in sections 
106(j)(4)(B) and 164(b)(1)(B). Such redesignations shall be 
made not later than 4 months before the beginning of a program 
year.
  [(2) Subject to paragraph (1), the Governor shall make such a 
redesignation if a petition to do so is filed by an entity 
specified in subsection (a)(4)(A).
  [(3) The provisions of this subsection are subject to section 
105(c).

               [establishment of private industry council

  [Sec. 102. (a) There shall be a private industry council for 
every service delivery area established under section 101, to 
be selected in accordance with this subsection. Each council 
shall consist of--
          [(1) representatives of the private sector, who shall 
        constitute a majority of the membership of the council 
        and who shall be owners of business concerns, chief 
        executives or chief operating officers of 
        nongovernmental employers, or other private sector 
        executives who have substantial management or policy 
        responsibility;
          [(2) representatives of organized labor and 
        community-based organizations, who shall constitute not 
        less than 15 percent of the membership of the council; 
        and
          [(3) representatives of each of the following:
                  [(A) Educational agencies (which agencies 
                shall be representative of all educational 
                agencies in the service delivery area).
                  [(B) Vocational rehabilitation agencies.
                  [(C) Public assistance agencies.
                  [(D) Economic development agencies.
                  [(E) The public employment service.
  [(b) The Chairman of the council shall be selected from among 
members of the council who are representatives of the private 
sector.
  [(c)(1)(A) Private sector representatives on the council 
shall be selected from among individuals nominated by general 
purpose business organizations after consulting with, and 
receiving recommendations from, other business organizations in 
the service delivery area. The number of such nominations shall 
be at least 150 percent of the number of individuals to be 
appointed under subsection (a)(1). Such nominations, and the 
individuals selected from such nominations, shall reasonably 
represent the industrial and demographic composition of the 
business community. Whenever possible, at least one-half of 
such business and industry representatives shall be 
representatives of small business, including minority business.
  [(B) For the purpose of this paragraph, the term--
          [(i) ``general purpose business organizations'' means 
        organizations which admit to membership any for-profit 
        business operating within the service delivery area; 
        and
          [(ii) ``small business'' means private for-profit 
        enterprises employing 500 or fewer employees.
  [(2) The education representatives on the council shall be 
selected from among individuals nominated by regional or local 
educational agencies, vocational education institutions, 
institutions of higher education (including entities offering 
adult education) or general organizations of such institutions, 
within the service delivery area.
  [(3) The labor representatives on the council shall be 
selected from individuals recommended by recognized State and 
local labor federations. If the State or local labor federation 
fails to nominate a sufficient number of individuals to meet 
the labor representation requirements of subsection (a)(2), 
individual workers may be included on the council to complete 
the labor representation.
  [(4) The remaining members of the council shall be selected 
from individuals recommended by interested organizations.
  [(d)(1) In any case in which there is only one unit of 
general local government with experience in administering job 
training programs within the service delivery area, the chief 
elected official of that unit shall appoint members to the 
council from the individuals nominated or recommended under 
subsection (c).
  [(2) In any case in which there are two or more such units of 
general local government in the service delivery area, the 
chief elected officials of such units shall appoint members to 
the council from the individuals so nominated or recommended in 
accordance with an agreement entered into by such units of 
general local government. In the absence of such an agreement, 
the appointments shall be made by the Governor from the 
individuals so nominated or recommended.
  [(e) The initial number of members of the council shall be 
determined--
          [(1) by the chief elected official in the case 
        described in subsection (d)(1),
          [(2) by the chief elected officials in accordance 
        with the agreement in the case described in subsection 
        (d)(2), or
          [(3) by the Governor in the absence of such 
        agreement.
Thereafter, the number of members of the council shall be 
determined by the council.
  [(f) Members shall be appointed for fixed and staggered terms 
and may serve until their successors are appointed. Any vacancy 
in the membership of the council shall be filled in the same 
manner as the original appointment. Any member of the council 
may be removed for cause in accordance with procedures 
established by the council.
  [(g) The Governor shall certify a private industry council if 
the Governor determines that its composition and appointments 
are consistent with the provisions of this subsection. Such 
certification shall be made or denied within 30 days after the 
date on which a list of members and necessary supporting 
documentation are submitted to the Governor. When the Governor 
certifies the council, it shall be convened within 30 days by 
the official or officials who made the appointments to such 
council under subsection (d).
  [(h) In any case in which the service delivery area is a 
State, the State job training coordinating council or a portion 
of such council may be reconstituted to meet the requirements 
of this section.

                 [functions of private industry council

  [Sec. 103. (a) It shall be the responsibility of the private 
industry council to provide policy guidance for, and exercise 
oversight with respect to, activities under the job training 
plan for its service delivery area in partnership with the unit 
or units of general local government within its service 
delivery area.
  [(b)(1) The council, in accordance with an agreement or 
agreements with the appropriate chief elected official or 
officials specified in subsection (c), shall--
          [(A) determine procedures for the development of the 
        job training plan, which may provide for the 
        preparation of all or any part of the plan (i) by the 
        council, (ii) by any unit of general local government 
        in the service delivery area, or by an agency thereof, 
        or (iii) by such other methods or institutions as may 
        be provided in such agreement; and
          [(B) select as a grant recipient and entity to 
        administer the job training plan (which may be separate 
        entities), (i) the council, (ii) a unit of general 
        local government in its service delivery area, or an 
        agency thereof, (iii) a nonprofit private organization 
        or corporation, or (iv) any other agreed upon entity or 
        entities.
  [(2) The council is authorized to provide oversight of the 
programs conducted under the job training plan in accordance 
with procedures established by the council. In order to carry 
out this paragraph, the council shall have access to such 
information concerning the operations of such programs as is 
necessary.
  [(c) For purposes of subsection (b), the appropriate chief 
elected official or officials means--
          [(1) the chief elected official of the sole unit of 
        general local government in the service delivery area,
          [(2) the individual or individuals selected by the 
        chief elected officials of all units of general local 
        government in such area as their authorized 
        representative, or
          [(3) in the case of a service delivery area 
        designated under section 101(a)(4)(A)(iii), the 
        representative of the chief elected official for such 
        area (as defined in section 4(4)(C)).
  [(d) No job training plan prepared under section 104 may be 
submitted to the Governor unless (1) the plan has been approved 
by the council and by the appropriate chief elected official or 
officials specified in subsection (c), and (2) the plan is 
submitted jointly by the council and such official or 
officials.
  [(e) In order to carry out its functions under this Act, the 
council--
          [(1) shall, in accordance with the job training plan, 
        prepare and approve a budget for itself, and
          [(2) may hire staff, incorporate, and solicit and 
        accept contributions and grant funds (from other public 
        and private sources).
  [(f) As used in this section, the term ``oversight'' means 
reviewing, monitoring, and evaluating.

                           [job training plan

  [Sec. 104. (a) No funds appropriated under title II for any 
fiscal year may be provided to any service delivery area under 
this Act except pursuant to a job training plan for two program 
years which is prepared in accordance with section 103 and 
which meets the requirements of this section.
  [(b) Each job training plan for the programs conducted under 
title II shall contain--
          [(1) an identification of the entity that will 
        administer the program and be the grant recipient of 
        funds from the State;
          [(2) if there is more than one service delivery area 
        in a single labor market area, provisions for 
        coordinating particular aspects of the service delivery 
        area program with other programs and service providers 
        in the labor market area, including provisions for--
                  [(A) assessing needs and problems in the 
                labor market that form the basis for program 
                planning;
                  [(B) ensuring access by program participants 
                in each service delivery area to skills 
                training and employment opportunities 
                throughout the entire labor market;
                  [(C) coordinating or jointly implementing job 
                development, placement, and other employer 
                outreach activities; and
                  [(D) entering into agreements and contracts, 
                established pursuant to section 141(e)(2), 
                between service delivery areas to pay or share 
                the cost of services;
          [(3) a description of methods of complying with the 
        coordination criteria contained in the Governor's 
        coordination and special services plan;
          [(4) a description of linkages established with 
        appropriate agencies, pursuant to sections 205 and 265, 
        designed to enhance the provision of services and avoid 
        duplication, including--
                  [(A) agreements with appropriate educational 
                agencies;
                  [(B) arrangements with other education, 
                training, and employment programs authorized by 
                Federal law;
                  [(C) if appropriate, joint programs in which 
                activities supported with assistance under this 
                Act are coordinated with activities (such as 
                service opportunities and youth corps programs) 
                supported with assistance made available under 
                the National and Community Service Act of 1990 
                (42 U.S.C. 12501 et seq.); and
                  [(D) efforts to ensure the effective delivery 
                of services to participants in coordination 
                with local welfare agencies and other local 
                agencies, community-based organizations, 
                volunteer groups, business and labor 
                organizations, and other training, education, 
                employment, and social service programs;
          [(5) goals and objectives for the programs, 
        including--
                  [(A) a description of the manner in which the 
                program will contribute to the economic self-
                sufficiency of participants, and the 
                productivity of the local area and the Nation; 
                and
                  [(B) performance standards established in 
                accordance with standards prescribed under 
                section 106;
          [(6) procedures for identifying and selecting 
        participants, including--
                  [(A) goals for the training and placement of 
                hard-to-serve individuals, and a description of 
                efforts to be undertaken to accomplish such 
                goals;
                  [(B) outreach efforts to recruit and expand 
                awareness of training and placement 
                opportunities for such individuals; and
                  [(C) types of services to be provided to 
                address the special needs of such individuals;
          [(7)(A) goals for--
                  [(i) the training of women in nontraditional 
                employment; and
                  [(ii) the training-related placement of women 
                in nontraditional employment and 
                apprenticeships; and
          [(B) a description of efforts to be undertaken to 
        accomplish the  goals  described  in  subparagraph  
        (A),  including  efforts to increase awareness of such 
        training and placement opportunities;
          [(8) adult and youth program budgets for 2 program 
        years and any proposed expenditures for the succeeding 
        2 program years;
          [(9) a description of--
                  [(A) the assessment process that will 
                identify participant skill levels;
                  [(B) the process for providing information 
                and referrals for applicants and participants 
                relating to appropriate programs and service 
                providers;
                  [(C) the services to be provided, including 
                the means for involving labor organizations and 
                community-based organizations in the provision 
                of services, the estimated duration of service, 
                and the estimated training cost per 
                participant;
                  [(D) the competency levels to be achieved by 
                participants as a result of program 
                participation; and
                  [(E) the procedures for evaluating the 
                progress of participants in achieving 
                competencies;
          [(10) a description of the procedures and methods of 
        carrying out title V, where applicable, relating to 
        incentive bonus payments for the placement of 
        individuals eligible under such title;
          [(11) procedures, consistent with sections 107 and 
        164, for selecting service providers, which procedures 
        shall take into account--
                  [(A) past performance of the providers 
                regarding--
                          [(i) job training, basic skills 
                        training, or related activities;
                          [(ii) fiscal accountability; and
                          [(iii) ability to meet performance 
                        standards; and
                  [(B) the ability of the providers to provide 
                services that can lead to achievement of 
                competency standards for participants with 
                identified deficiencies;
          [(12) fiscal control (including procurement, 
        monitoring, and management information system 
        requirements), accounting, audit, and debt collection 
        procedures, consistent with section 164, to assure the 
        proper disbursal of, and accounting for, funds received 
        under title II; and
          [(13) procedures for the preparation and submission 
        of an annual report to the Governor, which report shall 
        include--
                  [(A) a description of activities conducted 
                during the program year;
                  [(B) characteristics of participants;
                  [(C) information on the extent to which 
                applicable performance standards were met;
                  [(D) information on the extent to which the 
                service delivery area has met the goals of the 
                area for the training and training-related 
                placement of women in nontraditional employment 
                and apprenticeships; and
                  [(E) a statistical breakdown of women trained 
                and placed in nontraditional occupations, 
                including information regarding--
                          [(i) the type of training received, 
                        by occupation;
                          [(ii) whether the participant was 
                        placed in a job or apprenticeship, and, 
                        if so, the occupation and wage at 
                        placement;
                          [(iii) the age of the participant;
                          [(iv) the race of the participant; 
                        and
                          [(v) retention of the participant in 
                        nontraditional employment.
  [(c) If changes in labor market conditions, funding, or other 
factors require substantial deviation from an approved job 
training plan, the private industry council and the appropriate 
chief elected official or officials (as described in section 
103(c)) shall submit a modification of such plan (including 
modification of the budget under subsection (b)(6)), which 
shall be subject to review in accordance with section 105.

                      [review and approval of plan

  [Sec. 105. (a)(1) Not less than 120 days before the beginning 
of the first of the two program years covered by the job 
training plan--
          [(A) the proposed plan or summary thereof shall be 
        published; and
          [(B) such plan shall be made available for review and 
        comment to--
                  [(i) each house of the State legislature for 
                appropriate referral;
                  [(ii) appropriate community-based 
                organizations and local educational and other 
                public agencies in the service delivery area; 
                and
                  [(iii) labor organizations in the area which 
                represent employees having the skills in which 
                training is proposed; and
          [(C) such plan shall be reasonably available to the 
        general public through such means as public hearings 
        and local news facilities.
  [(2) The final plan, or a summary thereof, shall be published 
not later than 80 days before the first of the two program 
years and shall be submitted to the Governor in accordance with 
section 103(d)(2). Any modification shall be published not 
later than 80 days before it is effective and shall be 
submitted to the Governor in accordance with such section.
  [(b)(1) The Governor shall approve the job training plan or 
modification thereof unless he finds that--
          [(A) corrective measures for deficiencies found in 
        audits or in meeting performance standards from 
        previous years have not been taken or are not 
        acceptably underway;
          [(B) the entity proposed to administer the program 
        does not have the capacity to administer the funds;
          [(C) there are inadequate safeguards for the 
        protection of funds received;
          [(D) the plan (or modification) does not comply with 
        a particular provision or provisions of this Act or of 
        regulations of the Secretary under this Act; or
          [(E) the plan (or modification) does not comply with 
        the criteria under sections 121(b), 205, and 265 for 
        coordinating activities under this Act with related 
        program activities.
  [(2) The Governor shall approve or disapprove a job training 
plan (or modification) within 30 days after the date that the 
plan (or modification) is submitted, except that if a petition 
is filed under paragraph (3) such period shall be extended to 
45 days. Any disapproval by the Governor may be appealed to the 
Secretary, who shall make a final decision of whether the 
Governor's disapproval complies with paragraph (1) of this 
subsection within 45 days after receipt of the appeal.
  [(3)(A) Interested parties may petition the Governor within 
15 days of the date of submission for disapproval of the plan 
or modification thereof if--
          [(i) the party can demonstrate that it represents a 
        substantial client interest,
          [(ii) the party took appropriate steps to present its 
        views and seek resolution of disputed issues prior to 
        submission of the plan to the Governor, and
          [(iii) the request for disapproval is based on a 
        violation of statutory requirements.
  [(B) If the Governor approves the plan (or modification), the 
Governor shall notify the petitioner in writing of such 
decision and the reasons therefor.
  [(c)(1) If a private industry council and the appropriate 
chief elected official or officials fail to reach the agreement 
required under section 103 (b) or (d) and, as a consequence, 
funds for a service delivery area may not be made available 
under section 104, then the Governor shall redesignate, without 
regard to sections 101 (a)(4) and (c)(1), the service delivery 
areas in the State to merge the affected area into one or more 
other service delivery areas, in order to promote the reaching 
of agreement.
  [(2) In any State in which service delivery areas are 
redesignated under paragraph (1), private industry councils 
shall, to the extent necessary for the redesignation, be 
reconstituted and job training plans modified as required to 
comply with sections 102 and 103. Services under an approved 
plan shall not be suspended while the council is reconstituted 
and the plan is modified.
  [(d) In any case in which the service delivery area is a 
State, the plan (or modification) shall be submitted to the 
Secretary for approval. For the purpose of this subsection, the 
Secretary shall have the same authority as the Governor has 
under this section.

                         [performance standards

  [Sec. 106. (a) Findings.--The Congress recognizes that job 
training is an investment in human capital and not an expense. 
In order to determine whether that investment has been 
productive, the Congress finds that--
          [(1) it is essential that criteria for measuring the 
        return on this investment be developed; and
          [(2) the basic return on the investment is to be 
        measured by long-term economic self-sufficiency, 
        increased employment and earnings, reductions in 
        welfare dependency, and increased educational 
        attainment and occupational skills.
  [(b) Title II Performance Standards.--
          [(1) General objective.--In prescribing performance 
        standards for programs under parts A and C of title II, 
        the Secretary shall ensure that States and service 
        delivery areas will make efforts to increase services 
        and positive outcomes for hard-to-serve individuals.
          [(2) Achievement of basic measures.--In order to 
        determine whether the basic measures described in 
        subsection (a) are achieved for programs under parts A 
        and C of title II, the Secretary, in consultation with 
        the Secretary of Education and the Secretary of Health 
        and Human Services, shall prescribe performance 
        standards.
          [(3) Factors for adult standards.--The Secretary 
        shall base the performance standards for adult programs 
        under part A of title II on appropriate factors, which 
        may include--
                  [(A) placement in unsubsidized employment;
                  [(B) retention for not less than 6 months in 
                unsubsidized employment;
                  [(C) an increase in earnings, including 
                hourly wages;
                  [(D) a reduction in welfare dependency; and
                  [(E) acquisition of skills, including basic 
                skills, required to promote continued 
                employability in the local labor market 
                (including attainment of the competency levels 
                described in paragraph (5)), or acquisition of 
                a high school diploma or the equivalent of the 
                diploma, if the acquisition of such skills or 
                diploma is in addition to obtaining one or more 
                of the outcomes described in subparagraphs (A) 
                through (D).
          [(4) Factors for youth standards.--
                  [(A) In general.--The Secretary shall base 
                the performance standards for youth programs 
                under part C of title II on appropriate factors 
                described in paragraph (3), and on factors 
                including--
                          [(i) attainment of employment 
                        competencies (including attainment of 
                        the competency levels described in 
                        paragraph (5));
                          [(ii) dropout prevention and 
                        recovery;
                          [(iii) secondary and postsecondary 
                        school completion or the equivalent of 
                        such completion; and
                          [(iv) enrollment in other training 
                        programs, apprenticeships, or 
                        postsecondary education, or enlistment 
                        in the Armed Forces.
                  [(B) Variations.--The Secretary may prescribe 
                variations in the standards described in 
                subparagraph (A) to reflect the differences 
                between in-school and out-of-school programs.
          [(5) Competency levels.--The private industry 
        councils, in consultation with appropriate educational 
        agencies, and, where appropriate, the private sector, 
        labor organizations, and community-based organizations, 
        shall establish youth and adult competency levels, 
        based on such factors as entry level skills and other 
        hiring requirements.
          [(6) Requirements.--The performance standards 
        described in paragraphs (3) and (4) shall include 
        provisions governing--
                  [(A) the base period prior to program 
                participation that will be used for measurement 
                of the factors in such paragraphs, as 
                appropriate;
                  [(B) a representative period after 
                termination from the program that is a 
                reasonable indicator of postprogram employment, 
                earnings, and cash welfare payment reductions; 
                and
                  [(C) cost-effective methods for obtaining 
                such data as are necessary to carry out this 
                section and section 452(d) which, 
                notwithstanding any other provision of law, may 
                include access to earnings records, State 
                employment security records, records collected 
                under the Federal Insurance Contributions Act 
                (chapter 21 of the Internal Revenue Code of 
                1986), records collected under the State 
                program funded under part A of title IV of the 
                Social Security Act, statistical sampling 
                techniques, and similar records or measures, 
                with appropriate safeguards to protect the 
                confidentiality of the information obtained.
          [(7) Incentive grants.--From funds available under 
        section 202(c)(1)(B), and under section 262(c)(1)(B), 
        for providing incentive grants under this paragraph, 
        each Governor shall award incentive grants for programs 
        under parts A and C of title II, other than programs 
        under section 204(d), to service delivery areas that--
                  [(A) exceed the performance standards 
                established by the Secretary under this 
                subsection (except for the standards 
                established under paragraph (8)) with respect 
                to services to all participants;
                  [(B) exceed the performance standards 
                established by the Secretary under this 
                subsection (except for the standards 
                established under paragraph (8)) with respect 
                to services to populations of hard-to-serve 
                individuals;
                  [(C) serve more than the minimum percentage 
                of out-of-school youth required by section 
                263(f);
                  [(D) place participants in employment that--
                          [(i) provides post-program earnings 
                        exceeding the applicable performance 
                        criteria; and
                          [(ii) includes employer-assisted 
                        employment benefits, including health 
                        benefits, consistent with the 
                        requirements of section 143(a)(4) 
                        relating to subsidized employment; and
                  [(E) exceed the performance standards 
                established by the Governor under subsection 
                (e) for programs under title II, except that 
                not more than 25 percent of the incentive 
                grants shall be awarded on performance 
                standards established under subsection (e).
          [(8) Program expenditures.--The Secretary shall 
        prescribe performance  standards  relating  gross  
        program  expenditures to various performance measures 
        under this subsection, excluding any cost per 
        participant measure. The Governors shall not take 
        performance standards prescribed under this paragraph 
        into consideration in awarding incentive grants under 
        paragraph (7).
  [(c) Title III Performance Standards.--
          [(1) In general.--The Secretary shall prescribe 
        performance standards for programs under title III 
        based on placement and retention in unsubsidized 
        employment.
          [(2) Needs-related payments.--In prescribing 
        performance standards under paragraph (1), the 
        Secretary shall make appropriate allowance for the 
        difference in cost resulting from serving workers 
        receiving needs-related payments under section 314(e).
  [(d) State Variation of Performance Standards.--
          [(1) Authority of governor.--Each Governor shall 
        prescribe, and report in the Governor's coordination 
        and special services plan, within parameters 
        established by the Secretary, variations in the 
        standards issued under subsections (b) and (c) based 
        upon--
                  [(A) specific economic, geographic, and 
                demographic factors in the State and in service 
                delivery areas and substate areas within the 
                State;
                  [(B) the characteristics of the population to 
                be served;
                  [(C) the demonstrated difficulties in serving 
                the population; and
                  [(D) the type of services to be provided.
          [(2) Responsibilities of secretary.--The Secretary 
        shall--
                  [(A) provide information and technical 
                assistance on performance standards 
                adjustments;
                  [(B) collect data that identifies hard-to-
                serve individuals;
                  [(C) provide guidance on setting performance 
                standards at the service provider level that 
                encourages increased service to such 
                individuals; and
                  [(D) review performance standards to ensure 
                that such standards provide maximum incentive 
                in serving such individuals.
  [(e) Additional State Standards Permitted.--The Governor may 
prescribe performance standards for programs under title II and 
title III in addition to those standards established by the 
Secretary under subsections (b) and (c). Such additional 
standards may include criteria relating to establishment of 
effective linkages with other programs to avoid duplication and 
enhance the delivery of services, the provision of high quality 
services, and successful service to hard-to-serve individuals. 
The additional performance standards established for title II 
shall be reported in the Governor's coordination and special 
services plan.
  [(f) Title IV Standards.--The Secretary shall prescribe 
performance standards for programs under parts A and B of title 
IV.
  [(g) Adjustment for Special Populations.--The Secretary shall 
prescribe a system for variations in performance standards for 
special populations to be served, including Native Americans, 
migrant and seasonal farmworkers, disabled and Vietnam era 
veterans, including veterans who served in the Indochina 
Theater between August 5, 1964 and May 7, 1975, older 
individuals, including those served under section 204(d), and 
offenders, taking into account their special circumstances.
  [(h) Modifications.--
          [(1) In general.--The Secretary may modify the 
        performance standards under this section not more often 
        than once every 2 program years. Such modifications 
        shall not be retroactive.
          [(2) Job corps.--Notwithstanding paragraph (1), the 
        Secretary may modify standards relating to programs 
        under part B of title IV each program year.
  [(i) Functions of NCEP.--The National Commission for 
Employment Policy shall--
          [(1) advise the Secretary in the development of 
        performance standards under this section for measuring 
        results of participation in job training and in the 
        development of parameters for variations of such 
        standards referred to in subsection (d);
          [(2) evaluate the usefulness of such standards as 
        measures of desired performance; and
          [(3) evaluate the impact of such standards (intended 
        or otherwise) on the choice of who is served, what 
        services are provided, and the cost of such services in 
        service delivery areas.
  [(j) Failure To Meet Standards.--
          [(1) Uniform criteria.--The Secretary shall establish 
        uniform criteria for determining whether--
                  [(A) a service delivery area fails to meet 
                performance standards under this section; and
                  [(B) the circumstances under which remedial 
                action authorized under this subsection shall 
                be taken.
          [(2)  Technical assistance.--Each Governor shall 
        provide technical assistance to service delivery areas 
        failing to meet performance standards under the uniform 
        criteria established under paragraph (1)(A).
          [(3) Process for correction.--Not later than 90 days 
        after the end of each program year, each Governor shall 
        report to the Secretary the final performance standards 
        and performance for each service delivery area within 
        the State, along with the plans of the Governor for 
        providing the technical assistance required under 
        paragraph (2).
          [(4) Reorganization plan.--
                  [(A) Plan required for continued failure.--If 
                a service delivery area continues to fail to 
                meet such performance standards for 2 
                consecutive program years, the Governor shall 
                notify the Secretary and the service delivery 
                area of the continued failure, and shall 
                develop and impose a reorganization plan.
                  [(B) Elements.--Such plan may restructure the 
                private industry council, prohibit the use of 
                designated service providers, merge the service 
                delivery area into one or more other existing 
                service delivery areas, or make other changes 
                as the Governor determines to be necessary to 
                improve performance, including the selection of 
                an alternative administrative entity to 
                administer the program for the service delivery 
                area.
                  [(C) Alternative administrative entity 
                selection.--The alternative administrative 
                entity described in subparagraph (B) may be a 
                newly formed private industry council or any 
                agency jointly selected by the Governor and the 
                chief elected official of the largest unit of 
                general local government in the service 
                delivery area or substate area.
          [(5) Secretarial action.--
                  [(A) Plan.--If the Governor has not imposed a 
                reorganization plan as required by paragraph 
                (4) within 90 days of the end of the second 
                program year in which a service delivery area 
                has failed to meet its performance standards, 
                the Secretary shall develop and impose such a 
                plan.
                  [(B) Recapture or withholding.--The Secretary 
                shall recapture or withhold an amount not to 
                exceed one-fifth of the State administration 
                set-aside allocated under section 202(c)(1)(A) 
                and under section 262(c)(1)(A), for the 
                purposes of providing technical assistance 
                under a reorganization plan imposed pursuant to 
                subparagraph (A).
          [(6) Appeal by service delivery area.--
                  [(A) Timing.--A service delivery area that is 
                the subject of a reorganization plan under 
                paragraph (4) may, within 30 days after 
                receiving notice thereof, appeal to the 
                Secretary to rescind or revise such plan.
                  [(B) Recapture or withholding.--
                          [(i) Determination.--If the Secretary 
                        determines, upon appeal under 
                        subparagraph (A), that the Governor has 
                        not provided appropriate technical 
                        assistance as required under paragraph 
                        (2), the Secretary shall recapture or 
                        withhold an amount not to exceed one-
                        fifth of the State administration set-
                        aside allotted under section 
                        202(c)(1)(A) and under section 
                        262(c)(1)(A). The Secretary shall use 
                        funds recaptured or withheld under this 
                        subparagraph to provide appropriate 
                        technical assistance.
                          [(ii) Basis.--If the Secretary 
                        approved the technical assistance plan 
                        provided by the Governor under 
                        paragraph (2), a determination under 
                        this subparagraph shall only be based 
                        on failure to effectively implement 
                        such plan and shall not be based on the 
                        plan itself.
          [(7) Appeal by governor.--A Governor of a State that 
        is subject to recapture or withholding under paragraph 
        (5) or (6)(B) may, within 30 days of receiving notice 
        thereof, appeal such withholding to the Secretary.
  [(k) Clarification or Reference.--For the purposes of this 
section, the term ``employment'' means employment for 20 or 
more hours per week.

                    [selection of service providers

  [Sec. 107. (a) The primary consideration in selecting 
agencies or organizations to deliver services within a service 
delivery area shall be the effectiveness of the agency or 
organization in delivering comparable or related services based 
on demonstrated performance, (in accordance with guidelines 
established by the Secretary), in terms of the likelihood of 
meeting performance goals, cost, quality of training, and 
characteristics of participants. In addition, consideration 
shall be given to demonstrated performance in making available 
appropriate supportive services, including child care. In 
complying with this subsection, proper consideration shall be 
given to community-based organizations as service providers.
  [(b) Funds provided under this Act shall not be used to 
duplicate facilities or services available in the area (with or 
without reimbursement) from Federal, State, or local sources, 
unless it is demonstrated that alternative services or 
facilities would be more effective or more likely to achieve 
the service delivery area's performance goals.
  [(c) Appropriate education agencies in the service delivery 
area shall be provided the opportunity to provide educational 
services, unless the administrative entity demonstrates that 
alternative agencies or organizations would be more effective 
or would have greater potential to enhance the participants' 
continued occupational and career growth.
  [(d) The administrative entity shall not fund any 
occupational skills training program unless the level of skills 
provided in the program are in accordance with guidelines 
established by the private industry council.
  [(e) The selection of service providers shall be made on a 
competitive basis to the extent practicable, and shall 
include--
          [(1) a determination of the ability of the service 
        provider to meet program design specifications 
        established by the administrative entity that take into 
        account the purposes of the Act and the goals 
        established in the Governor's coordination and special 
        services plan; and
          [(2) documentation of compliance with procurement 
        standards established by the Governor under section 
        164, including the reasons for selection.

                      [limitation on certain costs

  [Sec. 108. (a) Except as provided in subparagraph (A) or (B) 
of section 141(d)(3), funds expended under this Act shall be 
charged to the appropriate cost categories.
  [(b)(1) The cost limitations contained in this subsection 
shall apply separately to the funds allocated for programs 
under part A of title II, and to the funds allocated for 
programs under part C of such title.
  [(2) Funds expended under parts A and C of title II shall be 
charged to one of the following categories:
          [(A) Administration.
          [(B) Training-related and supportive services.
          [(C) Direct training services.
  [(3) The Secretary shall, consistent with sections 204(b) and 
264(c), define by regulation the cost categories specified in 
paragraph (2).
  [(4) Of the funds allocated to a service delivery area for 
any program year under parts A or C of title II--
          [(A) not more than 20 percent shall be expended for 
        administration; and
          [(B) not less than 50 percent shall be expended for 
        direct training services.
  [(5) Each service delivery area shall ensure that for all 
services provided to participants through contracts, grants, or 
other agreements with a service provider, such contract, grant, 
or agreement shall include appropriate amounts necessary for 
administration and supportive services.
  [(6) For purposes of paragraph (4), the term ``allocated'' 
means allocated for a program year, as adjusted for 
reallocations and reallotments under section 109 and for 
transfers of funds under sections 206, 256, and 266.
  [(c) Funds available under title III shall be expended in 
accordance with the limitations specified in section 315.
  [(d) The provisions of this section do not apply to any 
service delivery area designated pursuant to section 
101(a)(4)(A)(iii).
  [(e) This section shall not be construed to exempt programs 
under an approved plan from the performance standards 
established under section 106.

            [recapture and reallotment of unobligated funds

  [Sec. 109. (a) Within State Reallocations.--
          [(1) In general.--For program years beginning on or 
        after July 1, 1993, the Governor shall, in accordance 
        with the requirements of this subsection, reallocate to 
        eligible service delivery areas within the State funds 
        appropriated for such program year that are available 
        for reallocation.
          [(2) Amount.--The amount available for reallocation 
        is equal to the amount by which the unobligated balance 
        of the service delivery area allocation under part A or 
        C of title II for all service delivery areas within the 
        State at the end of the program year prior to the 
        program year for which the determination under this 
        subsection is made exceeds 15 percent of such 
        allocation for the prior program year.
          [(3) Reallocation.--The Governor shall reallocate the 
        amounts available pursuant to paragraph (2) to eligible 
        service delivery areas within the State that have the 
        highest rates of unemployment for an extended period of 
        time and to those with the highest poverty rates.
          [(4) Eligibility.--For purposes of this subsection, 
        an eligible service delivery area means a service 
        delivery area that has obligated at least 85 percent of 
        its allocation under part A or C of title II, 
        respectively, for the program year prior to the program 
        year for which the determination under this subsection 
        is made.
  [(b) Reallotment Among States.--
          [(1) In general.--For program years beginning on or 
        after July 1, 1993, the Secretary shall, in accordance 
        with the requirements of this subsection, reallot to 
        eligible States funds appropriated for such program 
        year that are available for reallotment.
          [(2) Amount.--The amount available for reallotment is 
        equal to the amount by which the unobligated balance of 
        the State allotment under part A or C of title II, 
        respectively, for all States at the end of the program 
        year prior to the program year for which the 
        determination under this subsection is made exceeds 15 
        percent of such allotment for that prior program year.
          [(3) Reallotment.--The Secretary shall reallot the 
        amounts available pursuant to paragraph (2) to each 
        eligible State an amount based on the relative amount 
        allotted to such eligible State under part A or C of 
        title II, respectively, for the program year the 
        determination under this subsection is made compared to 
        the total amount allotted to all eligible States under 
        part A or C of title II, respectively, for such program 
        year.
          [(4) Eligibility.--For purposes of this subsection, 
        an eligible State means a State that has obligated at 
        least 85 percent of its allocation under part A or C of 
        title II, respectively, for the program year prior to 
        the program year for which the determination under this 
        subsection is made.
          [(5) Procedures.--The Governor of each State shall 
        prescribe uniform procedures for the obligation of 
        funds by service delivery areas within the State in 
        order to avoid the requirement that funds be made 
        available for reallotment under this subsection. The 
        Governor shall further prescribe equitable procedures 
        for making funds available from the State and service 
        delivery areas in the event that a State is required to 
        make funds available for reallotment under this 
        subsection.
  [(d) Calculation.--Funds obligated to carry out programs 
under section 204(d) shall not be counted in determining the 
amount available for reallocation under subsection (a)(2) or 
the amount available for reallotment under subsection (b)(2).

               [Part B--Additional State Responsibilities

           [governor's coordination and special services plan

  [Sec. 121. (a)(1) The Governor shall annually prepare a 
statement of goals and objectives for job training and 
placement programs within the State to assist in the 
preparation of the plans required under section 104 of this Act 
and section 8 of the Act of June 6, 1933 (known as the Wagner-
Peyser Act).
  [(2) Any State seeking financial assistance under this Act 
shall submit a Governor's coordination and special services 
plan for two program years to the Secretary describing the use 
of all resources provided to the State and its service delivery 
areas under this Act and evaluating the experience over the 
preceding two years.
  [(b)(1) The plan shall establish criteria for coordinating 
activities under this Act (including title III) with programs 
and services provided by State and local education and training 
agencies (including vocational education agencies), public 
assistance agencies, the employment service, rehabilitation 
agencies, postsecondary institutions, economic development 
agencies, programs for the homeless and such other agencies as 
the Governor determines to have a direct interest in employment 
and training and human resource utilization within the State. 
Such criteria shall not affect local discretion concerning the 
selection of eligible participants or service providers in 
accordance with the provisions of sections 107 203, or 263
  [(2) The plan shall describe the measures taken by the State 
to ensure coordination and avoid duplication between the State 
agencies administering the work activities required under title 
IV of the Social Security Act and programs under title II in 
the planning and delivery of services.
  [(3) The plan shall describe the projected use of resources, 
including oversight of program performance, program 
administration, and program financial management, capacity 
building, priorities and criteria for State incentive grants, 
and performance goals for State-supported programs. The 
description of capacity building shall include the Governor's 
plans for technical assistance to service delivery areas and 
service providers, interstate technical assistance and training 
arrangements, other coordinated technical assistance 
arrangements undertaken pursuant to the direction of the 
Secretary, and, where applicable, research and demonstration 
projects.
    [(4) The plan shall include goals for--
          [(A) the training of women in nontraditional 
        employment through funds available under the Job 
        Training Partnership Act, the Carl D. Perkins 
        Vocational and Applied Technology Education Act, and 
        other sources of Federal and State support;
          [(B) the training-related placement of women in 
        nontraditional employment and apprenticeships;
          [(C) a description of efforts to be undertaken to 
        accomplish such goals, including efforts to increase 
        awareness of such training and placement opportunities; 
        and
          [(D) a description of efforts to coordinate 
        activities provided pursuant to the Job Training 
        Partnership Act and the Carl D. Perkins Vocational and 
        Applied Technology Education Act to train and place 
        women in nontraditional employment.
  [(5) The State plan shall include a description of the manner 
in which the State will encourage the successful carrying out 
of --
          [(A) training activities for eligible individuals 
        whose placement is the basis for the payment to the 
        State of the incentive bonus authorized by title V; and
          [(B) the training services, outreach activities, and 
        preemployment supportive services furnished to such 
        individuals.
  [(6) The Governor shall report to the Secretary the 
adjustments made in the performance standards and the factors 
that are used in making the adjustments.
  [(7) If major changes occur in labor market conditions, 
funding, or other factors during the two-year period covered by 
the plan, the State shall submit a modification to the 
Secretary describing these changes.
  [(c) Governor's coordination and special services activities 
may include--
          [(1) making available to service delivery areas, with 
        or without reimbursement and upon request, appropriate 
        information and technical assistance to assist in 
        developing and implementing plans and programs;
          [(2) carrying out special model training and 
        employment programs and related services (including 
        programs receiving financial assistance from private 
        sources);
          [(3) providing programs and related services for 
        offenders, homeless individuals and other individuals 
        whom the Governor determines require special 
        assistance;
          [(4) providing financial assistance for special 
        programs and services designed to meet the needs of 
        rural areas outside major labor market areas;
          [(5) providing training opportunities in the 
        conservation and efficient use of energy, and the 
        development of solar energy sources as defined in 
        section 3 of the Solar Energy Research, Development and 
        Demonstration Act of 1974;
          [(6) industry-wide training;
          [(7) coordination of activities relating to part A of 
        title II with activities under title III of this Act;
          [(8) developing and providing to service delivery 
        areas information on a State and local area basis 
        regarding economic, industrial, and labor market 
        conditions;
          [(9) providing programs and related services to 
        encourage the recruitment of women for training, 
        placement, and retention in nontraditional employment;
          [(10) providing preservice and inservice training for 
        planning, management, and delivery staffs of 
        administrative entities and private industry councils, 
        as well as contractors for State supported programs;
          [(11) providing statewide programs which provide for 
        joint funding of activities under this Act with 
        services and activities under other Federal, State, or 
        local employment-related programs, including programs 
        of the Department of Veterans Affairs; and
          [(12) making available to service delivery areas 
        appropriate information and technical assistance to 
        assist in developing and  implementing joint programs, 
        including youth corps programs, in which activities 
        supported under this Act are coordinated with 
        activities supported under the National and Community 
        Service Act of 1990 (42 U.S.C. 12501 et seq.).
  [(d) A Governor's coordination and special services plan 
shall be approved by the Secretary unless the Secretary 
determines that the plan does not comply with specific 
provisions of this Act.

                [state job training coordinating council

  [Sec. 122. (a)(1) Except as provided in subsection (d), any 
State which desires to receive financial assistance under this 
Act shall establish a State job training coordinating council 
(hereinafter in this section referred to as the ``State 
council''). Funding for the council shall be provided pursuant 
to sections 202(c)(1)(A) and 262(c)(1)(A).
  [(2) The State council shall be appointed by the Governor, 
who shall designate one nongovernmental member thereof to be 
chairperson. In making appointments to the State council, the 
Governor shall ensure that the membership of the State council 
reasonably represents the population of the State.
  [(3) The State job training coordinating council shall be 
composed as follows:
          [(A) Thirty percent of the membership of the State 
        council shall be representatives of business and 
        industry (including agriculture, where appropriate) 
        including individuals who are representatives of 
        business and industry on private industry councils 
        within the State.
          [(B) Thirty percent of the membership of the State 
        council shall be--
                  [(i) representatives of the State legislature 
                and State agencies and organizations, such as 
                the State educational agency, the State 
                vocational education board, the State advisory 
                council on vocational education, the State 
                board of education (when not otherwise 
                represented), State public assistance agencies, 
                the State employment security agency, the State 
                rehabilitation agency, the State occupational 
                information coordinating committee, State 
                postsecondary institutions, the State economic 
                development agency, State veterans' affairs 
                agencies or equivalent, and such other agencies 
                as the Governor determines to have a direct 
                interest in employment and training and human 
                resource utilization within the State; and
                  [(ii) representatives of the units or 
                consortia of general local government in the 
                State who shall be nominated by the chief 
                elected officials of the units or consortia of 
                units of general local government, and the 
                representatives of local educational agencies 
                who shall be nominated by local educational 
                agencies.
          [(C) Thirty percent of the membership of the State 
        council shall be representatives of organized labor and 
        representatives of community-based organizations in the 
        State.
          [(D) Ten percent of the membership of the State 
        council shall be appointed from the general public by 
        the Governor of the State.
  [(4) The State council shall meet at such times and in such 
places as it deems necessary. The meetings shall be publicly 
announced, and, to the extent appropriate, open and accessible 
to the general public.
  [(5) The State council is authorized to obtain the services 
of such professional, technical, and clerical personnel as may 
be necessary to carry out its functions under this Act.
  [(6) In order to assure objective management and oversight, 
the State council shall not operate programs or provide 
services directly to eligible participants, but shall exist 
solely to plan, coordinate, and monitor the provision of such 
programs and services.
  [(7) The plans and decisions of the State council shall be 
subject to approval by the Governor.
  [(b) The State council shall--
          [(1) recommend a Governor's coordination and special 
        services plan;
          [(2) recommend to the Governor substate service 
        delivery areas, plan resource allocations not subject 
        to section 202(b) or 262(b), provide management 
        guidance and review for all programs in the State, 
        develop appropriate linkages with other programs, 
        coordinate activities with private industry councils, 
        and develop the Governor's coordination and special 
        services plan and recommend variations in performance 
        standards;
          [(3) advise the Governor and local entities on job 
        training plans and certify the consistency of such 
        plans with criteria under the Governor's coordination 
        and special services plan for coordination of 
        activities under this Act with other Federal, State, 
        and local employment-related programs, including 
        programs operated in designated enterprise zones;
          [(4) review the operation of programs conducted in 
        each service delivery area, and the availability, 
        responsiveness, and adequacy of State services, and 
        make recommendations to the Governor, appropriate chief 
        elected officials, and private industry councils, 
        service providers, the State legislature, and the 
        general public with respect to ways to improve the 
        effectiveness of such programs or services;
          [(5) review the reports made pursuant to 
        subparagraphs (D) and (E) of section 104(b)(12) and 
        make recommendations for technical assistance and 
        corrective action, based on the results of such 
        reports;
          [(6) prepare a summary of the reports made pursuant 
        to subparagraphs (D) and (E) of section 104(b)(12) 
        detailing promising service delivery approaches 
        developed in each service delivery area for the 
        training and placement of women in nontraditional 
        occupations, and disseminate annually such summary to 
        service delivery areas, service providers throughout 
        the State, and the Secretary;
          [(7) review the activities of the Governor to train, 
        place, and retain women in nontraditional employment, 
        including activities under section 123, prepare a 
        summary of activities and an analysis of results, and 
        disseminate annually such summary to service delivery 
        areas, service providers throughout the State, and the 
        Secretary;
          [(8) consult with the sex equity coordinator 
        established under section 111(b) of the Carl D. Perkins 
        Vocational and Applied Technology Education Act, obtain 
        from the sex equity coordinator a summary of activities 
        and an analysis of results in training women in 
        nontraditional employment under the Carl D. Perkins 
        Vocational and Applied Technology Education Act, and 
        disseminate annually such summary to service delivery 
        areas, service providers throughout the State, and the 
        Secretary;
          [(9) review and comment on the State plan developed 
        for the State employment service agency;
          [(10) make an annual report to the Governor which 
        shall be a public document, and issue such other 
        studies, reports, or documents as it deems advisable to 
        assist service delivery areas in carrying out the 
        purposes of this Act;
          [(11)(A) identify, in coordination with the 
        appropriate State agencies, the employment and training 
        and vocational education needs throughout the State, 
        and assess the extent to which employment and training, 
        vocational education, rehabilitation services, public 
        assistance, economic development, and other Federal, 
        State, and local programs and services represent a 
        consistent, integrated, and coordinated approach to 
        meeting such needs; and
          [(B) comment at least once annually on the measures 
        taken pursuant to section 113(b)(14) of the Carl D. 
        Perkins Vocational Education Act; and
          [(12) review plans of all State agencies providing 
        employment, training, and related services, and provide 
        comments and recommendations to the Governor, the State 
        legislature, the State agencies, and the appropriate 
        Federal agencies on the relevancy and effectiveness of 
        employment and training and related service delivery 
        systems in the State.
  [(c) In addition to the functions described in subsection 
(b), the Governor may, to the extent permitted by applicable 
law, transfer functions which are related to functions under 
this Act to the council established under this section from any 
State coordinating committee for the work incentive program 
under title IV of the Social Security Act or any advisory 
council established under the Wagner-Peyser Act.
  [(d)(1) In lieu of establishing the State council required 
under subsection (a), each State may satisfy the requirements 
of this section by designating the State human resource 
investment council established in accordance with title VII (in 
this subsection referred to as the ``State Council'') to carry 
out the duties described in subsection (b).
  [(2) Funding provided to carry out this section may be 
allotted to the State Council to carry out such functions and 
the other functions of the State Council if the Governor and 
the head of the State agency responsible for administration of 
programs under this Act agree to such an allotment.

                [state education coordination and grants

  [Sec. 123. (a) Allotment.--
          [(1) In general.--The Secretary shall allot to the 
        Governor for allocation to any State education agency 
        the sums made available to carry out this section under 
        sections 202(c)(1)(C) and 262(c)(1)(C) to pay for the 
        Federal share of carrying out the projects described in 
        paragraph (2). In allocating such funds to the State 
        education agency, the Governor shall not establish 
        requirements governing the geographic distribution of 
        funds under this section.
          [(2) Projects.--Funds allocated under paragraph (1) 
        may be used to pay for the Federal share of carrying 
        out projects (in accordance with agreements under 
        subsection (b)) that--
                  [(A) provide school-to-work transition 
                services of demonstrated effectiveness that 
                increase the rate of graduation from high 
                school, or completion of the recognized 
                equivalent thereof, including services that 
                increase the rate at which school dropouts 
                return to regular or alternative schooling and 
                obtain a high school degree or its equivalent, 
                and, which may include, services to support 
                multiyear dropout prevention programs of 
                demonstrated effectiveness;
                  [(B) provide literacy and lifelong learning 
                opportunities and services of demonstrated 
                effectiveness that--
                          [(i) enhance the knowledge and skills 
                        of educationally and economically 
                        disadvantaged individuals; and
                          [(ii) result in increasing the 
                        employment and earnings of such 
                        individuals;
                  [(C) provide statewide coordinated 
                approaches, including model programs, to train, 
                place, and retain women in nontraditional 
                employment; and
                  [(D)(i) facilitate coordination of education 
                and training services for eligible participants 
                in projects described in subparagraphs (A), 
                (B), and (C); or
                  [(ii)(I) support activities pertaining to a 
                State human resources investment council that 
                meets the requirements of title VII and 
                includes each of the programs described in 
                clauses (i) through (vii) of section 
                701(b)(2)(A); or
                  [(II) support activities pertaining to a 
                State council, which carries out functions 
                similar to the functions of the State  human  
                resource  investment  council  described  in 
                title VII, if such State council was 
                established prior to July 1, 1992.
          [(3) Federal share.--The Federal share of the cost of 
        carrying out the projects described in paragraph (2) 
        shall be 50 percent.
  [(b) Agreements Required.--
          [(1) Parties to agreements.--The projects described 
        in subsection (a)(2) shall be conducted within a State 
        in accordance with agreements that--
                  [(A) reflect the goals and services described 
                in paragraphs (1), (2), and (3) of subsection 
                (c); and
                  [(B) are developed between the State 
                education agency, administrative entities in 
                service delivery areas in the State, and other 
                entities, such as other State agencies, local 
                educational agencies, and alternative service 
                providers (such as community-based and other 
                nonprofit or for-profit organizations).
          [(2) Contents of agreements.--
                  [(A) Contribution.--The agreements described 
                in paragraph (1) shall provide for the 
                contribution by the State, from funds other 
                than the funds made available under this Act, 
                of a total amount equal to the funds allotted 
                under this section.
                  [(B) Direct cost of services.--Such amount 
                may include the direct cost of employment or 
                training services--
                          [(i) provided by State or local 
                        programs or agencies; or
                          [(ii) provided by other Federal 
                        programs or agencies in accordance with 
                        applicable Federal law.
  [(c) Governor's Plan Requirements.--The State education 
agency shall submit for inclusion in the Governor's 
coordination and special services plan a description developed 
jointly by the State education agency and the Governor of--
          [(1) the goals to be achieved and services to be 
        provided by the school-to-work transition programs 
        specified in subsection (a)(2)(A) that will receive the 
        assistance, which description shall, at a minimum, 
        include information regarding--
                  [(A) the activities and services that will 
                result in increasing the number of youth 
                staying in or returning to school and 
                graduating from high school or the equivalent;
                  [(B) the work-based curriculum that will link 
                classroom learning to work site experience and 
                address the practical and theoretical aspects 
                of work;
                  [(C) the opportunities that will be made 
                available to participants to obtain career-path 
                employment and postsecondary education;
                  [(D) the integration to be achieved, in 
                appropriate circumstances, in the delivery of 
                services between State and local educational 
                agencies and alternative service providers, 
                such as community-based and nonprofit 
                organizations; and
                  [(E) the linkages that will be established, 
                where feasible, to avoid duplication and 
                enhance the delivery of services, with programs 
                under--
                          [(i) title II and part B of title IV;
                          [(ii) the Elementary and Secondary 
                        Education Act (20 U.S.C. 2701 et seq.);
                          [(iii) the Carl D. Perkins Vocational 
                        and Applied Technology Education Act 
                        (20 U.S.C. 2301 et seq.);
                          [(iv) the Individuals with 
                        Disabilities Education Act (20 U.S.C. 
                        1400 et seq.);
                          [(v) the Adult Education Act (20 
                        U.S.C. 1201 et seq.);
                          [(vii) the Stewart B. McKinney 
                        Homeless Assistance Act (Public Law 
                        100-77; 101 Stat. 482); and
                          [(viii) the National and Community 
                        Service Act of 1990 (42 U.S.C. 12501 et 
                        seq.);
          [(2) the goals to be achieved and services to be 
        provided by literacy and lifelong learning programs 
        specified in subsection (a)(2)(B) that will receive the 
        assistance, which description shall, at a minimum, 
        include information regarding--
                  [(A) the activities and services that will 
                increase the knowledge and skills of 
                educationally and economically disadvantaged 
                individuals, and result in increased employment 
                and earnings for such individuals;
                  [(B) the integration to be achieved between 
                projects assisted under this section and the 4-
                year State plan (and related needs assessment 
                carried out for the plan) developed in 
                accordance with section 342 of the Adult 
                Education Act (20 U.S.C. 1206a);
                  [(C) the variety of settings, including 
                workplace settings, in which literacy training 
                and learning opportunities will be provided; 
                and
                  [(D) the linkages that will be established, 
                where feasible, to avoid duplication and 
                enhance the delivery of services, with programs 
                under--
                          [(i) titles II and III;
                          [(ii) the Adult Education Act;
                          [(iii) the Carl D. Perkins Vocational 
                        and Applied Technology Education Act;
                          [(iv) the Stewart B. McKinney 
                        Homeless Assistance Act;
                          [(vi) the Rehabilitation Act of 1973 
                        (29 U.S.C. 701 et seq.);
                          [(vii) the National Literacy Act of 
                        1991 (Public Law 102-73);
                          [(viii) the Emergency Immigrant 
                        Education Act of 1984 (20 U.S.C. 3121 
                        et seq.); and
                          [(ix) the National and Community 
                        Service Act of 1990;
          [(3) the goals to be achieved and services to be 
        provided by the nontraditional employment for women 
        programs specified in subsection (a)(2)(C) that will 
        receive the assistance; and
          [(4) the proportion of funds received under this 
        section that will be used to achieve the goals, and 
        provide the services, described in paragraphs (1), (2), 
        and (3).
  [(d) Service Requirements.--
          [(1) Permitted services.--Services funded under this 
        section to carry out the projects described in 
        subsection (a)(2) may include education and training, 
        vocational education services, and related services, 
        provided to participants under title II. In addition, 
        services funded under this section may include services 
        for offenders, veterans, and other individuals who the 
        Governor determines require special assistance.
          [(2) Limitations on expenditures.--
                  [(A) Coordination of services.--Not more than 
                20 percent of the funds allocated under this 
                section may be expended to pay for the Federal 
share of projects described in subsection (a)(2)(D) at the State and 
local levels.
                  [(B) School-to-work services; literacy and 
                lifelong learning services.--Not less than 80 
                percent of the funds allocated under this 
                section shall be expended to pay for the 
                Federal share of projects conducted in 
                accordance with subparagraphs (A), (B), and (C) 
                of subsection (a)(2).
                  [(C) Economically disadvantaged 
                individuals.--Not less than 75 percent of the 
                funds allocated for projects under 
                subparagraphs (A), (B), and (C) of subsection 
                (a)(2) shall be expended for projects for 
                economically disadvantaged individuals who 
                experience barriers to employment. Priority for 
                funds not expended for the economically 
                disadvantaged shall be given to title III 
                participants and persons with barriers to 
                employment.
  [(e) Distribution of Funds in Absence of Agreement.--If no 
agreement is reached in accordance with subsection (b) on the 
use of funds under this section, the funds shall be available 
to the Governor to achieve the goals and provide the services 
described in paragraph (1), (2), or (3) of subsection (c).
  [(f) Reports and Records.--
          [(1) Reports by governors.--The Governor shall 
        prepare reports on the projects funded under this 
        section, including such information as the Secretary 
        may require to determine the extent to which the 
        projects supported under this section result in 
        achieving the goals specified in paragraphs (1), (2), 
        and (3) of subsection (c). The Governor shall submit 
        the reports to the Secretary at such intervals as shall 
        be determined by the Secretary.
          [(2) Records and reports of recipients.--Each direct 
        or indirect recipient of funds under this section shall 
        keep records that are sufficient to permit the 
        preparation of reports. Each recipient shall submit 
        such reports to the Secretary, at such intervals as 
        shall be determined by the Secretary.

           [identification of additional imposed requirements

  [Sec. 124. If a State or service delivery area imposes a 
requirement, including a rule, regulation, policy, or 
performance standard, relating to the administration and 
operation of programs funded by this Act (including 
requirements based on State or service delivery area 
interpretation of any Federal law, regulation, or guideline) 
the State or area shall identify the requirement as a State- or 
service delivery area-imposed requirement.

                [state labor market information programs

  [Sec. 125. (a) In order to be eligible for Federal financial 
assistance for State labor market information programs under 
this Act from funds made available under section 461(b), the 
Governor shall designate the State occupational information 
coordinating committee or other organizational unit to be 
responsible for oversight and management of a statewide 
comprehensive labor market and occupational supply and demand 
information system, which shall--
          [(1) design a comprehensive cost-efficient labor 
        market and occupational supply and demand information 
        system which--
                  [(A) is responsive to the economic demand and 
                education and training supply support needs of 
                the State and areas within the State, and
                  [(B) meets the Federal standards under 
                chapter 35 of title 44, United States Code, and 
                other appropriate Federal standards established 
                by the Bureau of Labor Statistics;
          [(2) standardize available Federal and State multi-
        agency administrative records and direct survey data 
        sources to produce an employment and economic analysis 
        with a published set of projections for the State and 
        designated areas within the State which, at the 
        minimum, includes--
                  [(A) identification of geographic and 
                occupational areas of potential growth or 
                decline; and
                  [(B) an assessment of the potential impact of 
                such growth or decline on individuals, 
                industries, and communities, including 
                occupational supply and demand characteristics 
                data;
          [(3) assure, to the extent feasible, that--
                  [(A) automated technology will be used by the 
                State;
                  [(B) administrative records have been 
                designed to reduce paperwork; and
                  [(C) multiple survey burdens on the employers 
                of the State have been reduced;
          [(4) publish and disseminate labor market and 
        occupational supply and demand information and 
        individualized career information to State agencies, 
        area public agencies, libraries, and private not-for-
        profit users, and individuals who are in the process of 
        making career decision choices;
          [(5) conduct research and demonstration projects 
        designed to improve any aspect of the statewide 
        information system; and
          [(6) provide training and technical assistance to 
        support comprehensive career guidance and participant 
        activities for local programs assisted under this Act.
  [(b)(1) The analysis required under clause (2) of subsection 
(a) shall be used to contribute in carrying out the provisions 
of this Act, the Carl D. Perkins Vocational Education Act, and 
the Act of June 6, 1933, known as the Wagner-Peyser Act.
  [(2) The assurance required by clause (3) of subsection (a) 
shall also include that the State will, to the maximum extent 
possible, assure consolidation of available administrative data 
and surveys to reduce duplication of recordkeeping of State and 
local agencies, including secondary and postsecondary 
educational institutions.
  [(3) If any Federal funds are used to carry out clause (5) of 
subsection (a), access to and information on the results will 
remain in the public domain.
  [(c) The Secretary through the National Occupational 
Information Coordinating Committee shall reimburse the States 
the costs of carrying out the provisions of this section but 
the aggregate reimbursements in any fiscal year shall not 
exceed the amount available under part E of title IV for this 
section.
  [(d) No provision of this part or any other provision of 
Federal law shall be construed to prohibit any State from 
combining or consolidating Federal administrative management 
information reporting requirements relating to employment, 
productivity, or training, if notice is transmitted by the 
Governor to the head of each appropriate Federal and State 
agency responsible for the laws governing the Federal reporting 
requirements. The notice shall specify the intent to combine or 
consolidate such requirements. The head of each appropriate 
Federal agency shall approve the combination or consolidation 
unless, within sixty days after receiving the notice, the 
Federal agency can demonstrate that the combination or 
consolidation will not meet the essential purposes of the 
affected Federal law.

                    [authority of state legislature

  [Sec. 126. Nothing in this Act shall be interpreted to 
preclude the enactment of State legislation providing for the 
implementation, consistent with the provisions of this Act, of 
the programs assisted under this Act.

                         [interstate agreements

  [Sec. 127. In the event that compliance with provisions of 
this Act would be enhanced by cooperative agreements between 
States, the consent of Congress is hereby given to such States 
to enter into such compacts and agreements to facilitate such 
compliance, subject to the approval of the Secretary.]

           TITLE I--STATE AND LOCAL ADMINISTRATIVE PROVISIONS

                PART A--STATE ADMINISTRATIVE PROVISIONS

SEC. 101. STATE PLAN.

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

SEC. 102. COLLABORATIVE PROCESS.

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

SEC. 103. STATE HUMAN RESOURCE INVESTMENT COUNCIL.

  (a) Establishment and Functions.--
          (1) In general.--Each State may, in accordance with 
        the requirements of this section, establish a single 
        State human resource investment council (in this 
        section referred to as the ``State Council'') that--
                  (A) reviews the provision of services and the 
                use of funds and resources under applicable 
                Federal human resource programs and advises the 
                Governor on methods of coordinating such 
                provision of services and use of funds and 
                resources consistent with the laws and 
                regulations governing such programs;
                  (B) advises the Governor on the development 
                and implementation of State and local standards 
                and measures relating to applicable Federal 
                human resource programs and coordination of 
                such standards and measures;
                  (C) carries out the duties and functions 
                prescribed for existing State councils 
                described under the laws relating to the 
                applicable Federal human resource programs;
                  (D) recommends to the Governor goals for the 
                development and coordination of the human 
                resource system in the State;
                  (E) prepares and recommends to the Governor a 
                strategy to be included as part of the State 
                plan under section 101 that would accomplish 
                the goals developed pursuant to paragraph (4);
                  (F) monitors the implementation of and 
                evaluate the effectiveness of the strategic 
                plan prepared pursuant to paragraph (6); and
                  (G) may serve as the collaborative process 
                described in section 102.
          (2) Applicable federal human resource program 
        defined.--
                  (A) In general.--For purposes of this 
                section, the term ``applicable Federal human 
                resource program'' includes any program 
                authorized under the provisions of law 
                describedunder paragraph (2)(A) that the 
Governor and the head of the State agency responsible for the 
administration of such program jointly agree to include within the 
jurisdiction of the State Council.
                  (B) Programs.--In accordance with the 
                requirements of subparagraph (A), applicable 
                Federal human resource programs may include the 
                programs authorized under--
                          (i) this Act;
                          (ii) the Carl D. Perkins Vocational 
                        and Applied Technology Education Act 
                        (20 U.S.C. 2301 et seq.);
                          (iii) the National and Community 
                        Service Act of 1990 (42 U.S.C. 12501 et 
                        seq.);
                          (iv) the Adult Education Act (20 
                        U.S.C. 1201 et seq.);
                          (v) the Wagner-Peyser Act (29 U.S.C. 
                        49 et seq.);
                          (vi) the employment program 
                        established under section 6(d)(4) of 
                        the Food Stamp Act of 1977 (7 U.S.C. 
                        2015(d)(4)) and title I of the Personal 
                        Responsibility and Work Opportunity 
                        Reconciliation Act of 1996; and
                          (vii) the Rehabilitation Act of 1973 
                        (29 U.S.C. 701 et seq.).
  (b) Composition.--Each State Council shall be composed of the 
individuals and entities described in section 102(a).
  (c) Administration.--
          (1) Funding.--In order to carry out the functions of 
        the State Council, each State establishing a State 
        Council that meets the requirements of this section 
        may--
                  (A) use funds otherwise available for State 
                councils under the applicable Federal human 
                resource programs;
                  (B) use funds otherwise available for State 
                administrative expenses under the applicable 
                Federal human resource programs, consistent 
                with the laws and regulations governing such 
                programs; and
                  (C) use funds, services, personnel, 
                facilities and information provided by State 
                and local public agencies, with the consent of 
                such agencies.
          (2) Personnel.--Each State Council may obtain the 
        services of such professional, technical, and clerical 
        personnel as may be necessary to carry out its 
        functions.
          (3) Equitable funding.--Each State agency 
        participating in a State Council under this section is 
        encouraged to provide funds to support such Council in 
        a manner consistent with its representation on such 
        Council.

                PART B--LOCAL ADMINISTRATIVE PROVISIONS

SEC. 121. LOCAL WORKFORCE DEVELOPMENT AREAS.

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

SEC. 122. LOCAL WORKFORCE DEVELOPMENT BOARDS.

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

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

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

SEC. 124. IDENTIFICATION OF TRAINING PROVIDERS.

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

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

                 PART C--PROGRAM AND FISCAL PROVISIONS

                     Subpart 1--General Provisions

                     [general program requirements

  [Sec. 141.]

SEC. 141. GENERAL PROGRAM REQUIREMENTS.

  Except as otherwise provided, the following conditions are 
applicable to all programs under this Act:
          [(a)] (1) Each job training plan shall provide 
        employment and training opportunities to those who can 
        benefit from, and who are most in need of, such 
        opportunities [and shall make efforts to provide 
        equitable services among substantial segments of the 
        eligible population.]. In addition, efforts shall be 
        made to develop programs which contribute to 
        occupational development, upward mobility, development 
        of new careers, and overcoming sex-stereotyping in 
        occupations traditional for the other sex.
          [(b)] (2) Funds provided under this Act shall only be 
        used for activities which are in addition to those 
        which would otherwise be available in the area in the 
        absence of such funds.
  [(c)(1) No funds provided under this Act shall be used or 
proposed for use to encourage or induce the relocation, of an 
establishment or part thereof, that results in a loss of 
employment for any employee of such establishment at the 
original location.
  [(2) No funds provided under this Act shall be used for 
customized or skill training, on-the-job training, or company 
specific assessments of job applicants or employees, for any 
establishment or part thereof, that has relocated, until 120 
days after the date on which such establishment commences 
operations at the new location, if the relocation of such 
establishment or part thereof, results in a loss of employment 
for any employee of such establishment at the original 
location.
  [(3) If a violation of paragraph (1) or (2) is alleged, the 
Secretary shall conduct an investigation to determine whether a 
violation has occurred.
  [(4) If the Secretary determines that a violation of 
paragraph (1) or (2) has occurred, the Secretary shall require 
the State, service delivery area, or substate grantee that has 
violated paragraph (1) or (2) to--
          [(A) repay to the United States an amount equal to 
        the amount expended in violation of paragraph (1) or 
        (2), in accordance with subsection (d) or (e) of 
        section 164; and
          [(B) pay an additional amount equal to the amount 
        required to be repaid under subparagraph (A), unless 
        the State, service delivery area, or substate grantee 
        demonstrates to the Secretary that it neither knew nor 
        reasonably could have known (after an inquiry 
        undertaken with due diligence) that it provided funds 
        in violation of paragraph (1) or (2).
  [(5) Amounts received under paragraph (4)(B) shall be 
deposited in a special account in the Treasury for use by the 
Secretary for carrying out title III.
  [(d)(1) Training provided with funds made available under 
this Act shall be only for occupations for which there is a 
demand in the area served or in another area to which the 
participant is willing to relocate, and consideration in the 
selection of training programs may be given to training in 
occupations determined to be in sectors of the economy which 
have a high potential for sustained demand or growth.
  [(2) Efforts shall be made to develop programs which 
contribute to occupational development, upward mobility, 
development of new careers, and overcoming sex-stereotyping in 
occupations traditional for the other sex.
  [(3)(A) Commercially available training packages, including 
advanced learning technology, may be purchased for off-the-
shelf prices and without requiring a breakdown of the cost 
components of the package if such packages are purchased 
competitively and include performance criteria.
  [(B) Tuition charges for training or education provided by an 
institution of higher education (as defined in section 1201(a) 
of the Higher Education Act of 1965 (20 U.S.C. 1141(a))) or a 
proprietary institution of higher education (as defined in 
section 481(b) of such Act (20 U.S.C. 1088(b))), that are not 
more than the charges for such training or education made 
available to the general public, do not require a breakdown of 
cost components.
  [(C) With respect to funds provided from the allocation to a 
service delivery area for any program year that are expended 
byany community-based organization or nonprofit organization for the 
cost of administration under part A or C of title II, the service 
delivery area shall not be subject to the limitation contained in 
section 108(b)(4)(A) if--
          [(i) such funds are expended pursuant to an agreement 
        under which not less than 90 percent of the funds 
        provided to the community-based organization or 
        nonprofit organization are to be expended for the costs 
        of direct training and training-related and supportive 
        services;
          [(ii) the expenditures of such funds are charged by 
        the service delivery area to the appropriate cost 
        category;
          [(iii) the expenditure of such funds does not result 
        in the service delivery area exceeding the limitation 
        contained in section 108(b)(4)(A) by more than 25 
        percent of such limitation; and
          [(iv) the service delivery area is in compliance with 
        the limitation contained in section 108(b)(4)(B) for 
        such program year, except that such limitation shall be 
        reduced by a percentage equal to one-half of the 
        percentage by which the expenditures of the service 
        delivery area under this subparagraph exceed the 
        limitation under section 108(b)(4)(A).
  [(4) Placements made in unsubsidized employment shall be, to 
the extent practicable, in occupational areas related to the 
training provided to the participant.]
          (3) Relocation.--
                  (A) Prohibition on use of funds to encourage 
                or induce relocation.--No funds provided under 
                title II, III, or IV shall be used or proposed 
                for use to encourage or induce the relocation, 
                of a business or part of a business, that 
                results in a loss of employment for any 
                employee of such business at the original 
                location, if such original location is within 
                the United States.
                  (B) Prohibition on use of funds for 
                customized or skill training and related 
                activities after relocation.--No funds provided 
                under title II, III, or IV for an employment 
                and training activity shall be used for 
                customized or skill training, on-the-job 
                training, or company-specific assessments of 
                job applicants or employees, for any business 
                or part of a business, that has relocated, 
                until 120 days after the date on which such 
                business commences operations at the new 
                location, if the relocation of such business or 
                part of a business, results in a loss of 
                employment for any employee of such business at 
                the original location and such original 
                location is within the United States.
                  (C) Repayment.--If the Secretary of Labor 
                determines that a violation of paragraph (1) or 
                (2) has occurred, the Secretary shall require 
                the State that has violated such paragraph to 
                repay to the United States an amount equal to 
                the amount expended in violation of such 
                paragraph.
  [(e)(1) Only eligible individuals residing in the service 
delivery area may be served by employment and training 
activities funded under title II, except that the job training 
plan may provide for limited exceptions to this requirement, 
including exceptions necessary to permit services to homeless 
individuals who cannot prove residence within the service 
delivery area.
    [(2) Any service delivery area] (4) Any local workforce 
development area may enter into an agreement or contract with 
another [service delivery area] local workforce development 
area (including a [service delivery area] local workforce 
development area that is a city or county within the same labor 
market) to pay or share the cost of educating, training, or 
placing individuals participating in programs assisted under 
this Act, including the provision of supportive services. Such 
agreement or contract shall be approved by each [private 
industry council] local workforce development board providing 
guidance to the [service delivery area] local workforce 
development area and shall be described in the job training 
plan under [section 104] section 122(d)(1).
  [(f) No member of any council under this Act shall cast a 
vote on the provision of services by that member (or any 
organization which that member directly represents) or vote on 
any matter which would provide direct financial benefit to that 
member.
  [(g)(1) Payments to employers for on-the-job training shall 
not, during the period of such training, average more than 50 
percent of the wages paid by the employer to such participants, 
and payments in such amount shall be deemed to be in 
compensation for the extraordinary costs associated with 
training participants under this Act and in compensation for 
the costs associated with the lower productivity of such 
participants.
  [(2) On-the-job training authorized under the Act for a 
participant shall be limited in duration to a period not in 
excess of that generally required for acquisition of skills 
needed for the position within a particular occupation, but in 
no event shall exceed 6 months, unless the total number of 
hours of such training is less than 500 hours. In determining 
the period generally required for acquisition of the skills, 
consideration shall be given to recognized reference material 
(such as the Dictionary of Occupational Titles), the content of 
the training of the participant, the prior work experience of 
the participant, and the service strategy of the participant.
  [(3)(A) Each on-the-job training contract shall--
          [(i) specify the types and duration of on-the-job 
        training and the other services to be provided in 
        sufficient detail to allow for a fair analysis of the 
        reasonableness of proposed costs; and
          [(ii) comply with the applicable requirements of 
        section 164.
  [(B) Each on-the-job training contract that is not directly 
contracted by a service delivery area with an employer (but 
instead is contracted through an intermediary brokering 
contractor) shall, in addition to meeting the requirements of 
subparagraph (A), specify the outreach, recruitment, 
participant training, counseling, placement, monitoring, 
followup, and other services to be provided directly by the 
brokering contractor within its own organization, the services 
to be provided by the employers conducting the on-the-job 
training, and the services to be provided, with or without 
cost, by other agencies and subcontractors.
  [(C) If a brokering contractor enters into a contract with a 
subcontractor to provide training or other services, the 
brokering contractor shall ensure, through on-site monitoring, 
compliance with subcontract terms prior to making payment to 
the subcontractor.]
  [(4) In accordance with regulations issued by the Secretary, 
on-the-job training contracts] (5) On-the-job training 
contracts under this Act shall not be entered into with 
employers who have received payments under previous contracts 
and have exhibited a pattern of failing to provide on-the-job 
training participants with continued long-term employment as 
regular employees with wages and employment benefits (including 
health benefits) and working conditions at the same level and 
to the same extent as other employees working a similar length 
of time and doing the same type of work.
  [(h) Funds provided under this Act shall not be used to 
duplicate facilities or services available in the area (with or 
without reimbursement) from Federal, State, or local sources, 
unless the plan establishes that alternative services or 
facilities would be more effective or more likely to achieve 
performance goals.
  [(i) Each administrative entity shall be responsible for the 
allocation of funds and the eligibility of those enrolled in 
its programs and shall have responsibility to take action 
against its subcontractors, subgrantees, and other recipients 
to eliminate abuses in the programs they are carrying out, and 
to prevent any misuse of funds by such subcontractors, 
subgrantees, and other recipients. Administrative entities may 
delegate the responsibility for determination of eligibility 
under reasonable safeguards, including provisions for 
reimbursement of cost incurred because of erroneous 
determinations made with insufficient care, if such an 
arrangement is included in an approved job training plan.]
          (6)(A) Upon the approval of the Governor, real 
        property in which, as of July 1, 1998, equity has 
        resulted from funds provided under title III of the 
        Social Security Act, section 903(c) of such Act 
        (commonly referred to as the ``Reed Act''), or the 
        Wagner-Peyser Act (29 U.S.C. 49 et seq.) may be used 
        for the purposes of a full service employment and 
        training delivery center.
          (B) Unless otherwise provided in a plan approved 
        pursuant to section 101, subsequent to the commencement 
        of the use of the property described in paragraph (1) 
        for the purposes of a full service employment and 
        training delivery center, funds provided under the 
        provisions of law described paragraph (1) may only be 
        used to acquire further equity in such property, or to 
        pay operating and maintenance expenses relating to such 
        property in proportion to the extent of the use of such 
        property attributable to the activities authorized 
        under such provisions of law.
          [(j)] (7) No person or organization may charge an 
        individual a fee for the placement or referral of such 
        individual in or to a training program under this Act.
  [(k) No funds may be provided under this Act for any 
subsidized employment with any private for-profit employer 
unless the individual employed is a youth aged 16 to 21, 
inclusive, who is economically disadvantaged and the employment 
is provided in accordance with subparagraphs (F) and (H) of 
section 264(c)(1).]
          [(l)] (8) The Secretary shall not provide financial 
        assistance for any program under this Act which 
        involves political activities.
          [(m)(1)] (9)(A) Income under any program administered 
        by a public or private nonprofit entity may be retained 
        by such entity only if used to continue to carry out 
        the program.
          [(2)] (B) Income subject to the requirements of 
        paragraph (1) shall include--
                  [(A)] (i) receipts from goods or services 
                (including conferences) provided as a result of 
                activities funded under the Act;
                  [(B)] (ii) funds provided to a service 
                provider under the Act that are in excess of 
                the costs associated with the services 
                provided; and
                  [(C)] (iii) interest income earned on funds 
                received under this Act.
          [(3)] (C) For the purposes of this subsection, each 
        entity receiving financial assistance under this Act 
        shall maintain records sufficient to determine the 
        amount of income received and the purposes for which 
        such income is expended.
          [(n)] (10) The Secretary shall notify the Governor 
        and the appropriate [private industry councils] local 
        workforce development boards and chief elected 
        officials of, and consult with the Governor and such 
        [councils] boards and officials concerning, any 
        activity to be funded by the Secretary under [this Act] 
        title II or title III within the State or [service 
        delivery area] local workforce development area; and 
        the Governor shall notify the appropriate [private 
        industry councils] local workforce development boards 
        and chief elected officials of, and consult with such 
        concerning, any activity to be funded by the Governor 
        under [this Act] title II or title III within the 
        [service delivery area] local workforce development 
        area.
          [(o)(1)] (11)(A) All education programs for youth 
        supported with funds provided under title II shall be 
        consistent with applicable State and local educational 
        standards.
          [(2)] (B) Standards and procedures with respect to 
        the awarding of academic credit and certifying 
        educational attainment in programs conducted under such 
        title shall be consistent with the requirements of 
        applicable State and local law and regulation.
          [(p)] (12) No funds available under [part B of this 
        title or part A or C of title II] this Act may be used 
        for public service employment except as specifically 
        authorized under this Act.
          [(q)] (13) No funds available under this Act shall be 
        used for employment generating activities, economic 
        development activities, investment in revolving loan 
        funds, capitalization of businesses, investment in 
        contract bidding resource centers, and similar 
        activities which are not directly related to training 
        or related services for eligible individuals under this 
        Act. No funds under title II or III of this Act shall 
        be used for foreign travel.
          [(r)] (14) The Federal requirements governing the 
        title, use, and disposition of real property, 
        equipment, and supplies purchased with funds provided 
        under this Act shall be the Federal requirements 
        generally applicable to Federal grants to States and 
        local governments.
          [(s)(1) Notwithstanding title II of the Federal 
        Property and Administrative Services Act of 1949 (40 
        U.S.C. 481 et seq.) and any other provision of law, the 
        Secretary and the Secretary of Education shall receive 
        priority by the Secretary of Defense for the direct 
        transfer, on a nonreimbursable basis, of the property 
        described in paragraph (2) for use in carrying out 
        programs under this Act or under any other Act.
          [(2) The property described in this paragraph is both 
        real and personal property under the control of the 
        Department of Defense that is not used by such 
        Department, including property that the Secretary of 
        Defense determines is in excess of current and 
        projected requirements of such Department.]
          (15) Prohibition on entitlement to service.--Nothing 
        in this Act shall be construed to provide an individual 
        with an entitlement to a service under this Act.
          (16) Fee for service authority.--Services, 
        facilities, and equipment funded under titles II and 
        III may be used, as appropriate, on a fee for service 
        basis, by employers in a local workforce development 
        area in order to provide employment and training 
        services to incumbent workers--
                  (A) when such services, facilities, or 
                equipment are not in use for the provision of 
                services for eligible program participants 
                under title II or title III, respectively;
                  (B) if such use would not have an adverse 
                effect on the provision of services to eligible 
                program participants under title II or title 
                III, respectively; and
                  (C) if the income derived from such fees is 
                used to carry out the programs authorized under 
                title II or title III, respectively.

                               [benefits

  [Sec. 142. (a) Except as otherwise provided in this Act, the 
following provisions shall apply to all activities financed 
under this Act:
          [(1) A trainee shall receive no payments for training 
        activities in which the trainee fails to participate 
        without good cause.
          [(2) Individuals in on-the-job training shall be 
        compensated by the employer at the same rates, 
        including periodic increases, as similarly situated 
        employees or trainees and in accordance with applicable 
        law, but in no event less than the higher of the rate 
        specified in section 6(a)(1) of the Fair Labor 
        Standards Act of 1938 or the applicable State or local 
        minimum wage law.
          [(3) Individuals employed in activities authorized 
        under this Act shall be paid wages which shall not be 
        less than the highest of (A) the minimum wage under 
        section 6(a)(1) of the Fair Labor Standards Act of 
        1938, (B) the minimum wage under the applicable State 
        or local minimum wage law, or (C) the prevailing rates 
        of pay for individuals employed in similar occupations 
        by the same employer.]

SEC. 142. BENEFITS.

  (a) Wages.--
          (1) In general.--Individuals in on-the-job training 
        or individuals employed in activities under this Act 
        shall be compensated at the same rates, including 
        periodic increases, as trainees or employees who are 
        similarly situated in similar occupations by the same 
        employer and who have similar training, experience and 
        skills, and such rates shall be in accordance with 
        applicable law, but in no event less than the higher of 
        the rate specified in section 6(a)(1) of the Fair Labor 
        Standards Act of 1938 (29 U.S.C. 206(a)(1)) or the 
        applicable State or local minimum wage law.
          [(4)] (2) References.--References in paragraphs (2) 
        and (3) to section 6(a)(1) of the Fair Labor Standards 
        Act of 1938 (29 U.S.C. 206(a)(1))--
                  (A) shall be deemed to be references to 
                section 6(c) of that Act for individuals in the 
                Commonwealth of Puerto Rico;
                  (B) shall be deemed to be references to 
                section 6(a)(3) of that Act for individuals in 
                American Samoa; and
                  (C) shall not be applicable for individuals 
                in other territorial jurisdictions in which 
                section 6 of the Fair Labor Standards Act of 
                1938 does not apply.
  (b) [Allowances] Additional Requirement.--Allowances, 
earnings and payments to individuals participating in programs 
under this Act shall not be considered as income for the 
purposes of determining eligibility for and the amount of 
income transfer and in-kind aid furnished under any Federal or 
federally assisted program based on need, other than as 
provided under the Social Security Act.

                            [labor standards

  [Sec. 143. (a)(1) Conditions of employment and training shall 
be appropriate and reasonable in light of such factors as the 
type of work, geographical region, and proficiency of the 
participant.
  [(2) Health and safety standards established under State and 
Federal law, otherwise applicable to working conditions of 
employees, shall be equally applicable to working conditions of 
participants. With respect to any participant in a program 
conducted under this Act who is engaged in activities which are 
not covered by health and safety standards under the 
Occupational Safety and Health Act of 1970, the Secretary shall 
prescribe, by regulation, such standards as may be necessary to 
protect the health and safety of such participants.
  [(3) To the extent that a State workers' compensation law is 
applicable, workers' compensation benefits in accordance with 
such law shall be available with respect to injuries suffered 
by participants. To the extent that such law is not applicable, 
each recipient of funds under this Act shall secure insurance 
coverage for injuries suffered by such participants, in 
accordance with regulations prescribed by the Secretary.
  [(4) All individuals employed in subsidized jobs shall be 
provided benefits and working conditions at the same level and 
to the same extent as other employees working a similar length 
of time and doing the same type of work.
  [(5) No funds available under this Act may be used for 
contributions on behalf of any participant to retirement 
systems or plans.
  [(b)(1) No currently employed worker shall be displaced by 
any participant (including partial displacement such as a 
reduction in the hours of nonovertime work, wages, or 
employment benefits).
  [(2) No program under this Act shall impair--
          [(A) existing contracts for services; or
          [(B) existing collective bargaining agreements, 
        unless the employer and the labor organization concur 
        in writing with respect to any elements of the proposed 
        activities which affect such agreement, or either such 
        party fails to respond to written notification 
        requesting its concurrence within 30 days of receipt 
        thereof.
  [(3) No participant shall be employed or job opening filled 
(A) when any other individual is on layoff from the same or any 
substantially equivalent job, or (B) when the employer has 
terminated the employment of any regular employee or otherwise 
reduced its workforce with the intention of filling the vacancy 
so created by hiring a participant whose wages are subsidized 
under this Act.
  [(4) No jobs shall be created in a promotional line that will 
infringe in any way upon the promotional opportunities of 
currently employed individuals.
  [(c)(1) Each recipient of funds under this Act shall provide 
to the Secretary assurances that none of such funds will be 
used to assist, promote, or deter union organizing.
  [(2) Where a labor organization represents a substantial 
number of employees who are engaged in similar work or training 
in the same area as that proposed to be funded under this Act, 
an opportunity shall be provided for such organization to 
submit comments with respect to such proposal.
  [(d) All laborers and mechanics employed by contractors or 
subcontractors in any construction, alteration, or repair, 
including painting and decorating, of projects, buildings, and 
works which are federally assisted under this Act, shall be 
paid wages at rates not less than those prevailing on similar 
construction in the locality as determined by the Secretary in 
accordance with the Act of March 3, 1931 (40 U.S.C. 276a-276a-
5), popularly known as the Davis-Bacon Act. The Secretary shall 
have, with respect to such labor standards, the authority and 
functions set forth in Reorganization Plan Numbered 14 of 1950 
(15 F.R. 3176; 64 Stat. 1267) and section 2 of the Act of June 
1, 1934, as amended (48 Stat. 948, as amended; 40 U.S.C. 
276(c)). The provisions of this subsection shall not apply to a 
bona fide trainee in a training program under this Act. The 
provisions of section 167(a)(4) shall apply to such trainees.

                          [grievance procedure

  [Sec. 144. (a) Each administrative entity, contractor, and 
grantee under this Act shall establish and maintain a grievance 
procedure for grievances or complaints about its programs and 
activities from participants, subgrantees, subcontractors, and 
otherinterested persons. Hearings on any grievance shall be 
conducted within 30 days of filing of a grievance and decisions shall 
be made not later than 60 days after the filing of a grievance. Except 
for complaints alleging fraud or criminal activity, complaints shall be 
made within one year of the alleged occurrence.
  [(b) Each recipient of financial assistance under this Act 
which is an employer of participants under this Act shall 
continue to operate or establish and maintain a grievance 
procedure relating to the terms and conditions of employment.
  [(c) Upon exhaustion of a recipient's grievance procedure 
without decision, or where the Secretary has reason to believe 
that the recipient is failing to comply with the requirements 
of this Act or the terms of the job training plan, the 
Secretary shall investigate the allegation or belief and 
determine within 120 days after receiving the complaint whether 
such allegation or complaint is true.
  [(d)(1) If a person alleges a violation of section 143 and 
such person exhausts the recipient's grievance procedure or the 
60-day time period described in subsection (a) has elapsed 
without a decision, either party to such procedure may submit 
the grievance to the Secretary. The Secretary shall investigate 
the allegations contained in the grievance and make a 
determination as to whether a violation of section 143 has 
occurred.
  [(2) If the results of the investigation conducted pursuant 
to paragraph (1) indicate that a modification or reversal of 
the decision issued pursuant to the recipient's grievance 
procedure is warranted, or the 60-day time period described in 
subsection (a) has elapsed without a decision, the Secretary 
may modify or reverse the decision, or issue a decision if no 
decision has been issued, as the case may be, after an 
opportunity for a hearing in accordance with the procedures 
under section 166.
  [(3) If the Secretary determines that the decision issued 
pursuant to the recipient's grievance procedure is appropriate, 
the determination shall become the final decision of the 
Secretary.
  [(e)(1) A person alleging a violation of section 143 may, as 
an alternative to the procedures described in this section, 
submit the grievance involving such violation to a binding 
grievance procedure if a collective bargaining agreement 
covering the parties to the grievance so provides.
  [(2) The remedies available under paragraph (1) shall be 
limited to the remedies available under subsection (f)(1)(C) 
and subsection (f)(2).
  [(f)(1) Except as provided in paragraph (2), remedies 
available to grievants under this section for violations of 
section 143 shall be limited to--
          [(A) suspension or termination of payments under this 
        Act;
          [(B) prohibition of placement of a participant, for 
        an appropriate period of time, in a program under this 
        Act with an employer that has violated section 143, as 
        determined under subsection (d) or (e); and
          [(C) appropriate equitable relief (other than back 
        pay).
  [(2) In addition to the remedies available under paragraph 
(1), remedies available under this section for violations of 
subsection (a)(4), paragraphs (1) and (3) of subsection (b), 
and subsection (d) of section 143 may include--
          [(A) reinstatement of the grievant to the position 
        held by such grievant prior to displacement;
          [(B) payment of lost wages and benefits; and
          [(C) reestablishment of other relevant terms, 
        conditions, and privileges of employment.
  [(g) Nothing in subsection (f) shall be construed to prohibit 
a grievant from pursuing a remedy authorized under another 
Federal, State, or local law for a violation of section 143.]

SEC. 143. LABOR STANDARDS.

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

SEC. 144. GRIEVANCE PROCEDURE.

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

           [prohibition against federal control of education

  [Sec. 145.]

SEC. 145. PROHIBITION AGAINST FEDERAL CONTROL OF EDUCATION.

  No provision of this Act shall be construed to authorize any 
department, agency, officer, or employee of the United States 
to exercise any direction, supervision, or control over the 
curriculum, program of instruction, administration, or 
personnel of any educational institution, school, or school 
system, or over the selection of library resources, textbooks, 
or other printed or published instructional materials by any 
educational institution or school system.

SEC. 146. IDENTIFICATION OF ADDITIONAL IMPOSED REQUIREMENTS.

  If a State or workforce development area imposes a 
requirement, including a rule, regulation, policy, or 
performance standard, relating to the administration and 
operation of programs funded by this Act (including 
requirements based on State or workforce development area 
interpretation of any Federal law, regulation, or guideline) 
the State or area shall identify the requirement as a State- or 
workforce development area-imposed requirement.

SEC. 147. AUTHORITY OF STATE LEGISLATURE.

  Nothing in this Act shall be interpreted to preclude the 
enactment of State legislation providing for the 
implementation, consistent with the provisions of this Act, of 
the programs assisted under this Act. Any funds received by a 
State under title II or III of this Act shall be subject to 
appropriation by the State legislature, consistent with the 
terms and conditions required under this Act.

SEC. 148. INTERSTATE AGREEMENTS.

  In the event that compliance with provisions of this Act 
would be enhanced by cooperative agreements between States, the 
consent of Congress is hereby given to such States to enter 
into such compacts and agreements to facilitate such 
compliance, subject to the approval of the Secretary.

            Subpart 2--Performance Accountability Provisions

SEC. 151. PERFORMANCE ACCOUNTABILITY SYSTEM.

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

SEC. 152. INDICATORS OF PERFORMANCE.

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

SEC. 153. STATE ADJUSTED BENCHMARKS.

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

SEC. 154. CORE INDICATORS OF PERFORMANCE.

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

SEC. 155. REPORT ON PERFORMANCE.

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

SEC. 156. INCENTIVE GRANTS AND SANCTIONS.

  (a) Incentive Grants.--
          (1) Award of grants.--From amounts made available 
        under section 452 and section 502 for any fiscal year, 
        the appropriate Secretary may award incentive grants to 
        States that--
                  (A) exceed, during the most recent 12-month 
                period for which data are available, the 
                adjusted State benchmarks described under 
                section 153(a);
                  (B) demonstrate continuing progress toward 
                exceeding, during the 3-year period covered by 
                the State plan submitted under section 101, the 
                adjusted State benchmarks described under 
                section 153(a); or
                  (C) demonstrate significant progress in the 
                coordination and integration of employment, 
                training, literacy, and other human resource 
                and workforce preparation programs within the 
                State, and demonstrate high performance in such 
                programs.
          (2) Technical assistance.--The Secretary, upon 
        request, shall provide technical assistance to any 
        State that does not qualify for receipt of an incentive 
        grant under paragraph (1).
          (3) Use of funds.--A State that receives an incentive 
        grant under paragraph (1) may use funds made available 
        under such grant only to carry out employment, 
        training, or literacy activities.
  (b) Sanctions.--
          (1) States.--
                  (A) Technical assistance.--If a State fails 
                to meet expected levels of performance for a 
                program for any program year as established 
                pursuant to section 153(a), the Secretary of 
                Labor for programs established under title II 
                and title III, or the Secretary of Education 
                for programs established under the Adult 
                Education and Family Literacy Act, shall, upon 
                request, provide technical assistance, 
                including assistance in the development of a 
                performance improvement plan.
                  (B) Reduction in amount of grant.--If such 
                failure continues for a second consecutive 
                year, the appropriate Secretary may reduce by 
                not more than 5 percent, the amount of the 
                grant that would (in the absence of this 
                paragraph) be payable to the State under such 
                program for the immediately succeeding program 
                year. Such penalty shall be based on the degree 
                of failure to meet adjusted levels of 
                performance.
          (2) Local areas.--
                  (A) Technical assistance.--If a local 
                workforce development area, or other applicable 
                local administrative entity, fails to meet 
                expected levels of performance for a program 
                for any program year under section 153(b), the 
                Governor, upon request to the Secretary, shall 
                provide technical assistance, including the 
                development of a performance improvement plan.
                  (B) Corrective actions.--
                          (i) In general.--If such failure 
                        continues for a second consecutive 
                        year, the Governor shall take 
                        corrective actions, which may include 
                        development of a reorganization plan 
                        through which the Governor may require