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113th Congress } { Rept 113-14
1st Session } HOUSE OF REPRESENTATIVES { Part 1
_______________________________________________________________________
SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS ACT
----------
R E P O R T
of the
COMMITTEE ON EDUCATION AND THE WORKFORCE
to accompany
H.R. 803
together with
MINORITY VIEWS
March 12, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS ACT
113th Congress
1st Session HOUSE OF REPRESENTATIVES Rept. 113-14
Part 1
_______________________________________________________________________
SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS ACT
__________
R E P O R T
of the
COMMITTEE ON EDUCATION AND THE WORKFORCE
to accompany
H.R. 803
together with
MINORITY VIEWS
March 12, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
113th Congress Rept. 113-14
HOUSE OF REPRESENTATIVES
1st Session Part 1
======================================================================
SUPPORTING KNOWLEDGE AND INVESTING IN LIFELONG SKILLS ACT
_______
March 12, 2013.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Kline, from the Committee on Education and the Workforce, submitted
the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 803]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and the Workforce, to whom was
referred the bill (H.R. 803) to reform and strengthen the
workforce investment system of the Nation to put Americans back
to work and make the United States more competitive in the 21st
century, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Supporting Knowledge and Investing in
Lifelong Skills Act'' or the ``SKILLS Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Effective date.
TITLE I--AMENDMENTS TO THE WORKFORCE INVESTMENT ACT OF 1998
Subtitle A--Workforce Investment Definitions
Sec. 101. Definitions.
Subtitle B--Statewide and Local Workforce Investment Systems
Sec. 102. Purpose.
Sec. 103. State workforce investment boards.
Sec. 104. State plan.
Sec. 105. Local workforce investment areas.
Sec. 106. Local workforce investment boards.
Sec. 107. Local plan.
Sec. 108. Establishment of one-stop delivery system.
Sec. 109. Identification of eligible providers of training services.
Sec. 110. General authorization.
Sec. 111. State allotments.
Sec. 112. Within State allocations.
Sec. 113. Use of funds for employment and training activities.
Sec. 114. Performance accountability system.
Sec. 115. Authorization of appropriations.
Subtitle C--Job Corps
Sec. 116. Job Corps purposes.
Sec. 117. Job Corps definitions.
Sec. 118. Individuals eligible for the Job Corps.
Sec. 119. Recruitment, screening, selection, and assignment of
enrollees.
Sec. 120. Job Corps centers.
Sec. 121. Program activities.
Sec. 122. Counseling and job placement.
Sec. 123. Support.
Sec. 124. Operations.
Sec. 125. Community participation.
Sec. 126. Workforce councils.
Sec. 127. Technical assistance.
Sec. 128. Special provisions.
Sec. 129. Performance accountability management.
Subtitle D--National Programs
Sec. 130. Technical assistance.
Sec. 131. Evaluations.
Subtitle E--Administration
Sec. 132. Requirements and restrictions.
Sec. 133. Prompt allocation of funds.
Sec. 134. Fiscal controls; sanctions.
Sec. 135. Reports to Congress.
Sec. 136. Administrative provisions.
Sec. 137. State legislative authority.
Sec. 138. General program requirements.
Sec. 139. Federal agency staff.
Subtitle F--State Unified Plan
Sec. 140. State unified plan.
TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION
Sec. 201. Amendment.
TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT
Sec. 301. Amendments to the Wagner-Peyser Act.
TITLE IV--REPEALS AND CONFORMING AMENDMENTS
Sec. 401. Repeals.
Sec. 402. Amendment to the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980.
Sec. 403. Amendments to the Food and Nutrition Act of 2008.
Sec. 404. Amendments to section 412 of the Immigration and Nationality
Act.
Sec. 405. Amendments relating to the Second Chance Act of 2007.
Sec. 406. Amendments to the Omnibus Crime Control and Safe Streets Act
of 1968.
Sec. 407. Conforming amendments to the United States Code.
Sec. 408. Conforming amendment to table of contents.
TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973
Sec. 501. Findings.
Sec. 502. Rehabilitation services administration.
Sec. 503. Definitions.
Sec. 504. State plan.
Sec. 505. Scope of services.
Sec. 506. Standards and indicators.
Sec. 507. Collaboration with industry.
Sec. 508. Reservation for expanded transition services.
Sec. 509. Client assistance program.
Sec. 510. Title III amendments.
Sec. 511. Repeal of title VI.
Sec. 512. Chairperson.
Sec. 513. Authorizations of appropriations.
Sec. 514. Conforming amendments.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, wherever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the amendment or repeal shall be
considered to be made to a section or other provision of the Workforce
Investment Act of 1998 (29 U.S.C. 9201 et seq.).
SEC. 4. EFFECTIVE DATE.
Except as otherwise provided, this Act and the amendments made by
this Act shall be effective with respect to fiscal year 2014 and
succeeding fiscal years.
TITLE I--AMENDMENTS TO THE WORKFORCE INVESTMENT ACT OF 1998
Subtitle A--Workforce Investment Definitions
SEC. 101. DEFINITIONS.
Section 101 (29 U.S.C. 2801) is amended--
(1) by striking paragraphs (13) and (24);
(2) by redesignating paragraphs (1) through (12) as
paragraphs (3) through (14), and paragraphs (14) through (23)
as paragraphs (15) through (24), respectively;
(3) by striking paragraphs (52) and (53);
(4) by inserting after ``In this title:'' the following new
paragraphs:
``(1) Accrued expenditures.--The term `accrued expenditures'
means charges incurred by recipients of funds under this title
for a given period requiring the provision of funds for goods
or other tangible property received; services performed by
employees, contractors, subgrantees, subcontractors, and other
payees; and other amounts becoming owed under programs assisted
under this title for which no current services or performance
is required, such as annuities, insurance claims, and other
benefit payments.
``(2) Administrative costs.--The term `administrative costs'
means expenditures incurred by State and local workforce
investment boards, direct recipients (including State grant
recipients under subtitle B and recipients of awards under
subtitles C and D), local grant recipients, local fiscal agents
or local grant subrecipients, and one-stop operators in the
performance of administrative functions and in carrying out
activities under this title which are not related to the direct
provision of workforce investment services (including services
to participants and employers). Such costs include both
personnel and non-personnel and both direct and indirect.'';
(5) in paragraph (3) (as so redesignated), by striking
``Except in sections 127 and 132, the'' and inserting ``The'';
(6) by amending paragraph (5) (as so redesignated) to read as
follows:
``(5) Area career and technical education school.--The term
`area career and technical education school' has the meaning
given the term in section 3(3) of the Carl D. Perkins Career
and Technical Education Act of 2006 (20 U.S.C. 2302(3)).'';
(7) in paragraph (6) (as so redesignated), by inserting ``(or
such other level as the Governor may establish)'' after ``8th
grade level'';
(8) in paragraph (10)(C) (as so redesignated), by striking
``not less than 50 percent of the cost of the training'' and
inserting ``a significant portion of the cost of training, as
determined by the local board (or, in the case of an employer
in multiple local areas in the State, as determined by the
Governor), taking into account the size of the employer and
such other factors as the local board determines to be
appropriate'';
(9) in paragraph (11) (as so redesignated)--
(A) in subparagraph (A)(ii)(II), by striking
``section 134(c)'' and inserting ``section 121(e)'';
(B) in subparagraph (B)(iii)--
(i) by striking ``134(d)(4)'' and inserting
``134(c)(4)''; and
(ii) by striking ``intensive services
described in section 134(d)(3)'' and inserting
``work ready services described in section
117(d)(5)(C)'';
(C) in subparagraph (C), by striking ``or'' after the
semicolon;
(D) in subparagraph (D), by striking the period and
inserting ``; or''; and
(E) by adding at the end the following:
``(E)(i) is the spouse of a member of the Armed
Forces on active duty for a period of more than 30 days
(as defined in section 101(d)(2) of title 10, United
States Code) who has experienced a loss of employment
as a direct result of relocation to accommodate a
permanent change in duty station of such member; or
``(ii) is the spouse of a member of the Armed Forces
on active duty who meets the criteria described in
paragraph (12)(B).'';
(10) in paragraph (12)(A) (as redesignated)--
(A) by striking ``and'' after the semicolon and
inserting ``or'';
(B) by striking ``(A)'' and inserting ``(A)(i)''; and
(C) by adding at the end the following:
``(ii) is the spouse of a member of the Armed Forces
on active duty for a period of more than 30 days (as
defined in section 101(d)(2) of title 10, United States
Code) whose family income is significantly reduced
because of a deployment (as defined in section 991(b)
of title 10, United States Code, or pursuant to
paragraph (4) of such section), a call or order to
active duty pursuant to a provision of law referred to
in section 101(a)(13)(B) of title 10, United States
Code, a permanent change of station, or the service-
connected (as defined in section 101(16) of title 38,
United States Code) death or disability of the member;
and'';
(11) in paragraph (13) (as so redesignated), by inserting
``or regional'' after ``local'' each place it appears;
(12) in paragraph (14) (as so redesignated)--
(A) in subparagraph (A), by striking ``section
122(e)(3)'' and inserting ``section 122'';
(B) by striking subparagraph (B), and inserting the
following:
``(B) work ready services, means a provider who is
identified or awarded a contract as described in
section 117(d)(5)(C); or'';
(C) by striking subparagraph (C); and
(D) by redesignating subparagraph (D) as subparagraph
(C).
(13) in paragraph (15) (as so redesignated), by striking
``adult or dislocated worker'' and inserting ``individual'';
(14) in paragraph (25)--
(A) in subparagraph (B), by striking ``higher of--''
and all that follows through clause (ii) and inserting
``poverty line for an equivalent period;'';
(B) by redesignating subparagraphs (D) through (F) as
subparagraphs (E) through (G), respectively; and
(C) by inserting after subparagraph (C) the
following:
``(D) receives or is eligible to receive free or
reduced price lunch under the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et seq.);'';
(15) in paragraph (32), by striking ``the Republic of the
Marshall Islands, the Federated States of Micronesia,'';
(16) by amending paragraph (33) to read as follows:
``(33) Out-of-school youth.--The term `out-of-school youth'
means--
``(A) an at-risk youth who is a school dropout; or
``(B) an at-risk youth who has received a secondary
school diploma or its recognized equivalent but is
basic skills deficient, unemployed, or
underemployed.''.
(17) in paragraph (38), by striking ``134(a)(1)(A)'' and
inserting ``134(a)(1)(B)'';
(18) by amending paragraph (49) to read as follows:
``(49) Veteran.--The term `veteran' has the same meaning
given the term in section 2108(1) of title 5, United States
Code.'';
(19) by amending paragraph (50) to read as follows:
``(50) Career and technical education.--The term `career and
technical education' has the meaning given the term in section
3 of the Carl D. Perkins Career and Technical Education Act of
2006 (20 U.S.C. 2302).'';
(20) in paragraph (51) by striking ``, and a youth
activity''; and
(21) by adding at the end the following:
``(52) At-risk youth.--Except as provided in subtitle C, the
term `at-risk youth' means an individual who--
``(A) is not less than age 16 and not more than age
24;
``(B) is a low-income individual; and
``(C) is an individual who is one or more of the
following:
``(i) a secondary school dropout;
``(ii) a youth in foster care (including
youth aging out of foster care);
``(iii) a youth offender;
``(iv) a youth who is an individual with a
disability; or
``(v) a migrant youth.
``(53) Industry or sector partnership.--The term `industry or
sector partnership' means a partnership of a State or local
board and one or more industries and other entities that have
the capability to help the State or local board determine the
immediate and long term skilled workforce needs of in-demand
industries and other occupations important to the State or
local economy, respectively.
``(54) Industry-recognized credential.--The term `industry-
recognized credential' means a credential that is sought or
accepted by companies within the industry sector involved,
across multiple States, as recognized, preferred, or required
for recruitment, screening, or hiring.
``(55) Recognized postsecondary credential.--The term
`recognized postsecondary credential' means a credential
awarded by a training provider or postsecondary educational
institution based on completion of all requirements for a
program of study, including coursework or tests or other
performance evaluations. The term includes an industry-
recognized credential, a certificate of completion of an
apprenticeship, or an associate or baccalaureate degree.
``(56) Pay-for-performance contract strategy.--The term `pay-
for-performance contract strategy' means a strategy in which a
contract to provide a program of employment and training
activities incorporates--
``(A) the performance outcome described in subclauses
(I) through (IV) of section 136(b)(2)(A)(i);
``(B) a fixed amount that will be paid to a provider
of such employment and training activities for each
program participant who achieves the agreed to levels
of performance based upon the outcome measures
described in subparagraph (A), within a defined
timetable, and may include a bonus payment to such
provider which may be used to expand the capacity of
such provider;
``(C) the ability for a provider to recoup the costs
of training a participant who has not met such outcome
measures, but for whom the provider is able to
demonstrate that such participant gained specific
competencies required for education and career
advancement that are, where feasible, tied to industry-
recognized credentials and related standards, or State
licensing requirements; and
``(D) the ability for a provider that does not meet
the requirements under section 122(a)(2) to participate
in such pay-for-performance contract and to not be
required to report on the performance and cost
information required under section 122(d).''.
Subtitle B--Statewide and Local Workforce Investment Systems
SEC. 102. PURPOSE.
Section 106 (29 U.S.C. 2811) is amended by adding at the end the
following: ``It is also the purpose of this subtitle to provide
workforce investment activities in a manner that enhances employer
engagement, promotes customer choices in the selection of training
services, and ensures accountability in the use of the taxpayer
funds.''.
SEC. 103. STATE WORKFORCE INVESTMENT BOARDS.
Section 111 (29 U.S.C. 2821) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) by striking subparagraph (B);
(ii) by redesignating subparagraph (C) as
subparagraph (B); and
(iii) in subparagraph (B) (as so
redesignated)--
(I) by amending clause (i)(I), by
striking ``section 117(b)(2)(A)(i)''
and inserting ``section 117(b)(2)(A)'';
(II) by amending clause (i)(II) to
read as follows:
``(II) represent businesses,
including large and small businesses,
with immediate and long-term employment
opportunities in in-demand industries
and other occupations important to the
State economy; and'';
(III) by striking clause (iii) and
inserting the following:
``(iii) a State agency official responsible
for economic development; and'';
(IV) by striking clauses (iv) through
(vi);
(V) by amending clause (vii) to read
as follows:
``(vii) such other representatives and State
agency officials as the Governor may designate,
including--
``(I) members of the State
legislature;
``(II) representatives of individuals
and organizations that have experience
with respect to youth activities;
``(III) representatives of
individuals and organizations that have
experience and expertise in the
delivery of workforce investment
activities, including chief executive
officers of community colleges and
community-based organizations within
the State;
``(IV) representatives of the lead
State agency officials with
responsibility for the programs and
activities that are described in
section 121(b) and carried out by one-
stop partners; or
``(V) representatives of veterans
service organizations.''; and
(VI) by redesignating clause (vii)
(as so amended) as clause (iv); and
(B) by amending paragraph (3) to read as follows:
``(3) Majority.--A \2/3\ majority of the members of the board
shall be representatives described in paragraph (1)(B)(i).'';
(2) in subsection (c), by striking ``(b)(1)(C)(i)'' and
inserting ``(b)(1)(B)(i)'';
(3) by amending subsection (d) to read as follows:
``(d) Functions.--The State board shall assist the Governor of the
State as follows:
``(1) State plan.--Consistent with section 112, develop a
State plan.
``(2) Statewide workforce development system.--Review and
develop statewide policies and programs in the State in a
manner that supports a comprehensive Statewide workforce
development system that will result in meeting the workforce
needs of the State and its local areas. Such review shall
include determining whether the State should consolidate
additional programs into the Workforce Investment Fund in
accordance with section 501(e).
``(3) Workforce and labor market information system.--Develop
a statewide workforce and labor market information system
described in section 15(e) of the Wagner-Peyser Act, which may
include using existing information conducted by the State
economic development entity or related entity in developing
such system.
``(4) Employer engagement.--Develop strategies across local
areas that meet the needs of employers and support economic
growth in the State by enhancing communication, coordination,
and collaboration among employers, economic development
entities, and service providers.
``(5) Designation of local areas.--Designate local areas as
required under section 116.
``(6) One-stop delivery system.--Identify and disseminate
information on best practices for effective operation of one-
stop centers, including use of innovative business outreach,
partnerships, and service delivery strategies.
``(7) Program oversight.--Conduct the following program
oversight:
``(A) Reviewing and approving local plans under
section 118.
``(B) Ensuring the appropriate use and management of
the funds provided for State employment and training
activities authorized under section 134.
``(C) Preparing an annual report to the Secretary
described in section 136(d).
``(8) Development of performance measures.--Develop and
ensure continuous improvement of comprehensive State
performance measures, including State adjusted levels of
performance, as described under section 136(b).'';
(4) by striking subsection (e) and redesignating subsection
(f) as subsection (e);
(5) in subsection (e) (as so redesignated), by inserting ``or
participate in any action taken'' after ``vote'';
(6) by inserting after subsection (e) (as so redesignated),
the following:
``(f) Staff.--The State board may employ staff to assist in carrying
out the functions described in subsection (d).''; and
(7) in subsection (g), by inserting ``electronic means and''
after ``on a regular basis through''.
SEC. 104. STATE PLAN.
Section 112 (29 U.S.C. 2822)--
(1) in subsection (a)--
(A) by striking ``127 or''; and
(B) by striking ``5-year strategy'' and inserting
``3-year strategy'';
(2) in subsection (b)--
(A) by amending paragraph (4) to read as follows:
``(4) information describing--
``(A) the economic conditions in the State;
``(B) the immediate and long-term skilled workforce
needs of in-demand industries, small businesses, and
other occupations important to the State economy;
``(C) the knowledge and skills of the workforce in
the State; and
``(D) workforce development activities (including
education and training) in the State;'';
(B) by amending paragraph (7) to read as follows:
``(7) a description of the State criteria for determining the
eligibility of training providers in accordance with section
122, including how the State will take into account the
performance of providers and whether the training programs
relate to occupations that are in-demand;'';
(C) by amending paragraph (8) to read as follows:
``(8)(A) a description of the procedures that will be taken
by the State to assure coordination of, and avoid duplication
among, the programs and activities identified under section
501(b)(2); and
``(B) a description of common data collection and reporting
processes used for the programs and activities described in
subparagraph (A), which are carried out by one-stop partners,
including--
``(i) assurances that such processes use quarterly
wage records for performance measures described in
section 136(b)(2)(A) that are applicable to such
programs or activities; or
``(ii) if such wage records are not being used for
the performance measures, an identification of the
barriers to using such wage records and a description
of how the State will address such barriers within one
year of the approval of the plan;'';
(D) in paragraph (9), by striking ``, including
comment by representatives of businesses and
representatives of labor organizations,'';
(E) in paragraph (11), by striking ``under sections
127 and 132'' and inserting ``under section 132'';
(F) by striking paragraph (12);
(G) by redesignating paragraphs (13) through (18) as
paragraphs (12) through (17), respectively;
(H) in paragraph (12) (as so redesignated), by
striking ``111(f)'' and inserting ``111(e)'';
(I) in paragraph (13) (as so redesignated), by
striking ``134(c)'' and inserting ``121(e)'';
(J) in paragraph (14) (as so redesignated), by
striking ``116(a)(5)'' and inserting ``116(a)(4)'';
(K) in paragraph (16) (as so redesignated)--
(i) in subparagraph (A)--
(I) in clause (ii), by striking ``to
dislocated workers'';
(II) in clause (iii), by striking
``134(d)(4)'' and inserting
``134(c)(4)'';
(III) by striking ``and'' at the end
of clause (iii);
(IV) by amending clause (iv) to read
as follows:
``(iv) how the State will serve the
employment and training needs of dislocated
workers (including displaced homemakers), low-
income individuals (including recipients of
public assistance such as supplemental
nutrition assistance program benefits pursuant
to the Food and Nutrition Act of 2008 (7 U.S.C.
2011 et seq.)), long-term unemployed
individuals (including individuals who have
exhausted entitlement to State and Federal
unemployment compensation), English learners,
homeless individuals, individuals training for
nontraditional employment, youth (including
out-of-school youth and at-risk youth), older
workers, ex-offenders, migrant and seasonal
farmworkers, refugee and entrants, veterans
(including disabled and homeless veterans), and
Native Americans; and''; and
(V) by adding at the end the
following new clause:
``(v) how the State will--
``(I) consistent with section 188 and
Executive Order 13217 (42 U.S.C. 12131
note), serve the employment and
training needs of individuals with
disabilities; and
``(II) consistent with sections 504
and 508 of the Rehabilitation Act of
1973, include the provision of
outreach, intake, assessments, and
service delivery, the development of
performance measures, the training of
staff, and other aspects of
accessibility to programs and services
under this subtitle;''; and
(ii) in subparagraph (B), by striking ``to
the extent practicable'' and inserting ``in
accordance with the requirements of the Jobs
for Veterans Act (Public Law 107-288) and the
amendments made by such Act''; and
(L) by striking paragraph (17) (as so redesignated)
and inserting the following:
``(17) a description of the strategies and services that will
be used in the State--
``(A) to more fully engage employers, including small
businesses and employers in in-demand industries and
occupations important to the State economy;
``(B) to meet the needs of employers in the State;
and
``(C) to better coordinate workforce development
programs with economic development activities;
``(18) a description of how the State board will convene (or
help to convene) industry or sector partnerships that lead to
collaborative planning, resource alignment, and training
efforts across multiple firms for a range of workers employed
or potentially employed by a targeted industry cluster--
``(A) to encourage industry growth and
competitiveness and to improve worker training,
retention, and advancement in targeted industry
clusters;
``(B) to address the immediate and long-term skilled
workforce needs of in-demand industries and other
occupations important to the State economy, and
``(C) to address critical skill gaps within and
across industries;
``(19) a description of how the State will utilize technology
to facilitate access to services in remote areas, which may be
used throughout the State;
``(20) a description of the State strategy and assistance to
be provided for encouraging regional cooperation within the
State and across State borders, as appropriate;
``(21) a description of the actions that will be taken by the
State to foster communication, coordination, and partnerships
with non-profit organizations (including public libraries,
community, faith-based, and philanthropic organizations) that
provide employment-related, training, and complementary
services, to enhance the quality and comprehensiveness of
services available to participants under this title;
``(22) a description of the process and methodology for
determining--
``(A) one-stop partner program contributions for the
cost of the infrastructure of one-stop centers under
section 121(h)(1); and
``(B) the formula for allocating such infrastructure
funds to local areas under section 121(h)(3);
``(23) a description of the strategies and services that will
be used in the State to assist at-risk youth and out-of-school
youth in acquiring the education and skills, credentials
(including recognized postsecondary credentials and industry-
recognized credentials), and employment experience to succeed
in the labor market, including--
``(A) training and internships in in-demand
industries or occupations important to the State and
local economy;
``(B) dropout recovery activities that are designed
to lead to the attainment of a regular secondary school
diploma or its recognized equivalent, or other State
recognized equivalent (including recognized alternative
standards for individuals with disabilities); and
``(C) activities combining remediation of academic
skills, work readiness training, and work experience,
and including linkages to postsecondary education and
training and career-ladder employment; and
``(24) a description of--
``(A) how the State will furnish employment,
training, supportive, and placement services to
veterans, including disabled and homeless veterans;
``(B) the strategies and services that will be used
in the State to assist and expedite reintegration of
homeless veterans into the labor force; and
``(C) the veteran population to be served in the
State.'';
(3) in subsection (c), by striking ``period, that--'' all
that follows through paragraph (2) and inserting ``period, that
the plan is inconsistent with the provisions of this title.'';
and
(4) in subsection (d), by striking ``5-year'' and inserting
``3-year''.
SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS.
Section 116 (29 U.S.C. 2831) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by striking ``Except as provided
in subsection (b), and consistent with
paragraphs (2), (3), and (4), in'' and
inserting ``In''; and
(II) by striking ``127 or''; and
(ii) by amending subparagraph (B) to read as
follows:
``(B) Considerations.--In making the designation of
local areas, the Governor shall take into consideration
the following:
``(i) The extent to which such local areas
are consistent with labor market areas.
``(ii) The extent to which labor market areas
align with economic development regions.
``(iii) Whether such local areas have the
appropriate education and training providers to
meet the needs of the local workforce.
``(iv) The distance that individuals will
need to travel to receive services provided in
such local areas.'';
(B) by amending paragraph (2) to read as follows:
``(2) Technical assistance.--The Secretary shall, if
requested by the Governor of a State, provide the State with
technical assistance in making the determinations required
under paragraph (1). The Secretary shall not issue regulations
governing determinations to be made under paragraph (1).'';
(C) by striking paragraph (3) and inserting the
following:
``(3) Designation on recommendation of state board.--The
Governor may approve a request from any unit of general local
government (including a combination of such units) for
designation as a local area under paragraph (1) if the State
board determines, taking into account the factors described in
clauses (i) through (iv) of paragraph (1)(B), and recommends to
the Governor, that such area shall be so designated.'';
(D) by striking paragraph (4); and
(E) by redesignating paragraph (5) as paragraph (4);
(2) by amending subsection (b) to read as follows:
``(b) Single States.--Consistent with subsection (a)(1)(B), the
Governor may designate a State as a single State local area for the
purposes of this title.''; and
(3) in subsection (c)--
(A) in paragraph (1), by adding at the end the
following: ``The State may require the local boards for
the designated region to prepare a single regional plan
that incorporates the elements of the local plan under
section 118 and that is submitted and approved in lieu
of separate local plans under such section.''; and
(B) in paragraph (2), by striking ``employment
statistics'' and inserting ``workforce and labor market
information''.
SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS.
Section 117 (29 U.S.C. 2832) is amended--
(1) in subsection (b)--
(A) in paragraph (2)--
(i) in subparagraph (A)--
(I) by striking ``include--'' and all
that follows through
``representatives'' and inserting
``include representatives'';
(II) by striking clauses (ii) through
(vi);
(III) by redesignating subclauses (I)
through (III) as clauses (i) through
(iii), respectively (and by moving the
margins of such clauses 2 ems to the
left);
(IV) by striking clause (ii) (as so
redesignated) and inserting the
following:
``(ii) represent businesses, including large
and small businesses, with immediate and long-
term employment opportunities in in-demand
industries and other occupations important to
the local economy; and''; and
(V) by striking the semicolon at the
end of clause (iii) (as so
redesignated) and inserting ``; and'';
and
(ii) by amending subparagraph (B) to read as
follows:
``(B) may include such other individuals or
representatives of entities as the chief elected
official in the local area may determine to be
appropriate, including--
``(i) a superintendent of the local secondary
school system, the president or chief executive
officer of a postsecondary educational
institution (including a community college,
where such an entity exists), or an
administrator of local entities providing adult
education and literacy activities;
``(ii) representatives of community-based
organizations (including organizations
representing individuals with disabilities and
veterans, for a local area in which such
organizations are present); or
``(iii) representatives of veterans service
organizations.'';
(B) in paragraph (4)--
(i) by striking ``A majority'' and inserting
``A \2/3\ majority''; and
(ii) by striking ``(2)(A)(i)'' and inserting
``(2)(A)''; and
(C) in paragraph (5) by striking ``(2)(A)(i)'' and
inserting ``(2)(A)'';
(2) by striking subsection (c)(1)(C);
(3) by amending subsection (d) to read as follows:
``(d) Functions of Local Board.--The functions of the local board
shall include the following:
``(1) Local plan.--Consistent with section 118, each local
board, in partnership with the chief elected official for the
local area involved, shall develop and submit a local plan to
the Governor.
``(2) Workforce research and regional labor market
analysis.--
``(A) In general.--The local board shall--
``(i) conduct, and regularly update, an
analysis of--
``(I) the economic conditions in the
local area;
``(II) the immediate and long-term
skilled workforce needs of in-demand
industries and other occupations
important to the local economy;
``(III) the knowledge and skills of
the workforce in the local area; and
``(IV) workforce development
activities (including education and
training) in the local area; and
``(ii) assist the Governor in developing the
statewide workforce and labor market
information system described in section 15(e)
of the Wagner-Peyser Act.
``(B) Existing analysis.--A local board shall use
existing analysis by the local economic development
entity or related entity in order to carry out
requirements of subparagraph (A)(i).
``(3) Employer engagement.--The local Board shall meet the
needs of employers and support economic growth in the local
area by enhancing communication, coordination, and
collaboration among employers, economic development entities,
and service providers.
``(4) Budget and administration.--
``(A) Budget.--
``(i) In general.--The local board shall
develop a budget for the activities of the
local board in the local area, consistent with
the requirements of this subsection.
``(ii) Training reservation.--In developing a
budget under clause (i), the local board shall
reserve a percentage of funds to carry out the
activities specified in section 134(c)(4). The
local board shall use the analysis conducted
under paragraph (2)(A)(i) to determine the
appropriate percentage of funds to reserve
under this clause.
``(B) Administration.--
``(i) Grant recipient.--
``(I) In general.--The chief elected
official in a local area shall serve as
the local grant recipient for, and
shall be liable for any misuse of, the
grant funds allocated to the local area
under section 133, unless the chief
elected official reaches an agreement
with the Governor for the Governor to
act as the local grant recipient and
bear such liability.
``(II) Designation.--In order to
assist in administration of the grant
funds, the chief elected official or
the Governor, where the Governor serves
as the local grant recipient for a
local area, may designate an entity to
serve as a local grant subrecipient for
such funds or as a local fiscal agent.
Such designation shall not relieve the
chief elected official or the Governor
of the liability for any misuse of
grant funds as described in subclause
(I).
``(III) Disbursal.--The local grant
recipient or an entity designated under
subclause (II) shall disburse the grant
funds for workforce investment
activities at the direction of the
local board, pursuant to the
requirements of this title. The local
grant recipient or entity designated
under subclause (II) shall disburse the
funds immediately on receiving such
direction from the local board.
``(ii) Staff.--The local board may employ
staff to assist in carrying out the functions
described in this subsection.
``(iii) Grants and donations.--The local
board may solicit and accept grants and
donations from sources other than Federal funds
made available under this Act.
``(5) Selection of operators and providers.--
``(A) Selection of one-stop operators.--Consistent
with section 121(d), the local board, with the
agreement of the chief elected official--
``(i) shall designate or certify one-stop
operators as described in section 121(d)(2)(A);
and
``(ii) may terminate for cause the
eligibility of such operators.
``(B) Identification of eligible training service
providers.--Consistent with this subtitle, the local
board shall identify eligible providers of training
services described in section 134(c)(4) in the local
area, annually review the outcome of individual
training providers using the criteria under section
122(b)(2), and designate providers in the local area
who have demonstrated the highest level of success with
respect to such indicators as priority providers for
the following program year.
``(C) Identification of eligible providers of work
ready services.--If the one-stop operator does not
provide the services described in section 134(c)(2) in
the local area, the local board shall identify eligible
providers of such services in the local area by
awarding contracts.
``(6) Program oversight.--The local board, in partnership
with the chief elected official, shall be responsible for--
``(A) ensuring the appropriate use and management of
the funds provided for local employment and training
activities authorized under section 134(b); and
``(B) conducting oversight of the one-stop delivery
system in the local area authorized under section 121.
``(7) Negotiation of local performance measures.--The local
board, the chief elected official, and the Governor shall
negotiate and reach agreement on local performance measures as
described in section 136(c).
``(8) Technology improvements.--The local board shall develop
strategies for technology improvements to facilitate access to
services authorized under this subtitle and carried out in the
local area, including in remote areas.'';
(4) in subsection (e)--
(A) by inserting ``electronic means and'' after
``regular basis through''; and
(B) by striking ``and the award of grants or
contracts to eligible providers of youth activities,'';
(5) in subsection (f)--
(A) in paragraph (1)(A), by striking ``section
134(d)(4)'' and inserting ``section 134(c)(4)''; and
(B) by striking paragraph (2) and inserting the
following:
``(2) Work ready services, designation, or certification as
one-stop operators.--A local board may provide work ready
services described in section 134(c)(2) through a one-stop
delivery system described in section 121 or be designated or
certified as a one-stop operator only with the agreement of the
chief elected official and the Governor.'';
(6) in subsection (g)(1), by inserting ``or participate in
any action taken'' after ``vote''; and
(7) by striking subsections (h) and (i).
SEC. 107. LOCAL PLAN.
Section 118 (29 U.S.C. 2833) is amended--
(1) in subsection (a), by striking ``5-year'' and inserting
``3-year'';
(2) by amending subsection (b) to read as follows:
``(b) Contents.--The local plan shall include--
``(1) a description of the analysis of the local area's
economic and workforce conditions conducted under section
117(d)(2)(A)(i), and an assurance that the local board will use
such analysis to carry out the activities under this subtitle;
``(2) a description of the one-stop delivery system in the
local area, including--
``(A) a description of how the local board will
ensure--
``(i) the continuous improvement of eligible
providers of services through the system; and
``(ii) that such providers meet the
employment needs of local businesses and
participants; and
``(B) a description of how the local board will
facilitate access to services provided through the one-
stop delivery system consistent with section 117(d)(8);
``(3) a description of the strategies and services that will
be used in the local area--
``(A) to more fully engage employers, including small
businesses and employers in in-demand industries and
occupations important to the local economy;
``(B) to meet the needs of employers in the local
area;
``(C) to better coordinate workforce development
programs with economic development activities; and
``(D) to better coordinate workforce development
programs with employment, training, and literacy
services carried out by nonprofit organizations,
including public libraries, as appropriate;
``(4) a description of how the local board will convene (or
help to convene) industry or sector partnerships that lead to
collaborative planning, resource alignment, and training
efforts across multiple firms for a range of workers employed
or potentially employed by a targeted industry cluster--
``(A) to encourage industry growth and
competitiveness and to improve worker training,
retention, and advancement in targeted industry
clusters;
``(B) to address the immediate and long-term skilled
workforce needs of in-demand industries, small
businesses, and other occupations important to the
local economy; and
``(C) to address critical skill gaps within and
across industries;
``(5) a description of how the funds reserved under section
117(d)(4)(A)(ii) will be used to carry out activities described
in section 134(c)(4);
``(6) a description of how the local board will coordinate
workforce investment activities carried out in the local area
with statewide activities, as appropriate;
``(7) a description of how the local area will--
``(A) coordinate activities with the local area's
disability community and with services provided under
section 614(d)(1)(A)(i)(VIII) of the Individuals with
Disabilities Education Act (20 U.S.C.
1414(d)(1)(A)(i)(VIII)) by local educational agencies
serving such local area to make available
comprehensive, high-quality services to individuals
with disabilities;
``(B) consistent with section 188 and Executive Order
13217 (42 U.S.C. 12131 note), serve the employment and
training needs of individuals with disabilities; and
``(C) consistent with sections 504 and 508 of the
Rehabilitation Act of 1973, include the provision of
outreach, intake, assessments, and service delivery,
the development of performance measures, the training
of staff, and other aspects of accessibility to
programs and services under this subtitle;
``(8) a description of the local levels of performance
negotiated with the Governor and chief elected official
pursuant to section 136(c), to be--
``(A) used to measure the performance of the local
area; and
``(B) used by the local board for measuring
performance of the local fiscal agent (where
appropriate), eligible providers, and the one-stop
delivery system, in the local area;
``(9) a description of the process used by the local board,
consistent with subsection (c), to provide an opportunity for
public comment prior to submission of the plan;
``(10) a description of how the local area will serve the
employment and training needs of dislocated workers (including
displaced homemakers), low-income individuals (including
recipients of public assistance such as the Supplemental
Nutrition Assistance Program), long-term unemployed individuals
(including individuals who have exhausted entitlement to State
and Federal unemployment compensation), English learners,
homeless individuals, individuals training for nontraditional
employment, youth (including out-of-school youth and at-risk
youth), older workers, ex-offenders, migrant and seasonal
farmworkers, refugee and entrants, veterans (including disabled
veterans and homeless veterans), and Native Americans;
``(11) an identification of the entity responsible for the
disbursal of grant funds described in subclause (III) of
section 117(d)(4)(B)(i), as determined by the chief elected
official or the Governor under such section;
``(12) a description of the strategies and services that will
be used in the local area to assist at-risk youth and out-of-
school youth in acquiring the education and skills, credentials
(including recognized postsecondary credentials and industry-
recognized credentials), and employment experience to succeed
in the labor market, including--
``(A) training and internships in in-demand
industries or occupations important to the local
economy;
``(B) dropout recovery activities that are designed
to lead to the attainment of a regular secondary school
diploma or its recognized equivalent, or other State
recognized equivalent (including recognized alternative
standards for individuals with disabilities); and
``(C) activities combining remediation of academic
skills, work readiness training, and work experience,
and including linkages to postsecondary education and
training and career-ladder employment;
``(13) a description of--
``(A) how the local area will furnish employment,
training, supportive, and placement services to
veterans, including disabled and homeless veterans;
``(B) the strategies and services that will be used
in the local area to assist and expedite reintegration
of homeless veterans into the labor force; and
``(C) the veteran population to be served in the
local area;
``(14) a description of--
``(A) the duties assigned to the veteran employment
specialist consistent with the requirements of section
134(f);
``(B) the manner in which the veteran employment
specialist is integrated into the One-Stop Career
System described in section 121;
``(C) the date on which the veteran employment
specialist was assigned; and
``(D) whether the veteran employment specialist has
satisfactorily competed such training by the National
Veterans' Employment and Training Services Institute;
and
``(15) such other information as the Governor may require.'';
(3) in subsection (c)(1), by striking ``such means'' and
inserting ``electronic means such''; and
(4) in subsection (c)(2), by striking ``, including
representatives of business and representatives of labor
organizations,''.
SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEM.
Section 121 (29 U.S.C. 2841) is amended--
(1) in subsection (b)--
(A) by striking subparagraph (A) of paragraph (1) and
inserting the following:
``(A) Roles and responsibilities of one-stop
partners.--Each entity that carries out a program or
activities described in subparagraph (B) shall--
``(i) provide access through the one-stop
delivery system to the program and activities
carried out by the entity, including making the
work ready services described in section
134(c)(2) that are applicable to the program of
the entity available at one-stop centers (in
addition to any other appropriate locations);
``(ii) use a portion of the funds available
to the program of the entity to maintain the
one-stop delivery system, including payment of
the infrastructure costs of one-stop centers in
accordance with subsection (h);
``(iii) enter into a local memorandum of
understanding with the local board relating to
the operation of the one-stop delivery system
that meets the requirements of subsection (c);
and
``(iv) participate in the operation of the
one-stop delivery system consistent with the
terms of the memorandum of understanding, the
requirements of this title, and the
requirements of the Federal laws authorizing
the programs carried out by the entity.'';
(B) in paragraph (1)(B)--
(i) by striking clauses (ii), (v), and (vi);
(ii) by redesignating clauses (iii) and (iv)
as clauses (ii) and (iii), respectively;
(iii) by redesignating clauses (vii) through
(xii) as clauses (iv) through (ix),
respectively;
(iv) in clause (viii), as so redesignated, by
striking ``and'' at the end;
(v) in clause (ix), as so redesignated, by
striking the period and inserting ``; and'';
and
(vi) by adding at the end the following:
``(x) subject to subparagraph (C), programs
authorized under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.).'';
(C) by inserting after paragraph (1)(B) the
following:
``(C) Determination by the governor.--Each entity
carrying out a program described in subparagraph (B)(x)
shall carry out the required partner activities
described in subparagraph (A) unless the Governor of
the State in which the local area is located provides
the Secretary and Secretary of Health and Human
Services written notice of a determination by the
Governor that such entities shall not carry out such
required partner activities.''; and
(D) in paragraph (2)--
(i) in subparagraph (A)(i), by striking
``section 134(d)(2)'' and inserting ``section
134(c)(2)''; and
(ii) in subparagraph (B)--
(I) by striking clauses (i), (ii),
and (v);
(II) in clause (iv), by striking
``and'' at the end;
(III) by redesignating clauses (iii)
and (iv) as clauses (i) and (ii),
respectively; and
(IV) by adding at the end the
following:
``(iii) employment and training programs
administered by the Commissioner of the Social
Security Administration;
``(iv) employment and training programs
carried out by the Administrator of the Small
Business Administration;
``(v) employment, training, and literacy
services carried out by public libraries; and
``(vi) other appropriate Federal, State, or
local programs, including programs in the
private sector.'';
(2) in subsection (c)(2), by amending subparagraph (A) to
read as follows:
``(A) provisions describing--
``(i) the services to be provided through the
one-stop delivery system consistent with the
requirements of this section, including the
manner in which the services will be
coordinated through such system;
``(ii) how the costs of such services and the
operating costs of such system will be funded,
through cash and in-kind contributions, to
provide a stable and equitable funding stream
for ongoing one-stop system operations,
including the funding of the infrastructure
costs of one-stop centers in accordance with
subsection (h);
``(iii) methods of referral of individuals
between the one-stop operator and the one-stop
partners for appropriate services and
activities, including referrals for
nontraditional employment; and
``(iv) the duration of the memorandum of
understanding and the procedures for amending
the memorandum during the term of the
memorandum, and assurances that such memorandum
shall be reviewed not less than once every 3-
year period to ensure appropriate funding and
delivery of services; and'';
(3) in subsection (d)--
(A) in the heading for paragraph (1), by striking
``Designation and certification'' and inserting ``Local
designation and certification'';
(B) in paragraph (2)--
(i) by striking ``section 134(c)'' and
inserting ``subsection (e)'';
(ii) by amending subparagraph (A) to read as
follows:
``(A) shall be designated or certified as a one-stop
operator through a competitive process; and''; and
(iii) in subparagraph (B), by striking clause
(ii) and redesignating clauses (iii) through
(vi) as clauses (ii) through (v), respectively;
and
(C) in paragraph (3), by striking ``vocational'' and
inserting ``career and technical'';
(4) by amending subsection (e) to read as follows:
``(e) Establishment of One-Stop Delivery System.--
``(1) In general.--There shall be established in a State that
receives an allotment under section 132(b) a one-stop delivery
system, which shall--
``(A) provide the work ready services described in
section 134(c)(2);
``(B) provide access to training services as
described in section 134(c)(4), including serving as
the point of access to career enhancement accounts for
training services to participants in accordance with
paragraph (4)(F) of such section;
``(C) provide access to the activities carried out
under section 134(d), if any;
``(D) provide access to programs and activities
carried out by one-stop partners that are described in
subsection (b) of this section; and
``(E) provide access to the information described in
section 15(e) of the Wagner-Peyser Act (29 U.S.C. 49l-
2(e)).
``(2) One-stop delivery.--At a minimum, the one-stop delivery
system--
``(A) shall make each of the programs, services, and
activities described in paragraph (1) accessible at not
less than one physical center in each local area of the
State; and
``(B) may also make programs, services, and
activities described in paragraph (1) available--
``(i) through a network of affiliated sites
that can provide one or more of the programs,
services, and activities to individuals; and
``(ii) through a network of eligible one-stop
partners--
``(I) in which each partner provides
one or more of the programs, services,
and activities to such individuals and
is accessible at an affiliated site
that consists of a physical location or
an electronically- or technologically-
linked access point; and
``(II) that assures individuals that
information on the availability of the
work ready services will be available
regardless of where the individuals
initially enter the statewide workforce
investment system, including
information made available through an
access point described in subclause
(I).
``(3) Specialized centers.--The centers and sites described
in paragraph (2) may have a specialization in addressing
special needs.''; and
(5) by adding at the end the following:
``(g) Certification of One-Stop Centers.--
``(1) In general.--
``(A) In general.--The State board shall establish
objective procedures and criteria for certifying, at
least once every 3 years, one-stop centers for the
purpose of awarding the one-stop infrastructure funding
described in subsection (h).
``(B) Criteria.--The criteria for certification under
this subsection shall include--
``(i) meeting all of the expected levels of
performance for each of the core indicators of
performance as outlined in the State plan under
section 112;
``(ii) meeting minimum standards relating to
the scope and degree of service integration
achieved by the centers involving the programs
provided by the one-stop partners; and
``(iii) meeting minimum standards relating to
how the centers ensure that eligible providers
meet the employment needs of local employers
and participants.
``(C) Effect of certification.--One-stop centers
certified under this subsection shall be eligible to
receive the infrastructure grants authorized under
subsection (h).
``(2) Local boards.--Consistent with the criteria developed
by the State, the local board may develop additional criteria
of higher standards to respond to local labor market and
demographic conditions and trends.
``(h) One-Stop Infrastructure Funding.--
``(1) Partner contributions.--
``(A) Provision of funds.--Notwithstanding any other
provision of law, as determined under subparagraph (B),
a portion of the Federal funds provided to the State
and areas within the State under the Federal laws
authorizing the one-stop partner programs described in
subsection (b)(1)(B) and participating additional
partner programs described in (b)(2)(B) for a fiscal
year shall be provided to the Governor by such programs
to carry out this subsection.
``(B) Determination of governor.--
``(i) In general.--Subject to subparagraph
(C), the Governor, in consultation with the
State board, shall determine the portion of
funds to be provided under subparagraph (A) by
each one-stop partner and in making such
determination shall consider the proportionate
use of the one-stop centers by each partner,
the costs of administration for purposes not
related to one-stop centers for each partner,
and other relevant factors described in
paragraph (3).
``(ii) Special rule.--In those States where
the State constitution places policy-making
authority that is independent of the authority
of the Governor in an entity or official with
respect to the funds provided for adult
education and literacy activities authorized
under title II of this Act and for
postsecondary career education activities
authorized under the Carl D. Perkins Career and
Technical Education Act, the determination
described in clause (i) with respect to such
programs shall be made by the Governor with the
appropriate entity or official with such
independent policy-making authority.
``(iii) Appeal by one-stop partners.--The
Governor shall establish a procedure for the
one-stop partner administering a program
described in subsection (b) to appeal a
determination regarding the portion of funds to
be contributed under this paragraph on the
basis that such determination is inconsistent
with the criteria described in the State plan
or with the requirements of this paragraph.
Such procedure shall ensure prompt resolution
of the appeal.
``(C) Limitations.--
``(i) Provision from administrative funds.--
The funds provided under this paragraph by each
one-stop partner shall be provided only from
funds available for the costs of administration
under the program administered by such partner,
and shall be subject to the limitations with
respect to the portion of funds under such
programs that may be used for administration.
``(ii) Federal direct spending programs.--
Programs that are Federal direct spending under
section 250(c)(8) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C.
900(c)(8)) shall not, for purposes of this
paragraph, be required to provide an amount in
excess of the amount determined to be
equivalent to the proportionate use of the one-
stop centers by such programs in the State.
``(2) Allocation by governor.--From the funds provided under
paragraph (1), the Governor shall allocate funds to local areas
in accordance with the formula established under paragraph (3)
for the purposes of assisting in paying the costs of the
infrastructure of one-stop centers certified under subsection
(g).
``(3) Allocation formula.--The State board shall develop a
formula to be used by the Governor to allocate the funds
described in paragraph (1). The formula shall include such
factors as the State board determines are appropriate, which
may include factors such as the number of centers in the local
area that have been certified, the population served by such
centers, and the performance of such centers.
``(4) Costs of infrastructure.--For purposes of this
subsection, the term `costs of infrastructure' means the
nonpersonnel costs that are necessary for the general operation
of a one-stop center, including the rental costs of the
facilities, the costs of utilities and maintenance, and
equipment (including assistive technology for individuals with
disabilities).
``(i) Other Funds.--
``(1) In general.--In addition to the funds provided to carry
out subsection (h), a portion of funds made available under
Federal law authorizing the one-stop partner programs described
in subsection (b)(1)(B) and participating additional partner
programs described in subsection (b)(2)(B), or the noncash
resources available under such programs shall be used to pay
the costs relating to the operation of the one-stop delivery
system that are not paid for from the funds provided under
subsection (h), to the extent not inconsistent with the Federal
law involved including--
``(A) infrastructure costs that are in excess of the
funds provided under subsection (h);
``(B) common costs that are in addition to the costs
of infrastructure; and
``(C) the costs of the provision of work ready
services applicable to each program.
``(2) Determination and guidance.--The method for determining
the appropriate portion of funds and noncash resources to be
provided by each program under paragraph (1) shall be
determined as part of the memorandum of understanding under
subsection (c). The State board shall provide guidance to
facilitate the determination of appropriate allocation of the
funds and noncash resources in local areas.''.
SEC. 109. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
Section 122 (29 U.S.C. 2842) is amended to read as follows:
``SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
``(a) Eligibility.--
``(1) In general.--The Governor, after consultation with the
State board, shall establish criteria and procedures regarding
the eligibility of providers of training services described in
section 134(c)(4) to receive funds provided under section
133(b) for the provision of such training services.
``(2) Providers.--Subject to the provisions of this section,
to be eligible to receive the funds provided under section
133(b) for the provision of training services, the provider
shall be--
``(A) a postsecondary educational institution that--
``(i) is eligible to receive Federal funds
under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.); and
``(ii) provides a program that leads to a
recognized postsecondary credential;
``(B) an entity that carries out programs under the
Act of August 16, 1937 (commonly known as the `National
Apprenticeship Act'; 50 Stat. 664, chapter 663; 29
U.S.C. 50 et seq.); or
``(C) another public or private provider of a program
of training services.
``(3) Inclusion in list of eligible providers.--A provider
described in subparagraph (A) or (C) of paragraph (2) shall
comply with the criteria and procedures established under this
section to be included on the list of eligible providers of
training services described in subsection (d). A provider
described in paragraph (2)(B) shall be included on the list of
eligible providers of training services described in subsection
(d) for so long as the provider remains certified by the
Secretary of Labor to carry out the programs described in
paragraph (2)(B).
``(b) Criteria.--
``(1) In general.--The criteria established pursuant to
subsection (a) shall take into account--
``(A) the performance of providers of training
services with respect to the performance measures
described in section 136 and other matters for which
information is required under paragraph (2) and other
appropriate measures of performance outcomes for those
participants receiving training services under this
subtitle;
``(B) whether the training programs of such providers
relate to occupations that are in demand;
``(C) the need to ensure access to training services
throughout the State, including in rural areas;
``(D) the ability of providers to offer programs that
lead to a recognized postsecondary credential;
``(E) the information such providers are required to
report to State agencies with respect to other Federal
and State programs (other than the program carried out
under this subtitle), including one-stop partner
programs; and
``(F) such other factors as the Governor determines
are appropriate.
``(2) Information.--The criteria established by the Governor
shall require that a provider of training services submit
appropriate, accurate, and timely information to the State for
purposes of carrying out subsection (d), with respect to
participants receiving training services under this subtitle in
the applicable program, including--
``(A) information on recognized postsecondary
credentials received by such participants;
``(B) information on costs of attendance for such
participants;
``(C) information on the program completion rate for
such participants; and
``(D) information on the performance of the provider
with respect to the performance measures described in
section 136 for such participants.
``(3) Renewal.--The criteria established by the Governor
shall also provide for a review every 3 years and renewal of
eligibility under this section for providers of training
services.
``(4) Local criteria.--A local board in the State may
establish criteria in addition to the criteria established by
the Governor, or may require higher levels of performance than
required under the criteria established by the Governor, for
purposes of determining the eligibility of providers of
training services to receive funds described in subsection (a)
to provide the services in the local area involved.
``(5) Limitation.--In carrying out the requirements of this
subsection, no personally identifiable information regarding a
student, including Social Security number, student
identification number, or other identifier, may be disclosed
without the prior written consent of the parent or eligible
student in compliance with section 444 of the General Education
Provisions Act (20 U.S.C. 1232g).
``(c) Procedures.--The procedures established under subsection (a)
shall--
``(1) identify--
``(A) the application process for a provider of
training services to become eligible to receive funds
under section 133(b) for the provision of training
services; and
``(B) the respective roles of the State and local
areas in receiving and reviewing applications and in
making determinations of eligibility based on the
criteria established under this section; and
``(2) establish a process for a provider of training services
to appeal a denial or termination of eligibility under this
section that includes an opportunity for a hearing and
prescribes appropriate time limits to ensure prompt resolution
of the appeal.
``(d) Information To Assist Participants in Choosing Providers.--In
order to facilitate and assist participants under chapter 5 in choosing
providers of training services, the Governor shall ensure that an
appropriate list or lists of providers determined eligible under this
section in the State, including information provided under subsection
(b)(2) with respect to such providers, is provided to the local boards
in the State and is made available to such participants and to members
of the public through the one-stop delivery system in the State.
``(e) Enforcement.--
``(1) In general.--The criteria and procedures established
under this section shall provide the following:
``(A) Intentionally supplying inaccurate
information.--Upon a determination, by an individual or
entity specified in the criteria or procedures, that a
provider of training services, or individual providing
information on behalf of the provider, intentionally
supplied inaccurate information under this section, the
eligibility of such provider to receive funds under
chapter 5 shall be terminated for a period of time that
is not less than 2 years.
``(B) Substantial violations.--Upon a determination,
by an individual or entity specified in the criteria or
procedures, that a provider of training services
substantially violated any requirement under this
title, the eligibility of such provider to receive
funds under the program involved shall be terminated
for a period of time that is not less than 10 years.
``(C) Repayment.--A provider of training services
whose eligibility is terminated under subparagraph (A)
or (B) shall be liable for the repayment of funds
received under chapter 5 during a period of
noncompliance described in such subparagraph.
``(2) Construction.--Paragraph (1) shall be construed to
provide remedies and penalties that supplement, but do not
supplant, other civil and criminal remedies and penalties.
``(f) Agreements With Other States.--States may enter into
agreements, on a reciprocal basis, to permit eligible providers of
training services to accept career enhancement accounts provided in
another State.
``(g) Recommendations.--In developing the criteria, procedures, and
information required under this section, the Governor shall solicit and
take into consideration the recommendations of local boards and
providers of training services within the State.
``(h) Opportunity To Submit Comments.--During the development of the
criteria, procedures, requirements for information, and the list of
eligible providers required under this section, the Governor shall
provide an opportunity for interested members of the public to submit
comments regarding such criteria, procedures, and information.
``(i) On-the-Job Training or Customized Training Exception.--
``(1) In general.--Providers of on-the-job training or
customized training shall not be subject to the requirements of
subsections (a) through (d).
``(2) Collection and dissemination of information.--A one-
stop operator in a local area shall collect such performance
information from on-the-job training and customized training
providers as the Governor may require, determine whether the
providers meet such performance criteria as the Governor may
require, and disseminate information identifying providers that
meet the criteria as eligible providers, and the performance
information, through the one-stop delivery system. Providers
determined to meet the criteria shall be considered to be
identified as eligible providers of training services.''.
SEC. 110. GENERAL AUTHORIZATION.
Chapter 5 of subtitle B of title I is amended--
(1) by striking the heading for chapter 5 and inserting the
following: ``EMPLOYMENT AND TRAINING ACTIVITIES''; and
(2) in section 131 (29 U.S.C. 2861)--
(A) by striking ``paragraphs (1)(B) and (2)(B) of'';
and
(B) by striking ``adults, and dislocated workers,''
and inserting ``individuals''.
SEC. 111. STATE ALLOTMENTS.
Section 132 (29 U.S.C. 2862) is amended--
(1) by amending subsection (a) to read as follows:
``(a) In General.--The Secretary shall--
``(1) reserve \1/2\ of 1 percent of the total amount
appropriated under section 137 for a fiscal year, of which--
``(A) 50 percent shall be used to provide technical
assistance under section 170; and
``(B) 50 percent shall be used for evaluations under
section 172;
``(2) reserve not more than 1 percent of the total amount
appropriated under section 137 for a fiscal year to make grants
to, and 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 employment and training
activities;
``(3) reserve not more than 25 percent of the total amount
appropriated under section 137 for a fiscal year to carry out
the Jobs Corps program under subtitle C;
``(4) reserve not more than 3.5 percent of the total amount
appropriated under section 137 for a fiscal year to--
``(A) make grants to State or local boards 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
``(B) provide assistance to Governors of States with
an area that has suffered an emergency or a major
disaster (as such terms are 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)) to provide disaster relief employment
in the area.
``(5) from the remaining amount appropriated under section
137 for a fiscal year (after reserving funds under paragraphs
(1) through (4)), make allotments in accordance with subsection
(b) of this section.''; and
(2) by amending subsection (b) to read as follows:
``(b) Workforce Investment Fund.--
``(1) Reservation for outlying areas.--
``(A) In general.--From the amount made available
under subsection (a)(5) for a fiscal year, the
Secretary shall reserve not more than \1/4\ of 1
percent to provide assistance to the outlying areas.
``(B) Restriction.--The Republic of Palau shall cease
to be eligible to receive funding under this
subparagraph upon entering into an agreement for
extension of United States educational assistance under
the Compact of Free Association (approved by the
Compact of Free Association Amendments Act of 2003
(Public Law 99-658)) after the date of enactment of the
SKILLS Act.
``(2) States.--
``(A) In general.--After determining the amount to be
reserved under paragraph (1), the Secretary shall allot
the remainder of the amount referred to in subsection
(a)(5) for a fiscal year to the States pursuant to
subparagraph (B) for employment and training activities
and statewide workforce investment activities.
``(B) Formula.--Subject to subparagraphs (C) and (D),
of the remainder--
``(i) 25 percent shall be allotted on the
basis of the relative number of unemployed
individuals in areas of substantial
unemployment in each State, compared to the
total number of unemployed individuals in areas
of substantial unemployment in all States;
``(ii) 25 percent shall be allotted on the
basis of the relative number of individuals in
the civilian labor force in each State,
compared to the total number of such
individuals in all States;
``(iii) 25 percent shall be allotted on the
basis of the relative number of individuals in
each State who have been unemployed for 15
weeks or more, compared to the total number of
individuals in all States who have been
unemployed for 15 weeks or more; and
``(iv) 25 percent shall be allotted on the
basis of the relative number of disadvantaged
youth in each State, compared to the total
number of disadvantaged youth in all States.
``(C) Minimum and maximum percentages.--
``(i) Minimum percentage.--The Secretary
shall ensure that no State shall receive an
allotment under this paragraph for--
``(I) each of fiscal years 2014
through 2016, that is less than 100
percent of the allotment percentage of
the State for fiscal year 2012; and
``(II) fiscal year 2017 and each
succeeding fiscal year, that is less
than 90 percent of the allotment
percentage of the State for the
preceding fiscal year.
``(ii) Maximum percentage.--Subject to clause
(i), the Secretary shall ensure that no State
shall receive an allotment under this paragraph
for--
``(I) each of fiscal years 2014
through 2016, that is more than 130
percent of the allotment percentage of
the State for fiscal year 2012; and
``(II) fiscal year 2017 and each
succeeding fiscal year, that is more
than 130 percent of the allotment
percentage of the State for the
preceding fiscal year.
``(D) Small state minimum allotment.--Subject to
subparagraph (C), the Secretary shall ensure that no
State shall receive an allotment under this paragraph
for a fiscal year that is less than \1/5\ of 1 percent
of the remainder described in subparagraph (A) for the
fiscal year.
``(E) Definitions.--For the purpose of the formula
specified in this paragraph:
``(i) Allotment percentage.--The term
`allotment percentage'--
``(I) used with respect to fiscal
year 2012, means the percentage of the
amounts allotted to States under title
I of this Act, title V of the Older
Americans Act of 1965 (42 U.S.C. 3056
et seq.), the Women in Apprenticeship
and Nontraditional Occupations Act (29
U.S.C. 2501 et seq.), sections 4103A
and 4104 of title 38, United States
Code, and sections 1 through 14 of the
Wagner-Peyser Act (29 U.S.C. 49 et
seq.), as such provisions were in
effect for fiscal year 2012, that is
received under such provisions by the
State involved for fiscal year 2012;
and
``(II) used with respect to fiscal
year 2016 or a succeeding fiscal year,
means the percentage of the amounts
allotted to States under this paragraph
for the fiscal year that is received
under this paragraph by the State
involved for the fiscal year.
``(ii) Disadvantaged youth.--The term
`disadvantaged youth' means an individual who
is not less than age 16 and not more than age
24 who receives an income, or is a member of a
family that received a total family income,
that in relation to family size, does not
exceed the higher of--
``(I) the poverty line; or
``(II) 70 percent of the lower living
standard income level.
``(iii) Individual.--The term `individual'
means an individual who is age 16 or older.''.
SEC. 112. WITHIN STATE ALLOCATIONS.
Section 133 is amended--
(1) by amending subsection (a) to read as follows:
``(a) Reservations for Statewide Workforce Investment Activities.--
``(1) Statewide employment and training activities.--The
Governor of a State shall reserve up to 15 percent of the total
amount allotted to the State under section 132(b)(2) for a
fiscal year to carry out the statewide activities described in
section 134(a).
``(2) Statewide rapid response activities.--Of the amount
reserved under paragraph (1) for a fiscal year, the Governor of
the State shall reserve not more than 25 percent for statewide
rapid response activities described in section 134(a)(4).
``(3) Statewide grants for individuals with barriers to
employment.--Of the amount reserved under paragraph (1) for a
fiscal year, the Governor of a State shall reserve 15 percent
to carry out statewide activities described in section
134(a)(5).
``(4) State administrative cost limit.--Not more than 5
percent of the funds reserved under paragraph (1) may be used
by the Governor of a State for administrative costs of carrying
out the statewide activities described in section 134(a).'';
(2) by amending subsection (b) to read as follows:
``(b) Within State Allocation.--
``(1) Methods.--The Governor, acting in accordance with the
State plan, and after consulting with chief elected officials
in the local areas, shall--
``(A) allocate the funds that are allotted to the
State for employment and training activities and not
reserved under subsection (a), in accordance with
paragraph (2)(A); and
``(B) award the funds that are reserved by the State
under subsection (a)(3) through competitive grants to
eligible entities, in accordance with section
134(a)(1)(C).
``(2) Formula allocations for the workforce investment
fund.--
``(A) Allocation.--In allocating the funds described
in paragraph (1)(A) to local areas, a State shall
allocate--
``(i) 25 percent on the basis described in
section 132(b)(2)(B)(i);
``(ii) 25 percent on the basis described in
section 132(b)(2)(B)(ii);
``(iii) 25 percent on the basis described in
section 132(b)(2)(B)(iii); and
``(iv) 25 percent on the basis described in
section 132(b)(2)(B)(iv).
``(B) Minimum and maximum percentages.--
``(i) Minimum percentage.--The State shall
ensure that no local area shall receive an
allocation under this paragraph for--
``(I) each of fiscal years 2014
through 2016, that is less than 100
percent of the allocation percentage of
the local area for fiscal year 2012;
and
``(II) fiscal year 2017 and each
succeeding fiscal year, that is less
than 90 percent of the allocation
percentage of the local area for the
preceding fiscal year.
``(ii) Maximum percentage.--Subject to clause
(i), the State shall ensure that no local area
shall receive an allocation for a fiscal year
under this paragraph for--
``(I) each of fiscal years 2014
through 2016, that is more than 130
percent of the allocation percentage of
the local area for fiscal year 2012;
and
``(II) fiscal year 2017 and each
succeeding fiscal year, that is more
than 130 percentage of the allocation
percentage of the local area for the
preceding fiscal year.
``(C) Definitions.--For the purpose of the formula
specified in this paragraph, the term `allocation
percentage'--
``(i) used with respect to fiscal year 2012,
means the percentage of the amounts allocated
to local areas under title I of this Act, title
V of the Older Americans Act of 1965 (42 U.S.C.
3056 et seq.), the Women in Apprenticeship and
Nontraditional Occupations Act (29 U.S.C. 2501
et seq.), sections 4103A and 4104 of title 38,
United States Code, and sections 1 through 14
of the Wagner-Peyser Act (29 U.S.C. 49 et
seq.), as such provisions were in effect for
fiscal year 2012, that is received under such
provisions by the local area involved for
fiscal year 2012; and
``(ii) used with respect to fiscal year 2016
or a succeeding fiscal year, means the
percentage of the amounts allocated to local
areas for the fiscal year under this paragraph
that is received under this paragraph by the
local area involved for the fiscal year.'';
(3) in subsection (c)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--The Governor, may in accordance with this
subsection, reallocate to eligible local areas within the State
amounts that are allocated under subsection (b) for employment
and training activities and that are available for
reallocation.'';
(B) in paragraph (2), by striking ``paragraph (2)(A)
or (3) of subsection (b) for such activities'' and
inserting ``subsection (b) for such activities'';
(C) by amending paragraph (3) to read as follows:
``(3) Reallocations.--In making reallocations to eligible
local areas of amounts available pursuant to paragraph (2) for
a program year, the Governor shall allocate to each eligible
local area within the State an amount based on the relative
amount allocated to such local area under subsection (b)(2) for
such activities for such prior program year, as compared to the
total amount allocated to all eligible local areas in the State
under subsection (b)(2) for such activities for such prior
program year.''; and
(D) in paragraph (4), by striking ``paragraph (2)(A)
or (3) of''; and
(4) by adding at the end the following new subsection:
``(d) Local Administrative Cost Limit.--Of the amounts allocated to a
local area under this section for a fiscal year, not more than 10
percent of the amount may be used by the local board involved for the
administrative costs of carrying out local workforce investment
activities in the local area under this chapter.''.
SEC. 113. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.
Section 134 is amended--
(1) by amending subsection (a) to read as follows:
``(a) Statewide Employment and Training Activities.--
``(1) In general.--
``(A) Distribution of statewide activities.--Funds
reserved by a Governor for a State as described in
section 133(a)(1)--
``(i) shall be used to carry out the
statewide employment and training activities
described in paragraph (2); and
``(ii) may be used to carry out any of the
statewide employment and training activities
described in paragraph (3).
``(B) Statewide rapid response activities.--Funds
reserved by a Governor for a State as described in
section 133(a)(2) shall be used to carry out the
statewide rapid response activities described in
paragraph (4).
``(C) Statewide grants for individuals with barriers
to employment.--Funds reserved by a Governor for a
State as described in section 133(a)(3) shall be used
to carry out the Statewide Grants for Individuals with
Barriers to Employment competition described in
paragraph (5).
``(2) Required statewide employment and training
activities.--A State shall use funds reserved as described in
section 133(a)(1) to carry out statewide employment and
training activities, which shall include--
``(A) disseminating the State list of eligible
providers of training described in section 122(d),
information identifying eligible providers of on-the-
job training and customized training described in
section 122(i), and performance information and program
cost information described in section 122(b)(2);
``(B) supporting the provision of work ready services
described in subsection (c)(2) in the one-stop delivery
system;
``(C) implementing strategies and services that will
be used in the State to assist at-risk youth and out-
of-school youth in acquiring the education and skills,
recognized postsecondary credentials, and employment
experience to succeed in the labor market;
``(D) conducting evaluations under section 136(e) of
activities authorized under this chapter in
coordination with evaluations carried out by the
Secretary under section 172;
``(E) providing technical assistance to local areas
that fail to meet local performance measures;
``(F) operating a fiscal and management
accountability system under section 136(f); and
``(G) carrying out monitoring and oversight of
activities carried out under this chapter.
``(3) Allowable statewide employment and training
activities.--A State may use funds reserved as described in
section 133(a)(1) to carry out statewide employment and
training activities which may include--
``(A) implementing innovative programs and strategies
designed to meet the needs of all employers in the
State, including small employers, which may include
incumbent worker training programs, sectoral and
industry cluster strategies and partnerships, career
ladder programs, micro-enterprise and entrepreneurial
training and support programs, utilization of effective
business intermediaries, activities to improve linkages
between the one-stop delivery system in the State and
all employers (including small employers) in the State,
and other business services and strategies that better
engage employers in workforce investment activities and
make the workforce investment system more relevant to
the needs of State and local businesses, consistent
with the objectives of this title;
``(B) providing incentive grants to local areas for
regional cooperation among local boards (including
local boards in a designated region as described in
section 116(c)), for local coordination of activities
carried out under this Act, and for exemplary
performance by local areas on the local performance
measures;
``(C) developing strategies for effectively
integrating programs and services among one-stop
partners;
``(D) carrying out activities to facilitate remote
access to services provided through a one-stop delivery
system, including facilitating access through the use
of technology;
``(E) incorporating pay-for-performance contracting
strategies, as defined in section 101(56), as an
element in funding activities under this section and
providing technical support to local areas and
providers in order to carry out such strategy, which
may provide assistance with data collection and data
entry requirements;
``(F) carrying out the State option under subsection
(f)(8); and
``(G) carrying out other activities authorized under
this section that the State determines to be necessary
to assist local areas in carrying out activities
described in subsection (c) or (d) through the
statewide workforce investment system.
``(4) Statewide rapid response activities.--A State shall use
funds reserved as described in section 133(a)(2) to carry out
statewide rapid response activities, which shall include--
``(A) provision of rapid response activities, carried
out in local areas by the State or by an entity
designated by the State, working in conjunction with
the local boards and the chief elected officials in the
local areas; and
``(B) provision of additional assistance to local
areas that experience disasters, mass layoffs or plant
closings, or other events that precipitate substantial
increases in the number of unemployed individuals,
carried out in local areas by the State or by an entity
designated by the State, working in conjunction with
the local boards and the chief elected officials in the
local areas.
``(5) Statewide grants for individuals with barriers to
employment.--
``(A) In general.--Of the funds reserved as described
in section 133(a)(3), the Governor of a State--
``(i) may reserve up to 5 percent to provide
technical assistance to, and conduct
evaluations as described in section 136(e), of
the programs and activities carried out under
this paragraph; and
``(ii) using the remainder, shall award
grants on a competitive basis to eligible
entities described in subparagraph (B) to carry
out employment and training programs authorized
under this paragraph for individuals with
barriers to employment that meet specific
performance outcomes and criteria established
by the Governor.
``(B) Eligible entity defined.--For purposes of this
paragraph, the term `eligible entity' means an entity
that--
``(i) is a--
``(I) local board or a consortium of
local boards;
``(II) nonprofit entity, for-profit
entity, or a consortium of nonprofit or
for-profit entities; or
``(III) consortium of the entities
described in subclauses (I) and (II);
``(ii) has a demonstrated record of placing
individuals into unsubsidized employment and
serving hard to serve individuals; and
``(iii) agrees to be reimbursed primarily on
the basis of achievement of specified
performance outcomes and criteria established
by the Governor.
``(C) Grant period.--
``(i) In general.--A grant under this
paragraph shall be awarded for a period of 1
year.
``(ii) Grant renewal.--A Governor of a State
may renew, for up to 4 additional 1-year
periods, a grant awarded under this paragraph.
``(D) Eligible participants.--To be eligible to
participate in activities under this paragraph, an
individual shall be a low-income individual age 16 or
older or a member of a low-income family.
``(E) Use of funds.--An eligible entity receiving a
grant under this paragraph shall use such funds for
activities that are designed to assist eligible
participants in obtaining employment and acquiring the
education and skills necessary to succeed in the labor
market.
``(F) Applications.--To be eligible to receive a
grant under this paragraph, an eligible entity shall
submit an application to a State at such time, in such
manner, and containing such information as the State
may require, including--
``(i) a description of how the strategies and
activities will be aligned with the State plan
submitted under section 112 and the local plan
submitted under section 118 with respect to the
areas of the State that will be the focus of
grant activities under this paragraph;
``(ii) a description of the educational and
skills training programs and activities the
eligible entity will provide to eligible
participants under this paragraph;
``(iii) how the eligible entity will
collaborate with State and local workforce
investment systems established under this title
in the provision of such programs and
activities;
``(iv) a description of the programs of
demonstrated effectiveness on which the
provision of such educational and skills
training programs and activities are based, and
a description of how such programs and
activities will improve the education and
skills training for eligible participants;
``(v) a description of the populations to be
served and the skill needs of those
populations, and the manner in which eligible
participants will be recruited and selected as
participants;
``(vi) a description of the private, public,
local, and State resources that will be
leveraged, in addition to the grant funds
provided for the programs and activities under
this paragraph, and how the entity will ensure
the sustainability of such programs and
activities after grant funds are no longer
available;
``(vii) a description of the extent of the
involvement of employers in such programs and
activities;
``(viii) a description of the levels of
performance the eligible entity expects to
achieve with respect to the indicators of
performance for all individuals specified in
section in 136(b)(2);
``(ix) a detailed budget and a description of
the system of fiscal controls, and auditing and
accountability procedures that will be used to
ensure fiscal soundness for the programs and
activities provided under this paragraph; and
``(x) any other criteria the Governor may
require.'';
(2) by amending subsection (b) to read as follows:
``(b) Local Employment and Training Activities.--Funds allocated to a
local area under section 133(b)--
``(1) shall be used to carry out employment and training
activities described in subsection (c); and
``(2) may be used to carry out employment and training
activities described in subsection (d).'';
(3) by striking subsection (c);
(4) by redesignating subsections (d) and (e), as subsections
(c) and (d), respectively;
(5) in subsection (c) (as so redesignated)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--Funds allocated to a local area under
section 133(b) shall be used--
``(A) to establish a one-stop delivery system as
described in section 121(e);
``(B) to provide the work ready services described in
paragraph (2) through the one-stop delivery system in
accordance with such paragraph; and
``(C) to provide training services described in
paragraph (4) in accordance with such paragraph.'';
(B) in paragraph (2)--
(i) in the heading, by striking ``Core
services'' and inserting ``Work ready
services'';
(ii) in the matter preceding subparagraph
(A)--
(I) by striking ``(1)(A)'' and
inserting ``(1)(B)'';
(II) by striking ``core services''
and inserting ``work ready services'';
and
(III) by striking ``who are adults or
dislocated workers'';
(iii) by redesignating subparagraph (K) as
subparagraph (V);
(iv) by redesignating subparagraphs (B)
through (J) as subparagraphs (C) through (K),
respectively;
(v) by inserting after subparagraph (A) the
following:
``(B) assistance in obtaining eligibility
determinations under the other one-stop partner
programs through activities, where appropriate and
consistent with the authorizing statute of the one-stop
partner program, such as assisting in the submission of
applications, the provision of information on the
results of such applications, and the provision of
intake services and information;'';
(vi) by amending subparagraph (E), as so
redesignated, to read as follows:
``(E) labor exchange services, including--
``(i) job search and placement assistance,
and where appropriate, career counseling;
``(ii) appropriate recruitment services for
employers, including small employers, in the
local area, which may include services
described in this subsection, including
information and referral to specialized
business services not traditionally offered
through the one-stop delivery system; and
``(iii) reemployment services provided to
unemployment claimants, including claimants
identified as in need of such services under
the worker profiling system established under
section 303(j) of the Social Security Act (42
U.S.C. 503(j));'';
(vii) in subparagraph (F), as so
redesignated, by striking ``employment
statistics'' and inserting ``workforce and
labor market'';
(viii) in subparagraph (G), as so
redesignated, by striking ``and eligible
providers of youth activities described in
section 123,'';
(ix) in subparagraph (H), as so redesignated,
by inserting ``under section 136'' after
``local performance measures'';
(x) in subparagraph (J), as so redesignated,
by inserting ``and the administration of the
work test for the unemployment compensation
system'' after ``compensation'';
(xi) by amending subparagraph (K), as so
redesignated, to read as follows:
``(K) assistance in establishing eligibility for
programs of financial aid assistance for training and
education programs that are not funded under this Act
and are available in the local area;''; and
(xii) by inserting the following new
subparagraphs after subparagraph (K), as so
redesignated:
``(L) the provision of information from official
publications of the Internal Revenue Service regarding
Federal tax credits available to individuals relating
to education, job training and employment;
``(M) comprehensive and specialized assessments of
the skill levels and service needs of workers, which
may include--
``(i) diagnostic testing and use of other
assessment tools; and
``(ii) in-depth interviewing and evaluation
to identify employment barriers and appropriate
employment goals;
``(N) development of an individual employment plan,
to identify the employment goals, appropriate
achievement objectives, and appropriate combination of
services for the participant;
``(O) group counseling;
``(P) individual counseling and career planning;
``(Q) case management;
``(R) short-term pre-career services, including
development of learning skills, communications skills,
interviewing skills, punctuality, personal maintenance
skills, and professional conduct, to prepare
individuals for unsubsidized employment or training;
``(S) internships and work experience;
``(T) literacy activities relating to basic work
readiness, information and communication technology
literacy activities, and financial literacy activities,
if such activities are not available to participants in
the local area under programs administered under the
Adult Education and Family Literacy Act (20 U.S.C. 2901
et seq.);
``(U) out-of-area job search assistance and
relocation assistance; and''; and
(C) by amending paragraph (3) to read as follows:
``(3) Delivery of services.--The work ready services
described in paragraph (2) shall be provided through the one-
stop delivery system and may be provided through contracts with
public, private for-profit, and private nonprofit service
providers, approved by the local board.'';
(D) in paragraph (4)--
(i) by amending subparagraph (A) to read as
follows:
``(A) In general.--Funds described in paragraph
(1)(C) shall be used to provide training services to
individuals who--
``(i) after an interview, evaluation, or
assessment, and case management, have been
determined by a one-stop operator or one-stop
partner, as appropriate, to--
``(I) be in need of training services
to obtain or retain employment; and
``(II) have the skills and
qualifications to successfully
participate in the selected program of
training services;
``(ii) select programs of training services
that are directly linked to the employment
opportunities in the local area involved or in
another area in which the individual receiving
such services are willing to commute or
relocate; and
``(iii) who meet the requirements of
subparagraph (B);''; and
(ii) in subparagraph (B)(i), by striking
``Except'' and inserting ``Notwithstanding
section 479B of the Higher Education Act of
1965 (20 U.S.C. 1087uu) and except'';
(iii) by amending subparagraph (D) to read as
follows:
``(D) Training services.--Training services
authorized under this paragraph may include--
``(i) occupational skills training;
``(ii) on-the-job training;
``(iii) skill upgrading and retraining;
``(iv) entrepreneurial training;
``(v) education activities leading to a
regular secondary school diploma or its
recognized equivalent in combination with,
concurrently or subsequently, occupational
skills training;
``(vi) adult education and literacy
activities provided in conjunction with other
training authorized under this subparagraph;
``(vii) workplace training combined with
related instruction;
``(viii) occupational skills training that
incorporates English language acquisition;
``(ix) customized training conducted with a
commitment by an employer or group of employers
to employ an individual upon successful
completion of the training; and
``(x) training programs operated by the
private sector.'';
(iv) by striking subparagraph (E) and
redesignating subparagraphs (F) and (G) as
subparagraphs (E) and (F), respectively; and
(v) in subparagraph (E) (as so
redesignated)--
(I) in clause (ii)--
(aa) in the matter preceding
subclause (I), by striking
``subsection (c)'' and
inserting ``section 121'';
(bb) in subclause (I), by
striking ``section 122(e)'' and
inserting ``section 122(d)''
and by striking ``section
122(h)'' and inserting
``section 122(i)''; and
(cc) in subclause (II), by
striking ``subsections (e) and
(h)'' and inserting
``subsection (i)''; and
(II) by striking clause (iii) and
inserting the following:
``(iii) Career enhancement accounts.--An
individual who seeks training services and who
is eligible pursuant to subparagraph (A), may,
in consultation with a case manager, select an
eligible provider of training services from the
list or identifying information for providers
described in clause (ii)(I). Upon such
selection, the one-stop operator involved
shall, to the extent practicable, refer such
individual to the eligible provider of training
services, and arrange for payment for such
services through a career enhancement account.
``(iv) Coordination.--Each local board may,
through one-stop centers, coordinate career
enhancement accounts with other Federal, State,
local, or private job training programs or
sources to assist the individual in obtaining
training services.
``(v) Assistance.--Each local board may,
through one-stop centers, assist individuals
receiving career enhancement accounts in
obtaining funds (in addition to the funds
provided under this section) from other
programs and sources that will assist the
individual in obtaining training services.'';
and
(vi) in subparagraph (F) (as so
redesignated)--
(I) in the subparagraph heading, by
striking ``individual training
accounts'' and inserting ``career
enhancement accounts'';
(II) in clause (i) by striking
``individual training accounts'' and
inserting ``career enhancement
accounts'';
(III) in clause (ii)--
(aa) by striking ``an
individual training account''
and inserting ``a career
enhancement account'';
(bb) by striking
``subparagraph (F)'' and
inserting ``subparagraph (E)'';
(cc) in subclause (II), by
striking ``individual training
accounts'' and inserting
``career enhancement
accounts'';
(dd) in subclause (II) by
striking ``or'' after the
semicolon;
(ee) in subclause (III) by
striking the period and
inserting ``; or''; and
(ff) by adding at the end the
following:
``(IV) the local board determines
that it would be most appropriate to
award a contract to an institution of
higher education that has been
identified as a priority provider under
section 117(d)(5)(B) in order to
facilitate the training of multiple
individuals in in-demand sectors or
occupations, and which may be used to
enable the expansion of programs
provided by a priority provider, if
such contract does not limit customer
choice.'';
(IV) in clause (iii), by striking
``adult or dislocated worker'' and
inserting ``individual''; and
(V) in clause (iv)--
(aa) by redesignating
subclause (IV) as subclause (V)
and inserting after subclause
(III) the following:
``(IV) Individuals with
disabilities.'';
(6) in subsection (d) (as so redesignated)--
(A) by amending paragraph (1) to read as follows:
``(1) Discretionary one-stop delivery activities.--
``(A) In general.--Funds allocated to a local area
under section 133(b)(2) may be used to provide, through
the one-stop delivery system--
``(i) customized screening and referral of
qualified participants in training services to
employers;
``(ii) customized employment-related services
to employers on a fee-for-service basis;
``(iii) customer supports, including
transportation and childcare, to navigate among
multiple services and activities for special
participant populations that face multiple
barriers to employment, including individuals
with disabilities;
``(iv) employment and training assistance
provided in coordination with child support
enforcement activities of the State agency
carrying out subtitle D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.);
``(v) incorporating pay-for-performance
contract strategies, as defined in section
101(56), as an element in funding activities
under this section;
``(vi) activities to facilitate remote access
to services provided through a one-stop
delivery system, including facilitating access
through the use of technology; and
``(vii) activities to carry out business
services and strategies that meet the workforce
investment needs of local area employers, as
determined by the local board, consistent with
the local plan under section 118.''.
(B) by striking paragraphs (2) and (3); and
(C) by adding at the end the following:
``(2) Incumbent worker training programs.--
``(A) In general.--The local board may use funds
allocated to a local area under section 133(b)(2) to
carry out incumbent worker training programs in
accordance with this paragraph.
``(B) Training activities.--The training programs for
incumbent workers under this paragraph shall be carried
out by the local area in conjunction with the employers
of such workers for the purpose of assisting such
workers in obtaining the skills necessary to retain
employment and avert layoffs.
``(C) Employer match required.--
``(i) In general.--Employers participating in
programs under this paragraph shall be required
to pay a proportion of the costs of providing
the training to the incumbent workers of the
employers. The local board shall establish the
required portion of such costs, which may
include in-kind contributions.
``(ii) Calculation of match.--The wages paid
by an employer to a worker while they are
attending training may be included as part of
the required payment of the employer.''; and
(7) by adding at the end the following:
``(e) Priority for Placement in Private Sector Jobs.--In providing
employment and training activities authorized under this section, the
State and local board shall give priority to placing participants in
jobs in the private sector.
``(f) Veteran Employment Specialist.--
``(1) In general.--Subject to paragraph (8), a local board
shall hire and employ one or more veteran employment specialist
to carry out employment, training, and placement services under
this subsection in the local area served by the local board.
``(2) Principal duties.--A veteran employment specialist in a
local area shall--
``(A) conduct outreach to employers in the local area
to assist veterans, including disabled veterans, in
gaining employment, including--
``(i) conducting seminars for employers; and
``(ii) in conjunction with employers,
conducting job search workshops, and
establishing job search groups; and
``(B) facilitate employment, training, supportive,
and placement services furnished to veterans, including
disabled and homeless veterans, in the local area.
``(3) Hiring preference for veterans and individuals with
expertise in serving veterans.--Subject to paragraph (8), a
local board shall, to the maximum extent practicable, employ
veterans or individuals with expertise in serving veterans to
carry out the services described in paragraph (2) in the local
area served by the local board. In hiring an individual to
serve as a veteran employment specialist, a local board shall
give preference to veterans and other individuals in the
following order:
``(A) To service-connected disabled veterans.
``(B) If no veteran described in subparagraph (A) is
available, to veterans.
``(C) If no veteran described in subparagraph (A) or
(B) is available, to any member of the Armed Forces
transitioning out of military service.
``(D) If no veteran described in subparagraph (A),
(B), or (C) is available, to any spouse of a veteran or
a spouse of a member of the Armed Forces transitioning
out of military service.
``(E) If no veteran described in subparagraph (A),
(B), or (C) is available and no spouse described in
paragraph (D) is available, to any other individuals
with expertise in serving veterans.
``(4) Administration and reporting.--
``(A) In general.--Each veteran employment specialist
shall be administratively responsible to the manager of
the one-stop delivery center in the local area and
shall provide, at a minimum, quarterly reports to the
manager of such center and to the Director for
Veterans' Employment and Training for the State on the
performance and compliance by the specialist with
Federal law and regulations with respect to the--
``(i) principal duties and special services
for veterans described in paragraph (2); and
``(ii) hiring preferences described in
paragraph (3) for veterans and individuals with
expertise in serving veterans.
``(B) Report to secretary.--Each State shall submit
to the Secretary an annual report on the qualifications
used by the local board in making hiring determinations
for a veteran employment specialist and the salary
structure under which such specialist is compensated.
``(C) Report to congress.--The Secretary shall submit
to the Committee on Education and the Workforce and the
Committee on Veterans' Affairs of the House of
Representatives and the Committee on Health, Education,
Labor, and Pensions and the Committee on Veterans'
Affairs of the Senate an annual report summarizing the
reports submitted under subparagraph (B), including
summaries of outcomes achieved by participating
veterans disaggregated by local areas.
``(5) Part-time employees.--A part-time veteran employment
specialist shall perform the functions of a veteran employment
specialist under this subsection on a halftime basis.
``(6) Training requirements.--Each veteran employment
specialist described in paragraph (2) shall satisfactorily
complete training provided by the National Veterans' Employment
and Training Institute during the three-year period that begins
on the date on which the employee is so assigned.
``(7) Specialist's duties.--A full-time veteran employment
specialist shall perform only duties related to the employment,
training, supportive, and placement services under this
subsection, and shall not perform other non-veteran-related
duties if such duties detract from the specialist's ability to
perform the specialist's duties related to employment,
training, and placement services under this subsection.
``(8) State option.--At the request of a local board, a State
may assume the duties assigned to the local board under
paragraphs (1) and (3), including the hiring and employment of
one or more veteran employment specialist for placement in the
local area served by the local board.''.
SEC. 114. PERFORMANCE ACCOUNTABILITY SYSTEM.
Section 136 (29 U.S.C. 2871) is amended--
(1) in subsection (b)--
(A) by amending paragraphs (1) and (2) to read as
follows:
``(1) In general.--For each State, the State performance
measures shall consist of--
``(A)(i) the core indicators of performance described
in paragraph (2)(A); and
``(ii) additional indicators of performance (if any)
identified by the State under paragraph (2)(B); and
``(B) a State adjusted level of performance for each
indicator described in subparagraph (A).
``(2) Indicators of performance.--
``(A) Core indicators of performance.--
``(i) In general.--The core indicators of
performance for the program of employment and
training activities authorized under sections
132(a)(2) and 134, the program of adult
education and literacy activities authorized
under title II, and the program authorized
under title I of the Rehabilitation Act of 1973
(29 U.S.C. 720 et seq.), other than section 112
or part C of that title (29 U.S.C. 732, 741),
shall consist of the following indicators of
performance, each disaggregated by the
populations identified in the State and local
plans:
``(I) The percentage and number of
program participants who are in
unsubsidized employment during the
second full calendar quarter after exit
from the program.
``(II) The percentage and number of
program participants who are in
unsubsidized employment during the
fourth full calendar quarter after exit
from the program.
``(III) The median earnings of
program participants who are in
unsubsidized employment during the
second full calendar quarter after exit
from the program compared to the median
earnings of such participants prior to
the training received under such
program.
``(IV) The percentage and number of
program participants who obtain a
recognized postsecondary credential, a
registered apprenticeship, an industry-
recognized credential, or a regular
secondary school diploma or its
recognized equivalent (subject to
clause (ii)), during participation in
or within 1 year after exit from
program.
``(V) The percentage and number of
program participants who, during a
program year--
``(aa) are in an education or
training program that leads to
a recognized postsecondary
credential, a registered
apprenticeship or on-the-job
training program, an industry-
recognized credential, a
regular secondary school
diploma or its recognized
equivalent, or unsubsidized
employment; and
``(bb) are achieving
measurable basic skill gains
toward such a credential or
employment.
``(VI) The percentage and number of
program participants who obtain
unsubsidized employment in the field
relating to the training services
described in section 134(c)(4) that
such participants received.
``(ii) Indicator relating to credential.--For
purposes of clause (i)(IV), program
participants who obtain a regular secondary
school diploma or its recognized equivalent
shall be included in the percentage counted as
meeting the criterion under such clause only if
such participants, in addition to obtaining
such diploma or its recognized equivalent,
have, within 1 year after exit from the
program, obtained or retained employment, have
been removed from public assistance, or are in
an education or training program leading to a
recognized postsecondary credential.
``(B) Additional indicators.--A State may identify in
the State plan additional indicators for workforce
investment activities authorized under this
subtitle.''; and
(B) in paragraph (3)--
(i) in subparagraph (A)--
(I) in the heading, by striking ``and
customer satisfaction indicator'';
(II) in clause (i), by striking ``and
the customer satisfaction indicator
described in paragraph (2)(B)'';
(III) in clause (ii), by striking
``and the customer satisfaction
indicator of performance, for the first
3'' and inserting ``, for all 3'';
(IV) in clause (iii)--
(aa) in the heading, by
striking ``for first 3 years'';
and
(bb) by striking ``and the
customer satisfaction indicator
of performance, for the first 3
program years'' and inserting
``for all 3 program years'';
(V) in clause (iv)--
(aa) by striking ``or (v)'';
(bb) by striking subclause
(I) and redesignating
subclauses (II) and (III) as
subclauses (I) and (II),
respectively; and
(cc) in subclause (I) (as so
redesignated)--
(AA) by striking
``taking into account''
and inserting ``which
shall be adjusted based
on'';
(BB) by inserting ``,
such as unemployment
rates and job losses or
gains in particular
industries'' after
``economic
conditions''; and
(CC) by inserting ``,
such as indicators of
poor work experience,
dislocation from high-
wage employment, low
levels of literacy or
English proficiency,
disability status,
including the number of
veterans with
disabilities, and
welfare dependency''
after ``program'';
(VI) by striking clause (v) and
redesignating clause (vi) as clause
(v); and
(VII) in clause (v) (as so
redesignated),
(aa) by striking ``described
in clause (iv)(II)'' and
inserting ``described in clause
(iv)(I)''; and
(bb) by striking ``or (v)'';
and
(ii) in subparagraph (B), by striking
``paragraph (2)(C)'' and inserting ``paragraph
(2)(B)'';
(2) in subsection (c)(1)(A)--
(A) by amending clause (i) to read as follows: ``(i)
the core indicators of performance described in
subsection (b)(2)(A) for activities described in such
subsections, other than statewide workforce investment
activities; and'';
(B) in clause (ii), by striking ``(b)(2)(C)'' and
inserting ``(b)(2)(B)''; and
(C) by amending paragraph (3) to read as follows:
``(3) Determinations.--In determining such local levels of
performance, the local board, the chief elected official, and
the Governor shall ensure such levels are adjusted based on the
specific economic characteristics (such as unemployment rates
and job losses or gains in particular industries), demographic
characteristics, or other characteristics of the population to
be served in the local area.'';
(3) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``127 or'';
(ii) by striking ``and the customer
satisfaction indicator'' each place it appears;
and
(iii) in the last sentence, by inserting
before the period the following: ``, and on the
amount and percentage of the State's annual
allotment under section 132 the State spends on
administrative costs and on the amount and
percentage of its annual allocation under
section 133 each local area in the State spends
on administrative costs'';
(B) in paragraph (2)--
(i) by striking subparagraphs (A), (B), and
(D);
(ii) by redesignating subparagraph (C) as
subparagraph (A);
(iii) by redesignating subparagraph (E) as
subparagraph (B);
(iv) in subparagraph (B), as so
redesignated--
(I) by striking ``(excluding
participants who received only self-
service and informational
activities)''; and
(II) by striking ``and'' at the end;
(v) by striking subparagraph (F);
(vi) by adding at the end the following:
``(C) with respect to each local area in the State--
``(i) the number of individuals who received
work ready services described under section
134(c)(2) and the number of individuals who
received training services described under
section 134(c)(4) during the most recent
program year and fiscal year, and the preceding
5 program years, where the individuals received
the training, disaggregated by the type of
entity that provided the training, and the
amount of funds spent on each type of service;
``(ii) the number of individuals who
successfully exited out of work ready services
described under section 134(c)(2) and the
number of individuals who exited out of
training services described under section
134(c)(4) during the most recent program year
and fiscal year, and the preceding 5 program
years, and where the individuals received the
training, disaggregated by the type of entity
that provided the training; and
``(iii) the average cost per participant of
those individuals who received work ready
services described under section 134(c)(2) and
the average cost per participant of those
individuals who received training services
described under section 134(c)(4) during the
most recent program year and fiscal year, and
the preceding 5 program years, and where the
individuals received the training,
disaggregated by the type of entity that
provided the training; and
``(E) the amount of funds spent on training services
and discretionary one-stop delivery activities,
disaggregated by the populations identified in the
State and local plans.'';
(C) in paragraph (3)(A), by striking ``through
publication'' and inserting ``through electronic
means''; and
(D) by adding at the end the following:
``(4) Data validation.--In preparing the reports described in
this subsection, each State shall establish procedures,
consistent with guidelines issued by the Secretary, to ensure
the information contained in the report is valid and reliable.
``(5) State and local policies.--
``(A) State policies.--Each State that receives an
allotment under section 132 shall maintain a central
repository of policies related to access, eligibility,
availability of services, and other matters and plans
approved by the State board and make such repository
available to the public, including by electronic means.
``(B) Local policies.--Each local area that receives
an allotment under section 133 shall maintain a central
repository of policies related to access, eligibility,
availability of services, and other matters and plans
approved by the local board and make such repository
available to the public, including by electronic
means.'';
(4) in subsection (g)--
(A) in paragraph (1)(A), by striking ``or (B)'';
(B) in paragraph (1)(B), by striking ``may reduce by
not more than 5 percent,'' and inserting ``shall
reduce''; and
(C) by striking paragraph (2) and inserting the
following:
``(2) Funds resulting from reduced allotments.--The Secretary
shall return to the Treasury the amount retained, as a result
of a reduction in an allotment to a State made under paragraph
(1)(B).'';
(5) in subsection (h)(1), by striking ``or (B)'';
(6) in subsection (h)(2)--
(A) in subparagraph (A), by amending the matter
preceding clause (i) to read as follows:
``(A) In general.--If such failure continues for a
second consecutive year, the Governor shall take
corrective actions, including the development of a
reorganization plan. Such plan shall--'';
(B) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(C) by inserting after subparagraph (A), the
following:
``(B) Reduction in the amount of grant.--If such
failure continues for a third consecutive year, the
Governor of a State shall reduce the amount of the
grant that would (in the absence of this subparagraph)
be payable to the local area under such program for the
program year after such third consecutive year. Such
penalty shall be based on the degree of failure to meet
local levels of performance.'';
(D) in subparagraph (C)(i) (as so redesignated), by
striking ``a reorganization plan under subparagraph (A)
may, not later than 30 days after receiving notice of
the reorganization plan, appeal to the Governor to
rescind or revise such plan'' and inserting
``corrective actions under subparagraphs (A) and (B)
may, not later than 30 days after receiving notice of
the actions, appeal to the Governor to rescind or
revise such actions''; and
(E) in subparagraph (D) (as so redesignated), by
striking ``subparagraph (B)'' each place it appears and
inserting ``subparagraph (C)'';
(7) in subsection (i)(1)(B), by striking ``subsection
(b)(2)(C)'' and inserting ``subsection (b)(2)(B)'';
(8) in subsection (i)(1)(C), by striking ``(b)(3)(A)(vi)''
and inserting ``(b)(3)(A)(v)'';
(9) in subsection (i)(2), by striking ``the activities
described in section 502 concerning'';
(10) in subsection (i)(3), by striking ``described in
paragraph (1) and in the activities described in section 502''
and inserting ``and activities described in this subsection'';
and
(11) by adding at the end the following new subsections:
``(j) Use of Core Indicators for Other Programs.--In addition to the
programs carried out under chapter 5, and consistent with the
requirements of the applicable authorizing laws, the Secretary shall
use the core indicators of performance described in subsection
(b)(2)(A) to assess the effectiveness of the programs described under
section 121(b)(1)(B) that are carried out by the Secretary.
``(k) Establishing Pay-for-performance Incentives.--
``(1) In general.--At the discretion of the Governor of a
State, a State may establish an incentive system for local
boards to implement pay-for-performance contract strategies for
the delivery of employment and training services in the local
areas served by the local boards.
``(2) Implementation.--A State that establishes a pay-for-
performance incentive system shall reserve not more than 10
percent of the total amount allotted to the State under section
132(b)(2) for a fiscal year to provide funds to local areas in
the State whose local boards have implemented a pay-for-
performance contract strategy.
``(3) Evaluations.--A State described in paragraph (2) shall
use funds reserved by the State under section 133(a)(1) to
evaluate the return on investment of pay-for-performance
contract strategies implemented by local boards in the
State.''.
SEC. 115. AUTHORIZATION OF APPROPRIATIONS.
Section 137 (29 U.S.C. 2872) is amended to read as follows:
``SEC. 137. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out the activities
described in section 132, $6,245,318,000 for fiscal year 2014 and each
of the 6 succeeding fiscal years.''.
Subtitle C--Job Corps
SEC. 116. JOB CORPS PURPOSES.
Paragraph (1) of section 141 (29 U.S.C. 2881(1)) is amended to read
as follows:
``(1) to maintain a national Job Corps program for at-risk
youth, carried out in partnership with States and communities,
to assist eligible youth to connect to the workforce by
providing them with intensive academic, career and technical
education, and service-learning opportunities, in residential
and nonresidential centers, in order for such youth to obtain
regular secondary school diplomas and recognized postsecondary
credentials leading to successful careers in in-demand
industries that will result in opportunities for
advancement;''.
SEC. 117. JOB CORPS DEFINITIONS.
Section 142 (29 U.S.C. 2882) is amended--
(1) in paragraph (2)--
(A) in the paragraph heading, by striking
``Applicable one-stop'' and inserting ``One-stop'';
(B) by striking ``applicable'';
(C) by striking ``customer service''; and
(D) by striking ``intake'' and inserting
``assessment'';
(2) in paragraph (4), by striking ``before completing the
requirements'' and all that follows and inserting ``prior to
becoming a graduate.''; and
(3) in paragraph (5), by striking ``has completed the
requirements'' and all that follows and inserting the
following: ``who, as a result of participation in the Job Corps
program, has received a regular secondary school diploma,
completed the requirements of a career and technical education
and training program, or received, or is making satisfactory
progress (as defined under section 484(c) of the Higher
Education Act of 1965 (20 U.S.C. 1091(c)) toward receiving, a
recognized postsecondary credential, including an industry-
recognized credential that prepares individuals for employment
leading to economic self-sufficiency.''.
SEC. 118. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.
Section 144 (29 U.S.C. 2884) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) not less than age 16 and not more than age 24 on the
date of enrollment;'';
(2) in paragraph (3)(B), by inserting ``secondary'' before
``school''; and
(3) in paragraph (3)(E), by striking ``vocational'' and
inserting ``career and technical education and''.
SEC. 119. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT OF
ENROLLEES.
Section 145 (29 U.S.C. 2885) is amended--
(1) in subsection (a)--
(A) in paragraph (2)(C)(i) by striking ``vocational''
and inserting ``career and technical education and
training''; and
(B) in paragraph (3)--
(i) by striking ``To the extent practicable,
the'' and inserting ``The'';
(ii) in subparagraph (A)--
(I) by striking ``applicable''; and
(II) by inserting ``and'' after the
semicolon;
(iii) by striking subparagraphs (B) and (C);
and
(iv) by adding at the end the following:
``(B) organizations that have a demonstrated record
of effectiveness in placing at-risk youth into
employment.'';
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (B), by inserting ``and
agrees to such rules'' after ``failure to
observe the rules''; and
(ii) by amending subparagraph (C) to read as
follows:
``(C) the individual has passed a background check
conducted in accordance with procedures established by
the Secretary, which shall include--
``(i) a search of the State criminal registry
or repository in the State where the individual
resides and each State where the individual
previously resided;
``(ii) a search of State-based child abuse
and neglect registries and databases in the
State where the individual resides and each
State where the individual previously resided;
``(iii) a search of the National Crime
Information Center;
``(iv) a Federal Bureau of Investigation
fingerprint check using the Integrated
Automated Fingerprint Identification System;
and
``(v) a search of the National Sex Offender
Registry established under the Adam Walsh Child
Protection and Safety Act of 2006 (42 U.S.C.
16901 et seq.).''; and
(B) by adding at the end the following new paragraph:
``(3) Individuals convicted of a crime.--An individual shall
be ineligible for enrollment if the individual--
``(A) makes a false statement in connection with the
criminal background check described in paragraph
(1)(C);
``(B) is registered or is required to be registered
on a State sex offender registry or the National Sex
Offender Registry established under the Adam Walsh
Child Protection and Safety Act of 2006 (42 U.S.C.
16901 et seq.); or
``(C) has been convicted of a felony consisting of--
``(i) homicide;
``(ii) child abuse or neglect;
``(iii) a crime against children, including
child pornography;
``(iv) a crime involving rape or sexual
assault; or
``(v) physical assault, battery, or a drug-
related offense, committed within the past 5
years.'';
(3) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``2 years'' and inserting
``year''; and
(ii) by striking ``an assignment'' and
inserting ``a''; and
(B) in paragraph (2)--
(i) in the matter preceding subparagraph (A),
by striking ``, every 2 years,'';
(ii) in subparagraph (B), by striking ``and''
at the end; and
(iii) in subparagraph (C)--
(I) by inserting ``the education and
training'' after ``including''; and
(II) by striking the period at the
end and inserting ``; and''; and
(iv) by adding at the end the following:
``(D) the performance of the Job Corps center
relating to the indicators described in paragraphs (1)
and (2) in section 159(c), and whether any actions have
been taken with respect to such center pursuant to
section 159(f).''; and
(4) in subsection (d)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A),
by striking ``is closest to the home of the
enrollee, except that the'' and inserting
``offers the type of career and technical
education and training selected by the
individual and, among the centers that offer
such education and training, is closest to the
home of the individual. The'';
(ii) by striking subparagraph (A); and
(iii) by redesignating subparagraphs (B) and
(C) as subparagraphs (A) and (B), respectively;
and
(B) in paragraph (2), by inserting ``that offers the
career and technical education and training desired
by'' after ``home of the enrollee''.
SEC. 120. JOB CORPS CENTERS.
Section 147 (29 U.S.C. 2887) is amended--
(1) in subsection (a)--
(A) in paragraph (1)(A), by striking ``vocational''
both places it appears and inserting ``career and
technical''; and
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) by striking ``subsections (c) and
(d) of section 303 of the Federal
Property and Administrative Services
Act of 1949 (41 U.S.C. 253)'' and
inserting ``subsections (a) and (b) of
section 3304 of title 41, United States
Code''; and
(II) by striking ``industry council''
and inserting ``workforce council'';
(ii) in subparagraph (B)(i)--
(I) by amending subclause (II) to
read as follows:
``(II) the ability of the entity to
offer career and technical education
and training that the workforce council
proposes under section 154(c);'';
(II) in subclause (III), by striking
``is familiar with the surrounding
communities, applicable'' and inserting
``demonstrates relationships with the
surrounding communities, employers,
workforce boards,'' and by striking
``and'' at the end;
(III) by amending subclause (IV) to
read as follows:
``(IV) the performance of the entity,
if any, relating to operating or
providing activities described in this
subtitle to a Job Corps center,
including the entity's demonstrated
effectiveness in assisting individuals
in achieving the primary and secondary
indicators of performance described in
paragraphs (1) and (2) of section
159(c); and''; and
(IV) by adding at the end the
following new subclause:
``(V) the ability of the entity to
demonstrate a record of successfully
assisting at-risk youth to connect to
the workforce, including by providing
them with intensive academic, and
career and technical education and
training.''; and
(iii) in subparagraph (B)(ii), by striking
``, as appropriate'';
(2) in subsection (b), by striking ``In any year, no more
than 20 percent of the individuals enrolled in the Job Corps
may be nonresidential participants in the Job Corps.'';
(3) by amending subsection (c) to read as follows:
``(c) Civilian Conservation Centers.--
``(1) In general.--The Job Corps centers may include Civilian
Conservation Centers, operated under an agreement between the
Secretary of Labor and the Secretary of Agriculture, that are
located primarily in rural areas. Such centers shall adhere to
all the provisions of this subtitle, and shall provide, in
addition to education, career and technical education and
training, and workforce preparation skills training described
in section 148, programs of work experience to conserve,
develop, or manage public natural resources or public
recreational areas or to develop community projects in the
public interest.
``(2) Selection process.--The Secretary shall select an
entity that submits an application under subsection (d) to
operate a Civilian Conservation Center on a competitive basis,
as provided in subsection (a).''; and
(4) by striking subsection (d) and inserting the following:
``(d) Application.--To be eligible to operate a Job Corps center
under this subtitle, an entity shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may require, including--
``(1) a description of the program activities that will be
offered at the center, including how the career and technical
education and training reflect State and local employment
opportunities, including in in-demand industries;
``(2) a description of the counseling, placement, and support
activities that will be offered at the center, including a
description of the strategies and procedures the entity will
use to place graduates into unsubsidized employment upon
completion of the program;
``(3) a description of the demonstrated record of
effectiveness that the entity has in placing at-risk youth into
employment, including past performance of operating a Job Corps
center under this subtitle;
``(4) a description of the relationships that the entity has
developed with State and local workforce boards, employers,
State and local educational agencies, and the surrounding
communities in an effort to promote a comprehensive statewide
workforce investment system;
``(5) a description of the strong fiscal controls the entity
has in place to ensure proper accounting of Federal funds, and
a description of how the entity will meet the requirements of
section 159(a);
``(6) a description of the strategies and policies the entity
will utilize to reduce participant costs;
``(7) a description of the steps taken to control costs in
accordance with section 159(a)(3);
``(8) a detailed budget of the activities that will be
supported using funds under this subtitle;
``(9) a detailed budget of the activities that will be
supported using funds from non-Federal resources;
``(10) an assurance the entity will comply with the
administrative cost limitation included in section 151(c);
``(11) an assurance the entity is licensed to operate in the
State in which the center is located; and
``(12) an assurance the entity will comply with and meet
basic health and safety codes, including those measures
described in section 152(b).
``(e) Length of Agreement.--The agreement described in subsection
(a)(1)(A) shall be for not longer than a 2-year period. The Secretary
may renew the agreement for 3 one-year periods if the entity meets the
requirements of subsection (f).
``(f) Renewal.--
``(1) In general.--Subject to paragraph (2), the Secretary
may renew the terms of an agreement described in subsection
(a)(1)(A) for an entity to operate a Job Corps center if the
center meets or exceeds each of the indicators of performance
described in section 159(c)(1).
``(2) Recompetition.--
``(A) In general.--Notwithstanding paragraph (1), the
Secretary shall not renew the terms of the agreement
for an entity to operate a Job Corps center if such
center is ranked in the bottom quintile of centers
described in section 159(f)(2) for any program year.
Such entity may submit a new application under
subsection (d) only if such center has shown
significant improvement on the indicators of
performance described in section 159(c)(1) over the
last program year.
``(B) Violations.--The Secretary shall not select an
entity to operate a Job Corps center if such entity or
such center has been found to have a systemic or
substantial material failure that involves--
``(i) a threat to the health, safety, or
civil rights of program participants or staff;
``(ii) the misuse of funds received under
this subtitle;
``(iii) loss of legal status or financial
viability, loss of permits, debarment from
receiving Federal grants or contracts, or the
improper use of Federal funds;
``(iv) failure to meet any other Federal or
State requirement that the entity has shown an
unwillingness or inability to correct, after
notice from the Secretary, within the period
specified; or
``(v) an unresolved area of noncompliance.
``(g) Current Grantees.--Not later than 60 days after the date of
enactment of the SKILLS Act and notwithstanding any previous grant
award or renewals of such award under this subtitle, the Secretary
shall require all entities operating a Job Corps center under this
subtitle to submit an application under subsection (d) to carry out the
requirements of this section.''.
SEC. 121. PROGRAM ACTIVITIES.
Section 148 (29 U.S.C. 2888) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Activities Provided Through Job Corps Centers.--
``(1) In general.--Each Job Corps center shall provide
enrollees with an intensive, well-organized, and supervised
program of education, career, and technical education and
training, work experience, recreational activities, physical
rehabilitation and development, and counseling. Each Job Corps
center shall provide enrollees assigned to the center with
access to work-ready services described in section 134(c)(2).
``(2) Relationship to opportunities.--
``(A) In general.--The activities provided under this
subsection shall be targeted to helping enrollees, on
completion of their enrollment--
``(i) secure and maintain meaningful
unsubsidized employment;
``(ii) complete secondary education and
obtain a regular secondary school diploma;
``(iii) enroll in and complete postsecondary
education or training programs, including
obtaining recognized postsecondary credentials,
industry-recognized credentials, and registered
apprenticeships; or
``(iv) satisfy Armed Forces requirements.
``(B) Link to employment opportunities.--The career
and technical education and training provided shall be
linked to the employment opportunities in in-demand
industries in the State in which the Job Corps center
is located.''; and
(2) in subsection (b)--
(A) in the subsection heading, by striking
``Education and Vocational'' and inserting ``Academic
and Career and Technical Education and'';
(B) by striking ``may'' after ``The Secretary'' and
inserting ``shall''; and
(C) by striking ``vocational'' each place it appears
and inserting ``career and technical''; and
(3) by amending paragraph (3) of subsection (c) to read as
follows:
``(3) Demonstration.--Each year, any operator seeking to
enroll additional enrollees in an advanced career training
program shall demonstrate, before the operator may carry out
such additional enrollment, that--
``(A) participants in such program have achieved a
satisfactory rate of completion and placement in
training-related jobs; and
``(B) such operator has met or exceeded the
indicators of performance described in paragraphs (1)
and (2) of section 159(c) for the previous year.''.
SEC. 122. COUNSELING AND JOB PLACEMENT.
Section 149 (29 U.S.C. 2889) is amended--
(1) in subsection (a), by striking ``vocational'' and
inserting ``career and technical education and'';
(2) in subsection (b), by striking ``make every effort to
arrange to''; and
(3) by striking subsection (d).
SEC. 123. SUPPORT.
Subsection (b) of section 150 (29 U.S.C. 2890) is amended to read as
follows:
``(b) Transition Allowances and Support for Graduates.--The Secretary
shall arrange for a transition allowance to be paid to graduates. The
transition allowance shall be incentive-based to reflect a graduate's
completion of academic, career and technical education or training, and
attainment of a recognized postsecondary credential, including an
industry-recognized credential.''.
SEC. 124. OPERATIONS.
Section 151 (29 U.S.C. 2891) is amended--
(1) in the header, by striking ``operating plan.'' and
inserting ``operations.'';
(2) in subsection (a), by striking ``In General.--'' and
inserting ``Operating Plan.--'';
(3) by striking subsection (b) and redesignating subsection
(c) as subsection (b);
(4) by amending subsection (b) (as so redesignated)--
(A) in the heading by inserting ``of Operating Plan''
after ``Availability''; and
(B) by striking ``subsections (a) and (b)'' and
inserting ``subsection (a)''; and
(5) by adding at the end the following new subsection:
``(c) Administrative Costs.--Not more than 10 percent of the funds
allotted under section 147 to an entity selected to operate a Job Corps
center may be used by the entity for administrative costs under this
subtitle.''.
SEC. 125. COMMUNITY PARTICIPATION.
Section 153 (29 U.S.C. 2893) is amended to read as follows:
``SEC. 153. COMMUNITY PARTICIPATION.
``The director of each Job Corps center shall encourage and cooperate
in activities to establish a mutually beneficial relationship between
Job Corps centers in the State and nearby communities. Such activities
may include the use of any local workforce development boards
established under section 117 to provide a mechanism for joint
discussion of common problems and for planning programs of mutual
interest.''.
SEC. 126. WORKFORCE COUNCILS.
Section 154 (29 U.S.C. 2894) is amended to read as follows:
``SEC. 154. WORKFORCE COUNCILS.
``(a) In General.--Each Job Corps center shall have a workforce
council appointed by the Governor of the State in which the Job Corps
center is located.
``(b) Workforce Council Composition.--
``(1) In general.--A workforce council shall be comprised
of--
``(A) business members of the State board described
in section 111(b)(1)(B)(i);
``(B) business members of the local boards described
in section 117(b)(2)(A) located in the State;
``(C) a representative of the State board described
in section 111(f); and
``(D) such other representatives and State agency
officials as the Governor may designate.
``(2) Majority.--A \2/3\ majority of the members of the
workforce council shall be representatives described in
paragraph (1)(A).
``(c) Responsibilities.--The responsibilities of the workforce
council shall be--
``(1) to review all the relevant labor market information,
including related information in the State plan described in
section 112, to--
``(A) determine the in-demand industries in the State
in which enrollees intend to seek employment after
graduation;
``(B) determine the skills and education that are
necessary to obtain the employment opportunities
described in subparagraph (A); and
``(C) determine the type or types of career and
technical education and training that will be
implemented at the center to enable the enrollees to
obtain the employment opportunities; and
``(2) to meet at least once a year to reevaluate the labor
market information, and other relevant information, to
determine any necessary changes in the career and technical
education and training provided at the center.''.
SEC. 127. TECHNICAL ASSISTANCE.
Section 156 (29 U.S.C. 2896) is amended to read as follows:
``SEC. 156. TECHNICAL ASSISTANCE TO CENTERS.
``(a) In General.--From the funds reserved under section 132(a)(3),
the Secretary shall provide, directly or through grants, contracts, or
other agreements or arrangements as the Secretary considers
appropriate, technical assistance and training for the Job Corps
program for the purposes of improving program quality.
``(b) Activities.--In providing training and technical assistance and
for allocating resources for such assistance, the Secretary shall--
``(1) assist entities, including those entities not currently
operating a Job Corps center, in developing the application
described in section 147(d);
``(2) assist Job Corps centers and programs in correcting
deficiencies and violations under this subtitle;
``(3) assist Job Corps centers and programs in meeting or
exceeding the indicators of performance described in paragraph
(1) and (2) of section 159(c); and
``(4) assist Job Corps centers and programs in the
development of sound management practices, including financial
management procedures.''.
SEC. 128. SPECIAL PROVISIONS.
Section 158(c)(1) (29 U.S.C. 2989(c)(1)) is amended by striking
``title II of the Federal Property and Administrative Services Act of
1949 (40 U.S.C. 481 et seq.)'' and inserting ``chapter of 5 title 40,
United States Code,''.
SEC. 129. PERFORMANCE ACCOUNTABILITY MANAGEMENT.
Section 159 (29 U.S.C. 2899) is amended--
(1) in the section heading, by striking ``management
information'' and inserting ``performance accountability and
management'';
(2) in subsection (a)(3), by inserting before the period at
the end the following: ``, or operating costs for such centers
result in a budgetary shortfall'';
(3) by striking subsections (c) through (g); and
(4) by inserting after subsection (b) the following:
``(c) Indicators of Performance.--
``(1) Primary indicators.--The annual primary indicators of
performance for Job Corps centers shall include--
``(A) the percentage and number of enrollees who
graduate from the Job Corps center;
``(B) the percentage and number of graduates who
entered unsubsidized employment related to the career
and technical education and training received through
the Job Corps center, except that such calculation
shall not include enrollment in education, the military
or volunteer service;
``(C) the percentage and number of graduates who
obtained a recognized postsecondary credential,
including an industry-recognized credential or a
registered apprenticeship; and
``(D) the cost per successful performance outcome,
which is calculated by comparing the number of
graduates who were placed in unsubsidized employment or
obtained a recognized credential, including an
industry-recognized credential, to total program costs,
including all operations, construction, and
administration costs at each Job Corp center.
``(2) Secondary indicators.--The annual secondary indicators
of performance for Job Corps centers shall include--
``(A) the percentage and number of graduates who
entered unsubsidized employment not related to the
career and technical education and training received
through the Job Corps center;
``(B) the percentage and number of graduates who
entered into postsecondary education;
``(C) the percentage and number of graduates who
entered into the military;
``(D) the average wage of graduates who are in
unsubsidized employment--
``(i) on the first day of employment; and
``(ii) 6 months after the first day;
``(E) the number and percentage of graduates who
entered unsubsidized employment and were retained in
the unsubsidized employment--
``(i) 6 months after the first day of
employment; and
``(ii) 12 months after the first day of
employment;
``(F) the percentage and number of enrollees compared
to the percentage and number of enrollees the Secretary
has established targets in section 145(c)(1);
``(G) the cost per training slot, which is calculated
by comparing the program's maximum number of students
that can be enrolled in a Job Corps center at any given
time during the program year to the number of enrollees
in the same program year; and
``(H) the number and percentage of former enrollees,
including the number dismissed under the zero tolerance
policy described in section 152(b).
``(3) Indicators of performance for recruiters.--The annual
indicators of performance for recruiters shall include the
measurements described in subparagraph (A) of paragraph (1) and
subparagraphs (F), (G), and (H) of paragraph (2).
``(4) Indicators of performance of career transition service
providers.--The annual indicators of performance of career
transition service providers shall include the measurements
described in subparagraphs (B) and (C) of paragraph (1) and
subparagraphs, (B), (C), (D), and (E) of paragraph (2).
``(d) Additional Information.--The Secretary shall collect, and
submit in the report described in subsection (f), information on the
performance of each Job Corps center, and the Job Corps program,
regarding--
``(1) the number and percentage of former enrollees who
obtained a regular secondary school diploma;
``(2) the number and percentage of former enrollees who
entered unsubsidized employment;
``(3) the number and percentage of former enrollees who
obtained a recognized postsecondary credential, including an
industry-recognized credential;
``(4) the number and percentage of former enrollees who
entered into military service; and
``(5) any additional information required by the Secretary.
``(e) Methods.--The Secretary shall collect the information described
in subsections (c) and (d), using methods described in section
136(i)(2) and consistent with State law, by entering into agreements
with the States to access such data for Job Corps enrollees, former
enrollees, and graduates.
``(f) Transparency and Accountability.--
``(1) Report.--The Secretary shall collect and annually
submit to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Health,
Education. Labor and Pensions of the Senate, as well as make
available to the public by electronic means, a report
containing--
``(A) information on the performance of each Job
Corps center, and the Job Corps program, on the
performance indicators described in paragraphs (1) and
(2) of subsection (c);
``(B) a comparison of each Job Corps center, by rank,
on the performance indicators described in paragraphs
(1) and (2) of subsection (c);
``(C) a comparison of each Job Corps center, by rank,
on the average performance of all primary indicators
described in paragraph (1) of subsection (c);
``(D) information on the performance of the service
providers described in paragraphs (3) and (4) of
subsection (c) on the performance indicators
established under such paragraphs; and
``(E) a comparison of each service provider, by rank,
on the performance of all service providers described
in paragraphs (3) and (4) of subsection (c) on the
performance indicators established under such
paragraphs.
``(2) Assessment.--The Secretary shall conduct an annual
assessment of the performance of each Job Corps center which
shall include information on the Job Corps centers that--
``(A) are ranked in the bottom 10 percent on the
performance indicator described in paragraph (1)(C); or
``(B) have failed a safety and health code review
described in subsection (g).
``(3) Performance improvement.--With respect to a Job Corps
center that is identified under paragraph (2) or reports less
than 50 percent on the performance indicators described in
subparagraphs (A), (B), or (C) of subsection (c)(1), the
Secretary shall develop and implement a 1 year performance
improvement plan. Such a plan shall require action including--
``(A) providing technical assistance to the center;
``(B) changing the management staff of the center;
``(C) replacing the operator of the center;
``(D) reducing the capacity of the center; or
``(E) closing the center.
``(4) Closure of job corps centers.--Job Corps centers that
have been identified under paragraph (2) for more than 4
consecutive years shall be closed. The Secretary shall ensure--
``(A) that the proposed decision to close the center
is announced in advance to the general public through
publication in the Federal Register and other
appropriate means; and
``(B) the establishment of a reasonable comment
period, not to exceed 30 days, for interested
individuals to submit written comments to the
Secretary.
``(g) Participant Health and Safety.--The Secretary shall enter into
an agreement with the General Services Administration or the
appropriate State agency responsible for inspecting public buildings
and safeguarding the health of disadvantaged students, to conduct an
in-person review of the physical condition and health-related
activities of each Job Corps center annually. Such review shall include
a passing rate of occupancy under Federal and State ordinances.''.
Subtitle D--National Programs
SEC. 130. TECHNICAL ASSISTANCE.
Section 170 (29 U.S.C. 2915) is amended--
(1) by striking subsection (b);
(2) by striking:
``(a) General Technical Assistance.--'';
(3) by redesignating paragraphs (1), (2), and (3) as
subsections (a), (b), and (c) respectively, and moving such
subsections 2 ems to the left;
(4) in subsection (a) (as so redesignated)--
(A) by inserting ``the training of staff providing
rapid response services, the training of other staff of
recipients of funds under this title, assistance
regarding accounting and program operation practices
(when such assistance would not be duplicative to
assistance provided by the State), technical assistance
to States that do not meet State performance measures
described in section 136,'' after ``localities,''; and
(B) by striking ``from carrying out activities'' and
all that follows up to the period and inserting ``to
implement the amendments made by the SKILLS Act'';
(5) in subsection (b) (as so redesignated)--
(A) by striking ``paragraph (1)'' and inserting
``subsection (a)'';
(B) by striking ``, or recipient of financial
assistance under any of sections 166 through 169,'';
and
(C) by striking ``or grant recipient'';
(6) in subsection (c) (as so redesignated), by striking
``paragraph (1)'' and inserting ``subsection (a)''; and
(7) by inserting, after subsection (c) (as so redesignated),
the following:
``(d) Best Practices Coordination.--The Secretary shall--
``(1) establish a system through which States may share
information regarding best practices with regard to the
operation of workforce investment activities under this Act;
and
``(2) evaluate and disseminate information regarding best
practices and identify knowledge gaps.''.
SEC. 131. EVALUATIONS.
Section 172 (29 U.S.C. 2917) is amended--
(1) in subsection (a), by striking ``the Secretary shall
provide for the continuing evaluation of the programs and
activities, including those programs and activities carried out
under section 171'' and inserting ``the Secretary, through
grants, contracts, or cooperative agreements, shall conduct, at
least once every 5 years, an independent evaluation of the
programs and activities funded under this Act'';
(2) in subsection (a)(4) is amended to read as follows:
``(4) the impact of receiving services and not receiving
services under such programs and activities on the community,
businesses, and individuals;'';
(3) in subsection (c) is amended to read as follows:
``(c) Techniques.--Evaluations conducted under this section shall
utilize appropriate and rigorous methodology and research designs,
including the use of control groups chosen by scientific random
assignment methodologies, quasi-experimental methods, impact analysis
and the use of administrative data. The Secretary shall conduct an
impact analysis, as described in subsection (a)(4), of the formula
grant program under subtitle B not later than 2015, and thereafter
shall conduct such an analysis not less than once every four years.'';
(4) in subsection (e) is amended by striking ``the Committee
on Labor and Human Resources of the Senate'' and inserting
``the Committee on Health, Education, Labor, and Pensions of
the Senate''; and
(5) by adding at the end, the following:
``(g) Public Availability.--The results of the evaluations conducted
under this section shall be made publicly available, including by
posting such results on the Department's website.''.
Subtitle E--Administration
SEC. 132. REQUIREMENTS AND RESTRICTIONS.
Section 181 (29 U.S.C. 2931) is amended--
(1) in subsection (b)(6), by striking ``, including
representatives of businesses and of labor organizations'';
(2) in subsection (c)(2)(A), in the matter preceding clause
(i), by striking ``shall'' and inserting ``may'';
(3) in subsection (e)--
(A) by striking ``training for'' and inserting ``the
entry into employment, retention in employment, or
increases in earnings of''; and
(B) by striking ``subtitle B'' and inserting ``this
Act'';
(4) in subsection (f)(4), by striking ``134(a)(3)(B)'' and
inserting ``134(a)(6)''; and
(5) by adding at the end the following:
``(g) Salary and Bonus Limitation.--No funds provided under this
title shall be used by a recipient or subrecipient of such funds to pay
the salary and bonuses of an individual, either as direct costs or
indirect costs, at a rate in excess of Level II of the Federal
Executive Pay Schedule (5 U.S.C. 5313). This limitation shall not apply
to vendors providing goods and services as defined in OMB Circular A-
133. Where States are recipients of such funds, States may establish a
lower limit for salaries and bonuses of those receiving salaries and
bonuses from subrecipients of such funds, taking into account factors
including the relative cost-of-living in the State, the compensation
levels for comparable State or local government employees, and the size
of the organizations that administer the programs.
``(h) General Authority.--
``(1) In general.--The Employment and Training Administration
of the U.S. Department of Labor (hereinafter in this Act
referred to as the `Administration') shall administer all
programs authorized under title I and III of this Act. The
Administration shall be headed by an Assistant Secretary
appointed by the President by and with the advice and consent
of the Senate. Except for titles II and IV, the Administration
shall be the principal agency, and the Assistant Secretary
shall be the principal officer, of such Department for carrying
out this Act.
``(2) Qualifications.--The Assistant Secretary shall be an
individual with substantial experience in workforce development
and in workforce development management. The Assistant
Secretary shall also, to the maximum extent possible, possess
knowledge and have worked in or with the State or local
workforce investment system or have been a member of the
business community. In the performance of the functions of the
office, the Assistant Secretary shall be directly responsible
to the Secretary or the Under Secretary as designed by the
Secretary. The functions of the Assistant Secretary shall not
be delegated to any officer not directly responsible, both with
respect to program operation and administration, to the
Assistant Secretary. Any reference in this Act to duties to be
carried out by the Assistant Secretary shall be considered to
be a reference to duties to be carried out by the Secretary
acting through the Assistant Secretary.''.
SEC. 133. PROMPT ALLOCATION OF FUNDS.
Section 182 (29 U.S.C. 2932) is amended--
(1) in subsection (c), by striking ``127 or''; and
(2) in subsection (e)--
(A) by striking ``sections 128 and 133'' and
inserting ``section 133''; and
(B) by striking ``127 or''.
SEC. 134. FISCAL CONTROLS; SANCTIONS.
Section 184(a)(2) (29 U.S.C. 2934(a)(2)) is amended--
(1) by striking ``(A)'' and all that follows through ``Each''
and inserting ``Each''; and
(2) by striking subparagraph (B).
SEC. 135. REPORTS TO CONGRESS.
Section 185 (29 U.S.C. 2935) is amended--
(1) in subsection (c)--
(A) in paragraph (2), by striking ``and'' after the
semicolon;
(B) in paragraph (3), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(4) shall have the option to submit or disseminate
electronically any reports, records, plans, or any other data
that are required to be collected or disseminated under this
title.''; and
(2) in subsection (e)(2), by inserting ``and the Secretary
shall submit to the Committee on Education and the Workforce of
the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate,'' after
``Secretary,''.
SEC. 136. ADMINISTRATIVE PROVISIONS.
Section 189 (29 U.S.C. 2939) is amended--
(1) in subsection (g)--
(A) by amending paragraph (1) to read as follows:
``(1) In general.--Appropriations for any fiscal year for
programs and activities carried out under this title shall be
available for obligation only on the basis of a program year.
The program year shall begin on October 1 in the fiscal year
for which the appropriation is made.''; and
(B) in paragraph (2)--
(i) by striking ``each State'' and inserting
``each recipient''; and
(ii) by striking ``171 or'';
(2) in subsection (i)--
(A) by striking paragraphs (2) and (3);
(B) by redesignating paragraph (4) as paragraph (2);
(C) by amending paragraph (2)(A), as so
redesignated--
(i) by striking ``requirements of
subparagraph (B)'' and all that follows through
``any of the statutory or regulatory
requirements of subtitle B'' and inserting
``requirements of subparagraph (B) or (D), any
of the statutory or regulatory requirements of
subtitle B'';
(ii) by striking clause (ii); and
(iii) in clause (i), by striking ``; and''
and inserting a period at the end; and
(D) by adding at the end the following:
``(D) Expedited process for extending approved
waivers to additional states.--In lieu of the
requirements of subparagraphs (B) and (C), the
Secretary may establish an expedited procedure for the
purpose of extending to additional States the waiver of
statutory or regulatory requirements that have been
approved for a State pursuant to a request under
subparagraph (B). Such procedure shall ensure that the
extension of such waivers to additional States are
accompanied by appropriate conditions relating the
implementation of such waivers.
``(E) External conditions.--The Secretary shall not
require or impose new or additional requirements, which
are not specified under this Act, on a State in
exchange for providing a waiver to the State or a local
area in the State under this paragraph.''.
SEC. 137. STATE LEGISLATIVE AUTHORITY.
Section 191(a) (29 U.S.C. 2941(a)) is amended--
(1) by striking ``consistent with the provisions of this
title'' and inserting ``consistent with State law and the
provisions of this title''; and
(2) by striking ``consistent with the terms and conditions
required under this title'' and inserting ``consistent with
State law and the terms and conditions required under this
title''.
SEC. 138. GENERAL PROGRAM REQUIREMENTS.
Section 195 (29 U.S.C. 2945) is amended--
(1) in paragraph (7), by inserting at the end the following:
``(D) Funds received by a public or private nonprofit entity
that are not described in paragraph (B), such as funds
privately raised from philanthropic foundations, businesses, or
other private entities, shall not be considered to be income
under this title and shall not be subject to the requirements
of this section.''; and
(2) by adding at the end the following new paragraphs:
``(14) Funds provided under this title shall not be used to
establish or operate stand-alone fee-for-service enterprises
that compete with private sector employment agencies within the
meaning of section 701(c) of the Civil Rights Act of 1964 (42
U.S.C. 2000e(c)), except that for purposes of this paragraph,
such an enterprise does not include one-stop centers.
``(15) Any report required to be submitted to Congress, or to
a Committee of Congress, under this title shall be submitted to
both the chairmen and ranking minority members of the Committee
on Education and the Workforce of the House of Representatives
and the Committee on Health, Education, Labor, and Pensions of
the Senate.''.
SEC. 139. FEDERAL AGENCY STAFF.
Subtitle E of title I (29 U.S.C. 2931 et seq.) is amended by adding
at the end the following new sections:
``SEC. 196. FEDERAL AGENCY STAFF.
``The Director of the Office of Management and Budget shall--
``(1) not later than 60 days after the date of the enactment
of the SKILLS Act--
``(A) identify the number of Federal government
employees who work on or administer each of the
programs authorized under this Act or repealed under
section 401 of the SKILLS Act, as such programs were in
effect on the day before such date of enactment; and
``(B) identify the number of full-time equivalent
employees who work on or administer each of the
programs authorized under this Act or repealed under
section 401 of the SKILLS Act, as such programs were in
effect on the day before such date of enactment, and
that have been eliminated or consolidated on or after
such date of enactment;
``(2) not later than 90 after such date of enactment, publish
the information described in paragraph (1) on the Office of
Management and Budget website;
``(3) not later than 1 year after such date of enactment--
``(A) reduce the workforce of the Federal Government
by the number of full-time equivalent employees
identified under paragraph (1)(B); and
``(B) submit to Congress a report on how the Director
carried out the requirements of subparagraph (A).
``SEC. 197. RESTRICTIONS ON LOBBYING AND POLITICAL ACTIVITIES.
``(a) Lobbying Restrictions.--
``(1) Publicity restrictions.--
``(A) In general.--Subject to subparagraph (B), no
funds provided under this Act shall be used or proposed
for use, for--
``(i) publicity or propaganda purposes; or
``(ii) the preparation, distribution, or use
of any kit, pamphlet, booklet, publication,
electronic communication, radio, television, or
video presentation designed to support or
defeat the enactment of legislation before the
Congress or any State or local legislature or
legislative body.
``(B) Exception.--Subparagraph (A) shall not apply
to--
``(i) normal and recognized executive-
legislative relationships;
``(ii) the preparation, distribution, or use
of the materials described in subparagraph
(A)(ii) in presentation to the Congress or any
State or local legislature (except that this
subparagraph does not apply with respect to
such preparation, distribution, or use in
presentation to the executive branch of any
State or local government); or
``(iii) if such materials are designed to
support or defeat any proposed or pending
regulation, administrative action, or order
issued by the executive branch of any State or
local government.
``(2) Salary payment restriction.--No funds provided under
this Act shall be used, or proposed for use, to pay the salary
or expenses of any grant or contract recipient, or agent acting
for such recipient, related to any activity designed to
influence the enactment of legislation, appropriations,
regulations, administrative action, or executive order proposed
or pending before the Congress or any State government, or
State legislature or local legislature or legislative body,
other than for normal and recognized executive-legislative
relationships or participation by an agency or officer of a
State, local, or tribal government in policymaking and
administrative processes within the executive branch of that
government.
``(b) Political Restrictions.--
``(1) In general.--No funds received by a participant of a
program or an activity under this Act shall be used for--
``(A) any partisan or nonpartisan political activity
or any other political activity associated with a
candidate, or contending faction or group, in an
election for public or party office; or
``(B) any activity to provide voters with
transportation to the polls or similar assistance in
connection with any such election.
``(2) Definition.--For the purposes of this subsection, the
term `participant' includes any State, local area, or
governmental, nonprofit, or for-profit entity receiving funds
under this Act.
``(3) Restriction on voter registration activities.--No funds
under this Act shall be used to conduct voter registration
activities.''.
Subtitle F--State Unified Plan
SEC. 140. STATE UNIFIED PLAN.
Section 501 (20 U.S.C. 9271) is amended--
(1) by amending subsection (a) to read as follows:
``(a) General Authority.--The Secretary shall receive and approve
State unified plans developed and submitted under this section.'';
(2) by amending subsection (b) to read as follows:
``(b) State Unified Plan.--
``(1) In general.--A State may develop and submit to the
Secretary a State unified plan for 2 or more of the activities
or programs set forth in paragraph (2). The State unified plan
shall cover one or more of the activities set forth in
subparagraphs (A) and (B) of paragraph (2) and may cover one or
more of the activities set forth in subparagraphs (C) through
(N) of paragraph (2). For purposes of this paragraph, the
activities and programs described in subparagraphs (A) and (B)
of paragraph (2) shall not be considered to be 2 or more
activities or programs for purposes of the unified plan. Such
activities or programs shall be considered to be 1 activity or
program.
``(2) Activities and programs.--The activities and programs
referred to in paragraph (1) are as follows:
``(A) Programs and activities authorized under title
I.
``(B) Programs and activities authorized under title
II.
``(C) Programs authorized under the Rehabilitation
Act of 1973.
``(D) Secondary career education programs authorized
under the Carl D. Perkins Career and Applied Technology
Education Act.
``(E) Postsecondary career education programs
authorized under the Carl D. Perkins Career and Applied
Technology Education Act.
``(F) Programs and activities authorized under title
II of the Trade Act of 1974.
``(G) National Apprenticeship Act of 1937.
``(H) Programs authorized under the Community
Services Block Grant Act.
``(I) Programs authorized under the part A of title
IV of the Social Security Act.
``(J) Programs authorized under State unemployment
compensation laws (in accordance with applicable
Federal law).
``(K) Work programs authorized under section 6(o) of
the Food Stamp Act of 1977.
``(L) Programs and activities authorized title I of
the Housing and Community Development Act of 1974.
``(M) Programs and activities authorized under the
Public Workers and Economic Development Act of 1965.
``(N) Activities as defined under chapter 41 of title
38, United States Code.'';
(3) by amending subsection (d) to read as follows:
``(d) Approval.--
``(1) Jurisdiction.--In approving a State unified plan under
this section, the Secretary shall--
``(A) submit the portion of the State unified plan
covering an activity or program described in subsection
(b)(2) to the head of the Federal agency who exercises
administrative authority over the activity or program
for the approval of such portion by such Federal agency
head; or
``(B) coordinate approval of the portion of the State
unified plan covering an activity or program described
in subsection (b)(2) with the head of the Federal
agency who exercises administrative authority over the
activity or program.
``(2) Timeline.--A State unified plan shall be considered to
be approved by the Secretary at the end of the 90-day period
beginning on the day the Secretary receives the plan, unless
the Secretary makes a written determination, during the 90-day
period, that details how the plan is not consistent with the
requirements of the Federal statute authorizing an activity or
program described in subsection (b)(2) and covered under the
plan or how the plan is not consistent with the requirements of
subsection (c)(3).''; and
(4) by adding at the end the following:
``(e) Additional Employment and Training Funds.--
``(1) Purpose.--It is the purpose of this subsection to
reduce inefficiencies in the administration of federally-funded
State and local employment and training programs.
``(2) In general.--In developing a State unified plan for the
activities or programs described in subsection (b)(2) and
subject to paragraph (4) and the State plan approval process
under subsection (d), a State may propose to consolidate the
amount, in whole or part, provided for the activities or
programs dedicated to employment and training into the
Workforce Investment Fund under section 132(b) to improve the
administration of State and local employment and training
programs.
``(3) Requirements.--A State with a State unified plan
approved under subsection (d) for purposes of consolidation
under paragraph (2) and that is carrying out such consolidation
shall--
``(A) continue to meet the program requirements,
limitations, and prohibitions of any Federal statute
authorizing the activity or program consolidated into
the Workforce Investment Fund;
``(B) meet the intent and purpose of the activity or
program consolidated into the Workforce Investment
Fund; and
``(C) continue to make reservations and allotments
under subsections (a) and (b) of section 133.
``(4) Exceptions.--A State may not consolidate funds under
paragraph (2) that are allocated to the State under--
``(A) the Carl D. Perkins Career and Technical
Education Act of 2006; or
``(B) the Rehabilitation Act of 1973.''.
TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION
SEC. 201. AMENDMENT.
Title II (20 U.S.C. 2901 et seq.) is amended to read as follows:
``TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION
``SEC. 201. SHORT TITLE.
``This title may be cited as the `Adult Education and Family Literacy
Education Act'.
``SEC. 202. PURPOSE.
``It is the purpose of this title to provide instructional
opportunities for adults seeking to improve their literacy skills,
including their basic reading, writing, speaking, and math skills, and
support States and local communities in providing, on a voluntary
basis, adult education and family literacy education programs, in order
to--
``(1) increase the literacy of adults, including the basic
reading, writing, speaking, and math skills, to a level of
proficiency necessary for adults to obtain employment and self-
sufficiency and to successfully advance in the workforce;
``(2) assist adults in the completion of a secondary school
education (or its equivalent) and the transition to a
postsecondary educational institution;
``(3) assist adults who are parents to enable them to support
the educational development of their children and make informed
choices regarding their children's education including, through
instruction in basic reading, writing, speaking, and math
skills; and
``(4) assist adults who are not proficient in English in
improving their reading, writing, speaking, listening,
comprehension, and math skills.
``SEC. 203. DEFINITIONS.
``In this title:
``(1) Adult education and family literacy education
programs.--The term `adult education and family literacy
education programs' means a sequence of academic instruction
and educational services below the postsecondary level that
increase an individual's ability to read, write, and speak
English and perform mathematical computations leading to a
level of proficiency equivalent to at least a secondary school
completion that is provided for individuals--
``(A) who are at least 16 years of age;
``(B) who are not enrolled or required to be enrolled
in secondary school under State law; and
``(C) who--
``(i) lack sufficient mastery of basic
reading, writing, speaking, and math skills to
enable the individuals to function effectively
in society;
``(ii) do not have a secondary school diploma
or its equivalent and have not achieved an
equivalent level of education; or
``(iii) are English learners.
``(2) Eligible agency.--The term `eligible agency'--
``(A) means the primary entity or agency in a State
or an outlying area responsible for administering or
supervising policy for adult education and family
literacy education programs in the State or outlying
area, respectively, consistent with the law of the
State or outlying area, respectively; and
``(B) may be the State educational agency, the State
agency responsible for administering workforce
investment activities, or the State agency responsible
for administering community or technical colleges.
``(3) Eligible provider.--The term `eligible provider' means
an organization of demonstrated effectiveness which is--
``(A) a local educational agency;
``(B) a community-based or faith-based organization;
``(C) a volunteer literacy organization;
``(D) an institution of higher education;
``(E) a public or private educational agency;
``(F) a library;
``(G) a public housing authority;
``(H) an institution that is not described in any of
subparagraphs (A) through (G) and has the ability to
provide adult education, basic skills, and family
literacy education programs to adults and families; or
``(I) a consortium of the agencies, organizations,
institutions, libraries, or authorities described in
any of subparagraphs (A) through (H).
``(4) English language acquisition program.--The term
`English language acquisition program' means a program of
instruction--
``(A) designed to help English learners achieve
competence in reading, writing, speaking, and
comprehension of the English language; and
``(B) that may lead to--
``(i) attainment of a secondary school
diploma or its recognized equivalent;
``(ii) transition to success in postsecondary
education and training; and
``(iii) employment or career advancement.
``(5) Family literacy education program.--The term `family
literacy education program' means an educational program that--
``(A) assists parents and students, on a voluntary
basis, in achieving the purposes of this title as
described in section 202; and
``(B) is of sufficient intensity in terms of hours
and of sufficient quality to make sustainable changes
in a family, is evidence-based, and, for the purpose of
substantially increasing the ability of parents and
children to read, write, and speak English,
integrates--
``(i) interactive literacy activities between
parents and their children;
``(ii) training for parents regarding how to
be the primary teacher for their children and
full partners in the education of their
children;
``(iii) parent literacy training that leads
to economic self-sufficiency; and
``(iv) an age-appropriate education to
prepare children for success in school and life
experiences.
``(6) Governor.--The term `Governor' means the chief
executive officer of a State or outlying area.
``(7) Individual with a disability.--
``(A) In general.--The term `individual with a
disability' means an individual with any disability (as
defined in section 3 of the Americans with Disabilities
Act of 1990).
``(B) Individuals with disabilities.--The term
`individuals with disabilities' means more than one
individual with a disability.
``(8) English learner.--The term `English learner' means an
adult or out-of-school youth who has limited ability in
reading, writing, speaking, or understanding the English
language, and--
``(A) whose native language is a language other than
English; or
``(B) who lives in a family or community environment
where a language other than English is the dominant
language.
``(9) Integrated education and training.--The term
`integrated education and training' means services that provide
adult education and literacy activities contextually and
concurrently with workforce preparation activities and
workforce training for a specific occupation or occupational
cluster. Such services may include offering adult education
services concurrent with postsecondary education and training,
including through co-instruction.
``(10) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101 of the Higher Education Act of 1965.
``(11) Literacy.--The term `literacy' means an individual's
ability to read, write, and speak in English, compute, and
solve problems at a level of proficiency necessary to obtain
employment and to successfully make the transition to
postsecondary education.
``(12) Local educational agency.--The term `local educational
agency' has the meaning given the term in section 9101 of the
Elementary and Secondary Education Act of 1965.
``(13) Outlying area.--The term `outlying area' has the
meaning given the term in section 101 of this Act.
``(14) Postsecondary educational institution.--The term
`postsecondary educational institution' means--
``(A) an institution of higher education that
provides not less than a 2-year program of instruction
that is acceptable for credit toward a bachelor's
degree;
``(B) a tribally controlled community college; or
``(C) a nonprofit educational institution offering
certificate or apprenticeship programs at the
postsecondary level.
``(15) Secretary.--The term `Secretary' means the Secretary
of Education.
``(16) State.--The term `State' means each of the several
States of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico.
``(17) State educational agency.--The term `State educational
agency' has the meaning given the term in section 9101 of the
Elementary and Secondary Education Act of 1965.
``(18) Workplace literacy program.--The term `workplace
literacy program' means an educational program that is offered
in collaboration between eligible providers and employers or
employee organizations for the purpose of improving the
productivity of the workforce through the improvement of
reading, writing, speaking, and math skills.
``SEC. 204. HOME SCHOOLS.
``Nothing in this title shall be construed to affect home schools,
whether or not a home school is treated as a home school or a private
school under State law, or to compel a parent engaged in home schooling
to participate in adult education and family literacy education
activities under this title.
``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this title,
$606,294,933 for fiscal years 2014 and for each of the 6 succeeding
fiscal years.
``Subtitle A--Federal Provisions
``SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES;
ALLOTMENTS.
``(a) Reservation of Funds.--From the sums appropriated under section
205 for a fiscal year, the Secretary shall reserve 2.0 percent to carry
out section 242.
``(b) Grants to Eligible Agencies.--
``(1) In general.--From the sums appropriated under section
205 and not reserved under subsection (a) for a fiscal year,
the Secretary shall award a grant to each eligible agency
having a State plan approved under section 224 in an amount
equal to the sum of the initial allotment under subsection
(c)(1) and the additional allotment under subsection (c)(2) for
the eligible agency for the fiscal year, subject to subsections
(f) and (g).
``(2) Purpose of grants.--The Secretary may award a grant
under paragraph (1) only if the eligible agency involved agrees
to expend the grant in accordance with the provisions of this
title.
``(c) Allotments.--
``(1) Initial allotments.--From the sums appropriated under
section 205 and not reserved under subsection (a) for a fiscal
year, the Secretary shall allot to each eligible agency having
a State plan approved under section 224--
``(A) $100,000, in the case of an eligible agency
serving an outlying area; and
``(B) $250,000, in the case of any other eligible
agency.
``(2) Additional allotments.--From the sums appropriated
under section 205, not reserved under subsection (a), and not
allotted under paragraph (1), for a fiscal year, the Secretary
shall allot to each eligible agency that receives an initial
allotment under paragraph (1) an additional amount that bears
the same relationship to such sums as the number of qualifying
adults in the State or outlying area served by the eligible
agency bears to the number of such adults in all States and
outlying areas.
``(d) Qualifying Adult.--For the purpose of subsection (c)(2), the
term `qualifying adult' means an adult who--
``(1) is at least 16 years of age;
``(2) is beyond the age of compulsory school attendance under
the law of the State or outlying area;
``(3) does not have a secondary school diploma or its
recognized equivalent; and
``(4) is not enrolled in secondary school.
``(e) Special Rule.--
``(1) In general.--From amounts made available under
subsection (c) for the Republic of Palau, the Secretary shall
award grants to Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, or the Republic of Palau to carry out
activities described in this title in accordance with the
provisions of this title as determined by the Secretary.
``(2) Termination of eligibility.--Notwithstanding any other
provision of law, the Republic of Palau shall be eligible to
receive a grant under this title until an agreement for the
extension of United States education assistance under the
Compact of Free Association for the Republic of Palau becomes
effective.
``(f) Hold-Harmless Provisions.--
``(1) In general.--Notwithstanding subsection (c) and subject
to paragraph (2), for--
``(A) fiscal year 2014, no eligible agency shall
receive an allotment under this title that is less than
90 percent of the allotment the eligible agency
received for fiscal year 2012 under this title; and
``(B) fiscal year 2015 and each succeeding fiscal
year, no eligible agency shall receive an allotment
under this title that is less than 90 percent of the
allotment the eligible agency received for the
preceding fiscal year under this title.
``(2) Ratable reduction.--If, for any fiscal year the amount
available for allotment under this title is insufficient to
satisfy the provisions of paragraph (1), the Secretary shall
ratable reduce the payments to all eligible agencies, as
necessary.
``(g) Reallotment.--The portion of any eligible agency's allotment
under this title for a fiscal year that the Secretary determines will
not be required for the period such allotment is available for carrying
out activities under this title, shall be available for reallotment
from time to time, on such dates during such period as the Secretary
shall fix, to other eligible agencies in proportion to the original
allotments to such agencies under this title for such year.
``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
``Programs and activities authorized under this title are subject to
the performance accountability provisions described in paragraph (2)(A)
and (3) of section 136(b) and may, at a State's discretion, include
additional indicators identified in the State plan approved under
section 224.
``Subtitle B--State Provisions
``SEC. 221. STATE ADMINISTRATION.
``Each eligible agency shall be responsible for the following
activities under this title:
``(1) The development, submission, implementation, and
monitoring of the State plan.
``(2) Consultation with other appropriate agencies, groups,
and individuals that are involved in, or interested in, the
development and implementation of activities assisted under
this title.
``(3) Coordination and avoidance of duplication with other
Federal and State education, training, corrections, public
housing, and social service programs.
``SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.
``(a) State Distribution of Funds.--Each eligible agency receiving a
grant under this title for a fiscal year--
``(1) shall use an amount not less than 82.5 percent of the
grant funds to award grants and contracts under section 231 and
to carry out section 225, of which not more than 10 percent of
such amount shall be available to carry out section 225;
``(2) shall use not more than 12.5 percent of the grant funds
to carry out State leadership activities under section 223; and
``(3) shall use not more than 5 percent of the grant funds,
or $65,000, whichever is greater, for the administrative
expenses of the eligible agency.
``(b) Matching Requirement.--
``(1) In general.--In order to receive a grant from the
Secretary under section 211(b), each eligible agency shall
provide, for the costs to be incurred by the eligible agency in
carrying out the adult education and family literacy education
programs for which the grant is awarded, a non-Federal
contribution in an amount that is not less than--
``(A) in the case of an eligible agency serving an
outlying area, 12 percent of the total amount of funds
expended for adult education and family literacy
education programs in the outlying area, except that
the Secretary may decrease the amount of funds required
under this subparagraph for an eligible agency; and
``(B) in the case of an eligible agency serving a
State, 25 percent of the total amount of funds expended
for adult education and family literacy education
programs in the State.
``(2) Non-federal contribution.--An eligible agency's non-
Federal contribution required under paragraph (1) may be
provided in cash or in kind, fairly evaluated, and shall
include only non-Federal funds that are used for adult
education and family literacy education programs in a manner
that is consistent with the purpose of this title.
``SEC. 223. STATE LEADERSHIP ACTIVITIES.
``(a) In General.--Each eligible agency may use funds made available
under section 222(a)(2) for any of the following adult education and
family literacy education programs:
``(1) The establishment or operation of professional
development programs to improve the quality of instruction
provided pursuant to local activities required under section
231(b).
``(2) The provision of technical assistance to eligible
providers of adult education and family literacy education
programs, including for the development and dissemination of
evidence based research instructional practices in reading,
writing, speaking, math, and English language acquisition
programs.
``(3) The provision of assistance to eligible providers in
developing, implementing, and reporting measurable progress in
achieving the objectives of this title.
``(4) The monitoring and evaluation of the quality of, and
the improvement in, adult education and literacy activities.
``(5) The provision of technology assistance, including staff
training, to eligible providers of adult education and family
literacy education programs, including distance education
activities, to enable the eligible providers to improve the
quality of such activities.
``(6) The development and implementation of technology
applications or distance education, including professional
development to support the use of instructional technology.
``(7) Coordination with other public programs, including
programs under title I of this Act, and other welfare-to-work,
workforce development, and job training programs.
``(8) Coordination with existing support services, such as
transportation, child care, and other assistance designed to
increase rates of enrollment in, and successful completion of,
adult education and family literacy education programs, for
adults enrolled in such activities.
``(9) The development and implementation of a system to
assist in the transition from adult basic education to
postsecondary education.
``(10) Activities to promote workplace literacy programs.
``(11) Other activities of statewide significance, including
assisting eligible providers in achieving progress in improving
the skill levels of adults who participate in programs under
this title.
``(12) Integration of literacy, instructional, and
occupational skill training and promotion of linkages with
employees.
``(b) Coordination.--In carrying out this section, eligible agencies
shall coordinate where possible, and avoid duplicating efforts, in
order to maximize the impact of the activities described in subsection
(a).
``(c) State-Imposed Requirements.--Whenever a State or outlying area
implements any rule or policy relating to the administration or
operation of a program authorized under this title that has the effect
of imposing a requirement that is not imposed under Federal law
(including any rule or policy based on a State or outlying area
interpretation of a Federal statute, regulation, or guideline), the
State or outlying area shall identify, to eligible providers, the rule
or policy as being imposed by the State or outlying area.
``SEC. 224. STATE PLAN.
``(a) 3-Year Plans.--
``(1) In general.--Each eligible agency desiring a grant
under this title for any fiscal year shall submit to, or have
on file with, the Secretary a 3-year State plan.
``(2) State unified plan.--The eligible agency may submit the
State plan as part of a State unified plan described in section
501.
``(b) Plan Contents.--The eligible agency shall include in the State
plan or any revisions to the State plan--
``(1) an objective assessment of the needs of individuals in
the State or outlying area for adult education and family
literacy education programs, including individuals most in need
or hardest to serve;
``(2) a description of the adult education and family
literacy education programs that will be carried out with funds
received under this title;
``(3) an assurance that the funds received under this title
will not be expended for any purpose other than for activities
under this title;
``(4) a description of how the eligible agency will annually
evaluate and measure the effectiveness and improvement of the
adult education and family literacy education programs funded
under this title using the indicators of performance described
in section 136, including how the eligible agency will conduct
such annual evaluations and measures for each grant received
under this title;
``(5) a description of how the eligible agency will fund
local activities in accordance with the measurable goals
described in section 231(d);
``(6) an assurance that the eligible agency will expend the
funds under this title only in a manner consistent with fiscal
requirements in section 241;
``(7) a description of the process that will be used for
public participation and comment with respect to the State
plan, which--
``(A) shall include consultation with the State
workforce investment board, the State board responsible
for administering community or technical colleges, the
Governor, the State educational agency, the State board
or agency responsible for administering block grants
for temporary assistance to needy families under title
IV of the Social Security Act, the State council on
disabilities, the State vocational rehabilitation
agency, and other State agencies that promote the
improvement of adult education and family literacy
education programs, and direct providers of such
programs; and
``(B) may include consultation with the State agency
on higher education, institutions responsible for
professional development of adult education and family
literacy education programs instructors,
representatives of business and industry, refugee
assistance programs, and faith-based organizations;
``(8) a description of the eligible agency's strategies for
serving populations that include, at a minimum--
``(A) low-income individuals;
``(B) individuals with disabilities;
``(C) the unemployed;
``(D) the underemployed; and
``(E) individuals with multiple barriers to
educational enhancement, including English learners;
``(9) a description of how the adult education and family
literacy education programs that will be carried out with any
funds received under this title will be integrated with other
adult education, career development, and employment and
training activities in the State or outlying area served by the
eligible agency;
``(10) a description of the steps the eligible agency will
take to ensure direct and equitable access, as required in
section 231(c)(1), including--
``(A) how the State will build the capacity of
community-based and faith-based organizations to
provide adult education and family literacy education
programs; and
``(B) how the State will increase the participation
of business and industry in adult education and family
literacy education programs;
``(11) an assessment of the adequacy of the system of the
State or outlying area to ensure teacher quality and a
description of how the State or outlying area will use funds
received under this subtitle to improve teacher quality,
including evidence-based professional development to improve
instruction; and
``(12) a description of how the eligible agency will consult
with any State agency responsible for postsecondary education
to develop adult education that prepares students to enter
postsecondary education without the need for remediation upon
completion of secondary school equivalency programs.
``(c) Plan Revisions.--When changes in conditions or other factors
require substantial revisions to an approved State plan, the eligible
agency shall submit the revisions of the State plan to the Secretary.
``(d) Consultation.--The eligible agency shall--
``(1) submit the State plan, and any revisions to the State
plan, to the Governor, the chief State school officer, or the
State officer responsible for administering community or
technical colleges, or outlying area for review and comment;
and
``(2) ensure that any comments regarding the State plan by
the Governor, the chief State school officer, or the State
officer responsible for administering community or technical
colleges, and any revision to the State plan, are submitted to
the Secretary.
``(e) Plan Approval.--The Secretary shall--
``(1) approve a State plan within 90 days after receiving the
plan unless the Secretary makes a written determination within
30 days after receiving the plan that the plan does not meet
the requirements of this section or is inconsistent with
specific provisions of this subtitle; and
``(2) not finally disapprove of a State plan before offering
the eligible agency the opportunity, prior to the expiration of
the 30-day period beginning on the date on which the eligible
agency received the written determination described in
paragraph (3), to review the plan and providing technical
assistance in order to assist the eligible agency in meeting
the requirements of this subtitle.
``SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
``(a) Program Authorized.--From funds made available under section
222(a)(1) for a fiscal year, each eligible agency shall carry out
corrections education and education for other institutionalized
individuals.
``(b) Uses of Funds.--The funds described in subsection (a) shall be
used for the cost of educational programs for criminal offenders in
correctional institutions and for other institutionalized individuals,
including academic programs for--
``(1) basic skills education;
``(2) special education programs as determined by the
eligible agency;
``(3) reading, writing, speaking, and math programs;
``(4) secondary school credit or diploma programs or their
recognized equivalent; and
``(5) integrated education and training.
``(c) Priority.--Each eligible agency that is using assistance
provided under this section to carry out a program for criminal
offenders within a correctional institution shall give priority to
serving individuals who are likely to leave the correctional
institution within 5 years of participation in the program.
``(d) Definitions.--For purposes of this section:
``(1) Correctional institution.--The term `correctional
institution' means any--
``(A) prison;
``(B) jail;
``(C) reformatory;
``(D) work farm;
``(E) detention center; or
``(F) halfway house, community-based rehabilitation
center, or any other similar institution designed for
the confinement or rehabilitation of criminal
offenders.
``(2) Criminal offender.--The term `criminal offender' means
any individual who is charged with, or convicted of, any
criminal offense.
``Subtitle C--Local Provisions
``SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
``(a) Grants and Contracts.--From grant funds made available under
section 222(a)(1), each eligible agency shall award multi-year grants
or contracts, on a competitive basis, to eligible providers within the
State or outlying area that meet the conditions and requirements of
this title to enable the eligible providers to develop, implement, and
improve adult education and family literacy education programs within
the State.
``(b) Local Activities.--The eligible agency shall require eligible
providers receiving a grant or contract under subsection (a) to
establish or operate--
``(1) programs that provide adult education and literacy
activities;
``(2) programs that provide integrated employment and
training activities; or
``(3) credit-bearing postsecondary coursework.
``(c) Direct and Equitable Access; Same Process.--Each eligible
agency receiving funds under this title shall ensure that--
``(1) all eligible providers have direct and equitable access
to apply for grants or contracts under this section; and
``(2) the same grant or contract announcement process and
application process is used for all eligible providers in the
State or outlying area.
``(d) Measurable Goals.--The eligible agency shall require eligible
providers receiving a grant or contract under subsection (a) to
demonstrate--
``(1) the eligible provider's measurable goals for
participant outcomes to be achieved annually on the core
indicators of performance described in section 136(b)(2)(A);
``(2) the past effectiveness of the eligible provider in
improving the basic academic skills of adults and, for eligible
providers receiving grants in the prior year, the success of
the eligible provider receiving funding under this title in
exceeding its performance goals in the prior year;
``(3) the commitment of the eligible provider to serve
individuals in the community who are the most in need of basic
academic skills instruction services, including individuals
with disabilities and individuals who are low-income or have
minimal reading, writing, speaking, and math skills, or are
English learners;
``(4) the program is of sufficient intensity and quality for
participants to achieve substantial learning gains;
``(5) educational practices are evidence-based;
``(6) the activities of the eligible provider effectively
employ advances in technology, and delivery systems including
distance education;
``(7) the activities provide instruction in real-life
contexts, including integrated education and training when
appropriate, to ensure that an individual has the skills needed
to compete in the workplace and exercise the rights and
responsibilities of citizenship;
``(8) the activities are staffed by well-trained instructors,
counselors, and administrators who meet minimum qualifications
established by the State;
``(9) the activities are coordinated with other available
resources in the community, such as through strong links with
elementary schools and secondary schools, postsecondary
educational institutions, local workforce investment boards,
one-stop centers, job training programs, community-based and
faith-based organizations, and social service agencies;
``(10) the activities offer flexible schedules and support
services (such as child care and transportation) that are
necessary to enable individuals, including individuals with
disabilities or other special needs, to attend and complete
programs;
``(11) the activities include a high-quality information
management system that has the capacity to report measurable
participant outcomes (consistent with section 136) and to
monitor program performance;
``(12) the local communities have a demonstrated need for
additional English language acquisition programs, and
integrated education and training programs;
``(13) the capacity of the eligible provider to produce valid
information on performance results, including enrollments and
measurable participant outcomes;
``(14) adult education and family literacy education programs
offer rigorous reading, writing, speaking, and math content
that are evidence based; and
``(15) applications of technology, and services to be
provided by the eligible providers, are of sufficient intensity
and duration to increase the amount and quality of learning and
lead to measurable learning gains within specified time
periods.
``(e) Special Rule.--Eligible providers may use grant funds under
this title to serve children participating in family literacy programs
assisted under this part, provided that other sources of funds
available to provide similar services for such children are used first.
``SEC. 232. LOCAL APPLICATION.
``Each eligible provider desiring a grant or contract under this
title shall submit an application to the eligible agency containing
such information and assurances as the eligible agency may require,
including--
``(1) a description of how funds awarded under this title
will be spent consistent with the requirements of this title;
``(2) a description of any cooperative arrangements the
eligible provider has with other agencies, institutions, or
organizations for the delivery of adult education and family
literacy education programs; and
``(3) each of the demonstrations required by section 231(d).
``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
``(a) In General.--Subject to subsection (b), of the amount that is
made available under this title to an eligible provider--
``(1) at least 95 percent shall be expended for carrying out
adult education and family literacy education programs; and
``(2) the remaining amount shall be used for planning,
administration, personnel and professional development,
development of measurable goals in reading, writing, speaking,
and math, and interagency coordination.
``(b) Special Rule.--In cases where the cost limits described in
subsection (a) are too restrictive to allow for adequate planning,
administration, personnel development, and interagency coordination,
the eligible provider may negotiate with the eligible agency in order
to determine an adequate level of funds to be used for noninstructional
purposes.
``Subtitle D--General Provisions
``SEC. 241. ADMINISTRATIVE PROVISIONS.
``Funds made available for adult education and family literacy
education programs under this title shall supplement and not supplant
other State or local public funds expended for adult education and
family literacy education programs.
``SEC. 242. NATIONAL ACTIVITIES.
``The Secretary shall establish and carry out a program of national
activities that may include the following:
``(1) Providing technical assistance to eligible entities, on
request, to--
``(A) improve their fiscal management, research-based
instruction, and reporting requirements to carry out
the requirements of this title;
``(B) improve its performance on the core indicators
of performance described in section 136;
``(C) provide adult education professional
development; and
``(D) use distance education and improve the
application of technology in the classroom, including
instruction in English language acquisition for English
learners.
``(2) Providing for the conduct of research on national
literacy basic skill acquisition levels among adults, including
the number of adult English learners functioning at different
levels of reading proficiency.
``(3) Improving the coordination, efficiency, and
effectiveness of adult education and workforce development
services at the national, State, and local levels.
``(4) Determining how participation in adult education,
English language acquisition, and family literacy education
programs prepares individuals for entry into and success in
postsecondary education and employment, and in the case of
prison-based services, the effect on recidivism.
``(5) Evaluating how different types of providers, including
community and faith-based organizations or private for-profit
agencies measurably improve the skills of participants in adult
education, English language acquisition, and family literacy
education programs.
``(6) Identifying model integrated basic and workplace skills
education programs, including programs for English learners
coordinated literacy and employment services, and effective
strategies for serving adults with disabilities.
``(7) Initiating other activities designed to improve the
measurable quality and effectiveness of adult education,
English language acquisition, and family literacy education
programs nationwide.''.
TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT
SEC. 301. AMENDMENTS TO THE WAGNER-PEYSER ACT.
The Wagner-Peyser Act (29 U.S.C. 49 et seq.) is amended by amending
section 15 to read as follows:
``SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.
``(a) System Content.--
``(1) In general.--The Secretary of Labor, in accordance with
the provisions of this section, shall oversee the development,
maintenance, and continuous improvement of a nationwide
workforce and labor market information system that includes--
``(A) statistical data from cooperative statistical
survey and projection programs and data from
administrative reporting systems that, taken together,
enumerate, estimate, and project employment
opportunities and conditions at national, State, and
local levels in a timely manner, including statistics
on--
``(i) employment and unemployment status of
national, State, and local populations,
including self-employed, part-time, and
seasonal workers;
``(ii) industrial distribution of
occupations, as well as current and projected
employment opportunities, wages, benefits
(where data is available), and skill trends by
occupation and industry, with particular
attention paid to State and local conditions;
``(iii) the incidence of, industrial and
geographical location of, and number of workers
displaced by, permanent layoffs and plant
closings; and
``(iv) employment and earnings information
maintained in a longitudinal manner to be used
for research and program evaluation;
``(B) information on State and local employment
opportunities, and other appropriate statistical data
related to labor market dynamics, which--
``(i) shall be current and comprehensive;
``(ii) shall meet the needs identified
through the consultations described in
subparagraphs (A) and (B) of subsection (e)(2);
and
``(iii) shall meet the needs for the
information identified in section 121;
``(C) technical standards (which the Secretary shall
publish annually) for data and information described in
subparagraphs (A) and (B) that, at a minimum, meet the
criteria of chapter 35 of title 44, United States Code;
``(D) procedures to ensure compatibility and
additivity of the data and information described in
subparagraphs (A) and (B) from national, State, and
local levels;
``(E) procedures to support standardization and
aggregation of data from administrative reporting
systems described in subparagraph (A) of employment-
related programs;
``(F) analysis of data and information described in
subparagraphs (A) and (B) for uses such as--
``(i) national, State, and local
policymaking;
``(ii) implementation of Federal policies
(including allocation formulas);
``(iii) program planning and evaluation; and
``(iv) researching labor market dynamics;
``(G) wide dissemination of such data, information,
and analysis in a user-friendly manner and voluntary
technical standards for dissemination mechanisms; and
``(H) programs of--
``(i) training for effective data
dissemination;
``(ii) research and demonstration; and
``(iii) programs and technical assistance.
``(2) Information to be confidential.--
``(A) In general.--No officer or employee of the
Federal Government or agent of the Federal Government
may--
``(i) use any submission that is furnished
for exclusively statistical purposes under the
provisions of this section for any purpose
other than the statistical purposes for which
the submission is furnished;
``(ii) disclose to the public any publication
or media transmittal of the data contained in
the submission described in clause (i) that
permits information concerning an individual
subject to be reasonably inferred by either
direct or indirect means; or
``(iii) permit anyone other than a sworn
officer, employee, or agent of any Federal
department or agency, or a contractor
(including an employee of a contractor) of such
department or agency, to examine an individual
submission described in clause (i),
without the consent of the individual, agency, or other
person who is the subject of the submission or provides
that submission.
``(B) Immunity from legal process.--Any submission
(including any data derived from the submission) that
is collected and retained by a Federal department or
agency, or an officer, employee, agent, or contractor
of such a department or agency, for exclusively
statistical purposes under this section shall be immune
from the legal process and shall not, without the
consent of the individual, agency, or other person who
is the subject of the submission or provides that
submission, be admitted as evidence or used for any
purpose in any action, suit, or other judicial or
administrative proceeding.
``(C) Rule of construction.--Nothing in this section
shall be construed to provide immunity from the legal
process for such submission (including any data derived
from the submission) if the submission is in the
possession of any person, agency, or entity other than
the Federal Government or an officer, employee, agent,
or contractor of the Federal Government, or if the
submission is independently collected, retained, or
produced for purposes other than the purposes of this
Act.
``(b) System Responsibilities.--
``(1) In general.--The workforce and labor market information
system described in subsection (a) shall be planned,
administered, overseen, and evaluated through a cooperative
governance structure involving the Federal Government and
States.
``(2) Duties.--The Secretary, with respect to data
collection, analysis, and dissemination of workforce and labor
market information for the system, shall carry out the
following duties:
``(A) Assign responsibilities within the Department
of Labor for elements of the workforce and labor market
information system described in subsection (a) to
ensure that all statistical and administrative data
collected is consistent with appropriate Bureau of
Labor Statistics standards and definitions.
``(B) Actively seek the cooperation of other Federal
agencies to establish and maintain mechanisms for
ensuring complementarity and nonduplication in the
development and operation of statistical and
administrative data collection activities.
``(C) Eliminate gaps and duplication in statistical
undertakings, with the systemization of wage surveys as
an early priority.
``(D) In collaboration with the Bureau of Labor
Statistics and States, develop and maintain the
elements of the workforce and labor market information
system described in subsection (a), including the
development of consistent procedures and definitions
for use by the States in collecting the data and
information described in subparagraphs (A) and (B) of
subsection (a)(1).
``(E) Establish procedures for the system to ensure
that--
``(i) such data and information are timely;
``(ii) paperwork and reporting for the system
are reduced to a minimum; and
``(iii) States and localities are fully
involved in the development and continuous
improvement of the system at all levels.
``(c) National Electronic Tools To Provide Services.--The Secretary
is authorized to assist in the development of national electronic tools
that may be used to facilitate the delivery of work ready services
described in section 134(c)(2) and to provide workforce information to
individuals through the one-stop delivery systems described in section
121 and through other appropriate delivery systems.
``(d) Coordination With the States.--
``(1) In general.--The Secretary, working through the Bureau
of Labor Statistics and the Employment and Training
Administration, shall regularly consult with representatives of
State agencies carrying out workforce information activities
regarding strategies for improving the workforce and labor
market information system.
``(2) Formal consultations.--At least twice each year, the
Secretary, working through the Bureau of Labor Statistics,
shall conduct formal consultations regarding programs carried
out by the Bureau of Labor Statistics with representatives of
each of the Federal regions of the Bureau of Labor Statistics,
elected (pursuant to a process established by the Secretary)
from the State directors affiliated with State agencies that
perform the duties described in subsection (e)(2).
``(e) State Responsibilities.--
``(1) In general.--In order to receive Federal financial
assistance under this section, the Governor of a State shall--
``(A) be responsible for the management of the
portions of the workforce and labor market information
system described in subsection (a) that comprise a
statewide workforce and labor market information system
and for the State's participation in the development of
the annual plan;
``(B) establish a process for the oversight of such
system;
``(C) consult with State and local employers,
participants, and local workforce investment boards
about the labor market relevance of the data to be
collected and disseminated through the statewide
workforce and labor market information system;
``(D) consult with State educational agencies and
local educational agencies concerning the provision of
employment statistics in order to meet the needs of
secondary school and postsecondary school students who
seek such information;
``(E) collect and disseminate for the system, on
behalf of the State and localities in the State, the
information and data described in subparagraphs (A) and
(B) of subsection (a)(1);
``(F) maintain and continuously improve the statewide
workforce and labor market information system in
accordance with this section;
``(G) perform contract and grant responsibilities for
data collection, analysis, and dissemination for such
system;
``(H) conduct such other data collection, analysis,
and dissemination activities as will ensure an
effective statewide workforce and labor market
information system;
``(I) actively seek the participation of other State
and local agencies in data collection, analysis, and
dissemination activities in order to ensure
complementarity, compatibility, and usefulness of data;
``(J) participate in the development of the annual
plan described in subsection (c); and
``(K) utilize the quarterly records described in
section 136(f)(2) to assist the State and other States
in measuring State progress on State performance
measures.
``(2) Rule of construction.--Nothing in this section shall be
construed as limiting the ability of a Governor to conduct
additional data collection, analysis, and dissemination
activities with State funds or with Federal funds from sources
other than this section.
``(f) Nonduplication Requirement.--None of the functions and
activities carried out pursuant to this section shall duplicate the
functions and activities carried out under the Carl D. Perkins Career
and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.).
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $63,473,000 for fiscal year 2014
and each of the 6 succeeding fiscal years.
``(h) Definition.--In this section, the term `local area' means the
smallest geographical area for which data can be produced with
statistical reliability.''.
TITLE IV--REPEALS AND CONFORMING AMENDMENTS
SEC. 401. REPEALS.
The following provisions are repealed:
(1) Chapter 4 of subtitle B of title I, and sections 123,
155, 166, 167, 168, 169, 171, 173, 173A, 174, 192, 194, 502,
503, and 506 of the Workforce Investment Act of 1998.
(2) Title V of the Older Americans Act of 1965 (42 U.S.C.
3056 et seq.).
(3) Sections 1 through 14 of the Wagner-Peyser Act (29 U.S.C.
49 et seq.).
(4) Twenty-First Century Workforce Commission Act (29 U.S.C.
2701 note).
(5) Youth Conservation Corps Act of 1970 (16 U.S.C. 1701 et
seq.).
(6) Section 821 of the Higher Education Amendments of 1998
(20 U.S.C. 1151) (Grants to States for workplace and community
transition training for incarcerated individuals).
(7) The Women in Apprenticeship and Nontraditional
Occupations Act (29 U.S.C. 2501 et seq.).
(8) Sections 4103A and 4104 of title 38, United States Code.
SEC. 402. AMENDMENT TO THE COMPREHENSIVE ENVIRONMENTAL RESPONSE,
COMPENSATION, AND LIABILITY ACT OF 1980.
Section 104(k)(6) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9604) is amended by
striking ``, training,''.
SEC. 403. AMENDMENTS TO THE FOOD AND NUTRITION ACT OF 2008.
(a) Definition.--Section 3(t) of the Food and Nutrition Act of 2008
(7 U.S.C. 2012(t)) is amended--
(1) by striking ``and (2)'' and inserting ``(2)'', and
(2) by inserting before the period at the end the following:
``, and (3) when referencing employment and training activities under
section 6(d)(4), a State board as defined in section 101 of the
Workforce Investment Act of 1998 (29 U.S.C. 2801)''.
(b) Eligible Households.--Section 5 of the Food and Nutrition Act of
2008 (7 U.S.C. 2014) is amended--
(1) in subsection (d)(14) by striking ``section 6(d)(4)(I)''
and inserting ``section 6(d)(4)(C)'', and
(2) in subsection (g)(3) by striking ``constitutes adequate
participation in an employment and training program under
section 6(d)'' and inserting ``allows the individual to
participate in employment and training activities under section
6(d)(4)''.
(c) Eligibility Disqualifications.--Section 6(d)(4) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)) is amended to read as
follows:
``(4) Employment and training.--
``(A) Implementation.--Each State agency shall
provide employment and training services authorized
under section 134 of the Workforce Investment Act of
1998 (29 U.S.C. 2864) to eligible members of households
participating in the supplemental nutrition assistance
program in gaining skills, training, work, or
experience that will increase their ability to obtain
regular employment.
``(B) Statewide workforce development system.--
Consistent with subparagraph (A), employment and
training services shall be provided through the
statewide workforce development system, including the
One-Stop delivery system, authorized by the Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.).
``(C) Reimbursements.--
``(i) Actual costs.--The State agency shall
provide payments or reimbursement to
participants served under this paragraph for--
``(I) the actual costs of
transportation and other actual costs
(other than dependent care costs) that
are reasonably necessary and directly
related to the individual participating
in employment and training activities;
and
``(II) the actual costs of such
dependent care expenses that are
determined by the State agency to be
necessary for the individual to
participate in employment and training
activities (other than an individual
who is the caretaker relative of a
dependent in a family receiving
benefits under part A of title IV of
the Social Security Act (42 U.S.C. 601
et seq.) in a local area where an
employment, training, or education
program under title IV of such Act is
in operation), except that no such
payment or reimbursement shall exceed
the applicable local market rate.
``(ii) Service contracts and vouchers.--In
lieu of providing reimbursements or payments
for dependent care expenses under clause (i), a
State agency may, at its option, arrange for
dependent care through providers by the use of
purchase of service contracts or vouchers or by
providing vouchers to the household.
``(iii) Value of reimbursements.--The value
of any dependent care services provided for or
arranged under clause (ii), or any amount
received as a payment or reimbursement under
clause (i), shall--
``(I) not be treated as income for
the purposes of any other Federal or
federally assisted program that bases
eligibility for, or the amount of
benefits on, need; and
``(II) not be claimed as an
employment-related expense for the
purposes of the credit provided under
section 21 of the Internal Revenue Code
of 1986 (26 U.S.C. 21).''.
(d) Administration.--Section 11(e)(19) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2020(e)(11) is amended to read as follows:
``(19) the plans of the State agency for providing employment
and training services under section 6(d)(4);''.
(e) Administrative Cost-Sharing and Quality Control.--Section 16(h)
of the Food and Nutrition Act of 2008 (7 U.S.C. 2025) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A) by striking ``carry out
employment and training programs'' and inserting
``provide employment and training services to eligible
households under section 6(d)(4)'', and
(B) in subparagraph (D) by striking ``operating an
employment and training program'' and inserting
``providing employment and training services consistent
with section 6(d)(4)'',
(2) in paragraph (3) by striking ``related to participation
in an employment and training program'' and inserting ``the
individual participating in employment and training
activities'',
(3) in paragraph (4) by striking ``for operating an
employment and training program'' and inserting ``to provide
employment and training services'', and
(4) by amending paragraph (5) to read as follows:
``(5) Monitoring.--The Secretary, in conjunction with the
Secretary of Labor, shall monitor each State agency responsible
for administering employment and training services under
section 6(d)(4) to ensure funds are being spent effectively and
efficiently. Each program of employment and training receiving
funds under section 6(d)(4) shall be subject to the
requirements of the performance accountability system,
including having to meet the state performance measures
included in section 136 of the Workforce Investment Act (29
U.S.C. 2871).''.
(f) Research, Demonstration, and Evaluations.--Section 17 of the Food
and Nutrition Act of 2008 (7 U.S.C. 2026) is amended--
(1) in subsection (b) by striking paragraph (3), and
(2) in subsection (g)--
(A) by inserting ``, in conjunction with the
Secretary of Labor,'' after ``Secretary'', and
(B) by striking ``programs established'' and
inserting ``activities provided to eligible
households''.
(g) Minnesota Family Investment Project.--Section 22(b)(4) of the
Food and Nutrition Act of 2008 (7 U.S.C. 2031(b)(4)) is amended by
striking ``equivalent to those offered under the employment and
training program''.
SEC. 404. AMENDMENTS TO SECTION 412 OF THE IMMIGRATION AND NATIONALITY
ACT.
(a) Conditions and Considerations.--Section 412(a) of the Immigration
and Nationality Act (8 U.S.C. 1522(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)(i), by striking ``make
available sufficient resources for employment training
and placement'' and inserting ``provide refugees with
the opportunity to access employment and training
services, including job placement,''; and
(B) in subparagraph (B)(ii), by striking
``services;'' and inserting ``services provided through
the Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.);'';
(2) in paragraph (2)(C)(iii)(II), by inserting ``and
training'' after ``employment'';
(3) in paragraph (6)(A)(ii)--
(A) by striking ``insure'' and inserting ``ensure'';
(B) by inserting ``and training'' after
``employment''; and
(C) by inserting after ``available'' the following:
``through the one-stop delivery system under section
121 of the Workforce Investment Act of 1998 (29 U.S.C.
2841)''; and
(4) in paragraph (9), by inserting ``the Secretary of
Labor,'' after ``Education,''.
(b) Program of Initial Resettlement.--Section 412(b)(2) of such Act
(8 U.S.C. 1522(b)(2)) is amended--
(1) by striking ``orientation, instruction'' and inserting
``orientation and instruction''; and
(2) by striking ``, and job training for refugees, and such
other education and training of refugees, as facilitates'' and
inserting ``for refugees to facilitate''.
(c) Project Grants and Contracts for Services for Refugees.--Section
412(c) of such Act (8 U.S.C. 1522(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A)(i), by inserting ``and
training'' after ``employment''; and
(B) by striking subparagraph (C);
(2) in paragraph (2)(B), by striking ``paragraph--'' through
``in a manner'' and inserting ``paragraph in a manner''; and
(3) by adding at the end the following:
``(3) In carrying out this section, the Director shall ensure that
employment and training services are provided through the statewide
workforce development system, as appropriate, authorized by the
Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.). Such action
may include--
``(A) making employment and training services as described
under section 134 of such Act (29 U.S.C. 2864) available to
refugees; and
``(B) providing refugees with access to a one-stop delivery
system under section 121 of such Act (29 U.S.C. 2841).''.
(d) Cash Assistance and Medical Assistance to Refugees.--Section
412(e) of such Act (8 U.S.C. 1522(e)) is amended--
(1) in paragraph (2)(A)(i), by inserting ``and training''
after ``providing employment''; and
(2) in paragraph (3), by striking ``The'' and inserting
``Consistent with subsection (c)(3), the''.
SEC. 405. AMENDMENTS RELATING TO THE SECOND CHANCE ACT OF 2007.
(a) Federal Prisoner Reentry Initiative.--Section 231 of the Second
Chance Act of 2007 (42 U.S.C. 17541) is amended--
(1) in subsection (a)(1)(E)--
(A) by inserting ``the Department of Labor and''
before ``other Federal agencies''; and
(B) by inserting ``State and local workforce
investment boards,'' after ``community-based
organizations,'';
(2) in subsection (c)--
(A) in paragraph (2), by striking at the end ``and'';
(B) in paragraph (3), by striking at the end the
period and inserting ``; and''; and
(C) by adding at the end the following new paragraph:
``(4) to coordinate reentry programs with the employment and
training services provided through the statewide workforce
investment system under subtitle B of title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2811 et seq.).''; and
(3) in subsection (d), by adding at the end the following new
paragraph:
``(6) Interaction with the workforce investment system.--
``(A) In general.--In carrying out this section, the
Director shall ensure that employment and training
services, including such employment and services
offered through reentry programs, are provided, as
appropriate, through the statewide workforce investment
system under subtitle B of title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2811 et seq.). Such
action may include--
``(i) making employment and training services
available to prisoners prior to and immediately
following the release of such prisoners; or
``(ii) providing prisoners with access by
remote means to a one-stop delivery system
under section 121 of the Workforce Investment
Act of 1998 (29 U.S.C. 2841) in the State in
which the prison involved is located.
``(B) Service defined.--In this paragraph, the term
`employment and training services' means those services
described in section 134 of the Workforce Investment
Act of 1998 (29 U.S.C. 2864) offered by the Bureau of
Prisons, including--
``(i) the skills assessment described in
subsection (a)(1)(A);
``(ii) the skills development plan described
in subsection (a)(1)(B); and
``(iii) the enhancement, development, and
implementation of reentry and skills
development programs.''.
(b) Duties of the Bureau of Prisons.--Section 4042(a)(5)(E) of title
18, United States Code, is amended--
(1) in clause (ii), by striking ``Employment'' and inserting
``Employment and training services (as defined in paragraph (6)
of section 231(d) of the Second Chance Act of 2007), including
basic skills attainment, consistent with such paragraph'';
(2) by striking clause (iii); and
(3) by redesignating clauses (iv), (v), (vi), and (vii) as
clauses (iii), (iv), (v), and (vi), respectively.
SEC. 406. AMENDMENTS TO THE OMNIBUS CRIME CONTROL AND SAFE STREETS ACT
OF 1968.
Section 2976 of the Omnibus Crime Control and Safe Streets Act of
1968 (42 U.S.C. 3797w) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``vocational'' and
inserting ``career and technical education (as defined
in section 3 of the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2302)) and
training'';
(B) by redesignating each of paragraphs (4) through
(7) as paragraphs (5) through (8), respectively; and
(C) by inserting after paragraph (3) the following
new paragraph:
``(4) coordinating employment and training services provided
through the statewide workforce investment system under
subtitle B of title I of the Workforce Investment Act of 1998
(29 U.S.C. 2811 et seq.), including a one-stop delivery system
under section 121 of such Act (29 U.S.C. 2841), for offenders
upon release from prison, jail, or a juvenile facility, as
appropriate;'';
(2) in subsection (d)(2), by inserting ``, including local
workforce investment boards established under section 117 of
the Workforce Investment Act of 1998 (29 U.S.C. 2832),'' after
``nonprofit organizations'';
(3) in subsection (e)--
(A) in paragraph (3), by striking ``victim services,
and employment services'' and inserting ``and victim
services'';
(B) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(C) by inserting after paragraph (3) the following
new paragraph:
``(4) provides employment and training services through the
statewide workforce investment system under subtitle B of title
I of the Workforce Investment Act of 1998 (29 U.S.C. 2811 et
seq.), including a one-stop delivery system under section 121
of such Act (29 U.S.C. 2841); and'';
(4) in subsection (k)--
(A) in paragraph (1)(A), by inserting ``, in
accordance with paragraph (2)'' after ``under this
section'';
(B) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(C) by inserting after paragraph (1) the following
new paragraph:
``(2) Employment and training.--The Attorney General shall
require each grantee under this section to measure the core
indicators of performance as described in section 136(b)(2)(A)
of the Workforce Investment Act of 1998 (29 U.S.C.
2871(b)(2)(A)) with respect to the program of such grantee
funded with a grant under this section.''.
SEC. 407. CONFORMING AMENDMENTS TO THE UNITED STATES CODE.
Title 38, United States Code, is amended--
(1) by striking the item relating to section 4103A and
section 4104 in the table of sections at the beginning of
chapter 41 of such title;
(2) in section 4102A--
(A) in subsection (b)--
(i) by striking paragraphs (5), (6), and (7);
(ii) by redesignating paragraph (8) as
paragraph (5);
(B) by striking subsections (c) and (h);
(C) by redesignating subsection (d), (e), (f), and
(g) as subsection (c), (d), (e), and (f);
(D) in subsection (e)(1) (as so redesignated)--
(i) by striking ``, including disabled
veterans' outreach program specialists and
local veterans' employment representatives
providing employment, training, and placement
services under this chapter in a State''; and
(ii) by striking ``for purposes of subsection
(c)''.
(3) in section 4109(a), by striking ``disabled veterans'
outreach program specialists and local veterans' employment
representative'' and inserting ``veteran employment specialists
appointed under section 134(f) of the Workforce Investment Act
of 1998'';
(4) in section 4109(d)(1), by striking ``disabled veterans'
outreach program specialists and local veterans' employment
representatives'' and inserting ``veteran employment
specialists appointed under section 134(f) of the Workforce
Investment Act of 1998'';
(5) in section 4112(d)--
(A) in paragraph (1), by striking ``disabled
veterans' outreach program specialist'' and inserting
``veteran employment specialist appointed under section
134(f) of the Workforce Investment Act of 1998''; and
(B) by striking paragraph (2) and redesignating
paragraph (3) as paragraph (2);
(6) in section 3672(d)(1), by striking ``disabled veterans'
outreach program specialists under section 4103A'' and
inserting ``veteran employment specialists appointed under
section 134(f) of the Workforce Investment Act of 1998''; and
(7) in section 4104A--
(A) in subsection (b)(1), by striking subparagraph
(A) and inserting the following:
``(A) the appropriate veteran employment specialist
(in carrying out the functions described in section
134(f) of the Workforce Investment Act of 1998);''; and
(B) in subsection (c)(1), by striking subparagraph
(A) and inserting the following:
``(A) collaborate with the appropriate veteran
employment specialist (as described in section 134(f))
and the appropriate State boards and local boards (as
such terms are defined in section 101 of the Workforce
Investment Act of 1998 (29 U.S.C. 2801));''.
SEC. 408. CONFORMING AMENDMENT TO TABLE OF CONTENTS.
The table of contents in section 1(b) is amended to read as follows:
``Sec. 1. Short title; table of contents.
``TITLE I--WORKFORCE INVESTMENT SYSTEMS
``Subtitle A--Workforce Investment Definitions
``Sec. 101. Definitions.
``Subtitle B--Statewide and Local Workforce Investment Systems
``Sec. 106. Purpose.
``Chapter 1--State Provisions
``Sec. 111. State workforce investment boards.
``Sec. 112. State plan.
``Chapter 2--Local Provisions
``Sec. 116. Local workforce investment areas.
``Sec. 117. Local workforce investment boards.
``Sec. 118. Local plan.
``Chapter 3--Workforce Investment Activities Providers
``Sec. 121. Establishment of one-stop delivery systems.
``Sec. 122. Identification of eligible providers of training services.
``Sec. 123. [Repealed].
``Chapter 4--[Repealed]
``Chapter 5--Employment and Training Activities
``Sec. 131. General authorization.
``Sec. 132. State allotments.
``Sec. 133. Within State allocations.
``Sec. 134. Use of funds for employment and training activities.
``Chapter 6--General Provisions
``Sec. 136. Performance accountability system.
``Sec. 137. Authorization of appropriations.
``Subtitle C--Job Corps
``Sec. 141. Purposes.
``Sec. 142. Definitions.
``Sec. 143. Establishment.
``Sec. 144. Individuals eligible for the Job Corps.
``Sec. 145. Recruitment, screening, selection, and assignment of
enrollees.
``Sec. 146. Enrollment.
``Sec. 147. Job Corps centers.
``Sec. 148. Program activities.
``Sec. 149. Counseling and job placement.
``Sec. 150. Support.
``Sec. 151. Operations.
``Sec. 152. Standards of conduct.
``Sec. 153. Community participation.
``Sec. 154. Workforce councils.
``Sec. 155. [Repealed].
``Sec. 156. Technical assistance to centers.
``Sec. 157. Application of provisions of Federal law.
``Sec. 158. Special provisions.
``Sec. 159. Performance accountability and management.
``Sec. 160. General provisions.
``Sec. 161. Authorization of appropriations.
``Subtitle D--National Programs
``Sec. 166. [Repealed].
``Sec. 167. [Repealed].
``Sec. 168. [Repealed].
``Sec. 169. [Repealed].
``Sec. 170. Technical assistance.
``Sec. 171. [Repealed].
``Sec. 172. Evaluations.
``Sec. 173. [Repealed].
``Sec. 173A. [Repealed].
``Sec. 174. [Repealed].
``Subtitle E--Administration
``Sec. 181. Requirements and restrictions.
``Sec. 182. Prompt allocation of funds.
``Sec. 183. Monitoring.
``Sec. 184. Fiscal controls; sanctions.
``Sec. 185. Reports; recordkeeping; investigations.
``Sec. 186. Administrative adjudication.
``Sec. 187. Judicial review.
``Sec. 188. Nondiscrimination.
``Sec. 189. Administrative provisions.
``Sec. 190. References.
``Sec. 191. State legislative authority.
``Sec. 192. [Repealed].
``Sec. 193. Transfer of Federal equity in State employment security
real property to the States.
``Sec. 194. [Repealed].
``Sec. 195. General program requirements.
``Sec. 196. Federal agency staff.
``Subtitle F--Repeals and Conforming Amendments
``Sec. 199. Repeals.
``Sec. 199A. Conforming amendments.
``TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION
``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.
``Subtitle A--Federal Provisions
``Sec. 211. Reservation of funds; grants to eligible agencies;
allotments.
``Sec. 212. Performance accountability system.
``Subtitle B--State Provisions
``Sec. 221. State administration.
``Sec. 222. State distribution of funds; matching requirement.
``Sec. 223. State leadership activities.
``Sec. 224. State plan.
``Sec. 225. Programs for corrections education and other
institutionalized individuals.
``Subtitle C--Local Provisions
``Sec. 231. Grants and contracts for eligible providers.
``Sec. 232. Local application.
``Sec. 233. Local administrative cost limits.
``Subtitle D--General Provisions
``Sec. 241. Administrative provisions.
``Sec. 242. National activities.
``TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
``Subtitle A--Wagner-Peyser Act
``Sec. 301. Definitions.
``Sec. 302. Functions.
``Sec. 303. Designation of State agencies.
``Sec. 304. Appropriations.
``Sec. 305. Disposition of allotted funds.
``Sec. 306. State plans.
``Sec. 307. Repeal of Federal advisory council.
``Sec. 308. Regulations.
``Sec. 309. Employment statistics.
``Sec. 310. Technical amendments.
``Sec. 311. Effective date.
``Subtitle B--Linkages With Other Programs
``Sec. 321. Trade Act of 1974.
``Sec. 322. Veterans' employment programs.
``Sec. 323. Older Americans Act of 1965.
``Subtitle C--[Repealed]
``Subtitle D--Application of Civil Rights and Labor-Management Laws to
the Smithsonian Institution
``Sec. 341. Application of civil rights and labor-management laws to
the Smithsonian Institution.
``TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998
``Sec. 401. Short title.
``Sec. 402. Title.
``Sec. 403. General provisions.
``Sec. 404. Vocational rehabilitation services.
``Sec. 405. Research and training.
``Sec. 406. Professional development and special projects and
demonstrations.
``Sec. 407. National Council on Disability.
``Sec. 408. Rights and advocacy.
``Sec. 409. Employment opportunities for individuals with disabilities.
``Sec. 410. Independent living services and centers for independent
living.
``Sec. 411. [Repealed].
``Sec. 412. Helen Keller National Center Act.
``Sec. 413. President's Committee on Employment of People With
Disabilities.
``Sec. 414. Conforming amendments.
``TITLE V--GENERAL PROVISIONS
``Sec. 501. State unified plan.
``Sec. 502. [Repealed].
``Sec. 503. [Repealed].
``Sec. 504. Privacy.
``Sec. 505. Buy-American requirements.
``Sec. 506. [Repealed].
``Sec. 507. Effective date.''.
TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973
SEC. 501. FINDINGS.
Section 2(a) of the Rehabilitation Act of 1973 (29 U.S.C. 701(a)) is
amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(7) there is a substantial need to improve and expand
services for students with disabilities under this Act.''.
SEC. 502. REHABILITATION SERVICES ADMINISTRATION.
(a) Rehabilitation Services Administration.--The Rehabilitation Act
of 1973 (29 U.S.C. 701 et seq.) is amended--
(1) in section 3(a) (29 U.S.C. 702(a))--
(A) by striking ``Office of the Secretary'' and
inserting ``Department of Education'';
(B) by striking ``President by and with the advice
and consent of the Senate'' and inserting
``Secretary''; and
(C) by striking ``, and the Commissioner shall be the
principal officer,'';
(2) by striking ``Commissioner'' each place it appears
(except in section 21) and inserting ``Director'';
(3) in section 12(c) (29 U.S.C. 709), by striking
``Commissioner's'' and inserting ``Director's'';
(4) in the heading for subparagraph (B) of section 100(d)(2),
by striking ``commissioner'' and inserting ``director'';
(5) in the heading for section 706, by striking
``commissioner'' and inserting ``director'';
(6) in the heading for paragraph (3) of section 723(a), by
striking ``commissioner'' and inserting ``director''; and
(7) in section 21 (29 U.S.C. 718)--
(A) in subsection (b)(1)--
(i) by striking ``Commissioner'' the first
place it appears and inserting ``Director of
the Rehabilitation Services Administration'';
(ii) by striking ``(referred to in this
subsection as the `Director')''; and
(iii) by striking ``The Commissioner and the
Director'' and inserting ``Both such
Directors''; and
(B) by striking ``the Commissioner and the Director''
each place it appears and inserting ``both such
Directors''.
(b) Effective Date; Application.--The amendments made by subsection
(a) shall--
(1) take effect on the date of the enactment of this Act; and
(2) apply with respect to the appointments of Directors of
the Rehabilitation Services Administration made on or after the
date of enactment of this Act, and the Directors so appointed.
SEC. 503. DEFINITIONS.
Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) is
amended--
(1) by redesignating paragraphs (35) through (39) as
paragraphs (36) through (40), respectively;
(2) in subparagraph (A)(ii) of paragraph (36) (as
redesignated by paragraph (1)), by striking ``paragraph
(36)(C)'' and inserting ``paragraph (37)(C)''; and
(3) by inserting after paragraph (34) the following:
``(35)(A) The term `student with a disability' means an
individual with a disability who--
``(i) is not younger than 16 and not older
than 21;
``(ii) has been determined to be eligible
under section 102(a) for assistance under this
title; and
``(iii)(I) is eligible for, and is receiving,
special education under part B of the
Individuals with Disabilities Education Act (20
U.S.C. 1411 et seq.); or
``(II) is an individual with a disability,
for purposes of section 504.
``(B) The term `students with disabilities' means more than 1
student with a disability.''.
SEC. 504. STATE PLAN.
Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a))
is amended--
(1) in paragraph (10)(B) by striking ``on the eligible
individuals'' and all that follows through ``section
136(d)(2)'' and inserting ``of information necessary to assess
the State's performance on the core indicators of performance
described in section 136(b)(2)(A)'';
(2) in paragraph (11)--
(A) in subparagraph (D)(i), by inserting before the
semicolon the following: ``, which may be provided
using alternative means of meeting participation (such
as video conferences and conference calls)''; and
(B) by adding at the end the following:
``(G) Coordination with assistive technology
programs.--The State plan shall include an assurance
that the designated State unit and the lead agency or
implementing entity responsible for carrying out duties
under the Assistive Technology Act of 1998 (29 U.S.C.
3001 et seq.) have developed working relationships and
coordinate their activities.'';
(3) in paragraph (15)--
(A) in subparagraph (A)--
(i) in clause (i)--
(I) in subclause (II), by striking
``and'' at the end;
(II) in subclause (III), by adding
``and'' at the end; and
(III) by adding at the end the
following:
``(IV) students with disabilities,
including their need for transition
services;'';
(ii) by redesignating clauses (ii) and (iii)
as clauses (iii) and (iv), respectively; and
(iii) by inserting after clause (i) the
following:
``(ii) include an assessment of the
transition services provided under this Act,
and coordinated with transition services under
the Individuals with Disabilities Education
Act, as to those services meeting the needs of
individuals with disabilities;''; and
(B) in subparagraph (D)--
(i) by redesignating clauses (iii), (iv), and
(v) as clauses (iv), (v), and (vi),
respectively; and
(ii) by inserting after clause (ii) the
following:
``(iii) the methods to be used to improve and
expand vocational rehabilitation services for
students with disabilities, including the
coordination of services designed to facilitate
the transition of such students from the
receipt of educational services in school to
the receipt of vocational rehabilitation
services under this title or to postsecondary
education or employment;'';
(4) in paragraph (22)--
(A) by striking ``carrying out part B of title VI,
including''; and
(B) by striking ``that part to supplement funds made
available under part B of'';
(5) in paragraph (24)(A), by striking ``part A of title VI''
and inserting ``section 109A''; and
(6) by adding at the end the following:
``(25) Collaboration with industry.--The State plan shall
describe how the designated State agency will carry out the
provisions of section 109A, including--
``(A) the criteria such agency will use to award
grants under such section; and
``(B) how the activities carried out under such
grants will be coordinated with other services provided
under this title.
``(26) Services for students with disabilities.--The State
plan shall provide an assurance satisfactory to the Secretary
that the State--
``(A) has developed and implemented strategies to
address the needs identified in the assessment
described in paragraph (15), and achieve the goals and
priorities identified by the State, to improve and
expand vocational rehabilitation services for students
with disabilities on a statewide basis in accordance
with paragraph (15); and
``(B) from funds reserved under section 110A, shall
carry out programs or activities designed to improve
and expand vocational rehabilitation services for
students with disabilities that--
``(i) facilitate the transition of students
with disabilities from the receipt of
educational services in school, to the receipt
of vocational rehabilitation services under
this title, including, at a minimum, those
services specified in the interagency agreement
required in paragraph (11)(D);
``(ii) improve the achievement of post-school
goals of students with disabilities, including
improving the achievement through participation
(as appropriate when career goals are
discussed) in meetings regarding individualized
education programs developed under section 614
of the Individuals with Disabilities Education
Act (20 U.S.C. 1414);
``(iii) provide career guidance, career
exploration services, job search skills and
strategies, and technical assistance to
students with disabilities;
``(iv) support the provision of training and
technical assistance to State and local
educational agencies and designated State
agency personnel responsible for the planning
and provision of services to students with
disabilities; and
``(v) support outreach activities to students
with disabilities who are eligible for, and
need, services under this title.''.
SEC. 505. SCOPE OF SERVICES.
Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 723) is
amended--
(1) in subsection (a), by striking paragraph (15) and
inserting the following:
``(15) transition services for students with disabilities,
that facilitate the achievement of the employment outcome
identified in the individualized plan for employment, including
services described in clauses (i) through (iii) of section
101(a)(26)(B);'';
(2) in subsection (b), by striking paragraph (6) and
inserting the following:
``(6)(A)(i) Consultation and technical assistance services to
assist State and local educational agencies in planning for the
transition of students with disabilities from school to post-
school activities, including employment.
``(ii) Training and technical assistance described in section
101(a)(26)(B)(iv).
``(B) Services for groups of individuals with disabilities
who meet the requirements of clauses (i) and (iii) of section
7(35)(A), including services described in clauses (i), (ii),
(iii), and (v) of section 101(a)(26)(B), to assist in the
transition from school to post-school activities.''; and
(3) in subsection (b) by inserting at the end, the following:
``(7) The establishment, development, or improvement of
assistive technology demonstration, loan, reutilization, or
financing programs in coordination with activities authorized
under the Assistive Technology Act of 1998 (29 U.S.C. 3001) to
promote access to assistive technology for individuals with
disabilities and employers.''.
SEC. 506. STANDARDS AND INDICATORS.
Section 106 of the Rehabilitation Act of 1973 (29 U.S.C. 726(a)) is
amended--
(1) by striking subsection (a) and inserting the following:
``(a) Standards and Indicators.--The performance standards and
indicators for the vocational rehabilitation program carried out under
this title--
``(1) shall be subject to paragraphs (2)(A) and (3) of
section 136(b) of the Workforce Investment Act of 1998; and
``(2) may, at a State's discretion, include additional
indicators identified in the State plan submitted under section
101.''; and
(2) in subsection (b)(2)(B), by striking clause (i) and
inserting the following:
``(i) on a biannual basis, review the program
improvement efforts of the State and, if the
State has not improved its performance to
acceptable levels, as determined by the
Director, direct the State to make revisions to
the plan to improve performance; and''.
SEC. 507. COLLABORATION WITH INDUSTRY.
The Rehabilitation Act of 1973 is amended by inserting after section
109 (29 U.S.C. 729) the following:
``SEC. 109A. COLLABORATION WITH INDUSTRY.
``(a) Authority.--A State shall use not less than one-half of one
percent of the payment the State receives under section 111 for a
fiscal year to award grants to eligible entities to create practical
job and career readiness and training programs, and to provide job
placements and career advancement.
``(b) Application.--To receive a grant under this section, an
eligible entity shall submit an application to a designated State
agency at such time, in such manner, and containing such information as
such agency shall require. Such application shall include, at a
minimum--
``(1) a plan for evaluating the effectiveness of the program;
``(2) a plan for collecting and reporting the data and
information described under subparagraphs (A) through (C) of
section 101(a)(10), as determined appropriate by the designated
State agency; and
``(3) a plan for providing for the non-Federal share of the
costs of the program.
``(c) Activities.--An eligible entity receiving a grant under this
section shall use the grant funds to carry out a program that provides
one or more of the following:
``(1) Job development, job placement, and career advancement
services for individuals with disabilities.
``(2) Training in realistic work settings in order to prepare
individuals with disabilities for employment and career
advancement in the competitive market.
``(3) Providing individuals with disabilities with such
support services as may be required in order to maintain the
employment and career advancement for which the individuals
have received training.
``(d) Awards.--Grants under this section shall--
``(1) be awarded for a period not to exceed 5 years; and
``(2) be awarded competitively.
``(e) Eligible Entity Defined.--For the purposes of this section, the
term `eligible entity' means a for-profit business, alone or in
partnership with one or more of the following:
``(1) Community rehabilitation program providers.
``(2) Indian tribes.
``(3) Tribal organizations.
``(f) Federal Share.--The Federal share of a program under this
section shall not exceed 80 percent of the costs of the program.
``(g) Eligibility for Services.--An individual shall be eligible for
services provided under a program under this section if the individual
is determined under section 102(a)(1) to be eligible for assistance
under this title.''.
SEC. 508. RESERVATION FOR EXPANDED TRANSITION SERVICES.
The Rehabilitation Act of 1973 is amended by inserting after section
110 (29 U.S.C. 730) the following:
``SEC. 110A. RESERVATION FOR EXPANDED TRANSITION SERVICES.
``Each State shall reserve not less than 10 percent of the funds
allotted to the State under section 110(a) to carry out programs and
activities under sections 101(a)(26)(B) and 103(b)(6).''.
SEC. 509. CLIENT ASSISTANCE PROGRAM.
Section 112(e)(1) of the Rehabilitation Act of 1973 (29 U.S.C.
732(e)(1)) is amended by redesignating subparagraph (D) as subparagraph
(E) and inserting after subparagraph (C) the following:
``(D) The Secretary shall make grants to the
protection and advocacy system serving the American
Indian Consortium to provide services in accordance
with this section. The amount of such grants shall be
the same as provided to territories under this
subsection.''.
SEC. 510. TITLE III AMENDMENTS.
Title III of the Rehabilitation Act of 1973 (29 U.S.C. 771 et seq.)
is amended--
(1) in section 301(a)--
(A) in paragraph (2), by inserting ``and'' at the
end;
(B) by striking paragraphs (3) and (4); and
(C) by redesignating paragraph (5) as paragraph (3);
(2) in section 302(g)--
(A) in the heading, by striking ``And In-Service
Training''; and
(B) by striking paragraph (3);
(3) in section 303(c)--
(A) in paragraph (4)--
(i) by amending subparagraph (A)(ii) to read
as follows:
``(ii) to coordinate and work closely with
the parent training and information centers
established pursuant to section 671 of the
Individuals with Disabilities Education Act,
the community parent resource centers
established pursuant to section 672 of such
Act, and the eligible entities receiving awards
under section 673 of such Act; and''; and
(ii) in subparagraph (C), by inserting ``,
and demonstrate the capacity for serving,''
after ``serve''; and
(B) by adding at the end the following:
``(8) Reservation.--From the amount appropriated to carry out
this subsection for a fiscal year, 20 percent of such amount or
$500,000, whichever is less, shall be reserved to carry out
paragraph (6).'';
(4) by striking sections 304 and 305; and
(5) by redesignating section 306 as section 304.
SEC. 511. REPEAL OF TITLE VI.
The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is amended by
repealing title VI.
SEC. 512. CHAIRPERSON.
Section 705(b)(5) of the Rehabilitation Act of 1973 (29 U.S.C.
796d(b)(5)) is amended to read as follows:
``(5) Chairperson.--The Council shall select a chairperson
from among the voting membership of the Council.''.
SEC. 513. AUTHORIZATIONS OF APPROPRIATIONS.
The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.) is further
amended--
(1) in section 100(b)(1) (29 U.S.C. 720(b)(1)), by striking
``such sums as may be necessary for fiscal years 1999 through
2003'' and inserting ``$3,121,712,000 for fiscal year 2014 and
each of the 6 succeeding fiscal years'';
(2) in section 110(c) (29 U.S.C. 730(c)), by amending
paragraph (2) to read as follows:
``(2) The sum referred to in paragraph (1) shall be, as
determined by the Secretary, not less than 1 percent and not
more than 1.5 percent of the amount referred to in paragraph
(1) for each of fiscal years 2014 through 2020.'';
(3) in section 112(h) (29 U.S.C. 732(h)) by striking ``such
sums as may be necessary for fiscal years 1999 through 2003''
and inserting ``$12,240,000 for fiscal year 2014 and each of
the 6 succeeding fiscal years'';
(4) by amending subsection (a) of section 201 (29 U.S.C.
761(a)) to read as follows: ``(a) There are authorized to be
appropriated $108,817,000 for fiscal year 2014 and each of the
6 succeeding fiscal years to carry out this title.'';
(5) in section 302(i) (29 U.S.C. 772(i)) by striking ``such
sums as may be necessary for each of the fiscal years 1999
through 2003'' and inserting ``$35,515,000 for fiscal year 2014
and each of the 6 succeeding fiscal years'';
(6) in section 303(e) (29 U.S.C. 773(e)) by striking ``such
sums as may be necessary for each of the fiscal years 1999
through 2003'' and inserting ``$5,325,000 for fiscal year 2014
and each of the 6 succeeding fiscal years'';
(7) in section 405 (29 U.S.C. 785) by striking ``such sums as
may be necessary for each of the fiscal years 1999 through
2003'' and inserting ``$3,258,000 for fiscal year 2014 and each
of the 6 succeeding fiscal years'';
(8) in section 502(j) (29 U.S.C. 792(j)) by striking ``such
sums as may be necessary for each of the fiscal years 1999
through 2003'' and inserting ``$7,400,000 for fiscal year 2014
and each of the 6 succeeding fiscal years'';
(9) in section 509(l) (29 U.S.C. 794e(l)) by striking ``such
sums as may be necessary for each of the fiscal years 1999
through 2003'' and inserting ``$18,031,000 for fiscal year 2014
and each of the 6 succeeding fiscal years'';
(10) in section 714 (29 U.S.C. 796e-3), by striking ``such
sums as may be necessary for each of the fiscal years 1999
through 2003'' and inserting ``$23,359,000 for fiscal year 2014
and each of the 6 succeeding fiscal years'';
(11) in section 727 (29 U.S.C. 796f-6), by striking ``such
sums as may be necessary for each of the fiscal years 1999
through 2003'' and inserting ``$79,953,000 for fiscal year 2014
and each of the 6 succeeding fiscal years''; and
(12) in section 753 (29 U.S.C. 7961), by striking ``such sums
as may be necessary for each of the fiscal years 1999 through
2003'' and inserting ``$34,018,000 for fiscal year 2014 and
each of the 6 succeeding fiscal years''.
SEC. 514. CONFORMING AMENDMENTS.
Section 1(b) of the Rehabilitation Act of 1973 is amended--
(1) by inserting after the item relating to section 109 the
following:
``Sec. 109A. Collaboration with industry.'';
(2) by inserting after the item relating to section 110 the
following:
``Sec. 110A. Reservation for expanded transition services.'';
(3) by striking the item related to section 304 and inserting
the following:
``Sec. 304. Measuring of project outcomes and performance.'';
(4) by striking the items related to sections 305 and 306;
and
(5) by striking the items related to title VI.
Purpose
H.R. 803, the Supporting Knowledge and Investing in
Lifelong Skills (SKILLS) Act, amends the Workforce Investment
Act of 1998 to streamline federal workforce development
programs; strengthen the employer-driven workforce development
system; expand decision-making at the local level; improve
accountability and transparency; simplify reporting
requirements; encourage more training to meet in-demand job
opportunities; and improve adult education and vocational
rehabilitation.
Committee Action
The Committee on Education and the Workforce is committed
to developing a comprehensive and seamless statewide workforce
investment system that helps unemployed and underemployed
workers obtain the in-demand skills and employment services
necessary to find employment.
107TH CONGRESS
Hearings--Second Session
On Tuesday, March 12, 2002, the Committee on Education and
the Workforce Subcommittee on 21st Century Competitiveness held
a hearing in Washington, D.C. entitled, ``Welfare to Work: Ties
Between Temporary Assistance for Needy Families (TANF) and
Workforce Development.'' The purpose of the hearing was to
learn about the interaction between the TANF block grant and
the workforce investment system created through the Workforce
Investment Act (WIA). Testifying before the subcommittee were:
Dr. Sigurd Nilsen, Director of Health, Education, and Human
Services Division, U.S. General Accounting Office (now known as
the Government Accountability Office, GAO), Washington, D.C.;
Mr. John B. O'Reilly, Jr., Executive Director, Southeast
Michigan Community Alliance, Taylor, MI; Dr. Barbara Gault,
Director of Research, Institute for Women's Policy Research,
Washington, D.C.; Mr. Greg Gardner, Acting Director, Utah
Department of Workforce Services, Salt Lake City, UT; and Dr.
Erika Kates, Executive Director, Welfare Education Training
Access Coalition Center for Youth and Communities, Brandeis
University, Boston, MA.
On Thursday, September 12, 2002, the Committee on Education
and the Workforce Subcommittee on 21st Century Competitiveness
held a hearing in Washington, D.C. entitled, ``Implementation
of the Workforce Investment Act: Promising Practices in
Workforce Development.'' The purpose of the hearing was to
encourage and promote a seamless system that improves services
to job seekers and employers. Testifying before the
subcommittee were: Mr. Bruce Stenslie, Director, Ventura County
Workforce Investment Board, Ventura, CA; Ms. Diane D. Rath,
Chair, Texas Workforce Commission, Austin, TX; Mr. Danny
Wegman, President, Wegmans Food Markets, Rochester, NY; and Mr.
Timothy Barnicle, Co-Director, Workforce Development Program,
National Center on Education and the Economy, Washington, D.C.
108TH CONGRESS
Hearings--First Session
On Wednesday, February 12, 2003, the Committee on Education
and the Workforce held a hearing in Washington, D.C. entitled,
``Back to Work: The Administration's Plan for Economic Recovery
and the Workforce Investment Act.'' The purpose of the hearing
was to learn about the administration's proposal to speed the
country's economic recovery, a component of which included
Personal Reemployment Accounts that provide assistance to
unemployed Americans who are struggling to return to work, and
learn about the administration's proposal for the Workforce
Investment Act reauthorization. Testifying before the committee
were: the Honorable Elaine Chao, Secretary, U.S. Department of
Labor, Washington, D.C.; Mr. Kenneth Mayfield, President,
National Association of Counties, Washington, D.C.; and Dr.
Lawrence Mishel, President, Economic Policy Institute,
Washington, D.C.
On Tuesday, February 18, 2003, the Committee on Education
and the Workforce held a field hearing in Las Vegas, NV
entitled, ``H.R. 444, the Back to Work Incentive Act.'' The
purpose of the hearing was to examine and discuss the Back to
Work Incentive Act, which reflected the administration's
initial plan to create personal reemployment accounts to help
unemployed individuals return to work quickly. Testifying
before the committee were: Ms. Myla Florence, Director, Nevada
Department of Employment, Training, and Rehabilitation, Carson
City, NV; Mr. Ardell Galbreth, Deputy Board Manager, Southern
Nevada Workforce Investment Board, Las Vegas, NV; Mr. Robert
Brewer, Chair, Southern Nevada Workforce Investment Board, Las
Vegas, NV; and Ms. Debi Lindemenn, Employment Specialist
Supervisor, Department of Employment, Training, and
Rehabilitation, North Las Vegas, NV.
On Tuesday, March 4, 2003, the Committee on Education and
the Workforce Subcommittee on 21st Century Competitiveness held
a hearing in Washington, D.C. entitled, ``Improving Adult
Education for the 21st Century.'' The purpose of the hearing
was to learn about pertinent issues to be addressed in the
reauthorization of the Adult Education and Family Literacy Act,
Title II of the Workforce Investment Act. Testifying before the
subcommittee were: the Honorable Carol D'Amico, Assistant
Secretary for Vocational and Adult Education, U.S. Department
of Education, Washington, D.C.; Dr. Beth Buehlmann, Executive
Director, Center for Workforce Preparation for the U.S. Chamber
of Commerce, Washington, D.C.; Dr. Randy Whitfield, Associate
Vice President of Academic and Student Services, North Carolina
Community College System, Raleigh, NC; Ms. Ann-Marie Panella,
Director of Human Resources, MCS Industries, Inc., Easton, PA;
and Ms. Hermelinda Morales Herrera, Adult Education
Participant, Aurora, CO.
On Tuesday, March 11, 2003, the Committee on Education and
the Workforce Subcommittee on 21st Century Competitiveness held
a hearing in Washington, D.C. entitled, ``Workforce Investment
and Rehabilitation Acts: Improving Services and Empowering
Individuals.'' The purpose of the hearing was to learn about
methods to strengthen and improve current programs and results
for job seekers and employers. Testifying before the
subcommittee were: the Honorable Emily DeRocco, Assistant
Secretary for Employment and Training, U.S. Department of
Labor, Washington, D.C.; the Honorable Robert Pasternack,
Assistant Secretary for Special Education and Rehabilitative
Services, U.S. Department of Education, Washington, D.C.; Mr.
Thomas J. White, President and Chief Executive Officer, Greater
Durham Chamber of Commerce, Durham, NC; Mr. Steven Savner,
Senior Staff Attorney, Center for Law and Social Policy,
Washington, D.C.; Mr. John Twomey, President, National
Workforce Association, Washington, D.C.; and Ms. Bettie Shaw-
Henderson, District Manager, Michigan Department of Vocational
Rehabilitation, Grand Rapids, MI.
Legislative Action--First Session
On January 29, 2003, Rep. Jon Porter (R-NV) and 21st
Century Competitiveness Subcommittee Chairman Howard P.
``Buck'' McKeon (R-CA) introduced H.R. 444, the Back to Work
Incentive Act, a bill to amend the Workforce Investment Act of
1998 to establish a Personal Reemployment Accounts grant
program to assist Americans in returning to work.
On February 26, 2003, the Subcommittee on 21st Century
Competitiveness considered H.R. 444 in legislative session and
reported it favorably, as amended, to the Committee on
Education and the Workforce by a vote of 15-12.
The subcommittee considered and adopted the following
amendment to H.R. 444:
Subcommittee Chairman Howard P. ``Buck'' McKeon (R-CA)
offered an amendment in the nature of a substitute to: (1) make
clear that the Back to Work accounts would be administered
through the local one-stop delivery system under the direction
of local workforce investment boards; (2) require local boards
to submit a plan to the state, consistent with the state plan,
in order to receive an allocation to administer the accounts;
(3) require states and local areas, through their respective
plans, to specify safeguards to ensure the quality and
integrity of services and providers, consistent with the
purpose of providing flexibility and choice to individuals; (4)
require the individual accepting a Back to Work account to
attest that he or she was given the option to develop a
personal reemployment plan; and (5) allow states to make
eligible individuals who have exhausted their unemployment
compensation benefits within the previous 180 days, instead of
the 90 day limit in the original bill. The amendment was
adopted by a voice vote.
The subcommittee also considered the following amendment to
H.R. 444, which was not adopted:
Reps. Dale Kildee (D-MI) and David Wu (D-OR) offered an
amendment to strike all language after the enacting clause and
insert language that allocates funds to each state to provide
emergency employment accounts to eligible individuals. The
funds in these accounts would be used in the same manner as
unemployment compensation benefits. The amendment failed by a
vote of 11-13.
On March 5, 2003, the Committee on Education and the
Workforce considered H.R. 444 in legislative session and
reported it favorably, as amended, to the House of
Representatives by a vote of 23-22, with one member voting
present.
The committee considered and adopted the following
amendments to H.R. 444:
Subcommittee Chairman Howard P. ``Buck'' McKeon
(R-CA) offered an amendment in the nature of a substitute to:
(1) change the calculation of the ``look-back'' period for
eligibility determinations from days to weeks to be consistent
with the terminology used in the unemployment compensation
program; (2) clarify that the 40 percent retention bonus is
provided after 26 weeks of employment retention; and (3) make
other technical improvements. The amendment was adopted by a
voice vote.
Rep. Pete Hoekstra (R-MI) offered an amendment to
make those individuals whose unemployment can be attributed in
substantial part to unfair competition from Federal Prison
Industries, Inc., eligible to receive Back to Work accounts,
subject to state criteria and prioritization. The amendment was
adopted by a voice vote.
The committee also considered the following amendments to
H.R. 444, which were not adopted:
Rep. Dale Kildee (D-MI) offered an amendment to
strike all language after the enacting clause and insert
language that allocates funds to each state to provide
emergency employment accounts to eligible individuals. The
funds in these accounts would be used in the same manner as
unemployment compensation benefits. The amendment failed by a
vote of 20-24.
Rep. David Wu (D-OR) offered an amendment to
change the amount of a Back to Work account from ``not
exceeding $3,000'' to $3,000. Additionally, the amendment would
have struck subparagraph (C) of section 135F(a)(3), which
prohibits recipients of the account from receiving intensive,
supportive, or training services funded under WIA except on a
fee-for-services basis for one year following the establishment
of the account. The amendment failed by a voice vote.
Rep. Donald Payne (D-NJ) offered an amendment that
was not germane and ruled out of order by the Chair.
Rep. Donald Payne (D-NJ) offered an amendment to
prohibit the account holder from buying services from providers
who fall in the exemptions category of current civil rights
protections. Examples of exemptions include an employer
providing training services who has less than 10 employees, or
a faith based organization offering childcare. The amendment
failed by a vote of 20-22.
Rep. Betty McCollum (D-MN) offered an amendment to
make individuals whose unemployment from the textile industries
attributed in substantial part to unfair competition pursuant
to basing agreements eligible to receive Back to Work accounts.
The amendment failed by a vote of 20-23.
Rep. Denise Majette (D-GA) offered and withdrew an
amendment to specify that intensive services must be provided
through the one-stop delivery system, and that a provider of
training services must meet the requirements of section
122(a)(2) of the Workforce Investment Act.
On March 13, 2003, 21st Century Competitiveness
Subcommittee Chairman Howard P. ``Buck'' McKeon (R-CA) and
Chairman John Boehner (R-OH) introduced H.R. 1261, the
Workforce Reinvestment and Adult Education Act of 2003, a bill
to amend the Workforce Investment Act of 1998 to provide for
the nation's One-Stop workforce development system. The
legislation also contains the Adult Basic Education Skills Act,
which reauthorizes state programs for adult education, and
reauthorizes the Rehabilitation Act of 1973, which provides
services to help individuals with disabilities become
employable and achieve full integration into society.
On March 20, 2003, the Subcommittee on 21st Century
Competitiveness considered H.R. 1261 in legislative session and
reported it favorably, as amended, to the Committee on
Education and the Workforce by a vote of 15-12.
The subcommittee considered and adopted the following
amendments to H.R. 1261:
Subcommittee Chairman Howard P. ``Buck'' McKeon
(R-CA) offered an amendment in the nature of a substitute to
clarify the distribution of adult funding within states, allow
some youth funding to be used to serve in-school youth, address
the problem of determining system expenditures, add adult
education incentive grants, reinstate the National Institute
for Literacy, and make other technical changes. The amendment
was adopted by a voice vote.
Rep. Johnny Isakson (R-GA) offered an amendment to
make a technical change. The amendment was adopted by a voice
vote.
The subcommittee also considered the following amendments
to H.R. 1261, which were not adopted:
Rep. Dale Kildee (D-MI) offered an amendment to
strike the Back to Work Accounts and authorize Emergency
Employment Accounts. The amendment failed by a vote of 10-13.
Rep. Rush Holt (D-NJ) offered an amendment to
increase the authorization for dislocated workers. The
amendment failed by a vote of 11-15.
Rep. Dale Kildee (D-MI) offered an amendment to
strike the Back to Work Accounts and authorize a medical and
safety first responders grant program. The amendment failed by
a vote of 10-14.
Rep. John Tierney (D-MA) offered and withdrew an
amendment to reinstate the Employment Service program
authorized under the Wagner-Peyser Act.
Rep. John Tierney (D-MA) offered and withdrew an
amendment to strike the youth activities and youth challenge
provisions that focus on out-of-school youth.
Rep. Donald Payne (D-NJ) offered and withdrew an
amendment to require that service providers are subject to
anti-discrimination laws.
On March 27, 2003, the Committee on Education and the
Workforce considered H.R. 1261 in legislative session and
reported it favorably, as amended, to the House of
Representatives by a vote of 26-21.
The committee considered and adopted the following
amendments to H.R. 1261:
Subcommittee Chairman Howard P. ``Buck'' McKeon
(R-CA) offered an amendment in the nature of a substitute to
ensure confidentiality of student records, allow states to
measure customer satisfaction, amend the provisions relating to
in-school youth, add Family Literacy to the adult education
program, reauthorize the Helen Keller National Center Act, and
make additional technical changes. The amendment also removes
Back to Work Accounts from the bill, which had already been
approved by the full committee as a stand-alone bill (H.R.
444). The Back to Work Accounts were temporarily removed
pending negotiations on the FY 2004 Budget Resolution. The
amendment was adopted by a voice vote.
Rep. Johnny Isakson (R-GA) offered an amendment to
make a technical change. The amendment was adopted, en bloc, by
a voice vote.
Rep. Danny Davis (D-IL) offered an amendment to
require states to specify how they would address the needs of
ex-offenders. The amendment was adopted by a voice vote.
Rep. Tom Osborne (R-NE) offered an amendment to
provide that the Commissioner of Rehabilitation Services
Administration will no longer be a presidential appointment.
The amendment was adopted by a vote of 24-23.
Rep. Lynn Woolsey (D-CA) offered an amendment to
allow states to provide programs for displaced homemakers using
statewide employment and training funds. The amendment was
adopted by a voice vote.
Rep. Betty McCollum (D-MN) offered an amendment to
authorize the secretary to provide demonstration retention
grants to qualified job training programs upon placement or
retention of a low-income individual. The amendment was adopted
by a voice vote.
Rep. Rob Andrews (D-NJ) offered an amendment to
allow entrepreneurial training to eligible individuals. The
amendment was adopted by a voice vote.
Rep. Ron Kind (D-WI) offered an amendment to
require states to specify how they will serve the employment
and training needs of dislocated farmers, ranchers, and
fishermen. The amendment was adopted by a voice vote.
Rep. Carolyn McCarthy (D-NY) offered an amendment
to include a `hold harmless' funding provision at 2003 levels
pending amended allocation levels. The amendment was adopted by
a voice vote.
The committee also considered the following amendments to
H.R. 1261, which were not adopted:
Rep. Dale Kildee (D-MI) offered an amendment in
the nature of a substitute. The amendment failed by a vote of
16-25.
Rep. Dale Kildee (D-MI) offered an amendment to
use the Back to Work Account fund to extend unemployment
benefits. The amendment failed by a vote of 19-19.
Rep. Tim Ryan (D-OH) offered an amendment to
create a new grant program for medical and safety occupations.
The amendment failed by a vote of 15-25.
Rep. Chris Van Hollen (D-MD) offered an amendment
to eliminate faith-based organizations as eligible participants
under the Workforce Investment Act. The amendment failed by a
vote of 18-22.
Rep. Rush Holt (D-NJ) offered an amendment to
increase the funding authorization for dislocated workers. The
amendment failed by a vote of 19-23.
Rep. John Tierney (D-MA) offered an amendment to
require separate funding streams for individual workforce
development programs. The amendment failed by a vote of 20-24.
Rep. Danny Davis (D-IL) offered an amendment to
strike provisions making the Commissioner of Rehabilitation
Services a secretarial appointment instead of a presidential
appointment. The amendment failed by a vote of 23-25.
Rep. Rob Andrews (D-NJ) offered an amendment to
count as a success the placement of clients into non-integrated
workplace settings. The amendment failed by a vote of 6-37,
with 4 voting present.
Rep. John Tierney (D-MA) offered an amendment
regarding funding allocations for in-school and out-of-school
youth. The amendment failed by a vote of 21-26.
Rep. Danny Davis (D-IL) offered an amendment to
strike provisions making the Commissioner of Rehabilitation
Services a secretarial appointment instead of a presidential
appointment. The amendment failed by a vote of 23-25.
Rep. Carolyn McCarthy (D-NY) offered and withdrew
an amendment to ensure states shall not receive a funding
allotment less than what they received in 2003.
Rep. Ron Kind (D-WI) offered and withdrew an
amendment to require states to describe how they will serve
farmers in their state plan.
On May 8, 2003, the House of Representatives passed H.R.
1261 by a vote of 220-204.
On November 14, 2003, the Senate passed a substitute
version of H.R. 1261 by unanimous consent.
On June 3, 2004, the House of Representatives appointed
conferees to resolve differences with the Senate on H.R. 1261.
The Senate did not appoint conferees to resolve differences
with the House on H.R. 1261.
109TH CONGRESS
Hearing--First Session
On July 12, 2005, the Committee on Education and the
Workforce Subcommittee on Select Education held a hearing in
Washington, D.C. entitled, ``Coordination Among Federal Youth
Development Programs.'' The purpose of the hearing was to
examine federal youth development programs that help
disadvantaged youth develop the academic, social, and
citizenship skills needed for a successful future. Testifying
before the subcommittee were: Dr. Michael O'Grady, Assistant
Secretary for Planning and Evaluation, U.S. Department of
Health and Human Services, Washington, D.C.; Mr. Richard Moore,
Criminal and Juvenile Justice Planning Division, Iowa
Department of Human Rights, Des Moines, IA; Ms. Marguerite
Sallee, President and Chief Executive Officer, America's
Promise--The Alliance for Youth, Washington, D.C.; Ms. Laura
Shubilla, President, Philadelphia Youth Network, Philadelphia,
PA; and Dr. Laurence Steinberg, Director, MacArthur Foundation
Research Network on Adolescent Development and Juvenile
Justice, Temple University, Philadelphia, PA.
Hearing--Second Session
On April 6, 2006, the Committee on Education and the
Workforce held a hearing in Washington, D.C. entitled,
``Building America's Competitiveness: Examining What is Needed
to Compete in a Global Economy.'' The purpose of the hearing
was to examine methods for addressing the changing needs of the
workforce. Testifying before the committee were: the Honorable
Elaine Chao, Secretary, U.S. Department of Labor, Washington,
D.C.; the Honorable Margaret Spellings, Secretary, U.S.
Department of Education, Washington, D.C.; Mr. Jim Jarrett,
Vice President, Worldwide Government Affairs, Intel
Corporation, Santa Clara, CA; Mr. Wes Jurey, President and
Chief Executive Officer, Arlington Chamber of Commerce,
Arlington, TX; and Dr. James Simons, President, Renaissance
Technologies Corporation, New York, NY.
Legislative Action--First Session
On January 4, 2005, 21st Century Competitiveness
Subcommittee Chairman Howard P. ``Buck'' McKeon (R-CA) and
Chairman John Boehner (R-OH) introduced H.R. 27, the Job
Training Improvement Act of 2005, a bill to amend the Workforce
Investment Act of 1998 to provide for the nation's One-Stop
workforce development system. The legislation also contains the
Adult Basic Education Skills Act, which reauthorizes state
programs for adult education, and provisions reauthorizing the
Rehabilitation Act of 1973, which provides services to help
individuals with disabilities become employable and achieve
full integration into society. The bill is substantially the
same as H.R. 1261, which was considered by the House in the
108th Congress.
On February 9, 2005, the Subcommittee on 21st Century
Competitiveness considered H.R. 27 in legislative session and
reported it favorably, as amended, to the Committee on
Education and the Workforce by a vote of 18-15.
The subcommittee considered and adopted the following
amendments to H.R. 27:
Subcommittee Chairman Howard P. ``Buck'' McKeon
(R-CA) offered an amendment in the nature of a substitute that
creates new authority within the demonstration section of WIA
to authorize the president's proposal for community-based job
training grants; defines administrative costs; makes projects
that focus on employment in advanced manufacturing allowable
pilot projects; removes the calculation of program efficiency
as a core indicator of performance; clarifies that in order to
be eligible for WIA youth services, an out-of-school youth who
has finished high school and has low basic skills must not be
attending any school; allows services for youth during the
school day if youth are participating in programs that have
demonstrated effectiveness in high school youth achieving
diplomas; reinstates the business and community liaison for Job
Corps centers; and makes other technical and conforming
changes. The amendment was adopted by a voice vote.
Rep. Luis Fortuno (R-PR) offered an amendment that
requires states to describe in their plans how they will serve
individuals with limited English proficiency and allows local
areas to offer training that integrates occupational skills
training with English language acquisition. The amendment was
adopted by a voice vote.
Rep. Ron Kind (D-WI) offered an amendment that
allows the secretary, through available demonstration funding,
to award competitive grants to train real-time writers. The
amendment was adopted by a voice vote.
Rep. Rush Holt (D-NJ) offered an amendment that
requires the secretary to submit states' quarterly reports to
the House Committee on Education and the Workforce and the
Senate Committee on Health, Education, Labor, and Pensions. The
amendment was adopted by a voice vote.
The subcommittee also considered the following amendments
to H.R. 27, which were not adopted:
Rep. Bobby Scott (D-VA) offered an amendment to
preserve the religious non-discrimination requirement. The
amendment failed by a vote of 13-19.
Rep. Dale Kildee (D-MI) offered an amendment to
create a separate funding stream for One-Stop Career Center
administrative costs. The amendment failed by a vote of 14-18.
Rep. Rush Holt (D-NJ) offered an amendment to
create an additional funding authorization for dislocated
workers. The amendment failed by a vote of 15-18.
Rep. Dale Kildee (D-MI) offered an amendment to
strike the personal reemployment accounts pilot program. The
amendment failed by a vote of 15-18.
Rep. John Tierney (D-MA) offered an amendment to
strike block granting and funding restructuring provisions. The
amendment failed by a vote of 15-18.
Rep. John Tierney (D-MA) offered an amendment to
preserve youth opportunity grants. The amendment failed by a
vote of 15-18.
Rep. John Tierney (D-MA) offered an amendment to
preserve the mandated One-Stop Career Center partners on local
workforce investment boards. The amendment failed by a voice
vote.
Rep. John Tierney (D-MA) offered an amendment to
alter the sequence of services. The amendment failed by a vote
of 15-18.
Rep. Rush Holt (D-NJ) offered and withdrew an
amendment to add a use of funds to purchase computer technology
for workforce development.
On February 16 and 17, 2005, the Committee on Education and
the Workforce considered H.R. 27 in legislative session and
reported it favorably, as amended, to the House of
Representatives by a vote of 26-20.
The committee considered and adopted the following
amendments to H.R. 27:
Subcommittee Chairman Howard P. ``Buck'' McKeon
(R-CA) offered an amendment in the nature of a substitute that
authorizes $211 million for WIA pilot and demonstration
authority (of which $125 million could be used for the
president's community-based job training grants) and also
authorizes the secretary to use up to $125 million more from
WIA national reserve funds to fund community-based job training
grants; clarifies that community colleges are the only training
providers eligible to participate in community-based job
training grants; allows governors to consider whether training
providers allow participants to attain a certification,
credential, or mastery as they develop their criteria for
determining eligible providers of training; authorizes the
American Indian Consortium to receive funds under the Client
Assistance Program to provide protection and advocacy services
to Native Americans; allows programs under the Protection and
Advocacy of Individual Rights program to retain program income
generated by the system for up to one additional year after it
was generated; requires the state vocational rehabilitation
agency to coordinate with the lead agencies established under
the Assistive Technology Act of 1998; allows state vocational
rehabilitation agencies to spend funds to support activities
authorized under the Assistive Technology Act of 1998; and
makes other technical and conforming changes. The amendment was
adopted by a voice vote.
Rep. Thelma Drake (R-VA) offered an amendment to
require state and local performance indicators to be adjusted
based on the number of veterans with disabilities being served.
The amendment was adopted by a voice vote.
Rep. Rob Andrews (D-NJ) offered an amendment to
allow local areas to provide information regarding the
availability of micro-credit loans when providing
entrepreneurship training. The amendment was adopted by a voice
vote.
Rep. Rob Andrews (D-NJ) offered an amendment to
allow the secretary to award competitive grants to business
partnerships using pilot and demonstration funding. The
amendment was adopted by a voice vote.
The committee also considered the following amendments to
H.R. 27, which were not adopted:
Rep. Rush Holt (D-NJ) offered an amendment to
increase the funding authorization for Title I of the Act. The
amendment failed by a vote of 21-22.
Rep. Tim Ryan (D-OH) offered an amendment to
require states to set aside funds for an early intervention
program for workers affected by offshoring. The amendment
failed by a vote of 19-23.
Rep. Major Owens (D-NY) offered an amendment to
require the secretary to set up an interstate transfer
demonstration program. The amendment failed by a vote of 12-17.
Rep. Bobby Scott (D-VA) offered an amendment to
preserve the religious non-discrimination requirement. The
amendment failed by a vote of 19-23.
Rep. Chris Van Hollen (D-MD) offered an amendment
to require the secretary to collect specific data on women
workers. The amendment failed by a vote of 16-23.
Rep. Carolyn McCarthy (D-NY) offered an amendment
to require a hiring policy statement for positions funded
through the Workforce Investment Act. The amendment failed by a
vote of 17-27.
Rep. Dale Kildee (D-MI) offered an amendment to
create a separate funding stream for One-Stop Career Center
administrative costs. The amendment failed by a vote of 19-21.
Rep. Lynn Woolsey (D-CA) offered an amendment to
require states to specifically describe youth workforce
development services in their state plan. The amendment failed,
en bloc, by a vote of 19-21.
Rep. Lynn Woolsey (D-CA) offered an amendment to
allow local areas to use up to 10 percent of local funding to
serve displaced homemakers or training women for nontraditional
employment. The amendment failed, en bloc, by a vote of 19-21.
Rep. Dale Kildee (D-MI) offered an amendment to
strike the personal reemployment accounts pilot program. The
amendment failed by a vote of 19-21.
Rep. David Wu (D-OR) offered and withdrew an
amendment to restructure the youth grants program.
Rep. John Tierney (D-MA) offered an amendment to
strike the block granting and funding restructuring provisions.
The amendment failed by a voice vote.
Rep. Carolyn McCarthy (D-NY) offered and withdrew
an amendment to create a special rule for states with policy-
making authority that is independent of the authority of the
governor.
Rep. Ruben Hinojosa (D-TX) offered and withdrew an
amendment to further disaggregate reporting data.
Rep. John Tierney (D-MA) offered an amendment to
preserve the Youth Opportunity Grants program. The amendment
failed by a voice vote.
Rep. Rob Andrews (D-NJ) offered an amendment to
authorize a new business incubator pilot program. The amendment
failed by a voice vote.
On March 2, 2005, the House of Representatives passed H.R.
27 by a vote of 224-200.
On June 29, 2006, the Senate passed a substitute version of
H.R. 27 by unanimous consent.
Neither the House nor the Senate appointed conferees to
resolve differences on H.R. 27.
110TH CONGRESS
Hearings--First Session
On March 26, 2007, the Committee on Education and Labor
held a hearing in Washington, D.C. entitled, ``How Effective
are Existing Programs in Helping Workers Impacted by
International Trade?'' The purpose of the hearing was to
examine the effectiveness of federal programs intended to
assist American workers affected by outsourcing, specifically
the Trade Adjustment Assistance program. Testifying before the
committee were: Mr. David Brevard, Former Employee, Maytag
Refrigeration Products, Galesburg, IL; Mr. Stan Dorn, Senior
Research Assistant, Urban Institute, Washington, D.C.; Mr.
Bruce Herman, Executive Director, National Employment Law
Project, New York, NY; Dr. Lael Brainard, Vice President and
Director, Global Economy Development Center, Brookings
Institute, Washington, D.C.; Dr. Tim Alford, Director, Alabama
Office of Workforce Development, Montgomery, AL; and Ms. Thea
Lee, Policy Director and Chief International Economist, AFL-
CIO, Washington, D.C..
On June 28, 2007, the Committee on Education and Labor
Subcommittee on Higher Education, Lifelong Learning, and
Competitiveness held a hearing in Washington, D.C. entitled,
``Workforce Investment Act: Recommendations to Improve the
Effectiveness of Job Training.'' The purpose of the hearing was
to focus on the priorities for the reauthorization of the
Workforce Investment Act of 1998. Testifying before the
subcommittee were: Mr. Bruce Ferguson, Jr., President and Chief
Executive Officer, WorkSource, Fleming Island, FL; Mr. Wes
Jurey, President and Chief Executive Office, Arlington Chamber
of Commerce, testifying on behalf of the U.S. Chamber of
Commerce, Arlington, TX; Dr. Sigurd Nilsen, Director of
Education, Workforce, and Income Security Issues, U.S.
Government Accountability Office (GAO), Washington, D.C.; Dr.
Rachel Gragg, Federal Policy Director, The Workforce Alliance,
Washington, D.C.; Ms. Evelyn Ganzglass, Director, Workforce
Development, Center for Law and Social Policy, Washington,
D.C.; and Dr. Sandra Baxter, Director, National Institute for
Literacy, Washington, D.C.
On July 26, 2007, the Committee on Education and Labor
Subcommittee on Higher Education, Lifelong Learning, and
Competitiveness held a hearing in Washington, D.C. entitled,
``The Workforce Investment Act: Ideas to Improve the Workforce
Development System.'' The purpose of the hearing was again to
focus on priorities for the reauthorization of the Workforce
Investment Act of 1998. Testifying before the subcommittee
were: Ms. Beth Butler, Vice President, Employment Compliance,
Wachovia Corporate Headquarters, Charlotte, NC; Mr. John
Twomey, Executive Director, New York Association of Training
and Employment Professionals, Albany, NY; Mr. Charles Ware,
Chief Executive Officer, Wyoming Contractors Association,
Cheyenne, WY; Mr. Mason Petit, Employment Counselor, Washington
State Employment Security Department, Seattle, WA; Ms. Kathleen
Randolph, President, Partners for Workforce Solutions, Fort
Wayne, IN; and Mr. Joseph Carbone, President and Chief
Executive Officer, Workplace Incorporated, Southwestern
Connecticut's Workforce Investment Board, Bridgeport, CT.
Hearing--Second Session
On May 6, 2008, the Committee on Education and Labor held a
hearing in Washington, D.C. entitled, ``Do Federal Programs
Ensure U.S. Workers Are Recruited First Before Employers Hire
from Abroad?'' The purpose of the hearing was to examine
whether federal programs ensure U.S. workers are recruited
before employers hire from abroad. Testifying before the
committee were: the Honorable Leon Sequeira, Assistant
Secretary for Policy, U.S. Department of Labor, Washington,
D.C.; Dr. William Carlson, Administrator, Office of Foreign
Labor Certification, Employment and Training Administration,
U.S. Department of Labor, Washington, D.C.; Mr. Bruce
Goldstein, Executive Director, Farmworker Justice, Washington,
D.C.; Mr. Javier Riojas, Attorney and Branch Manager, Texas Rio
Grande Legal Aid, Eagle Pass, TX; Mr. John Young, President,
National Council of Agriculture Employers, Vienna, VA; Mr.
Andrew Sum, Professor of Economics and Director, Center for
Labor Market Studies, Northeastern University, Boston, MA; and
Mr. Bill Beardall, Executive Director, Equal Justice Center,
Austin, TX.
Legislative Action--First Session
On June 25, 2007, Rep. Hilda Solis (D-CA) introduced H.R.
2847, the Green Jobs Act of 2007. The bill amends the Workforce
Investment Act of 1998 to direct the secretary to: (1)
establish an energy efficiency and renewable energy worker
training program that targets certain persons; and (2)
establish a national research program to collect and analyze
labor market data to track workforce trends resulting from
energy-related initiatives under the bill.
On June 27, 2007, the Committee on Education and Labor
considered H.R. 2847 in legislative session and reported it
favorably, as amended, to the House of Representatives by a
vote of 26-18, with one member voting present.
The committee considered and adopted the following
amendments to H.R. 2847:
Rep. John Tierney (D-MA) offered an amendment that
contained technical modifications. The amendment was adopted by
a voice vote.
Rep. Dennis Kucinich (D-OH) offered an amendment
to add ``the energy efficiency assessment industry'' as an
eligible industry. The amendment was adopted by a voice vote.
Rep. Vernon Ehlers (R-MI) offered an amendment to
add ``manufacturers that produce sustainable products using
environmentally sustainable processes and materials'' as an
eligible industry. The amendment was adopted by a voice vote.
Rep. Virginia Foxx (R-NC) offered an amendment to
require the secretary to apply performance measures to the
grants administered under this bill. The amendment was adopted
by a voice vote.
The committee also considered the following amendments to
H.R. 2847, which were not adopted:
Rep. Howard P. ``Buck'' McKeon (R-CA) offered an
amendment in the nature of a substitute to strike the creation
of the new program and replace it with specific authority for
state and local workforce investment boards to carry out worker
training programs focusing on renewable energy and energy
efficiency. The amendment was defeated by a vote of 20-25.
Rep. Charles Boustany (R-LA) offered an amendment
to sunset the program created in the Green Jobs Act after five
years. The amendment was defeated by a vote of 18-26.
Rep. Tom Price (R-GA) offered an amendment to
apply Pay-as-you-Go requirements to H.R. 2847. The amendment
was defeated by a vote of 20-25.
Rep. Howard P. ``Buck'' McKeon (R-CA) offered an
amendment to add ``the nuclear and clean coal to liquids
industries'' to the list of eligible industries. The amendment
was defeated by a vote of 20-25.
Rep. Howard P. ``Buck'' McKeon (R-CA) offered an
amendment to strike priority to ``formerly incarcerated,
adjudicated, non-violent offenders.'' The amendment was
defeated by a vote of 20-26.
Though H.R. 2847 was not considered by the House of
Representatives, its provisions were included in H.R. 3221, the
Housing and Economic Recovery Act of 2008, which was signed
into law on July 30, 2008.
111TH CONGRESS
Hearings--First Session
On February 12, 2009, the Committee on Education and Labor
Subcommittee on Higher Education, Lifelong Learning, and
Competiveness held a hearing in Washington, D.C. entitled,
``New Innovations and Best Practices under the Workforce
Investment Act (Part I).'' The purpose of the hearing was to
focus on ideas for improving the Workforce Investment Act of
1998. Testifying before the subcommittee were: Ms. Sherry L.
Johnson, Associate Director, Lincoln Trail Area Development
District, Elizabethtown, KY; Ms. Karen R. Elzey, Vice President
and Executive Director, Institute for a Competitive Workforce
(ICW), U.S. Chamber of Commerce, Washington, D.C.; Ms. Bonnie
Gonzalez, Chief Executive Officer, Workforce Solutions,
McAllen, TX; Mr. Morton Bahr, National Coalition for Adult
Literacy, Washington, D.C.; Mr. Stephen Wooderson,
Administrator, Iowa Vocational Rehabilitation Services, Des
Moines, IA; and Mr. Bill Camp, Executive Secretary, Sacramento
Central Labor Council, Sacramento, CA.
On February 26, 2009, the Committee on Education and Labor
Subcommittee on Higher Education, Lifelong Learning, and
Competiveness held a hearing in Washington, D.C. entitled,
``New Innovations and Best Practices under the Workforce
Investment Act (Part II).'' The purpose of the hearing was to
focus on ideas for improving the Workforce Investment Act of
1998. Testifying before the subcommittee were: Mr. John
Morales, President, National Workforce Association, and
Executive Director, Yuma Private Industry Council (YPIC), Yuma,
AZ; Ms. Cheryl Keenan, Director, Division of Adult Education
and Literacy, Office of Vocational and Adult Education, U.S.
Department of Education, Washington, D.C.; Mr. George Scott,
Director of Education, Workforce, and Income Security Issues,
U.S. Government Accountability Office (GAO), Washington, D.C.;
Mr. Bob Lanter, Legislative Committee Chairman, California
Workforce Association and Executive Director, Contra Costa
Workforce Development Board, Concord, CA; Ms. Sandi Vito,
Acting Secretary, Department of Labor and Industry, State of
Pennsylvania, on behalf of National Governor's Association,
Harrisburg, PA; Mr. Kevin Smith, Executive Director and Chief
Operating Officer, Literacy New York Inc., Buffalo, NY; and Ms.
Charissa Raynor, Executive Director, Service Employees
International Union (SEIU) Healthcare NW Training Partnership,
Federal Way, WA.
On March 23, 2009, the Committee on Education and Labor
Subcommittee on Higher Education, Lifelong Learning, and
Competiveness held a field hearing in Albany, NY entitled,
``New Innovations and Best Practices under the Workforce
Investment Act (Part III).'' The purpose of the hearing was to
examine best practices being implemented at the state and local
levels under the Workforce Investment Act of 1998. Testifying
before the subcommittee were: Mr. Mario Musolino, Executive
Deputy Commissioner, New York State Department of Labor,
Albany, NY; Ms. Gail Breen, Executive Director, Fulton-
Montgomery-Schoharie Counties Workforce Development Board,
Inc., Amsterdam, NY; Mr. Thomas Quick, Senior Human Resource
Manager, General Electric--Power and Water, Schenectady, NY;
Mr. Joseph Sarubbi, Executive Director, Tec-Smart, Hudson
Valley Community College, Malta, NY; and Ms. Nanine Meiklejohn,
Senior Legislative Representative, American Federation of
State, County, and Municipal Employees (AFSCME), Washington,
D.C.
On March 31, 2009, the Committee on Education and Labor
Subcommittee on Workforce Protections held a hearing in
Washington, D.C. entitled, ``Green Jobs and their Role in our
Economic Recovery.'' The purpose of the hearing was to examine
the value of green jobs in fostering an American economic
recovery. Testifying before the subcommittee were: Dr. Robin
Roy, Vice President of Projects and Policy, Serious Materials,
Sunnyvale, CA; Ms. Jill Sherman, Senior Development Manager at
Gerding Edlen Development, Portland, OR; Dr. William Bogart,
Dean of Academic Affairs and Professor of Economics, York
College, York, PA; Mr. Jerome Ringo, President, Apollo
Alliance, San Francisco, CA; Dr. Clint Wolfe, Executive
Director, Citizens for Nuclear Technology Awareness, Aiken, SC;
and Ms. Kathy Krepcio, Executive Director, John J. Heldrich
Center for Workforce Development, Rutgers University, Newark,
NJ.
On May 5, 2009, the Committee on Education and Labor
Subcommittee on Higher Education, Lifelong Learning, and
Competitiveness held a hearing in Washington, D.C. entitled,
``New Innovations and Best Practices under the Workforce
Investment Act (Part IV).'' The purpose of the hearing was to
focus on ideas for improving the Adult Education and Family
Literacy Act, which is included as Title II of the Workforce
Investment Act of 1998. Testifying before the subcommittee
were: Ms. Gretchen Wilson, Country Music Singer, Lebanon, TN;
Mr. Marty Finsterbusch, Executive Director, Voice of Adult
Learners United to Educate (VALUE), Media, PA; Mr. David L.
Bere, President, Dollar General, Goodlettsville, TN; Ms. Cathy
Cooper, Policy Deputy for Basic Skills, Washington State Board
for Community and Technical Colleges, Olympia, WA; Ms. Roberta
Lanterman, Program Director, Long Beach School for Adults, Long
Beach, CA; Dr. Donna Kinerney, Instructional Dean for Adult
English for Speakers of Other Languages (ESOL) and Literacy
Programs, Montgomery College, Rockville, MD; and Dr. Steve
Reder, Professor of Applied Linguistics, Portland State
University, Portland, OR.
On May 29, 2009, the Committee on Education and Labor
Subcommittee on Higher Education, Lifelong Learning, and
Competiveness held a field hearing in Henderson, NV entitled,
``New Innovations and Best Practices under the Workforce
Investment Act (Part V).'' The purpose of the hearing was to
examine best practices being implemented at the state and local
levels under the Workforce Investment Act of 1998. Testifying
before the subcommittee were: Mr. Brian Patchett, President and
Chief Executive Officer, Easter Seals of Southern Nevada, Las
Vegas, NV; Mr. Chris Brooks, Director of Renewable Energy,
Bombard Electric, Las Vegas, NV; Ms. Chanda Cook, Director of
Community Initiatives, Nevada Public Education Foundation, Las
Vegas, NV; and Ms. Rebecca Metty-Burns, Interim Director,
Workforce and Economic Division, College of Southern Nevada,
Las Vegas, NV.
Hearing--Second Session
On February 2, 2010, the Committee on Education and Labor
held a hearing in Washington, D.C. entitled, ``Strengthening
the Economy and Improving the Lives of American Workers.'' The
purpose of the hearing was to examine the administration's
policies for getting Americans back to work. Testifying before
the committee was the Honorable Hilda Solis, Secretary, U.S.
Department of Labor, Washington, D.C.
112TH CONGRESS
Hearings--First Session
On February 16, 2011, the Committee on Education and the
Workforce held a hearing in Washington, D.C. entitled,
``Policies and Priorities at the U.S. Department of Labor.''
The purpose of the hearing was to discuss the fiscal year 2012
budget proposal for the Department of Labor. Testifying before
the committee was the Honorable Hilda Solis, Secretary, U.S.
Department of Labor, Washington, D.C.
On April 6, 2011, the Committee on Education and the
Workforce held a hearing in Washington, D.C. entitled,
``Streamlining Federal Education and Workforce Programs: A Look
at the GAO Report on Government Waste.'' The purpose of the
hearing was to discuss the GAO report entitled, Opportunities
to Reduce Potential Duplication in Government Programs, Save
Tax Dollars, and Enhance Revenue, which examined overlap,
fragmentation, and duplication of federal programs. Testifying
before the committee was the Honorable Gene L. Dodaro,
Comptroller General, U.S. Government Accountability Office
(GAO), Washington, D.C.
On May 11, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C. entitled,
``Removing Inefficiencies in the Nation's Job Training
Programs.'' The purpose of the hearing was to highlight the
number of workforce development programs administered across
the federal government, many of which are overlapping,
duplicative, and target similar populations, and discuss the
need to streamline these programs. Testifying before the
subcommittee were: Dr. Andrew Sherrill, Director for Education,
Workforce, and Income Security, U.S. Government Accountability
Office (GAO), Washington, D.C.; Mr. Larry Temple, Executive
Director, Texas Workforce Commission, Austin, TX; Mr. Bert
``Van'' Royal, Owner/Broker, Magnolia Point Reality, K & V
Investment Group, Inc., Green Cove Springs, FL; and Ms. Evelyn
Ganzglass, Director of Workforce Development, CLASP,
Washington, D.C.
On August 30, 2011, the Committee on Education and the
Workforce held a field hearing in Las Vegas, NV entitled,
``Examining Local Solutions to Strengthen Federal Job Training
Programs.'' The purpose of the hearing was to highlight the
work being done by local businesses and workforce development
professionals to respond to the needs of the local economy and
workforce. Testifying before the committee were: The Honorable
Andy A. Hafen, Mayor, City of Henderson, NV; Mr. Jeremy Aguero,
Principal Analyst, Applied Analysis, Las Vegas, NV; Mr. Darren
Enns, Secretary Treasurer, Southern Nevada Building and
Construction Trades Council, Henderson, NV; Mr. LeRoy Walker,
Vice President, Human Resources, St. Rose Dominican Hospitals,
Nevada Market, Henderson, NV; Mr. Edward R. Guthrie, Executive
Director, Opportunity Village, Las Vegas, NV; Mr. John Ball,
Executive Director, Nevada Workforce Connections, Las Vegas,
NV; and Ms. Rebecca Metty-Burns, Executive Director, Division
of Workforce and Economic Development, College of Southern
Nevada, Las Vegas, NV.
On October 4, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C. entitled,
``Modernizing the Workforce Investment Act: Developing an
Effective Job Training System for Workers and Employers.'' The
purpose of the hearing was to focus on the need to provide
flexibility and autonomy to state and local leaders to ensure
the system is meeting the needs of area businesses and job
seekers. Testifying before the subcommittee were: Ms. Kristen
Cox, Executive Director, Utah Department of Workforce Services,
Salt Lake City, UT; Ms. Laurie Bouillion Larrea, President,
Workforce Solutions Greater Dallas, Dallas, TX; Mr. Jaime S.
Fall, Vice President, Workforce and Talent Development Policy,
HR Policy Association, Washington, D.C.; and Mr. Bruce G.
Herman, Organizer and Strategist, National Call to Action,
Brooklyn, NY.
Hearings--Second Session
On March 21, 2012, the Committee on Education and the
Workforce held a hearing in Washington, D.C. entitled,
``Reviewing the President's Fiscal Year 2013 Budget Proposal
for the U.S. Department of Labor.'' The purpose of the hearing
was to discuss the fiscal year 2013 budget proposal for the
Department of Labor. Testifying before the committee was the
Honorable Hilda Solis, Secretary, U.S. Department of Labor,
Washington, D.C.
On April 17, 2012, the Committee on Education and the
Workforce held a legislative hearing in Washington, D.C.
entitled, ``H.R. 4297, the Workforce Investment Improvement Act
of 2012.'' The purpose of the hearing was to hear perspectives
on H.R. 4297, which reauthorizes the Workforce Investment Act
of 1998 and learn how the bill addresses the challenges
presented by the current workforce development system.
Testifying before the committee were: Ms. Norma Noble, Deputy
Secretary of Commerce for Workforce Development, Oklahoma
Department of Commerce, Oklahoma City, OK; Ms. Laurie Moran,
President, Danville Pittsylvania County Chamber of Commerce,
Blairs, VA; Ms. Sandy Harmsen, Director, San Bernardino County
Department of Workforce Development, San Bernardino, CA; and
Mr. Andy Van Kleunen, Executive Director, National Skills
Coalition, Washington, D.C.
Legislative Action--First Session
On June 22, 2011, Rep. Howard P. ``Buck'' McKeon (R-CA)
introduced H.R. 2295, the Workforce Investment Improvement Act
of 2011. The bill eases restrictions that prevent program
participants from accessing job training for in-demand
industries and improves the One-Stop Career Center System. The
bill is substantially the same as H.R. 27, which was considered
by the House in the 109th Congress.
On December 8, 2011, Higher Education and Workforce
Training Subcommittee Chairwoman Virginia Foxx (R-NC)
introduced H.R. 3610, the Streamlining Workforce Development
Programs Act of 2011. The bill consolidates more than 30
federally funded workforce development programs into a
streamlined workforce development system.
On December 8, 2011, Rep. Joe Heck (R-NV) introduced H.R.
3611, the Local Job Opportunities and Business Success Act of
2011 (JOBS Act). The bill enhances business engagement by
increasing business presence on local boards to drive workforce
development services to employers who need skilled workers.
Legislative Action--Second Session
On March 29, 2012, Higher Education and Workforce Training
Subcommittee Chairwoman Virginia Foxx (R-NC) and Reps. Howard
P. ``Buck'' McKeon (R-CA) and Joe Heck (R-NV) introduced H.R.
4297, the Workforce Investment Improvement Act of 2012. The
bill streamlines federal workforce development programs;
strengthens the employer-driven workforce development system;
expands decision-making at the local level; improves
accountability and transparency; simplifies reporting
requirements; encourages more training to meet in-demand job
opportunities; and improves adult education and vocational
rehabilitation.
On June 7, 2012, the Committee on Education and the
Workforce considered H.R. 4297 in legislative session and
reported it favorably, as amended, to the House of
Representatives by a vote of 23-15.
The committee considered and adopted the following
amendments to H.R. 4297:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to ensure
recognized postsecondary credentials and industry-recognized
credentials are included in program performance indicators;
include at-risk and out-of-school youth provisions in all
program activities; increase the state set-aside for statewide
activities; maintain and reform the national Job Corps program;
and make technical and conforming changes. The amendment was
adopted by a voice vote.
Rep. Joe Heck (R-NV) offered an amendment to
include the needs of small businesses and strategies to engage
small businesses in state and local workforce plans. The
amendment was adopted by a voice vote.
Rep. Kristi Noem (R-SD) offered an amendment to
increase the Secretary's reservation from 1 percent to 2
percent for Native American, Native Alaskan, and Native
Hawaiian employment and training services and improve
performance metrics for such programs. The amendment was
adopted by a voice vote.
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered a manager's amendment to: (1) integrate four veterans
job training programs identified in the U.S. Government
Accountability Office (GAO) report into the One-Stop Career
System funded under the Workforce Investment Fund; (2)
authorize the Secretary to offer technical assistance to Job
Corps centers for the purposes of improving program quality;
and (3) make other technical and conforming changes. The
amendment was adopted by a voice vote.
Rep. George Miller (D-CA) offered a
second degree amendment to the Foxx manager's amendment
to strengthen accountability of veterans' employment
and training programs. The second degree amendment was
adopted by a voice vote.
Rep. Bobby Scott (D-VA) offered an amendment to
address employment barriers facing long-term unemployed workers
in state and local workforce plans. The amendment was adopted
by a voice vote.
Rep. Rob Andrews (D-NJ) offered an amendment to
disaggregate performance data to measure how specific
populations are served and require states to maintain a central
repository of policies. The amendment was adopted by a voice
vote.
Rep. Susan Davis (D-CA) offered an amendment to
require veterans service organizations be a member of state and
local workforce investment boards. The amendment was adopted by
a voice vote.
Subcommittee Chairwoman Virginia Foxx
(R-NC) offered a second degree amendment to the Davis
amendment to allow a governor or chief elected official
to appoint a veterans service organization to sit on
state and local boards. The amendment was adopted by a
vote of 21-17.
The committee also considered the following amendments to
H.R. 4297, which were not adopted:
Rep. John Tierney (D-MA) offered an amendment in
the nature of a substitute to establish new workforce
development initiatives, including an $8 billion Community
College to Career Fund. The amendment failed by a vote of 15-
23.
Rep. Ruben Hinojosa (D-TX) offered two amendments,
en bloc, to: (1) eliminate the requirement that state and local
workforce investment boards have a two-thirds business
majority, restore 19 specific federal mandates regarding board
membership, and restore the priority for low-income
individuals; and (2) increase authorization levels for adult
education, create new programs related to adult education,
expand state and local workforce investment boards to include
representatives of adult education providers, and other changes
to the Adult and Family Literacy Act (Title II of WIA). The
amendments failed, en bloc, by a vote of 14-23.
Rep. Bobby Scott (D-VA) offered an amendment to
create a new Pathways Back to Work Fund, providing resources
for low-income and disconnected youth for summer employment.
The amendment failed by a vote of 15-23.
Rep. Bobby Scott (D-VA) offered an amendment to
create a 25 percent reservation of funds from local employment
and training activities to serve at-risk youth. The amendment
failed by a vote of 16-22.
Rep. Dale Kildee (D-MI) offered an amendment to
increase the set-aside for Native Americans, Native Alaskans,
and Native Hawaiians from 1 percent to at least 2 percent and
restore the current WIA Native American Program. The amendment
failed by a vote of 15-23.
Rep. Lynn Woolsey (D-CA) offered an amendment to
restore the national Women in Apprenticeship in Non-Traditional
Occupations program and add a required activity to the
statewide employment and training activities for women in non-
traditional employment. The amendment failed by a vote of 15-
23.
Rep. Tim Bishop (D-NY) offered an amendment to
prohibit businesses that have sent jobs overseas from being
members of state and local workforce investment boards. The
amendment failed by a vote of 15-23.
Rep. Rush Holt (D-NJ) offered an amendment to
create a new independent living office that duplicates the
Department of Education's rehabilitation services office and
other changes to the Rehabilitation Act of 1973. The amendment
failed by a vote of 15-23.
Rep. Todd Platts (R-PA) offered an amendment to
restore the national YouthBuild program. The amendment failed
by a vote of 17-21.
Rep. Tim Bishop (D-NY) offered an amendment to
allow states to reserve a portion of funds from the state
allocation to develop cooperative education programs. The
amendment failed by a vote of 16-22.
Rep. Rush Holt (D-NJ) offered an amendment to
establish a 15 percent cap on funds used for incumbent worker
training at the local level. The amendment was amended by
unanimous consent and then later withdrawn.
Rep. George Miller (D-CA) offered an amendment to
create a new program to train workers to build elementary and
secondary schools and community colleges. The amendment failed
by a vote of 15-23.
Rep. Rush Holt (D-NJ) offered an amendment to
allow states to spend WIA funds on employment and training
activities at public libraries. The amendment failed by a vote
of 18-20.
Rep. Rush Holt (D-NJ) offered an amendment to
establish a new National Online Workforce Training Grants
program. The amendment failed by a voice vote.
Rep. David Loebsack (D-IA) offered an amendment to
mandate that 5 percent of the state allocation be spent on an
Employer Engagement Fund. The amendment failed by a vote of 17-
21.
113TH CONGRESS
Hearings
On February 26, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C. entitled, ``Putting
America Back to Work: Reforming the Nation's Workforce
Investment System.'' The purpose of the hearing was to hear
perspectives on the Supporting Knowledge and Investing in
Lifelong Skills (SKILLS) Act (H.R. 803), which reauthorizes the
Workforce Investment Act of 1998, and discuss how the bill
addresses the challenges presented by the current workforce
development system. Testifying before the subcommittee were:
Mr. Chris Hart, President and Chief Executive Officer,
Workforce Florida Inc., Tallahassee, FL; Dr. Scott Ralls,
President, North Carolina Community College System, Raleigh,
NC; Mr. Todd Gustafson, Executive Director, Michigan Works!
Berrien-Cass-Van Buren, Benton Harbor, MI; and Dr. Harry
Holzer, Professor of Public Policy, Georgetown Public Policy
Institute, Washington, D.C.
Legislative Action
On February 25, 2013, Higher Education and Workforce
Training Subcommittee Chairwoman Virginia Foxx (R-NC)
introduced H.R. 803, the Supporting Knowledge and Investing in
Lifelong Skills (SKILLS) Act. The bill streamlines federal
workforce development programs, strengthens the employer-driven
workforce development system, expands decision-making at the
local level, improves accountability and transparency,
simplifies reporting requirements, encourages more training to
meet in-demand job opportunities, and improves adult education
and vocational rehabilitation. The legislation is substantially
the same as H.R. 4297 considered by the Committee on Education
and the Workforce in the 112th Congress.
On March 6, 2013, the Committee on Education and the
Workforce considered H.R. 803 in legislative session and
reported it favorably, as amended, to the House of
Representatives by a vote of 23-0.
The committee considered and adopted the following
amendments to H.R. 803:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to extend
the hold-harmless provision for state and local areas' formula
funds from one year to three years; require the Office of
Management and Budget--instead of the Department of Labor--to
reduce federal staff working on repealed employment and
training programs; amend language regarding the closing of
chronically low performing Job Corps centers; and make
technical and conforming changes to the introduced bill. The
amendment was adopted by a voice vote.
Rep. Tim Walberg (R-MI) offered an amendment, en
bloc with the Roby and Brooks amendments, to allow states to
submit their unified plans on employment and training programs
solely to the Secretary of Labor, instead of multiple
secretaries, placing the onus on the secretary to navigate the
federal bureaucracy. The amendment also changes the law's
current operating and funding schedule to align it with the
federal fiscal year. The en bloc amendment was adopted by a
voice vote.
Rep. Martha Roby (R-AL) offered an amendment, en
bloc with the Walberg amendment, to prohibit the use of funds
under the Act for lobbying and political activities. The en
bloc amendment was adopted by a voice vote.
Rep. Susan Brooks (R-IN) offered an amendment to
allow states and local areas to designate high-performing
training providers who would be able to contract with local
boards for group training services. Additionally, the amendment
would allow state and local workforce boards to implement pay-
for-performance strategies. The en bloc amendment was adopted
by a voice vote.
Summary
The federal government currently administers over 50
separate employment and training programs across nine different
federal agencies. All of the programs overlap with at least one
other program with most of the programs targeting similar
populations and providing similar services. Only five of the
programs have been evaluated for their effectiveness on finding
employment opportunities for unemployed and underemployed
workers.
The Supporting Knowledge and Investing in Lifelong Skills
(SKILLS) Act (H.R. 803), introduced by Higher Education and
Workforce Training Subcommittee Chairwoman Virginia Foxx (R-
NC), streamlines and eliminates 35 ineffective and duplicative
programs, including 26 identified in a 2011 report by the
nonpartisan Government Accountability Office (GAO). The
proposal creates a single Workforce Investment Fund to assist
state and local workforce leaders in developing comprehensive
employment and training systems to help get Americans back to
work. The bill reforms the nation's workforce investment system
authorized under the Workforce Investment Act to ensure it is
producing results for all job seekers and employers by:
Streamlining the confusing maze of workforce
development programs;
Strengthening business engagement in state and
local workforce decisions;
Increasing state and local flexibility and
reducing administrative overhead;
Supporting education and training opportunities
for all adults, dislocated workers, and youth;
Improving services at One-Stop Career Centers and
promoting innovation;
Ensuring accountability for the use of taxpayer
funds; and
Enhancing adult education and vocational
rehabilitation services.
Importantly, the new structure will maintain and improve
workforce development and related services offered to all
Americans, including unemployed and low-skilled adults and
youth, currently receiving services under these programs.
Streamlining the confusing maze of workforce development programs
The SKILLS Act builds on the work of state and local
leaders, including those in Florida, Texas, and Utah, to create
seamless, unified workforce development systems. As President
Obama recognized in his 2012 State of the Union address, the
current design of the public workforce investment system is a
maze of individual programs and funding streams with various
mandates, many of which provide the same or similar services.
The legislation ends this fragmented federal, state, and local
system that diverts limited resources from direct employment
and training services for unemployed and underemployed workers.
One Program for All Workers: The bill creates a
single Workforce Investment Fund that provides formula funds to
state and local workforce investment boards (WIBs) to create
universal employment and training programs for all adults,
unemployed workers, and youth. The new fund ensures all major
workforce development services are co-located and administered
through the nation's workforce investment system and One-Stop
Career Centers. This change eliminates duplicative and
inefficient job training programs, streamlines program
administration at the federal, state, and local levels, and
allows for greater coordination and collaboration among
federal, state, and local programs.
New Universal Program Structure: The Workforce
Investment Fund includes a new formula for state and local
areas consistent with the program's universal service
structure. The formula is based on four factors: the number of
individuals ages 16 through 72 in the civilian labor force; the
number of unemployed individuals; the number of individuals who
are experiencing long term unemployment defined as 15 weeks or
more; and the number of disadvantaged youth ages 16 to 24. The
program's structure:
Allows governors to reserve up to 15
percent to carry out statewide activities, 25 percent
of which may be reserved for Rapid Response Activities
that provide assistance to local areas experiencing
mass layoffs or plant closings and 15 percent to target
services to individuals with barriers to employment and
training.
Minimizes winners and losers by
including a minimum and maximum change in states' and
local areas' allotment percentages and a small state
minimum allotment.
Allows the Secretary of Labor to reserve
one-half of 1 percent of the total appropriation to
carry out evaluations and technical assistance, set
aside 1 percent of the total funds to target employment
and training services directly to Indian tribes, and
reserve 3.5 percent to assist areas during natural
disasters. These changes allocate an overwhelming
majority of federal funds to state and local areas that
are empowered to get Americans back to work, and away
from bureaucrats at the Department of Labor.
Limits the administrative activities of
state WIBs to 5 percent and local WIBs to 10 percent,
ensuring that most state and local funds are spent on
workforce investment activities that directly benefit
unemployed and underemployed workers.
Authorizes level funding, based on the
FY 2012 budget, for the Workforce Investment Fund for
fiscal years 2014 to 2020.
State and Local Focus on Special Populations: The
bill requires state and local WIBs to detail how they will
serve dislocated workers (including displaced homemakers), low-
income individuals (including recipients of public assistance
such as those enrolled in the Supplemental Nutrition Assistance
Program), long-term unemployed individuals (including
individuals who have exhausted entitlement to state and federal
unemployment compensation), English learners, homeless
individuals, individuals training for nontraditional
employment, youth (including at-risk youth and out-of-school),
older workers, ex-offenders, migrant and seasonal farmworkers,
refugee and entrants, veterans (including disabled and homeless
veterans), and Native Americans. This change ensures all states
and local areas are working to improve workforce services to
special populations, instead of relying on small, targeted
national programs to accomplish this goal.
Elimination and Streamlining of Ineffective and
Duplicative Programs: The bill streamlines and eliminates 35
existing job training programs that support similar activities
to aid individuals in finding and retaining employment. The
programs include: (1) WIA Adult Program; (2) WIA Youth
Activities; (3) WIA Dislocated Workers; (4) Employment Services
(ES)/Wagner-Peyser Funded Activities; (5) Community-Based Job
Training Grants; (6) Veterans Workforce Investment Program; (7)
National Farmworker Jobs Program--U.S. Department of Labor; (8)
Native American Employment and Training; (9) WIA National
Emergency Grants; (10) Reintegration of Ex-Offenders; (11)
Grants to States for Training for Incarcerated Individuals;
(12) YouthBuild; (13) Conservation Activities by Youth Service
Organizations (Youth Conservation Corps); (14) 21st Century
Workforce Commission; (15) SNAP (aka Food Stamps) Employment
and Training; (16) Senior Community Service Employment Program
(SCSEP); (17) Brownfield Job Training Cooperative Agreements
(Environmental Workforce Development and Job Training Grants);
(18) Women in Apprenticeship and Nontraditional Occupations
(WANTO); (19) Second Chance Act Prisoner Reentry Initiative;
(20) Refugee and Entrant Assistance--Targeted Assistance
Grants; (21) Refugee and Entrant Assistance--Social Services
Program; (22) Refugee and Entrant Assistance--Targeted
Assistance Discretionary; (23) Projects with Industry; (24)
State-Supported Employment Services Program; (25) Migrant and
Seasonal Farmworkers Program--U.S. Department of Education;
(26) Disabled Veterans' Outreach Program; (27) Local Veterans
Employment Representative Program; (28) WIA Pilot and
Demonstration Projects; (29) Workforce Innovation Fund; (30) ES
Statistical Programs; (31) Green Jobs Act; (32) National
Institute for Literacy; (33) Youth Opportunity Job Grants; (34)
Recreational Programs; and (35) In-Service Training of
Rehabilitation Personnel. The bill further requires the Office
of Management and Budget (OMB) to reduce federal staff working
on repealed employment and training programs.
Strengthening business engagement in state and local workforce
decisions
The SKILLS Act maintains the long-standing position that
the nation's workforce investment system can only be successful
in building the skills of job seekers and helping them secure
employment if it is closely linked with employers. The bill
puts the business community--the job creators--in the driver's
seat, and strengthens business-led workforce investment boards
to ensure the system is focused on training individuals for in-
demand jobs that are growing in the state and local area.
Stronger Business-led Boards: The bill strengthens
the presence and participation of the business community on
state and local WIBs by requiring business leaders, including
those representing in-demand industries, to make up a two-
thirds majority on the boards. Business leaders currently have
a simple majority on the boards. This change ensures strategic
planning focuses on identifying the gaps in the workforce to
train individuals to fill available jobs.
Stronger Business Focus: The bill requires state
WIBs to develop strategies across local areas that meet the
needs of employers, and ensures local WIBs provide employment
and training activities that meet the needs of employers and
enhance communication, coordination, and collaboration between
in-demand industries and small businesses with the workforce
investment system.
Relevant to Businesses: The bill requires state
and local WIBs to detail how they will more fully engage
businesses in workforce investment activities, meet the needs
of businesses in the state and local area, and develop
industry/sector partnerships that encourage industry growth and
improve worker training. The bill also includes the attainment
of industry-recognized credentials as a performance outcome.
Increasing state and local flexibility and reducing administrative
overhead
The SKILLS Act recognizes state and local areas should have
maximum flexibility to design programs and initiatives best
suited to their workers, businesses, and workforce development
partners. Though WIA pushes state and local areas to develop
business-friendly, customer-centric initiatives, the current
system imposes hundreds of heavy-handed mandates, including
mandates on who can serve on state and local boards. As a
result, the mandates have created paperwork and compliance
burdens. The bill streamlines the law's governance system,
reducing bureaucracy and maximizing resources for unemployed
and underemployed workers.
Smaller Local and State Boards: The bill
restructures local WIBs by removing all federal requirements on
board membership, except business representation. State WIBs
retain business representation, chief elected officials, and
economic development representatives. Chief elected officials
and governors have the power to appoint the remaining one-third
membership of each respective board, which may include members
of the state legislature and representatives of youth
organizations, community colleges, labor unions, community-
based organizations, veterans service organizations, and One-
Stop partners. This change dramatically reduces the size of the
boards, making them more manageable and focused on strategic
decisions.
Review of Outdated State Policies: The bill
requires state WIBs to review and develop statewide policies
and programs that support comprehensive workforce development
systems, including determining whether they should consolidate
additional employment and training programs into the Workforce
Investment Fund for the express purpose of providing greater
administrative flexibility and reducing overly burdensome
paperwork requirements.
Simplified Program Administration: The bill
authorizes states to develop and submit unified state plans to
the Secretary of Labor and, if they choose, to consolidate
additional federal job training and social services programs
into the Workforce Investment Fund. This further reduces
inefficiencies in the administration of employment and training
programs at the state and local levels and creates a unified
workforce and economic development system. States must continue
to comply, however, with all program requirements of the
consolidated program. The programs include: (1) programs
authorized under Titles I and II of the Workforce Investment
Act; (2) programs under the Trade Adjustment Act; (3) the
National Apprenticeship Act; (4) Community Services Block
Grants (CSBG); (5) Temporary Assistance for Needy Families
(TANF); (6) programs under state unemployment compensation
laws; (7) work programs under the Food Stamp Act; (8) the
Community Development Block Grant (CDBG); and (9) Economic
Development programs. The bill requires the Secretary of Labor
to navigate the federal bureaucracy of each federal department
or agency approving state unified plans, placing this burden on
the secretary rather than on the state.
Promoting Local Flexibility: The bill eliminates
the requirement in current law that local WIBs give priority to
low-income individuals. This change gives local areas
additional flexibility to determine how best to get all
unemployed Americans back to work and is consistent with the
bill's intent to create workforce development programs that
benefit all job seekers.
Modernizing and Creating Regional Approaches to
Job Creation: The bill eliminates the grandfather provisions in
current law that allow certain state and local entities similar
to WIBs and One-Stop Career Centers that were in existence
prior to 1998 to remain in place. It requires state WIBs, in
consultation with local leaders, to designate local workforce
investment areas, taking into consideration existing labor
market areas and economic development regions. It removes
barriers that are preventing states from implementing a
regional approach to providing services by ending duplicative
and overlapping service delivery areas.
Supporting education and training opportunities for all adults,
dislocated workers, and youth
The SKILLS Act removes barriers in current law that prevent
unemployed and underemployed workers from accessing important
employment and training services. According to the Bureau of
Labor Statistics, there are more than 3.6 million job openings
across the country because many employers are unable to find
skilled workers. The legislation supports states and local
areas in developing workforce development services that are in-
demand and tailoring services to individuals that meet the
needs of each job seeker.
Dedicated Funds for Training: The bill requires
local WIBs to reserve a percentage of funds, as specified by
the board, to carry out training activities for job seekers.
This change addresses the concern that a significant portion of
employment and training funds are currently spent on
infrastructure and administrative costs. The reservation
ensures job training is a priority for the workforce investment
system.
Direct Access to Training: The bill combines
``core services'' and ``intensive services'' into a new
category of ``work ready services,'' which allows individuals
to receive the services that best meet their needs quickly.
This change eliminates the cumbersome ``sequence of services''
process that individuals must go through to access training
under current law.
Reducing Burdensome Requirements: The bill allows
states to determine what standards will be required for
eligible training providers, streamlining the bureaucratic
requirements that have forced many community colleges and other
training providers out of the system. It also permits local
areas to contract directly with community colleges and other
institutions of higher education to provide specialized group
training programs designed for employers who are looking to
hire several workers with a particular skill.
The legislation allows local WIBs to develop and implement
industry and sector partnerships to aid in aligning resources
and training efforts among multiple firms.
Reforms the Job Corps Program: The bill
restructures Job Corps to ensure career and technical education
and training is geared toward in-demand occupations and
disadvantaged youth receive a regular high school diploma and/
or a recognized postsecondary credential that prepares them for
employment in the global economy. It establishes a new
performance accountability and management system; requires the
Secretary of Labor to provide technical assistance to low-
performing centers, and requires all grantees to re-compete for
funding, ensuring grantees are high-quality and have expertise
in serving disadvantaged youth. These changes ensure at-risk
youth become more employable, responsible, and productive
citizens.
Improving services at one-stop career centers and promoting innovation
The SKILLS Act responds to the changing U.S. economy.
States and local workforce boards should have the tools to
implement and continuously improve workforce programs,
including those at the 3,000 One-Stop Career Centers, to keep
pace with the dynamic real time evolution of local and regional
economies. The legislation supports the innovative approaches
taking place at the state and local levels by maintaining and
strengthening the One-Stop Career system without authorizing
new and duplicative programs that empower the Secretary of
Labor to pick winners and losers.
Strengthening One-Stop Career Centers: The
legislation requires state WIBs to describe how they will
encourage regional cooperation within the state and foster
communication and partnerships with nonprofit organizations to
enhance the quality of services available to workers. The bill
requires each mandatory partner program to contribute a portion
of their administrative funds toward infrastructure funding.
This change ensures all organizations are paying a fair share
for the physical structure and administrative costs to One-
Stops, ensuring employment and training dollars are spent on
direct services for individuals.
In-Demand Occupations: The bill requires local
WIBs to conduct and regularly update workforce research and
regional labor market analysis. This analysis is used to
determine the immediate and long-term skilled workforce needs
of in-demand industries and small businesses, as well as the
knowledge and skills of the workforce in the area to address
critical skills gaps between employers and job seekers.
Reducing Barriers to Employment: The bill requires
states to set aside 15 percent of their reserve to provide job
training services to individuals with barriers to employment.
These competitive grants to local WIBs and/or non-profit or
for-profit organizations provide additional assistance to local
areas to help hard-to-serve individuals, including individuals
with disabilities and at-risk youth, obtain the skills
necessary to get a job. These changes use the expertise and
knowledge of the statewide workforce investment system to serve
individuals who have barriers to employment, instead of
continuing to support national programs operating outside of
the WIA system. The bill provides maximum flexibility to state
and local areas to identify the targeted population they aim to
assist and build workforce development programs that address
their unique needs. It also requires eligible grantees to
demonstrate their capacity to achieve the best results for
individuals with employment barriers and reimburses programs on
their ability to achieve specified performance outcomes and
criteria established by the governor.
Increased Use of Technology: The bill encourages
state and local WIBs to use technology to facilitate access of
workforce development services in remote areas. The legislation
allows state and local WIBs to disseminate information not only
in writing, but also electronically to ensure full transparency
of their actions and intentions.
Better Services for Individuals with Disabilities:
The bill requires state and local WIBs to describe how they
will serve the employment and training needs of individuals
with disabilities and stipulates that local WIBs are to work
with the area's disability community to make available
comprehensive, high-quality services to individuals with
disabilities.
Ensuring accountability for the use of taxpayer funds
The SKILLS Act ensures taxpayer funds are spent effectively
and efficiently, and workforce development programs are helping
Americans get back to work. Federal job training programs have
a myriad of performance measures, many of which do not address
whether or not an unemployed or underemployed worker received
the appropriate training and secured employment in a particular
field. As such, there is little information available to
federal, state, and local policymakers on whether federal
programs are making a difference in local communities. The
legislation responds to last year's GAO report on multiple
employment and training programs and takes a number of
important steps to provide a clear picture as to the true
effectiveness of federal job training programs.
Protecting Taxpayers: The bill requires state and
local WIBs to give priority to placing participants in private-
sector employment, instead of continuing to grow the size of
government at all levels. It also requires local WIBs, in
consultation with their chief elected officials, to designate
or certify One-Stop Career Center operators through competitive
processes. This change eliminates the authority for public,
government-led consortiums of boards and One-Stop partners to
automatically manage the centers. The legislation makes state
and local WIBs responsible for the use and management of
employment and training funds spent in their area. Finally, the
bill prohibits the use of workforce investment funds for
lobbying and political activities.
Common Performance Measures: The bill rewrites the
accountability system included in current law to create common
performance measures for the Workforce Investment Fund, and the
Adult Education and Vocational Rehabilitation programs, to
decrease burdensome administrative reporting requirements.
Common measurements include the number and percentage of
participants entering and retaining unsubsidized employment in
the field in which the individual received training and
obtaining recognized postsecondary credentials, including
industry-recognized credentials. The legislation also:
Requires state and local WIBs to
disaggregate performance data to identify how
particular populations are served.
Allows governors to add additional
performance measures for use within their states.
Eliminates the unreliable customer
satisfaction measure as a required performance
measurement, but allows state and local WIBs to
continue to use it if they choose.
Requires the Secretary of Labor to
reduce funding for those states that fail to meet
performance measures for two consecutive years.
Requires local WIBs to develop a
reorganization plan if they fail to meet performance
measures for two consecutive years. Currently, the
reorganization plan is allowed under the law, but it is
not mandatory.
Requires governors to reduce funding for
those local WIBs that fail to meet performance measures
for three consecutive years.
Transparency in Results: The bill requires state
and local WIBs to report additional information to improve
federal, state, and local efforts to better measure program
performance and validate worker outcomes. Included in this
reporting are common measurements to compare the number of
individuals who receive both work-ready and training services
and who successfully complete such services. The bill also
requires states to maintain a central repository of policies
related to access, eligibility, and availability of services
electronically.
Program Evaluations: Consistent with the recent
GAO finding, the bill requires the Secretary of Labor to
conduct an independent evaluation of all workforce development
programs and activities at least once every five years. The
evaluations must be contracted out through grants, contracts,
or cooperative agreements. The results of the evaluations must
be publicly available.
Training Providers: The bill requires state WIBs
to set eligibility criteria for training providers that take
into account the performance of providers and whether the
training programs relate to occupations that are in demand. The
bill also allows state and local WIBs to implement pay-for-
performance strategies, as well as designate those training
providers that demonstrate the highest level of success on
performance indicators to be deemed priority providers.
Enhancing adult education and vocational rehabilitation services
The SKILLS Act reauthorizes the Adult Education program,
which provides funds to states to assist adults without a high
school diploma to become literate and obtain the knowledge and
skills necessary for postsecondary education and/or employment.
The bill makes the following changes to the program:
Increases the focus of adult education programs on
the delivery of basic skills such as reading, writing,
speaking, and math, and encourages integrated education and
workforce development programs.
Ensures instructional practices are evidence-based
to provide the highest return on federal investments.
Enhances delivery of services through the use of
technology, including distance education, to improve the
professional development of teachers and the delivery of
instruction to participants.
Requires better coordination with the business
community and the workforce investment system.
Measures performance using the common performance
measures outlined for all workforce investment programs to
provide national, state, and local leaders with the data needed
to make informed decisions.
The SKILLS Act reauthorizes the Rehabilitation Act of 1973,
which provides vocational rehabilitation (VR) services to
assist individuals with disabilities prepare for, obtain, and
retain employment. The bill makes the following changes to the
program:
Streamlines the federal bureaucracy by
redesignating the commissioner of the Rehabilitation Services
Agency as a director, removing the requirement for Senate
confirmation, and encouraging better collaboration for
individuals with disabilities.
Requires coordination between VR and services
provided under the Assistive Technology Act.
Includes in the state plan an assessment of
transition services provided through the VR system and how
those services are coordinated with services under the
Individuals with Disabilities Education Act (IDEA).
Includes in the state plan strategies the state
will use to address the needs identified in the assessment of
transition services described above.
Requires states to use one-half of 1 percent of
their VR funding to award grants to businesses in partnership
with other entities to create practical job and career
readiness and training programs, and provide job placements and
career advancement.
Requires states to reserve 10 percent of their
formula grant funds to provide transition services to students
with disabilities served under IDEA as they prepare to move out
of school to postsecondary education, employment, or
independent living.
Strengthens coordination and collaboration between
parent training programs under IDEA and the Rehabilitation Act
of 1973.
Measures performance using the common performance
measures outlined for all workforce investment programs to
provide national, state, and local leaders with the data needed
to make informed decisions.
Both the Adult Education and Vocational Rehabilitation
programs are mandatory partners in the One-Stop Career system
and will contribute a portion of their administrative funds to
the delivery infrastructure based on the state's determination.
The bill limits the portion of administrative funds that VR
programs are required to contribute to the proportionate use of
the One-Stops by the programs in the state.
Committee Views
Introduction
In March 2013, the U.S. unemployment rate stood at a
staggering 7.7 percent, continuing a devastating trend of
unemployment hovering around 8 percent for the last four years.
At a time when millions of Americans are desperate for jobs,
our nation needs a dynamic, results-oriented job training
system that meets the needs of workers and helps local
communities respond to an ever-changing labor market.
In 1998, Congress passed the Workforce Investment Act (WIA)
to give job seekers access to important employment services,
including resume assistance, career counseling, skills
assessments, labor market information, and specialized
training, to help them get back to work. In the decade since
the last reauthorization of the law, our economy has changed
dramatically. In 1998, the federal government was running a
budget surplus, unemployment was less than 5 percent, there was
virtually no inflation, and workers were experiencing solid
growth of monthly and yearly income. Today, our country
continues to run annual trillion dollar deficits, we have a
historic $16 trillion national debt, the unemployment rate has
been hovering around 8 percent for the last four years, there
have been growing concerns about rising inflation, and many
workers continue to see stagnant wages.
Instead of responding to the changing needs of American
workers and employers in the global economy, the current
workforce development system is broken and antiquated. Less
than half of the individuals who access services through the
current workforce system get a job after taking advantage of
job search, communication and interviewing skills development,
on-the-job training, and other employment services. Worse, only
20 percent of workers actually receive training services that
provide the important skills necessary to succeed in the
workplace. According to the U.S. Department of Labor, 3.6
million jobs remain unfilled despite nearly 12 million
unemployed workers. Employers largely attribute this
discrepancy to the lack of a skilled workforce--the so-called
``skills gap''--and many workers admit they struggle to find
essential training for available jobs. In spite of the best
intentions to establish a unified workforce development system
15 years ago, employers and state and local leaders still
grapple with a bureaucracy that squanders taxpayer resources,
stifles innovation, and stands in the way of the support and
training workers need to get back on their feet.
The problems in the system haven't gone unnoticed. In
January 2011, the U.S. Government Accountability Office (GAO)
released a report that found the federal government administers
roughly 47 separate and distinct job training programs across
nine agencies, costing taxpayers $18 billion annually. The
report found many of these programs overlap, and few have been
evaluated for efficacy. In his 2012 State of the Union address,
President Barack Obama called on Congress to ``cut through the
maze of confusing [job] training programs.'' A Wall Street
Journal editorial on May 9, 2012, noted ``a federal job
training program that puts people back to work is hard to
find.''
Understanding the nation's economic situation is the number
one issue facing our country, the House Committee on Education
and the Workforce is working to create a workforce development
system that will better serve all Americans. The Supporting
Knowledge and Investing in Lifelong Skills (SKILLS) Act, H.R.
803, provides a more dynamic, flexible, and effective network
of job training and education services. It empowers employers
to play a key role in ensuring the system meets the needs of
in-demand industries, reins in federal and state bureaucracy,
and develops a more transparent and accountable performance
system that ensures a return on taxpayer investments.
TITLE I--AMENDMENTS TO THE WORKFORCE INVESTMENT ACT OF 1998
Workforce development programs
In January 2011, GAO released a report entitled, Multiple
Employment and Training Programs: Providing Information on
Colocating Services and Consolidating Administrative Structures
Could Promote Efficiencies. For fiscal year 2009, the GAO
identified 47 employment and training programs across nine
different federal agencies spending approximately $18 billion
on employment and training services. This represents an
increase of three programs and $5 billion since fiscal year
2003. Forty-four of these programs were found to overlap with
at least one other program and only five of the 47 programs had
been evaluated to determine whether they improved employment
outcomes. In addition, 23 of the programs did not claim to
conduct any type of study that reviewed performance. Through
continued oversight of the workforce development system,
additional job training and employment programs have been
identified. As a result, the committee determined the federal
government administers more than 50 employment and training
programs.
The committee supports a comprehensive statewide workforce
investment system that will better serve all Americans,
regardless of age or economic situation. Under the current
system, separate funding streams have resulted in
administrative inefficiencies at the federal, state, and local
levels, creating confusion for workers struggling to access the
services necessary to get a job. Several of the so-called
national programs, created at the urging of specific
populations outside of statewide workforce development systems,
largely duplicate the employment and training services provided
through the nation's 3,000 One-Stop career centers and are too
small to have a significant national bearing. As a result, the
nation's current job training system diverts direct services
and limited resources away from unemployed and underemployed
workers and towards unnecessary bureaucracy. The committee
believes the federal government has a responsibility to
eliminate waste, fraud, and abuse of taxpayer dollars and to
make the tough choices necessary to streamline ineffective and
duplicative federal programs. A failure to act when confronted
with such compelling evidence of waste is indefensible.
At an October 4, 2011 Subcommittee on Higher Education and
Workforce Training hearing entitled, ``Modernizing the
Workforce Investment Act: Developing an Effective Job Training
System for Workers and Employers,'' Kristen Cox, executive
director of the Utah Department of Workforce Services, outlined
the problems inherent in the current workforce investment
system:
``The current design of the public workforce
investment system is a maze of individual programs and
funding streams with various mandates attached to each
program. It is then the expectation of the states to
manage through these mandates and bureaucracy and
provide individuals and businesses with the employment
and job training services needed, thus contributing to
the improvement of the national economy. Just meeting
individual program requirements, providing fiscal
stewardship over each individual funding stream,
tracking outcomes and results for individual programs,
and implementing a business-friendly, customer-centric
model around targeted program mandates is extremely
inefficient by diverting finite resources from actual
employment and job training services.''
Mr. Bert ``Van'' Royal, owner of Magnolia Point Realty in
Green Cove Springs, Florida, echoed this sentiment from the
local business perspective. In testimony at a May 11, 2011
subcommittee hearing entitled, ``Removing Inefficiencies in the
Nation's Job Training Programs,'' he stated:
``The GAO report referenced here today describes a
plethora of federal job training and employment
programs. While all of them were likely created with
the best of intentions, it is virtually impossible for
businesses, particularly small businesses, and job
seekers to know about and navigate the services of that
many programs. We need a system that is simple to
understand and easy to use.''
In order to ensure our nation's workforce investment system
is producing results for all job seekers and employers, H.R.
803 eliminates and streamlines 35 ineffective and duplicative
employment and training programs, 26 of which were identified
by the GAO report, and creates a single Workforce Investment
Fund (WIF). The new flexible WIF program assists states and
local workforce investment boards in developing a comprehensive
workforce development system administered through existing One-
Stop career centers that will help get Americans back to work.
The new WIF streamlines the confusing maze of job training
programs, decreases administrative overhead, and improves
program coordination. Importantly, the new structure will
maintain and improve workforce development services offered to
all Americans, including those who receive services under
existing workforce development programs.
In a letter to Chairman John Kline (R-MN) and Ranking
Member George Miller (D-CA) dated March 5, 2013, the U.S.
Chamber of Commerce endorsed this important step. The
organization stated:
``Reauthorization of the Workforce Investment Act
(WIA) is long overdue and the Chamber believes H.R. 803
would allow for some much-needed updates and
improvements to America's workforce and training
system''
Specifically, this legislation would repeal many
ineffective and duplicative federal training and
employment programs. The Chamber believes this
consolidation, when combined with additional state and
local flexibility for the delivery of these services,
would allow more adults and dislocated workers to more
efficiently receive the services they need to not only
find a job, but also stay employed.
The programs and their justifications for elimination and
consolidation into the WIF under H.R. 803 include the
following:
(In alphabetical order)
Brownfields Job Training Cooperative Agreements
(Environmental Workforce Development and Job Training Program).
This program awards grants to entities that provide unemployed
and underemployed people living in areas affected by solid and
hazardous waste with the skills needed to secure employment in
environmental fields. It has provided little return on federal
investments, funding 191 job training grants over the past 12
years totaling $42 million, yet placing a mere 7,000
individuals into environmentally-related jobs over the same
period of time. In addition, the program reports graduates
generally pursue three paths after training, with only the
first focused on the program's mission: (1) employment in the
environmental field; (2) employment in other fields; or (3)
further education. Finally, funds can be used for a variety of
activities not focused on providing direct job training
services to participants, such as training in First Aid or CPR,
costs associated with health exams, and transportation.
Community-Based Job Training Grants. This program,
which supports workforce training for high-growth/high-demand
industries through community and technical colleges, has not
been funded since fiscal year 2010. Further, a 2011 Senate
Appropriations Committee report stated other significant
funding sources exist to support community colleges for similar
endeavors.
Conservation Activities by Youth Service
Organizations (Youth Conservation Corps). This program, which
provides summer employment for youth ages 15-18 and work
experience on public lands, is duplicative of the current
workforce investment system, including Job Corps and other
targeted youth programs. As reported by GAO, this program has
not conducted an impact study since at least 2004. Instead of a
separate stand-alone program, the SKILLS Act requires state and
local workforce investment boards to describe how they will
serve the employment and training needs of youth, including
out-of-school youth and at-risk youth.
Disabled Veterans' Outreach Program (DVOP). This
program, which provides funds to support dedicated specialist
employment positions to primarily serve disabled veterans, is
duplicative of the local veterans' employment representative
program. Under a recent analysis, only 17 percent of eligible
veterans were found to receive ``intensive'' services under the
DVOP program. In fiscal year 2011, only half of those
participating veterans with disabilities were employed after
they exited the program. The program's performance targets for
fiscal year 2012 are to help even fewer veterans, 42 percent,
at a time when more servicemen and women are returning home.
Instead of a separate stand-alone program, the SKILLS Act
requires state and local workforce investment boards to
describe how they will furnish employment, training, support,
and placement services to veterans, including disabled
veterans. The bill also maintains current law provisions
providing a priority of service for veterans and eligible
spouses in all qualified job training programs, including the
new Workforce Investment Fund.
Employment Service (ES)/Wagner-Peyser Funded
Activities and ES Statistical Programs. The ES program, which
is authorized under the Wagner-Peyser Act to help job seekers
with job search assistance, reported placing a dismal 48
percent of participants into employment in 2010, 25 percent of
whom did not retain employment. For the past three years, the
program has set a low goal of assisting less than half of
participants in finding employment, ensuring the program meets
its performance measurements. This low goal is especially
disconcerting given the state of the economy. In addition, the
program is duplicative of the core and intensive services
(renamed work ready services in the SKILLS Act) already offered
through One-Stop career centers. The ES Statistical Programs,
which reimburse states that provide data for national
statistical programs, is duplicative of those statewide
activities currently funded under WIA. The SKILLS Act continues
to provide states with funding to carry out statewide
employment and training activities, including the collection of
accurate local, regional, and national workforce and labor
market information.
Grants to States for Workplace and Community
Transition Training for Incarcerated Individuals. This program,
which awards grants to state correctional education agencies to
assist incarcerated individuals in acquiring postsecondary
education, counseling, and vocational training, did not receive
funding in fiscal year 2012, nor did the Department of
Education request funding for this program in the president's
fiscal year 2013 budget. According to the latest data, only 26
percent of participants in this program completed their
postsecondary education and training requirements. Instead of a
separate stand-alone program, the SKILLS Act requires state and
local workforce investment boards to describe how they will
serve the employment and training needs of ex-offenders.
Green Jobs Act. This program, which was
established as a pilot program in 2009 and funded under the
American Recovery and Reinvestment Act (ARRA) to develop
training programs for jobs in a range of ``green'' industries,
has not been funded since fiscal year 2010. In September 2011,
the Department of Labor's Inspector General (IG) reported that
out of $435.4 million allocated for green jobs training
programs under ARRA, only $162.8 million had been expended by
grantees. In addition, the IG found that grantees reported
serving just 52,762 (42 percent) of the targeted 124,893
participants and only placed 8,035 participants out of the
targeted 79,854 participants in jobs.
Local Veterans' Employment Representative Program
(LVER). This program, which provides dedicated staff employment
positions primarily at One-Stop career centers to assist
veterans, has demonstrated poor results. Under a fiscal year
2009 analysis, only 22 percent of eligible veterans received
direct ``intensive'' services under the LVER program. In fiscal
year 2011, only half of participating veterans were employed
after they exited the program. The program's performance
targets for fiscal year 2012 are lower, despite increasing
numbers of servicemen and women returning home. State and local
areas also lack sufficient data to determine whether LVER or
regular One-Stop career center staff is responsible for
delivering services to veterans. Instead of a separate stand-
alone program, the SKILLS Act integrates the LVER program into
the One-Stop career system, requiring local areas to hire and
employ specialists to carry out employment, training, and
placement services for our nation's veterans. These specialists
will also conduct outreach to local employers to assist
veterans in gaining employment.
National Farmworker Job Program (U.S. Department
of Labor). This program, which provides job training and
employment development services to migrant and seasonal
farmworkers, duplicates the efforts of the larger WIA programs
that provide funds to state and local workforce investment
areas to carry out workforce development activities. Under
current law, migrant and seasonal farmworkers receive
employment and training services through the nation's 3,000
One-Stop career centers. According to the Department of Labor's
program year 2010 quarterly state data reports, more than half
of individuals participating in the program did not receive
training services and even fewer completed training. In 2003,
the Office of Management and Budget (OMB) found more than 60
percent of the program's participants received only supportive
services like emergency cash assistance. GAO reports the
program has not conducted an impact study since at least 2004.
Instead of a separate stand-alone program, the SKILLS Act
requires state and local workforce investment boards to
describe how they will serve the employment and training needs
of migrant and seasonal farmworkers.
National Institute for Literacy (NIFL). The
institute, which is an independent office charged with
providing national leadership on literacy, has not received
funding since fiscal year 2010. In 2010, the Obama
Administration proposed eliminating the program, stating, ``The
Administration believes that NIFL's broad mission and the lack
of clear management oversight have led to a diffuse and
incoherent system of delivery as well as duplication of efforts
with other Department of Education and Federal offices.'' In
addition, nearly half of NIFL's $6.5 million 2009 appropriation
was targeted to support expenses for personnel and overhead.
Native American Employment and Training. This
program, which supports employment and training activities for
Indian, Alaska Native, and Native Hawaiian individuals, tracks
only a few outcomes and does not measure whether former
participants are experiencing wage gains after exiting the
program. The Department of Labor has set the bar low by putting
in place a goal of finding employment for just 57 percent of
participants, despite high unemployment numbers facing this
population. As reported by GAO, this program has not conducted
an impact study since at least 2004. Instead of a separate
stand-alone program, the SKILLS Act requires the Secretary of
Labor to reserve up to one percent of the Workforce Investment
Fund to provide employment and training services to Indian
tribes. It also requires state and local workforce investment
boards to describe how they will serve the employment and
training needs of Native Americans.
Refugee Job Training Programs. There are three job
training programs dedicated to providing employment and
training services to refugees and new entrants, including the
Refugee and Entrant Assistance Targeted Assistance Grants, the
Refugee and Entrant Assistance Social Services Program, and the
Refugee and Entrant Assistance Targeted Discretionary Program.
These programs are duplicative of the main workforce investment
system, which is a universal access system designed to help
unemployed and underemployed individuals gain the skills
required by in-demand industries. Instead of separate stand-
alone programs, the SKILLS Act amends these provisions to
better align with the current workforce investment system and
requires state and local workforce investment boards to
describe how they will serve the employment and training needs
of refugees and entrants.
Reintegration of Ex-Offenders. This program, which
provides grants to serve repeat adult offenders and youth
involved or at-risk of being involved in crime or violence,
placed roughly half of participants into employment. The
Department of Labor's program goals for 2013 do not aim to
raise the percentages substantially, targeting just 59 percent
of participants to enter employment. In addition, the program
costs more than $6,681 per person, significantly more money
than programs with similar functions. In 2009, the program
utilized only 80 percent of its total appropriation toward
employment and training activities, even though training is
integral to its stated goal of helping former inmates reenter
the workforce. Instead of a separate stand-alone program, the
SKILLS Act requires state and local workforce investment boards
to describe how they will serve the employment and training
needs of ex-offenders.
Second Chance Act Prisoner Reentry Initiative.
This program, which aims to help juvenile and adult inmates
successfully reintegrate into society, utilized only 70 percent
of its funds to focus on employment and training activities and
has not conducted an impact study as reported by the GAO. In
addition, under a 2010 analysis, the Department of Justice's IG
found the Office of Justice Programs did not adequately define
key terms essential for determining whether program goals were
met, did not require grantees to identify baseline recidivism
rates needed to calculate changes in recidivism, and failed to
analyze performance measurement data. Instead of a separate
stand-alone program, the SKILLS Act amends these provisions to
better align with the current workforce investment system and
requires state and local workforce investment boards to
describe how they will serve the employment and training needs
of ex-offenders.
Senior Community Service Employment Program
(SCSEP). This program supports employment of older workers by
providing part-time paid community service positions, as well
as training for unemployed, low-income individuals age 55 and
older. In program year 2012, it placed fewer than half of
program participants into employment and, of those, only 65
percent retained employment. In addition, the six-month average
earnings for program participants were $7,000, yet it cost more
than $6,000 to serve each participant. In January 2012, the
Department of Labor added a new performance metric to the
program to require grantees to measure the number of
participants who enter into volunteer service. Though this
metric will likely produce dramatic improvements in the
program's performance, it is contrary to the program's goal to
get older Americans into paid positions. Finally, the
president's fiscal year 2013 budget proposal requests to move
SCSEP to the Department of Health and Human Services' (HHS)
Administration on Aging, confirming the administration's new
focus for SCSEP on community service, not job training
services. Instead of a separate stand-alone program, the SKILLS
Act requires state and local workforce investment boards to
describe how they will serve the employment and training needs
of dislocated and older workers.
Supplemental Nutrition Assistance Program (SNAP)
Employment and Training. This program, which supports
employment and training for SNAP (formerly Food Stamps)
participants, includes job search, resume assistance, job
training, and work experience, all of which are duplicative of
the activities funded under the existing workforce investment
system. Nearly 43 million individuals receive SNAP benefits,
making a large share of low-income families eligible for
employment and training services. In 2009, however, only 6.8
percent of eligible recipients participated in the SNAP
Employment and Training program. Since 2008, federal law has
required the Secretary of Agriculture to monitor the
effectiveness of state SNAP Employment and Training programs.
In 2012, the administration finally proposed establishing a
standard set of measurements and requiring annual reporting.
However, the rule will not be effective until fiscal year 2015,
essentially permitting seven years without performance
outcomes. Additionally, current regulations allow participants
to be reimbursed under SNAP Employment and Training for costs
relating to job retention, including driver education, testing
fees, and union dues. This is an attempt by the administration
to support its Big Labor agenda. There is no time limit on how
long SNAP Employment and Training programs and benefits can be
provided, essentially allowing individuals to ``look'' for a
job on the government's dime for an indefinite period of time.
Instead of a separate stand-alone program, the SKILLS Act
amends these provisions to better align with the current
workforce investment system and requires state and local
workforce investment boards to describe how they will serve the
employment and training needs of low-income individuals,
including recipients of public assistance.
Veterans' Workforce Investment Program. This
program, which provides services to assist with reintegrating
eligible veterans into employment, duplicates the efforts of
the larger WIA programs that provide funds to aid state and
local areas in administering workforce development activities.
Under current law, veterans receive priority service at local
One-Stop career centers for employment and training services.
In fiscal year 2011, the Secretary of Labor repurposed this
program to provide services that lead to green jobs as outlined
under the Green Jobs Act, which is currently under
investigation by the IG for poor job placement results. In
addition, the president's 2013 budget request proposes to
eliminate the program, citing growing costs and limited
participant placement. Instead of a separate stand-alone
program, the SKILLS Act requires state and local workforce
investment boards to describe how they will provide employment,
training, and placement support services to veterans.
WIA Adult Program. This program, which provides
funds to state and local workforce investment boards to serve
individuals ages 18-72 with employment and job training
services, has had a poor record of training participants for
in-demand jobs. According to the Department of Labor's WIASARD
2011 report, which is a more detailed annual analysis, only
134,000 individuals between April 1, 2011 and March 31, 2012,
received training services, and only 58 percent of those
individuals received a credential. In addition, 28 percent of
individuals who received and completed services were also
counted as being enrolled under the WIA Dislocated Workers
program. The Department of Labor claims it ``served'' more than
6.6 million adults under this program between April 2011 and
March 2012; yet according to the more detailed analysis that
number is closer to 1.2 million. Out of the 1.2 million
individuals who exited the program during the previous year,
fewer than half entered employment after the first quarter and
only 268,000 retained employment in the second and third
quarters.
WIA Dislocated Workers. This program, which
provides funds to state and local workforce investment boards
to serve individuals ages 18-72 whose jobs have been terminated
or who have been laid off, has poor results and a poor track
record of training individuals for employment. According to the
Department of Labor's WIASARD 2011 report, which is a more
detailed annual analysis, only 120,000 individuals between
April 1, 2011 and March 31, 2012 received training services. In
addition, 46 percent of individuals who received and completed
services under this program were also counted as being enrolled
under the WIA Adult Program. The Department of Labor claims it
``served'' more than 1.1 million dislocated workers under this
program from April 1, 2011 to March 31, 2012. According to the
more detailed analysis, the number is closer to 761,000. Out of
the 639,000 individuals who exited this program during the
previous year, only 343,000 entered employment after the first
quarter and only 129,000 retained employment in the second and
third quarters. Instead of a separate stand-alone program, the
SKILLS Act requires state and local workforce investment boards
to describe how they will serve the employment and training
needs of unemployed workers, including displaced homemakers.
WIA National Emergency Grants. This national
program, which provides funding to state and local workforce
investment boards to assist them in responding to significant
dislocation events, is duplicative of the underlying activities
funded under statewide employment and training activities.
Under current law, states are required to reserve a portion of
their funds to carry out Rapid Response activities to help
dislocated workers and employers respond to layoffs and other
major events affecting state and local areas. The SKILLS Act
allocates additional money to the state and local level, giving
officials on the ground the ability to quickly respond to
emergencies. The bill also requires the Secretary of Labor to
reserve 3.5 percent of the Workforce Investment Fund to assist
states and local areas in the case of a natural disaster.
WIA Pilot and Demonstration Projects. This
program, which funds national pilot, demonstration, and
research projects, allows the Secretary of Labor to fund the
administration's priorities. Past projects funded under this
section of the law have included the Workforce Innovation Fund
and the Green Jobs Act. Under current law, a ``gold standard''
evaluation was supposed to be conducted more than ten years ago
to evaluate WIA programs. The Department of Labor now claims
this study will not be completed for another four years. The
Obama Administration's fiscal year 2013 budget proposes the
elimination of the program.
WIA Youth Activities. This program, which
provides disadvantaged youth ages 16-21 with education
attainment, job training, and employment services, has inflated
performance data and a poor track record of helping at-risk
youth obtain the occupational skills necessary for full-time
employment. The Department of Labor claims it ``served'' more
than 258,000 youth under this program between April 1, 2011 and
March 31, 2012. According to the Department of Labor's WIASARD
2011 report, which is a more detailed analysis, the number is
closer to 128,000. Of those who exited the program, only 35,000
participants were placed in employment and only 13,000 were
placed in education. According to GAO, five federal programs
provide employment and training services to disadvantaged youth
at a cost of nearly $4.1 billion. Collectively, the federal
government operates more than 50 major federal programs for
youth. States, counties, cities, school districts, and
nonprofits also operate programs focused on improving outcomes
for disadvantaged youth. Because of the fragmentation of youth
programs at the national, state, and local levels, federal
youth programs lack any type of coordination with state or
local programs, provide many of the same services, and share
similar goals. Instead of a separate stand-alone program, the
SKILLS Act requires state and local workforce investment boards
to describe how they will serve the employment and training
needs of youth, including out-of-school youth and at-risk
youth.
Women in Apprenticeship and Nontraditional
Occupations (WANTO). This program, which promotes the
recruitment, training, employment, and retention of women in
apprenticeship and nontraditional occupations, was proposed for
elimination under the president's fiscal year 2013 budget
request. The administration found the WANTO program is too
small to have a meaningful bearing on the number of women
participating in registered apprenticeship programs, and grants
are given to small community-based organizations that are
unable to directly report performance results. In program years
2009 and 2010 combined, six grantees had a target of 300
placements into registered apprenticeships, yet only 60
placements were made. In addition, the program is duplicative
of the larger Registered Apprenticeship program. Instead of a
separate stand-alone program, the SKILLS Act requires state and
local workforce investment boards to describe how they will
serve the employment and training needs of individuals training
for nontraditional employment.
Workforce Innovation Fund. This program, which
provides funds to state and local areas for ``innovative''
employment and training activities, duplicates the efforts of
the larger WIA programs that provide funds to state and local
workforce investment areas to carry out workforce development
activities. As the program was created through the
appropriations process and is still in its infancy, it has no
proven results despite costing taxpayers close to $200 million.
Instead of a separate stand-alone program, the SKILLS Act
allows states to use employment and training funds to provide
incentive grants to local areas for exemplary performance on
local performance measures and grants states wide latitude to
develop and administer workforce programs.
YouthBuild. This program, which aims to help at-
risk youth ages 16 to 24 obtain a general educational
development (GED) or high school diploma as well as attain
skills in the construction industry, has poor results. As of
March 31, 2010, the Department of Labor reported fewer than
half of the enrolled participants complete or ``exit'' the
program (12,483 enrollees compared to 5,975 exiters). The
program has also not met its performance goals for placement or
retention. Slightly more than 40 percent of youth who exited
the program were placed in jobs or other educational programs
compared to the goal of 70 percent. Only 64 percent of those
who attained placement retained employment or stayed in school
compared to the goal of 75 percent. The cost per participant in
the program has increased by more than 50 percent over the last
two years. In 2010, the program served only 9,847 youth at a
cost of $10,409 per participant. The department estimates the
number of youth served by the program in 2012 will decline to
5,210, resulting in a cost of $15,300 per participant. In
contrast, other youth programs are a fraction of the cost.
The Department of Labor's IG estimates 20 percent of
participants served by the program may be ineligible to
participate, and $5.7 million of direct program costs were
expended on these potentially ineligible participants. Also,
the IG determined the department lacks effective grantee
oversight; seven grantees could not demonstrate that they met
the 25 percent matching funds requirement, 10 grantees enrolled
ineligible youth, and 140 participants did not earn industry-
recognized credentials due to two grantees not providing any
type of certification to students after completing training.
According to the GAO, five federal programs provide employment
and training services to disadvantaged youth at a cost of
nearly $4.1 billion. Collectively, the federal government
operates more than 50 major federal programs for youth. States,
counties, cities, school districts, and nonprofits also operate
programs focused on improving outcomes for disadvantaged youth.
Because of the fragmentation at the national, state, and local
levels, federal youth programs lack any type of coordination
with state or local programs, provide many of the same
services, and share similar goals. Instead of a separate stand-
alone program, the SKILLS Act requires state and local
workforce investment boards to describe how they will serve the
employment and training needs of youth, including out-of-school
youth and at-risk youth.
Youth Opportunity Grants. This program, which
aims to increase the long-term employment of youth who live in
high-poverty areas with education attainment, employment, and
training assistance, has not been funded since 2003.
21st Century Workforce Commission. The Workforce
Investment Act of 1998 established and directed the 21st
Century Workforce Commission to issue recommendations to the
president and Congress within six months on the skill needs of
the information technology workforce. The commission first met
on November 16, 1999 and issued its final report with
recommendations by May 16, 2000. The SKILLS Act repeals the
authorizing language for the commission since it has completed
its mission.
Five additional programs are consolidated in the vocational
rehabilitation program outlined under Title V of the Act.
State and local workforce investment board membership
The bill amends the membership requirements of state and
local workforce investment boards to ensure the system is
demand-driven and closely linked to employers.
Under current law, state and local workforce boards must
adhere to a number of federal mandates, almost 40 in total,
dictating everything from how many people must serve on the
board to who nominates each of the representatives. As a
result, many of the current workforce board representatives are
government employees administering federally-funded programs.
This federal interference in local decision-making has caused
workforce boards to become bloated and unwieldy, making
strategic planning difficult and limiting a board's ability to
respond quickly to changing workforce and industry needs.
During the hearing on February 26, 2013, entitled,
``Putting America Back to Work: Reforming the Nation's
Workforce Investment System,'' Todd Gustafson, Executive
Director of Michigan Works! Berrien-Cass-Van Buren, explained
the need for a streamlined board and increased business
leadership:
``For boards to have the greatest strategic impact
and productivity they have to be business led and be a
manageable size. Locally run and accountable boards
governed by the end-user of the system, business, make
the system more responsive, innovative, and less
bureaucratic. Eliminating the 19 federal mandates on
representation will further strengthen business
engagement. Requiring two-thirds of board members to be
employers will enhance the shift from a supply side
designed system to a demand or market driven system.
Mandating board representation stifles board member
recruitment and often forces the creation of large
unmanageable and unengaged boards. Eliminating mandates
will also help attract higher caliber local business
and community leaders who otherwise feel disempowered
and ultimately uninterested among a large unfocused
group. Smaller boards are a best practice in both the
private for-profit and non-profit sectors and should be
applied to the government's workforce system.''
With a growing skills gap standing between workers and
available job opportunities, the workforce investment system
must reflect the expertise and needs of the nation's job
creators. H.R. 803 strengthens the role of employers by
requiring a two-thirds business majority on both state and
local workforce investment boards and removing nearly all
federal requirements on board membership. This dramatically
reduces the size of the boards, making them more manageable and
focused on strategic decisions.
Similar to current law, governors would retain the right to
expand state board membership beyond business and economic
development representation and chief elected officials. Chief
elected officials would retain the authority to appoint local
board membership beyond business representation. Such members
could include members of the state legislature and
representatives of youth organizations, community colleges,
community-based organizations, veterans' service organizations,
and One-Stop partners.
State workforce investment board functions and state plans
The SKILLS Act amends the required functions of state
workforce investment boards. It requires states to review and
develop statewide policies and programs that support a
comprehensive statewide workforce development system, including
determining whether the state should consolidate additional
programs into its Workforce Investment Fund. State boards are
also tasked with developing strategies across local areas that
meet the needs of employers and support economic growth in the
state, identifying and disseminating information on best
practices for effective operation of One-Stop centers, and
ensuring the appropriate use of funds for statewide employment
and training activities.
H.R. 803 eliminates the grandfathering provisions that
allow states to use entities in existence prior to the
enactment of the Workforce Investment Act of 1998 in place of
state workforce investment boards. The committee notes state
boards are an important component of the reforms underlying
WIA, and this change is intended to ensure state boards, with
their enhanced functions, are established and business-driven.
The bill also allows the state board to hire staff to assist in
carrying out its functions.
The legislation also revises the WIA planning cycle to
require state plans be submitted every three years instead of
every five years. This is intended to ensure state plans are
dynamic documents that are regularly updated to reflect
changing economic situations and state and local priorities.
The committee believes this change will not create an undue
burden on states because the submission of a new plan simply
requires reviewing and updating the previous plan if
significant changes are not warranted.
While creating a more simple and universal structure, the
committee believes the workforce development system must meet
the needs of certain populations. Therefore, H.R. 803 requires
states to develop targeted plans to serve special populations,
including dislocated workers, low-income individuals, English
learners, homeless individuals, individuals training for
nontraditional employment, youth, older workers, ex-offenders,
migrant and seasonal farmworkers, refugees and entrants,
veterans, Native Americans, and long-term unemployed
individuals, including those who have exhausted state and
federal unemployment compensation.
The committee recognizes the obligation states have in
providing services to individuals with disabilities in a manner
consistent with the requirements of civil rights laws, such as
the Americans with Disabilities Act and sections 504 and 508 of
the Rehabilitation Act of 1973. These laws are crucial to
protecting the rights of individuals with disabilities to
participate fully in society. In H.R. 803, the committee
reaffirms this obligation by including requirements for state
plans to ensure the rights of individuals with disabilities are
protected and reasonable accommodations are provided so these
individuals can fully participate in the programs and services
supported under this Act.
As a condition of receiving funds, state workforce
investment boards are required to detail the strategies and
services that will be used to help at-risk youth and out-of-
school youth acquire the education, skills, credentials, and
employment experience necessary to succeed in the workplace.
These services include: training and internships in in-demand
industries, dropout recovery activities designed to lead to the
attainment of a regular high school diploma, and activities
combining remediation of academic skills and work experience
with linkages to postsecondary education.
The committee seeks to make the entire workforce investment
system more demand-driven and responsive to the needs of
employers. By doing so, the workforce system will train workers
for in-demand jobs. H.R. 803 requires states to include in
their plans a description of any programs and strategies they
will utilize to meet the needs of all businesses, including
small businesses. These include convening industry or sector
partnerships to address the immediate and long-term skill needs
of the workforce and the needs of small businesses. The
committee notes that, while strategic planning and delivery of
services most appropriately belongs with local areas, the One-
Stop delivery system created under WIA would be improved with
greater continuity of services within states. As a result, H.R.
803 includes new functions for the state board regarding
statewide policies for the One-Stop career center system. These
include the development of criteria for and issuance of
certifications of One-Stop centers, allocation of One-Stop
infrastructure funding, and approaches to facilitating
equitable and efficient cost allocation in the One-Stop
delivery system. The establishment of state-level criteria for
One-Stop centers should lead to better, more consistent
performance within states.
Local workforce investment board functions and local plans
The committee strongly supports the governance structure of
local control embodied in the Workforce Investment Act. The
committee believes important employment and training decisions
are best developed and administered at the local level, closest
to the business community and workers. H.R. 803 maintains this
important concept by driving more authority and funding to
local workforce investment boards. At the same time, the
legislation recognizes the nation's workforce development
system must change if it is to remain relevant and responsive
to our economic challenges.
While states are permitted to engage in regional planning
and cooperation among local areas that serve a single labor
market area, economic development region, or other appropriate
contiguous sub-area of a state, the law's grandfathering
provision stifles such innovation. This clause allows local
areas in existence prior to 1998 to remain in existence, which
has prevented many states from developing a workforce
investment system that best correlates with their regional
economy. H.R. 803 repeals the grandfather clause and allows
governors to designate local workforce investment areas based
on a series of considerations that align these areas with
economic development and regional labor markets.
As President and Chief Executive Officer (CEO) of Workforce
Florida Inc., Chris Hart outlined in his testimony during the
February 26, 2013 subcommittee hearing entitled, ``Putting
America Back to Work: Reforming the Nation's Workforce
Investment System'':
``The SKILLS Act proposes important changes that
facilitate regional alignment of markets and resources
rather than forcing the acceptance of the status quo.
It also strengthens the authority of governors to
designate the boundaries of workforce areas. We agree
and support these provisions--The SKILLS Act will allow
our state and others to accelerate innovative, market-
responsive strategies for even higher performance and
results aimed at improving our nation's talent
competitiveness.''
Under H.R. 803, local boards are required to conduct a
workforce needs analysis of their region, which will aid in
determining the industries that are hiring and growing, as well
as the types of skills and training needed to meet that demand.
The bill requires local boards to use this analysis to reserve
a certain percentage of funds for training. This provides local
areas with the flexibility and the authority to determine their
own region's priorities while quickly reacting to the workforce
training needs of area residents. For far too long, our
nation's workforce investment system has not focused adequate
resources on direct training services to unemployed and
underemployed workers. Only 14 percent of WIA participants
actually receive and complete training services that can
provide the important skills necessary to succeed in the
workplace. This provision ensures local boards are targeting
funding to training individuals for in demand occupations and
preparing workers for the jobs of today and tomorrow.
Similar to the state plan requirement, H.R. 803 requires
local areas to include in their plans a description of the
strategies and services that will be initiated in the local
area to engage employers in workforce development activities to
ensure local workforce investment activities remain demand-
driven and responsive to changing employer needs. The bill
requires local areas to engage small employers, as well. The
bill requires local boards to develop industry-sector
partnerships to better coordinate and align resources. The
committee encourages local areas to initiate other employer-
focused efforts such as career ladder programs, utilization of
business intermediaries, and coordination with economic
development activities. These strategies and many others could
help local areas ensure the One-Stop system contributes to the
economic growth of local areas.
Current law requires each local area to have a youth
council to advise the local board on activities related to
youth. The committee understands these councils have been
ineffective in some areas and burdensome to create and operate.
Maintaining participation by parents, youth, educators, and
other groups has proven difficult. The committee believes local
areas should have the option to create such councils if they
add value and benefit services to youth in the area.
Under WIA, states have the authority to use entities in
existence prior to the enactment of WIA in place of local
boards. This grandfathering provision is repealed under H.R.
803 to ensure the most effective local boards are in place.
Further, the local workforce investment planning cycle is
reduced from five years to three years to be consistent with
the state planning cycle and to promote using the plan to
address changing economic circumstances and priorities.
Just as states are required to describe in their plans how
they will address the needs of individuals with disabilities
consistent with civil rights laws, local areas also must
provide services to individuals with disabilities in a manner
consistent with the requirements of civil rights laws, such as
the Americans with Disabilities Act and sections 504 and 508 of
the Rehabilitation Act of 1973. To that end, the bill includes
the same requirement for local plans as for state plans.
Similarly, local boards are required to address in their
plans how they will serve at-risk and out-of-school youth in
acquiring the education and skills, credentials, and employment
experience necessary to succeed in the workforce. The committee
encourages local areas to develop strategies that focus on high
school dropout recovery efforts and attainment of regular
secondary school diplomas. Local boards are also required to
develop targeted plans to serve special populations, including
dislocated workers, low-income individuals, English learners,
homeless individuals, individuals training for nontraditional
employment, youth, older workers, ex-offenders, migrant and
seasonal farmworkers, refugees and entrants, veterans, Native
Americans, and long-term unemployed individuals, including
those who have exhausted state and federal unemployment
compensation.
The committee recognizes our nation's economy is dynamic,
and the types of growing industries are constantly changing.
While a number of select industries, such as health care, are
in-demand in most communities across the country, the decision
on what industries are best suited for a particular state or
local area and what professions workers should be encouraged to
pursue should remain with state and local leaders.
One-stop delivery system
One of the hallmarks of the workforce development system is
the approach that encourages the development of comprehensive
efforts to improve services for employers and job seekers. This
effort seeks to increase access to federal and state resources
available to help individuals obtain the training of their
choice at one centralized location.
Currently, 19 federal programs operate as mandatory partner
programs within the One-Stop delivery system. In addition to
the programs authorized under Title I of WIA, the programs
include career education, veterans' employment and training
programs, welfare-to-work, employment services, vocational
rehabilitation, trade adjustment assistance, and adult
education, to name a few. H.R. 803 adds the Temporary
Assistance for Needy Families (TANF) program as a mandatory
partner in the One-Stop Career Center system. All of these
programs must make their services available through the One-
Stop centers. In addition, optional partner programs may
provide their services through the system if the local board
and the chief elected official for the area permit the
inclusion and the partner program agrees to such participation.
H.R. 803 removes from the mandatory One-Stop partner list
those programs that are consolidated into the main Workforce
Investment Fund. The bill includes additional optional partner
programs, such as employment and training programs operated by
the Small Business Administration, employment and training
services provided by public libraries, and programs serving
individuals with disabilities. The addition of these programs
enhances opportunities to coordinate employment and training
services, particularly for special populations.
Under H.R. 803, provisions regarding the establishment of
One-Stop delivery systems are moved from Chapter 5
(Comprehensive Adult Employment and Training Activities) to
what is now Subtitle B (Statewide and Local Workforce
Investment Systems) so as to reinforce the creation of a One-
Stop delivery system independent of WIA employment and training
funds. Incorporating these provisions in the general workforce
investment system subtitle is intended to clarify the
requirements applicable to the One-Stop delivery system.
The One-Stop centers across states have not provided
consistent services to consumers, whether job seekers or
employers. Therefore, H.R. 803 requires all One-Stop operators
to be designated through a competitive process, removing the
provision that allows three or more One-Stop partners to form a
consortium to operate a center, and infusing higher quality
operators throughout the system. In addition, the bill calls on
the state board to establish procedures and criteria for
certifying One-Stop centers and issue certifications based on
those procedures and criteria. The criteria include state-
developed minimum standards relating to the scope and degree of
service integration achieved by the centers involving the
programs provided by the One-Stop partners. The effect of
certification is to make One-Stop centers eligible for
infrastructure grants. The intent of the certification process
is to promote consistency and quality in the services provided
by One-Stop centers in a state. No One-Stop is required to
obtain certification, and local boards retain authority over
the identification of One-Stop operators.
Under current law, One-Stop centers must provide access to
the programs and activities carried out by partner programs.
Each partner must make available to clients the core services
applicable to their program. There must be at least one
comprehensive One-Stop center in each local area, which can be
supplemented through a network of affiliated sites if the
mandatory partners do not fully co-locate. One-Stop partner
programs are required to contribute a portion of their funds
for the operation of the One-Stop delivery system. The
appropriate portion is to be determined through the Memorandum
of Understanding (MOU) development process at the local level.
However, this process has resulted in uncertainty of funding
and contention among program operators and has forced WIA
funding streams to pay for a large share of infrastructure
costs, thus reducing funds available for training.
In order to provide a stable source of infrastructure
funding on a statewide basis, H.R. 803 requires each of the
One-Stop partner programs to provide a portion of program funds
to the governor, who then will allocate such funds to the local
areas for the certified One-Stop centers in the state. The
portion of funds to be provided by each One-Stop partner will
be determined by the governor in consultation with the state
board. The committee believes the decision on the amount of
such funding is best determined within each state depending on
each state's needs and delivery systems, and arbitrary limits
or floors should not be established at the federal level.
When determining the amount of contribution from each
program, the governor must consider the proportionate use of
the One-Stop centers by the programs and cost of administering
the programs not related to One-Stop centers. The
infrastructure funding must come from the programs'
administrative funds and are subject to the programs'
administrative cost limits. All mandatory partner programs,
except vocational rehabilitation and unemployment insurance,
have administrative caps that are either established in statute
or negotiated as part of a grant. For instance, career and
technical education currently has a 5 percent administrative
cap, and veterans programs' administrative limits are
negotiated as part of the grant. For federal mandatory spending
programs, which include TANF and vocational rehabilitation
services, the programs' contributions cannot be in excess of
their proportionate use of the centers. The committee expects
the portion of funds provided by mandatory partners for
infrastructure costs will be a very small percentage of the
programs' funds, proportionate to the programs' contribution to
and use of the One-Stop system.
The governor is required to distribute the funds to
certified One-Stop centers based on a formula the state board
will develop. The formula shall include factors the state
determines are appropriate, which may include the number of
certified centers in a local area, the population served by
such centers, and the centers' performance.
While the infrastructure funding provided through these
grants will address the primary common costs of operating One-
Stop centers, some common costs will remain. Thus, partner
programs and local boards will continue to develop MOUs to
specify how such costs would be paid. Remaining common costs
include personnel and the cost of providing work ready services
applicable to participants for each program. Since the basic
infrastructure costs would already be addressed, these
remaining cost items should be easier to resolve.
Providers of training services
WIA created an eligible training provider list to give
customers flexibility in selecting a provider that meets their
individual training needs. However, current eligible training
provider provisions include requirements that have proven to be
overly burdensome with respect to the specific information
required and the scope of the reporting (i.e. reporting
performance outcomes for all students in a training program and
not just WIA-funded students). Rather than increasing consumer
choice as intended, the current requirements have had the
unintended effect of reducing customer choice as many qualified
providers, including community colleges, choose not to
participate in the system.
H.R. 803 gives states the authority to determine what
provider information and data will be required to establish a
list of eligible training providers. This allows for
flexibility to design procedures that respond to the needs of
each state. To ensure the quality of providers, states must
establish criteria that include the performance of providers
with respect to WIA's performance indicators. States may
include other factors appropriate to ensure the quality of
services and the accountability of providers, including whether
providers of training allow participants to attain a
certification or credential, or demonstrate mastery. In
addition, states are required to ensure providers submit
appropriate information to assist consumers in selecting
training programs. Such state-developed criteria will be
established with the input of local areas and training
providers. The intent is to ensure the retention of key
elements in promoting consumer choice and provider
accountability while allowing states to simplify the process so
more qualified training providers will participate.
During the markup, the committee adopted an amendment
offered by Rep. Susan Brooks (R-IN) to require workforce
investment boards to identify those providers that are
demonstrating the highest levels of success on performance
indicators and deem them priority providers. This gives
participants and local boards a more accurate picture when
choosing training providers. In addition, the amendment allows
state and local boards to implement pay-for-performance
strategies to reward those providers that are consistently
outperforming their peers.
The committee encourages states to examine whether training
providers offer the opportunity to obtain industry-recognized
credentials. The committee recognizes such certifications or
credentials may allow states to validate available training,
and the attainment of a certification or credential may
increase individuals' ability to find good jobs that utilize
such training.
The committee remains determined to protect the
confidentiality of all personally identifiable information
about students, and believes such information must not be
released without appropriate permission from students or their
parents. Therefore, H.R. 803 specifies that the new training
provider eligibility criteria must comply with the Family
Educational Rights and Privacy Act (FERPA).
Certified apprenticeship programs are automatically
qualified to serve as training providers. In addition, H.R. 803
retains language from current law allowing governors to create
separate requirements for providers of on-the-job training or
customized training, since these are tailored specifically to
one employer or occupational field.
Employment and training activities
H.R. 803 amends Chapter 5 of WIA to establish a
comprehensive program of employment and training activities for
individuals age 16 and older. As discussed earlier in the
report, the bill consolidates 35 employment and training
programs, including the three separate WIA funding streams (WIA
Adult, WIA Dislocated Worker, and WIA Youth) and the Employment
Services funding stream under the Wagner-Peyser Act. These
current programs have separate funding formulas, eligibility
criteria, performance measures, reporting requirements, and
other elements, though they largely serve the same populations.
Under current law, Employment Services are to be co-located
with One-Stop centers. However, contrary to the intent of WIA,
some areas have retained separate Employment Services offices.
Consequently, unnecessary duplication of services and confusion
for customers (both job seekers and employers) has resulted.
Consistent with the principles of program integration
underlying WIA, the bill's consolidation proposal will simplify
and enhance the delivery of services to adults and youth and
allow states and local areas to tailor services to meet the
needs of the local communities.
H.R. 803 changes the title of Chapter 5 from ``Adult and
Dislocated Worker Employment and Training Activities'' to
``Employment and Training Activities''. Throughout the bill,
references to the separate adult, dislocated worker, and youth
funding, which are being consolidated, are eliminated to
reflect the universal nature of the Workforce Investment Fund.
H.R. 803 authorizes the Secretary of Labor to reserve half
of 1 percent of the amount appropriated for the WIF to carry
out national activities, with 50 percent to be used for
technical assistance and 50 percent to be used for evaluations.
The bill also authorizes the secretary to reserve up to 1
percent of the amount appropriated to make grants to and 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 employment and training activities. These
important programs must adhere to the common performance
measures.
The secretary may also reserve up to 25 percent of funds of
the total amount appropriated to carry out the Job Corps
program described later in this report and allows the secretary
to reserve not more than 3.5 percent of the total amount
appropriated to provide grants to states and local areas to
address mass layoffs and natural disasters. The remaining
amount would be allotted to states, with up to one-fourth of 1
percent reserved for the provision of services in outlying
areas.
H.R. 803 creates a new formula to reflect the more relevant
criteria from the funding streams consolidated into the
Workforce Investment Fund. The formula is calculated by
dividing equally the relative number of unemployed individuals
in a state, the relative number of individuals in the civilian
labor force in a state, the relative number of individuals who
have experienced long-term unemployment of 15 weeks or more in
a state, and the relative number of disadvantaged youth in a
state.
The bill also contains a provision that holds states
harmless for three years against what they would have received
in fiscal year 2012 for the programs under Title I of WIA;
Title V of the Older Americans Act of 1965; the Women in
Apprenticeship and Nontraditional Occupations Act; Sections
4103A and 4104 of Title 38, United States Code; and Sections 1-
14 of the Wagner-Peyser Act. For states that would receive an
increase in 2014 under the new formula, their increase is
capped at 130 percent of the allotment percentage of the state
for fiscal year 2012. For fiscal year 2017 and each succeeding
year, the formula ensures states receive a minimum percentage
that is not less than 90 percent of the previous year's
allotment and a maximum percentage of 130 percent of the
previous year's allotment.
The committee notes these protections should create more
stability in funding for states. Currently, the WIA Dislocated
Worker funding stream has no stop-loss or stop-gain
protections. While the formula in current law was designed to
allow funds to flow to those states most in need, there have
been significant shifts in funding from year to year. As a
result, states have been unable to plan their programs
effectively. The new provisions should reduce this instability.
The formula also includes a small state minimum allotment
of one-fifth of 1 percent to ensure small states have
sufficient resources to operate a viable program. Currently,
both the WIA Adult and Wagner-Peyser formulas include small
state minimums.
H.R. 803 further specifies within state allocation of
funds. The bill authorizes governors to reserve up to 15
percent of the state's allotment for statewide activities. H.R.
803 has a much larger authorized level for appropriations due
to the consolidation of programs and is comparable to the level
of resources currently administered at the state level under
WIA.
Under statewide activities, states must use funds to carry
out rapid response activities to assist local areas that
experience disasters, mass layoffs, or other events that
precipitate substantial increases in the number of unemployed
individuals. States are also required to support the provision
of work ready services for job seekers in the One-Stop delivery
system, implement strategies and services to assist at-risk and
out-of-school youth, and conduct evaluations of all employment
and training services. The bill also allows states to spend
funds on implementing innovative programs to meet the needs of
employers, including incumbent worker training and
entrepreneurial training; developing strategies for integrating
programs and services among One-Stop partners; facilitating
access to remote areas through the use of technology; and
incorporating pay-for-performance contracting strategies as an
element in funding employment and training activities. The bill
also retains the current law limitation on state administrative
expenses, which are not to exceed 5 percent of the governor's
set aside.
Further, governors must reserve 15 percent of their state
set aside funds to award competitive grants to eligible
entities assisting individuals with barriers to find and retain
full-time, unsubsidized employment. This new reservation
provides additional support to local areas to assist hard-to-
serve individuals (ages 16 and older) in obtaining a regular
secondary school diploma or its recognized equivalent,
industry-recognized credentials, postsecondary training, and
employment. The committee believes that, rather than creating
separate national programs, priorities, and funding streams for
particular individuals or groups, states should be given the
flexibility and decision-making power to prioritize funds
towards the individuals most in need in their communities.
Unlike the current system in which only a handful of national
programs targeted to special populations have been evaluated,
H.R. 803 requires states to evaluate employment and training
programs, making it easier for the public to learn whether
programs are helping workers find a job.
The remaining overall state allotment is to be allocated to
local areas within the state. Under the bill, the same formula
used to distribute funds to states is used to distribute funds
to local areas, including the stop-loss and stop-gain
provisions described earlier to stabilize funding. H.R. 803
also retains the current administrative cost limit under which
local areas may not expend more than 10 percent of the
allocation for administrative costs. The legislation adds a new
definition of ``administrative costs'' which includes
expenditures incurred by state and local workforce investment
boards, direct recipients, local grant recipients, local fiscal
agents or local grant sub recipients, and One-Stop operators in
the performance of administrative functions and in carrying out
activities which are not related to the direct provision of
workforce investment services (including services to
participants and employers). The bill also requires states and
local areas to report on the percentage and dollar amount spent
on administrative costs annually.
Under current law, both WIA and the Wagner-Peyser Act
provide funds for services to connect job seekers with
available jobs, including job search and placement assistance.
Regardless of income, all individuals are eligible to receive
these services. Many One-Stop career centers offer such
services through self-serve computer stations. Under WIA, these
are called ``core services'' while under Wagner-Peyser they are
called ``labor exchange services.'' Although each law has a
different term, the services are essentially the same. Through
WIA, two other levels of services also are provided.
``Intensive'' services include comprehensive assessments, case
management and one-on-one career counseling, short-term
prevocational services, and more. ``Training'' services include
occupational skills, on-the-job, entrepreneurial, customized,
and other training. Under current law, an individual must
utilize at least one service in each level before moving on to
the next level of service. While there is no federally required
minimum time period for participation in core and intensive
services before one can access training assistance, some states
have interpreted current law as requiring all participants to
participate in core services for a specified period of time
before becoming eligible for intensive services, and likewise
requiring intensive services before training. This has
sometimes resulted in denied or delayed services, and limited
the flexibility of states and local areas to tailor services to
meet individual needs.
To address these issues regarding the ``sequencing of
services,'' H.R. 803 combines core and intensive services into
a new ``work ready'' set of services, effectively nullifying
the eligibility requirements for proceeding onto the next level
of services if an individual is determined to be in need of
those services. The bill incorporates two functions
specifically identified in the Wagner-Peyser Act to the list of
allowable work ready services: appropriate recruitment services
for employers and the administration of the work test for the
unemployment compensation system. Additional new services are
added to the list, including internships and work experience;
literacy activities relating to basic work readiness,
information and communication technology, and finances; and
out-of-area job search and relocation assistance. The committee
believes allowing literacy activities to be provided as a work
ready service, not just a training service, will increase
access to such services for those who need them. The committee
also recognizes nearly all job seekers need to know how to
find, use, manage, and evaluate information resources
efficiently. The committee encourages One-Stop centers to offer
opportunities to acquire skills in the area of communication
technology literacy.
Among the types of entities local boards may contract with
to provide work ready services are public non-profit service
providers. The committee notes this language from current law
should not be construed as limiting eligibility to non-profit
entities that exist solely to provide these types of services.
In particular, the committee notes a wide variety of non-profit
entities that may have broader missions, but have the capacity
to leverage funds received through local workforce boards, such
as public libraries. The committee encourages local areas to
consider creating relationships with entities such as libraries
when they already are providing similar services.
The committee also recognizes private-sector employment
agencies play an important role in providing employment
opportunities to America's workforce. The committee encourages
local boards and One-Stop operators to refer to and contract
with such firms. This will enhance the ability of local boards
and One-Stop operators to make job placements, especially to
businesses that do not traditionally use One-Stop services to
fill vacancies.
The committee aims to address the unique training needs of
individuals who are English learners. H.R. 803 allows
occupational skills training to be combined with English
language acquisition. Integrated training programs that provide
language instruction in the context of job training have
demonstrated remarkable employment outcomes for job seekers and
positive results for employers. These enhancements to training
opportunities should increase employment for our country's
immigrant populations.
Under current law, the adult funding stream serves all
adults but prioritizes low-income individuals. H.R. 803 removes
the priority of service in the rewrite of the Workforce
Investment Fund. One of the hallmarks of the workforce
investment system is that it is a universal access program in
which any American in need of employment and training services
can receive the education and skills he or she needs to get a
job. Under the bill, states and local areas must detail how
they will serve the needs of all individuals, including low-
income individuals, dislocated workers, English learners, and
veterans, among others. Instead of setting artificial limits on
who should receive training, the bill aims to increase the
amount of training for everyone and allows state and local
leaders to determine who is most in need in their community.
Training is currently provided primarily through
``individual training accounts,'' or ITAs. Individuals that
receive an ITA voucher can choose training courses available
through eligible training providers. The committee believes
local areas should have the flexibility to combine funds
available for training under WIA with other training resources.
Therefore, H.R. 803 authorizes local areas to assist
participants in enhancing these accounts so funds from other
sources may be included and renames them ``career enhancement
accounts.'' This is intended to facilitate the acquisition of
training and maximize the number of individuals who obtain
training.
H.R. 803 permits local boards to award contracts to
institutions of higher education identified as priority
eligible training providers to facilitate the training of
multiple individuals in in-demand industries, provided such a
contract does not limit customer choice. This provision allows
community colleges and other institutions of higher education,
including proprietary colleges, to provide specialized group
training programs designed for employers who are looking to
hire several workers with a particular skill.
H.R. 803 adds new activities to the current list of
permissible activities local areas may carry out. Current
activities include customized screening and referral services
for employers and other customized employment-related services
for employers on a fee-for-service basis. New allowable
activities include providing customer supports, such as
transportation and childcare services, for special participant
populations that face multiple barriers to employment,
including individuals with disabilities. These supports can
often contribute to job retention and enhance employment. The
committee has also learned such populations, especially
individuals with disabilities, have not been as well served
through the One-Stop system as Congress intended. The committee
anticipates this additional assistance to such individuals will
increase their utilization of the One-Stop delivery system and
improve the quality of services they receive. In addition,
employment and training assistance provided in coordination
with child support enforcement activities of the state agency
carrying out Title IV-D of the Social Security Act is also
included as a permissible activity. This coordination is
intended to facilitate the employment of unemployed or
underemployed non-custodial parents, thus enabling them to pay
child support.
In addition, local areas may engage in activities to
improve services to businesses, including small employers in
the local area, and increase linkages between the local
workforce investment system and employers. Local areas may also
facilitate remote access to services provided through the One-
Stop delivery system, including facilitating access through the
use of technology. This is critical to ensure rural areas are
served adequately. Local areas may incorporate pay-for-
performance contracting strategies as an element of funding
employment and training activities to ensure the system is not
continuing to pay for strategies that have not demonstrated a
record of success.
An additional permissible activity for local areas is the
development and implementation of incumbent worker training
programs. Under current law, incumbent worker programs are only
authorized at the state level. Under H.R. 803, local boards may
provide incumbent worker training, as long as it is carried out
in conjunction with the workers' employers for the purpose of
helping the workers obtain the skills necessary to retain
employment and avert layoffs. Employers participating in
incumbent worker training programs are required to pay a
portion of the costs of training for the incumbent workers,
which is left up to local boards to establish. This provision
is intended to provide some flexibility for the One-Stop system
to respond to the needs in the local area and help prevent
potential layoffs. The matching requirement is intended to
ensure appropriate employer commitment to the training program.
Local areas are required to prioritize placing participants
into private sector jobs. The committee believes enhancing
private sector business growth and limiting the size and scope
of the government are the best outcomes for American workers
and improve our country's economic outlook.
Each One-Stop career center is also required to employ a
veterans' employment specialist to help veterans, including
those returning from Afghanistan and Iraq, find and retain
employment. These specialists function similarly to the Local
Veterans' Employment Representatives currently in many One-Stop
centers across the country, and conduct outreach to employers
as well as provide transition services to those military
service men and women leaving the armed services. H.R. 803 also
integrates the Disabled Veterans' Outreach Program into the
Workforce Investment Fund; requires state and local areas to
detail how they will furnish employment and training services
to veterans, including disabled and homeless veterans; and
requires states and the Secretary of Labor to measure and
report on the outcomes achieved by participating veterans
disaggregated by local communities.
Youth provisions
According to GAO, more than 50 major programs funded by the
federal government help at-risk youth obtain the education and
skills necessary to succeed in the workforce. These programs
often lack coordination and have failed to adequately improve
outcomes for our nation's young people. H.R. 803 includes
several important provisions to address the needs of at-risk
and out-of-school youth. First, state and local workforce
investment boards are required to detail the strategies and
services that will be used to assist at-risk youth and out-of-
school youth in acquiring the education and skills,
credentials, and employment experience to succeed in the
workplace. Second, the Workforce Investment Fund, as well as
the state set-aside for individuals with barriers to
employment, has reduced age limitations from 18 to 16 years of
age, ensuring youth are eligible for all employment and
training activities.
Third, local workforce boards are required to conduct a
workforce needs analysis and direct funds based on those
identified as most in need, which include at-risk youth and
out-of-school youth. This provides local leaders, who know best
the needs of the community, with flexibility and authority to
determine their own priorities. If local officials want to use
a significant amount of federal funds for youth employment and
training services, they can do so.
Finally, the secretary is required to reserve 25 percent of
the total amount appropriated to fund a national Job Corps
program for at-risk youth. H.R. 803 makes important reforms to
the program, as outlined below, to ensure these young people
are receiving high quality instruction and training to obtain
employment and advance in careers.
Performance accountability system
According to GAO's report that examined the multiple
federal job training programs, only five had undergone an
impact evaluation to determine if the program was meeting the
needs of individuals it was slated to serve. Without a true
picture of the effectiveness of job training programs, how can
federal, state, and local policymakers accurately and quickly
assist workers in finding a job, help employers hire skilled
workers, and grow our regional economies?
As Larry Temple, executive director of the Texas Workforce
Commission, said during a May 11, 2011 subcommittee hearing
entitled, ``Removing Inefficiencies in the Nation's Job
Training Programs'':
``. . . [W]e need to move to an outcome driven system
rather than a process driven system. We need to look
closely at what works and what does not. We understand
accountability and we understand that while the process
is important--from the customer's perspective, what is
achieved at the end of the day is what constitutes the
measure of your work. Far too often these federal
programs are measured by the process, not the
outcome.''
Since passage of WIA, states and local areas have raised
concerns about the 17 statutory performance measures applicable
to formula programs. The current performance measures have been
perceived as excessive and overly burdensome. In addition,
questions have been raised about the utility of certain
federally required measures (such as customer satisfaction).
To promote consistency in the measures applicable to
federal employment and job training, H.R. 803 reduces the
number of performance measures from 17 to six and applies them
to all employment and training programs, including the Adult
Education and Family Literacy Act provisions outlined under
Title II of WIA and the Amendments to the Rehabilitation Act of
1973 under Title IV of WIA.
The core indicators of performance the committee believes
all employment and training programs should measure include:
The percent and number of program participants who
are in unsubsidized employment for six months after exiting the
program;
The percent and number of program participants who
are in unsubsidized employment for a full year after exiting
the program;
The median earnings of program participants six
months after exiting the program compared to their earnings
prior to receiving training;
The percent and number of participants who obtain
a recognized postsecondary credential, a registered
apprenticeship, an industry-recognized credential, or a regular
secondary school diploma or its recognized equivalent during
participation in or within one year after exiting the program;
The percent and number of participants who enroll
in an education or training program that leads to a credential
and are achieving measureable basic skill gains; and
The percent and number of participants who obtain
unsubsidized employment in a field related to the training
services they received.
Additionally, all core indicators of performance, training
services, and discretionary One-Stop delivery services are to
be disaggregated by the targeted populations described in the
local plan, and states are required to maintain a central
repository of policies related to access, eligibility,
availability of services, and other matters approved by the
state and local boards. The committee supports enhanced
accountability and policies that encourage the identification
of individuals who are not receiving adequate assistance in the
quest to find and retain employment.
The committee believes the customer satisfaction measure
does not provide a uniform standard by which to evaluate
employment and training programs on a national level.
Therefore, the bill strikes references to the customer
satisfaction measure. However, states are explicitly permitted
to utilize customer satisfaction measures, and the committee
urges states and local areas to utilize such measures to
evaluate the effectiveness of their outreach programs and
engage in continuous improvement.
Currently, outcomes data is only collected for those
individuals who register for intensive training services.
Individuals accessing only core services are not required to
register for such services and little information is available
regarding the employment status of such individuals and the
benefit of One-Stop services. By requiring all employment and
training programs to use a common set of performance
indicators, federal, state, and local policymakers will have an
accurate and clear picture of which programs are working.
Under current law, the levels of performance for each
indicator are negotiated between the Secretary of Labor and
each state. One concern is these negotiations do not
sufficiently consider economic conditions and the
characteristics of the population to be served, thus
discouraging services to special populations. H.R. 803 replaces
the current language with a requirement that levels must be
adjusted based on those factors. The bill also identifies the
kinds of economic characteristics (unemployment rates and job
losses in particular industries) and participant
characteristics (indicators of poor work history, lack of work
experience, disability status, low levels of literacy or
English proficiency, and welfare dependency) to be considered.
Amendments to the local performance measures parallel the
amendments made to the state performance measures. The same
performance indicators are applied to local areas and the
levels of performance negotiated between governors and local
areas are required to be adjusted based on economic conditions
and the characteristics of the population served.
In an effort to gauge program efficiency, state and local
areas will also report:
The number of individuals who received work-ready
and training services during the most recent program year,
fiscal year, and the preceding five program years; as well as
where the individuals received the training, disaggregated by
the type of entity that provided the training.
The number of individuals who successfully exited
work-ready and training services during the most recent program
year, fiscal year, and the preceding five program years; as
well as where the individuals received the training,
disaggregated by the type of entity that provided the training.
The average cost per participant of those
individuals who received work-ready and training services
during the most recent program year, fiscal year, and the
preceding five program years; as well as where the individuals
received the training, disaggregated by the type of entity that
provided the training.
State and local performance measures will be negotiated
every two years.
Rebecca Metty-Burns, the executive director for the
division of workforce and economic development at the College
of Southern Nevada, summarized the importance of the bill's
efforts to increase accountability in her testimony during an
August 30, 2011 committee field hearing in Las Vegas, Nevada
entitled, ``Examining Local Solutions to Strengthen Federal Job
Training Programs'':
``Hold us accountable but have the accountability
make sense to the needs of the community and have
measurements and outcomes that reflect true progress
based on the competencies needed by industry.''
The committee believes that with the new flexibility in the
use of federal funds envisioned under H.R. 803 comes tremendous
responsibility. In no way does this legislation constitute a
blank check. Unlike the current workforce system in which only
a handful of programs have been evaluated, H.R. 803 establishes
common performance measures that will make it easier for the
public to learn whether programs are helping workers find a
job, and includes new provisions to ensure programs that
demonstrate a pattern of failure lose funding.
Under current law, the secretary may reduce state funds by
5 percent if the state fails to meet its performance targets
for two consecutive years. H.R. 803 requires the secretary to
reduce state funding and returns those funds to the U.S.
Department of Treasury. Similarly, a governor must take
corrective action if a local area fails to meet its performance
targets for a second consecutive year. If an area fails to meet
performance for a third year, a governor must reduce the amount
of the grant based on the degree of failure to meet local
levels of performance.
Finally, the bill requires the secretary to use the core
indicators of performance to assess the effectiveness of
mandatory partner programs carried out by the Department of
Labor. This action must be consistent with the requirements of
the applicable authorizing laws of those programs.
Authorization of appropriations
H.R. 803 authorizes appropriations for the Workforce
Investment Fund for fiscal years 2014 through 2020. The
committee authorizes $6,245,318,000 for fiscal year 2014 and
each of the six succeeding fiscal years. This amount is equal
to the appropriated amount for fiscal year 2012 for Title I of
WIA; Title V of the Older Americans Act of 1965; Sections 1-14
of the Wagner-Peyser Act; the Women in Apprenticeship and
Nontraditional Occupations Act; and Sections 4103A and 4104 of
Title 38, United States Code;
Job Corps Program
The committee believes the Job Corps program is in dire
need of reform. Created in 1965 to provide at-risk youth with
academic instruction toward the achievement of a high school
diploma or GED and career training, the program has failed to
help disadvantaged youth find employment while spending
billions in limited taxpayer dollars. Through a series of
investigations conducted over the last four years, the
Department of Labor's IG found the program's performance data
is often inflated and unreliable, accused Job Corps centers and
their operators of mismanaging federal funds and ignoring
unhealthy and unsafe living conditions for youth, and
discovered little federal funding was spent to support worker
training. In addition, the Department of Labor has recently
announced that the program incurred a $39 million budgetary
shortfall in program year 2011 and is facing a $60 million
shortfall in program year 2012. The Obama Administration agrees
Job Corps is in need of restructuring. The Department of
Labor's FY 2013 Budget Justification includes the following:
``The 2013 Budget launches a reform effort for Job
Corps to improve its outcomes and strengthen
accountability. Specifically, the Department will close
in Program Year 2013 a small number of chronically low-
performing Job Corps centers, selected using specific
criteria that will be shared with the public in
advance. While most centers meet program standards,
some centers are chronically low-performing based on
their educational and employment outcomes, and have
remained in the bottom cohort of center performance
rankings for many years. Given the resource
intensiveness of the Job Corps model, it is not cost-
effective to continue to invest in centers that have
historically not served students well.''
At a time when the youth unemployment rate continues to
rise, the committee supports efforts to revamp Job Corps to
ensure at-risk youth become more employable, responsible, and
productive citizens.
Over the last decade, Job Corps has undergone a number of
evaluations to measure its effectiveness. Many reports found
the program's benefits to society (e.g. reduced crime and drug
use and increased attainment of GEDs) outweigh its program
costs. However, these studies also showed program participation
did not substantially increase earnings, and was ineffective in
moving participants into full-time employment. H.R. 803
restructures the current program to ensure career and technical
education and training is geared toward in-demand occupations
and disadvantaged youth receive a regular secondary school
diploma and/or a recognized postsecondary credential that
prepares individuals for employment in the global economy.
According to the Department of Labor's 2011 Annual
Performance Report, only 66 percent of Job Corps participants
entered employment or enrolled in training or postsecondary
education in 2009. In fact, the program's placement rate, along
with actual student enrollment, has been on a steady decline
since 2004. A recent IG audit also found Job Corps lacked
reliable performance metrics. Among other things, the audit
found the program inaccurately reported 42.3 percent of its job
placements, claiming as a ``success'' those instances in which
students were enrolled in postsecondary education or training
rather than jobs, and in jobs that required little or no
previous work-related skills, such as fast food cooks and
dishwashers. H.R. 803 establishes a new performance
accountability and management system under which each center
must calculate and report on the number and percent of
enrollees who graduate (defined based on the program's new
goals) from the center; the percent and number of graduates who
enter unsubsidized employment related to the training the
participant received through the center; and the cost per
successful performance outcome. Similar to current law, the
bill requires the secretary to annually rank the performance of
each center and to develop and carry out an improvement plan
for low-performing centers.
As President Obama has stated, a number of Job Corps
centers have consistently ranked in the bottom tier of Job
Corps centers nationally. With the federal government running
trillion dollar deficits and the Job Corps program running a
$100 billion budget shortfall, the committee must ensure
limited taxpayer dollars are dedicated to programs that work.
H.R. 803 requires the secretary to evaluate the performance of
Job Corps centers and rank them annually. If a center has
consistently performed in the bottom 10 percent for four
consecutive years, then the secretary must close those centers.
Students in closed centers will have priority placement in a
neighboring center, and resources will be reinvested in the
program.
According to recent IG audits, there is widespread
mismanagement of federal funds and safety and health concerns
by Jobs Corps operators. H.R. 803 requires all current grantees
to re-compete for funding to operate Job Corps centers. The
bill creates a detailed application in which grantees must
describe their record of effectiveness in placing at-risk youth
into employment; describe the strong fiscal controls they have
in place; and give an assurance they are licensed to operate in
the state in which the center is located, among other
commonsense measures. The secretary is authorized to enter into
two-year agreements with operators and may extend the agreement
for three one-year terms if the grantees meet or exceed all of
their performance indicators. The secretary may not extend the
terms if a center's performance ranks it in the bottom quintile
of all centers unless the center has shown significant
improvement over the last program year. The bill prevents the
secretary from awarding grants to entities that have been found
to have a material failure that involves the misuse of federal
funds or a threat to the health, safety, or civil rights of
youth or staff. This process removes poor-performing grantees
and ensures high-quality grantees are adhering to new and
stronger performance requirements.
As a national program, Job Corps spends a significant
amount of taxpayer dollars on administration. The $1.5 billion
operations budget allocates more than 80 percent ($1.2 billion)
to center operations, leases, phone and data lines, and
information technology equipment; 7 percent ($107 million) to
student pay and home transportation; and only 3.6 percent ($57
million) to career services. H.R. 803 sets a 10 percent cap on
administrative costs for the program, ensuring a greater
portion of Job Corps funds go to youth employment services,
including career skills training for in-demand occupations.
According to the department's budget documents, Job Corps
cost $29,388 per participant in 2010. However, the IG, GAO, and
the Office of Management and Budget note this calculation does
not reflect job placement or training completion outcomes and
includes students who have dropped out of the program. Based on
these factors, the program actually costs $42,952 per
participant, one of the highest participant costs for federal
programs. H.R. 803 provides a competitive priority to Job Corps
center operators who demonstrate they can reduce program costs,
including during times of budgetary shortfalls, and requires
operators to detail in their applications how they will reduce
costs to save taxpayer dollars.
As a national program, the secretary and departmental
employees establish all policies and requirements for Job
Corps, resulting in a lack of coordination with state and local
workforce initiatives. H.R. 803 provides the governor of the
state in which a Job Corps center is located the authority to
appoint representatives to the Workforce Council, a two-thirds
majority of whom must be from the business community, and
requires education and training services to be linked to
employment opportunities in in-demand industries.
National activities
The committee believes state and local leaders--not
Washington bureaucrats--should be driving policies and programs
that best meet their region's needs. To this end, H.R. 803
dramatically reduces the role of the federal government in the
nation's workforce investment decisions. The bill eliminates
most national activities, choosing to send resources to state
and local workforce investment board leaders who know best how
to administer employment and training programs to unemployed
and underemployed workers. As stated earlier, during his 2012
State of the Union address, President Obama recognized the need
to consolidate job training programs and called on Congress to
``cut through the maze of confusing [job] training programs''
and create ``one program'' for workers to find the support they
need. H.R. 803 moves our country in that direction and helps
put Americans back to work. This bill will help ensure we spend
less money on red tape and more on training, while also making
the system more attuned to the needs of job seekers and
employers and heeding the president's call for consolidation.
H.R. 803 requires the Secretary of Labor to provide
technical assistance to states that fail to meet performance
measurements and establish a system through which states may
share information regarding best practices in the operation of
workforce investment activities. In addition, the secretary,
through grants, contracts, or cooperative agreements, is
required to conduct an independent evaluation of the programs
and activities under this Act at least once every five years.
The secretary must also conduct an impact analysis of the
formula grant program by no later than 2015, and then not less
than once every four years thereafter. All results of these
evaluations must be made public and posted to the department's
website.
Administration
Under current law, the secretary must investigate each
allegation of violations of the requirements of Title I of WIA.
This provision is amended to authorize, but not require
investigations of such allegations since it may not be
necessary or appropriate to conduct an investigation of each
one.
H.R. 803 prohibits funds from being used to pay the salary
and bonuses of an individual at a rate in excess of Level II of
the Federal Executive Pay Schedule. The bill includes general
authority establishing the Employment and Training
Administration (ETA) at the U.S. Department of Labor and
requires the assistant secretary to be an individual with
substantial experience in workforce development and workforce
development management. During markup, the committee adopted an
amendment offered by Rep. Martha Roby (R-AL) to prohibit the
use of workforce investment funds for lobbying and political
activities.
The legislation requires the secretary to submit states'
quarterly reports to the House Committee on Education and the
Workforce and the Senate Committee on Health, Education, Labor,
and Pensions to ensure the committees have sufficient
information to evaluate the program.
Current law prohibits use of WIA funds for employment
generating activities, economic development activities, and
similar activities that are not directly related to training
for eligible Title I participants. The bill clarifies this
restriction to encourage closer ties between workforce
development and economic development activities. The new
language will only prohibit such activities if they do not
relate to the entry in employment, retention of employment, or
increases in earnings.
H.R. 803 provides new waiver authority for the secretary.
The Department of Labor will establish an expedited process for
extending waivers approved for one state to additional states,
provided they meet other requirements. In administering the
waiver process it has been found that some waivers to address
particular issues appear to be appropriate for all states, but
under current authority each state must go through a detailed
application process to receive the waiver. This provision will
allow the secretary to expedite that process. In addition, the
secretary is explicitly prohibited from requiring or imposing
new or additional requirements in exchange for providing a
waiver to a state.
In addition, H.R. 803 prohibits using funds provided under
WIA to establish or operate stand-alone fee-for-service
enterprises that compete with private sector employment
agencies; this does not include One-Stop centers. Such efforts
are contrary to the intent of WIA.
H.R. 803 also includes a provision directing the Office of
Management and Budget to identify how many full-time equivalent
federal employees worked on or administered the eliminated
programs under this Act and, no later than one year after the
bill's enactment, to reduce the federal government's workforce
by that number.
State unified plan
WIA currently allows states to develop and submit to the
appropriate secretaries unified plans for two or more programs
that provide, in part, employment and training activities to
individuals. H.R. 803 maintains current law and goes a step
further in authorizing governors to consolidate those funds
into the Workforce Investment Fund for the express purpose of
providing greater administrative flexibility and reducing
overly burdensome paperwork requirements. The bill requires
states that wish to consolidate additional employment and
training programs into the Workforce Investment Fund to meet
the underlying purpose, intent, requirements, prohibitions, and
limitations of any such program. This important, but voluntary,
change further streamlines administrative costs at the state
level in those areas, subjecting all state workforce and
economic development programs to the same performance and
reporting requirements, while still requiring states to meet
the goals and requirements of the consolidated programs. During
markup, the committee adopted an amendment offered by Rep. Tim
Walberg (R-MI) that would allow states to submit unified plans
solely to the Secretary of Labor, instead of multiple
secretaries, placing the onus on the secretary to navigate the
federal bureaucracy.
Mr. Chris Hart, President and CEO of Workforce Florida
Inc., discussed the importance of state flexibility during the
February 26, 2013 subcommittee hearing entitled, ``Putting
America Back to Work: Reforming the Nation's Workforce
Investment System'':
``The SKILLS Act calls for unified planning and
common shared goals, it focuses on performance over
process and continuous evaluation of systems and
procedures in an effort to become more efficient and
effective with each passing year. Florida agrees.''
The committee believes states should have the ability to
consolidate additional programs not included under H.R. 803.
This flexibility ensures taxpayer dollars are not spent
maintaining an inefficient bureaucracy, but instead put toward
supporting employers and job seekers.
TITLE II--ADULT EDUCATION
The need for an educated populace is critical to success in
today's global economy. Individuals without a high school
diploma or its equivalent earn roughly half the salary of the
average worker. Employers searching for qualified employees
over the past decade have noticed an increasing trend in the
number of employees lacking the basic skills needed in the
workplace. In addition, the number of beginning college
students who are required to take basic skills courses in
reading and math before moving into the standard college
program continues to increase, jeopardizing their success in
postsecondary education.
In reauthorizing Title II, the Adult Education and Family
Literacy Education Act, of WIA, H.R. 803 places additional
emphasis on ensuring states and local providers offer basic
skills instruction in reading, writing, English language
acquisition, and math, and integrating those services with
occupational skills training. Making sure these skills are
solidly in place for all students is a priority, whether
English learners, high school dropouts who have not mastered
these vital skills, or high school graduates who have slipped
through the cracks in the education system and need additional
instruction in the basics.
Accountability
As discussed above, H.R. 803 requires all adult basic
education and literacy programs to meet the same set of core
performance measurements outlined for all employment and
training activities authorized under this Act. The committee
believes individuals receiving services aimed at improving
their language and numeracy skills should be able to use these
skills in obtaining a regular secondary school diploma or its
recognized equivalent, obtaining full time employment,
increasing their average earnings, earning industry-recognized
credentials, or enrolling in postsecondary education and
training programs.
The bill also provides funds for states to use in offering
eligible providers of adult education technical assistance and
professional development training on ways to develop,
implement, and report measurable progress in achieving the
objectives of this title. States are required to include in
their plans how they will evaluate and measure annually such
effectiveness on a grant-by-grant basis and how they will hold
eligible providers accountable for improving the academic
achievement of participants in adult education programs. The
committee believes cooperation and coordination between state
and local providers in offering research-based instruction in
reading, writing, English language acquisition, and math will
ensure participants reach their goals. States are authorized to
use technical assistance, sanctions, and rewards (including
allocation of grant funds based on performance and termination
of grant funds based on nonperformance) to hold local adult
education providers accountable.
Coordination and integration of services
The committee believes it is essential for adult educators
to work closely with state workforce investment boards; state
agencies of higher education; representatives of business and
industry; and immigrant assistance organizations, including
community-based and faith based organizations, in providing
appropriate skill development programs for eligible adults.
H.R. 803 encourages state and local leaders to provide adult
education and literacy activities contextually and concurrently
with workforce preparation activities and workforce training
for a specific occupation or occupational cluster. The
integration of literacy and occupational skills training are
essential in assisting adults with the transition into
postsecondary education and careers.
National leadership activities
The bill authorizes national activities to assist states
and local providers in developing valid, measurable, and
reliable performance data, and in using such performance
information for the improvement of adult education and family
literacy education programs. The committee supports the
development of model basic and workplace skills education
programs, and believes their effective integration with
employment services are important components of improving the
delivery of adult education programs. H.R. 803 also supports
the development of a more efficient delivery system of
technology-based, basic skills programs and materials for adult
reading, writing, English language acquisition, math, and
family literacy education.
The bill eliminates the National Institute of Literacy,
described earlier in this report, due to its lack of results,
duplication of services, and not receiving funding in the past
two fiscal years.
Authorization of appropriations
H.R. 803 authorizes appropriations for Title II at
$606,294,933 for fiscal year 2014 and each of the six
succeeding fiscal years. This amount is equal to the
appropriated amount for fiscal year 2012 for Title II of WIA.
TITLE III--AMENDMENTS TO THE WAGNER-PEYSER ACT
The Wagner-Peyser Act authorizes the current employment
services system and the employment statistics system. Because
employment services funding is being consolidated under the
Workforce Investment Fund and the employment services functions
are being integrated into the One-Stop delivery system, H.R.
803 repeals sections 1 through 14 of the Wagner-Peyser Act.
These sections authorize the stand-alone employment services
system and the separate Employment Services Statistical
Program.
H.R. 803 amends the current employment statistics system
authorized under the Wagner-Peyser Act and renames the system
the Workforce and Labor Market Information System. The
requirement for the secretary to prepare an annual plan for
management of the nationwide employment statistics system is
eliminated. This plan has not proven useful. In place of the
plan requirement is an authorization for the secretary to
assist in the development of national electronic tools that may
be used to facilitate the delivery of work ready services and
provide workforce information to individuals through the One-
Stop and other appropriate delivery systems.
The bill eliminates the requirement for the governor to
designate a state agency to oversee the labor market
information system and gives the governor flexibility to
operate the system as appropriate for the state's delivery
system. Our rapidly changing economy and labor markets require
a new, flexible, demand-driven workforce investment system that
is fully aligned with states' economic development strategies.
This system, in turn, requires a broader view of workforce,
labor market, and economic data and information than the
traditional labor market information system of the past.
Governors need the flexibility to determine how this function
is performed without being bound by outdated institutional
arrangements. Through this change, the committee recognizes
quality workforce information is more important than ever; it
should be utilized as a tool to drive system investments,
including types of training needed by individuals to compete in
local labor markets, the development of targeted high growth
strategies as part of economic development, and use by
businesses eager to grow and compete both locally and globally.
Provisions in current law relating to consultations between
the secretary and state employment statistics officials is
simplified to provide that the secretary, working through the
Bureau of Labor Statistics (BLS) and ETA, must regularly
consult with representatives from the designated state agencies
on strategies for improving the workforce and labor market
information system. At least twice each year, the secretary,
working through BLS, would conduct formal consultations on BLS
programs with representatives, elected by and from state
directors affiliated with state entities, from each of the ten
Department of Labor regions. This formal consultation and
election process is similar to current law.
H.R. 803 eliminates the Employment Service Statistical
Program, which reimburses states for providing data for
national statistical programs, as it is duplicative of
statewide activities currently funded under WIA. The bill also
eliminates the 21st Century Workforce Commission, which issued
its final report on the skills needed for the information
technology industry sector in the spring of 2000.
TITLE IV--REPEALS AND CONFORMING AMENDMENTS
H.R. 803 eliminates and streamlines 35 ineffective and
duplicative programs and creates a new Workforce Investment
Fund, a single workforce training program for unemployed and
underemployed workers. The reasons for consolidation are
outlined earlier in this report. The bill repeals the following
programs: WIA Adult Program; WIA Youth Activities; WIA
Dislocated Workers; Employment Services (ES)/Wagner-Peyser
Funded Activities; Community-Based Job Training Grants;
Veterans Workforce Investment Program; National Farmworker Jobs
Program--U.S. Department of Labor; Native American Employment
and Training; WIA National Emergency Grants; Reintegration of
Ex-Offenders; Grants to States for Training for Incarcerated
Individuals; YouthBuild; Conservation Activities by Youth
Service Organizations (Youth Conservation Corps); 21st Century
Workforce Commission; Senior Community Service Employment
Program (SCSEP); Women in Apprenticeship and Nontraditional
Occupations (WANTO); Projects with Industry; State-Supported
Employment Services Program; Migrant and Seasonal Farmworkers
Program--U.S. Department of Education; Disabled Veterans'
Outreach Program; Local Veterans Employment Representative
Program; WIA Pilot and Demonstration Projects; Workforce
Innovation Fund; ES Statistical Programs; Green Jobs Act;
National Institute for Literacy; Youth Opportunity Job Grants;
Recreational Programs; and In-Service Training of
Rehabilitation Personnel.
In addition to these programs, the bill amends the
Brownfields Job Training Cooperative Agreements (Environmental
Workforce Development and Job Training Program) to remove
references to training to prohibit the Environmental Protection
Agency (EPA) from distributing grants for workforce training
efforts that are duplicative of the workforce investment
system. H.R. 803 also amends the Supplemental Nutrition
Assistance Program's (SNAP) Employment and Training program,
the Second Chance Act Prisoner Reentry Initiative, and three
Refugee and Entrant Assistance programs to provide such
services through the statewide workforce development system
authorized under this Act. State and local boards are required
to detail in their plans how they will serve the employment and
training needs of SNAP recipients, refugees, and ex-offenders.
TITLE V--AMENDMENTS TO THE REHABILITATION ACT OF 1973
The Rehabilitation Act of 1973 is the nation's major
program providing comprehensive vocational rehabilitation (VR)
services to help persons with disabilities become employable
and achieve full integration into society. The primary program
within the Act is the state VR program under Title I, which
provides formula grant funds to states for VR services to
assist persons with significant disabilities to become employed
in integrated work settings.
VR Programs
H.R. 803 makes several significant and important changes to
the underlying law. In the committee's ongoing effort to
address the duplication of federal workforce training programs,
the bill eliminates five programs that are ineffective or
duplicative of the much larger state grant program, most of
which have been proposed for elimination by the Obama
Administration.
The In-Service Training of Rehabilitation Personnel program
supports state systems of professional development. The program
is duplicative of the existing--and larger--training program
authorized under Section 302 of the Act, and the requirement
that states provide comprehensive professional development as
part of their Title I state plans. The administration's fiscal
year 2013 budget eliminates funding for this small program. The
Department of Education's budget justifications advocated for
this elimination ``in order to reduce duplication of effort and
administrative costs, streamline program administration at the
federal and local level, and improve accountability.''
The Migrant and Seasonal Farmworkers program provides
funding to states to assist individuals with disabilities who
are migrant and seasonal farmworkers. The program is
duplicative of the main Title I state grant, which provides
similar services and serves the same target population. It also
contains numerous provisions to ensure that state agencies
reach and serve all individuals with disabilities in the state,
including minority, unserved, and underserved populations. The
administration's fiscal year 2013 budget eliminates funding for
this small program. As with the In-Service Training program,
the Department of Education is seeking this program's
elimination ``in order to reduce duplication of effort and
administrative costs, streamline program administration at the
federal and local level, and improve accountability.'' The
program is also producing poor results. During fiscal year
2009, the 13 states with projects served 189 individuals,
placing 126 in employment ($17,460 program cost/per placement).
In contrast, states that did not receive dedicated funding
served 1,835 migratory workers and placed 1,082 in employment.
In FY 2008, the 13 states with projects reported placing 55
percent of those served into employment while states without
projects reported placing 58 percent into employment.
The Recreation program provides individuals with
disabilities inclusive recreational activities and related
experiences. The program did not receive funding in fiscal year
2012 and gave out only 16 new grants in fiscal year 2011. As
the administration stated in its fiscal year 2012 budget
proposal to eliminate this program, its activities would be
more appropriately financed by state and local agencies and the
private sector.
The Projects with Industry (PWI) program creates and
expands job and career opportunities for individuals with
disabilities in the competitive labor market. The program did
not receive funding in fiscal year 2012. The committee
believes, however, that direct engagement with industry is
critical to improving employment opportunities for individuals
with disabilities. To that end, H.R. 803 requires states to set
aside at least one-half of 1 percent of their Title I state
grant funds to award grants to businesses and partnerships
between businesses and other entities to provide services
similar to those provided to grantees under the PWI program.
Integrating these efforts with the main state program will
strengthen partnerships between industry and the statewide VR
system.
The Supported Employment State Grant program provides
supplemental funding to state VR agencies for providing
supported employment services for individuals with the most
significant disabilities. The program duplicates the much
larger Title I state grant program by providing similar
services to the same target population. The administration's
fiscal year 2013 budget eliminates funding for this small
program. In 2012, the Department of Education stated in its
budget justifications, ``[B]ecause supported employment is now
an integral part of the VR State Grants program, the
Administration believes that there is no longer a need for a
separate funding stream to ensure the provision of such
services.'' State agencies are spending a growing portion of
their main VR program funds to provide supported employment
services, demonstrating that the Supported Employment State
Grant program has accomplished its goal.
Transition services
H.R. 803 makes significant changes to the underlying law to
address the need for improved transition services for youth
with disabilities. The Department of Labor's Office of
Disability Employment Policy reports that the labor force
participation rate for people with disabilities was only 21
percent in January 2013, more than three times lower than the
rate for people without disabilities. The committee recognizes
the significant need to improve the transition of youth with
disabilities from school to postsecondary education and
employment.
A 2003 GAO report found poor linkages between schools and
youth service providers and a lack of community work experience
impedes the successful transition of youth. Without the
involvement of agencies that support youth with disabilities,
the responsibility for transition is left to special education
teachers who may not have the capacity, training, or access to
necessary community resources. The involvement of the VR
program in transition provides students with disabilities and
special education teachers with assistance, training, and
access to community resources that can be critical to success.
However, many youth with disabilities who are eligible for VR
services while in high school do not access them because they
lack knowledge of the program or the program does not have the
capacity to serve all those who are eligible.
The committee recognizes state vocational rehabilitation
agencies currently have an affirmative obligation to provide
transition services to students with disabilities as they
prepare to leave secondary education. Despite this obligation,
the state vocational rehabilitation agencies have not
sufficiently addressed this important problem. In response to
the 2003 GAO report, the committee developed a bipartisan
proposal in the 109th and 110th Congresses to address the
transition of students receiving services under the Individuals
with Disabilities Education Act (IDEA) to postsecondary
education, employment, and independent living. H.R. 803
reflects this longstanding consensus.
To improve planning and coordination, the bill requires
states to address the needs of students with disabilities as a
part of the comprehensive statewide assessment of vocational
rehabilitation needs and to describe the methods used to expand
and improve services to students with disabilities, including
the coordination of services designed to facilitate the
transition of such students to postsecondary education or
employment. The bill also requires states to set aside at least
10 percent of their formula grants to expand transition
services. States will be required to use these targeted funds
to carry out programs or activities to improve and expand
services that facilitate student transition; improve the
achievement of post-school goals; support training and
technical assistance to personnel; support outreach activities;
and provide vocational guidance, career exploration services,
and job search skills to students with disabilities.
Administration
The bill seeks to better align the Department of
Education's services to individuals with disabilities by
eliminating bureaucratic hurdles to collaboration. The
committee believes improved coordination of services will
better address the challenges youth with disabilities face when
transitioning out of secondary education and lead to better
employment and postsecondary outcomes.
H.R. 803 changes the position that heads the Rehabilitation
Services Administration (RSA) within the Department of
Education from a commissioner appointed by the president and
approved by the Senate to a director appointed by the
secretary. The committee notes this is a simple and important
change to the department's administrative functioning that will
help make it operate more effectively and ensure a consistent
policy view exists across the department's programs that
address the needs of individuals with disabilities.
The Assistant Secretary of Special Education and
Rehabilitation Services oversees the Director of the Office of
Special Education Programs and the Director of the National
Institute on Disability and Rehabilitation Research. The bill
places the Rehabilitation Services Administration (RSA) on
equal footing with those two important offices, and reaffirms
the importance of coordinating federal policy across these
three vital offices through the Office of the Assistant
Secretary.
Administration after administration has struggled with
having two individuals appointed by the president and confirmed
by the Senate working within the same office. Providing this
clarity will establish a clear sense of purpose to these
offices, enabling the department to focus more on providing
high-quality services to individuals with disabilities.
In the 112th Congress, Senators Chuck Schumer (D-NY) and
Lamar Alexander (R-TN) introduced S. 679, the Presidential
Appointment Efficiency and Streamlining Act of 2011. The bill
eliminated the requirement of Senate approval of specified
presidentially appointed positions in federal agencies and
departments to reduce bureaucracy and improve efficiency. The
bill as voted out of committee removed the requirement for
Senate confirmation of the Commissioner of the RSA, reflecting
bipartisan support for this provision. Unfortunately, the
provision was removed from S. 679 prior to its approval by the
Senate as a result of pressure from interest groups. But
Democrats and Republicans agree that the removal of Senate
confirmation for the commissioner is a commonsense way to
provide better and more efficient services to individuals with
disabilities.
Coordination with the Assistive Technology Act
When the Assistive Technology Act of 1998 was last
reauthorized in 2004, Congress made a series of significant
changes to improve the structure and operation of the program.
H.R. 803 ensures state VR programs coordinate and cooperate
with the lead agency responsible for assistive technology to
guarantee individuals with disabilities have access to
assistive technology to improve their educational, employment,
or independent living opportunities. In addition, the bill
provides state VR programs the option to coordinate their
activities with programs authorized under the Assistive
Technology Act, including device loan, device demonstration,
device reutilization, and alternative financing programs.
Conclusion
The Supporting Knowledge and Investing in Lifelong Skills
(SKILLS) Act embodies bold reforms that will better serve
unemployed and underemployed workers struggling to succeed in
today's challenging economy. The bill eliminates and
streamlines 35 ineffective and duplicative workforce
development programs, and empowers state and local leaders to
assist workers and job seekers through a single, flexible
Workforce Investment Fund. The bill also provides governors the
opportunity to submit a responsible plan to consolidate
additional programs when such measures would better serve
workers by creating a more seamless, comprehensive job training
system.
Unlike the current system in which only a handful of
programs have been evaluated, H.R. 803 establishes common
performance measures that will make it easier for the public to
learn whether programs are helping workers find a job, and
ensures those programs that demonstrate a pattern of failure
lose funding. To ensure states and local areas are serving all
Americans, including special populations, the bill dedicates a
portion of funding to serve those most vulnerable, such as
disadvantaged youth and individuals with disabilities.
More money to pay for new workforce programs does not
constitute reform; it merely doubles down on the failed
policies of the past. H.R. 803 maintains our nation's current
fiscal commitment to employment and training assistance--
important services that will help close the skills gap--while
taking steps to ensure taxpayer dollars are spent more
efficiently and effectively, leading to more direct services
for workers.
The committee strongly endorses the Supporting Knowledge
and Investing in Lifelong Skills (SKILLS) Act, which
streamlines the confusing maze of job training programs--a step
the president has asked Congress to take; strengthens the role
of employers; expands state and local decision-making; ensures
additional resources are spent on training; and takes action to
help get more Americans back to work.
Section-by-Section Analysis
Section 1--Short title
States the short title as the Supporting Knowledge and
Investing in Lifelong Skills (SKILLS) Act.
Section 2--Table of contents
Lists the table of contents for the Act.
Section 3--References
References the Workforce Investment Act of 1998.
Section 4--Effective date
Specifies the effective dates of the amendment and programs
within the Act.
TITLE I
SUBTITLE A
Section 101--Definitions
Amends Section 101 (29 U.S.C. 2801) by modifying and adding
commonly used terms within the Act.
SUBTITLE B
Section 102--Purpose
Amends Section 106 (29 U.S.C. 2811) to reflect the purpose
of Title I, Subtitle B--Statewide and Local Workforce
Investment Systems.
Section 103--State workforce investment boards
Amends Section 111 (29 U.S.C. 2821) to specify the general
requirements for state board membership by removing the
mandatory partners and requiring a two-thirds business
majority.
Section 104--State plan
Amends Section 112 (29 U.S.C. 2822) to specify the general
requirements for plans submitted by state workforce investment
boards and amends the state planning cycle from a 5-year to 3-
year strategy.
Section 105--Local workforce investment areas
Amends Section 116 (29 U.S.C. 2831) to specify general
requirements for designating local workforce areas and removes
all grandfathering clauses that allowed areas in existence
prior to 1998 to remain.
Section 106--Local workforce investment boards
Amends Section 117 (29 U.S.C. 2832) to specify the general
requirements for local board membership by removing the
mandated partners and requiring a two-thirds business majority.
Section 107--Local plan
Amends Section 118 (29 U.S.C. 2833) to specify the general
requirements for plans submitted by local workforce investment
boards, requires local boards to allocate a percentage of funds
to be used on training activities, and amends the local
planning cycle from a 5-year to 3-year strategy.
Section 108--Establishment of One-Stop delivery system
Amends Section 121 (29 U.S.C. 2841) to add the Temporary
Assistance for Needy Families program as a mandatory partner
within the One-Stop delivery system. The section also adds
employment and training programs administered by the
Commissioner of the Social Security Administration, programs at
the Small Business Administration, and programs and literacy
services carried out by public libraries as new optional
partner programs within the One-Stop delivery system. Moves the
creation of the One-Stop delivery system from Section 134 to
Section 121, requires state boards to certify One-Stop centers
for the purposes of awarding infrastructure funds, and requires
One-Stop partners to contribute funds for infrastructure
grants.
Section 109--Identification of eligible providers of training services
Amends Section 122 (29 U.S.C. 2842) to allow governors to
identify eligible providers of training services and prioritize
those that are meeting and exceeding performance outcomes.
Section 110--General authorization
States the heading of Chapter 5 of Subtitle B of Title I as
``Employment and Training Activities.''
Section 111--State allotments
Amends Section 132 (29 U.S.C. 2862) to establish a
comprehensive program of employment and training activities for
all individuals ages 16 and older. The section amends the
Secretary of Labor's reservations of funds, changes the
allotment formula of funds to states, and amends the
reallotment provisions.
Section 112--Within state allocations
Amends Section 133 (29 U.S.C. 2863) to specify the amounts
reserved under the statewide reservations. The section changes
the allotment formula of funds to local areas, amends the
reallotment provisions for local areas, and specifies state and
local administrative cost limits.
Section 113--Use of funds for employment and training activities
Amends Section 134 (29 U.S.C. 2864) to specify the use of
funds for employment and training activities at the state and
local levels and removes the current sequencing of services
requirements. The section also adds the new statewide grants
for individuals with barriers to employment program
requirements and requires a priority for placement in private
sector jobs.
Section 114--Performance accountability system
Amends Section 136 (29 U.S.C. 2871) to establish a common
set of core indicators of performance that all employment and
training programs under this Act must adhere to and requires
the Secretary of Labor to reduce funds to states that do not
meet their performance targets for two consecutive years and
governors to reduce funds to local areas that do not meet their
performance targets for three consecutive years. The section
also allows states and local boards to implement pay-for-
performance strategies.
Section 115--Authorization of appropriations
Amends Section 137 (29 U.S.C. 2872) to authorize
appropriations for this Act.
SUBTITLE C
Section 116--Job Corps purposes
Amends Section 141 (29 U.S.C. 2881(1)) to reflect the
purpose of the Job Corps program.
Section 117--Job Corps definitions
Amends Section 142 (29 U.S.C. 2882) to modify and add
commonly used terms under this subtitle.
Section 118--Individuals eligible for the Job Corps
Amends Section 144 (20 U.S.C. 2884) to include youth up to
24 years of age.
Section 119--Recruitment, screening, selection, and assignment of
enrollees
Amends Section 145 (29 U.S.C. 2885) to specify general
requirements for selecting enrollees and placing them into
centers that offer the type of career and technical education
training selected by the individual.
Section 120--Job Corps centers
Amends Section 147 (29 U.S.C. 2887) to specify general
requirements to operate a Job Corps center and requires all
current grantees to undergo a recompetition.
Section 121--Program activities
Amends Section 148 (29 U.S.C. 2888) to specify general
requirements linking education and training to in-demand
industries in the state and the attainment of a regular high
school diploma.
Section 122--Counseling and job placement
Amends Section 149 (29 U.S.C. 2889) to remove the
requirement to provide counseling and job placement services to
former enrollees.
Section 123--Support
Amends Section 150 (29 U.S.C. 2890) to change the Secretary
of Labor's allowances to graduates to become incentive-based.
Section 124--Operations
Amends Section 151 (29 U.S.C. 2891) to change the heading
from ``Operating Plan'' to ``Operations'' and adds an
administrative cost limit on funds allotted to Job Corps
operators.
Section 125--Community participation
Amends Section 153 (29 U.S.C. 2893) to include local
workforce investment boards in planning purposes.
Section 126--Workforce councils
Amends Section 154 (29 U.S.C. 2894) to change the heading
from ``Industry Councils'' to ``Workforce Councils'' and to
specify general requirements on council members and require a
two-thirds business majority.
Section 127--Technical assistance
Amends Section 156 (29 U.S.C. 2896) by striking the section
and inserting requirements for the Secretary of Labor to
provide technical assistance and training for the Job Corps
program for the purposes of improving program quality.
Section 128--Special provisions
Amends Section 158 (29 U.S.C. 2898) by updating the
reference regarding transfers of federal property to chapter 5
of title 40 United States Code.
Section 129--Performance accountability and management
Amends Section 159 (29 U.S.C. 2899) to change the heading
from ``Management Information'' to ``Performance Accountability
and Management.'' The section adds new primary indicators of
performance and adds performance indicators for recruiters and
career transition service providers. The section also requires
new transparency and accountability provisions.
SUBTITLE D
Section 130--Technical assistance
Amends Section 170 (29 U.S.C. 2915) by striking the
dislocated worker technical assistance provision and specifying
requirements for the training of staff to provide rapid
response services. The section also establishes a system for
coordination of best practices among states.
Section 131--Evaluations
Amends Section 172 (29 U.S.C. 2917) to require the
Secretary of Labor to conduct evaluations of programs and
activities funded under this Act at least once every five
years.
SUBTITLE E
Section 132--Requirements and restrictions
Amends Section 181 (29 U.S.C. 2931) to specify the general
requirements on the limitation of funds in the Act.
Section 133--Prompt allocation of funds
Amends Section 182 (29 U.S.C. 2932) to strike the youth
provisions.
Section 134--Fiscal controls; sanctions
Amends Section 184(a)(2) (29 U.S.C. 2934(a)(2)) to strike
the references to the WIA adult and dislocated worker programs.
Section 135--Reports to Congress
Amends Section 185 (29 U.S.C. 2935) to specify requirements
on dissemination of the reports.
Section 136--Administrative provisions
Amends Section 189 (29 U.S.C. 2939) to specify requirements
for administrative provisions, changes the program year to
October 1, and prohibits the Secretary of Labor from requiring
or imposing new or additional requirements in exchange for
providing a waiver to a state.
Section 137--State legislative authority
Amends Section 191(a) (29 U.S.C. 2941(a)) to specify
requirements consistent with state law.
Section 138--General program requirements
Amends Section 195 (29 U.S.C. 2945) to specify requirements
that no funds under this Act shall be used to establish fee-
for-service agencies that compete with private sector
employment agencies.
Section 139--Federal agency staff
Amends Subtitle E of Title I (29 U.S.C. 2931 et seq.) to
add a new Section 196 to specify requirements for the Director
of the Office of Management and Budget to identify and reduce
the federal workforce by the number of full-time equivalent
employees identified as having worked on programs eliminated or
consolidated under this Act. The section also adds a new
Section 197 to restrict the use of grant funds under this Act
from being used for lobbying or political activities.
SUBTITLE F
Section 140--State unified plan
Amends Section 501 (20 U.S.C. 9271) to modify and add
programs to be included in the unified plan and authorizes the
governor to consolidate funds allotted to the identified
programs into the Workforce Investment Fund with the exception
of the Carl D. Perkins Career and Technical Education Act of
2006 and the Rehabilitation Act of 1973. The section also
specifies that states wishing to consolidate additional
employment and training programs into the Workforce Investment
Fund must meet the underlying purpose, intent, requirements,
prohibitions, and limitations of any such program.
TITLE II
Section 201--Amendment
Amends Title II (29 U.S.C. 2901 et seq.) by reducing the
Secretary of Education's set aside to carry out national
activities to 2 percent; requires programs and initiatives
funded this title to meet the core indicators of performance
outlined in Title I of the Workforce Investment Act; specifies
requirements for state agencies under state leadership
activities; encourages coordination and integration of
education and occupational skills training among programs and
agencies to avoid duplication; changes five year strategic
plans to three years; specifies requirements for state plans;
specifies requirements for local provisions, including
requiring measurable goals that demonstrate past effectiveness
of providers; repeals the National Institute for Literacy; and
specifies requirements for national leadership activities to
improve performance on core indicators.
TITLE III
Section 301--Amendments to the Wagner-Peyser Act
Amends the Wagner-Peyser Act (29 U.S.C. 49 et seq.) by
striking Sections 1 through 14. The section also amends Section
15 of the Act to require the Secretary of Labor to oversee a
nationwide workforce and labor market information system; sets
forth provisions with regard to system content, confidentiality
of information, system responsibilities, and immunity from
legal process; authorizes the Secretary of Labor to assist in
the development of national electronic tools to provide
services; and requires the Secretary of Labor to consult with
representatives of state agencies involved in carrying out
workforce information strategies.
TITLE IV
Section 401--Repeals
Repeals Chapter 4 of Subtitle B of Title I, Subtitle C of
Title III, and Sections 123, 155, 166, 167, 168, 169, 171, 173,
173A, 174, 192, 194, 502, 503, and 506 of the Workforce
Investment Act of 1998; Title V of the Older Americans Act of
1965; Sections 1 through 14 of the Wagner-Peyser Act of 1933;
Youth Conservation Corps Act of 1970 (16 U.S.C. 1701 et seq.);
Section 821 of the Higher Education Amendments of 1998 (20
U.S.C. 1151); the Women in Apprenticeship and Nontraditional
Occupations Act (29 U.S.C. 2501 et seq.); and Sections 4103A
and 4104 of title 38, United States Code.
Section 402--Amendment to the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980
Amends Section 104(k)(6) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9604) to strike the word ``training.''
Section 403--Amendments to the Food and Nutrition Act of 2008
Amends the Food and Nutrition Act of 2008 (7 U.S.C. 2012)
to specify requirements that employment and training services
authorized under Section 134 of the Workforce Investment Act
must be made available to eligible recipients of supplemental
nutrition assistance program benefits; employment and training
services shall be provided through the statewide workforce
development system; and the responsibility for monitoring both
administration and spending of employment and training services
shall be in conjunction with both the Secretary of Agriculture
and the Secretary of Labor.
Section 404--Amendments to Section 412 of the Immigration and
Nationality Act
Amends the Immigration and Nationality Act (8 U.S.C.
1522(a)) to require employment and training services for
refugee and new entrants be provided through the one-stop
delivery system under the Workforce Investment Act of 1998.
Section 405--Amendments relating to the Second Chance Act of 2007
Amends the Second Chance Act of 2007 (42 U.S.C.17541) to
coordinate and ensure prisoners reentering the workforce are
provided employment and training services through the one-stop
delivery system under the Workforce Investment Act of 1998.
Section 406--Amendments to the Omnibus Crime Control and Safe Streets
Act of 1968
Amends Section 2976 of the Omnibus Crime Control and Safe
Streets Act of 1968 (42 U.S.C. 3797w) to coordinate and ensure
offenders upon release from prison, jail, or a juvenile
facility are provided employment and training services through
the one-stop delivery system under the Workforce Investment Act
of 1998.
Section 407--Conforming amendments to the United States Code
Amends the United States Code with conforming and technical
changes.
Section 408--Conforming amendments to table of contents
Amends the table of contents in Section 1(b) with
conforming and technical changes.
TITLE V
Section 501--Findings
Amends Section 2(a) of the Rehabilitation Act of 1973 (29
U.S.C. 701(a)) to include a finding regarding the need to
improve services for students with disabilities under the Act.
Section 502--Rehabilitation services administration
Amends the Rehabilitation Act of 1973 (29 U.S.C. 701 et
seq.) to make the position of Commissioner of the
Rehabilitation Services Administration a director appointed by
the Secretary of Education and to remove the requirement that
the position be confirmed by the Senate; applies this change to
directors appointed after the date of enactment of the Act.
Section 503--Definitions
Amends Section 7 of the Rehabilitation Act of 1973 (29
U.S.C. 705) to add a new definition for ``student with a
disability.''
Section 504--State plan
Amends Section 101(a) of the Rehabilitation Act of 1973 (29
U.S.C. 721(a)) to make data reporting consistent with the
common performance measures required under Title I of the
Workforce Investment Act; to allow consultation and technical
assistance between the State Vocational Rehabilitation agency
and educational agencies to occur through alternative means of
meeting participation; to require coordination and
collaboration with the state agencies implementing the
Assistive Technology Act of 1998; to require the statewide
assessment of the rehabilitation needs of individuals with
disabilities to include students with disabilities and their
needs for transition services and to require a statewide
assessment of the transition services provided under the Act;
to require the development of strategies for improving and
expanding Vocational Rehabilitation services for students with
disabilities; and to require states to include in their state
plans how they will carry out the Collaboration with Industry
grant program and transition services for students with
disabilities.
Section 505--Scope of services
Amends Section 103 of the Rehabilitation Act of 1973 (29
U.S.C. 723) by specifying the types of transition services to
be provided to students with disabilities; to expand the types
of services Vocational Rehabilitation agencies may provide to
facilitate the transition of groups of students with
disabilities from secondary education to postsecondary
education or employment; and to allow state Vocational
Rehabilitation agencies to develop assistive technology
programs coordinated with services provided under the Assistive
Technology Act of 1998 for groups of individuals with
disabilities.
Section 506--Standards and indicators
Amends Section 106(a) of the Rehabilitation Act of 1973 (29
U.S.C. 726(a)) to require the standards and indicators for
Vocational Rehabilitation programs to be consistent with the
core indicators of performance under the Workforce Investment
Act; and allow the state to develop additional indicators for
Vocational Rehabilitation services; and require the director to
direct the state to revise its state plan if the state has not
met acceptable performance levels.
Section 507--Collaboration with industry
Amends the Rehabilitation Act of 1973 (29 U.S.C. 729) to
add a new Section 109A to require states to set aside one-half
of 1 percent of their state Vocational Rehabilitation
allotments to make grants to facilitate partnerships with
private industry to support job training and placement
programs.
Section 508--Reservation for expanded transition services
Amends the Rehabilitation Act of 1973 (29 U.S.C. 730) to
add a new Section 110A to require states to set aside at least
10 percent of their state Vocational Rehabilitation allotments
to provide transition services to students with disabilities.
Section 509--Client assistance program
Amends Section 112(e)(1) of the Rehabilitation Act of 1973
(29 U.S.C. 732(e)(1)) to require the Secretary of Education to
make client assistance program grants to the American Indian
Consortium consistent with the amounts provided to territories
under the program.
Section 510--Title III amendments
Amends Title III of the Rehabilitation Act of 1973 (U.S.C.
771 et seq.) by repealing In-Service Training of Rehabilitation
Personnel, Migrant and Seasonal Farmworkers, and Recreational
Programs; and amending the Parent Information and Training
Program to expand coordination requirements with entities
funded under the Individuals with Disabilities Education Act
and requiring a reservation of funds for coordination
activities.
Section 511--Repeal of title VI
Amends the Rehabilitation Act of 1973 (29 U.S.C. 701 et
seq.) by repealing the Projects with Industry and Supported
Employment Services for Individuals with the Most Significant
Disabilities programs.
Section 512--Chairperson
Amends Section 705(b)(5) of the Rehabilitation Act of 1973
(29 U.S.C. 796(b)(5)) to clarify that statewide independent
living councils are responsible for selecting the chairperson
of the council from among the council's voting membership.
Section 513--Authorization of appropriations
Amends the Rehabilitation Act of 1973 (29 U.S.C. 701) to
authorize appropriations for this Act.
Section 514--Conforming amendments
Amends Section 1(b) of the Rehabilitation Act of 1973 to
update the Act's table of contents.
Explanation of Amendments
The amendments, including the amendment in the nature of a
substitute, are explained in the body of this report.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch. H.R. 803 streamlines federal workforce development
programs, strengthens the employer-driven workforce development
system, expands decision-making at the local level, improves
accountability and transparency, simplifies reporting
requirements, encourages more training to meet in-demand job
opportunities, and improves adult education and vocational
rehabilitation.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement of
whether the provisions of the reported bill include unfunded
mandates. This issue is addressed in the CBO letter.
Earmark Statement
H.R. 803 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of House Rule XXI.
Roll Call Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include for
each record vote on a motion to report the measure or matter
and on any amendments offered to the measure or matter the
total number of votes for and against and the names of the
Members voting for and against.
Correspondence
Exchange of letters with the Committee on Agriculture, the
Committee on Energy and Commerce, the Committee on the
Judiciary, the Committee on Transportation and Infrastructure,
and the Committee on Veterans' Affairs.
Statement of General Performance Goals and Objectives
In accordance with clause (3)(c) of House Rule XIII, the
goal of H.R. 803 is to reform and improve the federal workforce
development systems. The Committee expects the Department of
Labor to comply with these provisions and implement the changes
to the law in accordance with these stated goals.
Duplication of Federal Programs
H.R. 803 streamlines and eliminates 35 duplicative
programs, including 26 identified in a 2011 report by the
Government Accountability Office.
Disclosure of Directed Rule Makings
The committee estimates that enacting H.R. 803 does not
specifically direct the completion of any specific rule makings
within the meaning of 5 U.S.C. 551.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the body of this report.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has received
the following estimate for H.R. 803 from the Director of the
Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, March 8, 2013.
Hon. John Kline,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 803, the
Supporting Knowledge and Investing in Lifelong Skills Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CB0 staff contacts are Christina
Hawley Anthony and David Rafferty.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 803--Supporting Knowledge and Investing in Lifelong Skills Act
Summary: H.R. 803 would consolidate job training programs
under the Workforce Investment Act of 1998 (WIA) into a single
funding stream. It also would amend the Wagner-Peyser Act,
reauthorize adult-education programs, and reauthorize programs
under the Rehabilitation Act of 1973 (RA). Those programs,
which received discretionary funding of $7 billion and
mandatory funding of $3 billion in 2013, provide job training,
adult education, and employment service assistance.
Enacting the bill would affect direct spending, but those
costs are already assumed to continue in CBO's baseline;
therefore, pay-as-you-go procedures do not apply. (Enacting the
bill would not affect revenues.)
Implementing the bill would affect discretionary spending.
Assuming appropriation of the authorized amounts, CBO estimates
that implementing H.R. 803 would cost $26 billion over the
2014-2018 period.
H.R. 803 would not impose intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act
(UMRA).
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 803 is shown in the following table.
The costs of this legislation fall within budget function 500
(education, employment, training, and social services).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2014 2015 2016 2017 2018 2014-2018
----------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDINGa
Estimated Budget Authority.............................. 0 0 0 0 0 0
Estimated Outlays....................................... 0 0 0 0 0 0
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Title I: Amendments to the Workforce Investment Act:
Authorization Level................................. 6,245 6,245 6,245 6,245 6,245 31,227
Estimated Outlays................................... 531 4,622 5,496 5,746 5,933 22,327
Title II: Adult Education and Family Literacy Education
Act:
Authorization Level................................. 606 606 606 606 606 3,030
Estimated Outlays................................... 18 455 576 606 606 2,260
Title III: Amendments to the Wagner-Peyser Act:
Authorization Level................................. 63 63 63 63 63 317
Estimated Outlays................................... 29 63 63 63 63 282
Title V: Amendments to the Rehabilitation Act:
Authorization Level................................. 328 328 328 328 328 1,640
Estimated Outlays................................... 71 260 320 328 328 1,307
Total Changes in Discretionary Spending:
Authorization Level............................. 7,243 7,243 7,243 7,243 7,243 36,214
Estimated Outlays............................... 649 5,400 6,455 6,743 6,931 26,177
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
aPursuant to the Balanced Budget and Emergency Deficit Control Act of 1985, the cost of extending the grants to
provide vocational rehabilitation services is assumed in CBO's current baseline projections and is therefore
not included in the costs attributable to the bill. CB0 estimates that the cost of extending the state grants
through 2022 would result in outlays of about $32 billion.
Basis of estimate: This estimate assumes that H.R. 803 will
be enacted near the start of fiscal year 2014, and that the
specified authorization amounts will be appropriated for fiscal
year 2014 and each subsequent fiscal year. The estimated
outlays reflect historical spending patterns for the affected
programs.
Direct spending
H.R. 803 would reauthorize mandatory grants to states to
provide vocational rehabilitation services. Those grants are
currently authorized through fiscal year 2013. H.R. 803 would
extend the authorization for the state grants through 2020,
which would subsequently be extended for one year each under
the RA and the General Education Provisions Act. Pursuant to
the Balanced Budget and Emergency Deficit Control Act of 1985,
the cost of extending the grants to provide vocational
rehabilitation services is assumed in CBO' s current baseline
projections and is therefore not included in the costs
attributable to the bill. CBO estimates that the cost of
extending the state grants through 2022 would result in outlays
of about $32 billion.
H.R. 803 would authorize the appropriation of $3.1 billion
per year for each of the next eight years, equal to the amount
the Congress appropriated in fiscal year 2012. However, funding
for the mandatory state grants is determined by a formula in
the RA. Funding each year is equal to the previous year's
funding level adjusted by the year-over-year change in the
consumer price index (CPI) as of October 15 of the second
preceding year. Because H.R. 803 would not affect that formula,
CBO estimates that the CPI formula would continue to determine
the funding level, rather than the stated authorization level.
In fiscal year 2014, CBO estimates that state grants under the
RA would be funded at $3.3 billion; by 2022, funding for state
grants would rise to an estimated $3.9 billion.
Spending subject to appropriation
H.R. 803 would reauthorize and amend the WIA, the Adult
Education and Family Literacy Act, provisions of the Wagner-
Peyser Act, and the RA. Most of the authorizations for those
programs have expired, but are extended through 2013 because
the Congress provided funds for those programs for 2013. Under
H.R. 803, the authorizations of appropriations for those
programs would total about $7.2 billion in 2014.
For ease of comparison to the proposed authorization
levels, CBO has shown the most recent level of funding provided
by the Congress for each title. Estimated funding for 2013 is
based on the amount the Congress provided in the most recent
continuing resolution, which expires on March 27, 2013, and is
extrapolated for the entire fiscal year. Those estimates do not
include any of the effects from the across-the-board cuts
mandated in the Budget Control Act of 2011 and specified in the
sequestration report issued March 1, 2013, by the Office of
Management and Budget.
Title I: Amendments to the Workforce Investment Act. Title
I would revise and reauthorize the WIA by consolidating
separate grants for adults, dislocated workers, veterans and
youth (including Job Corps grants) and some employment service
functions currently authorized under the Wagner-Peyser Act into
a single funding stream. Those programs, which received
approximately $6.3 billion in fiscal year 2013, would be
authorized for fiscal years 2014 through 2020. Assuming the
appropriation of the authorized amounts, CBO estimates that
implementing title I would cost about $22.3 billion over the
2014-2018 period.
Title II: Adult Education and Family Literacy Education
Act. Title II would revise and reauthorize the adult education
programs in title II of the Workforce Investment Act. The bill
would authorize the appropriation of about $600 million for
state grants and national activities for each of fiscal years
2014 through 2021, similar to the amount the Congress provided
in 2013. (The bill would repeal authorizing language for the
National Institute for Literacy, which has not received an
appropriation since fiscal year 2010.) CBO estimates that
implementing title II would cost about $2.3 billion over the
2014-2018 period, assuming appropriation of the authorized
amounts.
Title III: Amendments to the Wagner-Peyser Act. Title III
would reauthorize labor market information functions of the
Wagner-Peyser Act and would authorize appropriations for those
purposes at $63 million for each of fiscal years 2014 through
2020. (In 2013, an estimated $63 million was appropriated for
similar purposes.) CBO estimates that implementing title III
would cost $282 million over the 2014-2018 period, assuming
appropriation of the authorized amounts.
Title V: Amendments to the Rehabilitation Act. Title V
would revise and reauthorize existing discretionary grant
programs under the RA. The authorizations for those programs
have expired but are extended through 2013 because the Congress
appropriated funds for them for 2013. The bill would
reauthorize the programs through 2020.
Department of Education Programs. The Department of
Education runs a variety of categorical grant and demonstration
programs under the RA--primarily aimed at training, employment
support for the disabled, independent living, research, and
advocacy projects. The bill would authorize the appropriation
of $317 million for those programs for each of fiscal years
2014 through 2020, about $30 million less than provided for
those programs in fiscal year 2013. (The bill also would repeal
the underlying authority for state grants for supported
employment, and rehabilitation services for migrant and
seasonal farmworkers, for which the Congress provided a total
of $30 million in fiscal year 2013.) CBO estimates that
implementing those provisions would cost nearly $1.3 billion
over the 2014-2018 period, assuming appropriation of the
authorized amounts.
National Council on Disability. The Council is responsible
for reviewing federal laws and policies affecting individuals
with disabilities. The bill would authorize the appropriation
of $3 million for the Council for each of fiscal years 2014
through 2020, equal to the estimated amount appropriated for
fiscal year 2013. CBO estimates that implementing this
provision would cost $15 million over the 2014-2018 period.
Architectural and Transportation Barriers Compliance Board.
The Board develops guidelines to ensure access to buildings,
transportation vehicles, and telecommunications equipment for
individuals with disabilities. The bill would authorize the
appropriation of $7 million for the Board for each of fiscal
years 2014 through 2020, equal to the estimated amount
appropriated for fiscal year 2013. CBO estimates that
implementing this provision would cost $35 million over the
2014-2018 period.
Pay-As-You-Go Considerations. None.
Intergovernmental and private-sector impact. H.R. 803
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. By consolidating and repealing grant
programs, the bill would decrease the amount of assistance that
state, local, and tribal governments receive for employment
services, job training, and adult education and literacy
services. Such changes to grant programs are not mandates as
defined in UMRA.
Estimate prepared by: Federal costs: Workforce Investment
Act and Wagner-Peyser--Christina Hawley Anthony; Adult
Education and National Institute for Literacy--Justin Humphrey;
Rehabilitation Act--David Rafferty; Impact on State, Local, and
Tribal governments: Lisa Ramirez-Branum; Impact on the Private
Sector: Vi Nguyen.
Estimate approved by: Holly Harvey, Deputy Assistant
Director for Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 803. However,
clause 3(d)(2)(B) of that rule provides that this requirement
does not apply when the Committee has included in its report a
timely submitted cost estimate of the bill prepared by the
Director of the Congressional Budget Office under section 402
of the Congressional Budget Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
WORKFORCE INVESTMENT ACT OF 1998
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--The table of contents for this Act is
as follows:
[Sec. 1. Short title; table of contents.
[TITLE I--WORKFORCE INVESTMENT SYSTEMS
[Subtitle A--Workforce Investment Definitions
[Sec. 101. Definitions.
[Subtitle B--Statewide and Local Workforce Investment Systems
[Sec. 106. Purpose.
[Chapter 1--State Provisions
[Sec. 111. State workforce investment boards.
[Sec. 112. State plan.
[Chapter 2--Local Provisions
[Sec. 116. Local workforce investment areas.
[Sec. 117. Local workforce investment boards.
[Sec. 118. Local plan.
[Chapter 3--Workforce Investment Activities Providers
[Sec. 121. Establishment of one-stop delivery systems.
[Sec. 122. Identification of eligible providers of training services.
[Sec. 123. Identification of eligible providers of youth activities.
[Chapter 4--Youth Activities
[Sec. 126. General authorization.
[Sec. 127. State allotments.
[Sec. 128. Within State allocations.
[Sec. 129. Use of funds for youth activities.
[Chapter 5--Adult and Dislocated Worker Employment and Training
Activities
[Sec. 131. General authorization.
[Sec. 132. State allotments.
[Sec. 133. Within State allocations.
[Sec. 134. Use of funds for employment and training activities.
[Chapter 6--General Provisions
[Sec. 136. Performance accountability system.
[Sec. 137. Authorization of appropriations.
[Subtitle C--Job Corps
[Sec. 141. Purposes.
[Sec. 142. Definitions.
[Sec. 143. Establishment.
[Sec. 144. Individuals eligible for the Job Corps.
[Sec. 145. Recruitment, screening, selection, and assignment of
enrollees.
[Sec. 146. Enrollment.
[Sec. 147. Job Corps centers.
[Sec. 148. Program activities.
[Sec. 149. Counseling and job placement.
[Sec. 150. Support.
[Sec. 151. Operating plan.
[Sec. 152. Standards of conduct.
[Sec. 153. Community participation.
[Sec. 154. Industry councils.
[Sec. 155. Advisory committees.
[Sec. 156. Experimental, research, and demonstration projects.
[Sec. 157. Application of provisions of Federal law.
[Sec. 158. Special provisions.
[Sec. 159. Management information.
[Sec. 160. General provisions.
[Sec. 161. Authorization of appropriations.
[Subtitle D--National Programs
[Sec. 166. Native American programs.
[Sec. 167. Migrant and seasonal farmworker programs.
[Sec. 168. Veterans' workforce investment programs.
[Sec. 169. Youth opportunity grants.
[Sec. 170. Technical assistance.
[Sec. 171. Demonstration, pilot, multiservice, research, and multistate
projects.
[Sec. 172. Evaluations.
[Sec. 173. National emergency grants.
[Sec. 173A. YouthBuild program
[Sec. 174. Authorization of appropriations.
[Subtitle E--Administration
[Sec. 181. Requirements and restrictions.
[Sec. 182. Prompt allocation of funds.
[Sec. 183. Monitoring.
[Sec. 184. Fiscal controls; sanctions.
[Sec. 185. Reports; recordkeeping; investigations.
[Sec. 186. Administrative adjudication.
[Sec. 187. Judicial review.
[Sec. 188. Nondiscrimination.
[Sec. 189. Administrative provisions.
[Sec. 190. References.
[Sec. 191. State legislative authority.
[Sec. 192. Workforce flexibility plans.
[Sec. 193. Use of certain real property.
[Sec. 194. Continuation of State activities and policies.
[Sec. 195. General program requirements.
[Subtitle F--Repeals and Conforming Amendments
[Sec. 199. Repeals.
[Sec. 199A. Conforming amendments.
[TITLE II--ADULT EDUCATION AND LITERACY
[Sec. 201. Short title.
[Sec. 202. Purpose.
[Sec. 203. Definitions.
[Sec. 204. Home schools.
[Sec. 205. Authorization of appropriations.
[Subtitle A--Adult Education and Literacy Programs
[Chapter 1--Federal Provisions
[Sec. 211. Reservation; grants to eligible agencies; allotments.
[Sec. 212. Performance accountability system.
[Chapter 2--State Provisions
[Sec. 221. State administration.
[Sec. 222. State distribution of funds; matching requirement.
[Sec. 223. State leadership activities.
[Sec. 224. State plan.
[Sec. 225. Programs for corrections education and other
institutionalized individuals.
[Chapter 3--Local Provisions
[Sec. 231. Grants and contracts for eligible providers.
[Sec. 232. Local application.
[Sec. 233. Local administrative cost limits.
[Chapter 4--General Provisions
[Sec. 241. Administrative provisions.
[Sec. 242. National Institute for Literacy.
[Sec. 243. National leadership activities.
[Subtitle B--Repeals
[Sec. 251. Repeals.
[TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
[Subtitle A--Wagner-Peyser Act
[Sec. 301. Definitions.
[Sec. 302. Functions.
[Sec. 303. Designation of State agencies.
[Sec. 304. Appropriations.
[Sec. 305. Disposition of allotted funds.
[Sec. 306. State plans.
[Sec. 307. Repeal of Federal advisory council.
[Sec. 308. Regulations.
[Sec. 309. Employment statistics.
[Sec. 310. Technical amendments.
[Sec. 311. Effective date.
[Subtitle B--Linkages With Other Programs
[Sec. 321. Trade Act of 1974.
[Sec. 322. Veterans' employment programs.
[Sec. 323. Older Americans Act of 1965.
[Subtitle C--Twenty-First Century Workforce Commission
[Sec. 331. Short title.
[Sec. 332. Findings.
[Sec. 333. Definitions.
[Sec. 334. Establishment of Twenty-First Century Workforce Commission.
[Sec. 335. Duties of the Commission.
[Sec. 336. Powers of the Commission.
[Sec. 337. Commission personnel matters.
[Sec. 338. Termination of the Commission.
[Sec. 339. Authorization of appropriations.
[Subtitle D--Application of Civil Rights and Labor-Management Laws to
the Smithsonian Institution
[Sec. 341. Application of civil rights and labor-management laws to the
Smithsonian Institution.
[TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998
[Sec. 401. Short title.
[Sec. 402. Title.
[Sec. 403. General provisions.
[Sec. 404. Vocational rehabilitation services.
[Sec. 405. Research and training.
[Sec. 406. Professional development and special projects and
demonstrations.
[Sec. 407. National Council on Disability.
[Sec. 408. Rights and advocacy.
[Sec. 409. Employment opportunities for individuals with disabilities.
[Sec. 410. Independent living services and centers for independent
living.
[Sec. 411. Repeal.
[Sec. 412. Helen Keller National Center Act.
[Sec. 413. President's Committee on Employment of People With
Disabilities.
[Sec. 414. Conforming amendments.
[TITLE V--GENERAL PROVISIONS
[Sec. 501. State unified plan.
[Sec. 502. Definitions for indicators of performance.
[Sec. 503. Incentive grants.
[Sec. 504. Privacy.
[Sec. 505. Buy-American requirements.
[Sec. 506. Transition provisions.
[Sec. 507. Effective date.]
Sec. 1. Short title; table of contents.
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
Sec. 101. Definitions.
Subtitle B--Statewide and Local Workforce Investment Systems
Sec. 106. Purpose.
Chapter 1--State Provisions
Sec. 111. State workforce investment boards.
Sec. 112. State plan.
Chapter 2--Local Provisions
Sec. 116. Local workforce investment areas.
Sec. 117. Local workforce investment boards.
Sec. 118. Local plan.
Chapter 3--Workforce Investment Activities Providers
Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
Sec. 123. [Repealed].
Chapter 4--[Repealed]
Chapter 5--Employment and Training Activities
Sec. 131. General authorization.
Sec. 132. State allotments.
Sec. 133. Within State allocations.
Sec. 134. Use of funds for employment and training activities.
Chapter 6--General Provisions
Sec. 136. Performance accountability system.
Sec. 137. Authorization of appropriations.
Subtitle C--Job Corps
Sec. 141. Purposes.
Sec. 142. Definitions.
Sec. 143. Establishment.
Sec. 144. Individuals eligible for the Job Corps.
Sec. 145. Recruitment, screening, selection, and assignment of
enrollees.
Sec. 146. Enrollment.
Sec. 147. Job Corps centers.
Sec. 148. Program activities.
Sec. 149. Counseling and job placement.
Sec. 150. Support.
Sec. 151. Operations.
Sec. 152. Standards of conduct.
Sec. 153. Community participation.
Sec. 154. Workforce councils.
Sec. 155. [Repealed].
Sec. 156. Technical assistance to centers.
Sec. 157. Application of provisions of Federal law.
Sec. 158. Special provisions.
Sec. 159. Performance accountability and management.
Sec. 160. General provisions.
Sec. 161. Authorization of appropriations.
Subtitle D--National Programs
Sec. 166. [Repealed].
Sec. 167. [Repealed].
Sec. 168. [Repealed].
Sec. 169. [Repealed].
Sec. 170. Technical assistance.
Sec. 171. [Repealed].
Sec. 172. Evaluations.
Sec. 173. [Repealed].
Sec. 173A. [Repealed].
Sec. 174. [Repealed].
Subtitle E--Administration
Sec. 181. Requirements and restrictions.
Sec. 182. Prompt allocation of funds.
Sec. 183. Monitoring.
Sec. 184. Fiscal controls; sanctions.
Sec. 185. Reports; recordkeeping; investigations.
Sec. 186. Administrative adjudication.
Sec. 187. Judicial review.
Sec. 188. Nondiscrimination.
Sec. 189. Administrative provisions.
Sec. 190. References.
Sec. 191. State legislative authority.
Sec. 192. [Repealed].
Sec. 193. Transfer of Federal equity in State employment security real
property to the States.
Sec. 194. [Repealed].
Sec. 195. General program requirements.
Sec. 196. Federal agency staff.
Subtitle F--Repeals and Conforming Amendments
Sec. 199. Repeals.
Sec. 199A. Conforming amendments.
TITLE II--ADULT EDUCATION AND FAMILY LITERACY EDUCATION
Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Sec. 204. Home schools.
Sec. 205. Authorization of appropriations.
Subtitle A--Federal Provisions
Sec. 211. Reservation of funds; grants to eligible agencies; allotments.
Sec. 212. Performance accountability system.
Subtitle B--State Provisions
Sec. 221. State administration.
Sec. 222. State distribution of funds; matching requirement.
Sec. 223. State leadership activities.
Sec. 224. State plan.
Sec. 225. Programs for corrections education and other institutionalized
individuals.
Subtitle C--Local Provisions
Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.
Subtitle D--General Provisions
Sec. 241. Administrative provisions.
Sec. 242. National activities.
TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
Subtitle A--Wagner-Peyser Act
Sec. 301. Definitions.
Sec. 302. Functions.
Sec. 303. Designation of State agencies.
Sec. 304. Appropriations.
Sec. 305. Disposition of allotted funds.
Sec. 306. State plans.
Sec. 307. Repeal of Federal advisory council.
Sec. 308. Regulations.
Sec. 309. Employment statistics.
Sec. 310. Technical amendments.
Sec. 311. Effective date.
Subtitle B--Linkages With Other Programs
Sec. 321. Trade Act of 1974.
Sec. 322. Veterans' employment programs.
Sec. 323. Older Americans Act of 1965.
Subtitle C--[Repealed]
Subtitle D--Application of Civil Rights and Labor-Management Laws to the
Smithsonian Institution
Sec. 341. Application of civil rights and labor-management laws to the
Smithsonian Institution.
TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998
Sec. 401. Short title.
Sec. 402. Title.
Sec. 403. General provisions.
Sec. 404. Vocational rehabilitation services.
Sec. 405. Research and training.
Sec. 406. Professional development and special projects and
demonstrations.
Sec. 407. National Council on Disability.
Sec. 408. Rights and advocacy.
Sec. 409. Employment opportunities for individuals with disabilities.
Sec. 410. Independent living services and centers for independent
living.
Sec. 411. [Repeal].
Sec. 412. Helen Keller National Center Act.
Sec. 413. President's Committee on Employment of People With
Disabilities.
Sec. 414. Conforming amendments.
TITLE V--GENERAL PROVISIONS
Sec. 501. State unified plan.
Sec. 502. [Repealed].
Sec. 503. [Repealed].
Sec. 504. Privacy.
Sec. 505. Buy-American requirements.
Sec. 506. [Repealed].
Sec. 507. Effective date.
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
SEC. 101. DEFINITIONS.
In this title:
(1) Accrued expenditures.--The term ``accrued
expenditures'' means charges incurred by recipients of
funds under this title for a given period requiring the
provision of funds for goods or other tangible property
received; services performed by employees, contractors,
subgrantees, subcontractors, and other payees; and
other amounts becoming owed under programs assisted
under this title for which no current services or
performance is required, such as annuities, insurance
claims, and other benefit payments.
(2) Administrative costs.--The term ``administrative
costs'' means expenditures incurred by State and local
workforce investment boards, direct recipients
(including State grant recipients under subtitle B and
recipients of awards under subtitles C and D), local
grant recipients, local fiscal agents or local grant
subrecipients, and one-stop operators in the
performance of administrative functions and in carrying
out activities under this title which are not related
to the direct provision of workforce investment
services (including services to participants and
employers). Such costs include both personnel and non-
personnel and both direct and indirect.
[(1)] (3) Adult.--[Except in sections 127 and 132,
the] The term ``adult'' means an individual who is age
18 or older.
[(2)] (4) Adult education; adult education and
literacy activities.--The terms ``adult education'' and
``adult education and literacy activities'' have the
meanings given the terms in section 203.
* * * * * * *
[(3) Area vocational education school.--The term
``area vocational education school'' has the meaning
given the term ``area career and technical education
school'' in section 3 of the Carl D. Perkins Career and
Technical Education Act of 2006.]
(5) Area career and technical education school.--The
term ``area career and technical education school'' has
the meaning given the term in section 3(3) of the Carl
D. Perkins Career and Technical Education Act of 2006
(20 U.S.C. 2302(3)).
[(4)] (6) Basic skills deficient.--The term ``basic
skills deficient'' means, with respect to an
individual, that the individual has English reading,
writing, or computing skills at or below the 8th grade
level (or such other level as the Governor may
establish) on a generally accepted standardized test or
a comparable score on a criterion-referenced test.
[(5)] (7) Case management.--The term ``case
management'' means the provision of a client-centered
approach in the
delivery of services, designed--
(A) * * *
* * * * * * *
[(6)] (8) Chief elected official.--The term ``chief
elected official'' means--
(A) * * *
* * * * * * *
[(7)] (9) Community-based organization.--The term
``community-based organization'' means a private
nonprofit organization that is representative of a
community or a significant segment of a community and
that has demonstrated expertise and effectiveness in
the field of workforce investment.
[(8)] (10) Customized training.--The term
``customized
training'' means training--
(A) * * *
* * * * * * *
(C) for which the employer pays for [not less
than 50 percent of the cost of the training] a
significant portion of the cost of training, as
determined by the local board (or, in the case
of an employer in multiple local areas in the
State, as determined by the Governor), taking
into account the size of the employer and such
other factors as the local board determines to
be appropriate.
[(9)] (11) Dislocated worker.--The term ``dislocated
worker'' means an individual who--
(A)(i) * * *
(ii)(I) * * *
(II) has been employed for a duration
sufficient to demonstrate, to the appropriate
entity at a one-stop center referred to in
[section 134(c)] section 121(e), attachment to
the workforce, but is not eligible for
unemployment compensation due to insufficient
earnings or having performed services for an
employer that were not covered under a State
unemployment compensation law; and
* * * * * * *
(B)(i) * * *
* * * * * * *
(iii) for purposes of eligibility to receive
services other than training services described
in section [134(d)(4)] 134(c)(4), [intensive
services described in section 134(d)(3)] work
ready services described in section
117(d)(5)(C), or supportive services, is
employed at a facility at which the employer
has made a general announcement that such
facility will close;
(C) was self-employed (including employment
as a farmer, a rancher, or a fisherman) but is
unemployed as a result of general economic
conditions in the community in which the
individual resides or because of natural
disasters; [or]
(D) is a displaced homemaker[.]; or
(E)(i) is the spouse of a member of the Armed
Forces on active duty for a period of more than
30 days (as defined in section 101(d)(2) of
title 10, United States Code) who has
experienced a loss of employment as a direct
result of relocation to accommodate a permanent
change in duty station of such member; or
(ii) is the spouse of a member of the Armed
Forces on active duty who meets the criteria
described in paragraph (12)(B).
[(10)] (12) Displaced homemaker.--The term
``displaced homemaker'' means an individual who has
been providing unpaid services to family members in the
home and who--
(A)(i) has been dependent on the income of
another family member but is no longer
supported by that income; [and] or
(ii) is the spouse of a member of the Armed
Forces on active duty for a period of more than
30 days (as defined in section 101(d)(2) of
title 10, United States Code) whose family
income is significantly reduced because of a
deployment (as defined in section 991(b) of
title 10, United States Code, or pursuant to
paragraph (4) of such section), a call or order
to active duty pursuant to a provision of law
referred to in section 101(a)(13)(B) of title
10, United States Code, a permanent change of
station, or the service-connected (as defined
in section 101(16) of title 38, United States
Code) death or disability of the member; and
* * * * * * *
[(11)] (13) Economic development agencies.--The term
``economic development agencies'' includes local or
regional planning and zoning commissions or boards,
community development agencies, and other local or
regional agencies and institutions responsible for
regulating, promoting, or assisting in local or
regional economic development.
* * * * * * *
[(12)] (14) Eligible provider.--The term ``eligible
provider'', used with respect to--
(A) training services, means a provider who
is identified in accordance with [section
122(e)(3)] section 122;
[(B) intensive services, means a provider who
is identified or awarded a contract as
described in section 134(d)(3)(B);]
(B) work ready services, means a provider who
is identified or awarded a contract as
described in section 117(d)(5)(C); or
[(C) youth activities, means a provider who
is awarded a grant or contract in accordance
with section 123; or]
[(D)] (C) other workforce investment
activities, means a public or private entity
selected to be responsible for such activities,
such as a one-stop operator designated or
certified under section 121(d).
[(13) Eligible youth.--Except as provided in
subtitles C and D, the term ``eligible youth'' means an
individual who--
[(A) is not less than age 14 and not more
than
age 21;
[(B) is a low-income individual; and
[(C) is an individual who is one or more of
the following:
[(i) Deficient in basic literacy
skills.
[(ii) A school dropout.
[(iii) Homeless, a runaway, or a
foster child.
[(iv) Pregnant or a parent.
[(v) An offender.
[(vi) An individual who requires
additional assistance to complete an
educational program, or to secure and
hold employment.]
[(14)] (15) Employment and training activity.--The
term ``employment and training activity'' means an
activity described in section 134 that is carried out
for an [adult or dislocated worker] individual.
[(15)] (16) 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) * * *
* * * * * * *
[(16)] (17) Governor.--The term ``Governor'' means
the chief executive of a State.
[(17)] (18) Individual with a disability.--
(A) * * *
* * * * * * *
[(18)] (19) Labor market area.--The term ``labor
market area'' means an economically integrated
geographic area within which individuals can reside and
find employment within a reasonable distance or can
readily change employment without changing their place
of residence. Such an area shall be identified in
accordance with criteria used by the Bureau of Labor
Statistics of the Department of Labor in defining such
areas or similar criteria established by a Governor.
[(19)] (20) Literacy.--The term ``literacy'' has the
meaning given the term in section 203.
[(20)] (21) Local area.--The term ``local area''
means a local workforce investment area designated
under section 116.
[(21)] (22) Local board.--The term ``local board''
means a local workforce investment board established
under section 117.
[(22)] (23) Local performance measure.--The term
``local performance measure'' means a performance
measure established under section 136(c).
[(23)] (24) Local educational agency.--The term
``local educational agency'' has the meaning given the
term in section 9101 of the Elementary and Secondary
Education Act of 1965.
[(24) Lower living standard income level.--The term
``lower living standard income level'' means that
income level (adjusted for regional, metropolitan,
urban, and rural differences and family size)
determined annually by the Secretary based on the most
recent lower living family budget issued by the
Secretary.]
(25) Low-income individual.--The term ``low-income
individual'' means an individual who--
(A) * * *
(B) received an income, or is a member of a
family that received a total family income, for
the 6-month period prior to application for the
program involved (exclusive of unemployment
compensation, child support payments, payments
described in subparagraph (A), and old-age and
survivors insurance benefits received under
section 202 of the Social Security Act (42
U.S.C. 402)) that, in relation to family size,
does not exceed the [higher of--
[(i) the poverty line, for an
equivalent period; or
[(ii) 70 percent of the lower living
standard income level, for an
equivalent period;] poverty line for an
equivalent period;
* * * * * * *
(D) receives or is eligible to receive free
or reduced price lunch under the Richard B.
Russell National School Lunch Act (42 U.S.C.
1751 et seq.);
[(D)] (E) qualifies as a homeless individual,
as defined in subsections (a) and (c) of
section 103 of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11302);
[(E)] (F) is a foster child on behalf of whom
State or local government payments are made; or
[(F)] (G) in cases permitted by regulations
promulgated by the Secretary of Labor, is an
individual with a disability whose own income
meets the requirements of a program described
in subparagraph (A) or of subparagraph (B), but
who is a member of a family whose income does
not meet such requirements.
* * * * * * *
(32) Outlying area.--The term ``outlying area'' means
the United States Virgin Islands, Guam, American Samoa,
the Commonwealth of the Northern Mariana Islands, [the
Republic of the Marshall Islands, the Federated States
of Micronesia,] and the Republic of Palau.
[(33) Out-of-school youth.--The term ``out-of-school
youth'' means--
[(A) an eligible youth who is a school
dropout; or
[(B) an eligible youth who has received a
secondary school diploma or its equivalent but
is basic skills deficient, unemployed, or
underemployed.]
(33) Out-of-school youth.--The term ``out-of-school
youth'' means--
(A) an at-risk youth who is a school dropout;
or
(B) an at-risk youth who has received a
secondary school diploma or its recognized
equivalent but is basic skills deficient,
unemployed, or underemployed.
* * * * * * *
(38) Rapid response activity.--The term ``rapid
response activity'' means an activity provided by a
State, or by an entity designated by a State, with
funds provided by the State under section
[134(a)(1)(A)] 134(a)(1)(B), in the case of a permanent
closure or mass layoff at a plant, facility, or
enterprise, or a natural or other disaster, that
results in mass job dislocation, in order to assist
dislocated workers in obtaining reemployment as soon as
possible, with services including--
(A) * * *
* * * * * * *
[(49) Veteran; related definition.--
[(A) Veteran.--The term ``veteran'' means an
individual who served in the active military,
naval, or air service, and who was discharged
or released from such service under conditions
other than dishonorable.
[(B) Recently separated veteran.--The term
``recently separated veteran'' means any
veteran who applies for participation under
this title within 48 months after the discharge
or release from active military, naval, or air
service.
[(50) Vocational education.--The term ``vocational
education'' has the meaning given the term ``career and
technical education'' in section 3 of the Carl D.
Perkins Career and Technical Education Act of 2006.]
(49) Veteran.--The term ``veteran'' has the same
meaning given the term in section 2108(1) of title 5,
United States Code.
(50) Career and technical education.--The term
``career and technical education'' has the meaning
given the term in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20 U.S.C.
2302).
(51) Workforce investment activity.--The term
``workforce investment activity'' means an employment
and training activity[, and a youth activity].
[(52) Youth activity.--The term ``youth activity''
means an activity described in section 129 that is
carried out for eligible youth (or as described in
section 129(c)(5)).
[(53) Youth council.--The term ``youth council''
means a council established under section 117(h).]
(52) At-risk youth.--Except as provided in subtitle
C, the term ``at-risk youth'' means an individual who--
(A) is not less than age 16 and not more than
age 24;
(B) is a low-income individual; and
(C) is an individual who is one or more of
the following:
(i) a secondary school dropout;
(ii) a youth in foster care
(including youth aging out of foster
care);
(iii) a youth offender;
(iv) a youth who is an individual
with a disability; or
(v) a migrant youth.
(53) Industry or sector partnership.--The term
``industry or sector partnership'' means a partnership
of a State or local board and one or more industries
and other entities that have the capability to help the
State or local board determine the immediate and long
term skilled workforce needs of in-demand industries
and other occupations important to the State or local
economy, respectively.
(54) Industry-recognized credential.--The term
``industry-recognized credential'' means a credential
that is sought or accepted by companies within the
industry sector involved, across multiple States, as
recognized, preferred, or required for recruitment,
screening, or hiring.
(55) Recognized postsecondary credential.--The term
``recognized postsecondary credential'' means a
credential awarded by a training provider or
postsecondary educational institution based on
completion of all requirements for a program of study,
including coursework or tests or other performance
evaluations. The term includes an industry-recognized
credential, a certificate of completion of an
apprenticeship, or an associate or baccalaureate
degree.
(56) Pay-for-performance contract strategy.--The term
``pay-for-performance contract strategy'' means a
strategy in which a contract to provide a program of
employment and training activities incorporates--
(A) the performance outcome described in
subclauses (I) through (IV) of section
136(b)(2)(A)(i);
(B) a fixed amount that will be paid to a
provider of such employment and training
activities for each program participant who
achieves the agreed to levels of performance
based upon the outcome measures described in
subparagraph (A), within a defined timetable,
and may include a bonus payment to such
provider which may be used to expand the
capacity of such provider;
(C) the ability for a provider to recoup the
costs of training a participant who has not met
such outcome measures, but for whom the
provider is able to demonstrate that such
participant gained specific competencies
required for education and career advancement
that are, where feasible, tied to industry-
recognized credentials and related standards,
or State licensing requirements; and
(D) the ability for a provider that does not
meet the requirements under section 122(a)(2)
to participate in such pay-for-performance
contract and to not be required to report on
the performance and cost information required
under section 122(d).
* * * * * * *
Subtitle B--Statewide and Local Workforce Investment Systems
SEC. 106. PURPOSE.
The purpose of this subtitle is to provide workforce
investment activities, through statewide and local workforce
investment systems, that increase the employment, retention,
and earnings of participants, and increase occupational skill
attainment by participants, and, as a result, improve the
quality of the workforce, reduce welfare dependency, and
enhance the productivity and competitiveness of the Nation. It
is also the purpose of this subtitle to provide workforce
investment activities in a manner that enhances employer
engagement, promotes customer choices in the selection of
training services, and ensures accountability in the use of the
taxpayer funds.
CHAPTER 1--STATE PROVISIONS
SEC. 111. STATE WORKFORCE INVESTMENT BOARDS.
(a) * * *
(b) Membership.--
(1) In general.--The State Board shall include--
(A) * * *
[(B) 2 members of each chamber of the State
legislature, appointed by the appropriate
presiding officers of each such chamber; and]
[(C)] (B) representatives appointed by the
Governor, who are--
(i) representatives of business in
the State, who--
(I) are owners of businesses,
chief executives or operating
officers of businesses, and
other business executives or
employers with optimum
policymaking or hiring
authority, including members of
local boards described in
[section 117(b)(2)(A)(i)]
section 117(b)(2)(A);
[(II) represent businesses
with employment opportunities
that reflect the employment
opportunities of the State;
and]
(II) represent businesses,
including large and small
businesses, with immediate and
long-term employment
opportunities in in-demand
industries and other
occupations important to the
State economy; and
* * * * * * *
[(iii) representatives of labor
organizations, who have been nominated
by State labor federations;
[(iv) representatives of individuals
and organizations that have experience
with respect to youth activities;
[(v) representatives of individuals
and organizations that have experience
and expertise in the delivery of
workforce investment activities,
including chief executive officers of
community colleges and community-based
organizations within the State;
[(vi)(I) the lead State agency
officials with responsibility for the
programs and activities that are
described in section 121(b) and carried
out by one-stop partners; and
[(II) in any case in which no lead
State agency official has
responsibility for such a program,
service, or activity, a representative
in the State with expertise relating to
such program, service, or activity; and
[(vii) such other representatives and
State agency officials as the Governor
may designate, such as the State agency
officials responsible for economic
development and juvenile justice
programs in the State.]
(iii) a State agency official
responsible for economic development;
and
(iv) such other representatives and
State agency officials as the Governor
may designate, including--
(I) members of the State
legislature;
(II) representatives of
individuals and organizations
that have experience with
respect to youth activities;
(III) representatives of
individuals and organizations
that have experience and
expertise in the delivery of
workforce investment
activities, including chief
executive officers of community
colleges and community-based
organizations within the State;
(IV) representatives of the
lead State agency officials
with responsibility for the
programs and activities that
are described in section 121(b)
and carried out by one-stop
partners; or
(V) representatives of
veterans service organizations.
* * * * * * *
[(3) Majority.--A majority of the members of the
State Board shall be representatives described in
paragraph (1)(C)(i).]
(3) Majority.--A \2/3\ majority of the members of the
board shall be representatives described in paragraph
(1)(B)(i).
(c) Chairperson.--The Governor shall select a chairperson for
the State Board from among the representatives described in
subsection [(b)(1)(C)(i)] (b)(1)(B)(i).
[(d) Functions.--The State Board shall assist the Governor
in--
[(1) development of the State plan;
[(2) development and continuous improvement of a
statewide system of activities that are funded under
this subtitle or carried out through a one-stop
delivery system described in section 134(c) that
receives funds under this subtitle (referred to in this
title as a ``statewide workforce investment system''),
including--
[(A) development of linkages in order to
assure coordination and nonduplication among
the programs and activities described in
section 121(b); and
[(B) review of local plans;
[(3) commenting at least once annually on the
measures taken pursuant to section 113(b)(3) of the
Carl D. Perkins Career and Technical Education Act of
2006 (20 U.S.C 2323(b)(14));
[(4) designation of local areas as required in
section 116;
[(5) development of allocation formulas for the
distribution of funds for adult employment and training
activities and youth activities to local areas as
permitted under sections 128(b)(3)(B) and 133(b)(3)(B);
[(6) development and continuous improvement of
comprehensive State performance measures, including
State adjusted levels of performance, to assess the
effectiveness of the workforce investment activities in
the State as required under section 136(b);
[(7) preparation of the annual report to the
Secretary described in section 136(d);
[(8) development of the statewide employment
statistics system described in section 15(e) of the
Wagner-Peyser Act; and
[(9) development of an application for an incentive
grant under section 503.
[(e) Alternative Entity.--
[(1) In general.--For purposes of complying with
subsections (a), (b), and (c), a State may use any
State entity (including a State council, State
workforce development board, combination of regional
workforce development boards, or similar entity) that--
[(A) was in existence on December 31, 1997;
[(B)(i) was established pursuant to section
122 or title VII of the Job Training
Partnership Act, as in effect on December 31,
1997; or
[(ii) is substantially similar to the State
board described in subsections (a), (b), and
(c); and
[(C) includes representatives of business in
the State and representatives of labor
organizations in the State.
[(2) References.--References in this Act to a State
board shall be considered to include such an entity.]
(d) Functions.--The State board shall assist the Governor of
the State as follows:
(1) State plan.--Consistent with section 112, develop
a State plan.
(2) Statewide workforce development system.--Review
and develop statewide policies and programs in the
State in a manner that supports a comprehensive
Statewide workforce development system that will result
in meeting the workforce needs of the State and its
local areas. Such review shall include determining
whether the State should consolidate additional
programs into the Workforce Investment Fund in
accordance with section 501(e).
(3) Workforce and labor market information system.--
Develop a statewide workforce and labor market
information system described in section 15(e) of the
Wagner-Peyser Act, which may include using existing
information conducted by the State economic development
entity or related entity in developing such system.
(4) Employer engagement.--Develop strategies across
local areas that meet the needs of employers and
support economic growth in the State by enhancing
communication, coordination, and collaboration among
employers, economic development entities, and service
providers.
(5) Designation of local areas.--Designate local
areas as required under section 116.
(6) One-stop delivery system.--Identify and
disseminate information on best practices for effective
operation of one-stop centers, including use of
innovative business outreach, partnerships, and service
delivery strategies.
(7) Program oversight.--Conduct the following program
oversight:
(A) Reviewing and approving local plans under
section 118.
(B) Ensuring the appropriate use and
management of the funds provided for State
employment and training activities authorized
under section 134.
(C) Preparing an annual report to the
Secretary described in section 136(d).
(8) Development of performance measures.--Develop and
ensure continuous improvement of comprehensive State
performance measures, including State adjusted levels
of performance, as described under section 136(b).
[(f)] (e) Conflict of Interest.--A member of a State board
may not--
(1) vote or participate in any action taken on a
matter under consideration by the State board--
(A) * * *
* * * * * * *
(f) Staff.--The State board may employ staff to assist in
carrying out the functions described in subsection (d).
(g) Sunshine Provision.--The State board shall make available
to the public, on a regular basis through electronic means and
open meetings, information regarding the activities of the
State board, including information regarding the State plan
prior to submission of the plan, information regarding
membership, and, on request, minutes of formal meetings of the
State board.
SEC. 112. STATE PLAN.
(a) In General.--For a State to be eligible to receive an
allotment under section [127 or] 132, or to receive financial
assistance under the Wagner-Peyser Act (29 U.S.C. 49 et seq.),
the Governor of the State shall submit to the Secretary for
consideration by the Secretary, a single State plan (referred
to in this title as the ``State plan'') that outlines a [5-year
strategy] 3-year strategy for the statewide workforce
investment system of the State and that meets the requirements
of section 111 and this section.
(b) Contents.--The State plan shall include--
(1) * * *
* * * * * * *
[(4) information describing--
[(A) the needs of the State with regard to
current and projected employment opportunities,
by occupation;
[(B) the job skills necessary to obtain such
employment opportunities;
[(C) the skills and economic development
needs of the State; and
[(D) the type and availability of workforce
investment activities in the State;]
(4) information describing--
(A) the economic conditions in the State;
(B) the immediate and long-term skilled
workforce needs of in-demand industries, small
businesses, and other occupations important to
the State economy;
(C) the knowledge and skills of the workforce
in the State; and
(D) workforce development activities
(including education and training) in the
State;
* * * * * * *
[(7) the detailed plans required under section 8 of
the Wagner-Peyser Act (29 U.S.C. 49g);
[(8)(A) a description of the procedures that will be
taken by the State to assure coordination of and avoid
duplication among--
[(i) workforce investment activities
authorized under this title;
[(ii) other activities authorized under this
title;
[(iii) programs authorized under the Wagner-
Peyser Act (29 U.S.C. 49 et seq.), title II of
this Act, title I of the Rehabilitation Act of
1973 (29 U.S.C. 720 et seq.), part A of title
IV of the Social Security Act (42 U.S.C. 601 et
seq.), and section 6(d)(4) of the Food and
Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)),
activities authorized under title V of the
Older Americans Act of 1965 (42 U.S.C. 3056 et
seq.), and career and technical education
activities at the postsecondary level
authorized under the Carl D. Perkins Career and
Technical Education Act of 2006 (20 U.S.C. 2301
et seq.);
[(iv) work programs authorized under section
6(o) of the Food and Nutrition Act of 2008 (7
U.S.C. 2015(o));
[(v) activities authorized under chapter 2 of
title II of the Trade Act of 1974 (19 U.S.C.
2271 et seq.);
[(vi) activities authorized under chapter 41
of title 38, United States Code;
[(vii) employment and training activities
carried out under the Community Services Block
Grant Act (42 U.S.C. 9901 et seq.);
[(viii) activities authorized under the
National and Community Service Act of 1990 (42
U.S.C. 12501 et seq.);
[(ix) employment and training activities
carried out by the Department of Housing and
Urban Development; and
[(x) programs authorized under State
unemployment compensation laws (in accordance
with applicable Federal law); and
[(B) a description of the common data collection and
reporting processes used for the programs and
activities described in subparagraph (A);]
(7) a description of the State criteria for
determining the eligibility of training providers in
accordance with section 122, including how the State
will take into account the performance of providers and
whether the training programs relate to occupations
that are in-demand;
(8)(A) a description of the procedures that will be
taken by the State to assure coordination of, and avoid
duplication among, the programs and activities
identified under section 501(b)(2); and
(B) a description of common data collection and
reporting processes used for the programs and
activities described in subparagraph (A), which are
carried out by one-stop partners, including--
(i) assurances that such processes use
quarterly wage records for performance measures
described in section 136(b)(2)(A) that are
applicable to such programs or activities; or
(ii) if such wage records are not being used
for the performance measures, an identification
of the barriers to using such wage records and
a description of how the State will address
such barriers within one year of the approval
of the plan;
(9) a description of the process used by the State,
consistent with section 111(g), to provide an
opportunity for public comment[, including comment by
representatives of businesses and representatives of
labor organizations,] and input into development of the
plan, prior to submission of the plan;
* * * * * * *
(11) assurances that the State will provide, in
accordance with section 184 for fiscal control and fund
accounting procedures that may be necessary to ensure
the proper disbursement of, and accounting for, funds
paid to the State through the allotments made [under
sections 127 and 132] under section 132;
[(12)(A) a description of the methods and factors the
State will use in distributing funds to local areas for
youth activities and adult employment and training
activities under sections 128(b)(3)(B) and
133(b)(3)(B), including--
[(i) a description of how the individuals and
entities represented on the State board were
involved in determining such methods and
factors of distribution; and
[(ii) a description of how the State
consulted with chief elected officials in local
areas throughout the State in determining such
distribution;
[(B) assurances that the funds will be distributed
equitably throughout the State, and that no local areas
will suffer significant shifts in funding from year to
year; and
[(C) a description of the formula prescribed by the
Governor pursuant to section 133(b)(2)(B) for the
allocation of funds to local areas for dislocated
worker employment and training activities;]
[(13)] (12) information specifying the actions that
constitute a conflict of interest prohibited in the
State for purposes of sections [111(f)] 111(e) and
117(g);
[(14)] (13) with respect to the one-stop delivery
systems described in section [134(c)] 121(e) (referred
to individually in this title as a ``one-stop delivery
system''), a description of the strategy of the State
for assisting local areas in development and
implementation of fully operational one-stop delivery
systems in the State;
[(15)] (14) a description of the appeals process
referred to in section [116(a)(5)] 116(a)(4);
[(16)] (15) a description of the competitive process
to be used by the State to award grants and contracts
in the State for activities carried out under this
title;
[(17)] (16) with respect to the employment and
training activities authorized in section 134--
(A) a description of--
(i) * * *
(ii) how the State will provide rapid
response activities [to dislocated
workers] from funds reserved under
section 133(a)(2) for such purposes,
including the designation of an
identifiable State rapid response
dislocated worker unit to carry out
statewide rapid response activities;
(iii) the procedures the local boards
in the State will use to identify
eligible providers of training services
described in section [134(d)(4)]
134(c)(4) (other than on-the-job
training or customized training), as
required under section 122; [and]
[(iv) how the State will serve the
employment and training needs of
dislocated workers (including displaced
homemakers), low-income individuals
(including recipients of public
assistance), individuals training for
nontraditional employment, and other
individuals with multiple barriers to
employment (including older individuals
and individuals with disabilities);
and]
(iv) how the State will serve the
employment and training needs of
dislocated workers (including displaced
homemakers), low-income individuals
(including recipients of public
assistance such as supplemental
nutrition assistance program benefits
pursuant to the Food and Nutrition Act
of 2008 (7 U.S.C. 2011 et seq.)), long-
term unemployed individuals (including
individuals who have exhausted
entitlement to State and Federal
unemployment compensation), English
learners, homeless individuals,
individuals training for nontraditional
employment, youth (including out-of-
school youth and at-risk youth), older
workers, ex-offenders, migrant and
seasonal farmworkers, refugee and
entrants, veterans (including disabled
and homeless veterans), and Native
Americans; and
(v) how the State will--
(I) consistent with section
188 and Executive Order 13217
(42 U.S.C. 12131 note), serve
the employment and training
needs of individuals with
disabilities; and
(II) consistent with sections
504 and 508 of the
Rehabilitation Act of 1973,
include the provision of
outreach, intake, assessments,
and service delivery, the
development of performance
measures, the training of
staff, and other aspects of
accessibility to programs and
services under this subtitle;
(B) an assurance that veterans will be
afforded the employment and training activities
by the State, [to the extent practicable] in
accordance with the requirements of the Jobs
for Veterans Act (Public Law 107-288) and the
amendments made by such Act; and
[(18) with respect to youth activities authorized in
section 129, information--
[(A) describing the State strategy for
providing comprehensive services to eligible
youth, particularly those eligible youth who
are recognized as having significant barriers
to employment;
[(B) identifying the criteria to be used by
local boards in awarding grants for youth
activities, including criteria that the
Governor and local boards will use to identify
effective and ineffective youth activities and
providers of such activities;
[(C) describing how the State will coordinate
the youth activities carried out in the State
under section 129 with the services provided by
Job Corps centers in the State (where such
centers exist); and
[(D) describing how the State will coordinate
youth activities described in subparagraph (C)
with activities carried out through the youth
opportunity grants under section 169.]
(17) a description of the strategies and services
that will be used in the State--
(A) to more fully engage employers, including
small businesses and employers in in-demand
industries and occupations important to the
State economy;
(B) to meet the needs of employers in the
State; and
(C) to better coordinate workforce
development programs with economic development
activities;
(18) a description of how the State board will
convene (or help to convene) industry or sector
partnerships that lead to collaborative planning,
resource alignment, and training efforts across
multiple firms for a range of workers employed or
potentially employed by a targeted industry cluster--
(A) to encourage industry growth and
competitiveness and to improve worker training,
retention, and advancement in targeted industry
clusters;
(B) to address the immediate and long-term
skilled workforce needs of in-demand industries
and other occupations important to the State
economy, and
(C) to address critical skill gaps within and
across industries;
(19) a description of how the State will utilize
technology to facilitate access to services in remote
areas, which may be used throughout the State;
(20) a description of the State strategy and
assistance to be provided for encouraging regional
cooperation within the State and across State borders,
as appropriate;
(21) a description of the actions that will be taken
by the State to foster communication, coordination, and
partnerships with non-profit organizations (including
public libraries, community, faith-based, and
philanthropic organizations) that provide employment-
related, training, and complementary services, to
enhance the quality and comprehensiveness of services
available to participants under this title;
(22) a description of the process and methodology for
determining--
(A) one-stop partner program contributions
for the cost of the infrastructure of one-stop
centers under section 121(h)(1); and
(B) the formula for allocating such
infrastructure funds to local areas under
section 121(h)(3);
(23) a description of the strategies and services
that will be used in the State to assist at-risk youth
and out-of-school youth in acquiring the education and
skills, credentials (including recognized postsecondary
credentials and industry-recognized credentials), and
employment experience to succeed in the labor market,
including--
(A) training and internships in in-demand
industries or occupations important to the
State and local economy;
(B) dropout recovery activities that are
designed to lead to the attainment of a regular
secondary school diploma or its recognized
equivalent, or other State recognized
equivalent (including recognized alternative
standards for individuals with disabilities);
and
(C) activities combining remediation of
academic skills, work readiness training, and
work experience, and including linkages to
postsecondary education and training and
career-ladder employment; and
(24) a description of--
(A) how the State will furnish employment,
training, supportive, and placement services to
veterans, including disabled and homeless
veterans;
(B) the strategies and services that will be
used in the State to assist and expedite
reintegration of homeless veterans into the
labor force; and
(C) the veteran population to be served in
the State.
(c) Plan Submission and Approval.--A State plan submitted to
the Secretary under this section by a Governor shall be
considered to be approved by the Secretary at the end of the
90-day period beginning on the day the Secretary receives the
plan, unless the Secretary makes a written determination,
during the 90-day [period, that--]
[(1) the plan is inconsistent with the provisions of
this title; or
[(2) in the case of the portion of the plan described
in section 8(a) of the Wagner-Peyser Act (29 U.S.C.
49g(a)), the portion does not satisfy the criteria for
approval provided in section 8(d) of such Act.] period,
that the plan is inconsistent with the provisions of
this title.
(d) Modifications to Plan.--A State may submit modifications
to a State plan in accordance with the requirements of this
section and section 111 as necessary during the [5-year] 3-year
period covered by the plan.
CHAPTER 2--LOCAL PROVISIONS
SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.
(a) Designation of Areas.--
(1) In general.--
(A) Process.--[Except as provided in
subsection (b), and consistent with paragraphs
(2), (3), and (4), in] In order for a State to
receive an allotment under section [127 or]
132, the Governor of the State shall designate
local workforce investment areas within the
State--
(i) * * *
* * * * * * *
[(B) Considerations.--In making the
designation of local areas, the Governor shall
take into consideration the following:
[(i) Geographic areas served by local
educational agencies and intermediate
educational agencies.
[(ii) Geographic areas served by
postsecondary educational institutions
and area vocational education schools.
[(iii) The extent to which such local
areas are consistent with labor market
areas.
[(iv) The distance that individuals
will need to travel to receive services
provided in such local areas.
[(v) The resources of such local
areas that are available to effectively
administer the activities carried out
under this subtitle.]
(B) Considerations.--In making the
designation of local areas, the Governor shall
take into consideration the following:
(i) The extent to which such local
areas are consistent with labor market
areas.
(ii) The extent to which labor market
areas align with economic development
regions.
(iii) Whether such local areas have
the appropriate education and training
providers to meet the needs of the
local workforce.
(iv) The distance that individuals
will need to travel to receive services
provided in such local areas.
[(2) Automatic designation.--The Governor shall
approve any request for designation as a local area--
[(A) from any unit of general local
government with a population of 500,000 or
more;
[(B) of the area served by a rural
concentrated employment program grant recipient
of demonstrated effectiveness that served as a
service delivery area or substate area under
the Job Training Partnership Act, if the grant
recipient has submitted the request; and
[(C) of an area that served as a service
delivery area under section 101(a)(4)(A)(ii) of
the Job Training Partnership Act (as in effect
on the day before the date of enactment of this
Act) in a State that has a population of not
more than 1,100,000 and a population density
greater than 900 persons per square mile.
[(3) Temporary and subsequent designation.--
[(A) Criteria.--Notwithstanding paragraph
(2)(A), the Governor shall approve any request,
made not later than the date of submission of
the initial State plan under this subtitle, for
temporary designation as a local area from any
unit of general local government (including a
combination of such units) with a population of
200,000 or more that was a service delivery
area under the Job Training Partnership Act on
the day before the date of enactment of this
Act if the Governor determines that the area--
[(i) performed successfully, in each
of the last 2 years prior to the
request for which data are available,
in the delivery of services to
participants under part A of title II
and title III of the Job Training
Partnership Act (as in effect on such
day); and
[(ii) has sustained the fiscal
integrity of the funds used by the area
to carry out activities under such part
and title.
[(B) Duration and subsequent designation.--A
temporary designation under this paragraph
shall be for a period of not more than 2 years,
after which the designation shall be extended
until the end of the period covered by the
State plan if the Governor determines that,
during the temporary designation period, the
area substantially met (as defined by the State
board) the local performance measures for the
local area and sustained the fiscal integrity
of the funds used by the area to carry out
activities under this subtitle.
[(C) Technical assistance.--The Secretary
shall provide the States with technical
assistance in making the determinations
required by this paragraph. The Secretary shall
not issue regulations governing determinations
to be made under this paragraph.
[(D) Performed successfully.--In this
paragraph, the term ``performed successfully''
means that the area involved met or exceeded
the performance standards for activities
administered in the area that--
[(i) are established by the Secretary
for each year and modified by the
adjustment methodology of the State
(used to account for differences in
economic conditions, participant
characteristics, and combination of
services provided from the combination
assumed for purposes of the established
standards of the Secretary); and
[(ii)(I) if the area was designated
as both a service delivery area and a
substate area under the Job Training
Partnership Act (as in effect on the
day before the date of enactment of
this Act)--
[(aa) relate to job retention
and earnings, with respect to
activities carried out under
part A of title II of such Act
(as in effect on such day); and
[(bb) relate to entry into
employment, with respect to
activities carried out under
title III of such Act (as in
effect on such day);
[(II) if the area was designated only
as a service delivery area under such
Act (as in effect on such day), relate
to the standards described in subclause
(I)(aa); or
[(III) if the area was only
designated as a substate area under
such Act (as in effect on such day),
relate to the standards described in
subclause (I)(bb).
[(E) Sustained the fiscal integrity.--In this
paragraph, the term ``sustained the fiscal
integrity'', used with respect to funds used by
a service delivery area or local area, means
that the Secretary has not made a final
determination during any of the last 3 years
for which data are available, prior to the date
of the designation request involved, that
either the grant recipient or the
administrative entity of the area misexpended
the funds due to willful disregard of the
requirements of the Act involved, gross
negligence, or failure to observe accepted
standards of administration.
[(4) Designation on recommendation of state board.--
The Governor may approve a request from any unit of
general local government (including a combination of
such units) for designation (including temporary
designation) as a local area if the State board
determines, taking into account the factors described
in clauses (i) through (v) of paragraph (1)(B), and
recommends to the Governor, that such area should be so
designated.]
(2) Technical assistance.--The Secretary shall, if
requested by the Governor of a State, provide the State
with technical assistance in making the determinations
required under paragraph (1). The Secretary shall not
issue regulations governing determinations to be made
under paragraph (1).
(3) Designation on recommendation of state board.--
The Governor may approve a request from any unit of
general local government (including a combination of
such units) for designation as a local area under
paragraph (1) if the State board determines, taking
into account the factors described in clauses (i)
through (iv) of paragraph (1)(B), and recommends to the
Governor, that such area shall be so designated.
[(5)] (4) Appeals.--A unit of general local
government (including a combination of such units) or
grant recipient that requests but is not granted
designation of an area as a local area under paragraph
(2) or (3) may submit an appeal to the State board
under an appeal process established in the State plan.
If the appeal does not result in such a designation,
the Secretary, after receiving a request for review
from the unit or grant recipient and on determining
that the unit or grant recipient was not accorded
procedural rights under the appeal process established
in the State plan or that the area meets the
requirements of paragraph (2) or (3), as appropriate,
may require that the area be designated as a local area
under such paragraph.
[(b) Small States.--The Governor of any State that was a
single State service delivery area under the Job Training
Partnership Act as of July 1, 1998, may designate the State as
a single State local area for the purposes of this title. In
the case of such a designation, the Governor shall identify the
State as a local area under section 112(b)(5).]
(b) Single States.--Consistent with subsection (a)(1)(B), the
Governor may designate a State as a single State local area for
the purposes of this title.
(c) Regional Planning and Cooperation.--
(1) Planning.--As part of the process for developing
the State plan, a State may require regional planning
by local boards for a designated region in the State.
The State may require the local boards for a designated
region to participate in a regional planning process
that results in the establishment of regional
performance measures for workforce investment
activities authorized under this subtitle. The State
may award regional incentive grants to the designated
regions that meet or exceed the regional performance
measures. The State may require the local boards for
the designated region to prepare a single regional plan
that incorporates the elements of the local plan under
section 118 and that is submitted and approved in lieu
of separate local plans under such section.
(2) Information sharing.--The State may require the
local boards for a designated region to share, in
feasible cases, [employment statistics] workforce and
labor market information, information about employment
opportunities and trends, and other types of
information that would assist in improving the
performance of all local areas in the designated region
on local performance measures.
* * * * * * *
SEC. 117. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) * * *
(b) Membership.--
(1) * * *
(2) Composition.--Such criteria shall require, at a
minimum, that the membership of each local board--
(A) shall [include--
[(i) representatives] include
representatives of business in the
local area, who--
[(I)] (i) are owners of businesses,
chief executives or operating officers
of businesses, and other business
executives or employers with optimum
policymaking or hiring authority;
[(II) represent businesses with
employment opportunities that reflect
the employment opportunities of the
local area; and]
(ii) represent businesses, including
large and small businesses, with
immediate and long-term employment
opportunities in in-demand industries
and other occupations important to the
local economy; and
[(III)] (iii) are appointed from
among individuals nominated by local
business organizations and business
trade associations; and
[(ii) representatives of local
educational entities, including
representatives of local educational
agencies, local school boards, entities
providing adult education and literacy
activities, and postsecondary
educational institutions (including
representatives of community colleges,
where such entities exist), selected
from among individuals nominated by
regional or local educational agencies,
institutions, or organizations
representing such local educational
entities;
[(iii) representatives of labor
organizations (for a local area in
which employees are represented by
labor organizations), nominated by
local labor federations, or (for a
local area in which no employees are
represented by such organizations),
other representatives of employees;
[(iv) representatives of community-
based organizations (including
organizations representing individuals
with disabilities and veterans, for a
local area in which such organizations
are present);
[(v) representatives of economic
development agencies, including private
sector economic development entities;
and
[(vi) representatives of each of the
one-stop partners; and]
[(B) may include such other individuals or
representatives of entities as the chief
elected official in the local area may
determine to be appropriate.]
(B) may include such other individuals or
representatives of entities as the chief
elected official in the local area may
determine to be appropriate, including--
(i) a superintendent of the local
secondary school system, the president
or chief executive officer of a
postsecondary educational institution
(including a community college, where
such an entity exists), or an
administrator of local entities
providing adult education and literacy
activities;
(ii) representatives of community-
based organizations (including
organizations representing individuals
with disabilities and veterans, for a
local area in which such organizations
are present); or
(iii) representatives of veterans
service organizations.
* * * * * * *
(4) Majority.--[A majority] A \2/3\ majority of the
members of the local board shall be representatives
described in paragraph [(2)(A)(i)] (2)(A).
(5) Chairperson.--The local board shall elect a
chairperson for the local board from among the
representatives described in paragraph [(2)(A)(i)]
(2)(A).
(c) Appointment and Certification of Board.--
(1) Appointment of board members and assignment of
responsibilities.--
(A) * * *
* * * * * * *
[(C) Concentrated employment programs.--In
the case of a local area designated in
accordance with section 116(a)(2)(B), the
governing body of the concentrated employment
program involved shall act in consultation with
the chief elected official in the local area to
appoint members of the local board, in
accordance with the State criteria established
under subsection (b), and to carry out any
other responsibility relating to workforce
investment activities assigned to such official
under this Act.]
* * * * * * *
[(d) Functions of Local Board.--The functions of the local
board shall include the following:
[(1) Local plan.--Consistent with section 118, each
local board, in partnership with the chief elected
official for the local area involved, shall develop and
submit a local plan to the Governor.
[(2) Selection of operators and providers.--
[(A) Selection of one-stop operators.--
Consistent with section 121(d), the local
board, with the agreement of the chief elected
official--
[(i) shall designate or certify one-
stop operators as described in section
121(d)(2)(A); and
[(ii) may terminate for cause the
eligibility of such operators.
[(B) Selection of youth providers.--
Consistent with section 123, the local board
shall identify eligible providers of youth
activities in the local area by awarding grants
or contracts on a competitive basis, based on
the recommendations of the youth council.
[(C) Identification of eligible providers of
training services.--Consistent with section
122, the local board shall identify eligible
providers of training services described in
section 134(d)(4) in the local area.
[(D) Identification of eligible providers of
intensive services.--If the one-stop operator
does not provide intensive services in a local
area, the local board shall identify eligible
providers of intensive services described in
section 134(d)(3) in the local area by awarding
contracts.
[(3) Budget and administration.--
[(A) Budget.--The local board shall develop a
budget for the purpose of carrying out the
duties of the local board under this section,
subject to the approval of the chief elected
official.
[(B) Administration.--
[(i) Grant recipient.--
[(I) In general.--The chief
elected official in a local
area shall serve as the local
grant recipient for, and shall
be liable for any misuse of,
the grant funds allocated to
the local area under sections
128 and 133, unless the chief
elected official reaches an
agreement with the Governor for
the Governor to act as the
local grant recipient and bear
such liability.
[(II) Designation.--In order
to assist in the administration
of the grant funds, the chief
elected official or the
Governor, where the Governor
serves as the local grant
recipient for a local area, may
designate an entity to serve as
a local grant subrecipient for
such funds or as a local fiscal
agent. Such designation shall
not relieve the chief elected
official or the Governor of the
liability for any misuse of
grant funds as described in
subclause (I).
[(III) Disbursal.--The local
grant recipient or an entity
designated under subclause (II)
shall disburse such funds for
workforce investment activities
at the direction of the local
board, pursuant to the
requirements of this title, if
the direction does not violate
a provision of this Act. The
local grant recipient or entity
designated under subclause (II)
shall disburse the funds
immediately on receiving such
direction from the local board.
[(ii) Staff.--The local board may
employ staff.
[(iii) Grants and donations.--The
local board may solicit and accept
grants and donations from sources other
than Federal funds made available under
this Act.
[(4) Program oversight.--The local board, in
partnership with the chief elected official, shall
conduct oversight with respect to local programs of
youth activities authorized under section 129, local
employment and training activities authorized under
section 134, and the one-stop delivery system in the
local area.
[(5) Negotiation of local performance measures.--The
local board, the chief elected official, and the
Governor shall negotiate and reach agreement on local
performance measures as described in section 136(c).
[(6) Employment statistics system.--The local board
shall assist the Governor in developing the statewide
employment statistics system described in section 15(e)
of the Wagner-Peyser Act.
[(7) Employer linkages.--The local board shall
coordinate the workforce investment activities
authorized under this subtitle and carried out in the
local area with economic development strategies and
develop other employer linkages with such activities.
[(8) Connecting, brokering, and coaching.--The local
board shall promote the participation of private sector
employers in the statewide workforce investment system
and ensure the effective provision, through the system,
of connecting, brokering, and coaching activities,
through intermediaries such as the one-stop operator in
the local area or through other organizations, to
assist such employers in meeting hiring needs.]
(d) Functions of Local Board.--The functions of the local
board shall include the following:
(1) Local plan.--Consistent with section 118, each
local board, in partnership with the chief elected
official for the local area involved, shall develop and
submit a local plan to the Governor.
(2) Workforce research and regional labor market
analysis.--
(A) In general.--The local board shall--
(i) conduct, and regularly update, an
analysis of--
(I) the economic conditions
in the local area;
(II) the immediate and long-
term skilled workforce needs of
in-demand industries and other
occupations important to the
local economy;
(III) the knowledge and
skills of the workforce in the
local area; and
(IV) workforce development
activities (including education
and training) in the local
area; and
(ii) assist the Governor in
developing the statewide workforce and
labor market information system
described in section 15(e) of the
Wagner-Peyser Act.
(B) Existing analysis.--A local board shall
use existing analysis by the local economic
development entity or related entity in order
to carry out requirements of subparagraph
(A)(i).
(3) Employer engagement.--The local Board shall meet
the needs of employers and support economic growth in
the local area by enhancing communication,
coordination, and collaboration among employers,
economic development entities, and service providers.
(4) Budget and administration.--
(A) Budget.--
(i) In general.--The local board
shall develop a budget for the
activities of the local board in the
local area, consistent with the
requirements of this subsection.
(ii) Training reservation.--In
developing a budget under clause (i),
the local board shall reserve a
percentage of funds to carry out the
activities specified in section
134(c)(4). The local board shall use
the analysis conducted under paragraph
(2)(A)(i) to determine the appropriate
percentage of funds to reserve under
this clause.
(B) Administration.--
(i) Grant recipient.--
(I) In general.--The chief
elected official in a local
area shall serve as the local
grant recipient for, and shall
be liable for any misuse of,
the grant funds allocated to
the local area under section
133, unless the chief elected
official reaches an agreement
with the Governor for the
Governor to act as the local
grant recipient and bear such
liability.
(II) Designation.--In order
to assist in administration of
the grant funds, the chief
elected official or the
Governor, where the Governor
serves as the local grant
recipient for a local area, may
designate an entity to serve as
a local grant subrecipient for
such funds or as a local fiscal
agent. Such designation shall
not relieve the chief elected
official or the Governor of the
liability for any misuse of
grant funds as described in
subclause (I).
(III) Disbursal.--The local
grant recipient or an entity
designated under subclause (II)
shall disburse the grant funds
for workforce investment
activities at the direction of
the local board, pursuant to
the requirements of this title.
The local grant recipient or
entity designated under
subclause (II) shall disburse
the funds immediately on
receiving such direction from
the local board.
(ii) Staff.--The local board may
employ staff to assist in carrying out
the functions described in this
subsection.
(iii) Grants and donations.--The
local board may solicit and accept
grants and donations from sources other
than Federal funds made available under
this Act.
(5) Selection of operators and providers.--
(A) Selection of one-stop operators.--
Consistent with section 121(d), the local
board, with the agreement of the chief elected
official--
(i) shall designate or certify one-
stop operators as described in section
121(d)(2)(A); and
(ii) may terminate for cause the
eligibility of such operators.
(B) Identification of eligible training
service providersConsistent with this subtitle,
the local board shall identify eligible
providers of training services described in
section 134(c)(4) in the local area, annually
review the outcome of individual training
providers using the criteria under section
122(b)(2), and designate providers in the local
area who have demonstrated the highest level of
success with respect to such indicators as
priority providers for the following program
year.
(C) Identification of eligible providers of
work ready services.--If the one-stop operator
does not provide the services described in
section 134(c)(2) in the local area, the local
board shall identify eligible providers of such
services in the local area by awarding
contracts.
(6) Program oversight.--The local board, in
partnership with the chief elected official, shall be
responsible for--
(A) ensuring the appropriate use and
management of the funds provided for local
employment and training activities authorized
under section 134(b); and
(B) conducting oversight of the one-stop
delivery system in the local area authorized
under section 121.
(7) Negotiation of local performance measures.--The
local board, the chief elected official, and the
Governor shall negotiate and reach agreement on local
performance measures as described in section 136(c).
(8) Technology improvements.--The local board shall
develop strategies for technology improvements to
facilitate access to services authorized under this
subtitle and carried out in the local area, including
in remote areas.
(e) Sunshine Provision.--The local board shall make available
to the public, on a regular basis through electronic means and
open meetings, information regarding the activities of the
local board, including information regarding the local plan
prior to submission of the plan, and regarding membership, the
designation and certification of one-stop operators, [and the
award of grants or contracts to eligible providers of youth
activities,] and on request, minutes of formal meetings of the
local board.
(f) Limitations.--
(1) Training services.--
(A) In general.--Except as provided in
subparagraph (B), no local board may provide
training services described in [section
134(d)(4)] section 134(c)(4).
* * * * * * *
[(2) Core services; intensive services; designation
or certification as one-stop operators.--A local board
may provide core services described in section
134(d)(2) or intensive services described in section
134(d)(3) through a one-stop delivery system described
in section 134(c) or be designated or certified as a
one-stop operator only with the agreement of the chief
elected official and the Governor.]
(2) Work ready services, designation, or
certification as one-stop operators.--A local board may
provide work ready services described in section
134(c)(2) through a one-stop delivery system described
in section 121 or be designated or certified as a one-
stop operator only with the agreement of the chief
elected official and the Governor.
* * * * * * *
(g) Conflict of Interest.--A member of a local board may
not--
(1) vote or participate in any action taken on a
matter under consideration by the local board--
(A) * * *
* * * * * * *
[(h) Youth Council.--
[(1) Establishment.--There shall be established, as a
subgroup within each local board, a youth council
appointed by the local board, in cooperation with the
chief elected official for the local area.
[(2) Membership.--The membership of each youth
council--
[(A) shall include--
[(i) members of the local board
described in subparagraph (A) or (B) of
subsection (b)(2) with special interest
or expertise in youth policy;
[(ii) representatives of youth
service agencies, including juvenile
justice and local law enforcement
agencies;
[(iii) representatives of local
public housing authorities;
[(iv) parents of eligible youth
seeking assistance under this subtitle;
[(v) individuals, including former
participants, and representatives of
organizations, that have experience
relating to youth activities; and
[(vi) representatives of the Job
Corps, as appropriate; and
[(B) may include such other individuals as
the chairperson of the local board, in
cooperation with the chief elected official,
determines to be appropriate.
[(3) Relationship to local board.--Members of the
youth council who are not members of the local board
described in subparagraphs (A) and (B) of subsection
(b)(2) shall be voting members of the youth council and
nonvoting members of the board.
[(4) Duties.--The duties of the youth council
include--
[(A) developing the portions of the local
plan relating to eligible youth, as determined
by the chairperson of the local board;
[(B) subject to the approval of the local
board and consistent with section 123--
[(i) recommending eligible providers
of youth activities, to be awarded
grants or contracts on a competitive
basis by the local board to carry out
the youth activities; and
[(ii) conducting oversight with
respect to the eligible providers of
youth activities, in the local area;
[(C) coordinating youth activities authorized
under
section 129 in the local area; and
[(D) other duties determined to be
appropriate by the chairperson of the local
board.
[(i) Alternative Entity.--
[(1) In general.--For purposes of complying with
subsections (a), (b), and (c), and paragraphs (1) and
(2) of subsection (h), a State may use any local entity
(including a local council, regional workforce
development board, or similar entity) that--
[(A) is established to serve the local area
(or the service delivery area that most closely
corresponds to the local area);
[(B) is in existence on December 31, 1997;
[(C)(i) is established pursuant to section
102 of the Job Training Partnership Act, as in
effect on December 31, 1997; or
[(ii) is substantially similar to the local
board described in subsections (a), (b), and
(c), and paragraphs (1) and (2) of subsection
(h); and
[(D) includes--
[(i) representatives of business in
the local area; and
[(ii)(I) representatives of labor
organizations (for a local area in
which employees are represented by
labor organizations), nominated by
local labor federations; or
[(II) other representatives of
employees in the local area (for a
local area in which no employees are
represented by such organizations).
[(2) References.--References in this Act to a local
board or a youth council shall be considered to include
such an entity or a subgroup of such an entity,
respectively.]
SEC. 118. LOCAL PLAN.
(a) In General.--Each local board shall develop and submit to
the Governor a comprehensive [5-year] 3-year local plan
(referred to in this title as the ``local plan''), in
partnership with the appropriate chief elected official. The
plan shall be consistent with the State plan.
[(b) Contents.--The local plan shall include--
[(1) an identification of--
[(A) the workforce investment needs of
businesses, jobseekers, and workers in the
local area;
[(B) the current and projected employment
opportunities in the local area; and
[(C) the job skills necessary to obtain such
employment opportunities;
[(2) a description of the one-stop delivery system to
be established or designated in the local area,
including--
[(A) a description of how the local board
will ensure the continuous improvement of
eligible providers of services through the
system and ensure that such providers meet the
employment needs of local employers and
participants; and
[(B) a copy of each memorandum of
understanding described in section 121(c)
(between the local board and each of the one-
stop partners) concerning the operation of the
one-stop delivery system in the local area;
[(3) a description of the local levels of performance
negotiated with the Governor and chief elected official
pursuant to section 136(c), to be used to measure the
performance of the local area and to be used by the
local board for measuring the performance of the local
fiscal agent (where appropriate), eligible providers,
and the one-stop delivery system, in the local area;
[(4) a description and assessment of the type and
availability of adult and dislocated worker employment
and training activities in the local area;
[(5) a description of how the local board will
coordinate workforce investment activities carried out
in the local area with statewide rapid response
activities, as appropriate;
[(6) a description and assessment of the type and
availability of youth activities in the local area,
including an identification of successful providers of
such activities;
[(7) a description of the process used by the local
board, consistent with subsection (c), to provide an
opportunity for public comment, including comment by
representatives of businesses and comment by
representatives of labor organizations, and input into
the development of the local plan, prior to submission
of the plan;
[(8) an identification of the entity responsible for
the disbursal of grant funds described in section
117(d)(3)(B)(i)(III), as determined by the chief
elected official or the Governor under section
117(d)(3)(B)(i);
[(9) a description of the competitive process to be
used to award the grants and contracts in the local
area for activities carried out under this subtitle;
and
[(10) such other information as the Governor may
require.]
(b) Contents.--The local plan shall include--
(1) a description of the analysis of the local area's
economic and workforce conditions conducted under
section 117(d)(2)(A)(i), and an assurance that the
local board will use such analysis to carry out the
activities under this subtitle;
(2) a description of the one-stop delivery system in
the local area, including--
(A) a description of how the local board will
ensure--
(i) the continuous improvement of
eligible providers of services through
the system; and
(ii) that such providers meet the
employment needs of local businesses
and participants; and
(B) a description of how the local board will
facilitate access to services provided through
the one-stop delivery system consistent with
section 117(d)(8);
(3) a description of the strategies and services that
will be used in the local area--
(A) to more fully engage employers, including
small businesses and employers in in-demand
industries and occupations important to the
local economy;
(B) to meet the needs of employers in the
local area;
(C) to better coordinate workforce
development programs with economic development
activities; and
(D) to better coordinate workforce
development programs with employment, training,
and literacy services carried out by nonprofit
organizations, including public libraries, as
appropriate;
(4) a description of how the local board will convene
(or help to convene) industry or sector partnerships
that lead to collaborative planning, resource
alignment, and training efforts across multiple firms
for a range of workers employed or potentially employed
by a targeted industry cluster--
(A) to encourage industry growth and
competitiveness and to improve worker training,
retention, and advancement in targeted industry
clusters;
(B) to address the immediate and long-term
skilled workforce needs of in-demand
industries, small businesses, and other
occupations important to the local economy; and
(C) to address critical skill gaps within and
across industries;
(5) a description of how the funds reserved under
section 117(d)(4)(A)(ii) will be used to carry out
activities described in section 134(c)(4);
(6) a description of how the local board will
coordinate workforce investment activities carried out
in the local area with statewide activities, as
appropriate;
(7) a description of how the local area will--
(A) coordinate activities with the local
area's disability community and with services
provided under section 614(d)(1)(A)(i)(VIII) of
the Individuals with Disabilities Education Act
(20 U.S.C. 1414(d)(1)(A)(i)(VIII)) by local
educational agencies serving such local area to
make available comprehensive, high-quality
services to individuals with disabilities;
(B) consistent with section 188 and Executive
Order 13217 (42 U.S.C. 12131 note), serve the
employment and training needs of individuals
with disabilities; and
(C) consistent with sections 504 and 508 of
the Rehabilitation Act of 1973, include the
provision of outreach, intake, assessments, and
service delivery, the development of
performance measures, the training of staff,
and other aspects of accessibility to programs
and services under this subtitle;
(8) a description of the local levels of performance
negotiated with the Governor and chief elected official
pursuant to section 136(c), to be--
(A) used to measure the performance of the
local area; and
(B) used by the local board for measuring
performance of the local fiscal agent (where
appropriate), eligible providers, and the one-
stop delivery system, in the local area;
(9) a description of the process used by the local
board, consistent with subsection (c), to provide an
opportunity for public comment prior to submission of
the plan;
(10) a description of how the local area will serve
the employment and training needs of dislocated workers
(including displaced homemakers), low-income
individuals (including recipients of public assistance
such as the Supplemental Nutrition Assistance Program),
long-term unemployed individuals (including individuals
who have exhausted entitlement to State and Federal
unemployment compensation), English learners, homeless
individuals, individuals training for nontraditional
employment, youth (including out-of-school youth and
at-risk youth), older workers, ex-offenders, migrant
and seasonal farmworkers, refugee and entrants,
veterans (including disabled veterans and homeless
veterans), and Native Americans;
(11) an identification of the entity responsible for
the disbursal of grant funds described in subclause
(III) of section 117(d)(4)(B)(i), as determined by the
chief elected official or the Governor under such
section;
(12) a description of the strategies and services
that will be used in the local area to assist at-risk
youth and out-of-school youth in acquiring the
education and skills, credentials (including recognized
postsecondary credentials and industry-recognized
credentials), and employment experience to succeed in
the labor market, including--
(A) training and internships in in-demand
industries or occupations important to the
local economy;
(B) dropout recovery activities that are
designed to lead to the attainment of a regular
secondary school diploma or its recognized
equivalent, or other State recognized
equivalent (including recognized alternative
standards for individuals with disabilities);
and
(C) activities combining remediation of
academic skills, work readiness training, and
work experience, and including linkages to
postsecondary education and training and
career-ladder employment;
(13) a description of--
(A) how the local area will furnish
employment, training, supportive, and placement
services to veterans, including disabled and
homeless veterans;
(B) the strategies and services that will be
used in the local area to assist and expedite
reintegration of homeless veterans into the
labor force; and
(C) the veteran population to be served in
the local area;
(14) a description of--
(A) the duties assigned to the veteran
employment specialist consistent with the
requirements of section 134(f);
(B) the manner in which the veteran
employment specialist is integrated into the
One-Stop Career System described in section
121;
(C) the date on which the veteran employment
specialist was assigned; and
(D) whether the veteran employment specialist
has satisfactorily competed such training by
the National Veterans' Employment and Training
Services Institute; and
(15) such other information as the Governor may
require.
(c) Process.--Prior to the date on which the local board
submits a local plan under this section, the local board
shall--
(1) make available copies of a proposed local plan to
the public through [such means] electronic means such
as public hearings and local news media;
(2) allow members of the local board and members of
the public[, including representatives of business and
representatives of labor organizations,] to submit
comments on the proposed local plan to the local board,
not later than the end of the 30-day period beginning
on the date on which the proposed local plan is made
available; and
* * * * * * *
CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES PROVIDERS
SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.
(a) * * *
(b) One-Stop Partners.--
(1) Required partners.--
[(A) In general.--Each entity that carries
out a
program or activities described in subparagraph
(B) shall--
[(i) make available to participants,
through a one-stop delivery system, the
services described in section 134(d)(2)
that are applicable to such program or
activities; and
[(ii) participate in the operation of
such system consistent with the terms
of the memorandum described in
subsection (c), and with the
requirements of the Federal law in
which the program or activities are
authorized.]
(A) Roles and responsibilities of one-stop
partners.--Each entity that carries out a
program or activities described in subparagraph
(B) shall--
(i) provide access through the one-
stop delivery system to the program and
activities carried out by the entity,
including making the work ready
services described in section 134(c)(2)
that are applicable to the program of
the entity available at one-stop
centers (in addition to any other
appropriate locations);
(ii) use a portion of the funds
available to the program of the entity
to maintain the one-stop delivery
system, including payment of the
infrastructure costs of one-stop
centers in accordance with subsection
(h);
(iii) enter into a local memorandum
of understanding with the local board
relating to the operation of the one-
stop delivery system that meets the
requirements of subsection (c); and
(iv) participate in the operation of
the one-stop delivery system consistent
with the terms of the memorandum of
understanding, the requirements of this
title, and the requirements of the
Federal laws authorizing the programs
carried out by the entity.
(B) Programs and activities.--The programs
and activities referred to in subparagraph (A)
consist of--
(i) * * *
[(ii) programs authorized under the
Wagner-Peyser Act (29 U.S.C. 49 et
seq.);]
[(iii)] (ii) adult education and
literacy activities authorized under
title II;
[(iv)] (iii) programs authorized
under title I of the Rehabilitation Act
of 1973 (29 U.S.C. 720 et seq.) (other
than part C of title I of such Act and
subject to subsection (f));
[(v) programs authorized under
section 403(a)(5) of the Social
Security Act (42 U.S.C. 603(a)(5)) (as
added by section 5001 of the Balanced
Budget Act of 1997);
[(vi) activities authorized under
title V of the Older Americans Act of
1965 (42 U.S.C. 3056 et seq.);]
[(vii)] (iv) career and technical
education activities at the
postsecondary level authorized under
the Carl D. Perkins Career and
Technical Education Act of 2006 (20
U.S.C. 2301 et seq.);
[(viii)] (v) activities authorized
under chapter 2 of title II of the
Trade Act of 1974 (19 U.S.C. 2271 et
seq.);
[(ix)] (vi) activities authorized
under chapter 41 of title 38, United
States Code;
[(x)] (vii) employment and training
activities carried out under the
Community Services Block Grant Act (42
U.S.C. 9901 et seq.);
[(xi)] (viii) employment and training
activities carried out by the
Department of Housing and Urban
Development; [and]
[(xii)] (ix) programs authorized
under State unemployment compensation
laws (in accordance with applicable
Federal law)[.]; and
(x) subject to subparagraph (C),
programs authorized under part A of
title IV of the Social Security Act (42
U.S.C. 601 et seq.).
(C) Determination by the governor.--Each
entity carrying out a program described in
subparagraph (B)(x) shall carry out the
required partner activities described in
subparagraph (A) unless the Governor of the
State in which the local area is located
provides the Secretary and Secretary of Health
and Human Services written notice of a
determination by the Governor that such
entities shall not carry out such required
partner activities.
(2) Additional partners.--
(A) In general.--In addition to the entities
described in paragraph (1), other entities that
carry out a human resource program described in
subparagraph (B) may--
(i) make available to participants,
through the one-stop delivery system,
the services described in [section
134(d)(2)] section 134(c)(2) that are
applicable to such program; and
* * * * * * *
(B) Programs.--The programs referred to in
subparagraph (A) may include--
[(i) programs authorized under part A
of title IV of the Social Security Act
(42 U.S.C. 601 et seq.);
[(ii) programs authorized under
section 6(d)(4) of the Food and
Nutrition Act of 2008 (7 U.S.C.
2015(d)(4));]
[(iii)] (i) work programs authorized
under section 6(o) of the Food and
Nutrition Act of 2008 (7 U.S.C.
2015(o));
[(iv)] (ii) programs authorized under
the National and Community Service Act
of 1990 (42 U.S.C. 12501 et seq.);
[and]
[(v) other appropriate Federal,
State, or local programs, including
programs in the private sector.]
(iii) employment and training
programs administered by the
Commissioner of the Social Security
Administration;
(iv) employment and training programs
carried out by the Administrator of the
Small Business Administration;
(v) employment, training, and
literacy services carried out by public
libraries; and
(vi) other appropriate Federal,
State, or local programs, including
programs in the private sector.
* * * * * * *
(c) Memorandum of Understanding.--
(1) * * *
(2) Contents.--Each memorandum of understanding shall
contain--
[(A) provisions describing--
[(i) the services to be provided
through the one-stop delivery system;
[(ii) how the costs of such services
and the operating costs of the system
will be funded;
[(iii) methods for referral of
individuals between the one-stop
operator and the one-stop partners, for
the appropriate services and
activities; and
[(iv) the duration of the memorandum
and the procedures for amending the
memorandum during the term of the
memorandum; and]
(A) provisions describing--
(i) the services to be provided
through the one-stop delivery system
consistent with the requirements of
this section, including the manner in
which the services will be coordinated
through such system;
(ii) how the costs of such services
and the operating costs of such system
will be funded, through cash and in-
kind contributions, to provide a stable
and equitable funding stream for
ongoing one-stop system operations,
including the funding of the
infrastructure costs of one-stop
centers in accordance with subsection
(h);
(iii) methods of referral of
individuals between the one-stop
operator and the one-stop partners for
appropriate services and activities,
including referrals for nontraditional
employment; and
(iv) the duration of the memorandum
of understanding and the procedures for
amending the memorandum during the term
of the memorandum, and assurances that
such memorandum shall be reviewed not
less than once every 3-year period to
ensure appropriate funding and delivery
of services; and
* * * * * * *
(d) One-Stop Operators.--
(1) [Designation and certification] Local designation
and certification.--Consistent with paragraphs (2) and
(3), the local board, with the agreement of the chief
elected official, is authorized to designate or certify
one-stop operators and to terminate for cause the
eligibility of such operators.
(2) Eligibility.--To be eligible to receive funds
made available under this subtitle to operate a one-
stop center referred to in [section 134(c)] subsection
(e), an entity (which may be a consortium of
entities)--
[(A) shall be designated or certified as a
one-stop operator--
[(i) through a competitive process;
or
[(ii) in accordance with an agreement
reached between the local board and a
consortium of entities that, at a
minimum, includes 3 or more of the one-
stop partners described in subsection
(b)(1); and]
(A) shall be designated or certified as a
one-stop operator through a competitive
process; and
(B) may be a public or private entity, or
consortium of entities, of demonstrated
effectiveness, located in the local area, which
may include--
(i) * * *
[(ii) an employment service agency
established under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.), on behalf of
the local office of the agency;]
[(iii)] (ii) a private, nonprofit
organization (including a community-
based organization);
[(iv)] (iii) a private for-profit
entity;
[(v)] (iv) a government agency; and
[(vi)] (v) another interested
organization or entity, which may
include a local chamber of commerce or
other business organization.
(3) Exception.--Elementary schools and secondary
schools shall not be eligible for designation or
certification as one-stop operators, except that
nontraditional public secondary schools and area
[vocational] career and technical education schools
shall be eligible for such designation or
certification.
[(e) Established One-Stop Delivery System.--If a one-stop
delivery system has been established in a local area prior to
the date of enactment of this Act, the local board, the chief
elected official, and the Governor involved may agree to
certify an entity carrying out activities through the system as
a one-stop operator for purposes of subsection (d), consistent
with the requirements of subsection (b), of the memorandum of
understanding, and of section 134(c).]
(e) Establishment of One-Stop Delivery System.--
(1) In general.--There shall be established in a
State that receives an allotment under section 132(b) a
one-stop delivery system, which shall--
(A) provide the work ready services described
in section 134(c)(2);
(B) provide access to training services as
described in section 134(c)(4), including
serving as the point of access to career
enhancement accounts for training services to
participants in accordance with paragraph
(4)(F) of such section;
(C) provide access to the activities carried
out under section 134(d), if any;
(D) provide access to programs and activities
carried out by one-stop partners that are
described in subsection (b) of this section;
and
(E) provide access to the information
described in section 15(e) of the Wagner-Peyser
Act (29 U.S.C. 49l-2(e)).
(2) One-stop delivery.--At a minimum, the one-stop
delivery system--
(A) shall make each of the programs,
services, and activities described in paragraph
(1) accessible at not less than one physical
center in each local area of the State; and
(B) may also make programs, services, and
activities described in paragraph (1)
available--
(i) through a network of affiliated
sites that can provide one or more of
the programs, services, and activities
to individuals; and
(ii) through a network of eligible
one-stop partners--
(I) in which each partner
provides one or more of the
programs, services, and
activities to such individuals
and is accessible at an
affiliated site that consists
of a physical location or an
electronically- or
technologically-linked access
point; and
(II) that assures individuals
that information on the
availability of the work ready
services will be available
regardless of where the
individuals initially enter the
statewide workforce investment
system, including information
made available through an
access point described in
subclause (I).
(3) Specialized centers.--The centers and sites
described in paragraph (2) may have a specialization in
addressing special needs.
* * * * * * *
(g) Certification of One-Stop Centers.--
(1) In general.--
(A) In general.--The State board shall
establish objective procedures and criteria for
certifying, at least once every 3 years, one-
stop centers for the purpose of awarding the
one-stop infrastructure funding described in
subsection (h).
(B) Criteria.--The criteria for certification
under this subsection shall include--
(i) meeting all of the expected
levels of performance for each of the
core indicators of performance as
outlined in the State plan under
section 112;
(ii) meeting minimum standards
relating to the scope and degree of
service integration achieved by the
centers involving the programs provided
by the one-stop partners; and
(iii) meeting minimum standards
relating to how the centers ensure that
eligible providers meet the employment
needs of local employers and
participants.
(C) Effect of certification.--One-stop
centers certified under this subsection shall
be eligible to receive the infrastructure
grants authorized under subsection (h).
(2) Local boards.--Consistent with the criteria
developed by the State, the local board may develop
additional criteria of higher standards to respond to
local labor market and demographic conditions and
trends.
(h) One-Stop Infrastructure Funding.--
(1) Partner contributions.--
(A) Provision of funds.--Notwithstanding any
other provision of law, as determined under
subparagraph (B), a portion of the Federal
funds provided to the State and areas within
the State under the Federal laws authorizing
the one-stop partner programs described in
subsection (b)(1)(B) and participating
additional partner programs described in
(b)(2)(B) for a fiscal year shall be provided
to the Governor by such programs to carry out
this subsection.
(B) Determination of governor.--
(i) In general.--Subject to
subparagraph (C), the Governor, in
consultation with the State board,
shall determine the portion of funds to
be provided under subparagraph (A) by
each one-stop partner and in making
such determination shall consider the
proportionate use of the one-stop
centers by each partner, the costs of
administration for purposes not related
to one-stop centers for each partner,
and other relevant factors described in
paragraph (3).
(ii) Special rule.--In those States
where the State constitution places
policy-making authority that is
independent of the authority of the
Governor in an entity or official with
respect to the funds provided for adult
education and literacy activities
authorized under title II of this Act
and for postsecondary career education
activities authorized under the Carl D.
Perkins Career and Technical Education
Act, the determination described in
clause (i) with respect to such
programs shall be made by the Governor
with the appropriate entity or official
with such independent policy-making
authority.
(iii) Appeal by one-stop partners.--
The Governor shall establish a
procedure for the one-stop partner
administering a program described in
subsection (b) to appeal a
determination regarding the portion of
funds to be contributed under this
paragraph on the basis that such
determination is inconsistent with the
criteria described in the State plan or
with the requirements of this
paragraph. Such procedure shall ensure
prompt resolution of the appeal.
(C) Limitations.--
(i) Provision from administrative
funds.--The funds provided under this
paragraph by each one-stop partner
shall be provided only from funds
available for the costs of
administration under the program
administered by such partner, and shall
be subject to the limitations with
respect to the portion of funds under
such programs that may be used for
administration.
(ii) Federal direct spending
programs.--Programs that are Federal
direct spending under section 250(c)(8)
of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C.
900(c)(8)) shall not, for purposes of
this paragraph, be required to provide
an amount in excess of the amount
determined to be equivalent to the
proportionate use of the one-stop
centers by such programs in the State.
(2) Allocation by governor.--From the funds provided
under paragraph (1), the Governor shall allocate funds
to local areas in accordance with the formula
established under paragraph (3) for the purposes of
assisting in paying the costs of the infrastructure of
one-stop centers certified under subsection (g).
(3) Allocation formula.--The State board shall
develop a formula to be used by the Governor to
allocate the funds described in paragraph (1). The
formula shall include such factors as the State board
determines are appropriate, which may include factors
such as the number of centers in the local area that
have been certified, the population served by such
centers, and the performance of such centers.
(4) Costs of infrastructure.--For purposes of this
subsection, the term ``costs of infrastructure'' means
the nonpersonnel costs that are necessary for the
general operation of a one-stop center, including the
rental costs of the facilities, the costs of utilities
and maintenance, and equipment (including assistive
technology for individuals with disabilities).
(i) Other Funds.--
(1) In general.--In addition to the funds provided to
carry out subsection (h), a portion of funds made
available under Federal law authorizing the one-stop
partner programs described in subsection (b)(1)(B) and
participating additional partner programs described in
subsection (b)(2)(B), or the noncash resources
available under such programs shall be used to pay the
costs relating to the operation of the one-stop
delivery system that are not paid for from the funds
provided under subsection (h), to the extent not
inconsistent with the Federal law involved including--
(A) infrastructure costs that are in excess
of the funds provided under subsection (h);
(B) common costs that are in addition to the
costs of infrastructure; and
(C) the costs of the provision of work ready
services applicable to each program.
(2) Determination and guidance.--The method for
determining the appropriate portion of funds and
noncash resources to be provided by each program under
paragraph (1) shall be determined as part of the
memorandum of understanding under subsection (c). The
State board shall provide guidance to facilitate the
determination of appropriate allocation of the funds
and noncash resources in local areas.
[SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
[(a) Eligibility Requirements.--
[(1) In general.--Except as provided in subsection
(h), to be identified as an eligible provider of
training services described in section 134(d)(4)
(referred to in this section as ``training services'')
in a local area and to be eligible to receive funds
made available under section 133(b) for the provision
of training services, a provider of such services shall
meet the requirements of this section.
[(2) Providers.--Subject to the provisions of this
section, to be eligible to receive the funds, the
provider shall be--
[(A) a postsecondary educational institution
that--
[(i) is eligible to receive Federal
funds under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070
et seq.); and
[(ii) provides a program that leads
to an associate degree, baccalaureate
degree, or certificate;
[(B) an entity that carries out programs
under the Act of August 16, 1937 (commonly
known as the ``National Apprenticeship Act'';
50 Stat. 664, chapter 663; 29 U.S.C. 50 et
seq.); or
[(C) another public or private provider of a
program of training services.
[(b) Initial Eligibility Determination.--
[(1) Postsecondary educational institutions and
entities carrying out apprenticeship programs.--To be
initially eligible to receive funds as described in
subsection (a) to carry out a program described in
subparagraph (A) or (B) of subsection (a)(2), a
provider described in subparagraph (A) or (B),
respectively, of subsection (a)(2) shall submit an
application, to the local board for the local area in
which the provider desires to provide training
services, at such time, in such manner, and containing
such information as the local board may require.
[(2) Other eligible providers.--
[(A) Procedure.--Each Governor of a State
shall establish a procedure for use by local
boards in the State in determining the initial
eligibility of a provider described in
subsection (a)(2)(C) to receive funds as
described in subsection (a) for a program of
training services, including the initial
eligibility of--
[(i) a postsecondary educational
institution to receive such funds for a
program not described in subsection
(a)(2)(A); and
[(ii) a provider described in
subsection (a)(2)(B) to receive such
funds for a program not described in
subsection (a)(2)(B).
[(B) Recommendations.--In developing such
procedure, the Governor shall solicit and take
into consideration the recommendations of local
boards and providers of training services
within the State.
[(C) Opportunity to submit comments.--The
Governor shall provide an opportunity, during
the development of the procedure, for
interested members of the public, including
representatives of business and labor
organizations, to submit comments on such
procedure.
[(D) Requirements.--In establishing the
procedure, the Governor shall require that, to
be initially eligible to receive funds as
described in subsection (a) for a program, a
provider described in subsection (a)(2)(C)--
[(i) shall submit an application, to
the local board for the local area in
which the provider desires to provide
training services, at such time and in
such manner as may be required, and
containing a description of the
program;
[(ii) if the provider provides
training services through a program on
the date of application, shall include
in the application an appropriate
portion of the performance information
and program cost information described
in subsection (d) for the program, as
specified in the procedure, and shall
meet appropriate levels of performance
for the program, as specified in the
procedure; and
[(iii) if the provider does not
provide training services on such date,
shall meet appropriate requirements, as
specified in the procedure.
[(c) Subsequent Eligibility Determination.--
[(1) Procedure.--Each Governor of a State shall
establish a procedure for use by local boards in the
State in determining the eligibility of a provider
described in subsection (a)(2) to continue to receive
funds as described in subsection (a) for a program
after an initial period of eligibility under subsection
(b) (referred to in this section as ``subsequent
eligibility'').
[(2) Recommendations.--In developing such procedure,
the Governor shall solicit and take into consideration
the recommendations of local boards and providers of
training services within the State.
[(3) Opportunity to submit comments.--The Governor
shall provide an opportunity, during the development of
the procedure, for interested members of the public,
including representatives of business and labor
organizations, to submit comments on such procedure.
[(4) Considerations.--In developing such procedure,
the Governor shall ensure that the procedure requires
the local boards to take into consideration, in making
the determinations of subsequent eligibility--
[(A) the specific economic, geographic, and
demographic factors in the local areas in which
providers seeking eligibility are located; and
[(B) the characteristics of the populations
served by providers seeking eligibility,
including the demonstrated difficulties in
serving such populations, where applicable.
[(5) Requirements.--In establishing the procedure,
the Governor shall require that, to be eligible to
continue to receive funds as described in subsection
(a) for a program after the initial period of
eligibility, a provider described in subsection (a)(2)
shall--
[(A) submit the performance information and
program cost information described in
subsection (d)(1) for the program and any
additional information required to be submitted
in accordance with subsection (d)(2) for the
program annually to the appropriate local board
at such time and in such manner as may be
required; and
[(B) annually meet the performance levels
described in paragraph (6) for the program, as
demonstrated utilizing quarterly records
described in section 136, in a manner
consistent with section 136.
[(6) Levels of performance.--
[(A) In general.--At a minimum, the procedure
described in paragraph (1) shall require the
provider to meet minimum acceptable levels of
performance based on the performance
information referred to in paragraph (5)(A).
[(B) Higher levels of performance
eligibility.--The local board may require
higher levels of performance than the levels
referred to in subparagraph (A) for subsequent
eligibility to receive funds as described in
subsection (a).
[(d) Performance and Cost Information.--
[(1) Required information.--For a provider of
training services to be determined to be subsequently
eligible under subsection (c) to receive funds as
described in subsection (a), such provider shall, under
subsection (c), submit--
[(A) verifiable program-specific performance
information consisting of--
[(i) program information, including--
[(I) the program completion
rates for all individuals
participating in the applicable
program conducted by the
provider;
[(II) the percentage of all
individuals participating in
the applicable program who
obtain unsubsidized employment,
which may also include
information specifying the
percentage of the individuals
who obtain unsubsidized
employment in an occupation
related to the program
conducted; and
[(III) the wages at placement
in employment of all
individuals participating in
the applicable program; and
[(ii) training services information
for all participants who received
assistance under section 134 to
participate in the applicable program,
including--
[(I) the percentage of
participants who have completed
the applicable program and who
are placed in unsubsidized
employment;
[(II) the retention rates in
unsubsidized employment of
participants who have completed
the applicable program, 6
months after the first day of
the employment;
[(III) the wages received by
participants who have completed
the applicable program, 6
months after the first day of
the employment involved; and
[(IV) where appropriate, the
rates of licensure or
certification, attainment of
academic degrees or
equivalents, or attainment of
other measures of skills, of
the graduates of the applicable
program; and
[(B) information on program costs (such as
tuition and fees) for participants in the
applicable program.
[(2) Additional information.--Subject to paragraph
(3), in addition to the performance information
described in paragraph (1)--
[(A) the Governor may require that a provider
submit, under subsection (c), such other
verifiable program-specific performance
information as the Governor determines to be
appropriate to obtain such subsequent
eligibility, which may include information
relating to--
[(i) retention rates in employment
and the subsequent wages of all
individuals who complete the applicable
program;
[(ii) where appropriate, the rates of
licensure or certification of all
individuals who complete the program;
and
[(iii) the percentage of individuals
who complete the program who attain
industry-recognized occupational skills
in the subject, occupation, or industry
for which training is provided through
the program, where applicable; and
[(B) the Governor, or the local board, may
require a provider to submit, under subsection
(c), other verifiable program-specific
performance information to obtain such
subsequent eligibility.
[(3) Conditions.--
[(A) In general.--If the Governor or a local
board requests additional information under
paragraph (2) that imposes extraordinary costs
on providers, or if providers experience
extraordinary costs in the collection of
information required under paragraph
(1)(A)(ii), the Governor or the local board
shall provide access to cost-effective methods
for the collection of the information involved,
or the Governor shall provide additional
resources to assist providers in the collection
of such information from funds made available
as described in sections 128(a) and 133(a)(1),
as appropriate.
[(B) Higher education eligibility
requirements.--The local board and the
designated State agency described in subsection
(i) may accept program-specific performance
information consistent with the requirements
for eligibility under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070 et seq.)
from a provider for purposes of enabling the
provider to fulfill the applicable requirements
of this subsection, if such information is
substantially similar to the information
otherwise required under this subsection.
[(e) Local Identification.--
[(1) In general.--The local board shall place on a
list providers submitting an application under
subsection (b)(1) and providers determined to be
initially eligible under subsection (b)(2), and retain
on the list providers determined to be subsequently
eligible under subsection (c), to receive funds as
described in subsection (a) for the provision of
training services in the local area served by the local
board. The list of providers shall be accompanied by
any performance information and program cost
information submitted under subsection (b) or (c) by
the provider.
[(2) Submission to state agency.--On placing or
retaining a provider on the list, the local board shall
submit, to the designated State agency described in
subsection (i), the list and the performance
information and program cost information referred to in
paragraph (1). If the agency determines, within 30 days
after the date of the submission, that the provider
does not meet the performance levels described in
subsection (c)(6) for the program (where applicable),
the agency may remove the provider from the list for
the program. The agency may not remove from the list an
agency submitting an application under subsection
(b)(1).
[(3) Identification of eligible providers.--A
provider who is placed or retained on the list under
paragraph (1), and is not removed by the designated
State agency under paragraph (2), for a program, shall
be considered to be identified as an eligible provider
of training services for the program.
[(4) Availability.--
[(A) State list.--The designated State agency
shall compile a single list of the providers
identified under paragraph (3) from all local
areas in the State and disseminate such list,
and the performance information and program
cost information described in paragraph (1), to
the one-stop delivery systems within the State.
Such list and information shall be made widely
available to participants in employment and
training activities authorized under section
134 and others through the one-stop delivery
system.
[(B) Selection from state list.--Individuals
eligible to receive training services under
section 134(d)(4) shall have the opportunity to
select any of the eligible providers, from any
of the local areas in the State, that are
included on the list described in subparagraph
(A) to provide the services, consistent with
the requirements of section 134.
[(5) Acceptance of individual training accounts by
other states.--States may enter into agreements, on a
reciprocal basis, to permit eligible providers of
training services in a State to accept individual
training accounts provided in another State.
[(f) Enforcement.--
[(1) Accuracy of information.--If the designated
State agency, after consultation with the local board
involved, determines that an eligible provider or
individual supplying information on behalf of the
provider intentionally supplies inaccurate information
under this section, the agency shall terminate the
eligibility of the provider to receive funds described
in subsection (a) for any program for a period of time,
but not less than 2 years.
[(2) Noncompliance.--If the designated State agency,
or the local board working with the State agency,
determines that an eligible provider described in
subsection (a) substantially violates any requirement
under this Act, the agency, or the local board working
with the State agency, may terminate the eligibility of
such provider to receive funds described in subsection
(a) for the program involved or take such other action
as the agency or local board determines to be
appropriate.
[(3) Repayment.--A provider whose eligibility is
terminated under paragraph (1) or (2) for a program
shall be liable for repayment of all funds described in
subsection (a) received for the program during any
period of noncompliance described in such paragraph.
[(4) Construction.--This subsection and subsection
(g) shall be construed to provide remedies and
penalties that supplement, but do not supplant, other
civil and criminal remedies and penalties.
[(g) Appeal.--The Governor shall establish procedures for
providers of training services to appeal a denial of
eligibility by the local board or the designated State agency
under subsection (b), (c), or (e), a termination of eligibility
or other action by the board or agency under subsection (f), or
a denial of eligibility by a one-stop operator under subsection
(h). Such procedures shall provide an opportunity for a hearing
and prescribe appropriate time limits to ensure prompt
resolution of the appeal.
[(h) On-the-Job Training or Customized Training Exception.--
[(1) In general.--Providers of on-the-job training or
customized training shall not be subject to the
requirements of subsections (a) through (e).
[(2) Collection and dissemination of information.--A
one-stop operator in a local area shall collect such
performance information from on-the-job training and
customized training providers as the Governor may
require, determine whether the providers meet such
performance criteria as the Governor may require, and
disseminate information identifying providers that meet
the criteria as eligible providers, and the performance
information, through the one-stop delivery system.
Providers determined to meet the criteria shall be
considered to be identified as eligible providers of
training services.
[(i) Administration.--The Governor shall designate a State
agency to make the determinations described in subsection
(e)(2), take the enforcement actions described in subsection
(f), and carry out other duties described in this section.
[SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
[From funds allocated under paragraph (2)(A) or (3) of
section 128(b) to a local area, the local board for such area
shall identify eligible providers of youth activities by
awarding grants or contracts on a competitive basis, based on
the recommendations of the youth council and on the criteria
contained in the State plan, to the providers to carry out the
activities, and shall conduct oversight with respect to the
providers, in the local area.]
SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
(a) Eligibility.--
(1) In general.--The Governor, after consultation
with the State board, shall establish criteria and
procedures regarding the eligibility of providers of
training services described in section 134(c)(4) to
receive funds provided under section 133(b) for the
provision of such training services.
(2) Providers.--Subject to the provisions of this
section, to be eligible to receive the funds provided
under section 133(b) for the provision of training
services, the provider shall be--
(A) a postsecondary educational institution
that--
(i) is eligible to receive Federal
funds under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070
et seq.); and
(ii) provides a program that leads to
a recognized postsecondary credential;
(B) an entity that carries out programs under
the Act of August 16, 1937 (commonly known as
the ``National Apprenticeship Act''; 50 Stat.
664, chapter 663; 29 U.S.C. 50 et seq.); or
(C) another public or private provider of a
program of training services.
(3) Inclusion in list of eligible providers.--A
provider described in subparagraph (A) or (C) of
paragraph (2) shall comply with the criteria and
procedures established under this section to be
included on the list of eligible providers of training
services described in subsection (d). A provider
described in paragraph (2)(B) shall be included on the
list of eligible providers of training services
described in subsection (d) for so long as the provider
remains certified by the Secretary of Labor to carry
out the programs described in paragraph (2)(B).
(b) Criteria.--
(1) In general.--The criteria established pursuant to
subsection (a) shall take into account--
(A) the performance of providers of training
services with respect to the performance
measures described in section 136 and other
matters for which information is required under
paragraph (2) and other appropriate measures of
performance outcomes for those participants
receiving training services under this
subtitle;
(B) whether the training programs of such
providers relate to occupations that are in
demand;
(C) the need to ensure access to training
services throughout the State, including in
rural areas;
(D) the ability of providers to offer
programs that lead to a recognized
postsecondary credential;
(E) the information such providers are
required to report to State agencies with
respect to other Federal and State programs
(other than the program carried out under this
subtitle), including one-stop partner programs;
and
(F) such other factors as the Governor
determines are appropriate.
(2) Information.--The criteria established by the
Governor shall require that a provider of training
services submit appropriate, accurate, and timely
information to the State for purposes of carrying out
subsection (d), with respect to participants receiving
training services under this subtitle in the applicable
program, including--
(A) information on recognized postsecondary
credentials received by such participants;
(B) information on costs of attendance for
such participants;
(C) information on the program completion
rate for such participants; and
(D) information on the performance of the
provider with respect to the performance
measures described in section 136 for such
participants.
(3) Renewal.--The criteria established by the
Governor shall also provide for a review every 3 years
and renewal of eligibility under this section for
providers of training services.
(4) Local criteria.--A local board in the State may
establish criteria in addition to the criteria
established by the Governor, or may require higher
levels of performance than required under the criteria
established by the Governor, for purposes of
determining the eligibility of providers of training
services to receive funds described in subsection (a)
to provide the services in the local area involved.
(5) Limitation.--In carrying out the requirements of
this subsection, no personally identifiable information
regarding a student, including Social Security number,
student identification number, or other identifier, may
be disclosed without the prior written consent of the
parent or eligible student in compliance with section
444 of the General Education Provisions Act (20 U.S.C.
1232g).
(c) Procedures.--The procedures established under subsection
(a) shall--
(1) identify--
(A) the application process for a provider of
training services to become eligible to receive
funds under section 133(b) for the provision of
training services; and
(B) the respective roles of the State and
local areas in receiving and reviewing
applications and in making determinations of
eligibility based on the criteria established
under this section; and
(2) establish a process for a provider of training
services to appeal a denial or termination of
eligibility under this section that includes an
opportunity for a hearing and prescribes appropriate
time limits to ensure prompt resolution of the appeal.
(d) Information To Assist Participants in Choosing
Providers.--In order to facilitate and assist participants
under chapter 5 in choosing providers of training services, the
Governor shall ensure that an appropriate list or lists of
providers determined eligible under this section in the State,
including information provided under subsection (b)(2) with
respect to such providers, is provided to the local boards in
the State and is made available to such participants and to
members of the public through the one-stop delivery system in
the State.
(e) Enforcement.--
(1) In general.--The criteria and procedures
established under this section shall provide the
following:
(A) Intentionally supplying inaccurate
information.--Upon a determination, by an
individual or entity specified in the criteria
or procedures, that a provider of training
services, or individual providing information
on behalf of the provider, intentionally
supplied inaccurate information under this
section, the eligibility of such provider to
receive funds under chapter 5 shall be
terminated for a period of time that is not
less than 2 years.
(B) Substantial violations.--Upon a
determination, by an individual or entity
specified in the criteria or procedures, that a
provider of training services substantially
violated any requirement under this title, the
eligibility of such provider to receive funds
under the program involved shall be terminated
for a period of time that is not less than 10
years.
(C) Repayment.--A provider of training
services whose eligibility is terminated under
subparagraph (A) or (B) shall be liable for the
repayment of funds received under chapter 5
during a period of noncompliance described in
such subparagraph.
(2) Construction.--Paragraph (1) shall be construed
to provide remedies and penalties that supplement, but
do not supplant, other civil and criminal remedies and
penalties.
(f) Agreements with other States.--States may enter into
agreements, on a reciprocal basis, to permit eligible providers
of training services to accept career enhancement accounts
provided in another State.
(g) Recommendations.--In developing the criteria, procedures,
and information required under this section, the Governor shall
solicit and take into consideration the recommendations of
local boards and providers of training services within the
State.
(h) Opportunity To Submit Comments.--During the development
of the criteria, procedures, requirements for information, and
the list of eligible providers required under this section, the
Governor shall provide an opportunity for interested members of
the public to submit comments regarding such criteria,
procedures, and information.
(i) On-the-Job Training or Customized Training Exception.--
(1) In general.--Providers of on-the-job training or
customized training shall not be subject to the
requirements of subsections (a) through (d).
(2) Collection and dissemination of information.--A
one-stop operator in a local area shall collect such
performance information from on-the-job training and
customized training providers as the Governor may
require, determine whether the providers meet such
performance criteria as the Governor may require, and
disseminate information identifying providers that meet
the criteria as eligible providers, and the performance
information, through the one-stop delivery system.
Providers determined to meet the criteria shall be
considered to be identified as eligible providers of
training services.
* * * * * * *
CHAPTER 5--[ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING
ACTIVITIES] EMPLOYMENT AND TRAINING ACTIVITIES
SEC. 131. GENERAL AUTHORIZATION.
The Secretary shall make allotments under [paragraphs (1)(B)
and (2)(B) of] section 132(b) to each State that meets the
requirements of section 112 and a grant to each outlying area
that complies with the requirements of this title, to assist
the State or outlying area, and to enable the State or outlying
area to assist local areas, for the purpose of providing
workforce investment activities for [adults, and dislocated
workers,] individuals in the State or outlying area and in the
local areas.
SEC. 132. STATE ALLOTMENTS.
[(a) In General.--The Secretary shall--
[(1) make allotments and grants from the total amount
appropriated under section 137(b) for a fiscal year in
accordance with subsection (b)(1); and
[(2)(A) reserve 20 percent of the amount appropriated
under section 137(c) for a fiscal year for use under
subsection (b)(2)(A), and under sections 170(b)
(relating to dislocated worker technical assistance),
171(d) (relating to dislocated worker projects), and
173 (relating to national emergency grants, other than
under subsection (a)(4), (f), and (g)); and
[(B) make allotments from 80 percent of the amount
appropriated under section 137(c) for a fiscal year in
accordance with subsection (b)(2)(B).
[(b) Allotment Among States.--
[(1) Adult employment and training activities.--
[(A) Reservation for outlying areas.--
[(i) In general.--From the amount
made available under subsection (a)(1)
for a fiscal year, the Secretary shall
reserve not more than \1/4\ of 1
percent to provide assistance to the
outlying areas.
[(ii) Applicability of additional
requirements.--From the amount reserved
under clause (i), the Secretary shall
provide assistance to the outlying
areas for adult employment and training
activities and statewide workforce
investment activities in accordance
with the requirements of section
127(b)(1)(B), except that the reference
in section 127(b)(1)(B)(i)(II) to
sections 252(d) and 262(a)(1) of the
Job Training Partnership Act shall be
deemed to be a reference to section
202(a)(1) of the Job Training
Partnership Act (as in effect on the
day before the date of enactment of
this Act).
[(B) States.--
[(i) In general.--After determining
the amount to be reserved under
subparagraph (A), the Secretary shall
allot the remainder of the amount
referred to in subsection (a)(1) for a
fiscal year to the States pursuant to
clause (ii) for adult employment and
training activities and statewide
workforce investment activities.
[(ii) Formula.--Subject to clauses
(iii) and (iv), of the remainder--
[(I) 33\1/3\ percent shall be
allotted on the basis of the
relative number of unemployed
individuals in areas of
substantial unemployment in
each State, compared to the
total number of unemployed
individuals in areas of
substantial unemployment in all
States;
[(II) 33\1/3\ percent shall
be allotted on the basis of the
relative excess number of
unemployed individuals in each
State, compared to the total
excess number of unemployed
individuals in all States; and
[(III) 33\1/3\ percent shall
be allotted on the basis of the
relative number of
disadvantaged adults in each
State, compared to the total
number of disadvantaged adults
in all States, except as
described in clause (iii).
[(iii) Calculation.--In determining
an allotment under clause (ii)(III) for
any State in which there is a local
area designated under section
116(a)(2)(B), the allotment shall be
based on the higher of--
[(I) the number of adults in
families with an income below
the low-income level in such
area; or
[(II) the number of
disadvantaged adults in such
area.
[(iv) Minimum and maximum percentages
and minimum allotments.--In making
allotments under this subparagraph, the
Secretary shall ensure the following:
[(I) Minimum percentage and
allotment.--Subject to
subclause (IV), the Secretary
shall ensure that no State
shall receive an allotment for
a fiscal year that is less than
the greater of--
[(aa) an amount based
on 90 percent of the
allotment percentage of
the State for the
preceding fiscal year;
or
[(bb) 100 percent of
the allotment of the
State under section 202
of the Job Training
Partnership Act (as in
effect on the day
before the date of
enactment of this Act)
for fiscal year 1998.
[(II) Small state minimum
allotment.--Subject to
subclauses (I), (III), and
(IV), the Secretary shall
ensure that no State shall
receive an allotment under this
subparagraph that is less than
the total of--
[(aa) \3/10\ of 1
percent of $960,000,000
of the remainder
described in clause (i)
for the fiscal year;
and
[(bb) if the
remainder described in
clause (i) for the
fiscal year exceeds
$960,000,000, \2/5\ of
1 percent of the
excess.
[(III) Maximum percentage.--
Subject to subclause (I), the
Secretary shall ensure that no
State shall receive an
allotment percentage for a
fiscal year that is more than
130 percent of the allotment
percentage of the State for the
preceding fiscal year.
[(IV) Minimum funding.--In
any fiscal year in which the
remainder described in clause
(i) does not exceed
$960,000,000, the minimum
allotments under subclauses (I)
and (II) shall be calculated by
the methodology for calculating
the corresponding allotments
under part A of title II of the
Job Training Partnership Act,
as in effect on July 1, 1998.
[(v) Definitions.--For the purpose of
the formula specified in this
subparagraph:
[(I) Adult.--The term
``adult'' means an individual
who is not less than age 22 and
not more than age 72.
[(II) Allotment percentage.--
The term ``allotment
percentage'', used with respect
to fiscal year 2000 or a
subsequent fiscal year, means a
percentage of the remainder
described in clause (i) that is
received through an allotment
made under this subparagraph
for the fiscal year. The term,
used with respect to fiscal
year 1998 or 1999, means the
percentage of the amounts
allotted to States under
section 202(a) of the Job
Training Partnership Act (as in
effect on the day before the
date of enactment of this Act)
that is received under such
section by the State involved
for fiscal year 1998 or 1999.
[(III) Area of substantial
unemployment.--The term ``area
of substantial unemployment''
means any area that is of
sufficient size and scope to
sustain a program of workforce
investment activities carried
out under this subtitle and
that has an average rate of
unemployment of at least 6.5
percent for the most recent 12
months, as determined by the
Secretary. For purposes of this
subclause, determinations of
areas of substantial
unemployment shall be made once
each fiscal year.
[(IV) Disadvantaged adult.--
Subject to subclause (V), the
term ``disadvantaged adult''
means an adult who received an
income, or is a member of a
family that received a total
family income, that, in
relation to family size, does
not exceed the higher of--
[(aa) the poverty
line; or
[(bb) 70 percent of
the lower living
standard income level.
[(V) Disadvantaged adult
special rule.--The Secretary
shall, as appropriate and to
the extent practicable, exclude
college students and members of
the Armed Forces from the
determination of the number of
disadvantaged adults.
[(VI) Excess number.--The
term ``excess number'' means,
used with respect to the excess
number of unemployed
individuals within a State, the
higher of--
[(aa) the number that
represents the number
of unemployed
individuals in excess
of 4.5 percent of the
civilian labor force in
the State; or
[(bb) the number that
represents the number
of unemployed
individuals in excess
of 4.5 percent of the
civilian labor force in
areas of substantial
unemployment in such
State.
[(2) Dislocated worker employment and training.--
[(A) Reservation for outlying areas.--
[(i) In general.--From the amount
made available under subsection
(a)(2)(A) for a fiscal year, the
Secretary shall reserve not more than
\1/4\ of 1 percent of the amount
appropriated under section 137(c) for
the fiscal year to provide assistance
to the outlying areas.
[(ii) Applicability of additional
requirements.--From the amount reserved
under clause (i), the Secretary shall
provide assistance to the outlying
areas for dislocated worker employment
and training activities and statewide
workforce investment activities in
accordance with the requirements of
section 127(b)(1)(B), except that the
reference in section
127(b)(1)(B)(i)(II) to sections 252(a)
and 262(a)(1) of the Job Training
Partnership Act shall be deemed to be a
reference to section 302(e) of the Job
Training Partnership Act (as in effect
on the day before the date of enactment
of this Act).
[(B) States.--
[(i) In general.--The Secretary shall
allot the amount referred to in
subsection (a)(2)(B) for a fiscal year
to the States pursuant to clause (ii)
for dislocated worker employment and
training activities and statewide
workforce investment activities.
[(ii) Formula.--Of the amount--
[(I) 33\1/3\ percent shall be
allotted on the basis of the
relative number of unemployed
individuals in each State,
compared to the total number of
unemployed individuals in all
States;
[(II) 33\1/3\ percent shall
be allotted on the basis of the
relative excess number of
unemployed individuals in each
State, compared to the total
excess number of unemployed
individuals in all States; and
[(III) 33\1/3\ percent shall
be allotted on the basis of the
relative number of individuals
in each State who have been
unemployed for 15 weeks or
more, compared to the total
number of individuals in all
States who have been unemployed
for 15 weeks or more.
[(iii) Definition.--In this
subparagraph, the term ``excess
number'' means, used with respect to
the excess number of unemployed
individuals within a State, the number
that represents the number of
unemployed individuals in excess of 4.5
percent of the civilian labor force in
the State.
[(3) Definitions.--For the purpose of the formulas
specified in this subsection:
[(A) Freely associated states.--The term
``Freely Associated States'' means the Republic
of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau.
[(B) Low-income level.--The term ``low-income
level'' means $7,000 with respect to income in
1969, and for any later year means that amount
that bears the same relationship to $7,000 as
the Consumer Price Index for that year bears to
the Consumer Price Index for 1969, rounded to
the nearest $1,000.]
(a) In General.--The Secretary shall--
(1) reserve 1/2 of 1 percent of the total amount
appropriated under section 137 for a fiscal year, of
which--
(A) 50 percent shall be used to provide
technical assistance under section 170; and
(B) 50 percent shall be used for evaluations
under section 172;
(2) reserve not more than 1 percent of the total
amount appropriated under section 137 for a fiscal year
to make grants to, and 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 employment and
training activities;
(3) reserve not more than 25 percent of the total
amount appropriated under section 137 for a fiscal year
to carry out the Jobs Corps program under subtitle C;
(4) reserve not more than 3.5 percent of the total
amount appropriated under section 137 for a fiscal year
to--
(A) make grants to State or local boards 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
(B) provide assistance to Governors of States
with an area that has suffered an emergency or
a major disaster (as such terms are 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)) to provide disaster relief employment in
the area.
(5) from the remaining amount appropriated under
section 137 for a fiscal year (after reserving funds
under paragraphs (1) through (4)), make allotments in
accordance with subsection (b) of this section.
(b) Workforce Investment Fund.--
(1) Reservation for outlying areas.--
(A) In general.--From the amount made
available under subsection (a)(5) for a fiscal
year, the Secretary shall reserve not more than
\1/4\ of 1 percent to provide assistance to the
outlying areas.
(B) Restriction.--The Republic of Palau shall
cease to be eligible to receive funding under
this subparagraph upon entering into an
agreement for extension of United States
educational assistance under the Compact of
Free Association (approved by the Compact of
Free Association Amendments Act of 2003 (Public
Law 99-658)) after the date of enactment of the
SKILLS Act.
(2) States.--
(A) In general.--After determining the amount
to be reserved under paragraph (1), the
Secretary shall allot the remainder of the
amount referred to in subsection (a)(5) for a
fiscal year to the States pursuant to
subparagraph (B) for employment and training
activities and statewide workforce investment
activities.
(B) Formula.--Subject to subparagraphs (C)
and (D), of the remainder--
(i) 25 percent shall be allotted on
the basis of the relative number of
unemployed individuals in areas of
substantial unemployment in each State,
compared to the total number of
unemployed individuals in areas of
substantial unemployment in all States;
(ii) 25 percent shall be allotted on
the basis of the relative number of
individuals in the civilian labor force
in each State, compared to the total
number of such individuals in all
States;
(iii) 25 percent shall be allotted on
the basis of the relative number of
individuals in each State who have been
unemployed for 15 weeks or more,
compared to the total number of
individuals in all States who have been
unemployed for 15 weeks or more; and
(iv) 25 percent shall be allotted on
the basis of the relative number of
disadvantaged youth in each State,
compared to the total number of
disadvantaged youth in all States.
(C) Minimum and maximum percentages.--
(i) Minimum percentage.--The
Secretary shall ensure that no State
shall receive an allotment under this
paragraph for--
(I) each of fiscal years 2014
through 2016, that is less than
100 percent of the allotment
percentage of the State for
fiscal year 2012; and
(II) fiscal year 2017 and
each succeeding fiscal year,
that is less than 90 percent of
the allotment percentage of the
State for the preceding fiscal
year.
(ii) Maximum percentage.--Subject to
clause (i), the Secretary shall ensure
that no State shall receive an
allotment under this paragraph for--
(I) each of fiscal years 2014
through 2016, that is more than
130 percent of the allotment
percentage of the State for
fiscal year 2012; and
(II) fiscal year 2017 and
each succeeding fiscal year,
that is more than 130 percent
of the allotment percentage of
the State for the preceding
fiscal year.
(D) Small state minimum allotment.--Subject
to subparagraph (C), the Secretary shall ensure
that no State shall receive an allotment under
this paragraph for a fiscal year that is less
than \1/5\ of 1 percent of the remainder
described in subparagraph (A) for the fiscal
year.
(E) Definitions.--For the purpose of the
formula specified in this paragraph:
(i) Allotment percentage.--The term
``allotment percentage''--
(I) used with respect to
fiscal year 2012, means the
percentage of the amounts
allotted to States under title
I of this Act, title V of the
Older Americans Act of 1965 (42
U.S.C. 3056 et seq.), the Women
in Apprenticeship and
Nontraditional Occupations Act
(29 U.S.C. 2501 et seq.),
sections 4103A and 4104 of
title 38, United States Code,
and sections 1 through 14 of
the Wagner-Peyser Act (29
U.S.C. 49 et seq.), as such
provisions were in effect for
fiscal year 2012, that is
received under such provisions
by the State involved for
fiscal year 2012; and
(II) used with respect to
fiscal year 2016 or a
succeeding fiscal year, means
the percentage of the amounts
allotted to States under this
paragraph for the fiscal year
that is received under this
paragraph by the State involved
for the fiscal year.
(ii) Disadvantaged youth.--The term
``disadvantaged youth'' means an
individual who is not less than age 16
and not more than age 24 who receives
an income, or is a member of a family
that received a total family income,
that in relation to family size, does
not exceed the higher of--
(I) the poverty line; or
(II) 70 percent of the lower
living standard income level.
(iii) Individual.--The term
``individual'' means an individual who
is age 16 or older.
* * * * * * *
SEC. 133. WITHIN STATE ALLOCATIONS.
[(a) Reservations for State Activities.--
[(1) Statewide workforce investment activities.--The
Governor of a State shall make the reservation required
under section 128(a).
[(2) Statewide rapid response activities.--The
Governor of the State shall reserve not more than 25
percent of the total amount allotted to the State under
section 132(b)(2)(B) for a fiscal year for statewide
rapid response activities described in section
134(a)(2)(A).
[(b) Within State Allocation.--
[(1) Methods.--The Governor, acting in accordance
with the State plan, and after consulting with chief
elected officials in the local areas, shall allocate--
[(A) the funds that are allotted to the State
for adult employment and training activities
and statewide workforce investment activities
under section 132(b)(1)(B) and are not reserved
under subsection (a)(1), in accordance with
paragraph (2) or (3); and
[(B) the funds that are allotted to the State
for dislocated worker employment and training
activities under section 132(b)(2)(B) and are
not reserved under paragraph (1) or (2) of
subsection (a), in accordance with paragraph
(2).
[(2) Formula allocations.--
[(A) Adult employment and training
activities.--
[(i) Allocation.--In allocating the
funds described in paragraph (1)(A) to
local areas, a State may
allocate--
[(I) 33\1/3\ percent of the
funds on the basis described in
section 132(b)(1)(B)(ii)(I);
[(II) 33\1/3\ percent of the
funds on the basis described in
section 132(b)(1)(B)(ii)(II);
and
[(III) 33\1/3\ percent of the
funds on the basis described in
clauses (ii)(III) and (iii) of
section 132(b)(1)(B).
[(ii) Minimum percentage.--Effective
at the end of the second full fiscal
year after the date on which a local
area is designated under section 116,
the local area shall not receive an
allocation percentage for a fiscal year
that is less than 90 percent of the
average allocation percentage of the
local area for the 2 preceding fiscal
years. Amounts necessary for increasing
such allocations to local areas to
comply with the preceding sentence
shall be obtained by ratably reducing
the allocations to be made to other
local areas under this subparagraph.
[(iii) Definition.--The term
``allocation percentage'', used with
respect to fiscal year 2000 or a
subsequent fiscal year, means a
percentage of the funds referred to in
clause (i), received through an
allocation made under this
subparagraph, for the fiscal year.
[(B) Dislocated worker employment and
training activities.--
[(i) Formula.--In allocating the
funds described in paragraph (1)(B) to
local areas, a State shall allocate the
funds based on an allocation formula
prescribed by the Governor of the
State. Such formula may be amended by
the Governor not more than once for
each program year. Such formula shall
utilize the most appropriate
information available to the Governor
to distribute amounts to address the
State's worker readjustment assistance
needs.
[(ii) Information.--The information
described in clause (i) shall include
insured unemployment data, unemployment
concentrations, plant closing and mass
layoff data, declining industries data,
farmer-rancher economic hardship data,
and long-term unemployment data.
[(C) Application.--For purposes of carrying
out subparagraph (A)--
[(i) references in section 132(b) to
a State shall be deemed to be
references to a local area;
[(ii) references in section 132(b) to
all States shall be deemed to be
references to all local areas in the
State involved; and
[(iii) except as described in clause
(i), references in section 132(b)(1) to
the term ``excess number'' shall be
considered to be references to the term
as defined in section 132(b)(1).
[(3) Adult employment and training discretionary
allocations.--In lieu of making the allocation
described in paragraph (2)(A), in allocating the funds
described in paragraph (1)(A) to local areas, a State
may distribute--
[(A) a portion equal to not less than 70
percent of the funds in accordance with
paragraph (2)(A); and
[(B) the remaining portion of the funds on
the basis of a formula that--
[(i) incorporates additional factors
(other than the factors described in
paragraph (2)(A)) relating to--
[(I) excess poverty in urban,
rural, and suburban local
areas; and
[(II) excess unemployment
above the State average in
urban, rural, and suburban
local areas; and
[(ii) was developed by the State
board and approved by the Secretary as
part of the State plan.
[(4) Transfer authority.--A local board may transfer,
if such a transfer is approved by the Governor, not
more than 20 percent of the funds allocated to the
local area under paragraph (2)(A) or (3), and 20
percent of the funds allocated to the local area under
paragraph (2)(B), for a fiscal year between--
[(A) adult employment and training
activities; and
[(B) dislocated worker employment and
training activities.
[(5) Allocation.--
[(A) In general.--The Governor of the State
shall allocate the funds described in paragraph
(1) to local areas under paragraphs (2) and (3)
for the purpose of providing a single system of
employment and training activities for adults
and dislocated workers in accordance with
subsections (d) and (e) of section 134.
[(B) Additional requirements.--
[(i) Adults.--Funds allocated under
paragraph (2)(A) or (3) shall be used
by a local area to contribute
proportionately to the costs of the
one-stop delivery system described in
section 134(c) in the local area, and
to pay for employment and training
activities provided to adults in the
local area, consistent with section
134.
[(ii) Dislocated workers.--Funds
allocated under paragraph (2)(B) shall
be used by a local area to contribute
proportionately to the costs of the
one-stop delivery system described in
section 134(c) in the local area, and
to pay for employment and training
activities provided to dislocated
workers in the local area, consistent
with section 134.]
(a) Reservations for Statewide Workforce Investment
Activities.--
(1) Statewide employment and training activities.--
The Governor of a State shall reserve up to 15 percent
of the total amount allotted to the State under section
132(b)(2) for a fiscal year to carry out the statewide
activities described in section 134(a).
(2) Statewide rapid response activities.--Of the
amount reserved under paragraph (1) for a fiscal year,
the Governor of the State shall reserve not more than
25 percent for statewide rapid response activities
described in section 134(a)(4).
(3) Statewide grants for individuals with barriers to
employment.--Of the amount reserved under paragraph (1)
for a fiscal year, the Governor of a State shall
reserve 15 percent to carry out statewide activities
described in section 134(a)(5).
(4) State administrative cost limit.--Not more than 5
percent of the funds reserved under paragraph (1) may
be used by the Governor of a State for administrative
costs of carrying out the statewide activities
described in section 134(a).
(b) Within State Allocation.--
(1) Methods.--The Governor, acting in accordance with
the State plan, and after consulting with chief elected
officials in the local areas, shall--
(A) allocate the funds that are allotted to
the State for employment and training
activities and not reserved under subsection
(a), in accordance with paragraph (2)(A); and
(B) award the funds that are reserved by the
State under subsection (a)(3) through
competitive grants to eligible entities, in
accordance with section 134(a)(1)(C).
(2) Formula allocations for the workforce investment
fund.--
(A) Allocation.--In allocating the funds
described in paragraph (1)(A) to local areas, a
State shall allocate--
(i) 25 percent on the basis described
in section 132(b)(2)(B)(i);
(ii) 25 percent on the basis
described in section 132(b)(2)(B)(ii);
(iii) 25 percent on the basis
described in section 132(b)(2)(B)(iii);
and
(iv) 25 percent on the basis
described in section 132(b)(2)(B)(iv).
(B) Minimum and maximum percentages.--
(i) Minimum percentage.--The State
shall ensure that no local area shall
receive an allocation under this
paragraph for--
(I) each of fiscal years 2014
through 2016, that is less than
100 percent of the allocation
percentage of the local area
for fiscal year 2012; and
(II) fiscal year 2017 and
each succeeding fiscal year,
that is less than 90 percent of
the allocation percentage of
the local area for the
preceding fiscal year.
(ii) Maximum percentage.--Subject to
clause (i), the State shall ensure that
no local area shall receive an
allocation for a fiscal year under this
paragraph for--
(I) each of fiscal years 2014
through 2016, that is more than
130 percent of the allocation
percentage of the local area
for fiscal year 2012; and
(II) fiscal year 2017 and
