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                                                       Calendar No. 153
104th Congress                                                   Report
                                 SENATE

 1st Session                                                    104-118
_______________________________________________________________________


 
                   WORKFORCE DEVELOPMENT ACT OF 1995

                                _______


    July 24 (legislative day, July 10), 1995.--Ordered to be printed

_______________________________________________________________________


   Mrs. Kassebaum, from the Committee on Labor and Human Resources, 
                        submitted the following

                              R E P O R T

                             together with

                     ADDITIONAL AND MINORITY VIEWS

                         [To accompany S. 143]
    The Committee on Labor and Human Resources, to which was 
referred the bill (S. 143) to consolidate Federal employment 
training programs and create a new process and structure for 
funding the programs, and for other purposes, having considered 
the same, reports favorably thereon with an amendment in the 
nature of a substitute and recommends that the bill as amended 
do pass.
                                CONTENTS

                                                                   Page
  I. Summary of the bill..............................................2
 II. Background and need for the legislation..........................4
III. History of the legislation and votes in committee................5
 IV. Committee views.................................................13
  V. Cost estimate...................................................38
 VI. Regulatory impact statement.....................................53
VII. Section-by-section analysis.....................................54
VIII.
     Additional views................................................70
 IX. Minority views..................................................76
  X. Changes in existing law.........................................96
                         I. Summary of the Bill

                                TITLE I

    State Systems--Statewide work force development systems are 
established through a single allotment of funds to each State. 
A minimum of 25 percent of the funds are for work force 
employment activities, such as creating one-stop career centers 
or providing job training. Work force employment activities are 
to be planned and administered under the authority of the 
Governor. A minimum of 25 percent of the funds are for work 
force education activities, including vocational and adult 
education. Work force education activities are to be planned 
and administered under the authority of the State Educational 
Agency.
    The remaining 50 percent of the funds are to be used for 
any work force employment or education activities as a State 
decides. The only requirement is that a portion of the funds be 
used to support school-to-work activities, broadly defined. The 
decision to allocate funds from this ``flex account'' is made 
through a collaborative process involving, among others, the 
Governor, the State educational agency, and the private sector.
    State Plans--Through this collaboration, the stakeholders 
develop an overall strategic plan for the State and designate 
which employment or education activities the State will 
emphasize through the flex account. State goals and benchmarks 
are established in the plan, as well as how the State will use 
its funds to meet those goals and benchmarks.
    In addition, the plan includes how the State will establish 
systems for one-stop career centers, labor market information, 
and accountability for job placement, as described in the bill. 
The plan also describes how the adult and vocational education 
needs of the State will be met, including the allocation of 
funds between adult and vocational education and within 
vocational education between secondary and postsecondary 
vocational education programs.
    State and Local Efforts--Provisions is made for 
distribution of work force employment and education funds at 
the local level. The Governor must enter into agreements with 
local communities for the delivery of work force employment, 
school-to-work, or economic development activities, where 
appropriate. If that is not possible, Governors must provide 
local communities the opportunity to comment on the manner in 
which funds will be spent at the local level. States are not 
required, to establish State and local work force development 
boards, but if such boards are established, the State may use 
flex account funds for economic development activities aimed at 
improving the skills of the State's current workers.
    Accountability--Each State must, at a minimum, establish 
specific benchmarks designed to meet the goals of providing 
meaningful employment and improving academic, occupational, the 
literacy skills. Incentives may be given or sanctions may be 
imposed, depending upon the progress of the State toward 
meeting such goals and benchmarks.

                                TITLE II

    Transition--States may obtain waivers during the 2-year 
transition period in order to begin the integration of existing 
programs. Each State must submit an interim plan during the 
first year of transition, and States that are capable of 
establishing statewide systems after the first year may do so.
    Job Corps and At-Risk Youth--Job Corps remains as a 
residential program for at-risk youth, but is integrated with 
the statewide work force development system. Primary 
responsibility for the operation of Job Corps centers is 
transferred to the States, and each center must be linked into 
the one-stop career center system and other local training and 
education efforts.
    During the 2-year transition period, a national audit of 
the Job Corps program will be performed. Based on the results 
of the audit and other criteria, the Secretary of Labor must 
close 25 underperforming Job Corps centers.
    Funds saved as a result of these closures, as well as 
additional funding, will be allocated to the State for work 
force development activities directed specifically for at-risk 
youth.

                               TITLE III

    Federal Partnership--A Federal partnership is established 
to administer all Federal responsibilities, including approval 
of the State plans, negotiation of benchmarks with each State, 
and dissemination of best practices.
    A governing board, composed of 13 members, will manage the 
partnership. The board is composed of a majority of 
representatives from business and industry, and representatives 
of labor, education and Governors. Upon the establishment of 
the board, the Office of Vocational and Adult Education at the 
Department of Education and the Employment and Training 
Administration at the Department of Labor will be eliminated.
    Final authority for the approval of State plans and 
disbursement of funds, however, remains with the Secretary of 
Education and the Secretary of Labor.
    National Activities--Other national activities include 
national assessments of vocational education, a national labor 
market information system, and establishment of a national 
center for research in education and work force development.

                                TITLE IV

    Vocational Rehabilitation--Title I of the Rehabilitation 
Act of 1973 is amended to link vocational rehabilitation 
services with the statewide work force development system 
including, to the extent feasible, the State goals and 
benchmarks.
                                TITLE V

    Amendments to Immigration and Nationality Act--The 
Immigration and Nationality Act is amended to prohibit funds 
authorized under that act to be used for work force employment 
activities. Consequently, the employment needs of refugees will 
be addressed in the statewide comprehensive work force 
development system.

                                TITLE VI

    Repeals--All major Federal job training programs are 
repealed on July 1, 1998, the date by which each State must 
implement its statwide work force development system.

              II. Background and Need for the Legislation

    Since the late 1960's, the Federal Government has invested 
considerable resources in helping people find employment 
through participation in numerous employment and training 
programs. What began as a few limited programs, has exploded 
today into a confusing maze of 163 separate programs, scattered 
across 15 Federal agencies, and costing more than $20 billion a 
year. These programs are hamstrung by duplication, waste, and 
conflicting requirements that too often leave program trainees 
no better off than when they started.
    Today's fragmented system has more than 60 separate 
programs targeted at the economically disadvantaged, with, for 
example, 34 literacy programs aimed at reaching the same group. 
It is a system with six different standards for defining income 
eligibility levels, five for defining family and household 
income, and five for defining what is included in income.
    The system lacks any effective means for determining 
whether programs actually work. Last year, the General 
Accounting Office released a report indicating that fewer than 
half of the 62 job training programs selected for study even 
bothered to check to see if participants obtained jobs after 
training. During the past decade, only seven of those programs 
were evaluated to find out whether trainees would have achieved 
the same outcomes without Federal assistance.
    The current patchwork of employment and training programs 
confuses those seeking assistance because there are no clear 
entry points and no clear path from one program to another. The 
programs targeted for consolidation currently have conflicting 
eligibility criteria. They apply program incentives that are 
not always compatible with assisting individuals to acquire 
jobs. These program requirements may encourage staff to assist 
individuals who are the easiest to serve, rather than the most 
difficult. There is limited coordination across programs. There 
is no systemic link between educational services and job 
training services.
    Organizations that provide Federal employment and training 
assistance range from publicly supported institutions of higher 
education to local education agencies and from nonprofit 
community-based organizations to private for-profit 
corporations. In addition, different programs frequently target 
the same client populations. For example, youth are 
specifically targeted by 19 programs. Other target groups, such 
as veterans, Native Americans, the poor, and dislocated 
workers, are each also targeted by several programs. Not 
surprisingly, people have difficulty knowing where to begin to 
look for assistance. As a result, they may go to the wrong 
agency, or worse, give up altogether.
    Employers also experience problems with the multitude of 
employment and training programs. Employers want a system that 
is easy to access and provides qualified job candidates. 
Instead, they must cope with solicitations from over 50 
programs that provide job referral and placement assistance to 
individuals. Often, employers are not even involved in 
designing programs that should be responsive to their labor 
market needs. There is no clear linkage between economic 
development activities and employment and training programs to 
help employers meet their labor needs. Training programs are a 
waste of Federal dollars if employers cannot hire newly trained 
workers whose skills do not match employer needs.
    Faced with stiff global competition, corporate 
restructuring, and continuing Federal budget constraints, the 
Federal Government cannot support a system that wastes 
resources, does not help people better compete for jobs, and 
does not help employers meet their labor force needs. People 
across the country do not want the Government spending money on 
programs that cannot deliver the results promised. As a nation, 
we can no longer afford the ``Washington knows best'' mentality 
that has created the current maze of employment and training 
programs. With a few notable exceptions, the evidence on job 
training results reveals far more failures than successes. Many 
State and local entities have begun the task of creating 
integrated employment and training systems which meet the 
unique needs of their communities. They have been frustrated, 
however, by Federal laws and regulations which prevent them 
from developing a more responsive and effective job training 
system.
    If employment and training programs are to succeed, a 
simple, integrated work force development system must be 
established that gives States, local communities, and employers 
both the assistance and the incentives to train real workers 
for real jobs. The Workforce Development Act of 1995 promotes 
the development of a new and coherent system in which all 
segments of the work force can obtain the skills necessary to 
earn wages sufficient to maintain a high quality of living and 
in which a skilled work force can meet the labor market needs 
of the businesses of each State.

         III. History of the Legislation and Votes in Committee

    On January 4, 1995, Senator Kassebaum introduced S. 143, 
the Job Training Consolidation Act of 1995. The bill aims to 
consolidate employment training, adult education and vocational 
education programs and create integrated statewide work force 
development systems.
    On January 10, 11, and 12, 1995, the Committee on Labor and 
Human Resources held hearings in Washington, DC, on ``Federal 
Job Training Programs: The Need for Overhaul.'' The committee 
heard from individuals experienced with employment and training 
programs--both those who had enrolled in such programs and 
those who run programs. In addition, the committee heard 
testimony from the General Accounting Office, the Office of 
Management and Budget, representatives of business and labor, 
scholars who study training programs, and representatives of 
Federal, State, and local governments.
    Those experienced with programs told of their frustration. 
For example, Ernestine Dunn of Seattle, WA, testified that she 
``was on welfare for 16 years. During that time, I went through 
eight different job training programs before I found what I 
wanted. All I wanted was the support and training to get a good 
job and to be on my own.'' Marion Pines of Johns Hopkins 
University noted that ``these kinds of bizarre situations are 
not unusual. Well-intentioned staff and clients get caught in a 
crossfire of legislative and administratively mandated 
regulations, leaving everyone frustrated.''
    Several witnesses discussed why employment and training 
programs need improvement. Carol D'Amico of the Hudson 
Institute in Indianapolis, IN, observed that ``the Federal 
Government holds sponsors of these programs accountable for 
complying with hundreds of regulations instead of judging them 
by what they are accomplishing, that is, whether they are 
getting people private sector jobs.'' Clarence Crawford of the 
General Accounting Office reported that the number of Federal 
employment and training programs stands at 163. He concluded 
that, ``We have a system that wastes resources, confuses 
clients, employers, and administrators and, after spending 
billions of dollars annually, we do not know if the programs 
are really helping people find jobs.''
    Two witnesses testified specifically about the 
effectiveness of the Job Opportunities and Basic Skills 
Training (JOBS) program in moving parents from welfare to work. 
Janet Schrader, an employment service worker with the JOBS 
program in Alexandria, VA, testified about the lack of success 
of the JOBS program due in part to the multiple problems of 
clients. Problems she cited included unstable housing, limited 
academic ability, lack of day care or transportation, poor 
social skills, personal or family illness, and the proclivity 
to be easily defeated by rejection in looking for a job. To 
make JOBS more successful, she recommended better assessment of 
clients, better case management, and more employer commitment 
to the program.
    Jane L. Ross, Associate Director for Income and Security 
Issues at the General Accounting Office in Washington, DC, 
testified that a GAO review of the JOBS program showed that 
only a quarter of the people who were eligible to participate 
in JOBS were involved in any kind of activity; about 40 percent 
of the programs in the study had no full-time or part-time 
staff dedicated to job development; and less than one-third of 
the counties placed participants in on-the-job training or work 
supplementation programs. She concluded that ``JOBS focuses too 
much on process, not enough on results, and it does not do 
nearly enough to help AFDC recipients find employers who 
actually may be willing to hire them.''
    Several witnesses suggested strategies for improving 
programs. Jerry R. Junkins, president and chief executive 
officer of Texas Instruments Inc., Dallas, TX, called for 
programs and systems that are ``better coordinated, 
streamlined, consolidated where appropriate to ensure 
efficiency and be more user-friendly, but a main principle is 
that actual delivery should be administered as much as possible 
at the local level so that training is tailored to meet the 
needs of each specific community.'' Debra A. Bowland, 
administrator, Ohio Bureau of Employment Services, Columbus, 
OH, amplified these points: ``We need legislation to enable 
States and localities to meet employer and worker needs. We 
must simplify the system and improve administrative efficiency. 
We need the flexibility to tailor services to customer needs. 
We have to ensure accountability, and programs must be 
implemented which promote the dignity of work.''
    Several witnesses maintained that vouchers could be one 
approach to improve programs but should not be the only 
approach. For example, Governor Tommy Thompson of Wisconsin 
told the committee that ``vouchers is just one way, and I do 
not think that it is really the panacea. What I really think 
you should do is set some standards and allow the States to 
adhere to those standards and set down some penalties.''
    Other witnesses advocated one-stop centers as part of an 
improved employment training system. Secretary of Labor Robert 
Reich told the committee: ``With one-stop career centers, 
people can go anywhere and get all the information they need. 
They can also get unemployment insurance and assistance if they 
have lost their jobs.'' The Secretary noted that pilot projects 
in several States are already working.
    Tony Young, Director of Residential Services and Community 
Supports at the American Rehabilitation Association testified 
on behalf of the Consortium for Citizens with Disabilities, 
Task Force on Employment and Training. Young suggested a ``two-
pronged'' strategy for addressing the unique needs of 
individuals with disabilities. First, mandate the preservation 
of a distinct administrative entity with separate funding to 
provide services for individuals with severe disabilities, 
especially those that fall outside of those services readily 
available in consolidated job training programs. Second, 
require consolidated programs to practice principles that will 
create training and employment opportunities for individuals 
with disabilities, consistent with civil rights principles.
    On January 18 and 19, 1995, the Committee on Labor and 
Human Resources held hearings in Washington, DC, on ``Examining 
Performance, Accountability, and the Incidence of Violence at 
Job Corps Sites.'' The committee heard from students who had 
attended Job Corps, former staff members, management staff, and 
administration witnesses. Gerald W. Peterson, former assistant 
inspector general for the Department of Labor testified that 
his office prepared a study last year showing that one out of 
five Job Corps participants is not placed in any job, does not 
return to school, or does not enter the armed forces; only 13 
percent of the students completing the Job Corps program were 
placed in a job using the skills they learned; only 17 percent 
of total Job Corps funds actually went toward educational/
vocational training; and over $100 million is wasted annually 
producing no measurable gain for participants in the program. 
Mr. Peterson also testified that ``The poor-performing centers 
consistently rank at the bottom, yet they continue to be fully 
funded despite the fact that they show little or no 
improvement.''
    Other witnesses testified about their experience with poor-
performing centers citing violence, drug abuse, sexual 
activity, and theft. Shirley D. Sako, a former Job Corps staff 
member from Piscataway, NJ, testified that centers were under 
pressure to maintain their ``onboard strength'' of students 
resulting in what she termed ``managing by the numbers.'' She 
observed that ``because disruptive students were kept in the 
program who should have otherwise been terminated, violence in 
the center was allowed to proliferate.'' John P. Deering, an 
admissions counselor for an area covering 11 Job Corps centers, 
testified that because of gang activity and violence he would 
send youth to only two small rural facilities that he believed 
were safe. ``I have sent youth to some of these other campuses; 
they come home scared, they come home frustrated,'' he 
testified.
    Two witnesses testified about their positive experiences 
with Job Corps centers that established close linkages with the 
local community. Karen Anderson of St. Paul, MN, told how her 
company served as a work site for students who have completed 
the program and not yet left Job Corps. For 6 weeks, students 
through this work experience ``can see first hand what it is 
like to operate a small business . . . so they can see what 
happens in accounting, what happens up front with the 
customers, how do we run production through.'' Luis Melendez, a 
police officer from New York, NY, observed that, ``Over the 
years, the students and the staff of the [South Bronx Job 
Corps] center have become the best neighbors to the 46th 
precinct and its community members. They have opened up the 
facility to host a number of events, including joint community 
relations meetings held monthly.''
    On April 27, May 19, and May 25, 1995, the Senate 
Subcommittee on Education Arts, and Humanities conducted three 
hearings on adult and vocational education. The April 27 
hearing focused on current federally funded vocational 
education programs such as tech-prep and school-to-work. Marcia 
Baker, director of the Burlington Technical Center in 
Burlington, VT, discussed the difference between tech-prep and 
school-to-work initiatives. She stated that tech-prep is the 
one vocational education initiative which is ``inextricably 
tied to post-secondary technical training and education.'' One 
of the key points of Ms. Baker's testimony was that tech-prep 
must be continued because there is a ``need for trained 
technicians who also have the basic academic and workplace 
readiness skills that are so necessary in today's businesses 
and industries.'' The subcommittee also heard from Susan Brown, 
director of the Main Youth Apprenticeship Program. Ms. Brown 
distinguished between the roles of the Federal, State and local 
governments in establishing the school-to-work program. She 
said the Federal Government has provided the national 
leadership which is important in providing not only the initial 
dollars, but also lending technical expertise necessary in the 
beginning stages of the program. The State and local 
contributions include the overseeing of the school-to-work 
grants, and involving local educators and business community 
representatives in both the funding and implementing stages of 
this effort.
    Another key witness who testified before the April 27 
subcommittee hearing was Peter McWalters, Rhode Island's 
Commissioner of Education. Mr. McWalters highlighted three 
areas which are essential to the reauthorization process. 
First, it is important to continue to ``improve the quality and 
capacity of the secondary-post secondary education system, 
particularly integrating academic and occupational studies to 
prepare students for work.'' Second, vocational education 
should be linked with comprehensive programs for elementary and 
secondary school reform. Third, Mr. McWalters emphasized the 
importance of adult education and how it must be coordinated 
with other literacy and education initiatives.
    The May 19 hearing highlighted federally funded adult 
education programs. Greg Hart, director of Pima County adult 
education, testified before the Senate Subcommittee on 
Education, Arts, and Humanities. Mr. Hart told the panel that 
the Pima County program serves 12,000 individuals per year. He 
said the current cost of the program for each student is $150 
per year. Mr. Hart further stated that the ``Federal Government 
should encourage, without being prescriptive, partnership 
formation in order to maximize current existing and future 
resources.''
    On May 25, 1995, the subcommittee examined the role of the 
business community in vocational education. Rebecca J. Taylor, 
executive director of Vocational Foundation, Inc., discussed 
how businesses involved with the foundation have had a major 
influence in developing vocational education programs in the 
New York City area. Some of the business community's efforts 
include: (1) serving on advisory boards involved in developing, 
evaluating, and revising classroom curricula, (2) providing 
teachers and administrators with information about the 
requirements of the workplace and industry trends, and (3) 
hiring graduates from various vocational education programs. 
She concluded her testimony by stating that ``[Federal] 
legislation should include a variety of incentives, financial 
and otherwise, to encourage business to provide work 
experience.''
    On June 2, 1995, Senator Mike DeWine held a field hearing 
in Columbus, Ohio, in preparation for the Committee's 
consideration of S. 143 in executive session. The hearing 
focused primarily on the role of job training services in 
assisting at-risk youth and individuals with disabilities. 
Gabriella Hernandez, a seasonal migrant farmworker, told about 
the assistance she received under the Job Training Partnership 
Act. ``The individual one-on-one assistance from the staff is 
what I attribute most to my success. The JTPA staff gave me 
encouragement and a positive look toward my future from day 
one.'' Ninia Downs, executive director of government programs 
for the Ohio Restaurant Association and program director of 
Ladders to Success, described that program's success in placing 
individuals with disabilities into jobs in the restaurant 
business. With employers as active partners in the program, 
``more than 800 people have been placed into competitive entry-
level and skilled jobs. * * * These workers have a variety of 
disabilities, including mental retardation, traumatic brain 
injury, deafness, cerebral palsy, blindness and epilepsy. Their 
similarity is a desire to work.''
    On June 14 and 21, 1995, the Committee on Labor and Human 
Resources met in executive session to consider S.143. Chairman 
Kassebaum offered an amendment in the nature of a substitute 
for S.143, the Workforce Development Act of 1995. On June 21, 
1995, the chairman's substitute was adopted by a roll call vote 
of 10 yeas to 6 nays.
        YEAS                          NAYS
Kassebaum                           Kennedy
Jeffords                            Dodd
Coats                               Simon
Gregg                               Harkin
Frist                               Mikulski
DeWine                              Wellstone
Ashcroft
Abraham
Gorton
Pell

    During consideration of the measure, there were roll call 
votes taken on 11 amendments. One of the amendments passed. 
Several amendments were adopted by voice votes. These included 
Senator Pell's amendment to improve the definition of 
dislocated workers; Senator Kennedy's amendment regarding 
modifications to the labor market information provisions; 
Senator DeWine's amendment to clarify the State plan 
requirements for work force employment and work force education 
activities; Senator Wellstone's amendment to include veterans' 
representatives on State and local boards; Senator Ashcroft's 
amendment to create incentives for States to decrease the 
number of adult AFDC recipients within each State by increasing 
the placement of such adult recipients in unsubsidized 
employment; Senator Ashcroft's amendment to require non-high 
school graduates in certain job training programs to make 
progress toward a high school diploma or equivalent; Senator 
Kennedy's amendment to provide for continued development of 
school-to-work systems; Senator Harkin's amendment regarding a 
sense-of-the-Senate in reference to welfare reform; Senator 
Kennedy's amendment to clarify the role of local elected 
officials; Senator Simon's amendment to continue the 
authorization of planned new Job Corps centers before they are 
subject to evaluation; Senator Kennedy's amendment to improve 
provisions regarding refugee assistance; Senator Simon's 
amendment to provide for Indian employment and training 
services, and Chairman Kassebaum's amendment to provide that 
final authority for the approval of State plans and 
disbursement of funds will remain with the Secretary of Labor 
and the Secretary of Education and to add two education 
providers and two Governors to the governing board.
    1. Senator Mikulski offered an amendment to strike the 
Senior Community Services Employment Program from the Workforce 
Development Act. The amendment failed by a roll call vote of 7 
yeas to 9 nays.
        YEAS                          NAYS
Kennedy                             Kassebaum
Pell                                Jeffords
Dodd                                Coats
Simon                               Gregg
Harkin                              Frist
Mikulski                            DeWine
Wellstone                           Ashcroft
                                    Abraham
                                    Gorton

    2. Senator Jeffords and Senator Pell offered an amendment 
to require that States spend a minimum of 25 percent of their 
allocation for education activities on adult education. The 
amendment failed by a roll call vote of 8 yeas to 8 nays.
        YEAS                          NAYS
Kennedy                             Kassebaum
Pell                                Coats
Dodd                                Gregg
Simon                               Frist
Harkin                              DeWine
Mikulski                            Ashcroft
Wellstone                           Abraham
Jeffords                            Gorton

    3. Senator Dodd offered an amendment to set aside funds at 
the national level to address major economic dislocations and 
provide assistance for migrant and seasonal farmworkers. The 
amendment failed by a roll call vote of 8 yeas to 8 nays.
        YEAS                          NAYS
Kennedy                             Kassebaum
Pell                                Coats
Dodd                                Gregg
Simon                               Frist
Harkin                              DeWine
Mikulski                            Ashcroft
Wellstone                           Abraham
Jeffords                            Gorton

    4. Senator Dodd offered an amendment to restore the summer 
youth employment program. The amendment failed by a roll call 
vote of 8 yeas to 8 nays.
        YEAS                          NAYS
Kennedy                             Kassebaum
Pell                                Coats
Dodd                                Gregg
Simon                               Frist
Harkin                              DeWine
Mikulski                            Ashcroft
Wellstone                           Abraham
Jeffords                            Gorton

    5. Senator Kennedy offered an amendment to increase the 
authorization of appropriations for Title I to $8,102,754,000. 
The amendment failed by a roll call vote of 8 yeas to 8 nays.
        YEAS                          NAYS
Kennedy                             Kassebaum
Pell                                Coats
Dodd                                Gregg
Simon                               Frist
Harkin                              DeWine
Mikulski                            Ashcroft
Wellstone                           Abraham
Jeffords                            Gorton

    6. Senator Simon offered an amendment to ensure that 
training for displaced homemakers be included in the uses of 
funds for work force employment activities. The amendment 
failed by a roll call vote of 7 yeas to 9 nays.
        YEAS                          NAYS
Kennedy                             Kassebaum
Pell                                Jeffords
Dodd                                Coats
Simon                               Gregg
Harkin                              Frist
Mikulski                            DeWine
Wellstone                           Ashcroft
                                    Abraham
                                    Gorton

    7. Senator Kennedy offered an amendment to strike the Trade 
Adjustment Assistance (TAA) program from the Workforce 
Development Act. The amendment failed by a roll call vote of 8 
yeas to 8 nays.
        YEAS                          NAYS
Kennedy                             Kassebaum
Pell                                Jeffords
Dodd                                Coats
Simon                               Gregg
Harkin                              Frist
Mikulski                            DeWine
Wellstone                           Ashcroft
Abraham                             Gorton

    8. Senator Kennedy offered an amendment to require that 
States establish local work force development boards. The 
amendment failed by a roll call vote of 8 yeas to 8 nays.
        YEAS                          NAYS
Kennedy                             Kassebaum
Pell                                Coats
Dodd                                Gregg
Simon                               Frist
Harkin                              DeWine
Mikulski                            Ashcroft
Wellstone                           Abraham
Jeffords                            Gorton

    9. Senator DeWine offered an amendment to increase the 
authorization of appropriations for at-risk youth in Title II 
to $2,100 million. The amendment passed by a roll call vote of 
12 yeas to 4 nays.
        YEAS                          NAYS
Jeffords                            Kassebaum
Frist                               Coats
DeWine                              Gregg
Ashcroft                            Gorton
Abraham
Kennedy
Pell
Dodd
Simon
Harkin
Mikulski
Wellstone

    10. Senator Kennedy offered an amendment to change the 
State apportionment of funds to 40 percent for work force 
employment activities, 25 percent for work force education 
activities, and 35 percent for work force flex activities. 
Senator Pell offered a second degree amendment to Senator 
Kennedy's amendment to change the apportionment to 33\1/3\ 
percent for work force employment activities, 33\1/3\ percent 
for work force education activities, and 33\1/3\ percent for 
work force flex activities. Senator Pell's second degree 
amendment failed by a roll call vote of 7 yeas to 9 nays.
        YEAS                          NAYS
Kennedy                             Kassebaum
Pell                                Jeffords
Dodd                                Coats
Simon                               Gregg
Harkin                              Frist
Mikulski                            DeWine
Wellstone                           Ashcroft
                                    Abraham
                                    Gorton

    Senator Kennedy's first degree amendment failed by voice 
vote.
    11. Senator Simon offered an amendment to retain the Job 
Corps programs as a Federal program. The amendment failed by a 
roll call vote of 7 yeas to 9 nays.
        YEAS                          NAYS
Kennedy                             Kassebaum
Pell                                Jeffords
Dodd                                Coats
Simon                               Gregg
Harkin                              Frist
Mikulski                            DeWine
Wellstone                           Ashcroft
                                    Abraham
                                    Gorton

                          IV. Committee Views

           TITLE I.--STATEWIDE WORK FORCE DEVELOPMENT SYSTEMS

                                purpose

    The legislation consolidates all major Federal training 
programs into a single block grant to the States. The purpose 
of the Workforce Development Act of 1995 is to enable each 
state to develop, a single, unified system of job training and 
training-related education activities designed to assure that:
          A. There is a logical relationship among formal 
        education, job-specific training, and the jobs 
        available in our economy.
          B. Individuals who need assistance in obtaining 
        employment are easily able to identify the resources 
        available for that purpose.
          C. There is clear accountability for Federal dollars.
    The committee intends that States will develop coherent 
work force development systems designed to develop more fully 
the academic, occupational, and literacy skills of all segments 
of the work force as a means to make the Untied States more 
competitive in the world economy. The term ``all segments of 
the work force'' includes individuals with disabilities and 
others for whom specific categorical programs currently exist. 
``All segments of the work force'' means exactly that--and is 
intended to be interpreted inclusively.

                          funding and formula

    The legislation authorizes $7 billion for the block grants 
over a 4-year period. This figure represents approximately a 15 
percent reduction in current spending for similar education and 
training programs. The committee believes that such a reduction 
is justified because consolidating programs will result in the 
elimination of overlapping and duplicative programs, thereby 
saving administrative costs and increasing efficiency in the 
delivery of services. The committee further believes that the 
increased flexibility provided in this legislation should more 
than compensate for the reduction in funds and expects that the 
level of services to individuals will be maintained.
    Funds made available to States through the block grants 
will be distributed according to a formula based on the 
following factors: 60 percent of the funds based on each 
State's percentage share of the population aged 15 to 65 years, 
10 percent of the funds based on each State's percentage share 
of individuals aged 18 to 64 years who are at or below the 
official poverty line, 10 percent of the funds based on each 
State's percentage share of the average unemployment rate for 
the previous 2 years; and 20 percent based on each State's 
percentage share of adult recipients of Aid to Families with 
Dependent Children (AFDC).
    In addition to these factors, there is a provision for a 
State minimum allocation, so that no State receives less than 
0.5 percent of the total allocation. However, the application 
of the minimum grant provision cannot result in a grant that is 
larger than the product of a State's population times the 
national per capita payment under the formula (which is the 
total allocation divided by the total population).
    Of the total authorization, approximately 7 percent will be 
reserved for national activities including State incentive 
grants, evaluation, technical assistance, development of a 
labor market information system, and support for programs for 
Native Americans and the outlying territories.
    The remaining 93 percent will be distributed to the States 
as a single block grant. The committee believes that individual 
States need greater flexibility in designing systems which 
address their specific needs and economic conditions. 
Therefore, the legislative requirements on States will be 
minimal--with the only significant conditions being that: (1) a 
minimum of 25 percent of funds be used for work force 
employment activities and a minimum of 25 percent of funds be 
used for work force education activities, (2) job training 
activities be based on the concept of one-stop career centers, 
(3) school-to-work activities be supported, and (40 benchmarks 
by which to measure results be developed.

          principal elements of work force development system

    Within each State, funds will be divided between the two 
principal elements of the system; work force employment and 
work force education.

Work force employment activities

    Out of the total amount made available to a State, a 
minimum of 25 percent of the funds shall be devoted to work 
force employment activities, under the direction of the 
Governor. The core work force employment activities include 
establishing one-stop delivery of employment services and 
training, developing a labor market information system, and 
creating a job placement accountability system. These core 
activities would include basis labor exchange functions such as 
those now supported by the Wagner-Peyser Act and job training 
activities such as those now supported by the Job Training 
Partnership Act.
    The Committee believes that the current collection of 
disjoined employment and training programs has rendered the 
efficient delivery of employment services virtually impossible, 
and has stifled innovative solutions to meet ever-increasing 
needs for job placement and training. For the most part, these 
programs operate independently of each other, resulting in a 
fragmented and ineffective response to the needs of job seekers 
and employers alike. This legislation attempts to ``wipe the 
slate clean'' and eliminate conflicting laws, regulations, and 
administrative rules which have made it difficult for 
administrators to integrate programs funded by multiple 
sources.
    Under this legislation, states would have the flexibility 
to design and implement a statewide approach to job training, 
based on the concept of one-stop career centers. The one-stop 
career center concept replaces the current fragmentation in 
service delivery by envisioning a system that would pride all 
individuals seeking employment with accurate information 
regarding employment opportunities and appropriate education or 
training programs.
    States could combine existing programs and agencies 
offering related services together under one roof that would 
provide a comprehensive strategy for meeting the needs of 
individuals seeking employment. While having all services 
available at one location may be ideal in some situations, it 
may not be practical to implement in all areas. Therefore, 
States may choose other strategies, such as linking service 
providers through multiple electronic access points. Another 
option would be to establish a network that assures that 
services will be available regardless of where an individual 
initially enters the system. States may also use some 
combination of these options, but the key is to provide 
individuals easy access to core services and a wide array of 
training and education activities available in the statewide 
system.
    The legislation specifies certain, yet minimum, core 
services which are to be provided through the one-stop career 
centers including outreach to and orientation of the services 
available through the one-stop career center system, 
assessment, job search and placement assistance, career 
counseling where appropriate, screening and referral of 
qualified applicants to employment or other support services, 
and accurate and timely information relating to employment 
opportunities, training, education and support services.
    If the system is to be successfully implemented, it must 
provide the public and employers with timely, accurate and 
easily accessible information. To facilitate the collection of 
such information, States shall establish comprehensive labor 
market information systems, as well as job placement 
accountability systems to track the placement of individuals 
into unsubsidized employment and to document the performance of 
education and training providers.

   relationship between one-stop career centers and the unemployment 
                          compensation system

    Employers currently pay taxes (Federal Unemployment Tax or 
FUT) to support the administration of an unemployment 
compensation system. Unemployment trust fund moneys are used 
for unemployment benefits, the administration of unemployment 
insurance, and the Employment Service. The Employment Service, 
established by the Wagner-Peyser Act of 1933, is the job link 
for the unemployed or dislocated workers and employers. The 
Employment service was created as a means to assist the 
unemployed to reenter the work force as quickly as possible, 
thereby reducing payments for unemployment benefits and 
reducing employer taxes.
    The mission of the Employment Service is identical to the 
concept and mission of the one-stop career centers in this 
bill. The Employment Service provides basic job search and job 
placement assistance for all job seekers, including referral 
and placement services for the job-ready and workers in 
transition, labor market information, skill assessment and 
counseling, referrals to training for the non-job-ready, and a 
place for individuals to improve their job search skills. For 
employers, the Employment Service matches applicants with job 
vacancies and labor market information for business and 
economic planning. These functions are all core services that 
States must continue to provide through the one-stop career 
centers.
    Because the mission of the Employment Service is 
duplicative with the one-stop career centers, this legislation 
consolidates the Employment Service into the overall statewide 
work force development system. The committee anticipates that 
many States will build their work force development systems 
upon existing service delivery mechanisms, and would have the 
discretion to integrate existing Employment Service resources 
into the statewide system. Some States may follow the model 
Ohio has adopted which has been to convert local employment 
security offices into Customer Service Centers that offer a 
central core of integrated employment and training services, 
with the Employment Service as the lead State agency 
administering the program. In other States, Employment Service 
personnel are participating in one-stop career centers that are 
managed by private companies. Still other States may choose to 
have the functions of the Employment Service carried out 
entirely by the private sector.
    The committee believes that integrating the Employment 
Service into the statewide work force development system will 
improve and strengthen services for all individuals, and 
particularly for workers in transition who are receiving 
unemployment benefits. Developing better labor market 
information, and making such information more accessible to 
individuals, will facilitate the return to work for many 
workers and reduce unemployment benefits. The committee 
believes that where feasible, States should pay unemployment 
benefits at the same location where reemployment services are 
provided under this act. It is the committee's intent that 
States ensure the continued linkage between the unemployment 
insurance system and such reemployment services.
    Finally, it is the committee's intent that States ensure 
that the dedicated employer taxes which currently support these 
activities continue to be used exclusively for those purposes.

                         permissive activities

    The legislation provides for other permissive training 
activities that States may use in order to assist individuals 
to gain the skills necessary to become productively employed. 
These include activities such as on-the-job training, rapid 
response assistance for dislocated workers, skill upgrading and 
retraining for persons not in the work force, programs for 
adults that combine workplace training with related 
instruction, and preemployment and work maturity skills 
training for youth. It is not intended that these activities 
constitute the exclusive list of permissive activities. States 
will have maximum flexibility to tailor these activities to 
meet the particular needs of employers and job-seekers in each 
State.
    States are encouraged to award incentive grants to local 
areas that reach or exceed the State benchmarks established to 
measure the effectiveness of the State's work force development 
system toward placing people into unsubsidized jobs.
    States are also given the option, but are not required, to 
deliver some or all of the work force employment activities 
through the use of vouchers. The committee believes that the 
use of vouchers may, in fact, be an efficient and effective way 
to deliver job training services under limited circumstances. 
However, the committee does not believe that it would be 
feasible at this time to replace the current unworkable system 
with one that is in many ways completely unproven. Until 
stricter measures of accountability for service providers 
exist, rapid expansion of a voucher system would, in the 
committee's view, be unwise. The committee strongly prefers to 
allow States to begin testing the efficacy of vouchers in 
limited and controlled situations.
    If a State chooses to utilize vouchers as a delivery and 
payment mechanism for job training activities, certain 
requirements must be met. These requirements include 
administering the vouchers through the one-stop career centers, 
establishing eligibility criteria to determine what activities 
will be funded through vouchers, which participants are 
eligible to receive vouchers and the value of the voucher, and 
which service providers will be eligible to receive payment 
through a voucher. In addition, States will be required to 
demonstrate in their State plans how the information obtained 
through the labor market information system about the 
performance of eligible providers will be utilized to assist 
individuals in making informed decisions as to how to use 
vouchers most effectively.

Work Force Employment: In-State Allocation

    Out of the total amount of funds to be used by a State for 
work force employment activities, 25 percent shall be reserved 
by the Governor to carry out activities through the system and 
75 percent shall be distributed to local entities to carry out 
activities through the system, based on such factors as 
population, poverty, unemployment, and the number of AFDC 
recipients in the State, and any additional factors the 
Governor determines to be necessary.

                     local partnerships and boards

    Local communities, which will be responsible for carrying 
out the State-based work force development system, should also 
be given maximum flexibility in identifying local resources and 
developing strategies that meet local private sector and labor 
force needs. The challenges of a highly competitive global 
economy require work force development strategies that allow 
for rapid response to changing local economic conditions. The 
success of any work force development system in meeting these 
challenges will depend largely on the expertise, time, and 
resources invested by local communities. The committee intends 
that the statewide work force development system should draw 
upon the expertise and recommendations of local communities and 
businesses, in order to maximize available resources and ensure 
the cooperation of local employers, administrators, and elected 
officials.
    The legislation requires the Governor to seek the 
recommendations of key stakeholders in local communities by 
negotiating and entering into agreements with local 
partnerships (or, where established, local work force 
development boards) for the delivery of work force employment, 
school-to-work, and economic development activities in each 
substate area. In addition to local elected officials, the 
active participation of representatives of business, industry, 
labor and workers, local secondary schools, local postsecondary 
education institutions, local adult education providers, 
rehabilitation agencies and organizations, and community-based 
organizations, should be sought in securing the local 
partnership agreement. Such an agreement must include a 
description of how the funds allocated to a substate area will 
be spent on work force employment, school-to-work, or economic 
development activities, and evidence of support for the 
agreement among the members of the local partnership (or board, 
as the case may be).
    When appropriate, the local partnership may recommend to 
the Governor changes in the agreement which will improve the 
performance of the work force development system. Local 
partnerships may also assist the local one-stop career center 
and service providers to ensure that the work force employment, 
school-to-work and economic development activities are 
responsive to the needs to the area served. Finally, local 
partnerships may seek to ensure that goals and benchmarks are 
achieved.
    If, after a reasonable effort, the Governor is unable to 
enter into an agreement with the local partnership (or board), 
the Governor shall provide the partnership (or board) an 
opportunity to comment upon the manner in which funds allocated 
to the substate area will be spent for such activities.
    States and communities have the discretion to establish 
work force development boards as a part of their statewide work 
force development system, but are not required to do so. The 
approach taken in this legislation is to avoid mandates as much 
as possible, thereby allowing States and communities the 
flexibility to retain boards of their own choosing, or to 
reconstitute local and private sector involvement in a 
different way. It is not the committee's intent to prescribe 
how States should design their work force development systems 
at the local level.
    The committee does recognize that business-led groups, such 
as private industry councils (PIC's), have been very effective 
in some cases in identifying the work force development needs 
in their communities. However, the overall results have been 
mixed. The most effective councils operate and are driven by 
committed business leaders with an interest in work force 
development, while the least effective have only nominal 
business involvement. The committee does not believe that 
merely mandating the establishment of a board or other 
organizational entity will ensure that employers are actively 
involved in the training and education needs at the State or 
local level. While many such entities have been created in the 
past, no one piece of Federal legislation has yet achieved the 
right mix for ensuring their effectiveness.
    It is the belief of the committee, however, that short of a 
mandate there are significant incentives for States to 
establish some type of work force development board at the 
local level. One incentive is the strength and expertise that 
PIC's have developed over the past 10 years or more in 
administering the Job Training Partnership Act. There is a 
public-private infrastructure in place that the committee 
anticipates States will consider in designing their work force 
development systems. This existing expertise will be valuable 
for States and communities in managing the number of programs 
consolidated under this act. It is the committee's expectation 
that a strong existing local board with a solid reputation will 
be a voice for how work force employment, school-to-work, and 
economic development funds should be spent at the local level.
    Another incentive is provided directly in the legislation 
in the form of economic development activities. States that 
establish State and local business-led work force development 
boards, as defined in this act, may use funds for economic 
development activities, including training for incumbent 
workers of small and medium-size employers in the State. The 
committee believes that many States would find this option 
attractive enough to choose to establish work force development 
boards.

                          employer involvement

    The design of the State's work force development system 
should be based on local labor market needs which, by 
necessity, require the active involvement of the private 
sector. Private sector businesses, which ultimately provide the 
jobs, must be included as an integral part of the system. Too 
often in the past, training programs have not been connected to 
available employment opportunities. By and large employers have 
lost confidence in the current public systems of labor exchange 
and job training development because these programs do not 
provide individuals with the skills necessary to succeed in the 
workplace. Consequently, employers have turned to nonpublic 
systems to locate, select, and train employees.
    Employers must be confident that training programs are 
providing individuals with useful skills and that one-stop 
career centers will give them the most qualified applicants 
available. Therefore, the system should require that employers 
and industry representatives have a lead role in the choice, 
design, and content of the types of skills and training needed 
in each local area or State in order to link education and 
training programs to real employment opportunities. States may 
choose to establish or retain existing State and local work 
force development boards as one means of obtaining employer 
involvement.
    The committee cannot emphasize strongly enough the critical 
role businesses and employers must play in developing and 
implementing a State's work force development system. It is the 
committee's intent that employers, business organizations (such 
as local chambers of commerce), and industry representatives be 
actively involved in every step of the design and 
implementation of State and local work force development 
activities.
    In the committee's view, where employers have volunteered 
time and effort, and have become actively engaged in State and 
local work force development activities, those activities have 
been most effective. Unfortunately, such participation cannot 
be mandated by law. The committee also recognizes that State 
and local governments, in the process of designing and 
implementing State and local programs, sometimes place a higher 
priority on preserving their own interests and prerogatives 
than on meeting the needs of employers and job-seekers alike. 
It is the hope and intention of this committee that employer 
involvement will become the highest priority to States and 
localities in the design and implementation of statewide work 
force development systems.

Work force education activities

    Out of the total amount made available to a State, a 
minimum of 25 percent of the funds shall be devoted to 
education efforts designed and implemented by State and local 
educational agencies. This would include activities such as 
those now supported by the Carl Perkins Vocational and Applied 
Technology Education Act and the Audit Education Act.
    The increasing demands for assistance in preparing 
individuals for entry into the work force, as well as for 
opportunities for continual learning throughout one's working 
career, are formidable. The legislation provides for the 
continuation of certain core work force education activities 
that have been instrumental in providing individuals with the 
opportunity to improve their skills. These include the 
integration of vocational and academic studies; linkages 
between secondary and postsecondary education, including tech-
prep programs; career guidance and counseling activities; adult 
education and literacy services; and programs for adults to 
complete a high school education. Specific activities currently 
authorized by either the Perkins Act or the Adult Education Act 
are not precluded by this legislation. Rather, the committee 
intends that in addition to the required activities listed, 
States will also use these funds creatively to address a 
State's particular work force education needs.
    The legislation requires that funds made available for work 
force education activities will supplement, and not supplant, 
other public funds expended for this purpose. States must also 
meet a maintenance-of-effort requirement based on the fiscal 
effort per student or the aggregate expenditures of the State 
for work force education activities in the preceding fiscal 
year.

Work force education: In-State allocation

    Out of the total amount of funds to be used by a State for 
work force education activities, 20 percent shall be reserved 
by the State educational agency to carry out State-level 
activities (of which not more than 5 percent may be used for 
administrative expenses) and 80 percent shall be distributed to 
eligible entities to carry out activities at the local level 
(of which no more than 5 percent may be used for 
administration).
    Local eligible entities (which include local educational 
agencies, postsecondary institutions, and other described as 
eligible for financial assistance under the within-State 
formulas) shall submit applications to the State educational 
agency. Local applications shall include descriptions of the 
activities to be carried out, how those activities relate to 
the State's goals and benchmarks for work force education, how 
the activities are an integral part of the overall effort to 
improve education for all students and adults, the process to 
be used to monitor and continuously improve performance, and 
how the entity will coordinate with the local work force 
development board, if any, in its area.
    The State shall divide its allocation for work force 
education activities among 2 functions: vocational education 
and adult education. Of the amount provided for vocational 
education, a State may determine the relative amounts for 
secondary and postsecondary vocational education.
    Funds provided for secondary vocational education will be 
distributed according to the formula in current Perkins law, 
which is based primarily on counts of low-income and disabled 
individuals. Funds provided for postsecondary education will be 
distributed according to the formula in current Perkins law 
which gives priority to institutions serving Pell Grant 
recipients.
    Adult education funds will be distributed by competitive 
grant awards.

Work force flex funds

    Through a collaborative process, the State will determine 
how to allocate the remaining 50 percent of the block grant 
funds. The purposes of the flex fund provisions are to assure 
that individuals and entities involved with work force training 
and those involved with work force education will work together 
to identify State priorities and the means of their achievement 
and to permit States flexibility to allocate funds based on 
their unique work force development needs.
    Specifically, States will have discretion in how they spend 
funds for work force development based on the industries in 
their States, various sectors of the existing work force, and 
the in-school population. For example, some States may 
determine that a higher percentage of funds should be directed 
toward education efforts provided through State and local 
educational agencies and, therefore, will allocate more money 
for those purposes. Or, some States may decide that these funds 
could better be used to support training efforts provided by 
private employers or training institutions. This flexibility in 
the allocation of funds will also allow States to utilize 
innovative alternatives such as vouchers to most efficiently 
and effectively deliver work force development services.
    The committee fully intends, however, that when and where 
the State determines that education services are necessary for 
the adequate training of eligible individuals, those services 
are to be provided through the work force education activities 
and are to be accompanied by funding to insure their delivery.
    The funds are also intended to encourage States to design 
activities that ``bridge'' the worlds of school and work, and a 
portion of the flex funds must be used for school-to-work 
activities. School-to-work activities are broadly defined in 
this act, incorporating such key elements as the integration of 
school-based and work-based learning, the integration of 
academic and occupational learning, the establishment of 
effective linkages between secondary and postsecondary 
education, the opportunity for youth participants to complete a 
career major, and assistance in the form of connecting 
activities that link each youth participant with an employer in 
an industry or occupation relating to his or her career major. 
States would have the discretion to develop such activities to 
meet the unique employer needs of their States and to allocate 
such funds as necessary.
    States which received implementation grants under the 
School-to-Work Opportunities Act, however, would be required to 
use a portion of the flex funds in order to support the 
continued development of their statewide school-to-work 
systems. Those States with grants would continue to fund the 
school-to-work activities in accordance with the terms of such 
grants. Given the fact that these grants provide limited 
Federal assistance, over a short period of time, the committee 
believes that continuing support for such a statewide system is 
not inconsistent with the goal of this act.

Economic development activities

    States that establish State and local work force 
development boards will also be permitted to use a portion of 
these funds for economic development activities, including 
customized assessments of the skills of workers and an analysis 
of the skill needs of employers in the State; upgrading the 
skills of incumbent workers; productivity and quality 
improvement training programs for small and medium-sized 
employers; recognition and use of voluntary, industry-developed 
skills standards; training activities in companies that are 
developing modernization plans in conjunction with State 
industrial extension service offices; and on-site, industry-
specific training programs supportive of industrial and 
economic development.

                     collaborative planning process

    Under the legislation, the Governor will seek the support 
and collaboration of a broad-based group of individuals with 
expertise in work force development in designing the State-
based system. This approach is modeled on the partnerships 
established under the School-to-Work Opportunities Act. This 
collaborative effort will include the State educational agency, 
representatives of business and industry, labor and workers, 
local elected officials, State officials responsible for 
vocational, adult and postsecondary education, economic 
development, veterans' employment, vocational rehabilitation, 
and other interested parties.
    The committee believes that local elected officials are an 
important part of the collaborative body responsible for 
developing the State's strategic plan. To the extent 
practicable, individuals participating in the process should 
represent urban, suburban and rural areas of the State, 
including those areas with expertise in assisting at-risk youth 
and unemployed adults.
    It is the expectation of the committee that this process 
will allow for true collaboration among the education, 
training, and employer communities in a way that has never been 
accomplished before. The success of any statewide work force 
development system will depend on a strong partnership among 
employers, educators, and government working together, and such 
cooperation cannot be legislated. Rather, the legislation seeks 
to provide strong incentives for all parties to ``ante up'' to 
the table and begin planning in a comprehensive fashion in 
order for the participants to share in the flex account funds.

Flex funds: In-State allocation

    Funds allocated through the collaborative process out of 
the flex account for work force employment activities, school-
to-work activities, and economic development activities will be 
added to the 25 percent allotment for that purpose and will be 
administered by the Governor.
    Funds allocated through the collaborative process out of 
the flex account for work force education will be added to the 
25 percent allocated for that purpose and will be administered 
by the State educational agency.

                              state plans

    The Governor will submit a single plan, outlining a 3-year 
strategy for work force development in the State. The plan will 
contain three parts:
          1. The strategic plan and allocation of the flexible 
        work force funds, developed by the Governor through a 
        collaborative process.
          2. The plan for the one-stop career center system and 
        work force employment activities, developed by the 
        Governor.
          3. The plan for work force education activities, 
        developed by the State educational agency.
    The State plan must be approved by the Governing Board if 
the plan contains the necessary information, reasonable effort 
was made to prepare through the collaborative process, and 
State benchmarks were negotiated in accordance with the act.
    State plans must address a number of fundamental issues 
essential to the implementation of a statewide work force 
development system. These include, for example:

Strategic plan and flexible work force activities

    1. A description of how the State will identify the current 
and future work force development needs of the industry sectors 
most important to the economic competitiveness of the State.
    2. An identification of the State goals and benchmarks and 
how they will make the system relevant and responsive to labor 
market and education needs at the local level.
    3. A description of how the funds made available through 
the 50 percent flex account will be allocated, and how the 
flexible work force activities--including school-to-work 
activities--will be carried out to meet the State goals and 
benchmarks.
    4. An identification of how the State will obtain the 
active and continuous participation of business, industry, and 
labor in the development and continuous improvement of the 
system.
    5. A description of how the State will eliminate 
duplication in the administration and delivery of services 
under this act.
    6. A description of the process the State will use annually 
to evaluate and continuously improve the performance of the 
system.
    7. An assurance that the funds made available under this 
title will supplement and not supplant other public or private 
funds.
    8. Evidence of collaboration and support among the 
Governor, business, industry and labor, local elected officials 
and key State officials in the development of the overall 
strategic plan.

Work force employment activities

    1. An identification and designation of substate areas, 
including urban and rural areas, to receive funds, which to the 
extent feasible shall reflect local labor market areas.
    2. A description of the basic features of a one-stop career 
center system.
    3. An identification of performance indicators relating to 
the State goals and benchmarks for work force employment 
activities.
    4. A description of the work force employment activities to 
be carried out.
    5. A description of the steps the State will take over the 
3 years covered by the plan to establish a statewide 
comprehensive labor market information system.
    6. A description of the steps that the State will take over 
the 3 years covered by the plan to establish a job placement 
accountability system.
    7. A description of the steps the State will take to 
segregate FUTA revenues from the block grant and how those 
funds will be used for job search, placement services, and 
labor market information.

Work force education

    1. A description of how the funds will be allocated among 
adult education providers, and among secondary and 
postsecondary vocational education programs.
    2. An identification of performance indicators relating to 
the State goals and benchmarks for work force education 
activities.
    3. A description of the work force education activities to 
be carried out.
    4. A description of how the State will address the adult 
education needs in the State.
    5. A description of how the State will disaggregate data 
relating to at-risk youth in order to adequately measure the 
progress of the State toward meeting the State goals and 
benchmarks relating to at-risk youth.
    6. A description of how the State will adequately address 
the needs of both at-risk youth who are in-school, and out-of-
school at-risk youth, through alternative education programs 
that teach to the same challenging academic, occupational, and 
skill proficiencies as are provided to in-school youth.
    7. A description of how the State will annually evaluate 
the effectiveness of the part of the plan with respect to work 
force education activities.
    8. A description of how the State will address the 
professional development needs of the State with respect to 
work force education activities.
    The committee intends that the development of the single, 
comprehensive plan will be accomplished through the close 
collaboration of all parties. Ideally, the collaborative 
process established to allocate the work force flex funds will 
be used to develop the remainder of the plan. Indeed, the 
elements of the strategic plan are applicable to both the work 
force employment and work force education activities and must 
be developed through the collaborative process.
    In addition to the strategic plan, the plan must also 
contain an elaboration of the State's approach to work force 
employment and work force education. The purpose behind the 
development of these two portions of the plan is to allow those 
individuals and agencies with the most expertise to concentrate 
on how best to implement training activities and the 
dissemination of labor market information on the one hand, and 
educational activities on the other hand. The intent is not to 
further separate the two functions from each other but to join 
them in a logical fashion. The committee anticipates that all 
parties should learn from and comment upon the development of 
each part of the plan so that each State develops a unified, 
integrated statewide plan. The success of the statewide system 
depends upon it.

                             accountability

    This act shifts accountability for Federal dollars from 
process to results. Rather than asking whether paperwork was 
filled out correctly and specific regulations were followed to 
the letter, the legislation focuses on whether individuals were 
prepared for and obtained meaningful employment. For the first 
time, States will be required to show specifically the number 
and kinds of jobs the training system has provided. States must 
also show the level of skills the work force has obtained. 
After all, the goal of any work force development system should 
be to improve skills and provide jobs. This legislation will 
require an accountability mechanism so that taxpayers will know 
precisely the return on Federal dollars. For example, taxpayers 
will know how many jobs are being provided by each State's work 
force development system. The committee believes that these 
minimum Federal requirements are reasonable quid pro quo for 
giving States maximum flexibility to design and implement their 
own systems.
    This act will require States to measure and report annually 
on benchmarks--measurable indicators of the progress the State 
has set out to achieve in meeting broad work force development 
goals related to employment, education, and earnings gains.
    Benchmarks related to employment and earning gains include, 
at a minimum, placement and retention in unsubsidized 
employment for one year, and increased earnings for 
participants. Benchmarks related to education include, at a 
minimum, student mastery of certain skills, including: academic 
knowledge and work readiness skills; occupational and industry-
recognized skills according to skill proficiencies for students 
in career preparation programs; placement in, retention in, and 
completion of secondary education; placement and retention in 
military service; and increased literacy skills. It is expected 
that States will develop additional benchmarks.
    In addition, States must, at a minimum, show how they are 
meeting these goals for welfare recipients, disabled 
individuals, older workers, at-risk youth, and dislocated 
workers. Displaced homemakers are specifically included in the 
definition of dislocated workers, and are to be considered as 
such. States may add benchmarks for additional targeted 
populations at their discretion, such as migrant and seasonal 
farmworkers, food stamp recipients, veterans, refugees, and 
other groups who are currently served by specific categorical 
programs.
    The Governing Board, through negotiations with States, must 
assess how the State's quantifiable benchmarks compare with 
model benchmarks established by the Governing Board and with 
benchmarks proposed by other States, and whether the benchmarks 
are sufficient to meet the State's goals. Through this 
negotiation process, the committee anticipated that States will 
set meaningful benchmarks that will lead them to achieve the 
goals set forth in this act.
    Finally, States must establish a job placement 
accountability system to maintain data relating to these 
measures, using existing quarterly wage records available 
through the unemployment insurance (UI) system. Only a few 
States currently utilize UI wage record data as a resource to 
measure the effectiveness of job training and vocational 
education programs, even though the data is highly reliable and 
easily accessible. In expanding the use of UI wage record data, 
however, provision should be made to protect the privacy of 
individuals. The committee believes that in order for States to 
be able to collect the data which will be useful in measuring 
progress toward meeting their goals and benchmarks, and to 
ensure the comparability of data on a national basis, such a 
system must be utilized.
                        incentives and sanctions

    While the legislation gives maximum flexibility to States 
to design comprehensive systems for work force development, the 
committee believes that strong measures are needed to both 
encourage States to meet goals and to penalize States that do 
not. By providing financial incentives, States will be 
encouraged to attain or exceed their goals and benchmarks. By 
the same token, the potential for decrease in funding if a 
State fails to reach its goals and benchmarks will be further 
incentive for States to improve their systems, thereby 
maximizing the return on Federal dollars. In this way, the 
legislation provides tangible consequences for States that 
succeed or fail in reaching their benchmarks. By contrast, 
current laws fail to provide either meaningful incentives or 
disincentives for performance as Federal funds continue to flow 
for training and education regardless of results.
    The Governing Board may award incentive grants of not more 
than $15 million annually to States that reach or exceed their 
benchmarks. Alternatively, the Governing Board may reduce the 
allotment for a State (not more than 10 percent) that fails to 
make measurable progress toward meeting its States benchmarks 
after 3 years. The Governing Board may attribute the State's 
failure to reach its benchmarks either to work force 
employment, work force education or flexible work force 
activities, and may reduce only that portion of the State's 
allotment for such activities. In this way, the Governing board 
may target more effectively those activities which have led to 
the State's poor performance, thereby allowing States to better 
focus subsequent efforts to improve their performance.
    Funds retained as a result of reductions may be used for 
allotments for incentive grants.

               indian employment and training activities

    The committee acknowledges the government-to-government 
relationship between the Federal Government and the Indian 
tribes and advances the policy of Indian self-determination by 
including provisions to address the unique employment and 
training needs of Indians and resource needs of Indian tribes.
    The committee is aware that Indians and Alaska Natives 
experience the highest unemployment rate of all other 
populations in the American work force. This is due, in large 
part, to a lack of Indian educational and employment training 
opportunities. As a result, the ability of Indians and Alaska 
Natives to locate and retain employment and successfully 
compete in the American work force is seriously impaired. 
Federal programs intended to address such needs have been 
successful at increasing employment training and opportunities 
for Indians and reducing the overall unemployment rates. 
Therefore, to preserve the benefits of existing Indian 
employment and training programs, the legislation contains 
provisions to consolidate training and education activities 
currently being provided to Indians in a manner that is 
consistent with the purpose of the act.
    The legislation provides that the Governing Board shall 
make grants to, or enter into contracts or cooperative 
agreements with, Indian tribes, organizations, and Alaska 
Native entities to provide consolidated training and related 
educational services, including vocational education, adult 
education, and literacy services. Such grants shall be 
authorized at funding levels consistent with existing laws.
    An office within the Federal partnership shall be 
established to administer such grant activities, including 
drafting regulations and policies in consultation with Indian 
organizations, providing administrative support, and providing 
technical assistance to improve the work force development 
services provided by such entities. The committee believes that 
such an office is necessary to effectively address local tribal 
concerns and has previously demonstrated an ability to assist 
Indians and Alaska natives to increase their academic, 
occupational, and literacy skills. The committee also 
encourages Indian tribes to consolidate employment, training, 
and education programs pursuant to the Indian Employment, 
Training and Related Services Demonstration Act of 1992.
    The committee further recognizes that Native Hawaiians have 
an economic status akin to Indians and Alaska natives which has 
resulted in a similar lack of employment and training 
opportunities for native Hawaiians. The committee notes that 
programs have been implemented which successfully address those 
special needs. Therefore, provisions are also included to 
enable Native Hawaiians to continue to receive employment 
training services at levels consistent with existing laws.

                    TITLE II.--TRANSITION PROVISIONS

                                waivers

    Conflicting regulations and differences in annual operating 
cycles are currently hampering the coordination of Federal 
programs and the delivery of needed services.
    Since it will require significant planning to move to the 
block grant approach outlined in this act, a 2-year transition 
period will be provided so that all States will have sufficient 
time to develop their unified State plans. In the meantime, the 
current programs will continue to be funded as they are now.
    However, States do need immediate flexibility to begin 
combining and consolidating programs and eliminating 
differences in program requirements. Therefore, this act 
provides authority for immediate up-front waivers for fiscal 
years 1996 and 1997 for the following purposes: (1) to address 
the high-priority needs of unemployed persons in the State or 
community involved for employment training or education 
services; (2) to improve efficiencies in the delivery of 
services; or (3) in the case of overlapping or duplicative 
activities, to combine programs and funding or to eliminate one 
program and increase the funding to the remaining program.
    These up-front waivers would also States or local entities 
to combine administrative funds from any of the to-be-
consolidated programs for the purpose of planning and 
developing the unified State plans that will be required in 
1997 and 1998.
                              applications

    A State seeking waivers may submit an application to the 
Secretary describing: (1) the requirement to be waived and the 
goal to be achieved through the waiver; (2) the actions the 
State will take to remove similar State requirements; (3) the 
activities to which the waiver will apply, including how 
activities may be continued under the State's system; (4) the 
number and type of persons to by affected by the waiver; and 
(5) evidence of support for the waiver request by the State 
agencies or officials with jurisdiction over the requirement to 
be waived. A local entity will submit a similar application to 
the State. With respect to waivers for work force education 
activities, ``local entity'' means a local educational agency, 
``State'' means the State educational agency, and ``Secretary'' 
means the Secretary of Education. With respect to waivers for 
work force employment activities, ``local entity'' means the 
local public or private entity responsible for carrying out the 
activity, ``State'' means the Governor, and ``Secretary'' means 
the Secretary of Labor or the Secretary of Health and Human 
Services--whoever carries out the activity.
    Waivers expire on June 30, 1998, except in the case of a 
State that fails to submit an interim plan--in which case its 
waiver expires on September 30, 1997.

                                approval

    A State must decide whether to submit a local entity's 
request for a waiver within 30 days. After 30 days, the local 
entity may submit its request directly to the Secretary. The 
Secretary must approve or disapprove a State or local request 
within 45 days. After 45 days, the request will be deemed 
approved.

                         waivers not authorized

    Requirements relating to the following Federal provisions 
may not be waived: (1) the allocation of funds to States, local 
entities, or individuals; (2) public health or safety, civil 
rights, occupational safety and health, environmental 
protection, displacement of employees, or fraud and abuse; (3) 
the eligibility of an individual for participation in a covered 
activity, except in a case where a State or local entity can 
demonstrate that such individual will participate in a similar 
covered activity; or (4) supplement not supplant requirements. 
In addition, the maintenance of effort requirement for work 
force education activities cannot be waived.

Interim State plans

    In program year 1997, all States would be required to 
present a draft of their unified plan to the Federal 
partnership. If a State is ready to implement the new work 
force development system in the first year of transition, then 
the partnership would immediately authorize the full 
integration of program funds and activities as outlined in the 
block grant.
    If a State is not ready to fully implement the new work 
force development system, the partnership will review the draft 
plan, make recommendations, and provide technical assistance. 
Up-front waivers will continue to be available. In addition, no 
other applications or plans required by other acts will be 
required in fiscal years 1996 or 1997. Funding decisions for 
activities under those acts will be based on the last 
application or plan submitted.
    The legislation extends the authorities for the Older 
American Community Service Employment Act, the Carl D. Perkins 
Vocational and Applied Technology Education Act, and the Adult 
Education Act. This extension is necessary to continue the 
authorization of appropriations for these three laws through 
the transition period. These laws will be repealed on July 1, 
1998.
    The committee believes that the transition process allows 
States that have made significant progress toward creating a 
comprehensive work force development system to utilize the 
flexibility of the block grant at the earliest possible stage. 
At the same time, States that need more time and assistance in 
integrating their programs are provided the opportunity to 
submit draft plans and receive feedback while there is still 
time to work on the final proposal.
    Beginning July 1, 1998, the block grant program will be in 
place and States will have submitted their unified work force 
development plans.

Job Corps and At-Risk Youth

    This subtitle is intended to provide a comprehensive 
strategic approach for meeting the work force development needs 
of at-risk youth. The legislation provides an authorization of 
$2.1 billion for Jobs Corps and other work force preparation 
activities directed specifically for at-risk youth.

                Chapter 1--General Job Corps Provisions

    The committee believes the Job Corps program is in need of 
reform. This view is based not only on testimony provided to 
the committee during hearings in January 1995, but on 
information provided to the committee subsequently as well. For 
example, on June 30, 1995, the General Accounting Office issued 
a report entitled Job Corps: High Costs and Mixed Results Raise 
Questions About Program's Effectiveness.
    The legislation retains the essential feature of Job Corps. 
Assistance will continue to be provided to at-risk youth who 
need and can benefit from such an unusually intensive program, 
operated in a group setting. However, primary responsibility 
for the operation of Job Corps centers is transferred to the 
States. The committee believes that States, rather than the 
Federal Government, are in the best position to manage and 
operate Job Corps centers that are integrated with their 
statewide work force development systems. To achieve this, each 
Job Corps center must be linked to the one-stop center and 
other local training and education efforts. Finally, it is the 
intention of the committee that the Governor of each State be 
given the responsibility for contracting the operation of the 
Job Corps centers.
    In addition, during the transition period, a national audit 
of the Job Corps program will be performed. Based on the 
results of the audit and other criteria, the Secretary of Labor 
is directed to close 25 underperforming Job Corps centers. That 
number reflects the approximate number of centers identified by 
the Department of Labor and the Department's inspector general 
that have been chronically underperforming and have not been 
cost-effective.
    The criteria used to determine which centers will be closed 
is as follows:
          1. Whether a given center has consistently received 
        low performance measurement ratings under the 
        Department of Labor or inspector general Job Corps 
        rating system.
          2. Whether the center is among those that have 
        experienced the highest number of serious incidents of 
        violence or criminal activity.
          3. Whether or not the center requires the largest 
        funding for rehabilitation and repair.
          4. The relative and absolute cost of the centers 
        compared to all other centers.
          5. Whether the center is among those with the least 
        State and local support.
    Job Corps centers in the planning and construction phase as 
of the date of enactment will not be included in the audit.

  Chapter 2--Other Work Force Preparation Activities for At-Risk Youth

    The committee believes that States should provide, in 
addition to Job Corps, other education and training activities 
specifically for at-risk youth. Of the $2.1 billion authorized 
under this subtitle, all funds not allocated to the operation 
of Job Corps centers will be distributed to the States for such 
work force preparation activities.
    These activities may include, for example, grants to carry 
out programs to assist out-of-school at-risk youth in 
participating in school-to-work programs. Another possible use 
of funds would be for a State to make grants to assist public 
or private entities in providing work-based learning as a 
component of a school-to-work program. This could be in the 
form of a summer job, provided that the job is linked to a 
year-round school-to-work program. These are examples of the 
types of work force development activities that States may 
develop for at-risk youth.
    It is the committee's intent that States be given the 
maximum flexibility to design and implement programs for at-
risk youth in order to best meet the unique needs of this 
population. However, in order to receive funds, each State must 
describe in its State plan how such activities will be carried 
out to meet the State's goals and benchmarks. In addition, 85 
percent of a State's funds must be distributed to entities at 
the local level.

                    TITLE III.--NATIONAL ACTIVITIES

                         federal administration

    Consolidation and elimination of duplicative administrative 
entities must begin at the Federal level and continue at the 
State and local levels. The overwhelming majority of the 
programs consolidated under this act are currently administered 
by the Department of Education (DOE) and the Department of 
Labor (DOL).

                   work force development partnership

    The legislation establishes the Work Force Development 
Partnership to administer the act. Building upon the existing 
School-to-Work Office, which was designed to be jointly 
administered by both Departments, this proposal goes one step 
further and actually transfers DOL and DOE personnel, property 
and relevant assets to the Partnership.
    By limiting the Partnership to existing resources, this 
proposal does not permit any new Federal resources to be used 
to administer the block grant. Consequently, this act would 
eliminate the Office of Employment and Training in the 
Department of Labor, and the Office of Vocational and Adult 
Education in the Department of Education. Any remaining 
functions not transferred by this act would be referred to 
other offices or departments. The legislation requires that 
such a merger result in a one-third reduction in the number of 
staff necessary to perform the functions associated with the 
Federal administration of this act.
    Consolidating existing functions into a streamlined Federal 
entity for work force development, with broad policy 
objectives, will allow the block grant program to be 
administered by a functionally integrated team. However, the 
Secretary of Labor and the Secretary of Education would retain 
authority for final approval of State plans and distribution of 
funds.

                            governing board

    The Work Force Development Partnership will be headed by a 
Governing Board composed of 13 members, including 7 
representatives of business and industry, 2 representatives of 
labor and workers, 1 representative of adult education 
providers, 1 representative of vocational education providers, 
and 2 Governors, appointed by the President with the advice and 
consent of the Senate. The Governing Board shall be appointed 
not later than September 30, 1996.
    The duties of the Governing Board include:
          1. Overseeing the development of a national labor 
        market information system and job placement 
        accountability system.
          2. Establishing model benchmarks, taking into account 
        existing work force development benchmark efforts at 
        the State level.
          3. Negotiating benchmarks with the States.
          4. Reviewing and approving State plans.
          5. Reviewing reports on the States' progress toward 
        their benchmarks.
          6. Preparing and submitting an annual report to 
        Congress on the absolute and relative performance of 
        States progress toward their benchmarks.
          7. Awarding incentive grants.
          8. Issuing sanctions.
          9. Disseminating information on best practices.
          10. Performing the duties relating to the Job Corps.
          11. Reviewing other federally funded work force 
        development programs.
          12. Reviewing and approving the transition work plan 
        submitted by the Secretaries of Labor and Education.
          13. Overseeing all activities of the Federal 
        partnership.

          national assessment of vocational education programs

    The committees believes that the National Assessment of 
Vocational Education Programs has been a valuable resource that 
has guided many reauthorizations of the Carl D. Perkins 
Vocational and Applied Technology Education Act. Therefore, 
this legislation continues the authority for the Office of 
Educational Research and Improvement (OERI) at the U.S. 
Department of Education to contract with an independent group 
to conduct the assessment. OERI shall appoint an independent 
advisory panel to advise it on the implementation of the 
assessment.
    The assessment will include descriptions and evaluations 
of: (1) the effect of this act on State and tribal 
administration of vocational education programs and on local 
vocational education practices; (2) expenditures at Federal, 
State, tribal, and local levels to address program improvement 
in vocational education; (3) preparation and qualifications of 
teachers; (4) participation in vocational education programs; 
(5) academic and employment outcomes of vocational education; 
(6) employer involvement in, and satisfaction with, vocational 
education programs; (7) the effect of the act's measures of 
accountability on the delivery of vocational education 
services; (8) the degree to which minority students are 
involved in vocational student organizations.
    The Secretary of Education will submit interim and final 
reports to Congress in 2000.

  national center for research in education and work force development

    The committee has also relied heavily on the research and 
data provided by the National Center for Research in Vocational 
Education, located at the University of California at Berkeley. 
Therefore, the committee has continued the authority for this 
grant and broadened its focus to apply to work force 
development issues broadly. The Berkeley center may continue to 
be funded through this act until its grant period ends on 
December 31, 1997.
    For the period beginning in 1998, the Governing Board may 
award a new grant on a competitive basis to an institution of 
higher education, public or private nonprofit organization or 
agency, or a consortium to conduct research and provide 
technical assistance in order to increase the effectiveness and 
improve the implementation of work force development programs. 
The national center's areas of focus are to include: (1) 
combining academic and vocational education; (2) connecting 
classroom instruction with work-based learning; (3) creating a 
continuum of educational programs which provide multiple exit 
points for employment; (4) establishing high-quality support 
services for students; (5) developing new models for 
remediation of basic academic skills; (6) identifying ways to 
establish links among educational and job training programs at 
State and local levels; (7) creating new models for career 
guidance, counseling, and information; (8) evaluating economic 
and labor market changes that will affect work force needs; (9) 
preparing teachers and professionals; (10) obtaining 
information on practices in other countries that may be adapted 
for use in the United States; (11) providing assistance to 
States and local entities in developing and using systems of 
performance measures and standards; and (12) maintaining a 
clearinghouse to provide information about the condition of 
systems and programs funded under this act.
    The national center will also identify current needs for 
research and technical assistance and annually provide a 
summary report to Congress and the Governing Board on its 
results and findings.

                national labor market information system

    It has become increasingly important, due to expanded 
international competition, technological advances, and 
structure changes in the U.S. economy, that reliable, timely 
and relevant information on key economic and employment 
conditions be developed. Job seekers and employers alike need 
the most reliable information available about jobs, hours, 
wages and employer requirements for worker skills in order to 
make employment, career and economic development decisions. 
Currently, the collection of labor market information is 
fragmented, funding is irregular, and relevance of much of the 
data for job seekers, employers, and administrators of training 
and education programs at the local level is questionable.
    This legislation consolidates the myriad, far flung 
information activities and funds, now scattered over at least 
five separate Federal agencies, into a streamlined system with 
the Bureau of Labor Statistics (BLS) in the leadership role. 
The Governing Board, with the principal assistance of the BLS, 
and other Federal agencies where appropriate, will oversee the 
development, maintenance and continuous improvement of a 
nationwide integrated labor market information system. The 
employment and consumer information provided through this 
system must be current, comprehensive, automated, accessible 
and easy for job seekers and employers to understand. The types 
of employment information to be provided include, for example, 
job vacancies, wages, benefits and skill requirements of 
occupations, as well as current and projected employment 
opportunities and trends by industry and occupation. The types 
of consumer information to be provided include, for example, 
the cost and effectiveness of training and education providers, 
including the percentage of program completion, the acquisition 
of skills and the job placement and earnings of participants, 
and other relevant information that may be useful for 
individuals in making informed choices among providers.
    It is the committee's intent that the development and 
dissemination of labor market information be focused at the 
point where it will be most useful--at the state and local 
level through the one-stop career centers. Therefore, the 
legislation promotes the development of good state and local 
information by creating a true and unique partnership between 
the Governing Board and the BLS, at the federal level, and with 
the States and the State Labor Market Information (LMI) offices 
at the state and local level. The state LMI offices are on the 
front lines for data requests from employers and the public 
and, thus, should be involved in the Governing Board's planning 
and data design activities for labor market information. This 
will help to ensure that the needs of real people in local 
labor markets are maintained as a top priority.
    To complement this partnership, the legislation recognizes 
in law the Federal interest and role in State and local labor 
market information. It also gives the Governing Board a mandate 
for State and local data gathering activities, something that 
the BLS and other Federal agencies involved in LMI activities 
do not currently enjoy. Within these parameters, States are 
given sufficient flexibility to design their statewide labor 
market information systems to meet local needs, while ensuring 
the comparability of the data across State lines.

        TITLE IV.--AMENDMENTS TO THE REHABILITATION ACT OF 1973

    Title I of the Rehabilitation Act authorizes the vocational 
rehabilitation program, which provides counseling, training and 
employment services for individuals with disabilities. Each 
State operates vocational rehabilitation programs, which 
provide access to qualified rehabilitation counselors who 
assist individuals with disabilities, especially those with 
severe disabilities, in planning for employment, securing 
training, and acquiring jobs. The Federal Government supplies 
about 78 percent of the funding for vocational rehabilitation.
    The committee believes that vocational rehabilitation 
should be coordinated as much as possible with the 
comprehensive work force development system developed under 
this bill. The amendments to title I of the Rehabilitation Act 
of 1973 make it clear that services funded under that act are 
to be integral components of a seamless system of work force 
development. The vocational rehabilitation program therefore 
becomes a subset of a larger employment and training system in 
a State, but retains its own statutory authority and funding 
stream.
    Vocational rehabilitation programs represent ``one-stop'' 
centers that provide core services and more, including 
referrals and coordination with other entities. These programs 
sometimes co-locate with other job training programs. Under the 
comprehensive ``one-stop'' system developed in this 
legislation, vocational rehabilitation services for individuals 
with severe disabilities may or may not be provided in the same 
facilities in which core job training services are provided. 
The key is that individuals receive job training and placement 
assistance and referrals from other parts of the system, not 
that all services they receive occur in one location. 
Throughout the job training system those involved in 
coordinating and arranging for these services would follow the 
same procedures and policies when interacting with applicants 
and clients.
    One intent of the legislation is to offer individuals with 
disabilities access to job training and employment assistance 
within the system--not outside of it. The legislation also 
recognizes the need to make core services available to 
individuals with disabilities and to offer specialized and/or 
intensive services to individuals with severe disabilities who 
need such services.
    To address the limitations of current job training options 
with regard to individuals with disabilities the bill took a 
two-pronged approach. The first prong addresses access to one-
stop centers of the work force development system. In title I 
of the bill individuals with disabilities are offered access to 
the same core services and optional services as other 
individuals. Title I specifies core services that are to be 
made available and requires States to report, through 
benchmarks, on how well they have done in serving individuals 
with disabilities and four other groups of individuals. 
Furthermore, the interests of individuals with disabilities are 
to be represented on planning bodies (e.g., work force 
development boards).
    The second prong of the approach addressed the specialized 
and intensive services some individuals with disabilities 
require in order to prepare for, secure, or advance in 
employment. The amendments to title I of the Rehabilitation Act 
made in this bill do not modify the current authorization of 
appropriations provisions and do not modify provisions related 
to the administrative structure and designated agency status 
and authority of State vocational rehabilitation agencies.
    The amendments in this bill provide for the linkage and 
integration of the activities of State vocational 
rehabilitation programs and State work force development 
systems. Such linkages and integration continue the 
availability of specialized and/or intensive services to 
individuals with disabilities who need such services through 
vocational rehabilitation programs. Such linkages and 
integration also allow technical assistance and training from 
State vocational rehabilitation programs to be shared with 
other components of the State work force development system, 
particularly staff of one-stop centers, to assist them 
appropriately and effectively in serving individuals with 
disabilities directly and referring individuals with 
disabilities who require specialized or intensive services to 
vocational rehabilitation programs. Thus, under the work force 
development system, individuals with disabilities would be able 
to access core services and necessary auxiliary aids and 
services through the system's one-stop centers, and if they 
have highly specialized needs, they would receive assistance 
from qualified rehabilitation professionals, who may or may not 
be co-located with a local one-stop site.
    Some specific examples of ``linking'' provisions are: The 
legislation adds definitions for three terms--``statewide work 
force development system,'' ``work force development 
activities,'' and ``work force employment activities''--to the 
``Definitions'' section of the Rehabilitation Act, defining 
them as they are defined in title I of this bill. The 
legislation gives the Commissioner of the Rehabilitation 
Services Administration the authority to provide consultative 
services and technical assistance to public and nonprofit 
private agencies to achieve the meaningful participation of 
individuals with disabilities in the statewide work force 
development system. The reporting and evaluation provisions in 
the Rehabilitation Act are amended to bring them in line with 
reporting and evaluation obligations within the work force 
development system, and the standards and indicators 
established under title I of the Rehabilitation Act, to the 
maximum extent appropriate, are required to be consistent with 
benchmarks established under title I of the bill. The 
legislation adds a provision encouraging links between members 
of a State Vocational Rehabilitation Council and any boards 
that may be established.
    Some amendments to the Rehabilitation Act repeal, 
consolidate, or revise provisions, especially State grant 
provisions under title I of the Rehabilitation Act. The 
committee adopted these amendments to facilitate coordination 
and clarify the relationship between vocational rehabilitation 
agencies and other components of the work force development 
system, to make it easier for States to understand and comply 
with requirements, and to enhance the delivery of services 
within the work force development system. Thirteen of 35 
current State grant provisions were deleted.
    The committee also adds a requirement to refer individuals 
with disabilities, who are not eligible for services when an 
order of selection is in effect, to other components of the 
work force development system; a requirement to report 
statewide needs assessment results to the Commissioner, 
reporting information about individuals with the most severe 
disabilities separately if an order of selection is in effect; 
and a requirement to describe training that will be offered to 
vocational rehabilitation personnel and personnel of the 
providers of core services in the work force development 
system.
    The legislation streamlines the provisions pertaining to 
personnel development, especially the scope of reporting 
requirements. In an effort to reaffirm the need to spend 
vocational rehabilitation dollars on job training and 
employment, the committee deletes the authority for designated 
State vocational rehabilitation agencies to spend funds from 
title I of the Rehabilitation Act on construction or surgery. 
With regard to the obligation for vocational rehabilitation 
agencies to identify comparable benefits and services prior to 
expending rehabilitation dollars for authorized services, the 
committee deleted the exception for ``any individual at extreme 
medical risk.''
    The committee did not amend titles II through VIII of the 
Rehabilitation Act, nor the provisions authorizing the Client 
Assistance Program.
      TITLE V.--AMENDMENTS TO THE IMMIGRATION AND NATIONALITY ACT

    It is the committee's intent that refugees, along with all 
individuals seeking employment, be served through the statewide 
work force development system established under this bill. 
Currently, employment-related services for refugees are 
provided as part of a comprehensive package of resettlement 
services provided through the Refugee Social Services and 
Targeted Assistance program administered by the Office of 
Refugee Resettlement (ORR). This integrated package of 
adjustment services includes services such as health screening, 
English language instruction, cross-cultural orientation, 
vocational training, and employment services. According to the 
Department of Health and Human Services, approximately 49.2 
percent of the funding for this program in fiscal year 1994 was 
directly related to employment and training.
    It is not the intent of this committee, however, to 
eliminate any services currently provided to refugees as a part 
of the Targeted Assistance program that are not directly 
related to employment assistance. Therefore, the amendments 
made to the Immigration and Nationality Act in this act would 
only prohibit funds authorized under that program from being 
used for work force employment activities.

  TITLE VI.--REPEALS OF EMPLOYMENT AND VOCATIONAL AND ADULT EDUCATION 
                                PROGRAMS

    The bill will repeal 90 programs contained in the following 
statutes:
    The following programs will sunset immediately upon 
enactment:
          State Legalization Impact Assistant Grant (SLIAG)
          Title II of Public Law 95-250
          Displaced Homemakers Self-Sufficiency Assistance Act
          Appalachian Vocational and Other Education Facilities 
        & Operations
          Job Training for the Homeless Demonstration Project
          Section 5322 of title 49, U.S.C.
          Subchapter I of chapter 421 of title 49, U.S.C.
    The following programs will sunset on July 1, 1998:
          Food Stamp Employment and Training
          Job Training Partnership Act
          Carl Perkins Vocational and Applied Technology 
        Education Act
          Adult Education Act
          Job Opportunities and Basic Skills (JOBS)
          Trade Adjustment Assistance (TAA), sections 235 and 
        236
          NAFTA-Transitional Adjustment Assistance
          Wagner-Peyser Act
          Adult Education for the Homeless
          Senior Community Service Employment Program (SCSEP), 
        title V of Older Americans Act
          School-to-Work Opportunities Act

                            V. Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 21, 1995.
Hon. Nancy Landon Kassebaum,
Chairman, Committee on Labor and Human Resources,
U.S. Senate, Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
reviewed S. 143, the Workforce Development Act of 1995, as 
ordered reported by the Senate Committee on Labor and Human 
Resources on June 21, 1995.
    Enactment of S. 143 would affect direct spending by 
repealing mandatory job training programs. Therefore, pay-as-
you-go procedures would apply to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Christi 
Hawley.
            Sincerely,
                                              James L. Blum
                                             (for June E. O'Neill).

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    1. Bill Number: S. 143.
    2. Bill Title: Workforce Development Act of 1995.
    3. Bill Status: As ordered reported by the Senate Committee 
on Labor and Human Resources on June 21, 1995.
    4. Bill Purpose: S. 143 would repeal the authorizations of 
appropriations for many education and job training programs, 
and would modify other education and labor programs. In place 
of the programs repealed, two new state grant programs would be 
established beginning July 1, 1998: one for work force 
employment and education, and one for at-risk you activities. 
The bill also would establish a governmental corporation to 
administer the new grant programs and would provide for 
transitional activities for states and the federal government 
beginning in 1996. The corporation would be governed by a Board 
of Directors consisting of the Secretaries of Labor and 
Education and other members representing industry and labor.
    5. Estimated cost to the Federal Government: Most of the 
spending that would occur under S. 143 would be subject to the 
availability of appropriated funds. For purposes of this 
estimate, CBO assumes that the bill will be enacted by the end 
of this fiscal year, and that the funds authorized by the bill 
for the 1996-2000 period will be appropriated. Estimated 
outlays are based on historical spending patterns of programs 
that are similar to the block grants created by the bill.
    This bill would affect direct spending by repealing certain 
mandatory programs including Food Stamp Employment and 
Training, Job Opportunities for Basic Skills, and Trade 
Adjustment Assistance Training programs.
    The following table summarizes the estimated impact of the 
bill on direct spending. Direct spending for training and 
child-care programs affected by this bill would total $5.7 
billion in outlays over the five years from 1996 to 2000, 
compared with $9.8 billion under current law. Table 1 
(attached) shows these direct spending effects through 2002.

                                          DIRECT SPENDING UNDER S. 143                                          
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                          1995     1996     1997     1998      1999       2000  
----------------------------------------------------------------------------------------------------------------
  Projected Spending for Affected Training and Child-                                                           
            Care Programs Under Current-Law                                                                     
                                                                                                                
Trade adjustment assistance training:                                                                           
    Estimated budget authority........................      125      129      116      126         92         92
    Estimated outlays.................................      102      126      125      122        115         99
Job Opportunities for basic skills:                                                                             
    Estimated budget authority........................    1,300    1,000    1,000    1,000      1,000      1,000
    Estimated outlays.................................      980      938      949      959        969        970
AFDC child care (JOBS portion):                                                                                 
    Estimated budget authority........................      605      640      675      715        750        795
    Estimated outlays.................................      605      640      675      715        750        795
Food stamp employment and training:                                                                             
    Estimated budget authority........................      160      163      165      168        171        174
    Estimated outlays.................................      160      163      165      168        171        174
                                                       ---------------------------------------------------------
Total projected spending under current law:                                                                     
    Estimated budget authority........................    2,190    1,932    1,956    2,009      2,013      2,061
    Estimated outlays.................................    1,847    1,867    1,914    1,964      2,005      2,038
                                                       =========================================================
                   Proposed Changes                                                                             
Program repeals:                                                                                                
    Trade adjustment assistance:                                                                                
        Estimated budget authority....................  .......  .......  .......     -126        -92        -92
        Estimated outlays.............................  .......  .......  .......      -38        -84        -99
    Job Opportunities for basic skills (JOBS):                                                                  
        Estimated budget authority....................  .......  .......  .......     -250     -1,000     -1,000
        Estimated outlays.............................  .......  .......  .......     -240       -969       -970
    JOBS child care:                                                                                            
        Estimated budget authority....................  .......  .......  .......     -134       -563       -596
        Estimated outlays.............................  .......  .......  .......     -134       -563       -596
    Food stamp employment and training:                                                                         
        Estimated budget authority....................  .......  .......  .......      -40       -171       -174
        Estimated outlays.............................  .......  .......  .......      -40       -171       -174
                                                       ---------------------------------------------------------
    Subtotal, program repeals:                                                                                  
    Estimated budget authority........................  .......  .......  .......    --550     -1,826     -1,862
    Estimated outlays.................................  .......  .......  .......     -452     -1,787     -1,839
                                                       =========================================================
Related welfare effects:                                                                                        
    Family support payments:                                                                                    
        Estimated budget authority....................  .......  .......  .......       21        119        260
        Estimated outlays.............................  .......  .......  .......       21        119        260
    Food stamps:                                                                                                
        Estimated budget authority....................  .......  .......  .......       29        162        277
        Estimated outlays.............................  .......  .......  .......       29        162        277
    Earned income tax credit:                                                                                   
        Estimated budget authority....................  .......  .......  .......  .......         -7        -39
        Estimated outlays.............................  .......  .......  .......  .......         -7        -39
    Medicaid:                                                                                                   
        Estimated budget authority....................  .......  .......  .......  .......         10         61
        Estimated outlays.............................  .......  .......  .......  .......         10         61
    Subtotal, related welfare effects:                                                                          
        Estimated budget authority....................  .......  .......  .......       50        284        559
        Estimated outlays.............................  .......  .......  .......       50        284        559
                                                       ---------------------------------------------------------
    Total changes:                                                                                              
        Estimated budget authority....................  .......  .......  .......     -500     -1,542     -1,303
        Estimated outlays.............................  .......  .......  .......     -402     -1,503     -1,280
                                                       =========================================================
 Direct Spending for Affected Training and Child Care                                                           
                 Programs Under S. 143                                                                          
                                                                                                                
        Estimated budget authority....................    2,190    1,932    1,956    1,459        187        199
        Estimated outlays.............................    1,847    1,867    1,914    1,512        218        199
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding.                                                               

    The following table shows discretionary spending under S. 
143 with and without adjustments for inflation where such sums 
as necessary are authorized. When inflation is considered, 
authorizations of appropriations total $45.2 billion over the 
1996-2000 period, as compared with $38.3 billion under current 
law. When inflation is not considered, the authorizations of 
appropriations total $44.3 billion over the 1996-2000 period, 
as compared with $34.7 billion under current law. Tables 2 and 
3 (attached) provide details on the costs and savings 
associated with individual provisions.

                   DISCRETIONARY SPENDING UNDER S. 143                  
                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                      1995     1996     1997     1998     1999     2000 
------------------------------------------------------------------------
 AUTHORIZATIONS OF                                                      
  APPROPRIATIONS                                                        
 WITH ADJUSTMENTS                                                       
   FOR INFLATION                                                        
                                                                        
Authorizations of                                                       
 appropriations                                                         
 under current                                                          
 law:                                                                   
    Estimated                                                           
     authorization    8,563    8,412    7,140    7,394    7,649    7,737
    Estimated                                                           
     outlays......    7,903    8,304    8,214    7,416    7,398    7,602
Total proposed                                                          
 change:                                                                
    Estimated                                                           
     authorization       --      425    1,997    1,697    1,416    1,327
    Estimated                                                           
     outlays......       --       76      578    1,563    1,396    1,489
Authorizations of                                                       
 appropriations                                                         
 under S. 143:                                                          
    Estimated                                                           
     authorization    8,563    8,837    9,137    9,092    9,065    9,064
    Estimated                                                           
     outlays......    7,903    8,380    8,793    8,980    8,794    9,091
 AUTHORIZATIONS OF                                                      
  APPROPRIATIONS                                                        
      WITHOUT                                                           
  ADJUSTMENTS FOR                                                       
     INFLATION                                                          
                                                                        
Authorizations of                                                       
 appropriations                                                         
 under current                                                          
 law:                                                                   
    Estimated                                                           
     authorization                                                      
     s............    8,563    8,142    6,684    6,684    6,684    6,531
    Estimated                                                           
     outlays......    7,903    8,279    7,976    6,975    6,714    6,666
Proposed changes:                                                       
    Estimated                                                           
     authorization                                                      
     s............       --      411    1,870    2,409    2,386    2,538
    Estimated                                                           
     outlays......       --       74      551    1,511    2,052    2,415
Authorizations of                                                       
 appropriations                                                         
 under S. 143:                                                          
    Authorization                                                       
     level........    8,563    8,553    8,553    9,092    9,070    9,070
    Estimated                                                           
     outlays......    7,903    8,353    8,528    8,487    8,766    9,081
------------------------------------------------------------------------
Components may not sum to totals due to rounding.                       
Note.--Authorizations of Education programs assume a one-year extension 
  as provided under the General Education Provisions Act (GEPA).        

    The costs of this bill fall within budget functions 500 and 
600.
    6. Basis of estimate:

Direct Spending

    S. 143 would repeal existing mandatory programs, including 
Food Stamp Employment and Training, Job Opportunities for Basic 
Skills, and Trade Adjustment Assistance Training programs 
effective July 1, 1998.
    Trade Adjustment Assistance.--This bill would repeal Trade 
Adjustment Assistance training programs beginning July 1, 1998. 
This repeal would save $0.2 billion in outlays from 1998-2000. 
Cash benefits for trade adjustment assistance are not repealed 
by S. 143. Under current law, a displaced worker must be in a 
training program in order to receive cash benefits, but waivers 
of this requirement are permitted. Therefore, CBO assumed that 
the repeal of the training programs would not disrupt the cash 
benefit program.
    Job Opportunities and Basic Skills (JOBS) and Food Stamp 
Employment and Training.--The bill would repeal the Job 
Opportunities and Basic Skills Training (JOBS) and Food Stamp 
Employment and Training programs effective July 1, 1998. The 
JOBS program is a capped entitlement to states for providing 
training to recipients to Aid to Families with Dependent 
Children (AFDC). The Food Stamp Employment and Training program 
provides mostly job search and job search training to food 
stamp recipients. Under the Balanced Budget Act, spending in 
both programs in considered mandatory. In place of these 
programs, the bill would designate welfare recipients as a 
priority group to receive services under the new discretionary 
block grant.
    As a general rule, CBO does not project savings in 
mandatory programs that would depend on future appropriations 
for discretionary program. Thus, in estimating the budgetary 
effects of repealing the two mandatory job training programs, 
CBO includes effects on other entitlement programs from those 
repeals. CBO does not include potential saving that could 
result if appropriations are provided for the discretionary 
block grants authorized by this bill and if services are 
provided to the persons who would have received them under the 
repealed program.
    Repealing the JOBS program would result in $240 million in 
outlay savings in fiscal year 1998 and about $970 million in 
each fiscal year thereafter. Additional savings and costs would 
be associated with the interactions between JOBS and other 
entitlement programs. Because under S. 143 spending would no 
longer be required for job training for AFDC recipients, AFDC 
recipients who would otherwise have been enrolled in job and 
training programs with guaranteed child care would no longer 
have to be provided child care services. CBO estimates this 
reduction in AFDC child care services would result in outlay 
savings of $134 million in fiscal year 1998, increasing to 
about $600 million in 2000.
    Under the Food Stamp Employment and Training program, each 
state currently receives a share of $75 million dollars each 
fiscal year, plus a 50 percent match on any additional 
expenditures for program and participant costs, including 
transportation and child care. CBO estimates that repealing the 
Food Stamp Employment and Training program effective in July 
1998 would save the federal government $40 million in 1998, 
$171 million in 1999, and $174 million in 2000 in outlays for 
that program.
    The savings from repealing JOBS and Food Stamp Employment 
and Training would be partially offset by increased costs in 
other welfare programs. Research has shown that training and 
work programs for AFDC and food stamp recipients help some 
recipients leave welfare faster than they would have without 
the programs, generating savings in AFDC, Food stamps, and 
Medicaid, and small costs in the Earned Income Tax Credit. In 
addition, food stamp benefits are reduced for individuals who 
do not comply with the work requirements of the Food Stamp 
Program.
    If individuals who are served in these mandatory job 
training programs under current law would continue to be served 
under the new block grant, benefit payments relative to current 
law would remain unchanged. In addition, with this 
participation the costs of child care under AFDC would not be 
affected.
    Vocational Rehabilitation Services.--Funds for the basic 
state grants for vocational rehabilitation services authorized 
under Title I of the Rehabilitation Act are considered 
mandatory spending under the Balanced Budget Act. S. 143 would 
make many changes to this grant program. current state 
requirements would be altered to streamline and coordinate the 
program with other work force development programs established 
in this bill. In 1995, the basic state grant program was funded 
at $2.1 billion. The revised program authorized by S. 143 would 
retain the current legislative language for the program's 
funding mechanism. Each year's authorized funding level would 
be the preceding year's appropriation level adjusted for 
projected inflation. Because this funding level would not be 
altered, there would be no direct spending effect from the 
programmatic changes to the state grant program. Also, the 
authorization for the unfunded innovation and development 
grants established under Title I of the Rehabilitation Act 
would be repealed. This repeal would not affect projected 
spending because no funds were included in the baseline 
projections for the unfunded program.

Authorizations of appropriations

    Title I.--Title I of this bill would establish a new 
program of grants to states for work force employment and 
education activities. If the programs are funded at the 
authorized levels, new budget authority for these grants would 
total $7.0 billion a year in fiscal years 1998-2001.
    Title II.--This title would authorize work force 
preparation activities for at-risk youth, including the 
operation of Job Corps Centers. The grant program would be 
authorized at $2.1 billion for fiscal years 1998-2001. Funds 
are to be appropriated on a forward-funded or program-year 
basis; funds would become available July 1 of the year for 
which funds were appropriated. Because JTPA youth programs are 
currently funded in this manner, estimated outlays reflect the 
spending patterns of the current programs.
    Title II also contains provisions to reauthorize through 
fiscal year 1998 the following programs: Title V of the Older 
Americans Act (the Older Americans Community Service Employment 
Program), the Carl Perkins Vocational and Applied Technology 
Act, and the Adult Education Act. These programs currently are 
authorized only through fiscal year 1995, although the Carl 
Perkins and Adult Education Acts would be automatically 
extended through fiscal year 1996 under the General Education 
Provisions Act. Reauthorizing these programs for the years 
specified would increase budget authority by $6.2 billion over 
five years, if the funding provided includes adjustments for 
inflation. These reauthorizations would increase budget 
authority $5.6 billion if inflation is not considered.
    Title III.--This title would make provisions for the 
transition to the new block grant by funding national 
partnership activities, including the transfer of personnel 
from the Departments of Labor, Education, and Health and Human 
Services. This title provides for $500,000 in administrative 
expenses for 1996 and 1997. Also, this title would require the 
Department of Labor and the Department of Education to reduce 
by one-third the number of employees who work on activities 
related to this bill. The remaining personnel would be 
transferred to the government corporation that would manage 
work force education and training activities. The staffing 
reductions, combined with the transitional administrative 
provisions, would result in savings of about $0.1 billion over 
the 1996-2000 period.
    Title VI.--Title VI would repeal several existing job 
training and education programs in two stages. Some would be 
repealed immediately; others would be repealed as of July 1, 
1998. For purposes of this estimate, CBO assumed an effective 
date for immediate repeals of October 1, 1995. Because none of 
the programs being immediately repealed are authorized beyond 
fiscal year 1995, this estimate does not show any savings from 
these repeals. Programs that would be repealed immediately 
include state legalization grants, the Redwood National Park 
unemployment program, the displaced homemakers self-sufficiency 
program, Appalachian Regional Development vocational training, 
homeless job training, and the Federal Aviation 
Administration's employee protection program. Programs that 
would be repealed as of July 1, 1998, include the Adult 
Education Act, the Carl Perkins Vocational Education and 
Applied Technology Act, the School-to-Work Opportunities Act, 
the Wagner-Peyser Act, the Job Training Partnership Act, Title 
V of the Older Americans Act, and Title VII of the Stewart B. 
McKinney Homeless Assistance Act.
    Budget authority savings from these repeals would total 
about $9.5 billing in 1998, after also accounting for the new 
authorizations provided by the bill as well as accounting for 
inflation. If inflation is not considered, these repeals would 
total $8.6 billion in 1998.
    When authorized levels for 1996 and beyond are compared to 
baseline projections that include discretionary inflation, the 
bill would result in a net decrease in budget authority of 
about $0.4 billion for fiscal year 1998 and $2.2 billion over 
the 1996-2000 period. Table 4 (attached) shows the changes 
proposed in S. 143 relative to the 1995 baseline with 
inflation. Program reauthorizations provided for in Title II 
are not shown separately in Table 4, because continued 
authorization of programs is implicit in baseline figures.
    When these authorized levels are compared to 1995 funding 
levels without adjustments for inflation, the bill would result 
in a net increase in budget authority of $0.5 billion for 
fiscal year 1998 and $1.5 billion over the 1996-2000 period. 
Table 5 (attached) shows the changes proposed in S. 143 
relative to the 1995 funding levels. As with Table 4, program 
reauthorizations provided for in Title II are not shown 
separately in Table 5, because continued authorization of 
programs is implicit in baseline figures.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. The pay-as-you-go effects of 
the bill as follows:

------------------------------------------------------------------------
                          1995         1996         1997         1998   
------------------------------------------------------------------------
Change in outlays...  ...........  ...........  ...........         -402
Change in receipts..        (\1\)        (\1\)        (\1\)        (\1\)
------------------------------------------------------------------------
\1\Not applicable.                                                      

    8. Estimated cost to State and local governments: S. 143 
would require certain actions by the states in order for them 
to receive funding under any of the block grant programs it 
would establish. Many of the processes required in the act are 
similar to current requirements. However, application and 
reporting requirements, as well as funding streams, are 
consolidated under this bill, which could provide for 
administrative efficiencies at the state level.
    This bill would increase discretionary authorizations for 
job training activities, while at the same time it would 
eliminate mandatory spending for these purposes. Many of the 
state match requirements, as well as work requirements for 
certain populations, would be eliminated. S. 143 does require a 
state maintenance-of-effort for education activities, however. 
The bill also requires that federal funds provided by these 
grants supplement, but not supplant, state spending for these 
purpose. States would be required to set goals for assisting 
participants in obtaining meaningful unsubsidized employment, 
with emphasis on providing services to welfare recipients, 
individuals with disabilities, older workers, at-risk youth, 
and dislocated workers. One of the criteria for incentive 
grants to be given under this act is the extent to which 
recipients of Aid to Families with Dependent Children are moved 
off of the welfare rolls and into unsubsidized employment.
    The bill would allow the governing board of the government 
corporation to award incentive grants of not more than $15 
million per program year to a state that reaches or exceeds its 
benchmarks, or that has made substantial reductions in the 
number of adult recipients of AFDC as a result of placing these 
individuals in unsubsidized employment. A state that fails to 
demonstrate sufficient progress may have its grant amount 
reduced by up to 10 percent per program year for up to three 
years.
    Under S. 143, funding to states for vocational 
rehabilitation programs would be maintained at about the 1995 
level.
    9. Estimate comparison: None.
    10. Previous CBO estimate: None.
    11. Estimate prepared by: Sheila Dacey, Christi Hawley, 
Deborah Kalcevic, and Dorothy Rosenbaum.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                                                    TABLE 1.--PROJECTED DIRECT SPENDING UNDER S. 143                                                    
                                                        [By fiscal year, in millions of dollars]                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      1995         1996         1997         1998         1999         2000         2001         2002   
--------------------------------------------------------------------------------------------------------------------------------------------------------
      PROJECTED SPENDING UNDER CURRENT LAW                                                                                                              
                                                                                                                                                        
Trade adjustment assistance training:                                                                                                                   
    Estimated budget authority..................          125          129          116          126           92           92           92           92
    Estimated outlays...........................          102          126          125          122          115           99           92           92
Job opportunities for basic skills:                                                                                                                     
    Estimated budget authority..................        1,300        1,000        1,000        1,000        1,000        1,000        1,000        1,000
    Estimated outlays...........................          980          938          949          959          969          970          970          970
AFDC child care (JOBS portion):                                                                                                                         
    Estimated budget authority..................          605          640          675          715          750          795          843          893
    Estimated outlays...........................          605          640          675          715          750          795          843          893
Food stamp employment and training:                                                                                                                     
    Estimated budget authority..................          160          163          165          168          171          174          177          180
    Estimated outlays...........................          160          163          165          168          171          174          177          180
                                                 -------------------------------------------------------------------------------------------------------
Total projected spending under current law:                                                                                                             
    Estimated budget authority..................        2,190        1,932        1,956        2,009        2,013        2,061        2,112        2,165
    Estimated outlays...........................        1,847         1867        1,914        1,964        2,005        2,038        2,082        2,135
                                                 =======================================================================================================
                PROPOSED CHANGES                                                                                                                        
Program Repeals:                                                                                                                                        
    Trade adjustment assistance:                                                                                                                        
        Estimated budget authority..............  ...........  ...........  ...........         -126          -92          -92          -92          -92
        Estimated outlays.......................  ...........  ...........  ...........          -38          -84          -99          -92          -92
    Job opportunities for basic skills (JOBS):                                                                                                          
        Estimated budget authority..............  ...........  ...........  ...........         -250       -1,000       -1,000       -1,000       -1,000
        Estimated outlays.......................  ...........  ...........  ...........         -240         -969         -970         -970         -970
    JOBS child care:                                                                                                                                    
        Estimated budget authority..............  ...........  ...........  ...........         -134         -563         -596         -632         -670
        Estimated outlays.......................  ...........  ...........  ...........         -134         -563         -596         -632         -670
    Food stamp employment and training:                                                                                                                 
        Estimated budget authority..............  ...........  ...........  ...........          -40         -171         -174         -177         -180
                                                 -------------------------------------------------------------------------------------------------------
        Estimated outlays.......................  ...........  ...........  ...........          -40         -171         -174         -177         -180
      Subtotal program repeals:                                                                                                                         
        Estimated budget authority..............  ...........  ...........  ...........         -550       -1,826       -1,862       -1,901       -1,942
        Estimated outlays.......................  ...........  ...........  ...........         -452       -1,787       -1,839       -1,871       -1,912
                                                 =======================================================================================================
Realted welfare effects:                                                                                                                                
Family support payments                                                                                                                                 
    Estimated budget authority..................  ...........  ...........  ...........           21          119          260          432          542
    Estimated outlays...........................  ...........  ...........  ...........           21          119          260          423          542
Food stamps:                                                                                                                                            
    Estimated budget authority..................  ...........  ...........  ...........           29          162          277          317          349
    Estimated outlays...........................  ...........  ...........  ...........           29          162          277          317          349
Earned income tax credit:                                                                                                                               
    Estimated budget authority..................  ...........  ...........  ...........           29          162          277          317          349
    Estimated outlays...........................  ...........  ...........  ...........           29          162          277          317          349
Earned income tax credit:                                                                                                                               
    Estimated budget authority..................  ...........  ...........  ...........  ...........           -7          -39          -85         -138
    Estimated outlays...........................  ...........  ...........  ...........           -7          -39          -85         -138             
Medicaid :                                                                                                                                              
    Estimated budget authority..................  ...........  ...........  ...........  ...........           10           61          141          245
    Estimated outlays...........................  ...........  ...........  ...........  ...........           10           61          141          245
                                                 -------------------------------------------------------------------------------------------------------
      Subtotal of related welfare effects:                                                                                                              
        Estimated budget authority..............  ...........  ...........  ...........           50          284          559          805          998
        Estimated outlays.......................  ...........  ...........  ...........           50          284          559          796          998
                                                 -------------------------------------------------------------------------------------------------------
      Total Changes:                                                                                                                                    
        Estimated budget authority..............  ...........  ...........  ...........         -500       -1,542       -1,303       -1,096         -944
        Estimated outlays.......................  ...........  ...........  ...........         -402       -1,502       -1,280       -1,075         -914
                                                 =======================================================================================================
Direct Spending Under S. 143:                                                                                                                           
    Estimated budget authority..................        2,190        1,932        1,956        1,459          187          199          211          223
    Estimated outlays...........................        1,847        1,867        1,914        1,512          218          199          211          223
--------------------------------------------------------------------------------------------------------------------------------------------------------
 Components may not sum to totals due to rounding.                                                                                                      
 Total Direct Spending Under S. 143 excludes offsets from welfare-related effects.                                                                      
 Although changes have been made to the Rehabilitation Act, the funding level would not be altered under S. 143. Therefore, no changes to that Act are  
  shown in this table.                                                                                                                                  


   TABLE 2.--PROJECTED DISCRETIONARY SPENDING UNDER S. 143 INCLUDING INFLATION FOR UNSPECIFIED AUTHORIZATIONS   
                                    (By fiscal year, in millions of dollars)                                    
----------------------------------------------------------------------------------------------------------------
                                                   1995       1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
Authorizations under current law:                                                                               
    Estimated authorization...................      8,563      8,412      7,140      7,394      7,649      7,737
    Estimated outlays.........................      7,903      8,304      8,214      7,416      7,398      7,602
                                                                                                                
               PROPOSED CHANGES                                                                                 
                                                                                                                
Title I-III: New programs:                                                                                      
Wordforce Development Block Grant:                                                                              
        Estimated authorization...............  .........  .........  .........      7,000      7,000      7,000
        Estimated outlays.....................  .........  .........  .........        575      5,651      6,830
    At-Risk Youth Block Grant:                                                                                  
        Estimated authorization...............  .........  .........  .........      2,100      2,100      2,100
        Estimated outlays.....................  .........  .........  .........        118      1,707      2,100
    National activities:                                                                                        
        Estimated authorization...............  .........          1          1         -8        -35        -36
        Estimated outlays.....................  .........  .........  .........         -7        -29        -35
                                               -----------------------------------------------------------------
      Subtotal of new programs:                                                                                 
                                                                                                                
        Estimated authorization...............  .........          1          1      9,092      9,065      9,064
        Estimated outlays.....................  .........  .........  .........        686      7,329      8,895
                                               =================================================================
Reauthorization of existing programs:                                                                           
    Senior community service employment:                                                                        
        Estimated authorization...............  .........        424        438        454          0          0
        Estimated outlays.....................  .........         76        391        440        371         38
    Carl Perkins Vocational and Applied                                                                         
     Technology Act:                                                                                            
                                                                                                                
        Estimated authorization...............  .........  .........      1,251      1,295      1,340          0
        Estimated outlays.....................  .........  .........        150      1,006      2,266      1,169
    Adult Education Act:                                                                                        
        Estimated authorization...............  .........  .........        307        318        329          0
        Estimated outlays.....................  .........  .........         37        249        313        289
                                               -----------------------------------------------------------------
      Subtotal of reauthorizations:                                                                             
        Estimated authorization...............  .........        424      1,996      2,067      1,669          0
        Estimated outlays.....................  .........         76        578      1,694      1,950      1,496
                                               -----------------------------------------------------------------
      Total changes, TielesI-III:                                                                               
        Estimated authorization...............  .........        425      1,997     11,159     10,734      9,064
        Estimated outlays.....................  .........         76        578      2,381      9,280     10,391
                                               =================================================================
Title VI: Program repeals:                                                                                      
    State Legalization Grants:                                                                                  
        Estimated budget authority............  .........          0          0          0          0          0
        Estimated outlays.....................  .........          0          0          0          0          0
    Redwood unemployment:                                                                                       
        Estimated authorization...............  .........          0          0          0          0          0
        Estimated outlays.....................  .........          0          0          0          0          0
    Displaced homemakers self sufficiency:                                                                      
        Estimated authorization...............  .........          0          0          0          0          0
        Estimated outlays.....................  .........          0          0          0          0          0
    Appalachian Regional Development Act:                                                                       
        Estimated authorization...............  .........          0          0          0          0          0
        Estimated outlays.....................  .........          0          0          0          0          0
    Homeless job training:                                                                                      
        Estimated authorization...............  .........          0          0          0          0          0
        Estimated outlays.....................  .........          0          0          0          0          0
    FAA Employee Protection Program:                                                                            
        Estimated authorization...............  .........          0          0          0          0          0
        Estimated outlays.....................  .........          0          0          0          0          0
    Adult Education Act:                                                                                        
        Estimated authorization...............  .........  .........  .........       -318       -329          0
        Estimated outlays.....................  .........  .........  .........        -38       -262       -281
    Carl Perkins Vocational Education and                                                                       
     Applied Technology Education Act:                                                                          
        Estimated authorization...............  .........  .........  .........     -1,295     -1,340          0
        Estimated outlays.....................  .........  .........  .........       -156     -1,066     -1,144
    School to Work Opportunities Act:                                                                           
        Estimated authorization...............  .........  .........  .........       -277       -286       -148
        Estimated outlays.....................  .........  .........  .........        -33       -228       -262
    Wagner-Peyser Act:                                                                                          
        Estimated authorization...............  .........  .........  .........     -1,153     -1,192     -1,234
        Estimated outlays.....................  .........  .........  .........       -239     -1.184     -1,201
    Job Training Partnership Act:                                                                               
        Estimated authorization...............  .........  .........  .........     -5,893     -6,096     -6.310
        Estimated outlays.....................  .........  .........  .........       -261     -4,751     -5,905
    Senior community service employment:                                                                        
        Estimated authorization...............  .........  .........  .........       -464          0          0
        Estimated outlays.....................  .........  .........  .........        -82       -334        -38
    Stewart B. McKinney homeless assistance:                                                                    
        Estimated authorization...............  .........  .........  .........        -72        -75        -45
        Estimated outlays.....................  .........  .........  .........         -9        -58        -70
                                               -----------------------------------------------------------------
      Subtotal title VI:                                                                                        
        Estimated authorization...............  .........          0          0     -9,462     -9,318     -7,737
        Estimated outlays.....................  .........          0          0       -817     -7,883     -8,902
    Total changes:                                                                                              
        Estimated authorization...............  .........        425      1,997      1,697      1,416      1,327
        Estimated outlays.....................  .........         76        578      1,563      1,396      1,489
                                               =================================================================
Authorization Under S. 143:                                                                                     
    Estimated authorization...................      8,563      8,837      9,137      9,092      9,065      9,064
    Estimated outlays.........................      7,903      8,380      8,793      8,980      8,794      9,091
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding.                                                               
Note.--Authorizations of education programs assume a one-year extension as provided under the General Education 
  Provisions Act.                                                                                               


 TABLE 3.--PROJECTED DISCRETIONARY SPENDING UNDER S. 143 NOT INCLUDING INFLATION FOR UNSPECIFIED AUTHORIZATIONS 
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                   1995       1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
Authorizations under current law:                                                                               
    Estimated authorization...................      8,563      8,142      6,684      6,684      6,684      6,531
    Estimated outlays.........................      7,903      8,279      7,976      6,975      6,714      6,666
                                                                                                                
               PROPOSED CHANGES                                                                                 
                                                                                                                
Titles I-III: New programs:                                                                                     
    Workforce Development Block Grant:                                                                          
        Estimated authorization...............         --         --         --      7,000      7,000      7,000
        Estimated outlays.....................         --         --         --        559      5,652      6,828
    At-Risk Youth Block Grant:                                                                                  
        Estimated authorization...............         --         --         --      2,100      2,100      2,100
        Estimated outlays.....................         --         --         --        118      1,707      2,100
    National activities:                                                                                        
        Estimated authorization...............         --          1          1         -8        -30        -30
                                               ------------                                                     
        Estimated outlays.....................         --         --         --         -6        -26        -29
    Subtotal of new Programs:                                                                                   
        Estimated authorization...............         --          1          1      9,092      9,070      9,070
        Estimated outlays.....................         --         --         --        672      7,333      8,899
                                               =================================================================
Reauthorization of existing programs:                                                                           
    Senior community service employment:                                                                        
        Estimated authorization...............         --        411        411        411          0          0
        Estimated outlays.....................         --         74        376        411        337         34
    Carl Perkins Vocational and Applied                                                                         
     Technology Act:                                                                                            
        Estimated authorization...............         --         --      1,171      1,171      1,171          0
        Estimated outlays.....................         --         --        141        937      1,148      1,030
    Adult Education Act:                                                                                        
        Estimated authorization...............         --         --        288        288        288          0
                                               -----------------------------------------------------------------
        Estimated outlays.....................         --         --         35        231        284        255
      Subtotal of Reauthorizations:                                                                             
        Estimated authorization...............         --        411      1,869      1,869      1,459          0
                                               -----------------------------------------------------------------
        Estimated outlays.....................         74        551      1,579      1,768      1,320           
      Total Changes, Titles I-III:                                                                              
        Estimated authorization...............         --        411      1,870     10,961     10,528      9,070
        Estimated outlays.....................         --         74        551      2,250      9,101     10,218
                                               =================================================================
Title VI: Program Repeals:                                                                                      
    State Legalization Grants:                                                                                  
        Estimated budget authority............         --          0          0          0          0          0
        Estimated outlays.....................         --          0          0          0          0          0
    Redwood unemployment:                                                                                       
        Estimated authorization...............         --          0          0          0          0          0
        Estimated outlays.....................         --          0          0          0          0          0
    Displaced homemakers self sufficiency:                                                                      
        Estimated authorization...............         --          0          0          0          0          0
        Estimated outlays.....................         --          0          0          0          0          0
    Appalachian Regional Development Act:                                                                       
        Estimated authorization...............         --          0          0          0          0          0
        Estimated outlays.....................         --          0          0          0          0          0
    Homeless job training:                                                                                      
        Estimated authorization...............         --          0          0          0          0          0
        Estimated outlays.....................         --          0          0          0          0          0
    FAA Employee Protection Program:                                                                            
        Estimated authorization...............         --          0          0          0          0          0
        Estimated outlays.....................         --          0          0          0          0          0
    Adult Education Act:                                                                                        
        Estimated autorization................         --         --         --       -288       -288          0
        Estimated outlays.....................         --         --         --        -35       -230       -247
    Carl Perkins Vocational Education and                                                                       
     Applied Technology Education Act:                                                                          
        Estimated authorization...............         --         --         --     -1,171     -1,171          0
        Estimated outlays.....................         --         --         --       -141       -937     -1,007
    School to Work Opportunities Act:                                                                           
        Estimated authorization...............         --         --         --       -250       -250       -125
        Estimated outlays.....................         --         --         --        -30       -200       -230
    Wagner-Peyser Act:                                                                                          
        Estimated authorization...............         --         --         --     -1,042     -1,042     -1,042
        Estimated outlays.....................         --         --         --       -216     -1,042     -1,042
    Job Training Partnership Act:                                                                               
        Estimated authorization...............         --         --         --     -5,326     -5,326     -5,326
        Estimated outlays.....................         --         --         --       -236     -4,286     -5,181
    Senior Community service employment:                                                                        
        Estimated authorization...............         --         --         --       -411          0          0
        Estimated outlays.....................         --         --         --        -74       -302        -34
    Stewart B. McKinney homeless assistance:                                                                    
        Estimated authorization...............         --         --         --        -65        -65        -38
        Estimated outlays.....................         --         --         --         -8        -52        -62
                                               -----------------------------------------------------------------
      Subtotal, title VI:                                                                                       
        Estimated authorization...............         --          0          0     -8,553     -8,142     -6,531
        Estimated outlays.....................         --          0          0       -739     -7,049     -7,804
      Total Changes:                                                                                            
        Estimated authorization...............         --        411      1,870      2,409      2,386      2,538
        Estimated outlays.....................         --         74        551      1,511      2,052      2,415
                                               =================================================================
Authorizations under S. 143:                                                                                    
    Estimated authorization...................      8,563      8,553      8,553      9,092      9,070      9,070
    Estimated outlays.........................      7,903      8,353      8,528      8,487      8,766      9,081
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding.                                                               
Note--Authorizations of education programs assume a one-year extension as provided under the General Education  
  Provisions Act.                                                                                               


  TABLE 4.--PROJECTED DISCRETIONARY SPENDING CHANGES INCLUDED IN S. 143 ESTIMATED RELATIVE TO THE CBO FEBRUARY  
                           1995 BASELINE INCLUDING DISCRETIONARY INFLATION ADJUSTMENTS                          
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                   1995       1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
Current programs included in CBO baseline                                                                       
 including discretionary inflation:                                                                             
    Budget authority..........................      8,563      8,846      9,147      9,473      9,799     10,142
    Outlays...................................      7,903      8,380      8,800      9,120      9,433      9,770
                                                                                                                
               PROPOSED CHANGES                                                                                 
                                                                                                                
Titles I-III: New programs:                                                                                     
    Workforce Development Block Grant:                                                                          
        Budget authority......................  .........  .........  .........      7,000      7,000      7,000
        Outlays...............................  .........  .........  .........        575      5,651      6,830
    At-Risk Youth Block Grant:                                                                                  
        Budget authority......................  .........  .........  .........      2,100      2,100      2,100
        Outlays...............................  .........  .........  .........        118      1,707      2,100
    National activities:                                                                                        
        Budget authority......................  .........          1          1         -8        -35        -36
        Outlays...............................  .........          *          *         -7        -29        -35
                                               -----------------------------------------------------------------
      Subtotal of reauthorizations:                                                                             
        Budget authority......................  .........          1          1      9,092      9,065      9,064
        Outlays...............................  .........          *          *        686      7,329      8,895
                                               =================================================================
Title VI: Program repeals:                                                                                      
    State Legalization Grants:                                                                                  
        Budget authority......................  .........          0          0          0          0          0
        Outlays...............................  .........          0          0          0          0          0
    Redwood unemployment:                                                                                       
        Budget authority......................  .........          0          0          0          0          0
        Outlays...............................  .........          0          0          0          0          0
    Displaced homemakers self sufficiency:                                                                      
        Budget authority......................  .........          0          0          0          0          0
        Outlays...............................  .........          0          0          0          0          0
    Appalachian Regional Development Act:                                                                       
        Budget authority......................  .........         -5         -5         -6         -6         -6
        Outlays...............................  .........         -0         -2         -3         -4         -5
    Homeless job training:                                                                                      
        Budget authority......................  .........         -5         -5         -6         -6         -6
        Outlays...............................  .........         -1         -4         -5         -6         -6
    FAA Employee Protection Program:                                                                            
        Budget authority......................  .........          0          0          0          0          0
        Outlays...............................  .........          0          0          0          0          0
    Adult Education Act:                                                                                        
        Budget authority......................  .........  .........  .........       -318       -329       -341
        Outlays...............................  .........  .........  .........        -38       -262       -322
    Carl Perkins Vocational Education and                                                                       
     Applied Technology Education Act:                                                                          
        Budget authority......................  .........  .........  .........     -1,295     -1,340     -1,386
        Outlays...............................  .........  .........  .........       -155     -1,066     -1,310
    School to Work Opportunities Act:                                                                           
        Budget authority......................  .........  .........  .........       -277       -286       -296
        Outlays...............................  .........  .........  .........        -33       -228       -280
    Wagner-Peyser Act:                                                                                          
        Budget authority......................  .........  .........  .........     -1,153     -1,192     -1,234
        Outlays...............................  .........  .........  .........       -239     -1,184     -1,201
    Job Training Partnership Act:                                                                               
        Budget authority......................  .........  .........  .........     -5,893     -6,096     -6,310
        Outlays...............................  .........  .........  .........       -261     -4,751     -5,905
    Senior community service employment:                                                                        
        Budget authority......................  .........  .........  .........       -454       -470       -486
        Outlays...............................  .........  .........  .........        -82       -419       -471
    Stewart B. McKinney homeless assistance:                                                                    
        Budget authority......................  .........  .........  .........        -72        -75        -77
        Outlays...............................  .........  .........  .........         -9        -58        -74
                                               -----------------------------------------------------------------
      Subtotal, title VI:                                                                                       
        Budget authority......................  .........        -10        -11     -9,473     -9,799    -10,142
        Outlays...............................  .........         -1         -6       -826     -7,978     -9,574
                                               -----------------------------------------------------------------
      Total changes:                                                                                            
        Budget authority......................  .........        -10        -10       -381       -734     -1,078
        Outlays...............................  .........         -1         -6       -140       -649       -679
                                               =================================================================
Current programs included in CBO baseline                                                                       
 without discretionary inflation revised for                                                                    
 S. 143:                                                                                                        
        Budget authority......................      8,563      8,837      9,137      9,092      9,065      9,064
        Outlays...............................      7,903      8,380      8,793      8,980      8,794      9,091
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding.                                                               


  TABLE 5.--PROJECTED DISCRETIONARY SPENDING CHANGES INCLUDED IN S. 143 ESTIMATED RELATIVE TO THE CBO FEBRUARY  
                        1995 BASELINE WITHOUT DISCRETIONARY INFLATION (WODI) ADJUSTMENTS                        
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                   1995       1996       1997       1998       1999       2000  
----------------------------------------------------------------------------------------------------------------
Current programs included in CBO baseline                                                                       
 without discretionary inflation:                                                                               
    Budget authority..........................      8,563      8,563      8,563      8,563      8,563      8,563
    Outlays...................................      7,903      8,354      8,533      8,562      8,564      8,564
                                                                                                                
               PROPOSED CHANGES                                                                                 
                                                                                                                
Titles I-III: New programs:                                                                                     
    Workforce Development Block Grant:                                                                          
        Budget authority......................  .........  .........  .........      7,000      7,000      7,000
        Outlays...............................  .........  .........  .........        559      5,652      6,828
    At-Risk Youth Block Grant:                                                                                  
        Budget authority......................  .........  .........  .........      2,100      2,100      2,100
        Outlays...............................  .........  .........  .........        118      1,707      2,100
    National activities:                                                                                        
        Budget authority......................  .........          1          1         -8        -30        -30
        Outlays...............................  .........  .........  .........         -6        -26        -29
                                               -----------------------------------------------------------------
      Subtotal of Reauthorizations:                                                                             
        Budget authority......................  .........          1          1      9,092      9,070      9,070
        Outlays...............................  .........  .........  .........        672      7,333      8,899
                                               =================================================================
Title VI: Program repeals:                                                                                      
    State Legislative Grants:                                                                                   
        Budget authority......................  .........          0          0          0          0          0
        Outlays...............................  .........          0          0          0          0          0
    Redwood unemployment:                                                                                       
        Budget authority......................  .........          0          0          0          0          0
        Outlays...............................  .........          0          0          0          0          0
    Displaced homemakers self sufficiency:                                                                      
        Budget authority......................  .........          0          0          0          0          0
        Outlays...............................  .........          0          0          0          0          0
    Appalachian Regional Development Act:                                                                       
        Budget authority......................  .........         -5         -5         -5         -5         -5
        Outlays...............................  .........         -0         -2         -3         -4         -5
    Homeless job training:                                                                                      
        Budget authority......................  .........         -5         -5         -5         -5         -5
        Outlays...............................  .........         -1         -4         -5         -5         -5
    FAA Employee Protection Program:                                                                            
        Budget authority......................  .........          0          0          0          0          0
        Outlays...............................  .........          0          0          0          0          0
    Adult Education Act:                                                                                        
        Budget authority......................  .........  .........  .........       -288       -288       -288
        Outlays...............................  .........  .........  .........        -35       -230       -282
    Carl Perkins Vocational Education and                                                                       
     Applied Technology Education Act:                                                                          
        Budget authority......................  .........  .........  .........     -1,171     -1,171     -1,171
        Outlays...............................  .........  .........  .........       -141       -937     -1,148
    School to Work Opportunities Act:                                                                           
        Budget authority......................  .........  .........  .........       -250       -250       -250
        Outlays...............................  .........  .........  .........        -30       -200       -245
    Wagner-Peyser Act:                                                                                          
        Budget authority......................  .........  .........  .........     -1,042     -1,042     -1,042
        Outlays...............................  .........  .........  .........       -216     -1,042     -1,042
    Job Training Partnership Act:                                                                               
        Budget authority......................  .........  .........  .........     -5,326     -5,326     -5,326
        Outlays...............................  .........  .........  .........       -236     -4,286     -5,181
    Senior community service employment:                                                                        
        Budget authority......................  .........  .........  .........       -411       -411       -411
        Outlays...............................  .........  .........  .........        -74       -376       -411
    Stewart B. McKinney homeless assistance:                                                                    
        Budget authority......................  .........  .........  .........        -65        -65        -65
        Outlays...............................  .........  .........  .........         -8        -52        -65
                                               -----------------------------------------------------------------
      Subtotal, title VI:                                                                                       
        Budget authority......................  .........        -10        -10     -8,563     -8,563     -8,563
        Outlays...............................  .........         -1         -5       -747     -7,132     -8,382
                                               -----------------------------------------------------------------
      Total charges:                                                                                            
        Budget authority......................  .........        -10        -10        530        507        507
        Outlays...............................  .........         -1         -5        -75        201        517
                                               =================================================================
Current programs included in CBO baseline                                                                       
 without discretionary inflation revised to S.                                                                  
 143:                                                                                                           
        Budget authority......................      8,563      8,553      8,553      9,092      9,070      9,070
        Outlays...............................      7,903      8,353      8,528      8,487      8,766      9,081
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals due to rounding.                                                               

                    VI. Regulatory Impact Statement

    The committee has determined that there will be substantial 
reductions in the regulatory burden of paperwork as the result 
of this legislation.

                    VII. Section-by-Section Analysis

    Section 1. Short Title; Table of Contents.--Provides a 
short title and a table of contents.
    Section 2. Purposes.--Contains the findings and purposes of 
Congress in enacting the bill.
    Section 3. Definitions.--Provides definitions for the 
principal terms used in the bill.

           TITLE I.--STATEWIDE WORK FORCE DEVELOPMENT SYSTEMS

                      subtitle a--state provisions

    Section 101. Statewide Work Force Development Systems 
Established.--Provides that, beginning in fiscal year 1998, the 
Governing Board shall make allotments to States to assist in 
paying for the cost of establishing development systems in each 
State.
    Section 102. State Allotments.--Section 102 provides that 
the funds will be allocated to the States according to a 
formula based on the following factors: 60 percent of the funds 
based on each State's percentage share of the population ages 
15 to 65 years, 10 percent of the funds based on each State's 
percentage share of individuals ages 18 to 64 years who are at 
or below the official poverty line, 10 percent of the funds 
based on each State's percentage share of the average 
unemployment rate for the previous 2 years, and 20 percent 
based on each State's percentage share of adult recipients of 
Aid to Families with Dependent Children (AFDC).
    No State shall receive less than 0.5 percent of the total 
allocation, but cannot receive an allocation that is larger 
than the product of the State's population ages 15 to 65 times 
the national per capita payment under the formula.
    Section 103. State Apportionment by Activity.--Section 103 
provides that of the funds made available under this act, 25 
percent shall be made available for work force employment 
activities, 25 percent shall be make available for work force 
education activities, and 50 percent shall be made available 
for work force flex activities. (The 25 percent portion for 
work force employment activities includes FUTA revenue which 
can only be spent for job search, placement services and the 
development of labor market information.)
    Section 104. State Plans.--Section 104(a) provides that the 
Governor shall submit a 3-year comprehensive State work force 
development plan to the Governing Board.
    Subsection (b) of section 104 provides that each plan must 
contain three parts: (1) the strategic plan and flexible work 
force activities shall be developed by the Governor, in 
collaboration with the private sector and a broad-based group 
of individuals with expertise in work force development, (2) 
the one-stop career center system and work force employment 
activities shall be developed by the Governor, and (3) the work 
force education activities shall be developed by the State 
educational agency.
    Subsection (c) of section 104 sets forth the required 
contents of the State plan, as follows:
    1. With respect to the overall strategic plan for the 
system.--(a) a description of how the State will identify the 
current and future work force development needs of the industry 
sectors most important to the economic competitiveness of the 
State; (b) a description of how the State will identify the 
current and future work force development needs of all segments 
of the population; (c) an identification of the State goals and 
benchmarks and how they will make the system relevant and 
responsive to labor market and education needs at the local 
level; (d) a description of how the State will coordinate work 
force development activities to meet the State goals and 
benchmarks; (e) a description of how the funds made available 
through the 50 percent flex account will be allocated, and how 
the flexible work force activities--including school-to-work 
activities--will be carried out to meet the State goals and 
benchmarks; (f) an identification of how the State will obtain 
the active and continuous participation of business, industry 
and labor in the development and continuous improvement of the 
system; (g) an identification of how any funds that a State 
receives under this title will be leveraged with other public 
and private resources to maximize the effectiveness of such 
resources for all work force development activities; (h) a 
description of how the State will eliminate duplication in the 
administration and delivery of services under this act; (i) a 
description of the process the State will use to annually 
evaluate and continuously improve the performance of the 
system; (j) an assurance that the funds made available under 
this title will supplement and not supplant other public or 
private funds; (k) an identification of the steps that the 
State will take over the 3 years covered by the plan to 
establish common data collection and reporting requirements for 
work force development activities and vocational rehabilitation 
program activities; (l) with respect to economic development 
activities, a description of the activities to be carried out 
and how those activities will lead directly to increased 
earnings of nonmanagerial employees in the State; (m) and (n) 
evidence of collaboration and support among the Governor, 
business, industry and labor, local elected officials and key 
State officials in the development of the overall strategic 
plan.
    2. With respect to work force employment activities.--(a) 
an identification and designation of substate areas, including 
urban and rural areas, to receive funds, which to the extent 
feasible shall reflect local labor market areas; (b) a 
description of the basic features of a one-stop career center 
system; (c) an identification of performance indicators 
relating to the State goals and benchmarks for work force 
employment activities; (d) a description of the work force 
employment activities to be carried out; (e) a description of 
the steps the State will take over the 3 years covered by the 
plan to establish a statewide comprehensive labor market 
information system; (f) a description of the steps that the 
State will take over the 3 years covered by the plan to 
establish a job placement accountability system; and (g) a 
description of the steps the State will take to segregate FUTA 
revenues from the block grant and how those funds will be used 
for job search, placement services, and labor market 
information.
    3. With respect to work force education activities.--(a) a 
description of how the funds will be allocated among adult 
education providers, and among secondary and postsecondary 
vocational education programs; (b) an identification of 
performance indicators relating to the State goals and 
benchmarks for work force education activities; (c) a 
description of the work force education activities to be 
carried out; (d) a description of how the State will address 
the adult education needs in the State; (e) a description of 
how the State will segregate data relating to at-risk youth in 
order to adequately measure the progress of the State toward 
meeting the State goals and benchmarks relating to at-risk 
youth; (f) a description of how the State will adequately 
address the needs of at-risk youth in-school and through 
alternative education programs that teach to the same 
challenging academic, occupational, and skill proficiencies as 
are provided for in-school youth; (g) a description of how the 
funds and activities carried out under this part of the plan 
are an integral part of comprehensive State efforts to improve 
education for all students and adults; (h) a description of how 
the State will annually evaluate the effectiveness of the part 
of the plan with respect to work force education activities; 
(i) a description of how the State will address the 
professional development needs of the State with respect to 
work force education activities; (j) a description of how the 
State will provide local educational agencies with technical 
assistance; and (k) a description of how the State will assess 
its progress in implementing student performance measures.
    Subsection (d) of section 104 sets forth the procedure for 
developing the strategic plan, including a description of the 
manner in which the governor, business, industry and labor, 
local elected officials and key State officials collaborated in 
the development of the plan and evidence of agreement and 
support for the plan among the collaborators.
    Subsection (e) of section 104 provides that a State plan 
will be approved if the Governing Board determines that the 
State (1) has included the information described in subsection 
(c), (2) has developed the plan in accordance with the 
procedures established under this act, and (3) has negotiated 
the State benchmarks with the Governing Board.
    Subsection (f) of section 104 provides that nothing in this 
act shall be construed to provide any individual with an 
entitlement to a service provided under this act.
    Section 105. State Work Force Development Boards.--Section 
105(a) provides that a Governor may establish a State Work 
Force Development Board, on which a majority of the members are 
representatives of business and industry, not less than 25 
percent of the members are representatives of labor, workers, 
and community-based organizations, and that includes 
representatives of veterans, State officials for education and 
vocational rehabilitation.
    Subsection (b) of section 105 provides that the chairperson 
of the board shall be from business and industry.
    Subsection (c) of section 105 provides for the functions of 
the board.
    Section 106. Use of Funds.--Section 106(a) provides for how 
a State shall use its allocation of funds for work force 
employment activities:
    (1) To establish a means of providing one-stop access to 
the statewide work force development system through the core 
services described below, which may be provided either through 
multiple, connected access points, linked electronically or 
otherwise, through a network that assures participants that 
such core services will be available regardless of where the 
participant initially enters the system, at not less than one 
physical location in each substate area, or through some 
combination of these options. The core services include 
outreach and orientation to the services available through the 
one-stop career center system, including assessment, job search 
and placement assistance, career counseling where appropriate, 
screening and referral of qualified applicants to employment, 
accurate and timely information relating to employment 
opportunities, training, education and support services, and 
referral to appropriate services;
    (2) To establish a comprehensive labor market information 
system;
    (3) To establish a job placement accountability system;
    (4) To use for any of the following discretionary uses: 
additional services which may be provided through one-stop 
access, including the collocation of related services such as 
unemployment insurance, veterans' employment services, or 
welfare assistance, intensive services, and the dissemination 
of information on one-stop activities to employers; training 
activities such as occupational skills training, on-the-job 
training, and rapid response for dislocated workers; staff 
development and training; incentive grants for substate areas 
that exceed its goals; vouchers--A State may deliver work force 
employment activities through vouchers, along the following 
guidelines:
    1. Vouchers must be administered through the one-stop 
career center system;
    2. The State must establish eligibility criteria for 
individuals to receive vouchers and for providers of 
employment, training and education service;
    3. The State must demonstrate in its State plan how it will 
utilize the information obtained through the labor market 
information system about the performance of eligible providers 
to assist individuals to make informed decisions as to how to 
use their voucher most effectively.
    Subsection (b) of section 106 provides for how a State 
shall use its allocation of funds for work force education 
activities: to provide activities that include the integration 
of academic and vocational education, linkages between 
secondary and post-secondary education (including tech-prep), 
career counseling, basic education and literacy services and 
programs for adults and out-of-school youth to complete their 
secondary education.
    Subsection (c) of section 106 provides that funds made 
available for work force education activities shall supplement, 
and not supplant, other public funds. This subsection also 
includes a maintenance of effort provision.
    Subsection (d) of section 106 provides how a State shall 
use its allocation of funds of work force flex activities: to 
carry out school-to-work activities, work force employment 
activities and work force education activities.
    Sebsection (e) of section 106 provides that States which 
establish State and local private-sector led work force 
development boards may use a portion of their work force flex 
funds for economic development activities, including training 
for the incumbent work forces of small and medium-size 
employers in the State.
    Subsection (f) of section 106 provides that no funds 
provided for economic development activities may be used to pay 
the wages of workers during training or to encourage or induce 
the relocation of businesses to the State.
    Subsection (g) of section 106 requires that individuals who 
desire to participate in certain work force employment 
activities obtain, or be working toward, a high school diploma 
or its equivalent.

                      subtitle b--local provisions

    Section 111. Local Apportionment by Activity.--Section 
111(a) provides that of the funds made available to a State for 
work force employment activities, 25 percent shall be reserved 
by the Governor to carry out activities through the system and 
75 percent shall be distributed to local entities to carry out 
activities through the system, based on such factors as 
population, poverty, unemployment, and the number of AFDC 
recipients in the State, and any additional factors the 
Governor determines to be necessary.
    Subsection (b) of section 111 provides that of the funds 
made available to a State for work force education activities, 
20 percent shall be reserved by the State educational agency to 
carry out activities through the system (of which not more than 
5 percent may be used for administrative expenses) and 80 
percent shall be distributed to eligible entities to carry out 
activities through the system. The State shall divide its 25 
percent allocation for work force education activities among 2 
functions: secondary or postsecondary vocational education and 
adult education.
    Subsection (c) of section 111 provides that nothing in this 
title shall prohibit any individual or agency (other than the 
SEA) that is currently administering work force education 
activities from continuing to do so.
    Section 112. Distribution for Secondary School Vocational 
Education.--Subsections (a) through (d) of section 112 provide 
that funds shall be distributed according to the formula in 
current Perkins law which is based primarily on counts of low-
income and disabled individuals.
    Section 113. Distribution for Postsecondary and Adult 
Vocational Education.--Subsections (a) through (e) of section 
113 provide that funds shall be distributed according to the 
formula in current Perkins law which give priority to 
institutions serving Pell Grant recipients.
    Section 114. Distribution for Adult Education.--Subsections 
(a) through (c) of section 114 provide that funds shall be 
distributed according to provisions in the current Adult 
Education Act regarding State discretion and competitive awards 
at the local level.
    Section 115. Special Rule for Minimal Allocation.--Section 
115 provides that in situations where a minimal amount (not 
more than 15 percent) is made available by a State educational 
agency for distribution under sections 108 or 109, an 
alternative method for distribution other than the formula may 
be used.
    Section 116. Redistribution.--Provides that funds not 
expended during an academic year shall be returned to the State 
educational agency for redistribution.
    Section 117. Local Application for Work Force Education 
Activities.--Section 117(a) provides that an eligible entity 
desiring to carry out work force education activities shall 
submit an application to the State educational agency.
    Subsection (b) of Section 117 sets forth the contents of 
the local application.
    Section 118. Local Partnerships, Agreements, and Work Force 
Development Boards.--Section 118(a) provides that the Governor 
must negotiate and enter into agreements with local 
partnerships (or, where established, local work force 
development boards) for the delivery of work force development 
activities in each substate area. Such an agreement must 
include a description of how the funds allocated to a substate 
area will be spent on work force employment, school-to-work, or 
economic development activities, and evidence of support for 
the agreement among the members of the local partnership (or 
board).
    If, after reasonable effort the Governor is unable to enter 
into an agreement with the local partnership (or board), the 
Governor shall provide the local partnership (or board) and 
opportunity to comment upon the manner in which funds allocated 
to a substate area will be spent for such activities.
    Subsection (b) of section 118 provides that a State may 
establish local work force development boards, on which a 
majority of the members are representative of business and 
industry.
    Subsection (c) of section 118 provides that a State will be 
eligible to use a portion of the funds under the work force 
flex account for economic development activities.

               subtitle c--provisions for other entities

    Section 121. Indian Employment and Training Activities.--
Provides that the Governing Board shall make grants to, or 
enter into contracts or cooperative agreements with, Indian 
tribes, organizations, and Alaska Native entities to provide 
consolidated training and related educational services.
    Section 122. Grants to Outlying Areas.--Provides that the 
Governing Board shall make grants to outlying areas to carry 
out work force development activities.

                     subtitle d--general provisions

    Section 131. Accountability.--Section 131(a) provides that 
States must measure and report annually on benchmarks--
measurable indicators of the progress the State has set out to 
achieve in meeting broad work force development goals related 
to employment and education.
    Subsection (b) of section 131 sets for the two principal 
work force development goals of this act: to assist individuals 
in obtaining meaningful employment, and to develop the 
academic, occupational, and literacy skills of all segments of 
the population.
    Subsection (c) of section 131 provides that States must 
develop quantifiable benchmarks to measure the State's progress 
toward meeting these goals including, at a minimum, placement 
and retention in unsubsidized employment for 1 year, increased 
earnings for participants, and mastery in certain skill 
categories. In addition States must show how they are meeting 
these goals for welfare recipients, disabled individuals, older 
workers, at-risk youth, and dislocated workers.
    The Governing Board must assess how the State's 
quantifiable benchmarks compare with model benchmarks 
established by the Governing Board, with benchmarks proposed by 
other States, and whether the benchmarks are sufficient to meet 
the State's goals. The Governing Board must notify the State 
within 30 days of receipt of its plan whether its benchmarks 
are sufficient to make the State eligible to receive an 
incentive grant. If not, the Governing Board must provide the 
State an opportunity to revise its benchmarks in order to make 
it eligible to receive an incentive grant.
    Subsection (d) of section 131 provides that States must 
establish a job placement accountability system to maintain 
data relating to these measures, using existing quality wage 
records available through the unemployment insurance system.
    Section 132. Incentives and Sanctions. Section 132(a) 
provides that the Governing Board may award incentive grants on 
a yearly basis to States that reach or exceed their benchmarks.
    Section (b) of section 131 provides that the Governing 
Board may reduce the allotment for a State (up to 10 percent) 
that fails to make measurable progress toward meeting its State 
benchmarks after 3 years. The Governing Board may attribute the 
State's failure to reach its benchmarks to either work force 
employment, work force employment, work force education or 
flexible work force activities, and may reduce that portion of 
the State's allotment for such activities.
    Subsection (c) of section 132 provides that the Governing 
Board may use the funds retained as a result of reductions in 
allotments for incentive grants.
    Section 133. Unemployment Trust Fund.--Provides that FUTA 
revenue (formerly funding Wagner-Peyser) shall only be used to 
carry out the core services relating to job search, placement 
assistance, and labor market information provided through the 
one-stop career center system.
    Section 134. Authorization of Appropriations.--Authorizes 
appropriations of $7 billion for the block grant for each of 
fiscal years 1998 through 2001. Of this authorization, 1.25 
percent shall be designated for Native Americans, 0.2 percent 
for the Territories, 1.4 percent for labor market information, 
0.15 percent for national evaluations, and 4.3 percent for 
incentive grants.
    Section 135. Effective Date.--This title shall take effect 
on July 1, 1998.

                    TITLE II.--TRANSITION PROVISIONS

subtitle a--transition provisions relating to use of federal funds for 
                       state and local activities

    Section 201. Waivers.--Sections 201(a) provides that a 
State or local entity may apply for a waiver from certain 
statutory or regulatory provisions under any of the programs 
covered by this act during the 2-year transition period.
    Subsection (b) of section 201 provides that a State must 
submit an application for a waiver to the Secretaries.
    Subsection (c) of section 201 provides that a local entity 
must submit an application for a waiver to the State, and the 
State must decide whether to submit the application to the 
secretaries within 30 days of receiving the request from the 
local entity. If the State does not submit the request within 
30 days, the local entity may submit the request directly to 
the Secretaries.
    Section (d) of section 201 lists certain requirements of 
law that cannot be waived.
    Subsection (e) of section 201 provides that waivers may be 
approved to address the high priority needs of unemployed 
persons, to improve efficiencies in the delivery of services, 
to eliminate duplication, or to sue administrative funds to pay 
for the cost of developing the interim and regular State plans.
    Subsections (f) and (g) of section 201 provide that if the 
Secretaries fail to approve or disapprove a request for a 
waiver within 45 days of receiving the request, then it shall 
be deemed to be approved. The waiver may subsequently be 
terminated if it is determined to relate to a requirement of 
law that cannot be waived under subsection (d).
    Subsection (h) of section 201 provides definitions for the 
principal terms used in this section.
    Subsection (i) of section 201 contains conforming 
amendments to the School-to-Work Opportunities Act

  subtitle b--transition provisions relating to applications and plans

    Section 211. Interim State Plans.--Subsection 211(a) 
provides every state must submit an interim State plan to the 
Governing Board no later than September 30, 1996.
    Subsection (b) of section 211 provides that the interim 
State plan must comply with the requirements for a regular 
State plan under section 104.
    Subsections (c), (d) and (e) of section 211 provide that 
the Governing Board may approve the interim plan and authorize 
the full integration of program funds and activities as 
provided in the block grant in fiscal year 1997. If the 
Governing Board disapprove the interim plan, it must make 
recommendations and provide technical assistance to the State 
for developing an approvable plan to be submitted in fiscal 
year 1998. Disapproval of an interim plan shall not affect a 
waiver already approved in section 201 for fiscal year 1997.
    Section 212. Applications and Plans Under Covered Acts.--
Provides that notwithstanding any other provision of law, no 
State or local entity will be required to submit an application 
or a plan in fiscal years 1996 or 1997 in order to receive 
funding under any program which will ultimately be repealed 
under this act.
 Subtitle C--Job Corps and Other Work force Preparation Activities for 
                             At-Risk Youth

Chapter 1--General Job Corps Provisions

    Section 221. Purposes.--Contains the purposes of this 
subtitle.
    Section 222. Definitions.--Provides definitions for the 
principal terms used in this subtitle.
    Section 223. General Authority.--Provides that a State 
shall use a portion of the funds under this subtitle to 
maintain and carry out activities through Job Corps centers 
located within the State.
    Section 224. Individuals Eligible for the Job Corps.--
Provides that in order to be eligible for Job Corps, an 
individual must be an at-risk youth.
    Section 225. Screening and Selection of Applicants.--
Section 225(a) provides that the State shall determine the 
specific standards and procedures for the screening and 
selection of Job Corps enrollees which, to the extent 
practicable, are implemented through one-stop career centers or 
other appropriate agencies.
    Subsection (b) of section 225 provides that no individual 
shall be selected as an enrollee unless there is a reasonable 
expectation that the individual can participates successfully 
in the program, and that the individual manifests a basic 
understanding of the rules of the program and the consequences 
of failing to observe the rules.
    Section 226. Enrollment and Assignment.--Section 226(a) 
provides that enrollment in Job Corps shall not relieve any 
individual of obligations under the Military Selective Service 
Act.
    Subsection (b) of section 226 provides that enrollees shall 
be assigned to the Job Corps center within the State that is 
closest to their residence.
    Section 227. Job Corps Centers.--Section 227(a) provides 
that States shall enter into agreements with Federal, State or 
local agencies or with private sector organizations to operate 
Job Corps centers.
    Subsections (b) and (c) of section 227 provides that Job 
Corps centers may be residential or nonresidential, and may 
include Civilian Conservation Centers located primarily in 
rural areas.
    Subsection (d) of section 227 provides that agencies or 
organizations operating Job Corps centers on the date of 
enactment of this act shall enter into similar contracts with 
the State to operate the center through the remainder of the 
contract.
    Section 228. Program Activities.--Section 228(a) requires 
that Job Corps centers provide enrollees with access to the 
one-stop career centers and other appropriate work force 
development activities, including assistance in obtaining 
meaningful employment upon completion.
    Subsection (b) of section 228 provides that arrangements 
shall be made to allow enrollees to participate in the 
statewide work force development system, including activities 
provided through local entities.
    Subsection (c) of section 228 provides that each Job Corps 
center must also be connected to the statewide job placement 
accountability system.
    Section 229. Support.--Provides that the State shall 
provide Job Corps enrollees with such personal allowances as 
the State may determine to be necessary or appropriate to meet 
the needs of enrollees.
    Section 230. Operating Plan.--Requires that operators of 
Job Corps centers submit an operating plan to the Governor for 
approval containing, at a minimum: (1) how the center will 
contribute to achieving the State goals and benchmarks, (2) how 
the work force development activities provided by the Job Corps 
center are linked to the State's work force development needs, 
and (3) a strategy to ensure all enrollees will have access to 
the one-stop career centers.
    Section 231. Standards of Conduct.--Section 231(a) provides 
that strict standards of conduct shall be enforced within Job 
Corps centers.
    Subsection (b) of section 231 provides for termination of 
enrollees who have committed a violation of the standards, 
including immediate dismissal for incidents involving violence, 
drug abuse, or other criminal activity.
    Section (c) of section 231 permits the expeditious appeal 
of disciplinary action taken against enrollees according to 
procedures established by the State.
    Section 232. Community Participation.--Provides that the 
States shall encourage cooperation between Job Corps centers 
and local communities. Such cooperation may involve the local 
work force development board, where established.
    Section 233. Counseling and Placement.--Provides that the 
State shall ensure that Job Corps enrollees receive counseling 
and job placement services which shall be provided, to the 
maximum extent possible, through the one-stop career center 
system.
    Section 234. Leases and Sales of Centers.--Provides for the 
lease or sale of Job Corps centers to the State in return for 
nominal consideration.
    Section 235. Closure of Job Corps Centers.--Section 235(a) 
provides that the Governing Board shall conduct an audit of all 
Job Corps centers and submit to Congress the results of that 
audit. The audit will include the following information: (1) 
funds expended in fiscal year 1996 to operate Job Corps center, 
(2) the amount of funds expended for the direct operation of 
each Job Corps center, (3) the amount of funds expended for 
indirect costs relating to the operation of Job Corps centers, 
such as student travel, national outreach, screening and 
placement services, (4) the amount of funds expended for 
construction, rehabilitation and acquisition of Job Corps 
centers, and (5) the amount of funds required to be expended to 
rehabilitate and repair existing Job Corps centers.
    Subsection (b) of section 235 provides that, based on the 
results of the audit, the Governing Board will identify to the 
Secretary of Labor 25 Job Corps centers to be closed by 
September 30, 1997. In determining which centers will be 
closed, the Governing Board will use the following criteria: 
(1) whether a given center has consistently received low 
performance measurement ratings under the Department of Labor 
or inspector general Job Corps rating system, (2) whether the 
center is among those that have experienced the highest number 
of serious incidents of violence or criminal activity, (3) 
whether or not the center requires the largest funding for 
rehabilitation and repair, (4) the relative and absolute cost 
of the centers compared to all other centers, and (5) whether 
the center is among those with the least State and local 
support.
    Allowance is made for new Job Corps centers to be completed 
before they become subject the audit.
    Subsection (c) of section 235 provides that the Secretary 
of Labor, after reviewing the results of the audit, will close 
25 Job Corps centers by September 30, 1997.
    Section 236. Interim Operating Plans for Job Corps 
Centers.--Provides that Job Corps center operators prepare and 
submit to the Secretary of Labor and the Governor an interim 
operating plan for the center during fiscal year 1997.
    Section 237. Effective Date.--Section 237(a) provides that 
this chapter shall take effect on July 1, 1998.
    Subsection (b) of section 237 provides that sections 234, 
235 and 236 shall take effect on the date of enactment of this 
act.

Chapter 2--Other Work Force Preparation activities for at-risk youth

    Section 241. Work force Preparation Activities for At-Risk 
Youth.--Section 241(a) provides that the Governing Board shall 
make allotments to the States to carry out work force 
preparation activities for at-risk youth.
    Subsection (b) of section 241 provides for the core and 
permissible activities for which states may use funds under 
this chapter. States are required to continue to operate Job 
Corps centers that have not been closed under section 235. 
States may use funds to (1) assist out-of-school at-risk youth 
in participating in school-to-work activities, (2) make grants 
to entities to provide work-based learning as part of school-
to-work activities, including summer jobs linked to year-round 
school-to-work programs, or (3) carry out any other work force 
development activities specifically for at-risk youth.
    Subsection (c) of section 241 provides for the allotment of 
an amount to each State equal to the total of the amount of 
funds the State received in fiscal year 1996 to operate Job 
Corps centers and an additional amount based according to a 
formula based on the following factors: 33\1/3\ percent of the 
funds based on each State's percentage share of unemployed 
individuals, 33\1/3\ percent of the funds based on each State's 
percentage share of individuals in poverty, and 33\1/3\ percent 
of the funds based on each State's percentage share of at-risk 
youth.
    Subsection (d) of section 241 requires the State to 
describe in its State plan submitted under section 104 how 
activities for at-risk youth will be implemented to meet the 
State's goals and benchmarks.
    Subsection (e) of section 241 provides that entities may 
submit applications to the Governor to provide work force 
preparation activities for at-risk youth.
    Subsection (f) of section 241 provides that, of the funds 
allocated for work force preparation activities for at-risk 
youth, 15 percent is reserved for the Governor and 85 percent 
is distributed to local entities to carry out such activities 
through the statewide system.
    Subsection (g) of section 241 authorizes appropriations of 
$2.1 billion for each of fiscal years 1998 through 2001.
    Subsection (h) of section 241 provides that this chapter 
shall take effect on July 1, 1998.

     subtitle d--interim administration of school-to-work programs

    Section 251. Administration of School-to-Work Programs.--
Effective October 1, 1996, the authority granted to the 
Secretary of Labor and the Secretary of Education under the 
School-to-Work Opportunities Act shall be considered to be 
granted to the Governing Board.
     subtitle e--amendments relating to certain authorizations of 
                             appropriations

    Section 261. Older American Community Service Employment 
Act.--Provides that the authorization for this program shall be 
extended through fiscal year 1998.
    Section 262. Carl D. Perkins Vocational and Applied 
Technology Education Act.--Provides that the authorization for 
this program shall be extended through fiscal year 1998.
    Section 263. Adult Education Act.--Provides that the 
authorization for this program shall be extended through fiscal 
year 1998.

                    TITLE III.--NATIONAL ACTIVITIES

    Section 301. Federal Partnership.--Section 301(a) provides 
that a government corporation, known as the Workforce 
Development Partnership, will be established to administer this 
act.
    Subsection (b) of section 301 provides that the Workforce 
Development Partnership will be headed by a Governing Board 
composed of 9 members, including the Secretaries of Labor and 
Education, 5 representatives of business and industry (at least 
2 of whom shall be employers), and 2 representatives of labor 
and workers, appointed by the President with the advice and 
consent of the Senate. The Governing Board shall be appointed 
not later than September 30, 1996.
    The duties of the Governing Board include (1) overseeing 
the development of a national labor market information system 
and job placement accountability system, (2) establishing model 
benchmarks, taking into account existing work force development 
benchmark efforts at the State level, (3) negotiated benchmarks 
with the States, (4) reviewing and approving State plans, (5) 
reviewing reports on the States' progress toward their 
benchmarks, (6) preparing and submitting an annual report to 
Congress on the absolute and relative performance of States 
progress toward their benchmarks, (7) awarding incentive 
grants, (8) issuing sanctions, (9) disseminating information on 
best practices, (10) performing the duties relating to the Job 
Corps, (11) reviewing other federally funded work force 
development programs, (12) reviewing and approving the 
transition work plan submitted by the Secretaries of Labor and 
Education, and (13) overseeing all activities of the Federal 
partnership. However, final authority for the approval of State 
plans and disbursement of funds remain with the Secretary of 
Education and the Secretary of Labor.
    Subsection (c) of section 301 provides for the appointment 
of a Director to administer the general duties of the 
Partnership.
    Subsection (d) of section 301 provides that the Secretary 
of Education, the Secretary of Labor, and the Secretary of 
Health and Human Services shall detail Government employees, as 
needed, to carry out the functions of the Federal partnership.
    Subsection (e) of section 301 provides for an Office of the 
Inspector General in the Federal partnership.
    Subsection (f) of section 301 authorizes $500,000 to be 
appropriated to the Governing Board for the administration of 
this act.
    Subsection (g) contains conforming amendments to the 
Inspector General Act of 1978.
    Section 302. National Assessment of Vocational Education 
Programs.--Section 302(a) provides that the Office of Education 
Research and Improvement (OERI) at the Department of Education 
shall conduct a national assessment of vocational education 
programs under this act. It also requires OERI to appoint an 
assessment.
    Subsection (b) of section 302 lists the descriptions and 
evaluations the assessment shall include.
    Subsection (c) of section 302 provides that the Secretary 
shall consult with the Committee on Labor and Human Resources 
of the Senate and the Committee on Economic and Educational 
Opportunities of the House of Representatives in the design and 
implementation of the assessment. The Secretary shall submit 
interim and final reports to the Congress in 2000, and the 
reports will not be subject to any review outside OERI before 
their transmittal to Congress.
    Section 303. Labor Market Information.--Section 303(a) 
provides that the Governing Board shall oversee the 
development, maintenance, and continuous improvement of a 
nationwide integrated labor market information system that 
provides reliable information on job vacancies, occupational 
trends, skill requirements, and the performance of education 
and training providers.
    Subsection (b) of section 303 provides that the Governing 
Board shall, with the assistance of the Bureau of Labor 
Statistics and other appropriate Federal agencies, prepare an 
annual plan for achieving the cooperative Federal-State 
governance structure for the nationwide integrated labor market 
information system.
    Subsection (c) of section 303 provides that States shall 
establish an interagency process for the oversight of a 
statewide comprehensive labor market information system, and 
shall designate a single state agency or entity within the 
State to be responsible for the management of the statewide 
system. Such state agency must consult with employers about the 
labor market relevance to the data to be used throughout the 
statewide system.
    Section 304. National Center for Research in Education and 
Workforce Development.--Section 304(a) provides that the 
Governing Board is authorized to continue supporting the 
National Center for Research in Vocational Education until 
December 31, 1997, and to award a new grant for the period 
following that date.
    Subsection (b) of section 304 describes the activities to 
be conducted by the national center.
    Subsection (c) of section 304 provides that the Governing 
Board may request the national center to conduct additional 
activities not described in subsection (b) as it deems 
necessary.
    Subsections (d) and (e) of section 304 provide that the 
national center shall identify current needs for research and 
technical assistance and shall annually prepare a report 
summarizing its findings and results and submit it to the 
Governing Board and the Congress.
    Section 305. Transfers to Federal Partnership.--All 
functions that the Secretary of Labor, acting through the 
Employment and Training Administration and the Secretary of 
Education, acting through the Office of Vocational and Adult 
Education, perform with respect to the programs that are 
repealed under this act, shall be transferred to the Federal 
partnership. The Secretaries shall prepare and submit a 
transition workplan to the Governing Board that provides 
information on how the transfers will be conducted, and 
proposes a reduction in staffing levels of at least one-third 
over current levels.
    Section 306. Transfers to Other Federal Agencies and 
Offices.--Any functions currently performed by the Secretary of 
Labor, acting through the Employment and Training 
Administration, and the Secretary of Education, acting through 
the Office of Vocational and Adult Education, shall be 
transferred to an another appropriate Federal agency. The 
Secretaries shall prepare and submit a transition workplan to 
the Governing Board that provides information on how the 
transfers will be conduction.
    Section 307. Elimination of Certain Offices.--Effective 
July 1, 1998, the Office of Vocational and Adult Education at 
the Department of Education and the Employment and Training 
Administration at the Department of Labor shall be terminated.

   TITLE IV.--AMENDMENTS TO TITLE I OF THE REHABILITATION ACT OF 1973

    Section 401. References.--Provides that references in title 
IV of the Workforce Development Act of 1995, unless otherwise 
noted, are to the Rehabilitation Act of 1973.
    Section 402. Findings and Purposes.--Amends section 2(4)(a) 
to indicate that increased employment of individuals with 
disabilities can be achieved through implementation of a 
statewide work force development system that provides 
meaningful and effective participation for such individuals in 
work force development activities and through title I of the 
Rehabilitation Act.
    Amends section 2(b)(1)(A) by adding that empowering 
individuals with disabilities can occur through a statewide 
work force development system that includes comprehensive and 
coordinated programs of vocational rehabilitation.
    Section 403. Consolidated Rehabilitation Plan.--Repeals 
section 6 that allows consolidated plans from State vocational 
rehabilitation agencies and State developmental disability 
councils.
    Section 404. Definitions.--Amends section 7 with additional 
definitions.
    Section 405. Administration.--Amends section 12(a)(1) by 
giving the Commissioner of Rehabilitation Services 
Administration the authority to provide consultative services 
and technical assistance to public and nonprofit private 
agencies to achieve the meaningful participation of individuals 
with disabilities in the statewide work force development 
system.
    Section 406. Reports.--Amends section 13 to conform data 
collection requirements under the Rehabilitation Act with those 
required in the Workforce Development Act of 1995.
    Section 407. Evaluation.--Amends section 14(a) to conform 
information collected for evaluation purposes under the 
Rehabilitation Act with the State benchmarks required in the 
Workforce Development Act of 1995.
    Section 408. Declaration of Policy.--Amends section 
100(a)(1) to include new terms, findings and purposes.
    Section 409. State Plans.--Amends section 101(a) to conform 
the submission of the State plan under title I with the 
submission of the State plan under the Workforce Development 
Act of 1995 and other conforming amendments.
    Section 410. Individualized Employment Plans.--Amends 
section 102 substituting the term ``individualized employment 
plan'' for the term ``individualized written rehabilitation 
program.''
    Section 411. Scope of Vocational Rehabilitation Services.--
Amends section 103 by eliminating the authority to use title I 
dollars for surgery or construction.
    Section 412. State Rehabilitation Advisory Council.--Amends 
section 105 to encourage linkages between members of the 
Council and boards established under the Workforce Development 
Act of 1995.
    Section 413. Evaluation Standards and Performance 
Indicators.--Amends section 106(a)(1) to require the standards 
and indicators, to the maximum extent appropriate, will be 
consistent with benchmarks established under the Work force 
Development Act of 1995.
    Section 414. Repeals.--Repeals part C of title I.
    Section 415. Effective Date.--The effective date of this 
title is July 1, 1998.

                        TITLE V.--OTHER PROGRAMS

       subtitle a--amendments to immigration and nationality act

    Section 501. Prohibition on Use of Funds for Certain 
Employment Activities.--Provides that funds authorized under 
the Immigration and Nationality Act shall not be used for work 
force employment activities for refugees.

                      subtitle b--welfare programs

    Section 511. Welfare Reform.--Provides a Sense of the 
Senate regarding welfare reform.

TITLE VI.--REPEALS OF EMPLOYMENT AND TRAINING AND VOCATIONAL AND ADULT 
                           EDUCATION PROGRAMS

    Section 601. Repeals.--Section 601(a) provides that the 
following programs will sunset immediately upon enactment:
          State Legalization Impact Assistance Grant (SLIAG)
          Title II of Public Law 95-250
          Displaced Homemakers Self-Sufficiency Assistance Act
          Appalachian Vocational and Other Education Facilities 
        & Operations
          Job Training for the Homeless Demonstration Project
          Section 5322 of title 49, U.S.C.
          Subchapter I of chapter 421 of title 49, U.S.C.
    Subsection (b) of section 601 provides that the following 
programs will sunset on July 1, 1998:
          Food Stamp Employment and Training
          Job Training Partnership Act
          Carl Perkins Vocational and Applied Technology 
        Education Act
          Adult Education Act
          Job Opportunities and Basic Skills (JOBS)
          Trade Adjustment Assistance (TAA), sections 235 and 
        236
          NAFTA-Transitional Adjustment Assistance
          Wagner-Peyser Act
          Adult Education for the Homeless
          Senior Community Service Employment Program (SCSEP), 
        title V of Older Americans Act
          School-to-Work Opportunities Act
    Section 602. Conforming Amendments.--Section 602(a) 
provides conforming amendments for the programs that are 
immediately repealed.
    Subsection (b) of section 602 provides that the Governing 
Board shall submit legislation to the Congress containing 
technical and conforming amendments for the programs that are 
repealed on July 1, 1998.
                   ADDITIONAL VIEWS OF SENATOR DeWINE

    The Chairman, Senator Kassebaum, deserves our gratitude for 
her leadership on this bill. Thanks in large part to her 
efforts, we have succeeded in reporting legislation that will 
make a substantial difference in preparing America's work force 
for the 21st century.
    I am especially pleased with the sections of the Workforce 
Development Act that deal with the problems of at-risk youth. 
For too long, job training policy has focused on problems that 
are easier to solve, like retraining temporarily displaced 
workers--and ignored America's number one social challenge: 
Young people growing up outside the mainstream of U.S. society 
and the U.S. economy.
    The group of young Americans is large, and it is growing.
    Since 1965, the juvenile arrest rate for violent crimes has 
tripled. Children are the fastest-growing segment of the 
criminal population.
    Since 1975, homelessness has been on the rise. And it has 
increased faster among families with children than among any 
other group.
    Every year, nearly one million young people between 12 and 
19 are victims of violent crime.
    Too many young people are not getting the education they 
need. Since 1960, we have spent 200 percent more on public 
schools--but the quality of education is not improving. A 1988 
study found that of all the nations tested, the United States 
finished dead last in science.
    The Ohio Department of Education does not have complete 
statistics on graduation. But the statistics they do have 
suggest that of the kids who enter Ohio high schools, only 75 
percent graduate four years later. And that statistic 
sugarcoats the much more dismal reality in Ohio's cities. In 
Youngstown, only 46 percent graduate after four years. In 
Columbus, only 44 percent. In Toledo, only 37 percent.
    These children are not being educated. And we know what 
that leads to. According to the Educational Testing Service, 
half of the heads of households on welfare are dropouts. And 
the Ohio Department of Rehabilitation and Corrections reports 
that 25 percent of the inmates in Ohio prisons are dropouts.
    Almost 5 million children are growing up in neighborhoods 
where the majority of men are unemployed for most of the year.
    Too many kids are having kids. Since 1960, the rate of 
unmarried teenagers having kids has increased almost 200 
percent.
    Since 1960, the percentage of families headed by single 
parents has also tripled. One reason this is important is that 
children growing up in single-parent families are poorer than 
children living with two parents. Children who don't have 
fathers around are five times more likely to be poor. They are 
ten times more likely to be extremely poor--to live in the kind 
of grinding poverty from which it's very hard to escape.
    It's hard to escape from because it's more than economic 
poverty. It's a poverty of spirit--the poverty, especially, of 
young men who have no role models.
    These are the people we refer to as ``at-risk youth.'' For 
too long, we as a society have ignored this problem.
    The Workforce Development Act targets $2.1 billion of the 
funding on Job Corps and other education and training programs 
directly on the problems of at-risk youth. This is an overdue 
measure in response to a major national problem--an essential 
step in reclaiming the futures of some seriously threatened 
young people.
    Under this legislation, states will be given a great deal 
of flexibility in their use of these funds for at-risk youth. 
Job Corps centers will come directly under state authority.
    In this area, even more than others, we need state 
experimentation to demonstrate which approaches are most 
effective. Our task is nothing less than re-civilizing at-risk 
sectors of society--in effect, reclaiming a life of hope for 
young people who have never learned the values of work and 
responsibility.
    This is an effort for which there is little if any 
precedent. We need to build on successful approaches like the 
Center for Employment Training (CET) in San Jose, California; 
the Jobs Plus program in the ``Over-The-Rhine'' district of 
Cincinnati, Ohio; and the ``Cleveland Works'' program in 
Cleveland, Ohio, which has already been replicated in six other 
cities.
    While we shouldn't seek to mandate any of these programs 
nationally, they have all established a record of success that 
makes them valuable models for further experimentation by other 
communities.
    The Workforce Development Act will encourage precisely this 
kind of experimentation. It is an important positive step in 
the effort to address the monumental challenge of rescuing 
America's at-risk youth.

                                                       Mike DeWine.
                    ADDITIONAL VIEWS OF SENATOR PELL

    When I voted to report S. 143, the Workforce Development 
Act of 1995, I emphasized that I had concerns that had not been 
resolved. Thus, in addition to my support for the language in 
the committee report and the additional views on adult 
education, I thought it important to highlight several of those 
concerns.
    While I applaud the effort to bring better coordination 
between education and training, I am concerned with the 
governance structure provided in the legislation. I believe the 
Governing Board's responsibilities should be advisory, and that 
actual program authority should rest with the Secretaries of 
Education and Labor. This may be the intent of the legislation, 
but new or additional legislative language is necessary to 
accomplish this.
    I am a strong advocate and longtime supporter of the Job 
Corps program. I believe deeply that this should be a national 
program, and should not be relegated to the states. In 
addition, I am concerned about the merit of a national audit of 
the Job Corps program and the decision to require the closure 
of a certain number Job Corps centers before that audit is even 
conducted.
    I am of the mind that the percentage of Work Force 
Development funds that flow to Work Force Education and Work 
Force Employment should be increased, and that funding for the 
flexibility Account should be decreased. I offered an amendment 
in committee to divide funds in the following manner: one third 
for Work Force Education, one-third for Work Force Employment, 
and one-third for the Flexibility Account. While I continue to 
prefer this approach, I remain open to other alternatives.
    I do not favor repealing the dislocated worker provisions 
of the Trade Act. These are important provisions to help 
workers who have lost their jobs because of international 
competition that has occurred because of agreements such as the 
North American Free Trade Act and the General Agreement on 
Trade and Tariffs.
    On a related and equally important matter, the legislation, 
in my opinion, needs to be better targeted to meet the needs of 
dislocated workers. Strengthening the voucher provision in the 
legislation is one way that might be considered to accomplish 
this objective.
    I also believe we should have provisions that would enable 
the Secretary of Labor to make grants to address major economic 
dislocations, to provide disaster relief employment assistance, 
and to provide employment and training assistance for migrant 
and seasonal farmworkers. Circumstances like these often cross 
state lines or are beyond an individual state's resources. By 
their nature, large dislocations are abrupt events. In 
designing its plan, no state should or would plan for an event 
that may never take place. Therefore, a national program, 
similar to the one Senator Dodd and I proposed during the 
markup, is a critical necessity.
    Further, there are a series of concerns I have regarding 
the Employment Service and labor protections that are not 
currently reflected in the legislation. It is important that 
these issues be adequately addressed.
    Repeal of the Summer Youth Employment Program would be most 
unfortunate. It provides important help to young people who 
have no other place to turn. It should be retained.
    Additional, specific changes in the legislation would also 
help address the employment and training needs of particular 
individuals, such as those of limited English proficiency, 
those seeking to enter areas of employment not traditional to 
their gender, and those who are displaced homemakers.
    Some of these concerns were the subject of amendments 
considered by the committee. I regret very much that they were 
not approved, and would hope that they might again be 
considered on the floor. I also remain hopeful that other 
concerns I have highlighted and that were not considered during 
the committee executive session might be addressed either in a 
committee amendment or other amendments during floor debate on 
this important legislation.

                                                    Claiborne Pell.
    ADDITIONAL VIEWS OF SENATORS PELL, SIMON, JEFFORDS, AND KENNEDY

    The Workforce Development Act of 1995 contains several 
sections that emphasize the importance of Adult Education. 
While we are supportive of all of the provisions regarding 
Adult Education in the bill, we are deeply concerned that the 
absence of an assured stream of funding puts adult education 
services very much at risk. Accordingly, we strongly believe 
that the Workforce Development Act should include a specific 
Adult Education allotment of twenty-five percent of the amount 
allocated for Workforce Education activities.
    Over fifty percent of adults in the United States are 
functionally illiterate. Tens of millions of Americans cannot 
write a brief letter, read a bus schedule, understand a warning 
label, or calculate the difference between a regular price and 
a sale price in an advertisement. In the aggregate, these 
problems have a very telling impact not only on our 
competitiveness in the international economy but also on the 
very fabric of our society. Estimates place the cost of 
illiteracy to the marketplace at $225 billion dollars.
    Adult Education provides support for educational programs 
geared toward out of school youth, age 16 and above, so that 
adults can acquire the necessary oral and written competencies 
essential to success in the workplace and to everyday living 
and functioning in society. Individuals enter adult literacy 
programs for a number of reasons. While one person may be 
unemployed and enter a literacy course to improve his or her 
employability status, another may already have a job and may 
seek adult education services simply to enhance their general 
work force skills. Another may wish to improve their literacy 
skills so that they can better assist their children with their 
school work. And still another may be an immigrant whose 
language is not English and needs adult education services so 
that individual can become a full and successful participant in 
our society.
    In 1993, 3.8 million students were enrolled in Adult 
Education programs. Almost 300,000 passed the GED test or 
received a high school diploma. More than 227,000 gained 
employment or advanced in the work force due to adult 
education. An additional 30,000 were removed from public 
assistance. More than 39,000 registered to vote for the first 
time, 11,000 obtained citizenship, and almost 200,000 entered 
another educational or training program. While these statistics 
are impressive, it is important to emphasize that only one-half 
of those individuals seeking adult education services receive 
them. This number does not include the thousands, perhaps 
millions, of individuals who need services but do not know how 
to find them.
    The Federal government has been a leader in emphasizing the 
importance of literacy and skills necessary for an improved 
lifestyle and success on the job. We firmly believe that a 
strong federal presence must be continued. In order to 
accomplish that directive, we consider it imperative that adult 
education services not be left to chance.
    In Committee, the vote on the amendment to accomplish this 
objective was evenly divided. Fully one-half of the Committee 
membership believes that this legislation should include a 
provision insuring that at least one-fourth of the Workforce 
Education funds flow to adult education. To do otherwise would, 
in our opinion, threaten the very existence of these critically 
important services.

                                   Claiborne Pell.
                                   Paul Simon.
                                   Jim Jeffords.
                                   Ted Kennedy.
MINORITY VIEWS OF SENATORS KENNEDY, DOOD, SIMON, HARKIN, MIKULSKI, AND 
                               WELLSTONE

    Since the drafting of the Manpower Development Training Act 
in 1962, the Senate has maintained a strong bipartisan 
tradition in the development of legislation dealing with the 
education and training of the nation's work force. The Job 
Training Partnership Act of 1982, the JTPA Amendments of 1992, 
and the School-to-Work Opportunities Act of 1994 are some of 
the more recent examples of legislation developed and enacted 
with strong bipartisan support.
    In that same spirit of bipartisanship, Members on both 
sides of the aisle have worked closely together for more than a 
year to develop a bill that reflects our shared goal of 
achieving a more integrated approach to work force development. 
It is widely agreed that we need to replace the current 
fragmented system of many separate federal job training and 
education programs with a more coherent system that operates 
more effectively to serve the needs of workers and firms. For 
that reason, it has been and continues to be our hope that we 
can reach agreement with the majority on a set of reforms that 
achieve that goal.
    This bill reported from committee takes important steps in 
this direction by consolidating federal programs and 
establishing a framework for state and local design and 
management. However, we continue to have a number of 
significant concerns about the bill which we were not able to 
resolve prior to the committee mark-up of S. 143, and which are 
described below. We will continue to work with the majority to 
resolve these differences with the hope that we can reach 
agreement by the time the bill goes to the floor.

            the national governance structure needs revision

    The governance structure for federal administration of the 
Workforce Development Act as currently described in the 
committee-reported bill is, in our view, both unworkable and 
unwise. There is, however, general agreement among members of 
the committee that better linkages among education, training, 
and employment services must be achieved at all levels: 
National, State, and local. Senator Kassebaum's specific goal 
of better integrating the administration of workforce education 
and training programs at the national level is also an 
objective which we generally endorse. Thus, while we are unable 
to support the governance structure proposed in the bill as 
reported, we look forward to continuing to work with the 
majority to develop a structure that all members of the 
committee can support.
    S. 143, as reported, creates a part-time governing board, 
composed of two governors and representatives of business, 
labor and education, that would oversee all the activities 
conducted under this act. The bill also creates a new 
government corporation called the Federal Partnership--an 
entity that is a combination of some components of the current 
Office of Vocational and Adult Education in the Department of 
Education and the Education and Training Administration in the 
Department of Labor--to administer the act under the direction 
of the Governing Board. While we support the effort to 
consolidate and streamline Federal work force development 
programs, we believe this proposed governance structure would 
in fact have just the opposite result, adding new layers of 
government and increasing rather than decreasing administrative 
complexity. We strongly support the establishment of a national 
board to play an advisory role with regard to the 
administration of the act, but we are not prepared to turn over 
direct administrative responsibility and authority for a $7 
billion Federal program to a part-time board that meets four 
times a year. The Federal Partnership should report directly to 
the Secretaries and not through the Board to the Secretaries, 
and the Secretaries should have ultimate responsibility for all 
decisions related to approval of plans, establishment of 
benchmarks, allocation of funds, and program administration.
    We are particularly distressed by the lack of a clear, firm 
line of accountability and responsibility at the Federal level. 
The reported bill continues to blur lines of accountability and 
responsibility. It is not clear who is in charge of, and can be 
held fully accountable for, the Federal role: the President 
through his Cabinet appointees (the Secretaries of Labor and 
Education), the quasi-governmental Governing Board, the new 
Partnership, or some combination of these. The absence of 
clarity with respect to lines of authority at the Federal level 
stands in marked contrast with the explicitness of the language 
regarding authority in the design of the state level system: 
State-level Workforce Development Boards provided for under the 
bill have advisory functions, while the Governor with state 
officials is given unmistakable overall responsibility and 
authority.
    It is imperative that Federal taxpayers and Congress know 
exactly whom to hold accountable in the executive branch for 
the effective and efficient execution of the act. It is equally 
important that there be direct, clear, high-level 
accountability to the President, and that these accountable 
have the tools at their disposal to ensure that they can carry 
out their responsibilities under the act. In our view this 
means three conditions must be present. First, the Secretaries 
must have direct and final authority to decide whether State 
plans are adequate to carry out the purposes of the act and 
accomplish State goals and to approve them. Second, any new 
intermediary or board of public members should be advisory to 
the Secretaries. Finally, any entity that carries out Federal 
responsibilities must be directly responsible to the 
Secretaries who are, in turn, responsible to the President and 
to Congress.
    An additional concern is that the bill's overly 
prescriptive instructions on the elimination of existing 
offices and reductions in staff run counter to sound management 
philosophy for restructuring and downsizing an organization. 
Many activities outside the provisions of the act are the 
responsibility of the existing entities that are merged under 
the Partnership, and the structure under which these activities 
will be administered is not yet fully resolved. Although the 
establishment of the proposed Partnership would achieve the 
consolidation of some related functions that are currently 
housed within the Departments of Education and Labor, it 
threatens to create a series of new, potentially severe 
coordination problems among the departments and the Partnership 
that in many ways may far outweight the advantages. For 
example, new mechanisms would be required to ensure coordinated 
planning of and access to School-to-Work activities, because 
elementary and secondary education programs, student financial 
assistance and family literacy would remain in the Department 
of Education while vocational education would move to the 
Partnership. Some of these linkages are discussed in greater 
detail elsewhere in the minority views.
    Similar coordination mechanisms would be needed because the 
time-tested, and business-supported, linkage of the 
unemployment insurance system with both the employment 
service's labor exchange functions and the reemployment 
services authorized under the Economic Dislocation and Worker 
Adjustment Assistant Act (EDWAA) would be severed. The former 
stay in the Labor Department and the latter two would be turned 
over to the Partnership.
    We reiterate our support for the overall objective of 
Federal consolidation and coordination. Without substantial 
additional changes, however, S. 143 threatens diminished rather 
than enhanced accountability, greater rather than lesser 
problems in Federal coordination, and poorer rather than 
improved Federal administrative performance.

    improvements are needed to provisions dealing with at-risk youth

    As reported by the committee, the bill contains a number of 
important provisions designed to help at-risk youth--both out-
of-school young people and students--acquire the skills and 
knowledge they need to begin productive careers. We were also 
pleased to lend our support to Senator DeWine's successful 
amendment in committee to increase funds available for Job 
Corps and other at-risk youth programs and services to $2.1 
billion. We remain concerned, however, that the proposed 
funding structure will pit at-risk youth programs into direct 
competition with the devolved Job Corps infrastructure for 
scarce resources. We will continue to work to make the funding 
of State programs for at-risk youth independent of Job Corps 
funding, and to link these programs with the State school-to-
work framework and activities. We also want to make it clear 
that these programs are intended to encourage at-risk students 
to complete their high school degrees and school dropouts to 
enroll in alternative education programs.
    Preventing minority youth from dropping out of school and 
better serving youth if they do drop out holds the key to large 
impacts--both in terms of cost savings to Federal taxpayers and 
benefits to society. By a conservative estimate, the average 
high school dropout costs taxpayers almost $70,000 in welfare 
and prison costs between age 18 and 54. Thus, it is essential 
that we target work and training resources on at-risk youth in 
order to give them a fair chance to make it in our society. 
Although many programs serving disadvantaged youth have not 
proved to be effective, we have learned of promising projects 
that do effectively serve disadvantaged youth and point the way 
for restructuring other youth programs. Under this bill and 
with adequate resources, we believe that we can expand the use 
of successful models and reform others around what works.

        the job corps should be preserved as a national program

    For more than three decades Job Corps has provided this 
country's disadvantaged youth a chance and a hope to live 
prosperous and productive lives. Created by Congress in 1964, 
its historic and enduring charge has been to serve our most 
troubled young people by providing comprehensive counseling, 
training and education in a safe and supportive residential 
setting.
    Of the 62,000 young people who participate in Job Corps 
each year, over 80 percent are high school dropouts, and 73 
percent have never been employed full-time. One-fourth come to 
the program with reading skills at the 6th grade level or less, 
and the average income of a Job Corps member is less than 
$7,000 per year. Yet 70 percent of participants in the program 
get jobs, join the military, or later obtain further education 
after leaving the program. These results illustrate why the 
Milton S. Eisenhower Foundation, in a 1993 report entitled 
Investing in Children and Youth Reconstructing Our Cities 
concluded that:

          Next to Head Start, the Job Corps appears to be the 
        second most successful, across-the-board American 
        prevention program ever created for high-risk kids. Job 
        Corps is an intensive program with multiple solutions 
        over one year that takes seriously the need to provide 
        supportive, structured environment for the youth it 
        seeks to assist * * *. [The program's] results have 
        been consistently positive and its performance highly 
        cost-effective. A 1991 analysis by the Congressional 
        Budget Office calculated that for each $10,000 invested 
        in the average participant in the mid-1980's, society 
        received roughly $15,000 in return--including about 
        $8,000 in ``increased output participants'' and another 
        $6,000 in the ``reducing in the cost of crime-related 
        activities.

    Despite this record of achievement, the committee-reported 
bill would end Job Corps as a national program and close 25 of 
the 110 Job Corps centers--eliminating opportunities for about 
one in four of the at-risk youth currently served. While we 
support reforms to the Job Corps program as part of our overall 
effort to develop a more coherent national approach to youth 
employment policy--particularly those provisions in the bill 
which require direct linkages between Job Corps centers and the 
emerging one-stop career centers and school-to-work systems in 
the States--we believe the bill as reported by the committee 
would do serious damage to this important program.
    On the untested and unproven theory that States can do a 
better job in setting policy and providing oversight of the 
program, the bill transfers responsibility for operation of all 
Job Corps centers to the States, but at the same time does not 
require the States to continue to operate the centers. Although 
funds provided to the States under a Separate title for at-risk 
youth may be used for Job Corps activities, States could 
significantly decrease the number of students attending a 
center or shift funds to nonresidential programs without 
violating the ``core'' requirements of the subtitle. Funds that 
would otherwise be available for Job Corps could also be 
diverted to other activities for at-risk youth not related to 
Job Corps at all.
    By putting state boundaries on Job Corps centers, the bill 
would also arbitrarily limit applicants' access to centers 
outside their states that might offer programs better suited to 
their needs and interests than the programs offered at the 
center or centers in their state. Worse, at-risk youth in 
states without a center would be deprived of access to Job 
Corps altogether.
    While we agree that there should be rigorous monitoring of 
Job Corps centers' performance, and that corrective action 
should be taken when a center is performing poorly, we are also 
not persuaded that the appropriate corrective action is to 
close the center. Poor performance is in most cases a function 
of poor management, and therefore should be addressed by 
terminating the contractor or otherwise changing the management 
structure. To legislatively mandate that 25 centers must be 
closed is, in our view, both arbitrary and ill-advised.
    We agree with the majority that Job Corps can be better 
integrated into State work force development plans and systems 
and local decision-making, and we support changes to accomplish 
that goal. But it is vitally important to retain a national Job 
Corps system, avoiding the fragmentation and restricted 
opportunities for access created by the committee's approach.

               the summer jobs program should be retained

    We also strongly object to the bill's repeal of the highly 
successful summer jobs program. This program is critically 
important to the 600,000 young Americans who rely on it every 
summer to learn needed skills, acquire lessons in 
responsibility, and spend their summer days out of trouble.
    While the private sector provides many summer jobs for 
American students, individual employers cannot provide enough 
jobs for all the young people who want and need to work. 
Minority youth in particular are dependent on this program for 
summer work opportunities: an estimated one-third of summer 
jobs held by African-American youth and one-fourth of the 
summer jobs held by Hispanic youth are provided through the 
summer jobs program.
    There is ample evidence that the summer jobs program works 
well. Recent studies by Westat and the Labor Department's 
Office of the inspector general both reported very positive 
findings, concluding that work sites are well-supervised and 
disciplined, that jobs are real not make-work, that the 
education component teaches students new skills they can apply 
in school, and that students learn the value of work. According 
to the inspector general's report on the 1992 summer program, 
``participants were productive, interested, closely supervised, 
learned new skills they could apply to their school work and 
took pride in their employment.'' Participants work in a 
variety of areas, from tutoring children at day care centers to 
assisting in hospitals to working at a local park. The students 
receive strict supervision, and those who don't follow the 
rules are let go.
    For many youth, the summer jobs program is their first 
opportunity to work and their first critical step in learning 
the work ethic. We believe that the summer program meets 
performance expectations, and we will work to make sure that 
States reserve funds to local areas for summer jobs for at-risk 
youth.
    While the bill as reported does allow States to use a 
portion of their funds for at-risk youth to fund summer jobs 
program, this is a permissive rather than a required activity, 
and there is no assurance even in states that do choose to have 
such a program that it will be funded at a level comparable to 
current level. And while we are pleased that any summer jobs 
program would have to be linked to a year-round school-to-work 
program, this requirement is of little value if no summer jobs 
are made available.
    During the mark-up, Senator Dodd offered an amendment to 
delete the bill's repeal of the summer jobs program. Although 
that amendment failed on an 8-8 vote, we intend to continue to 
work for restoration and full funding of the program. The 
summer jobs program is a success story, and it provides hope 
and concrete skills to hundreds of thousands of young people. 
We see no need to repeal this program.

                 worker protections should be included

    The committee-reported bill contains none of the worker 
protections which have been crucial components of Federal 
employment and training legislation for almost 25 years. 
Without such protections we cannot support S. 143, and we will 
therefore continue to work with the majority to secure their 
inclusion in the bill when it goes to the floor.
    From the Emergency Employment Act of 1971 through the 
Comprehensive Employment and Training Act of 1972 and the Job 
Training Partnership Act of 1982, the Congress enacted and 
Republican Presidents signed into law legislative language 
setting forth carefully crafted worker protections. These 
include requirements that participants in job training programs 
who are performing work as part of their training must be 
covered by workers' compensation insurance and protected by the 
same health and safety standards applicable to other employees 
performing the same type of work, and that individuals employed 
in subsidized jobs must be provided benefits and working 
conditions at the same level and to the same extent as other 
employees performing the same work who have worked a similar 
length of time. To ensure that Federal funds are not used in a 
way that would adversely affect already employed workers, these 
statutes have also included prohibitions against displacement 
of current workers.
    It is equally important that the bill include provision 
establishing grievance procedures for the resolution of 
complaints alleging violations of the worker protection 
provisions. Those procedures have worked well in federally 
assisted employment and training programs to ensure that 
allegations of abuse are fairly and promptly addressed. Leaving 
them out of the legislation is a recipe for more litigation in 
the courts. The better course is to enable grievants to pursue 
administrative remedies, rather than to precipitate court 
litigation unnecessarily or prematurely.

the authorization level is not adequate to fulfill the purposes of the 
                                  act

    The committee-reported bill would authorize, for titles I 
through III, approximately $9 billion for each of fiscal years 
1998 through 2001. This amount is a reduction of almost 15 
percent from the total available in fiscal year 1995 for the 
Perkins Vocational Education Act, the Job Training Partnership 
Act (JTPA), the Adult Education Act, and other programs 
consolidated under the first three titles of the committee-
reported bill. While we agree with the majority that the 
Federal budget deficit should be eliminated as soon as 
possible, we do not agree that work force programs which 
provide urgently needed training to disadvantaged and 
dislocated populations should be required to bear such heavy 
burdens in achieving these budget savings. Education and 
training programs are essential to enable participants to be 
economically self-supporting, demonstrably resulting in 
increased tax revenues, lower costs for social services, and 
eventually lower expenditures for Federal, State, and local 
governments.
    In the committee's markup of S. 143, we supported an 
amendment offered by Senator Kennedy which would have increased 
the authorization for title I from $7 billion to $8.1 billion, 
the level needed to maintain these important programs at their 
current levels without adjusting for inflation. Unfortunately, 
this amendment was defeated by a tie (8-8) vote, but we intend 
to press for its adoption on the floor as the minimum adequate 
level we should provide for equipping American workers to face 
21st century economic challenges.

      provisions should be included for national level activities

    Authority and funding for research, demonstrations and 
evaluations should be provided. We remain concerned that the 
bill makes only very limited provisions for important national 
work force education and employment activities such as data 
collection and research, evaluation of programs, 
demonstrations, technical assistance, and dissemination of 
information to States and local communities on effective 
programs and practices, nor does the bill provide funding or 
authority for the Secretaries to conduct these activities. This 
a serious deficiency in the bill that has broad implications 
for the effectiveness of activities funded under the act.
    Research, demonstration and evaluation, combined with 
dissemination of best practices and technical assistance, are 
the principal mechanisms for improving employment and training 
programs. Not only do these activities provide important 
support to those directly involved in providing services, they 
also provide evidence to taxpayers about the cost-effectiveness 
of federally supported programs. Demonstrations serve to test 
new approaches for better targeting resources and increasing 
the effectiveness of programs. Evaluations serve to keep 
programs on track--to make sure that we are serving the right 
population and providing services that have long-term impacts 
on enrollees. Through these activities, we learn what is 
effective in producing long-term educational and earnings 
gains. Strong programs of research, development, and evaluation 
are as important in government as they are in the private 
sector, and they are most economically accomplished at the 
federal level.
    The implementation of the Government Performance and 
Results Act will increase the demand for information on program 
outcomes and results. To ensure this accountability, national 
activities of the type described above should be strengthened 
rather than weakened. We will continue to pursue legislative 
language that guarantees both funding and authority for these 
important national activities when the bill comes to the Senate 
floor.
    A dislocated workers reserve fund should be maintained. We 
are also very concerned by the absence of a national 
discretionary reserve to serve workers affected by mass 
disclocations, including natural disasters, base closings and 
other mass layoffs. This legislation anticipates transforming 
our job training system into a formula block grant to the 
states, and in many cases the states are well-equipped to 
handle the job. We believe, however, that we must preserve a 
federal role to meet special needs the states would be unable 
to address.
    A national rapid response fund is necessary because no one 
state can be expected to predict or respond effectively to 
massive economic dislocations. Highly concentrated economic 
dislocations can be caused by caused by plant closings, base 
realignments or natural disasters. Major economic disclocations 
often cross State lines and affect thousands of workers. In 
addition, many mass dislocations, such as base closure, are 
precipitated by federal actions and therefore merit a Federal 
response.
    The current JTPA title III program, which includes a 
national reserve account, has been extremely successful in 
helping workers find new jobs and rapidly reach their previous 
earnings levels. The reserve account feature has been 
especially important in areas where formula is inadequate to 
meet unanticipated need, and to develop innovative and more 
effective responses to layoffs in selected industries. As 
appropriations for smaller worker dislocation programs such as 
the Defense Conversion Act, the Defense Diversification Program 
and the dislocated worker program created under the Clean Air 
Act have been eliminated, the Department of Labor has used the 
national reserve to continue serving the workers affected by 
these situations. The States represented on this committee have 
benefited from the current national reserve mechanism for 
dislocations as varied as defense cutbacks, military base 
closures, changes in the timber and fishing industries, 
reorganization of large private companies and natural disasters 
such as the midwest floods.
    The need for such assistance will not diminish in the 
coming years. The recent release of the BRAC 95 base closure 
and realignment list signals the start of another round of 
military base closings, which will have a severe economic 
impact on surrounding communities. Defense-related layoffs in 
the private sector also are continuing, with up to an 
additional 25 to 30 percent reduction expected within the next 
2 to 3 years. In addition, natural disasters, like the recent 
flooding in the midwest, seem to grow more and more 
devastating, affecting large regions of our nation. It is 
unrealistic to assume that individual States can adequately 
plan or set aside sufficient funds to assist workers affected 
by such mass dislocations to find and prepare for new jobs, nor 
should they be expected to. Rather, events like these 
underscore the need to maintain a national reserve which States 
can tap when a worker dislocation is so large as to surpass the 
ability of a State to fund activities from their formula 
allocation.
    Federal grants for migrant worker services should be 
restored. Another area in which we believe a Federal role is 
essential is services to migrant farmworkers.
    The needs of migrant farmworkers and their departments for 
employment, training and other supportive services have 
historically been addressed from the national level because of 
these workers' unique migration patterns among States, their 
seasonal employment work history, their severe barriers to 
employment, their lack of State fair labor standard 
protections, and problems associated with their isolation and 
lack of access to State and local service delivery systems. Yet 
S. 143 would also discontinue direct Federal grants to serve 
this population.
    Migrant farmworkers move from place to place every year, 
sometimes covering 20 States in one season. Many states 
establish residency requirements of up to 6 months for access 
to job training programs, a requirement that migrant 
farmworkers could rarely meet. Understandby, States often 
locate their offices providing these services in populations 
centers, which are convenient for many targeted for services, 
but are far from migrant workers laboring in rural areas. For 
all these reasons, we must have a Federal commitment to provide 
training and employment services to migrant farmworkers. If we 
do not, their needs will undoubtedly go unmet.
    During the mark-up, the committee rejected by an 8-8 vote 
an amendment offered by Senator Dodd that would have set aside 
money at the federal level to address concentrated economic 
dislocations and to provide services to migrant farm workers. 
The Dodd amendment would have created a modest 2.7 percent set-
aside for these activities. This proportion of the bill's $7 
billion total authorization would have come to roughly $189 
million. That would have represented a sizeable cut from the 
$290 million presently spent on these activities. Even with the 
proposed set-aside, 90 percent of the funds authorized under 
the act would go directly to the States.
    We will continue to pursue the inclusion of provisions in 
the bill to serve migrant workers and to preserve an ability at 
the federal level to respond to mass dislocations. We are also 
willing to discuss modifications to the Dodd amendment, 
including one suggested by Senator Jeffords during the mark-up 
to add revolving fund language to the provisions for mass 
dislocations to ensure that there is no incentive to spend down 
all the money every year.

  retraining rights for workers adversely affected by trade should be 
                                restored

    Among the aspects of the S.143 that we find most 
objectionable are provisions that repeal sections of the Trade 
Adjustment Assistance (TAA) program and the NAFTA-TAA program 
that guarantee retaining services to workers adversely affected 
by our trade policies.
    Since the TAA program was created in the Trade Expansion 
Act of 1962, Republicans and Democrats alike have recognized 
our special responsibility to workers who lose their jobs as a 
direct result of government trade policies. We reaffirmed our 
commitment to honor that responsibility less than 2 years ago, 
when we enacted the NAFTA/TAA program for workers displaced 
because of increased imports or shifts in production to Mexico 
and Canada. And Congress passed the GATT just 8 months ago with 
the understanding that workers adversely affected by that 
agreement would also have a right to government retraining 
assistance through the TAA program. We are not prepared to 
abandon that commitment now, particularly in a bill that is 
simultaneously cutting back on the federal investment in 
retraining for dislocated workers generally.
    The proponents of this legislation have asserted that 
trade-impacted workers who will lose their entitlement to 
retraining services as a result of the repeal of these programs 
will still be eligible to receive whatever services are made 
available by the States to dislocated workers under the work 
force development systems created under S.143. However, even 
under the current JTPA title III program for dislocated 
workers, the level of funding is so low that less than 25 
percent of eligible workers are able to be served. Not only 
does S.143 reduce the overall authorization for work force 
education and training by 15 percent, but there is also no 
requirement in the bill that a State spend any particular 
portion of the Federal funds it receives to serve dislocated 
workers. Moreover, while the bill requires states to offer job 
search and job placement services through their one-stop 
centers, there is no requirement in the bill that States 
actually provide job training to anyone. Thus, the reality is 
that if trade-impacted workers are no longer entitled to 
employment and training services under the TAA and NAFTA-TAA, 
there is a good chance that they will not be served at all.
    At the committee mark-up, Senator Kennedy offered an 
amendment which preserved the right of trade-impacted workers 
to obtain retraining services, but required that all such 
services be provided through the same systems established by 
the State to serve other dislocated workers. This amendment 
would have accomplished Senator Kassebaum's goal of 
establishing a unified employment and training system that 
eliminates duplication or fragmentation of services--a goal 
which we share--while at the same time honoring our commitment 
to ensure that workers adversely affected by national trade 
policies actually receive training and other services to help 
them find new employment. Unfortunately, this amendment was 
defeated on a tie (8-8) vote, but we intend to offer it again 
when this legislation is brought to the floor.

        the federal-state employment service should be retained

    As reported by the committee, S.143 eliminates the Federal-
State Employment Service by repealing the Wagner-Peyser Act. We 
believe strongly that the Wagner-Peyser Act should not be 
repealed, but rather amended to ensure that the Employment 
Service is fully integrated into the States' one-stop career 
center systems, and we are hopeful that ongoing bipartisan 
discussions concerning the retention of the Wagner-Peyser Act 
will be favorably concluded before this bill is brought to the 
floor.
    The nationwide network of 1700 state-operated, federally 
financed Employment Service offices funded through the Wagner-
Peyser Act is a valuable existing resource that is already 
equipped to provide intake, assessment, job search and 
placement services which are integral to the one-stop system. 
Rather than dismantling this network, we believe we should 
encourage the States to make the labor exchange services 
provided through the Employment Service a cornerstone of their 
work force development systems.
    There are several important reasons for maintaining a 
separate funding stream for the Employment Service. The 
Employment Service is unique among work force employment 
programs in that it is almost entirely funded by employers 
through the Federal unemployment (FUTA) tax. Employers pay this 
tax based on the understanding that these funds will be used to 
provide labor exchange services that facilitate the placement 
of unemployed workers in available jobs, thereby reducing the 
overall costs to employers of maintaining the unemployment 
system. Eliminating the separate Wagner-Peyser funding stream 
and combining the revenues from the FUTA tax with general 
revenues in the form of a block grant to States for general 
work force development activities would weaken the link between 
the Employment Service and the UI system and undermine employer 
willingness to pay the FUTA tax.
    In addition to its labor exchange functions, the Employment 
Service also performs various statutorily required functions 
that would have to be performed by other entities if the 
Employment Service were eliminated. For example, the Employment 
Service provides a base of operations for the Disabled Veterans 
Outreach program (DVOP) and for Local Veterans Employment 
Representatives (LVER), and repeal of the Wagner-Peyser Act 
would endanger the effectiveness of these programs for American 
veterans.
    We believe that rather than repealing the Wagner-Peyser 
Act, we should amend the act to require that the labor exchange 
services provided by the Employment Services must be provided 
through the State's one-stop career center systems, and we are 
hopeful that we can reach agreement on such an amendment with 
our colleagues before the bill goes to the floor.

        services need to be targeted to those who need them most

    S. 143 represents a bold effort to transform our current 
collection of separate, stand-alone work force education and 
training programs providing services to specific, targeted 
populations into an integrated and accountable work force 
development system accessible to all workers and employers in a 
State. We support the goal of making our work force development 
system more comprehensive and universal. But in an era of 
limited Federal resources, we believe it is also our 
responsibility to ensure that services are provided to those 
who need them most.
    During our 30 years of experience with federally assisted 
employment and training programs, evaluations have repeatedly 
shown that some kind of targeting provisions are necessary in 
order to avoid the problem of ``creaming''--that is, the 
tendency of service providers to serve those who are already 
the most job-ready, instead of concentrating upon those who are 
least job-ready and in the greatest need of training and 
employment services. History tells us that specific provisions 
are needed to ensure that the needs of the most at-risk or 
underserved individuals are addressed. Unfortunately, the bill 
as reported by the committee does not adequately ensure that 
hard-to-serve groups and others most in need of education and 
training services will receive priority for limited Federal 
dollars.
    In particular, we are disturbed by the bill's lack of focus 
on disadvantaged out-of-school youth. The committee-passed 
measure does not include any dedicated funding for young people 
who are out-of-school, and the funding available for ``at-
risk'' youth could be spent entirely on the easier-to-serve, 
in-school population.
    We are also concerned that the bill does not ensure 
adequate support for dislocated worker retraining and services. 
We have long recognized our special responsibility to provide 
retraining and adjustment services to workers impacted by mass 
layoffs after lifetimes as productive contributors to the 
strength of the American economy. This committee in recent 
years has developed and refined assistance programs to assist 
those workers who are disrupted by trade impacts, base 
closings, and technological change. Yet under S. 143, the 
provision of rapid response services to dislocated workers is 
just one of a number of ``permissive activities'' that a state 
``may'' undertake if it chooses. In providing greater 
flexibility to States in implementing job training programs, we 
should not reduce the emphasis upon assuring adequate services 
for dislocated workers.
    S. 143 does require States to establish specific goals for 
serving at-risk youth, dislocated workers including displaced 
homemakers, welfare recipients, the disabled, and older 
workers, and this is a step in the right direction. Provisions 
for incentive grants that reward States and localities that 
meet or exceed those goals are also a positive feature of the 
bill. Indeed, we would like to see the same concept applied to 
sanctions, so that States that fail to make a good faith effort 
to assist workers in these categories could face penalties and 
the possible loss of Federal funds.
    We continue to believe, however, that there are ways to 
more explicitly target services to particular populations 
without creating restrictions that unnecessarily limit the 
flexibility of States and localities to develop integrated 
systems. We look forward to continuing to work with our 
colleagues in the Senate toward that end.

  local work force development boards should be required not optional

    The concept of giving states more flexibility to determine 
how work force development resources should be spent is one of 
the central elements of this bill. We support this concept, but 
believe that this flexibility must extend to the local level as 
well. For that reason, we believe that the local work force 
development boards which are now optional in the Workforce 
Development Act should be mandated instead.
    Most States consist of a collection of separate labor 
markets. Often the mix of industries and occupations varies 
considerably among different labor markets within a State. For 
example, in Massachusetts, Boston and the Route 128 high tech 
area have a very different industry structure than Cape Cod and 
the Berkshires--which are heavily based on the tourism 
industry--or southeastern Massachusetts, which has a high 
concentration of semi-skilled manufacturing jobs in the 
textile, apparel and shoe industries. The point is that often 
different skills are needed to compete for jobs within 
different regions within a State; and any new work force 
development system that we establish must recognize this point.
    More than a decade ago, members of this committee worked 
together on a bipartisan basis to pass the Job Training 
Partnership Act. One of the central elements of JTPA was the 
establishment of a public-private partnership at the local 
level between the private-sector led Private Industry Councils 
(PICs) and local elected officials. The concept behind the 
establishment of PIC's remains true today; we stand a much 
better chance of making our job training programs market-driven 
if the businesses that provide the jobs have a role in 
designing and overseeing training programs. Many of our major 
international competitors have established work force 
development systems that are based on this key principle.
    Over the past decade our nation has made great strides in 
securing more local business involvement in our job training 
system. Roughly 10,000 business leaders throughout the Nation 
now serve as PIC members. They play an important role in 
working with labor, community-based organizations and education 
officials to make our JTPA programs more responsive to the 
training needs of local businesses and workers.
    Some States are now moving to expand their PIC's 
responsibilities far beyond JTPA to encompass the entire array 
of work force employment and work force education programs in 
their regions. Massachusetts, for example, has established 16 
Regional Employment Boards whose mandate goes far beyond 
managing the roughly $50 million that the State received each 
year in JTPA resources; their function is to serve as a ``Board 
of Directors'' that sets policy and provides oversight over the 
State's $700 million work force development system.
    Under S. 143, states would have the option to create local 
private sector led Workforce Development Boards like the REB's 
in Massachusetts. However, if a state doesn't exercise this 
option, there are very few mechanisms in the Workforce 
Development Act to ensure that local business, labor, and 
community leaders can have any meaningful say in how a State 
spends block grant funds within their labor market. Beyond 
these options local boards, the only other real requirement in 
the committee bill for local involvement centers around 
negotiations that would take place every 3 years between the 
Governor and a ``local Partnership'' over a plan for how funds 
under this act would be spent in their communities to meet 
State policy goals and performance benchmarks. However, once 
these negotiations are completed, these ``Partnerships'' would 
dissolve, and there would be no ongoing public-private board in 
place to set policy or provide oversight over the local job 
training system.
    At the committee mark-up, Senator Kennedy offered an 
amendment to make Local Workforce Development Boards mandatory 
rather than optional that was defeated in by an 8-8 vote. 
Because there is strong support within the business community 
and among local elected officials for this amendment, we intend 
to continue to push for its passage prior to final enactment of 
the Workforce Development Act.
           ``economic development'' spending should be capped

    As reported by the committee, S. 143 would allow Governors 
to spend up to 50 percent of the funds they receive under the 
act on so-called ``economic development activities''--that is, 
the provision of Federal funds to private companies to pay for 
training and related services for their own workers. We agree 
that more must be done to encourage both public and private 
investment in training for incumbent workers. Undoubtedly it is 
both more humane and more cost-effective to upgrade the skills 
of an already employed worker who is at risk of losing his job 
because of changing skill requirements in the workplace, 
thereby enabling the worker to retain the job he has, than to 
wait until that worker is unemployed and then try to retrain 
him for a new job. But there are also significant potential 
downsides to allowing scarce public training dollars to be used 
by private companies to meet their customized training needs.
    Evidence from States that have experimented with such 
programs over the past decade indicates that without adequate 
safeguards, there is a real risk that companies will simply 
substitute scare public dollars for private investments in 
training that the companies would or could have made themselves 
had public funds not been available for these purposes. A 1990 
study by the National Commission for Employment Policy and the 
National Governors' Association entitled ``Evaluating State-
financed, Workplace-Based Retraining Programs'' concluded that 
this ``substitution'' effect could be minimized through the use 
of careful screening procedures, monitoring systems and 
procedures for evaluating performance outcomes, but no such 
safeguards are included in S. 143. Nor are there any criteria 
in the bill protect against the potential for fraud or abuse by 
recipients of these funds. At a time of increasing bipartisan 
interest in reducing ``corporate welfare,'' we are unwilling to 
five the Governors what amounts to a blank check to spend more 
than $3 billion in Federal funds on this new and open-ended 
form of business subsidy.
    Our concerns about these provisions could be partially 
addressed by the inclusion of language we have already proposed 
that would target economic development resources on upgrading 
the skills of employed workers who are at risk of being 
permanently laid off, and on retraining currently employed 
workers in new technologies to help struggling businesses to 
restructure themselves and avert plant closings and layoffs. 
However, our concern is as much with the amount of money 
available under the bill for these ``economic development'' 
activities, as with the types of activities on which the money 
can be spent. We will therefore continue to seek a cap on the 
amount of funds that can be spent on this activity.

  states should be required to spend funds on adult job training and 
            funds available for training should be increased

    The Workforce Development Act makes a deliberate effort to 
ensure that funding for certain important education activities 
is maintained. The same cannot be said for funding for adult 
training programs.
    A very high percentage of funds that are in the programs 
which the Workforce Development act would collapse into block 
grants are funds currently spent on job training programs. 
However, there is no explicit requirement that States provide 
training for adults in either the 25 percent of funds allotted 
to Workforce Employment activities or the 50 percent of funds 
allotted to ``Flex Account'' activities.
    Within the Workforce Employment grant a significant portion 
of funds are specifically earmarked for development of one-stop 
career centers; but training is only a permissive activity. 
Similarly, while the bill now devotes $2.1 billion to work 
force development activities directed to at-risk youth, there 
are no guarantees that States will use any of their flex 
account funds for adult training.
    Even if States and localities are willing to spend their 
Workforce Employment funds on adult job training, they will be 
hard-pressed to do it. Of the 25 percent of funds allotted to 
Workforce Employment activities, 25 percent of that amount is 
reserved for state-level activities. Thus by the time the funds 
reach the local level for actual services to individuals, the 
amount available for these purposes represents only slightly 
more than one-half the current expenditure for adult training--
$1.2 billion under S. 143 versus $2.3 billion under current 
law. And since the local share for work force employment 
activities is also to be used to pay for one-stop career 
centers, labor market information systems and the job placement 
accountability system, these requirements could end up 
consuming the entire sum of local work force employment 
activity funds, leaving nothing for actual job training.
    This diminution of the priority and resources devoted to 
job training for adults is a serious flaw in the bill. With the 
increasing pace of corporate downsizing, trade-related 
dislocations, and defense-related layoffs, it should be clear 
that we need to increase rather than diminish our investment in 
helping dislocated workers retrain for new occupations. 
Moreover, any serious reform of the welfare system will require 
a substantially increased investment in job training services 
for economically disadvantaged adults.
    At the committee mark-up Senator Pell and Senator Kennedy 
advanced two separate proposals to try to correct for this 
problem. One proposal would have increased the amount of funds 
in the Workforce Employment account from 25 percent to 40 
percent, there by ensuring that sufficient resources exist for 
States and local communities to fund both one-stop activities 
and training activities. The other proposal would change the 
ratio of funding for the three block grants in the bill from 
25-50-25 percent to 33-33-33 percent. Unfortunately, both of 
these amendments failed. We intend to offer similar amendments 
on the Senate floor.
        separate funding should be provided for adult education

    S. 143, as currently configured, threatens adult education 
services. The current wording of the legislation could result 
in decreased or zero funding to adult education at a time when 
strengthening basic education is fundamental to strengthening 
the skills of workers, helping youth obtain their high school 
equivalency degree, and providing parents with the literacy 
skills they need to help their children succeed in school.
    Current estimates suggest that only one-half of those 
requesting adult education services are now receiving them. An 
amendment added at the committee markup requires States to 
withhold certain work force employment and training services 
from adults who have not completed or are not enrolled in a 
course of study leading to a high school equivalency degree. 
However, State responsibility for the requirement ends when 
individuals are referred for adult education services. 
Increased demand as a result of this provision of the 
legislation, added to estimates of current need for adult 
education, suggest a minimum tenfold increase over the current 
demand for services.
    Adult education service delivery in most States is heavily 
dependent on the services of volunteers and part-time 
instructors. These individuals provide an invaluable service to 
clients, but are able to meet only half of the demand for 
services and cannot grow to meet a ten times greater demand. 
There is a real danger that we may end up wasting the already 
meager Federal dollars authorized for work force development 
unless we include provisions that these core adult education 
services be adequately supported. It was for these reasons that 
we supported in committee and will support on the floor efforts 
to designate a minimum percentage of the funds that are 
authorized under this legislation for adult education.
    These problems we have noted are exacerbated by provisions 
that fail to direct adult education and literacy services to 
those who need them. As conceived in this bill, literacy and 
adult education services would serve primarily as a means to 
get individuals off public assistance and into employment. 
While this is a worthy and necessary goal, its narrow focus is 
inconsistent with the purposes of the laws which this 
legislation seeks to repeal, and contradicts recent data on the 
education needs of adult learners.
    The National Evaluation of Adult Education Programs found 
that half of those receiving adult education services were 
employed. These individuals do not necessarily need services 
for employment-related reasons. Only 11 percent of those 
enrolled in adult education programs were receiving public 
assistance. Over 70 percent of instruction hours were focused 
on those for whom English is a second language.
    The bill does not recognize these findings. Even though S. 
143 repeals the Adult Education Act, nothing in the bill as 
currently written would require States to monitor their 
performance in serving those with limited reading and writing 
skills. Benchmarks in the Work Force Development bill, intended 
to ensure that States monitor their progress in serving those 
most in need of education services, focus only on welfare 
recipients, dislocated workers, older workers, and those with 
disabilities. As the National Evaluation suggests, it is a 
different segment of the population whose members are most in 
need of adult education services. Attempts to revise the bill 
to address this deficiency were unsuccessful, but we intend to 
revisit this issue when the bill goes to the Senate floor.
    We commend Senator Kassebaum for accepting changes to the 
bill that include adult education service providers in the 
development of State and local plans. Their participation will 
increase the likelihood that plans will be guided by applicable 
knowledge and experience, and that the needs of adult education 
recipients will be represented when State and local priorities 
are established. We also applaud the specific inclusion of 
public libraries, one of the principal providers of adult 
education literacy services, among those entities eligible to 
receive adult education funds. However, we are concerned that 
these provisions, absent adequate levels of funding, will not 
achieve the desired outcome.

           provisions relating to vouchers should be modified

    We are pleased that the committee bill includes the concept 
of skill grants or vouchers for the delivery of job training 
services. Skill vouchers will empower Americans by placing the 
purchasing power for education and training in their hands. 
Armed with information on job prospects in the local labor 
market, the skill requirements of employers, and the 
performance of community colleges and other training providers, 
recipients will be able to make informed choices about training 
and education courses. We believe that the opportunity to use 
skill vouchers should be made available to participants in job 
training programs in all 50 States. However, we are concerned 
about broadening the use of vouchers to all types of services--
including those for which they may not be appropriate--rather 
than limiting them to education and training services.

 maintaining the connection between vocational education and school-to-
            work programs and other k-12 reform initiatives

    Senator Kassebaum has been unyielding in her efforts to 
ensure that S. 143 establishes important linkages between 
vocational and career preparation programs and post-secondary 
and adult training programs. She is right to insist on this 
connection. However, we are concerned that as we are 
strengthening this connection we may be jeopardizing a 
different and equally important set of linkages.
    Over the past 5 years, in a series of education reform 
bills--Goals 2000, the Elementary and Secondary Education Act, 
and the School-to-Work Opportunities Act--Congress has laid out 
a framework of Federal support for elementary and secondary 
education that would encourage States to consolidate their 
planning for Federal education dollars with their own State 
education plans. In the Elementary and Secondary Education Act, 
States were given the flexibility to write one application for 
all Federal education dollars, including vocational education 
funds. The effect of this provision will be integration of 
programs throughout our schools, and more specifically, a 
better connection between academic and vocational education in 
the high schools.
    This integration is threatened by this legislation because 
States are required to plan the use of Federal work force 
education funds as part of an overall work force development 
plan rather than as part of an education plan for high schools. 
This latter provision is an extremely worthwhile goal, but some 
flexibility needs to be built into the legislation so that 
integration of education planning is not sacrificed to reach 
the goal of integration of education and job training. The 1990 
amendments to the Carl D. Perkins Vocational Education Act 
greatly enhanced the integration of academic and vocational 
education, and we do not want that process interrupted.
    The committee worked in a bipartisan fashion to strengthen 
the local planning role in order to encourage integrated 
planning, and we intend to seek a floor amendment that would 
give States more flexibility in integrating education and work 
force education planning. From our earliest discussions about 
work force development, we have believed that a separate title 
for youth in the work force development consolidation would 
have been the best way to maintain the progress States have 
made in integrated planning, and would have allowed a much 
better articulation between high schools and post high school 
training. From our perspective, the Nation's success in 
creating a well-trained work force for the future will be 
directly related to its success in achieving well-articulated 
kindergarten through post-baccalaureate education programs that 
hold all students to high academic and skill standards.

 OPERATIONAL PROVISIONS OF THE SCHOOL-TO-WORK MODEL SHOULD BE RETAINED

    We are pleased to see that language supporting school-to-
work activities is included in the bill reported from the full 
committee. However, the language does not ensure a clear role 
for the private sector at the school district level, through 
local level partnerships. Current law is based on the principle 
that Federal ``catalytic'' resources will only be available to 
partnerships where school and business leaders agree on what 
will be done. It is a model that is working.
    As John Hamill, president of Fleet Bank of Massachusetts, 
said in a letter to members of the committee, the requirement 
for local school-business agreement is at the heart of the 
school-to-career reform concept: ``If businesses are to be 
asked to provide employment and learning on the job they need a 
seat at the planning table and a share of the responsibility 
for results. The requirement to collaborate with business in 
design and implementation helps schools achieve dramatic 
change.'' To ensure a structure of opportunity for full 
business participation at the local level, the committee's bill 
should be amended to include within the definition of ``School-
to-Work Activities'' a requirement that such activities be 
designed and operated by local partnerships which include 
representatives of the private sector and local educational 
agencies.
    We were unsuccessful in securing an explicit preservation 
of the core operational provisions of the school-to-work model 
in this bill, and we believe the bill, in its current form, is 
not explicit enough to ensure that these important provisions 
will be implemented by all States. The committee did, however, 
make very important changes on the School-to-Work transition 
activities. The School-to-Work Opportunities Act sunsets in 
2001. We were successful in working with Senator Kassenbaum to 
push back the repeal date to 1998. This change will allow every 
State to receive Federal start-up funds to plan and construct 
the infrastructure for a better system for students who are 
preparing to enter the work force. Further, the legislation 
requires that Governors, once their State has accepted school-
to-work funds, continue to implement these activities from the 
``flex account'' in later years. This was an important 
compromise, and one we strongly supported. In a June 1995 
letter to Senator Kassenbaum, the National Governor's 
Association supports a mechanism that will ensure that School-
to-Work, as it is currently constructed continues. The letter 
is included at the end of the minority views.

            GAINS IN VOCATIONAL EDUCATION SHOULD BE RETAINED

    As a result of both the 1990 Perkins reauthorization and 
the School-to-Work Opportunities Act, vocational education has 
begun a number of important changes in the past few years. As 
stated earlier, it is critically important that the Perkins 
provisions that led to these promising improvements not be 
abandoned and that States and schools review the valuable 
lessons of the last 3 years. We would have preferred language 
in the legislation that more explicitly encourages States to 
preserve the gains that have resulted from the 1990 
reauthorization, and to build on their current efforts. These 
changes are essential to enable vocational education to be an 
important building block in the school-to-work system.
    Among the most important lessons is that standards to which 
students in vocational programs are held must be the same as 
the standards for all students. Too often in the past, 
vocational activities in high schools have been isolated from 
mainstream academic activities. As a result, many students have 
not acquired academic and technical skills needed in today's 
economy. Furthermore, it is important that work force education 
programs used to support general track students also adhere to 
high expectations and standards for students.
    Accountability for federal funds in this legislation rests 
entirely on measuring outcomes for students, an accountability 
mechanism we support. Nearly every State, however, has 
developed academic standards for students. We expect, 
therefore, that in developing benchmarks to determine 
accountability for work force education funding, States will 
use these standards in developing benchmarks for section 
114(c)(2)(A).
    Another important change in the 1990 legislation is 
increased emphasis on educating students about all aspects of 
the industry they are preparing to enter. We intend to continue 
to seek the inclusion of language that would encourage States 
to design work force education activities in such a way that 
students study ``all aspects'' of industries, not just a narrow 
skills. This kind of broad-based education strengthens the 
ability of individuals to move within the industry, advance in 
their careers, and improve their standard of living.

                        labor market information

    We appreciate the bipartisan manner in which the majority 
has approached the critical issue of improving the quality of 
labor market information and believe that the legislation lays 
the foundation for a system which will provide quality 
information to both jobseekers, employers and those responsible 
for designing and managing the work force development system.
    Before the bill goes to the floor, we would like to clarify 
our understanding that the reservation in section 119 for labor 
market information activities is for new activities described 
in subparagraph 1(E) and paragraphs (2) through (6) of section 
303, and that the current cooperative statistics program run by 
the Bureau of Labor Statistics (BLS) would continue to be 
funded as they are at present. We are also concerned that the 
role of the Governing Board in the LMI area would seriously 
jeopardize the ability of BLS to fulfill its responsibility to 
produce high quality national statistics and hope that this 
issue can be resolved in the continuing discussions on the 
governance aspects of this legislation.

 the senior community service employment program should not be part of 
                            the block grant

    We believe that Title V, the Senior Community Service 
Employment Program (SCSEP) is a critical part of the Older 
Americans Act and is more appropriately reauthorized as part of 
the Older Americans Act. Therefore, we believe that Title V 
does not belong as part of the block grant.
    SCSEP is primarily a community service program. It has a 
unique mission in serving the needs of disadvantaged low-income 
Americans 55 years of age or older who have poor employment 
prospects. As an integral part of the Older Americans Act, 
SCSEP merges this employment program with community service. It 
is the backbone of senior nutrition and support services 
programs as well as many day care centers and recreational 
programs.
    In committee, we supported an amendment offered by Senator 
Mikulski to strike Title V of the Older Americans Act from the 
block grant. Unfortunately, this amendment was rejected. We 
intend to offer a similar amendment on the Senate floor.

                               conclusion

    We look forward to working with proponents of S. 143 to 
resolve the issues that separate us. We commend Senator 
Kassebaum and her staff for their excellent work on this 
legislation, and for the spirit of collaboration and 
bipartisanship that has characterized our efforts from the 
beginning. Workforce development is an issue of extraordinary 
importance, and on our success in this arena hinges the 
economic futures of individuals, and the strength of this 
country's economic competitiveness. We are eager to get it 
right, and look forward to supporting this important 
legislation.

                                   Edward M. Kennedy.
                                   Paul Simon.
                                   Barbara Mikulski.
                                   Chris Dodd.
                                   Tom Harkin.
                                   Paul Wellstone.
                       X. Changes in Existing Law

    In compliance with rule XXVI paragraph 12 of the Standing 
Rules of the Senate, the following provides a print of the 
statute or the part or section thereof to be amended or 
replaced (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):

                      TITLE 42--UNITED STATES CODE

                          SOCIAL SECURITY ACT

          * * * * * * *

Sec. 1101 * * *

          * * * * * * *
    (c) * * *
          (1) * * *
                  (A) * * *
          * * * * * * *
                          [(ii) the establishment and 
                        maintenance of systems of public 
                        employment offices in accordance with 
                        the Act of June 6, 1933, as amended]
                          (ii) the establishment and 
                        maintenance of statewide workforce 
                        development systems, to the extent the 
                        systems are used to carry out 
                        activities described in section 303, or 
                        in any of clauses (ii) through (v) of 
                        section 113(a)(2)(B) of the Workforce 
                        Development Act of 1995.
          * * * * * * *
                  (B) such amounts (not in excess of the limit 
                provided by paragraph (4) with respect to 
                clause (iii)) as the Congress may deem 
                appropriate for the necessary expenses of the 
                [Department of Labor] Department of Labor or 
                the Workforce Development Partnership, as 
                appropriate, for the performance of its 
                functions under--
          * * * * * * *
                          [(iii) the provisions of the Act of 
                        June 6, 1933, as amended,]
                          (iii) the Workforce Development Act 
                        of 1995.
          * * * * * * *
          (4) For purposes of paragraph (1)(A)(ii) and 
        (1)(B)(iii) the amount authorized to be made available 
        out of the employment security administration account 
        for any fiscal year after June 30, 1972, shall reflect 
        the proportion of [the total cost of administering the 
        system of public employment offices in accordance with 
        the Act of June 6, 1933, as amended, and of the 
        necessary expenses of the Department of Labor for the 
        performance of its functions under the provisions of 
        such Act, as the President determines] the total cost 
        of administering the statewide workforce development 
        systems, to the extent the systems are used to carry 
        out described in section 303 or in any of clauses (ii) 
        through (v) of section 113(a)(2)(B), of the Workforce 
        Development Act of 1995, and of the necessary expenses 
        of the Workforce Development Partnership for the 
        performance of the functions of the partnership under 
        such Act, as the President determines.
          * * * * * * *

                      TITLE 20--UNITED STATES CODE

                SCHOOL-TO-WORK OPPORTUNITIES ACT OF 1994

          * * * * * * *

        TITLE V--WAIVER OF STATUTORY AND REGULATORY REQUIREMENTS

Sec. 501. * * *

    (a) State Request for Waiver.--A State may submit to the 
[Secretaries] Secretary of Education a request for a waiver of 
1 or more requirements of the provisions of law referred to in 
sections [502 and 503] 502, or of the regulations issued under 
such provisions, in order to carry out the statewide School-to-
Work Opportunities system established by such State under 
subtitle B of title II. The State may submit the request as a 
part of the application described in section 213 (or as an 
amendment to the application at any time after submission of 
the application). Such request may include a request for 
different waivers with respect to different areas within the 
State.
    (b) Local Partnership Request for Waiver.--
          (1) In general.--A local partnership that seeks a 
        waiver of such a requirement shall submit an 
        application for such waiver to the State, and the State 
        shall determine whether to submit a request for a 
        waiver to the [Secretaries] Secretary of Education, as 
        provided in subsection (a).
          (2) Time limit.--
                  (A) In general.--The State shall make a 
                determination to submit or not submit the 
                request for a waiver under paragraph (1) not 
                later than 30 days after the date on which the 
                State receives the application from the local 
                partnership.
                  (B) Direct submission.--
                          (i) In general.--If the State does 
                        not make a determination to submit or 
                        not submit the request within the 30-
                        day time period specified in 
                        subparagraph (A), the local partnership 
                        may submit the application to the 
                        [Secretaries] Secretary of Education.
                          (ii) Requirements.--In submitting 
                        such an application, the local 
                        partnership shall obtain the agreement 
                        of the State involved to comply with 
                        the requirements of section 
                        [502(a)(1)(C) or 503(a)(1)(C), as 
                        appropriate,] section 502(a)(1)(C) and 
                        comply with the other requirements of 
                        section 502 or 503, as appropriate, and 
                        of subsections (c) and (d), that would 
                        otherwise apply to a State submitting a 
                        request for a waiver. In reviewing such 
                        an application, the [Secretaries] 
                        Secretary of Education shall comply 
                        with the requirements of such section 
                        and such subsections that would 
                        otherwise apply to the [Secretaries] 
                        Secretary of Education with respect to 
                        review of such a request.
    (c) Waiver Criteria.--Any such request by the State shall 
meet the criteria contained in [section 502 or 503] section 502 
and shall specify the provisions or regulations referred to in 
such sections with respect to which the State seeks a waiver.
          * * * * * * *

Sec. 502. * * *

          * * * * * * *
    (b) * * *
          * * * * * * *
          (4) part B of title IX of the Elementary and 
        Secondary Education Act of 1965[;] and
          (5) title XIII of the Elementary and Secondary 
        Education Act of 1965[; and].
          [(6) the Carl D. Perkins Vocational and Applied 
        Technology Education Act.]
          * * * * * * *

[Sec. 503. * * *.

    [(a) Waiver
          [(1) In general Except as provided in subsection (b), 
        the Secretary of Labor may waive any requirement under 
        any provision of the Job Training Partnership Act (29 
        U.S.C. 1501 et seq.), or of any regulation issued under 
        such provision, for a State that requests such a waiver 
        and has an approved State plan--
                  [(A) if, and only to the extent that, the 
                Secretary of Labor determines that such 
                requirement impedes the ability of the State or 
                a local partnership to carry out the purposes 
                of this Act;
                  [(B) if the State provides the Secretary of 
                Labor with documentation of the necessity for 
                the waiver, including information concerning
                          [(i) the specific requirement that 
                        will be waived;
                          [(ii) the specific positive outcomes 
                        expected from the waiver and why those 
                        outcomes cannot be achieved while 
                        complying with the requirement;
                          [(iii) the process that will be used 
                        to monitor the progress of the State or 
                        local partnership in implementing the 
                        waiver; and
                          [(iv) such other information as the 
                        Secretary of Labor may require;
                  [(C) if the State waives, or agrees to waive, 
                similar requirements of State law; and
                  [(D) if the State
                          [(i) has provided all local 
                        partnerships that carry out programs 
                        under this Act in the State with notice 
                        and an opportunity to comment on the 
                        proposal of the State to seek a waiver,
                          [(ii) provides, to the extent 
                        feasible, to students, parents, 
                        advocacy and civil rights groups, and 
                        labor and business organizations an 
                        opportunity to comment on the proposal 
                        of the State to seek a waiver; and
                          [(iii) has submitted the comments of 
                        the local partnerships to the Secretary 
                        of Labor.
          [(2) Approval or disapproval. The Secretary of Labor 
        shall promptly approve or disapprove any request 
        submitted pursuant to paragraph (1) and shall issue a 
        decision that shall
                  [(A) include the reasons for approving or 
                disapproving the request, including a response 
                to comments on the proposal; and
                  [(B) in the case of a decision to approve the 
                request, be disseminated by the State seeking 
                the waiver to interested parties, including 
                educators, parents, students, advocacy and 
                civil rights organizations, labor and business 
                organizations, and the public.
          [(3) Approval criteria. In approving a request under 
        paragraph (2), the Secretary of Labor shall consider 
        the amount of State resources that will be used to 
        implement the approved State plan.
          [(4) Term.--Each waiver approved pursuant to this 
        subsection shall be for a period not to exceed 5 years, 
        except that the Secretary of Labor may extend such 
        period if the Secretary of Labor determines that the 
        waiver has been effective in enabling the State or 
        local partnership to carry out the purposes of this 
        Act.
    [(b) Waivers Not Authorized.--The Secretary of Labor may 
not waive any requirement under any provision of the Job 
Training Partnership Act (29 U.S.C. 1501 et seq.), or of any 
regulation issued under such provision, relating to--
          [(1) the basic purposes or goals of such provision;
          [(2) maintenance of effort;
          [(3) the distribution of funds;
          [(4) the eligibility of an individual for 
        participation in a program under such provisions;
          [(5) public health or safety, labor standards, civil 
        rights, occupational safety and health, or 
        environmental protection; or
          [(6) prohibitions or restrictions relating to the 
        construction of buildings or facilities.
    [(c) Termination of Waivers.--The Secretary of Labor shall 
periodically review the performance of any State or local 
partnership for which the Secretary of Labor has granted a 
waiver under this section and shall terminate the waiver under 
this section if the Secretary of Labor determines that the 
performance of the State or local partnership affected by the 
waiver has been inadequate to justify a continuation of the 
waiver, or the State fails to waive similar requirements of 
State law as required or agreed to in accordance with 
subsection (a)(1)(C).]
          * * * * * * *

Sec. 504. * * *

    (a) * * *
          * * * * * * *
          (2) * * *
          * * * * * * *
          * * * * * * *
                  (B) * * *
                          [(i) the provisions of law listed in 
                        paragraphs (2) through (6) of section 
                        502(b); and
                          [(ii) the Job Training Partnership 
                        Act (29 U.S.C. 1501 et seq.).]
                          (i) the provisions of law listed in 
                        paragraphs (2) through (5) of section 
                        502(b);
                          (ii) the Job Training Partnership Act 
                        (29 U.S.C. 1501 et seq.); and
                          (iii) the Carl D. Perkins Vocational 
                        and Applied Technology Education Act 
                        (20) U.S.C. 2301 et seq.)
    (b) Use of Funds.--A local partnership may use the Federal 
funds combined under subsection (a) under the requirements of 
this Act, except that the provisions relating to the matters 
specified in paragraphs (1) through (6) and paragraphs (8) and 
(9) of section 502(c), and paragraphs [(1) through (3) and 
paragraphs (5) and (6) of section 503(b)] paragraphs (2) 
through (4) and paragraphs (6) and (7) of section 505(b), that 
relate to the program through which the funds described in 
subsection (a)(2)(B) were made available, shall remain in 
effect with respect to the use of such funds.
           * * * * * * *

Sec. 505. * * *

           * * * * * * *
    [(b) Use of Funds.--A State may use, under the requirements 
of this Act, Federal funds that are made available to the State 
and combined under subsection (a) to carry out school-to-work 
activities, except that the provisions relating to the matters 
specified in section 502(c), and section 503(b), that relate to 
the program through which the funds described in subsection 
(a)(2)(B) were made available, shall remain in effect with 
respect to the use of such funds.]
    (b) Use of Funds.--A State may use, under the requirements 
of this Act, Federal funds that are made available to the State 
and combined under subsection (a) to carry out school-to-work 
activities, except that the provisions relating to--
          (1) the matters specified in section 502(c); or
          (2) basic purposes or goals;
          (3) maintenance of effort;
          (4) distribution of funds;
          (5) eligibility of an individual for participation;
          (6) public health or safety, labor standards, civil 
        rights, occupational safety and health, or 
        environmental protection; or
          (7) prohibitions or restrictions relating to the 
        construction of buildings or facilities; that relate to 
        the program through which the funds described in 
        subsection (a)(2)(B) were made available, shall remain 
        in effect with respect to the use of such funds''.
           * * * * * * *
                      TITLE 29--UNITED STATES CODE

           * * * * * * *

                      JOB TRAINING PARTERSHIP ACT

Sec. 1691 * * *

           * * * * * * *
Sec. 439A. Operating Plan.

    (a) Submission of Plan.--To be eligible to operate a Job 
Corps center and receive assistance under this part for fiscal 
year 1997, an entity shall prepare and submit, to the Secretary 
and the Governor of the State in which the center is located, 
and obtained the approval of the Secretary for, an operating 
plan that shall include, at a minimum, information indicating--
          (1) in quantifiable terms, the extent to which the 
        center will contribute to the achievement of the 
        proposed State goals and State benchmarks identified in 
        the interim plan for the State submitted under section 
        211 of the Workforce Development Act of 1995;
          (2) the extent to which workforce employment 
        activities and workforce education activities delivered 
        through the Job Corps center are directly linked to the 
        workforce development needs of the industry sectors 
        most important to the economic competitiveness of the 
        State; and
          (3) an implementation strategy to ensure that all 
        enrollees assigned to the Job Corps center will have 
        access to services through the one-stop career center 
        system of the State identified in the interim plan.
    (b) Submission of Comments.--Not later than 30 days after 
receiving an operating plan described in subsection (a), the 
Governor of the State in which the center is located may submit 
comments on the plan to the Secretary.
    (c) Approval.--The Secretary shall not approve an operating 
plan described in subsection (a) for a center if the Secretary 
determines that the activities proposed to be carried out 
through the center are not sufficiently integrated with the 
activities carried out through the system of the State in which 
the center is located.
          * * * * * * *
                      TITLE 5--UNITED STATES CODE

          * * * * * * *

Sec. 11. As used in this Act--

    (1) the term ``head of the establishment'' means the 
Secretary of Agriculture, Commerce, Defense, Education, Energy, 
Health and Human Services, Housing and Urban Development, the 
Interior, Labor, State, Transportation, or the Treasury; the 
Attorney General; the Governing Board of the Workforce 
Development Partnership; the Administrator of the Agency for 
International Development, Environmental Protection, General 
Services, National Aeronautics and Space, or Small Business, or 
Veterans' Affairs; the Director of the Federal Emergency 
Management Agency, the Office of Personnel Management or the 
United States Information Agency; the Chairman of the Nuclear 
Regulatory Commission or the Railroad Retirement Board; the 
Chairperson of the Thrift Depositor Protection Oversight Board 
and the chief officer of the Resolution Trust Corporation; as 
the case may be;
    (2) the term ``establishment'' means the Department of 
Agriculture, Commerce, Defense, Education, Energy, Health and 
Human Services, Housing and Urban Development, the Interior, 
Justice, Labor, State, Transportation, or the Treasury; the 
Workforce Development Partnership; the Agency for International 
Development, the Environmental Protection Agency, the Federal 
Emergency Management Agency, the General Services 
Administration, the National Aeronautics and Space 
Administration, the Nuclear Regulatory Commission, the Office 
of Personnel Management, the Railroad Retirement Board, the 
Resolution Trust Corporation, the Small Business 
Administration, the United States Information Agency, or the 
Veterans' Administration; as the case may be;
          * * * * * * *

Sec. 5315. * * *

          * * * * * * *
    [Assistant Secretaries of Labor (10)], Assistant 
Secretaries of Labor (9), one of whom shall be the Assistant 
Secretary of Labor for Veterans' Employment and Training.
          * * * * * * *
    [(Assistant Secretaries of Education (10)]
    (Assistant Secretaries of Education (9)
          * * * * * * *

                      TITLE 20--UNITED STATES CODE

                DEPARTMENT OF EDUCATION ORGANIZATION ACT

          * * * * * * *

Sec. 3412. * * *

          * * * * * * *
    (b) * * *
          (1) * * *
          * * * * * * *
                  [(C) an Assistant Secretary for Vocational 
                and Adult Education;]
                  [(D)] (C) an Assistant Secretary for Special 
                Education and Rehabilitative Services;
                  [(E)] (D) an Assistant Secretary for Civil 
                Rights; and
                  [(F)] (E) a General Counsel.
          * * * * * * *
    [(h) Literacy related programs in the Department of 
Education. The Assistant Secretary for Vocational and Adult 
Education, in addition to performing such functions as the 
Secretary may prescribe, shall have responsibility for 
coordination of all literacy related programs and policy 
initiatives in the Department. The Assistant Secretary for 
Vocational and Adult Education shall assist in coordinating the 
related activities and programs of other Federal departments 
and agencies.]
    [(i)] (h) Liaison for Community and Junior Colleges.
          * * * * * * *

[Sec. 3416. Office of Vocational and Adult Education

    [There shall be in the Department an Office of Vocational 
and Adult Education, to be administered by the Assistant 
Secretary for Vocational and Adult Education appointed under 
section 202(b). The Assistant Secretary shall administer such 
functions affecting vocational and adult education as the 
Secretary shall delegate, and shall serve as principal adviser 
to the Secretary on matters affecting vocational and adult 
education. The Secretary, through the Assistant Secretary, 
shall also provide a unified approach to rural education and 
rural family education through the coordination of programs 
within the Department and shall work with the Federal 
Interagency Committee on Education to coordinate related 
activities and programs of other Federal departments and 
agencies.]
          * * * * * * *

                      TITLE 20--UNITED STATES CODE

          * * * * * *

                IMPROVING AMERICA'S SCHOOLS ACT OF 1994

          * * * * * * *

Sec. 9001. * * *

    (c) Definitions.--For the purpose of this title and unless 
otherwise specified--
          (1) the term ``Assistant Secretary'' means the 
        Assistant Secretary for Educational Research and 
        Improvement [established under section 202(b)(1)(E) of 
        the Department of Education Organization Act];
          * * * * * * *

                      TITLE 20--UNITED STATES CODE

                    GOALS 2000: EDUCATE AMERICA ACT

          * * * * * * *

Sec. 6031. * * *

          * * * * * * *
    (h) * * *
          * * * * * * *
          (3) * * *
          * * * * * * *
                  (A) * * *
          * * * * * * *
                          [(iii) the Office of Vocational and 
                        Adult Education; (iv) the National 
                        Institute on Disability and 
                        Rehabilitation Research; and (v) the 
                        Office of Postsecondary Education;]
                          [(iv)] (iii) the National Institute 
                        on Disability and Rehabilitation 
                        Research; and
                          [(v) (iv) the Office of Postsecondary 
                        Education;
          * * * * * * *

                      TITLE 29--UNITED STATES CODE

        VETERANS' BENEFITS AND PROGRAMS IMPROVEMENT ACT OF 1988

          * * * * * * *

Sec. 1721 Note. * * *

          * * * * * * *
    (d) * * *
          * * * * * * *
          ``(3) Employment assistance and unemployment 
        compensation under the trade adjustment assistance 
        program provided in chapter 2 of title II of the Trade 
        Act of 1974 [and under any other program administered 
        by the Employment and Training Administration of the 
        Department of Labor].
          * * * * * * *

                      TITLE 38--UNITED STATES CODE

          * * * * * * *

Sec. 4110 * * *

          * * * * * * *
    (d) * * *
          * * * * * * *
          [(7) The Assistant Secretary of Labor for Employment 
        and Training.]
          [(8)] (7) The Chairman of the Equal Employment 
        Opportunity Commission.
          [(9)] (8) The Administrator of the Small Business 
        Administration.
          [(10)] (9) The Postmaster General.
          [(11)] (10) The Director of the United States 
        Employment Service.
          [(12)] (11) Representatives of--
          * * * * * * *

                      TITLE 42--UNITED STATES CODE

              NATIONAL COMMUNITY AND SERVICE ACT OF 1990.

          * * * * * * *

Sec. 12622 * * *

          * * * * * * *
    (b) Secretary of Labor. Upon the establishment of the 
Program, the Secretary of Labor shall identify and assist in 
establishing a system for the recruitment of persons to serve 
as members of the Civilian Community Corps. [In carrying out 
this subsection, the Secretary of Labor may utilize the 
Employment Service Agency [or the Office of Job Training]].
          * * * * * * *

                      TITLE 5--UNITED STATES CODE

          * * * * * * *

Sec. 3327. * * *

    (a) The Office of Personnel Management shall provide that 
information concerning opportunities to participate in 
competitive examinations conducted by, or under authority 
delegated by, the Office of Personnel Management shall be made 
available to [the employment offices of the United States 
Employment Service] Governors.
    (b) Subject to such regulations as the Office may issue, 
each agency shall promptly notify the Office and the employment 
offices [of the United States Employment Service] of--
          * * * * * * *

                      TITLE 10--UNITED STATES CODE

          * * * * * * *

Sec. 1143a * * *

    (d) * * *
          * * * * * * *
          [(3) The Secretary may provide personnel registered 
        under subsection (b) with access to the interstate job 
        bank program of the United States Employment Service if 
        the Secretary determines that such program meets the 
        needs of separating members of the armed forces for job 
        placement.]
          * * * * * * *

Sec. 2410k * * *

          * * * * * * *
    (b) Requirement.--The regulations promulgated under this 
section shall require each contractor carrying out a contract 
described in subsection (c) to list immediately with the 
appropriate local employment service office[, and where 
appropriate the Interstate Job Bank (established by the Untied 
States Employment Service),] all of its suitable employment 
openings under such contract.
          * * * * * * *

                      TITLE 26--UNITED STATES CODE

                     INTERNAL REVENUE CODE OF 1986

          * * * * * * *

Sec. 51 * * 

          * * * * * * *
    [(g) United States Employment Service to notify employers 
of availability of credit, The United States Employment 
Service, in consultation with the Internal Revenue service, 
shall take such steps as may be necessary or appropriate to 
keep employers apprised of the availability of the targeted 
jobs credit determined under this subpart.]
          * * * * * * *

                      TITLE 29--UNITED STATES CODE

          * * * * * * *

        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1993

          * * * * * * *

Sec. 1662d-1 note

          * * * * * * *
    [Job Bank program for discharged military personnel, 
terminated defense employees, and displaced employees of 
defense contractors. Act Oct. 23, 1992,
    [Section 4468, 106 Stat. 2752, provides:
    [``(a) Interstate Job Bank program. The Secretary of 
Defense shall establish a program to expand the services of and 
provide access to the Interstate Job Bank program in the United 
States Employment Service to individuals eligible for training, 
adjustment assistance, and employment services under sections 
325 and 325A of the Job Training Partnership Act and, in the 
case of members of the Armed Forces so eligible, the spouses of 
such members. The Secretary may establish such program in 
coordination with the Defense Outplacement Referral system and 
other automated job opening networks.
    [``(b) Services included. The program established under 
subsection (a) may include the following services:
          [``(1) A phone bank reachable by a toll-free number, 
        staffed by an international ``help desk'' of 
        individuals familiar with the services provided under 
        section 1144 of title 10, United States Code, and 
        related transition programs under chapter 58 of such 
        title (in the case of members of the Armed Forces, 
        priority shall be given to recently-discharged 
        veterans, members of the Armed Forces who have been 
        separated from active duty, and their spouses).
          [``(2) Interstate Job Bank satellite offices or 
        systems at defense contractor plants by State 
        employment security agencies and at all military bases 
        for direct access and self service to job listings.
          [``(3) Specialized job banks to integrate with the 
        Interstate Job Bank for specialized listings or 
        services such as the Defense Outplacement Referral 
        System (DORS) of resumes, National Academy of Sciences 
        Network, commercial systems, and the outplacement of 
        defense-related personnel in high-tech occupations 
        through the expansion and coordination of existing 
        networks to ensure that resources are available at all 
        service locations.
          [``(4) A system by which individuals and public and 
        private organizations may access the Interstate Job 
        Bank using individual modems or related automated 
        employment systems.
          [``(c) Funding for fiscal year 1993. Of the amount 
        authorized to be appropriated in section 301 
        [unclassified] for Defense Agencies, $4,000,000 shall 
        be available to carry out the program established under 
        subsection (a).'']
          * * * * * * *

                      TITLE 38--UNITED STATES CODE

          * * * * * * *

Sec. 4110 * * *

          * * * * * * *
    (d) * * *
          * * * * * * *
          [(10) The Postmaster General.]
          [(11)](10) The Director of the United States 
        Employment Service.
          * * * * * * *

                      TITLE 39--UNITED STATES CODE

          * * * * * * *

Sec. 3202. * * *

    (a) * * *
          (1) * * *
          * * * * * * *
                  (D) the Pan American Sanitary Bureau[;]; and
                  [(E) the United States Employment Service and 
                the system of employment offices operated by it 
                in conformity with the provisions of sections 
                49-49c, 49d, 49e-49k of title 29, and all State 
                employment systems which receive funds 
                appropriated under authority of those sections; 
                and]
                  [(F)](E) any college officer or other person 
                connected with the extension department of the 
                college as the Secretary of Agriculture may 
                designate to the Postal Service to the extent 
                that the official mail consists of 
                correspondence, bulletins, and reports for the 
                furtherance of the purpose of section 341-343 
                and 344-348 of title 7;
          * * * * * * *

Sec. 3203 * * *

          * * * * * * *
    (b) The Postal Service shall prescribe the endorsement to 
be placed on covers mailed under clauses [(1)(E), (2), and (3)] 
(2) and (3) of section 3202(a) of this title.
          * * * * * * *

Sec. 3206 * * *

          * * * * * * *
    (b) The Department of Agriculture shall transfer to the 
Postal Service as postal revenues out of any appropriations 
made to it for that purpose the equivalent amount of postage, 
as determined by the Postal Service, for penalty mailings under 
clauses [(1)(F)](1)(E) and (4) of section 3202(a) of this 
title.
          * * * * * * *

                      TITLE 29--UNITED STATES CODE

                       REHABILITATION ACT OF 1973

          * * * * * * *

Sec. 701. * * *

    (a) * * *
          * * * * * * *
          (4) increased employment of individuals with 
        disabilities can be achieved through the [provision of 
        individualized training, independent living services, 
        educational and support services,] implemenation of a 
        statewide work force development system that provides 
        meaningful and effective participation for individuals 
        with disabilities in work force development activities 
        and activities carried out through the vocational 
        rehabilitation program established under title I, and 
        through the provision of independent living services, 
        support services, and meaningful opportunities for 
        employment in integrated work settings through the 
        provision of reasonable accommodations;
          * * * * * * *
    (b) * * *
          (1) * * *
                  (A) statewide work force development systems 
                that include, as integral components, 
                comprehensive and coordinated state-of-the-art 
                programs of vocational rehabilitation;

[Sec. 705. Consolidated rehabilitation plan

    [(a) Election by State; agency concurrence. In order to 
secure increased flexibility to respond to the varying needs 
and local conditions within the State, and in order to permit 
more effective and interrelated planning and operation of its 
rehabilitation programs, the State may submit a consolidated 
rehabilitation plan which includes the State's plan under 
section 101(a) of this Act and its program for persons with 
developmental disabilities under the Developmental Disabilities 
Assistance and Bill of Rights Act Provided, That the agency 
administering such State's program under such Act concurs in 
the submission of such a consolidated rehabilitation plan.
    [(b) Approval by Secretary of consolidated rehabilitation 
plan meeting statutory requirements; submission by State of 
separate rehabilitation plans. Such a consolidated 
rehabilitation plan must comply with, and be administered in 
accordance with, all the requirements of this Act and the 
Developmental Disabilities Assistance and Bill of Rights Act If 
the Secretary finds that all such requirements are satisfied, 
the Secretary may--
          [(1) approve the plan to serve in all respect as the 
        substitute for the separate plans which would otherwise 
        be required with respect to each of the programs 
        included therein; or
          [(2) advise the State to submit separate plans for 
        such programs.
    [(c) Noncompliance; assistance termination procedures. 
Findings of noncompliance in the administration of an approved 
consolidated rehabilitation plan, and any reductions, 
suspensions, or terminations of assistance as a result thereof, 
shall be carried out in accordance with the procedures set 
forth in subsections (c) and (d) of section 107 of this Act.]
          * * * * * * *

Sec. 706. * * *

          * * * * * * *
          (35) * * *
          (36) The term ``statewide workforce development 
        system'' means a system, as defined in section 3 of the 
        Workforce Development Act of 1995.
          (37) The term ``workforce development activities'' 
        has the meaning given the term in section 3 of the 
        Workforce Development Act of 1995.
          (38) The term ``workforce development activities'' 
        means the activities described in paragraphs (2) 
        through (8) of section 113(a) of the Workforce 
        Development Act of 1995, including such activities 
        provided through vouchers described in section 
        113(a)(9) of such Act.
          * * * * * * *

Sec. 711 * * *

    (a) * * *
          (1) provide consultative services and technical 
        assistance to public or nonprofit private agencies and 
        organizations, including providing assistance to 
        achieve the meaningful and effective participation by 
        individuals with disabilities in the activities carried 
        out through a statewide workforce development system;
          * * * * * * *

Sec. 712. Reports to President and Congress

    Not later than one hundred and twenty days after the close 
of each fiscal year, the Commissioner shall prepare and submit 
to the President and to the Congress a full and complete report 
on the activities carried out under this Act, including the 
activities and staffing of the information clearinghouse under 
section 15. The Commissioner shall annually collect information 
on each client whose case is closed out in the preceding fiscal 
year and include the information in the report required by this 
section. The information shall set forth a complete count of 
such cases in a manner permitting the greatest possible cross-
classification of data. [The data elements shall include, but 
not be limited to, age,] The information shall include all 
information that is required to be submitted in the report 
described in section 114(a) of the Workforce Development Act of 
1995 and that pertains to the employment of individuals with 
disabilities, including information on age, sex, race, 
ethnicity, education, type of disability, severity of 
disability, key rehabilitation process dates, earnings at time 
of entry into program and at closure, work status, occupation, 
cost of case services, types of services provided, including 
types of rehabilitation technology services provided, types of 
facilities or agencies which furnished services and whether 
each such facility or agency is public or private, and reasons 
for closure. The Commissioner shall take whatever action is 
necessary to ensure that the identity of each client for which 
information is supplied under this subsection is confidential. 
Such annual reports shall also include statistical data 
reflecting services and activities provided individuals during 
the preceding fiscal year. The annual report shall include an 
evaluation of the status of individuals with severe 
disabilities participating in programs under this Act.
          * * * * * * *

Sec. 713. * * *

    (a) Statement of purpose; standards; persons eligible to 
conduct evaluations. For the purpose of improving program 
management and effectiveness, the Secretary, in consultation 
with the Commissioner, shall evaluate all the programs 
authorized by this Act, their general effectiveness in relation 
to their cost, their impact on related programs, and their 
structure and mechanisms for delivery of services, using 
appropriate methodology and evaluative research designs. The 
Secretary shall establish and use standards for the evaluations 
required by this subsection. The standards shall, [to the 
extent feasible, for all appropriate programs include standards 
relating to the increases in employment and earnings, taking 
into account economic factors in the area to be served by the 
program, the characteristics of the individuals with 
disabilities to be served, and the employment outcome to be 
attained.] to the maximum extent appropriate, be consistent 
with the State benchmarks established under paragraphs (1) and 
(2) of section 14(c) of the Workforce Development Act of 1995. 
For purposes of this section, the Secretary may modify or 
supplement such benchmarks after consultation with the 
Governing Board established under section 301(b) of the 
Workforce Development Act of 1995, to the extent necessary to 
address unique considerations applicable to the participation 
of individuals with disabilities in the vocational 
rehabilitation program established under title I and activities 
carried out under other provisions of this Act.
    Evaluations shall be conducted by persons not immediately 
involved in the administration of the program or project 
evaluated.
          * * * * * * *

Sec. 720 * * *

    (a) * * *
          * * * * * * *
          (1) * * *
                  (E) enforcement of title V and of the 
                Americans with Disabilities Act of 1990 holds 
                the promise of ending discrimination for 
                individuals with disabilities[; and];
                  (F) the provision of workforce development 
                activities and vocational rehabilitation 
                services can enable individuals with 
                disabilities, including individuals with the 
                most severe disabilities, to pursue meaningful 
                careers by securing gainful employment 
                commensurate with their abilities and 
                capabilities[.]; and
                  (G) linkages between the vocational 
                rehabilitation program established under this 
                title and other components of the statewide 
                workforce development system are critical to 
                ensure effective and meaningful participation 
                by individuals with disabilities in workforce 
                development activities.
          * * * * * * *
          (2) The purpose of this title is to assist States in 
        operating [a comprehensive] statewide comprehensive, 
        coordinated, effective, efficient, and accountable 
        [program of vocational rehabilitation that is designed] 
        programs of vocational rehabilitation, each of which 
        is--
                  (A) an integral component of a statewide 
                workforce development system; and
                  (B) designed to assess, plan, develop, and 
                provide vocational rehabilitation services for 
                individuals concerns, abilities, and 
                capabilities, so that such individuals may 
                prepare for and engage in gainful employment.
          * * * * * * *

Sec. 721 * * *

    (a) Three year plan; annual revisions; general and specific 
requirements. In order to be eligible to participate in 
programs under this title, a State shall submit to the 
Commissioner a State plan for vocational rehabilitation 
services for a 3-year period[, or shall submit the plan on such 
date, and at such regular intervals, as the Secretary may 
determine to be appropriate to coincide with the intervals at 
which the State submits State plans under other Federal laws, 
such as part B of the Individuals with Disabilities Education 
Act (20 U.S.C. 1411 et seq.)]. and shall submit the State plan 
on the same dates as the State submits the State plan described 
in section 104 of the Workforce Development Act of 1995 to the 
Governing Board established under section 301(b) of such Act. 
The State shall also submit the State plan for vocational 
rehabilitation services for review and comment to any State 
workforce development board established for the State under 
section 105(b) of the Workforce Development Act of 1995, which 
shall submit the comments on the State plan to the designated 
State unit. In order to be eligible to participate in programs 
under this title, a State, upon the request of the 
Commissioner, shall make such annual revisions in the plan as 
may be necessary. Each such plan shall--
          * * * * * * *
          (1) * * *
          * * * * * * *
                  (B) provide that the State agency so 
                designated to administer or supervise the 
                administration of the State plan, or (if there 
                are two State agencies designated under 
                subparagraph (A) of this paragraph) to 
                supervise or administer the part of the State 
                plan that does not relate to services for 
                individuals who are blind, shall be (i) a State 
                entity primarily responsible for implementing 
                workforce employment activities through the 
                statewide workforce development system of the 
                State, [(i)] (ii) a State agency primarily 
                concerned with vocational rehabilitation, or 
                vocational and other rehabilitation, of 
                individuals with disabilities, [(ii)] (iii) the 
                State agency administering or supervising the 
                administration of education or vocation 
                education in the State, or [(iii)] (iv) a State 
                agency which includes at least two other major 
                organizational units each of which administers 
                one or more of the major public education, 
                public health, public welfare, or labor 
                programs of the State;
          (2) * * *
provide, except in the case of agencies described in paragraph 
[(1)(B)(i)] (1)(B)(ii)--
          * * * * * * *
                  (B)(i) that such unit shall be located at an 
                organizational level and shall have an 
                organizational status within such State agency 
                comparable to that of other major 
                organizational units of such agency, or (ii) in 
                the case of an agency described in paragraph 
                [(1)(B)(ii)] (1)(B)(iii), either that such unit 
                shall be so located and have such status, or 
                that the director of such unit shall be the 
                executive officer of such State agency; except 
                that, in the case of a State which has 
                designated only one State agency pursuant to 
                paragraph (1) of this subsection, such State 
                may, if it so desires, assign responsibility 
                for the part of the plan under which vocational 
                rehabilitation services are provided for 
                individuals who are blind to one organizational 
                unit of such agency, and assign responsibility 
                for the rest of the plan to another 
                organizational unit of such agency, with the 
                provisions of this paragraph applying 
                separately to each of such units;
          (3) provide a plan for expanding and improving 
        vocational rehabilitation services for individuals with 
        disabilities on a statewide basis, including--
                  (A) a statement of values and goals;
                  (B) evidence of ongoing efforts to use 
                outcome measures to make decisions about the 
                effectiveness and future direction of the 
                vocational rehabilitation program established 
                under this title in the State; and
                  (C) information on specific strategies for 
                strengthening the program as an integral 
                component of the statewide workforce 
                development system established in the State, 
                including specific innovative, state-of-the-art 
                approaches for achieving sustained success in 
                improving and expanding vocational 
                rehabilitation services provided through the 
                program, for all individuals with disabilities 
                who seek employment, through plans, policies, 
                and procedures to link the program with other 
                components of the system, including plans, 
                policies, and procedures relating to--
                          (i) entering into cooperative 
                        agreements, between the designated 
                        State unit and appropriate entities 
                        responsible for carrying out the other 
                        components of the system, which 
                        agreements may provide for--
                                  (I) provision of 
                                intercomponent staff training 
                                and technical assistance 
                                regarding the availability and 
                                benefits of, and eligibility 
                                standards for, vocational 
                                rehabilitation services, and 
                                regarding the provision of 
                                equal, effective, and 
                                meaningful participation by 
                                individuals with disabilities 
                                in workforce employment 
                                activities in the State through 
                                program accessibility, use of 
                                nondiscriminatory policies and 
                                procedures, and provision of 
                                reasonable accommodations, 
                                auxiliary aids and services, 
                                and rehabilitation technology, 
                                for individuals with 
                                disabilities;
                                  (II) use of information and 
                                financial management systems 
                                that link all components of the 
                                statewide workforce development 
                                system, that link the 
                                components to other electronic 
                                networks, and that relate to 
                                such subjects as labor market 
                                information, and information on 
                                job vacancies, skill 
                                qualifications, career 
                                planning, and workforce 
                                development activities;
                                  (III) use of customer service 
                                features such as common intake 
                                and referral procedures, 
                                customer data bases, resource 
                                information and human service 
                                hotlines;
                                  (IV) establishment of 
                                cooperative efforts with 
                                employers to facilitate job 
                                placement and to develop and 
                                sustain working relationships 
                                with employers, trade 
                                associations, and labor 
                                organizations;
                                  (V) identification of staff 
                                roles and responsibilities and 
                                available resources for each 
                                entity that carries out a 
                                component of the system with 
                                regard to paying for necessary 
                                services (consistent with State 
                                law); and
                                  (VI) specification of 
                                procedures for resolving 
                                disputes among such entities; 
                                and
          [(3)] (4) * * *
          [(4)] (5) * * *
          [(5)] (6) * * *
                  [(A) contain the plans, policies, and methods 
                to be followed in carrying out the State plan 
                and in its administration and supervision, 
                including the results of a comprehensive, 
                Statewide assessment of the rehabilitation 
                needs of individuals with severe disabilities 
                residing within the State and the State's 
                response to the assessment, a description of 
                the method to be used to expand and improve 
                services to individuals with the most severe 
                disabilities, including individuals served 
                under part C of title VI of this Act and a 
                description of the method to be used to utilize 
                community rehabilitation programs to the 
                maximum extent feasible, an explanation of the 
                methods by which the State will provide 
                vocational rehabilitation services to all 
                individuals with disabilities within the State 
                who are eligible for such services, and, in the 
                event that vocational rehabilitation services 
                cannot be provided to all eligible individuals 
                with disabilities who apply for such services, 
                (i) show and provide the justification for the 
                order to be followed in selecting individuals 
                to whom vocational rehabilitation services will 
                be provided, and (ii) show the outcomes and 
                service goals, and the time within which they 
                may be achieved, for the rehabilitation of such 
                individuals, which order of selection for the 
                provision of vocational rehabilitation services 
                shall be determined on the basis of serving 
                first those individuals with the most severe 
                disabilities in accordance with criteria 
                established by the State, and shall be 
                consistent with priorities in such order of 
                selection so determined, and outcome and 
                service goals for serving individuals with 
                disabilities, established in regulations 
                prescribed by the Commissioner;]
                  (A) contain the plans, policies, and methods 
                to be followed in carrying out the State plan 
                and in the administration and supervision of 
                the plan, including--
                          (i)(I) the results of a 
                        comprehensive, statewide assessment of 
                        the rehabilitation needs of individuals 
                        with disabilities (including 
                        individuals with severe disabilities, 
                        individuals with disabilities who are 
                        minorities, and individuals with 
                        disabilities who have been unserved, or 
                        underserved, by the vocational 
                        rehabilitation system) who are residing 
                        within the State; and
                          (II) the response of the State to the 
                        assessment;
                          (ii) a description of the method to 
                        be used to expand and improve service 
                        to individuals with the most severe 
                        disabilities, including individuals 
                        served under part C of title VI;
                          (iii) with regard to community 
                        rehabilitation programs--
                                  (I) a description of the 
                                method to be used (such as a 
                                cooperative agreement) to 
                                utilize the programs to the 
                                maximum extent feasible; and
                                  (II) a description of the 
                                needs of the programs, 
                                including the community 
                                rehabilitation programs funded 
                                under the Act entitled ``An Act 
                                to Create a Committee on 
                                Purchases of Blind-made 
                                Products, and for other 
                                purposes'', approved June 25, 
                                1938 (commonly known as the 
                                Wagner-O'Day Act; 41 U.S.C. 46 
                                et seq.) and such programs 
                                funded by State use contracting 
                                programs; and
                          (iv) an explanation of the methods by 
                        which the State will provide vocational 
                        rehabilitation services to all 
                        individuals with disabilities within 
                        the State who are eligible for such 
                        services, and, in the event that 
                        vocational rehabilitation services 
                        cannot be provided to all such eligible 
                        individuals with disabilities who apply 
                        for such services, information--
                                  (I) showing and providing the 
                                justification for the order to 
                                be followed in selecting 
                                individuals to whom vocational 
                                rehabilitation services will be 
                                provided (which order of 
                                selection for the provision of 
                                vocational rehabilitation 
                                services shall be determined on 
                                the basis of serving first the 
                                individuals with the most 
                                severe disabilities in 
                                accordance with criteria 
                                established by the State, and 
                                shall be consistent with 
                                priorities in such order of 
                                selection so determined, and 
                                outcome and service goals for 
                                serving individuals with 
                                disabilities, established in 
                                regulations prescribed by the 
                                Commissioner);
                                  (II) showing the outcomes and 
                                service goals, and the time 
                                within which the outcomes and 
                                service goals may be achieved, 
                                for the rehabilitation of 
                                individuals receiving such 
                                services; and
                                  (III) describing how 
                                individuals with disabilities 
                                who will not receive such 
                                services if such order is in 
                                effect will be referred to 
                                other components of the 
                                statewide workforce development 
                                system for access to services 
                                offered by the components;
          * * * * * * *
                  [(C) describe
                          [(i) how a broad range of 
                        rehabilitation technology services will 
                        be provided at each stage of the 
                        rehabilitation process;
                          [(ii) how a broad range of such 
                        rehabilitation technology services will 
                        be provided on a statewide basis; and
                          [(iii) the training that will be 
                        provided to vocational rehabilitation 
                        counselors, client assistance 
                        personnel, and other related services 
                        personnel;]
                  (C) with regard to the statewide assessment 
                of rehabilitation needs described in 
                subparagraph (A)(i)--
                          (i) provide that the State agency 
                        will make reports at such time, in such 
                        manner, and containing such 
                        information, as the Commissioner may 
                        require to carry out the functions of 
                        the Commissioner under this title, and 
                        comply with such provisions as are 
                        necessary to assure the correctness and 
                        verification of such reports; and
                          (ii) provide that reports made clause 
                        (i) will include information regarding 
                        individuals with disabilities and, if 
                        an order of selection described in 
                        subparagraph (A)(iv)(I) is in effect in 
                        the State, will separately include 
                        information regarding individuals with 
                        the most severe disabilities, on--
                                  (I) the number of such 
                                individuals who are evaluated 
                                and the number rehabilitated;
                                  (II) the costs of 
                                administration, counseling, 
                                provision of direct services, 
                                development of community 
                                rehabilitation programs, and 
                                other functions carried out 
                                under this Act; and
                                  (III) the utilization by such 
                                individuals of other programs 
                                pursuant to paragraph (11); and
                  (D) describe--
                          (i) how a broad range of 
                        rehabilitation technology services will 
                        be provided at each stage of the 
                        rehabilitation process;
                          (ii) how a broad range of such 
                        rehabilitation technology services will 
                        be provided on a statewide basis; and
                          (iii) the training that will be 
                        provided to vocational rehabilitation 
                        counselors, client assistance 
                        personnel, personnel of the one-stop 
                        career system authorized under section 
                        113(a)(2) of the Workforce Development 
                        Act of 1995, and other related services 
                        personnel;
          [(6)] (7) * * *
          [(7)] (8) * * *
                  (A) * * *
          * * * * * * *
                          (i) * * *
          * * * * * * *
                                  (II) the number and type of 
                                personnel needed by the State, 
                                and a projection of the numbers 
                                of such personnel that will be 
                                needed in 5 years, [based on 
                                projections of the number of 
                                individuals to be served, the 
                                number of such personnel who 
                                are expected to retire or leave 
                                the field, and other relevant 
                                factors];
          * * * * * * *
                          [(iii) a description of the 
                        development and maintenance of a system 
                        of determining, on an annual basis, 
                        information on the institutions of 
                        higher education within the State that 
                        are preparing rehabilitation 
                        professionals, including--
                                  [(I) the numbers of students 
                                enrolled in such programs; and
                                  [(II) the number who 
                                graduated with certification or 
                                licensure, or with credentials 
                                to qualify for certification or 
                                licensure, during the past 
                                year;
                          [(iv) a description of the 
                        development, updating, and 
                        implementation of a plan that--]
                          (iii) a description of the ways in 
                        which the system for evaluating the 
                        performance of rehabilitation 
                        counselors, coordinator, and other 
                        personnel used in the State facilitates 
                        the accomplishment of the purpose and 
                        policy of this title, including the 
                        policy of serving, among others, 
                        individuals with the most severe 
                        disabilities;
                          (iv) provide satisfactory assurances 
                        that the system in no way impedes such 
                        accomplishment; and
          * * * * * * *
          [(8)] (9) Consideration of eligibility for similar 
        benefits under any other program. Provide, at a 
        minimum, for the provision of the vocational 
        rehabilitation services specified in paragraphs (1) 
        through (3) and paragraph (12) of section 103(a), and 
        for the provision of such other services as are 
        specified under such section after a determination that 
        comparable services and benefits are not available 
        under any other program, except that such a 
        determination shall not be [required--
                  (A) if the determination would delay the 
                provision of such services to any individual at 
                extreme medical risk; or
                  (B) prior] required prior to the provision of 
                such services if an immediate job placement 
                would be lost due to a delay in the provision 
                of such comparable benefits;
          [(9)] (10) * * *
                  (A) * * *
                  (B) an individualized [written rehabilitation 
                program] employment plan meeting the 
                requirements of section 102 will be developed 
                for each individual with a disability eligible 
                for vocational rehabilitation services under 
                this Act;
                  (C) such services will be provided under [the 
                plan in accordance with such program] State 
                plan in accordance with the employment plan; 
                and
          [(10) Reports of State agency; form, scope of 
        information; time of report; correctness and 
        verification.
                  [(A) provide that the State agency will make 
                such reports in such form, containing such 
                information (including the data described in 
                subparagraph (D) of paragraph (9) of this 
                subsection, periodic estimates of the 
                population of individuals with disabilities 
                eligible for services under this Act in such 
                State, specifications of the number of such 
                individuals who will be served with funds 
                provided under this Act and the outcomes and 
                service goals to be achieved for such 
                individuals in each priority category specified 
                in accordance with paragraph (5) of this 
                subsection, and the service costs for each such 
                category), and at such time as the Commissioner 
                may require to carry out the functions of the 
                Commissioner under this title, and comply with 
                such provisions as are necessary to assure the 
                correctness and verification of such reports; 
                and
                  [(B) provide that reports under subparagraph 
                (A) will include information on--
                          [(i) the number of such individuals 
                        who are evaluated and the number 
                        rehabilitated;
                          [(ii) the costs of administration, 
                        counseling, provision of direct 
                        services, development of community 
                        rehabilitation programs, and other 
                        functions carried out under this Act; 
                        and
                          [(iii) the utilization by such 
                        individuals of other programs pursuant 
                        to paragraph (11);]
          (11) Intergovernmental cooperation.
                  (A) provide for interagency cooperation with, 
                and the utilization of the services and 
                facilities of, the State agencies administering 
                the [State's public assistance programs, other 
                programs for individuals with disabilities, 
                veterans programs, community mental health 
                programs, manpower programs, and public 
                employment offices, and the Social Security 
                Administration of the Department of Health and 
                Human Services, the Department of Veterans 
                Affairs, and other Federal, State, and local 
                public agencies providing services related to 
                the rehabilitation of individuals with 
                disabilities (specifically including 
                arrangements for the coordination of services 
                to individuals eligible for services under this 
                Act, the Individuals with Disabilities 
                Education Act, the Carl D. Perkins Vocational 
                and Applied Technology Education Act, and the 
                Act entitled ``An Act to create a Committee on 
                Purchases of Blind-made Products, and for other 
                purposes'', approved June 25, 1938] State 
                programs that are not part of the statewide 
                workforce development system of the State;
          * * * * * * *
                  (C) in providing for interagency cooperation 
                under subparagraph (A), provide for such 
                cooperation by means including, [if 
                appropriate--
                          (i) establishing interagency working 
                        groups; and
                          (ii) entering into] if appropriate, 
                        entering into formal interagency 
                        cooperative agreements that--
                                  [(I)] (i) identify policies, 
                                practices, and procedures that 
                                can be coordinated among the 
                                agencies (particularly 
                                definitions, standards for 
                                eligibility, the joint sharing 
                                and use of evaluations and 
                                assessments, and procedures for 
                                making referrals);
                                  [(II)] (ii) identify 
                                available resources and define 
                                the financial responsibility of 
                                each agency for paying for 
                                necessary services (consistent 
                                with State law) and procedures 
                                for resolving disputes between 
                                agencies; and
                                  [(III)] (iii) include all 
                                additional components necessary 
                                to ensure meaningful 
                                cooperation and coordination;
          [(12) Community resources; utilization; agreement for 
        services provided by rehabilitation facilities.
                  [(A) provide satisfactory assurances to the 
                Commissioner that, in the provision of 
                vocational rehabilitation services, maximum 
                utilization shall be made of public or other 
                vocational or technical training programs or 
                other appropriate resources in the community; 
                and
                  [(B) provide (as appropriate) for entering 
                into agreements with the operators of community 
                rehabilitation programs for the provision of 
                services for the rehabilitation of individuals 
                with disabilities;]
          [(13) Disabled Federal employees; disabled public 
        safety officers.
                  [(A) provide that vocational rehabilitation 
                services provided under the State plan shall be 
                available to any civil employee of the United 
                States who is disabled while in the performance 
                of the employee's duty on the same terms and 
                conditions as apply to other persons, and
                  [(B) provide that special consideration will 
                be given to the rehabilitation under this Act 
                of an individual with a disability whose 
                disability was sustained in the line of duty 
                while such individual was performing as a 
                public safety officer if the proximate cause of 
                such disability was a criminal act, apparent 
                criminal act, or a hazardous condition 
                resulting directly from the officer's 
                performance of duties in direct connection with 
                the enforcement, execution, and administration 
                of law or fire prevention, firefighting, or 
                related public safety activities;]
          [(14)] (12) * * *
          [(15) Continuing studies. Provide for continuing 
        statewide studies of the needs of individuals with 
        disabilities and how these needs may be most 
        effectively met, including--
                  [(A) a full needs assessment for serving 
                individuals with severe disabilities;
                  [(B) an assessment of the capacity and 
                effectiveness of community rehabilitation 
                programs, plans for improving such programs, 
                and policies for the use thereof by the State 
                agency;
                  [(C) review of the efficacy of the criteria 
                employed with respect to ineligibility 
                determinations described in paragraph (9)(C) of 
                this subsection with a view toward the relative 
                need for services to significant segments of 
                the population of individuals with disabilities 
                and the need for expansion of services to those 
                individuals with the most severe disabilities; 
                and
                  [(D) outreach procedures to identify and 
                serve individuals with disabilities who are 
                minorities and individuals with disabilities 
                who have been unserved or
          [(16) (13) * * *
          [(17) State facilities, construction; Federal share 
        of construction costs; general grant and contract 
        requirements applicable; nonreduction of other 
        rehabilitation services provide that if, under special 
        circumstances, the State plan includes provisions for 
        the construction of facilities for community 
        rehabilitation programs--
                  [(A) the Federal share of the cost of 
                construction thereof for a fiscal year will not 
                exceed an amount equal to 10 per centum of the 
                State's allotment for such year,
                  [(B) the provisions of section 306 shall be 
                applicable to such construction and such 
                provisions shall be deemed to apply to such 
                construction, and
                  [(C) there shall be compliance with 
                regulations the Commissioner shall prescribe 
                designed to assure that no State will reduce 
                its efforts in providing other vocational 
                rehabilitation services (other than for the 
                establishment of facilities for community 
                rehabilitation programs) because its plan 
                includes such provisions for construction; 
                underserved by the vocational rehabilitation 
                system;]
          [(18)] (14)(A) Policy planning; trainee 
        participation.
        provide satisfactory assurances to the Commissioner 
        that the State agency designated pursuant to paragraph 
        (1) (or each State agency if two are so designated) and 
        any sole local agency administering the plan in a 
        political subdivision of the State will take into 
        account, in connection with matters of general policy 
        arising in the administration of the plan, the views of 
        individuals and groups thereof who are recipients of 
        vocational rehabilitation services (or, in appropriate 
        cases, their parents or guardians), personnel working 
        in the field of vocational rehabilitation, providers of 
        vocational rehabilitation services, and the Director of 
        the client assistance program under section 112 and, in 
        the case of the designated State unit, will take 
        actions to take such views into account that include 
        providing timely notice, holding public hearings, 
        preparing a summary of hearing comments, and 
        documenting and disseminating information relating to 
        the manner in which the comments will affect services; 
        and;
          [(19) Amendments; continuing studies and annual 
        evaluation as basis, provide satisfactory assurances to 
        the Commissioner that the continuing studies required 
        under paragraph (15) of this subsection, as well as an 
        annual evaluation of the effectiveness of the program 
        in meeting the goals and priorities set forth in the 
        plan, will form the basis for the submission, from time 
        to time as the Commissioner may require, of appropriate 
        amendments to the plan, and for developing and updating 
        the strategic plan required under part C.]
          [(20)] (B) * * *
          [(21)] (15) * * *
          [(22)] (16) Information and referral programs.
        provide for the establishment and maintenance of 
        information and referral programs (the staff of which 
        shall include, to the maximum extent feasible, 
        interpreters for individuals who are deaf) in 
        sufficient numbers to assure that individuals with 
        disabilities within the State are afforded accurate 
        vocational rehabilitation information and appropriate 
        [referrals to other Federal and State programs] 
        referrals within the statewide workforce development 
        system of the State to programs and activities which 
        would benefit them;
          [(23) Public meetings; notice and comment; response.
                  [(A) provide satisfactory assurances that in 
                the formulation of policies governing the 
                provision of the rehabilitation services 
                consistent with the State plan, and any 
                revisions, that the State agency conducts 
                public meetings throughout the State, after 
                appropriate and sufficient notice, to allow 
                interested groups and organizations and all 
                segments of the public an opportunity to 
                comment on the State plan before development of 
                the plan by the State, (B) include a summary of 
                such comments and the State agency's response 
                to such comments, and (C) provide satisfactory 
                assurances that the State agency will consult 
                with the Director of the client assistance 
                program under section 112 in the formulation of 
                policies governing the provision of vocational 
                rehabilitation services consistent with the 
                State plan and other revisions;]
          [(24)] (17) * * *
          * * * * * * *
                  (B) facilitate the transition from the 
                provision of a free appropriate public 
                education under the responsibility of an 
                educational agency to the provision of 
                vocational rehabilitation services under the 
                responsibility of the designated State unit, 
                including the specification of plans for 
                coordination with educational agencies in the 
                provision of transition services authorized 
                under section 103(a)(14) to an individual, 
                consistent with the individualized [written 
                rehabilitation program] employment plan of the 
                individual; and
                  (C) provide that such plans, policies, and 
                procedures will address--
                          (i) provisions for determining State 
                        lead agencies and qualified personnel 
                        responsible for transition services;
                          (ii) procedures for outreach to and 
                        identification of youth in need of such 
                        services [and];
                          (iii) a timeframe for evaluation and 
                        followup of youth who have received 
                        such services[;]; and
                          (iv) the manner in which students who 
                        are individuals with disabilities and 
                        who are not in special education 
                        programs can access and receive 
                        vocational rehabilitation services, 
                        where appropriate;
          [(25] (18) * * *
          [(26)] (19) * * *
          [(27) Cooperative agreements with private nonprofit 
        vocational rehabilitation service providers, describe 
        the manner in which cooperative agreements with private 
        nonprofit vocational rehabilitation service providers 
        will be established;
          [(28) Community rehabilitation programs under the 
        Wagner-O'Day Act. identify the needs and utilization of 
        community rehabilitation programs under the Act 
        commonly known as the Wagner-O'Day Act;
          [(29)] (20) * * *
          [(30) Access to vocational rehabilitation services 
        for students not in special education programs, 
        describe the manner in which students who are 
        individuals with disabilities and who are not in 
        special education programs can access and receive 
        vocational rehabilitation services, where appropriate;
          [(31)] (21) * * *
          [(32)] (22) * * *
          [(33)] (23) * * *
          [(34) Expansion and improvement of vocational 
        rehabilitation services in accordance with part C 
        provide satisfactory assurances to the Commissioner 
        that the State--
                  (A) has developed and implemented a strategic 
                plan for expanding and improving vocational 
                rehabilitation services for individuals with 
                disabilities on a statewide basis in accordance 
                with part C of this title and
                  (B) will use at least 1.5 percent of the 
                allotment of the State under section]
          [(35) Furtherance of purpose and policy of title 
        through performance evaluation.
                  (A) describe how the system for evaluating 
                the performance of rehabilitation counselors, 
                coordinators, and other personnel used in the 
                State facilitates the accomplishment of the 
                purpose and policy of this title including the 
                policy of serving, among others, individuals 
                with the most severe disabilities; and
                  (B) provide satisfactory assurances that the 
                system in no way impedes such accomplishment; 
                and]
          [(36)] (24) * * *
          * * * * * * *
[Sec. 102. Individualized written rehabilitation program] Sec. 102. 
                    Individualized employment plans.

    (a) * * *
           * * * * * * *
          (6) The designated State unit shall ensure that a 
        determination of ineligibility made with respect to an 
        individual prior to the initiation of an individualized 
        [written rehabilitation program] employment plan, based 
        on the review, and to the extent necessary, the 
        preliminary assessment, shall include specification 
        of--
           * * * * * * *
    (b) * * *
          (1)(A) * * *
                  (i) an individualized [written rehabilitation 
                program] employment plan is jointly developed, 
                agreed upon, and signed by--
           * * * * * * *
                  (ii) such [program] plan meets the 
                requirements set forth in subparagraph (B).
           * * * * * * *
          (B) Each individualized [written rehabilitation 
        program] employment plan shall--
           * * * * * * *
                  (iv) [(l) include a statement of the specific 
                vocational rehabilitation services to be 
                provided, and the projected dates for the 
                initiation and the anticipated duration of each 
                such service] (I) include a statement of the 
                specific vocational rehabilitation services to 
                be provided (including, if appropriate, 
                rehabilitation technology services and training 
                in how to use such services) that includes 
                specification of the public or private entity 
                that will provide each such vocational 
                rehabilitation service and the projected dates 
                for the initiation and the anticipated duration 
                of each such service; and;
                 [(II) if appropriate, include a statement of 
                the specific rehabilitation technology services 
                to be provided to assist in the implementation 
                of intermediate rehabilitation objectives and 
                long-term rehabilitation goals for the 
                individual; and]
                 [(III)] (II) if appropriate, include a 
                statement of the specific on-the-job and 
                related personal assistance services to be 
                provided to the individual, and, if appropriate 
                and desired by the individual, the training in 
                managing, supervising, and directing personal 
                assistance services to be provided to the 
                individual;
           * * * * * * *
                  (xi) * * *
                          (I) the reasons that an individual 
                        for whom a [program] plan has been 
                        prepared is no longer eligible for 
                        vocational rehabilitation services; and
           * * * * * * *
          (1)(C) The designated State unit shall furnish a copy 
        of the individualized [written rehabilitation program 
        and amendments to the program] employment plan and 
        amendments to the plan to the individual with a 
        disability or, in an appropriate case, a parent, a 
        family member, a guardian, an advocate, or an 
        authorized representative, of the individual.
           * * * * * * *
          (2) Each individual [written rehabilitation program] 
        employment plan shall be reviewed annually, at which 
        time such individual (or, in appropriate cases, the 
        parents or guardian of the individual) will be afforded 
        an opportunity to review such [program] plan and 
        jointly redevelop and agree to its terms. Any revisions 
        or amendments to the [program] plan resulting from such 
        review shall be incorporated into or affixed to such 
        [program] plan. Such revisions or amendments shall not 
        take effect until agreed to and signed by the 
        individual with a disability, or, if appropriate, by a 
        parent, a family member, a guardian, an advocate, or an 
        authorized representative, of such individual. Each 
        individualized [written rehabilitation program] 
        employment plan shall be revised as needed.
           * * * * * * *
    (c) * * *
    The Director of the designated State unit shall also ensure 
that (1) in making any determination of ineligibility referred 
to in subsection (a) of this section, or in developing and 
carrying out the individualized [written rehabilitation 
program] employment plan required by section 101 in the case of 
each individual with a disability, emphasis is placed upon the 
determination and achievement of a vocational goal for such 
individual, (2) a decision that such an individual is not 
capable of achieving such a goal and thus is not eligible for 
vocational rehabilitation services provided with assistance 
under this part, is made only in full consultation with such 
individual (or, in appropriate cases, such individual's parents 
or guardians), and only upon the certification, as an amendment 
to such written [program] plan, or as a part of the 
specification of reasons for an ineligibility determination, as 
appropriate, that the preliminary diagnosis or assessment for 
determining eligibility and vocational rehabilitation needs 
described in subparagraphs (B) and (C) of section 7(22), as 
appropriate, has demonstrated that such individual is not then 
capable of achieving such a goal, and (3) any such decision, as 
an amendment to such written [program] plan, shall be reviewed 
at least annually in accordance with the procedure and criteria 
established in this section.
           * * * * * * *
    (d) * * *
          (5) Unless the individual with a disability so 
        requests, or, in an appropriate case, a parent, a 
        family member, guardian, an advocate, or an authorized 
        representative, of such individual so requests, pending 
        a final determination of such hearing or other final 
        resolution under this subsection, the designated State 
        unit shall not institute a suspension, reduction, or 
        termination of services being provided under the 
        individualized [written rehabilitation program] 
        employment plan, unless such services have been 
        obtained through misrepresentation, fraud, collusion, 
        or criminal conduct on the part of the individual with 
        a disability.
          (6)(A) The Director shall collect data described in 
        subparagraph (B) and prepare and submit to the 
        Commissioner a report containing such data. [For the 
        report submitted on or before February 1, 1988, the 
        Commissioner shall prepare a summary of the information 
        furnished under this paragraph and include the summary 
        in the annual report submitted under section 13.]
           * * * * * * *

Sec. 723 * * *

    (a) * * *
           * * * * * * *
          (4) physical and mental restoration services, 
        including, but not limited to, (A) corrective surgery 
        or therapeutic treatment necessary to correct or 
        substantially modify a physical or mental condition 
        which is stable or slowly progressive and constitutes a 
        substantial impediment to employment, of such nature 
        that such correction or modication may reasonably be 
        expected to eliminate or reduce such impediment to 
        employment within a reasonable length of time, (B) 
        necessary hospitalization in connection with [surgery 
        or] treatment, (C) prosthetic and orthotic devices, (D) 
        eyeglasses and visual services as prescribed by 
        qualified personnel, under State licensure laws, that 
        are selected by the individual[,] and [(E) special 
        services (including transplantation and dialysis), 
        artificial kidneys, and supplies for the treatment of 
        individuals with end-stage renal disease, and] [(F)] 
        (E) diagnosis and treatment for mental and emotional 
        disorders by qualified personnel under State licensure 
        laws;
           * * * * * * *
          (b) * * *
           * * * * * * *
          (1) In the case of any type of small business 
        operated by individuals with [the most severe] 
        disabilities the operation of which can be improved by 
        management services and supervision provided by the 
        State agency, the provision of such services and 
        supervision, along or together with the acquisition by 
        the State agency of vending facilities or other 
        equipment and initial stocks and supplies.
          * * * * * * *

Sec. 725 * * *

          * * * * * * *
    (b) * * *
          (1) * * *
                  (A) * * *
                          (iv) at least one vocational 
                        rehabilitation counselor, with 
                        knowledge of and experience with 
                        vocational rehabilitation programs, who 
                        shall serve as an ex officio, nonvoting 
                        member of the Council if the counselor 
                        is an employee of the designated State 
                        agency who, to the extent feasible, are 
                        members of any State workforce 
                        development board established for the 
                        State under section 105(b) of the 
                        Workforce Development Act of 1995;
          * * * * * * *
    (c) * * *
          * * * * * * *
          (2) * * *
          (3) advise the designated State agency and the 
        designated State unit regarding strategies for ensuring 
        that the vocational rehabilitation program established 
        under this title becomes an integral part of he 
        statewide workforce development system of the State;
          [(3)](4) to the extent feasible, conduct a review and 
        analysis of the effectiveness of, and consumer 
        satisfaction with--
                  (A) the function performed by State agencies 
                and other public and private entities 
                responsible for performing functions for 
                individuals with disabilities; and
                  (B) vocational rehabilitation services--
                          (i) provided, or paid for from funds 
                        made available, under this Act or 
                        through other public or private 
                        sources; and
                          (ii) provided by State agencies and 
                        other public and private entities 
                        responsible for providing vocational 
                        rehabilitation services to individuals 
                        with disabilities;
          [(4)](5) prepare and submit an annual report to the 
        Governor or appropriate State entity and the 
        Commissioner on the status of vocational rehabilitation 
        programs operated within the State, and make the report 
        available to the public;
          [(5)](6) coordinate with other councils within the 
        State, including the Statewide Independent Living 
        Council established under section 705, the advisory 
        panel established under section 613(a)(12) of the 
        Individuals with Disabilities Education Act (20 U.S.C. 
        1413(a)(12)), the State Planning Council described in 
        section 124 of the Developmental Disabilities 
        Assistance and Bill of Rights Act (42 U.S.C. [6024), 
        and] 6024, the State mental health planning council 
        established under section 1916(e) of the Public Health 
        Service Act (42 U.S.C. 300x-4(e))[;], and any State 
        workforce development board established for the State 
        under section 105(b) of the Workforce Development Act 
        of 1995;
          [(6)](7) advise the State agency designated under 
        section 101(a)(1) and provide for coordination and the 
        establishment of working relationships between the 
        State agency and the Statewide Independent Living 
        Council and centers for independent living within the 
        State; and
          [(7)](8) perform such other functions, consistent 
        with the purpose of this title, as the State 
        Rehabilitation Advisory Council determines to be 
        appropriate, that are comparable to the other functions 
        performed by the Council.
          * * * * * * *

Sec. 726 * * *

    (a) * * *
          (1) In general.--The Commissioner shall, not later 
        than September 30, [1994] 1996, establish and publish 
        evaluation standards and performance indicators for the 
        vocational rehabilitation program under this title [.] 
        that shall, to the maximum extent appropriate, be 
        consistent with the State benchmarks established under 
        paragraphs (1) and (2) of section 114(c) of the 
        Workforce Development Act of 1995. For purposes of this 
        section, the Commissioner may modify or supplement such 
        benchmarks, after consultation with the Governing Board 
        established under section 301(b) of the Workforce 
        Development Act of 1995, to the extent necessary to 
        address unique considerations applicable to the 
        participation of individuals with disabilities in the 
        vocational rehabilitation program.
          * * * * * * *

                                TITLE I

          * * * * * * *

Sec. 720 * * *

          * * * * * * *
                  [(C) individuals with disabilities, including 
                individuals with the most severe disabilities, 
                have demonstrated their ability to achieve 
                gainful employment in integrated settings if 
                appropriate services and supports are 
                provided;]
                  [(D)](C) reasons for the significant number 
                of individuals with disabilities not working, 
                or working at a level not commensurate with 
                their abilities and capabilities, include--
                          (i) discrimination;
                          (ii) lack of accessible and available 
                        transportation;
                          (iii) fear of losing health coverage 
                        under the medicare and medicaid 
                        programs under titles XVIII and XIX of 
                        the Social Security Act (42 U.S.C. 1395 
                        et seq. and 1396 et seq.) or fear of 
                        losing existing private health 
                        insurance; and
                          (iv) lack of education, training, and 
                        supports to meet job qualification 
                        standards necessary to enter or retain 
                        or advance in employment;
                  [(E)](D) enforcement of title V and of the 
                Americans with Disabilities Act of 1990 (42 
                U.S.C. 12101 et seq.) holds the promise of 
                ending discrimination for individuals with 
                disabilities; and
          * * * * * * *

                      TITLE 8--UNITED STATES CODE

               IMMIGRATION REFORM AND CONTROL ACT OF 1986

          * * * * * * *

[Sec. 1255a. note

    [State legalization impact-assistance grants.

[Sec. 204 of Public Law 99-608, Oct. 25, 1994, P.L. 103-416, Title II, 
                    SEC, 219(cc), 108 Stat. 4319 (effective as if 
                    included in the enactment of Act Nov. 29, 1990, as 
                    provided by SEC. 219(dd) of the 1994 Act, which 
                    appears as 8 USCS SEC. 1101 note), provides:

    [``(a) Appropriation of Funds.(1) In general. (A) Out of 
any money in the Treasury not otherwise appropriated, there are 
appropriated to carry out this section (and including Federal, 
State, and local administrative costs) $1,000,000,000 (less the 
amount described in paragraph (2)) for fiscal year 1988 and for 
each of the three succeeding fiscal years.
    [``(b) Funds appropriated for fiscal year 1990 under this 
section are reduced by $555,244,000, and funds appropriated for 
fiscal year 1991 under this section are reduced by 
$566,854,000.
    [``(c) For fiscal years 1993 and 1994 combined, there are 
appropriated to carry out this section for costs incurred on or 
after October 1, 1989 (including Federal, State, and local 
administrative costs) out of any money in the Treasury not 
otherwise appropriated, $2,000,000,000 (less the amount 
described in paragraph (2) for each of fiscal years 1990 and 
1991) less the amount made available for allotments to States 
under subsection (b) for fiscal year 1990 and fiscal year 1991: 
Provided, That $812,000,000 shall be available in fiscal year 
1994 and the remainder of these funds shall be available in 
fiscal year 1993.
    [``(2) Offset. (A) In general. Subject to subparagraphs (B) 
through (D), the amount described in this paragraph for a 
fiscal year is equal to the amount estimated to be expended by 
the Federal Government in the fiscal year for the programs of 
financial assistance, medical assistance, and assistance under 
the Food Stamp Act of 1977 for aliens who would not be eligible 
for such assistance under paragraph (1)(A) of section 245A(h) 
of the Immigration and Nationality Act but for the provisions 
of paragraph (2) or paragraph (3) of such section.
    [``(B) No offset for certain SSI eligible individuals. The 
amount described in this paragraph shall not include any 
amounts attributable to supplemental security benefits paid 
under title XVI of the Social Security Act or medical 
assistance furnished under a State plan approved under title 
XIX of the Social Security Act, in the case of an alien who is 
determined by the Secretary of Health and Human Services, based 
on an application for benefits under title XVI of the Social 
Security Act or section 212 of Public Law 93-66 filed prior to 
the date designated by the Attorney General in accordance with 
section 245A(a)(1)(A) of the Immigration and Nationality Act 
(subsec. (a)(1)(A) of this section), to be permanently residing 
in the United States under color of law as provided in section 
1614(a)(1)(B)(ii) of the Social Security Act and to be eligible 
to receive such benefits for the month prior to the month in 
which such date occurs, for such time as such alien continues 
without interruption to be eligible to receive such benefits in 
accordance with the provisions of title XVI of the Social 
Security Act or section 212 of Public Law 93-66, as 
appropriate.
    [``(C) Estimated initial offset. For purposes of 
subparagraph (A), with respect to fiscal year 1988, the amount 
estimated to be expended shall be such estimate as is contained 
in the annual fiscal budget submitted for that year to the 
Congress by the President.
    [``(D) Adjustment for estimates. If the actual amount of 
expenditures by the Federal Government described in 
subparagraph (A) for a fiscal year exceeds, or is less than, 
the amount estimated to be expended for that year under 
subparagraph (C) (taking into account any adjustment under this 
subparagraph), then for the subsequent fiscal year the amount 
described in this paragraph shall be decreased, or increased, 
respectively, by the amount of such excess or deficit for that 
previous fiscal year.
    [``(b) Entitlement of States. (1) From the sums 
appropriated under subsection (a) for a fiscal year (less the 
amount reserved for Federal administrative costs), the 
Secretary of Health and Human Services (in this section 
referred to as the `Secretary') shall allot to each State with 
an application approved under subsection (d)(1) an amount 
determined in accordance with a formula, established by the 
Secretary by regulation, which takes into account--
          [``(A) the number of eligible legalized aliens (as 
        defined in subsection (j)(4)) residing in the State in 
        that fiscal year;
          [``(B) the ratio of the number of eligible legalized 
        aliens in the State to the total number of residents of 
        that State and to the total number of such aliens in 
        all the States in that fiscal year;
          [``(C) the amount of expenditures the State is likely 
        to incur in that fiscal year in providing assistance 
        for eligible legalized aliens for which reimbursement 
        or payment may be made under this section;
          [``(D) the ratio of the amount of such expenditures 
        in the State to the total of all such expenditures in 
        all the States;
          ``(E) adjustments for the difference in previous 
        years between the State's actual expenditures 
        (described in subparagraph (C)) incurred and the 
        allocation provided the State under this section for 
        those years; and
          [``(F) such other factors as the Secretary deems 
        appropriate to provide for an equitable distribution of 
        such amounts.
    [``(2) To the extent that all the funds appropriated under 
this section for a fiscal year are not otherwise allotted to 
States either because all the States have not qualified for 
such allotments under this section for the fiscal year or 
because some States have indicated in their description of 
activities that they do not intend to use, in that fiscal year 
or any succeeding fiscal year (before year 1995) year, the full 
amount of such allotments, such excess shall be allotted among 
the remaining States in proportion to the amount otherwise 
allotted to such States for the fiscal year without regard to 
this paragraph.
    [``(3) In determining the number of eligible legalized 
aliens for purposes of paragraph (1), the Secretary may 
estimate such number on the basis of such data as he may deem 
appropriate.
    [``(4) For each fiscal year the Secretary shall make 
payments, as provided by section 6503 of title 31, United 
States Code, to each State from its allotment under this 
subsection. Any amount paid to a State for a fiscal year and 
remaining unobligated at the end of such year shall remain 
available after September 30, 1994. Any funds not expended by 
States by December 30, 1994 shall be reallocated by the 
Secretary to States which had expended their entire allotments, 
based on each State's percentage share of total unreimbursed 
legalized alien costs in all States. Funds made available to a 
State pursuant to the preceding sentence of this paragraph 
shall be utilized by the State to reimburse all allowable costs 
within 90 days after a State has received a reallocation of 
funds from the Secretary, but in no event later than July 31, 
1995.
    [``(5) For fiscal year 1993, the Secretary shall make 
allotments to States under paragraph (1) no later than October 
15, 1992, Provided, That with respect to States in which total 
allowable unreimbursed State and local costs incurred prior to 
October 1, 1992 exceed $100,000,000, within each such State's 
allocation, the State shall first reimburse all allowable costs 
incurred between October 1, 1990 and October 1, 1992, before 
reimbursing costs incurred on or after October 1, 1992, except 
for State and local administrative costs and for costs of 
services required to enable aliens granted temporary residence 
under section 245A(a) of the Immigration and Nationality Act to 
attain citizenship skills described in section 245A(b)(1)(D)(i) 
of the Immigration and Nationality Act: Provided further, That 
in reimbursing costs incurred prior to October 1, 1992, each 
State shall reimburse each provider at the same pro rata rate.
    [``(c) Providing assistance. (1) Of the amounts allotted to 
a State under this section, the State may only use such funds, 
in accordance with this section--
          [``(A) for reimbursement of the costs of programs of 
        public assistance provided with respect to eligible 
        legalized aliens, for which such aliens were not 
        disqualified under section 245A(h) of the Immigration 
        and Nationality Act at the time of such assistance,
          [``(B) for reimbursement of the costs of programs of 
        public health assistance provided to any alien who is, 
        or is applying on a timely basis to become, an eligible 
        legalized alien,
          [``(C) to make payments to State educational agencies 
        for the purpose of assisting local educational agencies 
        of that State in providing educational services for 
        eligible legalized aliens,
          [``(D) to make payments for public education and 
        outreach (including the provision of information to 
        individual applicants) to inform temporary resident 
        aliens regarding--
                  [``(i) the requirements of sections 210, 
                210A, and 245A of the Immigration and 
                Nationality Act regarding the adjustment of 
                resident status,
                  [``(ii) sources of assistance for such aliens 
                obtaining the adjustment of status described in 
                clause (i), including educational, 
                informational, referral services, and the 
                rights and responsibilities of such aliens and 
                aliens lawfully admitted for permanent 
                residence,
                  [``(iii) the identification of health, 
                employment, and social services, and
                  [``(iv) the importance of identifying oneself 
                as a temporary resident alien to service 
                providers,
        [except that nothing in this subparagraph may be 
        construed as authorizing the provision of client 
        counseling or any other service which would assume 
        responsibility for the alien's application for the 
        adjustment of status described in clause (i),
          [``(E)(i) subject to clause (ii), to make payments 
        for education and outreach efforts by State agencies 
        regarding unfair discrimination in employment practices 
        based on national origin or citizenship status,
          [``(ii) except that the State agencies shall not 
        initiate such efforts until after such consultation 
        with the Office of the Special Counsel for Unfair 
        Immigration-Related Employment Practices as is 
        appropriate to ensure, to the maximum extent feasible, 
        a uniform program. Subject to paragraph (2), the State 
        may select the distribution of the use of such funds 
        among such purposes.
      [``(2)(A) Subject to subparagraphs (B) and (C), of the 
amounts allotted to a State under this section in any fiscal 
year, 10 percent shall be used by the State for reimbursement 
under paragraph (1)(A), 10 percent shall be used by the State 
for reimbursement under paragraph (1)(B), and 10 percent shall 
be used by the State for payments under paragraph (1)(C).
      [``(B) If a State does not require the use of the full 10 
percent provided under subparagraph (A) for a particular 
function described in a subparagraph of paragraph (2) for a 
fiscal year, the unused portion shall, subject to subparagraph 
(C), be equally distributed among the two other subparagraphs.
      [``(C) In no case shall the funds provided under this 
section be used to provide reimbursement for more than 100 
percent of the costs described in paragraph (1)(A) or (1)(B).
      [``(D) Of the amount allotted to a State with respect to 
any fiscal year, a State may not use more than--
          [``(i) 1 percent (or, if greater, $100,000) for 
        payments under paragraph (1)(D), and
          [``(ii) 1 percent (or, if greater, $100,000) for 
        payments under paragraph (1)(E).
      [``(3) To the extent that a State provides for the use of 
funds for the purpose described in paragraph (1)(C), the 
definitions and provisions of the Emergency Immigrant Education 
Act of 1984 (title VI of Public Law 98-511; 20 U.S.C. 4101 et 
seq.) shall apply to payments under such paragraph in the same 
manner as they apply to payments under that Act, except that, 
in applying this paragraph--
          [``(A) any reference in such Act to `immigrant 
        children' shall be deemed to be a reference to 
        `eligible legalized aliens' (including such aliens who 
        are over 16 years of age) during the 60-month period 
        beginning with the first month in which such an alien 
        is granted temporary lawful residence under the 
        Immigration and Nationality Act 8 USCS et seq. 
        generally; for full classification, consult USCS Tables 
        volumes;
          [``(B) in determining the amount of payment with 
        respect to eligible legalized aliens who are over 16 
        years of age, the phrase `described under paragraph 
        (2)' shall be deemed to be stricken from section 
        606(b)(1)(A) of such Act (20 U.S.C. 4105(b)(1)(A));
          [``(C) the State educational agency may provide such 
        educational services to adult eligible legalized aliens 
        through local educational agencies and other public and 
        private nonprofit organizations, including community-
        based organizations of demonstrated effectiveness; and
          [``(D) such service may include English language and 
        other programs designed to enable such aliens to attain 
        the citizenship skills described in section 
        245A(b)(1)(D)(i) of the Immigration and Nationality Act 
        (subsec. (b)(1)(D)(i) of this section).
    [``(d) Statements and assurances. (1) No State is eligible 
for payment under subsection (b) unless the State--
          [``(A) has filed with, and had approved by, the 
        Secretary an application containing such information, 
        including the information described in paragraph (2) 
        and criteria for and administrative methods of 
        disbursing funds received under this section, as the 
        Secretary determines to be necessary to carry out this 
        section, and
          [``(B) transmits to the Secretary a statement of 
        assurances that certifies that (i) funds allotted to 
        the State under this section will only be used to carry 
        out the purposes described in subsection (c)(1), (ii) 
        the State will provide a fair method (as determined by 
        the State) for the allocation of funds among State and 
        local agencies in accordance with paragraph (2) and 
        subsection (c)(2), and (iii) fiscal control and fund 
        accounting procedures will be established that are 
        adequate to meet the requirements of paragraph (2) and 
        subsections (e) and (f).
      [``(2) The application of each State under this 
subsection for each fiscal year must include detailed 
information on--
          [``(A) the number of eligible legalized aliens 
        residing in the State, and
          [``(B) the costs (excluding any such costs otherwise 
        paid from Federal funds) which the State and each 
        locality is likely to incur for the purposes described 
        in subsection (c)(1).
    [``(e) Reports and audits. (1)(A) Each State shall prepare 
and submit to the Secretary annual reports on its activities 
under this section. In order to properly evaluate and to 
compare the performance of different States assisted under this 
section and to assure the proper expenditure of funds under 
this section, such reports shall be in such form and contain 
such information as the Secretary determines (after 
consultation with the States and the Comptroller General) to be 
necessary--
          [``(i) to secure an accurate description of those 
        activities,
          [``(ii) to secure a complete record of the purposes 
        for which funds were spent and of the recipients of 
        such funds, and
          [``(iii) to determine the extent to which funds were 
        expended consistent with this section. Copies of the 
        report shall be provided, upon request, to any 
        interested public agency, and each such agency may 
        provide its views on these reports to the Congress.
    [``(B) The Secretary shall annually report to the Congress 
on activities funded under this section and shall provide for 
transmittal of a copy of such report to each State.
    [``(2)(A) For requirements relating to audits of funds 
received by a State under this section, see chapter 75 of title 
31, United States Code (relating to requirements for single 
audit).
    [``(B) Each State shall repay to the United States amounts 
ultimately found not to have been expended in accordance with 
this section, or the Secretary may offset such amounts against 
any other amount to which the State is or may become entitled 
under this section.
    [``(C) The Secretary may, after notice and opportunity for 
a hearing, withhold payment of funds to any State which is not 
using its allotment under this section in accordance with this 
section. The Secretary may withhold such funds until the 
Secretary finds that the reason for the withholding has been 
removed and there is reasonable assurance that it will not 
recur.
    [``(3) The State shall make copies of the reports and 
audits required by this subsection available for public 
inspection within the State.
    [``(4)(A) For the purpose of evaluating and reviewing the 
assistance provided under this section, the Secretary and the 
Comptroller General shall have access to any books, accounts, 
records, correspondence, or other documents that are related to 
such assistance, and that are in the possession, custody, or 
control of States, political subdivisions thereof, or any of 
their grantees.
    [``(B) In conjunction with an evaluation or review under 
subparagraph (A), no State or political subdivision thereof (or 
grantee of either) shall be required to create or prepare new 
records to comply with subparagraph (A).
    [``(f) Limitation on payments. (1) Payments under this 
section shall not be made for costs to the extent the costs are 
otherwise reimbursed or paid for under other Federal programs.
    [``(2) Payment may only be made to a State with respect to 
costs for assistance of a program of public assistance or a 
program of public health assistance to the extent such 
assistance is otherwise generally available under such programs 
to citizens residing in the State.
    [``(g) Criminal penalties for false statements. Whoever--
          [``(1) knowingly and willfully makes or causes to be 
        made any false statement or misrepresentation of a 
        material fact in connection with the furnishing of 
        assistance or services for which payment may be made by 
        a State from funds allotted to the State under this 
        section, or
          [``(2) having knowledge of the occurrence of any 
        event affecting his initial or continued right to any 
        such payment conceals or fails to disclose such event 
        with an intent fraudulently to secure such payment 
        either in a greater amount than is due or when no such 
        payment is authorized, shall be fined in accordance 
        with title 18, United States Code, imprisoned for not 
        more than five years, or both.
    [``(h) Anti-discrimination provision. (1)(A) For the 
purpose of applying the prohibitions against discrimination on 
the basis of age under the Age Discrimination Act of 1975, on 
the basis of handicap under section 504 of the Rehabilitation 
Act of 1973, on the basis of sex under title IX of the 
Education Amendments of 1972, or on the basis of race, color, 
or national origin under title VI of the Civil Rights Act of 
1964, programs and activities funded in whole or in part with 
funds made available under this section are considered to be 
programs and activities receiving Federal financial assistance.
    [``(B) No person shall on the ground of sex or religion be 
excluded from participation in, be denied the benefits of, or 
be subjected to discrimination under, any program or activity 
funded in whole or in part with funds made available under this 
section.
    [``(2) Whenever the Secretary finds that a State or 
locality which has been provided payment from an allotment 
under this section has failed to comply with a provision of law 
referred to in paragraph (1)(A), with paragraph (1)(B), or with 
an applicable regulation (including one prescribed to carry out 
paragraph (1)(B)), he shall notify the chief executive officer 
of State and shall request him to secure compliance. If within 
a reasonable period of time, not to exceed 60 days, chief 
executive officer fails or refuses to secure compliance, the 
Secretary may--
          [``(A) refer the matter to the Attorney General with 
        a recommendation that an appropriate civil action be 
        instituted,
          [``(B) exercise the powers and functions provided by 
        title VI of the Civil Rights Act of 1964, the Age 
        Discrimination Act of 1975, or section 504 of the 
        Rehabilitation Act of 1973, as may be applicable, or
          [``(C) take such other action as may be provided by 
        law.
    [``(3) When a matter is referred to the Attorney General 
pursuant to paragraph (2)(A), or whenever he has reason to 
believe that the entity is engaged in a pattern or practice in 
violation of a provision of law referred to in paragraph (1)(A) 
or in violation of paragraph (1)(B), the Attorney General may 
bring a civil action in any appropriate district court of the 
United States for such relief as may be appropriate, including 
injunctive relief.
    [``(i) Consultation with State and local officials. In 
establishing regulations guidelines to carry out this section, 
the Secretary shall consult with representatives of State and 
local governments.
    [``(j) Definitions. For purposes of this section:
          [``(1) The term `State' has the meaning given such 
        term in section 101(a)(36) of the Immigration and 
        Nationality Act.
          [``(2) The term `programs of public assistance' means 
        programs in a State or local jurisdiction which--
                  [``(A) provide for cash, medical, or other 
                assistance (as defined by the Secretary) 
                designed to meet the basic subsistence or 
                health needs of individuals,
                  [``(B) are generally available to needy 
                individuals residing in the State or locality, 
                and
                  [``(C) receive funding from units of State or 
                local government.
          [``(3) The term `programs of public health 
        assistance' means programs in a State or local 
        jurisdiction which--
                  [``(A) provide public health services, 
                including immunizations for immunizable 
                diseases, testing and treatment for 
                tuberculosis and sexually-transmitted diseases, 
                and family planning services,
                  [``(B) are generally available to needy 
                individuals residing in the State or locality, 
                and
                  [``(C) receive funding from units of State or 
                local government.
          [``(4) The term `eligible legalized alien' means an 
        alien who has been granted lawful temporary resident 
        status under section 210, 210A, or 245A of the 
        Immigration and Nationality Act, but only until the end 
        of the five-year period beginning on the date the alien 
        was first granted such status, except that the five-
        year limitation shall not apply for the purposes of 
        making payments from funds appropriated under the 
        fiscal year 1995 Labor, Health and Human Services, and 
        Education, and Related Agencies Appropriations Act for 
        providing public information and outreach activities 
        regarding naturalization and citizenship; and English 
        language and civics instruction to any adult eligible 
        legalized alien who has not met the requirements of 
        section 312 of the Immigration and Nationality Act for 
        purposes of becoming naturalized as a citizen of the 
        United States.'']
          * * * * * * *

                           PUBLIC LAW 95-250

          * * * * * * *
                               [TITLE II

    [Sec. 201. As used in this title, the term--
          [(1) ``Secretary'' unless otherwise indicated, means 
        the Secretary of the Department of Labor;
          [(2) ``expansion area'' means the area indicated as 
        ``Proposed (exclusive of the park protection zone) on 
        the map entitled ``Additional Lands, Redwood National 
        Park, Humboldt County, California'', numbered 167-
        80005-D and dated March 1978. The number of acres 
        authorized to be included within the expansion area is 
        forty-eight thousand acres, as further provided herein;
          [(3) ``employee'' means a person employed by an 
        affected employer and, with such exceptions as the 
        Secretary may determine, in an occupation not described 
        by section 13(a)(1) of the Fair Labor Standards Act.
          [(4) ``contract employees'' are employees performing 
        work pursuant to a contract or agreement for services 
        within or directly related to the expansion area 
        between an affected contract employer and an affected 
        woods employer;
          [(5) ``industry employer'' means a corporation, 
        partnership, joint venture, person, or other form of 
        business entity (including a predecessor or successor 
        by purchase, merger, or other form of acquisition), of 
        which a working portion or division is an affected 
        employer;
          [(6) ``affected employer'' means a corporation, 
        partnership, joint venture, person, or other form of 
        business entity (including a predecessor or a successor 
        by purchase, merger, or other form of acquisition), or 
        a working portion or division thereof, which is engaged 
        in the harvest of timber or in related sawmill, 
        plywood, and other wood processing operations, and 
        which meets the qualifications set forth in the 
        definition of affected woods employer, affected mill 
        employer, or affected contract employer;
          [(7) ``affected woods employer'' means an affected 
        employer engaged in the harvest of redwood timber who 
        owns at least 3 per centum of the number of acres 
        authorized to be included within the expansion area on 
        January 1, 1997, and on the date of enactment of this 
        section: Provided, That an affected woods employer 
        shall be only that major portion or division of the 
        industry employer directly responsible for such 
        harvesting operations:
          [(8) ``affected mill employer'' means an affected 
        employer engaged in sawmill, plywood, and other wood 
        processing operations in Humboldt or Del Norte Counties 
        in the State of California who has either (A) obtained 
        15 per centum or more of its raw wood materials 
        directly from affected woods employers during calendar 
        year 1977, or (B) is a wholly owned mill of an affected 
        woods employer: Provided, That an affected mill 
        employer shall be only that major portion or division 
        of tile industry employer directly responsible for such 
        wood processing operations;
          [(9) ``affected contract employer'' means an affected 
        employer providing services pursuant to contract with 
        an affected woods employer, if at least 15 per centum 
        of said employer's employee-hours worked during 
        calendar year 1977 were within or directly related to 
        the expansion area pursuant to such contract or 
        contracts;
          [(10) ``covered employee'' means an employee who
                  [(A) had seniority under a collective 
                bargaining agreement with an affected employer 
                as of May 31, 1977, has at least twelve months 
                of creditable service as of the date of 
                enactment of this section, and has performed 
                work for one or more affected employers on or 
                after January 1, 1977, or
                  [(B) has performed work for one or more 
                affected employers for at least one thousand 
                hours from January 1, 1977, through the period 
                to the date of enactment of this section, and 
                has a continuing employment relationship with 
                an affected employer, as determined by the 
                Secretary, as of the date of enactment of this 
                section or, if laid off on or after May 31, 
                1977, had such a relationship as of the date of 
                such layoff;
          [(11) ``affected employee'' means a covered employee 
        who is either totally or partially laid off by an 
        affected employer within a period beginning on or after 
        May 31, 1977, and ending September 30, 1980, unless 
        extended, as provided in section 203, or is determined 
        by the Secretary to be adversely affected by the 
        expansion of the Redwood National Park. An employee 
        shall be deemed adversely affected as of the date of 
        the employee's layoff, downgrading, or termination:
          [(12) ``total layoff'' means a calendar week during 
        which affected employers have made no work available to 
        a covered employee and made no payment to said covered 
        employee for time not worked and ``partial layoff'' 
        means a calendar week for which all pay received by a 
        covered employee from affected employers is at least 10 
        per centum less than the layoff or vacation replacement 
        benefit that would have been payable for that week had 
        said covered employee suffered a total layoff: 
        Provided, That the terms ``total layoff'' and ``partial 
        layoff'' shall also apply to i covered 
        employee who had received any workers' compensation 
        benefits or unemployment compensation disability 
        benefits after aid covered employee becomes able to 
        work and available for work and is otherwise within the 
        meaning of total layoff and partial layoff as defined 
        in this paragraph;
          [(13) ``Federal agency'' has the same meaning as 
        ``agency'' in section 552(c) of title 5, United States 
        Code;
          [(14) ``suitable work'' shall be defined
                  [(A) as set forth in the California 
                Unemployment Insurance Code, or Federal law if 
                applicable, unless otherwise more restrictively 
                defined by the Secretary, taking into account 
                the unique characteristics of logging and 
                related work; and
                  [(B) with respect to an employee who has 
                completed retraining paid for by the Secretary, 
                as a job paying no less than the prevailing 
                wage rate in the area for the occupation for 
                which said employee was retrained; or
                  [(C) as a job comparable with that which said 
                employee would be required to accept pursuant 
                to the seniority provisions of the applicable 
                collective-bargaining agreement (or, if not 
                covered by such an agreement, in accordance 
                with the usual practice of the affected 
                employer)
          [(15) ``seniority'' with respect to an employee 
        covered by a collective-bargaining agreement with an 
        affected employer, shall be determined as provided in 
        such agreement and shall be deemed to refer to company 
        seniority, if the agreement provides for such seniority 
        and, otherwise, to plant seniority;
          [(16) ``continuous service'' with respect to 
        employees not having seniority under a collective-
        bargaining agreement with an affected employer or an 
        industry employer shall mean a period of time measured 
        in months equal to the sum of all hours during which 
        the employee performed work for said employer plus all 
        hours for which the employee received pay for time not 
        worked divided by one hundred and seventy-three:
          [(17) ``performed work'' shall include any time 
        during which an employee worked for an affected 
        employer or with respect to which an employee received 
        pay from such an employer for time not worked, and 
        shall also include any time during which an employee 
        would have been at work for such an employer if not for 
        service in the armed forces, for a leave (approved by 
        the employer) for work with an employee organization, 
        or for a disability for which said employee received 
        workers' compensation, disability compensation benefits 
        provided under California law, of social security 
        disability pension benefits: Provided, That contract 
        employees shall be deemed to have performed work during 
        the period of such service or disability only if--
                  [(A) the employee worked within or directly 
                related to the expansion area immediately prior 
                to the occurrence of such service or disability 
                and
                  [(B) the employee returned or sought to 
                return to work for an affected contract 
                employer immediately after the end of the 
                service or disability if that was prior to the 
                date of enactment. The term ``work performed'', 
                when use in relation to a period of time, shall 
                also be deemed to include any period during 
                which an employee is deemed to have performed 
                work;
          [(18) ``terminal pay'' means the payments to 
        employees provided for in sections 207, 208, and 209 
        which, regardless of the designations used herein to 
        distinguish among them are intended and shall be deemed 
        to be severance pay and, as such, shall be treated for 
        Federal income tax and State unemployment insurance 
        purposes in the same manner as is provided by 
        California State law;
          [(19) Notwithstanding any other provision of this 
        Act, the Secretary shall reduce the amount of terminal 
        pay for an employee, as calculated pursuant to section 
        207, 208, or 209, by the amount of the Federal and 
        State income taxes which would be required to be 
        withheld by an employer from wages equal to such 
        terminal pay if paid to an employee with the same 
        number of income tax exemptions as the recipient. For 
        purposes of determining the amounts of such reductions 
        with respect to severance payments made pursuant to 
        sections 208 and 209, said severance payments shall be 
        prorated over the number of weeks the equivalent sums 
        would have been paid if the employees were eligible for 
        and claiming the weekly layoff benefits provided in 
        section 207. The Secretary shall withhold social 
        security contributions from terminal pay in the same 
        amounts as would be withheld if such pay (before the 
        reductions provided for in this subsection) were wages 
        and the Secretary shall make contributions on behalf of 
        employees receiving terminal pay to the trust funds 
        created under section 201 of the Social Security Act 
        equal to the contributions required to be made by an 
        employer paying wages equal to such unreduced terminal 
        pay; and
          [(20) ``Sixty-fifth birthday'' means the last day of 
        the month in which the sixty-fifth birthday occurs.
    [Sec. 202. The Secretary is authorized to develop the 
necessary procedures to implement this title.]

                          [affected employees

    [Sec. 203. The total or partial layoff of a covered 
employee employed by an affected employer during the period 
beginning May 31, 1977, and ending September 30, 1980, other 
than for a cause that would disqualify an employee for 
unemployment compensation, except as provided in section 205, 
is conclusively Presumed to be attributable to the expansion of 
Redwood National Park: Provided, That the Secretary may, for 
good cause, extend this period for any group of covered 
employees by no more than one year at a time after September 
30, 1980. Any covered employee laid off during that period by 
an affected employer shall be considered an affected employee 
at any time said employee is on such layoff within the period 
ending September 30, 1984, or, if earlier, the end of said 
employee's period of protection as defined herein: Provided, 
however, That the number of affected employees with respect to 
an affected contract employer shall be limited in any week to 
that number of such employees otherwise affected as provided 
herein that is equal to the percentage of the affected 
employer's employee hours during calendar year 1977 that were 
worked within or directly related to the expansion area.
    [Sec. 204. (a) The Secretary shall provide, to the maximum 
extent feasible, for retention and accrual of all rights and 
benefits which affected employees would have had in an 
employment with affected employers during the period in which 
they are affected employees. The Secretary is authorized and 
shall seek to enter into such agreements as he may deem to be 
appropriate with affected employees and employers, labor 
organizations representing covered employees, and trustees of 
applicable pension and welfare funds, or to take such other 
actions as he deems appropriate to provide for affected 
employees (including the benefits provided for in section 
207(d)) the following rights and benefits:
          [(1) retention and accrual of seniority rights, 
        including recall rights (or, in the case of employees 
        not covered by collective bargaining agreements, 
        application of the same preferences and privileges 
        based upon length of continuous service as are applied 
        under the affected employers usual practices) under 
        conditions no more burdensome to said employees than to 
        those actively employed; and
          [(2) continuing entitlement to health and welfare 
        benefits and accrual of pension rights and credits 
        based upon length of employment and/or amounts of 
        earnings to the same extent as and at no greater cost 
        to said employees than would have been applicable had 
        they been actively employed.
    [(b) The Secretary shall provide, additionally, for 
continuing entitlement to health and welfare benefits (other 
than group life and additional death, dismemberment, and loss 
of sight benefits) for employees who
          [(1) retired from employment with an affected 
        employer for reasons other than disability on or after 
        May 31, 1977, but not later than September 30, 1984;
          [(2) are receiving pension benefits under a plan 
        financed by industry employers
          [(3) were age sixty-two or older but less than age 
        sixty-five at the time of retirement and
          [(4) are not eligible for benefits under title XVIII 
        of the Social Security Act.
    [(c) The agreements described in subsection (a) of this 
section shall provide for the Secretary, effective October 1, 
1977, to make payments on behalf of eligible affected employees 
including employees eligible for the benefits provided for in 
section 207(d) to the applicable pension and welfare trust 
funds and to insurance companies. Such payments may be made in 
the form of grants and/or contributions equivalent to the 
difference between the amounts payable by their affected 
employers and labor organizations pursuant to collective-
bargaining agreements (or, in the absence of such agreements, 
pursuant to established practice) and the amounts that would 
have been paid by their affected employers and their labor 
organizations had said employees worked or received pay for the 
periods for which they receive layoff benefits: Provided, That 
no payment shall be made to a pension fund on behalf of an 
employee who is receiving a pension from such fund. For 
purposes of determining the amounts of contributions calculated 
on the basis of worked or compensable hours, layoff and 
vacation replacement benefits shall be converted into the hours 
they represent in accordance with regulations to be issued by 
the Secretary.
    [(d) No person shall be subject to liability under the 
Employee Retirement Income Security Act of 1974, section 302 of 
the Labor Management Relations Act, 1947, or any other law, 
solely by reason of the receipt of payments from the Secretary 
or the payment of benefits to affected employees in accordance 
with this section. Receipt of such payments and the payment of 
such benefits are deemed to be consistent with any relevant 
plan documents. No action taken pursuant to this section shall 
be deemed to place the Secretary in the position of an employer 
or a party in interest (including a fiduciary) for purposes of 
the Employee Retirement Income Security Act of 1974.
    [Sec. 205. (a) An application for unemployment compensation 
filed by a covered employee on or after the first Monday 
following the date of enactment shall be deemed an application 
for the benefits provided by this Act.
    [(b) An affected employee shall be eligible (unless said 
employee has received a social security retirement or 
disability benefit or a pension under a plan contributed to by 
an affected employer) for layoff and vacation replacement 
benefits, as defined herein, effective the first Monday 
following the date of enactment, for each week of total or 
partial layoff if, with respect to said week, said employed
          [(1) is registered with the United States Employment 
        and Training Service in Humboldt or Del Norte Counties 
        or one of the adjacent counties in the State of 
        California or at such other location as the Secretary 
        may designate;
          [(2) is eligible for unemployment compensation 
        benefits under the California Unemployment Insurance 
        Code: Provided, That the Secretary is authorized and 
        directed to provide for the payment of benefits under 
        this title to an affected employee who is held 
        ineligible or is disqualified for benefits under said 
        code solely because of one or more of the following 
        reasons: insufficient base period earnings; exhaustion 
        of benefit rights; earnings in excess of the amount 
        which would entitle the employee to a partial benefit 
        for the week; the waiting week requirement; 
        unavailability for work because of jury duty, National 
        Guard duty, retraining authorized, financed or approved 
        by a public agency, or because of a similar reason as 
        determined by the Secretary; refusal of work which is 
        not ``suitable work'' as defined in section 201(14) 
        receipt of a worker's compensation or other benefit for 
        partial disability which the employee would be entitled 
        to receive while working; and any other cause of 
        ineligibility with respect to which the Secretary 
        determines that, under the circumstances, it would be 
        unreasonable or otherwise contrary to the purpose of 
        this Act to deny said employee a benefit provided for 
        herein; and
          [(3) the employee's period of protection has not been 
        exhausted or otherwise ended by acceptance of a 
        severance payment.
    [Sec. 206. (a) The period of protection for an affected 
employee shall start with the beginning of the first week for 
which said employee is eligible to receive a layoff or vacation 
replacement benefit as provided by this title, and shall 
continue until the earliest of (i) the date said employee 
accepts a severance payment provided for below, (ii) a period 
equal to the length of the employee's creditable service is 
exhausted, or (iii) said employee's sixty-fifth birthday. In no 
event shall such period extend beyond September 30, 1984, 
except as provided by subsection (d) of section 207.
    [(b) creditable service shall be computed as follows:
          [(1) a period equal to the length of an employee's 
        seniority (or continuous service as defined herein) 
        with said employee's last affected employer as of the 
        date said employee's period of protection begins; plus
          [(2) a period equal to the sum of all prior periods 
        during which the employee had seniority (or continuous 
        service) with the same affected employer and with other 
        industry employers: Provided, That if such seniority 
        was broken (or such continuous service was interrupted) 
        for more than three consecutive years for any reason 
        other than employment with other affected or industry 
        employers, periods of service in the Armed Forces or 
        disabilities for which said employee received any 
        workers' compensation benefits, unemployment 
        compensation disability benefits, or disability 
        benefits under the Social Security Act, any periods of 
        seniority (or continuous service) prior to the break in 
        seniority (or interruption in continuous service) shall 
        be disregarded.
    [(c) If necessary, in order to establish an employee's 
creditable service, the Secretary shall request authorization 
to examine said employee's social security wage record and 
shall compute such service from it by a method to be prescribed 
by regulation.
    [Sec. 207. (a) Except as further provided in this section, 
the amount of an eligible employee's weekly layoff benefit 
shall be equal to (1) the annual average of all hours of work 
performed by said employee for the last affected employer for 
whom the employee worked prior to the date of enactment of this 
section during those three of the five calendar years 
immediately preceding said date during which such hours were 
greatest, counting hours paid for at time and a half and double 
time as one and one-half and two hours, respectively, 
multiplied by (2) the wage rate applicable during the week for 
which the benefit is payable, to the highest paid job held by 
said employee, other than by temporary assignment, with said 
affected employer during the period from January 1, 1977, 
through the date of enactment of this section, and divided by 
(3) fifty-two.
    [(b) The weekly benefit amount for an eligible employee 
with less than five calendar years of employment with one 
affected employer immediately prior to the enactment date shall 
be equal to the lessor of--
          [(1) the average benefit that would be payable with 
        respect to the same week to those covered employees (if 
        they were eligible in the same week) who had five or 
        more calendar years of employment with the same 
        affected employer (in accord with subsection (a) of 
        this section) whose benefit amounts are computed on the 
        basis of the wage rate for a job the same as, or most 
        similar to, the highest paid job said employee had 
        held, other than by temporary assignment, with said 
        affected employer during the period from January 1, 
        1977, through the date of enactment of this section, or
          [(2) an amount calculated by substituting in clause 
        (1) of subsection (a) the annual average of all hours 
        of work performed by said employee for said employer 
        during those calendar years for which said employee had 
        performed work and throughout which lie had seniority 
        (or continuous service).
    [(c) Notwithstanding subsections (a) and (b), the Secretary 
shall classify as a ``seasonal employee'' any affected employee 
whose highest paid job held, other than by temporary 
assignment, with said affected employer during the period from 
January 1, 1977, through the date of enactment of this section 
was in an occupation in which the average annual number of 
weeks during which work was actually performed by all covered 
employees employed in said occupation during the five calendar 
years preceding the enactment date was forty or less. With 
respect to such seasonal employees--
          [(1) the calculation of benefit amount set forth in 
        subsection (a) shall be modified by--
                  [Deducting from the hours representing 
                vacation pay and vacation pay increments and:
                  [(B) substituting for the fifty-two provided 
                in clause (3) of subsection (a) a divisor equal 
                to the average annual number of weeks for which 
                said employee performed work for an affected 
                employer in said occupation during those three 
                of the five calendar years immediately 
                preceding the date of enactment during which 
                the number of such weeks was greatest: 
                Provided, That this calculation shall be 
                modified in accord with subsection (b) with 
                respect to those employees who had less than 
                five calendar years of employment with one 
                affected employer immediately prior to the date 
                of enactment of this section.
          [(2) the number of weekly benefits payable in any 
        calendar year shall not exceed the annual average 
        number of weeks for which a seasonal employee received 
        pay from an affected employer for work performed in the 
        employee's occupation, as established by paragraph 
        (1)(B), and shall be payable only during those weeks of 
        each year determined by the secretary to be the usual 
        season for that occupation;
          [(3) vacation pay and vacation pay increments shall 
        be paid in tile same amounts and at the said times of 
        each year as they would have been paid had said 
        employee performed work during all of the time for 
        which said employee receives layoff benefits. Such pay 
        is referred to herein as ``vacation replacement 
        benefit's''.
    [(d) Notwithstanding any other provision of this Act, the 
benefits for any affected employee who will reach the age of 
sixty on or before September 30, 1984, shall be extended after 
the end of the employee's period of protection (unless 
severance pay has been accepted) until the employee's sixty-
fifth birthday, and shall be equal to said employees weekly 
layoff benefit.
    [(e) The benefit amount provided by this section for any 
week of total or partial layoff shall be reduced by--
          [(1) the full amount of any earnings, including pay 
        for time not worked with respect to the same week, from 
        employment obtained pursuant to section 103, or 
        employment by employers engaged in timber harvesting, 
        or in related sawmill, plywood, and other wood 
        processing operations;
          [(2) 50 per centum of earnings and pay for time not 
        worked from any other employer with respect to that 
        week; and
          [(3) the full amount of any unemployment compensation 
        attributable to that week.
    [Sec. 208. (a) An affected employee (other than a short-
service employee described in subsection (a) of section 209) 
shall be paid severance pay in accordance with this section if 
said employee;
          [(1) has been on a continuous layoff from employment 
        with the employee's last affected employer for a period 
        of at least twenty weeks subsequent to December 31, 
        1977;
          [(2) has no definite recall date for work with the 
        affected employer by whom the employee was laid off and 
        on offer of suitable work by any affected employer; and
          [(3) applies for severance pay during a week with 
        respect to which said employee has not performed work 
        for an affected employer: Provided, That this clause 
        shall not result in denial of severance pay to an 
        otherwise eligible employee who at the time of 
        application is totally and permanently disabled as 
        defined in the Social Security Act; or
          [(4) was permanently separated from employment with 
        an affected employer during the period beginning May 
        31, 1977, and ending on the date of enactment of this 
        Act, as a result of the closure of the mill or plant in 
        which said employee was employed and has not, since 
        said separation, been employed by an affected employer. 
        Provided, That an employee shall be deemed an affected 
        employee for purposes of this section if said employee 
        meets the requirements of clauses (1), (2), and (3) of 
        section 204(b).
    [(b) The amount of severance pay payable to an employee 
shall be computed by multiplying the applicable number of weeks 
determined in accordance with subsection (c) by the amount of 
the weekly layoff benefit (without reduction for earnings or 
other benefits) which is payable, or would be payable if the 
employee were eligible, for the week in which the application 
was filed; Provided, That for a seasonal employee the amount so 
calculated, plus the amount of vacation replacement benefits 
applicable for that year shall be multiplied by the number of 
weeks in said employee's usual season, as determined ill 
section 20i(c). and the result divided by fifty-two.
    [(c) Tile number of weeks of severance pay shall be equal 
to one week for each month of the employee's creditable service 
up to a maximum of seventy-two weeks; Provided, That the 
severance payment to any employee shall not exceed the total 
amount of the weekly layoff and vacation replacement benefits 
which would have been payable if said employee were to be 
eligible for such benefits continuously from the week of 
application until the end of the applicable period of 
protection (or, in the case of an employee described in the 
final provision of subsection (a), until the earlier of said 
employee's sixty-fifth birthday or September 30, 1984), 
calculated on the basis of the weekly amounts of such benefits 
as of the date of application for severance pay.
    [(d) Acceptance of severance pay terminates the affected 
employee's period of protection and makes said employee 
ineligible thereafter for all other forms of terminal pay and 
for the protections provided in section ,04. except as 
otherwise specifically provided in this Act.
    [(e) Before making a severance payment to an employee, the 
Secretary shall obtain said employee's written agreement that, 
upon resumption of employment in the industry within Humboldt 
and Del Norte Counties and the counties adjacent thereto in the 
State of California prior to September 30, 1980, or such later 
date established by the Secretary with respect to said employee 
pursuant to section 203, said employee will return it in weekly 
installments equal to a specified percentage of the employee's 
earnings in the industry, which the Secretary shall set at a 
reasonable level. The agreement shall include authorization for 
the Secretary to arrange with an employer for withholding of 
the applicable amounts from the employee's pay.

                        [short-service employees

    [Sec.209. (a) Notwithstanding any other provision of this 
Act, an affected employee as defined in this title shall be 
ineligible for any benefit under this title except as provided 
in this section if:
          [(1) said employee will not reach age sixty before 
        October 1, 1984; and
          [(2) said employee as of the date of becoming an 
        affected employee, does not have service credit for 
        pension purposes of at least five full years under a 
        pension plan contributed to by industry employers.
    [(b) An affected employee described in subsection (a) shall 
be paid severance pay in accordance with this section if said 
employee meets tile requirements of section 208(a).
    [(c) Said employee shall be paid a severance Payment equal 
to forty times the hourly wage rate applicable at the time of 
application for severance pay to the highest paid job held by 
said employee other than by temporary assignment, during 
calendar year 19p77, with the employee's last affected employer 
for each one hundred and seventy-three hours for which said 
employee performed work for affected employers.
    [(d) Subsection (d) of section 208 shall be applicable to 
employees applying for and accepting severance payments 
pursuant to this section except that such employees shall 
remain eligible for allowances provided for in sections 211 and 
212, and for retraining as provided for in section 210(a) and 
while in good faith engaged in such training shall be paid the 
same stipends and allowances as are generally applicable to 
individuals engaged in such retraining programs who are not 
employees as defined in this Act.

                              [retraining
    [Sec. 210. (a) An affected employee is eligible to apply 
for and the Secretary shall authorize training (including 
training for technical and professional occupations) at 
Government expense during said employee's period of protection 
if--
          [(1) the Secretary determines that there is no 
        suitable employment available for the employee within a 
        reasonable commuting area; and
          [(2) there is substantial reason to believe that the 
        employee's employment prospects would be enhanced after 
        successful completion of the training for which 
        application has been filed.
          [(b) An affected employee engaged in training 
        authorized by subsection (a) shall be paid layoff and 
        vacation replacement benefits while in good faith 
        engaged in such training and shall continue to be paid 
        such benefits while so engaged.
    [Sec. 211. Upon application filed by an affected employee 
during said employee's period of protection, said employee 
shall be eligible for a job search allowance under the same 
terms, conditions, and amounts as provided in section 237 of 
the Trade Act of 1974
    [Sec. 212. (a) A relocation allowance shall be paid upon 
application by an affected employee during the applicable 
period of protection if--
          [(1) the Secretary determines that said employee 
        cannot reasonably be expected to obtain suitable work 
        in the commuting area in which said employee resides; 
        and
          [(2) the employee has obtained--
                  [(A) suitable employment affording a 
                reasonable expectation of long-term duration in 
                the area in which said employee wishes to 
                relocate; or
                  [(B) a bona fide offer of such employment; or
          [(3) the employee relocated during the period 
        beginning May 31, 1977, and ending on the date of 
        enactment, because of acceptance of employment 
        requiring a change ill residence to a location outside 
        the commuting area in which said employee resided 
        immediately prior to becoming an affected employee.
      [(b) The Secretary shall provide the same moving expense 
benefits for the same purposes as are set forth ill the 
Regional Raid Reorganization Act of 1973 ( Public Law 93-236).

                            [administration

      [Sec. 213.(a) The Secretary shall be responsible for 
paying promptly all benefits and payments provided by this 
title.
      [(b) Effective October 1, 1977, there are authorized to 
be appropriated annually such sums as may be required to meet 
the obligations provided for in this title.
      [(c) The Secretary shall have the authority to obtain 
information necessary to carry out the responsibilities created 
under this Act in the same manner as provided by section 249 of 
the Trade Act of 1974.
      [(d) The Secretary shall offer all reasonable cooperation 
and assistance to individuals who believe they may qualify for 
the benefits, payments, preferential hiring rights, and other 
protections provided for employees under this Act. Among other 
things, the Secretary shall--
      [(1) provide all covered employees with literature 
stating their rights and obligations in nontechnical terms; and
      [(2) develop and implement procedures for the filing 
(including filing by mail in appropriate circumstances as 
determined by the Secretary) of applications; appeals, and 
complaints relating to the rights and entitlements established 
for employees by this title designed to facilitate prompt 
determinations and prompt payment to eligible applicants.
      [(e) The Secretary shall direct that notices; reports, 
applications, appeals, and information concerning the 
implementation of this title required to be filed with the 
Secretary shall be filed at the offices of the United States 
Employment and Training Service in Humboldt and Del Norte 
Counties of the State of California and that information 
required to facilitate employees; exercise of their rights 
under this title shall be kept available at such offices unless 
the Secretary shall designate additionally.
      [(f) In all cases where two or more constructions of the 
language of this title would be reasonable, the Secretary shall 
adopt and apply that construction which is most favorable to 
employees. The Secretary shall avoid inequities adverse to 
employees that otherwise would arise from an unduly literal 
interpretation of the language of this title.]
          * * * * * * *

                      TITLE 29--UNITED STATES CODE

          DISPLACED HOMEMAKERS SELF-SUFFICIENCY ASSISTANCE ACT

          * * * * * * *

[Sec. 2301. Findings; Statement of Purpose

      [(a) Findings. The Congress finds that--
      [(1) the Nation has a vested interest in building a 
quality and productive workforce that will enable the United 
States to compete effectively in the global marketplace;
          [(2) two in every three new entrants to the workforce 
        during the 1990's will be women, and such women need 
        appropriate basic and occupational skills to fill jobs 
        requiring much higher skill levels than the jobs of 
        today;
          [(3) there are approximately 15,600,000 displaced 
        homemakers in the United States, the majority of whom 
        are women not in the labor force, who live in poverty 
        and who require educational, vocational, training and 
        other services to obtain financial independence and 
        economic security; and
          [(4) Federal, State, and local programs addressing 
        the training and employment needs of displaced 
        homemakers have been fragmented and insufficient to 
        serve displaced homemakers effectively.
      [(b) Purpose. It is the purpose of this Act to provide 
assistance to States to provide coordination and referral 
services, support service assistance, and program and technical 
assistance to displaced homemakers and displaced homemaker 
service providers. Such assistance will enable public and 
private entities to better meet the needs of displaced 
homemakers and will expand the employment and self-sufficiency 
options of displaced homemakers.]
          * * * * * * *

                      TITLE 40--UNITED STATES CODE

              APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965

          * * * * * * *

[Sec. 211. Uniform; at whose expense; Capitol Police

    [The members of the Capitol police shall furnish, at their 
own expense, each his own uniform, which shall be in exact 
conformity to that required by regulation of the Sergeants-at-
Arms.]
          * * * * * * *

                      TITLE 42--UNITED STATES CODE

               STEWART B McKINNEY HOMELESS ASSISTANCE ACT

          * * * * * * *

[Sec. 11421. State literacy initiatives

      [(a) General authority. The Secretary of Education shall 
make grants to State educational agencies to enable such agency 
to implement, either directly or through contracts and grants, 
a program of literacy training and basic skills remediation for 
adult homeless individuals within the State, which shall--
          [(1) include a program of outreach activities; and
          [(2) be coordinated with existing resources such as 
        community-based organizations, VISTA recipients, adult 
        basic education program recipients, and nonprofit 
        literacy-action organization.
    [(b) Application. Each State educational agency desiring to 
receive its allocation under this section shall submit to the 
Secretary of Education an application at such time, in such 
manner, and containing such information as the Secretary may 
reasonably require. Each such application shall include an 
estimate of the number of homeless expected to be served.
    [(c) Authorization of appropriations; allocation.
          [(1) There is authorized to be appropriated 
        $10,000,000 for each of the fiscal years 1989 and 1990, 
        $13,700,000 for fiscal year 1991, and such sums as may 
        be necessary in each of the fiscal years 1992 and 1993, 
        for the adult literacy and basic skills remediation 
        programs authorized by this section.
          [(2) The Secretary of Education shall, in making 
        grants under this section, give special consideration 
        to the estimates submitted in the application under 
        subsection (b) of this section.
    [(d) Definition. As used in this section, the term 
``State'' means each of the several States, the District 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
Guam, American Samoa, and the Commonwealth of the Northern 
Mariana Islands.]
          * * * * * * *

[Sec. 11441. Demonstration program authorized

    [(a) General authority. The Secretary of Labor shall, from 
funds appropriated pursuant to section 739, make grants for the 
Federal share of job training demonstration projects for 
homeless individuals in accordance with the provisions of this 
subtitle
    [(b) Contract authority. The Secretary is authorized to 
enter into such contracts with State and local public agencies, 
private nonprofit organizations, private businesses, and other 
appropriate entities as may be necessary to carry out the 
provisions of this subtitle]
          * * * * * * *

                      TITLE 49--UNITED STATES CODE

          * * * * * * *

[Sec. 5322. Human resource programs

    [The Secretary of Transportation may undertake, or make 
grants and contracts for, programs that address human resource 
needs as they apply to mass transportation activities. A 
program may include--
          [(1) an employment training program;
          [(2) an outreach program to increase minority and 
        female employment in mass transportation activities;
          [(3) research on mass transportation personnel and 
        training needs; and
          [(4) training and assistance for minority business 
        opportunities.]
          * * * * * * *

               [CHAPTER 421--LABOR-MANAGEMENT PROVISIONS

               [Subchapter I--Employee Protection Program

[Sec. 42101. Definitions

    [(a) General. In this subchapter
          [(1) ``eligible protected employee'' means a 
        protected employee who is deprived of employment, or 
        who is adversely affected related to compensation, 
        because of a qualifying dislocation.
          [(2) ``major contraction'' means a reduction (except 
        as provided in subsection (b) of this section) of at 
        least 7.5 percent in the number of full-time employees 
        of an air carrier within a 12-month period, except for 
        employees deprived of employment because of a strike or 
        whose employment is ended for cause.
          [(3) ``protected employee'' means an individual who 
        on October 24, 1978, had been employed for at least 4 
        years by an air carrier that held a certificate under 
        section 401 of the Federal Aviation Act of 1958, but 
        does not include a director or officer of a 
        corporation.
          [(4) ``qualifying dislocation'' means a bankruptcy or 
        major contraction of an air carrier holding a 
        certificate under section 41102 of this title when the 
        Secretary of Transportation finds the bankruptcy or 
        contraction occurred after December 31, 1978, and 
        before January 1, 1989, the major cause of which was 
        the change in regulatory structure provided by the 
        Airline Deregulation Act of 1978.
    [(b) Major contraction. The Secretary may find a reduction 
of less than 7.5 percent of the number of full-time employees 
is part of a major contraction if the Secretary decides another 
reduction is likely to occur within the 12-month period in 
which the first reduction occurs that, when included with the 
first reduction, will result in a total reduction of more than 
7.5 percent.

[Sec. 42102. Payments to eligible protected employees

    [(a) Authority to pay and applications for payments. 
Subject to amounts provided in an appropriation law, the 
Secretary of Labor shall make monthly assistance payments, 
moving expense payments, and reimbursement payments as provided 
under this section to an eligible protected employee whose 
employment is not ended for cause. The employee must apply to 
receive the payments and cooperate with the Secretary in 
finding other employment.
    [(b) Number and amount of payments.
          [(1) Subject to amounts provided in an appropriation 
        law, an eligible protected employee shall receive 72 
        monthly assistance payments. However, an eligible 
        protected employee deprived of employment may not 
        receive a payment after obtaining other employment. For 
        each class or craft of protected employees, the 
        Secretary of Labor, after consulting with the Secretary 
        of Transportation, shall prescribe by regulation 
        guidelines for computing the amount of each monthly 
        assistance payment to be made to a member of the class 
        or craft and what percentage of salary that payment 
        represents.
          [(2) The amount of a monthly payment payable under 
        paragraph (1) of this subsection to an eligible 
        protected employee shall be reduced--
                [(A) by unemployment compensation the employee 
                receives; or
                [(B) if the employee does not accept reasonably 
                comparable employment, to an amount the 
                employee would be entitled to receive if the 
                employee had accepted the employment.
          [(3) If accepting comparable employment to avoid a 
        reduction in the monthly assistance payment under 
        paragraph (2) of this subsection would force an 
        eligible protected employee to relocate, the employee 
        may decide not to relocate. Instead of the payment 
        provided under this section, the employee may receive 
        the lesser of 3 payments or the maximum number of 
        payments that remain to be paid under paragraph (1) of 
        this subsection.
    [(c) Moving expenses and reimbursements.
          [(1) Subject to amounts provided in an appropriation 
        law, an eligible protected employee who relocates shall 
        receive--
                  [(A) reasonable moving expense payments to 
                move the employee and the employee's immediate 
                family; and
                  [(B) reimbursement payments for a loss 
                incurred in selling the employee's principal 
                place of residence for less than fair market 
                value or in cancelling a lease on, or contract 
                to buy, the residence.
          [(2) The Secretary of Labor shall decide on the 
        amount of the moving expenses and the fair market value 
        of the residence.]

[Sec. 42103. Duty to hire protected employees

    [(a) Rehiring protected employees. A protected employee of 
an air carrier regulated by the Secretary of Transportation who 
was furloughed or whose employment was ended by the carrier 
(except for cause) before October 23, 1988, is entitled to be 
the first employed in the occupational specialty of the 
employee, regardless of the employee's age, by any other air 
carrier holding a certificate under section 41102 of this title 
before October 24, 1978. However, the air carrier may recall 
its furloughed employees before hiring a protected employee of 
another air carrier regulated by the Secretary who was 
furloughed or whose employment was ended by the other carrier 
(except for cause) before October 23, 1988. An employee hired 
by an air carrier under this section retains seniority and 
recall rights with the air carrier that furloughed or ended the 
employment of the employee.
    [(b) Duties of Secretary of Labor. The Secretary of Labor--
          [(1) shall establish and publish periodically a list 
        of jobs available with an air carrier holding a 
        certificate under section 41102 of this title that 
        includes necessary information and detail;
          [(2) shall assist eligible employees to find other 
        employment;
          [(3) shall encourage negotiations between air 
        carriers and representatives of the employees on 
        rehiring practices and seniority; and
          [(4) may require an air carrier to file with the 
        Secretary information]

[Sec. 42104. Congressional review of regulations

    [(a) Definition. In this section, ``legislative day'' means 
a calendar day on which both Houses of Congress are in session.
    [(b) Submission to Congress. The Secretary of Labor may not 
prescribe a regulation under this subchapter until 30 
legislative days after the regulation is submitted to the 
Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Public Works and Transportation of 
the House of Representatives.
    [(c) Effectiveness of regulations. A proposed regulation 
under this subchapter shall be submitted to Congress and 
becomes effective only if, during the period of 60 legislative 
days after the regulation is submitted to Congress, either 
House does not pass a resolution disapproving the regulation. 
However, if Congress adopts a resolution approving the 
regulation during the 60-day period, the regulation is 
effective on that date.]

[Sec. 42105. Airline Employees Protective Account

    [The Department of Labor has an Airline Employees 
Protective Account consisting of amounts appropriated to it. An 
amount necessary to carry out this subchapter, including 
administrative expenses, may be appropriated to the Account 
annually.

[Sec. 42106. Ending effective date

    [This subchapter is not effective after the last day the 
Secretary of Labor must make a payment under this subchapter.]
          * * * * * * *

                      TITLE 7--UNITED STATES CODE

                         FOOD STAMP ACT OF 1977

          * * * * * * *

Sec. 2015 * * *

          * * * * * * *
    (d) * * *
          * * * * * * *
          [(4)(A) Not later than April 1, 1987, each State 
        agency shall implement an employment and training 
        program designed by the State agency and approved by 
        the Secretary for the purpose of assisting members of 
        households participating in the food stamp program in 
        gaining skills, training, or experience that will 
        increase their ability to obtain regular employment.
          [(B) For purposes of this Act, an ``employment and 
        training program'' means a program that contains one or 
        more of the following components:
                  [(i) Job search programs with terms and 
                conditions comparable to those prescribed in 
                subparagraphs (A) and (B) of section 402(a)(35) 
                of part A of title IV of the Social Security 
                Act, except that the state agency shall retain 
                the option to apply employment requirements 
                prescribed under this clause to program 
                applicants at the time of application.
                  [(ii) Job search training programs that 
                include, to the extent determined appropriate 
                by the State agency, reasonable job search 
                training and support activities that may 
                consist of jobs skills assessments, job finding 
                clubs, training in techniques for 
                employability, job placement services, or other 
                direct training or support activities, 
                including educational programs, determined by 
                the State agency to expand the job search 
                abilities or employability of those subject to 
                the program.
                  [(iii) Workfare programs operated under 
                section 20.
                  [(iv) Programs designed to improve the 
                employability of household members through 
                actual work experience or training, or both, 
                and to enable individuals employed or trained 
                under such programs to move promptly into 
                regular public or private employment. An 
                employment or training experience program 
                established under this clause shall--
                          [(I) limit employment experience 
                        assignments to projects that serve a 
                        useful public purpose in field such as 
                        health, social services, environmental 
                        protection, urban and rural development 
                        and redevelopment, welfare, recreation, 
                        public facilities, public safety, and 
                        day care;
                          [(II) to the extent possible, use the 
                        prior training, experience, and skills 
                        of the participating member in making 
                        appropriate employment or training 
                        experience assignments;
                          [(III) not provide any work that has 
                        the effect of replacing the employment 
                        of an individual not participation in 
                        the employment or training experience 
                        program; and
                          [(IV) provide the same benefits and 
                        working conditions that are provided at 
                        the job site to employees performing 
                        comparable work for comparable hours.
                  [(v) Educational programs or activities to 
                improve basic skills and literacy, or otherwise 
                improve employability, including educational 
                programs determined by the State agency to 
                expand the job search abilities or 
                employability of those subject to the program 
                under this paragraph.
                  [(vi) Programs designed to increase the self-
                sufficiency of recipients through self-
                employment, including programs that provide 
                instruction for self-employment ventures.
                  [(vii) As approved by the Secretary or the 
                State under regulations issued by the 
                Secretary, other employment, educational and 
                training programs, projects, and experiments, 
                such as a supported work program, aimed at 
                accomplishing the purpose of the employment and 
                training program.
          [(C) The State agency may provide that participation 
        in an employment and training program may supplement or 
        supplant other employment-related requirements imposed 
        on those subject to the program.
          [(D) (i) Each State agency may exempt from any 
        requirement for participation in any program under this 
        paragraph categories of household members to which the 
        application of such participation requirement is 
        impracticable as applied to such categories due to 
        factors such as the availability of work opportunities 
        and the cost-effectiveness of the employment 
        requirements. In making such a determination, the State 
        agency may designate a category consisting of all such 
        household members residing in a specific area of the 
        State. Each State may exempt, with the approval of the 
        Secretary, members of households that have participated 
        in the food stamp program 30 days or less.
          [(ii) Each State agency may exempt from any 
        requirement for participation individual household 
        members not included in any category designated as 
        exempt under clause (i) but with respect to whom such 
        participation is impracticable because of personal 
        circumstances such as lack of job readiness and 
        employability, the remote location of work 
        opportunities, and unavailability of child care.
          [(iii) Any exemption of a category or individual 
        under this subparagraph shall be periodically evaluated 
        to determine whether, on the basis of the factors used 
        to make a determination under clause (i) or (ii), the 
        exemption continues to be valid.Such evaluations shall 
        occur no less often than at each certification or 
        recertification in the case of exemptions under clause 
        (ii).
          [(E) Each State agency shall establish requirements 
        for participation by individuals not exempt under 
        subparagraph (D) in one or more employment and training 
        programs under this paragraph, including the extent to 
        which any individual is required to participate. Such 
        requirements may vary among participants. Through 
        September 30, 1995, two Stats may, on application to 
        and after approval by the Secretary give priority in 
        the provision of services to voluntary participants 
        (including both exempt and non-exempt participants), 
        except that this sentence shall not excuse a State from 
        compliance with the performance standards issued under 
        subparagraphs (K) and (L), and the Secretary may, at 
        the Secretary's discretion, approve additional States' 
        requests to give such priority if the Secretary reports 
        to Congress on the number and characteristics of 
        voluntary participants given priority under this 
        sentence and such other information as the Secretary 
        determines to be appropriate.
          [(F) (i) The total hours of work in an employment and 
        training program carried out under this paragraph 
        required of members of a household, together with the 
        hours of work of such members in any program carried 
        out under section 20, in any month collectively may not 
        exceed a number of hours equal to the household's 
        allotment for such month divided by the higher of the 
        applicable State minimum wage or Federal minimum hourly 
        rate under the Fair Labor Standards Act of 1938. (ii) 
        The total hours of participation in such program 
        required of any member of a household, individually, in 
        any month, together with any hours worked in another 
        program carried out under section and any hours worked 
        for compensation (in cash or in kind) in any other 
        capacity, shall not exceed one hundred and twenty hours 
        per month.
          [(G) (i) The State agency may operate any program 
        component under this paragraph in which individuals 
        elect to participate.
          [(ii) The State agency shall permit, to the extent it 
        determines practicable, individuals not subject to 
        requirements imposed under subparagraph (E) or who have 
        complied, or are in the process of complying, with such 
        requirements to participate in any program under this 
        paragraph.
          [(H) (i) The Secretary shall issue regulations under 
        which each State agency shall establish a conciliation 
        procedure for the resolution of disputes involving the 
        participation of an individual in the program.
          [(ii) Federal funds made available to a State agency 
        for purposes of the component authorized under 
        subparagraph (B)(v) shall not be used to supplant non-
        Federal funds used for existing services and activities 
        that promote the purposes of this component.
          [(I) (i) The State agency shall provide payments or 
        reimbursements to participants in programs carried out 
        under this paragraph, including individuals 
        participating under subparagraph (G), for--
                  [(I) the actual costs of transportation and 
                other actual costs (other than dependent care 
                costs), that are reasonably necessary and 
                directly related to participation in the 
                program, except that the State agency may limit 
                such reimbursement to each participant to $25 
                per month; and
                  [(II) the actual costs of such dependent care 
                expenses that are determined by the State 
                agency to be necessary for the participation of 
                an individual in the program (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, or 
                was in operation, on the date of enactment of 
                the Hunger Prevention Act of 1988 (enacted 
                Sept. 19, 1988) up to any limit set by the 
                State agency (which limit shall not be less 
                than the limit for the dependent care deduction 
                under section 5(e)), but in no event shall such 
                payment or reimbursements exceed the applicable 
                local market rate as determined by procedures 
                consistent with any such determination under 
                the Social Security Act. Individuals subject to 
                the program under this paragraph may not be 
                required to participate if dependent costs 
                exceed the limit established by the State 
                agency under this subclause or other actual 
                costs exceed any limit established under 
                subclause (I).
          [(ii)) 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) 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.
          [(J) The Secretary shall promulgate guidelines that 
        (i) enable State agencies, to the maximum extent 
        practicable, to design and operate an employment and 
        training program that is compatible and consistent with 
        similar programs operated within the State, and (ii) 
        ensure, to the maximum extent practicable, that 
        employment and training programs are provided for 
        Indians on reservations.
          [(K) (i) For any fiscal year, the Secretary shall 
        establish performance standards for each State that, in 
        the case of persons who are subject to employment 
        requirements under this section and who are not exempt 
        under subparagraph (D), designate the minimum 
        percentages (not to exceed 10 percent in fiscal years 
        1992 and 1993, and 15 percent in fiscal years 1994 and 
        1995 of such persons that State agencies shall place in 
        programs under this paragraph. Such standards need not 
        be uniform for all the States, but may vary among the 
        several States. The Secretary shall consider the cost 
        to the States in setting performance standards and the 
        degree of participation in programs under this 
        paragraph by exempt persons. The Secretary shall not 
        require the plan of a State agency to provide for the 
        participation of a number of recipients greater than 10 
        percent in fiscal years 1992 and 1993, and 15 percent 
        in fiscal years 1994 and 1995, of the persons who are 
        subject to employment requirements under this section 
        and who are not exempt under subparagraph (D)
          [(ii) In making any determination as to whether a 
        State agency has met a performance standard under 
        clause (i), the Secretary shall--
                  [(I) consider the extent to which persons 
                have elected to participate in programs under 
                this paragraph;
                  [(II) consider such factors as placement in 
                unsubsidized employment, increases in earnings, 
                and reduction in the number of persons 
                participating in the food stamp program; and
                  [(III) consider other factors determined by 
                the Secretary to be related to employment and 
                training.
          [(iii) The Secretary shall vary the performance 
        standards established under clause (i) according to 
        differences in the characteristics of persons required 
        to participate and the type of program to which the 
        standard is applied.
          [(iv) The Secretary may delay establishing 
        performance standards for up to 18 months after 
        national implementation of the provisions of this 
        paragraph, in order to base performance standards on 
        State agency experience in implementing this paragraph.
          [(L) (i) The Secretary shall establish performance 
        standards and measures applicable to employment and 
        training programs carried out under this paragraph that 
        are based on employment outcomes, including increases 
        in earnings.
          [(ii) Final performance standards and measures 
        referred to in clause (i) shall be published not later 
        than 12 months after the date that the final outcome-
        based performance standards are published for job 
        opportunities and basic skills training programs under 
        part F of title IV of the Social Security Act.
          [(iii) The standards shall encourage States to serve 
        those individuals who have greater barriers to 
        employment and shall take into account the extent to 
        which persons have elected to participate in employment 
        and training programs under this paragraph. The 
        standards shall require participants to make levels of 
        efforts comparable to those required under the 
        regulations set forth in section 273.7(f)(1) of title 
        7, Code of Federal Regulations in effect on January 1, 
        1991.
          [(iv) the performance standards in effect under 
        subparagraph (K) shall remain in effect during the 
        period beginning on October 1, 1988, and ending on the 
        date the Secretary implements the outcome-based 
        performance standards described in this subparagraph.
          [(v) A State agency shall be considered in compliance 
        with applicable performance standards under 
        subparagraph (K) if the State agency operates an 
        employment and training program in a manner consistent 
        with its approved plan and if the program requires 
        participants to make levels of effort comparable to 
        those required under the regulations set forth in 
        section 273.7(f)(1) of title 7, Code of Federal 
        Regulations in effect on January 1, 1991.
          [(M) (i) The Secretary shall ensure that State 
        agencies comply with the requirements of this paragraph 
        and section 11(e)(22).
          [(ii) If the Secretary determines that a State agency 
        has failed, without good cause, to comply with such a 
        requirement, including any failure to meet a 
        performance standard under subparagraph (J), the 
        Secretary may withhold from such State, in accordance 
        with section 16(a), (c), and (h), such funds as the 
        Secretary determines to be appropriate, subject to 
        administrative and judicial review under section 14.
          [(N) The facilities of the State public employment 
        offices and agencies operating programs under the Job 
        Training Partnership Act may be used to find employment 
        and training opportunities for household members under 
        the programs under this paragraph.
    [(e) Students. No individual who is a member of a household 
otherwise eligible to participate in the food stamp program 
under this section shall be eligible to participate in the food 
stamp program as a member of that or any other household if the 
individual is enrolled at least half-time in an institution of 
higher education, unless the individual--
          [(1) is under 18 or is age 50 or older;
          [(2) is not physically or mentally fit;
          [(3) is assigned to or placed in an institution of 
        higher education through or in compliance with the 
        requirements of--
                  [(A) a program under the Job Training 
                Partnership Act;
                  [(B) an employment and training program under 
                this section;
                  [(C) a program under section 236 of the Trade 
                Act of 1974; or
                  [(D) another program for the purpose of 
                employment and training operated by a State or 
                local government, as determined to be 
                appropriate by the Secretary;
          [(4) is employed a minimum of 20 hours per week or 
        participating in a State or federally financed work 
        study program during the regular school year;
          [(5) is--
                  [(A) a parent with responsibility for the 
                care of a dependent child under age 6; or
                  [(B) a parent with responsibility for the 
                care of a dependent child above the age of 5 
                and under the age of 12 for whom adequate child 
                care is not available to enable the individual 
                to attend class and satisfy the requirements of 
                paragraph (4);
          [(6) is receiving aid to families with dependent 
        children under part A of title IV of the Social 
        Security Act;
          [(7) is so enrolled as a result of participation in 
        the work incentive program under title IV of the Social 
        Security Act or its successor programs; or
          [(8) is enrolled full-time in an institution of 
        higher education, as determined by the institution, and 
        is a single parent with responsibility for the care of 
        a dependent child under age 12.]
           * * * * * * *

                      TITLE 8--UNITED STATES CODE

                    IMMIGRATION AND NATIONALITY ACT

           * * * * * * *

Sec. 1522. * * *

           * * * * * * *
    [(c) Project grants and controls for services for refugees.
          [(1) (A) The Director is authorized to make grants 
        to, and enter into contracts with, public or private 
        nonprofit agencies for projects specifically 
        designated--
                  [(i) to assist refuges in obtaining the 
                skills which are necessary for economic self-
                sufficiency, including projects for job 
                training, employment services, day care, 
                professional refresher training, and other 
                recertification services;
                  [(ii) to provide training in English where 
                necessary (regularless of whether the refugees 
                are employed or receiving cash or other 
                assistance); and
                  [(iii) to provide where specific needs have 
                been shown and recognized by the Director, 
                health (including mental health) services, 
                social services, educational and other 
                services.
          [(B) The funds available for a fiscal year for grants 
        and contracts under Subparagraph (A) shall be allocated 
        among the States based on the total number of refugees 
        (including children and adults) who arrived in the 
        United States not more than 36 months before the 
        beginning of such fiscal year and who are actually 
        residing in each State (taking into account secondary 
        migration) as of the beginning of the fiscal year.
          [(C) Any limitation which the Director establishes on 
        the proportion of funds allocated to a State under this 
        paragraph that the State may use for services other 
        than those described in subsection (a)(1)(B)(ii) shall 
        not apply if the Director receives a plan (established 
        by or in consultation with local governments) and 
        determines that the plan provides for the maximum 
        appropriate provision of employment-related services 
        for, and the maximum placement of, employable refugees 
        consistent with performance standards established under 
        section 106 of the Job Training Partnership Act.
          [(2) (A) The Director is authorized to make grants to 
        States for assistance to counties and similar areas in 
        the States where, because of factors such as unusually 
        large refugee populations (including secondary 
        migration), high refugee concentrations, and high use 
        of public assistance by refugees, there exists and can 
        be demonstrated a specific need for supplementation of 
        available resources for services to refugees.
          [(B) Grants shall be made available under this 
        paragraph--
                  [(i) primarily for the purpose of 
                facilitating refugee employment and Achievement 
                of self-sufficiency,
                  [(ii) in a manner that does not supplant 
                other refugee program funds and that assures 
                that not less than 95 percent of the amount of 
                the grant award is made available to the county 
                or other local entity.
           * * * * * * *

                      TITLE 19--UNITED STATES CODE

                           TRADE ACT OF 1974

           * * * * * * *

[Sec. 2295. Employment services

    [The Secretary shall make every reasonable effort to secure 
for adversely affected workers covered by a certification under 
subchapter A of this chapter counseling, testing, and placement 
services, and supportive and other services, provided for under 
any other Federal law. The Secretary shall, whenever 
appropriate, procure such services through agreements with the 
States.]

[Sec. 2296. Training

    [(a) Approval of training; limitation on expenditures; 
reasonable expectation of employment; payment of costs; 
approved training programs; nonduplication of payments from 
other sources; disapproval of certain programs; exhaustion of 
unemployment benefits; promulgation of regulations.
          [(1) If the Secretary determines that--
                  [(a) there is no suitable employment (which 
                may include technical and professional 
                employment) available for an adversely affected 
                worker,
                  [(b) the worker would benefit from 
                appropriate training.
                  [(c) there is a reasonable expectation of 
                employment following completion of such 
                training,
                  [(d) training approved by the Secretary is 
                reasonably available to the worker from either 
                governmental agencies or private sources (which 
                may include area vocational education schools, 
                as defined in section 195(2) of the Vocational 
                Education Act of 1963, and employers),
                  [(e) the worker is qualified to undertake and 
                complete such training, and
                  [(f) such training is suitable for the worker 
                and available at a reasonable cost, the 
                Secretary shall approve such training for the 
                worker. Upon such approval, the worker shall be 
                entitled to have payment of the costs of such 
                (subject to the limitations imposed by this 
                section) training paid on his behalf by the 
                Secretary directly or through a voucher system. 
                Insofar as possible, the Secretary shall 
                provide or assure the provision of such 
                training on the job, which shall include 
                related education necessary for the acquisition 
                of skills needed for a position within a 
                particular occupation.
          [(2) (A) The total amount of payments that may be 
        made under paragraph (1) for any fiscal year shall not 
        exceed $80,000,000, except that for fiscal year 1997, 
        the total amount of payments made under paragraph (1) 
        shall not exceed $70,000,000.
    [(b) If, during any fiscal year, the Secretary estimates, 
that the amount of funds necessary to pay the costs of training 
approved under this section will exceed the amount of the 
limitation imposed under subparagraph (A), the Secretary shall 
decide how the portion of such limitation that has not been 
expended at the time of such estimate is to be apportioned 
among the States for the remainder of such fiscal year.
          [(3) For purposes of applying paragraph (1)(C), a 
        reasonable expectation of employment does not require 
        that employment opportunities for a worker be 
        available, or offered, immediately upon the completion 
        of training approved under this paragraph (1).
          [(4) (A) If the costs of training an adversely 
        affected worker are paid by the Secretary under 
        paragraph (1), no other payment for such costs may be 
        made under any other provision of Federal law.
    [(b) No payment may be made under paragraph (1) of the 
costs of training an adversely affected worker if such costs--
          [(i) have already been paid under any other provision 
        of Federal law, or
          [(ii) are reimbursable under any other provision of 
        Federal law and a portion of such costs have already 
        been paid under such other provision of Federal law.
    [(c) The provisions of this paragraph shall not apply to, 
or take into account, any funds provided under any other 
provision of Federal law which are used for any purpose other 
than the direct payment of the costs incurred in training a 
particular adversely affected worker, even if such use has the 
effect of indirectly paying or reducing any portion of the 
costs involved in training the adversely affected worker.
          [(5) The training programs that may be approved under 
        paragraph (1) include, but are not limited to--
                  [(a) on-the-job training,
                  [(b) any training program provided by a State 
                pursuant to section 303 of the Job Training 
                Partnership Act,
                  [(c) any training program approved by a 
                private industry council established under 
                section 102 of such Act,
                  [(d) any program of remedial education,
                  [(e) any training program (other than a 
                training program described in paragraph (7)) 
                for which all, or any portion, of the costs of 
                training the worker are paid--
                          [(i) under any Federal or State 
                        program other than this chapter, or
                          [(ii) from any source other than this 
                        section, and
                  [(f) any other training program approved by 
                the Secretary.
          [(6) (A) The Secretary is not required under 
        paragraph (1) to pay the costs of any training approved 
        under paragraph (1) to the extent that such costs are 
        paid--
                  [(i) under any Federal or State program other 
                than this chapter, or
                  [(ii) from any source other than this 
                section.
          [(b) Before approving any training to which 
        subparagraph (A) may apply, the Secretary may require 
        that the adversely affected worker enter into an 
        agreement with the Secretary under which the Secretary 
        will not be required to pay under this section the 
        portion of the costs of such training that the worker 
        has reason to believe will be paid under the program, 
        or by the source, described in clause (i) or (ii) of 
        subparagraph (A).
          [(7) The Secretary shall not approve a training 
        program if--
                  [(a) all or a portion of the costs of such 
                training program are paid under any 
                nongovernmental plan or program,
                  [(b) the adversely affected worker has a 
                right to obtain training or funds for training 
                under such plan or program, and
                  [(c) such plan or program requires the worker 
                to reimburse the plan or program from funds 
                provided under this chapter, or from wages paid 
                under such training program, for any portion of 
                the costs of such training program paid under 
                the plan or program.
          [(8) The Secretary may approve training for any 
        adversely affected worker who is a member of a group 
        certified under subchapter A at any time after the date 
        on which the group is certified under subchapter A, 
        without regard to whether such worker has exhausted all 
        rights to any unemployment insurance to which the 
        worker is entitled
          [(9) The Secretary shall prescribe regulations which 
        set forth the criteria under each of the subparagraphs 
        of paragraph (1) that will be used as the basis for 
        making determinations under paragraph (1).
                  [(b) Supplemental assistance. The Secretary 
                may, where appropriate, authorize supplemental 
                assistance necessary to defray reasonable 
                transportation and subsistence expenses for 
                separate maintenance when training is provided 
                in facilities which are not within commuting 
                distance of a worker's regular place of 
                residence. The Secretary may not authorize--
                          [(1) payments for subsistence that 
                        exceed whichever is the lesser of (A) 
                        the actual per diem expenses for 
                        subsistence, or (B) payment at 50 
                        percent of the prevailing per diem 
                        allowance rate authorized under the 
                        Federal travel regulations, or
                          [(2) payments for travel expenses 
                        exceeding the prevailing mileage rate 
                        authorized under the Federal travel 
                        regulations.
                  [(c) Payment of costs of on-the-job training. 
                The Secretary shall pay the costs of any on-
                the-job training of an adversely affected 
                worker that is approved under subsection (a)(1) 
                in equal monthly installments, but the 
                Secretary may pay such costs, notwithstanding 
                any other provision of this section, only if--
                          [(1) no currently employed worker is 
                        displaced by such adversely affected 
                        worker (including partial displacement 
                        such as a reduction in the hours of 
                        nonovertime work, wages, or employment 
                        benefits),
                          [(2) such training does not impair 
                        existing contracts for services or 
                        collective bargaining agreements,
                          [(3) in the case of training which 
                        would be inconsistent with the terms of 
                        a collective bargaining agreement, the 
                        written concurrence of the labor 
                        organization concerned has been 
                        obtained,
                          [(4) no other individual is on layoff 
                        from the same, or any substantially 
                        equivalent, job for which such 
                        adversely affected worker is being 
                        trained,
                          [(5) the employer has not terminated 
                        the employment of any regular employee 
                        or otherwise reduced the workforce of 
                        the employer with the intention of 
                        filling the vacancy so created by 
                        hiring such adversely affected worker,
                          [(6) the job for which such adversely 
                        affected worker is being trained is not 
                        being created in a promotional line 
                        that will infringe in any way upon the 
                        promotional opportunities of currently 
                        employed individuals,
                          [(7) such training is not for the 
                        same occupation from which the worker 
                        was separated and with respect to which 
                        such worker's group was certified 
                        pursuant to section 222,
                          [(8) the employer certifies to the 
                        Secretary that the employer will 
                        continue to employ such worker for at 
                        least 26 weeks after completion of such 
                        training if the worker desires to 
                        continue such employment and the 
                        employer does not have due cause to 
                        terminate such employment,
                          [(9) the employer has not received 
                        payment under subsection (a)(1) with 
                        respect to any other on-the-job 
                        training provided by such employer 
                        which failed to meet the requirements 
                        of paragraphs (1), (2), (3), (4), (5), 
                        and (6), and
                          [(10) the employer has not taken, at 
                        any time, any action which violated the 
                        terms of any certification described in 
                        paragraph (8) made by such employer 
                        with respect to any other on-the-job 
                        training provided by such employer for 
                        which the Secretary has made a payment 
                        under subsection (a)(1).
    [(d) Eligibility for unemployment insurance. A worker may 
not be determined to be ineligible or disqualified for 
unemployment insurance or program benefits under this 
subchapter because the individual is in training approved under 
subsection (a), because of leaving work which is not suitable 
employment to enter such training, or because of the 
application to any such week in training of provisions of State 
law or Federal unemployment insurance law relating to 
availability for work, active search for work, or refusal to 
accept work. The Secretary shall submit to the Congress a 
quarterly report regarding the amount of funds expended during 
the quarter concerned to provide training under subsection (a) 
and the anticipated demand for such funds for any remaining 
quarters in the fiscal year concerned.
      [(e) ``Suitable employment'' defined.
      [For purposes of this section the term ``suitable 
employment'' means, with respect to a worker, work of a 
substantially equal or higher skill level than the worker's 
past adversely affected employment, and wages for such work at 
not less than 80 percent of the worker's average weekly wage.]
          * * * * * * *

Sec. 2331 * * *

          * * * * * * *
    [(d) * * *
          [(1) Employment services described in section 235.
          [(2) Training described in section 236, except that 
        notwithstanding the provisions of section 236(a)(2)(A) 
        the total amount of payments for training under this 
        subchapter for any fiscal year shall not exceed 
        $30,000,000.]
          * * * * * * *

                      TITLE 20--UNITED STATES CODE

                          ADULT EDUCATION ACT

          * * * * * * *

[Sec. 1201. Statement of purpose

    [It is the purpose of this title to assist the States to 
improve educational opportunities for adults who lack the level 
of literacy skills requisite to effective citizenship and 
productive employment, to expand and improve the current system 
for delivering adult education services including delivery of 
such services to education any disadvantaged adults, and to 
encourage the establishment of adult education programs that 
will--
          [(1) enable these adults to acquire the basic 
        educational skills necessary for literate functioning;
          [(2) provide these adults with sufficient basic 
        education to enable them to benefit from job training 
        and retraining programs and obtain and retain 
        productive employment so that they might more fully 
        enjoy the benefits and responsibilities of citizenship; 
        and
          [(3) enable adults who so desire to continue their 
        education to at least the level of completion of 
        secondary school.]
          * * * * * * *

                      TITLE 20--UNITED STATES CODE

    CARL D. PERKINS VOCATIONAL AND APPLIED TECHNOLOGY EDUCATION ACT

          * * * * * * *

[Sec. 2301. Statement of purpose

    [It is the purpose of this Act to make the United States 
more competitive in the world economy by developing more fully 
the academic and occupational skills of all segments of the 
population. This purpose will principally be achieved through 
concentrating resoruces on improving educational programs 
leading to academic and occupational skill competencies needed 
to work in a technologically advanced society.]
          * * * * * * *

                      TITLE 20--UNITED STATES CODE

                SCHOOL-TO-WORK OPPORTUNITIES ACT OF 1994

          * * * * * * *

[Sec. 6101 Findings.

    [Congress finds that
          [(1) three-fourths of high school students in the 
        United States enter the workforce without baccalaureate 
        degrees, and many do not possess the academic and 
        entry-level occupational skills necessary to succeed in 
        the changing United States workplace;
          [(2) a substantial number of youths in the United 
        States, especially disadvantaged students, students of 
        diverse racial, ethnic, and cultural backgrounds, and 
        students with disabilities, do not complete high 
        school;
          [(3) unemployment among youths in the United States 
        is intolerably high, and earnings of high school 
        graduates have been falling relative to earnings of 
        individuals with more education;
          [(4) the workplace in the United States is changing 
        in response to heightened international competition and 
        new technologies, and such forces, which are ultimately 
        beneficial to the Nation, are shrinking the demand for 
        and undermining the earning power of unskilled labor,
          [(5) The United States lacks a comprehensive and 
        coherent system to help its youths acquire the 
        knowledge, skills, abilities, and information about and 
        access to the labor market necessary to make an 
        effective transition from school to career-oriented 
        work or to further education and training;
          [(6) students in the United States can achieve high 
        academic and occupational standards, and many learn 
        better and retain more when the students learn in 
        context, rather than in the abstract;
          [(7) while many students in the United States have 
        part-time jobs, there is infrequent linkage
          [(a) such jobs; and
          [(b) the career planning or exploration, or the 
        school-based learning, of such students;
          [(8) the work-based learning approach, which is 
        modeled after the time-honored apprenticeship concept, 
        integrates theoretical instruction with structured on-
        the-job training, and this approach, combined with 
        school-based learning, can be very effective in 
        engaging student interest, enhancing skill acquisition, 
        developing positive work attitudes, and preparing 
        youths for high-skill, high-wage careers;
          [(9) Federal resources currently fund a series of 
        categorical, work-related education and training 
        programs, many of which serve disadvantaged youths, 
        that are not administered as a coherent whole; and
          [(10) in 1992 approximately 3,400,000 individuals in 
        the United States age 16 through 24 had not completed 
        high school and were not currently enrolled in school, 
        a number representing approximately 11 percent of all 
        individuals in this age group, which indicates that 
        these young persons are particularly unprepared for the 
        demands of a 21st century workforce.]
          * * * * * * *

                      TITLE 29--UNITED STATES CODE

                           WAGNER-PEYSER ACT

          * * * * * * *

[Sec. 49. United States Employment Service established

    [In order to promote the establishment and maintenance of a 
national system of public employment offices, the United States 
Employment Service shall be established and maintained within 
the Department of Labor.]
          * * * * * * *

                      TITLE 29--UNITED STATES CODE

                      JOB TRAINING PARTNERSHIP ACT

          * * * * * * *

[Sec. 1501. Statement of purpose

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

                      TITLE 42--UNITED STATES CODE

                          SOCIAL SECURITY ACT

          * * * * * * *

[Sec. 681. Purpose and definitions

    [(a) Purpose. It is the purpose of this part to assure that 
needy families with children obtain the education, training, 
and employment that will help them avoid long-term welfare 
dependence.
    [(b) Meaning of terms. Except to the extent otherwise 
specifically indicated, terms used in this part shall have the 
meanings given them in or under part A.]
          * * * * * * *

                      TITLE 42--UNITED STATES CODE

                          OLDER AMERICANS ACT

          * * * * * * *

[Sec. 3056. Older American Community Service Employment Program

    [(a) Employment. In order to foster and promote useful 
part-time opportunities in community service activities for 
unemployed low-income persons who are fifty-five years old or 
older and who have poor employment prospects, the Secretary of 
Labor (hereinafter in this title referred to as the 
``Secretary'') is authorized to establish an older American 
community service employment program.
    [(b) Authority of Secretary; execution of agreements with 
terms and conditions for furthering purposes and goals of 
program; regulations for execution of provisions of 42 USCS 
3056 et seq.
          [(1) in order to carry out the provisions of this 
        title, the Secretary is authorized to enter into 
        agreements with public or private nonprofit agencies or 
        organizations, including national organizations, 
        agencies of a State government or a political 
        subdivision of a State (having elected or duly 
        appointed governing officials), or a combination of 
        such political subdivisions, or tribal organizations in 
        order to further the purposes and goals of the program. 
        Such agreements may include provisions for the payment 
        of costs, as provided in subsection (c), of projects 
        developed by such organizations and agencies in 
        cooperation with the Secretary in order to make the 
        program effective or to supplement the program. No 
        payment shall be made by the Secretary toward the cost 
        of any project established or administered by any such 
        organization or agency unless the Secretary determines 
        that such project--
                  [(A) will provide employment only for 
                eligible individuals, except for necessary 
                technical, administrative, and supervisory 
                personnel, but such personnel shall, to the 
                fullest extent possible, be recruited from 
                among eligible individuals;
                  [(B) will provide employment for eligible 
                individuals in the community in which such 
                individuals reside, or in nearby communities;
                  [(C) will employ eligible individuals in 
                services related to publicly owned and operated 
                facilities and projects, or projects sponsored 
                by organizations, other than political parties, 
                exempt from taxation under the provisions of 
                section 501(c)(3) of the Internal Revenue Code 
                of 1986, except projects involving the 
                construction, operation, or maintenance of any 
                facility used or to be used as a place for 
                sectarian religious instruction or worship;
                  [(D) will contribute to the general welfare 
                of the community;
                  [(E) will provide employment for eligible 
                individuals;
                  [(F) (i) will result in an increase in 
                employment opportunities over those 
                opportunities which would otherwise be 
                available, (ii) will not result in the 
                displacement of currently employed workers 
                (including partial displacement, such as a 
                reduction in the hours of nonovertime work or 
                wages or employment benefits), and (iii) will 
                not impair existing contracts or result in the 
                substitution of Federal funds for other funds 
                in connection with work that would otherwise be 
                performed;
    [(G) will not employ or continue to employ any eligible 
individual to perform work the same or substantially the same 
as that performed by any other person who is on layoff;
                  [(H) will utilize methods of recruitment and 
                selection (including listing of job vacancies 
                with the employment agency operated by any 
                State or political subdivision thereof) which 
                will assure that the maximum number of eligible 
                individuals will have an opportunity to 
                participate in the project;
                  [(I) will include such training as may be 
                necessary to make the most effective use of the 
                skills and talents of those individuals who are 
                participating, and will provide for the payment 
                of the reasonable expenses of individuals being 
                trained, including a reasonable subsistence 
                allowance;
                  [(J) will assure that safe and healthy 
                conditions of work will be provided, and will 
                assure that individuals employed in community 
                service jobs assisted under this title shall be 
                paid wages which shall not be lower than 
                whichever is the highest of (i) the minimum 
                wage which would be applicable to the employee 
                under the Fair Labor Standards Act of 1938, if 
                section 6(a)(1) of such Act applied to the 
                participant and if the participant were not 
                exempt under section 13 thereof, (ii) the State 
                or local minimum wage for the most nearly 
                comparable covered employment, or (iii) the 
                prevailing rates of pay for individuals 
                employed in similar public occupations by the 
                same employer,
                  [(K) will be established or administered with 
                the advice of persons competent in the field of 
                service in which employment is being provided, 
                and of persons who are knowledgeable with 
                regard to the needs of older persons;
                  [(L) will authorize pay for necessary 
                transportation costs of eligible individuals 
                which may be incurred in employment in any 
                project funded under this title, in accordance 
                with regulations promulgated by the Secretary;
                  [(M) will assure, that to the extent 
                feasible, such project will serve the needs of 
                minority, limited English-speaking, and Indian 
                eligible individuals, and eligible individuals 
                who have greatest economic need, at least in 
                proportion to their numbers in the State and 
                take into consideration their rates of poverty 
                and unemployment;
                  [(N) (i) will prepare an assessment of--
                          [(I) the participants' skills and 
                        talents;
                          [(II) their need for supportive 
                        services; and
                          [(III) their physical capabilities;
                except to the extent such project has, for the 
                particular participant involved, an assessment 
                of such skills and talents, such need, or such 
                capabilities prepared recently pursuant to 
                another employment or training program (such as 
                a program under the Job Training Partnership 
                Act (29 U.S.C. 1501 et seq.) or the Carl D. 
                Perkins Vocational and Applied Technology 
                Education Act (20 U.S.C. 2301 et seq.));
                  [(ii) will provide to eligible individuals 
                training and employment counseling based on 
                strategies that identify appropriate employment 
                objectives and the need for supportive 
                services, developed as a result of the 
                assessment provided for in clause (i); and
                  [(iii) will provide counseling to 
                participants on their progress in meeting such 
                objectives and satisfying their need for 
                supportive services;
                  [(O) will authorize funds to be used, to the 
                extent feasible, to include individuals 
                participating in such project under any State 
                unemployment insurance plan; and
                  [(P) will post in such project workplace a 
                notice, and will make available to each person 
                associated with such project a written 
                explanation, clarifying the law with respect to 
                allowable and unallowable political activities 
                under chapter 15 of title 5, United States 
                Code, applicable to the project and to each 
                category of individuals associated with such 
                project and containing the address and 
                telephone number of the Inspector General of 
                the Department of Labor, to whom questions 
                regarding the application of such chapter may 
                be addressed.
          [(2) The Secretary is authorized to establish, issue, 
        and amend such regulations as may be necessary to 
        effectively carry out the provisions of this title.
          [(3) The Secretary shall develop alternatives for 
        innovative work modes and provide technical assistance 
        in creating job opportunities through work sharing and 
        other experimental methods to prime sponsors, labor 
        organizations, groups representing business and 
        industry and workers as well as to individual 
        employers, where appropriate.
          [(4) The Secretary may enter into an agreement with 
        the Administrator of the Environmental Protection 
        Agency to establish a Senior Environmental Employment 
        Corps.
    [(c) Costs; non-Federal share.
          [(1) The Secretary is authorized to pay not to exceed 
        90 percent of the cost of any project which is the 
        subject of an agreement entered into under subsection 
        (b), except that the Secretary is authorized to pay all 
        of the costs of any such project which is (A) an 
        emergency or disaster project, or (B) a project located 
        in an economically depressed area, as determined by the 
        Secretary in consultation with the Secretary of 
        Commerce and the Secretary of Health and Human 
        Services.
          [(2) The non-Federal share shall be in cash or in 
        kind. In determining the amount of the non-Federal 
        share, the Secretary is authorized to attribute fair 
        market value to services and facilities contributed 
        from non-Federal sources.
          [(3) Of the amount for any project to be paid by the 
        Secretary under this subsection, not more than 13.5 
        percent for fiscal year 1987 and each fiscal year 
        thereafter shall be available for paying the costs of 
        administration for such project, except that--
                  [(A) whenever the Secretary determines that 
                it is necessary to carry out the project 
                assisted under this title, based on information 
                submitted by the public or private nonprofit 
                agency or organization with which the Secretary 
                has an agreement under subsection (b), the 
                Secretary may increase the amount available for 
                paying the cost of administration to an amount 
                not more than 15 percent of the cost of such 
                project; and
                  [(B) whenever the public or private nonprofit 
                agency or organization with which the Secretary 
                has an agreement under subsection (b) 
                demonstrates to the Secretary that--
                          [(i) major administrative cost 
                        increases are being incurred in 
                        necessary program components, including 
                        liability insurance, payments for 
                        workers' compensation, costs associated 
                        with achieving unsubsidized placement 
                        goals, and other operation requirements 
                        imposed by the Secretary;
                          [(ii) the number of employment 
                        positions in the project or the number 
                        of minority eligible individuals 
                        participating in the project will 
                        decline if the amount available for 
                        paying the cost of administration is 
                        not increased; or
                          [(iii) the size of the project is so 
                        small that the amount of administrative 
                        expenses incurred to carry out the 
                        project necessarily exceed 13.5 percent 
                        of the amount for such project; the 
                        Secretary shall increase the amount 
                        available for the fiscal year for 
                        paying the cost of administration to an 
                        amount not more than 15 percent of the 
                        cost of such project.
    [(d) Project and program distribution review; notice and 
opportunity for hearing.
          [(1) Whenever a national organization or other 
        program sponsor conducts a project within a planning 
        and service area in a State such organization or 
        program sponsor shall conduct such project in 
        consultation with the area agency on aging of the 
        planning and service area and shall submit to the State 
        agency and the area agency on aging a description of 
        such project to be conducted in the State, including 
        the location of the project, 30 days prior to 
        undertaking the project, for review and comment 
        according to guidelines the Secretary shall issue to 
        assure efficient and effective coordination of programs 
        under this title.
          [(2) The Secretary shall review on his own initiative 
        or at the request of any public or private nonprofit 
        agency or organization, or an agency of the State 
        government, the distribution of programs under this 
        title within the State including the distribution 
        between urban and rural areas within the State. For 
        each proposed reallocation of programs within a State, 
        the Secretary shall give notice and opportunity for a 
        hearing on the record by all interested individuals and 
        make a written determination of his findings and 
        decision.
    [(e) Experimental projects; agreements; evaluation; reports 
to President and Congress; ``eligible individual''.
          [(1) The Secretary, in addition to any other 
        authority contained in this title, shall conduct 
        experimental projects designed to assure second career 
        training and the placement of eligible individuals in 
        employment opportunities with private business 
        concerns. The Secretary shall enter into such 
        agreements with States, public agencies, nonprofit 
        private organizations and private business concerns as 
        may be necessary to conduct the experimental projects 
        authorized by this subsection. The Secretary, from 
        amounts reserved under section 506(a)(2)(A) in any 
        fiscal year, may pay all of the costs of any agreements 
        entered into under the provisions of this subsection. 
        The Secretary shall, to the extent feasible, assure 
        equitable geographic distribution of projects 
        authorized by this subsection.
          [(2) The Secretary shall issue, and amend from time 
        to time, criteria designed to assure that agreements 
        entered into under paragraph (1) of this subsection--
                  [(A) will involve different kinds of work 
                modes, such as flex-time, job sharing, and 
                other arrangements relating to reduced physical 
                exertion;
                  [(B) will emphasize projects involving second 
                careers and job placement and give 
                consideration to placement in growth industries 
                and in jobs reflecting new technological 
                skills; and
                  [(C) require the coordination of projects 
                carried out under such agreements, with the 
                programs carried out under section 124 of the 
                Job Training Partnership Act (29 U.S.C. 1534).
          [(3)(A) The Secretary shall carry out an evaluation 
        of the second career training and job placement 
        projects authorized by this subsection.
          [(B) The evaluation shall include but not be limited 
        to the projects described in paragraph (2).
          [(C) The Secretary shall prepare and submit, not 
        later than one year after the enactment of the Older 
        Americans Act Amendments of 1981 (enacted Dec. 29, 
        1981), to the Congress an interim report describing the 
        agreements entered into under paragraph (1) and the 
        design for the evaluation required by this paragraph. 
        The Secretary shall prepare and submit to the President 
        and the Congress a final report on the evaluation 
        required by this paragraph not later than February 1, 
        1984, together with his findings and such 
        recommendations, including recommendations for 
        additional legislation, as the Secretary deems 
        appropriate.
          [(D) The Secretary shall make the final report 
        submitted under subparagraph (C) available to 
        interested private business concerns.
          [(4) For the purpose of this subsection, ``eligible 
        individual'' means any individual who is 55 years of 
        age or older and who has an income equal to or less 
        than the intermediate level retired couples budget as 
        determined annually by the Bureau of Labor Statistics.]
          * * * * * * *
                                APPENDIX

                            National Governors Association,
                                                      June 9, 1995.
Hon. Nancy Landon Kassebaum,
Chair, Labor and Human Resources Committee,
U.S. Senate, Washington, DC.
    Dear Senator Kassebaum: Thank you for the opportunity to 
review the draft of your Workforce Development Act of 1995. 
While we have some suggestions for improving it, we are 
encouraged by the direction of the bill and support your 
efforts to provide a strong foundation on which a coherent 
workforce development system can be created to replace the 
fragmented programs we have today.
    As you know, Governors have sought in recent years to 
create unified workforce development systems through such 
mechanisms as Human Resource Investment Councils, unified 
performance management systems, and ``one-stop'' or ``no wrong 
door'' service delivery. Federal laws and regulations, however, 
have frequently stood in the way of these efforts by 
fragmenting authority for workforce programs and creating 
conflicting program goals, eligibility, and reporting 
requirements.
    We believe that the Workforce Development Act as currently 
drafted would give an enormous boost to state efforts in this 
area by dramatically streamlining federal workforce development 
aid. Governors especially support the bill's emphasis on 
accountability for outcomes, rather than process; private 
sector involvement; and state flexibility to design the state 
system and set goals for it. We also commend you for including 
in your proposal vocational and adult education funds. The 
School-to-Work Act has enabled states to start integrating this 
program more closely with the rest of the workforce development 
system and your bill would allow us to take these efforts one 
step further.
    While we are pleased with many aspects of the draft bill, 
we do have two key recommendations that we believe should be 
included to permit states to successfully implement this 
program.
    Provide adequate funding that can be spent flexibly. The 
Governors believe that consolidation of the federal employment 
and training programs should be an opportunity to provide 
states with needed flexibility and not as a primary means to 
reduce the federal deficit. We urge you to recognize that 
current programs serve only a small fraction of their target 
populations. While an integrated system will result in more 
efficient delivery of services, those administrative savings 
should not be overstated. The task of integration itself, as 
you know, entails significant up-front costs to retrain and 
relocate staff and retool computer systems. With these concerns 
in mind, we also urge you to consider designating a portion of 
national reserve funds for transitional assistance for states 
that have not yet implemented statewide school-to-work and one-
stop systems.
    In the context of reduced funding, it is imperative that 
states have the flexibility to design and deliver services and 
to determine how best to allocate funds. Your draft bill 
generally gives states this flexibility.
    The bill would also give states the flexibility to use 
vouchers to deliver services and permits states to design one-
stop systems. We particularly appreciate the latitude your bill 
gives to states to determine substate funding allocations and 
funding for specific populations. We believe that this 
flexibility is critical to creating successful systems and hope 
that you will resist efforts to make the bill more prescriptive 
as it moves forward.
    Finally, with respect to the inclusion of FUTA funds in 
your proposal, we support the continued dedication of these 
funds to labor exchange and labor market information 
activities. We also suggest that the bill explicitly link these 
FUTA-funded activities to the unemployment insurance systems. 
We also agree with your decision to leave the existing 
vocational rehabilitation system intact at the federal level 
while enacting needed reforms to it.
    Create a single state system through a single, integrated 
plan. Governors believe that the best way to achieve an 
integrated system is through a single, integrated state plan 
for workforce development and a single funding stream. We are 
strongly opposed to the 25 percent set-aside in the bill and 
look forward to working with you to address this issue. This 
plan should be written by a state workforce development 
partnership that includes the private sector, key state 
agencies, and local representation, as your bill proposes for 
the ``flex account'' funds. The plan should be submitted by the 
Governor. Your bill recognizes the importance of a single 
entity having oversight responsibilities at the federal level; 
we believe this is equally important at the state level.
    We thank you for the opportunity to review the bill and 
look forward to working with you to preserve its essential 
components of state flexibility and clear accountability. We 
appreciate your many years of leadership on this issue and look 
forward to working with you on the legislation.
            Sincerely,
                                   Governor Howard Dean, M.D.,
                                           Chair.
                                   Governor Tommy G. Thompson,
                                           Vice Chair.
                                   Governor Mel Carnahan,
                                           Chair, Human Resources 
                                               Committee.
                                   Governor Arne H. Carlson,
                                           Vice Chair, Human Resources 
                                               Committee.