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                                                       Calendar No. 214
105th Congress                                                   Report
                                 SENATE

 1st Session                                                    105-109
_______________________________________________________________________


 
              WORKFORCE INVESTMENT PARTNERSHIP ACT OF 1997

                                _______
                                

                October 15, 1997.--Ordered to be printed

  Filed under authority of the order of the Senate of October 9, 1997

_______________________________________________________________________


    Mr. Jeffords, from the Committee on Labor and Human Resources, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 1186]

    The Committee on Labor and Human Resources, to which was 
referred the bill (S. 1186) to provide for education and 
training, and for other purposes, having considered the same, 
reports favorably thereon with amendments and recommends that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. Background and need for the legislation..........................1
 II. History of the legislation and votes in committee................3
III. Committee views..................................................8
 IV. Cost estimate...................................................31
  V. Regulatory impact statement.....................................31
 VI. Application of the law to the legislative branch................31
VII. Section-by-section analysis.....................................31
VIII.Additional views................................................85

 IX. Changes in existing law.........................................95

               I. Background and Need for the Legislation

    Since the late 1960's, the Federal Government has invested 
considerable resources in helping people find meaningful 
employment through participation in numerous Federal job 
training, vocational education, adult education, and related 
programs. What began as a few limited programs, has exploded 
today into 163 separate programs, scattered across 15 different 
Federal agencies, and costing more than $20 billion a year.
    Our Nation's current job training system is no system at 
all. It is a complex patchwork of numerous rules, regulations, 
requirements, and overlapping bureaucratic responsibilities. 
Consumers, individuals seeking assistance and businesses 
seeking to hire them, face a fragmented and duplicative maze of 
narrowly focused programs that lack coordination, a coherent 
strategy to provide training assistance, and the confidence of 
the consumers who need to utilize the services.
    In addition, current employment training programs have not, 
in many instances, kept pace. We need to design a new workforce 
investment system which can respond quickly and effectively to 
changing workplace demands.
    Accountability is greatly lacking in the current system. 
Two years ago, the General Accounting Office released a report 
(GAO/T-HEHS-95-53) 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.
    Frustration and confusion is widespread throughout the 
system--by program administrators and employers, and most 
important, by those seeking assistance. This is frustration at 
the breaking point:
          Frustration to the point that business community 
        participation and leadership is waning because the 
        current programs fail to meet their employment needs;
          Frustration to the point that States, localities, and 
        community activists are becoming disenchanted because 
        of confusing and duplicative program requirements;
          Frustration to the point that those individuals 
        seeking services have a difficulty knowing where to 
        begin to look for training assistance because there are 
        no clear points of entry and no clear paths from one 
        program to another; and
          Frustration to the point that the Federal Government 
        has begun to question its commitment to training, 
        vocational education, adult education, and related 
        programs because of general program ineffectiveness.
    This is the status quo. This is unacceptable. This is why 
reform is needed now.
    Reform is needed because the economic future of our country 
depends on a well-trained workforce. Employers at every level 
have found it increasingly difficult to find and attract 
qualified employees for high-skilled, high-paying jobs as well 
as qualified entry level employees. This growing shortage of 
qualified workers must be addressed if our Nation is to remain 
economically competitive.
    Reform also is needed if the welfare reform bill passed by 
the 104th Congress is going to have any chance of succeeding. 
States must be empowered with the tools necessary to develop a 
comprehensive system to assist people make work, not welfare, 
their way of life.
    As a nation, we can no longer afford the ``Washington knows 
best'' mentality that created the current maze of job training 
and training-related education programs. With a few notable 
exceptions, the evidence on the one-size-fits-all approach 
reveals far more failures than successes. However, because of 
the Congress'' inability to enact reform, States and localities 
have begun the task of creating their own comprehensive systems 
which meet the unique needs of their communities. But, they 
have been frustrated by Federal laws and regulations which 
prevent them from developing more responsive and effective 
workforce investment systems.
    The Workforce Investment Partnership of 1997 offers States, 
localities, the business community, and those individuals 
seeking job training, adult education, and vocational education 
assistance a new beginning, a foundation, a positive framework 
for success. Instead of rules that tie the hands of States and 
localities, this bill provides the tools to develop 
comprehensive workforce investment systems that address the 
needs of job seekers and employers while retaining federal 
priorities. This bill is a road map to a better system, a 
system leading to a stronger economy, a better-trained and 
educated work force, and successful welfare reform.

         II. History of the Legislation and Votes in Committee

                        full committee hearings

    On April 24, 1997, the Committee on Labor and Human 
Resources held an overview hearing on vocational education. The 
hearing focused on the need for quality vocational education 
programs that relate to current and projected labor market 
trends. This was highlighted by the testimony of Mr. Harris 
Miller, president of the Information Technology Association of 
America. Mr. Miller announced that there are currently 190,000 
jobs in the technology field that are unfilled because of the 
lack of a skilled labor supply and that quality vocational 
technological education programs must be enhanced to address 
the labor shortage. The other witnesses who testified before 
the committee were: Patricia McNeil, Assistant Secretary for 
Vocational and Adult Education; David Stern, director for the 
National Center for Research in Vocational Education; Paul 
Cole, vice president for the American Federation of Teachers; 
Rick Theders, president of Clark Theders Insurance Agency; Dan 
Hull, president of the Center for Occupational Research and 
Development; and Larry Rosenstock, director for the Urban High 
School Project.
    On May 16, 1997, the Committee on Labor and Human Resources 
conducted a hearing that examined adult education. Mr. Joel 
Mudge and Ms. Kathy Garrow from East Montpelier, VT presented 
testimony regarding their perspectives as students completing 
their adult education courses. Both discussed that their 
attainment of literacy skills was an asset in terms of seeking 
employment and also in reading with their children. The other 
witnesses who testified before the committee were: Patricia 
McNeil, Assistant Secretary for Vocational and Adult Education; 
Mary Paul Hankinson, executive director for Vermont Adult 
Learning; Stephen Steurer, executive director for the 
Correctional Education Association; John Ryan, Offender Aid and 
Restoration; and Richard Dennis, Adult Basic Education and GED 
tutor.
    On May 19, 1997, the Committee on Labor and Human Resources 
held a hearing at Vermont Technical College in Randolph, VT. 
The hearing examined innovative strategies pertaining to 
vocational education, adult education, and job training. Each 
witness commented on the importance of coordination among 
vocational education, adult education, and job training. All 
stated that coordination must take place at the federal, state, 
and local levels. Ms. Susan Auld, commissioner of the Vermont 
Department of Employment and Training summed up the theme of 
the hearing by stating: ``* * * integration is a set of 
programs and services for individuals and employers that are 
comprehensive and seamless, so Vermonters know where to turn 
for education and training, how today's programs relate to 
tomorrow's jobs and where there is minimal duplication of 
services.'' The other witnesses who testified were: Charles 
Bunting, chancellor for Vermont State Colleges; Jane Kitchel, 
commissioner of the Vermont Department of Social Welfare; 
William Shouldice, secretary for the Agency of Commerce and 
Community Development; Marcia Baker, director for the 
Burlington Technical Center; Kathy Finck, director of the 
Career and Lifelong Learning Department (Vermont Department of 
Education); Joyce Judy, dean of Student Services for the 
Community College of Vermont; William Laramee, dean of 
Institutional Advancement for Lyndon State College; Mary Leahy, 
executive team for Central Vermont Adult Basic Education; 
William Cormany, senior policy advisor for the Vermont 
Department of Employment and Training; Steven Gold, director 
for Welfare to Work Programs (Vermont Department of Social 
Welfare); Joseph Paskevich, owner of Mahoney Hardware; Charles 
Boudreau, president and chief executive officer of the Vermont 
Science and Education Center; Gerald Brown, chair of the Board 
of Directors for Vermont Heating and Ventilating; Robert 
Clarke, president of Vermont Technical College; David Coates, 
co-chair of the Champlain Initiative; Theresa Baker, Northlands 
Job Corps student; Ken Foote, Essex Technical Center 
apprentice; and Candice Crowley, (former) Adult Basic Education 
student.

            SUBCOMMITTEE ON EMPLOYMENT AND TRAINING HEARINGS

    On March 11, 1997, Senator DeWine, chairman of the Senate 
Labor and Human Resources Committee's subcommittee on 
Employment and Training, commenced an examination of the 
Federal job training system by holding the first of four 
hearings on the issue of the system's effectiveness and methods 
of improvement. The first hearing was an oversight hearing of 
Federal job training programs focusing broadly on the Federal 
system's overall status, successes and failures, and general 
suggestions for reform.
    The Subcommittee heard from several witnesses including 
Raymond J. Uhalde, the Acting Assistant Secretary of Labor, 
Employment and Training Administration. The Assistant Secretary 
described President Clinton's position including the 
President's goal to ``consolidate and streamline the Federal 
training programs for adults, organize them within the one-stop 
career center delivery system, and ensure that the private 
sector is a full partner.'' The Assistant Secretary also added 
his own perspective by stating that ``[t]o survive in this 
competitive marketplace, programs will have to offer training 
that truly helps individuals sharpen their skills.''
    Other witnesses included: Roberts T. Jones, president and 
chief executive officer of the National Alliance of Business; 
Arnold R. Tompkins, director of the Ohio Department of Human 
Services; Gary Walker, president of Private/Public Ventures; 
and William J. Spring of the Massachusetts Jobs Council. Each 
witness testified about the general status of the Federal job 
training system and the need for tremendous improvement.
    Perhaps the most descriptive suggestion for change came 
from Gary Walker, who outlined seven ``Principles of Effective 
Action'' in the area of youth job training. The Principles are: 
(1) Each [youth] needs to feel that at least one adult has a 
strong stake and interest in his or her labor market success; 
(2) each [youth] must sense: (a) That the initiative or program 
has strong and effective connections to employers, (b) that 
placing the [youth] into a paid position with one of those 
employers as soon as possible is of the highest priority, and 
(c) that the initial job placement is one step in a continuing 
and long term relationship with the program or initiative to 
advance the [youth's] employment and income potential; (3) each 
[youth] must feel at each step of the way the need for and 
opportunity to improve his or her educational skills and 
certification; (4) each [youth] must feel that the program or 
initiative will provide support and assistance over a period of 
time--perhaps up to several years--that may include several 
jobs and several attempts at education; (5) effective 
connections between the program or initiative and external 
providers of basic supports such as housing, counseling, 
medical assistance, food, and clothing; (6) and ``atmosphere'' 
in the program buttressed by specific activities, that 
emphasizes civic involvement and service--in short, an 
extension of practical caring beyond self, family, and friends; 
and (7) motivational techniques such as incentives for good 
performance, peer group activities and leadership 
opportunities.
    On April 15, 1997, the subcommittee held its second 
hearing, titled, Innovations in Adult Job Training, the hearing 
focused on effective solutions to some of the problems the 
Federal adult job training system faces.
    The subcommittee heard from two panels. The first 
represented individuals from the public sector including Daniel 
Berry, vice president for Workforce Preparation for the 
Cleveland Growth Association; Peter McLaughlin, chairman of the 
National Association of Counties Steering Committee on 
Employment; Donald W. Ingwerson, the superintendent of the Los 
Angeles County Office of Education; and Jackie Bessler-Perasso, 
director, JTPA Administration, State of Oregon Office of 
Community College Services.
    The second panel represented the private sector and 
included Kristin Watkins, deputy director of Wider 
Opportunities for Women; Ronald Foster, corporate vice 
president of United Parcel Service; Kenneth Tully, senior 
project manager for the Community and Training Program for 
Marriott International Inc.; and Pamela Brown and Marlene Gray, 
program participants with United Parcel Service and Marriott 
International, Inc. respectively.
    Informative testimony from the public sector was Dr. 
Ingwerson's explanation of how he helped the Los Angeles County 
Office of Education consolidate and streamline all of Los 
Angeles County's education and training programs under one 
umbrella program unit. Helpful testimony from the private 
sector, included Ronald Foster's explanation of United Parcel 
Service's efforts to obviate jurisdictional boundaries and link 
resources from New Jersey and Pennsylvania to create job 
opportunities in UPS's Philadelphia hub for hundreds of 
individuals in Camden, NJ's poorer sections.
    Two days later, on April 17, 1997, the subcommittee held a 
similar hearing titled Innovations in Youth Job Training. This 
hearing, like the previous, focused on successful solutions 
that face the Federal job training program. Unlike the previous 
hearing, however, the issues surrounded youth training.
    In addition to two full witness panels, the subcommittee 
also heard testimony from Mary Silva, the national director, 
Office of Job Corps, U.S. Department of Labor. Ms. Silva 
testified about Job Corps' progress and later answered 
questions from Senator DeWine about the current recruiting and 
placement practices and how they might be improved.
    The two remaining panels consisted first of Richard Halpin, 
chief executive officer and founder of the American Institute 
for Learning; Monroe Marshall, a student at the American 
Institute for Learning; Ralph Dibattista, former director of 
the Hubert H. Humphrey Job Corp Center; Susan Lees, a current 
Job Corps enrollee; and Carmen Placido, a regional director for 
the Center for Employment Training; and second of Lorenzo 
Harrison, deputy executive director for STRIVE; Ashanta 
Blackmon, a student with STRIVE; Jerome Ryan, director of EDCO 
Youth Collaborative; Allyson Peerman, manager of community 
affairs for Advanced Micro Devices; and Amber Curtis, a student 
in Advanced Micro Devices student training program.
    Monroe Marshall, a student with the American Institute for 
Learning provided inspirational testimony about his life and 
how the methods used by the American Institute for Learning 
provided him with a positive outlook and prospects in 
employment and life. Many of the methods Mr. Marshall described 
paralleled the seven principles outlined by Gary Walker in the 
subcommittee's first hearing.
    The subcommittee's fourth and final hearing was a field 
hearing conducted by Senator DeWine at the Cuyahoga Community 
College Unified Technology Center in Cleveland, OH, titled, 
Local Workforce Initiatives, the purpose of this hearing was to 
address specific problems in Ohio and how some of those 
problems may be addressed on the local level.
    The two witness panels included Sandy Auburn, director of 
Workforce Development for the Akron Regional Development Board; 
Daniel Berry, vice president of Workforce Preparation for the 
Cleveland Growth Association; Terry Goode, president of the 
Lorain County Workforce Institute; Art Iacofano, director of 
the Lake County Employment and Training Administration; Jerry 
Sue Thorton, president, Cuyahoga Community College; Sheila 
Manley, executive director of the Cuyahoga County Workforce 
Development Compact; David Roth, executive director of 
Cleveland Works; and Fred Schoenig, Cleveland State University, 
representing CAMP, Inc.
    The witnesses each discussed the importance of flexibility 
in the Federal job training system and the necessity of 
localities being able to evaluate and fulfill the needs of 
their own communities.

      THE INTRODUCTION OF THE WORKFORCE INVESTMENT PARTNERSHIP ACT

    On September 17, 1997, Senators DeWine, Jeffords, Kennedy, 
and Wellstone introduced S. 1186, the Workforce Investment 
Partnership Act. The bill is intended to streamline the current 
Federal job training system, making it more ``user-friendly'' 
and consolidate the numerous Federal job training programs, 
eliminating confusing and redundant mandates and creating 
integrated statewide work force development systems.

                           EXECUTIVE SESSION

    On September 24, 1997, the Committee on Labor and Human 
Resources met in executive session to consider S. 1186. 
Following opening statements in which all members of the 
committee enthusiastically agreed to the necessity of S. 1186, 
three amendments were offered.
    The first was offered by Senator Kennedy. The amendment 
proposed striking ``1999'' on page 396, line 18 and inserting 
``1997.'' The purpose of this amendment was to limit the option 
created under the transition rules to only those State statutes 
which reformed State work force investment systems enacted 
prior to July 1, 1997. The amendment was agreed to by a 
unanimous voice vote.
    The second amendment was offered by Senator Enzi. It 
proposed certain changes to sections 303, 308, and 409 for the 
purpose of improving the labor market information provisions. 
The amendment was agreed to by a unanimous voice vote.
    The third amendment was offered by Senator Warner. The 
purpose of the amendment was to create a new Subtitle C--
Twenty-first Century Workforce Commission. This new subtitle 
would provide for a ``Twenty-first Century Workforce 
Commission'' whose membership shall include Presidentially and 
Congressionally appointed governmental representatives, 
educators, and business representatives. The purpose of the 
Commission will be to ``conduct a thorough study of all matters 
relating to the information technology work force in the United 
States.'' These matters must include ``the skills necessary to 
enter the information technology work force; ways to expand the 
number of skilled information technology workers; and the 
relative efficacy of programs in the United States and foreign 
countries to train information technology workers, with special 
emphasis on programs that provide for secondary education or 
post secondary education in a program other than a 4-year 
baccalaureate program.'' The amendment was unanimously agreed 
to by a voice vote.
    In addition to these amendments, Senator Harkin offered two 
amendments. The first amendment related to the Youth 
Opportunity Grant Program and would have made it clear that 
grants would be available to impoverished communities of all 
types including rural areas and smaller cities. The second 
amendment related to the Education Technology Challenge Grant 
Program and would have provided a state match. The Chairman 
agreed to work with Senator Harkin on these two issues before 
the legislation is considered by the full Senate and with that 
understanding, the amendments were withdrawn.
    After the amendments were considered, S. 1186, the 
Workforce Investment Partnership Act was unanimously agreed to 
by a voice vote.

                          III. Committee Views

    The Workforce Investment Partnership Act of 1997 includes 
titles for adult education, vocational education, and training 
for adults, youth, and dislocated workers. Additionally, the 
legislation provides strong linkages to and coordination with 
welfare to work activities, the Wagner Peyser Act, the Older 
Americans Act, the Rehabilitation Act, the Bureau of 
Apprenticeship and Training, Trade Adjustment Assistance, 
veterans programs, and other related programs. Separate funding 
streams and administration are maintained, in recognition that 
each activity serves a distinct function. The committee 
believes the legislation empowers States with the tools and 
flexibility necessary to coordinate the policies and activities 
of the above programs in order to address their unique 
educational and employment needs.
    While the legislation eliminates set-asides in order to 
increase State and local flexibility, it is our intent that 
States and localities continue to provide at least the same 
level of commitment to achieving gender equity.
    This legislation represents the committee's bipartisan 
belief that our Nation needs and deserves a more effective, 
more efficient training and training-related education system. 
By removing the barriers that have stymied reform in the past, 
the Workforce Investment Partnership Act will provide States 
and localities with the framework to boldly move forward, 
transforming the current patchwork of programs into a 
comprehensive and accountable system.

      Title I--Vocational, Technological, and Tech-Prep Education

                    vocational education activities

    The increasing demands for assistance in preparing 
individuals for entry into the work force and the necessity for 
continuing learning throughout one's working career are 
formidable challenges. The legislation provides for the 
continuation of vocational education activities that have been 
instrumental in providing individuals with the opportunity to 
improve their skills. These include: integrating vocational and 
academic studies; establishing linkages between secondary and 
postsecondary education; providing comprehensive professional 
development, improving and expanding the use of technology in 
education; promoting gender equity in secondary and 
postsecondary vocational education; and serving individuals in 
State institutions such as State correctional institutions and 
institutions that serve individuals with disabilities. The 
committee intends that in addition to the required activities 
listed, States will also use these funds to address a State's 
particular work force education needs.
    States are also required to develop program strategies for 
populations that include, at a minimum: low-income individuals, 
including foster children; individuals with disabilities; 
single parents and displaced homemakers; and individuals with 
multiple barriers to educational enhancement. While the 
legislation eliminates set-asides in order to increase State 
and local flexibility, it is our intent that States and 
localities continue to provide a commitment to gender equity 
programs.
    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 for vocational 
education in the preceding fiscal year.

                 voluntary selection and participation

    No funds expended under title I shall be used to require 
any secondary school student to choose or pursue a specific 
career path or major nor to mandate participation in vocational 
education programs. It is not the committee's intent, however, 
to prohibit the use of funds for programs that require students 
themselves to select career paths or majors.

               vocational education: in-state allocation

    Out of the total amount of funds to be used by a State for 
vocational education activities, 14 percent shall be reserved 
by the State to carry out State-level activities, not more than 
10 percent or $300,000 (whichever is greater) shall be used for 
administrative activities ($60,000 from the amount reserved for 
administrative activities shall be used to carry out gender 
equity activities), and 1 percent of the funds or the amount 
the State expended in fiscal year 1997 for vocational education 
for criminal offenders (whichever is greater) shall be used to 
carry out programs for criminal offenders.
    A local educational agency or an eligible institution shall 
submit applications to the eligible agency. Local applications 
shall include descriptions of the activities to be carried out 
and how those activities will meet the expected levels of 
performance.
    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 
student 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.

        performance measures and expected levels of performance

    After consultation with eligible agencies, eligible 
institutions, and other interested parties, the Secretary of 
Education establishes and publishes performance measures based 
on: student mastery of academic skills; student mastery of job 
readiness skills; student mastery of vocational skill 
proficiencies for students participating in vocational 
education programs; receipt of a postsecondary degree or 
certificate; placement in, retention in, and completion of, 
secondary school education and postsecondary education; 
placement and retention in employment and military service; and 
participation in vocational education programs relating to 
nontraditional employment.
    In addition to the performance measures, each eligible 
agency will negotiate with the Secretary of Education to 
develop expected levels of performance for each performance 
measure that is established by the Secretary. The expected 
levels of performance will be included in each State plan. The 
committee believes these accountability requirements must 
accompany the increased flexibility the Act gives States over 
the design and implementation of their vocational education 
system.

                            incentive grants

    The Secretary of Education may award grants to those States 
that exceed the performance measures established under the 
Workforce Investment Partnership Act. In awarding the incentive 
grants, and only after it has been demonstrated that a State 
has exceeded its performance measures, a priority shall be 
given to those submitting a unified plan that has beenapproved 
by both the Secretary of Education and the Secretary of Labor. States 
awarded incentive grants shall use the grants to fund innovative 
programs consistent with the purposes of this Act as determined by the 
State.

      assistance for outlying areas, indians, and hawaiian natives

    The Workforce Investment Partnership Act authorizes funding 
for vocational education programs for Indians, Hawaiian 
Natives, and the outlying areas which include Guam, United 
States Virgin Islands, American Samoa, Commonwealth of the 
Northern Mariana Islands, the Republic of the Marshall Islands, 
the Federated States of Micronesia, and the Republic of Palau. 
In addition, the bill also continues the authorization for 
tribally controlled postsecondary vocational institutions.

                          tech-prep education

    The bill includes an authorization for Tech-Prep Education. 
This program provides implementation grants for the development 
and operation of tech-prep education programs leading to a 2-
year associate degree or a 2-year certificate.

          national assessment of vocational education programs

    This legislation continues the authority for the Department 
of Education to conduct an independent assessment of vocational 
education programs. The Secretary shall appoint an independent 
advisory panel to advise it on the implementation of the 
assessment. The Secretary of Education is authorized to carry 
out research, development, dissemination, capacity building and 
technical assistance activities that promote improvements in 
vocational education programs, services, and activities.

  national center for research in education and work force development

    This legislation enables the Secretary of Education to 
establish one or more national centers in the areas of applied 
research and development and dissemination and training. The 
Secretary shall consult with the States prior to establishing 
such center or centers.

                 Title II--Adult Education and Literacy

                       adult education activities

    Studies indicate that more than one-fifth of American 
adults possess very low literacy skills. The current adult 
education delivery system is a patchwork system which does not 
always efficiently address the needs of the individuals seeking 
adult education and literacy services. The legislation is 
designed to create a partnership among the Federal Government, 
States, and localities to enhance the accessibility and quality 
of adult education and literacy programs. The legislation 
provides for adult education activities that include: 
professional development and training; developing and 
disseminating curricula for adult education and literacy 
services; integrating literacy instruction with occupational 
skill training; supporting State or regional networks of State 
literacy resources centers; and evaluating the quality of adult 
education and literacy programs.

              adult education: state distribution of funds

    Out of the total amount of funds to be used by a State for 
adult education activities, 80 percent shall be used to carry 
out local activities, of which not more than 10 percent shall 
be available to carry out corrections education or education 
for other institutionalized individuals; not more than 15 
percent shall be reserved by the State to carry out State-level 
activities, and not more than 5 percent or $80,000 (whichever 
is greater) shall be reserved for administrative expenses of 
the eligible agency.
    Each eligible provider (the local application) seeking 
assistance under title II is required to submit an application 
to the eligible agency. Eligible providers shall include 
descriptions of the activities carried out and how these 
activities meet the expected levels of performance.
    The legislation requires that funds made available for 
adult education activities will supplement, and not supplant, 
other public funds expended for this purpose.

                   strategies for special populations

    Under the Workforce Investment Partnership Act, each 
eligible agency is required to develop strategies for 
populations that include, at a minimum: low-income students; 
individuals with disabilities; single parents and displaced 
homemakers; and individuals with multiple barriers to 
educational enhancement.

        performance measures and expected levels of performance

    After consultation with eligible agencies, eligible 
providers, and other interested parties, the Secretary is 
required to establish and publish performance measures. The 
measures at a minimum shall include: demonstrated improvements 
in literacy skill levels in reading and writing the English 
language, numeracy, and problem solving; attainment of 
secondary school diplomas or their recognized equivalent; and 
placement in, retention in, or completion of postsecondary 
education, training, or unsubsidized employment. The committee 
believes these accountability requirements must accompany the 
increased flexibility the Act gives States over the design and 
implementation of their vocational educational system.
    In addition to the performance measures, each eligible 
agency will negotiate with the Secretary of Education to 
develop expected levels of performance for each performance 
measure that is established by the Secretary. The expected 
levels of performance will be included in each State plan.

                            Incentive Grants

    The Secretary of Education may award grants to those States 
that exceed the performance measures established under the 
Work-force Investment Partnership Act. In awarding the 
incentive grants, and only after it has been demonstrated that 
a State has exceeded its performance measures, a priority shall 
be given to those states submitting a unified plan that has 
been approved by both the Secretary of Education and the 
Secretary of Labor. States awarded incentive grants shall use 
the grants to fund innovative programs consistent with the 
purposes of this Act as determined by the State.

                     Assistance for Outlying Areas

    The Workforce Investment Partnership Act authorizes funding 
for adult education and literacy programs for the outlying 
areas which include Guam, United States Virgin Islands, 
American Samoa, Commonwealth of the Northern Mariana Islands, 
the Republic of the Marshall Islands, the Federated States of 
Micronesia, and the Republic of Palau.

                    National Institute For Literacy

    This legislation reauthorizes the National Institute for 
Literacy (referred to as the Institute). The purpose of the 
Institute is to coordinate literacy services and policy related 
to literacy issues. The Institute is administered under the 
terms of an interagency agreement entered into by the Secretary 
of Education with the Secretary of Health and Human Services 
and with the Secretary of Labor.

         Title III--Workforce Investment and Related Activities

    The purpose of title III is to enable each State and 
locality to develop a unified training system designed to 
assure that:
          There is coordination between all of the activities 
        at the State and local level in order to promote 
        program efficiency and avoid duplication of services;
          Individuals seeking services have the ability to 
        choose where, how, and what services they will receive;
          The business community is a full partner, outlining 
        the employment opportunities at the state and local 
        level and assisting with the design of training 
        programs; and
          There is clear accountability for Federal dollars.

                          FUNDING AND FORMULA

    The legislation authorizes ``such sums as may be 
necessary'' for each of the fiscal years 1999 through 2003 for 
the activities to be carried out under title III. The 
committee's decision not to authorize specific funding levels 
is not due to a lack of commitment to the programs authorized 
in, linked to, and coordinated with this legislation. Rather, 
it is a recognition that the balanced budget agreement reached 
between the President and the Congress will have significant 
impact on all discretionary spending. The committee encourages 
the U.S. Senate Appropriations Committee to allocate the 
funding necessary to meet the goals of this legislation, at the 
same time, respecting the intent of the balanced budget 
agreement.

Allocations to States

    The allotments to States are based on criteria similar to 
the Job Training Partnership Act:
          Adults: The Secretary reserves 0.25 percent for 
        outlying areas. The remainder is distributed to States 
        by formula, \1/3\ on unemployed individuals in areas of 
        substantial unemployment (greater than 6.5 percent), 
        \1/3\ on the excess number of unemployed individuals 
        (greater than 4.5 percent), and \1/3\ based on the 
        number of disadvantaged adults. The small State minimum 
        is 0.5 percent;
          Dislocated Workers: The Secretary reserves 0.25 
        percent for outlying areas and 20 percent for National 
        Emergency Grants. The remainder is distributed to 
        States by formula, \1/3\ on the number of unemployed 
        individuals, \1/3\ based on excess unemployment, and 
        \1/3\ on long-term (15 weeks or more) unemployment; and
          Youth: The Secretary reserves 0.25 percent for 
        outlying areas and 20 percent for Youth Opportunity 
        Grants. The remainder is distributed by formula, \1/3\ 
        by unemployment, \1/3\ by excess unemployment, and \1/
        3\ by the number of disadvantaged youth. The small 
        State minimum is 0.5 percent. The 20 percent reserve 
        for Youth Opportunity Grants has a trigger, so that the 
        funding to States by formula will not fall below the 
        current $1 billion.

Allocations within States

    The Governor of the State may reserve not more than 15 
percent of each funding stream for statewide activities. Of 
that amount, no more than 5 percent may be reserved for 
administration. It is the committee's intent that the funding 
for statewide activities and administration be ``pooled'' at 
the State level. The statewide activities should benefit 
adults, dislocated workers, and youth. Further, the State shall 
have one administrative entity for the three funding streams.
    In addition, the Governor of the State may reserve not more 
than 25 percent of the dislocated funds to provide rapid 
response activities.
    The formula for in-State allocations is the same formula 
used at the Federal-to-State level. For adults and youth, 
however, the State has the option of developing a formula that 
targets the money more closely to impoverished areas. Such a 
formula would still require 70 percent of the funds being 
allocated by the Federal formula, but 30 percent of the funds 
may be allocated by a formula based on excess poverty or excess 
unemployment above the State average. This formula must be 
included in the State plan which is approved by the Secretary 
of Labor.
    It is the committee's intent that nothing in this 
legislation should be interpreted to preclude the enactment of 
State legislation providing for the implementation for the 
activities authorized under title III, consistent with the 
provisions of this title. Additionally, any funds received by a 
State under title III shall be subject to appropriation by the 
State legislature.
    At the local level, the local partnership may transfer, if 
such a transfer is approved by the Governor of the State, not 
more than 20 percent of the funds allocated to the local area 
for adults or 20 percent of the funds allocated to the local 
area for dislocated workers between adult and dislocated worker 
activities.
    Local administration is limited to 15 percent of the funds 
received from each funding stream. It is the committee's intent 
that the funding for administration be ``pooled'' at the local 
level, with one administrative entity for the three funding 
streams.
    The Workforce Investment Partnership Act provides for the 
chief elected official in a local area to serve as the fiscal 
agent for, and shall be liable for any misuse of, all the funds 
allocated to the local area, unless the chief elected official 
in the local area reaches an agreement with the Governor of the 
State for the Governor to act as the fiscal agent and bear such 
liability.
    The fiscal agent shall disburse such funds for work force 
investment activities at the direction of the local 
partnership, if the direction does not violate a provision of 
this legislation. The fiscal agent shall disburse funds 
immediately upon receiving such direction from the local 
partnership. It is the committee's belief that the disbursal of 
funds should not be delayed by local politics or disagreements 
among local governmental entities.

               ONE-STOP CUSTOMER SERVICE DELIVERY SYSTEMS

    The cornerstone to the Workforce Investment Partnership Act 
is the one-stop customer service system. At the local level, 
the one-stop customer service system will assure coordination 
between the activities authorized in, linked to, and 
coordinated with this legislation as well as allow for a 
central point of entry to various job training programs, 
providing a ``no wrong door'' approach to service delivery.
    The bill requires States to establish at least (1) one-stop 
in each local area where the activities of the local 
participating entities must be accessible to all individuals 
seeking assistance. The participating entities, called one-stop 
partners, must include providers of job training activities, 
employment service activities, unemployment insurance, 
vocational rehabilitation, adult education, title V of the 
Older Americans Act, and veterans activities. One-stops may 
also include other relevant agencies and providers of 
supportive services, such as the public assistance agency, 
housing agency, or child-care providers.
    One-stop partners are designated by the local partnership 
and local chief elected official. Each one-stop partner must 
enter into an operating agreement with the local partnership 
and the one-stop operator which outlines what services will be 
provided through the one-stop customer service system, how the 
costs for such services and the operating costs of the system 
will be funded, the methods of referral of individuals between 
the one-stop customer service operator and the one-stop 
partners, the monitoring and oversight of the activities 
carried out under the agreement, and the duration of the 
agreement.
    Operators of one-stop centers may be public or private 
entities and also selected by the local partnership and chief 
elected official. The one-stops will administer the individual 
training accounts as well as provide the core services which 
must include: determination of eligibility, intake and 
orientation, initial assessment of skill level, case management 
assistance, job search and placement services, employment 
information, performance information about eligible providers 
of training services, information regarding unemployment 
compensation, assistance in establishing eligibility for 
welfare-to-work activities and financial aid assistance for 
training and education programs not authorized under this 
legislation, and follow-up services for up to a year, as well 
as coordinating the services of the one-stop partners.
    One-stop customer service centers may provide additional 
core services, such as customized employment services to 
individuals seeking assistance and employers, supportive 
services for adults and youth, and needs-related payments to 
dislocated workers.

                            CONSUMER CHOICE

    The Workforce Investment Partnership Act of 1997 
fundamentally changes the way that training and training-
related education services are provided to adults seeking 
assistance. Today, private industry councils (PIC's) purchase 
``slots'' or ``seats'' with various local service providers or 
directly provides the training services. Individuals seeking 
assistance are limited to choosing from those specific 
providers even if the training available does not meet their 
specific employment interest. Additionally, the current system 
has been criticized for not meeting the employment needs of the 
local area. Finally, PIC's directly providing training services 
can result in a conflict of interest. For the above reasons, 
the Workforce InvestmentPartnership Act prohibits local 
partnerships, the successors to PIC's, from contracting for or directly 
providing training services. All services for adults must be delivered 
through ``individual training accounts'' which are based on a consumer 
choice model.

Eligible providers

    Under this legislation, programs offering training are 
certified by a State agency designated by the Governor of the 
State. Programs offered at postsecondary educational 
institutions that are eligible for funding under title IV of 
the Higher Education Act and that lead to a degree or 
certificate are automatically certified (initially). Programs 
offered by other private and public training providers, not 
eligible for title IV funding, will be initially certified 
through a process developed by the Governor. After initial 
certification, all providers will have to meet performance 
levels based on completion, placement and retention rates, and 
earnings of their participants.
    Once programs are certified, the responsible State agency 
is to compile a list of programs together with the performance 
data for distribution to the local partnerships and one-stop 
customer service centers. At the local level, local 
partnerships may modify the list of eligible providers by 
reducing the number to ensure a match between the local 
employment opportunities and the providers. Additionally, the 
local partnership may require an eligible provider to meet 
higher performance levels.

Individual training accounts

    Job training and training-related education services for 
adults are delivered through individual training accounts. 
Through the one-stop customer service system, adults seeking 
assistance will receive initial assessments, information about 
employment opportunities and job skills required, and 
information about service providers and programs. Case 
management, such as general guidance or recommendations for 
basic skills training, will be provided to varying degrees, 
based on a case-by-case judgment by the case manager. The adult 
seeking services will have access to lists of individual 
providers, and will be able to see each provider's success 
rates in placing their participants in jobs, the earnings of 
those participants, and other data relevant to the decision. 
The ultimate decision about what field to pursue and which 
provider to select is the participant's.
    Upon selection, the case manager will make a referral and 
arrange for payment through an individual training account.

                          PERFORMANCE MEASURES

    The Workforce Investment Partnership Act shifts 
accountability for Federal dollars from process to results. The 
legislation focuses on whether individuals (adults) were 
prepared for and obtained meaningful, unsubsidized employment. 
The legislation will require an accountability mechanism so 
that taxpayers will know precisely the return on Federal 
dollars. The committee believes that these minimum Federal 
requirements are a reasonable quid pro quo for giving States 
and localities the flexibility to design and implement their 
own systems.
    Each State will establish the core performance measures 
which include a performance indicator and a performance level. 
For example the performance indicator may be the graduation 
rate of the training provider and the performance level would 
be a graduation rate of 80 percent. The State's core 
performance measures must be included in the State plan, with 
the Governor of the State and the Secretary of Labor 
negotiating the level of performance. At the local level, the 
local plan will establish local core performance measures, with 
the Governor of the State and the local partnership negotiating 
the performance level.
    Performance measures for the core services available 
through the one-stop customer service system and adult training 
provided include: placement in unsubsidized employment related 
to the training received; retention in such employment for 6 
and 12 months; the wages received over 6 and 12 months; and the 
percentage of wage replacement (dislocated workers only).
    The core performance measures for youth include: attainment 
of secondary school diplomas or their equivalents; attainment 
of job readiness and employment skills, placement in, retention 
in, and completion of postsecondary education, advanced 
training, or apprenticeship; as well as the performance 
measures outlined above for adults.
    Additionally, the core performance measures must include an 
indicator of performance with respect to customer satisfaction 
of employers and participants.
    States must, at a minimum, show how they are meeting these 
goals for disadvantaged adults, dislocated workers, out-of-
school youth, and individuals with disabilities. Displaced 
homemakers are specifically included in the definition of 
dislocated workers, and are to be considered as such.
    Finally, States must establish an 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 training-related education programs, even 
though the data is highly reliable and easily accessible. In 
expanding the use of UI wage record data, however, a 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 performance measures in a cost effective 
manner, such a system must be utilized.

                              PARTNERSHIPS

    Statewide and local partnerships, led by the employers, 
will develop the strategy for thecomprehensive State work force 
investment system. It is the committee's intent that the partnerships 
at the State and the local level be ``policy entities'' outlining the 
employment, training, and skill needs, not entities burdened by 
bureaucratic and administrative duties.
    Further, the committee believes that the design of the 
State's work force investment system should be based on local 
employment needs which, by necessity, require the active 
involvement of the employers. Private sector businesses, which 
ultimately provide the jobs, are 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 and individuals seeking assistance have lost 
confidence in the current public system because the programs do 
not provide individuals with the skills necessary to succeed in 
the workplace. Consequently, many consumers, job seekers and 
employers, have turned to nonpublic systems to locate, select, 
and train employees.
    In the committee's view, where employers have volunteered 
time and effort, and have become actively involved on the State 
and local level, the training has been most effective. 
Unfortunately, such participation cannot be mandated by law. It 
is the hope and intention of this committee that employer 
involvement and leadership will become one of the highest 
priority of States and localities when designing and 
implementing statewide work force investment systems.

Statewide partnership

    The members of the statewide partnership include: 
individuals appointed by the Governor of the State (a majority 
of members must be representatives of business with optimal 
policy making or hiring authority that reflect the employment 
opportunities of the State, chief elected officials 
representing cities and counties, labor organizations, eligible 
agency officials responsible for adult education and vocational 
education, the State official responsible for vocational 
rehabilitation, and other State officials the Governor may 
designate) and two members of each chamber of the State 
legislature, appointed by the presiding officer of the chamber. 
The Governor of the State will appoint the chairperson of the 
statewide partnership from among the business membership.
    The statewide partnership is responsible for developing a 
3-year State plan which outlines the strategy for the State 
work force investment system, establishes the State performance 
measures, identifies the employment opportunities within the 
State, divides the State into work force investment areas, and 
assures coordination between the activities authorized in, 
linked to, and coordinated with the legislation.
    The statewide partnership is also responsible for advising 
the Governor on the development and the continuous improvement 
of the State work force investment system, assisting the 
Governor on preparing the State annual report, and assisting 
the Governor in the development of the State labor market 
information system.
    The Governor of the State has final authority to determine 
the contents of and submit the State plan to the Secretary of 
Labor. Prior to submission, the plan must be made available to 
the public and all comments that represent disagreement must be 
included with the plan that is submitted to the Secretary.

Local work force investment areas and local partnerships

    The Governor of the State will designate local work force 
investment areas in the State in accordance with the 
requirement established in the State plan. The Governor shall 
approve requests for designation as a local area from any unit 
of general local government with a population of 500,000 or 
more. A county with a population of 500,000 or more may request 
such designation only with the agreement of the political 
subdivisions within the county with populations of 200,000 or 
more. Single units of general local government with populations 
of 200,000 or more that are currently service delivery areas 
under JTPA shall have an automatic right to request designation 
as a local area. The Governor of any State determined to be 
eligible to receive a small State minimum allotment may 
designate the State as a single area. Once the boundaries for 
the local areas are determined, they shall not change except 
with the approval of the Governor.
    While the committee provides States with the flexibility 
necessary to determine the size and number of work force 
investment areas to be established within States, the committee 
believes that regional cooperation and coordination of services 
should be paramount in the decision making process. The 
committee further believes that the 600 plus SDA's established 
under JTPA have been a burden to the system and that the number 
should shrink significantly under the Workforce Investment 
Partnership Act.
    Local partnerships will be established in every local work 
force investment area. The members of the local partnership are 
appointed by the chief elected official at the local level 
based on the criteria established in the State plan. The 
members of the local partnership shall include: a majority of 
representatives of business with optimal policy making or 
hiring authority that reflect the employment opportunities of 
the local area; chief officers representing local postsecondary 
institutions, and representatives of vocational education and 
adult education providers; chief officers representing labor 
organizations; and chief officers representing economic 
development agencies, including private sector economic 
development entities. Additionally, the chief elected official 
may appoint chief officers from one-stop partners and other 
individuals representing entities that the chief official deems 
appropriate. The members of the local partnership will elect a 
chairman from among the business membership.
    In a case in which the local work force area includes more 
than one unit of general government, the chief elected 
officials of such units may enter into an agreement that 
specifies their respective roles, including how members of the 
local partnership will be appointed. If an agreement cannot be 
reached, the Governor of the State will appoint the members of 
the local partnership.
    Similar to the statewide partnership, the local 
partnerships will provide more of a policy making function than 
an administrative function as currently performed by PIC's. 
Local partnerships are responsible for developing, jointly with 
the chief elected official, a 3-year local plan which describes 
the work force investment system established in the local area 
which will be submitted to the Governor for approval. If the 
local partnership and the chief elected official in the local 
area cannot agree on the local plan, the Governor may develop 
the plan.
    Additionally, the local partnerships are responsible for 
assuring coordination between the activities authorized in, 
linked to, and coordinated with the legislation, identifying 
the local employment opportunities as well as the skills and 
training necessary to obtain local employment opportunities, 
selecting one-stop operators and overseeing the one-stop 
customer service system, and establishing local performance 
measures.
    Local partnerships are prohibited from contracting for or 
directly providing training services. However, the legislation 
provides for a waiver to the above prohibition if the local 
partnership can demonstrate to the Governor of the State that a 
private or public entity is not available to provide a 
particular training service and that service is necessary to 
provide an employment opportunity described in the local plan.
    Recognizing that the needs of youth are different from 
adults, youth partnerships are established at the local level 
to coordinate services for youth seeking assistance, award 
grants to providers of youth services, develop the portions of 
the local plan relating to youth, and duties determined to be 
appropriate by the chairperson of the local partnership. It is 
the committee's intent that youth partnership will be subgroups 
of the local partnerships, not separate entities.
    The committee does not intend for the youth partnership to 
use any funds provided by this legislation to develop or 
implement local school system education curricula, carry out 
activities that duplicate federally funded activities available 
to youth in the local area, or provide an activity for youth 
who are not school dropouts if participation in the activity 
would interfere with or replace the regular academic 
requirement of youth.
    The members of the youth partnerships are appointed by the 
chairman of the local partnerships and include: one or more 
members of the local partnership; representatives of youth 
service agencies, including juvenile justice agencies; 
representatives of local housing authorities; parents of youth 
seeking assistance; individuals, including former enrollees, 
and representatives of organizations that have experience 
relating to youth activities; representatives of Job Corps, as 
appropriate; and other individuals as the chairman of the local 
partnership deems appropriate.
    The Governor of the State will annually certify one local 
partnership for each local work force investment area. The 
criteria for the initial certification is that the membership 
meets the requirements established by the legislation. 
Certification for subsequent years will be based on the ability 
of the local partnership to meet the performance measures 
established in the local plan. Failure of the local partnership 
to meet certification shall result in the reappointment and 
certification of another local partnership.
    Additionally, the Governor of the State may decertify a 
local partnership at any time for fraud or abuse, or failure to 
carry out the responsibilities assigned to the local 
partnership. If a local partnership is decertified, the 
Governor may require the members of the local partnership to be 
reappointed and certified pursuant to a plan developed by the 
Governor after consultation with the chief elected official in 
the local area.
    The committee also urges the Nation's Governors to use the 
authority provided to them to certify and decertify local 
partnerships when necessary. The loudest complaint the 
committee heard regarding the PIC's has been that the poor 
performers where allowed to continue to operate without 
corrective action. If this continues, individuals seeking 
assistance and the business community will continue to avoid 
the public system. The committee believes the Governor of the 
State should take quick action to stop fraud or abuse, or 
failure to meet local performance measures.

                          ALLOWABLE ACTIVITIES

Statewide activities

    Rapid Response--The Governor of the State may reserve not 
more than 25 percent of the dislocated funds to provide rapid 
response activities. States are required to provide rapid 
response to dislocated workers from such funds in the case of a 
permanent closure or mass layoff at a plant, facility, or 
enterprise, or a natural or other disaster that results in mass 
job dislocation, in order to assist dislocated workers in 
obtaining reemployment as soon as possible. Rapid response 
activities will be carried out at the local level by the State, 
working in conjunction with the local partnership and the chief 
elected official in the local area.
    Other Required Statewide Activities--The Governor of the 
State may reserve not more than 15 percent of each funding 
stream for statewide activities. Of that amount, no more than 5 
percent may be reserved for administration. It is the 
committee's intent that the funding for statewide activities 
and administration be ``pooled'' at the State level. The 
statewide activities should benefit adults, dislocated workers, 
and youth. Further, the State shall have one administrative 
entity for the three funding streams.
    The statewide activities shall include: disseminating the 
list of eligible providers of training services; conducting 
evaluations of the services provided; incentive grants to local 
areas for regional cooperation, coordination and nonduplication 
of activities carried out under this legislation; providing 
technical assistance to local areas that fail to meet local 
performance measures; assisting in the establishment of and 
operation of a one-stop customer service system; and the 
operation of a fiscal and management accountability information 
system.
    Allowable statewide activities include: administration; 
identification and implementationof incumbent worker training 
programs; and local training activities.

Activities for adults

    Adults seeking assistance under title III must be at least 
22 years old. Additionally, eligibility for adult services 
under this legislation is not contingent on income; however, a 
State may give a priority to disadvantaged adults if funding is 
limited. The Governor of the State and local partnerships are 
to direct the one-stops in making priority determinations. To 
be eligible for training, a participant must be unable to 
obtain or retain employment without training, in the opinion of 
the case manager, and unable to obtain other grant assistance. 
Services available to adults at the local level may include: 
employment skills training, on-the-job training, job readiness 
training, adult education when combined with one of the other 
training activities, and other services deemed appropriate by 
the local partnership. In addition, individuals seeking 
assistance may draw upon the core services provided through the 
one-stop customer service system.

Activities for dislocated workers

    While the funding for dislocated workers is independent, 
dislocated workers are eligible for the same services available 
to the adult pool through the one-stop customer service system. 
Needs-related payments continue to be available to dislocated 
workers who no longer qualify for unemployment compensation.
    Benefits and Working Condition--Since participants in on-
the-job training are conferring a benefit as well as receiving 
valuable training, the bill requires that trainees receive 
equal benefits and compensation as other trainees or employees 
similarly situated. It also treats participants in employment 
situations as employees for health and safety standards and 
workers' compensation.
    Anti-displacement--One of the principles underlying this 
legislation is that preparing individuals for long-term 
employment must not diminish the opportunities for incumbent 
workers. The bill thus contains strong antidisplacement 
language. It prevents employers from not only laying off 
workers in favor of trainees or graduates of work force 
investment programs, but also prohibits partial displacement, 
such as reduction in nonovertime hours or benefits. 
Furthermore, participants may not fill jobs that would infringe 
on promotional opportunities of incumbent workers.

Activities for youth

    The Workforce Investment Partnership Act places a high 
priority on furthering the opportunities for youth. Given the 
increasing importance of education in securing long-term 
employment with growth potential, the bill requires youth 
activities to include tutoring and instruction leading to the 
completion of secondary school and dropout prevention and 
alternative secondary school for out-of-school youth in 
addition to employment skills training. A summer jobs program 
remains a required part of local partnerships' youth programs, 
but the extent of the summer jobs program is a local decision. 
The youth activities also emphasize linkages between academic 
and occupational learning, mentoring, and follow-up services.
    Eligibility for youth activities must be not less than age 
14 and not more than age 21, low-income and an individual who 
is 1 or more of the following: deficient in basic literacy 
skills; a school dropout; homeless, a runaway, or foster child; 
pregnant or a parent; an offender; or an individual who 
requires additional assistance to complete an educational 
program, or to secure and hold employment.
    Because the funds provided under this legislation are 
intended to provide a ``second chance'' or in some cases, a 
``last chance,'' to youth seeking assistance, the committee 
believes that the most, at-risk youth should be targeted. For 
that reason, 50 percent of the youth served under this 
legislation must be out-of-school youth. Out-of-school youth is 
defined as a youth who has school dropout or a youth who has 
received a secondary diploma or its equivalent, but is basic 
literacy skills deficient, unemployed, or underemployed.
    The committee urges individuals at the State and local 
level, and especially youth partnerships, to examine what is 
working and not working for the youth this legislation is 
intended to assist prior to awarding youth grants. It is the 
committee's belief that the current trend of only providing 
short-term youth programs is unacceptable.
    Recently, the American Youth Policy Forum published ``Some 
Things Do Make a Difference for Youth: A Compendium of 
Evaluations of Youth Programs and Practices'' (p. viii, 
American Youth Policy Forum, 1997). The purpose of the 
compendium was to highlight various successful youth programs 
and principles due to the widening public belief that ``nothing 
works,'' particularly for at-risk and disadvantaged 
populations.
    Past research has shown that most youth will not emerge 
from a short-term, 3 to 6 month education or employment 
training program well-equipped to find stable, long-term places 
in the labor market. On the contrary, the network of supports 
and handholds that young people need to make their way needs to 
be rich and multipathed, not quick and cheap.
    Yet, even as the basic lesson of long-term intervention was 
documented, the national policy turn in 1982 under JTPA was to 
strategies for young people that emphasized low costs and 
short-term interventions. Many of these strategies differ 
little from those used in programs designed for adults. These 
programs reflected much of what had been proven wrong, not 
right, about interventions on behalf of young people.
    The American Youth Policy Forum has established ``Guiding 
Principles'' in their evaluation based on broad and fundamental 
principles that have been identified by researchers and 
practitioners in the youth field. These principles are:
    1. Adult support, structure, and expectation:
    A. Effective youth initiatives connect young people with 
adults who take time with young people, who advocate and broker 
on their behalf, who guide them, who connect them to the 
broader institutions of society, and who have the training and 
professional skills to help them develop and grow, are central 
to effective youth policies and programs.
    B. The programs that are most effective are those that 
stress coherence and structure, that offer challenging content, 
that give young people responsibility, and that establish rules 
and set practical limits for young people.
    C. Committed and skilled adults along with youth 
interventions that set clear and high, yet attainable, 
expectations are essential to successful results.
    2. Creative forms of learning:
    A. The inculcation of basic and high level skills and 
knowledge, Secretary's Commission on Achieving Necessary Skills 
(SCANS) competencies and an on-going desire to learn should 
pervade initiatives serving youth.
    B. Youth program settings need to make learning an ongoing 
challenge for young people with materials that are attuned to 
the interests of the learners; and to provide effective 
pathways for young people to finish high school and move 
successfully into college or other forms of postsecondary 
training. Work-based learning, with its emphasis on 
experiential learning can be a powerful tool in creating an 
effective learning environment.
    3. A combination of guidance and rich connections to the 
workplace:
    A. Young people, especially inner city youth, need 
connections to jobs and employers.
    B. Young people need encouragement to learn how to work, so 
they can grow as a result of their work experiences, succeed 
and sometimes (without excessive penalty) fail, and develop 
sound perspectives on work and careers.
    C. Young people will frequently need support that extends 
beyond the initial job placement point to include interpersonal 
involvement from adults to become, over time, better and more 
effective workers.
    4. Support and follow up:
    A. Trust is important factor to connect young people, and 
particularly youth whose connections to social institutions may 
be weak (or adversarial) need to develop trust and adult and 
peer relationships in any setting. Building these relationships 
create a setting of which young people can become part of.
    B. Programs with a strong follow-up mechanism built into 
the design have better student outcomes.
    C. Referrals, especially coupled with effective case 
management, are a necessary service to offer youth, whether in 
tandem with their own activities or as next steps in a 
progression of coordinated activities and services.
    D. The policies must stress both the quality of individual 
initiatives and the richness of the support network available 
for young people. Where youth knew the adults and had formed a 
connection, they worked better.
    5. Youth as resources:
    A. Young people need to know that they can be resources to 
help them improve their lives.
    B. Allow young people to participate in the solution of 
many of their own problems and act as solid contributors to 
their own, and their communities, growth.
    6. Implementation quality:
    A. Sites where they have followed the program design showed 
the best results. Problems in the implementation of the program 
design, not necessarily the program itself, were more likely 
the cause of poor performance.
    B. For a program to be effective, it must also recognize 
the importance of a well-executed design, coupled with 
evaluation and continuous improvement methods to work.
    C. Initiatives require flexibility to both local needs and 
proven methodologies.

                               JOB CORPS

    It is the committee's intent to substantially change and 
improve the Federal Job Corps program; recruitment, assignment, 
training, and placement. Each component of the Job Corps's 
training process will be linked to each other and the 
employment demands and opportunities inthe communities to which 
Job Corps graduates return.
    Job Corps recruiting patterns will now be governed by an 
analysis conducted initially on the state level and expanded to 
the Job Corps regional level. The analysis will first take into 
consideration the potential number of eligible youth the State 
as well as the in the region and second, assure that Job Corps 
centers reflects those numbers by establishing recruitment 
goals. Furthermore, Job Corps recruiters must take into account 
the recommendations of the State's Governor and local 
partnerships.
    Once recruited and enrolled in the Job Corps program, it is 
the committee's intent to ensure that an enrollee is assigned 
to the Job Corps center closest to his or her home. To do so, 
there are required linkages between the Job Corps centers and 
the communities to which enrollees will return upon their 
graduation to find work. One such connection is the required 
relationship between the centers and the applicable one-stops 
in such communities.
    It is the committee's intent that there are only four 
exceptions to this rule: (1) the enrollee chooses a training 
program or requires an English as a second language program 
that is not available at the Job Corps center closest to his or 
her home; (2) the enrollee is disabled whose needs may best be 
served at a different center; (3) the enrollee's participation 
would be unduly delayed because the center closest to his or 
her home is full; and (4) the enrollee's parent or guardian 
requests assignment for the enrollee at another center because 
of adverse circumstances at home or in the community.
    It is the committee's intent to significantly improve the 
methods by which a Job Corps's training curriculum is decided 
and implemented. To do so every Job Corps center must have an 
industry council whose membership will be comprised of business 
owners, chief executive officers of nongovernmental employers 
and other private sector employers. It is the committee's 
intent that local partnerships should be utilized when 
establishing industry councils. The council's responsibilities 
will be to evaluate the labor market information and the 
employment needs in the communities to which the center's 
graduates will return as well as determine and recommend to the 
Secretary the types of vocational training that should be 
offered at the center.
    It is the committee's intent to affect the Job Corps' 
community relations and placement through the establishment of 
Business Community Liaisons. Every Job Corps center must have a 
Business Community Liaison whose primary responsibilities 
include: founding and developing relationships and networks 
with employers, one-stop centers, and local partnerships to 
whom the Job Corps center's enrollees may look for employment 
following graduation.
    It is the committee's intent that Job Corps center 
operators and service providers be selected on a competitive 
basis. In making this selection, the Secretary of Labor must 
consider: the entity's ability to coordinate activities carried 
out through the Job Corps center with the activities carried 
out under the appropriate State and local plans, the degree to 
which the training the entity proposes providing reflects the 
needs of the area or the areas to which graduates will return, 
the degree to which the entity is familiar with the local 
entities and applicable one-stops, and the entity's past 
performance, if any.
    It is the committee's intent to ensure accountability for 
the Job Corps program. In doing so, the Secretary of Labor is 
required to establish core performance measures for Job Corps 
centers including, but not limited to: the number of graduates 
from each center analyzed by their vocational training, the 
number of graduates who entered unsubsidized employment related 
or unrelated to their vocational training, graduates' average 
wage after 6 months and 12 months, and how many graduates 
retained their employment 6 months and 12 months following 
their graduation. For those Job Corps centers that fail to meet 
these performance measures, the Secretary of Labor will develop 
an improvement plan that may include any of the following: 
technical assistance, changing the vocational training offered 
at the center, changing the center's management staff, 
replacing the operator, reducing the center's capacity, 
relocating the center, or closing the center altogether.
    It is the committee's intent that in the siting of new Job 
Corps facilities, a priority should be given to those States 
which currently do not have a Job Corps facility and which have 
a substantial population of eligible youth and have a high 
level of interest in the program.

                          NATIONAL ACTIVITIES

    Youth Opportunity Grants--The Workforce Investment 
Partnership Act provides for the Youth Opportunity Grant 
program which was broadly outlined in the budget agreement. The 
Secretary of Labor shall reserve 20 percent of the youth 
funding stream for Youth Opportunity Grants, however, the 
funding mechanism for such grants has a trigger, so that the 
funding to States by formula will not fall below the current $1 
billion. The President's proposal for Youth Opportunity Grants 
included an authorization for $250 million.
    The purpose of the grants is to provide local partnerships 
with additional resources to provide activities for youth to 
increase the long-term employment of eligible youth who live in 
Empowerment Zones, Enterprise Communities, and other high 
poverty areas by competitive grants. The activities provided 
should be based on the activities, connected with, and linked 
to the youth activities described in the ``Allowable 
Activities'' section for youth. Additionally, these grants 
carry with them added responsibilities, including 
demonstrations of local support and leveraging of community 
resources, intensive job placement services, and longer 
followup of participants. One Youth Opportunity Grant is 
earmarked for migrant farmworker youth.
    Incentive Grants--It is the committee's intent to provide 
additional funds to those States exceeding their performance 
measures for each title in this act. Additionally, the 
Secretary of Labor, shall give a priority to States that submit 
a unified plan. The secretary shall only give a priority to 
States that first exceed their performance measures for each 
title. Incentive grants awarded to States are to be used to 
carry out innovative programs consistent with the purposes of 
this Act as determined by the State.
    Technical Assistance--It is the committee's intent to 
provide technical assistance to States in making the transition 
from JTPA system to the Workforce Investment Partnership 
system. It is also the committee's intent to provide technical 
assistance to those States not meeting their performance 
measures in general and for dislocated workers in particular.
    Demonstration, Pilot, Multiservice, Research, and 
Multistate Projects--Pursuant to this reformed portion of the 
Workforce Investment Partnership Act, the Secretary will 
develop a plan every 5 years outlining the Federal Government's 
plans for pilot and demonstration programs. It is the intent of 
the committee, that any research projects that are made a part 
of the plan only after those projects described in this section 
and only as the remaining funds therefore allow.
    Those projects are intended to provide for in this section 
are intended to identify innovative and effective or best 
practices within the States and disseminate those practices to 
the rest of the States and incorporate them into the Workforce 
Investment Partnership system.
    Evaluations--It is the committee's intent to continue 
providing for evaluations of the Federal job training system to 
determine its effectiveness. The evaluations should address: 
the general effectiveness of such programs and activities in 
relation to their cost; the effectiveness of the performance 
measures relating so such programs and activities; the 
effectiveness of the structure and mechanisms for delivery of 
services through such programs and activities; the impact of 
the programs and activities on the community and participants 
involved; the impact of such programs and activities on related 
programs and activities; the extent to which such programs and 
activities meet the needs of various demographic groups; and 
such factors as may be appropriate.
    Additionally, the Secretary of Labor may also conduct 
evaluations of other federally funded programs including: 
Wagner-Peyser Act; National Apprenticeship Act; Older Americans 
Act; and Federal unemployment insurance programs.
    Evaluations conducted under this title shall utilize 
appropriate methodology and research designs, which may include 
the use of control groups chosen by scientific random 
assignment methodologies.
    National Emergency Grants--The Secretary of Labor shall 
reserve 20 percent of the dislocated worker funding stream for 
National Emergency Grants. The purpose of the grants is to 
provide the Federal Government with the ability to respond to 
mass layoffs, natural disasters, and other severe dislocations.
    Finally, Job training services for native Americans, 
migrant and seasonal farmworkers, and veterans will continue 
under this legislation, virtually unchanged from how the 
programs operate under JTPA.

           Title IV--Work Force Investment Related Activities

relationship between one-stops 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 similar to the 
mission of the one-stop customer service centers in this bill. 
The committee anticipates that many States will build their 
work force investment systems upon existing service delivery 
mechanisms. Some States may follow the model Ohio has adopted 
which has been to convert local employment security offices 
into one-stops 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 customer service centers that are managed by private 
companies.
    The committee believes that coordinating the activities 
performed by the Employment Service and the statewide work 
force investment system will improve and strengthen services 
for all individuals seeking assistance, 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 coordination between the 
Employment Service and the State work force investment system 
will provide consumers, job seekers and the business community, 
with a more efficient system. 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.

Labor market information

    The committee believes labor market information (LMI) is an 
essential structural element supporting all other programs and 
services under the Workforce Investment Partnership Act. The 
legislation builds on the foundation of existing national data 
programs to create a nationwide system for information that 
will be integrated from local to State to national levels 
andcomparable across States, enabling employers and job seekers to make 
informed choices.
    The committee finds that, despite widespread consensus 
about the kinds of data and information that should be included 
in an LMI system and that are described in the legislation, 
current LMI activities are simply not organized to produce them 
efficiently. Gaps in information, duplication of effort, and 
confusion of responsibilities can best be addressed by 
consolidating the currently fragmented governance structure for 
LMI.
    Consolidation at the Federal level underscores the 
responsibility of the Secretary of Labor and recognizes the key 
role of the Bureau of Labor Statistics (BLS) in LMI. The 
Secretary, in addition to rationalizing data responsibilities 
within the Department of Labor, will be responsible for 
coordination with all other interested federal agencies. The 
Bureau of Labor Statistics, which maintains essential LMI 
programs, has the expertise and the historical mission to 
design data and develop the LMI system. BLS fits the 
requirement that the agency charged with LMI responsibilities 
should be a neutral source, trusted by all education and 
training deliverers, and not itself a service deliverer. This 
requirement accords with the committee's vision that LMI should 
be the common element integrating the various institutions that 
deliver workforce development services.
    In the States, the Governor of the State will name a single 
agency to carry out LMI activities. This design will enable 
within-state consolidation paralleling that at the Federal 
level. In naming the State's LMI agency, Governors will need to 
maintain current linkages with the Unemployment Insurance 
program, data from which undergirds LMI programs.
    The legislation creates a unique Federal-State partnership 
by engaging the State LMI directors with BLS in joint planning 
and priority-setting for LMI for the fiscal year succeeding the 
one in which the plan is developed and for the following 5 
years. This substantive role for the States will ensure 
attention to State and local data needs, responsiveness to 
consumer demands from employers and job seekers, and true 
cooperation between the Federal agency and State LMI agencies. 
The provision for peer election of State LMI directors to work 
with BLS in the development of the annual plan for LMI 
maintains the historically nonpartisan and independent nature 
of the data collection effort.
    The Secretary of Labor should use the existing 
authorization in Section 14 of the Wagner-Peyser Act, to 
provide a unified funding stream for LMI, distributed on the 
basis of relevant labor market factors with adequate base 
funding for all states. Analysis, dissemination, training for 
data users, technical assistance, and research and development 
are integral components of each data program and must be funded 
accordingly.

                                linkages

    The stated purpose of the Workforce Investment Partnership 
Act of 1997 is to assure that there is coordination between all 
activities authorized in, linked to, and coordinated with this 
legislation to promote efficiency and avoid duplication at the 
State and local level. To achieve that goal, the Workforce 
Investment Partnership Act authorizes the largest job training 
and training-related education programs. Additionally, the 
legislation creates mandatory linkages to assure coordination 
in the following statutes: the Trade Act of 1974; the National 
Apprenticeship Act; Veterans Employment Programs; and the Older 
Americans Act of 1965. Additionally, it is the committee's 
intent to add the Rehabilitation Act as a new title to this 
legislation when it is considered by the full U.S. Senate.
    The committee would provide additional mandatory linkages 
to other training-related programs if it had the jurisdictional 
authority. However, throughout the legislation, planning 
requirements, one-stop customer service centers, and 
partnerships, States and localities are provided with the 
framework to boldly move forward, transforming the current 
patchwork of programs into a comprehensive and accountable 
system while preserving the integrity of the federal programs.

               twenty-first century workforce commission

    The shortage of skilled workers is one of the most critical 
issues facing the United States information technology industry 
today. Our position as world leader in this industry is 
threatened--not by technology--but by a shortage of individuals 
with the skills necessary to enter the workforce. According to 
some estimates, there is a shortage of nearly 200,000 workers 
nationwide, the economic impact of which will be felt in every 
state and industry. This 2.5 million person industry is 
projected to nearly double in size by the year 2000.
    This legislation establishes a Twenty-First Century 
Workforce Commission to evaluate to scope of the technology 
skills shortage in the workforce. The commission will be 
comprised of industry leaders, educators, and government 
officials who will study this issue and provide the President 
and Congress with potential solutions. The commission will 
highlight and craft the solutions necessary to encourage more 
students to enter technical fields, to ensure that teachers and 
schools are equipped to train them, and to incorporate the best 
private sector initiatives. The commission will bring national 
focus and attention to this issue, and will report its 
recommendations to the President and to Congress within the 
year.

                      Title V--General Provisions

                          state unified plans

    The purpose of the unified plan provision is to permit and 
encourage the submission of State unified plans, to assure 
coordination and to avoid duplication between activities 
authorized in, linked to, and coordinated with the Workforce 
Investment Partnership Act of 1997. It is the committee's 
belief that this section is vital to the success of this 
legislation and vital to providing States and localities with 
the ability to establish a comprehensive system.
    In a State that elects to develop a State unified plan, the 
plan shall contain planning provisions, which shall be 
developed in a manner that substantially reflects the planning 
provisions of the Federal statutes included in the plan. The 
plan shall be developed by the statewide partnership, modified 
as appropriate, with the agreement of the Governor of the State 
and the head(s) of the appropriate State agency(ies) with the 
authority to carry out a program or activity.
    After the Governor of the State and the head(s) of the 
appropriate State agency(ies) approve the portions of the State 
unified plan that relate to their programs or activities, the 
State may submit the plan to the appropriate Secretaries. Each 
appropriate Secretary shall have the authority to approve the 
portion of the State unified plan for which the Secretary has 
authority. Upon the approval of the Secretary, the portion of 
the State unified plan relating to the programs and activities 
of which they have authority shall be implemented by the State 
pursuant to the State unified plan.

                         TRANSITION PROVISIONS

    The Secretaries of Labor and Education shall take the 
appropriate steps to provide for the orderly transition from 
the authority under current law to the authority under the 
Workforce Investment Partnership Act of 1997. States must 
implement this legislation by July 1, 1999. However, States may 
implement the act at any time prior to July 1, 1999.
    Additionally, this legislation ``grandfathers'' 
comprehensive State work force investment reform. If a 
provision of this Act conflicts with a State statute 
implemented prior to July 1, 1997, a State shall not be 
required to comply with that provision.

                           IV. Cost Estimate

    To be provided.

                     V. Regulatory Impact Statement

    The committee has determined that the bill may result in 
some additional paperwork, time, and costs to the Department of 
Labor and the Department of Education, which would be entrusted 
with implementation and enforcement of the act. It is difficult 
to estimate the volume of additional paperwork necessity by the 
act, but the committee does not believe it will be significant.

          VI. Application of the Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1, the Congressional 
Accountability Act (CAA), requires a description of the 
application of this bill to the legislative branch. S. 1186 
repeals the Carl Perkins Vocational Education Act, the Adult 
Education Act, the Job Training Partnership Act, and related 
programs. Therefore, S. 1186 does not amend any act that 
applies to the legislative branch.

                    VII. Section-by-Section Analysis

                   SHORT TITLE AND TABLE OF CONTENTS

    Section 1(a) specifies the title of the legislation, The 
Workforce Investment Partnership Act of 1997.
    Section 1(b) lists the table of contents.
    Section 2 lists the definitions used throughout S. 1186.

      Title I--Vocational, Technological, and Tech-Prep Education

Section 101. Short title

    Section 101 specifies the name for title I which is the 
Carl D. Perkins Vocational and Applied Technology Act of 1997.

Section 102. Findings and purpose

    Section 102(a) lists the findings for title I.
    Section 102(b) establishes the purpose of title I which is 
to develop the academic, vocational, and employability skills 
of secondary and postsecondary students who elect to 
participate in vocational education.

Section 103. Voluntary selection and participation

    Section 103 specifies that no funds under title I of this 
act will be used to require any secondary school student to 
choose or pursue a specific career path or major and to mandate 
that any individual participate in vocational education.

                    Subtitle A--Vocational Education

                     Chapter 1--Federal Provisions

Section 111. Reservations and State allotment

    Section 111(a)(1) specifies the percentages that the 
Secretary will use to carry out vocational education programs 
for outlying areas, Indians, Hawaiian Natives, Tribally 
Controlledpostsecondary vocational institutions, incentive 
grants, the National Assessment of Vocational Education programs, the 
National Research Center, and data systems.
    Section 111(a)(2) establishes the State allotment formula.
    Section 111(a)(3) establishes the small State minimum.
    Section 111(a)(4) establishes a hold harmless provision 
based on fiscal year 1997 State allotments.
    Section 111(b) establishes reallotment criteria for the 
Secretary under certain conditions.
    Section 111(c) establishes the State allotment ratio.

Section 112. Performance measures and expected levels of performance

    Section 112(a) establishes performance measures after 
consultation with eligible agencies, representatives of 
business and labor organizations and other interested 
individuals. The Secretary will establish and publish 
performance measures which will assess the progress in the 
following areas: student mastery of job skills; student mastery 
of job readiness skills; vocational skill proficiencies for 
students in vocational education programs; receipt of a 
postsecondary degree or certificate; placement, retention, 
completion of secondary school education and postsecondary 
education, placement, retention in employment and military 
services; and participation and completion of nontraditional 
vocational education programs leading to nontraditional 
employment, as well as other measures as developed by the 
Secretary.
    Section 112(b) establishes expected levels of performance. 
Each eligible agency will negotiate with the Secretary the 
expected levels of performance for the performance measures as 
described in 112(a).

Section 113. Assistance for outlying areas

    Section 113 describes the reservation of funds for outlying 
areas and establishes a special rule regarding funds made 
available to the Republic of the Marshall Islands, the 
Federated States of Micronesia, the Republic of Palau, Guam, 
American Samoa, and the Commonwealth of the Northern Mariana 
Islands.

Section 114. Indian and Hawaiian native programs

    Section 114(a) includes definitions for Bureau funded 
school and Hawaiian Native.
    Section 114(b) allows the Secretary of Education to award 
grants or contracts with Indian Tribes, Tribal Organizations, 
or Bureau funded schools to conduct programs consistent with 
this title.
    Section 114(c) allows the Secretary of Education to award 
grants or contracts with organizations serving Hawaiian Natives 
to conduct programs consistent with this title.

Section 115. Tribally controlled postsecondary vocational institutions

    Section 115 (a) and (b) allows the Secretary of Education 
to make grants to Tribally Controlled postsecondary vocational 
institutions.

Section 116. Incentive grants

    Section 116(a) enables the Secretary to make grants to 
States that exceed the performance measures under this act.
    Section 116(b) establishes a priority for those States that 
submit a unified plan.
    Section 116(c) creates incentive grants that will be used 
to carry out innovative programs.

                      Chapter 2--State Provisions

Section 121. State administration

    Section 121 outlines State administration provisions 
regarding the development, submission, and implementation of 
the State plan.

Section 122. State use of funds

    Section 122(a) establishes a reservation of funds for State 
leadership activities, including $60,000 to provide technical 
assistance for gender equity activities.
    Section 122(b) provides that each State will determine how 
their funds are allocated for secondary and postsecondary 
vocational education programs.
    Section 122(c) provides that States must match on a dollar 
for dollar basis for the funds received under section 122(a).

Section 123. State leadership activities

    Section 123(a) establishes that each eligible agency shall 
have to carry out activities that provideprofessional 
development, develop and disseminate curricula based on State academic 
standards and vocational and technological skills, promote gender 
equity, support Tech-Prep activities, improve the use of technology in 
instruction, support partnerships among local education agencies, 
higher education institutions, adult education providers and other 
entities and serve individuals in State institutions (correctional 
institutions and institutions that serve individuals with 
disabilities).
    Section 123(b) provides that States may carry out 
activities pertaining to guidance counseling, vocational 
student organizations, vocational education programs for adults 
and school dropouts to complete secondary school education, and 
assistance to vocational education students finding jobs or 
continuing their education.

Section 124. State plan

    Section 124(a) provides that each eligible agency shall 
submit a three year plan to the Secretary with annual revisions 
as the eligible agency determines are necessary.
    Section 124(b) establishes the development of a plan.
    Section 124(c) outlines the contents of the plan. The plan 
shall include information that describes how the eligible 
agency will: meet the performance measures; integrate academic 
education with vocational education; desegregated data relating 
to students participating in vocational education for measuring 
the progress of those students; address the needs of students 
in alternative education programs; provide technical assistance 
to local educational agencies, area vocational education 
schools, and eligible institutions; encourage the participation 
of secondary school students involved in vocational education; 
obtain the participation of business, labor organizations, and 
parents in developing and improving vocational education 
activities; align vocational education with State and regional 
employment opportunities; establish methods for joint planning 
and coordination of vocational education programs with other 
federal education programs; use funds to promote gender equity 
in secondary and postsecondary vocational education; use funds 
to improve and expand the use of technology in instruction; use 
funds to serve individuals in correctional institutions; use 
funds to effectively link secondary and postsecondary 
education; use consortia at the secondary and postsecondary; 
ensure that data received and reported is complete and 
accurate; develop program strategies for populations that 
include low-income individuals (including foster children), 
individuals with disabilities, single parents and displaced 
homemakers and individuals with multiple barriers to 
educational enhancement; and coordinate work force investment 
activities working with one-stop partners for postsecondary 
students and school dropouts.
    Section 124(d) outlines plan approval. The Secretary will 
approve a State plan or a revision to a State plan if the 
Secretary determines that the requirements have been met and 
that the State's performance measures and expected levels of 
performance are sufficiently rigorous. The Secretary will only 
disapprove a plan after giving the eligible agency sufficient 
notice and an opportunity for a hearing. A State plan will be 
considered approved if the Secretary does not respond within 90 
days after the Secretary receives the plan.
    Section 124(e) requires an eligible agency to file an 
annual report containing information about the quality and 
effectiveness of programs, services, and activities assisted 
under this subtitle. This report will be based on the 
performance measures and the expected levels of performance.

                      Chapter 3--Local Provisions

Section 131. Distribution for secondary school vocational education

    Section 131(a) describes the allocation for the 
distribution of funds for secondary school vocational 
education.
    Section 131(b) establishes the minimum allocation for the 
distribution of funds for secondary vocational education.
    Section 131(c) requires that funds be distributed to the 
local educational agency or the regional educational agency 
that provides secondary school services to secondary school 
students in the same attendance area.
    Section 131(d) establishes the allocations to area 
vocational education schools and educational service agencies.

Section 132. Distribution for postsecondary vocational education

    Section 132(a) outlines the distribution of funds for 
postsecondary vocational education.
    Section 132(b) establishes an alternative postsecondary 
vocational education formula. Eligible agencies may devise and 
implement an alternative allocation formula if an eligible 
agency demonstrates the following elements to the Secretary: 
(1) the alternative formula better meets the purpose of title 
I; and (2) the formula as outlined in section 132(a) does not 
result in an allocation of funds to the eligible institutions 
that serve the highest numbers or percentages of low-income 
students and the alternative formula will result in such a 
distribution.

Section 133. Local activities

    Section 133(a) establishes mandatory local activities for 
vocational education. These activities are: conducting programs 
that further student achievement for vocational education 
students; providing services that are sufficient in size, 
scope, and quality; integrating the academic education with 
vocational education for students participating in vocational 
education; linking secondary education and postsecondary 
education; providing professional development; expanding 
technology in vocational education instruction; improving 
vocational educationprograms; providing access to quality 
vocational education programs, developing and implementing performance 
management systems and evaluations; and promoting gender equity in 
secondary and postsecondary vocational education.
    Section 133(b) outlines permissive local activities for 
vocational education. These programs include: student 
internships; guidance and counseling for students participating 
in vocational education programs; vocational education programs 
for adults and school dropouts; equipment acquisition; 
vocational student organizations support; assistance to 
vocational education students in finding an appropriate job and 
continuing their education.

Section 134. Local application

    Section 134(a) requires each local educational agency or 
eligible institution seeking assistance under this subtitle to 
submit an application to the eligible agency.
    Section 134(b) requires each local application to include 
the following information: a description of how the vocational 
education activities will be carried out in order to meet the 
expected levels of performance; a description of the 
independent evaluation and improvement process that will be 
used by the local educational agency or eligible institution; 
and a description of how the local educational agency or 
eligible institution will consult with students, parents, labor 
organizations and others to carry out activities under this 
subtitle.

                    subtitle b--tech-prep education

Section 151. Short title

    Section 151 establishes the Tech-Prep Education Act as the 
name for subtitle B.

Section 152. Purposes

    Section 152 establishes the purpose of the subtitle which 
are: to provide grants for the development and operation of 
tech-prep programs; to provide comprehensive links among 
secondary schools, postsecondary education institutions and 
local or regional employers or labor organizations; and to 
support teaching and curriculum for Tech-Prep based on each 
State's academic, occupational, and employability standards.

Section 153. Definitions

    Section 153 lists the definitions used in the subtitle.

Section 154. Program authorized

    Section 154(a) specifies that grants will be awarded to 
consortia that include at a minimum, a secondary institution, a 
postsecondary institution, and an employer or labor 
organization.
    Section 154(b) specifies that the eligible agency will make 
grants to consortia either on a competitive basis or on the 
basis of a formula determined by the eligible agency.

Section 155. Tech-prep education programs

    Section 155(a) allows each consortium to develop and 
operate a Tech-Prep program.
    Section 155(b) specifies the required Tech-Prep contents. 
Each program funded shall: be carried out under an articulation 
agreement among the participants in the consortium; consist of 
at least 2 years of secondary school and two years or more of 
postsecondary school; meet challenging State standards that 
link schools with business and industry, and use educational 
technology; include professional development programs for 
teachers and counselors; and provide access to members of 
special populations as described in section 124(c)(16).
    Section 155(c) lists activities that Tech-Prep programs may 
implement including: acquisition of equipment for Tech-Prep 
programs; acquisition of technical assistance from States or 
local entities that have operated successful Tech-Prep 
programs; establishment of articulation agreements with higher 
education institutions, labor organizations or businesses 
located outside of the State served by the consortium.

Section 156. Applications

    Section 156(a) requires that consortia seeking a grant 
under this subtitle must submit an application to the Secretary 
or eligible agency, as appropriate.
    Section 156(b) specifies that each application will include 
a 3 year plan.
    Section 156(c) includes a reference to the criteria that 
the Secretary or eligible agency will use to approve an 
application.
    Section 156(d) specifies the special considerations the 
Secretary or eligible agency will use in awarding grants to 
consortia. These special considerations include applications 
that: provide students with employment or transfer to four year 
postsecondary institutions; are developed in consultation with 
four year institutions; address the needs of special 
populations; provide training in areas where there are work 
force shortages; and demonstrate how students will meet high 
academic and employability competencies.
    Section 156(e) requires the Secretary to ensure an 
equitable distribution of assistance among States. In addition, 
the Secretary or the eligible agency must ensure an equitable 
distribution of assistance between urban and rural consortium 
participants.
    Section 156(f) requires each consortium submitting an 
application to provide a copy of the application to the State 
Education Agency and the State agency for higher education.

Section 157. Authorization of appropriations

    Section 157 establishes authorization of appropriations for 
Tech-Prep.

                     Subtitle C--General provisions

Section 161. Administrative provisions

    Section 161(a) requires that funds expended under title I 
shall supplement and not supplant other public funds expended 
to carry out activities under title I.
    Section 161(b) requires maintenance of effort.
    Section 161(c) requires the eligible agency to provide 
representation to the statewide partnership as established 
under title III.

Section 162. Evaluation, improvement, and accountability

    Section 162(a) requires each eligible agency to annually 
evaluate the vocational education and tech-prep activities of 
each local educational agency or eligible institution receiving 
assistance under this title.
    Section 162(b) specifies that an eligible agency may 
implement improvement assistance for those entities not making 
substantial progress.
    Section 162(c) establishes that the Secretary shall provide 
technical assistance to an eligible agency if the eligible 
agency is not properly implementing the eligible agency's 
responsibilities under section 124 or in meeting the purpose of 
title I.
    Section 162(d) lists the conditions under which the 
Secretary may withhold Federal funds from an eligible agency.

Section 163. National activities

    Section 163 establishes national activities for title I.

Section 164. National assessment of vocational education programs

    Section 164(a) requires the Secretary to conduct a national 
assessment of vocational education programs assisted under 
title I.
    Section 164(b) requires the Secretary to establish an 
independent advisory panel regarding the implementation of the 
national assessment described under section 164(a).
    Section 164(c) lists the contents of the national 
assessment.
    Section 164(d) requires the Secretary to consult with the 
appropriate congressional committees requiring the design and 
implementation of the assessment required under section 164(a). 
In addition, the Secretary is required to submit to the 
appropriate congressional committees an interim and final 
report.

Section 165. National research center

    Section 165(a) establishes that the Secretary may establish 
one or more national centers for applied research and 
dissemination training.
    Section 165(b) requires the national center or centers to 
carry out activities as the Secretary determines to be 
appropriate to assist State and local recipients of funds under 
title I. The center or centers shall be required to annually 
prepare a report of key research findings.
    Section 165(c) requires the Secretary to consult at least 
annually with the national center or centers with education 
experts to ensure the center or centers activities meet the 
needs of vocational education programs. In addition, the 
Secretary shall conduct an independent review of each award 
recipient under this section.

Section 166. Data systems

    Section 166(a) requires the Secretary to maintain a data 
system to collect information on vocational education and on 
the effectiveness of State and local programs, services, and 
activities carried out under title I.
    Section 166(b) requires the data system to be compatible 
with other Federal information systems.
    Section 166(c) requires the National Center for Education 
Statistics to collect and report on vocational education 
information.

               Subtitle D--Authorization of Appropriation

Section 171. Authorization of appropriations

    Section 171 establishes the authorization of appropriations 
for national activities.

                           Subtitle E--Repeal

Section 181. Repeal

    Section 181(a) repeals the Carl D. Perkins Vocational and 
Applied Technology Act.
    Section 181(b) lists the repeals to references to the Carl 
D. Perkins Vocational and Applied Technology Act.

                 Title II--Adult Education and Literacy

Section 201. Short title

    Section 201 cites the short title for title II which is the 
Adult Education and Literacy Act.

Section 202. Findings and purpose

    Section 202(a) establishes the findings for title II.
    Section 202(b) establishes that the purposes of title II 
are: to become literate and obtain the knowledge and skills 
needed to compete in a global economy; complete a secondary 
school education; and have the education skills necessary to 
support the education development of their children.

                     Chapter 1--Federal Provisions

Section 211. Reservation; grants to States; allotments

    Section 211(a) establishes the reservation of funds for 
national leadership activities.
    Section 211(b) establishes the amount reserved for grants 
to States.
    Section 211(c) lists the initial allotments for eligible 
agencies.
    Section 211(d) defines qualifying adult as used under 
section 211.
    Section 211(e) specifies how the Secretary shall award 
grants to the Republic of the Marshall Islands, the Federated 
States of Micronesia, and the Republic of Palau.
    Section 211(f) establishes maintenance of effort 
requirement for title II.
    Section 211(g) establishes that if the Secretary determines 
that any amount of the State's allotment will not be required 
for carrying out the program for which the amount has been 
allotted, the Secretary shall reallot that amount to one or 
more States.

Section 212. Performance measures and expected levels of performance

    Section 212(a) establishes performance measures for title 
II, which at a minimum, shall include: demonstrated 
improvements in literacy skill levels in reading and writing 
the English language, numeracy, and problem solving; attainment 
of secondary school diplomas or their recognized equivalent; 
placement in, retention in, or completion of postsecondary 
education, training, or unsubsidized employment; and other 
performance measures as the Secretary determines are necessary.
    Section 212(b) establishes expected levels of performance. 
Each eligible agency shall negotiate with the Secretary the 
expected levels of performance.

Section 213. National leadership activities

    Section 213(a) authorizes national activities.
    Section 213(b) enables national activities to be carried 
out through grants, contracts, or cooperative agreements.
    Section 213(c) requires national leadership funds to be 
used for: research; model and innovative programs; 
dissemination of information; evaluations and assessments; 
efforts to support capacity building at the State and local 
levels; data collection; professional development, technical 
assistance; and other activities designed to enhance adult 
education.

                      Chapter 2--State Provisions

Section 221. State administration

    Section 221(a) establishes State administration of 
activities.
    Section 221(b) requires the State to identify the rule or 
policy as a State imposed requirement whenever a State imposes 
any rule or policy relating to the administration and operation 
of activities under subtitle A of title II.

Section 222. State distribution of funds; State share

    Section 222(a) establishes the State distribution of funds.
    Section 222(b) requires each eligible agency to provide an 
amount equal to 25 percent of the total amount of funds 
expended for adult education in the State.

Section 223. State leadership activities

    Section 223(a) requires each eligible agency to use funds 
for State Leadership activities for one or more of the 
following: professional development; developing and 
disseminating adult education curricula; evaluation; 
establishing challenging performance measures; integration of 
literacy instruction and occupational skill training; linkages 
with postsecondary institutions; supporting State or regional 
networks of literacy resource centers; and other activities.
    Section 223(b) requires eligible agencies to avoid 
duplicating efforts in order to maximize the impact of 
activities under section 223(a).

Section 224. State plan

    Section 224(a) requires each eligible agency applying for a 
grant to submit a 3 year plan.
    Section 224(b) establishes the State plan contents which 
shall include: an objective assessment of the needs of 
individuals in the State; a description of adult education and 
literacy activities to be carried out under this subtitle; a 
description of how the eligible agency will conduct annual 
evaluations; a description of how the eligible agency ensure 
that data reported is reliable; a description of the 
performance measures required under section 212(a); an 
assurance that the funds under this subtitle will only be used 
for activities under this subtitle; an assurance that programs 
will be coordinated with other Federal programs; a 
determination of how the eligible agency will fund local 
activities; a description of how the eligible agency will 
determine the eligible providers for title II; a description of 
low funds will be used for State leadership activities; a 
public comment process; and a description of how the eligible 
agency will develop program strategies for the low-income 
students, individuals with disabilities, single parents and 
displaced homemakers, individuals with disabilities, and 
individuals with multiple barriers to educational enhancement.
    Section 224(c) enables the eligible agency to submit State 
plan revisions to the Secretary.
    Section 224(d) requires the eligible agency to submit the 
State plan to the Governor for review and comment.
    Section 224(e) requires the Secretary to approved a State 
plan if it meets the requirements of section 224 and if the 
performance measures and expected levels of performance 
established under section 212 are sufficiently rigorous. In 
addition, the Secretary shall only disapprove a State plan 
after giving the eligible agency notice and opportunity for a 
hearing. The Secretary shall establish a peer review process 
for State plan approval.

Section 225. Programs for corrections education and other 
        institutionalized individuals

    Section 225(a) authorizes programs for corrections 
education and other institutionalized individuals.
    Section 225(b) specifies that funds authorized for section 
225(a) shall be used for: basic education; special education 
programs as determined by the State; bilingual programs or 
English as a second language programs; and secondary school 
credit programs.
    Section 225(c) defines criminal offender.

                      Chapter 3--Local Provisions

Section 231. Grants and contracts for eligible providers

    Section 231(a) requires each eligible agency to award 
multiyear grants or contracts to eligible providers.
    Section 231(b) requires each eligible agency to ensure that 
all eligible providers have direct and equitable access to 
apply for grants or contracts.
    Section 231(c) requires each eligible provider to provide 
instruction or services such as adult education and literacy 
services or English literacy programs.

Section 232. Local application

    Section 232 requires each eligible provider to submit an 
application to the eligible agency and to include the following 
information in that application: a description of how funds 
awarded under this subtitle will be spent; a description of how 
the expended levels of performance of the eligible provider 
will be met; a description of any cooperative arrangements the 
eligible provider has with other entities regarding adult 
education programs.

Section 233. Local administrative cost limits

    Section 233(a) requires that local administrative costs 
shall not exceed five percent.
    Section 233(b) provides for negotiation between the 
eligible agency and the eligible provider if the administrative 
cost limit under section 223(a) is too restrictive.

                     Chapter 4--General Provisions

Section 241. Administrative provisions

    Section 241(a) requires that funds under subtitle A of 
title II shall supplement and not supplant other State or local 
funds expended for adult education and literacy activities.
    Section 241(b) requires the eligible agency to provide 
representation to the statewide partnership described in title 
III.

Section 242. Priorities and preferences

    Section 242(a) establishes priorities that each eligible 
agency and each eligible provider receiving assistance under 
this subtitle shall consider in carrying out activities.
    Section 242(b) requires that each eligible agency receiving 
a grant under title II shall give preference to eligible 
providers that serve local areas with high concentrations of 
individuals in poverty or with low levels of literacy. In 
addition, preference shall be given to eligible providers that 
coordinate with and utilize other community literacy and social 
services.

Section 243. Incentive grants

    Section 243(a) establishes incentive grants for States that 
exceed performance measures under this Act.
    Section 243(b) establishes that in awarding grants under 
section 243(a), the Secretary shall give priority to those 
States submitting a State unified plan as described in section 
501.
    Section 243(c) requires incentive grant funds to be used 
for innovative programs.

Section 244. Evaluation, improvement, and accountability

    Section 244(a) requires each eligible agency to biennially 
evaluate adult education and literacy activities provided by 
each eligible provider.
    Section 244(b) allows the eligible agency to work jointly 
with the eligible provider to develop an improvement plan if it 
has been determined that an eligible provider is not making 
substantial progress in achieving the purpose of title II.
    Section 244(c) requires the eligible agency to report 
annually to the Secretary regarding the effectiveness of adult 
education and literacy activities.
    Section 244(d) requires the Secretary to provide technical 
assistance to the eligible agency if the eligible agency is not 
making substantial progress in meeting the purpose of title II.
    Section 244(e) allows the Secretary to withhold funds if 
the Secretary determines that the eligible agency is not making 
sufficient progress.

Section 245. National Institute for Literacy

    Section 245(a) establishes the purpose for the National 
Institute for Literacy.
    Section 245(b) establishes the National Institute for 
Literacy which is referred to throughout this section as the 
Institute.
    Section 245(c) specifies the Institute's duties which are: 
establishing a national electronic data base; coordinating 
support among Federal agencies and at state and local levels 
for literacy; coordinating support of research and development 
on literacy; providing policy and technical assistance to 
Federal, State, and local entities; funding a network of State 
or regional adult literacy resource centers; and other 
activities that improve the literacy delivery system.
    Section 245(d) enables the Institute to award fellowships.
    Section 245(e) establishes the National Institute for 
Literacy Advisory Board which is referred to as the Board 
throughout this section.
    Section 245(f) allows the Institute to accept, administer, 
and use gifts or donations of services, money, or property.
    Section 245(g) enables the boards and the Institute to use 
the United States mail under the same conditions as other U.S. 
Departments or agencies.
    Section 245(h) establishes that the Interagency Group 
appoints and sets the pay of the Director.
    Section 245(i) establishes the applicability of certain 
civil service laws.
    Section 245(j) allows the Institute to hire consultants.
    Section 245(k) requires the Institute to submit a biennial 
report to the Interagency Group and Congress.
    Section 245(l) requires the Institute not to duplicate any 
functions carried out by the Secretaries of Education, Health 
and Human Services, and Labor.
    Section 245(m) allows that any amounts appropriated to the 
Secretaries of Education, Health and Human Services, and Labor 
or any other department that participates in the Institute's 
activities, may be provided to the Institute for such programs.

Section 246. Authorization of appropriations

    Section 246 authorizes appropriations for title II.

                           Subtitle B--Repeal

Section 251. Repeal

    Section 251(a) repeals the Adult Education Act.
    Section 251(b) establishes conforming amendments.

         Title III--Workforce Investment and Related Activities

   Chapter 1--Allotments to States for Adult Employment and Training 
 Activities, Dislocated Worker Employment and Training Activities, and 
                           Youth Activities.

Section 301. General authorization

    The Secretary of Labor shall make an allotment to each 
State that has an approved State plan and a grant to each 
outlying area that complies with the requirements of this 
title. It will enable the State or outlying area to assist 
local areas in providing adult employment and training 
activities, dislocated worker employment and training 
activities, and youth activities.

Section 302. State allotments

            Section 302(a). In general
    The Secretary of Labor is required to allot funds to the 
States for the purpose of carrying out work force investment 
activities according to the following parameters: (1) reserve 
20 percent of said allotment to a State to be used for 
technical assistance, dislocated worker projects, and national 
emergency grant and (2) for each FY in which the total 
appropriation exceeds $1 billion a portion must be reserved for 
application to youth opportunity grants, a portion of that 
reservation must then be applied to youth activities for 
migrant and seasonal farmworkers.
            Section 302(b). Allotment among States
    From the amount of funds made available, no more than \1/4\ 
of 1 percent will be provided to the outlying areas to carry 
out adult employment and training activities for each of the 
fiscal years of 1999 to 2003. The Secretary shall make grants 
available to outlying areas on a competitive basis and pursuant 
to the recommendations of experts in the field of employment 
and training, working through the Pacific Region Educational 
Laboratory. The Secretary may provide up to 5 percent of the 
amount available under the grant to pay the administrative 
costs of the Pacific Region Educational Laboratory. The 
Secretary shall allot all the money not given to outlying areas 
to the States for adult employment and training activities. The 
money is to be distributed to the States by formula, based \1/
3\ on the number of unemployed individuals, \1/3\ based on 
excess unemployment, and \1/3\ based on the number of 
disadvantaged adults. No State shall receive an allotment 
percentage that is less than 90 percent or more than 130 
percent of the allotment percentage that the State received in 
the preceding fiscal year. The Secretary shall reserve not more 
than \1/4\ of one percent to provide assistance to the outlying 
areas to carry out dislocated worker employment and training 
activities for each of the fiscal years 1999 through 2003. The 
Secretary shall make grants available to outlying areas on a 
competitive basis and pursuant to the recommendations of 
experts in the field of employment and training, working 
through the Pacific Region Educational Laboratory. The 
Secretary may provide up to 5 percent of the amount available 
under the grant to pay the administrative costs of the Pacific 
Region Educational Laboratory. The Secretary shall allot all 
the money not given to outlying areas to the States for 
dislocated worker employment and training activities. The money 
is to be distributed to the States by formula, based \1/3\ on 
the number of unemployed individuals, \1/3\ based on excess 
unemployment, and \1/3\ on long-term (15 weeks or more) 
unemployment. For dislocated workers, the Secretary reserves 
0.25 percent for outlying areas and 20 percent for National 
Emergency Grants. The small state minimum is 0.50 percent. 
Wherefore because the amount to be appropriated to the States 
for formula grants shall not be below $1 billion, for each 
fiscal year that more than $1 billion is appropriated, a 
trigger requires the Secretary to reserve that amount exceeding 
$1 billion to provide youth opportunity grants. Of the amount 
exceeding $1 billion, the first $10 million is reserved to 
provide youth activities for farmworkers pursuant to Section 
362. The Secretary shall reserve not more than \1/4\ of one 
percent to provide assistance to the outlying areas to carry 
out youth activities for each of the fiscal years 1999 through 
2003. The Secretary shall make grants available to outlying 
areas on a competitive basis and pursuant to the 
recommendations of experts in the field of employment and 
training, working through the Pacific Region Educational 
Laboratory. The Secretary may provide up to 5 percent of the 
amount available under the grant to pay the administrative 
costs of the Pacific Region Educational Laboratory. After 
determining the amounts to be reserved for youth opportunity 
grants (if any) and outlying areas, the Secretary shall make 
available $15 million to provide youth activities for Native 
Americans and allot the remainder of the amount to the States 
for youth activities. The remainder shall be distributed to the 
States by formula, based \1/3\ on unemployment, \1/3\ based on 
excess unemployment, and \1/3\ on the number of economically 
disadvantaged youth, with the same small-State minimum. No 
State shall receive an allotment percentage that is less than 
90 percent or more than 130 percent of the allotment percentage 
that the State received in the preceding fiscal year. 
Disadvantaged youth means an individual who is not less than 
age 14 and is not more than age 21 and is a low-income 
individual. The small state minimum is 0.50 percent.

Section 303. Statewide partnership

            Section 303(a). In general
    The Governor of a State shall establish and appoint the 
members of a statewide partnership to assist in the development 
of a State plan.
            Section 303(b). Membership
    The statewide partnership shall include the Governor and 
representatives appointed by the Governor. A majority of the 
representatives will be members of business. The remainder of 
the representatives will be chief elected officials, labor 
organization representatives, individualswho have experience 
relating to youth activities, representatives of all forms of 
vocational education, state officials in charge of vocational 
education, two members of each chamber of the State legislature, and 
such other State agency officials as the Governor may designate.
            Section 303(c). Chairman
    The Governor shall select a chairperson from business 
membership for the statewide partnership.
            Section 303(d). Functions
    In addition to developing the State plan, the statewide 
partnership shall advise the Governor on the development of a 
comprehensive statewide work force investment system, assist 
the Governor in preparing the annual report, assist the 
Governor in developing the statewide labor market information 
system, and assist in the monitoring and continuous improvement 
of the performance of the state wide work force investment 
system, including the evaluation of the effectiveness of work 
force investment activities carried out under this subtitle in 
serving the needs of employers seeking skilled employees and 
individuals seeking services.
            Section 303(e). Authority of Governor
    The Governor shall have final authority to determine and 
submit the contents of the State plan. Prior to submission of 
the plan, the Governor shall make copies of the proposed State 
plan available to the public, allow members of the statewide 
partnership and members of the public to make comments for up 
to 30 days from the date that the plan is made available, and 
when submitting the State plan to the Secretary the Governor 
shall include any comments that disagree with the plan.

Section 304. State plan

            Section 304(a). In general
    For a State to be eligible, the Governor must submit to the 
Secretary a 3-year State plan for approval.
            Section 304(b). Contents
    The State plan shall include all descriptions and 
identifications as required.
            Section 304(c). Plan submission and approval
    The State plan shall be considered to be approved by the 
Secretary within 60 days after the submission of the plan, 
unless the Secretary makes a written determination that the 
plan is inconsistent with a specific provision of this title or 
the levels of performance have not been agreed to.
            Section 304(d). Modifications to initial plan
    A State may submit substantial modifications to the State 
plan during the 3-year period of the plan.

      Chapter 2--Allocations to Local Work force Investment Areas

Section 306. Within State allocations

            Section 306(a). Reservations for State activities
    A Governor shall not reserve more than 15 percent of the 
State's total allotment for a fiscal year for statewide work 
force investment activities. A Governor shall not reserve more 
than 25 percent of the State dislocated worker funds for a 
fiscal year for statewide rapid response activities.
            Section 306(b). Within State allocation
    A Governor shall allocate funds to local areas for the 
purpose of providing employment and training activities and 
youth activities. The State shall allocate the appropriate 
funds for adult employment and training activities, dislocated 
worker and employment and training activities, and youth 
activities. In allocating the funds, the State may allot \1/3\ 
on the basis of the relative number of unemployed individuals 
in areas of substantial unemployment (greater than 6.5 
percent), \1/3\ shall be allotted on the basis of the excess 
number of unemployed individuals in each State as compared to 
the total excess number of unemployed individuals (greater than 
4.5 percent), \1/3\ shall be allotted on the basis of the 
number of disadvantaged adults. In allocating the funds, the 
State shall allot \1/3\ on the basis of the relative number of 
unemployed individuals in areas of substantial unemployment in 
each State as compared to the total number of unemployed 
individuals in areas of substantial unemployment in all States. 
One-third shall be allotted on the basis of the relative excess 
number of unemployed individuals in each State as compared to 
the total excess number of unemployed individuals in all 
States. One-third shall be allotted on the basis of the 
relative number of individuals in each State who have been 
unemployed for 15 weeks or more as compared to the total number 
of individuals in all States who have been unemployed for 15 
weeks or more. In allocating the funds, the State may allot \1/
3\ on the basis of the relative number of unemployed 
individuals in areas of substantial unemployment in each State 
as compared to the total number of unemployed individuals in 
areas of substantial unemployment in all States. One third 
shall be allotted on the basis of the relative excess number of 
unemployed individuals in each State as compared to the total 
excess number of unemployed individuals in all States. One 
third shall be allotted on the basis of the relative number of 
disadvantaged youth in each State as compared to the total 
number of disadvantaged youth in all States. In lieu of making 
the allocation as described above for adult employment and 
training activities, a State may distribute not less than 70 
percent in accordance with the previous formula. The remaining 
funds may be distributed on the basis of a formula, developed 
by the statewide partnership and approved by the Secretary as 
part of the State plan, that takes into consideration factors 
relating to excess poverty in local areas or excess 
unemployment above the State average in local areas. In lieu of 
making the allocation as described above for youth activities, 
a State may distribute not less than 70 percent in accordance 
with the previous formula. The remaining funds may be 
distributed on the basis of a formula, developed by the 
statewide partnership and approved by the Secretary as part of 
the State plan, that takes into consideration factors relating 
to excess youth poverty in local areas or excess 
unemploymentabove the State average in local areas. Not more than 15 
percent of the total amount allocated to a local area for a fiscal year 
may be used by the local partnership for the area for the 
administrative cost of carrying out local adult employment and training 
activities, local dislocated worker employment and training activities, 
and local youth activities. The Secretary will develop regulations that 
define the term ``administrative cost'' for purposes of this title. A 
local partnership can transfer, with approval of the Governor, not more 
than 20 percent of adult funding or not more than 20 percent of 
dislocated worker funds allocated to the local area for a fiscal year 
between adult employment and training activities and dislocated worker 
employment and training activities. The chief elected official in a 
local area shall serve as the fiscal agent for the funds allocated to 
the local area, unless the Governor agrees to act as the fiscal agent 
and bear such liability. The fiscal agent shall immediately disburse 
funds at the direction of the local partnership for work force 
investment activities.

Section 307. Local work force investment areas

            Section 307(a). Designation of areas
    The Governor shall designate local work force investment 
areas in the State in accordance with the State plan. A 
Governor shall approve a request for designation as a local 
area from any unit of general local government with a 
population of 500,000 or more. A county with a population of 
500,000 or more may request such designation only with the 
agreement of the political subdivisions within the county with 
populations of 200,000 or more. Single units of general local 
government with populations of 200,000 or more that are service 
delivery areas on the date of enactment of this act shall have 
an automatic right to request designation as local areas. Once 
the boundaries for a local area are determined, the boundaries 
shall not change without the approval of the Governor.
            Section 307(b). Small states
    The Governor of a State determined to be eligible to 
receive a minimum allotment for the first year covered by the 
State plan may designate the State as a single State local 
area. The Governor shall identify the State as a local area in 
lieu of designating various local areas within the State.

Section 308. Local work force investment partnerships and youth 
        partnerships

            Section 308(a). Establishment of local partnership
    Local partnership shall be established in each local area 
of a State and certified by the Governor.
            Section 308(b). Role of local partnership
    The primary role of the local partnership is to set policy 
for the portion of the statewide work force investment system 
within the local area ensuring that the activities meet local 
performance measures that include high academic and skill 
measures and meets the needs of employers and jobseekers.
            Section 308(c). Membership of local partnership
    The Governor shall establish the criteria for the 
appointment of members of the local partnerships for local 
areas and the criteria shall be included in the State plan. The 
local partnership shall elect a chairman from among the 
business members of the partnership. At a minimum, the 
membership of each local partnership shall include a majority 
of members who are representatives of business in the local 
area, such as business owners and business executives, chief 
officers representing local postsecondary educational 
institutions, including vocational and adult education 
providers, chief officers representing labor organizations, 
chief officers representing economic development agencies, and 
may include such other individuals as the chief elected 
official in the local area may determine to be appropriate.
            Section 308(d). Appointment and certification of local 
                    partnership
    The chief elected official in a local area is authorized to 
appoint the members of the local partnership for such area. If 
a local area has more than one unit of general local 
government, the chief elected officials of such units may 
execute an agreement that specifies the respective roles of the 
individual chief elected officials. If the chief elected 
officials can not reach an agreement, the Governor may appoint 
the members of the local partnership from individuals so 
nominated or recommended. The Governor shall annually certify 
one local partnership for each local area in the State. Failure 
of a local partnership to achieve certification shall result in 
reappointment and certification of another local partnership 
for the local area. The Governor may decertify a local 
partnership at any time for fraud or abuse, or failure to carry 
out the functions specified for the local partnership after 
providing notice and an opportunity for comment. If the 
Governor does decertify a local partnership for a local area, 
the Governor may require that a local partnership be appointed 
and certified for the local area pursuant to a plan developed 
by the Governor in consultation with the chief elected 
official. If a State is designated as a local area in the State 
plan, the Governor may designate the statewide partnership to 
carry out any of the necessary functions.
            Section 308(e). Functions of local partnership
    The functions of the local partnership shall include 
developing and submitting a local plan, naming one-stop 
partners and one-stop customer service center operators, 
conducting oversight of the one-stop customer service system, 
modifying the list of eligible providers of training services, 
setting local performance measures, analyze and identify 
current and projected local employment opportunities and the 
skills necessary to obtain such local employment opportunities, 
coordinating the work force investment activities carried out 
in the local area with economic development strategies and 
developing other employer linkages, and assisting the Governor 
in developing the statewide labor market information system.
            Section 308(f). Sunshine provision
    On a regular basis, the local partnership shall have open 
meetings to make available to the public information regarding 
the activities of the local partnership.
            Section 308(g). Other activities of local partnership
    No local partnership may directly carry out or enter into a 
contract for a training service described in section 315(c)(3) 
unless the local partnership provides substantial evidence that 
a private or public entity is not available to provide the 
training service and that the activity is necessary to provide 
an employment opportunity described in the local plan. No 
member of a local partnership may vote on a matter under 
consideration by the local partnership regarding the provision 
of services by such member or that would provide direct 
financial benefit to such member or the immediate family of 
such member, or engage in any activity that may be construed as 
a conflict of interest by the Governor, as specified in the 
State plan.
            Section 308(h). Technical assistance
    The Governor shall provide technical assistance to any 
local area that fails to meet established State or local 
performance measures.
            Section 308(i). Youth partnership
    Each local area shall establish a youth partnership 
appointed by the local partnership with cooperation of the 
chief elected official. Members of the youth partnership shall 
include one or more members of the local partnership, 
representatives of youth service agencies, representatives of 
local public housing authorities, parents of youth seeking help 
under this subtitle, individuals that have experience relating 
to youth activities, representatives of the Job Corps, and 
other individuals as the chairperson of the local partnership 
and the chief elected official deem appropriate. The duties of 
the members of the youth partnership include developing 
portions of the local plan relating to youth, awarding grants 
to eligible providers of youth activities, coordinating youth 
activities in the local area, and other duties as determined by 
the chairman of the local partnership.

Section 309. Local plan

            Section 309(a). In general
    Each local partnership shall develop and submit to the 
Governor a 3-year local plan. The local plan shall be 
consistent with the State plan.
            Section 309(b). Contents
    The local plan shall include all descriptions and 
identifications as required.
            Section 309(c). Plan submission and approval
    A local plan shall be considered to be approved by the 
Governor at the end of the 60-day period beginning on the day 
the Governor receives the plan, unless the Governor makes a 
written determination during the 60-day period that the local 
area has not made acceptable progress in implementing 
corrective measures to correct any deficiencies that may exist, 
or the plan does not comply with this title.
            Section 309(d). Lack of agreement
    If the local partnership and the chief elected official 
cannot agree on the local plan, then the Governor may develop 
the local plan.

       Chapter 3--Work force Investment Activities and Providers

Section 311. Identification and oversight of one-stop partners and one-
        stop customer service center operators

            Section 311(a). General
    The chief elected official and the local partnership may 
develop and implement operating agreements to appoint one-stop 
partners, may designate or certify one-stop customer service 
center operators, and may conduct oversight with respect to the 
one-stop customer service system, in the local area.
            Section 311(b). One-stop partners
    Each entity that carries out a program, services, or 
activities authorized under this act shall make their 
applicable services available to participants through a one-
stop customer service center. Other entities that carry out 
human resource programs may make services available to 
participants through a one-stop customer service center, if the 
local partnership and chief elected official involved approve 
of such participation.
            Section 311(c). Operating agreements
    The one-stop customer service center operator shall enter 
into a written agreement with the local partnership and one-
stop partners concerning the operation of the center. The 
agreement shall be subject to the approval of the chief elected 
official and the local partnership. The written agreement shall 
contain provisions describing the services to be provided 
through the center, how the costs of such services and the 
operating costs of the system will be funded, methods for 
referral of individuals between the one-stop customer service 
center operators and the one-stop partners, the monitoring and 
oversight of activities carried out under the agreement, and 
the duration of the agreement and the procedures for amending 
the agreement.
            Section 311(d). One-stop customer service center operators
    To be eligible to receive funds to operate a one-stop 
center, the entity must be designated or certified as a one-
stop customer service center operator. The server may be a 
public or private entity, or consortium of entities, located in 
the local area. The server may include an institution of higher 
education, a local employment service office, a local 
government agency, a private for-profit entity, a private 
nonprofit entity, or other interested entity. Elementary 
schools and secondary schools shall not be eligible for 
designation or certification as one-stop customer service 
center operators, except that nontraditional secondary schools 
and area vocational education schools shall be eligible for 
such designation or certification.
            Section 311(e). Established one-stop customer service 
                    system
    For a local area where a one-stop center has already been 
established, the localpartnership, the chief elected official, 
and the Governor may agree to appoint, designate, or certify the one-
stop partners and one-stop customer service center operators of such 
system.
            Section 311(f). Oversight
    The local partnership shall conduct oversight and may 
terminate for cause the eligibility of a one-stop customer 
service partner or operator.

Section 312. Determination and identification of eligible providers of 
        training services by program

            Section 312(a). General eligibility requirements
    To be eligible to receive funds and to be identified as an 
eligible provider, a provider's program must meet certain 
requirements. The provider shall be a postsecondary educational 
institution that provides a program that leads to an associate 
degree, baccalaureate degree or certificate, and is eligible to 
receive Federal funds under title IV of the Higher Education 
Act of 1965, or another public or private provider of a 
program.
            Section 312(b). Initial determination and identification
    To be eligible to receive funds, an institution as 
described in Section 312(a) must submit an application, after 
consultation between the State agency and the local 
partnerships in the State. Upon submission of the application, 
the institution shall automatically be initially eligible to 
receive funds for the program. The Governor shall establish a 
procedure to determine the eligibility of other providers to 
receive funds. The provider of the program must at least meet 
minimum performance criteria standards. In determining the 
minimum levels, the Governor shall consider criteria relating 
to the economic, geographic, and demographic factors in the 
local areas in which the provider has a program, the 
characteristics of the population served by the provider, and 
verify the minimum levels of performance by using quarterly 
records. To be initially eligible the provider, as described in 
Section 312(a), needs to submit an application and include 
performance information on program completion rates for 
participants, the percentage of the graduates of the program 
placed in unsubsidized employment in an occupation related to 
the program conducted, retention rates of the graduates in 
unsubsidized employment after 6 months and twelve months after 
completion of the program, the wages received by graduates in 
unsubsidized employment on the first day of employment, 6 
months of employment and 12 months of employment, and program 
cost per participant in the program. The local partnerships may 
require that a provider submit other performance information, 
including information regarding the ability of the provider to 
provide continued counseling and support regarding the 
workplace to the graduates for at least a year after 
graduation. The local partnership may also require higher 
levels of performance than the minimum levels of performance 
needed for initial eligibility to receive funds. The designated 
State agency shall identify eligible providers of training 
services, identify the programs of the providers through which 
the providers may offer training services, and compile a list 
of the eligible providers and programs, accompanied by 
performance information and any other necessary information. 
The local partnership may modify the list by reducing the 
number of eligible providers listed, to ensure that the 
eligible providers carry out programs that provide skills that 
enable participants to obtain local employment opportunities.
            Section 312(c). Subsequent eligibility
    To be eligible to continue to receive funds, a provider 
shall submit the necessary information annually to the 
designated State agency, annually meet the performance criteria 
for the program, and annually meet local performance measures. 
After reviewing the performance information, the designated 
state agency must then identify and list the eligible providers 
and programs. The local partnership may modify the list by 
reducing the number of eligible providers listed, to ensure 
that the eligible providers carry out programs that provide 
skills that enable participants to obtain local employment 
opportunities. The list shall be made widely available to 
participants in employment and training activities, and to 
others, through the one-stop customer service system.
            Section 312(d). Enforcement
    If the designated state agency, after consultation with the 
local partnership involved, determines that a provider 
intentionally supplies inaccurate information, the agency shall 
terminate the eligibility of the eligible provider to receive 
funds for a period of not less than 2 years. If the designated 
State agency, after consultation with the local partnership 
involved, determines that an eligible provider or a training 
services program carried out by an eligible provider fails to 
meet the required performance criteria and performance 
measures, or materially violates any provision of this title, 
the agency may terminate the eligibility of the eligible 
provider to receive funds or take such other action as the 
agency determines to be appropriate. Any provider that has its 
eligibility terminated shall be liable for repayment of funds 
received for the program during any period of noncompliance. 
The Governor shall establish a procedure for an eligible 
provider to appeal a decision that leads to termination of 
eligibility. The procedure will provide for a hearing and 
appropriate time limits for a prompt resolution of the appeal.
            Section 312(e). On-the-job training exception
    On-the-job training providers shall be exempt from the 
requirements of Section 312 (a)-(d). Performance information 
from on-the-job providers shall be collected and disseminated 
by the one-stop customer service center operator in the local 
area.
            Section 312(f). Administration
    The Governor shall designate a State agency to collect and 
disseminate the provider's performance information and carry 
out other duties.

Section 313. Identification of eligible providers of youth activities

    The youth partnership is authorized to award grants on a 
competitive basis, based on the criteria contained in the State 
and local plans, to providers of youth activities, and conduct 
oversight with respect to such providers, in the local area.

Section 314. Statewide work force investment activities

            Section 314(a). In general
    Funds reserved by a Governor for statewide rapid response 
activities shall be used to carry out the statewide rapid 
response activities previously described in Section 306 (a) and 
(b) and may be used to carry out any of the statewide work 
force investment activities described in Section 306(c).
            Section 314(b). Required statewide work force investment 
                    activities
    The statewide rapid response activities shall include a 
provision of rapid response activities, carried out in local 
areas by the State, working in conjunction with the local 
partnership and the chief elected official in the local area. A 
State shall use funds to carry out other statewide work force 
investment activities, namely disseminating the list of 
eligible providers of training services, including eligible 
providers of nontraditional training services, providing a list 
of eligible providers of youth activities, conducting 
evaluations, creating a provision for incentive grants to local 
areas, providing technical assistance to local areas, assisting 
in the establishment and operation of a one-stop customer 
service system, and operation of a fiscal and management 
accountability information system.
            Section 314(c). Allowable statewide work force investment 
                    activities
    A State can use funds for the administration of the work 
force investment activities, identification and implementation 
of incumbent worker training programs, including an employer 
loan program, and carrying out such other activities that are 
authorized under this title. Of the funds reserved for the 
State, no more than 5 percent of the total allotted to the 
State for statewide work force investment activities may be 
used for administrative costs.

Section 315. Local employment and training activities

            Section 315(a). Local employment and training activities
    Funds reserved under part 3(A) or 4(A) of Section 306(b) 
shall be used to carry out employment and training activities 
for adults or dislocated workers.
            Section 315(b). Establishment of one-stop customer service 
                    system
    The one-stop customer service system shall provide core 
services, access to training services, and access to all 
authorized job search, placement, recruitment, and other labor 
exchange services authorized under the Wagner-Peyser Act, such 
as labor market information. At a minimum, the one-stop 
customer service system shall make services accessible at not 
less than one physical customer service center in each local 
area of the State. The customer service system may also make 
services available through a network of customer service 
centers that can provide one or more services to individuals 
and similarly through a network of eligible one-stop partners.
            Section 315(c). Required local activities
    Funds received by a local area for adult and dislocated 
worker employment and training programs shall be used to 
establish a one-stop customer service center, to provide core 
services to participants through the one-stop customer service 
system, and to provide training services. Funds received by a 
local area shall be used to provide core services, which shall 
be available to all individuals seeking assistance through a 
one-stop customer service system. Funds shall be used to 
provide training services to individuals who are adults 
(including dislocated workers) who seek services who are unable 
to obtain employment through the core services or are 
determined to be eligible according to specific criteria 
followed by a one-stop customer service center operator or one-
stop partner. Training services shall be limited to individuals 
who are unable to obtain other grant assistance for such 
services or who require assistance beyond the assistance made 
available under other grant assistance programs. Training 
services may be provided to an individual whose application for 
a Federal Pell Grant is pending, except that if the individual 
subsequently is awarded a Federal Pell Grant, appropriate 
reimbursement shall be made to the local area from the Federal 
Pell Grant. Training services may include employment skill 
training, on-the-job training, job readiness training, and 
adult education services when provided in combination with the 
above services. If funds are limited within a local area for 
adult employment and training activities, priority shall be 
given to disadvantaged adults for receipt of training services. 
Training services shall be provided through eligible providers 
of such services.
    Training services shall be provided in a manner that 
maximizes consumer choice in the selection of an eligible 
provider of such services. Each local partnership, through one-
stop customer service centers, shall make available a list of 
eligible providers with a description of the programs through 
which the providers may offer the training services, a list of 
the names of on-the-job training providers, and performance 
information on eligible providers of training services. Each 
local partnership, through one-stop customer service centers, 
shall make available information regarding local, State, and, 
if appropriate, regional or national, employment opportunities 
and information regarding the job skills necessary to obtain 
the employment opportunities. An individual training account is 
available, in consultation with a case manager, to an 
individual who is eligible to select training services from an 
eligible provider. Upon selection, the operator of the one-stop 
customer service center shall refer the individual to the 
eligible provider of training services, and arrange for payment 
for such services through an individual training account.
            Section 315(d). Permissible local activities
    Funds received by a local area may be used to provide, 
through one-stop delivery, intensive employment-related 
services for participants in training services, customized 
screening and referral of qualified participants in training 
services to employment, and customized employment-related 
services to employers. Funds received by a local area may be 
used to provide supportive services to participants who are 
participating in activities described in this section or youth 
activities under this subtitle, and participants who are unable 
to obtain such supportive services through other programs 
providing such services. In addition, funds received by the 
local area may be used to provide needs-related payments to 
dislocated workers who do not qualify for, or have exhausted, 
unemployment compensation, for the purpose of enablingsuch 
individuals to participate in training services. In addition, a 
dislocated worker who has ceased to qualify for unemployment 
compensation may be eligible to receive needs-related payments only if 
the dislocated worker was enrolled in the training services by the end 
of the 13th week of the worker's unemployment compensation benefits 
period for the most recent layoff that resulted in a determination of 
the worker's eligibility for employment and training activities for 
dislocated workers, or, if later, by the end of the 13th week after the 
worker is informed that a short-term layoff will exceed 6 months. The 
level of a needs-related payment made to a dislocated worker shall not 
exceed the greater of the applicable level of unemployment 
compensation, or if such worker did not qualify for unemployment 
compensation, an amount equal to the poverty line, for an equivalent 
period, which amount shall be adjusted to reflect changes in total 
family income.

Section 316. Local youth activities

            Section 316(a). Purposes
    The purposes of this section are to provide activities to 
youth seeking assistance in achieving academic and employment 
success, to ensure contact for youth with adults, provide 
training opportunities to youth, provide support services for 
youth, provide incentives for recognition and achievement to 
youth, and to provide opportunities for youth in activities 
related to leadership, development, decision making, 
citizenship, and community service.
            Section 316(b). Required elements
    This section requires that funds received by local areas 
shall be used to carry out youth activities that provide 
employment and skills training and supportive services, 
including but not limited to tutoring, alternative secondary 
school services, internships, and community service and 
leadership development activities.
            Section 316(c). Priority
    At least 50 percent of the funds described for use in 
section 316(b) shall be used to provide youth activities to 
out-of-school youth.
            Section 316(d). Prohibitions
    No funds shall be used to develop or implement local school 
system education curricula. No funds shall be used to carry out 
activities that duplicate federally funded activities available 
to youth in the local area. No funds shall be used to provide 
an activity for youth who are not school dropouts if 
participation in the activity would interfere with or replace 
the regular academic requirements of the youth.

                     Chapter 4--General Provisions

Section 321. Accountability

            Section 321(a). Purpose
    The purpose of this section is to provide comprehensive 
performance measures to assess the progress of States and local 
areas in assisting both employers and jobseekers in meeting 
their employment needs, in order to ensure an adequate return 
on the investment of Federal funds for the activities.
            Section 321(b). State performance measures
    In order to receive an allotment, a State must establish 
State performance measures in the State plan. Each State 
performance measure shall consist of an indicator of 
performance for adults and dislocated workers participating in 
activities that are training services and core services, and a 
performance level for youth participating in youth activities. 
The State performance measures shall contain an indicator of 
performance with respect to customer satisfaction of employers 
and participants. The Secretary and each Governor shall reach 
agreement on the levels of performance expected to be achieved 
by the State. The agreement will take into account how the 
levels compare with those in other States and the extent to 
which such levels promote continuous improvement in performance 
by such State and ensure an adequate return on the investment 
of Federal funds. In developing the State performance measures, 
a State shall develop and identify in the State plan State 
performance measures for populations that include, at a 
minimum, disadvantaged adults, dislocated workers, out-of-
school youth, and individuals with disabilities.
            Section 321(c). Local performance measures--In general
    Each Governor shall negotiate and reach agreement with the 
local partnership and the chief elected official in each local 
area on local performance measures. Based on the expectant 
levels of performance, the Governor shall negotiate and reach 
agreement with the local partnership and the chief elected 
official in each local area regarding the levels of performance 
expected to be achieved for the local area. In negotiating and 
reaching agreement on the local performance measures, the 
Governor, local partnership, and chief elected official, shall 
negotiate and reach agreement on local performance measures for 
populations that include, at a minimum, disadvantaged adults, 
dislocated workers, out-of-school youth, and individuals with 
disabilities. The local partnership shall identify these local 
performance measures in the local plan.
            Section 321(d). Report
    Each State that receives an allotment must annually submit 
a report on the progress of the State in achieving local 
performance measures. The annual report shall also include 
information regarding the progress of local areas in achieving 
local performance measures. The report shall also include 
information on the status of State evaluations of work force 
investment activities. The Secretary shall make the information 
contained in the reports available to Congress, the Library of 
Congress, and the public.
            Section 321(e). Evaluation of State programs
    The State shall conduct ongoing evaluations of work force 
investment activities carried out in the State. The evaluation 
shall include longitudinal studies of the work force investment 
activities. The State shall also fund evaluation studies of the 
work force investment activities.The evaluation studies will 
provide an ongoing analysis to statewide and local partnerships to 
promote efficiency and effectiveness in improving employability 
outcomes for jobseekers and competitiveness for employers. In carrying 
out the requirements of this act, the State shall comply with section 
444 of the General Education Provisions Act.
            Section 321(f). Fiscal and management accountability 
                    information systems
    The Governor shall operate a fiscal and management 
accountability information system. In measuring the progress of 
the State on State and local performance measures, a State 
shall utilize quarterly wage records available through the 
unemployment insurance system.
            Section 321(g). Sanctions
    If a State fails to meet 2 or more State performance 
measures for each of the 3 years covered by a State plan, the 
Secretary shall determine whether the failure is attributable 
to adult employment and training activities, dislocated worker 
employment and training activities, or youth activities. The 
Secretary may provide technical assistance to the State to 
improve the level of performance of the State. Upon finding 
that a State fails to meet two or more State performance 
measures for 2 consecutive years, the Secretary may reduce, by 
not more than 5 percent, the allotment given to the State for 
the category of activities to which the failure is 
attributable. The Secretary may use the amount retained as a 
result of a reduction to award an incentive grant or to provide 
technical assistance.
            Section 321(h). Incentive grants
    The Secretary may make incentive grants to States that 
exceed the State performance measures.
            Section 321(i). Definitions
    This section has the definitions for ``former enrollee'' 
and ``graduate''.
            Section 321(j). Other terms
    This section states that the Secretary shall issue 
regulations that identify and define other terms used in this 
title, in order to promote uniformity in the implementation of 
this act.

Section 322. Authorization of appropriations

    This section authorizes such sums as may be necessary for 
adult employment and training activities, dislocated worker 
employment and training activities, and youth activities for 
each of fiscal years 1999-2003.

                         Subtitle B--Job Corps

Section 331. Purposes

    The purposes of the subtitle include maintaining a Job 
Corps program in partnership with the States and local 
communities, establishing standards and procedures for 
selecting enrollees, authorizing the establishment of Job Corps 
centers, and providing other duties and responsibilities.

Section 332. Definitions

    In this subtitle, the following terms are defined: 
applicable local partnership, applicable one-stop customer 
service center, enrollee, former enrollee, graduate, Job Corps, 
Job Corps center, operator, region, and service provider.

Section 333. Establishment

    This section establishes a Job Corps program within the 
Department of Labor.

Section 334. Individuals eligible for the Job Corps

    Outlines the criteria an individual must meet to be 
considered for enrollment in the Job Corps. These criteria 
include: age specifications; income level; and the possession 
of one or more of several characteristics such as being a 
school dropout, homeless, or ``basic skills deficient.''

Section 335. Recruitment, screening, selection, and assignment of 
        enrollees

            Section 335(a). Standards and procedures
    Standards and procedures for recruitment, screening, and 
selection will be prescribed by the Secretary of Labor after 
considering recommendations for Governors, local partnerships, 
and other interested parties. The subsection provides what, at 
a minimum, the Secretary shall prescribe and how and in 
conjunction with whom the standards and procedures will be 
implemented.
            Section 335(b). Special limitations on selection
    Lists limitations such as the applicant's ability to 
function properly in group settings, the individual's basic 
understanding of Job Corps' rules and consequences of failure, 
background checks, and the conditions for accepting applicants 
on probation, parole, or supervised release.
            Section 335(c). Assignment plan
    Requires the Secretary of Labor to establish a plan through 
which enrollees will be placed in Job Corps centers. The plan 
must result first in the ``maximum attainable percentage'' of 
enrollees residing in the State in which the Job Corps center 
is located being placed in the Job Corps center and second the 
``maximum attainable percentage'' of enrollees resining in the 
region in which the Job Corps center is located being placed in 
the center.
            Section 335(d). Assignment of individual enrollees
    Requires that an enrollee be placed in the Job Corps center 
closest to his or her home with only certain exceptions.

Section 336. Enrollment

            Section 336(a). Relationship between enrollment and 
                    military obligations
    Enrollment in the Job Corps shall not relieve any 
individual of obligations under the Military Selective Service 
Act.
            Section 336(b). Period of enrollment
    No individual may be enrolled in the Job Corps for more 
than 2 years, except in a case in which completion of an 
advanced career training program would require an individual to 
participate in the Job Corps for not more than one additional 
year or as the Secretary may authorize in a special case.

Section 337. Job Corps centers

            Section 337(a). Operators and service providers
    Describes the eligibility criteria for entities who want to 
run or provide services to Job Corps centers. Operators and 
Service Providers are selected on a competitive basis.
            Section 337(b). Character and activities
    Job Corps centers may be residential or nonresidential in 
character, but that in any year, no more than 20 percent of the 
Job Corps enrollees may be nonresidential.
            Section 337(c). Civilian conservation centers
    Job Corps centers may include Civilian Conservation 
Centers. Entities selected to operate such a center are chosen 
on a competitive basis, if the center fails to meet such 
national performance standards as the Secretary shall 
establish.
            Section 337(d). Indian tribes
    The Secretary may enter into agreements with Indian tribes 
to operate Job Corps centers.

Section 338. Program activities

            Section 338(a). Activities provided by Job Corps centers
    The activities provided by Job Corps centers include 
vocational training, work experience, and counseling. The 
vocational training must be linked to job opportunities in the 
local area to which the participant intends to return after 
graduation.
            Section 338(b). Advanced career training programs
    Job Corps centers may provide ``advanced career training.'' 
This training may be provided to a participant for 1 additional 
year beyond the participant's period to which the enrollees 
would otherwise be limited. Participants who receive ``advanced 
career training'' are entitled to full Job Corps benefits and 
operators seeking to enroll additional participants in 
``advanced career training'' must demonstrate that their other 
``advanced career training'' participants have achieved a 
reasonable rate of completion and placement.
            Section 338(c). Continued services
    The Secretary shall also provide continued services 
including counseling in the workplace for 12 months following 
graduation.

Section 339. Counseling and job placement

            Section 339(a). Counseling and job placement
    The Secretary shall arrange for counseling and testing for 
each enrollee at regular intervals to measure progress in the 
education and vocational training programs carried out through 
Job Corps.
            Section 339(b). Placement
    The Secretary shall arrange for counseling and testing for 
enrollees prior to their scheduled graduations to determine 
their capabilities and make every effort to arrange to place 
the enrollees in jobs in the vocations for which the enrollees 
are trained or to assist the enrollees in obtaining further 
activities described in this subtitle. The Secretary shall 
utilize the one-stop customer service system to the fullest 
extent possible in this process.
            Section 339(c). Status and progress
    The Secretary shall determine the status and progress of 
enrollees scheduled for graduation and make every effort to 
assure that their needs for further activities described in 
this subtitle are met.

Section 340. Support

            Section 340(a). Personal allowances
    The Secretary shall provide enrollees assigned to Job Corps 
centers with such personal allowances as the Secretary may 
determine to be necessary to meet the needs of the enrollees.
            Section 340(b). Readjustment allowances
    The Secretary shall arrange for a readjustment allowance to 
be paid to eligible former enrollees and graduates.

Section 341. Operating plan

            Section 341(a). In general
    The contract between the Secretary and an entity selected 
to operate a Job Corps center shall serve as the operating plan 
for that center.
            Section 341(b). Additional information
    The Secretary may require the operator to submit such 
additional information as the Secretary may require.
            Section 341(c). Availability
    The Secretary shall make the operating plan, excluding any 
proprietary information, available to the public.

Section 342. Standards of conduct

            Section 342(a). Provision and enforcement
    This section provides for the enforcement of disciplinary 
measures for any violations of the standards of conduct.
            Section 342(b). Disciplinary measures
    The most notable standard of conduct in the ``Zero 
Tolerance Policy'' which tolerates no violence, drugs, alcohol, 
or other illegal disruptive activity. This section also 
addresses drug testing, appeal of decisions made by the Job 
Corps center's director, and certain definitions such as 
``controlled substance'' and ``zero tolerance policy.''
            Section 342(c). Appeal
    A disciplinary measure taken by a Director is subject to 
expeditious appeal in accordance with procedures established by 
the Secretary.

Section 343. Community participation

            Section 343(a). Business and community liaison
    Each Job Corps center must have a ``Business and Community 
Liaison'', designated by the director of the center.
            Section 343(b). Responsibilities
    The responsibility of the ``Liaison'' is to establish and 
develop relationships and networks with those employers and 
one-stop centers that graduates will go to for employment. The 
``Liaison'' must also establish relationships with businesses 
in the community in which the Job Corps center is located.
            Section 343(c). New centers
    Prior to the opening of a new Job Corps center, the 
``Liaison'' shall begin to develop the above mentioned 
relationships and networks at least 3 months prior to the date 
on which the center accepts the first enrollee at the center.

Section 344. Industry councils

            Section 344(a). In general
    Every Job Corps center shall have an industry council 
appointed by the center's director after consultation with the 
Liaison.
            Section 344(b). Industry council composition
    Outlines who may serve on the industry council. A majority 
of members must be from the business community.
            Section 344(c). Responsibilities
    The obligations of the industry council include: 
determining and recommending appropriate vocational training 
curriculum, identify employment opportunities in those areas 
which graduates will go following graduation, and identifying 
the skills those graduates will need to successfully fill those 
positions.
            Section 344(d). New centers
    Industry councils for centers not yet opened must carry out 
their responsibilities for at least 3 months prior to the 
center's opening.

Section 345. Advisory committees

    The Secretary can use ``advisory committees'' whenever the 
Secretary deems outside advice is necessary in running a Job 
Corps center.

Section 346. Experimental, research, and demonstration projects

    This section allows the Secretary to carry out such 
projects and to waive any provisions of this subtitle that may 
interfere with such projects.

Section 347. Application of provisions of federal law

            Section 347(a). Enrollees not considered to be Federal 
                    employees
    Except as otherwise provided in this subsection and in 
section 8143(a) of title 5 of the U.S. Code, Job Corps 
enrollees are not to be considered as Federal employees and 
they are not subject to the provisions of the law relating to 
Federal employment.
            Section 347(b). Adjustments and settlements
    The Secretary can settle a claim against the United States 
resulting from the operation of Job Corps in an amount not 
exceeding $1,500
            Section 347(c). Personnel of the Uniformed Services
    Addresses the status of personnel of the uniformed services 
and states that they shall not be used in computing strength or 
in computing the percentage authorized by law for any grade in 
such services.

Section 348. Special provisions

            Section 348(a). Enrollment
    The Secretary shall ensure that women and men have an equal 
opportunity to participate in the Job Corps program.
            Section 348(b). Studies, evaluations, proposals, and data
    All the studies, evaluations, proposals, and data that are 
produced with Federal money shall become the property of the 
United States.
            Section 348(c). Transfer of property
    Notwithstanding title II of the Federal Property and 
Administrative Services Act of 1949, the Secretary and the 
Secretary of Education shall receive priority by the Secretary 
of Defense for the direct transfer, on a nonreimbursable basis, 
of the property. The property is real and personal property 
under the control of the Department of Defense that is not used 
by the Department.
            Section 348(d). Gross receipts
    Transactions conducted by a private for-profit or nonprofit 
entity that is an operator or service provider for a Job corps 
center shall not be considered to be generating gross receipts.
            Section 348(e). Management fee
    The Secretary shall provide each operator and service 
provider with an equitable and negotiated management fee of not 
less than 1 percent of the amount of the funding provided.
            Section 348(f). Donations
    The Secretary may accept charitable donations on behalf of 
Job Corps.
            Section 348(g). Sale of property
    If the Administrator of General Services sells a Job Corps 
center facility, the Administrator shall transfer the proceeds 
from the sale to the Secretary, who shall use the proceeds to 
carry out the Job Corps program.

Section 349. Management information

            Section 349(a). Financial management information system
    The Secretary shall ensure that each Job Corps center 
operator maintains accurate and complete financial records, 
proper accounts, and remain fiscally responsible.
            Section 349(b). Audit
    Job Corps center financial books and records shall be 
available to the Department of Labor and the Comptroller 
General of the United States and that the Secretary conduct 
such audits or surveys at least once every three years.
            Section 349(c). Information on core performance measures
    The Secretary shall establish performance measures for Job 
Corps centers, the Job Corps program in general, and 
recruiters. The Secretary is then required to collect this 
information and provide a report on the actual performance of 
the Job Corps compared to expected performance levels.
            Section 349(d). Additional information
    This section requires the Secretary to submit certain 
additional items in the above referenced report.
            Section 349(e). Methods
    This section allows the Secretary to collect information 
pursuant to the methods described earlier in subtitle A.
            Section 349(f). Performance assessments and improvements
    The Secretary shall (1) conduct annual assessments of Job 
Corps centers and then (2) based on the assessments, take 
certain steps to improve the centers by providing technical 
assistance, changing the training offered at the center, 
replacing the operator, reducing the capacity of the center, 
relocating the center, or closing the center

Section 350. General provisions

    The Secretary is authorized to distribute information 
regarding the Job Corps, collect or compromise all obligations 
to or held by the Secretary, and expend funds made available 
for the purposes of this subtitle.

Section 351. Authorization of appropriations

    Authorizes such sums as may be necessary for the 
implementation of this subtitle for the fiscal years 1999-2003.

                     Subtitle C--National Programs

Section 361. Native American programs

            Section 361(a). Purpose and policy
    The purpose of this section is to support work force 
investment activities and supplemental services for Indian and 
Native Hawaiian individuals. All programs assisted under this 
section shall be administered in a manner consistent with the 
principles of the Indian Self-Determination and Education 
Assistance Act and the government-to-government relationship 
between the Federal Government and Indian Tribal governments.
            Section 361(b). Definitions
    This section defines ``Indian'', ``Indian tribe'', ``tribal 
organization'', ``Native Hawaiian'', and ``Native Hawaiian 
organization''.
            Section 361(c). Programs authorized
    The Secretary shall make grants to or enter into contracts 
(or cooperative agreements) with the above organizations.
            Section 361(d). Authorized activities
    Funds should be used to meet the needs of Indians or Native 
Hawaiians preparing to enter, reenter, or retain unsubsidized 
employment. Funds shall be used for building a comprehensive 
facility to be utilized by American Samoans residing in Hawaii 
for the co-location of federally funded and State funded work 
force investment activities. The funds shall also be used for 
comprehensive work force investment activities for Indians or 
Native Hawaiians, or supplemental services for Indian or Native 
Hawaiian youth on or near Indian reservations and in Oklahoma, 
Alaska, or Hawaii.
            Section 361(e). Program plan
    In order to receive a grant, an entity must submit a plan 
to the Secretary that describes a 2-year strategy for meeting 
the needs of Indian or Native Hawaiian individuals.
            Section 361(f). Consolidation of funds
    Each group that receives assistance under this plan may 
consolidate the assistance with the assistance received from 
related programs in accordance with the provisions of the 
Indian Employment, Training and Related Services Demonstration 
Act of 1992.
            Section 361(g). Nonduplicative and nonexclusive services
    Nothing in this section should be construed to limit the 
entities described in this Section from being able to 
participate in, or be eligible for, any other State activities.
            Section 361(h). Administrative provisions
    The Secretary shall designate a single organizational unit 
within the Department of Labor that shall have primary 
responsibility for the administration of the activities 
authorized in this section. The Secretary shall consult with 
the entities in this section to establish regulations and 
develop a funding distribution plan. The Secretary may waive 
inconsistent requirements of this title except for requirements 
related to wage and labor standards, worker rights, 
participation and protection of participants, grievance 
procedures, and judicial review. The Secretary shall establish 
a Native American Employment and Training Council. The Council 
shall be composed of individuals who are representatives of the 
entities in this section. The Council shall advise the 
Secretary on all aspects of the operation and administration of 
programs under this section. The Council members shall serve 
without compensation, but the members of the Council shall be 
allowed travel expenses. The Council shall select a chairperson 
from among its members. The Council shall meet not less than 
twice each year. The Secretary can provide technical assistance 
to help improve the activities authorized under this section.

Section 362. Migrant and seasonal farmworker programs

            Section 362(a). In general
    Every 2 years, the Secretary shall make grants to, or enter 
contracts with, eligible entities on a competitive basis to 
carry out migrant and seasonal farmworker programs.
            Section 362(b). Eligible entities
    To be eligible, an entity shall have an understanding of 
the problems of eligible migrants and seasonal farmworkers 
(including dependents), a familiarity with the area to be 
served, and the ability to demonstrate a capacity to administer 
effectively a diversified program of work force investment 
activities (including youth activities) and related assistance 
for eligible migrant and seasonal farmworkers.
            Section 362(c). Program plan
    To be eligible, an entity must submit a 2-year strategy 
plan. The competition for grants shall be conducted every 2 
years, except that the Secretary can waive the competition 
requirement if the previous recipient of the grant performed 
satisfactorily for the previous 2-year period and has handed in 
a satisfactory 2-year plan for the succeeding period. The plan 
needs to describe how the education and employment needs of 
migrants and seasonal farmworkers will be met, how the work 
force investment activities will be carried out, the related 
assistance to be provided, and a description of the performance 
measures to be used.
            Section 362(d). Authorized activities
    Funds made available under this section shall be used to 
carry out work force investment activities (including youth 
activities) and provide related assistance for eligible migrant 
and seasonal farmworkers.
            Section 362(e). Consultation with Governors and local 
                    partnerships
    In making grants and entering into contracts under this 
section, the Secretary shall consult with the Governor and 
local partnerships of the States in which the eligible entities 
will carry out activities.
            Section 362(f). Regulations
    The Secretary shall consult with eligible migrant and 
seasonal farmworker groups in establishing regulations to carry 
out this section, including performance measures for eligible 
entities that take into account the economic circumstances and 
demographics of eligible migrant and seasonal farmworkers.
            Section 362(g). Definitions
    This section gives definitions of ``disadvantaged'', 
``eligible migrant and seasonal farmworkers'', ``eligible 
migrant farmworker'', and ``eligible seasonal farmworker''.

Section 363. Veterans' workforce investment programs

            Section 363(a). Authorization
    The Secretary shall conduct programs to meet the needs for 
work force investmentactivities of service-connected disabled 
veterans, Vietnam era veterans, and recently separated veterans. Public 
agencies and private nonprofit organizations, that the Secretary 
determines to have an understanding of unemployment problems of 
veterans, can conduct the programs under this section. The programs 
shall include activities to enhance other services already provided to 
veterans, activities to provide work force investment activities, and 
outreach and public information activities.
            Section 363(b). Administration of programs
    The Secretary shall administer the programs through the 
Assistant Secretary for Veterans' Employment and Training. The 
Assistant Secretary shall be responsible for the awarding of 
grants and contracts, distributing funds, and consulting with 
the Secretary of Veterans Affairs to ensure that the programs 
supported under this section are coordinated with existing 
programs.

Section 364. Youth opportunity grants

            Section 364(a). Grants
    The Secretary shall make grants to eligible local 
partnerships to provide activities for youth to increase the 
long-term employment of eligible youth. The Secretary can give 
a 1-year grant, and may renew the grant for each of the 4 
succeeding years. The minimum amount for the first year of a 
grant is $10 million.
            Section 364(b). Use of funds
    The funds shall be used to meet the youth activities 
requirements, as well as youth development activities. A local 
partnership shall provide intensive placement services, and 
follow-up services for not less than 24 months after the 
completion of participation in the program, as appropriate.
            Section 364(c). Eligible local partnerships
    To be eligible to receive a grant, a local partnership 
shall serve a community that has a population of at least 
50,000 and has been designated as an empowerment zone or an 
empowerment community, or in a State without an empowerment 
zone or community, the local partnership shall serve a 
community that has been designated as a high poverty area by 
the Governor of the State.
            Section 364(d). Application
    To be eligible to receive funds, a local partnership shall 
submit an application to the Secretary describing the 
activities that the local partnership will provide, a 
description of the performance measures, and a description of 
the community and financial support for the program.
            Section 364(e). Performance measures
    The Secretary shall negotiate and reach agreement with the 
local partnership on performance measures. The Secretary shall 
negotiate and reach agreement with the local partnership 
regarding the levels of performance expected to be achieved by 
the local partnership.

Section 365. Incentive grants

            Section 365(a). In general
    The Secretary may make grants to States that exceed the 
State performance measures established by the Secretary of 
Education and the State performance measures established under 
this title.
            Section 365(b). Priority
    The Secretary shall give priority in awarding incentive 
grants to those States submitting a State unified plan. A State 
that receives an incentive grant shall use the funds to carry 
out innovative programs as determined by the State.

Section 366. Technical assistance

            Section 366(a). Transition assistance
    The Secretary shall provide technical assistance to assist 
States in making transitions from carrying out activities under 
provisions described in section 391 to carrying out activities 
under this title.
            Section 366(b). Performance improvement
    The Secretary shall provide technical assistance to States 
that do not meet a State performance measure for a program year 
and may provide technical assistance to promote the continuous 
improvement of the programs and activities authorized under 
this title. Grants or contracts awarded in excess of $50,000 
for technical assistance shall only be awarded on a competitive 
basis. The Secretary shall reserve not more than 5 percent of 
the amount provided for technical assistance with respect to 
employment and training activities for dislocated workers. 
Funds may be used to train staff to provide rapid response 
services through the dislocated worker office.

Section 367. Demonstration, pilot, multi-service, research, and multi-
        State projects

            Section 367(a). Strategic plan
    Every 2 years, the Secretary shall publish a plan in the 
Federal Register that describes the demonstration and pilot, 
multiservice, research, and multi-State project priorities of 
the Department of Labor concerning employment and training for 
the 5-year period following the submission of the plan. Copies 
of the plan need to be given to the appropriate committees of 
Congress. The plan shall contain strategies to address national 
employment and training problems, among other factors.
            Section 367(b). Demonstration and pilot projects
    The Secretary shall carry out demonstration and pilot 
projects for the purpose ofdeveloping and implementing 
techniques and approaches, and demonstrating the effectiveness of 
specialized methods, in addressing employment and training needs. 
Grants or contracts awarded for carrying out these projects shall only 
be awarded on a competitive basis, except that a noncompetitive award 
may be made in the case of a project that is jointly funded with other 
public or private sector entities that provide a substantial portion of 
the funding for the project. The grants and contracts can only be given 
to entities with recognized expertise in conducting national 
demonstration projects, utilizing state-of-the-art demonstration 
methods, and conducting evaluations of employment and training projects 
or State and local entities with experience in operating or overseeing 
employment and training programs.
            Section 367(c). Multi-service projects
    The Secretary shall carry out multiservice projects. Grants 
or contracts awarded for carrying out these projects shall only 
be awarded on a competitive basis. A grant or contract shall 
not be awarded to the same organization for more than 3 
consecutive years unless such grant or contract is 
competitively reevaluated within such period.
            Section 367(d). Research
    The Secretary shall carry out research projects that will 
contribute to the solution of employment and training problems 
in the United States. Grants or contracts awarded in excess of 
$50,000 for technical assistance shall only be awarded on a 
competitive basis, except that a noncompetitive award may be 
made in the case of a project that is jointly funded with other 
public or private sector entities that provide a substantial 
portion of the funding for the project. Grants or contracts 
shall be awarded only to entities with nationally recognized 
expertise in the methods, techniques, and knowledge of the 
social sciences.
            Section 367(e). Multi-State projects
    The Secretary may carry out multi-State projects through 
grants or contracts. Grants or contracts awarded for carrying 
out these projects shall only be awarded on a competitive 
basis. A grant or contract shall not be awarded to the same 
organization for more than 3 consecutive years unless such 
grant or contract is competitively reevaluated within such 
period.
            Section 367(f). Dislocated worker projects
    The Secretary shall use not more than 5 percent of funds 
made available to carry out demonstration and pilot projects, 
multiservice projects, and multi-State projects, relating to 
the employment and training needs of dislocated workers. Such 
projects shall be administered through the dislocated worker 
office.
            Section 367(g). Peer review
    The Secretary shall use a peer review process to review and 
evaluate all applications for grants and contracts in amounts 
that exceed $100 thousand and review and designate exemplary 
and promising programs.

Section 368. Evaluations

            Section 368(a). Programs and activities carried out under 
                    this title
    In order to improve the management and effectiveness of 
programs and activities carried out under this title, the 
Secretary shall provide for the continuing evaluation of the 
programs and activities.
            Section 368(b). Other programs and activities
    The Secretary may conduct evaluations of other federally 
funded employment-related programs and activities.
            Section 368(c). Techniques
    The evaluations shall utilize appropriate methodology and 
research designs, which may include the use of control groups 
chosen by scientific random assignment methodologies. Such an 
evaluation shall be conducted by a person not immediately 
involved in the administration of the program or activity being 
evaluated.
            Section 368(d). Reports
    A draft and final report of the evaluation shall be 
submitted to the Secretary containing the results of the 
evaluation.
            Section 368(e). Reports to Congress
    No later than 30 days after the completion of the draft 
report, the Secretary shall transmit the draft report to the 
appropriate committees of Congress. No later than 60 days after 
the completion of the final report, the Secretary shall 
transmit the final report to the appropriate committees of 
Congress.

Section 369. National emergency grants

            Section 369(a). In general
    The Secretary can award a national emergency grants to 
provide assistance to workers affected by major economic 
dislocations, to provide assistance to a Governor of a State 
that has suffered an emergency or major disaster, and to 
provide additional assistance for eligible dislocated workers 
in a case in which the State or local partnership has expended 
the funds provided and can demonstrate the need for additional 
funds to provide services for the dislocated workers.
            Section 369(b). Administration
    There shall be a dislocated worker office to coordinate the 
functions of the Secretary relating to national emergency 
grants.
            Section 369(c). Employment and training assistance 
                    requirements
    To be able to receive a grant, an entity must submit an 
application to the Secretary. In this subsection, the term 
``entity'' means a State, a local partnership, an entity 
described in section361(c), an employer or employer 
association, a labor organization, and an entity determined to be 
eligible by the Governor of the State involved.
            Section 369(d). Disaster relief employment assistance 
                    requirements
    Funds shall also be used to provide disaster relief 
employment. An individual shall be eligible to be offered 
disaster relief employment if such individual is a dislocated 
worker, a long-term unemployed individual, or is temporarily or 
permanently laid off as a consequence of the disaster. No 
individual shall be employed for more than 6 months for work 
related to recovery from a single natural disaster.

Section 370. Authorization of appropriations

            Section 370(a). In general
    Native American programs, migrant and seasonal farmworker 
programs, veterans' employment programs, incentive grants, 
technical assistance, demonstration and pilot projects, and 
evaluations are authorized to be appropriated with such sums as 
may be necessary for each of the fiscal years 1999-2003.
            Section 370(b). Reservations
    The Secretary shall reserve not less than $55 million for 
section 361, reserve not less than $70 million for section 362, 
and reserve not less than $7.3 million for section 363. The 
Secretary shall reserve 36.8 percent for section 365, reserve 
25 percent for section 366 (other than section 366(b)(2)), 
reserve 24.2 percent for section 367 (other than 367(f)), and 
reserve 14 percent for section 368.

                       Subtitle D--Administration

Section 371. Requirements and restrictions

            Section 371(a). Benefits
    Individuals in on-the-job training or individuals employed 
in programs carried out under this title shall be compensated 
at the same rates as trainees or employees who are similarly 
situated in similar occupations by the same employer and who 
have similar skills. The wages should not be less than the 
higher of the rate specified in section 6(a)(1) of the FLSA of 
1938 or the applicable State or local minimum-wage law. 
Allowances, earnings, and payments to individuals shall not be 
considered as income for the purposes of determining 
eligibility for any Federal program based on need, other than 
as provided under the Social Security Act.
            Section 371(b). Labor standards
    A participant in a program shall not displace any currently 
employed employee. A specified activity shall not impair an 
existing contract for services or collective bargaining 
agreement. No such activity that would be inconsistent with the 
terms of a collective bargaining agreement shall be undertaken 
without the written concurrence of the labor organization and 
employer concerned. A participant in a specified activity shall 
not be employed in a job when any other individual is on layoff 
from the same or substantially equivalent job with the 
participating employer, when the employer has terminated the 
employment of any regular employee with the intention of 
filling the vacancy so created with the participant, or if the 
participant will infringe in any way on the promotional 
opportunities of currently employed individuals. Federal and 
State health and safety laws shall apply equally to 
participants as it does to other employees. To the extent 
applicable, a State workers' compensation law shall apply 
equally to participants as it does to other employees. 
Participants in the program shall also receive the same 
benefits and working conditions as other employees working a 
similar length of time and doing the same type of work. Members 
of the public shall be provided the opportunity to submit 
comments in regards to the proposed programs.
            Section 371(c). Grievance procedure
    Each State shall establish a procedure for grievances or 
complaints. The procedure will include an opportunity for a 
hearing and be completed within 60 days after the date of the 
filing of the grievance or complaint. The Secretary will 
investigate an allegation of a violation if a decision is not 
reached within 60 days and either party appeals to the 
Secretary, or a decision is made within 60 days and the party 
to which the decision is adverse appeals the decision to the 
Secretary. The Secretary shall make a decision on the appeal no 
later than 120 days after the date of the appeal. Remedies 
shall be limited to suspension or termination of payments to a 
person in violation, to prohibition of placement of a 
participant with an employer that is in violation, to 
reinstatement of an employee, payment of lost wages and 
benefits, and where appropriate, to other equitable relief.
            Section 371(d). Relocation
    No funds shall be used to encourage or induce the 
relocation of a business if the relocation would result in a 
loss of employment for any employee of the business at the 
original location and such original location is within the 
United States. No funds shall be used for customized or skill 
training and related activities after relocation, until the 
date that is 120 days after the date on which such business 
commences operations at the new location, if the relocation 
resulted in the loss of employment for any employee of the 
business at the original location and such original location is 
within the United States. If the Secretary determines that a 
violation has occurred, the Secretary shall require the State 
to repay to the United States an amount equal to the amount 
expended in violation of the relocation prohibition.
            Section 371(e). Limitation on use of funds
    No funds shall be used for employment generating 
activities, economic development activities, activities for the 
capitalization of businesses, investment in contract bidding 
resource centers, or similar activities. No funds shall be 
available to be used for foreign travel.

Section 372. Prompt allocation of funds

            Section 372(a). Allotments and allocations based on latest 
                    available data
    All allotments and allocations shall be based on the latest 
available data and estimates satisfactory to the Secretary. All 
data relating to disadvantaged adults, disadvantaged youth, and 
low-income individuals shall be based on the most recent 
satisfactory data from the Bureau of the Census.
            Section 372(b). Publication in Federal Register relating to 
                    formula funds
    The Secretary shall publish the proposed amount to be 
distributed in the Federal Register.
            Section 372(c). Requirement for funds distributed by 
                    formula
    The funds shall be allotted or allocated within 45 days 
after the date of enactment of the act appropriating the funds, 
except that, if such funds are appropriated in advance, such 
funds shall be allotted or allocated not later than March 31 
preceding the program year for which such funds are to be 
available.
            Section 372(d). Availability of funds
    Funds shall be made available to the chief elected official 
for a local area not later than 30 days after the date the 
funds are made available to the Governor involved, or 7 days 
after the date the local plan for the area is approved, 
whichever is later.

Section 373. Monitoring

            Section 373(a). In general
    The Secretary is authorized to monitor and investigate all 
recipients of financial assistance to ensure that the 
recipients are in compliance with the provisions of this title.
            Section 373(b). Investigations
    The Secretary may investigate any matter the Secretary 
determines to be necessary to determine the compliance of the 
recipients with this title, including the regulations issued 
under this title.
            Section 373(c). Additional requirement
    For the purpose of any investigation or hearing conducted 
under this title by the Secretary, the provisions of section 9 
of the Federal Trade Commission Act apply to the Secretary to 
the same extent as the provisions apply to the Federal Trade 
Commission.

Section 374. Fiscal controls; sanctions

            Section 374(a). Establishment of fiscal controls by States
    Each State shall establish fiscal controls to assure proper 
disbursal of, and accounting for, Federal funds allocated to 
local areas. The Secretary shall prescribe regulations 
establishing uniform cost principles. Each Governor shall 
prescribe and implement procurement standards to ensure fiscal 
accountability and to prevent fraud and abuse. The Governor 
shall also conduct onsite monitoring of each local area to 
ensure compliance. If the Governor determines that a local area 
is not in compliance, the Governor shall require corrective 
action and impose sanctions in the event of failure to take the 
required corrective action. Every 3 years, the Governor shall 
certify to the Secretary that the State has implemented 
procurement standards and monitored local areas to ensure 
compliance with procurement standards. If the Secretary 
determines that the Governor has not met the necessary 
standards, the Secretary shall require corrective action and 
impose sanctions in the event of failure to take the required 
corrective action.
            Section 374(b). Substantial violation
    If the Governor determines that there has been a 
substantial violation, the Governor shall impose a 
reorganization plan. The action taken by the Governor can be 
appealed to the Secretary, who must make a final decision on 
the appeal not later than 60 days after the receipt of the 
appeal. If the Governor fails to take the required action, the 
Secretary shall take such action.
            Section 374(c). Access by Comptroller General
    For the purpose of evaluating and reviewing programs and 
activities established or provided for by this title, the 
Comptroller General shall have access to and the right to copy 
any documents pertinent to programs and activities in the 
possession, custody, or control of a State, a local 
partnership, any recipient of funds under this title, or any 
subgrantee or contractor of such a recipient.
            Section 374(d). Repayment of certain amounts to the United 
                    States
    Funds found not to have been expended in accordance with 
this title shall be repaid to the United States. The Secretary 
can offset repayment of expenditures entitled to the State 
against the amount that a State spends in a manner contrary to 
the requirements of this title. If a local area misspends the 
funds, the Governor may deduct the amount owed to the local 
area during the next program year.
            Section 374(e). Repayment of amounts
    Each recipient of funds, shall be liable to repay the 
misspent funds from funds other than the funds received under 
this title, upon a determination by the Secretary that the 
misexpenditure of funds was due to willful disregard of the 
requirements of this title, gross negligence, failure to 
observe accepted standards of administration, or a pattern of 
misspent funds. No determination shall be made without notice 
and an opportunity for a hearing. The Secretary may take 
factors into consideration in determining whether an imposition 
of sanctions is appropriate.
            Section 374(f). Immediate termination or suspension of 
                    assistance in emergency situations
    In emergency situations, if the Secretary determines it is 
necessary to protect the funds or ensure the proper operation 
of the program or activity involved, the Secretary may 
immediately terminate or suspend financial assistance to the 
recipient if the recipients given prompt notice and an 
opportunity for a hearing within 30 days after termination or 
suspension.
            Section 374(g). Discrimination against participants
    If the Secretary determines that any recipient of funds has 
discharged or discriminated against any participant, the 
Secretary shall, within 30 days after the date of the 
determination, take such action as may be necessary with 
respect to the recipient or the aggrieved individual.
            Section 347(h). Remedies
    The remedies described in this section shall not be 
construed to be the exclusive remedies available for violations 
described in this section.

Section 375. Reports; recordkeeping; investigations

            Section 375(a). Reports
    Recipients are required to keep accurate records. The 
records must be submitted to the Secretary when they are 
requested. Recipients shall maintain standardized records for 
all individual participants. Records must be made available to 
the public upon request, except for information that would 
constitute an invasion of personal privacy and trade secrets, 
or commercial or financial information, that is obtained from a 
person and is privileged or confidential. Recipients may charge 
fees sufficient to cover costs associated with retrieving 
records for the public.
            Section 375(b). Investigations of use of funds
    The Secretary shall conduct, in several States, in each 
fiscal year, investigations of the use of funds received by 
recipients. The Comptroller General may also conduct 
investigations of the use of funds. Neither the Secretary or 
Comptroller General can request a compilation of information 
that the recipient is not otherwise required to compile. In 
carrying out any audit, the Secretary, the Inspector General of 
the Department of Labor, or the Comptroller General shall give 
advance notification to the entity that is to be audited. The 
advance notification should state the overall objectives and 
purposes of the audit, and any extensive recordkeeping or data 
requirements to be met, not later than 14 days (or as soon as 
practicable), prior to the commencement of the audit.
            Section 375(c). Accessibility of reports
    Each State, local partnership, and recipient shall make 
reports readily accessible and meet the requirements set forth 
by the Secretary.
            Section 375(d). Information to be included in reports
    The reports should include relevant demographic 
characteristics, the programs in which participants are 
enrolled and the length of time in which they are engaged in 
the programs, the outcomes of the programs, the specified costs 
of the programs, and information needed to meet the 
requirements of this title. All elements of the information 
required should be defined and reported uniformly.
            Section 375(e). Retention of records
    The Governor of a State shall ensure that requirements are 
established for retention of all records of the State pertinent 
to this title. The State shall retain the records for 2 
subsequent program years. The State shall retain records for 
nonexpendable property that is used to carry out this title for 
a period of 3 years after final disposition of the property.
            Section 375(f). Quarterly financial reports
    Each local partnership shall submit quarterly financial 
reports to the Governor. Each State shall submit to the 
Secretary, on a quarterly basis, a summary of the reports 
submitted to the Governor.
            Section 375(g). Maintenance of additional records
    Each State and local partnership shall maintain records 
that identify any income or profits earned and any costs 
incurred that are otherwise allowable except for funding 
limitations.
            Section 375(h). Cost categories
    Costs only need to be categorized as administrative or 
programmatic costs.

Section 376. Administrative adjudication

            Section 376(a). In general
    An applicant who does not receive financial assistance in 
whole or part under this title may request a hearing before an 
administrative law judge of the Department of Labor. A similar 
hearing can be requested by a recipient for whom a corrective 
action has been required or a sanction has been imposed. Other 
disputes shall be adjudicated under grievance procedures 
established by the recipient or under applicable law other than 
this title.
            Section 376(b). Appeal
    The decision of the administrative law judge shall 
constitute final action by the Secretary, unless there is an 
appeal within 20 days after receipt of the decision. The 
Secretary then has 30 days after the filing of the appeal to 
notify the parties whether the appeal has been accepted for 
review.
            Section 376(c). Time limit
    Any case accepted for review shall be decided within 180 
days after acceptance. If the case is not decided within the 
180-day period, the decision of the administrative law judge 
shall become the final decision of the Secretary.
            Section 376(d). Additional requirement
    The judicial review process described in section 377 shall 
apply to any final action of the Secretary under this section.

Section 377. Judicial review

            Section 377(a). Review
    A party may obtain review of a final order of the Secretary 
in the U.S. Court of Appeals having jurisdiction over the 
applicant or recipient of funds involved, by filing a review 
petition within 30 days after the date of issuance of such 
final order. The questions of law and the findings of fact will 
be limited to what was raised in the original appeal to the 
Secretary and the Court should act upon the petition 
expeditiously.
            Section 377(b). Judgment
    The court shall have jurisdiction to make and enter a 
decree affirming, modifying, or setting aside the order of the 
Secretary in whole or in part. The decision of the Court shall 
be final, subject to certiorari review by the Supreme Court.

Section 378. Nondiscrimination

            Section 378(a). Prohibited discrimination
    There is a prohibition on all forms of discrimination in 
Federal programs and activities under this title. No individual 
shall be excluded from participation in any activity with any 
program or activity because of race, color, religion, sex, 
national origin, age, disability, or political affiliation or 
belief. Participants shall not be employed to carry out the 
construction, operation, or maintenance of any part of any 
facility that is used or to be used for sectarian instruction 
or as a place for religious worship. There is a prohibition on 
discrimination on the basis of participant status. There is 
also a prohibition on discrimination against citizens and 
nationals of the United States, lawfully admitted permanent 
resident aliens, refugees, asylees, and parolees, other aliens 
lawfully present in the United States, and other individuals 
authorized to work in the United States.
            Section 378(b). Action of Secretary
    If the Secretary finds that a State or other recipient of 
funds has failed to comply with the discrimination provisions, 
the State or recipient has a period of time, not to exceed 60 
days, to comply. If there is no compliance, the Secretary may 
refer the matter to the Attorney General or take such other 
action as may be provided by law.
            Section 378(c). Action of Attorney General
    The Attorney General may bring a civil action in any 
appropriate district court against any State or recipient of 
funds if there has been a pattern or practice of 
discrimination.
            Section 378(d). Job Corps members
    Job Corps members shall be considered as the ultimate 
beneficiaries of an education program or activity receiving 
Federal financial assistance.

Section 379. Administrative provisions

            Section 379(a). In general
    The Secretary is allowed to establish certain rules and 
regulations necessary to implement and administer this title.
            Section 379(b). Acquisition of certain property and 
                    services
    The Secretary is allowed to acquire or accept real or 
personal property or services to further the purposes of this 
title.
            Section 379(c). Authority to enter into certain agreements 
                    and to make certain expenditures
    The Secretary is allowed to enter into contracts or 
otherwise allocate or expend funds in furtherance of this 
title.
            Section 379(d). Annual report
    The Secretary shall submit a report to Congress including 
summaries of certain activities and recommendation for 
improvement.
            Section 379(e). Utilization of services and facilities
    The Secretary is allowed to accept the services of other 
departments and agencies of the United States in carrying out 
the purposes of this title.
            Section 379(f). Obligational authority
    Disallows the Secretary from entering into any contracts 
except for those provided for in this title and in such amounts 
as are provided in advance in appropriations Acts.
            Section 379(g). Program year
    Funds are to be made available only on the basis of a 
program year; said program year to begin of July 1. 
Furthermore, this subsection addresses the availability of 
funds for States and localities within a program year.
            Section 379(h). Enforcement of Military Selective Service 
                    Act
    The Secretary shall ensure that no one receiving benefits 
or services under this title is violating the Military 
Selective Service Act.
            Section 379(i). Waivers
    This section allows States to apply for and receive waivers 
of provisions of this title to further or better effectuate the 
purposes of this title.

Section 380. State legislative authority

            Section 380(a). Authority of State legislature
    Nothing in this title shall be interpreted to preclude the 
enactment of State legislation providing for the 
implementation, consistent with the provisions of this title, 
of the activities assisted under this title. Any funds received 
by a State under this title shall be subject toappropriation by 
the State legislature, consistent with the terms and conditions 
required under this title.
            Section 380(b). Interstate compacts and cooperative 
                    agreements.
    If compliance with provisions of this title would be 
enhanced by compacts and cooperative agreements between States, 
the consent of Congress is given to States to enter into such 
compacts and agreements to facilitate such compliance, subject 
to the approval of the Secretary.

             Subtitle E--Repeals and Conforming Amendments

Section 391. Repeals

            Section 391(a). General immediate repeals
    The following provisions are repealed: Section 204 of the 
Immigration Reform and Control Act of 1986, Title II of Public 
Law 95-250, the Displaced Homemakers Self-Sufficiency 
Assistance Act, Section 211 of the Appalachian Regional 
Development Act of 1965, Subtitle C of title VII of the Stewart 
B. McKinney Homeless Assistance Act, Subchapter I of chapter 
421 of Title 49, U.S. Code.
            Section 391(b). Subsequent repeals
    The following provisions are repealed: the JTPA and Title 
VII of the Stewart B. McKinney Homeless Assistance Act, except 
subtitle B and section 738 of such title.

Section 392. Conforming amendments

            Section 392(a). Preparation
    The Secretary, after consultation with the appropriate 
committees of Congress and the Director of the Office of 
Management and Budget, shall prepare recommended legislation 
containing technical and conforming amendments to reflect the 
changes made by this subtitle.
            Section 392(b). Submission to Congress
    The Secretary shall submit to Congress the recommended 
legislation no later than 6 months after the date of enactment 
of this act.

Section 393. Effective dates

            Section 393(a). Immediate repeals
    The repeals made by section 391(a) shall take effect on the 
date of enactment of this act.
            Section 393(b). Subsequent repeals
    The repeals made by section 391(b) shall take effect on 
July 1, 1999.

           Title IV--Workforce Investment-Related Activities

                     Subtitle A--Wagner-Peyser Act

Section 401. Definitions

    Amends section 2 of the Wagner-Peyser Act to reflect the 
definitions of local workforce investment area, local workforce 
investment partnership, and one-stop customer service system.

Section 402. Functions

            Section 402(a). In general
    Amends section 3(a) of the Wagner-Peyser Act to state that 
the Secretary shall assist in the coordination and development 
of a nationwide system of public labor exchange services, 
assist in the development of improvement models for a 
nationwide system, and ensure the provision of re-employment 
services and other activities in which individuals are required 
to participate to receive compensation.
            Section 402(b). Conforming amendments
    Amends section 508(b)(1) of the Unemployment Compensation 
Amendments of 1976.

Section 403. Designation of State agencies

    Amends section 4 of the Wagner-Peyser Act.

Section 404. Appropriations

    Amends section 5(c) of the Wagner-Peyser Act.

Section 405. Disposition of allotted funds

    Amends section 7 of the Wagner-Peyser Act by striking 
certain provisions and adding at the end that all job search, 
placement, recruitment, labor market information, and other 
labor exchange services authorized shall be provided as part of 
the one-stop customer service system established by the State.

Section 406. State plan

    Amends section 8 of the Wagner-Peyser Act by adding that a 
State must submit detailed plans for carrying out the 
provisions of this Act and striking certain provisions.

Section 407. Repeal of federal advisory council

    Repeals section 11 of the Wagner-Peyser Act.

Section 408. Regulations

    Amends section 12 of the Wagner-Peyser Act by striking 
``The Director . . .'' and inserting ``The Secretary''.

Section 409. Labor market information

    Amends the Wagner-Peyser Act by inserting a section on 
Labor Market Information. The section describes the labor 
market information formation and process. In summary, the 
Secretary shall oversee the development of a system of labor 
market information that includes statistical data, state and 
local employment information, technical standards, procedures 
to ensure compatibility and additivity of the data and 
information, procedures to support standardization and 
aggregation of data from administrative reporting systems, 
analysis of data, and wide dissemination of that data through 
programs of research and demonstration, and technical 
assistance for States and localities. The information submitted 
should remain confidential among officers, employees, and 
agents of the Federal Government. The labor market information 
system shall be run through a cooperative governance structure 
involving the Federal Government and States. The Secretary 
shall assign responsibilities within the Department of Labor to 
ensure that all labor market information is collected in a 
consistent manner with appropriate Bureau of Labor Statistics 
standards and definitions and establish procedures to ensure 
proper maintenance of the system. The Secretary shall also 
prepare an annual plan on labor market information systems. The 
Governor of a State shall designate a single State agency to be 
responsible for the establishment and management of the 
statewide labor market information system. Funds are 
appropriated to carry out this section for each of the fiscal 
years of 1999 through 2003.

Section 410. Technical amendments

    Amends various provisions of the Wagner-Peyser Act by 
striking ``Secretary of Labor'' and inserting ``Secretary''.

                Subtitle B--Linkages With Other Programs

Section 421. Trade Act of 1974

    Amends section 241 of the Trade Act of 1974 by adding that 
a State shall submit an appropriate application to the 
Secretary in order to be eligible to receive funds.

Section 422. National Apprenticeship Act

    Amends the National Apprenticeship Act by inserting a 
section on Coordination and Nonduplication. In summary, the 
section states that the Secretary of Labor shall require that 
an appropriate administrative entity in each State enter into 
an agreement with the Secretary regarding the implementation of 
this act.

Section 423. Veterans' employment programs

    Amends Chapter 41 of title 38, United States Code, by 
adding a section on Coordination and Nonduplication. In 
summary, the section states that the Secretary of Labor shall 
require that an appropriate administrative entity in each State 
enter into an agreement with the Secretary regarding the 
implementation of this act.

Section 424. Older Americans Act of 1965

    Amends section 502(b)(1) of the Older Americans Act of 1965 
by striking certain provisions and adding that additional 
descriptions and information must be provided to the Secretary.

         Subtitle C--Twenty-First Century Workforce Commission

    The bill establishes a national commission comprised of 
educators, technology industry leaders, and government 
officials. The commission is charged with studying the causes 
of the technology skills shortage in the labor force, 
evaluating existing programs worldwide, and recommending 
potential solutions in a report to the President and Congress.
    Sec. 431. Short Title--The Twenty-First Century Workforce 
Commission Act.
    Sec. 432. Findings--Outlines the importance and rapid 
growth of the information technology industry in the United 
States, the skills shortage in the workforce, and the need for 
a concerted effort.
    Sec. 433. Definitions--Defines terms used in the act.
    Sec. 434. Establishment of Commission--Establishes the 
commission, outlines the appointment process, and lists the 
members. Sets the commission's meeting schedule.
    Sec. 435. Duties--Provides that the commission shall 
undertake a study of the technology skills shortage in the 
workforce, outline potential solutions, and evaluate the 
efficacy of programs in the United States and foreign countries 
to provide for an increase in the number of skilled information 
technology workers. Provides that the commission shall consult 
with and facilitate the exchange of information with federal, 
state, and local governments. Provides that the commission 
shall issue a report to the President and Congress outlining 
its findings and recommendations within a year.
    Sec. 436. Powers--Permits the commission to hold hearings, 
gather information from Federal agencies, use the mails, and 
accept gifts of services and property.
    Sec. 437. Personnel Matters--Outlines issues pertaining to 
staff, compensation, and procurement of services.
    Sec. 438. Termination--Provides for the termination of the 
commission 90 days after submission of its report.
    Sec. 439. Authorization--Provides an authorization of 
appropriations.

                      Title V--General Provisions

Section 501. State unified plans

            Section 501(a). Purpose
    The purpose of this section is to permit and encourage the 
submission of State unified plans, to assure coordination of 
and to avoid duplication between the activities carried out 
through the one-stop customer service systems.
            Section 501(b). Definitions
    This section defines ``appropriate Secretary'', 
``appropriate State agency'', and ``system program''.
            Section 501(c). State unified plan
    A State may develop and submit to the appropriate 
Secretaries a State unified plan for 2 or more of the system 
programs.
            Section 501(d). Contents
    In a State that decides to develop a State unified plan, 
the plan shall contain planning provisions and planning 
requirements. The plan also needs to contain a description of 
the systems of the plan and an assurance that the funds 
appropriated to carry out the plan will be used to supplement 
and not supplant other Federal, State, and local public funds 
expended to carry out the activities.
            Section 501(e). Development
    The provisions of the plan shall be developed by the 
statewide partnership. The Governor and the head of the 
appropriate State agency have the final authority to determine 
the content of the portion of the State unified plan that 
relates to the system program.
            Section 501(f). Submission
    After the heads of the appropriate State agencies approve 
the portions of the State unified plan that relate to their 
system programs, the State unified plan shall be submitted to 
the appropriate Secretaries by the Governor and an eligible 
agency, in the case of a plan relating to the system program of 
the eligible agency.
            Section 501(g). Approval by the appropriate Secretaries
    Each of the appropriate Secretaries shall have the 
authority to approve the section of the State unified plan 
relating to the system program for which the Secretary has 
authority. Upon the approval of the Secretary, the portion of 
approved plan shall be implemented by the State pursuant to the 
State unified plan. The plan shall be considered approved by 
the appropriate Secretary 60 days after the Secretary received 
the plan, unless the Secretary makes a written determination, 
during the 60 day period, that the portion of the plan does not 
substantially reflect the planning requirements of the 
appropriate Federal statutes authorizing the system programs.

Section 502. Transition provisions

            Section 502(a). In general
    The Secretary of Education or Labor, as appropriate, shall 
take the appropriate steps to provide for the orderly 
transition to the authority of this act from any authority 
under provisions of law to be repealed under subtitle E of 
Title I, subtitle B of title II, or subtitle E of title III, or 
any related authority.
            Section 502(b). Extended transition period
    If, on or before July 1, 1999, a State has enacted a State 
statute that provides for the establishment or conduct of 3 or 
more of the programs, projects, or activities described in this 
section, the State shall not be required to comply with 
provisions of this Act that conflict with the provisions of 
such State statute relating to such programs, projects, or 
activities for the period ending 3 years after the effective 
date specified in section 503(a). After the 3 year period, the 
Secretary of Education or Labor, as appropriate, shall allow a 
State to continue operating under such State statute if the 
State is meeting the State performances measures of the State.

Section 503. Effective date

            Section 503(a). In general
    Except as otherwise provided in this act, this act takes 
effect on July 1, 1999.
            Section 503(b). Early implementation
    At the option of the State, the Governor and the chief 
official of the eligible agencies in the State may use funds 
made available, or any related authority to implement this act 
at any time prior to July 1, 1999.

                         VIII. Additional Views

               ADDITIONAL VIEWS OF SENATOR PAUL WELLSTONE

    In reauthorizing the Adult Education Act, the Workforce 
Investment Partnership Act allows continued Federal support for 
literacy training of parents in a family context. Parents' 
increased skills can enrich and make more productive not only 
their own lives, but those of their children as well. Congress 
has recognized and promoted the value and importance of family 
literacy through a variety of legislative provisions. Family 
literacy has in turn clearly demonstrated its effectiveness, 
including through a multi-generational approach such as in the 
Even Start family literacy program. Parents begin reading to 
their children and support their education. Children whose 
parents participate are less likely to require special 
education or to be held back in school. Family literacy is 
beginning to build an inspiring tradition of success to replace 
the threat of failure among difficult-to-serve populations, 
including in Minnesota communities such as Rochester and South 
St. Paul/Inver Grove Heights.
    Family literacy services are included in the array of adult 
education and literacy services supported in the bill. It is my 
hope that the Secretary of Education will take into account the 
unique contributions and outcomes of family literacy programs 
in developing performance measures to assess success rates in 
adult literacy. Family literacy services should be included in 
national and state leadership activities. Government entities 
carrying out adult education and literacy programs in the bill 
should work with organizations and institutions with a record 
of providing effective training and technical assistance to 
family literacy providers to assure use of the most appropriate 
kind of technical assistance, materials and information 
regarding best practices, as well as program evaluation.
    Regarding Federal job training programs, the bill 
appropriately moves the Federal workforce program delivery 
infrastructure in the direction in which the State of Minnesota 
has moved decisively in recent years: toward a system of one-
stop delivery centers. The bill generally prohibits new local 
partnerships, successors to the present system's private 
industry councils (PICs), from directly providing training 
services. This bill wisely recognizes, however, the important 
role that local partnerships should and will play in providing 
``core'' services, described in Section 315. These services 
include providing an array of information services, outreach, 
intake, orientation, skills assessment, case management, job 
search and placement, as well as other supportive services. The 
bill also correctly allows the Governor of a State to waive the 
prohibition against delivery of training services by a local 
partnership in cases where necessary services cannot be 
provided by another available public or private entity. 
Experience in Minnesota and other States indicates that a 
number of PICs have directly provided a range of services 
effectively and without conflict of interest, and that it may 
be necessary and beneficial to continue some such practices, 
especially in certain rural areas.
    Finally, it is my hope to include in the bill before final 
Senate passage provisions to update the definition of the 
population to be served by Veterans' Job Training programs, as 
well as to allow the continued operation of rural concentrated 
employment programs (CEPs). The bill reconstitutes current JTPA 
veterans' programs as Veterans' Workforce Investment Programs. 
It is important that the bill clearly authorize the Department 
of Labor to serve Gulf War veterans and homeless veterans, 
among others, consistent with current practice in certain other 
Federal programs. Rural CEPs serve areas of high unemployment 
in four States and meet a particular need long recognized by 
Congress.
                                                    Paul Wellstone.

                ADDITIONAL VIEWS OF THE MINORITY MEMBERS

    This legislation represents a significant step forward in 
reforming employment and training programs. It will truly 
expand career options, encourage greater program innovation, 
and facilitate cooperative efforts among business, labor, 
education, and State and local governments. We wish to commend 
Chairman Jeffords and Senator DeWine for the genuine spirit of 
bipartisanship throughout the process which has made this 
landmark legislation possible. While there are several 
significant issues that remain to be resolved, the Chairman has 
assured us that they will be worked out before the bill goes to 
the floor in the same spirit of bipartisanship. Based on that 
assurance, we have supported the legislation unanimously as a 
Committee.
    An educated work force has become the most valuable 
resource in the modern economy. Our Nation's long term economic 
vitality depends on the creation of an effective, accessible, 
and accountable system of job training and career development 
which is open to all our citizens. Schools must assume more 
responsibility for preparing their students to meet the 
challenges of the 21st century workplace. Disadvantaged adults 
and out-of-school youth need the opportunity to develop job 
skills which will make them productive members of the 
community. Dislocated workers who have been displaced by the 
rapid pace of technological change deserve the chance to pursue 
new careers. The way in which we respond to these challenges 
today will determine how prosperous a nation we are in the next 
century.
    The importance of highly developed employment skills has 
never been greater. The gap in earnings between skilled and 
unskilled workers is steadily widening. For those who enter the 
work force with good academic training and well-developed 
career skills, this new economy offers almost unlimited 
potential. However, for those who lack basic proficiency in 
language, math and science and who have no career skills, the 
new economy presents an increasingly hostile environment.
    The Workforce Investment Partnership Act will provide 
employment training opportunities for millions of Americans. It 
responds to the challenge of the changing workplace by enabling 
men and women to both acquire the skills necessary to enter the 
work force and upgrade their skills throughout their careers. 
It will provide access to the educational tools that will 
enable them not only to keep up, but to get ahead.
    The important role President Clinton has played in bringing 
about this dramatic reform of our current job training system 
needs to be acknowledged. He has consistently emphasized the 
need for greater individual choice in the selection of career 
paths and training providers. S. 1186 incorporates the key 
principles of the President's G.I. Bill for America's Workers, 
such as individual empowerment through skill grants and good 
information to guide customers in making training choices. We 
are also pleased that the legislation builds on important 
reforms that the Department of Labor has undertaken in recent 
years, such as the establishment of One-Stop Career Center 
systems in nearly two-thirds of the States and the development 
of quality, customer-focused labor market information.
    The Workforce Investment Partnership Act is designed to 
provide easy access to state of the art employment training 
programs which are geared to real job opportunities in the 
community. The cornerstones of this new system are individual 
choice and quality labor market information. In the past, men 
and women seeking new careers often did not know what job 
skills were most in demand and which training programs had the 
best performance record. All too often, they were forced to 
make one of the most important decisions in their lives based 
on anecdotes and late-night advertisements.
    No training system can function effectively without 
accurate and timely information. The frequent unavailability of 
quality labor market information is one of the most serious 
flaws in the current system. In order to make sound career 
choices, prospective trainees need both detailed information on 
local career opportunities and performance-based information on 
training providers. That information will nowbe available at 
easily accessible one stop employment centers, along with career 
counseling and other employment services. The legislation places a 
strong emphasis on providing information about what area industries are 
growing, what skills those jobs require, and what earning potential 
they have. Extensive business community participation is encouraged in 
developing this information. Once a career choice is made, the 
individual must still select a training provider. At present, many 
applicants make that choice with a little or no reliable information. 
Under the bill, each training provider will have to publicly report 
graduation rates, job placement and retention rates, and average 
earnings of graduates.
    Because of the extensive information which will be 
available to each applicant, real consumer choice in the 
selection of a career and of a training provider will be 
possible. The legislation establishes individual training 
accounts for eligible participants, which they can use to 
access career education and skill training programs. Men and 
women seeking training assistance will no longer be limited to 
a few predetermined options. As long as there are real job 
opportunities in the field selected and the training provider 
meets established performance standards, the individual will be 
free to choose which option best suits his or her needs.
    This legislation will organize the delivery of services 
more effectively and utilize resources more creatively. There 
will be a significant consolidation of the dozens of narrowly 
focused programs which currently exist into several broad 
funding streams for the distinct populations needing 
assistance. Consolidation makes sense in those areas in which 
multiple programs are currently serving the same population. 
However, it is equally important to preserve separate streams 
of funding for distinct populations. The programmatic needs of 
middle age dislocated workers with extensive employment 
histories are quite different from the services required by 
young adults with limited skills and no work histories. 
Similarly the problems faced by out-of-school youth require 
very different solutions than those confronting the adult 
population. Ensuring that services which are designed to meet 
the needs of each of these populations are available is a 
Federal responsibility. For that reason, this legislation 
maintains distinct programs with separate appropriations for 
dislocated workers, disadvantaged adults, and at risk youth.
    The Workforce Investment Partnership Act gives State and 
local government significantly enhanced discretion in designing 
their training systems. If this reform is to be truly 
responsive to those at the community level who are in need of 
services, it is essential that the authority which the Federal 
Government delegates to the States be exercised through a broad 
based decisionmaking process. Governors, State legislatures, 
mayors, and other county and local officials should all have a 
meaningful voice in the design of a State's new job training 
system and they will under this legislation. Local boards of 
business, labor, education and community leaders are essential 
to insuring that programs meet the real world needs of 
participants, and that the training programs correspond to 
labor market demands. In doing so, it is important that these 
boards carry out ``intermediary'' or ``brokering'' functions to 
help program participants find and sustain employment. The 
success demonstrated in Massachusetts has been due in large 
measure to active participation by local business leaders with 
the regional employment boards. S. 1186 strengthens the role of 
such boards, giving them major new policy making 
responsibilities. These boards will play the primary role in 
assuring that training programs address the actual employment 
needs of area businesses.
    An essential element of the new system we have designed is 
accountability. As noted earlier, each training provider will 
have to monitor and report the job placement and retention 
achieved by its graduates and their average earnings. Only 
those training programs that meet an acceptable performance 
standard will remain eligible for receipt of public funds. The 
same principle of accountability is applied to those agencies 
administering State and local programs. They are being given 
wide latitude to innovate under this legislation. But they too 
will be held accountable if their programs fail to meet 
challenging performance targets.
    There is no challenge facing America today which is tougher 
or more important than providing at-risk, often out-of-school, 
youth with meaningful education and employment opportunities. 
Far too many of our teenagers are being left behind without the 
skills needed to survive in the 21st century economy. We are 
particularly proud of the commitment which the Workforce 
Investment Partnership Act makes to these young men and women. 
This legislation authorizes a new initiative focused on 
teenagers living in the most impoverished communities in 
America. These areas range from the poorest neighborhoods of 
our largest cities to impoverished rural counties. Each year, 
the Secretary of Labor will award grants from a $250 million 
fund to innovative programs designed to provide opportunities 
to youth living in these areas. The programs will emphasize 
mentoring, strong links between academic and worksite learning, 
and job placement and retention. It will encourage broad based 
community participation from local service agencies and area 
employers. These model programs will, we believe, identify the 
techniques which are most effective in reaching those youth at 
greatest risk and improving the quality of life in the 
communities in which they reside.
    This legislation also makes a strong commitment to creating 
opportunities for disadvantaged youth through career 
preparation programs. These programs include rigorous applied 
learning in a variety of venues, learning by doing, mentoring, 
community service, work experience, summer work, internships, 
career exploration, career pathways to college and ultimately 
career ladder employment with follow up. The allocation of 
resources between year-round programs and summer jobs will be 
decided in each community.
    The ability of local workforce partnerships and local youth 
partnerships to address effectively the needs of disadvantaged 
youth would be further strengthened with the addition of 
leading local educators, such as the local superintendent of 
schools, to those boards.
    The Workforce Investment Partnership Act includes titles 
reauthorizing major vocational education and adult literacy 
programs. Both programs will continue to be separately funded 
and independently administered. We have incorporated them in 
the Workplace Act because they must be integral components of 
any comprehensive strategy to prepare to meet the demands of 
the 21st century workplace. Students who participate in 
vocational education must be provided with broad based career 
preparation courses which meet both high academic standards and 
teach state of the art technological skills. Adult literacy 
programs are essential for the 27 percent of the adult 
population who have not earned a high school diploma or its 
equivalent. Learning to read and communicate effectively are 
the first steps to career advancement. In vocational education 
and adult literacy, we are placing the same emphasis on program 
accountability which we did in job training.
    The Workforce Investment Partnership Act will make it 
possible for millions of Americans to gain the skills needed to 
compete in a global economy. In doing so, we are also enabling 
them to realize their personal American dreams.
    We greatly appreciate the responsiveness of Chairman 
Jeffords and Senator DeWine in addressing our concerns as the 
bill was being developed. However, there remain several issues 
that need to be resolved before the legislation is taken to the 
floor.

                      Title V--State Unified Plans

    The most serious remaining issue is Title V, which was 
added to the legislation late in the process and therefore did 
not receive the same level of scrutiny as other provisions. Our 
disagreement is not with the concept of a unified State plan 
for employment training, vocational education, and adult 
education; but with vague and open-ended language used to 
describe it. Many who have read the current Title V interpret 
it as allowing States to escape compliance with the substantive 
plan requirements contained in Titles I, II, and III. Such an 
interpretation would undo the structural safeguards that were 
intentionally inserted in those Titles to address substantial 
Federal concerns for the integrity of each program. This is 
certainly not the intent of Title V.
    The Workforce Investment Partnership Act intends to 
preserve the fiscal and operational independence of job 
training, vocational education, and adult education programs. 
The intent is to foster greater coordination among independent 
programs, not to blur their distinct missions. The language of 
Title V must be rewritten to make that intent explicit and to 
preclude more sweeping interpretations.
    State unified plans are intended to assist States in 
exercising the flexibility which is afforded to them under 
Titles I, II, and III of this Act and under the related Acts in 
a manner which will facilitate coordination among these 
independent programs and thus improve the overall quality of 
services. Therefore, this section permits States to merge the 
processes for developing the plans required by two or more of 
the Titles in this Act into a single planning process. The 
unified plan may also include one or more of the other listed 
related programs. The unified planning process created must 
substantially reflect the procedural requirements of the 
individual planning processes set forth in statute. Title V 
does not allow a State to evade the substantive program 
requirements set forth in statute for each independent program. 
A State still must comply with all specific statutory plan 
requirements for each of the programs included in the unified 
plan, except those requirements related solely to the process 
for developing a plan within a State. The structure and 
operation of the programs established by Titles I, II, and III 
must remain separate and distinct, and funds appropriated by 
Congress for each of these individual programs must be expended 
only for the purposes for which the funds were appropriated.

                Title V--Extended Transition for States

    Additionally, section 502 of the bill contains language 
designed to assist States which, prior to July 1, 1997, enacted 
comprehensive workforce system statutes utilizing 
administrative structures which conflict with the provisions of 
this Act. It would allow such States to continue to utilize 
those conflicting administrative structures for 3 years. This 
section is intended to apply to State and local workforce 
boards which have a composition different from the State and 
local partnerships provided for in this Act, and to service 
delivery areas which are regional rather than local.
    However, the language in the current bill goes far beyond 
that intent. As written, it would allow the affected States to 
ignore substantial portions of the Workforce Investment 
Partnership Act. The scope of the section should be 
substantially narrowed to cover only those issues relating to 
the membership of workforce boards and the size of service 
delivery areas which gave rise to it. Any extension beyond the 
3-year transition period should require a waiver by the 
appropriate Secretary.

                          Vocational Education

    There has been a great deal of concern expressed within the 
educational community regarding the substitution of ``eligible 
agency'' for the ``State Board of Vocational Education'' as the 
entity responsible for developing the State plan and 
administering vocational education within the State. We share 
the concern. Reliance on the State Board mechanism in current 
law insures that those individuals most experienced in and most 
focused on vocational education will have a primary role in 
guiding the program. There is no compelling reason for this Act 
to upset the well-established system currently used to oversee 
vocational education at theState level. At best, such a change 
will create unnecessary uncertainty. At worse, it will be disruptive 
and counter-productive. There are far better ways to provide for the 
enhanced coordination between job training programs and vocational 
education programs which we would all like to see.
    In order to ensure state-of-the-art vocational programming, 
it is essential to establish an on-going dialogue between the 
business and educational communities regarding the (1) the 
career opportunities which will be available for students after 
graduation, and (2) the skill standards which a student must 
master in order to qualify for those careers. The most 
effective programs will be those which effectively integrate 
academic learning with employment training that prepares a 
student to deal with all aspects of the industry he or she 
desires to enter. We would like to see a greater emphasis on 
coordination between those involved in job training and those 
in vocational education on these important issues.
    We are also concerned that the authorization for national 
activities is too restrictive. The current language authorizes 
the appropriations of such sums as necessary for national 
research, assessment, activities, and incentive grants. 
However, the bill contains provisions, inconsistent with this 
authorization, that reserves 0.65 percent of the appropriation 
for basic grants for incentive grants and 0.65 percent for all 
other national activities. The reserves would result in a 50 
percent cut in funding available for national research, 
evaluation, and technical assistance, compared to current 
levels. States and localities will need national guidance and 
assistance to develop and institute the complex new performance 
measurement systems contained in the Act, as well as improve 
the quality of their programs. A 0.65 percent reserve on the 
national research, evaluation, and activities will impede the 
effective implementation of the Act.

                             gender equity

    We are pleased by the emphasis throughout the Act which is 
given to the importance of gender equity in vocational 
education, to the preparation of students and trainees for 
nontraditional employment, and to addressing the special need 
for services by teen parents and displaced homemakers. However, 
we would like to see a stronger guarantee in the legislation 
that sufficient program dollars will actually be expended to 
carry out that intent. In our view, States should be required 
at least to maintain their current expenditure levels in 
furtherance of these worthy goals. It would clearly violate the 
intent of this Act if a State were to view the elimination of 
express set-asides as an excuse to reduce its commitment to 
gender equity in programming.
    Title I of the bill identified ``participation in and 
completion of nontraditional vocational education programs'' as 
a performance measure. While we certainly concur with the 
intent of a performance measure focused on breaking down gender 
stereotyping in career preparation, the current language is 
unclear and susceptible to misinterpretation. It should be 
changed to ``participation in and completion of vocational 
education programs which prepare students for nontraditional 
employment.''

                  summer youth employment and training

    This legislation provides for the continuation of summer 
jobs as an essential element of the youth grant. For many 
youth, summer jobs are their first opportunity to work and 
their first critical step in learning the work ethic. The 
summer jobs program also provides many youth with quality 
learning experiences and follow up during the school year.
    The summer jobs program is particularly critical to 
minority youth. An estimated third of summer jobs held by 
African-American youth and a fourth of summer jobs held by 
Hispanic youth come from the summer jobs program.
    Studies by the Department of Labor's Office of the 
Inspector General and research by Westat, Inc. have reported 
positive findings, concluding that work sites are well-
supervised and disciplined, that jobs provide useful work, that 
the education component teaches students new skills that they 
can apply in school, and that students learn the value of work. 
We believe that the summer youth jobs program meetsperformance 
expectations and needs to continue to be available on a significant 
scale with sufficient funding. We are pleased that the Committee report 
recognizes the critical importance of the summer youth program by 
requiring that it be a part of each local area's youth program and 
letting local communities determine the number of summer jobs to be 
created. We believe that this intent should be more clearly stated in 
the legislation.
    S. 1186 requires that 50 percent of all of youth 
participants, including those in the summer jobs component, be 
out-of-school. This would require significant changes from the 
previous composition of summer programs. During the summer of 
1996, about 83 percent of the 378,000 youth who participated in 
the summer jobs program were full-time students. We believe the 
50 percent out-of-school requirement should not apply to summer 
youth employment.

                     preservation of jtpa language

    Two safeguards in the current JTPA legislation have been 
imprudently omitted from the Workforce Investment Partnership 
Act. First, the bill should retain a long-standing provision of 
job training legislation which ensures advance notification to 
labor organizations whose members would be substantially 
affected by proposed training activities in the same area and 
affords them the opportunity to comment on those proposals. 
Second, language ensuring that job training funds are not used 
to assist, promote, or deter union organizing should be 
retained.
    Finally, we believe that it was an oversight that labor 
representatives were not included on the Twenty-First Century 
Workforce Commission and urge that they be included here as 
they are on the State and local partnerships.
    We hope that many of these concerns will be resolved before 
the legislation is voted on by the Senate.

                                   Edward M. Kennedy.
                                   Christopher Dodd.
                                   Barbara Mikulski.
                                   Patty Murray.
                                   Paul Wellstone.
                                   Tom Harkin.
                                   Jeff Bingaman.
                                   Jack Reed.

                      IX. 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):

                           Wagner-Peyser Act

          * * * * * * *
    Section 1. * * *
          * * * * * * *
    Sec. 2. For purposes of this Act--
          (1) the term ``chief elected official [or 
        officials]'' has the same meaning given that term under 
        the [Job Training Partnership Act] Workforce Investment 
        Partnership Act of 1997.
          (2) the term ``local workforce investment area'' 
        means a local workforce investment area designated 
        under section 307 of the Workforce Investment 
        Partnership Act of 1997;
          (3) the term ``local workforce investment 
        partnership'' means a local workforce investment 
        partnership established under section 308 of the 
        Workforce Investment Partnership Act of 1997;
          (4) the term ``one-stop customer service system'' 
        means a one-stop customer service system established 
        under section 315(b) of the Workforce Investment 
        Parternship Act of 1997;
          [(2) the term ``private industry council'' has the 
        same meaning given that term under the Job Training 
        Partnership Act;]
          [(3)] (5) the term ``Secretary'' means the Secretary 
        of Labor[;]; and
          [(4) the term ``service delivery area'' has the same 
        meaning given that term under the Job Training 
        Partnership Act; and]
          [(5)] (6) the term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, and the Virgin Islands.
    Sec. 3. [(a) The United States Employment Service shall 
assist in coordinating the State public employment services 
throughout the country and in increasing their usefulness by 
developing and prescribing minimum standards of efficiency, 
assisting them in meeting problems peculiar to their 
localities, promoting uniformity in their administrative and 
statistical procedure, furnishing and publishing information as 
to opportunities for employment and other information of value 
in the operation of the system, and maintaining a system for 
clearing labor between the States.]
    (a) The Secretary shall--
          (1) assist in the coordination and development of a 
        nationwide system of public labor exchange services, 
        provided as part of the one-stop customer service 
        systems of the States;
          (2) assist in the development of continuous 
        improvement models for such nationwide system that 
        ensure private sector satisfaction with the system and 
        meet the demands of jobseekers relating to the system; 
        and
          (3) ensure, for individuals otherwise eligible to 
        receive unemployment compensation, the provision of 
        reemployment services and other activities in which the 
        individuals are required to participate to receive the 
        compensation.
    (b) It shall be the duty of the [Secretary of Labor] 
Secretary to assure that unemployment insurance and employment 
service offices in each State, as appropriate, upon request of 
a public agency administering or supervising the administration 
of a State plan approved under part A of title IV of the Social 
Security Act, of a public agency charged with any duty or 
responsibility under any program or activity authorized or 
required under part D of title IV of such Act, or of a State 
agency charged with the administration of the food stamp 
program in a State under the Food Stamp Act of 1977 (7 U.S.C. 
2011, et seq.), shall (and, notwithstanding any other provision 
of law, is authorized to) furnish to such agency making the 
request, from any data contained in the files of any such 
office, information with respect to any individual specified in 
the request as to (1) whether such individual is receiving, has 
received, or has made application for, unemployment 
compensation, and the amount of any such compensation being 
received by such individual, (2) the current (or most recent) 
home address of such individual, and (3) whether such 
individual has refused an offer of employment and, if so, a 
description of the employment so offered and the terms, 
conditions, and rate of pay therefor.
    Sec. 4. In order to obtain the benefits of appropriations 
apportioned under section 5, a State shall[, through its 
legislature,], pursuant to State statute, accept the provisions 
of this Act and, in accordance with such State statute, the 
Governor shall designate or authorize the creation of a State 
agency vested with all powers necessary to cooperate with the 
[United States Employment Service] Secretary under this Act.
    Sec. 5. (a) * * *
          * * * * * * *
    (c)(1) * * *
          * * * * * * *
    [(3)(A) Appropriations for fiscal year 1984 shall be 
available both to fund activities for the period between 
October 1, 1983, and July 1, 1984, and for the program year 
beginning July 1, 1984.
    [(B) There are authorized to be appropriated such 
additional sums as may be necessary to carry out the provisions 
of this paragraph for the transition to program year funding.]
    Sec. 6. (a) * * *
          * * * * * * *
    (b)(1) Subject to paragraphs (2), (3), and (4) of this 
subsection, the Secretary shall allot the remainder of the sums 
appropriated and certified pursuant to section 5 of this Act 
for each fiscal year among the States as follows:
          (A) two-thirds of such sums shall be allotted on the 
        basis of the relative number of individuals in the 
        civilian labor force in each State as compared to the 
        total number of such individuals in all States; and
          (B) one-third of such sums shall be allowed on the 
        basis of the relative number of unemployed individuals 
        in each State as compared to the total number of such 
        individuals in all States.
For purposes of this paragraph, the number of individuals in 
the civilian labor force and the number of unemployed 
individuals shall be based on data for the most recent calendar 
year available, as determined by the [Secretary of Labor] 
Secretary.
    Sec. 7. (a) * * *
          * * * * * * *
    (b) Ten percent of the sums allotted to each State pursuant 
to section 6 shall be reserved for use in accordance with this 
subsection by the Governor of each such State to provide--
          (1) * * *
          * * * * * * *
          (2) services for groups with special needs, carried 
        out pursuant to joint agreements between the employment 
        service and the appropriate [private industry council] 
        local workforce investment partnership and chief 
        elected official or officials or other public agencies 
        or private nonprofit organizations; and
          * * * * * * *
          (2) For purposes of this subsection, the term 
        ``applicable program'' means [any program under any of 
        the following provisions of law:
                  [(A) The Carl D. Perkins Vocational and 
                Applied Technology Education Act.
                  [(B) Section 123, title II, and the title III 
                of the Job Training Partnership Act.] any 
                workforce investment activity carried out under 
                the Workforce Investment Partnership Act of 
                1997: 
    (d) In addition to the services and activities otherwise 
authorized by this Act, the [United States Employment Service] 
Secretary or any State agency designated under this Act may 
perform such other services and activities as shall be 
specified in contracts for payment or reimbursement of the 
costs thereof made with the [Secretary of Labor] Secretary or 
with any Federal, State, or local public agency, or 
administrative entity under the [Job Training Partnership Act] 
Workforce Investment Partnership Act of 1997, or private 
nonprofit organization.
    (e) All job search, placement, recruitment, labor market 
information, and other labor exchange services authorized under 
subsection (a) shall be provided as part of the one-stop 
customer service system established by the State.
    Sec. 8. [(a) Any State desiring to receive the benefits of 
this Act shall, by the agency designated to cooperate with the 
United States Employment Service, submit to the Secretary of 
Labor detailed plans for carrying out the provisions of this 
Act within such State.]
    (a) Any State desiring to receive assistance under this Act 
shall submit to the Secretary, as part of the State plan 
submitted under section 304 of the Workforce Investment 
Partnership Act of 1997, detailed plans for carrying out the 
provisions of this Act within such State.
    [(b) Prior to submission of such plans to the Secretary--
          [(1) the employment service shall develop jointly 
        with each appropriate private industry council and 
        chief elected official or officials for the service 
        delivery area (designated under the Job Training 
        Partnership Act) those components of such plans 
        applicable to such area;
          [(2) such plans shall be developed taking into 
        consideration proposals developed jointly by the 
        appropriate private industry council and chief elected 
        official or officials in the service delivery area 
        affected;
          [(3) such plans shall be transmitted to the State job 
        training coordinating council (established under such 
        Act) which shall certify such plans if it determines 
        (A) that the components of such plans have been jointly 
        agreed to by the employment service and appropriate 
        private industry council and chief elected official or 
        officials; and (B) that such plans are consistent with 
        the Governor's coordination and special services plan 
        under the Job Training Partnership Act;
          [(4) if the State job training coordinating council 
        does not certify that such plans meet the requirements 
        of clauses (A) and (B) of paragraph (3) such plans 
        shall be returned to the employment service for a 
        period of thirty days for it to consider, jointly with 
        the appropriate private industry council and chief 
        elected official or officials, the council's 
        recommendations for modifying such plans; and
          [(5) if the employment service and the appropriate 
        private industry council and chief elected official or 
        officials fail to reach agreement upon such components 
        of such plans to be submitted finally to the Secretary, 
        such plans submitted by the State agency shall be 
        accompanied by such proposed modifications as may be 
        recommended by any appropriate disagreeing private 
        industry council and chief elected official or 
        officials affected, and the State job training 
        coordinating council shall transmit to the Secretary 
        its recommendations for resolution thereof.
    [(c) The Governor of the State shall be afforded the 
opportunity to review and transmit to the Secretary proposed 
modifications of such plans submitted.;]
    [(d)] (b) Such plans shall include provision for the 
promotion and development of employment opportunities for 
handicapped persons and for job counseling and placement of 
such persons, and for the designation of at least one person in 
each State or Federal employment office, whose duties shall 
include the effectuation of such purposes. In those States 
where a State board, department, or agency exists which is 
charged with the administration of State laws for vocational 
rehabilitation of physically handicapped persons, such plans 
shall include provision for cooperation between such board, 
department, or agency and the agency designated to cooperate 
with the United States Employment Service under this Act.
    [(e) If such plans are in conformity with the provisions of 
this Act and reasonably appropriate and adequate to carry out 
its purposes, they shall be approved by the Secretary of Labor 
and due notice of such approval shall be given to the State 
agency.]
    (c) The part of the State plan described in subsection (a) 
shall include the information described in paragraphs (8) and 
(16) of section 304(b) of the Workforce Investment Partnership 
Act of 1997.
          * * * * * * *
    [Sec. 11. (a) The Director shall establish a Federal 
Advisory Council composed of men and women representing 
employers and employees in equal numbers and the public for the 
purpose of formulating policies and discussing problems 
relating to employment and insuring impartiality, neutrality, 
and freedom from political influence in the solution of such 
problems. Members of such council shall be selected from time 
to time in such manner as the Director shall prescribe and 
shall serve without compensation, but when attending meetings 
of the council they shall be allowed necessary traveling and 
subsistence expenses, or per diem allowance in lieu thereof, 
within the limitations prescribed by law for civilian employees 
in the executive branch of the Government. The council shall 
have access to all files and records of the United States 
Employment Service. The Director shall also require the 
organization of similar State advisory councils composed of men 
and women representing employers and employees in equal numbers 
and the public. Nothing in this section shall be construed to 
prohibit the Governor from carrying out functions of such State 
advisory council through the State job training coordinating 
council in accordance with section 122(c) of the Job Training 
Partnership Act.
    (b) In carrying out the provisions of this Act the Director 
is authorized and directed to provide for the giving of notice 
of strikes or lockouts to applicants before they are referred 
to employment.]
    Sec. 12. [The Director, with the approval of the Secretary 
of Labor,] The Secretary is hereby authorized to make such 
rules and regulations as may be necessary to carry out the 
provisions of this Act.
          * * * * * * *

SEC. 15. LABOR MARKET INFORMATION.

    (a) System Content.--
          (1) In general.--The Secretary, in accordance with 
        the provisions of this section, shall oversee the 
        development, maintenance, and continuous improvement of 
        a system of labor market information that includes--
                  (A) statistical data from cooperative 
                statistical survey and projection programs and 
                data from administrative reporting systems 
                that, taken together, enumerate, estimate, and 
                project the employment opportunities at the 
                national, State, and local levels in a timely 
                manner, including data on--
                          (i) employment and unemployment 
                        status of the national, State, and 
                        local populations, as such data are 
                        developed by the Bureau of Labor 
                        Statistics and other sources;
                          (ii) industrial distribution of 
                        occupations, as well as current and 
                        projected employment opportunities and 
                        skill trends by occupation and 
                        industry, with particular attention 
                        paid to State and local employment 
                        opportunities;
                          (iii) data on the incidence of, 
                        industrial and geographical location 
                        of, and number of workers displaced by, 
                        permanent layoffs and plant closings; 
                        and
                          (iv) employee information maintained 
                        in a longitudinal manner and collected 
                        (as of the date of enactment of the 
                        Workforce Investment Partnership Act of 
                        1997) by States;
                  (B) State and local employment information, 
                and other appropriate statistical data related 
                to labor market dynamics (compiled for States 
                and localities with technical assistance 
                provided by the Secretary), which shall--
                          (i) be current and comprehensive, as 
                        of the date used;
                          (ii) assist individuals to make 
                        informed choices relating to employment 
                        and training; and
                          (iii) assist employers to locate, 
                        identify skill traits of, and train 
                        individuals who are seeking employment 
                        and training;
                  (C) technical standards (which the Secretary 
                shall make publicly available) for data and 
                information described in subparagraphs (A) and 
                (B) that, at a minimum, meet the criteria of 
                chapter 35 of title 44, United States Code;
                  (D) procedures to ensure compatibility and 
                additivity of the data and information 
                described in subparagraphs (A) and (B) from 
                national, State, and local levels;
                  (E) procedures to support standardization and 
                aggregation of data from administrative 
                reporting systems described in subparagraph (A) 
                of employment-related programs;
                  (F) analysis of data and information 
                described in subparagraphs (A) and (B) for uses 
                such as State and local policymaking;
                  (G) wide dissemination of such data, 
                information, and analysis, training for users 
                of the data, information, and analysis, and 
                voluntary technical standards for dissemination 
                mechanisms; and
                  (H) programs of--
                          (i) research and demonstration; and
                          (ii) technical assistance for States 
                        and localities.
          (2) Information to be confidential.--
                  (A) In general.--No officer or employee of 
                the Federal Government or agent of the Federal 
                Government may--
                          (i) use any submission that is 
                        furnished for exclusively statistical 
                        purposes under the provisions of this 
                        section for any purpose other than the 
                        statistical purposes for which the 
                        submission is furnished;
                          (ii) make any publication or media 
                        transmittal of the data contained in 
                        thesubmission described in clause (i) 
that permits information concerning individual subjects to be 
reasonably inferred by either direct or indirect means; or
                          (iii) permit anyone other than a 
                        sworn officer, employee, or agent of 
                        any Federal department or agency, or a 
                        contractor (including an employee of a 
                        contractor) of such department or 
                        agency, to examine an individual 
                        submission described in clause (i);
                without the consent of the individual, agency, 
                or other person who is the subject of the 
                submission or provides that submission.
                  (B) Immunity from legal process.--Any 
                submission (including any data derived from the 
                submission) that is collected and retained by a 
                Federal department or agency, or an officer, 
                employee, agent, or contractor of such a 
                department or agency, for exclusively 
                statistical purposes under this section shall 
                be immune from the legal process and shall not, 
                without the consent of the individual, agency, 
                or other person who is the subject of the 
                submission or provides that submission, be 
                admitted as evidence or used for any purpose in 
                any action, suit, or other judicial or 
                administrative proceeding.
                  (C) Construction.--Nothing in this section 
                shall be construed to provide immunity from the 
                legal process for such submission (including 
                any data derived from the submission) if the 
                submission is in the possession of any person, 
                agency, or entity other than the Federal 
                Government or an officer, employee, agent, or 
                contractor of the Federal Government, or if the 
                submission is independently collected, 
                retained, or produced for purposes other than 
                the purposes of this Act.
(b) System Responsibilities.--
          (1) In general.--The labor market information system 
        shall be planned, administered, overseen, and evaluated 
        through a cooperative governance structure involving 
        the Federal Government and States.
          (2) Duties.--The Secretary, with respect to data 
        collection, analysis, and dissemination of labor market 
        information for the system, shall carry out the 
        following duties:
                  (A) Assign responsibilities within the 
                Department of Labor for elements of the system 
                described in subsection (a) to ensure that all 
                statistical and administrative data collected 
                is consistent with appropriate Bureau of Labor 
                Statistics standards and definitions.
                  (B) Actively seek the cooperation of other 
                Federal agencies to establish and maintain 
                mechanisms for ensuring complementarity and 
                nonduplication in the development and operation 
                of statistical and administrative data 
                collection activities.
                  (C) Eliminate gaps and duplication in 
                statistical undertakings, with the 
                systemization of wage surveys as an early 
                priority.
                  (D) In collaboration with the Bureau of Labor 
                Statistics and States, develop and maintain the 
                elements of the system described in subsection 
                (a), including the development of consistent 
                definitions for use by the States in collecting 
                the data and information described in 
                subparagraphs (A) and (B), of subsection (a)(1) 
                and the development of the annual plan under 
                subsection (c).
                  (E) Establish procedures for the system to 
                ensure that--
                          (i) such data and information are 
                        timely;
                          (ii) administrative records for the 
                        system are consistent in order to 
                        facilitate aggregation of such data and 
                        information;
                          (iii) paperwork and reporting for the 
                        system are reduced to a minimum; and
                          (iv) States and localities are fully 
                        involved in the maintenance and 
                        continuous improvement of the system at 
                        the State and local levels.
  (c) Annual Plan.--The Secretary, with the assistance of the 
States and the Bureau of Labor Statistics, and with the 
assistance of other appropriate Federal agencies, shall prepare 
an annual plan which shall be the mechanism for achieving 
cooperative management of the nationwide labor market 
information system described in subsection (a) and the 
statewide labor market information systems that comprise the 
nationwide system. The plan shall--
          (1)(A) describe the elements of the system described 
        in subsection (a), including standards, definitions, 
        formats, collection methodologies, and othernecessary 
system elements, for use in collecting data and information described 
in subparagraphs (A) and (B) of subsection (a)(1); and
          (B) include assurances that--
                  (i) the data will be timely and detailed;
                  (ii) administrative records will be 
                standardized to facilitate the aggregation of 
                the data from local areas to State and national 
                levels and to support the creation of new 
                statistical series from program records; and
                  (iii) paperwork and reporting requirements 
                for employers and individuals will be reduced;
          (2) include a report on the results of an annual 
        consumer satisfaction review concerning the performance 
        of the system, including the performance of the system 
        in addressing the needs of Congress, States, 
        localities, employers, jobseekers, and other consumers;
          (3) evaluate the performance of the system and 
        recommend needed improvements, taking into 
        consideration the results of the consumer satisfaction 
        review, with particular attention paid to the 
        improvements needed at the State and local levels;
          (4) describe annual priorities, and priorities over 5 
        years, for the system;
          (5) describe current (as of the date of the 
        submission of the plan) spending and spending needs to 
        carry out activities under this section, including the 
        costs to States and localities of meeting the 
        requirements of subsection (d)(2); and
          (6) describe the involvement of States in the 
        development of the plan, through formal consultations 
        conducted by the Secretary in cooperation with 
        representatives of the Governors of every State, and 
        with representatives of local partnerships, pursuant to 
        a process established by the Secretary in cooperation 
        with the States.
    (d) State Responsibilities.--
          (1) Designation of state agency.--In order to receive 
        Federal financial assistance under this section, the 
        Governor of a State--
                  (A) shall designate a single State agency to 
                be responsible for the management of the 
                portions of the system described in subsection 
                (a) that comprise a statewide labor market 
                information system; and
                  (B) shall establish a process for the 
                oversight of such system.
          (2) Duties.--In order to receive Federal financial 
        assistance under this section, the State agency shall--
                  (A) consult with State and local employers, 
                participants, and local partnerships about the 
                labor market relevance of the data to be 
                collected and disseminated through the 
                statewide labor market information system;
                  (B) consult with State educational agencies 
                and local educational agencies concerning 
                providing labor market information in order to 
                meet the needs of secondary school and 
                postsecondary school students who seek such 
                information;
                  (C) collect and disseminate for the system, 
                on behalf of the State and localities in the 
                State, the information and data described in 
                subparagraphs (A) and (B) of subsection (a)(1);
                  (D) maintain and continuously improve the 
                statewide labor market information system in 
                accordance with this section;
                  (E) perform contract and grant 
                responsibilities for data collection, analysis, 
                and dissemination for such system;
                  (F) conduct such other data collection, 
                analysis, and dissemination activities as will 
                ensure an effective statewide labor market 
                information system;
                  (G) actively seek the participation of other 
                State and local agencies in data collection, 
                analysis, and dissemination activities in order 
                to ensure complementarity, compatibility, and 
                usefulness of data;
                  (H) participate in the development of the 
                annual plan described in subsection (c); and
                  (I) utilize the quarterly records described 
                in section 321(e)(1) and section 312 to assist 
                the State and other States in measuring State 
                progress on State performance measures.
          (3) Rule of construction.--Nothing in this section 
        shall be construed as limiting the ability of a State 
        agency to conduct additional data collection, analysis, 
        and dissemination activities with State funds or with 
        Federal funds from sources other than this section.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for each of fiscal years 1999 through 2003.
    (f) Definitions.--In this section, the terms ``local area'' 
and ``local partnership'' have the meanings given the terms in 
section 2 of the Workforce Investment Partnership Act of 
1997.''.
    Sec. [15.] 16. This Act may be cited as the ``Wagner-Peyser 
Act''.
          * * * * * * *

                      Older Americans Act of 1965

          * * * * * * *

                      federal agency consultation

    Sec. 203. (a)(1) * * *
          * * * * * * *
    (8) title I of the Higher Education Act of 1965 and the 
[Adult Education Act] Workforce Investment Partnership Act of 
1997,
          * * * * * * *

          older american community service employment program

    Sec. 502. (a) * * *
          * * * * * * *
          (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.)]);
          * * * * * * *
          (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[.]; and
          (Q) will provide to the Secretary the description and 
        information described in paragraphs (8) and (16) of 
        section 304(b) of the Workforce Investment Partnership 
        Act of 1997.
          * * * * * * *

                        interagency cooperation

    Sec. 505. (a) * * *
          * * * * * * *
          (2) The Secretary shall consult with the Secretary of 
        Education to promote and coordinate carrying out 
        projects under this title jointly with [employment and 
        training programs] workforce investment activities in 
        which eligible individuals may participate that are 
        carried out under [the Carl D. Perkins Vocational and 
        Applied Technology Education Act (20 U.S.C. 2301 et 
        seq.)] the Carl D. Perkins Vocational and Applied 
        Technology Education Act of 1997.
          * * * * * * *

          Equity in Educational Land-Grant Status Act of 1994

          * * * * * * *

                      UNITED STATES CODE--TITLE 7

          * * * * * * *
    Sec. 301. Land grant aid of colleges.

                     historical and statutory notes

    Equity in Educational Land Grant Status.--
          * * * * * * *
          ``(A) 60 percent of the adjusted income shall be 
        distributed among the 1994 Institutions on a pro rata 
        basis. The proportionate share of the adjusted income 
        received by a 1994 Institution under this subparagraph 
        shall be based on the Indian student count (as defined 
        in section 390(3) of the Carl D. Perkins Vocational and 
        Applied Technology Education Act [(20 U.S.C. 2397h(3)], 
        as such section was in effect on the day preceding the 
        date of enactment of the Carl D. Perkins Vocational and 
        Applied Technology Education Act of 1997 [section 
        2397h(3) of Title 20, Education])) for each 1994 
        Institution for the fiscal year.

                    Immigration and Nationality Act

          * * * * * * *

                      UNITED STATES CODE--TITLE 8

          * * * * * * *
    Sec. 1255a. Adjustment of status of certain entrants before 
January 1, 1982, to that of person admitted for lawful 
residence.
    (a) Temporary resident status
          * * * * * * *
          (4) Treatment of certain programs--Assistance 
        furnished under any of the following provisions of law 
        shall not be construed to be financial assistance 
        described in paragraph (1)(A)(i):
                  (A) * * *
          * * * * * * *
                  (C) the [Vocational Education Act of 1963] 
                Carl D. Perkins Vocational and Applied 
                Technology Education Act of 1997 [20 U.S.C.A. 
                Sec. 2301 et seq.]
          * * * * * * *

                   National Defense Authorization Act

          * * * * * * *

                      UNITED STATES CODE--TITLE 10

          * * * * * * *
    Sec. 1143. Employment Assistance
    (a) Employment skills verification.--* * *
          * * * * * * *

                     HISTORICAL AND STATUTORY NOTES

          * * * * * * *
          [``(4) The Carl D. Perkins Vocational and Applied 
        Technology Education Act (20 U.S.C. 2301 et seq.).]
          [``(5)] ``(4) The Act of August 16, 1937 (Chapter 
        663; 50 Stat. 664; 20 U.S.C. 50 et seq.), commonly 
        known as the National Apprenticeship Act.
          [``(6)] ``(5) The Wagner-Peyser Act (20 U.S.C. 49 et 
        seq.).''
          * * * * * * *

                           Trade Act of 1974

          * * * * * * *

                      UNITED STATES CODE--TITLE 19

          * * * * * * *
    Sec. 2313. Payments to States.

   Certification to Secretary of Treasury for payment to cooperating 
                                 States

    (a) * * *
          * * * * * * *
    (d) To be eligible to receive funds under this section, a 
State shall submit to the Secretary an application that 
includes the description and information described in 
paragraphs (8) and (16) of section 304(b) of the Workforce 
Investment Partnership Act of 1997.
          * * * * * * *

             Elementary and Secondary Education Act of 1965

          * * * * * * *

                      UNITED STATES CODE--TITLE 20

          * * * * * * *
    Sec. 6314. Schoolwide programs.
    (a) Use of funds for schoolwide programs.--
          (1) In general.--
          * * * * * * *
    (v) where appropriate, developed in coordination with 
programs under the School-to-Work Opportunities Act of 1994 [20 
U.S.C.A. Sec. 6101 et seq.], the [Carl D. Perkins Vocational 
and Applied Technology Education Act] Carl D. Perkins 
Vocational and Applied Technology Education Act of 1997 [20 
U.S.C.A. Sec. 2301 et seq.], and the National and Community 
Service Act of 1990 [42 U.S.C.A. Sec. 12501 et seq.].
          * * * * * * *
    Sec. 6362. Program authorized.
    (a) Reservation for migrant programs, outlying areas, and 
Indian tribes.
          (1) In general.--
          * * * * * * *
    (c) Reservation for grants
          (1) Grants authorized--In any fiscal year in which 
        the amount appropriated to carry out this part exceeds 
        the amount appropriated to carry out this part for the 
        preceding fiscal year, the Secretary may reserve such 
        funds in excess of the amount appropriated for such 
        preceding fiscal years as do not exceed $1,000,000 to 
        award grants, on a competitive basis, to States to 
        enable such States to plan and implement, statewide 
        family literacy initiatives to coordinate and integrate 
        existing Federal, State, and local literacy resources 
        consistent with the purposes of this part. Such 
        coordination and integration shall include funds 
        available under the [Adult Education Act] Workforce 
        Investment Partnership Act of 1997 [20 U.S.C.A. 
        Sec. 1201 et seq.], Head Start, Even Start, and the 
        Family Support Act of 1988.
          * * * * * * *
    Sec. 6365. Program elements--Each program assisted under 
this part shall--
          (1) * * *
          * * * * * * *
          (8) be coordinated with--
                  (A) programs assisted under the parts of this 
                title and this chapter;
                  (B) any relevant programs under the [Adult 
                Education Act] Workforce Investment Partnership 
                Act of 1997 [20 U.S.C.A. Sec. 1201 et seq.], 
                the Individuals with Disabilities Education Act 
                [20 U.S.C.A. Sec. 1400 et seq.], and the Job 
                Training Partnership Act [29 U.S.C.A. Sec. 1501 
                et seq.]; and
          * * * * * * *
    Sec. 6366. Eligible participants.
    (a) In general.--Except as provided in subsection (b) of 
this section, eligible participants in an Even Start program 
are--
          (1) a parent or parents--
                  (A) who are eligible for participation in [an 
                adult basic education program under the Adult 
                Education Act] adult education and literacy 
                activities under the Workforce Investment 
                Partnership Act of 1997 [20 U.S.C. A. Sec. 1201 
                et seq.]; or
          * * * * * * *
    Sec. 7815. Authorized services and activities.
    (a) General requirements.--
          * * * * * * *
          (5) school-to-work transition activities to enable 
        Indian students to participate in programs such as the 
        programs supported by the School-to-Work Opportunities 
        Act of 1994 [20 U.S.C.A. Sec. 6101 et seq.] and the 
        [Carl D. Perkins Vocational and Applied Technology 
        Education Act] Carl D. Perkins Vocational and Applied 
        Technology Education Act of 1997 [20 U.S.C.A. Sec. 2301 
        et seq.], including programs for tech-prep, mentoring, 
        and apprenticeship;
          * * * * * * *
    Sec. 8852. Optional consolidated State plans or 
applications.
    (a) General authority.--
          (1) Simplification
          * * * * * * *
                  [(C) programs under part A of title II of the 
                Carl D. Perkins Vocational and Applied 
                Technology Education Act [20 U.S.C.A. Sec. 2331 
                et seq.];]
                  [(D)] (C) programs under the Goals 2000: 
                Educate America Act [20 U.S.C.A. Sec. 5801 et 
                seq.];
                  [(E)] (D) programs under the School-to-Work 
                Opportunities Act of 1994 [20 U.S.C.A. 
                Sec. 6101 et seq.]; and
                  [(F)] (E) such other programs as the 
                Secretary may designate.
          * * * * * * *
    Sec. 8857. Relationship of State and local plans to plans 
under Goals 2000: Educate America Act.
    (a) State plans.--
          (1) In general.--Each state plan submitted under the 
        following programs shall be integrated with each other 
        and the State's improvement plan, if any, either 
        approved or being developed, under title III of the 
        Goals 2000: Educate America Act [20 U.S.C.A. Sec. 5881 
        et seq.], the School-to-Work Opportunities Act of 1994 
        [20 U.S.C.A. Sec. 6101 et seq.], and the [Carl D. 
        Perkins Vocational and Applied Technology Education 
        Act] Carl D. Perkins Vocational and Applied Technology 
        Education Act of 1997 [20 U.S.C.A. Sec. 2301 et seq.]:
          * * * * * * *

                Vocational Education Amendments of 1968

          * * * * * * *

                      UNITED STATES CODE--TITLE 20

          * * * * * * *

         appropriations under vocational education act of 1963

    Pub. L. 90-576, Title I, Sec. 104, Oct. 16, 1968, 82 Stat. 
1091, as amended by Pub. L. 91-230, Title VII, Sec. 709, Apr. 
13, 1970, 84 Stat. 189; Pub. L. 94-482, Title II, 
Sec. 203(c)(1), as added Pub. L. 95-40, Sec. 1(29), June 3, 
1977, 91 Stat. 207; Pub. L. 98-524, Sec. 4(h), Oct. 19, 1984, 
98 Stat. 2489, provided that: ``Funds appropriated by the first 
section of the Smith-Hughes Act (that is the Act approved 
February 23, 1917, 39 Stat. 929, as amended (20 U.S.C. 11-15, 
16-28) [sections 11-15, 16, and 18-28 of this title], shall be 
considered as funds appropriated pursuant to [section 3 of the 
Carl D. Perkins Vocational Education Act] the Carl D. Perkins 
Vocational and Applied Technology Education Act of 1997 
[section 2302 of this title].''
          * * * * * * *

                     Internal Revenue Code of 1986

          * * * * * * *

                      UNITED STATES CODE--TITLE 26

          * * * * * * *
    Sec. 135. Income from United States savings bonds used to 
pay for higher education tuition and fees.
    (a) General rule.--* * *
          * * * * * * *
    (c) * * *
          * * * * * * *
          (B) an area vocational education school (as defined 
        in [subparagraph (C) or (D) of section 521(3) of the 
        Carl D. Perkins Vocational Education Act] subparagraph 
        (C) or (D) of section 2(3) of the Workforce Investment 
        Partnership Act of 1997) which is in [any State (as 
        defined in section 521(27) of such Act)] any State or 
        outlying area (as the terms ``State'' and ``outlying 
        area'' are defined in section 2 of such Act), as such 
        sections are in effect on October 21, 1988.
          * * * * * * *

                      National Apprenticeship Act

          * * * * * * *

                      UNITED STATES CODE--TITLE 29

          * * * * * * *

SEC. 3A. COORDINATION AND NONDUPLICATION.

    In carrying out this Act, the Secretary of Labor shall 
require that an appropriate administrative entity in each State 
enter into an agreement with the Secretary regarding the 
implementation of this Act that includes the description and 
information described in paragraphs (8) and (16) of section 
304(b) of the Workforce Investment Partnership Act of 1997.
          * * * * * * *

                               CHAPTER 41

          * * * * * * *

                      UNITED STATES CODE--TITLE 38

          * * * * * * *
    Sec. 4110A. Special unemployment study.
    (a) * * *
          * * * * * * *
    Sec. 4110B. Coordination and nonduplication.
    In carrying out this chapter, the Secretary shall require 
that an appropriate administrative entity in each State enter 
into an agreement with the Secretary regarding the 
implementation of this Act that includes the description and 
information described in paragraphs (8) and (16) of section 
304(b) of the Workforce Investment Partnership Act of 1997.
          * * * * * * *

              Appalachian Regional Development Act of 1965

          * * * * * * *

                      UNITED STATES CODE--TITLE 40

          * * * * * * *
    Sec. 214. Supplements to Federal grant-in-aid programs.
    (a) * * *
          * * * * * * *
    (c) The term ``Federal grant-in-aid programs'' as used in 
this section means those Federal grant-in-aid programs 
authorized on or before December 31, 1980, by this Act and Acts 
other than this Act for the acquisition or development of land, 
the construction or equipment of facilities, or other community 
or economic development or economic adjustment activities, 
including but not limited to grant-in-aid programs authorized 
by the following Acts: Federal Water Pollution Control Act; 
Watershed Protection and Flood Prevention Act; Titles VI and 
XVI of the Public Health Services Act; [Carl D. Perkins 
Vocational Education Act] Carl D. Perkins Vocational and 
Applied Technology Education Act of 1997; Library Services and 
Construction Act; Federal Airport Act; Airport and Airway 
Development Act of 1970; part IV of Title III of the 
Communications Act of 1934; Title VI (part A) and VII of the 
Higher Education Act of 1965; Land and Water Conservation Fund 
Act of 1965; National Defense Education Act of 1958; 
Consolidated Farm and Rural Development Act; Titles I and IX of 
the Public Works and Economic Development Act of 1965; the 
housing repair program for homeowners authorized by section 
1319 of Title 42 United States Code; grants under the Indian 
Health Service Act (42 Stat. 208); and Title I of the Housing 
and Community Development Act of 1974. The term shall not 
include: (A) The program for the construction of the 
development highway system authorized by section 201 of this 
Act or any other program relating to highway or road 
construction, or (B) any other program for which loans or other 
Federal financial assistance, except a grant-in-aid program, is 
authorized by this or any other Act. For the purpose of this 
section, any sewage treatment works constructed pursuant to 
section 8(c) of the Federal Water Pollution Control Act without 
Federal grant-in-aid assistance under such section shall be 
regarded as if constructed with such assistance.
          * * * * * * *

                     National Literacy Act of 1991

          * * * * * * *

                      UNITED STATES CODE--TITLE 20

          * * * * * * *
    [The National Literacy Act of 1991 (20 U.S.C. 1201 note) is 
repealed.]
          * * * * * * *

                          Adult Education Act

          * * * * * * *
    [The Adult Education Act (20 U.S.C. 1201 et seq.) is 
repealed.]
          * * * * * * *

    Carl D. Perkins Vocational and Applied Technology Education Act

          * * * * * * *
    [The Carl D. Perkins Vocational and Applied Technology 
Education Act (20 U.S.C. 1201 et seq.) is repealed.]
          * * * * * * *
    [Section 204 of the Immigration Reform and Control Act of 
1986 (8 U.S.C. 1255a note) is repealed.]
          * * * * * * *
    [Title II of Public Law 95-250 (92 Stat. 172) is repealed.]
          * * * * * * *
    [The Displaced Homemakers Self-Sufficiency Assistance Act 
(29 U.S.C. 2301 et seq.) is repealed.]
          * * * * * * *
    [Section 211 of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App. 211) is repealed.]
          * * * * * * *
    [Subtitle C of Title VII of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 1141 et seq.) is repealed.]
          * * * * * * *
    [Subchapter I of chapter 421 of title 49, United States 
Code is repealed.]
          * * * * * * *
    [The provisions of the Job Training Partnership Act (29 
U.S.C. 1501 et seq.) are repealed.]
          * * * * * * *
    [The provisions of Title VII of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11421 et seq.), except 
subtitle B and section 738 of such title (42 U.S.C. 11431 et 
seq. and 11448) are repealed.]
          * * * * * * *
    [Subsection (b) of section 402 of the Refugee Education 
Assistance Act of 1980 (8 U.S.C. 1522 note) is repealed.]
          * * * * * * *

              Unemployment Compensation Amendments of 1976

          * * * * * * *

                           Public Law 104-193

          * * * * * * *

SEC. 110. CONFORMING AMENDMENTS TO OTHER LAWS.

    (a) * * *
          * * * * * * *
    ``(b) Provision for Reimbursement of Expenses.--For 
purposes of section 455 of the Social Security Act, expenses 
incurred to reimburse State employment offices for furnishing 
information requested of such offices--
          ``(1) pursuant to [the third sentence of section 
        3(a)] section 3(b) of the Act entitled `An Act to 
        provide for the establishment of a national employment 
        system and for cooperation with the States in the 
        promotion of such system, and for other purposes', 
        approved June 6, 1933 (29 U.S.C. [49b(a)] 49b(b)), or
          * * * * * * *

                 Improving America's School Act of 1994

          * * * * * * *

                           Public Law 103-382

          * * * * * * *

SEC. 563. VOCATIONAL EDUCATION REGULATIONS

    (a) In General.--Notwithstanding any other provision of 
law, beginning on the date of enactment of this Act, and ending 
on [the date of enactment of an Act reauthorizing the Carl D. 
Perkins Vocational and Applied Technology Education Act (20 
U.S.C. 2301 et seq.)] July 1, 1999 the Department of 
Education's interpretation of the Carl D. Perkins Vocational 
and Applied Technology Act relating to--
          * * * * * * *

SEC. 3113. DEFINITIONS.

    ``For purposes of this title--
          ``(1) the term `adult education' has the same meaning 
        given such term by [section 312 of the Adult Education 
        Act] section 2 of the Workforce Investment Partnership 
        Act of 1997;
          * * * * * * *

``SEC. 9161. DEFINITIONS.

    ``As used in this part:
          ``(1) Adult.--* * *
          * * * * * * *
          ``(2) Adult Education.--The term `adult education' 
        has the meaning given such term in [section 312(2) of 
        the Adult Education Act] section 2 of the Workforce 
        Investment Partnership Act of 1997.
          * * * * * * *