[Senate Report 108-187]
[From the U.S. Government Publishing Office]
Calendar No. 366
108th Congress Report
SENATE
1st Session 108-187
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WORKFORCE INVESTMENT ACT OF 1998
_______
November 5, 2003.--Ordered to be printed
_______
Mr. Gregg, from the Committee on Health, Education, Labor, and
Pensions, submitted the following
R E P O R T
[To accompany S. 1627]
The Committee on Health, Education, Labor, and Pensions, to
which was referred the bill (S. 1627) to reauthorize the
Workforce Investment Act of 1998, and for other purposes,
having considered the same, reports favorably thereon with an
amendment in the nature of a substitute and recommends that the
bill (as amended) do pass.
CONTENTS
Page
I. Purpose and Summary of Legislation...............................1
II. Background and Need for the Legislation..........................5
III. Legislative History and Votes in Committee.......................7
IV. Explanation of Bill and Committee Views..........................8
V. Cost Estimate...................................................51
VI. Application of Law to the Legislative Branch....................55
VII. Regulatory Impact Statement.....................................56
VIII.Section-by-Section Analysis.....................................56
IX. Changes in Existing Law.........................................93
I. Purpose and Summary of Legislation
The purpose of S. 1627, the Workforce Investment Act
Amendments of 2003, is to reauthorize and improve the workforce
investment system created under the Workforce Investment Act of
1998. The bill also reauthorizes and enhances the Adult
Education and Family Literacy Act and the Rehabilitation Act.
TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT
S. 1627 is the product of an extensive bipartisan effort,
as well as significant input from stakeholders and the
Department of Labor. The goals of the legislation include:
helping workers find new or better jobs, thereby increasing
self-sufficiency; providing employers, including small
employers, with an appropriately trained workforce they need to
compete in the global marketplace; improving the existing one-
stop career center delivery system to ensure that it can
respond quickly and effectively to the changing needs of
employers and workers in the new economy and can address the
needs of hard-to-serve populations, including individuals with
disabilities, in all areas of the Nation; better connecting the
job training system with the private sector and with post-
secondary education and training, social services, and economic
development systems to prepare the 21st century workforce for
career opportunities and skills in high-growth sectors;
promoting the informed choice of participants; allowing
flexibility to meet State, local, regional, and individual
workforce investment needs; removing barriers in the law that
have discouraged business involvement in workforce training,
that have discouraged qualified training providers from
participating, and that have discouraged States and localities
from serving hard-to-serve populations.
State Workforce Investment Boards
This legislation streamlines membership on the State
workforce investment boards. To improve the link between
workforce development and economic development, State boards
must include the State economic development agency. The
legislation requires that business representatives include
representatives of small businesses. The State board functions
are expanded, including the development and review statewide
policies affecting the coordinated provision of services
through the one-stop systems, and the development of objective
criteria for use by local boards in assessing the effectiveness
and continuous improvement of one-stops.
State Plans
State are required to submit strategic plans every 4 years,
and amend such plans, as needed, after 2 years to reflect labor
market and economic conditions. S. 1627 expands the contents of
the state plan to reflect the additional purposes of the
legislation.
Local Workforce Investment Areas
Automatic designation of local areas is tied to successful
performance and fiscal integrity.
Local Workforce Investment Boards
Membership on local workforce investment boards is
streamlined by eliminating the requirement that one-stop
partners serve on the local board. Local boards have the option
of creating advisory committees and youth councils.
Local Plans
Local boards are required to submit strategic plans every 4
years, and amend such plans, as needed, after 2 years to
reflect labor market and economic conditions. S. 1627 expands
the contents of the local plan to reflect the additional
purposes of the legislation.
One-Stop Delivery System
The legislation places greater emphasis on the role of the
one-stop partners in the delivery of program services,
consistent with the local Memorandum of Understanding. The
State board, in consultation with chief local elected officials
and local boards, is required to establish criteria for use by
the local board in assessing the effectiveness, physical and
programmatic accessibility, and continuous improvement of one-
stop centers and delivery systems. If local areas fail to come
to an agreement with mandatory partners regarding sufficient
funding of one-stop infrastructure costs, a State one-stop
infrastructure funding mechanism can be imposed. Mandatory
partner program contributions pursuant to the State one-stop
infrastructure funding mechanism are based on the proportionate
use of the one-stop centers and subject to specified caps.
Eligible Providers of Training Services
The legislation amends the current eligibility requirements
to authorize the Governors to establish new criteria and
procedures for the eligibility of training providers. The
Criteria must take into account such factors as: performance,
access throughout the State, information required to be
reported to State agencies, applicable State licensing
requirments, encouraging industry recognized standards where
practicable, and the ability to serve hard-to-serve
populations. Local boards may establish additional performance
criteria. The legislation provides a transition period for
implementation and an exception for on-the-job or customized
training. Local boards may award grants or contracts to
providers of youth activities on a sole-source basis if there
is an insufficient number of eligible providers in the local
area.
Youth Activities
The legislation authorizes up to $250,000,000 for Youth
Challenge Grants for each year in which the appropriation for
youth activities exceeds $1,000,000,000. At least 80 percent of
the funds for Youth Challenge Grants are to be awarded by the
Secretary on a competitive basis. The Secretary is authorized
to use up to 20 percent of the funds for Youth Challenge Grants
to award discretionary grants. The Secretary must reserve at
least $10,000,000 for migrant and seasonal farmworker youth
activities. State allotments up to the 2003 allotted amount are
distributed pursuant to the current law formula. State
allotments in excess of the 2003 allotted amount are
distributed as follows: \1/3\ on the basis of the relative
number of the labor force aged 16-21 in the State, \1/3\ of the
basis of the relative number of unemployed individuals in the
State, \1/3\ on the basis of the number of disadvantaged youth
aged 16-21 in the State. The Governor is allowed to reserve up
to 15 percent of the State allotment for statewide workforce
investment activities. S. 1627 defines in-school and out-of-
school youth for purposes of youth participant eligibility. The
legislation requires that no more than 60 percent of the State
and local funds be spent on in-school youth.
Adult and Dislocated Worker Employment and Training Activities
S. 1627 retains the three separate funding streams of WIA
Adult, WIA Dislocated Workers, and Wagner-Peyser Act employment
service program. The formula for allotting the Adult funding to
States is revised as follows: 40 percent is allotted of the
basis of the relative number of unemployed in areas of
substantial unemployment in each State, 25 percent is allotted
on the basis of the relative number in the civilian workforce
in each State, 35 percent is allotted on the basis of the
relative number of disadvantaged workers in each State. States
that lose funding because of formula change will be made whole
from a Secretary's reserve fund of up to $20,000,000. The
legislation bases the reallotment of funds on the amount by
which the unexpended balance exceeds 30 percent of the previous
year's allotment. Unexpended balance is defined as the total
amount of funds available the previous year less accrued
expenditures.
As under current law, the Governor must reserve up to 25
percent of dislocated worker funds for statewide rapid response
activities. S. 1627 allows the Governor to redistribute rapid
response funds unexpended after the program year. The
legislation adds required and allowable statewide activities
which reflect the purposes of the legislation.
In order to avoid duplication of services, the legislation
requires the co-location of employment services under the
Wagner-Peyser Act at comprehensive one-stop centers. To provide
greater flexibility in the delivery of services. the provisions
regarding eligibility for intensive and training services are
amended. Participants are not required to spend a specific
amount of time in one tier of service. The legislation
continues to utilize the term self-sufficiency for purposes of
determining eligibility for intensive and training services. S.
1627 adds permissible local activities which reflect the
purposes of the legislation. S. 1627 allows a local board to
use up to 10 percent of local funds for incumbent worker
training.
Performance Measures
The legislation amends current law to provide for more
accurate and complete data collection, reporting, and
performance measures that are not unduly burdensome. S. 1627
requires adjustment of performance measures to reflect economic
conditions and the characteristics of the population served to
remove disincentives to serving hard-to-serve populations.
States are required to provide more complete information on the
type of services being provided with WIA funds.
TITLE II--AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT
This title reauthorizes and amends the Adult Education and
Family Literacy Act of 1998. It includes the formula
allocations for State adult education programs, the required
content of State plans submitted, national and State leadership
activities that may be performed with funds appropriated for
this Act, and authorizes such sums as necessary to carry out
this title.
Because of the increasing number of individuals needing
basic skills education in reading, writing, English language
acquisition, and math, there is more focus on providing courses
in these areas. Programs offered by local providers should
include a sequence of rigorous, academic courses and activities
leading to proficiency in the basic literacy and mathematics
skills, as well as family literacy. Accountability provisions
are strengthened to ensure programmatic effectiveness.
The National Institute for Literacy is reauthorized and
includes literacy activities across the life span of
individuals: children, youth, adults and families. It continues
to be instrumental in the federal effort to promote literacy
activities, and is charged with disseminating scientifically-
based literacy information to eligible programs and providers.
TITLE IV--AMENDMENTS TO THE REHABILITATION ACT OF 1973
Title IV of the bill reauthorizes and amends the
Rehabilitation Act of 1973. The major goals of the
Rehabilitation Act Amendments of 2003 provisions are to:
strengthen individual choice and transition planning for
individuals with disabilities; create a stronger link between
the Rehabilitation Act, the President's New Freedom Initiative
and the Olmstead Executive Order (13217: Community-Based
Alternatives for Individuals with Disabilities); increase the
opportunity to expand Vocational Rehabilitation partnerships
with business/employers; and improve coordination with other
employment programs such as the Workforce Investment Act and
the Ticket to Work Act.
II. Background and Need for the Legislation
TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT
The Workforce Investment Act (WIA) was enacted in 1998 to
unify a fragmented employment and training system into a more
comprehensive workforce investment system that better serves
job seekers and employers. At the time WIA was enacted, the
Nation's job training system was a complex patchwork of
numerous rules and overlapping bureaucracies. Individuals
seeking employment opportunities and employers seeking to hire
them faced a duplicative maze of narrowly focused programs that
lacked coordination or a coherent strategy. The result was a
Federal job training, adult education, and vocational education
system that failed to meet the needs of those seeking
assistance.
WIA abolished the Job Training Partnership Act (JTPA) and
created 3 new funding Streams: Adult, Dislocated Worker, and
Youth. The foundation of WIA was the creation of the one-stop
center system through which 17 mandatory programs where
required to deliver employment and training services that job
seekers and employers could readily access. WIA expected such
mandatory partners to share the costs of operating one-stop
centers through memorandums of understanding negotiated at the
local level.
WIA also sought to engage business to ensure that the
workforce investment system was responsive to employers' needs.
The private sector was to drive the system through
participation on State and Local workforce investment boards.
WIA services were redesigned from those offered under JTPA and
included core, intensive and training services. WIA training
services were offered primarily through the use of vouchers for
eligible training providers. Recognizing that Washington cannot
and should not determine State and local workforce needs. WIA
intended to provide flexibility to States and localities to
meet their own workforce needs.
WIA represented a fundamental change in the delivery of the
Nation's employment and training services. States were required
to implement major provisions of WIA by July 1, 2000.
Therefore, WIA is still a fairly new system. While the system
has certainly experienced some successes as States and
localities increase their understanding of WIA, the full
promise of WIA has yet to be realized. As the dust has settled
after 3 years of implementation, challenges to WIA's full
success have become clearer.
The General Accounting Office (GAO) identified aspects of
the law that have hampered implementation in its study on
``Exemplary One-Stops Devised Strategies to Strengthen
Services, but Challenges Remain for Reauthorization'' (GAO-03-
884T). The GAO found that the performance measurement system
developed under WIA may be causing some clients to be denied
service and does not allow for an accurate understanding of
WIA's effectiveness. Local areas are reluctant to provide WIA-
funded services to job seekers who may be less likely to find
employment or experience an increase in earnings when they are
placed in a job.
The GAO also identified flaws in the funding formula,
including the problem that formula factors used to allocate
funds are not aligned with the target populations.
Implementation of WIA has also been hampered by uncertainty and
inconsistency of funding for one-stop infrastructure costs. The
GAO found that across all the sites it visited for an early
implementation study, WIA's Adult and Dislocated Worker
programs and, across most sites, Wagner-Peyser Employment
Service, were the only partners consistently making monetary
contributions to pay for the one-stops' operational costs.
According to GAO's study, WIA's system for certifying training
providers may reduce training options for job seekers. Many
training providers consider the current process for certifying
their eligibility to be overly burdensome, and reduce their
course offerings available for WIA participants. Such
eligibility requirements have undermined the ``consumer
choice'' that WIA was intended to provide.
WIA replaced a public job training and employment system in
which employers have lost confidence. Prior to the enactment of
WIA, many employers turned to nonpublic sources to identify and
train workers. WIA envisioned statewide and local partnerships,
led by employers, to develop the strategy for the comprehensive
State workforce investment system. These partnerships at the
State and local level were to be ``policy entities'' outlining
the employment, training and skills needs, not entities
burdened by bureaucratic and administrative duties.
Unfortunately, the public-private workforce investment
partnership remains burdened by bureaucratic and administrative
duties, which has discouraged business involvement. Many
businesses, including small businesses, remain unengaged or
unaware of WIA's workforce investment system.
Some States and localities have found creative ways to
overcome the challenges imposed by current law. Many others
remain impeded by these barriers. The Workforce Investment Act
Amendments of 2003 removes the barriers and builds upon the
successes of the landmark 1998 legislation.
As was the case in 1998, reform of the Nation's job
training and employment system is needed because the economic
future of our country depends on a well-trained workforce. To
keep the American dream within the grasp of all Americans, we
have to deal with the changing face of our Nation's economy.
The kind of jobs that are available today and will be in the
future are different from those that were highly valued a few
years, or even a few months, ago. Those seeking new or better
jobs must have the training they will need for these new
positions. Our businesses must have the skilled employees they
need to compete in the new, more global economy. Improving the
Workforce Investment Act will improve the lives of America's
workers and their families and increase the strength of our
Nation's businesses and communities.
TITLE II--AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT
There is a significant need for services that can reach the
adult population that lacks basic mathematics and literacy
skills. The Bureau of the Census has reported that 9.8 percent
of the nation's young people between the ages of 16 and 19 have
not completed the work necessary for a high school diploma or
its equivalent. Of all Americans over age 25, 7.5 percent have
a ninth grade education or lower.
According to 2002 data from the National Assessment of
Education Progress (NAEP), roughly two thirds of the students
leaving high school read at basic levels of literacy or below.
This extraordinary statistic is appropriately being addressed
through the landmark No Child Left Behind Act, but there is a
definite need for services provided for those individuals who
are now beyond the secondary education system and still lack
basic literacy skills.
In addition, the growing immigrant and limited English
proficient population, which makes up a growing share of adult
education participants, has a demonstrated need for a stronger
background in American history and civics education. The
Committee believes that the adult education and family literacy
programs are a natural programmatic fit for efforts to help
immigrants to this country identify the principles that make
this nation great.
III. Legislative History and Votes in Committee
The Subcommittee on Employment, Safety and Training held
two hearings on the reauthorization of the Workforce Investment
Act. The first hearing was held on March 6, 2003. The only
witness to testify was D. Cameron Findlay, Deputy Secretary of
Labor.
The second hearing was held on June 18, 2003. The hearing
included two panels. Testifying at the first panel was Sigurd
Nilsen, representing the General Accounting Office. The second
panel was made up of Curtis Austin, executive director,
Workforce Florida Inc., James Ellenberger, deputy commissioner,
Virginia Employment Commission; Michael Kennedy, executive
director, Pacific Mountain Workforce Development Council;
Michael Smeltzer, executive director, Manufacturers'
Association of South Central Pennsylvania; Charles Ware,
chairman, Wyoming Workforce Development Council.
Senator Enzi introduced S. 1627 on September 27, 2003, with
Senators Gregg, Kennedy, and Murray as cosponsors. On October
2, 2003, the Senate Committee on Health, Education, Labor and
Pensions met in executive session and favorably reported the
bill unanimously after also unanimously accepting an amendment
from Senator Clinton.
IV. Explanation of Bill and Committee Views
TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT
The Workforce Investment Act of 1998 (WIA) was enacted to
create a streamlined workforce development system that could
effectively respond to the needs of workers and employers
alike. WIA has helped many Americans seeking new or better
jobs. However, the full promise of WIA has yet to be realized.
This legislation reflects the Committee's bipartisan belief
that our Nation's workforce development system must work at all
stages of the economic cycle and in all areas of the country.
The Committee believes that reauthorization of WIA gives
Congress the opportunity to improve the lives of our Nation's
workers and increase the strength of our businesses and
communities. Reauthorization of WIA is an opportunity to
complete the transformation of fragmented employment and
training programs into a seamless workforce investment system.
The Workforce Investment Act Amendments of 2003 builds upon
the success of WIA while addressing its shortcomings. The
Committee believes that reauthorization of WIA should address
concerns that have come to light in the implementation of this
relatively new workforce development system and push the system
towards innovation and needed reforms. The bill focuses on
changes to the law that: fix problems with the statute that
stand in the way of successful implementation; encourage the
building of a comprehensive, high quality workforce investment
system; encourage innovation in serving workers and in
providing enhanced services to businesses, both large and
small; improve access to services in all areas; and expand
opportunities for education and training.
S. 1627 is the product of an extensive bipartisan effort.
The Committee solicited and received extensive input from
stakeholders in crafting the bill. The principal organizations
representing the local workforce delivery system, the National
Association of Counties, the National Association of Workforce
Boards, the National Workforce Association, and the United
States Conference of Mayors, wrote a letter on September 24,
2003 in strong support of S. 1627:
S. 1627 represents the committee's sincere commitment
to responding to the workforce development needs of
business and workers throughout America at a time when
joblessness remains a major impediment to full economic
recovery. We believe that this bill will do much to
strengthen the workforce investment system by enhancing
services to business, unemployed and dislocated workers
and others in need of workforce development assistance,
while strengthening the relationships between the
public and private sectors and states, counties and
cities.
The committee also received significant assistance from the
Department of Labor in crafting the bill.
Purpose
The committee believes that the self-sufficiency of
participants is a key goal of WIA. Therefore, the committee
added as an additional purpose of WIA to provide workforce
investment activities that increase self-sufficiency. The
committee wants to ensure that the workforce investment system
is demand driven and responsive to the needs of employers,
including small employers. The committee also wants to ensure
that the system works in all areas of the Nation, allows
flexibility to meet State, local, regional, and individual
needs, recognizes the vital link between economic development
and workforce development, equips workers with higher skills
and contributes to livelong education, eliminates training
disincentives for hard-to-serve population, educates limited
English proficient individuals to become employable, and
increases the employment, retention and earnings of individuals
with disabilities. As reflected throughout S. 1627, the
committee included these objectives among additional purposes
of WIA.
One of the purposes of the bill is to increase the
employment, retention, and earnings of individuals with
disabilities. The committee intends that the Vocational
Rehabilitation System and the One-Stops work together
appropriately to meet the employment needs of all people with
disabilities. The committee notes that only 30 percent of
people with disabilities are employed, compared to 82 percent
for those without disabilities, and approximately 79 percent of
people with disabilities who are not working want to work. The
committee strongly believes that the WIA one-stops should play
a vital role helping to increase employment and training
opportunities for individuals with disabilities. According to
the Department of Labor, ``in strengthening the ability of the
One-Stops and mainstream employment systems to serve people
with disabilities, there are multiple challenges relating to
physical and programmatic accessibility, customer relations,
and access to knowledge about accommodations and effective
service strategies.''
In recognition of these challenges, the committee has
included numerous provisions designed to improve employment
outcomes for people with disabilities. To ensure successful
employment outcomes the one-stop system must be accessible to
people with disabilities both physically and programmatically,
as section 188 requires. The term programmatic access means
policies, practices, and procedures providing effective and
meaningful opportunity for persons with disabilities to
participate in or benefit from core, intensive, training, and
support services.
Programmatic access includes providing reasonable
accommodations for individuals with disabilities, making
reasonable modifications to policies, practices, and
procedures, administering programs in the most integrated
setting appropriate, communicating with persons with
disabilities as effectively as with others, and providing
appropriate auxiliary aids or services, including assistive
technology devices and services, where necessary to afford
individuals with disabilities an equal opportunity to
participate in, and enjoy the benefits of, the program or
activity. Key aspects of the ``program'' include registration,
customer outreach, service delivery and coordination, and
performance measures and outcome data collection.
The committee intends that one-stops to be both physically
and programmatically accessible to all participants and
commends the Civil Rights Center (CRC) in the Office of the
Assistant Secretary for Administration and Management, the
Assistant Secretary for Disability Employment Policy (ODEP),
and the Assistant Secretary for Employment and Training (ETA)
for their efforts to improve employment outcomes for people
with disabilities by working together to issue the WIA Section
188 Disability Checklist and awarding numerous grants as part
of the New Freedom Initiative. The committee expects that ODEP,
working in conjunction with ETA, CRC, other program operating
components with DOL and other agencies and departments, will
continue to enhance meaningful and effective employment
opportunities for persons with disabilities consistent with the
disability-related amendments included in S. 1627. The
committee also expects that ETA and CRC will carry out their
responsibilities under section 183 for the various disability
related amendments included in S. 1627.
State Workforce Investment Boards
S. 1627 amends the State workforce investment board
membership requirements to better focus the State board on
statewide workforce and economic issues. Required members
include the lead State agency officials for one-stop partner
programs, the State economic development agency,
representatives of business, including small business, a chief
local elected officials, labor representatives, and state
legislators. Governors retain the right to designate additional
members. To ensure that the system is demand-driven and
responsive to the needs of employers, the Committee retains the
requirement that a majority of board members be business
representatives.
S. 1627 adds to the State board a representative of the
Vocational Rehabilitation (VR) program authorized under the
Rehabilitation Act of 1973. If a State has established a
separate agency or unit to provide VR services to individuals
who are blind, the Governor may appoint this person to the
State board as well as the head of the state VR agency.
It is important that States play a pivotal role in
providing resources and support for the one-stop delivery
system and in providing rapid response assistance for
dislocated workers, in conjunction with local efforts. States
also play an essential role in providing leadership, guidance,
technical assistance, professional development opportunities,
and incentives for carrying out initiatives that foster
comprehensive workforce investment systems, innovative service
strategies for meeting the needs of business and workers,
linkages between workforce and economic development, and
expanded opportunities for training tied to the skill needs of
workers and employers in the State. State Boards are an
important resource in providing such strategic leadership and
guidance in the buildings and implementation of comprehensive
statewide workforce investment systems in each State. In
particular, the committee concluded that the boards should
provide guidance to all WIA partner programs on the integration
of service delivery and on appropriate resource contributions
to the one-stop infrastructure in each State.
With regard to the one-stop delivery system, while the
committee did not provide State boards with authority to
certify the selection and operation of one-stops, S. 1627 does
require that State Boards develop objective criteria for use by
local boards in determining one-stop effectiveness and
continuous improvement. This function of the State boards is
very important to ensure consistency and high quality one-stop
delivery systems throughout the State without undermining or
lessening the role of local boards in the selection and
oversight of the one-stop delivery system within each local
area.
The committee believes that technology can, and should, be
used to make the one-stop delivery system more accessible.
Therefore, S. 1627 adds as a State board function the
development of strategies to leverage technology to facilitate
access to services provided through the one-stop delivery
system in remote areas and for individuals with disabilities.
Charles Ware, Chairman of the Wyoming Workforce Development
Council, testified before the Subcommittee on Employment,
Safety and Training on June 18, 2003 regarding the use of
technology to improve access to WIA services in rural areas.
Mr. Ware stated that: ``As Wyoming moves into its fourth year
of WIA implementation we look to new technologies like our
state's video conferencing system and Internet based programs
as a means to provide rural access to workforce services.'' The
committee urges other States and localities to leverage
technology to expand access to services.
To avoid undue disruption to the workforce investment
system, the bill retains the alternative entity grandfathering
provisions in section 111(e) of WIA. However, the committee
strongly believes that the system must be built on a
performance-based structure. Therefore, the committee decided
to base eligibility for alternative entity grandfathering on
the State's successful performance. Such determination of
whether of not a State performed successfully would be
determined by the same criteria used to determined whether or
not the State is sanctioned under section 136 of WIA.
S. 1627 also adds a section providing that the State board
has the authority to hire staff to carry out its functions
using funds allocated to the State for WIA youth and adult
activities.
State Plans
For a state to be eligible to receive money under section
127 or 132, or to receive financial assistance under the Wagner
Peyser Act, the Governor of the state must continue to submit a
state plan that outlines a 4-year strategy. This is a change
from the 5-year plan required under the previous Act. The
committee unanimously agreed that the plan should be review,
updated, and modified as needed at the end of 2 years, to
accurately reflect the labor market and economic conditions of
the state. Should the State determine that modifications are
necessary, such modifications shall be submitted to the
Secretary.
The State plan shall continue to include:
(1) A description of the State board;
(2) The requirements for the State workforce
investment system;
(3) A description of the State accountability system;
(4) Information on the current employment needs
within the state by occupation, the skills necessary to
obtain those jobs, the skills and economic development
needs of the State, and the type and availability of
workforce investment needs;
(5) Designation of local areas within the State;
(6) Identification of criteria to be used by chief
elected officials for local boards' membership;
(7) The Wagner-Peyser plan;
(8) A description of the procedures to assure
coordination of and avoid duplication among programs
under Title II of the Social Security Act, Title XIX of
such act, programs authorized under Title VII of the
Rehabilitation Act of 1972, and programs carried out by
State agencies relating to mental retardation and
developmental disabilities;
(9) A description of the process used by the state to
provide an opportunity for public comment;
(10) Information about how the State will use
resources to leverage other funds and maximize
effectiveness, including a new provision to include how
the State will provide incentives for improved
performance and technical assistance;
(11) Assurance that the State will provide the fiscal
control and fund accounting procedures to ensure proper
disbursement of funds under this act;
(12) A description of the methods and factors the
State will use in distributing funds for youth
activities and adult employment and training
activities;
(13) Information specifying the actions that
constitute conflict of interest;
(14) A description of how the State will operate an
effective one-stop delivery system;
(15) A description of the appeals process;
(16) A description of the competitive process to
award grants and contracts;
(17) A description of the employment and training
process, rapid response activities, procedures for
selecting training providers, and specifically how the
State will meet the needs of hard to serve populations,
including the use for the first time of local
customized training and training for non-traditional
employment; and
(18) A description of the State strategy for
providing comprehensive services to youth, particularly
those facing barriers to employment, for identifying
criteria to be used by local boards in awarding grants
for youth activities, describing the coordination with
Job Corps, and describing how the State will coordinate
youth activities with the newly created youth challenge
grants.
To reflect the purpose of the bill, S. 1627 expands the
provisions of the State plan to also include a description of
the following:
How the State will use technology to facilitate
access to services in remote areas;
The State strategy for coordinating workforce
investment activities with economic development
activities;
The State strategy for regional cooperation and
planning;
The State strategy for innovative programs to meet
the needs of businesses, including small businesses
which may include incumbent workers training programs,
sectoral and industry cluster strategies, regional
skills alliances, career ladder programs, utilization
of effective business intermediaries, and providing
technical assistance;
The State strategy for ensuring cooperation between
transportation providers and workforce investment
activities;
How the State will assist local areas in assuring
physical and programmatic accessibility for individuals
with disabilities at one-stop centers;
The process and methodology that will be used by the
State board to review statewide policies, establish in
consultation with local elected officials the
procedures and objective criteria for use by local
boards in assessing the effectiveness and continuous
improvement of one-stop centers and the one-stop
delivery system, and determine the costs of the
infrastructure of the centers and the formula for
allocating the refunds for such infrastructure if it is
in use;
The State strategy for ensuring that activities
carried out under this title are placing women and men
in jobs, education and training that lead to comparable
employment; and
The technical assistance available to one-stop
operators and training providers for strategies to
serve hard-to-serve populations and promoting placement
in non-traditional employment.
The State must also describe how it will serve the
employment and training needs of individuals with disabilities,
consistent with Executive Order 13217, relating to community-
based alternatives for individuals with disabilities. In
addition, the State must also coordinate Independent Living
Services with other programs and activities under the State
plan.
Further, the State must describe how it will assist local
areas in assuring physical and programmatic accessibility for
individuals with disabilities at the one stop centers. The
Committee suggests that the WIA Section 188 Checklist provides
useful information to States in meeting this requirement.
Local Workforce Investment Areas
The committee believes strongly that the reauthorization of
the Workforce Investment Act must build upon the locally based,
private sector led workforce investment system established in
1998. It should in no way impede local progress, innovation,
and partnerships forged with the private sector. The wholesale
re-designation of local areas, including the Nation's largest
metropolitan areas, would be tremendously disruptive to the
entire workforce development system.
We believe that local workforce investment areas
established under the Workforce Investment Act of 1998 should
be maintained based upon their fiscal integrity and performance
established jointly with the states as defined in section
136(c). Furthermore, local areas with a population of 500,000
or above and local areas which have grown in population to
500,000 or above according to the 2000 Census should be given
the opportunity to be automatically designated by the Governor
and given a 2-year grace period to prove their performance and
fiscal integrity under the new Act.
The committee also believes that Governors should have the
flexibility to maintain their single local area state
designations if the Governor identifies the State as a local
area in the State plan under section 112(b)(5).
In keeping with the committee's theme of increasing
flexibility in the reauthorization, the Governor of a State
does have the ability to designate the State as a single local
area if no local area meeting automatic designation
requirements in the bill requests such designation.
The committee strongly believes that regional planning
among local boards may be an effective tool in appropriately
leveraging and targeting scarce training resources in local
labor markets. The committee encourages those local workforce
areas, where a common regional labor market may exist, to
develop a coordinated regional plan to better assist workers
and employers with their employment needs.
Local Boards
The committee has heard concerns that the large size of
local boards and focus on bureaucratic issues has deterred the
engagement of local business representatives. The committee
believes that the involvement of local businesses, including
small businesses, is critical to an effective workforce
development system. To increase the involvement of the business
sector and focus the board on workforce planning and decision-
making, S. 1627 eliminates the requirement that each of the
one-stop partners be a member of the local board. While one-
stop partner programs are no longer required local board
members, the bill allows the local board to establish or
continue advisory councils to assist the board. Such advisory
council(s) could include one-stop partners. Furthermore, the
bill retains the authority of the chief local elected official
to appoint to the local board such other individuals or
representatives as the chief local elected official deems
appropriate.
S. 1627 also provides direction on the types of
representatives to be appointed to the local board. The
workforce investment system must effectively tap into the
opportunities provided by small businesses and high-growth and
emerging industries. The committee believes that greater
involvement of high-growth and emerging technologies and small
businesses is needed.
In order to keep up with the rapid rate of technological
changes, information technology (IT) skills training is
essential to create a more effective and productive workforce
and remain globally competitive. A comprehensive array of IT
services and solutions should be offered to meet the needs of
the worker and employer. As the U.S. economy becomes more
dynamic, the types of growing industries are changing. Many new
jobs are in technology-based industries and service industries
and the demand for IT-skilled workers is increasing.
To ensure that business representatives reflect a cross-
section of businesses and the changing economy in the area, S.
1627 requires that the local board include representatives of
high-growth and emerging technologies in the local area, as
well as small businesses. S. 1627 also requires that board
members represent diverse geographic areas within each local
area.
Current law requires that all local boards establish a
youth council. While some local youth councils have no doubt
been effective, other youth councils have not. Because of the
burden of establishing and operating youth councils that are
not consistently effective, the committee has decided to
eliminate the requirement for establishing a youth council.
However, the bill gives local boards the option of continuing
or establishing a youth council. While, youth councils are no
longer mandatory, the committee believes that the needs of out-
of-school youth must be represented at the local level.
Therefore, if the local board opts not to have a youth council,
the bill requires experts on serving out-of-school youth to be
represented on the board.
The committee believes that participants in the workforce
investment system should be able to choose among qualified
training providers that best meet their individual needs. To
enhance consumer choice and integration of individuals with
disabilities, the local workforce board must ensure that there
are sufficient providers of intensive and training services in
a manner that maximizes local choice, including providers with
expertise in assisting individuals with disabilities. The
committee believes that community providers often have creative
and innovative approaches for addressing the needs of
individuals with disabilities, particularly those with the most
significant disabilities.
The committee believes that technology can, and should, be
used to make the one-stop delivery system more accessible.
Therefore, S. 1627 adds as a local board function the
development of strategies to leverage technology to facilitate
access to services provided through the one-stop delivery
system in remote areas.
The committee has decided to include a limited alternative
entity grandfathering provision. Eligibility for alternative
entity continuation is limited to a local entity that was in
existence on August 7, 1989 pursuant to State law.
Local Plans
As in the State plan, the local plan is changed to a 4-year
plan with a provision that at the end of year 2, the local
workforce board will review and amend the plan as needed to
reflect labor market and economic conditions.
The plan will include:
(1) An identification of businesses, job seekers and
workers in a local area, the current and projected
employment opportunities, and the job skills necessary
to obtain employment;
(2) A description of the one-stop delivery system,
including a description of how the local board will
ensure the continuous improvement of the training
providers and a description of how the local board will
ensure within remote areas physical and programmatic
accessibility for individuals with disabilities at one-
stop centers. There is no longer a requirement to
include a physical copy of the memorandum of
understanding;
(3) A description of the local levels of performance
negotiated with the Governor and chief elected
official;
(4) A description and assessment of the type and
availability of adult and dislocated worker training
activities;
(5) A description of how the local board will
coordinate workforce investment activities carried out
in the local area with rapid response activities;
(6) A description and assessment of youth activities
in the local area;
(7) A description of the process used by the local
area to ensure adequate public comment by various
stakeholder groups;
(8) An identification of the entity responsible for
the disbursal of grant funds;
(9) A description of the competitive process for
grants and contracts;
(10) A new requirement for a description of how the
local board will coordinate workforce investment
activities with economic development activities;
(11) A new requirement for a description of the
strategies and service that will be initiated in the
local area to more fully engage employers, including
small employers, to improve workforce and economic
development, including such activities as incumbent
worker training, sectoral and industry cluster
programs, career ladder programs, the use of business
intermediaries, and other business services and
strategies;
(12) A new requirement for a description of how the
local board will expand access to education and
training services and the utilization of other
resources;
(13) A new requirement for a description of how the
local board will coordinate workforce investment
activities carried out in the local area with the
provision of transportation; and
(14) As in current law, any other information that
the Governor may require.
As in current law, the local plan submitted to the Governor
shall be considered approved at the end of the 90-day period,
beginning on the day the Governor receives the plan, unless the
Governor makes a written determination during the 90-day period
that there are deficiencies in activities or the plan does not
comply with the title.
Establishment of One-Stop Delivery Systems
The committee is very concerned about the ongoing
challenges facing local areas to maintain infrastructure
funding for the one-stops in their communities. Members
explored a variety of options seeking to ensure long-range
financial stability for the operations of the one-stops.
There are significant infrastructure costs incurred in
establishing and maintaining the approximately 1,900 one-stops
around the country. Local boards have sought to develop
Memoranda of Understanding (MOUs) with each participating
partner program in order to cover some of these infrastructure
costs. While the process has worked well in some local
communities, in other local areas problems have arisen because
of uncertainty in determining the amount of partner
contributions.
The bill provides for continued use of MOUs to establish
partner contributions at the local level. The committee
encourages the development of local memoranda of understanding
so that the infrastructure funding of one-stops is accomplished
with the cooperation and participation of one-stop programs
partners while minimizing any disruption of program partners'
ability to meet the service needs of their target populations.
However, if a local area fails to successfully negotiate
MOUs, the Governor is given the authority to require and
determine the amount of contributions from partner programs.
There are limitations placed on the amount non-WIA partner
programs can be required to contribute (1.5%). In all cases,
committee strongly believes that the contributions from non-WIA
partners should be an amount equivalent to the cost of the
proportionate use of the one-stop centers in the local area.
The bill does recognize and allow for the continuation of pre-
existing agreements that exceed the cap until terminated by the
parties.
In States where a State government official other than the
Governor has authority over the administration of a program,
such as VR, the bill allows the State official to determine the
infrastructure costs for that program, in consultation with the
Governor.
The bill also provides a phase-in for contributions by
vocational rehabilitation programs administered under the
Rehabilitation Act. Section 117 of the bill places special
limitations on infrastructure contributions from vocational
rehabilitation (VR) programs administered under the
Rehabilitation Act. In cases where the Governor must determine
infrastructure contributions, a VR program will not be required
to provide more than .75 percent of the amount it receives in
the second program year beginning after the date of enactment
of the bill; more than 1 percent of the amount it receives in
the third program year; more than 1.25 percent of the amount it
receives in the fourth program year; and more than 1.5 percent
of what it receives in the fifth and each succeeding program
year. The committee believes that this provision will result in
a fair and equitable determination of infrastructure costs for
VR programs. In addition, the committee emphasizes that VR
programs would be subject to the Governor's determination only
in cases when partners in a local area cannot agree on a
Memorandum of Understanding. In addition, the committee does
not intend that solely referring an individual with a
disability to the Vocational Rehabilitation Agency be
considered ``proportionate use'' for the purposes of
calculating infrastructure support.
While the committee feels strongly enough about the
importance of ensuring adequate financial support for one-stop
development to allow Governors, working in concert with State
workforce investment boards, to allocate for this purpose a
percentage of program partner administrative funds, the
effective course for achieving the same goal is likely to be
found through the collaborative process of developing a
Memorandum of Understanding carried out at the local level.
The committee also believes that the concept of
proportionate use means the same thing as the cost of
allocation concept embedded in the Office of Management and
Budget (OMB) Cost Principles Circulars. The Circulars establish
the principle that Federal programs should bear an equitable
proportion of shared costs based on the benefit received by
each program and the benefits received by the population served
by each program. The specific method for determining
proportionate costs may vary, but the principle of cost
allocation is applicable to all methods of financing one-stop
systems under the bill.
The committee notes that only postsecondary vocational and
technical activities authorized under the Carl D. Perkins
Vocational and Technical Education Act are included as a
required one-stop partner under WIA. Therefore, S. 1627
requires contributions to the one-stop system from only that
portion of the administrative funds allocated to a State's
postsecondary vocational and technical education activities
authorized under Carl D. Perkins Vocational and Technical
Education Act.
Continuous Improvement of One-Stop Systems
Many stakeholders have raised concerns about the lack of
accessibility of one-stop centers for hard-to-serve
populations, particularly individuals with disabilities and
individuals with limited English speaking proficiency.
In part to address these concerns, the bill requires the
State board, in consultation with the chief local elected
official and local boards, to establish procedures and
objective criteria for use by local boards in periodically
assessing the effectiveness, physical and programmatic
accessibility, and continuous improvement of one-stop systems.
Physical and programmatic accessibility applies to all
populations listed in the hard-to-serve population definition,
including individuals with disabilities and individuals with
limited English speaking proficiency.
The committee suggests that the WIA Section 188 Checklist
is a very useful tool to assist State boards with respect to
assessing physical and programmatic accessibility for people
with disabilities.
Eligible Providers of Training Services
The committee considers the eligibility criteria and
corresponding reporting requirements for training providers in
current law to be major obstacles to full participation by
would-be WIA training providers. In many areas, qualified
training providers have refused to make large numbers, or even
any, of their programs eligible to receive WIA training
referrals because of the burden imposed by these requirements--
clearly an unfortunate and unintended development. The primary
intent of the eligible training provider list is to ensure that
WIA participants can make informed choices between training
programs.
The General Accounting Office (GAO) presented testimony to
the Subcommittee on Employment, Safety, and Training on July
18, 2003 regarding the impact of reporting requirements on the
availability of training options for job seekers:
Training options for job seekers may be diminishing
rather than improving, as training providers reduce the
number of course offerings they make available to WIA
job seekers. According to training providers, the data
collection burden resulting from participation in WIA
can be significant and may discourage them from
participating. For example, the requirement that
training providers collect outcome data on all students
in a class may mean calling hundreds of students to
obtain placement and wage information, even if there is
only one WIA-funded student in that class.
The committee intends to promote consumer choice and
provider accountability, while simplifying the process to
increase the participation of qualified training providers.
Eligibility requirements for the Eligible Training Provider
List vary widely among local areas. As a result, many excellent
training provider organizations cannot attain approval and thus
are precluded from formal approval on the Eligible Training
Provider List. The committee envisions more user-friendly
protocols in order to enhance training provider access to the
Provider List. This also would ensure that workers have access
to a wider selection of approved training providers as well as
greater choice of training programs.
S. 1627 eliminates the current eligibility requirements and
authorizes Governors to establish new criteria in their stead.
Governors are in the best position to devise eligibility
criteria that will ensure that quality training options are
available to WIA participants, while not imposing unduly
burdensome reporting requirements on training providers. For
this reason, S. 1627 invests final discretion with the
Governors, but lists a number of factors that the Governors
shall take into account when devising their criteria.
S. 1627 requires the Governor's criteria to take into
account the performance of training providers on outcomes ``for
those individuals receiving training services under this
subtitle.'' Training providers repeatedly cite the requirement
to report outcomes data for all students in an eligible
program, regardless of the number of WIA participants in that
program, as the most burdensome of the current requirements.
Although S. 1627 does not prohibit Governors from requiring
such reporting, by specifically referring to outcomes for WIA
participants, the training providers will be statutorily
required by WIA to report outcomes data for WIA participants
only.
To improve access to services in rural areas, S. 1627
requires the Governor's criteria to take into account the need
to ensure access to training services throughout the State. The
committee believes that the use of industry recognized
standards should be encouraged where practicable, but should
not be required. The committee also determined that the ability
to provide training services to hard-to-serve populations,
including individuals with disabilities must be a criterion.
S. 1627 requires Governors to take into account the
information such providers are required to report to State
agencies with respect to Federal and State programs, including
partner programs, when devising eligibility criteria. The
committee notes that, outside of WIA, most public institutions
of higher education report substantial amounts of performance
outcome data to the States. In such instances, the committee
encourages governors to devise eligibility criteria derived
from the information already reported to the State by training
providers. This would represent a significant reduction of the
burden placed on training providers, while still adequately
safeguarding the interests of WIA participants.
The committee determined that States should continue to
publish statewide lists, and be allowed to determine exactly
what information should be reported. The committee expects that
such information will be closely aligned with the performance
measures established under this Act and be relevant to the
vitally important underpinning of informed choice established
in WIA. The committee determined, however, that it was
important that local workforce investment boards continue to
have the ability to add performance criteria for training
providers within their local areas, for use in determining
eligibility and continued participation of such providers in
the WIA system. However, the committee does not intend such
additional local criteria to impede consumer choice.
S. 1627 further retains language exempting on-the-job
training and customized training providers from the requirement
that they must be listed on the statewide list in order to be
eligible to provide services under WIA. Such services and
service arrangements are so locally negotiated that they do not
lend themselves to such statewide requirement.
The committee recognizes the need for a transition period
for implementation of the new requirements. S. 1627 requires
that the amendments to the eligible provider requirements be
implemented not later than December 31, 2004. The committee
encourages Governors to implement such changes prior to
December 31, 2004. To avoid undue disruption to the system and
facilitate early implementation, the Governor is authorized to
establish procedures for allowing currently eligible training
providers to continue to provide services until December 31,
2004.
Under current law, local areas are required to determine
eligible providers of youth services using a competitive
process. The committee has found that the competitive bidding
requirement has been difficult to implement in areas with few
providers, particularly rural providers. Therefore, the bill
authorizes local boards to award grants or contracts on a sole-
source basis if the local board determines that there are not a
sufficient number of providers in the local area.
Youth Activities
The Secretary shall continue to make an allotment to
provide services for eligible youth. For each fiscal year in
which the amount appropriated exceeds $1 billion, the Secretary
shall reserve 1.5 percent of such amount to provide youth
services to Native Americans, the greater of $10 million or 4
percent of the total for migrant and seasonal farm work youth,
and up to $250 million for the new youth challenge grants. One-
fourth of 1 percent will be appropriated to provide assistance
to the outlying areas, and the Secretary shall use those funds
to award grants to Guam, American Samoa, the Commonwealth of
the Northern Mariana Islands and the Freely Associated States
through the Pacific Regional Educational Laboratory. The
committee recognizes the importance of the migrant farm worker
youth program, which serves the unique needs of this vulnerable
youth population.
This bill eliminates the mandatory youth councils. This
committee recognizes the important role that Youth Councils
have played in the design and implementation of programs geared
to the unique needs of young people. Local areas are encouraged
to continue successful youth councils or develop advisory
groups on or beyond the local board to adequately meet the
educational and occupational needs of young people.
The committee addressed a very important issue plaguing the
workforce investment system over the past several years--
questions over workforce system expenditures--by requiring that
states' and local areas' total accrued expenditures must reach
70 percent each program year, or the unspent amounts shall be
subject to reallotment or reallocation, respectively. To ensure
that States and localities have adequate time to plan for such
a major change in spending requirements, the Committee
established the effective date for such new requirements as the
latter of PY 2004, or the program year after the date of
enactment of the WIA Amendments of 2003. With respect to the
definition of ``accrued expenditures'', the annuities,
insurance claims, and other benefits are not intended to be the
exclusive list of other amounts becoming owed under programs
for which no current services or performance are required.
Other long-term training obligations would also fall within
accrued expenditures.
Under youth activities, up to 60 percent of the funds will
serve in-school youth, age 14-21, and not less than 40 percent
will fund activities for out-of-school youth, age 16-21. States
may supply information to say that the unique needs in their
state require that they serve more in-school youth.
Out-of-school youth are defined as 16-21 year olds who have
dropped out of school, or who are within the compulsory age of
school attendance but have not attended for a calendar quarter,
or who are a low-income individual who is deficient in basic
skills or LEP and not attending any school but has received a
diploma, subject to the juvenile justice system, a low-income
youth who is pregnant or parenting, a homeless, runaway, or
foster child who is not attending school, or a low-income
individual who requires assistance in completing an education
program or to secure or hold a job.
In-school youth are youth aged 14-21 who are low-income and
deficient in basic skills or LEP, or homeless, a runaway, or a
foster child, or pregnant or parenting, or an offender, or an
individual who requires additional help to complete an
education program or to secure a job. Up to 5 percent of the
participants in each local area may be individuals who are not
low-income with respect to the individuals for whom low-income
is a requirement for eligibility under this section. The
committee believes that students should be able to be served
during school hours to provide drop out prevention counseling
and programs, in addition to before and after school and in the
summer.
Statewide activities may include conducting evaluations,
research and demonstration projects; providing incentive grants
to local areas for regional cooperation and for exemplary
performance providing technical assistance and capacity
building to local areas, one stop partners, and eligible
providers; operating a fiscal and management accountability
information system; carrying out monitoring and oversight
activities; providing additional assistance to local areas that
have high concentrations of eligible; supporting the
development of alternative programs and other activities; and
supporting the provision of core services.
Only 5 percent of the money can be used for administrative
activities. The committee carefully considered the implications
of any proposed changes to the definition of administrative
cost. Members of the committee strongly urge the Department of
Labor to work the States, localities, and other system
stakeholders in consideration of any changes to the existing
regulatory definition of administrative cost.
The purposes remain the same as current law. Local programs
are to provide an assessment of the academic levels, skill
levels, and service needs of each participant, basic skills,
occupational skills, prior work experience, employability,
interest and aptitudes. This bill adds activities leading to
the attainment of a secondary school diploma or its equivalent,
and effective connections to employers in the state, in sectors
of the local and regional labor markets that are experiencing
high growth in employment opportunities.
The program elements must include a priority on exposing
youth to technology and nontraditional jobs, and may use
techniques such as on-the-job training, or opportunities to
acquire financial literacy skills.
Adult and Dislocated Worker Employment and Training Activities
Witnesses at the hearing held in June before the
Subcommittee on Employment, Safety, and Training testified
extensively about the challenges in providing appropriate
levels of training under the new Act. The principal problem
identified was the DOL interpretation of the sequencing of
services language found in the current Act.
The committee recognizes that the number of adults and
dislocated workers who received training in the initial year of
full WIA implementation fell by 73 percent as compared to the
number who received training during the final year of the Job
Training Partnership Act (JTPA). While the number of
individuals who received training in the second year of WIA
increased slightly, the number was still far lower than under
the final year of JTPA.
The committee has concluded that the sequential eligibility
rules have caused confusion at the state and local level, and
delays and denials of services to those who could benefit from
them. Further, the committee believes the sequential
eligibility rules have sent the wrong message that intensive
and training services should be reserved for individuals who
truly cannot find employment on their own.
This interpretation has often precluded the use of WIA
training to help low-wage workers, whether between jobs or
currently employed, advance to better jobs. The bill amends
current law to provide that if an individual were unlikely or
unable to obtain employment that leads to self-sufficiency or
wages comparable to or higher than previous employment (with
respect to unemployed individuals) through core services, and
is in need of intensive services, the individual would be
eligible for intensive services.
Eligibility for training services is also changed in the
bill to require a determination that an individual is unlikely
or unable to obtain or retain employment that leads to self-
sufficiency wages comparable to or higher than previous
employment through intensive services.
To allow greater flexibility to meet State workforce needs,
the bill allows the Governor to redistribute rapid response
funds that are unexpended at the end of the program year.
To avoid duplication of services and enhance coordination
of services, the committee agreed to require the collocation of
Wagner-Peyser employment services at the comprehensive one-stop
centers.
S. 1627 allows local areas to spend up to 10 percent of
their local funding for adults and dislocated workers to serve
incumbent workers and is in keeping with one of the key themes
of the bill--a workforce investment system that has the
capacity to provide a broad range of workforce development
products and services that businesses need to remain
competitive.
The committee strongly believes that the system must be
``user-friendly'' for both job seekers and employers. The
committee recognizes that small businesses face unique
workforce needs and challenges. The workforce investment system
must meet the needs of small employers, as well as larger
employers. The committee the designated of a local business
liaison in the local to make the workforce system more ``user-
friendly'' to business and responsive to employer needs.
Since its initial implementation, the workforce investment
system has progressed significantly to establish relevant
initiatives and services to meet employers' needs. Much of this
work has occurred as a result of the private sector leadership
on local workforce investment boards. Consequently, in
considering changes to WIA that would make the system more
relevant for employers, it was clear that the leadership role
of business in the design and implementation of the workforce
investment system should be strengthened, and that services for
business should be significantly improved, to encourage
employers to fully utilize the WIA system.
S. 1627 accomplishes this by building upon and
strengthening the roles of State and local business-led boards
over design of the comprehensive workforce system. The bill
requires strong linkages between State and local economic and
workforce development efforts. It encourages the
identification, development, and implementation of innovative
and successful services and strategies that are designed to
meet the needs of business, which may include: incumbent worker
training programs; sector and industry cluster strategies;
brokering and business intermediary strategies; career ladder
programs; and other business services and strategies that
better engage employers in workforce activities and make the
workforce investment system more relevant to the needs of State
and local businesses.
The bill expands allowable Statewide and local employment
and training activities to include activities that improve
coordination between employment and training assistance and
programs for individuals with disabilities. These include
programs relating to mental retardation, development
disabilities, and independent living.
Performance Accountability Measures
Congress passed WIA to better serve our Nation's job
seekers and employers. The committee strongly believes that
States and localities must be held accountable for their
performance. However, the committee is concerned that WIA's
performance measures do not provide a complete and accurate
assessment of how well States and localities are serving the
needs of workers and employers. The committee is also concerned
that the performance measures are discouraging states and
localities from serving job seekers who face greater difficulty
in finding employment or increasing their earnings.
The General Accounting Office (GAO), in its June 18, 2003
report entitled ``Exemplary One-Stops Devised Strategies to
Strengthen Services, but Challenges Remain For Authorization,''
found that:
The performance measurement system under WIA may be
causing some clients to be denied services and does not
allow for an accurate understanding of WIA's
effectiveness. First, the need to meet performance
levels may be the driving factor in deciding who
receives WIA-funded services at the local level.
Officials in all five states we visited for one study
told us that local areas are not registering many WIA
participants, largely because local staff are reluctant
to provide WIA-funded services to job seekers who may
be less likely to find employment or experience
earnings increases when they are placed in a job.
After extensive deliberation over the performance measures
in WIA, the committee determined not to include an efficiency
measures due to concerns that such a measure may lead to
creaming (serving only those workers who are most job-ready)
and to a lessening of more costly services, including training,
for individuals with the most serious barriers to employment
(i.e., individuals with disabilities, low education and skills
levels, limited English proficient, etc.).
The committee also provides for the use of a regression
model for further adjustment of performance measures to reflect
the local economy and characteristics of population receiving
services. Such a model ensures that local areas are not
penalized for serving people with multiple barriers to
employment and takes into account changes in local economic
conditions when evaluating performance outcomes. Finally, to
further capture the system's success in meeting the needs of
employers, the bill encourages States to work with State
business and industry associations, employee representatives,
and with local boards to identify additional indicators to
measure the performance of the workforce system in meeting the
needs of employers in the State and local areas.
The committee also decided to retain customer satisfaction
and skills attainment as core indicators of performance.
Customer satisfaction is essential in determining whether or
not the system is meeting the needs of its customers. However,
the committee recognizes the difficulty of measuring customer
satisfaction in a uniform and comprehensive manner. Therefore,
the committee determined that states and localities should not
be subject to sanctions based on customer satisfaction. The
committee believes that skills attainment is essential if the
workforce investment system is to meet the skill requirements
of American employers.
The committee was concerned by the lack of measures to
gauge the performance of the one-stop system as a whole. In
order to measure the system wide performance for the one-stop
delivery systems, the bill requires the Secretary of Labor to
establish national goals for the adjusted levels of performance
for system wide performance.
The General Accounting Office (GAO), in its June 18, 2003
report entitled ``Exemplary One-Stops Devised Strategies to
Strengthen Services, but Challenges Remain For Authorization,''
observed that:
[N]o program has a measure to track job seekers who
only use self-service or informational activities
offered through the one-stop, which may constitute a
large proportion of job seekers. Not knowing how many
job seekers use the one-stop's services limits the one-
stop's ability to assess its impact.
The committee carefully considered removing the exclusion
of those receiving self-service and information activities from
the performance measures. In response to concerns raised by
states and localities that removing the exemption is not
practical, the committee decided to retain the exclusion. The
committee strongly encourages local areas to utilize technology
(such as swipe cards) to capture information about those that
are using the system.
States are not currently required to report to the
Department of Labor on the amount of WIA funds spent on
training versus core and intensive services. As a result,
stakeholders and taxpayers do not have access to national data
on the amount of federal WIA funds spent on training; only
three States included information on the share of funds spent
on training in their 2001 WIA annual reports. In connection
with the Committee's intent to increase access to training, the
bill requires State annual reports to include information on
the amount of adult and dislocated worker funds spent on core,
intensive, and training services, respectively. The bill also
requires the State report to include the amount and percentage
of funds, if any, spent on business services.
Many stakeholders have raised concerns that the current
system of negotiating performance levels, which was intended to
allow the adjustment of expected levels, has not worked well.
Therefore, the bill requires that both State and local
performance measures be adjusted using objective statistical
methods based on characteristics of hard-to-serve populations.
The committee also wants to ensure that the negotiation of
performance levels between the Department of Labor and the
States is indeed occurring. The committee also believes that
effective negotiation between the Governor, the local board and
the chief elected official is essential to effective
performance at the local level. This negotiation and agreement
must take place in order for states and localities to meet
desired performance.
When reconsidering both local areas' designation and the
system's performance standards, the committee determined that
it should continue to build upon the performance-base structure
established under WIA. Members decided to base continued local
area designation, largely upon the performance and fiscal
integrity of local workforce investment areas. Such
determination of whether or not a local area performed
successfully would be determined by the same criteria used to
determine whether or not states and local areas are sanctioned
for poor performance under section 136 of WIA.
In order to address concerns that good, even exceptional
programs may have problems meeting a specific standard due to
economic or other circumstances in a local community, the
committee decided to allow sanctions to be imposed only when
the State's or local area respectively, performs at less than
80 percent of the local area's sum or cumulative adjusted level
of performance for the core indicators of performance described
in WIA, for two consecutive years. In other words, a state or
local area that performs very well on average--maybe even at an
A- or B+ cumulative average, but fails to meet a single
measure, such as the wage increase standard for two consecutive
years (which may be due to economic circumstances in the local
area beyond their control), will not be sanctioned or lose
their local area designation as long as they retain an 80
percent cumulative average. The bill does not require
performance of less than 80 percent on all the core indicators
for two consecutive years in order for sanctions to be applied.
It is the committee's intent to provide additional funds to
the local areas exceeding their performance measures. The
Committee also aims to encourage local areas to serve hard-to-
serve populations, coordinate employment services under the
Wagner-Peyser Act and WIA core services, expand access to
training, and implements innovative business and economic
development strategies. It is the committee's intent to provide
additional funding to local areas that do an exemplary job of
serving hard-to serve populations or effectively coordinating
employment services under the Wagner-Peyser Act and WIA core
services, expanding access to training, or implementing
innovative business and economic development strategies.
Appropriations
While the 1998 law provided for an authorization of
appropriations for a 5-year period, S. 1627 authorizes
appropriations for a 6-year time period. In Section 123, the
committee authorizes such sums as may be necessary for each of
fiscal years 2004 through 2009 for youth activities, adult
employment and training activities, and dislocated worker
employment and training activities. Current law is retained and
remains applicable as to the disbursement of these funds. For
single local area States, the Governor could decide to do
statewide activities with such incentive grant funds.
Job Corps
The committee made very few changes to the 1998 law
regarding the Jobs Corps program. The bill expands Job Corps
eligibility for individuals who qualify for the Chafee Foster
Care Independence Program (which relates to youth aging out of
the foster care system), as long as these individuals meet
other criteria under WIA.
Current law requires that each Job Corps center establish
an industry council responsible for such activities as
reviewing labor market information to determine the employment
opportunities in the local areas for Job Corps students. S.
1627 includes new language to ensure that council members who
are employers from outside the local area should those who are
likely to hire a significant number of Job Corps enrollees. The
bill also requires that industry councils within single local
area States must include a representative of the State Board.
S. 1627 amends significantly the performance indicators for
Job Corps Centers by directing the Secretary to establish
annually expected levels of performance for Centers that relate
to each of the core indicators for youth activities, namely the
entry into employment, education or advanced training, or
military service, the attainment of secondary school diplomas
or their recognized equivalents, and postsecondary
certificates; or literacy or numeracy gains. The committee
believes that using common performance measures for all federal
youth programs will assist in comparing the effectiveness of
these programs with each other.
The committee commends Job Corps for its recent efforts to
increase opportunities for participants to earn a high school
diploma through the establishment of its High School Diploma
Initiative (HSDI). The committee encourages the Department of
Labor, in consultation with the Department of Education, to
examine any potential barriers to Job Corps' participants
ability to earn and receive high school diplomas.
Native American Programs
The committee recognizes the unique relationship between
the American Indian, Alaska Native and Native Hawaiian
populations and the Federal government. The programs authorized
under Section 166 of WIA are to be implemented in a manner
consistent with the overall Federal policy toward these groups.
The committee believes that, in order for these programs to
be effective, the services of WIA Native American programs must
be delivered in a way the meets the special characteristics of
these groups and the economic circumstances of Native
communities. The bill includes language providing for
performance indicators and standards for such programs
developed in consultation with the Native American Employment
and Training Council and which are based on these special
characteristics and circumstances.
The WIA Native American programs are an important component
of the full array of Federal programs provided specifically for
Native Americans. The committee urges the Native American
programs authorized under WIA to work closely with other
services provided for Native Americans. The committee
recognizes that many tribes and off-reservation organizations
have long provided workforce and other services within their
own communities.
Migrant and Seasonal Farmworker Programs
The committee has retained authorization of the Migrant and
Seasonal Farmworker Program. While the committee encourages
one-stops to improve services to migrant and seasonal farm
workers, the committee recognizes the unique needs of this
population which necessitate retention of this program. S. 1627
adds a specific reference to the provision of permanent housing
as an authorized activity.
Youth Challenge Grants
Not less than 80 percent of the funds over $1 billion that
are reserved by the Secretary shall be used to fund competitive
Youth Challenge Grants; up to 20 percent of the money shall be
used to fund discretionary youth programs.
A State or consortium of States, a local board or
consortium of boards, an eligible Native American program, or a
public or private entity with expertise in the provision of
youth activities apply with a local board or consortium of
boards may apply for the competitive grants.
The eligible entities shall apply to the Secretary and
include a description of the activities and the collaboration
with state and local workforce investment systems, a
description of the programs of demonstrated effectiveness, a
description of the State, local and private resources that will
be leveraged by the grant funds, the levels of performance the
eligible entity expects to achieve, an assurance that the State
board will endorse these activities, and any other information
that the Secretary shall require.
In awarding grants under this program, the Secretary shall
make 2-year grants that may be renewed for an additional 3
years if successful, that take into account the quality of the
proposed activities, the goals of the project, the extent to
which the proposed activities are based on proven strategies,
the extent of collaboration with the State and local workforce
investment systems, the extent of employer involvement, whether
there are other federal funds available for such activities,
and the quality of the proposed activities in meeting the needs
of the youth to be served. The Secretary shall make sure that
there is equitable distribution in awarding the grants.
An eligible entity that is awarded a grant shall use the
grant funds to carry out activities that are designed to assist
youth, 14-21, in acquiring the skill, credentials, and
employment experience that are necessary to succeed in the
labor market. Activities may include training and internships
for our-of-school youth, dropout prevention activities,
activities designed to assist special youth populations,
activities that include work experience, paid internships, and
entrepreneurial training in areas where there is a migration of
youth out of the area.
Grantees shall provide a match of no less than 10 percent
that the Secretary may require as cash or in-kind non-federal
resource.
The Secretary shall reserve up to 3 percent of the funds
for technical assistance and evaluation of program outcomes.
In the establishment of the National Youth Challenge Grants
program, Members of the Committee urge the Secretary of Labor
to give consideration for the continued funding of successful
Youth Opportunity Grant programs. The Youth Opportunity Grants
represented a billion dollar investment to increase the long-
term employment of youth between the ages of 14 and 21 living
in 36 high-poverty urban, rural, and Native American sites. To
achieve this goal, the Youth Opportunity Grants concentrated
resolves in these areas to bring about community-wide impacts
on employment rates, high school completion rates and college
enrollment rates. Its successor, the Youth Challenge Grants,
should draw on the lessons learned through this billion dollar
investment and give priority in the award of Youth Challenge
Grants to successfully performing Youth Opportunity Grants.
Such an approach will ensure the continuation of Youth
Opportunity Grant sites already improving the local employment
rates for at risk youth, and avoid the unnecessary waste of
limited youth funding by eliminating the need for the
substantial start up costs that other new Youth Challenge
Grants will require.
The Secretary's discretionary grants shall be made to a
public or private entity, ensuring an equitable geographic
distribution, to provide eligible youth, age 14-21, in
economically distressed communities, to complete school and
gain the skills necessary to qualify for employment. The
Secretary will determine at least a 10-percent match, and may
require an evaluation of all funded projects. The committee
recognizes that rural areas are often disadvantaged in a
competitive grant process. Therefore, the bill directs the
Secretary to ensure an equitable distribution to rural areas in
awarding discretionary grants.
Technical Assistance
The committee recognizes the importance of guidance and
technical assistance the Department of Labor provides to State
and local boards around the country. The committee strongly
encourages the Department to ensure adequate technical
assistance and guidance to State and local areas in
implementing the amendments to WIA. The General Accounting
Office (GAO) has issued a series of reports recognizing the
critical need for adequate levels of technical assistance.
The committee recognizes that a number of States and
localities have been able to effectively implement that Act
because of strong leadership exhibited by elected officials,
the private sector, labor and other workforce stakeholders at
the State and local levels.
The committee believes the best practices established by
various State and local workforce boards can provide invaluable
help to those areas still struggling to effectively fully
implement the Act. The committee bill directs the Secretary of
Labor to develop a system to help States and localities share
information regarding their best practices with their
counterparts from other States, regions and localities around
the country.
Due to the additional complications of implementing the
amendments to WIA, the committee strongly urges the Department
of Labor to carefully consider the implications of reducing
regional Employment and Training Administration (ETA) offices.
Demonstrations, Pilot, Multiservice, Research, and Multistate Projects
S. 1627 amends the provisions of section 171 of WIA
relating to pilot, multiservice, research, and multistate
projects to better reflect the revised purposes of the
legislation. Projects that assist national employers in
connecting with the workforce investment system are among the
new list of projects authorized. The committee encourages the
Secretary to enter into national partnerships that lead to the
jobs providing self-sufficiency. Authorized projects also
include: systems development to improve the maximum
effectiveness of WIA programs, projects focused on high-growth
industries and sectors and jobs with wages leading to self-
sufficiency, integrated systems technology projects, projects
that provide retention grants to certain qualified job training
programs, innovative projects that improve access to and
delivery of workforce services, projects that promote the use
of distance learning, and projects that provide comprehensive
education, training and support services in coordination with
local boards for populations in targeted high poverty areas.
S. 1627 requires the Secretary to conduct a study
concerning the role and benefits of industry-based
certification and credentials to businesses and workers and the
implications of certification to services provided through the
system. The committee encourages, where practicable, industry-
based certification to be used with respect to the criteria for
selecting eligible training providers. However, the committee
does not believe that such certification should be required.
The effectiveness of the workforce investment system is
dependent upon the system's ability to meet business needs,
including small businesses. Therefore, S. 1627 authorizes the
Secretary, in coordination with the Secretary of Commerce and
Small Business Administration, to conduct a study on the
effectiveness of the workforce investment system in meeting
business needs.
The committee recognizes that science and technology-based
industries have been and will continue to be critical to the
economic and national security of the United States, and that
the workforce investment system should play an essential role
in training individuals for these industries. The committee
recognizes that the National Science Foundation's Advanced
Technological Education Program has established a successful
model that can be used by the Department of Labor for a science
and technology and homeland security national skills
certification program. In particular, this program has
suggested that: (1) Effective skill certification curricula can
be developed leading to employment in high-technology
industries; (2) strong cooperative links can be created between
the various stakeholders in the workforce area; and (3)
innovative care pathways can be established for individuals
that previously lacked economic opportunity. The committee
encourages the Secretary of Labor to fund the national skills
certification demonstration project established under this
section so the purposes of the project can be effectively
attained.
The committee recognizes that individuals of limited
English proficiency (LEP) now form a substantial portion of the
civilian workforce and are employed in a range of industries
essential to the economic and national security of the United
States. The committee recognizes that in order to serve the
needs of these individuals and to maintain the competitive
advantage of the United States, new approaches to workforce
training must be identified and pursued. In particular, efforts
must be made to develop innovative, flexible programs that: (1)
Integrate occupational skills training with English language
acquisition; (2) encourage cooperation between stakeholders in
the workforce area; and (3) increase the career-ladder economic
opportunities of workers. The committee encourages the
Secretary of Labor to fund the integrated workforce training
demonstration project established under this section so the
purposes of the project can be effectively attained.
National Dislocated Worker Grants
The National Emergency Grants will now be known as National
Dislocated Worker Grants. These grants will continue to assist
State and local areas respond with job training and assistance
when to significant numbers of workers suffer from dislocation
due to mass layoffs or plant closings. This bill adds the
ability of the secretary to respond in partnership with the
Department of Defense Veterans' Affairs transition assistance
programs. When an area faces a higher than average demand for
employment and training for dislocated members of the Armed
Forces and their spouses it is the opinion of this committee
that the area can apply for a National Dislocated Worker Grant.
The committee recognizes that States may experience
dislocations across multiple sectors or across multiple local
workforce areas, in a manner that leads to significant overall
reduction in employment opportunities and economic growth,
especially in rural areas. The committee authorizes the
Secretary to provide assistance to a State for statewide or
local use in order to address such dislocations.
Not more than $20 million will be used to lessen the burden
of formulas shifts in the Disadvantaged adult formula.
Administration
The 1998 law prohibits WIA funds from being used for
economic development activities. The committee has removed this
prohibition in S. 1627, as it believes it to be advantageous to
encourage closer links between the job training system and
economic development systems to prepare the 21st century
workforce for career opportunities and skills in high-growth
sectors.
In keeping with the committee's emphasis on tracking
performance, S. 1627 includes a new provision requiring the
Secretary of Labor's annual report to Congress to include the
negotiated levels of performance of the States, the requests
for adjustments of such levels from the States, and any
adjustments of such levels that are made.
The bill makes clear that the Secretary cannot waive
statutory or regulatory requirements relating to the funding of
infrastructure costs for one-stop centers. Further, S. 1627
instructs the Secretary to expedite waiver requests that have
been approved for a State.
Finally, the bill amends current law to provide that
property purchased with Federal equity can be sold and the
proceeds used for UI or Wagner-Peyser.
Incentive Grants to States
It is the committee's intent to provide additional funds to
those States exceeding their performance measures for WIA,
Adult Education, and vocational education. Beginning on July 1,
2005, it is also the committee's intent to provide additional
funds to those States doing an exemplary job of serving hard-
to-serve populations and those that are effectively
coordinating employment services under the Wagner-Peyser Act
and WIA core services, expanding access to training, or
implementing innovative business and economic development
strategies. Incentive grants awarded to States are to be used
to carry out activities authorized under chapter 4 and 5 of
WIA, Adult Education, and Carl D. Perkins Vocational and
Technical Education Act, including demonstration projects and
innovative programs for serving hard-to-serve populations.
TITLE II--AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT
Purpose
The committee believes that attention to the nation's
growing immigrant population is appropriately included in the
purposes of this Act. The Amendments to the Adult and Family
Literacy Act include a new paragraph specifying the need for
adult education and literacy programs to give attention to
immigrant and limited English proficiency populations,
including a focus on American civics and history, in addition
to reading, writing, speaking, and mathematics skills.
Additionally, the committee has added assisting adults in
the transition to postsecondary education to the Act's stated
purposes. In a 2001 survey by the GED Testing Service, over 65%
of the GED examinees indicated that they were obtaining the
credential in order to pursue further education, and yet
research shows that only about one-third of GED holders obtain
any postsecondary education. The committee recognizes that
adult education and literacy programs are poised to provide the
support, tools, and motivation to help pave the way for adults
to complete a secondary school education and continue on to
postsecondary education.
Performance Accountability System
The committee believes that eligible agencies should take
appropriate steps to measure the impact of their services in
adult education and literacy. In order to reach this objective,
it is important to strengthen the current accountability
provisions. Thus, new employment performance indicators are
established for States, including entry into employment,
retention in unsubsidized employment, and career advancement.
Eligible agencies are also required to include in their State
plans a description of how they will annually evaluate and
measure their effectiveness on a grant-by-grant basis, and how
they will hold eligible providers accountable regarding their
progress in improving academic achievement and the core
indicators of performance. Eligible agencies are authorized to
use technical assistance, allocate grant funds based on
performance, and terminate grant funds based on performance, in
order to hold adult education providers accountable. The
committee also believes it is important for programs that are
not meeting performance indicators to work with the Secretary
to develop and implement plans for improving outcomes. Further
revisions of a State plan may be required as an eligible agency
develops a plan to improve outcomes.
The committee also believes it is important to treat
workplace literacy programs in a way that is consistent with
their unique design. Workplace literacy programs address
specific reading, writing and math skills in the context of
work and are likely to be of shorter duration and have more
specific, customized goals than other types of adult education
programs. Adult educators work with employers to develop a
curriculum that integrates basic skills instruction based on
job-specific needs. Math instruction for manufacturing
employees, for example, may include lessons in reading and
interpreting statistical processing control charts, while
reading and writing instruction may incorporate technical
manuals and reporting forms that are used on the job. Student
assessments must often be customized as well because learning
gains made in using job-related materials may be only partially
reflected in a standardized test that evaluates general
literacy skills. Employers may also wish to use indicators of
workplace productivity, such as error or accident rates, to
evaluate the effectiveness of instruction in improving the
performance of their employees. For these reasons, S. 1627
gives the Secretary the authority to work with individual
States, on a voluntary basis, to agree upon alternative
approaches to measuring the learning gains of adults who
participate in workplace literacy programs.
The committee recognizes that not all States have access to
unemployment insurance wage data, and that those States with
such access are better equipped to accurately comply with the
Act's requirements regarding certain employment performance
indicators. For that reason, the report made available to the
Secretary by each State's eligible agency should reflect the
State's status with respect to that issue.
Workplace Literacy Performance Measures
Workplace literacy programs address specific reading,
writing and math skills in the context of work and are likely
to be of shorter duration and have more specific, customized
goals than other types of adult education programs. Adult
educators work with employers to develop a curriculum that
integrates basic skills instruction based on job-specific
needs. Math instruction for manufacturing employees, for
example, may include lessions in reading and interpreting
statistical processing control charts, while reading and
writing instruction may incorporate technical manuals and
reporting forms that are used on the job. Student assessments
must often be customized as well because learning gains made in
using job-related materials may be only partially reflected in
a standardized test that evaluates general literacy skills.
Employers may also wish to use indicators of workplace
productivity to evaluate the effectiveness of instruction in
improving the performance of their employees. For these
reasons, S. 1627 gives the Secretary the authority to work with
individual States, on a voluntary basis, to agree upon
alternative approaches to measuring the learning gains of
adults who participate in workplace literacy programs.
Facilitating training sessions in a simulated work
environment is an innovative and very effective way to bring
about the best possible outcomes in a short period of time. The
opportunity for students to perform specific writing tasks,
tracking & logging different types of data, and various other
simulated work activities in an environment that looks, feels,
and functions like the real thing is invaluable. When actual
workplace forms, documentation, and materials are used and
standard workplace procedures followed, the experience for
students is extremely relevant and completely authentic.
State Plan
The committee believes it is important to align the
Workforce Investment programs with the Adult Education and
Family Literacy programs. S. 1627 would replace the current
five year State plan with four year plans in both the workforce
and adult education portions of the bill.
Recognizing that collaboration between services is
essential, S. 1627 revises the requirements of the State plans
to emphasize greater collaboration between adult education
programs and other federal, State or local efforts, including
those authorized under Title I, to reach the same eligible
population. The State must also demonstrate in its State plan
how it will hold eligible providers accountable for improving
the academic achievement of eligible participants in adult
education programs according to the core indicators of
performance and the requirements of the performance
accountability system section. Underscoring the need to provide
services to an ever-growing adult population, the State must
also focus on building the capacity of organizations that
provide adult education and literacy activities.
The committee is interested in ensuring that States make
the necessary effort to include professional development in
their plans in order to improve teacher quality, as well as
coordinate with the appropriate federal, State and local
support services to permit the greatest number of eligible
participants to receive adult education and literacy training.
Support services, such as child care, transportation, mental
health services, and case management, help adult learners get
the assistance they need so they can focus on, and successfully
complete, their studies. These coordination efforts should take
into account the needs of individuals with disabilities,
limited English proficiency or other special needs.
Programs for Corrections Education
The committee continues to support the provision of adult
literacy activities in correctional institutions and for other
institutionalized individuals. The provision of literacy skills
instruction, instruction in the English language, special
education instruction and secondary school credit programs
assist offenders as they begin the difficult task of re-entry
after serving their time. The committee continues the priority
for those individuals who are within 5 years of completing
their sentences.
Maintenance of Effort
This section upholds the committee's strong belief that
adult literacy activities are a partnership between the State
and Federal Government to maintain funding to address the
growing needs of young and working adults in this country to
improve their literacy skills in order to support themselves
and their families.
Federal funding for adult education and family literacy
activities historically has been provided to establish Federal
and State partnershipsto provide adult education and literacy
services. It has been recognized that State and local
governments should and would contribute funding that responds
to their adult learning needs and supplements the base
operating funds provided by the Congress.
The Maintenance of Effort provisions in Section 251(b) hold
the States responsible for maintaining that commitment at not
less than a 90 percent rate and limit the erosion of State and
local funds that would cause instability in program services.
To that end, the technical language amendments to section
241 are not to be interpreted to mean that State maintenance of
effort requirements should be reduced in any way.
Integrated English Literacy and Civics Education
The committee recognizes the need for integrated English
literacy and civics education programs to help States and
communities provide limited English proficient adults with
expanded access to high quality English literacy programs
linked to civics education. In recent years, appropriations
legislation has mandated that a certain amount of the State
adult education grants under the Act be provided according to
the formula contained in section 218. The committee feels that
this is a worthwhile funding mechanism for serving a key
population of adults, and for that reason has included this
mechanism in S. 1627.
The committee notes that the formula is based on data that
had previously been maintained by the Immigration and
Naturalization Services (INS). The Homeland Security Act of
2002 (P.L. 107-296) consolidated the INS into the Department of
Homeland Security and redesignated the Immigration and
Naturalization Service as the United States Citizenship and
Immigration Services (USCIS). The committee expects that the
redesignation will not interrupt the availability of the
appropriate data.
Numeracy
The committee feels that mathematical skill, or
``numeracy,'' is a key element of adult basic skills. It is
vitally important that adults completing adult education
programs funded under this act be able to effectively manage
the mathematical demands of the workplace, the family and
society generally.
Adult Learners With Learning Disabilities
The committee, through provisions such as those in the
State Leadership Activities, State Plan, and Grants and
Contracts for Eligible Providers sections of the Act, has
placed an emphasis on serving adult education students with
learning disabilities. Individuals with learning disabilities
make up a large proportion of the population in need of adult
education and literacy programs, and yet their disability often
goes undiagnosed or there are no services available that are
tailored to their specific needs. As such, the committee adds
these provisions in order to ensure the evaluation of adult
students for learning disabilities and the development of
programs to meet the needs of such students.
TITLE IV--REHABILITATION ACT AMENDMENTS
Introduction
The major goals of the Rehabilitation Act Amendments of
2003 provisions are to: strengthen individual choice and
transition planning for individuals with disabilities; create a
stronger link between the Rehabilitation Act, the President's
New Freedom Initiative and the Olmstead Executive Order (13217:
Community-Based Alternatives for Individuals with
Disabilities); increase the opportunity to expand Vocational
Rehabilitation partnerships with business/employers; and
improve coordination with other employment programs such as the
Workforce Investment Act and the Ticket to Work Act.
The intent of the reauthorization is to create a seamless
Federal job training system. Title I of the Workforce
Investment Act (WIA) dramatically reforms the nation's job
training system in an attempt to better serve more people.
Although the Rehabilitation Act is a disability program, its
central function is to provide job training and employment
supports for persons with disabilities. To properly develop a
comprehensive national job training system, this program must
be synchronized with the amended programs under WIA. Therefore,
the committee desires to facilitate that goal by aligning the
two systems. The Rehabilitation Act includes extensive links
between State vocational rehabilitation agencies and State
workforce systems. Amendments fostering alignment are found
throughout the bill in sections pertaining to the findings and
purposes of the legislation, definitions, program
administration, reports, information dissemination, and State
plan requirements, including data reporting. WIA also includes
complementary and parallel provisions to promote a link between
vocational rehabilitation agencies and State workforce systems.
The committee strongly intends that this partnership not
violate the integrity of the vocational rehabilitation system.
The committee desires to build a stronger connection
between the Rehabilitation Act, the President's New Freedom
Initiative and the Olmstead Executive Order (13217: Community-
Based Alternatives for Individuals with Disabilities). A major
objective of both the New Freedom Initiative and the Olmstead
Executive Order is to ensure that all Americans have the
opportunity to engage in productive employment, to live close
to their families and friends, to live more independently, and
to participate in community life. The Rehabilitation Act
supports this laudable objective and promotes the full
participation of people with disabilities in all areas of
society by increasing access to assistive technologies,
expanding employment services and opportunities, and promoting
increased access into daily community life.
The committee also believes that it is critical to
coordinate the activities and objectives of the Rehabilitation
Act with the Ticket to Work Act and the Individuals with
Disabilities Education Act. State vocational rehabilitation
agencies should proactively provide information to Social
Security Title II and Title XVI disability beneficiaries who
may or may not be eligible for the Ticket to Work program. This
should include information on the availability of other
federally funded employment and health services and information
and referral services for individuals that are not eligible for
vocational rehabilitation services due to an order of
selection. The committee also intends to increase exposure to
career options and vocational exploration for students with
disabilities in high school in order to facilitate the
student's transition to the vocational rehabilitation program.
Additionally, S. 1627 requires transition planning for each
student in order to link the individualized education plan
(IEP) with the individualized plan for employment (IPE) to
ensure that the IPE integrates planning, information, and
assessments from the IEP for students age 14 or younger.
During the reauthorization process, the committee conducted
panel discussions on the reauthorization with stakeholders and
engaged in an open and lengthy negotiation process that
included vocational rehabilitation consumers, consumer
advocates, the U.S. Department of Education, and State
vocational rehabilitation agencies representatives.
Through those processes, the committee learned that it
needs to simplify the delivery of vocational rehabilitation
services and increase the ability of State vocational
rehabilitation agencies and job training agencies to work
together to reach and assist individuals with disabilities. In
this reauthorization, the committee creates new opportunities
and expands existing ones to improve employment options for
individuals with disabilities. S. 1627 includes a requirement
that vocational rehabilitation agencies provide a list of
community resources for vocational rehabilitation consumers,
including community organizations or individuals with
disabilities that may be able to assist the individual in
creating an individualized plan for employment (IPE). The
committee strongly encourages agencies to allow individuals to
develop their own IPEs and have the opportunity to work with an
individual of their choice who has experience in developing
such a plan. This enhances the consumers' ability to make
informed, independent, and effective choices.
The committee permanently authorizes the Administration's
Vocational Rehabilitation Incentive Grants, encouraging
vocational rehabilitation agencies to adopt effective
strategies to improve employment outcomes for individuals with
disabilities under the vocational rehabilitation program.
Finally, S. 1627 strengthens the Commissioner's authority to
direct States to make revisions to their State plan to improve
performance, which may include allocating a higher proportion
of resources to services to individuals with disabilities.
Provisions Preceding Title I
Purposes and Definitions
The bill adds an additional purpose of the Rehabilitation
Act: to give employers and rehabilitation service providers the
opportunity to provide meaningful input at all levels of
government to ensure successful employment of individuals with
disabilities. The committee wants to ensure that business and
employment providers play a critical role in helping
individuals with disabilities obtain successful employment
outcomes.
The committee added and revised a number of definitions in
the Rehabilitation Act. S. 1627 adds the term ``literary
services'' to the list of specifically authorized vocational
rehabilitation services for individuals to ensure that
individuals with significant disabilities have the necessary
literacy skills to achieve high-quality, competitive employment
outcomes. The committee used the same definition of
``literacy'' as used in the Adult Education and Family Literacy
Act for the sake of consistency across Federal programs. The
bill also adds a definition of ``consumer organization'' to
help facilitate access to individuals and organizations that
can assist consumers in making fully informed and effective
choices in developing their individual plan for employment. The
committee has also expanded the definition of ``independent
living core services'' to include maintaining individuals with
significant disabilities or transitioning individuals with
significant disabilities to community-based living. This change
is intended to help carry-out the goals and objectives of the
President's New Freedom Initiative and the Olmstead Executive
Order.
The committee has included the term ``post-employment
services,'' intending to make vocational rehabilitation
services readily available to consumers who have already
achieved an employment outcome. This provision authorizes
programs and additional services necessary for an individual to
retain his or her job or advance in his or her career.
Finally, the term ``student with a disability'' means an
individual with a disability who attends elementary or
secondary school and who: (1) Is between the ages of 14 and 21;
(2) is eligible for VR services; and (3) receives special
education under IDEA or is considered an individual with a
disability under section 504. The definition is consistent with
the definition in Title II of S. 1248 ``Individuals With
Disabilities Education Improvement Act of 2003.''
The committee notes that the Commissioner of the
Rehabilitation Services Administration has been appointed by
the President to administer programs under the Rehabilitation
Act and concurrently has been appointed to represent the
Department of Education on the Committee for Purchase From
People Who Are Blind or Severely Disabled, which administers
the Javits-Wagner-O'Day (JWOD) Program. The committee
recognizes confusion among designated State units under Title I
of the Rehabilitation Act in implementing a regulation issued
in 2001 which narrowed the definition of ``employment outcome''
to exclude placements in what RSA defined as ``non-integrated
settings.'' The committee recommends that the RSA Commissioner
review and clarify policies to include consideration of wages
(when above minimum-wage), benefits and opportunities for
upward mobility as well as the number of other individuals with
disabilities in a workplace when approving a client's choice of
employment outcome goal under a proposed Individual Plan for
Employment.
Administration
As stated earlier, the committee recognizes the importance
of including local businesses as key players in the vocational
rehabilitation system. In order to create additional employment
opportunities for consumers of vocational rehabilitation
services it is imperative that the business community be viewed
as partners in the system. It is the business community that
can bring success to the VR program by hiring individuals with
disabilities as employees. To help accomplish this, section 405
of the bill authorizes the RSA to provide technical assistance
to vocational rehabilitation agencies on developing successful
partnerships with local employers, with the intent of enhancing
choice and employment opportunities for people with
disabilities. The committee notes one example of a successful
partnership developed under the Projects with Industry program
of the Rehabilitation Act. Over 2,500 businesses are
represented on Business Advisory Councils that assist in
developing and directing placement programs across the country.
The committee encourages the RSA to continue to be innovative
in building partnerships with business and to use readily
available resources, such as the Business Advisory Councils,
for support and guidance while developing technical assistance
to vocational rehabilitation agencies.
Carry Over
Section 406 eliminates the carry over funds provision for
centers for independent living and for independent living
services for the older blind. The bill also adds a new separate
provision relating to unobligated and expended funds for the
Protection and Advocacy for Individual Rights (PAIR) program
similar to use of unobligated and unexpended funds for other
programs. Finally, section 406 authorizes the PAIR program to
carry over appropriated funds for 1 year and program income
until expended. The committee intends to give PAIR programs the
ability to plan activities and have greater flexibility when
using dollars paid to a PAIR program for a fiscal year that
remain unobligated at the end of such year.
TITLE I--VOCATIONAL REHABILITATION SERVICES
Subtitle A--Vocational Rehabilitation Services
AMENDMENTS TO PART A--GENERAL PROVISIONS
Declaration of Policy; Authorization of Appropriations
Section 1627 authorizes appropriations for the
Rehabilitation Act Amendments of 2003 for six years, from
fiscal years 2004 through 2009.
State Plans
Section 412 of S. 1627 amends the State plan requirements
to encourage the recruitment of qualified people with
disabilities as VR counselors and other VR personnel. The
committee believes that people with disabilities are uniquely
qualified to provide assistance and guidance to consumers of
vocational rehabilitation services. The bill also requires that
continuing education for rehabilitation personnel coordinate
with State programs carried out under the Assistive Technology
Act.
Additionally, State plan requirements are changed by
including training implemented in coordination with State
programs carried out under section 101 of the Assistive
Technology Act of 1998.
The committee recognizes that a number of policy issues
arise as State vocational rehabilitation agencies implement the
Ticket to Work and Self-Sufficiency Program, authorized under
title I of the Ticket to Work and Work Incentives Improvement
Act of 1999. Of particular concern is the impact of the Ticket
to Work program on the requirement that vocational
rehabilitation agencies determine whether comparable services
and benefits exist under any other programs, and whether those
services and benefits are available to the individuals seeking
services from the vocational rehabilitation agency. This is
currently required prior to the agency's agreeing to vocational
rehabilitation services to the eligible individual. Under the
Ticket to Work program, a private provider may be approved by
the Social Security Administration (SSA) to function as an
Employment Network (EN). The EN receives payments from SSA when
the services provided to a beneficiary, whose ticket is
assigned to that EN, goes to work and meets the requirements
for milestone and outcome payments. In Section 412, the
committee intends to clarify that a State vocational
rehabilitation agency is expected to consider, as a comparable
service or benefit, those services actually provided to a
beneficiary under the individualized work plan (IWP) developed
by the beneficiary and the EN to which the beneficiary's ticket
is assigned. The committee also intends to clarify any
misconception that all services and benefits listed on an EN's
application to SSA may be considered as comparable services and
benefits. The committee recognizes that State vocational
rehabilitation agencies may experience difficulty in
identifying the services and benefits that a particular
beneficiary is receiving from an EN because of privacy rules.
Notwithstanding these confidentiality concerns, the committee
intends that, when a beneficiary is seeking assistance from
both an EN and a vocational rehabilitation agency, the
information on the EN, the services, and benefits being
provided under the beneficiary's IWP, be made available to the
vocational rehabilitation agency for the purposes of
identifying comparable services and benefits.
In section 412, the committee has streamlined the
administration of the State vocational rehabilitation program
by conforming the data reporting requirements of the
Rehabilitation Act with the federal job training system in
Title I of S. 1627. The specific data reporting requirements
include: the cord indicators of performance; the number of
individuals with significant disabilities who exited the
program carried out under this title, including the number of
such individuals who achieved employment outcomes after
receiving vocational rehabilitation services; and the number of
individuals who received vocational rehabilitation services who
entered and retained employment and the increases in earnings
of such individuals.
The committee expects State vocational rehabilitation
programs to also include descriptions of interagency
cooperation as a requirement in their State plan with State
programs carried out under section 101 of the Assistive
Technology Act of 1998.
The committee intends to coordinate the activities and
objectives of the Rehabilitation Act with the Individuals with
Disabilities Education Act. To this end, Section 412 requires
transition planning for each student in order to align the
individualized plan for employment (IPE) with the
individualized education plan (IEP) to ensure that the IPE
integrates planning, information and assessments from the IEP
process for students age 14 or older.
The committee desires to increase coordination between the
various employment training programs for people with
disabilities, and sees the need for a stronger relationship
between the vocational rehabilitation system and the Ticket to
Work Act. Therefore, section 412 requires the State vocational
rehabilitation agency to coordinate its activities with the
State agency that administers the Ticket to Work and Self-
Sufficiency Program. The State plan must also include
descriptions of interagency cooperation with other agencies
that carry out other programs, such as the Assistive Technology
Act.
Section 412 of the bill also authorizes State vocational
rehabilitation agencies to establish an expanded program of
information and referral services for States with restrictive
orders of selection. In addition, the bill authorizes a program
of information and referral for Social Security disability
beneficiaries eligible for the ticket to work program but who
may not meet the eligibility criteria of the State vocational
rehabilitation agency. This program will provide important
information on the Benefits Planning, Assistance, and Outreach
Program authorized under Section 1149(d) of the Social Security
Act, the Protection and Advocacy for Beneficiaries of Social
Security program authorized under Section 1150 of the Social
Security Act, Medicaid, Medicare, and other federally-funded
medical assistance programs. The committee encourages a
reciprocal exchange of information by Employment Networks,
Medicaid and Medicare agencies, as well as Social Security
District Offices, to inform consumers about the vocational
rehabilitation system if such services would benefit that
person.
The committee also encourages State agencies to keep in
mind the new definition of ``post-employment services'' as they
conduct information and referral services, so that consumers
may receive these services as they advance in employment.
The committee recognizes the administrative burden and cost
to State vocational rehabilitation agencies to maintain a
specific point of contact for referrals made. Of critical
importance to the consumer, however, is access to up-to-date
and accurate information as they attempt to navigate the often
unfamiliar employment training process offered by recommended
agency or organization. Therefore, section 412 revises the
point of contact requirement so that the vocational
rehabilitation agency will provide point of contact information
to the maximum extent possible. It is not the intent of the
committee, however, for vocational rehabilitation agencies to
stop collecting and providing this information.
Eligibility and Individualized Plan for Employment
The committee believes that it is the responsibility of the
vocational rehabilitation counselor to inform an eligible
individual about available options, including consumer
organizations, to assist in developing the individualized plan
for employment (IPE) and for exercising informed choice, as
well as making sure the individual understands these options.
Based on the needs or expressed interests of the individual,
the committee authorizes the State vocational rehabilitation
agency to make available any information it routinely collects,
requests, or receives from consumer organizations on the
availability of such resources to assist the individual in
developing the IPE. The committee realizes that it would take
considerable time and resources for a State vocational
rehabilitation agency to develop and maintain a list of such
resources and organizations. Therefore, the committee is only
requiring the State vocational rehabilitation agency provide
such information to individuals that it serves to the extent
that such information has been made available to the State
vocational rehabilitation agency and is requested by the
consumer. Additionally, the committee expects consumer
organizations such as the State Independent Living Councils,
Independent Living Centers, University Centers for Excellence
in Developmental Disabilities, and grantees under subtitle C of
this act, and other local disability related organizations, to
submit information on such resources and organizations to the
State vocational rehabilitation agency for dissemination to
individuals interested in exercising the option of seeking
outside assistance in developing their IPE.
As previously mentioned, there are several employment
training programs for people with disabilities, and it is the
intent of the committee to coordinate these programs.
Therefore, the committee includes the benefits offered through
the Ticket to Work Act as options for individuals developing
the individualized plan for employment.
Section 413 also adds a new provision specifying that the
IPE of an individual be amended, as necessary, to include post-
employment services and service providers necessary for the
individual to maintain or regain employment, consistent with
their strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice.
In addition, section 413 requires that mentoring services
be a mandatory component of an IPE if they are necessary to
achieve an employment outcome.
The committee believes that it is both necessary and
desirable to coordinate the activities of the Individuals with
Disabilities Education Act with the new post-employment goal
provision of the Rehabilitation Act. Therefore, section 413 of
the bill clarifies that for a student with a disability, the
description of the specific employment outcome in the student's
IPE may also be a description of the student's post-school
goals and projected/anticipated employment outcome.
Additionally, the committee clarifies that the IPE must
describe the specific transition services that the student
needs to achieve the employment outcome, including work
experience and mentoring activities as appropriate.
It is important to coordinate the various federal
employment training programs for people with disabilities.
Therefore, section 413 requires that the IPE of an individual
who is receiving assistance under the Ticket to Work program
must include a list of services that individual is receiving
from an Employment Network other than the designated State
unit.
The committee supports informed choice for consumers of
vocational rehabilitation services. To further this goal,
section 413 amends the due process requirements of the law to
acknowledge the importance of a consumer's right of informed
choice when engaged in due process with the State vocational
rehabilitation agency.
Vocational Rehabilitation Services
Section 414 of the bill amends Section 103 of the
Rehabilitation Act to add literacy services and mentoring
services to the list of vocational rehabilitation services
provided under the act.
State Rehabilitation Council
The committee recognizes that several States do not have an
American Indian Vocational Rehabilitation Services (AIVRS)
representative on the State rehabilitation council because the
projects serving American Indians in those States are not
physically located in that particular State. AIVRS projects are
currently authorized to serve Native American/American Indian
consumers that reside in other States. The committee addresses
this issue in Section 415 of the bill by modifying language in
Section 121 of the Rehabilitation Act. Under this new
provision, in a State in which one or more AIVRS projects
provide services under section 121, and the project does not
physically reside in the State where it provides the services,
at least one representative of the directors of the projects
must serve on the State rehabilitation council.
Section 415 also gives the Council the authority to select
a chairperson from among the voting membership of the Council.
Evaluation Standards and Performance Indicators
Current statutory authority to address poor performance as
measured by the vocational rehabilitation program's standards
and indicators is extremely limited. The committee believes
that additional authority is needed to ensure that poor
performing States reach acceptable levels of performance.
Therefore, section 416 authorizes the Commissioner to review
the program improvement efforts of the State on a biannual
basis and, if performance has not improved to acceptable
levels, direct the State as necessary to make further revisions
to the plan to improve performance, including allocating
additional resources to services for individuals with
disabilities.
AMENDMENTS TO PART B--BASIC VOCATIONAL REHABILITATION SERVICES
State Allotments
Each year, under current law, the appropriation for the
vocational rehabilitation services program under Subtitle A of
the Rehabilitation Act is automatically increased by a cost of
living adjustment (COLA) based on the Consumer Price Index
(CPI). While the entire appropriation for vocational
rehabilitation programs receives an overall funding increase
that, at a minimum, keeps pace with increases in the CPI, each
State agency does not necessarily receive an increase that
keeps pace with the CPI. The allocation that each vocational
rehabilitation program receives is based on a funding formula,
in which the State's overall population and per capita income
determine the allocation that a State vocational rehabilitation
program receives. The committee recognizes that in States where
caseloads are constant or increasing, but the State is losing
general population, the State typically does not receive a
percentage increase in funding that equals the percentage
increase for the amount appropriated for the entire vocational
rehabilitation system. Additionally, the committee recognizes
that the per capita income factors authorize significantly more
funds, on a per capita basis, to States with lower per capita
incomes. Yearly, States return millions of federally
appropriated dollars to carry out vocational rehabilitation
services program under Subtitle A to the Department of
Education to redistribute, as they were unable to match the
allotted funds with State dollars. The committee has addressed
this issue in section 417 by giving States that did not receive
a cost of living increase priority in applying for these
returned appropriated dollars. However, committee intends that
these States be eligible only for an amount that will give them
an increase that equals the COLA for that particular fiscal
year, taking into account the amount the State's initial
allotment increase for that fiscal year. The committee does not
intend that the reallotted funds be unavailable to States that
did receive a COLA through the initial allotment. Rather, the
committee intends to give the States that did not receive a
full COLA increase a priority for applying for reallotment
funds, and then open up the reallotment funding to all State
vocational rehabilitation programs that can meet the necessary
State match requirements.
The committee understands the need to strengthen the
American Indian Vocational Rehabilitation Services (AIVRS)
program by improving program stability. Therefore, section 417
authorizes a steady expansion of the AIVRS program by
increasing the allotted amount for the programs 0.075 percent
each year until it reaches the current maximum of 1.5 percent.
The committee intends that RSA will not create/award new AIVRS
programs until all existing AIVRS programs are funded at their
required level.
Client Assistance Program
Section 418 amends the Client Assistance Program (CAP) to
allow the public or private agency designated by the Governor
to operate the program to apply for CAP funding. Under current
law, the agency that has been designated by the Governor to
operate the CAP does not submit the application for funding.
Additionally, under current law, the State is required to
submit the application and is accountable to the Department of
Education for the performance of the CAP. The committee
believes that authorizing the designated agency to apply
directly for CAP funding will improve and streamline the
application process by having the entity responsible for the
day-to-day operation of the CAP submit the application,
including the necessary assurances, rather than the Governor,
who is removed from the day-to-day operation of the CAP. The
committee does not believe this change will affect the
Department's ability to ensure program accountability.
The committee recognizes that the American Indian
Consortium is a protection and advocacy system as defined in
the Development Disabilities Assistance and Bill of Rights Act
and was established and designated by the region's tribal
council. The American Indian Consortium currently administers
seven protection and advocacy programs; however Native
Americans with disabilities that reside within the Consortium
do not have access to the services of the Client Assistance
Program. Therefore, section 418 authorizes funding for the
Client Assistance Program to serve this group of Native
Americans as soon as the annual appropriation for the CAPs
reach $13 million.
The committee understands the importance of training and
technical assistance and how it would benefit the Client
Assistance Program. To this end, section 418 authorizes
training and technical assistance for the Client Assistance
Programs as soon as the annual appropriation for the CAP
program reaches $14 million. The committee intends that these
funds be coordinated with, but distinct from, the existing
interagency contract providing training and technical
assistance to the other protection and advocacy programs.
Incentive Grants
Based on program data and other sources of information, it
is apparent that there is wide variation in the performance of
individual State vocational rehabilitation agencies. In section
419 of S. 1627, the committee permanently authorizes the
Administration's Vocational Rehabilitation Incentive Grants
Program as a method to encourage State vocational
rehabilitation agencies to improve their performance. The
committee intends that grant funds be used primarily to
encourage State VR agencies to adopt effective strategies to
improve employment outcomes for individuals with disabilities
receiving assistance under the VR program. Grants are awarded
to State VR agencies based on their performance on the
vocational rehabilitation performance indicators established
under the Rehabilitation Act and other appropriate performance
indicators as determined by the Commissioner of RSA. The
committee also intends that the criteria for applying for funds
be developed in collaboration with State VR agencies and other
vocational rehabilitation stakeholders, including vocational
rehabilitation consumers and consumer organizations.
Additionally, the committee believes that an appropriate use of
Incentive Grant funds includes supplementing the federal
allotment for vocational rehabilitation services for those
States that did not receive a full cost of living increase if
the funds returned for reallotment are not sufficient to
support such increases per the new reallotment priority
established in section 417 of the bill.
AMENDMENTS TO PART C--AMERICAN INDIAN VOCATIONAL HABILITATION SERVICES
Vocational Rehabilitation Services Grants
In Section 420 of the bill, the committee better
coordinates the American Indian Vocational Rehabilitation
Services (AIVRS) program with the Vocational Rehabilitation
State grants program by referencing vocational rehabilitation
services that are consistent with an individual's strengths,
resources, priorities, concerns, abilities, capabilities,
interests, and informed choice.
The committee is concerned with reports from the American
Indian Vocational Rehabilitation Services (AIVRS) and the
Consortia of Administrators for Native American Rehabilitation
(CANAR) that tribal councils for other administering programs
often try to utilize inappropriately vocational rehabilitation
funding or make programmatic decisions. In response to this
concern, section 420 protects AIVRS programs from having other
entities make decisions concerning consumers so that all
decisions affecting eligibility for vocational rehabilitation
services, the nature and scope of available services, and the
provision of these services will be made by a representative of
the AIVRS program.
The committee also intends to strengthen the AIVRS program
by improving program stability. A recent evaluation of the
AIVRS program found that program stability continues to be a
major concern of American Indian tribes operating these
projects. The study also noted that better outcomes and greater
cost-effectiveness were positively related to project staff
with more vocational rehabilitation experience and projects
with more years of federal funding. Under current law, AIVRS
projects must re-compete for funding every 5 years. Therefore
Section 420 provides that AIVRS programs must be renewed for
additional 5-year periods if the Commissioner of RSA determines
that the grantee has demonstrated acceptable past performance,
and submits a plan to be approved by the Commissioner that
identifies future performance criteria, goals, and objectives.
Finally, section 420 adds a new provision requiring the
Secretary to give priority to paying the continuation costs of
existing projects and authorizing the Secretary to provide for
increases in funding for such projects as necessary.
GAO Studies
As discussed earlier, the goal of this reauthorization is
to coordinate all employment-training programs available for
individuals with disabilities. The committee wishes to track
the interplay between the Ticket to Work and Work Incentives
Improvement Act, the Ticket to Work program and the VR program
in Subtitle A of the WIA. To that end, section 421 provides for
an independent review of the interaction between the Title I
Vocational Rehabilitation Program and the Ticket to Work and
Self Sufficiency Program, and the impact of this relationship
on beneficiaries, community rehabilitation programs and State
VR agencies. The bill requires the Comptroller General to issue
a comprehensive report on these issues to enable Congress to
determine what appropriate steps can be made to help resolve
challenges that the two programs face as they attempt to serve
a similar population of individuals.
Additionally, the committee calls for a study of the
relationship between the Title I State allotment formula and
the ability of States to provide vocational rehabilitation
services in accordance with State plan requirements. The bill
requires GAO to consult with the appropriate entities, and the
Comptroller General to issue a report on its study to enable
Congress to determine what appropriate steps can be made to
help resolve funding inequities between State vocational
rehabilitation agencies.
Subtitle B--Research and Training
AMENDMENTS TO TITLE II--RESEARCH AND TRAINING
National Institute on Disability and Rehabilitation Research
In section 432, the committee modified the requirements for
the peer grant reviewers under this subtitle so that non-
Department of Education staff are the reviewers. The committee
recognizes that many of the national experts in the
rehabilitation field are employed by the National Institutes of
Health and other Federal agencies, and desires to tap the
expertise of these individuals.
Research and Other Covered Activities
The committee understands the budgetary restrictions faced
by the Department of Education. Section 433 amends the law to
require that the Department must make a site visit to a
potential award grantee if that award is over $750,000. The
current law amount is $500,000.
Rehabilitation Research Advisory Council
To create additional employment options for people with
disabilities in the vocational rehabilitation system, the
business community must be a partner and supporter of that
system. One way to accomplish this is to give the business
community a role in developing research priorities. Therefore,
section 434 requires that the Rehabilitation Research Advisory
Council include a representative of the business community who
has experience with the vocational rehabilitation system and
hiring individuals with disabilities. The committee believes
this will help ensure that research, training, and
demonstration projects conducted under the Rehabilitation Act
are relevant to the business world.
Subtitle C--Professional Development and Special Projects and
Demonstrations
AMENDMENTS TO TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS
AND DEMONSTRATIONS
Training
Millions of Americans are affected by orthopedic
impairments or neurological conditions, which are treated
through the use of orthoses, or orthopedic braces, to
straighten arms, legs or spine and prostheses, or artificial
limbs. Without an increase in the number of orthotic and
prothestic students, by the year 2020, only 61 percent or less
of the population using orthoses will be served--a population
expected to increase by 31 percent by that year. The committee
is therefore concerned that over the last few years, RSA has
ceased to support orthotic and prosthetic training programs and
the committee strongly encourages the RSA to honor its
commitment to ensuring skilled personnel are available to serve
the rehabilitation needs of individuals living with limb loss,
paralysis and other conditions requiring the use of artificial
limbs or braces.
Additionally, the committee recognizes that degree granting
programs in rehabilitation training and mobility instruction is
a small, specialized area that faces challenges in attracting
potential students and attaining support from colleges and
universities. To help meet these challenges, in section 441 the
committee adds ``prosthetics and orthotics, rehabilitation for
the blind, or orientation and mobility instruction'' to the
types of academic training projects that may be supported in
order to meet the shortage of orientation and mobility
instructors.
Section 441 also authorizes such sums as necessary for the
title III of the Rehabilitation Act for fiscal years 2004
through 2009.
Demonstrations and Training Programs
The committee intends for this reauthorization to focus on
training for persons with disabilities who have been
underserved by traditional vocational rehabilitation programs.
To address these goals, in section 442, the committee expands
upon language in current law that authorizes model
demonstration projects. This expansion provides the framework
for two separate, but related, model demonstration projects.
Both projects are of critical importance to promoting
employment opportunities for people often excluded from current
federally funded employment training programs. The committee
wants to encourage the development of training programs that
will encourage permanent employment and increased self
sufficiency.
The first project is intended to provide seamless a
transition for students age 14 to 21 who have intellectual
disabilities or mental illness. These students presently
receive special education and related services under the
Individual with Disabilities Education Act. Many of these
students, however, require additional training to ensure
successful employment outcomes. This model demonstration
project will make available additional training, including
important on-site job training, designed to maximize employment
opportunities. It is the goal of this demonstration project to
provide training programs that will promote specialized job
skills along with the social skills necessary to effectively
transition from secondary education on the job market.
The second project targets development of training programs
for individuals who are deaf and low functioning. This project
expands upon the successful results of three small model
demonstration projects conducted during the early 1990s. This
population faces unique, and significant, challenges to
employment training. The combination of deafness and low
literacy requires the development of very specialized programs
of instruction. Few professionals have the expertise to train
individuals who are both deaf and low functioning or those who
are deaf and have secondary disabilities. The committee intends
to encourage the development of a national training program
that utilizes the expertise of these professionals, and
provides hands on experience and employment supports necessary
to ensure successful employment outcomes.
The committee authorizes $5 million for each of these
demonstration programs in fiscal year 2004, and such sums as
necessary in the next succeeding years.
The committee acknowledges that lack of affordable
assistive technology is a barrier to disabled individuals'
maintaining and advancing in employment. In section 442, the
committee permanently authorizes the Administration's Telework
program, introduced as part of the New Freedom Initiative. The
goal of this program is to increase access to assistive
technologies by expanding educational opportunities, increasing
the ability of individuals with disabilities to integrate into
the workforce, and promoting increased access into daily
community life. The committee intends that Telework program
grantees coordinate services with entities providing services
through the Assistive Technology Act of 1998.
Recreational Programs
Currently, Section 305 of the Rehabilitation Act allows the
construction of swimming pools as an authorized use of funds
under recreational programs. The committee finds that the
construction authorization is inconsistent with the 3-year
funding design. Therefore, Section 444 amends the law to
prohibit funding for construction of facilities for aquatic
rehabilitation therapy.
Subtitle E--Rights and Advocacy
AMENDMENTS TO TITLE V--RIGHTS AND ADVOCACY
Protection and Advocacy of Individual Rights
The committee understands that in order for the Protection
and Advocacy for Individual Rights (PAIR) program to plan for
the future, the program must be authorized to carry over
program income funds for five years. Therefore, section 462
allows the PAIR program to keep program income generated from
the grant for use until expended, making the fiscal
administration of the PAIR program consistent with other
protection and advocacy programs.
Subtitle G--Independent Living Services and Centers for Independent
Living
AMENDMENTS TO TITLE VII--INDEPENDENT LIVING SERVICES AND CENTER FOR
INDEPENDENT LIVING
State Plan
Section 481 amends the State plan requirements for
independent living services to require the State to conduct
activities centered on maintaining and/or transitioning
individuals with disabilities to community-based living. This
is consistent with and will assist in carrying out the goals
and objectives of the President's New Freedom Initiative and
the Olmstead Executive Order.
Statewide Independent Living Council
Section 482 of the bill clarifies that the Statewide
Independent Living Council (SILC) shall select a chairperson
from among the voting membership of the Council. In the
Rehabilitation Act Amendments of 1992, Congress recognized that
it was vital for people with disabilities to have a voice in
the services that they receive under the Act. The name of
``State Independent Living Advisory Councils'' was changed to
State Independent Living Councils, giving the Councils and
consumers more authority and responsibility. When Congress
created SILCs, it was clear that these organizations were not
to be a part of any State agency. Governors were given the
power to make the appointments to the SILC. Under current law,
a Governor's power over the SILC is confined to the appointment
process with one exception. Section 705(b)(5)(B) of the
Rehabilitation Act provides a protection for Governors that do
not have veto power over State legislation. Governors that do
not have veto power over legislation may elect the chairperson
of the SILC. The committee has heard concerns regarding the
interpretation of the term ``veto power over legislation.'' RSA
has interpreted this term to mean that the Governor must
specifically have veto power over the selection of the SILC's
chairperson, and that this authority must be identified in
State law in order for the SILC to be able to select its own
chairperson. The problem with this interpretation is that it
only allows the Council to elect its own chair when there is a
State law giving the governor ``veto power'' over the Council's
selection. Currently, no States have such a law. At the time
the exception was included, at least two Governors did not have
the ability to veto State legislation. Since 1992, however, all
Governors have gained veto power over legislation and this
protection is no longer needed. The committee intends to give
the SILC the authority to select a chairperson from its
membership. The committee does not intend to diminish a
Governor's authority. Governors still have the authority to
make appointments to the SILC and can remove a member,
including the chairperson, and appoint someone else.
The committee recognizes that several States do not have an
American Indian Vocational Rehabilitation Services (AIVRS)
representative on the State independent living council because
the projects serving American Indians in those States are not
physically located in that particular State. AIVRS projects are
currently authorized to serve Native American/American Indian
consumers that reside in other States. The committee addresses
this issue in Section 482 of the bill by modifying language in
Section 705 of the Rehabilitation Act. Under this new
provision, in a State in which one or more AIVRS projects
provide services under section 121, and the project does not
physically reside in the State where it provides the services,
at least one representative of the directors of the projects
must serve on the State rehabilitation council.
Program Authorization
Prior to this authorization, the State Independent Living
Councils unanimously agreed upon a proposal to change SILCs
allotments. The rationale for a formula change is to create a
more equitable distribution of funds for States with smaller
populations. The committee confirmed with several SILCs that
they agreed upon the formula change. The SILCs understand that
under this proposal some States will likely not receive as
large of an increase as under the formula in current law.
Therefore, the committee has obliged the request of the SILCs,
and in Section 484, modifies the formula and the way in which
allotments are disbursed to State and Territory Independent
Living Councils.
Section 484 also allows Centers for Independent Living to
carryover Title VII, Part C funding for two years following the
appropriation year. Centers for Independent Living are funded
late in the fiscal year, which prevents them from planning,
expending funds, and carrying over unexpended funds. The
committee intends for this new provision to allow Centers to
utilize their funding in a more efficient manner.
Grants to Centers for Independent Living in States in Which Federal
Funding Exceeds State Funding
Section 485 of the bill requires the Commissioner to award
grants to any eligible entity that has bean awarded a grant
during the preceding fiscal year. The committee intends for
this provision to provide continuity in independent living
services and enable grantees to focus on service provision,
instead of grant competitions, as long as the Center meets the
standards and assurances for program performance.
Grants to Centers for Independent Living in States in Which State
Funding Equals or Exceeds Federal Funding
Similar to section 485, section 486 requires the director
of a designated State unit to award grants to any eligible
entity that has been awarded a grant during the preceding
fiscal year.
Standards and Assurances for Centers for Independent Living
Section 487 adds to the standards and assurances for
Centers for Independent Living reporting requirements centered
on maintaining and/or transitioning individuals with
disabilities to community-based living. This is consistent with
and will assist in carrying out the goals and objectives of the
President's New Freedom Initiative and the Olmstead Executive
Order.
Independent Living Services for Older Individuals Who Are Blind
The committee acknowledges the need for training and
technical assistance for the staff of Independent Living
Services for Older Individuals who are Blind programs.
Therefore, section 489 adds a new provision requiring training
and technical assistance to be authorized in a manner similar
to that which is currently authorized for the Centers for
Independent Living.
Program of Grants
Section 490 authorizes grantees under the Independent
Living Services for Older Individuals who are Blind programs to
expend funds either through grants or contracts to purchase
needed authorized services. Extending this authorization to the
Older Blind program grantees will enable grantees to use funds
more efficiently and potentially enhance program performance.
The committee has also removed references to the State plan
for independence living in Chapter 1, Subtitle G, for the
Independent Living Services for Older Blind programs in Chapter
2, Subtitle G. The committee recognizes that such references
cause confusion regarding the relationship between the broad
Chapter 1 State plan requirements and the discrete, age- and
disability-specific components of the Chapter 2 application.
Finally, the committee found it necessary to increase the
minimum allotment for the Independent Living Services for Older
Blind programs to reflect inflationary increases in the basic
cost of administering this program.
V. Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 3, 2003.
Hon. Judd Gregg,
Chairman, Committee on Health, Education, Labor, and Pensions,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1627, the Workforce
Investment Act Amendments of 2003.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Christina
Hawley Sadoti.
Sincerely,
Elizabeth M. Robinson
(For Douglas Holtz-Eakin, Director).
Enclosure.
S. 1627--Workforce Investment Act Amendments of 2003
Summary: S. 1627 would make numerous changes to the
Workforce Investment Act of 1998 (WIA), amend the Wagner-Peyser
Act, extend the authorization for programs under the
Rehabilitation Act of 1973 (RA), and create one new program
under the RA. These programs, which received discretionary
funding of $7.1 billion and mandatory funding of $2.5 billion
for fiscal year 2003, provide a framework for adult education,
job training, and employment service assistance. Some of the
affected programs are permanently authorized (most of Wagner-
Peyser), but others are currently authorized through 2003,
2004, or 2005.
S. 1627 would extend, through 2009, the existing mandatory
program of State grants for vocational rehabilitation services,
which is currently authorized through 2005 (including automatic
extensions for 2 years provided by law). By law, that program
is assumed to be extended indefinitely in CBO's baseline, so
its extension would add no costs relative to the baseline. CBO
estimates that outlays for that program over the 2006-2011
period would total about $17.1 billion.
CBO estimates that enacting S. 1627 would increase
discretionary authorizations by $5.3 billion in 2004, and by
$32.5 billion over the 2004-2008 period. Assuming appropriation
of the necessary amounts, implementing the bill would cost $0.4
billion in 2004 and $23.0 billion over the 2004-2008 period.
S. 1627 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Any costs incurred by State, local, or tribal governments would
result from complying with conditions of Federal aid.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1627 is shown in the following table.
The costs of this legislation would fall within budget function
500 (education, employment, training, and social services).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------
2004 2005 2006 2007 2008
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Discretionary Spending Under Current Law:
Estimated Authorization Level \1\.............................. 4,387 840 859 879 901
Estimated Outlays.............................................. 6,717 3,339 1,660 985 888
Proposed Changes:
Title I: Amendments to the Workforce Investment Act of 1998:
Estimated Authorization Level \2\.......................... 5,294 5,406 5,533 5,669 5,832
Estimated Outlays.......................................... 358 3,340 4,694 5,317 5,608
Title II: Adult Education:
Estimated Authorization Level.............................. 0 605 618 631 645
Estimated Outlays.......................................... 0 30 455 585 628
Title III: Amendments to the Wagner-Peyser Act:
Estimated Authorization Level.............................. 0 104 106 108 110
Estimated Outlays.......................................... 0 10 42 95 107
Title IV: Amendments to the Rehabilitation Act of 1973:
Estimated Authorization Level.............................. 38 446 456 466 475
Estimated Outlays.......................................... 27 323 441 462 472
Total Changes:
Estimated Authorization Level.............................. 5,332 6,562 6,713 6,874 7,063
Estimated Outlays.......................................... 385 3,703 5,732 6,459 6,815
Discretionary Spending Under S. 1627:
Estimated Authorization Level.............................. 9,718 7,402 7,572 7,753 7,964
Estimated Outlays.......................................... 7,102 7,042 7,291 7,445 7,703
----------------------------------------------------------------------------------------------------------------
\1\ The 2004 level includes advance appropriations of $2.5 billion for job training for the program year
beginning July 1, 2003.
\2\ Authorization levels are for program years beginning July 1 and do not assume any advance appropriations.
Notes.--Components may not sum to totals because of rounding.
* --Less than $500,000.
The estimated costs shown above assume that ``such sums'' authorization increase each year for inflation. If,
instead, costs were assumed to remain level over time, outlays over the 2004-2008 period would be about $1.1
billion less. The 2005-2008 levels are permanently authorized Wagner-Peyser (Employment Services).
Basis of estimate: This estimate assumes that S. 1627 will
be enacted by the end of 2003, and that the necessary sums will
be appropriated for fiscal year 2004 and each subsequent fiscal
year. The estimated outlays reflect historical spending
patterns for the affected programs.
Direct spending
Grants to States for vocational rehabilitation services,
authorized under title I of the RA, are currently authorized
through fiscal year 2005, assuming both the automatic one-year
extension in the RA and the automatic one-year extension under
the General Education Provisions Act (GEPA), which provides an
automatic extension for all programs in the Department of
Education. S. 1627 would extend the authorization for the State
grants through 2011, assuming the automatic extensions in law.
Although the authorization for RA State grants expires, the
Balanced Budget and Emergency Deficit Control Act requires that
baseline spending projections assume extension of any mandatory
program (created prior to 1997) with outlays in excess of $50
million. Because S. 1627 makes no substantive changes to RA
State grants, the bill would not affect direct spending
relative to the CBO's baseline.
Funding for the mandatory State grants is determined by a
formula. It is set at the previous year's funding level
adjusted by the year-over-year change in the consumer price
index as of October 15 of the second preceding year. In fiscal
year 2003, RA State grants were funded at $2.5 billion; by 2011
State grants would cost an estimated $3.1 billion. CBO
estimates that outlays over the 2006-2011 period would total
about $17.1 billion.
Discretonary spending
S. 1627 would reauthorize and amend the Workforce
Investment Act of 1998, the Adult Education and Family Literacy
Act, provisions of the Wagner-Peyser Act, and the
Rehabilitation Act of 1973. The bill also would create a
program of incentive grants under the RA. Under S. 1627,
authorizations for these programs would be increased by $5.3
billion in 2004, bringing the total authorized level to $9.7
billion in that year.
Title I: Amendments to the Workforce Investment Act. S.
1627 would revise and reauthorize the Workforce Investment Act
of 1998, which is currently authorized through 2003. These
programs, which received appropriations totaling $5.2 billion
in fiscal year 2003, would be authorized for fiscal years 2004
through 2009. CBO estimates that authorizations under title I
would total $5.3 billion in fiscal year 2004 and about $27.7
billion over the 2004-2008 period.
The bill would authorize the appropriation of such sums as
may be necessary for youth activities, grants to provide job
training activities to adults and dislocated workers, Job
Corps, and other national activities such as grants to assist
migrant and seasonal farm workers, technical assistance
programs, demonstration and pilot programs. In addition, the
bill specifies $57 million to be authorized for 2004 for
training programs that serve Native Americans. Furthermore, the
bill would authorize pilot programs aimed at using new
technologies and aiding adults with limited proficiency in
English language skills at $30 million and $10 million,
respectively, for fiscal year 2004. Based on the fiscal year
2003 appropriations for these programs (adjusted for
inflation), or the amount stated in the bill (where
applicable), CBO estimates that these programs would be
authorized at $5.3 billion for fiscal year 2004 and would grow
to $6 billion by 2009.
Title II: Adult Education and Literacy. Title II of S. 1627
would revise and reauthorize the Adult Education State Grant
program and the National Institute for Literacy, both of which
are currently authorized through 2004 by GEPA. S. 1627 would
authorize such sums as may be necessary for programs under
title II. CBO estimates the total funding for title II for the
2004-2008 period would be about $2.5 billion, assuming
adjustments for inflation, with resulting outlays of $1.7
billion. These programs were funded at $587 million in 2003.
Title III: Amendments to the Wagner-Peyser Act. Title III
of S. 1627 would reauthorize labor market information functions
which currently are authorized through 2004. S. 1627 would
authorize such sums as may be necessary for fiscal years 2004
through 2009. CBO estimates this authorization would amount to
$104 million in fiscal year 2005, and $429 million over the
2005-2008 period. Assuming the appropriation of the estimated
authorized amounts, outlays would increase by $254 over the
2005-2008 period.
Title IV: Amendments to the Rehabilitation Act. S. 1627
would extend the current ``such sums'' authorizations for
existing discretionary grant programs under the RA as well as
for the Helen Keller National Center. Most of these programs
are authorized through 2004 under GEPA and would be extended
through 2010 under this bill. There are, however, a few
exceptions--the authorizations for the National Council on
Disability, funded in 2003 at $3 million, and the Architectural
and Transportation Barriers Compliance Board, funded in 2003 at
$5 million, expired at the end of 2003, but the bill would
extend the programs through 2009. In addition, the bill would
create a new program of incentive grants under the RA, and
would require the General Accounting Office (GAO) to undertake
two studies.
Existing RA Programs. Discretionary grant programs under
the RA received total funding of $393 million in 2003. The
programs are currently operating under the GEPA extension.
Based on the 2003 appropriation levels (adjusted for
inflation), CBO estimates discretionary grant authorization
levels for the existing RA programs are estimated to total $407
million in 2005 and $1.7 billion over the 2005-2008 period.
Incentive Grants Program. The incentive grant program
created under S. 1627 would award funds to State vocational
rehabilitation (VR) agencies to encourage the adoption of
effective strategies to improve employment outcomes of the
disabled individuals provided VR services. The awards would be
based on performance standards specified under the RA or on
other performance measures the Secretary of Education deems are
appropriate. The program would be authorized to receive
appropriations of such sums as may be necessary for the 2004-
2009 period. Based on discussions with committee staff, CBO
assesses that the program would be similar to that proposed by
the Administration in its fiscal year 2003 budget.
Consequently, CBO estimates the authorized program level to be
$30 million in 2004, with annual adjustments for inflation in
subsequent years. Assuming the appropriation of the authorized
amounts, CBO estimates outlays would total $21 million in 2004
and $146 million over the 2004-2008 period.
GAO Studies and Reports. Title IV also would require the
GAO to conduct two new studies: one would analyze how well VR
services are being coordinated with the requirements of the
Ticket to Work and Self-Sufficiency Program established under
section 1148 of the Social Security Act, while the other would
assess how the VR State grant allocation formula relates to a
State's delivery of VR services. Based on information from GAO,
CBO estimates that the total cost of the studies would be less
than $500,000 over the 2004-2006 period.
National Council on Disability. The bill would extend the
authorization for the National Council on Disability. The
Council is responsible for reviewing Federal law and policies
affecting individuals with disabilities. Based on its 2003
appropriation of $3 million, CBO estimates that reauthorization
would amount to $3 million in 2004 and $15 million over the 5-
year period, with outlays of $14 million through 2008.
Architectural and Transportation Barriers Compliance Board.
Under S. 1627, the Architectural and Transportation Barriers
Compliance Board would be reauthorized for the 2004-2009
period. The Board develops guidelines to ensure access for
individuals with disabilities for buildings, transportation
vehicles, and telecommunications equipment. Based on the 2003
funding level of $5 million, CBO estimates the reauthorization
would total $28 million over the 2004-2008 period, and result
in outlays of $27 million over the same time frame.
Helen Keller National Center. S. 1627 would reauthorize the
Helen Keller National Center over the 2004-2009 period,
although GEPA has already established an authorization level
for 2004. The authorization for the Helen Keller National
Center is estimated to total $9 million in 2005 and $37 million
over the 2005-2008 period. The resulting outlays would be $6
million in 2005 and $34 million for 2005 through 2008.
Intergovernmental and private-sector impact: S. 1627
contains no intergovernmental or private-sector mandates as
defined in UMRA. The bill would reauthorize funding for adult
and youth job training, literacy activities, and vocational
rehabilitative services administered by State and local
agencies. Along with the conditions of Federal aid, States' job
training programs would be guaranteed minimum allotments for
subsequent fiscal years that equal fiscal year 2003 funding,
subject to the availability of appropriations. Any costs
incurred by State, local, and tribal governments would result
from complying with conditions of Federal aid, and would thus
be voluntary.
Estimate prepared by: Federal Spending: Workforce
Investment Act and Wagner-Peyser: Christina Hawley Sadoti;
Adult Education and National Institute for Literacy: Donna
Wong; Rehabilitation Act: Deborah Kalcevic and Paul Cullinan;
Impact on State, Local, and Tribal Governments: Sarah Puro;
Impact on the Private Sector: Ralph Smith and Nabeel Alsalam.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
VI. Application of 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. 1627
does not amend any act that applies to the legislative branch.
VII. 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
bill, but the committee does not believe it will be
significant.
VIII. Section-by-Section Analysis
TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT
Section 1 cites the bill as the Workforce Investment Act
Amendments of 2003.
Section 2 sets forth the table of contents.
Section 3 specifies that except as otherwise expressly
provided, wherever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section
or other provision, the amendment or repeal shall be considered
to be made to a section or other provision of the Workforce
Investment Act of 1998.
Section 101. Definitions
Section 101 adds definitions for the following terms:
accrued expenditures, business intermediary, hard-to-serve
populations, integrated training program, institution of higher
education, and self-sufficiency.
Section 101 amends the definitions of the following terms:
Basic skills deficient. Amends the term to include an
individual who is unable to compute or solve problems, read,
write, or speak English at a level necessary to function on the
job, in the individual's family, or in society.
Community-based organization. Amends the term to include a
faith-based organization.
Customized training. Amends the term to require employer to
pay for a significant cost of the training. (Under current law,
the employer must pay less than 50 percent.)
Dislocated worker. Amends the term to include the spouse of
a member of the Armed Forces on active duty for a period of
more than 30 days who has experienced a loss of employment as a
direct result of relocation to accommodate a permanent change
in duty station of the member.
Displaced homemaker. Amends the term to include the
dependent spouse of a member of the Armed Forces on active duty
for a period of more than 30 days whose family income is
significantly reduced because of a deployment, a call or order
to active duty, a permanent change of station, death or
disability of the member or is a spouse who is unemployed or
underemployed and is experiencing difficulty obtaining or
upgrading employment.
Low-income individual. Amends the term to include an
individual who receives or is eligible to receive a free or
reduced price lunch.
Out-of-school youth. Amends the terms to give it the
meaning as defined in section 129(a)(1)(b) of WIA.
Section 111. Purpose
Section 111 adds twelve purposes to the broad purpose to
provide workforce investment activities that increase
employment, retention, self-sufficiency, and earnings of
participants and increase occupation skill attainment by
participants, and, as a result, improve the quality of the
workforce, reduce welfare dependency, and enhance the
productivity of and competitiveness of the Nation. Among other
things, the new purposes include:
To enhance the workforce investment system
of the Nation by strengthening one-stop centers,
providing for more effective governance arrangements,
promoting access to a more comprehensive array of
employment and training and related services,
establishing a targeted approach to serving youth,
improving performance accountability, and promoting
State and local flexibility;
To provide workforce investment activities
in a manner that promotes the informed choice of
participants and actively involves participants in
decisions affecting their participation in such
activities; and
To provide workforce investment systems that
are demand-driven and responsive to the needs of all
employers, including small employers.
Section 112. State Workforce Investment Boards
Membership. Section 112 clarifies that in the case of the
programs authorized under title I of the Rehabilitation Act of
1973, the representative to the State Workforce Investment
Board shall be the head of the designated State unit, as
defined in section 7 of the Rehabilitation Act.
Section 112 adds the requirement that the State agency
officials responsible for economic development be a member of
the State Board. This section also requires that
representatives of businesses on the board include
representatives of small business and that business
representatives be appointed from among individuals nominated
by local boards in addition to nominations by State business
organizations and business trade organizations.
Section 112 eliminates the requirement that membership on
the State Board include representatives of individuals and
organizations that have experience with respect to youth
activities. This section also eliminates the requirement that
membership on the Board include representative of individuals
and organizations that have experience and expertise in the
delivery of workforce investment activities, including chief
executive officers of community colleges and community-based
organizations within the State.
Functions. Section 112 adds the following State board
functions:
Implement and revise the State plan (in
addition to develop);
Review and comment on the State plans of all
one-stop partner programs;
Develop and review statewide policies
affecting the coordinated provision of services through
the one-stop delivery systems;
Develop statewide criteria to be used by
chief elected officials for the appointment of local
boards and for use in certification of local boards;
and
Increase the availability of skills
training, employment opportunities, and career
advancement for hard-to-serve populations.
Alternative Entity. Section 112 amends the provisions
regarding the State board alternative entity to stipulate that
if a State fails to have performed successfully, the Secretary
of Labor may require the State to establish a State board.
Sunshine Provision. Section 112 amends the sunshine
provisions to require that the State board include
modifications to the State plan in the information it makes
available to the public.
Authority to Hire Staff. Section 112 adds a provision
allowing the State board to hire staff to assist in carrying
out the functions of the board.
Section 113. State Plan
Planning Cycle. Section 113 stipulates that the State plan
outline a 4-year strategy (rather than the current law
requirement of a 5-year strategy) for the statewide workforce
investment system. This section further stipulates that at the
end of the first 2-year period, the State board shall review
and, as needed, amend the State plan to reflect labor market
and economic conditions. This section also requires the State
to submit a modification to the State plan at the end of the
first 2-year period, which may include redesignation of local
areas and levels of performance for the third and fourth years
of the plan.
Contents. Section 113 expands the contents of the State
plan to include, among other things, a description of:
The procedures that will be taken to assure
coordination and avoid duplication among programs,
including certain programs authorized under the Social
Security Act, programs authorized under title VII of
the Rehabilitation Act of 1973, and programs carried
out by State agencies relating to mental retardation
and developmental disabilities;
How a State will use WIA Title I, Subtitle B
funds to leverage other resources in order to, among
other things, expand resources for the provision of
employment and training services, and of the incentive
and technical assistance the State will provide to
local areas regarding leveraging funds;
How the State will serve the employment and
training needs of persons with disabilities;
How the State will utilize technology to
facilitate access to services in remote areas;
The State strategy for coordinating
workforce investment activities and economic
development activities;
How the State will use WIA Title I, Subtitle
B funds to implement innovative programs and strategies
designed to meet the needs of all businesses in the
State; and
How the State will assist local areas in
assuring physical and programmatic accessibility for
individuals with disabilities at one-stop centers.
Modifications to State Plan. Section 113 adds the
stipulation that the State submit modifications to the State
plan required by statute, and under circumstances prescribed by
the Secretary that are due to changes in Federal law that
significantly affect elements of the State plan.
Section 114. Local Investment Areas
Designation of Areas. Section 114 adds as a consideration
that the Governor take into account in designating local areas,
the extent to which the local area will promote maximum
effectiveness in the administration and provision of services.
Section 114 also adds the requirement that in order to receive
an automatic designation as a local area, the local area must
have performed successfully and sustained fiscal integrity
during a statutorily two-year period.
``Performed successfully'' means that the local area
performed at 80 percent or more of the adjusted level of
performance for core indicators of performance. ``Sustained
fiscal integrity'' means that the Secretary has not made a
formal determination during the preceding 2-year period that
either the grant recipient or the administrative entity of the
local area ``misexpended'' WIA Title I funds due to willful
disregard of the requirements of the Act involved, gross
negligence, or failure to comply with accepted standards of
administration.
Section 114 eliminates the authority of the Secretary to
review the appeal of a unit of general local government or
grant recipient to the State board when an area was not
designated as a local workforce investment area.
Single Local Area States. Section 114 provides that the
Governor of any State that was a single local area as of July
1, 2002, may continue to designate the State as a single local
area if the Governor identifies the States as a local area in
the State plan. If the State was not a single local area, the
Governor may designate the State as one if no local area
meeting the requirements for automatic designation requests
designation as a separate local area. If a State is designated
as a local area, the local plan shall be submitted to the
Secretary for approval as part of the State plan.
Regional Planning. Section 114 provides, as does current
law, that a State may require regional planning by local boards
for a designated region in the State. Section 114 adds a
provision permitting the State to require the local boards for
the designated region to prepare, submit, and obtain approval
of a single regional plan that incorporates local plans for
each of the local areas in the region. If the State requires
regional planning, the State shall provide technical assistance
and labor market information to the local areas.
Section 114 adds to the types of information that States
may require local boards for a designated area to share,
information about the skill requirements of existing and
emerging industries and industry clusters. This section also
permits the State to require the local boards for a designated
area to coordinate services with regional economic development
services and strategies.
Section 115. Local Workforce Investment Boards
Membership. Section 115 clarifies that members of the board
representing business shall include representatives who
collectively, represent businesses with employment
opportunities that reflect the employment opportunities of the
local area, and include representatives of businesses that are
in high-growth and emerging industries, and representatives of
local businesses, including small businesses.
Section 115 adds the stipulation that membership of the
local board include a superintendent representing the local
school districts involved or another high-level official, the
president or highest ranking official of an institution of
higher education serving the local area, and an administrator
of local entities providing adult education and literacy
activities. If there are multiple school districts or
institutions of higher education serving a local area, the
representatives shall be appointed from among individuals
nominated by regional or local educational agencies,
institutions, or organizations representing such agencies or
institutions.
Section 115 clarifies that representatives of community-
based organizations include organizations representing hard-to-
serve populations. This section also eliminates the requirement
that representatives of each of the one-stop partners serve on
the local board. Section 115 adds the requirements that if the
local board does not establish a youth council, representatives
with experience serving out-of-school youth, particularly out-
of-school youth facing barriers to employment shall be included
on the board.
Section 115 adds the requirements that members of the board
represent diverse geographic sections within the local area.
Functions. Section 115 adds the following local board
functions:
Work to ensure there are sufficient
providers of intensive and training services serving
the local area in a manner that maximizes consumer
choice, including providers with expertise in assisting
individuals with disabilities;
Ensure the appropriate use and management of
WIA Title I, Subtitle B funds; and
Develop strategies for technology
improvements to facilitate access to services, in
remote areas, for services authorized under this
subtitle and carried out in the local area.
Section 115 clarifies that the local board shall include
promoting the participation of small employers in its function
to promote the participation of private sector employers in the
statewide workforce investment system. The board shall take
into account the needs of small business when it works to
ensure assistance to employers in meeting hiring needs.
Youth Council. Section 115 eliminates the requirement that
the local board establish a youth council within each local
board. Instead, this section allows the local board to
establish or continue councils to provide information and
advice to assist the local board in carrying out activities
under this title. These councils may include a council composed
of one-stop partners to advise the local board on the operation
of the one-stop delivery system involved, a youth council
composed of experts and stakeholders in youth programs to
advise the local board on youth activities, and other councils
as the local board determines are appropriate.
Alternative Entity. Section 115 revises the conditions
under which an alternative entity may serve as a local board
to, among other things, require that the alternative entity was
in existence on August 7, 1889, pursuant to State law.
Section 116. Local Plan
Planning Cycle. Section 116 stipulates that the local board
shall develop a 4-year local plan (rather than the current law
requirement of a 5-year plan). This section further stipulates
that at the end of the first 2-year period, the local board
shall review and, as needed, amend the local plan to reflect
labor market and economic conditions.
Contents. Section 116 expands the contents of the local
plan to include, among other things, a description of:
How the local board will facilitate access
to services provided through the one-stop delivery
system in remote areas, including facilitating access
through the use of technology.
How the local board will ensure physical and
programmatic accessibility for individuals with
disabilities at one-stop centers;
How the local board will coordinate
workforce investment activities carried out in the
local area with economic development activities carried
out in the local area; and
The strategies and services that will be
initiated in the local area to more fully engage all
employers, including small employers, in workforce
development activities.
Section 117. Establishment of One-Stop Partners
Roles and Responsibilities of Required One-Stop Partners.
Section 117 adds the following new roles and responsibilities:
Provide access through the one-stop delivery
system to the programs and activities carried out by
the one-stop partner, including making the program's
core services available at the comprehensive one-stop
centers and any other appropriate locations;
Use a portion of the funds available to the
partner's program to maintain the one-stop delivery
system, including payment of the infrastructure costs
of one-stop centers;
Enter into the local memorandum of
understanding with the local board relating to the
operation of the one-stop system; and
Provide representation on the State board.
Required One-Stop Partners. Section 117 eliminates as a
required one-stop partner the entity that administers the
welfare-to-work program. (This program is being phased out; all
expenditures have to be completed by end of fiscal year 2004.)
Section 117 adds as a required one-stop partner the entity that
administers the Temporary Assistance for Needy Families (TANF)
program, unless the Governor provides written notification to
the Secretaries of the Departments of Labor and Health and
Human Services that the entity will not be included as a one-
stop partner.
Additional One-Stop Partners. Section 117 adds as
additional partners that may participate in the one-stop
delivery system, entities that administer employment and
training programs administered by the Social Security
Administration, including the Ticket to Work and Self-
Sufficiency program, and employment and training programs
carried out by the Small Business Administration.
Memorandum of Understanding. Section 117 modifies the
memorandum of understanding developed between the local board
and each one-stop partner to include provisions describing:
The services to be provided through the one-
stop delivery system consistent with the requirements
Section 121 of WIA, including the manner in which the
services will be coordinated;
How the costs of services and the operating
costs of the system will be funded to provide a stable
and equitable funding stream for ongoing one-stop
system operations, including the funding of the
infrastructure costs of one-stop centers;
Methods of referral of individuals between
the one-stop operator and the one-stop partners for
appropriate services and activities;
Methods to ensure the needs of hard-to-serve
populations are addressed in accessing services through
the one-stop system; and
The duration of the memorandum of
understanding and the procedures for amending the
memorandum during the term of the memorandum, and
assurances that such memorandum shall be reviewed not
less than once every 2-year period to ensure
appropriate funding and delivery of services.
Established One-Stop Delivery System. Section 117
eliminates the provision permitting the local board, the chief
elected official, and the Governor to certify an entity as a
one-stop partner if there has been a one-stop delivery system
established in the local area prior to enactment of the Act.
Establishment of One-Stop Delivery System. Section 117
replaces reference to ``individual training accounts'' with
reference to ``career scholarship accounts.''
Continuous Improvement of One-Stop Centers. Section 117
adds the requirement that the State board, in consultation with
chief local elected officials and local boards, to establish
procedures and criteria for use by local boards in periodically
assessing the effectiveness, physical and programmatic
accessibility, and continuous improvement of one-stop centers
and one-stop delivery systems. This new subsection stipulates
that the procedures and criteria shall include minimum
standards relating to the scope and degree of service
coordination achieved by the one-stop delivery system with
respect to the programs administered by the one-stop partners
at the one-stop centers, consistent with the guidance provided
by the Governor and by the State board, in consultation with
the chief elected official and local boards. This new section
further stipulates that consistent with the criteria developed
by the State, the local board may develop additional criteria
of higher standards to respond to local labor market and
demographic conditions and trends.
One-Stop Infrastructure Funding. Section 117 defines
``costs of infrastructure'' as the nonpersonnel costs that are
necessary for the general operation of the one-stop center.
Local Option for One-Stop Infrastructure Funding. Section
117 adds a provision allowing the local board, chief elected
officials, and one-stop partners in a local area to choose to
fund the costs of the infrastructure of one-stop centers
through methods described in the local memorandum of
understanding. If, as of July 1, 2004, the local board, chief
elected official, and one-stop partners in a local area fail to
reach agreement on methods of sufficient funding of the
infrastructure costs of one-stop centers, as determined by the
local area, the State infrastructure funding mechanism,
described below, shall be used.
Section 117 adds the requirement that the Governor, after
consultation with chief local elected official, local boards,
and the State board, provide guidelines for State administered
one-stop partner programs in determining such program's
contributions to and participation in the one-stop delivery
system, including funding for infrastructure costs, and
guidance to assist local areas in identifying equitable and
stable alternative methods of funding of the costs of the
infrastructure of one-stop centers in local areas.
Partner Contributions to the State Infrastructure Funding
Mechanism. Section 117 adds the stipulation that if the
infrastructure of one-stop centers is not funded under the
local option, described above, then the Governor, after
consultation with chief local elected officials, local boards,
and the State board, shall determine the portion of funds to be
provided by each one-stop partner. In making this
determination, the Governor shall consider the proportionate
use of the one-stop centers by each partner, and the costs of
administration for purposes not related to one-stop centers for
each partner.
Section 117 also stipulates that in a State in which the
State constitution places policymaking authority that is
independent of the authority of the Governor in an entity or
official with respect to the funds provided for adult education
and literacy activities authorized under WIA Title II and for
postsecondary vocational and technical education activities
authorized under the Carl D. Perkins Vocational and Technical
Education Act of 1998, or vocational rehabilitation services
offered under the Rehabilitation Act of 1973, the portion of
funds to be provided by partners administering these programs
shall be made by the chief officer of the entity with such
authority in consultation with the Governor.
Section 117 adds the requirement that the Governor
establish a procedure for one-stop partners to appeal a
determination regarding the portion of funds to be contributed
under this paragraph on the basis that such determination is
inconsistent with the criteria described in the State plan or
with statutory requirements.
Section 117 also stipulates that the funds provided by each
one-stop partner be provided only from funds available for the
costs of administration under the program administered by such
partner.
Section 117 sets the following caps on required
contributions:
The portion of funds required to be
contributed by WIA formula programs and the employment
service authorized under the Wagner-Peyser Act shall
not be in excess of 3 percent of the amount of Federal
funds provided to carry out each program in the State
for a fiscal year unless there is an agreement,
including local memorandums of understanding entered
into prior to the date of enactment of the Workforce
Investment Act Amendments of 2003 by an entity that
permits the percentages to be exceeded;
The portion of funds required to be
contributed by other required one-stop partners, except
for partners administering the Vocational
Rehabilitation program shall not be in excess of 1.5
percent of the amount of Federal funds provided to
carry out each program in the State for a fiscal year
unless there is an agreement, including local
memorandums of understanding entered into prior to the
date of enactment of the Workforce Investment Act
Amendments of 2003 by an entity that permits the
percentages to be exceeded;
An entity administering a vocational
rehabilitation program shall not be required to provide
an amount in excess of 0.75 percent of the amount
provided for the program in the State for the second
program year that begins after the date of enactment of
the Workforce Investment Act Amendments of 2003, 1.0
percent of the amount provided for the third program
year, 1.25 percent of the amount provided for the
fourth program year, and 1.5 percent of the amount
provided for the fifth and each succeeding program
year;
An entity administering a Federal direct
spending program shall not be required to provide an
amount in excess of the amount determined to be
equivalent to the cost of the proportionate use of the
one-stop centers for the program; and
The method for determining the appropriate
portion of funds to be provided by WIA Native American
programs to pay for the costs of infrastructure of a
one-stop center shall be determined as part of the
development of the memorandum of understanding for the
one-stop center and shall be stated in the memorandum.
Allocation by the Governor of Partner Contributions to the
State Infrastructure Funding Mechanism. Section 117 adds the
requirement that the State board develop a formula to be used
by the Governor to allocate the funds to local areas not
funding infrastructure costs under the local option. The
formula shall be based on factors including the number of one-
stop centers in a local area, the population served by such
centers, the services provided by such centers, and other
factors relating to the performance of the centers that the
State board determines are appropriate.
Other Funds. Section 117 stipulates that a portion of other
Federal funds for one-stop partner programs or the noncash
resources available to these programs shall be used to pay the
additional costs relating to the operation of the one-stop
delivery system, such as the costs of the provision of core
services. The method for determining the appropriate portion of
funds and noncash resources to be provided by each program for
a one-stop center shall be determined as part of the
development of the memorandum of understanding and shall be
stated in the memorandum. The State board shall provide
guidance to facilitate the determination of an appropriate
allocation of the funds and noncash resources in local areas.
Section 118. Eligible Providers of Training Services
Criteria. Section 118 adds the requirement that the
Governor, after consultation with the State board, establish
criteria regarding the eligibility of providers of training
services to receive WIA funds. Among other things, the criteria
shall take into account the following:
The performance of providers of training
services with respect to the performance measures for
those individuals receiving training services;
The need to ensure access to training
services throughout the State, including any rural
areas;
The information providers are required to
report to State agencies with respect to Federal and
State programs; and
The requirements for State licensing of
providers of training services, and the licensing
status of each provider of training services if
applicable.
Section 118 stipulates that the criteria established by the
Governor shall require that a provider of training services
submit appropriate, accurate, and timely information to the
State to assist participants in choosing providers. The
criteria shall also provide for annual review and renewal of
eligibility for providers of training services.
Section 118 also allows local boards to establish criteria
in addition to the criteria established by the Governor, or to
require higher levels of performance than required under the
criteria established by the Governor.
Procedures. Section 118 adds the requirement that the
Governor, after consultation with the State board, establish
criteria regarding the eligibility of providers of training
services to receive WIA funds. Among other things, the
procedures shall identify the application process for a
provider of training services to become eligible to receive
funds to provide training services, and identifying the
respective roles of the State and local areas in receiving and
reviewing the applications and in making determinations of
eligibility.
Information To Assist Participants in Choosing Providers.
Section 118 adds the requirement that the Governor ensure that
a list of eligible providers is provided to the one-stop
delivery system in the State. Section 118 also stipulates that
an entity that carries out programs under the National
Apprenticeship Act shall be included on the list of eligible
providers as long as the entity remains certified by the
Department of Labor.
Agreements With Other States. Section 118 adds a provision
that allows States to enter into agreements, on a reciprocal
basis, to permit eligible providers of training services to
accept career scholarship accounts provided in another State.
Opportunity To Submit Comments. Section 118 adds the
requirement that the Governor provide an opportunity for
interested members of the public to make recommendations and
submit comments regarding criteria, procedures, and
information.
Transition Period for Implementation. Section 118 adds the
stipulation that the requirements regarding eligible providers
of training services shall be implemented not later than
December 31, 2004. Section 118 also provides that in order to
facilitate early implementation of the requirements, the
Governor may establish transition procedures under which
providers eligible to provide training services on the day
before the date of enactment of the Workforce Investment Act
Amendments of 2003 may continue to be eligible to provide such
services until December 31, 2004, or until such earlier date as
the Governor determines appropriate.
Section 118 contains provisions regarding ``Enforcement''
and ``On-the-Job Training or Customized Training'' that are
similar to current-law provisions.
Section 119. Eligible Providers of Youth Activities
Section 119 adds an exception to the current law
requirement that local boards award WIA youth grants or
contracts on a competitive basis to providers of youth
activities identified based on the criteria in the State plan.
This exception allows a local board to award grants or
contracts on a sole-source basis if the board determines there
is an insufficient number of eligible providers of youth
activities in the local area for grants and contracts to be
awarded on a competitive basis.
Section 120. Youth Activities
State Allotments. Section 120 provides that the portion of
funds that is reserved for youth opportunity grants under
current law instead be reserved for youth challenge grants
under Section 169 of WIA. Section 120 adds the requirement that
a minimum amount of $10 million be reserved for youth
activities for farm workers under section 167 of WIA Section
120. Section 120 deletes the requirement that the Secretary
reserve funds for a role model academy project. (Current law
provides that funds can be reserved only for fiscal year 1999.)
Section 120 stipulates that of the funds remaining after
funds are reserved for youth challenge grants, youth activities
for farm-wives and Native Americans, and for the outlying
areas, the Secretary shall allot to the States an amount that
is less than or equal to the total amount that was allotted to
States for fiscal year 2003 under section 127(b)(1)(C) of WIA
(as in effect on the day before the date of enactment of the
Workforce Investment Act Amendments of 2003), in accordance
with the requirements of section 127(b)(1)(C). (The State
formula under this section is based on one-third State relative
share of total unemployed in areas of substantial unemployment,
one-third State relative share of excess unemployed, and one-
third State relative share of economically disadvantaged
youth.) The amount of any funds in excess of the amount to be
distributed according to current-law provisions is to be
distributed on the basis of one-third State relative share of
individuals in the civilian labor force who are ages 16 through
21, one-third State relative share of unemployed individuals,
and one-third relative share of disadvantaged youth who are
ages 16 through 21.
Section 120 deletes the allotment calculation for an area
served by the rural concentrated employment program grant
recipient. Section 120 also deletes the requirement that no
State receive an allotment for a fiscal year that is less than
the greater of an amount based on 90 percent of the allotment
percentage of the State for the preceding fiscal year of 100
percent of the total allotment for the summer youth and year-
round youth programs authorized under the Job Training
Partnership Act for fiscal year 10998. Instead, section 120
requires the Secretary to ensure that no state shall receive an
allotment percentage that is less than 90 percent of the
allotment percentage of the State for the preceding fiscal
year. Section 120 also deletes the requirement that for any
fiscal year in which the amount available for allocation to
States does not exceed $1 billion, then the minimum State
allotments shall be calculated by the methodology for
calculating the corresponding allotments under parts B and C of
title II of the Job Training Partnership Act, as in effect on
July 1, 1998.
Section 120 also amends the provisions regarding the
reallotment of State funds to require that the amount available
for reallotment for a program year is equal to the amount by
which the unexpended balance at the end of the previous program
year exceeds 30 percent of the State's allotment for the
previous program year. The unexpended balance is the amount
that is the difference between the total amount of funds
available to the State during the previous program year and the
accrued expenditures during the previous program year.
Section 120 stipulates that the State allotment provisions
are effective for the program year that begins after the date
of enactment of this Act.
Within State Allocations. Section 120 amends the provisions
regarding the allocation of funds to local areas to require
that the Governor allot not less than 80 percent of the funds
available for local allocation in a State on the basis of one-
third local relative share of individuals in the civilian labor
force who are ages 16 through 21, one-third local relative
share of unemployed individuals, and one-third local relative
share of disadvantaged youth who are ages 16 through 21. The
Governor can allot not more than 20 percent of the funds
available for local allocation in a State to local areas where
there are a significant number of eligible youth, after
consultation with the State board and local board. Section 120
establishes a maximum percentage allotment of 130 percent of
the allocation percentage of the local area for the preceding
year for the allocation of the 80 percent portion of funds.
Section 120 also amends the provisions regarding the
reallocation of local funds to require that the amount
available for reallocation for a program year be equal to the
amount by which the unexpended balance at the end of the
previous program year exceeds 30 percent of the total among of
funds available to a local area for the previous program year.
The unexpended balance is the amount that is the difference
between the total amount of funds available to the local area
during the previous program year and the accrued expenditures
during the previous program year.
Youth Participant Eligibility. Section 120 clarifies that
out-of-school youth and in-school youth are eligible for WIA
services. Section 120 defines ``out-of-school youth'' as an
individual who is not younger than age 16 or older than age 21,
and is one of the following:
A school dropout;
A youth who is within the age for compulsory
school attendance, but has not attended school for at
least one school year calendar quarter;
A recipient of a secondary school diploma or
its equivalent who is deficient in basic skills, a low-
income, and not attending any school;
An individual subject to the juvenile
justice system or ordered by court to attend an
alternative school.
An out-of school low-income individual who
is pregnant or parenting;
A youth who is not attending school or a
youth attending an alternative school, who is homeless,
a runaway, a foster child, an older foster youth or
former foster youth, or a youth who is in an out-of-
home placement; or
A low-income individual who requires
additional assistance to complete an educational
program to secure or hold employment.
Section 120 defines ``in-school-youth'' as an individual
who is not younger than age 14 or older than age 21, a low-
income individual, and is one or more of the following:
Deficient in basic literacy skills,
including limited English proficiency;
Homeless, a runaway, a foster child, an
older foster youth or former foster youth, or a youth
who is in an out-of-home placement;
Pregnant or parenting;
An offender; or
An individual who requires additional
assistance to complete an educational program, or to
secure or hold employment.
Section 120 specifies that not more than 5 percent of youth
in a local area (for whom being low-income is an eligibility
requirement) may be individuals who are not low-income. (Under
current law, all youth are required to be low-income, except
for 5 percent of youth in a local area if they meet one or more
specified criteria, such as being a school dropout.)
Section 120 adds the requirement that not more than 60
percent of funds may be used to provide activities for in-
school youth. (Under current law, not more than 70 percent of
funds may be used to provide activities for in-school youth.)
Section 120 also adds a requirement that in providing
assistance to an individual who is required to attend school
under applicable State compulsory school attendance laws, the
priority in providing assistance shall be for the individual to
attend school regularly.
Statewide Activities. Section 120 amends the list of
permissible statewide activities to include, among other
things:
Conducting evaluations, research, and
demonstration projects;
Providing incentive grants to local areas
for regional cooperation among local boards, for local
coordination of activities, and for exemplary
performance by local areas;
Providing technical assistance and capacity
building activities to local areas, one-stop operators,
one-stop partners, and eligible providers;
Operating a fiscal and management
accountability information system;
Carrying out monitoring and oversight of
activities; and
Providing additional assistance to local
areas that have high concentrations of eligible youth.
Local Elements and Requirements. Section 120 adds the
requirement that service strategies developed for each
individual be directly linked to one or more performance
measures. Section 120 also adds new requirements that programs
provide activities leading to the attainment of a secondary
school diploma or its equivalent, or another recognized
credential; preparation for postsecondary educational advanced
training opportunities; strong linkages between academic
instruction based on State academic content and student
academic achievement standards established under section 1111
of the Elementary and Secondary Education Act of 1965 and
occupational learning that lead to the attainment of recognized
credentials; and effective connections to all employers,
including small employers, in sectors of the local and regional
labor markets that are experiencing high growth in employment
opportunities.
Section 120 adds the following new program elements:
On-the-job training opportunities;
Opportunities to acquire financial literacy
skills;
Entrepreneurial skills training and micro
enterprise services; and
Information about average wages for a range
of jobs available in the local area, including
technology jobs.
Section 120 adds the requirement that local boards
establish linkages with educational agencies responsible for
services to participants. (Under current law, youth council are
required to establish the linkages.)
Section 121. Adult and Dislocated Worker Employment and Training
Activities
State Allotments. Section 121 amends the formula for
determining the allotment among States for Adult Employment and
Training Activities. Funds shall be allotted according to the
following formula: 40 percent on the basis of the relative
number of unemployed individuals in areas of substantial
unemployment in each State, 25 percent on the basis of the
relative number of individuals in the civilian labor force in
each State, 35 percent on the basis of the relative number of
disadvantaged adults in each State. This section also amends
the small state minimum allotment by eliminating the minimum
funding calculated under the Job Training Partnership Act. This
section also amends the provisions regarding the reallotment of
funds to require that that amount available for reallotment for
a program year exceeds 30 percent of the State's allotment for
the previous program year. Unexpended balance is defined as the
difference between the total amount of funds allotted to the
State the previous program year and accrued expenditures.
Within State Allocations. Section 121 amends Section 133 of
WIA regarding within State Allocations to be consistent with
the changes to the State reallotment provisions.
Required Statewide Employment and Training Activities.
Section 121 adds a provision authorizing Governors to use rapid
response funds that remain unexpended after the end of the
program year to be used for other required statewide employment
and training activities and allowable employment and training
activities. Section 121 amends required statewide employment
and training activities to include: disseminating an eligible
provider list and information identifying eligible providers of
on-the-job and customized training; disseminating performance
and cost information on providers; disseminating information on
physical and programmatic accessibility; conducting
evaluations, providing incentive grants; developing strategies
to ensure that activities are placing men and women in jobs,
education, and training that lead to comparable pay; providing
technical assistance and capacity building; operating fiscal
and management accountability; monitoring and oversight.
Allowable Statewide Employment and Training Activities.
Section 121 amends allowable statewide employment and training
activities to include: implementing innovative programs and
strategies to meet business needs; developing strategies for
effectively serving hard-to-serve populations; implementing
innovative programs for displaced homemakers; implementing
programs to increase individuals trained for or placed in
nontraditional employment; facilitating remote access to
services; supporting the provision of core services; improving
coordination with the child welfare system; improving
coordination with economic development activities, child
support services, Department of Agriculture cooperative
extension programs, and programs carried out in the local area
for individuals with disabilities; developing and disseminating
workforce and labor market information; conduction research and
demonstration projects; and adopting, calculating or
commissioning a minimum self-sufficiency standard.
Required Local Employment and Training Activities. Section
121 amends Section 134 of WIA to add the requirement that local
areas designate a dedicated business liaison in the local area
and that Wagner-Peyser employment services co-locate at
comprehensive one-stop centers. Section 121 expands core
services to also include job search and placement assistance
for exposure to high wage, high skill jobs and nontraditional
employment, and recruitment and other business services.
Section 121 also amends the eligibility requirements for
intensive services. Unemployed individuals are eligible for
intensive services if they have been determined to be unlikely
or unable to obtain employment that leads to self-sufficiency
or wages comparable or higher than previous employment through
core services and in need of intensive services to obtain such
employment. Employed individuals are eligible for intensive
services if they have been determined to be in need of
intensive services to obtain employment that leads to self-
sufficiency. Section 121 expands intensive services to also
include internships and work experience; literacy and financial
literacy activities; out-of-area job search and relocation
assistance; and English language acquisition and integrated
training programs. Section 121 authorizes case management for
intensive as well as training participants.
Section 121 also amends the eligibility requirements for
training services. Adults and dislocated workers eligible for
training services must have been determined to be unlikely or
unable to obtain employment that leads to self-sufficiency or
wages comparable or higher than previous employment through
intensive services, in need of training services to obtain such
employment, and have the skills and qualifications to
participate in training. Section 121 adds English language
acquisition and integrated training programs to the list of
training services. Individual Training Accounts are renamed
Career Scholarship Accounts. Local boards are authorized to
coordinate career scholarship accounts with other job training
programs or sources to assist the individual in obtaining
training. Section 121 adds an exception that allows local
boards to contract with an institute of higher education for
training services in order to facilitate the training of
multiple individuals in high-demand occupations, if such
contract does not limit customer choice.
Permissible Local Activities. The list of permissible local
activities is amended to include: customized screening and
referral of participants; customized fee-for-service employment
services; customer support for hard-to-serve populations;
technical assistance and capacity building for serving
individuals with disabilities; coordinating with the child
support enforcement activities; improving coordination with
child support services; improving coordination with Department
of Agriculture cooperative extension programs, facilitating
remote access to services; improving coordination with economic
development activities; improving linkages with employers;
training programs for displaced homemakers and individuals
training for nontraditional occupations; activities to carry
out business services and strategies; adjusting the self-
sufficiency standard; and improving coordination with programs
carried out in the local area for individuals with
disabilities. Section 121 authorizes local areas to use funds
to provide work support activities for low-wage workers through
the one-stop delivery system. Section 121 authorizes local
boards to use up to 10 percent of local funds to pay for the
Federal share of incumbent worker training. Employers are
required to share the cost of incumbent worker training,
depending on the size of the employer.
Section 122. Performance Accountability System
State Performance Measures. Section 122 amends Section 136
of WIA to replace the adult performance indicator of earnings
received in unsubsidized employment 6 months after entry into
employment with increases in earning from unsubsidized
employment. Core indicators for youth are amended to include
entry into employment, education, advanced training or military
service; attainment of secondary school diplomas or recognized
equivalents, and post secondary certificates; and literacy and
numeracy gains. Section 122 also requires that State
performance levels be adjusted to reflect economic conditions
and characteristics of the population to be served; Section 121
requires the Secretary of Labor to establish national goals for
adjusted levels for systemwide performance.
Local Performance Measure. Section 122 requires that local
performance measures be adjusted to reflect economic conditions
and characteristics of the population to be served.
Report. Section 122 expands State reporting requirements to
include information on the amount and percentage of funds, if
any, spent on business services; the number of participants
served and the cost per participant; and the amount of adult
and dislocated worker funds spent on core, intensive and
training services.
Sanctions. Section 122 amends Section 136 of WIA to
stipulate that States and Local areas are subject to sanctions
if the State or local area, respectively, performed at less
than 80 percent of the adjusted level of performance for core
indicators of performance for 2 consecutive years.
Incentive Grants. Section 122 expands the basis on which
incentive grants to local areas can be awarded to include:
exemplary performance in serving hard-to-serve populations;
effectively coordinating multiple systems in a comprehensive
workforce development system; expanding access to training; and
implementing innovative business and economic development
initiatives.
Section 123. Authorization of Appropriations
Section 123 authorizes such funds as may be necessary for
fiscal years 2004 through 2009 for youth activities, adult
activities, and dislocated worker activities.
Section 131. Job Corps
Section 131 strikes the inclusion of local and distant
employers on industry councils and instead includes language
that would allow the Industry Council to include employers from
outside the local area who are likely to hire a significant
number of enrollees from Job Corps Centers. The bills add the
requirement that industry councils within single local area
States must include a representative of the State board. The
bill strikes current law relating to the establishment of
performance indicators and directs the Secretary to annually
establish expected levels of performance for Job Corps centers
and the Job Corps program relating to each of the core
indicators for WIA youth activities.
The bill authorizes the appropriations of such sums as may
be necessary for fiscal years 2004-2005.
Section 141. Native American Programs
Sec. 141 amends Section 166 of WIA regarding Native
American Programs. The Senate bill retains current law duty of
the Native American Employment and Training Council to advise
the Secretary on the selection of the individual appointed as
head of the Division of the Indian and Native American Programs
at the Department of Labor.
The bill amends Section 116(j) to provide assistance to
unique populations in Alaska and Hawaii to improve job training
and workforce investment activities and authorizes
appropriations of such sums as may be necessary for fiscal year
2004.
The bill adds a requirement that the Secretary, in
consultation with the Native American Employment and Training
Council to develop performance indicators that are appropriate
to the Native American program.
Section 142. Migrant and Seasonal Farmworkers
No change is made to current law except the addition of
``permanent housing'' to allowable activities.
Section 143. Veterans
No change to current law is made except a citation update.
Section 144. Youth Challenge Grants
In General. Section 144 replaces youth opportunity grants
with youth challenge grants. Under the amended section 169 of
WIA, of the amounts reserved for Youth Challenge Grants, not
less than 80 percent shall be used by the Secretary to award
competitive grants and not more than 20 percent may be used by
the Secretary to award discretionary grants.
Competitive Grants. Competitive grants may be awarded to
States, local boards, recipients of Native American grants, and
public or private entities with expertise in youth activities
applying in partnership with local boards. The bill establishes
the factors for awarding grants and requires the Secretary to
ensure an equitable geographic distribution of grants across
geographically diverse areas. Youth aged 14 to 21 may be
eligible to participate in activities that are designed to
assist youth in acquiring the skills, credentials, and
employment experience necessary to succeed in the labor market.
The Secretary shall require matching funds from grant
recipients of at least 10 percent. The bill stipulates that
initial grants are for a period of 2 years, which may be
renewed for up to 3 succeeding years if the recipient performed
successfully.
Discretionary Grants. The bill stipulates that the
Secretary may award discretionary grants to eligible entities
to provide activities that assist youth in preparing for,
entering, and retaining employment; assist in-school youth to
stay in school and gain work experience; assist youth in
economically distressed areas; and such other activities as the
Secretary determines are appropriate to ensure that youth
entering the workforce have needed skills. The bill directs the
Secretary to ensure equitable distribution to rural areas in
awarding grants. Youth aged 14 to 21 may be eligible to
participate in activities. The Secretary shall require matching
funds from grant recipients of at least 10 percent.
Section 145. Technical Assistance
Sec. 145 amends Section 170 of WIA relating to technical
assistance. Funding for peer review activities and training of
staff, and training of state and local boards, are specifically
authorized as an allowable use of funds. The bill requires the
Secretary to establish a system for States to share best
practices, and evaluate and disseminate information on best-
practices and commission research to address knowledge gaps.
Section 146. Demonstration Pilot, Multiservice, Research, and
Multistate Projects
Section 146 amends the provisions of section 171 of WIA
relating to demonstration, pilot, multiservice, research, and
multistate projects. The list of projects contained in section
171(b)(1) of WIA is amended to include: projects that assist
national employers to enhance facilitate the recruitment and
employment of workers for career ladder jobs; systems
development activities that improve the maximum effectiveness
of programs; projects that focus on industries and sectors that
experience, or are likely to experience, high-growth and job
leading to self-sufficiency, integrated systems training
projects; State and local projects to test innovative
approaches to workforce delivering services; projects that
provide retention grants to qualified job training programs;
targeted innovation projects that improve access to and
delivery of workforce services; projects that promote the use
of distance learning; projects that provide comprehensive
education and training services and support services, in
coordination with local boards, for populations in high poverty
areas.
The bill replaces existing formula studies to be carried
out by the Secretary under Section 171(c)(2)(B) with the
following: net impact studies on resources available to assist
out-of-school youth; study on industry-based certification and
credentials; study on the effectiveness of workforce investment
system in meeting business needs.
The bill adds a new subsection 171(c) that directs the
Secretary of Labor to carry out 10 pilot projects to establish
a system of industry-validated certifications of skills,
including 8 in high-technology industries and 2 in cross-
disciplinary skills related to homeland security. Grants
applications will be submitted to the Department of Labor,
which will create criteria for the application consistent with
the goals of the subsection. Grants are competitive, and will
be made to eligible entities for periods of 36-48 months.
Graphic diversity, including rural areas, shall be considered
in the award of grants. Eligible entities shall work with the
local workforce investment board and shall include as a
principal participant one of the following: (1) A community
college; (2) an advanced technology education center; (3) a
local workforce investment board; (4) a representative of a
business in the target industry for the certification involved;
and (5) a representative of an industry organization, labor
organization, or community development organization. The
eligible entity shall have a history of demonstrated capacity
for effective collaboration with industry on workforce
development activities. Authorized activities for funding are:
(1) To establish certification requirements for an industry;
(2) to develop and initiate certification programs including
preparatory courses, course materials, procedures, and
examinations; and (3) to collect and analyze data at the
program's completion, including best practices that may be used
by local and State workforce investment boards. Certification
requirements shall be linked to those developed by the National
Science Foundation Advanced Technological Education Program,
requiring that an individual demonstrate an identifiable set of
competencies related to an industry, including evidence of a
transferable skill that allows flexibility and mobility for the
individual. The Secretary of Labor shall consult with the
Director of the National Science Foundation to ensure that the
pilot projects are created consistent with the best practices
obtained from the National Science Foundation Advanced
Technological Education Program. After analyzing and collecting
the data obtained from the programs, the Secretary shall: (1)
Establish the core components of a model high-technology
certification program; (2) establish guidelines to assure the
development of a uniform set of standards and policies for such
programs; (3) submit a report to the Senate Health, Education,
Labor, and Pensions Committee and the House Committee on
Education and Workforce; and (4) make the data and report
available to the public. $30 million is authorized in fiscal
year 2004 for the purposes of this subsection.
The bill adds a new subsection 171(f) that directs the
Secretary of Labor to award not less than 10 competitive grants
to eligible entities designed to integrate English language
proficiency and occupational training. Grants applications will
be submitted to Department of Labor, which will create criteria
for the application consistent with the goals of the
subsection. To be eligible for a grant under this subsection,
entities shall have experience: (1) Serving individuals with
limited language proficiency, including individuals with lower
levels of oral and written English; and (2) providing workforce
programs with training and English language instruction.
Included in this application shall be: (1) Capability
statements; (2) assurances that the program shall establish:
(a) a generalized adult bilingual workforce training and
education model that integrates English language acquisition
occupational training, including the unique linguistic and
cultural factors of the participants; (b) a framework by which
the employer, employee, and other relevant members of the
eligible entity can create a career-development and training
plan that assist the employer and employee to meet their long-
term needs; (c) ensure that this framework takes into
consideration the knowledge, skills, and abilities of the
employee with respect to both the current and economic
conditions of the employer and the future labor market
conditions relevant to the local area; (d) identifiable
measures so the progress of the employer, employee, and program
can be evaluated, including best practices. The Secretary shall
select programs for awards to ensure that competitive data on
multiple approaches to integrated workforce training and
language instruction be obtained. Grants are competitive, and
will be made to eligible entities for periods of 24-48 months.
Geographic diversity, including rural areas, shall be
considered. Eligible entities shall work with the local
workforce investment board and shall include as a principal
participant one or more of the following: (1) An employer or
employer organization; (2) a non-profit provider of English
instruction; (3) a provider of occupational or skills training;
(4) a community based organization; (5) an educational
institution, including a 2- or 4-year college, or a technical
or vocational school; (6) a labor organization; and (7) a local
workforce investment board. After analyzing and collecting the
data obtained from the programs, the Secretary shall submit a
report to the Senate Health, Education, Labor and Pensions
Committee and the House Committee on Education and Workforce
and make the data and the report available to the public. $10
million is authorized in fiscal year 2004 for the purposes of
this subsection.
Section 147. National Dislocated Worker Grants
The National Emergency Grants will now be known as National
Dislocated Worker Grants (NDWG). These grants will continue to
assist state and local areas to respond with job training and
assistance when significant numbers of workers suffer from
dislocation, due to mass layoffs or plant closings. This bill
adds the ability of the secretary to respond in partnership
with the Department of Defense Veterans' Affairs transition
assistance programs. When an area faces a higher than average
demand for employment and training for dislocated members of
the Armed Forces and their spouses, it is the opinion of this
Committee that the area can apply for a NDWG.
Section 148. Authorization of Appropriations for National Activities
The bill amends section 174 of WIA to authorize
appropriations of such sums as may be necessary for 2004
through 2009. The bill strikes the current law reservations and
authorizes appropriations of such sums as may be necessary to
carry out section 170 through 172 of WIA for 2004 through 2009.
Section 151. Administration
Section 151 amends section 181(e) of WIA to strike economic
development activities from the list of activities for which
WIA Title I funds shall not be used.
Section 152. Cost Principles
The bill amends the citation.
Section 153. Reports
Section 153 amends Section 185(e) of WIA to allow the use
of electronic methods to submit information or disseminate
information.
Section 154. Administrative Provisions
Section 154 amends the annual report provisions of section
189(d) of WIA to require the Secretary of Labor to include
information on the negotiated levels of performance of the
States, the States' requests for adjustments of such levels,
and the adjustments of such levels that are made. The bill
provides that the Secretary shall not waive statutory or
regulatory requirements relating to the funding of
infrastructure costs for one-stop centers. The bill directs the
Secretary to expedite requests for waivers for statutory or
regulatory requirements that have been approved for a State,
provided the requirements of section 189 have been satisfied.
Section 155. Use of Certain Real Property
Section 155 amends section 193 of WIA to provide for the
transfer of any Federal equity acquired in real property
through grant to States awarded under title III of the Social
Security Act or the Wagner-Peyser Act is transferred to the
States that used the grants to acquire the equity. The portion
of the proceeds from the sale of such real property
attributable to transferred equity is to be used for Wagner-
Peyser or UI activities under Title III of the Social Security
Act.
Section 161
Section 161 amends section 502 of WIA relating to incentive
grants to States. Prior to July 1, 2005, incentive grants shall
be awarded in accordance with existing law. Beginning on July
1, 2005, the Secretary shall award incentive grants to States
that have exceeded their adjusted levels of performance for WIA
Title I, Title II, and Carl D. Perkins Vocational and Technical
Education Act. Incentive grants shall also be awarded to States
on the basis of exemplary performance in serving hard-to-serve
populations; effectively coordinating multiple systems into a
more effective workforce development system; expanding access
to training; implementing innovative business and economic
development activities; and such other performance factors as
the Secretary determines. The bill stipulates that funds
awarded for incentive grants may be used for activities for WIA
youth or adult activities, Title II, and Carl D. Perkins
Vocational and Technical Education Act.
TITLE II--AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT
Section 201. Short Title; Purpose
Title II of S. 1627 may be cited as the Adult Education and
Family Literacy Act Amendments of 2003.
This section amends Section 202 of the Adult Education and
Family Literacy Act (20 U.S.C. 9201) to list the purposes of
this act as follows: (1) assist adults to become literate and
obtain the knowledge and skills necessary for employment and
self-sufficiency; (2) assist adults who are parents to obtain
the educational skills necessary to become full partners in the
educational development of their children; (3) assist adults in
the completion of a secondary school education and in the
transition to postsecondary education; and (4) assist
immigrants and other individuals with limited English
proficiency in improving their reading, writing, speaking, and
mathematics skills and acquiring an understanding of the
American free enterprise system, individual freedom, and the
responsibilities of citizenship.
Section 202. Definitions
Updates and defines the following terms.
Adult Education--S. 1627 adds the word academic to
instruction and education to services to the current law
definition and includes the ability to perform mathematics
skills as an additional indicator of literacy.
Adult Education and Literacy Activities--is amended to
provide a more expansive list of eligible activities, including
programs which include mathematics skills and workplace
literacy activities, along with reading, writing, speaking and
family literacy activities leading to a secondary school
diploma or its state recognized equivalent.
Eligible Providers--must now be an organization of
demonstrated effectiveness; the bill does not change the types
of eligible providers found in current law. The bill adds the
word coalition to the current definition of consortium.
English Literacy Program--the bill strikes literacy program
and inserts language acquisition program to better reflect the
term of art in the field.
Essential Components of Reading Instruction--new
definition: has the meaning given the term in section 1208 of
the Elementary and Secondary Education Act of 1965.
Workplace Literacy Program--replaces the current law
definition with: an educational program designed to improve the
productivity of the workforce through the improvement of
literacy skills that is offered by an eligible provider in
collaboration with an employer or an employee organization at a
workplace, at an off-site location or in a simulated workplace
environment.
Section 203. Authorization of Appropriations
Changes the authorization to a 6-year period and continues
the out years to 2009. This is a 6 year reauthorization so the
appropriations are authorized as such sums until 2009.
Section 204. Home Schools
The section exempts home schools from the requirements of
this Act, and applies regardless of whether a home school is
treated as a home school or a private school under State law.
Section 205. Reservation of Funds; Grants to Eligible Agencies;
Allotments
This section provides for the reservation of funds for the
National Institute for Literacy, and the national leadership
activities authorized in Section 243 of the Adult Education and
Family Literacy Act. It also allows 1.72 percent of funds to be
used for incentive grants and 12 percent of the sums
appropriated to be used for distribution according to Section
244 of the Adult Education and Family Literacy Act (as credited
by S. 1627).
Section 206. Performance Accountability System
This section establishes employment performance indicators,
allows for special accountability measures for workplace
literacy programs, revises the timetable for agreement on
eligible agency adjusted levels of performance, and allows the
use of assessment systems that are not commercially available
standardized systems if certain standards are met. Furthermore,
it revises the content and recipients of the eligible agencies'
required annual report, and establishes a program improvement
plan (to be accompanied by technical assistance from the
Secretary) if eligible agencies do not meet their adjusted
levels of performance for the core indicators of performance.
Section 207. State Administration
Adds monitoring to the list of state required activities.
The eligible agency is still responsible for the development,
submission, and implementation and this bill adds monitoring;
consultation with other appropriate agencies, groups, and
individuals that are involved in, or interested in, the
development and implementation of activities in adult literacy,
and the coordination and non-duplication with other Federal and
State programs.
Section 208. State Distribution of Funds; Matching Requirement
This section updates and amends the requirements governing
State distribution of funds and the matching requirement. It
permits the States to use up to 15 percent of their grants for
State leadership activities, and increases the minimum
administrative set aside to $75,000.
Section 209. State Leadership Activities
This section revises and amends the current set of
activities that can be undertaken by States, all of which now
must be designed to develop or enhance their adult education
systems. S. 1627 adds a new State leadership activity, which
permits States to implement technology related applications,
translation technology, or distance learning, including
professional development to support the use of instructional
technology.
In addition, this section further expands State leadership
activities to include efforts to expand collaboration between
agencies, including postsecondary institutions; coordination
with mental health services activities to promote workplace
literacy programs; creation of scientifically based curricula;
development of assessments; in order to identify the needs and
capture the gains of students, with particular emphasis on
students at the lowest achievement level, students who have
limited English proficiency, and adults with learning
disabilities; and programs to meet the needs of individuals
with disabilities, limited English proficiency, or other
special needs.
This section also eliminates State incentive grant and
bonus programs because S. 1627 provides for a much larger
incentive grant system.
Section 210. State Plan
This section establishes a four-year State plan along with
a review of that plan after the first two years, and revises
the list of entities the eligible agency is required to consult
with concerning the State plan. Furthermore, it revises the
required content of the State plan to include a description of:
how the adult education and literacy needs in each workforce
development area will be addressed; how the eligible agency
will hold eligible providers accountable for performance; how
the eligible agency will improve the quality of teaching and
instruction; an assurance that the eligible agency will award
not less than one grant to an eligible provider that offers
flexible schedules and coordinates with necessary federal,
state, and local support services (such as child care,
transportation, mental health services, and case management);
how the eligible agency shall include various stakeholders in
the process of public participation and comment with respect to
the State plan; how the unemployed and under-employed will be
addressed by strategies in the State plan; how the State plan
will be coordinated with the plan submitted under Title I; how
the State will build the capacity of adult education and
literacy providers and increase the participation of business
and industry; how the eligible agency will consult with any
State agencies responsible for postsecondary education to
develop adult education programs and services (including
academic skill development and support services), that prepare
students to enter postsecondary education; how the eligible
agency will consult with the State agency responsible for
workforce development to develop adult education programs and
services that prepare students to enter the workforce; and how
the eligible agency will improve the professional development
of eligible providers.
Section 211. Programs for Corrections Education and Other
Institutionalized Individuals
Changes the term basic education to adult education and
literacy activities. Changes the heading from Definition of
Criminal Offender to Definitions in this section.
Section 212. Grants and Contracts for Eligible Providers
This section revises and amends the eligibility of
providers to receive grants or contracts to provide adult
education services. It emphasizes the need for the eligible
provider to be responsive to local needs and to serve
individuals identified in the assessment as having the greatest
need for adult education services. It also requires eligible
agencies, in awarding grants or contracts with eligible
providers, to consider whether eligible providers are able to
produce information on performance results, provide services
based on the most rigorous research available, identify whether
or not the provider's applications of technology and services
will improve quality and learning, offer flexible schedules and
coordinate with Federal, State, and local support services
(such as child care, transportation, mental health services,
and case management), and demonstrate that they have the
capacity to serve adult learners with learning disabilities.
Section 213. Local Application
This section maintains requirements that local providers be
able to demonstrate where the funding was used and adds a
requirement that funds be spent consistent with the
requirements of this subtitle.
Section 214. Local Administrative Cost Limits
This section allows local providers to spend their
administrative cost allowance on professional development, and
the development of measurable goals in reading, writing,
speaking, and mathematical computation.
Section 215. Administrative Provisions
This section continues to have 90 percent maintenance of
effort and continues to allow the Secretary to make
proportionate reductions if a State fails to maintain that
effort. The Secretary continues to have the authority to waive
this provision for not more than 1 year.
Section 216. National Institute for Literacy
This section amends and revises the mission of the National
Institute for Literacy. It includes a requirement that the
Institute coordinate and participate in the Federal effort to
identify and disseminate information on literacy that is
derived from the most rigorous research available. In literacy
areas where scientifically-based research is available, that
research should be disseminated.
This section also requires that the Institute work with the
United States Department of Education to provide training and
technical assistance to State that are pursuing the
implementation of standards based educational improvements for
adults, and to identify rigorous research on the effectiveness
of instructional practices related to literacy programs.
Section 217. National Leadership Activities
This section also provides authority for the Secretary to
support the development of entity that would produce and
distribute technology-based programs and materials for adult
education and literacy programs using an interconnection system
(as defined in section 397 of the Communications Act of 1934)
and expands the effective outreach and use of such programs and
materials to adult education eligible providers.
It also creates authority for the Secretary to pursue
activities that would help determine how participation in adult
education and literacy activities prepares individuals for
entry into postsecondary education and employment, and in the
case of prison-based services, has an effect on recidivism.
Section 218. Integrated English Literacy and Civics Education
This section adds a new section to the Adult Education and
Family Literacy Act that would authorize the allocation of
funds under Title II activities to be distributed based in part
on the formula derived from the eligible participants described
in Section 203, and to distribute 12 percent of the total
allocation based on a formula that takes into account the
immigrant population based on data obtained from the United
States Citizenship and Immigration Services.
Section 219. Transition
Adds a new provision that instructs the Secretary to make
the necessary changes to ensure a smooth and orderly transition
from current law to the new Act.
TITLE III--AMENDMENTS TO OTHER PROVISIONS OF LAW
Section 301 amends Section 2(3) of the Wagner-Peyser Act to
employment services offices in each State be collocated with
comprehensive one-stop centers.
Section 301 also amends Section 15 of the Wagner-Peyser Act
relating to labor market information. The Secretary of Labor,
in consultation with the States, is authorized to assist in the
development of national electronic tools to provide services.
The bill requires the Secretary of Labor to prepare a 2-year
plan as the mechanism for achieving cooperative management of
the nationwide workforce and labor market information system.
The bill also requires the Secretary of Labor to consult at
least annually with regional representatives of the State
workforce and labor market information directors. The bill
authorizes appropriation of such sums as may be necessary for
fiscal years 2004 through 2005 to enable the Secretary to carry
out activities in a timely manner through grants or cooperative
agreements with the States, and requires the funds to be
distributed in the same manner as under current law.
TITLE IV--REHABILITATION ACT AMENDMENTS
Section 401. Short Title
Section 401 provides the title of this Act, the
``Rehabilitation Act Amendments of 2003''.
Section 402. Technical Amendments to Table of Contents
Section 402 amends the table of contents of the
Rehabilitation Act to add section 112, Incentive Grants. It
also adds a new section 752 and 753, under Title VII, Training
and Technical Assistance, and renumbers other sections.
Section 403. Purpose
Section 403 adds a new purpose of the act: to provide
opportunities for employers and rehabilitation service
providers to provide meaningful input at all levels of
government to ensure successful employment of individuals with
disabilities.
Section 404. Definitions
In General. Section 404 amends section 7 of the
Rehabilitation Act.
Literacy Services and Skills. References to a person's need
for literacy services and skills is added as part of the
assessment of needs and eligibility for services. Also added is
a definition of literacy-, defined as the meaning of the term
in section 203 of the Adult Education and Family Literacy Act.
Consumer Organizations. A definition of consumer
organization is added to describe a membership organization in
which a majority of the organization's members and a majority
of the organization's officers are individuals with
disabilities.
Core Services. Independent living core services are
expanded to include maintaining individuals with significant
disabilities in, or transitioning individuals with significant
disabilities to, community-based living.
Post-Employment Services. A definition of post-employment
services is added as meaning provided subsequent to the
achievement of an employment outcome, and necessary for an
individual to maintain, regain, or advance in employment,
consistent with the individual's strengths, resources,
priorities, concerns, abilities, capabilities, interests, and
informed choice.
Student With a Disability. A definition of student with a
disability is added as meaning an individual with a disability
who attends an elementary school or secondary school and who is
age 14-21, and has been determined to be eligible for
vocational rehabilitation services (under section 102(a) of the
rehabilitation Act). It also refers to an individual who is
eligible for and receiving special education and related
services under part B of the Individuals with Disabilities
Education Act, or is an individual with a disability under
section 504 of the Rehabilitation Act. It also defines students
with disabilities to be more than one student with a
disability.
Section 405. Administration of the Act
Section 405 amends section 12(a)(1) of the Rehabilitation
Act by adding a provision authorizing the Commissioner of the
Rehabilitation Service Administration to provide technical
assistance to the designated State units on developing
successful partnerships with employers.
Section 406. Carryover
Centers for Independent Living and for Independent Living
Services for the Older Blind. Section 406 amends section 19(a)
of the Rehabilitation Act by eliminating the carry over funds
provision for centers for independent living and for
independent living services for the older blind.
Protection and Advocacy for Individual Rights. Section 406
amends section 19 of the Rehabilitation Act by adding a new
separate provision relating to unobligated funds for protection
and advocacy for individual rights programs similar to the use
of unobligated and unexpended funds for other protection and
advocacy programs. It also specifies that program income
attributed to the protection and advocacy program is to remain
available until expended.
Subtitle A--Vocational Rehabilitation Services
Section 411. Declaration of Policy; Authorization of Appropriations
Section 411 amends section 100(b)(1) of the Rehabilitation
Act authorizing such sums as may be necessary for fiscal years
2004-2009.
Section 412. State Plans
Employment of Qualified Individuals With Disabilities.
Section 412 adds a requirement to section 101(a)(6)(B) of the
Rehabilitation Act that the designated State agencies and the
community rehabilitation programs also recruit individuals with
disabilities.
Comprehensive System of Personnel Development. Section
101(a)(7)(v)(I) is amended by including training implemented in
coordination with State programs carried out under section 101
of the Assistive Technology Act of 1998.
Comparable Services and Benefits. Section 101(a)(8)(A) of
the Rehabilitation Act by stipulating that for purposes of
determining comparable benefits of services for persons who
receive services under the Ticket to Work and Self-Sufficiency
Program, comparable benefits include only those benefits and
services identified in the individual's individualized work
plan developed by an employment network.
Reporting Requirements. Section 101(a)(10) of the
Rehabilitation Act is amended by deleting specific data
elements described in section 136(d)(2) of the Workforce
Investment Act of 1998 and adding annual reporting of
information on eligible individuals receiving services that is
needed to assess performance on the core indicators of
performance described in section 136(b)(2)(A)(I) of the
Workforce Investment Act of 1998. This includes the number of
applicants and eligible recipients, including the number of
individuals with significant disabilities, who exited the
program carried out under this title and the number of such
individuals who achieved employment outcomes after receiving
vocational rehabilitation services and the number of
individuals who received vocational rehabilitation services who
entered and retained employment and the increases in earnings
of such individuals, consistent with State reporting
responsibilities pursuant to section 136(b)(2)(A)(I) of the
Workforce Investment Act of 1998. Additionally, subparagraph
(E)(ii) is amended by striking ``in meeting'' and everything
thereafter and replacing it with ``in meeting the standards and
indicators established pursuant to section 106.''
Cooperation, Collaboration and Coordination. Subparagraph
(C) of Section 101(a)(11) of the Rehabilitation Act is renamed
Interagency Cooperation with other Agencies and includes the
State programs carried out under section 101 of the Assistive
Technology Act of 1998 in the requirement of the State plan to
include descriptions of interagency cooperation with, Federal,
State, and local agencies and programs.
Coordination With Education Officials. Amends Section
101(a)(11)(D)(ii) of the Rehabilitation Act to require that the
State agency and the State education agency also plan for the
development and completion of the individualized plan for
employment under the vocational rehabilitation program, in
order to achieve post-school employment outcomes of students
with disabilities as appropriate.
Coordination With Ticket To Work and Self-Sufficiency
Program. Subparagraph (G) is added to Section 101(a)(11) of the
Rehabilitation Act requiring the designated State agency to
coordinate activities with any other State agency that
administers a Ticket to Work and Self-Sufficiency Program.
Information and Referral Services. Section 101(a)(20) of
the Rehabilitation Act is amended to require the Secretary
agency to provide to individuals entitled to social security or
Supplemental Security Income (SSI) benefits on the basis of a
disability or blindness, information on the availability of
benefits under Medicaid and Medicare, the work incentive
planning and assistance grant program, and protection and
advocacy programs under State grants for work incentives, and
medical assistance under other federally-funded programs.
Additionally, the State agency is required to provide to the
individuals specified in this paragraph who are also eligible
for assistance under the Ticket to Work and Self-Sufficiency
program, specific information on how to contact the program
manager of that program to obtain information on approved
employment networks. Subclause (II) is amended to stipulate
that the referral to a specific point of contact be made ``to
the maximum extent possible.'' Subclause (III) is also amended
to refer to information that will assist the individual to
``advance in'' employment.
Section 413. Eligibility and Individual Plan for Employment
Options for Developing an Individualized Plan for
Employment. Amends section 102(b)(1) of the Rehabilitation Act
to require the designated State unit to provide the individual
with a listing of community resources (including resources from
consumer organizations) that are available to assist in the
development of the individualized plan for employment, to
enable the individual to make informed choices in developing
the individualized plan for employment.
Mandatory Procedures. Section 102(b)(1)(D) of the
Rehabilitation Act is amended to require that the individual
plan for employment include, for individuals entitled to Social
Security or Supplemental Security Income (SSI) benefits on the
basis of disability or blindness, information on the
availability of benefits under Medicaid, Medicare, the work
incentive planning and assistance grants program, and
protection and advocacy programs under State grants for work
incentives, and medical assistance under other federally-funded
programs. Additionally, the State agency is required to provide
to the individuals specified in this paragraph who are also
eligible for assistance under the Ticket to Work and Self-
Sufficiency program specific information on options under that
program, how to contact the program manager of that program on
approved employment networks, the benefits planning and
assistance programs in the area, and the protection and
advocacy programs in the area.
Review and Amendment. A provision is added to section
102(b)(2)(E) of the Rehabilitation Act specifying that the
individualized plan for employment be amended, as necessary, to
include the post-employment services and service providers that
are necessary for the individual to maintain, regain, or
advance in employment, consistent with the individual's
strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice.
Mandatory Components of an Individualized Plan for
Employment. Mentoring is added to the list of vocational
rehabilitation services in section 102(b)(3)(B)(I)(I) of the
Rehabilitation Act. Subparagraph (H) is a new provision
regarding the individualized plan for employment for students
with disabilities. The individualized plan for employment must
include a description of the student's projected post-school
employment outcome and the specific transition services
(including, as appropriate, work experience and mentoring
activities) needed to achieve the student's employment outcome
or projected employment outcome. Additionally, subparagraph (1)
is added to stipulate that for an individual who is receiving
assistance under the Ticket to Work and Self-Sufficiency
Program, the individualized plan for employment must include a
list of services the individual receives from an employment
network other than the vocational rehabilitation agency.
Impact on Provision of Services. A stipulation is added to
section 102(c)(7) of the Rehabilitation Act that the procedures
take into consideration an individual's informed choice.
Section 414. Vocational Rehabilitation Services
Section 414 amends section 103(a)(5) of the Rehabilitation
Act by adding literacy services and mentoring services to the
list of vocational rehabilitation services.
Section 415. State Rehabilitation Council
Composition. Section 105(b)(1)(A)(ix) of the Rehabilitation
Act is amended by clarifying that at least one American Indian
Vocational Rehabilitation Service director be on the Council in
a State in which 1 or more projects provide services under
section 121 of Title I of the Rehabilitation Act.
Chairperson. Section 105(b)(5) of the Rehabilitation Act is
amended by giving the Council the authority to select a
chairperson from among the voting membership of the Council.
Section 416. Evaluation Standards and Performance Indicators
Section 416 amends section 106(b)(2)(B)(I) of the
Rehabilitation Act by requiring that if the State has not
improved its performance to acceptable levels, as determined by
the Commissioner, then the Commissioner must direct the State
to make further revisions to the plan to improve performance.
This may include allocating a higher proportion of the State's
resources for services to individuals with disabilities if the
State's spending on such services is low in comparison to
spending by comparable agencies in other States.
Section 417. State Allotments
Reallotment. Section 417 adds a new provision for
distribution of funds available for reallotment to other States
and defines States eligible for reallotment funds to section
110(b) of the Rehabilitation Act. The formula for distribution
of funds available for reallotment is as follows: such funds
shall be allotted to each State whose allotment is less than
its allotment for the immediately preceding fiscal year
increased by the percentage change in the funds available for
allotment for all States. The amount to be provided to States
eligible for reallotment shall be equal to the difference
between: the amount such State received for the fiscal year,
and the amount the State received for the immediately preceding
fiscal year adjusted by the percent change in the funds
available for allotment for all States. If the amount available
for reallotment is insufficient to provide each eligible State
the amount specified in the bill, the amount related to each
eligible State shall be determined by the Commissioner. If
there are funds remaining after each State eligible receives
the amount specified by the bill, the Commissioner shall
reallot the remaining funds among the States requesting a
reallotment.
Increase in Allotment. Section 417 changes the amount to be
set aside for the American Indian Vocational Rehabilitation
Services program in section 110(c)(2) of the Rehabilitation
Act. Beginning in 2004, if the amount appropriated for services
under Title I of the Rehabilitation Act exceeds the total
appropriations for the preceding fiscal year plus 0.075 percent
of that amount, then the amount to be set aside for American
Indian Vocational Rehabilitation Services is to be (a) the
total amount reserved for the preceding fiscal year 0.1 percent
of the appropriated amount, or (b) 1.5 percent of the
appropriated amount, whichever is less.
Section 418. Client Assistance Program
Grants to States. Section 418 requires the Secretary of the
Department of Education to make grants to public or private
agencies designated by the Governor of each State, pursuant to
section 112(c) of the Rehabilitation Act. It also specifies
that the recipient of funds in America Samoa, Guam, the Virgin
Islands, and the Commonwealth of the Northern Mariana Islands
are to be designated agencies located in these territories.
Grants to Protection and Advocacy Systems for the American
Indian Consortium. Section 418 creates a new subparagraph (E)
in the Rehabilitation Act so that beginning on October 1, 2004,
for any fiscal year for which the amount appropriated exceeds
$13,000,000, the Secretary is required to reserve funds under
section 112 of the Rehabilitation Act for grants to the
protection and advocacy system serving the American Indian
Consortium for client assistance services. The amount to be
reserved by the consortium is $45,000. American Indian
Consortium is defined in the Developmental Disabilities
Assistance and Bill of Rights Act of 2000. Protection and
advocacy system is defined as in Title I of the Developmental
Disabilities Assistance and Bill of Rights Act of 2000.
Reservation of Funds for Training and Technical Assistance.
Section 418 creates a new subparagraph (F) in section 112 of
the Rehabilitation Act requiring that for any fiscal year for
which the amount appropriated for the Client Assistance Program
equals or exceeds $14,000,000, the Secretary is required to
reserve at least 1.8 percent and not more than 2.2 percent for
training and technical assistance for client assistance
programs. These activities are to be coordinated with
protection and advocacy activities under Title V of the
Rehabilitation Act.
Authorization of Appropriations for the Client Assistance
Program. Section 418 amends section 112(g) of the
Rehabilitation Act authorizing such sums as may be necessary
for fiscal years 2004-2009.
Section 419. Incentive Grants
In General. Section 419 amends Part B of Title I of the
Rehabilitation Act by authorizing the Commissioner to make
incentive grants to States that demonstrate a high level of
performance, and a significantly improved level of performance
compared to the previous reporting period(s).
Criteria. No later than 180 days after the date of
enactment of this provision, the Commissioner is required to
establish criteria for making grant awards. The criteria are to
be developed with input from State vocational rehabilitation
agencies and other vocational rehabilitation stakeholders,
including consumers and consumer organizations, and be based
upon the evaluation standards and performance indicators
established under section 106 of the Rehabilitation Act and
other performance related measures that the Commissioner
determines to be appropriate.
Use of Funds. A State that receives incentive grant awards
is required to use funds for approved State plan activities.
Non-Federal Share. There is no Federal share required for
incentive grants.
Authorization of Appropriations. The bill authorizes such
sums as may be necessary for fiscal years 2004-2009.
Section 420. Vocational Rehabilitation Services Grants
Section 420 amends Section 121 of the Rehabilitation Act by
adding a reference that vocational rehabilitation services
provided are required to be consistent with individuals'
strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice, so that they may
prepare for, and engage in, gainful employment. 121(b)(1) is
amended by adding subparagraph (d), which requires that an
applicant must contain certain assurances that all decisions
affecting eligibility for vocational rehabilitation services,
the nature and scope of available services, and the provision
of such services, will be made by a representative of the
tribal vocational rehabilitation program, and that such
decisions will not be delegated to another agency or
individual. Paragraph 3 is amended by requiring that
applications that comply with regulatory requirements are to be
effective for 5 years and must be renewed for additional 5-year
periods if the Commissioner of Rehabilitation Services
Administration determines that the grantee demonstrated
acceptable past performance, and submits a plan to be approved
by the Commissioner that identifies future performance
criteria, goals, and objectives. Paragraph 4 adds a new
provision requiring the Secretary to give priority to paying
the continuation costs of existing projects and authorizing the
Secretary to provide for increases in funding for such projects
as necessary.
Section 421. GAO Studies
Section 421 requires the Comptroller General of the United
States to conduct a study on the interaction of Title I of the
Rehabilitation Act with the Ticket to Work and Self-Sufficiency
Program, including the impact on beneficiaries, community
rehabilitation programs, and State vocational rehabilitation
agencies. In conducting the study, GAO must consult with all
participants in the Ticket to Work and Self-Sufficiency
Program, including the Social Security Administration, the
Rehabilitation Services Administration, ticket holders, State
agencies, community rehabilitation programs (including
employment networks and non-employment networks), protection
and advocacy agencies, MAXIMUS, and organizations representing
the interests of ticket holders. GAO is required to submit a
report on its study to the appropriate committees of Congress,
no later than 18 months after the date of enactment of this
title of the bill. Additionally, section 421 requires the
Comptroller General of the United States to conduct a study on
the relationship between the Title I state allotment formula
and the ability of States to provide vocational rehabilitation
services in accordance with State plan requirements. In
conducting the study GAO must consult with appropriate
entities. GAO is required to submit a report on its study to
the appropriate committees of Congress, no later than 12 months
after the date of enactment of this title of the bill.
Subtitle B--Research and Training
Section 431. Authorization of Appropriations
Authorization of Appropriations for the Client Assistance
Program. Section 418 amends section 201(a) of the
Rehabilitation Act to authorize such sums as may be necessary
for fiscal years 2004-2009.
Section 432. National Institute on Disability and Rehabilitation
Research
Section 432 amends section 202(f)(1) of the Rehabilitation
Act by specifying that scientific peer review shall be
conducted by individuals who are not Department of Education
employees.
Section 433. Research and Covered Activities
Section 433 amends section 204(c)(2) of the Rehabilitation
Act by increasing the amount limitation to $750,000.
Section 434. Rehabilitation Research Advisory Council
Section 434 amends section 205(c) of the Rehabilitation Act
to require the Council to include a representative from the
business community who has experience with the vocational
rehabilitation system and hiring individuals with disabilities.
Subtitle C--Professional Development and Special Projects and
Demonstrations
Section 441. Training
Types of Projects. Section 441 amends section
302(b)(1)(B)(i) of the Rehabilitation Act by adding to the list
of academic training projects rehabilitation for the blind or
orientation and mobility instruction.
Authorization of Appropriations. Section 302(i) of the
Rehabilitation Act is amended to authorize such sums as may be
necessary for fiscal years 2004-2009.
Section 442. Demonstration and Training Programs
Priority for Demonstrations. Section 303(b)5)(A)(i) of the
Rehabilitation Act stipulates that at least two special
projects and demonstration programs for adults who are either
low-functioning and deaf or low-functioning and hard of
hearing.
Demonstration Projects for Employment of Students With
Intellectual Disabilities or Mental Illness. Section 442
includes a new demonstration project for students with
intellectual disabilities or mental illness under section
303(c) of the Rehabilitation Act. Authorizes the Secretary to
make grants to organizations to support demonstration projects
to provide supported and competitive employment experiences for
students with intellectual disabilities or students with mental
illness, and training for personnel that work with these
students to enable them to gain employment skills and
experience that will promote effective transitions from school
to employment and adult living. Requires that each organization
applying for a grant, contract, or cooperative agreement must
submit an application to the Secretary. Specifies that
organizations that receive grants shall develop innovative and
effective supported and competitive employment experiences that
lead to competitive high-paying jobs, and the development and
deployment of experts to work with transition programs
(including personnel working with students on transition) so
that personnel from the programs develop skills needed to train
students in competitive employment in a range of settings,
including office settings. Authorizes $5,000,000 to be
appropriated for fiscal year 2004 and such sums as may be
necessary for fiscal years 2005 through 2008.
Demonstration Project for Employment of Individuals Who Are
Deaf and Low-Functioning. Section 442 includes the following
provision for a new demonstration project for adults who are
low-functioning and deaf in section 303(d) of the
Rehabilitation Act. Defines an ``individual who is deaf and
low-functioning'' as an individual who has been deaf from birth
or very early childhood, reads at or below the second grade
level, has little or no intelligible speech, and lacks a high
school diploma or GED, including an individual with a secondary
disability. Requires that each organization applying for a
grant, contract, or cooperative agreement must submit an
application to the Secretary. Specifies that State agencies,
other public agencies or organizations, or not-for-profit
organizations that receive funds shall develop innovative,
comprehensive program of instruction for deaf and low-
functioning individuals that can be implemented at multiple
training locations through such means as distance learning and
use of advanced technology. Requires each State agency, other
public agencies or organizations, or not-for-profit
organizations that receive funds shall provide annual reports
and a final report to the Commissioner within 2 years after the
grant is awarded. The contents of annual reports must include
the number of individuals who are participating in the
demonstration project, the employment and other skills being
taught in the project, and the number of individuals who have
dropped out of the project and the reasons for their
terminating participation. Contents of the final report must
include the number of individuals who participated in the
training program, a description of the job sites in which
individuals were placed, and a written analysis of the model
project, including both the strengths and weaknesses of the
project, to assist other entities in replicating the training
program developed. Authorizes $5,000,000 to be appropriated for
fiscal year 2004 and such sums as may be necessary for each of
fiscal years 2005 through 2008.
Access to Telework. Section 442 includes the following
provisions under a new Access to Telework program in section
303(g) of the Rehabilitation Act. Defines telework as work from
home and other telework sites with the assistance of a computer
and with reasonable accommodations, including the necessary
equipment to facilitate successful work from home and other
telework sites. Authorizes the Commissioner to make grants to
States and governing bodies of American Indian tribes located
on Federal and State reservations (and consortia of such
governing bodies) to pay for the Federal share of the cost of
establishing a telework program. States that desire to receive
a grant fund must submit an application to the Commissioner.
Requires States that receive grants under the Access to
Telework fund shall establish and expand a telework program
that shall provide loans to individuals with disabilities to
enable them to purchase computers or other equipment. Requires
States that receive grants under the Access to Telework fund to
provide an annual report to the Commissioner. The contents
shall include, among other things, characteristics of each
individual with a disability that requires a loan or other
alternative financing mechanism, employment status at the time
of application, and whether the individual has repaid the loan
or other alternative financing mechanism received under the
program, is in repayment status, is delinquent on repayments,
or has defaulted. The Federal share of the cost of establishing
a telework program is established at 10 percent of the cost.
Section 443. Migrant and Seasonal Farmworkers
Section 443 amends section 304(b) of the Rehabilitation Act
to authorize such sums as may be necessary for fiscal years
2004-2009.
Section 444. Recreational Programs
Recreational Programs. Section 444 amends section
305(a)(1)(B) of the Rehabilitation Act to prohibit funding for
construction of facilities for aquatic rehabilitation therapy.
Authorization of Appropriations for Recreational Programs.
Section 444 amends section 305(b) of the Rehabilitation Act to
authorize such sums as may be necessary for fiscal years 2004-
2009.
Subtitle D--National Council on Disability
Section 451. Authorization of Appropriations
Section 451 amends section 405 of the Rehabilitation Act to
authorize such sums as may be necessary for fiscal years 2004-
2009.
Subtitle E--Rights and Advocacy
Section 461. Architectural and Transportation Barriers Compliance Board
Authorization of Appropriations. Section 461 amends section
502(j) of the Rehabilitation Act to authorize such sums as may
be necessary for fiscal years 2004-2009.
Section 462. Protection and Advocacy of Individual Rights
Protection and Advocacy of Individual Rights. Section 462
amends 509(g) by allowing the eligible system to keep program
income generated from the grant for use until expended.
Authorization of Appropriations. Section 462 amends section
509(l) of the Rehabilitation Act to authorize such sums as may
be necessary for fiscal years 2004-2009.
Subtitle F--Employment Opportunities for Individuals With Disabilities
Section 471. Projects with Industry
Section 471 amends section 612 of the Rehabilitation Act to
authorize such sums as may be necessary for fiscal years 2004-
2009.
Section 472. Services for Individuals With Significant Disabilities
Authorization of Appropriation
Section 472 amends section 628 of the Rehabilitation Act to
authorize such sums as may be necessary for fiscal years 2004-
2009.
Subtitle G--Independent Living Services and Centers for Independent
Living
Section 481. State Plan
Section 481 amends section 704(o) of the Rehabilitation Act
by adding a new provision to the State plan, requiring the plan
to describe how the State will provide independent living
services that promote full access to community life for
individuals with significant disabilities. The services the
State shall provide include, as appropriate, facilitating
transitions from nursing homes and other institutions,
including institutions serving individuals with cognitive
disabilities, to community-based residences, assisting
individuals with significant disabilities at risk of entering
institutions to remain in the community, and promoting home
ownership among individuals with significant disabilities.
Section 482. State Independent Living Council
Composition and Appointment. Section 705(b)(2)(C) of the
Rehabilitation Act is amended by clarifying that at least one
American Indian Vocational Rehabilitation Service director be
on the Council in a State in which 1 or more projects provide
services under section 121 of Title I of the Rehabilitation
Act.
Chairperson. Section 705(b)(5) of the Rehabilitation Act is
amended by giving the Council the authority to select a
chairperson from among the voting membership of the Council.
Section 483. Independent Living Services Appropriations
Section 483 amends section 714 of the Rehabilitation Act to
authorize such sums as may be necessary for fiscal years 2004-
2009.
Section 484. Program Authorization
Section 484 amends section 721(c) of the Rehabilitation Act
current allotment method as follows: Defines additional
appropriation as the amount (if any) by which the appropriation
a fiscal year exceeds the total of (i) the amount reserved for
training and technical assistance for FY2003 and (ii) the
appropriation for fiscal year 2003. Appropriation is defined as
the amount appropriated to carry out section 721 of the
Rehabilitation Act. Base appropriation is defined as the
portion of the appropriation for a fiscal year equal to the
lesser of--the total appropriation minus the amount set aside
for training and technical assistance for that or the
appropriation for FY2003. Funds would be continued to be
reserved for training and technical assistance (same proportion
as current law). Any amount in excess of the FY2003 amount and
the training and technical assistance reservation would be
distributed in the following manner: 50 percent of the excess
would be allocated based on a State's relative share of the
population of all States, and the other 50 percent of the
excess would be allocated as an equal share among each of the
States and territories. A new provision is added that allows
for any amount paid to an agency to operate a center for
independent living, and any amount of program income that
remains unobligated at the end of a FY to be available to the
agency for obligation during the next 2 fiscal years.
Section 485. Grants to Centers for Independent Living in State in Which
Federal Funding Exceeds State Funding
Section 485 amends 722(c) of the Rehabilitation Act by
requiring the Commissioner to award grants to any eligible
agency that has been awarded a grant under this section during
the preceding fiscal year.
Section 486. Grants to Centers for Independent Living in State in Which
State Funding Exceeds Federal Funding
Section 486 amends 723(c) of the Rehabilitation Act by
requiring the Director of a State designated unit to award
grants to any eligible agency that has been awarded a grant
under this section during the preceding fiscal year.
Section 487. Standards and Assurances for Centers for Independent
Living
Section 487 amends 725(b)(8) of the Rehabilitation Act by
adding a provision requiring independent living centers (ILCs)
to provide independent living services that promote full access
to community life for individuals with significant
disabilities. The services that ILCs shall provide include, as
appropriate, facilitating transitions from nursing homes and
other institutions, including institutions serving individuals
with cognitive disabilities, to community-based residences,
assisting individuals with significant disabilities at risk of
entering institutions to remain in the community, and promoting
home ownership among individuals with significant disabilities.
Section 488. Centers for Independent Living Authorization of
Appropriations
Section 488 amends section 727 of the Rehabilitation Act to
authorize such sums as may be necessary for fiscal years 2004-
2009.
Section 489. Independent Living Services for Older Individuals Who Are
Blind
Section 489 amends 752(a) of the Rehabilitation Act by
adding a new provision for training and technical assistance.
The new provision requires the Commissioner to set aside an
amount not less than 1.8 percent and not more than 2 percent,
of the excess appropriation, in any fiscal year in which the
funds appropriated exceed the funds appropriated in FY2003 to
carry out training and other technical assistance programs
under this section. Requires the Commissioner to make grants
to, and enter into contracts and other arrangements with,
entities that demonstrate expertise in the provision of
services to older individuals who are blind and to provide
training and technical assistance with respect to planning,
developing, conducting, administering, and evaluating
independent living programs for older individuals who are
blind. Requires the Commissioner to conduct a survey of
designated State agencies that receive grants under section 753
regarding training and technical assistance needs in order to
determine funding priorities for grants, contracts, and other
arrangements under this section. Requires an eligible entity to
submit an application to the Commissioner containing a proposal
to provide training and technical assistance, and additional
information as the Commissioner may require in order to be
eligible to receive a grant or enter into a contract or other
arrangement under this section. Prohibits funds reserved by the
Commissioner under this section to be combined with funds
appropriated under any other Act or part of this Act if the
purpose of combining funds is to make a single discretionary
grant or a single discretionary payment, unless such funds
appropriated under this chapter are separately identified in
such grant or payment and are used for the purposes of this
chapter.
Section 490. Program of Grants
Certain Expenditures of Grants. Section 490 amends section
489(g) of the Rehabilitation Act by allowing States to expend
funds either through grants or contracts.
Requirements Regarding State Plan. Section 752(h) is
deleted, thereby removing references to the State plan for
independent living in Chapter 1.
Amount of Formula Grant. Section 490 amends section
752(j)(2)(A) of the Rehabilitation Act by increasing the
minimum allotment for a fiscal year for States from $225,000 to
$350,000.
Amount of Formula Grant. Section 490 amends section
752(j)(2)(B) of the Rehabilitation Act by increasing the
minimum allotment for a fiscal year for territories from
$40,000 to $60,000.
Section 491. Independent Living Services for Older Individuals Who Are
Blind Authorization of Appropriations
Section 491 amends section 753 of the Rehabilitation Act to
authorize such sums as may be necessary for fiscal years 2004-
2009.
Subtitle H--Miscellaneous
Section 495. Helen Keller National Center Act
General Authorization of Appropriations. Section 495 amends
section 205(a) of the Helen Keller National Center Act to
authorize such sums as may be necessary for fiscal years 2004-
2009.
Helen Keller National Center Federal Endowment Fund.
Section 495 amends section 208(h) of the Helen Keller National
Center Act to authorize such sums as may be necessary for
fiscal years 2004-2009.
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):
WORKFORCE INVESTMENT ACT OF 1998
* * * * * * *
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Workforce
Investment Act of 1998''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
Sec. 101. Definitions.
Subtitle B--Statewide and Local Workforce Investment Systems
[Sec. 106. Purpose.]
Sec. 106. Purposes.
* * * * * * *
Chapter 3--Workforce Investment Activities Providers
Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
[Sec. 123. Identification of eligible providers of youth activities.]
Sec. 123. Eligible providers of youth activities.
* * * * * * *
Subtitle D--National Programs
Sec. 166. Native American programs.
Sec. 167. Migrant and seasonal farmworker programs.
Sec. 168. Veterans' workforce investment programs.
[Sec. 169. Youth opportunity grants.]
Sec. 169. Youth challenge grants.
Sec. 170. Technical assistance.
Sec. 171. Demonstration, pilot, multiservice, research, and multistate
projects.
Sec. 172. Evaluations.
[Sec. 173. National emergency grants.]
Sec. 173. National dislocated worker grants.
Sec. 174. Authorization of appropriations.
* * * * * * *
Subtitle E--Administration
* * * * * * *
[Sec. 193. Use of certain real property.]
Sec. 193. Transfer of Federal equity in State employment security agency
real property to the States.
Sec. 194. Continuation of State activities and policies.
Sec. 195. General program requirements.
TITLE II--ADULT EDUCATION AND LITERACY
* * * * * * *
Subtitle A--Adult Education and Literacy Programs
* * * * * * *
Chapter 4--General Provisions
Sec. 241. Administrative provisions.
Sec. 242. National Institute for Literacy.
Sec. 243. National leadership activities.
Sec. 244. Integrated English literacy and civics education.
* * * * * * *
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
SEC. 101. DEFINITIONS.
In this title:
(1) Accrued expenditures.--The term ``accrued
expenditures'' means charges incurred by recipients of
funds under this title for a given period requiring the
provision of funds for--
(A) goods or other tangible property
received;
(B) services performed by employees,
contractors, subgrantees, subcontractors, and
other payees; and
(C) other amounts becoming owed under
programs assisted under this title for which no
current services or performance is required,
such as annuities, insurance claims, and other
benefit payments.
[(1)] (2) Adult.--[Except in sections 127 and 132,]
Except in section 132, the term ``adult'' means an
individual who is age 18 or older.
[(2)] (3) Adult education; adult education and
literacy activities.--The terms ``adult education'' and
``adult education and literacy activities'' have the
meanings given the terms in section 203.
[(3)] (4) Area vocational education school.--The term
``area vocational education school'' has the meaning
given the term in section 3 of the Carl D. Perkins
Vocational and Technical Education Act of 1998.
[(4) Basic skills deficient.--The term ``basic skills
deficient'' means, with respect to an individual, that
the individual has English reading, writing, or
computing skills at or below the 8th grade level on a
generally accepted standardized test or a comparable
score on a criterion-referenced test.]
(5) Basic skills deficient.--The term ``basic skills
deficient'' means, with respect to an individual, that
the individual--
(A) has English reading, writing, or
computing skills at or below the 8th grade
level on a generally accepted standardized test
or a comparable score on a criterion-referenced
test; or
(B) is unable to compute or solve problems,
read, write, or speak English at a level
necessary to function on the job, in the
individual's family, or in society.
(6) Business intermediary.--The term ``business
intermediary'' means an entity that brings together
various stakeholders with an expertise in an industry
or business sector.
[(5)] (7) Case management.--The term ``case
management'' means the provision of a client-centered
approach in the delivery of services, designed--
(A) to prepare and coordinate comprehensive
employment plans, such as service strategies,
for participants to ensure access to necessary
workforce investment activities and supportive
services, using, where feasible, computer-based
technologies; and
(B) to provide job and career counseling
during participation and after job placement.
[(6)] (8) Chief elected official.--The term ``chief
elected official'' means--
(A) the chief elected executive officer of a
unit of general local government in a local
area; and
(B) in a case in which a local area includes
more than one unit of general local government,
the individuals designated under the agreement
described in section 117(c)(1)(B).
[(7)] (9) Community-based organization.--The term
``community-based organization'' means a private
nonprofit organization, including a faith-based
organization, that is representative of a community or
a significant segment of a community and that has
demonstrated expertise and effectiveness in the field
of workforce investment.
[(8)] (10) Customized training.--The term
``customized training'' means training--
(A) that is designed to meet the special
requirements of an employer (including a group
of employers);
(B) that is conducted with a commitment by
the employer to employ an individual on
successful completion of the training; and
(C) for which the employer pays [for not less
than 50 percent of the cost of the training.]
for--
(i) a significant portion of the cost
of training as determined by the local
board, taking into account the size of
the employer and such other factors as
the local board determines to be
appropriate; and
(ii) for customized training (as
defined in subparagraphs (A) and (B))
with an employer in multiple local
areas in the State, a significant
portion of the cost of the training, as
determined by the Governor, taking into
account the size of the employer and
such other factors as the Governor
determines to be appropriate.
[(9)] (11) Dislocated worker.--The term ``dislocated
worker'' means an individual who--
(A)(i) has been terminated or laid off, or
who has received a notice of termination or
layoff, from employment;
(ii)(I) is eligible for or has exhausted
entitlement to unemployment compensation; or
(II) has been employed for a duration
sufficient to demonstrate, to the appropriate
entity at a one-stop center referred to in
[section 134(c)] section 121(e), attachment to
the workforce, but is not eligible for
unemployment compensation due to insufficient
earnings or having performed services for an
employer that were not covered under a State
unemployment compensation law; and
(iii) is unlikely to return to a previous
industry or occupation;
(B)(i) * * *
(ii) * * *
(iii) * * *
(C) was self-employed (including employment
as a farmer, a rancher, or a fisherman) but is
unemployed as a result of general economic
conditions in the community in which the
individual resides or because of natural
disasters; [or]
(D) is a displaced homemaker[.]; or
(E)(i) is the spouse of a member of the Armed
Forces on active duty for a period of more than
30 days (as defined in section 101(d)(2) of
title 10, United States Code) who has
experienced a loss of employment as a direct
result of relocation to accommodate a permanent
change in duty station of such member; or
(ii) is the spouse of a member of the Armed
Forces on active duty who meets the criteria
described in paragraph (12)(B).
[(10)] (12) Displaced homemaker.--The term
``displaced homemaker'' means an individual who has
been providing unpaid services to family members in the
home and who--
[(A)] (A)(i) has been dependent on the income
of another family member but is no longer
supported by that income; [and] or
(ii) is the dependent spouse of a member of
the Armed Forces on active duty for a period of
more than 30 days (as defined in section
101(d)(2) of title 10, United States Code)
whose family income is significantly reduced
because of a deployment (as defined in section
991(b) of title 10, United States Code, or
pursuant to paragraph (4) of such section), a
call or order to active duty pursuant to a
provision of law referred to in section
101(a)(13)(B) of title 10, United States Code,
a permanent change of station, or the service-
connected (as defined in section 101(16) of
title 38, United States Code) death or
disability of the member; and
(B) is unemployed or underemployed and is
experiencing difficulty in obtaining or
upgrading employment.
[(11)] (13) Economic development agencies.--The term
``economic development agencies'' includes local
planning and zoning commissions or boards, community
development agencies, and other local agencies and
institutions responsible for regulating, promoting, or
assisting in local economic development.
[(12)] (14) Eligible provider.--The term ``eligible
provider'', used with respect to--
(A) training services, means a provider who
is identified in accordance with [section
122(e)(3)] section 122;
(B) * * *
(C) * * *
(D) * * *
[(13)] (15) Eligible youth.--Except as provided in
subtitles C and D, the term ``eligible youth'' means an
individual who--
(A) * * *
(B) * * *
(C) * * *
[(14)] (16) Employment and training activity.--The
term ``employment and training activity'' means an
activity described in section 134 that is carried out
for an adult or dislocated worker.
[(15)] (17) Family.--The term ``family'' means two or
more persons related by blood, marriage, or decree of
court, who are living in a single residence, and are
included in one or more of the following categories:
(A) A husband, wife, and dependent children.
(B) A parent or guardian and dependent
children.
(C) A husband and wife.
[(16)] (18) Governor.--The term ``Governor'' means
the chief executive of a State.
(19) Hard-to-serve populations.--The term ``hard-to-
serve populations'' means populations of individuals
who are hard to serve, including displaced homemakers,
low-income individuals, Native Americans, individuals
with disabilities, older individuals, ex-offenders,
homeless individuals, individuals with limited English
proficiency, individuals who do not meet the definition
of literacy in section 203, individuals facing
substantial cultural barriers, migrant and seasonal
farmworkers, individuals within 2 years of exhausting
lifetime eligibility under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.), and such
other groups as the Governor determines to be hard to
serve.
[(17)] (20) Individual with a disability.--
(A) * * *
(B) * * *
(21) Integrated training program.--The term
``integrated training program'' means a program that
combines occupational skills training with English
language acquisition.
(22) Institution of higher education.--The term
institution of higher education has the meaning given
the term in section 101(a), and subparagraphs (A) and
(B) of section 102(a)(1), of the Higher Education Act
of 1965 (20 U.S.C. 1001(a), 1002(a)(1)).
[(18)] (23) Labor market area.--The term ``labor
market area'' means an economically integrated
geographic area within which individuals can reside and
find employment within reasonable distance or can
readily change employment without changing their place
of residence. Such an area shall be identified in
accordance with criteria used by the Bureau of Labor
Statistics of the Department of Labor in defining such
areas or similar criteria established by a Governor.
[(19)] (24) Literacy.--The term ``literacy'' has the
meaning given the term in section 203.
[(20)] (25) Local area.--The term ``local area''
means a local workforce investment area designated
under section 116.
[(21)] (26) Local board.--The term ``local board''
means a local workforce investment board established
under section 117.
[(22)] (27) Local performance measure.--The term
``local performance measure'' means a performance
measure established under section 136(c).
[(23)] (28) Local educational agency.--The term
``local educational agency'' has the meaning given the
term in section 9101 of the Elementary and Secondary
Education Act of 1965.
[(24)] (29) Lower living standard income level.--The
term ``lower living standard income level'' means that
income level (adjusted for regional, metropolitan,
urban, and rural differences and family size)
determined annually by the Secretary based on the most
recent lower living family budget issued by the
Secretary.
[(25)] (30) Low-income individual.--The term ``low-
income individual'' means an individual who--
(A) * * *
(B) * * *
(C) * * *
(D) receives or is eligible to receive a free
or reduced price lunch under the Richard B.
Russell National School Lunch Act (42 U.S.C.
1751 et seq.);
[(D)] (E) qualifies as a homeless individual,
as defined in subsections (a) and (c) of
section 103 of the Stewart B. McKinney
Homelessness Assistance Act (42 U.S.C. 11302);
[(E)] (F) is a foster child on behalf of whom
State or local government payments are made; or
[(F)] (G) in cases permitted by regulations
promulgated by the Secretary of Labor, is an
individual with a disability whose own income
meets the requirements of a program described
in subparagraph (A) or of subparagraph (B), but
who is a member of a family whose income does
not meet such requirements.
[(26)] (31) Nontraditional employment.--The term
``nontraditional employment'' refers to occupations or
fields of work for which individuals from one gender
comprise less than 25 percent of the individuals
employed in each such occupation or field of work.
[(27)] (32) Offender.--The term ``offender'' means
any adult or juvenile--
(A) who is or has been subject to any stage
of the criminal justice process, for whom
services under this Act may be beneficial; or
(B) who requires assistance in overcoming
artificial barriers to employment resulting
from a record of arrest or conviction.
[(28)] (33) Older individual.--The term ``older
individual'' means an individual age 55 or older.
[(29)] (34) One-stop operator.--The term ``one-stop
operator'' means 1 or more entities designated or
certified under section 121(d).
[(30)] (35) One-stop partner.--The term ``one-stop
partner'' means--
(A) an entity described in section 121(b)(1),
subject to section 121(b)(1)(C); and
(B) an entity described in section 121(b)(2)
that is participating, with the approval of the
local board and chief elected official, in the
operation of a one stop delivery system.
[(31)] (36) On-the-job-training.--The term ``on-the-
job training'' by an employer that is provided to a
paid participant while engaged in productive work in a
job that--
(A) * * *
(B) * * *
(C) * * *
[(32)] (37) Outlying area.--The term ``outlying
area'' means the United States Virgin Islands, Guam,
American Samoa, the Commonwealth of the Northern
Mariana Islands, the Republic of the Marshall Islands,
the Federated States of Micronesia, and the Republic of
Palau.
[(33) Out-of-school youth.--The term ``out-of-school
youth'' means--
[(A) an eligible youth who is a school
dropout; or
[(B) an eligible youth who has received a
secondary school diploma or its equivalent but
is basic skills deficient, unemployed, or
underemployed.]
(38) Out-of-school youth.--The term ``out-of-school
youth'' means an out-of-school youth as defined in
section 129(a)(1)(B).
[(34)] (39) Participant.--The term ``participant''
means an individual who has been determined to be
eligible to participate in and who is receiving
services (except followup services authorized under
this title) under a program authorized by this title.
Participation shall be deemed to commence on the first
day, following determination of eligibility, on which
the individual began receiving subsidized employment,
training, or other services provided under this title.
[(35)] (40) Postsecondary educational institution.--
The term ``postsecondary educational institution''
means an institution of higher education, as defined in
section 102 of the Higher Education Act of 1965.
[(36)] (41) Poverty line.--The term ``poverty line''
means the poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902)) applicable
to a family of the size involved.
[(37)] (42) Public assistance.--The term ``public
assistance'' means Federal, State, or local government
cash payments for which eligibility is determined by a
needs or income test.
[(38)] (43) Rapid response activity.--* * *
* * * * * * *
[(39)] (44) School dropout.--The term ``school
dropout'' means an individual who is no longer
attending any school and who has not received a
secondary school diploma or its recognized equivalent.
[(40)] (45) Secondary school.--The term ``secondary
school'' has the meaning given the term in section 9101
of the Elementary and Secondary Education Act of 1965.
[(41)] (46) Secretary.--The term ``Secretary'' means
the Secretary of Labor[, and the term means such
Secretary for purposes of section 503].
(47) Self-sufficiency.--The term ``self-sufficiency''
means self-sufficiency within the meaning of
subsections (a)(3)(A)(x) and (e)(1)(A)(xii) of section
134.
[(42)] (48) State.--The term ``State'' means each of
the several States of the United States, the District
of Columbia, and the Commonwealth of Puerto Rico.
[(43)] (49) State adjusted level of performance.--The
term ``State adjusted level of performance'' means a
level described in [clause (iii) or (v) of section
136(b)(3)(A)] section 136(b)(3)(A)(iii).
[(44)] (50) State board.--The term ``State board''
means a State workforce investment board established
under section 111.
[(45)] (51) State performance measure.--The term
``State performance measure'' means a performance
measure established under section 136(b).
[(46)] (52) Supportive services.--The term
``supportive services'' means services such as
transportation, child care, dependent care, housing,
and needs-related payments, that are necessary to
enable an individual to participate in activities
authorized under this title, consistent with the
provisions of this title.
[(47)] (53) Unemployed individual.--The term
``unemployed individual'' means an individual who is
without a job and who wants and is available for work.
The determination of whether an individual is without a
job shall be made in accordance with the criteria used
by the Bureau of Labor Statistics of the Department of
Labor in defining individuals as unemployed.
[(48)] (54) Unit of general local government.--The
term ``unit of general government'' means any general
purpose political subdivision of a State that has the
power to levy taxes and spend funds, as well as general
corporate and police powers.
[(49)] (55) Veteran; related definition.--
(A) Veteran.--The term ``veteran'' means an
individual who served in the active military,
naval, or air service, and who was discharged
or released from such service under conditions
other than dishonorable.
(B) Recently separated veteran.--The term
``recently separated veteran'' means any
veteran who applies for participation under
this title within 48 months after the discharge
or release from active military, naval, or air
service.
[(50)] (56) Vocational education.--The term
``vocational education'' has the meaning given the term
in section 521 of the Carl D. Perkins Vocational and
Applied Technology Education Act (20 U.S.C. 2471).
[(51)] (57) Workforce investment activity.--The term
``workforce investment activity'' means an employment
and training activity and a youth activity.
[(52)] (58) Youth activity.--The term ``youth
activity'' means an activity described in section 129
that is carried out for eligible youth [(or as
described in section 129(c)(5)] (or as described in
section 129(a)(2)).
[(53)] (59) Youth council.--The term ``youth
council'' means a council [established under section
117(h)] that may be established under section
117(h)(2).
* * * * * * *
Subtitle B--Statewide and Local Workforce Investment Systems
[SEC. 106. PURPOSE.
[The purpose of this subtitle is to provide workforce
investment activities, through statewide and local workforce
investment systems, that increase the employment, retention,
and earnings of participants, and increase occupational skill
attainment by participants, and, as a result, improve the
quality of the workforce, reduce welfare dependency, and
enhance the productivity and competitiveness, of the Nation.]
SEC. 106. PURPOSES.
The purposes of this subtitle are the following:
(1)(A) Primarily, to provide workforce investment
activities, through statewide and local workforce
investment systems, that increase the employment,
retention, self-sufficiency, and earnings of
participants, and increase occupational skill
attainment by participants.
(B) As a result of the provision of the activities,
to improve the quality of the workforce, reduce welfare
dependency, increase self-sufficiency, and enhance the
productivity and competitiveness of the Nation.
(2) To enhance the workforce investment system of the
Nation by strengthening one-stop centers, providing for
more effective governance arrangements, promoting
access to a more comprehensive array of employment and
training and related services, establishing a targeted
approach to serving youth, improving performance
accountability, and promoting State and local
flexibility.
(3) To provide workforce investment activities in a
manner that promotes the informed choice of
participants and actively involves participants in
decisions affecting their participation in such
activities.
(4) To provide workforce investment systems that are
demand-driven and responsive to the needs of all
employers, including small employers.
(5) To provide workforce investment systems that work
in all areas of the Nation, including urban and rural
areas.
(6) To allow flexibility to meet State, local,
regional, and individual workforce investment needs.
(7) To recognize and reinforce the vital link between
economic development and workforce investment
activities.
(8) To provide for accurate data collection,
reporting, and performance measures that are not unduly
burdensome.
(9) To address the ongoing shortage of essential
skills in the United States workforce related to both
manufacturing and knowledge-based economies to ensure
that the United States remains competitive in the
global economy.
(10) To equip workers with higher skills and
contribute to lifelong education.
(11) To eliminate training disincentives for hard-to-
serve populations and minority workers, including
effectively utilizing community programs, services, and
agencies.
(12) To educate limited English proficient
individuals about skills and language so the
individuals are employable.
(13) To increase the employment, retention and
earnings of individuals with disabilities.
* * * * * * *
CHAPTER 1--STATE PROVISIONS
SEC. 111. STATE WORKFORCE INVESTMENT BOARDS.
(a) In General.--The Governor of a State shall establish a
State workforce investment board to assist in the development
of the State plan described in section 112 and to carry out the
other functions described in subsection (d).
(b) Membership.--
(1) In general.--The State Board shall include--
(A) the Governor;
(B) 2 members of each chamber of the State
legislature, appointed by the appropriate
presiding officers of each such chamber; and
[(C) representatives appointed by the
Governor, who are--
[(i) representatives of business in
the State, who--
[(I) are owners of businesses,
chief executives or operating
officers of businesses, and
other business executives or
employers with optimum policy-
making or hiring authority,
including members of local
boards described in section
117(b)(2)(A)(i);
[(II) represent businesses
with employment opportunities
that reflect the employment
opportunities of the State; and
[(III) are appointed from
among individuals nominated by
State business organizations
and business trade
associations;
[(ii) chief elected officials
(representing both cities and counties,
where appropriate);
[(iii) representatives of labor
organizations, who have been nominated
by State labor federations;
[(iv) representatives of individuals
and organizations that have experience
with respect to youth activities;
[(v) representatives of individuals
and organizations that have experience
and expertise in the delivery of
workforce investment activities,
including chief executive officers of
community colleges and community-based
organizations within the State;
[(vi)(I) the lead State agency
officials with responsibility for the
programs and activities that are
described in section 121(b) and carried
out by one-stop partners; and
[(II) in any case in which no lead
State agency official has
responsibility for such a program,
service, or activity, a representative
in the State with expertise relating to
such program, service, or activity; and
[(vii) such other representatives and
State agency officials as the Governor
may designate, such as the State agency
officials responsible for economic
development and juvenile justice
programs in the State.]
(C) representatives appointed by the
Governor, who--
(i) are the lead State agency
officials with responsibility for the
programs and activities that are
described in section 121(b) and carried
out by one-stop partners, except that--
(I) in any case in which no
lead State agency official has
responsibility for such a
program or activity, the
representative shall be a
representative in the State
with expertise relating to such
program or activity; and
(II) in the case of the
programs authorized under title
I of the Rehabilitation Act of
1973, the representative shall
be the director of the
designated State unit, as
defined in section 7 of the
Rehabilitation Act of 1973 (29
U.S.C. 705);
(ii) are the State agency officials
responsible for economic development;
(iii) are representatives of business
in the State, including small
businesses, who--
(I) are owners of businesses,
chief executive or operating
officers of businesses, or
other business executives or
employers with optimum
policymaking or hiring
authority;
(II) represent businesses
with employment opportunities
that reflect employment
opportunities in the State; and
(III) are appointed from
among individuals nominated by
State business organizations,
business trade associations,
and local boards;
(iv) are chief elected officials
(representing cities and counties,
where appropriate);
(v) are representatives of labor
organizations, who have been nominated
by State labor federations; and
(vi) are such other State agency
officials and other representatives as
the Governor may designate.
(2) Authority and regional representation of board
members.--Members of the board that represent
organizations, agencies, or other entities shall be
individuals with optimum policymaking authority within
the organizations, agencies, or entities. The members
of the board shall represent diverse regions of the
State, including urban, rural, and suburban areas.
(3) Majority.--A majority of the members of the State
Board shall be representatives described in [paragraph
(1)(C)(i)] paragraph (1)(C)(iii).
(c) Chairperson.--The Governor shall select a chairperson
for the State Board from among the representatives described in
[subsection (b)(1)(C)(i)] subsection (b)(1)(C)(iii).
(d) Functions.--The State Board shall assist the Governor
in--
(1) [development] development, implementation, and
revision of the State plan;
(2) development and continuous improvement of a
statewide system of activities that are funded under
this subtitle or carried out through a one-stop
delivery system described in [section 134(c)] section
121(e) that receives funds under this subtitle
(referred to in this title as a ``statewide workforce
investment system''), including--
(A) development of linkages in order to
assure coordination and nonduplication among
the programs and activities described in
section 121(b); and
(B) review of local plans;
[(3) commenting at least once annually on the
measures taken pursuant to section 113(b)(14) of the
Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2323(b)(14));]
(3) reviewing and providing comment on the State
plans of all one-stop partner programs, where
applicable, in order to provide effective strategic
leadership in the development of a high quality,
comprehensive statewide workforce investment system,
including commenting at least once annually on the
measures taken pursuant to section 113(b)(3) of the
Carl D. Perkins Vocational and Technical Education Act
of 1998 (20 U.S.C. 2323(b)(3)) and title 11 of this
Act;
(4) development and review of statewide policies
affecting the coordinated provision of services through
the one-stop delivery systems described in section
121(e) within the State, including--
(A) the development of objective criteria and
procedures for use by local boards in assessing
the effectiveness and continuous improvement of
one-stop centers under section 121(g);
(B) the development of guidance for the
allocation of one-stop center infrastructure
funds under section 121(h)(1)(B);
(C) the development of--
(i) statewide policies relating to
the appropriate roles and contributions
of one-stop partner programs within the
one-stop delivery system, including
approaches to facilitating equitable
and efficient cost allocation in the
one-stop delivery system;
(ii) statewide strategies for
providing effective outreach to
individuals, including hard-to-serve
populations, and employers who could
benefit from services provided through
the one-stop delivery system; and
(iii) strategies for technology
improvements to facilitate access to
services provided through the one-stop
delivery system, in remote areas, and
for individuals with disabilities,
which may be utilized throughout the
State;
(D) identification and dissemination of
information on best practices for effective
operation of one-stop centers, including use of
innovative business outreach, partnerships, and
service delivery strategies, including for
hard-to-serve populations; and
(E) conduct of such other matters as may
promote statewide objectives for, and enhance
the performance of, the one-stop delivery
systems;
[(4)] (5) designation of local areas as required in
section 116 and the development of statewide criteria
to be used by chief elected officials for the
appointment of local boards consistent with section
117;
[(5)] (6) development of allocation formulas for the
distribution of funds for adult employment and training
activities and youth activities to local areas as
permitted under [sections 128(b)(3)(B) and
133(b)(3)(B)] sections 128(b)(3) and 133(b)(3)(B);
[(6)] (7) development and continuous improvement of
comprehensive State performance measures, including
State adjusted levels of performance, to assess the
effectiveness of the workforce investment activities in
the State as required under section 136(b);
[(7)] (8) preparation of the annual report to the
Secretary described in section 136(d);
[(8)] (9) development of the statewide employment
statistics system described in section 15(e) of the
Wagner-Peyser Act; [and]
[(9)] (10) development of an application for an
incentive grant under [section 503.] section 136(i)(1);
and
(11) increasing the availability of skills training,
employment opportunities, and career advancement, for
hard-to-serve populations.
(e) Alternative Entity.--
(1) In general.--[For] Subject to paragraph (3), for
purposes of complying with subsections (a), (b), and
(c), a State may use any State entity (including a
State council, State workforce development board,
combination of regional workforce development boards,
or similar entity) that--
(A) * * *
* * * * * * *
(2) References.--References in this Act to a State
board shall be considered to include such an entity.
* * * * * * *
[(10) information identifying how the State will use
funds the State receives under this subtitle to
leverage other Federal, State, local, and private
resources, in order to maximize the effectiveness of
such resources, and to expand the participation of
business, employees, and individuals in the statewide
workforce investment system;]
(10) a description of how the State will use funds
the State received under this subtitle to leverage
other Federal, State, local, and private resources, in
order to maximize the effectiveness of such resources,
expand resources for the provision of education and
training services, and expand the participation of
businesses, employees, and individuals in the statewide
workforce investment system, including a description of
incentives and technical assistance the State will
provide to local areas for such purposes;
* * * * * * *
(12)(A) a description of the methods and factors the
State will use in distributing funds to local areas for
youth activities and adult employment and training
activities under [sections 128(b)(3)(B) and
133(b)(3)(B)] sections 128(b)(3) and 133(b)(3)(B),
including--
* * * * * * *
(8)(A) a description of the procedures that will be
taken by the State to assure coordination of and avoid
duplication among--
(i) workforce investment activities
authorized under this title;
* * * * * * *
(ix) employment and training activities
carried out by the Department of Housing and
Urban Development; [and]
(x) programs authorized under State
unemployment compensation laws (in accordance
with applicable Federal law); and
(xi) programs authorized under title II of
the Social Security Act (42 U.S.C. 401 et seq.)
(relating to Federal old-age, survivors, and
disability insurance benefits), title XVI of
such Act (42 U.S.C. 1381 et seq.) (relating to
supplemental security income), title XIX of
such Act (42 U.S.C. 1396 et seq.) (relating to
medicaid), and title XX of such Act (relating
to block grants to States for social services),
programs authorized under title VII of the
Rehabilitation Act of 1973 (29 U.S.C. 796 et
seq.), and programs carried out by State
agencies relating to mental retardation and
developmental disabilities; and
* * * * * * *
SEC. 112. STATE PLAN.
(a) In General.--For a State to be eligible to receive an
allotment under section 127 or 132, or to receive financial
assistance under the Wagner-Peyser Act (29 U.S.C. 49 et seq.),
the Governor of the State shall submit to the Secretary for
consideration by the Secretary, a single State plan (referred
to in this title as the ``State plan'') that outlines a [5-year
strategy] 4-year strategy for the statewide workforce
investment system of the State and that meets the requirements
of section 111 and this section.
At the end of the first 2-year period of the 4-year State
plan, the State board shall review and, as needed, amend the 4-
year State plan to reflect labor market and economic
conditions. In addition, the State shall submit a modification
to the State plan at the end of the first 2-year period of the
State plan, which may include redesignation of local areas
pursuant to section 116(a) and specification of the levels of
performance under sections 136 for the third and fourth years
of the plan.
(b) Contents.--The State plan shall include--
(1) a description of the State board, including a
description of the manner in which such board
collaborated in the development of the State plan and a
description of how the board will continue to
collaborate in carrying out the functions described in
section 111(d);
* * * * * * *
(3) Failure to meet performance measures.--If a State
fails to have performed successfully, as defined in
section 116(a)(2), the Secretary may require the State
to establish a State board in accordance with
subsections (a), (b), and (c) in lieu of the
alternative entity established under paragraph (1).
* * * * * * *
(f) Conflict of Interest.--A member of a State board may
not--
(1) vote on a matter under consideration by the State
board--
(A) regarding the provision of services by
such member (or by an entity that such member
represents); or
(B) that would provide direct financial
benefit to such member or the immediate family
of such member; or
(2) engage in any other activity determined by the
Governor to constitute a conflict of interest as
specified in the State plan.
(g) Sunshine Provision.--The State board shall make
available to the public, on a regular basis through open
meetings, information regarding the activities of the State
board, including information regarding the State plan, and
modifications to the State plan, prior to submission of the
plan, and modifications to the State plan, information
regarding membership, and, on request, minutes of formal
meetings of the State board.
(h) Authority To Hire Staff.--The State board may hire
staff to assist in carrying out the functions described in
subsection (d) using funds allocated under sections
127(b)(1)(C) and 132(b).
* * * * * * *
(14) with respect to the one-stop delivery systems
described, in [section 134(c)] section 121(e) (referred
to individually in this title as a ``one-shop delivery
system''), a description of the strategy of the State
for assisting local areas in development and
implementation of fully operational one-stop delivery
systems in the State;
(15) a description of the appeals process referred to
in section 116(a)(5);
(16) a description of the competitive process to be
used by the State to award grants and contracts in the
State for activities carried out under this title;
(17) with respect to the employment and training
activities authorized in section 134--
(A) a description of--
(i) the employment and training
activities that will be carried out
with the funds received by the State
through the allotment made under
section 132;
(ii) how the State will provide rapid
response activities to dislocated
workers from funds reserved under
section 133(a)(2) for such purposes,
including the designation of an
identifiable State rapid response
dislocated worker unit to carry out
statewide rapid response activities;
(iii) the procedures the local boards
in the State will use to identify
eligible providers of training services
described in section 134(d)(4) (other
than on-the-job training or local
customized training), as required under
section 122; [and]
(iv) how the State will serve the
employment and training needs of
dislocated workers [(including
displaced homemakers), low-income
individuals (including recipients of
public assistance), individuals
training for nontraditional employment,
and other individuals with multiple
barriers to employment (including older
individuals and individuals with
disabilities], hard-to-serve
populations and individuals training
for nontraditional employment; and
(v) how the State will serve the
employment and training needs of
individuals with disabilities,
consistent with section 188 and
Executive Order 13217 (42 U.S.C. 12131
note; relating to community-based
alternatives for individuals with
disabilities), including the provision
of outreach, intake, the conduct of
assessments, service delivery, the
development of adjustments to
performance measures established under
section 136, and the training of staff;
and
(B) an assurance that veterans will be
afforded the employment and training activities
by the State, to the extent practicable; [and]
(18) with respect to youth activities authorized in
section 129, information--
(A) describing the State strategy for
providing comprehensive services to eligible
youth, particularly those eligible youth who
are recognized as having significant barriers
to employment;
* * * * * * *
(D) describing how the State will coordinate
youth activities described in subparagraph (C)
with activities carried out through [youth
opportunity grants] youth challenge grants
authorized under section 169 and other
federally funded youth programs under section
169[.];
(19) a description of how the State will utilize
technology to facilitate access to services in remote
areas, which may be utilized throughout the State;
(20) a description of the State strategy for
coordinating workforce investment activities and
economic development activities;
(21) a description of the State strategy and
assistance to be provided for ensuring regional
cooperation within the State and across State borders
as appropriate;
(22) a description of how the State will use funds
the State receives under this subtitle to--
(A) implement innovative programs and
strategies designed to meet the needs of all
businesses in the State, including small
businesses, which may include incumbent worker
training programs, sectoral and industry
cluster strategies, regional skills alliances,
career ladder programs, utilization of
effective business intermediaries, and other
business services and strategies that better
engage employers in workforce investment
activities and make the statewide workforce
investment system more relevant to the needs of
State and local businesses, consistent with the
objectives of this title; and
(B) provide incentives and technical
assistance to assist local areas in more fully
engaging all employers, including small
employers, in local workforce investment
activities, to make the workforce investment
system more relevant to the needs of area
businesses, and to better coordinate workforce
investment and economic development efforts to
contribute to the economic well-being of the
local area, as determined appropriate by the
local board;
(23) a description of the State strategy--
(A) for ensuring cooperation between
transportation providers, including public
transportation providers, and providers of
workforce investment activities; and
(B) for ensuring coordination among
appropriate State agencies and programs to make
available skills training, employment services
and opportunities, and career advancement
activities, that will assist ex-offenders in
reentering the workforce;
(24) a description of how the State will assist local
areas in assuring physical and programmatic
accessibility for individuals with disabilities at one-
stop centers;
(25) a description of the process and methodology
that will be used by the State board to--
(A) review statewide policies and provide
guidance on the coordinated provision of
services through the one-stop delivery system
described in section 121;
(B) establish, in consultation with chief
elected officials and local boards, objective
criteria and procedures for use by local boards
in periodically assessing the effectiveness,
physical and programmatic accessibility, and
continuous improvement of one-stop centers and
one-stop delivery systems as described in
section 121(g); and
(C) determine--
(i) one-stop partner program
contributions for the costs of the
infrastructure of one-stop centers
under section 121(h)(2); and
(ii) the formula for allocating the
funds described in section 121(h)(2) to
local areas;
(26) a description of the State strategy for ensuring
that activities carried out under this title are
placing men and women in jobs, education, or training
that lead to comparable pay; and
(27) a description of the technical assistance
available to one-stop operators and providers of
training services for strategies to serve hard-to-serve
populations and promote placement in nontraditional
employment.
(c) Plan Submission and Approval.--* * *
* * * * * * *
(d) Modifications to Plan.--A State may submit
modifications to a State plan in accordance with the
requirements of this section and section 111 as necessary
during the [5-year period] 4-year period covered by the plan.
In addition, the State shall submit the modifications to
the State plan required under subsection (a), under
circumstances prescribed by the Secretary that are due to
changes in Federal law that significantly affect elements of
the State plan.
* * * * * * *
CHAPTER 2--LOCAL PROVISIONS
SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.
(a) Designation of Areas.--
(1) In general.--
(A) Process.--Except as provided in
subsection (b), and consistent with paragraphs
(2), (3), and (4), in order for a State to
receive an allotment under section 127 or 132,
the Governor of the State shall designate local
workforce investment areas within the State--
(i) through consultation with the
State board; and
(ii) after consultation with chief
elected officials and after
consideration of comments received
through the public comment process as
described in section 112(b)(9).
(B) Considerations.--In making the
designation of local areas, the Governor shall
take into consideration the following:
(i) Geographic areas served by local
educational agencies and intermediate
educational agencies.
(ii) Geographic areas served by
postsecondary educational institutions
and area vocational education schools.
(iii) The extent to which such local
areas are consistent with labor market
areas.
(iv) The distance that individuals
will need to travel to receive services
provided in such local areas.
(v) The resources of such local areas
that are available to effectively
administer the activities carried out
under this subtitle.
(vi) The extent to which such local
areas will promote maximum
effectiveness in the administration and
provision of services.
[(2) Automatic designation.--The Governor shall
approve any request for designation as a local area--
[(A) from any unit of general local
government with a population of 500,000 or
more;
[(B) of the area served by a rural
concentrated employment program grant recipient
of demonstrated effectiveness that served as a
service delivery area or substate area under
the Job Training Partnership Act, if the grant
recipient has submitted the request; and
[(C) of an area that served as a service
delivery area under section 101(a)(4)(A)(ii) of
the Job Training Partnership Act (as in effect
on the day before the date of enactment of this
Act) in a State that has a population of not
more than 1,100,000 and a population density
greater than 900 persons per square mile.]
(2) Automatic designation.--
(A) In general.--The Governor shall approve a
request for designation as a local area that is
submitted prior to the submission of the State
plan, or of a modification to the State plan
relating to area designation, from any area
that--
(i) is a unit of general local
government with a population of 500,000
or more, except that after the initial
2-year period following such
designation pursuant to this clause
that occurs after the date of enactment
of the Workforce Investment Act
Amendments of 2003, the Governor shall
only be required to approve a request
for designation from such area if such
area--
(I) performed successfully;
and
(II) sustained fiscal
integrity;
(ii) was a local area under this
title for the preceding 2-year period,
if such local area--
(I) performed successfully;
and
(II) sustained fiscal
integrity;
(iii) is served by a rural
concentrated employment program grant
recipient, except that after the
initial 2-year period following any
such designation under the initial
State plan submitted after the date of
enactment of the Workforce Investment
Act Amendments of 2003, the Governor
shall only be required to approve a
request for designation under this
clause for such area if such area--
(I) performed successfully;
and
(II) sustained fiscal
integrity; or
(iv) was a local area under section
116(a)(2)(C) (as in effect on the day
before the date of enactment of the
Workforce Investment Act Amendments of
2003), except that after the initial 2-
year period following such designation
pursuant to this clause that occurs
after that date of enactment, the
Governor shall only be required to
approve a request for designation under
this clause for such area if such
area--
(I) performed successfully;
and
(II) sustained fiscal
integrity.
(B) Definitions.--For purposes of this
paragraph:
(i) Performed successfully.--The term
``performed successfully'', when used
with respect to a local area, means the
local area performed at 80 percent or
more of the adjusted level of
performance for core indicators of
performance described in section
136(b)(2)(A) for 2 consecutive years.
(ii) Sustained fiscal integrity.--The
term ``sustained fiscal integrity'',
used with respect to an area, means
that the Secretary has not made a
formal determination during the
preceding 2-year period that either the
grant recipient or the administrative
entity of the area misexpended funds
provided under this title due to
willful disregard of the requirements
of the Act involved, gross negligence,
or failure to comply with accepted
standards of administration.
[(3) Temporary and subsequent designation.--
[(A) Criteria.--Notwithstanding paragraph
(2)(A), the Governor shall approve any request,
made not later than the date of submission of
the initial State plan under this subtitle, for
temporary designation as a local area from any
unit of general local government (including a
combination of such units) with a population of
200,000 or more that was a service delivery
area under the Job Training Partnership Act on
the day before the date of enactment of this
Act if the Governor determines that the area--
[(i) performed successfully, in each
of the last 2 years prior to the
request for which data are available,
in the delivery of services to
participants under part A of title II
and title III of the Job Training
Partnership Act (as in effect on such
day); and
[(ii) has sustained the fiscal
integrity of the funds used by the area
to carry out activities under such part
and title.
[(B) Duration and subsequent designation.--A
temporary designation under this paragraph
shall be for a period of not more than 2 years,
after which the designation shall be extended
until the end of the period covered by the
State plan if the Governor determines that,
during the temporary designation period, the
area substantially met (as defined by the State
board) the local performance measures for the
local area and sustained the fiscal integrity
of the funds used by the area to carry out
activities and under this subtitle.
[(C) Technical assistance.--The Secretary
shall provide the States with technical
assistance in making the determinations
required by this paragraph. The Secretary shall
not issue regulations governing determinations
to be made under this paragraph.
[(D) Performed successfully.--In this
paragraph, the term ``performed successfully''
means that the area involved met or exceeded
the performance standards for activities
administered in the area that--
[(i) are established by the Secretary
for each year and modified by the
adjustment methodology of the State
(used to account for differences in
economic condition, participant
characteristics, and combination of
services provided from the combination
assumed for purposes of the established
standards of the Secretary); and
[(ii)(I) if the area was designated
as both a service delivery area and a
substate area under the Job Training
Partnership Act (as in effect on the
day before the date of enactment of
this Act)--
[(aa) relate to job retention
and earnings, with respect to
activities carried out under
part A of title II of such Act
(as in effect on such day); and
[(bb) relate to entry into
employment, with respect to
activities carried out under
title III of such Act (as in
effect on such day);
[(II) if the area was designated only
as a service delivery area under such
Act (as in effect on such day), relate
to the standards described in subclause
(I)(aa); or
[(III) if the area was only
designated as a substate area under
such Act (as in effect on such day),
relate to the standards described in
subclause (I)(bb).
[(E) Sustained the fiscal integrity.--In this
paragraph, the term ``sustained the fiscal
integrity'', used with respect to funds used by
a service delivery area or local area, means
that the Secretary has not made a final
determination during any of the last 3 years
for which data are available, prior to the date
of the designation request involved, that
either the grant recipient or the
administrative entity of the area misexpended
the funds due to willful disregard of the
requirements of the Act involved, gross
negligence, or failure to observe accepted
standards of administration.]
[(4)] (3) Designation on recommendation of state
board.--The Governor may approve a request from any
unit of general local government (including a
combination of such units) for designation [(including
temporary designation)] as a local area if the State
board determines, taking into account the factors
described in clauses (i) through [(v)] (vi) of
paragraph (1)(B), and recommends to the Governor, that
such area should be so designated.
[(5)] (4) Appeals.--A unit of general local
government (including a combination of such units) or
grant recipient that requests but is not granted
designation of an area as a local area [under paragraph
(2) or (3)] under paragraph (2) may submit an appeal to
the State board under an appeal process established in
the State plan. [If the appeal does not result in such
a designation, the Secretary, after receiving a request
for review from the unit or grant recipient and on
determining that the unit or grant recipient was not
accorded procedural rights under the appeal process
established in the State plan or that the area meets
the requirements of paragraph (2) or (3), as
appropriate, may require that the area be designated as
a local area under such paragraph.]
[(b) Small States.--The Governor of any State that was a
single State service delivery area under the Job Training
Partnership Act as of July 1, 1998, may designate the State as
a single State local area for the purposes of this title. In
the case of such a designation, the Governor shall identify the
State as a local area under section 112(b)(5).]
(b) Single Local Area States.--
(1) Continuation of previous designation.--
Notwithstanding subsection (a)(2), the Governor of any
State that was a single local area for purposes of this
title as of July 1, 2002, may continue to designate the
State as a single local area for purposes of this title
if the Governor identifies the State as a local area in
the State plan under section 112(b)(5).
(2) Redesignation.--The Governor of a State not
described in paragraph (1) may designate the State as a
single local area if, prior to the submission of the
State plan or modification to such plan so designating
the State, no local area meeting the requirements for
automatic designation under subsection (a)(2) requests
such designation as a separate local area.
(3) Effect on local plan.--In any case in which a
State is designated as a local area pursuant to this
subsection, the local plan prepared under section 118
for the area shall be submitted to the Secretary for
approval as part of the State plan under section 112.
(c) Regional Planning and Cooperation.--
[(1) Planning.--As part of the process for developing
the State plan, a State may require regional planning
by local boards for a designated region in the State.
The State may require the local boards for a designated
region to participate in a regional planning process
that results in the establishment of regional
performance measures for workforce investment
activities authorized under this subtitle. The State
may award regional incentive grants to the designated
regions that meet or exceed the regional performance
measures.]
(1) Planning.--
(A) In general.--As part of the process for
developing the State plan, a State may require
regional planning by local boards for a
designated region in the State. The State may
require the local boards for a designated
region to participate in a regional planning
process that results in the establishment of
regional performance measures for workforce
investment activities authorized under this
subtitle. The State, after consultation with
local boards and chief elected officials, may
require the local boards for the designated
region to prepare, submit, and obtain approval
of a single regional plan that incorporates
local plans for each of the local areas in the
region, as required under section 118. The
State may award regional incentive grants to
the designated regions that meet or exceed the
regional performance measures pursuant to
section 134(a)(2)(B)(iii).
(B) Technical assistance.--If the State
requires regional planning as provided in
subparagraph (A), the State shall provide
technical assistance and labor market
information to such local areas in the
designated regions to assist with such regional
planning and subsequent service delivery
efforts.
(2) Information sharing.--The State may require the
local boards for a designated region to share, in
feasible cases, employment statistics, [information
about employment opportunities and trends,] information
about the skill requirements of existing and emerging
industries and industry clusters, and other types of
information that would assist in improving the
performance of all local areas in the designated region
on local performance measures.
(3) Coordination of services.--The State may require
the local boards for a designated region to coordinate
the provision of workforce investment activities
authorized under this subtitle, including the provision
of transportation and other supportive services, so
that services provided through the activities may be
provided across the boundaries of local areas within
the designated region. Such services may be required to
be coordinated with regional economic development
services and strategies.
* * * * * * *
SEC. 117. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) Establishment.--There shall be established in each
local area of a State, and certified by the Governor of the
State, a local workforce investment board, to set policy for
the portion of the statewide workforce investment system within
the local area (referred to in this title as a ``local
workforce investment system'').
(b) Membership.--
(1) State criteria.--The Governor of the State, in
partnership with the State board, shall establish
criteria for use by chief elected officials in the
local areas for appointment of members of the local
boards in such local areas in accordance with the
requirements of paragraph (2).
(2) Composition.--Such criteria shall require, at a
minimum, that the membership of each local board--
(A) shall include--
(i) representatives of business in
the local area, who--
(I) are owners of businesses,
chief executives or operating
officers of businesses, and
other business executives or
employers with optimum policy-
making or hiring authority;
[(II) represent businesses
with employment opportunities
that reflect the employment
opportunities of the local
area; and]
(II) collectively, represent
businesses with employment
opportunities that reflect the
employment opportunities of the
local area, and include
representatives of businesses
that are in high-growth and
emerging industries, and
representatives of businesses,
including small businesses, in
the local area; and
(III) are appointed from
among individuals nominated by
local business organizations
and business trade
associations;
[(ii) representatives of local
educational entities, including
representatives of local educational
agencies, local school boards, entities
providing adult education and literacy
activities, and postsecondary
educational institutions (including
representatives of community colleges,
where such entities exist), selected
from among individuals nominated by
regional or local educational agencies,
institutions, or organizations
representing such local educational
entities;]
(ii)(I) a superintendent representing
the local school districts involved or
another high-level official from such
districts;
(II) the president or highest ranking
official of an institution of higher
education serving the local area; and
(III) an administrator of local
entities providing adult education and
literacy activities in the local area;
(iii) representatives of labor
organizations (for a local area in
which employees are represented by
labor organizations), nominated by
local labor federations, or (for a
local area in which no employees are
represented by such organizations),
other representatives of employees;
(iv) representatives of community-
based organizations (including
organizations representing individuals
with disabilities, hard-to-serve
populations, and veterans, for a local
area in which such organizations
arepresent);
(v) representatives of economic
development agencies, including private
sector economic development entities;
and
[(vi) representatives of each of the
one-stop partners; and]
(vi) if the local board does not
establish or continue a youth council,
representatives with experience serving
out-of-school youth, particularly out-
of-school youth facing barriers to
employment; and
(B) may include such other individuals or
representatives of entities as the chief
elected official in the local area may
determine to be appropriate.
(3) Authority and representation of board members.--
Members of the board that represent organizations,
agencies, or other entities shall be individuals with
optimum policymaking authority within the
organizations, agencies, or entities. The members of
the board shall represent diverse geographic sections
within the local area.
(4) Majority.--A majority of the members of the local
board shall be representatives described in paragraph
(2)(A)(i).
(5) Chairperson.--The local board shall elect a
chairperson for the local board from among the
representatives described in paragraph (2)(A)(i).
(6) Special rule.--In the case that there are
multiple school districts or institutions of higher
education serving a local area, the representatives
described in subclause (I) or (II) of paragraph
(2)(A)(ii), respectively, shall be appointed from among
individuals nominated by regional or local educational
agencies, institutions, or organizations representing
such agencies or institutions.
(c) Appointment and Certification of Board.--
(1) Appointment of board members and assignment of
responsibilities.--
(A) In general.--* * *
* * * * * * *
(C) Concentrated employment programs.--In the
case of a local area designated in accordance
with [section 116(a)(2)(B)] section
116(a)(2)(A)(ii), the governing body of the
concentrated employment program involved shall
act in consultation with the chief official in
the local area to appoint members of the local
board, in accordance with the State criteria
established under subsection (b), and to carry
out any other responsibility relating to
workforce investment activities assigned to
such official under this Act.
* * * * * * *
(d) Functions of Local Board.--The functions of the local
board shall include the following:
(1) Local plan.--Consistent with section 118, each
local board, in partnership with the chief elected
official for the local area involved, shall develop and
submit a local plan to the Governor.
(2) Selection of operators and providers.--
(A) Selection of one-stop operators.--
Consistent with section 121(d), the local
board, with the agreement of the chief elected
official--
(i) shall designate or certify one-
stop operators as described in section
121(d)(2)(A); and
(ii) may terminate for cause the
eligibility of such operators.
(B) Selection of youth providers.--Consistent
with section 123, the local board shall
identify eligible providers of youth activities
in the local area by awarding grants or
contracts on a competitive basis (except as
provided in section 123(b)), based on the
recommendations of the youth council (where
appropriate).
(C) Identification of eligible providers of
training services.--Consistent with section
122, the local board shall identify eligible
providers of training services described in
section 134(d)(4) in the local area.
(D) Identification of eligible providers of
intensive services.--If the one-stop operator
does not provide intensive services in a local
area, the local board shall identify eligible
providers of intensive services described in
section 134(d)(3) in the local area by awarding
contracts.
(E) Consumer choice requirements.--Consistent
with sections 122 and paragraphs (3) and (4) of
134(d), the local board shall work to ensure
there are sufficient providers of intensive
services and training services serving the
local area in a manner that maximizes consumer
choice, including providers with expertise in
assisting individuals with disabilities.
* * * * * * *
(4) Program oversight.--The local board, in
partnership with the chief elected official, shall
conduct oversight with respect to local programs of
youth activities authorized under section 129, local
employment and training activities authorized under
section 134, and the one-stop delivery system in the
local area, and shall ensure the appropriate use and
management of the funds provided under this subtitle
for such programs, activities, and system.
* * * * * * *
(8) Connecting, brokering, and coaching.--The local
board shall promote the participation of private sector
employers, including small employers, in the statewide
workforce investment system and ensure the effective
provision, through the system, of connecting,
brokering, and coaching activities, through
intermediaries such as the one-stop operator in the
local area or through other organizations, to assist
such employers in meeting hiring needs[.], taking into
account the unique needs of small businesses.
(9) Technology improvements.--The local board shall
develop strategies for technology improvements to
facilitate access to services, in remote areas, for
services authorized under this subtitle and carried out
in the local area.
* * * * * * *
(f) Limitations.--
(1) Training services.--
(A) In general.-- * * *
* * * * * * *
(2) Core services; intensive services; designation or
certification as one-stop operators.--A local board may
provide core services described in section 134(d)(2) or
intensive services described in section 134(d)(3)
through a one-stop delivery system [described in
section 134(c)] or be designated or certified as a one-
stop operator only with the agreement of the chief
elected official and the Governor.
* * * * * * *
[(h) Youth Council.--
[(1) Establishment.--There shall be established, as a
subgroup within each local board, a youth council
appointed by the local board, in cooperation with the
chief elected official for the local area.
[(2) Membership.--The membership of each youth
council--
[(A) shall include--
[(i) members of the local board
described in subparagraph (A) or (B) of
subsection (b)(2) with special interest
or expertise in youth policy;
[(ii) representatives of youth
service agencies, including juvenile
justice and local law enforcement
agencies;
[(iii) representatives of local
public housing authorities;
[(iv) parents of eligible youth
seeking assistance under this subtitle;
[(v) individuals, including former
participants, and representatives of
organizations, that have experience
relating to youth activities; and
[(vi) representatives of the Job
Corps, as appropriate; and
[(B) may include such other individuals as
the chairperson of the local board, in
cooperation with the chief elected official,
determines to be appropriate.
[(3) Relationship to local board.--Members of the
youth council who are not members of the local board
described in subparagraphs (A) and (B) of subsection
(b)(2) shall be voting members of the youth council and
nonvoting members of the board.
[(4) Duties.--The duties of the youth council
include--
[(A) developing the portions of the local
plan relating to eligible youth, as determined
by the chairperson of the local board;
[(B) subject to the approval of the local
board and consistent with section 123--
[(i) recommending eligible providers
of youth activities, to be awarded
grants or contracts on a competitive
basis by the local board to carry out
the youth activities; and
[(ii) conducting oversight with
respect to the eligible providers of
youth activities, in the local area;
[(C) coordinating youth activities authorized
under section 129 in the local area; and
[(D) other duties determined to be
appropriate by the chairperson of the local
board.]
(h) Councils.--The local board may establish or continue
councils to provide information and advice to assist the local
board in carrying out activities under this title. Such
councils may include--
(1) a council composed of one-stop partners to advise
the local board on the operation of the one-stop
delivery system involved;
(2) a youth council composed of experts and
stakeholders in youth programs to advise the local
board on youth activities; and
(3) such other councils as the local board determines
are appropriate.
(i) Alternative Entity.--
(1) In general.--For purposes of complying with
subsections (a), (b), and (c), and paragraphs (1) and
(2) of subsection (h), a State may use any local entity
(including a local council, regional workforce
development board, or similar entity) that--
(A) is established to serve the local area
(or the service delivery area that most closely
corresponds to the local area);
[(B) is in existence on December 31, 1997;]
(B) was in existence on August 7, 1998,
pursuant to State law; and
[(C)(i) is established pursuant to section
102 of the Job Training Partnership Act, as in
effect on December 31, 1997 or
[(ii) is substantially similar to the local
board described in subsections (a), (b), and
(c), and paragraphs (1) and (2) of subsection
(h); and]
[(D)] (C) includes--
(i) representatives of business in
the local area; and
(ii)(I) representatives of labor
organizations (for a local area in
which employees are represented by
labor organizations), nominated by
local labor federations; or
(II) other representatives of
employees in the local area (for a
local area in which no employees are
represented by such organizations).
(2) References.--References in this Act to a local
board or a youth council shall be considered to include
such an entity or a subgroup of such an entity,
respectively.
* * * * * * *
SEC. 118. LOCAL PLAN.
(a) In General.--Each local board shall develop and submit
to the Governor a comprehensive [5-year] 4-year local plan
(referred to in this title as the ``local plan''), in
partnership with the appropriate chief elected official. The
plan shall be consistent with the State plan. At the end of the
first 2-year period of the 4-year plan, the local board shall
review and, as needed, amend the 4-year plan to reflect labor
market and economic conditions.
(b) Contents.--The local plan shall include--
(1) an identification of--
(A) the workforce investment needs of
businesses, jobseekers, and workers in the
local area;
(B) the current and projected employment
opportunities in the local area; and
(C) the job skills necessary to obtain such
employment opportunities;
(2) a description of the one-stop delivery system to
be established or designated in the local area,
including--
(A) a description of how the local board will
ensure the continuous improvement of eligible
providers of services through the system and
ensure that such providers meet the employment
needs of local employers and participants;
[and]
[(B) a copy of each memorandum of
understanding described in section 121(c)
(between the local board and each of the one-
stop partners) concerning the operation of the
one-stop delivery system in the local area;]
(B) a description of how the local board will
facilitate access to services provided through
the one-stop delivery system, in remote areas,
including facilitating access through the use
of technology; and
(C) a description of how the local board will
ensure physical and programmatic accessibility
for individuals with disabilities at one-stop
centers;
* * * * * * *
(9) a description of the competitive process to be
used to award the grants and contracts in the local
area for activities carried out under this subtitle[;
and];
(10) a description of how the local board will
coordinate workforce investment activities carried out
in the local area with economic development activities
carried out in the local area;
(11) a description of the strategies and services
that will be initiated in the local area to more fully
engage all employers, including small employers, in
workforce investment activities, to make the workforce
investment system more relevant to the needs of area
businesses, and to better coordinate workforce
investment and economic development efforts, which may
include the implementation of innovative initiatives
such as incumbent worker training programs, sectoral
and industry cluster strategies, regional skills
alliance initiatives, career ladder programs,
utilization of effective business intermediaries, and
other business services and strategies designed to meet
the needs of area employers and contribute to the
economic well-being of the local area, as determined
appropriate by the local board, consistent with the
objectives of this title;
(12) a description of how the local board will expand
access to education and training services for eligible
individuals who are in need of such services through--
(A) the utilization of programs funded under
this title; and
(B) the increased leveraging of resources
other than those provided under this title,
including tax credits, private sector-provided
training, and other Federal, State, local, and
private funds that are brokered through the
one-stop centers for training services;
(13) a description of how the local board will
coordinate workforce investment activities carried out
in the local area with the provision of transportation,
including public transportation, in the local area; and
[(10)] (14) such other information as the Governor
may require.
* * * * * * *
CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES PROVIDERS
SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.
(a) In General.--Consistent with the State plan, the local
board for a local area, with the agreement of the chief elected
official for the local area, shall--
(1) * * *
(2) * * *
(3) * * *
(b) One-Stop Partners.--
(1) Required partners.--
[(A) In general.--Each entity that carries
out a program or activities described in
subparagraph (B) shall--
[(i) make available to participants,
through a one-stop delivery system, the
services described in section 134(d)(2)
that are applicable to such program or
activities;
[(ii) participate in the operation of
such system consistent with the terms
of the memorandum described in
subsection (c), and with the
requirements of the Federal law in
which the program or activities are
authorized.]
(A) Roles and responsibilities of one-stop
partners.--Each entity that carries out a
program or activities described in subparagraph
(B) shall--
(i) provide access through the one-
stop delivery system to the programs
and activities carried out by the
entity, including making the core
services described in section 134(d)(2)
that are applicable to the program of
the entity available at the
comprehensive one-stop centers (in
addition to any other appropriate
locations);
(ii) use a portion of the funds
available to the program of the entity
to maintain the one-stop delivery
system, including payment of the
infrastructure costs of one-stop
centers in accordance with subsection
(h);
(iii) enter into a local memorandum
of understanding with the local board
relating to the operation of the one-
stop system that meets the requirements
of subsection (c);
(iv) participate in the operation of
the one-stop system consistent with the
terms of the memorandum of
understanding, the requirements of this
title, and the requirements of the
Federal laws authorizing the programs
carried out by the entity; and
(v) provide representation on the
State board to the extent provided
under section 111.
(B) Programs and activities.--The programs
and activities referred to in subparagraph (A)
consist of--
(i) * * *
* * * * * * *
[(v) programs authorized under
section 403(a)(5) of the Social
Security Act (42 U.S.C. 603(a)(5)) (as
added by section 5001 of the Balanced
Budget Act of 1997);]
[(vi)] (v) activities authorized
under title V of the Older Americans
Act of 1965 (42 U.S.C. 3056 et seq.);
[(vii)] (vi) postsecondary vocational
education activities authorized under
the Carl D. Perkins Vocational and
Applied Technology Education Act (20
U.S.C. 2301 et seq.);
[(viii)] (vii) activities authorized
under chapter 2 of title II of the
Trade Act of 1974 (19 U.S.C. 2271 et
seq.);
[(ix)] (viii) activities authorized
under chapter 41 of title 38, United
States Code;
[(x)] (ix) employment and training
activities carried out under the
Community Services Block Grant Act (42
U.S.C. 9901 et seq.);
[(xi)] (x) employment and training
activities carried out by the
Department of Housing and Urban
Development; [and]
[(xii)] (xi) programs authorized
under State unemployment compensation
laws (in accordance with applicable
Federal law)[.]; and
(xii) programs authorized under part
A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.), subject to
subparagraph (C).
(C) Determination by the governor.--
(i) In general.--An entity that
carries out programs referred to in
subparagraph (B)(xii) shall be included
in the one-stop partners for the local
area, as a required partner, for
purposes of this title unless the
Governor of the State provides the
notification described in clause (ii).
(ii) Notification.--The notification
referred to in clause (i) is a
notification that--
(I) is made in writing of a
determination by the Governor
not to include such entity in
the one-stop partners described
in clause (i); and
(II) is provided to the
Secretary and the Secretary of
Health and Human Services.
(2) Additional partners.--
[(A) In general.--In addition to the entities
described in paragraph (1), other entities that
carry out a human resource program described in
subparagraph (B) may--
[(i) make available to participants,
through the one-stop delivery system,
the services described in section
134(d)(2) that are applicable to such
program; and
[(ii) participate in the operation of
such system consistent with the terms
of the memorandum described in
subsection (c), and with the
requirements of the Federal law in
which the program is authorized;
if the local board and chief elected official
involved approve such participation.]
(A) In general.--With the approval of the
local board and chief elected official, in
addition to the entities described in paragraph
(1), other entities that carry out human
resource programs described in subparagraph (B)
may be one-stop partners and carry out the
responsibilities described in paragraph (1)(A).
(B) Programs.--The programs referred to in
subparagraph (A) may include--
[(i) programs authorized under part A
of title IV of the Social Security Act
(42 U.S.C. 601 et seq.);
[(ii) programs authorized under
section 6(d)(4) of the Food Stamp Act
of 1977 (7 U.S.C. 2015(d)(4));
[(iii) work programs authorized under
section 6(o) of the Food Stamp Act of
1977 (7 U.S.C. 2015(o));]
(i) employment and training programs
administered by the Social Security
Administration, including the Ticket to
Work and Self-Sufficiency program
established under section 1148 of the
Social Security Act (42 U.S.C. 1320b-
19);
(ii) employment and training programs
carried out by the Small Business
Administration;
(iii) programs authorized under
section 6(d)(4) of the Food Stamp Act
of 1977 (7 U.S.C. 2015(d)(4));
* * * * * * *
(c) Memorandum of Understanding.--
(1) Development.--The local board, with the agreement
of the chief elected official, shall develop and enter
into a memorandum of understanding (between the local
board and the one-stop partners), consistent with
paragraph (2), concerning the operation of the one-stop
delivery system in the local area.
(2) Contents.--Each memorandum of understanding shall
contain--
[(A) Provisions describing--
[(i) the services to be provided
through the one-stop delivery system;
[(ii) how the costs of such services
and the operating costs of the system
will be funded;
[(iii) methods for referral of
individuals between the one-stop
operator and the one-stop partners, for
the appropriate services and
activities; and
[(iv) the duration of the memorandum
and the procedures for amending the
memorandum during the term of the
memorandum; and]
(A) provisions describing--
(i) the services to be provided
through the one-stop delivery system
consistent with the requirements of
this section, including the manner in
which the services will be coordinated
through such system;
(ii) how the costs of such services
and the operating costs of such system
will be funded to provide a stable and
equitable funding stream for ongoing
one-stop system operations, including
the funding of the infrastructure costs
of one-stop centers in accordance with
subsection (h);
(iii) methods of referral of
individuals between the one-stop
operator and the one-stop partners for
appropriate services and activities;
(iv) methods to ensure the needs of
hard-to-serve populations are addressed
in providing access to services through
the one-stop system; and
(v) the duration of the memorandum of
understanding and the procedures for
amending the memorandum during the term
of the memorandum, and assurances that
such memorandum shall be reviewed not
less than once every 2-year period to
ensure appropriate funding and delivery
of services; and
* * * * * * *
(d) One-Stop Operators.--
(1) Designation and certification.--Consistent with
paragraphs (2) and (3), the local board, with the
agreement of the chief elected official, is authorized
to designate or certify one-stop operators and to
terminate for cause the eligibility of such operators.
(2) Eligibility.--To be eligible to receive funds
made available under this subtitle to operate a one-
stop center referred to in [section 134(c)] section
121(e), an entity (which may be a consortium of
entities)--
* * * * * * *
[(e) Established One-Stop Delivery System.--If a one-stop
delivery system has been established in a local area prior to
the date of enactment of this Act, the local board, the chief
elected official, and the Governor involved may agree to
certify an entity carrying out activities through the system as
a one-stop operator for purposes of subsection (d), consistent
with the requirements of subsection (b), of the memorandum of
understanding, and of section 134(c).]
[(c)] (e) Establishment of One-Stop Delivery System.--
(1) In general.--There shall be established in a
State that receives an allotment under section 132(b) a
one-stop delivery system, which--
(A) shall provide the core services described
in [subsection (d)(2)] section 134(d)(2);
(B) shall provide access to intensive
services and training services as described in
paragraphs (3) and (4) of [subsection (d)]
section 134(d), including serving as the point
of access to [individual training accounts]
career scholarship accounts for training
services to participants in accordance with
[subsection (d)(4)(G)] section 134(d)(4)(G);
(C) shall provide access to the activities
carried out under [subsection (e)] section
134(e), if any;
(D) shall provide access to programs and
activities carried out by one-stop partners and
described in [section 121(b)] subsection (b);
and
(E) shall provide access to the [information
described in section 15] data, information, and
analysis described in section 15(a) of the
Wagner-Peyser Act and all job search,
placement, recruitment, and other labor
exchange services authorized under the Wagner-
Peyser Act (29 U.S.C. 49 et seq.).
(2) One-stop delivery.--At a minimum, the one-stop
delivery system--
(A) shall make each of the programs,
services, and activities described in paragraph
(1) accessible at not less than one physical
center in each local area of the State; and
(B) may also make programs, services, and
activities described in paragraph (1)
available--
(i) through a network of affiliated
sites that can provide one or more of
the programs, services, and activities
to individuals; and
(ii) through a network of eligible
one-stop partners--
(I) in which each partner
provides one or more of the
programs, services, and
activities to such individuals
and is accessible at an
affiliated site that consists
of a physical location or an
electronically or
technologically linked access
point; and
(II) that assures individuals
that information on the
availability of the core
services will be available
regardless of where the
individuals initially enter the
statewide workforce investment
system, including information
made available through an
access point described in
subclause (I).
(3) Specialized centers.--The centers and sites
described in paragraph (2) may have a specialization in
addressing special needs, such as the needs of
dislocated workers.
* * * * * * *
(g) Continuous Improvement of One-Stop Centers.--
(1) In general.--The State board, in consultation
with chief local elected officials and local boards,
shall establish objective criteria and procedures for
use by local boards in periodically assessing the
effectiveness, physical and programmatic accessibility,
and continuous improvement of one-stop centers and one-
stop delivery systems.
(2) Criteria.--The procedures and criteria developed
under this subsection shall include minimum standards
relating to the scope and degree of service
coordination achieved by the one-stop delivery system
with respect to the programs administered by the one-
stop partners at the one-stop centers, consistent with
the guidelines and guidance provided by the Governor
and by the State board, in consultation with the chief
elected official and local boards, for such partners'
participation under subsection (h)(1)(B) and subsection
(i), respectively, and such other factors relating to
the quality, accessibility, and effectiveness of the
one-stop delivery system as the State board determines
to be appropriate.
(3) Local boards.--Consistent with the criteria
developed by the State, the local board may develop
additional criteria of higher standards to respond to
local labor market and demographic conditions and
trends.
(h) Funding of One-Stop Infrastructure.--
(1) In general.--
(A) Options for infrastructure funding.--
(i) Local options.--The local board,
chief elected officials, and one-stop
partners in a local area may choose to
fund the costs of the infrastructure of
one stop centers through--
(I) methods described in the
local memorandum of
understanding, if, the local
board, chief elected officials,
and one-stop partners agree to
such methods; or
(II) the State infrastructure
funding mechanism described in
paragraph (2).
(ii) Failure to reach agreement on
funding methods.--If, as of July 1,
2004, the local board, chief elected
officials, and one-stop partners in a
local area fail to reach agreement on
methods of sufficient funding of the
infrastructure costs of one-stop
centers, as determined by the local
area, the State infrastructure funding
mechanism described in paragraph (2)
shall be applicable to such local area.
(B) Guidance for infrastructure funding.--In
addition to carrying out the requirements
relating to the State mechanism for one-stop
center infrastructure funding described in
paragraph (2), the Governor, after consultation
with chief local elected officials, local
boards, and the State board, and consistent
with the guidelines provided by the State board
under subsection (i), shall provide--
(i) guidelines for State administered
one-stop partner programs in
determining such programs'
contributions to and participation in
the one-stop delivery system, including
funding for the costs of infrastructure
as defined in paragraph (2)(D),
negotiated pursuant to the local
memorandum of understanding under
subsection (c); and
(ii) guidance to assist local areas
in identifying equitable and stable
alternative methods of funding of the
costs of the infrastructure of one-stop
centers in local areas.
(2) State one-stop infrastructure funding.--
(A) Partner contributions.--
(i) In general.--Subject to clause
(iii), a portion determined under
clause (ii) of the Federal funds
provided to the State and areas within
the State under the Federal laws
authorizing the programs described in
subsection (b)(1) and administered by
one-stop partners for a fiscal year
shall be provided to the Governor from
such programs to assist in paying the
costs of infrastructure of one-stop
centers in those local areas of the
State not funded under the option
described in paragraph (1)(A)(i)(I).
(ii) Determination of governor.--
(I) In general.--Subject to
subclause (II) and clause
(iii), the Governor, after
consultation with chief local
elected officials, local
boards, and the State board,
shall determine the portion of
funds to be provided under
clause (i) by each one-stop
partner from each program
described in clause (i). In
making such determination, the
Governor shall calculate the
proportionate use of the one-
stop centers for the purpose of
determining funding
contributions pursuant to
clause (i)(II) or (ii) of
paragraph (1)(A) by each
partner, and the costs of
administration for purposes not
related to one-stop centers for
each partner. The Governor
shall exclude from such
determination the portion of
funds and use of one-stop
centers attributable to the
programs of one-stop partners
for those local areas of the
State where the infrastructure
of one-stop centers is funded
under the option described in
paragraph (1)(A)(i)(I).
(II) Special rule.--In a
State in which the State
constitution places
policymaking authority that is
independent of the authority of
the Governor in an entity or
official with respect to the
funds provided for adult
education and literacy
activities authorized under
title II and for postsecondary
vocational and technical
education activities authorized
under the Carl D. Perkins
Vocational and Technical
Education Act of 1998 (20
U.S.C. 2301 et seq.), or
vocational rehabilitation
services offered under the
Rehabilitation Act of 1973 (29
U.S.C. 701 et seq.), the
determination described in
subclause (I) with respect to
the programs authorized under
that title and those Acts shall
be made by the chief officer of
the entity with such authority
in consultation with the
Governor.
(III) Appeal by one-stop
partners.--The Governor shall
establish a procedure for the
one-stop partner administering
a program described in
subsection (b) to appeal a
determination regarding the
portion of funds to be
contributed under this
paragraph on the basis that
such determination is
inconsistent with the criteria
described in the State plan or
with the requirements of this
paragraph. Such procedure shall
ensure prompt resolution of the
appeal.
(iii) Limitations.--
(I) Provision from
administrative funds.--The
funds provided under this
paragraph by each one-stop
partner shall be provided only
from funds available for the
costs of administration under
the program administered by
such partner, and shall be
subject to the program
limitations with respect to the
portion of funds under such
program that may be used for
administration.
(II) Cap on required
contributions.--
(aa) WIA formula
programs and employment
service.--The portion
of funds required to be
contributed under
clause (i)(II) or (ii)
of paragraph (1)(A) by
the programs authorized
under chapters 4 and 5
and under the Wagner-
Peyser Act shall not be
in excess of 3 percent
of the amount of
Federal funds provided
to carry out each such
program in the State
for a fiscal year.
(bb) Other one-stop
partners.--The portion
of funds required to be
contributed under
clause (i)(II) or (ii)
of paragraph (1)(A) by
a one-stop partner from
a program described in
subsection (b)(1) other
than the programs
described under item
(aa) shall not be in
excess of 1\1/2\
percent of the amount
of Federal funds
provided to carry out
such program in the
State for a fiscal
year.
(cc) Special rule.--
Notwithstanding items
(aa) and (bb), an
agreement, including a
local memorandum of
understanding, entered
into prior to the date
of enactment of the
Workforce Investment
Act Amendments of 2003
by an entity regarding
contributions under
this title that permits
the percentages
described in such items
to be exceeded, may
continue to be in
effect until terminated
by the parties.
(dd) Vocational
rehabilitation.--
Notwithstanding items
(aa) and (bb), an
entity administering a
program under title I
of the Rehabilitation
Act of 1973 (29 U.S.C.
720 et seq.) shall not
be required to provide,
for the purposes of
this paragraph, an
amount in excess of--
(AA) 0.75
percent of the
amount provided
for such
program in the
State for the
second program
year that
begins after
the date of
enactment of
the Workforce
Investment Act
Amendments of
2003;
(BB) 1.0
percent of the
amount provided
for such
program in the
State for the
third program
year that
begins after
such date;
(CC) 1.25
percent of the
amount provided
for such
program in the
State for the
fourth program
year that
begins after
such date; and
(DD) 1.5
percent of the
amount provided
for such
program in the
State for the
fifth and each
succeeding
program year
that begins
after such
date.
(III) Federal direct spending
programs.--An entity
administering a program funded
with direct spending as defined
in section 250(c)(8) of the
Balanced Budget and Emergency
Deficit Control Act of 1985 (2
U.S.C. 900(c)(8)) shall not be
required to provide, for
purposes of this paragraph, an
amount in excess of the amount
determined to be equivalent to
the cost of the proportionate
use of the one-stop centers for
such program in the State.
(IV) Native american
programs.--Native American
programs established under
section 166 shall not be
subject to the provisions of
this subsection or subsection
(i). The method for determining
the appropriate portion of
funds to be provided by such
Native American programs to pay
for the costs of infrastructure
of a one-stop center shall be
determined as part of the
development of the memorandum
of understanding under
subsection (c) for the one-stop
center and shall be stated in
the memorandum.
(B) Allocation by governor.--From the funds
provided under subparagraph (A), the Governor
shall allocate the funds to local areas in
accordance with the formula established under
subparagraph (C) for the purposes of assisting
in paying the costs of infrastructure of one-
stop centers.
(C) Allocation formula.--The State board
shall develop a formula to be used by the
Governor to allocate the funds provided under
subparagraph (A) to local areas not funding
infrastructure costs under the option described
in paragraph (1)(A)(i)(I). The formula shall be
based on factors including the number of one-
stop centers in a local area, the population
served by such centers, the services provided
by such centers, and other factors relating to
the performance of such centers that the State
board determines are appropriate.
(D) Costs of infrastructure.--In this
subsection, the term ``costs of
infrastructure'', used with respect to a one-
stop center, means the nonpersonnel costs that
are necessary for the general operation of the
one-stop center, including the rental costs of
the facilities, the costs of utilities and
maintenance, equipment (including adaptive
technology for individuals with disabilities),
and technology to facilitate remote access to
the one-stop center's strategic planning
activities, and common outreach activities.
(i) Other Funds.--
(1) In general.--Subject to the memorandum of
understanding described in subsection (c) for the one-
stop delivery system involved, in addition to the funds
provided to carry out subsection (h), a portion of
funds made available under Federal law authorizing the
programs described in subsection (b) and administered
by one-stop partners, or the noncash resources
available under such programs, shall be used to pay the
additional costs relating to the operation of the one-
stop delivery system that are not paid from the funds
provided under subsection (h), as determined in
accordance with paragraph (2), to the extent not
inconsistent with the Federal law involved. Such costs
shall include the costs of the provision of core
services described in section 134(d)(2) applicable to
each program and may include common costs that are not
paid from the funds provided under subsection (h).
(2) Determination and guidance.--The method for
determining the appropriate portion of funds and
noncash resources to be provided by each program under
paragraph (1) for a one-stop center shall be determined
as part of the development of the memorandum of
understanding under subsection (c) for the one-stop
center and shall be stated in the memorandum. The State
board shall provide guidance to facilitate the
determination of an appropriate allocation of the funds
and noncash resources in local areas.
* * * * * * *
SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
[(a) Eligibility Requirements.--
[(1) In general.--Except as provided in subsection
(h), to be identified as an eligible provider of
training services described in section 134(d)(4)
(referred to in this section as ``training services'')
in a local area and to be eligible to receive funds
made available under section 133(b) for the provision
of training services, a provider of such services shall
meet the requirements of this section.
[(2) Providers.--Subject to the provisions of this
section, to be eligible to receive the funds, the
provider shall be--
[(A) a postsecondary educational institution
that--
[(i) is eligible to receive Federal
funds under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070
et seq.); and
[(ii) provides a program that leads
to an associate degree, baccalaureate
degree, or certificate;
[(B) an entity that carries out programs
under the Act of August 16, 1937 (commonly
known as the ``National Apprenticeship Act'';
50 Stat. 664, chapter 663; 29 U.S.C. 50 et
seq.); or
[(C) another public or private provider of a
program of training services.
[(b) Initial Eligibility Determination.--
[(1) Postsecondary educational institutions and
entities carrying out apprenticeship programs.--To be
initially eligible to receive funds as described in
subsection (a) to carry out a program described in
subparagraph (A) or (B) of subsection (a)(2), a
provider described in subparagraph (A) or (B),
respectively, of subsection (a)(2) shall submit an
application, to the local board for the local area in
which the provider desires to provide training
services, at such time, in such manner, and containing
such information as the local board may require.
[(2) Other eligible providers.--
[(A) Procedure.--Each Governor of a State
shall establish a procedure for use by local
boards in the State in determining the initial
eligibility of a provider described in
subsection (a)(2)(C) to receive funds as
described in subsection (a) for a program of
training services, including the initial
eligibility of--
[(i) a postsecondary educational
institution to receive such funds for a
program not described in subsection
(a)(2)(A); and
[(ii) a provider described in
subsection (a)(2)(B) to receive such
funds for a program not described in
subsection (a)(2)(B).
[(B) Recommendations.--In developing such
procedure, the Governor shall solicit and take
into consideration the recommendations of local
boards and providers of training services
within the State.
[(C) Opportunity to submit comments.--The
Governor shall provide an opportunity, during
the development of the procedure, for
interested members of the public, including
representatives of business and labor
organizations, to submit comments on such
procedure.
[(D) Requirements.--In establishing the
procedure, the Governor shall require that, to
be initially eligible to receive funds as
descried in subsection (a) for a program, a
provide described in subsection (a)(2)(C)--
[(i) shall submit an application, to
the local board for the local area in
which the provider desires to provide
training services, at such time and in
such manner as may be required, and
containing a description of the
program;
[(ii) if the provider provides
training services through a program on
the date of application, shall include
in the application an appropriate
portion of the performance information
and program cost information described
in subsection (d) for the program, as
specified in the procedure, and shall
meet appropriate levels of performance
for the program, as specified in the
procedure; and
[(iii) if the provider does not
provide training services on such date,
shall meet appropriate requirements, as
specified in the procedure.
[(c) Subsequent Eligibility Determination.--
[(1) Procedure.--Each Governor of a State shall
establish a procedure for use by local boards in the
State in determining the eligibility of a provider
described in subsection (a)(2) to continue to receive
funds as described in subsection (a) for a program
after an initial period of eligibility under subsection
(b) referred to in this section as ``subsequent
eligibility'').
[(2) Recommendations.--In developing such procedure,
the Governor shall solicit and take into consideration
the recommendations of local boards and providers of
training services within the State.
[(3) Opportunity to submit comments.--The Governor
shall provide an opportunity, during the development of
the procedure, for interested members of the public,
including representatives of business and labor
organizations, to submit comments on such procedure.
[(4) Considerations.--In developing such procedure,
the Governor shall ensure that the procedure requires
the local boards to take into consideration, in making
the determinations of Subsequent eligibility
[(A) the specific economic, geographic, and
demographic factors in the local areas in which
providers seeking eligibility are located; and
[(B) the characteristics of the populations
served by providers seeking eligibility,
including the demonstrated difficulties in
serving such populations, where applicable.
[(5) Requirements.--In establishing the procedure,
the Governor shall require that, to be eligible to
continue to receive funds as described in subsection
(a) for a program after the initial period of
eligibility, a provider described in subsection (a)(2)
shall--
[(A) submit the performance information and
program cost information described in
subsection (d)(1) for the program and any
additional information required to be submitted
in accordance with subsection (d)(2) for the
program annually to the appropriate local board
at such time and in such manner as may be
required; and
[(B) annually meet the performance levels
described in paragraph (6) for the program, as
demonstrated utilizing quarterly records
described in section 136, in a manner
consistent with section 136.
[(6) Levels of performance.--
[(A) In general.--At a minimum, the procedure
described in paragraph (1) shall require the
provider to meet minimum acceptable levels of
performance based on the performance
information referred to in paragraph (5)(A).
[(B) Higher levels of performance
eligibility.--The local board may require
higher levels of performance than the levels
referred to in subparagraph (A) for subsequent
eligibility to receive funds as described in
subsection (a).
[(d) Performance and Cost Information.--
[(1) Required information.--For a provider of
training services to be determined to be subsequently
eligible under subsection (c) to receive funds as
descried in subsection (a), such provider shall, under
subsection (c), submit--
[(A) verifiable program-specific performance
information consisting of--
[(i) program information, including--
[(I) the program completion
rates for all individuals
participating in the applicable
program conducted by the
provider;
[(II) the percentage of all
individuals participating in
the applicable program who
obtain unsubsidized employment,
which may also include
information specifying the
percentage of the individuals
who obtain unsubsidized
employment in and occupation
related to the program
conducted; and
[(III) the wages at placement
in employment of all
individuals participating in
the applicable program; and
[(ii) training services information
for all participants who received
assistance under section 134 to
participate in the applicable program,
including--
[(I) the percentage of
participants who have completed
the applicable program and who
are placed in unsubsidized
employment;
[(II) the retention rates in
unsubsidized employment of
participants who have completed
the applicable program, 6
months after the first day of
the employment;
[(III) the wages received by
participants who have completed
the applicable program, 6
months after the first day of
the employment involved; and
[(IV) where appropriate, the
rates of licensure or
certification, attainment of
academic degrees or
equivalents, or attainment of
other measures of skills, of
the graduates of the applicable
program; and
[(B) information on program costs (such as
tuition and fees) for participants in the
applicable program.
[(2) Additional information.--Subject to paragraph
(3), in addition to the performance information
described in paragraph (1)--
[(A) the Governor may require that a provider
submit, under subsection (c), such other
verifiable program-specific performance
information as the Governor determines to be
appropriate to obtain such subsequent
eligibility, which may include information
relating to--
[(i) retention rates in employment
and the subsequent wages of all
individuals who complete the applicable
program;
[(ii) where appropriate, the rates of
licensure or certification of all
individuals who complete the program;
and
[(iii) the percentage of individuals
who complete the program who attain
industry-recognized occupational skills
in the subject, occupation, or industry
for which training is provided through
the program, where applicable; and
[(B) the Governor, or the local board, may
require a provider to submit, under subsection
(c), other verifiable program-specific
performance information to obtain such
subsequent eligibility.
[(3) Conditions.--
[(A) In general.--If the Governor or a local
board requests additional information under
paragraph (2) that imposes extraordinary costs
on providers, or if providers experience
extraordinary costs in the collection of
information required under paragraph
(1)(A)(ii), the Governor or the local board
shall provide access to cost-effective methods
for the collection of the information involved,
or the Governor shall provide additional
resources to assist providers in the collection
of such information from funds made available
as described in sections 128(a) and 133(a)(1),
as appropriate.
[(B) Higher education eligibility
requirements.--The local board and the
designated State agency described in subsection
(i) may accept program-specific performance
information consistent with the requirements
for eligibility under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070 et seq.)
from a provider for purposes of enabling the
provider to fulfill the applicable requirements
of this subsection, if such information is
substantially similar to the information
otherwise required under this subsection.
[(e) Local Identification.--
[(1) In general.--The local board shall place on a
list providers submitting an application under
subsection (b)(1) and providers determined to be
initially eligible under subsection (b)(2), and retain
on the list providers determined to be subsequently
eligible under subsection (c), to receive funds as
described in subsection (a) for the provision of
training services in the local area served by the local
board. The list of providers shall be accompanied by
any performance information and program cost
information submitted under subsection (b) or (c) by
the provider.
[(2) Submission to state agency.--On placing or
retaining a provider on the list, the local board shall
submit, to the designated State agency described in
subsection (i), the list and the performance
information and program cost information referred to in
paragraph (1). If the agency determines, within 30 days
after the date of the submission, that the provider
does not meet the performance levels described in
subsection (c)(6) for the program (where applicable),
the agency may remove the provider from the list for
the program. The agency may not remove from the list an
agency submitting an application under subsection
(b)(1).
[(3) Identification of eligible providers.--A
provider who is placed or retained on the list under
paragraph (1), and is not removed by the designated
State agency under paragraph (2), for a program, shall
be considered to be identified as an eligible provider
of training services for the program.
[(4) Availability.--
[(A) State list.--The designated State agency
shall compile a single list of the providers
identified under paragraph (3) from all local
areas in the State and disseminate such list,
and the performance information and program
cost information described in paragraph (1), to
the one-stop delivery systems within the State.
Such list and information shall be made widely
available to participants in employment and
training activities authorized under section
134 and others through the one-stop delivery
system.
[(B) Selection from state list.--Individuals
eligible to receive training services under
section 134(d)(4) shall have the opportunity to
select any of the eligible providers, from any
of the local areas in the State, that are
included on the list described in subparagraph
(A) to provide the services, consistent with
the requirements of section 134.
[(5) Acceptance of individual training accounts by
other states.--States may enter into agreements, on a
reciprocal basis, to permit eligible providers of
training services in a State to accept individual
training accounts provided in another State.
[(f) Enforcement.--
[(1) Accuracy of information.--If the designated
State agency, after consultation with the local board
involved, determines that an eligible provider or
individual supplying information on behalf of the
provider intentionally supplies inaccurate information
under this section, the agency shall terminate the
eligibility of the provider to receive funds described
in subsection (a) for any program for a period of time,
but not less than years.
[(2) Noncompliance.--If the designated State agency,
or the local board working with the State agency,
determines that an eligible provider described in
subsection (a) substantially violates any requirement
under this Act, the agency, or the local board working
with the State agency, may terminate the eligibility of
such provider to receive funds described in subsection
(a) for the program involved or take such other action
as the agency or local board determines to be
appropriate.
[(3) Repayment.--A provider whose eligibility is
terminated under paragraph (1) or (2) for a program
shall be liable for repayment of all funds described in
subsection (a) received for the program during any
period of noncompliance described in such paragraph.
[(4) Construction.--This subsection and subsection
(g) shall be construed to provide remedies and
penalties that supplement, but do not supplant, other
civil and criminal remedies and penalties.
[(g) Appeal.--The Governor shall establish procedures for
providers of training services to appeal a denial of
eligibility by the local board or the designated State agency
under subsection (b), (c), or (e), a termination of eligibility
or other action by the board or agency under subsection (f), or
a denial of eligibility by a one-stop operator under subsection
(h). Such procedures shall provide an opportunity for a hearing
and prescribe appropriate time limits to ensure prompt
resolution of the appeal.
[(h) On-the-Job Training or Customized Training
Exception.--
[(1) In general.--Providers of on-the-job training or
customized training shall not be subject to the
requirements of subsections (a) through (e).
[(2) Collection and dissemination of information.--A
one-stop operator in a local area shall collect such
performance information from on-the-job training and
customized training providers as the Governor may
require, determine whether the providers meet such
performance criteria as the Governor may require, and
disseminate information identifying providers that meet
the criteria as eligible providers, and the performance
information, through the one-stop delivery system.
Providers determined to meet the criteria shall be
considered to be identified as eligible providers of
training services.
[(i) Administration.--The Governor shall designate a State
agency to make the determinations described in subsection
(e)(2), take the enforcement actions described in subsection
(f), and carry out other duties described in this section.]
(a) In General.--The Governor, after consultation with the
State board, shall establish criteria and procedures regarding
the eligibility of providers of training services described in
section 134(d)(4) (referred to in this section as training
services) to receive funds provided under section 133(b) for
the provision of training services.
(b) Criteria.--
(1) In general.--The criteria established by the
Governor pursuant to subsection (a) shall take into
account--
(A) the performance of providers of training
services with respect to the performance
measures described in section 136 or other
appropriate measures of performance outcomes
for those individuals receiving training
services under this subtitle (taking into
consideration the characteristics of the
population served and relevant economic
conditions);
(B) the need to ensure access to training
services throughout the State, including any
rural areas;
(C) the information such providers are
required to report to State agencies with
respect to Federal and State programs (other
than the program carried out under this
subtitle), including one-stop partner programs;
(D) the requirements for State licensing of
providers of training services, and the
licensing status of each provider of training
services if applicable;
(E) to the extent practicable, encouraging
the use of industry-recognized standards and
certification;
(F) the ability to provide training services
to hard-to-serve populations, including
individuals with disabilities; and
(G) such other factors as the Governor
determines are appropriate to ensure--
(i) the quality of services provided;
(ii) the accountability of the
providers;
(iii) that the one-stop centers in
the State will ensure that such
providers meet the needs of local
employers and participants;
(iv) the informed choice of
participants under chapter 5; and
(v) that the collection of
information required is not unduly
burdensome or costly to providers.
(2) Information and renewal.--The criteria
established by the Governor shall require that a
provider of training services submit appropriate,
accurate, and timely information to the State for
purposes of carrying out subsection (d). The criteria
shall also provide for annual review and renewal of
eligibility under this section for providers of
training services.
(3) Local criteria.--A local board in the State may
establish criteria in addition to the criteria
established by the Governor, or may require higher
levels of performance than required under the criteria
established by the Governor, for purposes of
determining the eligibility of providers of training
services to receive funds described in subsection (a)
to provide the services in the local area involved.
(c) Procedures.--The procedures established under
subsection (a) shall identify the application process for a
provider of training services to become eligible to receive
funds provided under section 133(b) for the provision of
training services, and identify the respective roles of the
State and local areas in receiving and reviewing the
applications and in making determinations of such eligibility
based on the criteria established under this section. The
procedures shall also establish a process for a provider of
training services to appeal a denial or termination of
eligibility under this section, that includes an opportunity
for a hearing and prescribes appropriate time limits to ensure
prompt resolution of the appeal.
(d) Information To Assist Participants in Choosing
Providers.--
(1) In general.--In order to facilitate and assist
participants in choosing employment and training
activities under chapter 5 and in choosing providers of
training services, the Governor shall ensure that an
appropriate list of providers determined to be eligible
under this section in the State, accompanied by
appropriate information provided by providers of
training services in the State in accordance with
subsection (b) and such other information as the
Governor determines is appropriate, including
information on program costs for participants in
applicable programs, is provided to the one-stop
delivery system in the State. The list and the
information shall be made available to such
participants and to members of the public through the
one-stop delivery system in the State.
(2) Special rule.--An entity that carries out
programs under the Act of August 16, 1937 (commonly
known as the National Apprenticeship Act, 50 Stat. 664,
chapter 663; 29 U.S.C. 50 et seq.) shall be included on
the list of eligible providers described in paragraph
(1) for so long as such entity remains certified by the
Department of Labor.
(e) Enforcement.--
(1) In general.--The criteria and procedures
established under this section shall provide the
following:
(A) Intentionally supplying inaccurate
information.--Upon a determination, by an
individual or entity specified in the criteria
or procedures, that a provider of training
services, or individual providing information
on behalf of the provider, intentionally
supplied inaccurate information under this
section, the eligibility of such provider to
receive funds under chapter 5 shall be
terminated for a period of time that is not
less than 2 years.
(B) Substantial violations.--Upon a
determination, by an individual or entity
specified in the criteria or procedures, that a
provider of training services substantially
violated any requirement under this title, the
eligibility of such provider to receive funds
under the program involved may be terminated,
or other appropriate action may be taken.
(C) Repayment.--A provider of training
services whose eligibility is terminated under
subparagraph (A) or (B) shall be liable for the
repayment of funds received under chapter 5
during a period of noncompliance described in
such subparagraph.
(2) Construction.--Paragraph (1) shall be construed
to provide remedies and penalties that supplement, but
do not supplant, other civil and criminal remedies and
penalties.
(f) Agreements With Other States.--States may enter into
agreements, on a reciprocal basis, to permit eligible providers
of training services to accept career scholarship accounts
provided in another State.
(g) Opportunity To Submit Comments.--In establishing
criteria, procedures, and information required under this
section, the Governor shall provide an opportunity for
interested members of the public to make recommendations and
submit comments regarding such criteria, procedures, and
information.
(h) Transition Period for Implementation.--The requirements
of this section shall be implemented not later than December
31, 2004. In order to facilitate early implementation of this
section, the Governor may establish transition procedures under
which providers eligible to provide training services under
chapter 5 as such chapter was in effect on the day before the
date of enactment of the Workforce Investment Act Amendments of
2003 may continue to be eligible to provide such services until
December 31, 2004, or until such earlier date as the Governor
determines to be appropriate.
(i) On-the-Job Training or Customized Training Exception.--
(1) In general.--Providers of on-the-job training or
customized training shall not be subject to the
requirements of subsections (a) through (h).
(2) Collection and dissemination of information.--A
one-stop operator in a local area shall collect such
performance information from on-the-job training and
customized training providers as the Governor may
require, determine whether the providers meet such
performance criteria as the Governor may require, and
disseminate information identifying providers that meet
the criteria as eligible providers, and the performance
information, through the one-stop delivery system.
Providers determined to meet the criteria shall be
considered to be identified as eligible providers of
training services.
* * * * * * *
[SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
[From funds allocated under paragraph (2)(A) or (3) of
section 128(b) to a local area, the local board for such area
shall identify eligible providers of youth activities by
awarding grants or contracts on a competitive basis, based on
the recommendations of the youth council and on the criteria
contained in the State plan, to the providers to carry out the
activities, and shall conduct oversight with respect to the
providers, in the local area.]
SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
(a) In General.--From the funds allocated under section
128(b) to a local area, the local board for such area shall
award grants or contracts on a competitive basis to providers
of youth activities identified based on the criteria in the
State plan described in section 112 and shall conduct oversight
with respect to such providers.
(b) Exceptions.--A local board may award grants or
contracts on a sole-source basis if such board determines there
is an insufficient number of eligible providers of youth
activities in the local area involved (such as a rural area)
for grants and contracts to be awarded on a competitive basis
under subsection (a).
* * * * * * *
SEC. 127. STATE ALLOTMENTS.
(a) In General.--The Secretary shall--
(1) for each fiscal year in which the amount
appropriated under section 137(a) exceeds
$1,000,000,000, reserve a portion determined under
subsection (b)(1)(A) of the amount appropriated under
section 137(a) for use under sections 167 (relating to
migrant and seasonal farmworker programs) and 169
(relating to youth) [opportunity] challenge grants; and
* * * * * * *
[(b) Allotment Among States.--
[(1) Youth activities.--
[(A) Youth opportunity grants.--
[(i) In general.--For each fiscal
year in which the amount appropriated
under section 137(a) exceeds
$1,000,000,000, the Secretary shall
reserve a portion of the amount to
provide youth opportunity grants and
other activities under section 169
(relating to youth opportunity grants)
and provide youth activities under
section 167 (relating to migrant and
seasonal farmworker programs).
[(ii) Portion.--The portion referred
to in clause (i) shall equal, for a
fiscal year--
[(I) except as provided in
subclause (II), the difference
obtained by subtracting
$1,000,000,000 from the amount
appropriated under section
137(a) for the fiscal year; or
[(II) for any fiscal year in
which the amount is
$1,250,000,000 or greater,
$250,000,000.
[(iii) Youth activities for
farmworkers.--From the portion
described in clause (i) for a fiscal
year, the Secretary shall make
available 4 percent of such portion to
provide youth activities under section
167.
[(iv) Role model academy project.--
From the portion described in clause
(i) for fiscal year 1999, the Secretary
shall make available such sums as the
Secretary determines to be appropriate
to carry out section 169(g).
[(B) Outlying areas.--
[(i) In general.--From the amount
made available under subsection (a)(2)
for a fiscal year, the Secretary shall
reserve not more than \1/4\ of 1
percent of the amount appropriated
under section 137(a) for the fiscal
year--
[(I) to provide assistance to
the outlying areas to carry out
youth activities and statewide
workforce investment
activities; and
[(II) for each of fiscal
years 1999, 2000, and 2001, to
carry out the competition
described in clause (ii),
except that the funds reserved
to carry out such clause for
any such fiscal year shall not
exceed the amount reserved for
the Freely Associated States
for fiscal year 1997, from
amounts reserved under sections
252(a) and 262(a)(1) of the Job
Training Partnership Act (as in
effect on the day before the
date of enactment of this Act).
[(ii) Limitation for freely
associated states.--
[(I) Competitive grants.--The
Secretary shall use funds
described in clause (i)(II) to
award grants to Guam, American
Samoa, the Commonwealth of the
Northern Mariana Islands, and
the Freely Associated States to
carry out youth activities and
statewide workforce investment
activities.
[(II) Award basis.--The
Secretary shall award grants
pursuant to subclause (I) on a
competitive basis and pursuant
to the recommendations of
experts in the field of
employment and training,
working through the Pacific
Region Educational Laboratory
in Honolulu, Hawaii.
[(III) Assistance
requirements.--Any Freely
Associated State that desires
to receive assistance under
this subparagraph shall submit
an application to the Secretary
and shall include in the
application for assistance--
[(aa) information
demonstrating that the
Freely Associated State
will meet all
conditions that apply
to States under this
title;
[(bb) an assurance
that, notwithstanding
any other provision of
this title, the Freely
Associated State will
use such assistance
only for the direct
provision of services;
and
[(cc) such other
information and
assurances as the
Secretary may require.
[(IV) Termination of
eligibility.--Notwithstanding
any other provision of law, the
Freely Associated States shall
not receive any assistance
under this subparagraph for any
program year that begins after
September 30, 2001.
[(V) Administrative costs.--
The Secretary may provide not
more than 5 percent of the
funds made available for grants
under subclause (I) to pay the
administrative costs of the
Pacific Region Educational
Laboratory in Honolulu, Hawaii,
regarding activities assisted
under this clause.
[(iii) Additional requirement.--The
provisions of Public Law 95-134,
permitting the consolidation of grants
by the outlying areas, shall not apply
to assistance provided to those areas,
including the Freely Associated States,
under this subparagraph.
[(C) States.--
[(i) In general.--After determining
the amounts to be reserved under
subparagraph (A) (if any) and
subparagraph (B), the Secretary shall--
[(I) from the amount referred
to in subsection (a)(2) for a
fiscal year, make available not
more than 1.5 percent to
provide youth activities under
section 166 (relating to Native
Americans); and
[(II) allot the remainder of
the amount referred to in
subsection (a)(2) for a fiscal
year to the States pursuant to
clause (ii) for youth
activities and statewide
workforce investment
activities.
[(ii) Formula.--Subject to clauses
(iii) and (iv), of the remainder--
[(I) 33\1/3\ percent shall be
allotted on the basis of the
relative number of unemployed
individuals in areas of
substantial unemployment in
each State, compared to the
total number of unemployed
individuals in areas of
substantial unemployment in all
States;
[(II) 33\1/3\ percent shall
be allotted on the basis of the
relative excess number of
unemployed individuals in each
State, compared to the total
excess number of unemployed
individuals in all States; and
[(III) 33\1/3\ percent shall
be allotted on the basis of the
relative number of
disadvantaged youth in each
State, compared to the total
number of disadvantaged youth
in all States, except as
described in clause (iii).
[(iii) Calculation.--In determining
an allotment under clause (ii)(III) for
any State in which there is a local
area designated under section
116(a)(2)(B) (relating to the area
served by a rural concentrated
employment program grant recipient),
the allotment shall be based on the
higher of--
[(I) the number of
individuals who are age 16
through 21 in families with an
income below the low-income
level in such area; or
[(II) the number of
disadvantaged youth in such
area.
[(iv) Minimum and maximum percentages
and minimum allotments.--In making
allotments under this subparagraph, the
Secretary shall ensure the following:
[(I) Minimum percentage and
allotment.--Subject to
subclause (IV), the Secretary
shall ensure that no State
shall receive an allotment for
a fiscal year that is less than
the greater of--
[(aa) an amount based
on 90 percent of the
allotment percentage of
the State for the
preceding fiscal year;
or
[(bb) 100 percent of
the total of the
allotments of the State
under sections 252 and
262 of the Job Training
Partnership Act (as in
effect on the day
before the date of
enactment of this Act)
for fiscal year 1998.
[(II) Small state minimum
allotment.--Subject to
subclauses (I), (III), and
(IV), the Secretary shall
ensure that no State shall
receive an allotment under this
subparagraph that is less than
the total of--
[(aa) \3/10\ of 1
percent of
$1,000,000,000 of the
remainder described in
clause (i)(II) for the
fiscal year; and
[(bb) if the
remainder described in
clause (i)(II) for the
fiscal year exceeds
$1,000,000,000, \2/5\
of 1 percent of the
excess.
[(III) Maximum percentage.--
Subject to subclause (I), the
Secretary shall ensure that no
State shall receive an
allotment percentage for a
fiscal year that is more than
130 percent of the allotment
percentage of the State for the
preceding fiscal year.
[(IV) Minimum funding.--In
any fiscal year in which the
remainder described in clause
(i)(II) does not exceed
$1,000,000,000, the minimum
allotments under subclauses (I)
and (II) shall be calculated by
the methodology for calculating
the corresponding allotments
under parts B and C of title II
of the Job Training Partnership
Act, as in effect on July 1,
1998.
[(2) Definitions.--For the purpose of the formula
specified in paragraph (1)(C):
[(A) Allotment percentage.--The term
``allotment percentage'', used with respect to
fiscal year 2000 or a subsequent fiscal year,
means a percentage of the remainder described
in paragraph (1)(C)(i)(II) that is received
through an allotment made under paragraph
(1)(C) for the fiscal year. The term, used with
respect to fiscal year 1998 or 1999, means the
percentage of the amounts allotted to States
under sections 252(b) and 262(a) of the Job
Training Partnership Act (as in effect on the
day before the date of enactment of this Act)
that is received under such section by the
State involved for fiscal year 1998 or 1999.
[(B) Area of substantial unemployment.--The
term ``area of substantial unemployment'' means
any area that is of sufficient size and scope
to sustain a program of workforce investment
activities carried out under this subtitle and
that has an average rate of unemployment of at
least 6.5 percent for the most recent 12
months, as determined by the Secretary. For
purposes of this subparagraph, determinations
of areas of substantial unemployment shall be
made once each fiscal year.
[(C) Disadvantaged youth.--Subject to
paragraph (3), the term ``disadvantaged youth''
means an individual who is age 16 through 21
who received an income, or is a member of a
family that received a total family income,
that, in relation to family size, does not
exceed the higher of--
[(i) the poverty line; or
[(ii) 70 percent of the lower living
standard income level.
[(D) Excess number.--The term ``excess
number'' means, used with respect to the excess
number of unemployed individuals within a
State, the higher of--
[(i) the number that represents the
number of unemployed individuals in
excess of 4.5 percent of the civilian
labor force in the State; or
[(ii) the number that represents the
number of unemployed individuals in
excess of 4.5 percent of the civilian
labor force in areas of substantial
unemployment in such State.
[(E) Low-income level.--The term ``low-income
level'' means $7,000 with respect to income in
1969, and for any later year means that amount
that bears the same relationship to $7,000 as
the Consumer Price Index for that year bears to
the Consumer Price Index for 1969, rounded to
the nearest $1,000.
[(3) Special rule.--For the purpose of the formula
specified in paragraph (1)(C), the Secretary shall, as
appropriate and to the extent practicable, exclude
college students and members of the Armed Forces from
the determination of the number of disadvantaged youth.
[(4) Definition.--In this subsection, the term
``Freely Associated State'' means the Republic of the
Marshall Island the Federated States of Micronesia, and
the Republic of Palau.]
(b) Allotment Among States.--
(1) Youth activities.--
(A) Youth challenge grants.--
(i) In general.--For each fiscal year
in which the amount appropriated under
section 137(a) exceeds $1,000,000,000,
the Secretary shall reserve a portion
of the amount to provide youth
challenge grants and other activities
under section 169 (relating to youth
challenge grants) and provide youth
activities under section 167 (relating
to migrant and seasonal farmworker
programs).
(ii) Portion.--The portion referred
to in clause (i) shall equal, for a
fiscal year--
(I) except as provided in
subclause (II), the difference
obtained by subtracting
$1,000,000,000 from the amount
appropriated under section
137(a) for the fiscal year; or
(II) for any fiscal year in
which the amount is
$1,250,000,000 or greater,
$250,000,000.
(iii) Youth activities for
farmworkers.--The Secretary shall
reserve the greater of $10,000,000 or 4
percent of the portion described in
clause (i) for a fiscal year to provide
youth activities under section 167.
(iv) Native americans.--From the
remainder of the amount appropriated
under section 137(a) for each fiscal
year the Secretary shall reserve not
more than 1\1/2\ percent of such amount
to provide youth activities under
section 166 (relating to Native
Americans).
(B) Outlying areas.--
(i) In general.--From the amount made
available under subsection (a)(2) for
each fiscal year the Secretary shall
reserve not more than \1/4\ of 1
percent of the amount appropriated
under section 137(a) for the fiscal
year to provide assistance to the
outlying areas to carry out youth
activities and statewide workforce
investment activities.
(ii) Limitation for freely associated
states.--
(I) Competitive grants.--The
Secretary shall use funds
described in clause (i) to
award grants to Guam, American
Samoa, the Commonwealth of the
Northern Mariana Islands, and
the Freely Associated States to
carry out youth activities and
statewide workforce investment
activities.
(II) Award basis.--The
Secretary shall award grants
pursuant to subclause (I) on a
competitive basis and pursuant
to the recommendations of
experts in the field of
employment and training,
working through the Pacific
Region Educational Laboratory
in Honolulu, Hawaii.
(III) Assistance
requirements.--Any Freely
Associated State that desires
to receive assistance under
this subparagraph shall submit
an application to the Secretary
and shall include in the
application for assistance--
(aa) information
demonstrating that the
Freely Associated State
will meet all
conditions that apply
to States under this
title;
(bb) an assurance
that, notwithstanding
any other provision of
this title, the Freely
Associated State will
use such assistance
only for the direct
provision of services;
and
(cc) such other
information and
assurances as the
Secretary may require.
(IV) Administrative costs.--
The Secretary may provide not
more than 5 percent of the
funds made available for grants
under subclause (I) to pay the
administrative costs of the
Pacific Region Educational
Laboratory in Honolulu, Hawaii,
regarding activities assisted
under this clause.
(iii) Additional requirement.--The
provisions of Public Law 95-134,
permitting the consolidation of grants
by the outlying areas, shall not apply
to assistance provided to those areas,
including the Freely Associated States,
under this subparagraph.
(C) States.--
(i) In general.--From the remainder
of the amount appropriated under
section 137(a) for a fiscal year that
exists after the Secretary determines
that amounts to be reserved under
subparagraphs (A) and (B), the
Secretary shall allot to the States--
(I) an amount of the
remainder that is less than or
equal to the total amount that
was allotted to States for
fiscal year 2003 under section
127(b)(1)(C) of this Act (as in
effect on the day before the
date of enactment of the
Workforce Investment Act
Amendments of 2003), in
accordance with the
requirements of such section
127(b)(1)(C); and
(II) the amount of the
remainder, if any, in excess of
the amount referred to in
subclause (I), in accordance
with clause (ii).
(ii) Formula.--Subject to clauses
(iii) and (iv), of the amount described
in clause (i)(II)--
(I) 33\1/3\ percent shall be
allotted on the basis of the
relative number of individuals
in the civilian labor force who
are ages 16 through 21 in each
State, compared to the total
number of individuals in the
civilian labor force who are
ages 16 through 21 in all
States;
(II) 33\1/3\ percent shall be
allotted on the basis of the
relative number of unemployed
individuals in each State,
compared to the total number of
unemployed individuals in all
States; and
(III) 33\1/3\ percent shall
be allotted on the basis of the
relative number of
disadvantaged youth who are
ages 16 through 21 in each
State, compared to the total
number of disadvantaged youth
who are ages 16 through 21 in
all States.
(iii) Minimum and maximum
percentages.--
(I) Minimum percentage.--The
Secretary shall ensure that no
State shall receive an
allotment percentage under this
subparagraph for a fiscal year
that is less than 90 percent of
the allotment percentage of the
State for the preceding fiscal
year.
(II) Maximum percentage.--
Subject to subclause (I), the
Secretary shall ensure that no
State shall receive an
allotment percentage under this
subparagraph for a fiscal year
that is more than 130 percent
of the allotment percentage of
the State for the preceding
fiscal year.
(iv) Small state minimum allotment.--
Subject to clause (iii), the Secretary
shall ensure that no State shall
receive an allotment under this
subparagraph that is less than the
total of--
(I) \3/10\ of 1 percent of
$1,000,000,000 of the remainder
described in clause (i) for the
fiscal year; and
(II) if the remainder
described in clause (i) for the
fiscal year exceeds
$1,000,000,000, \2/5\ of 1
percent of the excess.
(2) Definitions.--For the purposes of paragraph (1):
(A) Allotment percentage.--The term
``allotment percentage'', used with respect to
fiscal year 2004 or a subsequent fiscal year,
means a percentage of the remainder described
in paragraph (1)(C)(i) that is received by the
State involved through an allotment made under
this subsection for the fiscal year. The term,
used with respect to fiscal year 2003, means
the percentage of the amounts allotted to
States under this chapter (as in effect on the
day before the date of enactment of the
Workforce Investment Act Amendments of 2003)
that is received by the State involved for
fiscal year 2003.
(B) Disadvantaged youth.--Subject to
paragraph (3), the term ``disadvantaged youth''
means an individual who is age 16 through 21
who received an income, or is a member of a
family that received a total family income,
that, in relation to family size, does not
exceed the higher of--
(i) the poverty line; or
(ii) 70 percent of the lower living
standard income level.
(C) Freely associated state.--The term
``Freely Associated State'' means the Republic
of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau.
(3) Special rule.--For purposes of the formula
specified in paragraph (1)(C), the Secretary shall, as
appropriate and to the extent practicable, exclude
college students and members of the Armed Forces from
the determination of the number of disadvantaged youth.
* * * * * * *
(c) Reallotment.--
* * * * * * *
[(2) Amount.--The amount available for reallotment
for a program year is equal to the amount by which the
unobligated balance of the State allotment under this
section for such activities, at the end of the program
year prior to the program year for which the
determination under this paragraph is made, exceeds 20
percent of such allotment for the prior program year.]
(2) Amount.--The amount available for reallotment for
a program year is equal to the amount by which the
unexpended balance at the end of the program year prior
to the program year for which the determination is made
exceeds 30 percent of the total amount of funds
available to the State under this section during such
prior program year (including amounts allotted to the
State in all prior program years that remained
available). For purposes of this paragraph, the
unexpended balance is the amount that is the difference
between--
(A) the total amount of funds available to
the State under this section during the program
year prior to the program year for which the
determination is made (including amounts
allotted to the State in all prior program
years that remained available); and
(B) the accrued expenditures during such
prior program year.
(3) Reallotment.--In making reallotments to eligible
States of amounts available pursuant to paragraph (2)
for a program year, the Secretary shall allot to each
eligible State an amount based on the relative amount
allotted to such State under this section for such
activities [for the prior program year] for the program
year for which the determination is made, as compared
to the total amount allotted to all eligible States
under this section for such activities for [such prior
program year] such program year.
[(4) Eligibility.--For purposes of this subsection,
an eligible State means a State that has obligated at
least 80 percent of the State allotment under this
section for such activities for the program year prior
to the program year for which the determination under
paragraph (2) is made.]
(4) Eligibility.--For purposes of this subsection, an
eligible State means a State that does not have an
amount available for reallotment under paragraph (2)
for the program year for which the determination under
paragraph (2) is made.
(5) Procedures.--The Governor of each State shall
prescribe uniform procedures for the [obligation]
accrued expenditure of funds by local areas within the
State in order to avoid the requirement that funds be
made available for reallotment under this subsection.
The Governor shall further prescribe equitable
procedures for making funds available from the State
and local areas in the event that a State is required
to make funds available for reallotment under this
subsection.
* * * * * * *
SEC. 128. WITHIN STATE ALLOCATIONS.
[(a) Reservations for State Activities.--
[(1) In general.--The Governor of a State shall
reserve not more than 15 percent of each of the amounts
allotted to the State under section 127(b)(1)(C) and
paragraphs (1)(B) and (2)(B) of section 132(b) for a
fiscal year for statewide workforce investment
activities.
[(2) Use of funds.--Regardless of whether the
reserved amounts were allotted under section
127(b)(1)(C), or under paragraph (1)(B) or (2)(B) of
section 132(b), the Governor may use the reserved
amounts to carry out statewide youth activities
described in section 129(b) or statewide employment and
training activities, for adults or for dislocated
workers, described in paragraph (2)(B) or (3) of
section 134(a).]
(a) Reservations for Statewide Activities.--
(1) In general.--The Governor of a State shall
reserve not more than 15 percent of each of the amounts
allotted to the State under section 127(b)(1)(C) and
paragraphs (1)(B) and (2)(B) of section 132(b) for a
fiscal year for statewide workforce investment
activities.
(2) Use of funds.--Regardless of whether the reserved
amounts were allotted under section 127(b)(1)(C), or
under paragraph (1)(B) or (2)(B) of section 132(b), the
Governor may use the reserved amounts to carry out
statewide activities under section 129(b) or statewide
employment and training activities, for adults or
dislocated workers, under section 134(a).
[(b) Within State Allocation.--
[(1) Methods.--The Governor, acting in accordance
with the State plan, and after consulting with chief
elected officials in the local areas, shall allocate
the funds that are allotted to the State for youth
activities and statewide workforce investment
activities under section 127(b)(1)(C) and are not
reserved under subsection (a), in accordance with
paragraph (2) or (3).
[(2) Formula allocation.--
[(A) Youth activities.--
[(i) Allocation.--In allocating the
funds described in paragraph (1) to
local areas, a State may allocate--
[(I) 33\1/3\ percent of the
funds on the basis described in
section 127(b)(1)(C)(ii)(I);
[(II) 33\1/3\ percent of the
funds on the basis described in
section 127(b)(1)(C)(ii)(II);
and
[(III) 33\1/3\ percent of the
funds on the basis described in
clauses (ii)(III) and (iii) of
section 127(b)(1)(C).
[(ii) Minimum percentage.--Effective
at the end of the second full fiscal
year after the date on which a local
area is designated under section 116,
the local area shall not receive an
allocation percentage for a fiscal year
that is less than 90 percent of the
average allocation percentage of the
local area for the 2 preceding fiscal
years. Amounts necessary for increasing
such allocations to local areas to
comply with the preceding sentence
shall be obtained by ratably reducing
the allocations to be made to other
local areas under this subparagraph.
[(iii) Definition.--The term
``allocation percentage'', used with
respect to fiscal year 2000 or a
subsequent fiscal year, means a
percentage of the funds referred to in
clause (i), received through an
allocation made under this
subparagraph, for the fiscal year.
[(B) Application.--For purposes of carrying
out subparagraph (A)--
[(i) references in section 127(b) to
a State shall be deemed to be
references to a local area;
[(ii) references in section 127(b) to
all States shall be deemed to be
references to all local areas in the
State involved; and
[(iii) except as described in clause
(i), references in section 127(b)(1) to
the term ``excess number'' shall be
considered to be references to the term
as defined in section 127(b)(2).
[(3) Youth discretionary allocation.--In lieu of
making the allocation described in paragraph (2)(A), in
allocating the funds described in paragraph (1) to
local areas, a State may distribute--
[(A) a portion equal to not less than 70
percent of the funds in accordance with
paragraph (2)(A); and
[(B) the remaining portion of the funds on
the basis of a formula that--
[(i) incorporates additional factors
(other than the factors described in
paragraph (2)(A)) relating to--
[(I) excess youth poverty in
urban, rural, and suburban
local areas; and
[(II) excess unemployment
above the State average in
urban, rural, and suburban
local areas; and
[(ii) was developed by the State
board and approved by the Secretary as
part of the State plan.
[(4) Limitation.--
[(A) In general.--Of the amount allocated to
a local area under this subsection and section
133(b) for a fiscal year, not more than 10
percent of the amount may be used by the local
board for the administrative cost of carrying
out local workforce investment activities
described in subsection (d) or (e) of section
134 or in section 129(c).
[(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may
be used for the administrative cost of any of
the local workforce investment activities
described in subsection (d) or (e) of section
134 or in section 129(c), regardless of whether
the funds were allocated under this subsection
or section 133(b).
[(C) Regulations.--The Secretary, after
consulting with the Governors, shall develop
and issue regulations that define the term
``administrative cost'' for purposes of this
title. Such definition shall be consistent with
generally accepted accounting principles.]
(b) Within State Allocations.--
(1) In general.--Of the amount allotted to the State
under section 127(b)(1)(C) and not reserved under
subsection (a)(1)--
(A) a portion equal to not less than 80
percent of such amount shall be allocated by
the Governor to local areas in accordance with
paragraph (2); and
(B) a portion equal to not more than 20
percent of such amount may be allocated by the
Governor to local areas in accordance with
paragraph (3).
(2) Established formula.--
(A) In general.--Of the portion described in
paragraph (1)(A), the Governor shall allocate--
(i) 33\1/3\ percent on the basis of
the relative number of individuals in
the civilian labor force who are ages
16 through 21 in each local area,
compared to the total number of
individuals in the civilian labor force
who are ages 16 through 21 in all local
areas in the State;
(ii) 33\1/3\ percent on the basis of
the relative number of unemployed
individuals in each local area,
compared to the total number of
unemployed individuals in all local
areas in the State; and
(iii) 33\1/3\ percent on the basis of
the relative number of disadvantaged
youth who are ages 16 through 21 in
each local area, compared to the total
number of disadvantaged youth who are
ages 16 through 21 in all local areas
in the State.
(B) Minimum and maximum percentages.--
(i) Minimum percentage.--The Governor
shall ensure that no local area shall
receive an allocation percentage under
this paragraph for a fiscal year that
is less than 90 percent of the
allocation percentage of the local area
for the preceding fiscal year.
(ii) Maximum percentage.--Subject to
clause (i), the Governor shall ensure
that no local area shall receive an
allocation percentage under this
paragraph for a fiscal year that is
more than 130 percent of the allocation
percentage of the local area for the
preceding fiscal year.
(C) Definitions.--In this paragraph:
(i) Allocation percentage.--The term
``allocation percentage'', used with
respect to fiscal year 2004 or a
subsequent fiscal year, means a
percentage of the portion described in
paragraph (1)(A) that is received by
the local area involved through an
allocation made under this paragraph
for the fiscal year. The term, used
with respect to fiscal year 2003, means
the percentage of the amounts allocated
to local areas under this chapter (as
in effect on the day before the date of
enactment of the Workforce Investment
Act Amendments of 2003) that is
received by the local area involved for
fiscal year 2003.
(ii) Disadvantaged youth.--The term
``disadvantaged youth'' means an
individual who--
(I) is age 16 through 21;
(II) is not a college student
or member of the Armed Forces;
and
(III) received an income, or
is a member of a family that
received a total family income,
that, in relation to family
size, does not exceed the
higher of--
(aa) the poverty
line; or
(bb) 70 percent of
the lower living
standard income level.
(3) Youth discretionary allocation.--The Governor may
allocate the portion described in paragraph (1)(B) to
local areas where there are a significant number of
eligible youth, after consultation with the State board
and local boards.
(4) Local administrative cost limit.--
(A) In general.--Of the amount allocated to a
local area under this subsection and section
133(b) for a fiscal year, not more than 10
percent of the amount may be used by the local
board involved for the administrative costs of
carrying out local workforce investment
activities under this chapter or chapter 5.
(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may
be used for the administrative costs of any of
the local workforce investment activities
described in this chapter or chapter 5,
regardless of whether the funds were allocated
under this subsection or section 133(b).
(c) Reallocation Among Local Areas.--
(1) In general.--The Governor may, in accordance with
this subsection, reallocate to eligible local areas
within the State amounts that are allocated under
[paragraph (2)(A) or (3) of] subsection (b) for youth
activities and that are available for reallocation.
[(2) Amount.--The amount available for reallocation
for a program year is equal to the amount by which the
unobligated balance of the local area allocation under
paragraph (2)(A) or (3) of subsection (b) for such
activities, at the end of the program year prior to the
program year for which the determination under this
paragraph is made exceeds 20 percent of such allocation
for the prior program year.]
(2) Amount.--The amount available for reallocation
for a program year is equal to the amount by which the
unexpended balance at the end of the program year prior
to the program year for which the determination is made
exceeds 30 percent of the total amount of funds
available to the local area under this section during
such prior program year (including amounts allocated to
the local area in all prior program years that remained
available). For purposes of this paragraph, the
unexpended balance is the amount that is the difference
between--
(A) the total amount of funds available to
the local area under this section during the
program year prior to the program year for
which the determination is made (including
amounts allocated to the local area in all
prior program years that remained available);
and
(B) the accrued expenditures during such
prior program year.
(3) Reallocation.--In making reallocations to
eligible local areas of amounts available pursuant to
paragraph (2) for a program year, the Governor shall
allocate to each eligible local area within the State
an amount based on the relative amount allocated to
such local area under [subsection (b)(3)] subsection
(b) for such activities [for the prior program year]
for the program year for which the determination is
made, as compared to the total amount allocated to all
eligible local areas in the State under [subsection
(b)(3)] subsection (b) for such activities for [such
prior program year] such program year. [For purposes of
this paragraph, local areas that received allocations
under subsection (b)(2)(A) for the prior program year
shall be treated as if the local areas received
allocations under subsection (b)(3) for such year.]
[(4) Eligibility.--For purposes of this subsection,
an eligible local area means a local area that has
obligated at least 80 percent of the local area
allocation under paragraph (2)(A) or (3) of subsection
(b) for such activities, for the program year prior to
the program year for which the determination under
paragraph (2) is made.]
(4) Eligibility.--For purposes of this subsection, an
eligible local area means a local area that does not
have an amount available for reallocation under
paragraph (2) for the program year for which the
determination under paragraph (2) is made.
* * * * * * *
SEC. 129. USE OF FUNDS FOR YOUTH ACTIVITIES.
[(a) Purposes.--The purposes of this section are--
[(1) to provide, to eligible youth seeking assistance
in achieving academic and employment success, effective
and comprehensive activities, which shall include a
variety of options for improving educational and skill
competencies and provide effective connections to
employers;
[(2) to ensure on-going mentoring opportunities for
eligible youth with adults committed to providing such
opportunities;
[(3) to provide opportunities for training to
eligible youth;
[(4) to provide continued supportive services for
eligible youth;
[(5) to provide incentives for recognition and
achievement to eligible youth; and
[(6) to provide opportunities for eligible youth in
activities related to leadership, development,
decisionmaking, citizenship, and community service.]
(a) Youth Participant Eligibility.--
(1) Eligibility.--
(A) In general.--To be eligible to
participate in activities carried out under
this chapter during any program year an
individual shall, at the time the eligibility
determination is made, be an out-of-school
youth or an in-school youth.
(B) Out-of-school youth.--In this title the
term ``out-of-school youth'' means an
individual who is--
(i) not younger than age 16 (subject
to paragraph (3)) nor older than age
21; and
(ii) one of the following:
(I) A school dropout.
(II) A youth who is within
the age for compulsory school
attendance, but has not
attended school for at least 1
school year calendar quarter.
(III) A recipient of a
secondary school diploma or its
equivalent who is--
(aa) deficient in
basic skills, including
limited English
proficiency;
(bb) a low-income
individual; and
(cc) not attending
any school.
(IV) Subject to the juvenile
justice system or ordered by a
court to an alternative school.
(V) A low-income individual
who is pregnant or parenting
and not attending any school.
(VI) A youth who is not
attending school or a youth
attending an alternative
school, who is homeless, a
runaway, a foster child, a
child eligible for assistance
under section 477 of the Social
Security Act, or in an out-of-
home placement.
(VII) A low-income individual
who requires additional
assistance to complete an
educational program or to
secure or hold employment.
(C) In-school youth.--In this section the
term ``in-school youth'' means an individual
who is--
(i) not younger than age 14 nor older
than age 21;
(ii) a low-income individual; and
(iii) one or more of the following:
(I) Deficient in basic
literacy skills, including
limited English proficiency.
(II) Homeless, a runaway, a
foster child, a child eligible
for assistance under section
477 of the Social Security Act,
or in an out-of-home placement.
(III) Pregnant or parenting.
(IV) An offender (other than
an individual described in
subparagraph (B)(ii)(IV)).
(V) An individual who
requires additional assistance
to complete an educational
program or to secure or hold
employment.
(2) Exception.--Not more than 5 percent of the
individuals assisted under this section in each local
area, in the case of individuals for whom low income is
a requirement for eligibility under this section, may
be individuals who are not low income.
(3) Limitations on activities for in-school youth.--
(A) In general.--For any program year, not
more than 60 percent of the funds available for
statewide activities under subsection (b), and
not more than 60 percent of funds available to
local areas under subsection (c), may be used
to provide activities for in-school youth
meeting the requirements of paragraph (1)(B).
(B) Exception.--A State that receives a
minimum allotment under section 127(b)(1) in
accordance with section 127(b)(1)(C)(iv) or
under section 132(b)(1) in accordance with
section 132(b)(1)(B)(iv)(II) may increase the
percentage described in subparagraph (A) for a
local area in the State, if--
(i) after an analysis of the eligible
youth population in the local area, the
State determines that the local area
will be unable to use at least 40
percent of the funds available for
activities under subsection (b) or (c)
to serve out-of-school youth due to a
low number of out-of-school youth; and
(ii)(I) the State submits to the
Secretary, for the local area, a
request including a proposed increased
percentage for purposes of subparagraph
(A), and the summary of the eligible
youth population analysis; and
(II) the request is approved by the
Secretary.
(4) Consistency with compulsory school attendance
laws.--In providing assistance under this section to an
individual who is required to attend school under
applicable State compulsory school attendance laws, the
priority in providing such assistance shall be for the
individual to attend school regularly.
[(b) Statewide Youth Activities.--
[(1) In general.--Funds reserved by a Governor for a
State as described in sections 128(a) and 133(a)(1)--
[(A) shall be used to carry out the statewide
youth activities described in paragraph (2);
and
[(B) may be used to carry out any of the
statewide youth activities described in
paragraph (3),
regardless of whether the funds were allotted to the
State under section 127(b)(1) or under paragraph (1) or
(2) of section 132(b).
[(2) Required statewide youth activities.--A State
shall use funds reserved as described in sections
128(a) and 133(a)(1) (regardless of whether the funds
were allotted to the State under section 127(b)(1) or
paragraph (1) or (2) of section 132(b)) to carry out
statewide youth activities, which shall include--
[(A) disseminating a list of eligible
providers of youth activities described in
section 123;
[(B) carrying out activities described in
clauses (ii) through (vi) of section
134(a)(2)(B), except that references in such
clauses to activities authorized under section
134 shall be considered to be references to
activities authorized under this section; and
[(C) providing additional assistance to local
areas that have high concentrations of eligible
youth to carry out the activities described in
subsection (c).
[(3) Allowable statewide youth activities.--A State
may use funds reserved as described in sections 128(a)
and 133(a)(1) (regardless of whether the funds were
allotted to the State under section 127(b)(1) or
paragraph (1) or (2) of section 132(b)) to carry out
additional statewide youth activities, which may
include--
[(A) carrying out activities described in
clauses (i), (ii), (iii), (iv)(II), and
(vi)(XII) of section 134(a)(3)(A), except that
references in such clauses to activities
authorized under section 134 shall be
considered to be references to activities
authorized under this section; and
[(B) carrying out, on a statewide basis,
activities described in subsection (c).
[(4) Prohibition.--No funds described in this
subsection or section 134(a) shall be used to develop
or implement education curricula for school systems in
the State.]
(b) Statewide Activities.--
(1) In general.--Funds reserved by a Governor for a
State as described in sections 128(a) and 133(a)(1)
shall be used, regardless of whether the funds were
allotted to the State under section 127(b)(1)(C) or
under paragraph (1)(B) or (2)(B) of section 132(b) for
statewide activities, which may include--
(A) conducting--
(i) evaluations under section 136(e)
of activities authorized under this
chapter and chapter 5 in coordination
with evaluations carried out by the
Secretary under section 172;
(ii) research; and
(iii) demonstration projects;
(B) providing incentive grants to local areas
for regional cooperation among local boards
(including local boards in a designated region
as described in section 116(c)), for local
coordination of activities carried out under
this title, and for performance by local areas
as described in section 136(i)(2);
(C) providing technical assistance and
capacity building activities to local areas,
one-stop operators, one-stop partners, and
eligible providers, including the development
and training of staff, the development of
exemplary program activities, the provision of
technical assistance to local areas that fail
to meet local performance measures described in
section 136(c), and the provision of technology
to facilitate remote access to services
provided through one-stop delivery systems;
(D) operating a fiscal and management
accountability information system under section
136(f);
(E) carrying out monitoring and oversight of
activities carried out under this chapter and
chapter 5, which may include a review comparing
the services provided to male and female youth;
(F) providing additional assistance to local
areas that have high concentrations of eligible
youth;
(G) supporting the development of alternative
programs and other activities that enhance the
choices available to eligible youth and
encourage such youth to reenter secondary
education, enroll in postsecondary education
and advanced training, and obtain career path
employment; and
(H) supporting the provision of core services
described in section 134(d)(2) in the one-stop
delivery system in the State.
(2) Limitation.--Not more than 5 percent of the funds
allotted to a State under section 127(b)(1)(C) shall be
used by the State for administrative activities carried
out under this subsection or section 134(a).
(3) Prohibition.--No funds described in this
subsection may be used to develop or implement
education curricula for school systems in the State.
(c) Local Elements and Requirements.--
(1) Program design.--Funds allocated to a local area
for eligible youth under [paragraph (2)(A) or (3), as
appropriate, of] section 128(b) shall be used to carry
out, for eligible youth, programs that--
(A) provide an objective assessment of the
academic levels, skill levels, and service
needs of each participant, which assessment
shall include a review of basic skills,
occupational skills, prior work experience,
employability, interests, aptitudes (including
interests and aptitudes for nontraditional
jobs), supportive service needs, and
developmental needs of such participant, except
that a new assessment of a participant is not
required if the provider carrying out such a
program determines it is appropriate to use a
recent assessment of the participant conducted
pursuant to another education or training
program;
(B) develop service strategies for each
participant that are directly linked to 1 or
more of the performance measures relating to
this chapter under section 136, and that shall
identify an employment goal (including, in
appropriate circumstances, nontraditional
employment), appropriate achievement
objectives, and appropriate services for the
participant taking into account the assessment
conducted pursuant to subparagraph (A), except
that a new service strategy for a participant
is not required if the provider carrying out
such a program determines it is appropriate to
use a recent service strategy developed for the
participant under another education or training
program; and
(C) provide--
(i) activities leading to the
attainment of a secondary school
diploma or its equivalent, or another
recognized credential;
[(i)] (ii) preparation for
postsecondary educational opportunities
and advanced training, in appropriate
cases;
[(ii)] (iii) strong linkages between
academics that lead to the attainment
of recognized credentials and
occupational learning instruction based
on State academic content and student
academic achievement standards
established under section 1111 of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6311);
[(iii)] (iv) preparation for
unsubsidized employment opportunities,
in appropriate cases;
[(iv) effective connections to
intermediaries with strong links to--
[(I) the job market; and
[(II) local and regional
employers.]
(v) effective connections to all
employers, including small employers,
in sectors of the local and regional
labor markets that are experiencing
high growth in employment
opportunities.
(2) Program elements.--The programs described in
paragraph (1) shall provide elements consisting of--
(A) tutoring, study skills training, and
instruction, leading to completion of
[secondary school, including dropout prevention
strategies] the requirements for a secondary
school diploma or its recognized equivalent
(including recognized alternative standards for
individuals with disabilities) or for another
recognized credential, including dropout
prevention strategies;
(B) alternative secondary school services, as
appropriate, with a priority on exposing youth
to technology and nontraditional jobs;
* * * * * * *
(F) leadership development opportunities,
which may include community service and peer-
centered activities enouraging responsibility
and other positive social behaviors [during
non-school hours], as appropriate;
* * * * * * *
(I) followup services for not less than 12
months after the completion of participation,
as appropriate; [and]
(J) comprehensive guidance and counseling,
which may include drug and alcohol abuse
counseling and referral, as appropriate[.];
(K) on-the-job training opportunities;
(L) opportunities to acquire financial
literacy skills;
(M) entrepreneurial skills training and
microenterprise services; and
(N) information about average wages for a
range of jobs available in the local area,
including technology jobs.
* * * * * * *
[(4) Priority.--
[(A) In general.--At a minimum, 30 percent of
the funds described in paragraph (1) shall be
used to provide youth activities to out-of-
school youth.
[(B) Exception.--A State that receives a
minimum allotment under section 127(b)(1) in
accordance with section 127(b)(1)(C)(iv)(II) or
under section 132(b)(1) in accordance with
section 132(b)(1)(B)(iv)(II) may reduce the
percentage described in subparagraph (A) for a
local area in the State, if--
[(i) after an analysis of the
eligible youth population in the local
area, the State determines that the
local area will be unable to meet the
percentage described in subparagraph
(A) due to a low number of out-of-
school youth; and
[(ii)(I) the State submits to the
Secretary, for the local area, a
request including a proposed reduced
percentage for purposes of subparagraph
(A), and the summary of the eligible
youth population analysis; and
[(II) the request is approved by the
Secretary.
[(5) Exceptions.--Not more than 5 percent of
participants assisted under this section in each local
area may be individuals who do not meet the minimum
income criteria to be considered eligible youth, if
such individuals are within one or more of the
following categories:
[(A) Individuals who are school dropouts.
[(B) Individuals who are basic skills
deficient.
[(C) Individuals with educational attainment
that is one or more grade levels below the
grade level appropriate to the age of the
individuals.
[(D) Individuals who are pregnant or
parenting.
[(E) Individuals with disabilities, including
learning disabilities.
[(F) Individuals who are homeless or runaway
youth.
[(G) Individuals who are offenders.
[(H) Other eligible youth who face serious
barriers to employment as identified by the
local board.]
[(6)] (4) Prohibitions.--
(A) Prohibition against federal control of
education.--No provision of this Act shall be
construed to authorize any department, agency,
officer, or employee of the United States to
exercise any direction, supervision, or control
over the curriculum, program of instruction,
administration, or personnel of any educational
institution, school, or school system, or over
the selection of library resources, textbooks,
or other printed or published instructional
materials by any educational institution,
school, or school system.
[(B) Nonduplication.--All of the funds made
available under this Act shall be used in
accordance with the requirements of this Act.
None of the funds made available under this Act
may be used to provide funding under the
School-to-Work Opportunities Act of 1994 (20
U.S.C. 6101 et seq.) or to carry out, through
programs funded under this Act, activities that
were funded under the School-to-Work
Opportunities Act of 1994, unless the programs
funded under this Act serve only those
participants eligible to participate in the
programs under this Act.]
[(C)] (B) Noninterference and nonreplacement
of regular academic requirements.--No funds
described in paragraph (1) shall be used to
provide an activity for eligible youth who are
not school dropouts if participation in the
activity would interfere with or replace the
regular academic requirements of the youth.
[(7)] (5) Linkages.--In coordinating the programs
authorized under this section, [youth councils] local
boards shall establish linkages with educational
agencies responsible for services to participants as
appropriate.
[(8)] (6) Volunteers.--The local board shall make
opportunities available for individuals who have
successfully participated in programs carried out under
this section to volunteer assistance to participants in
the form of mentoring, tutoring, and other activities.
* * * * * * *
CHAPTER 5--ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING
ACTIVITIES
SEC. 131. * * *
* * * * * * *
SEC. 132. STATE ALLOTMENTS.
(a) In General.--The Secretary shall--
(1) make allotments and grants from the total amount
appropriated under section 137(b) for a fiscal year in
accordance with subsection (b)(1); and
(2)(A) reserve 20 percent of the amount appropriated
under section 137(c) for a fiscal year for use under
subsection (b)(2)(A), and under sections 170(b)
(relating to dislocated worker technical assistance),
171(d) (relating to dislocated worker projects), and
173 (relating to [national emergency grants] national
dislocated worker grants, other than under subsection
(a)(4), (f), and (g)); and
(B) make allotments from 80 percent of the amount
appropriated under section 137(c) for a fiscal year in
accordance with subsection (b)(2)(B).
(b) Allotment Among States.--
(1) Adult employment and training activities.--
(A) Reservation for outlying areas.--
(i) In general.--* * *
(ii) Applicability of additional
requirements.--From the amount reserved
under clause (i), the Secretary shall
provide assistance to the outlying
areas for adult employment and training
activities and Statewide workforce
investment activities in accordance
with the requirements of section
[127(b)(1)(B), except that the
reference in section
127(b)(1)(B)(i)(II) to sections 252(d)
and 262(a)(1) of the Job Training
Partnership Act shall be deemed to be a
reference to section 202(a)(1) of the
Job Training Partnership Act (as in
effect on the day before the date of
enactment of this Act),] 127(b)(1)(B).
(B) States.--
(i) In general.--* * *
[(ii) Formula.--Subject to clauses
(iii) and (iv), of the remainder--
[(I) 33\1/3\ percent shall be
allotted on the basis of the
relative number of unemployed
individuals in areas of
substantial unemployment in
each State, compared to the
total number of unemployed
individuals in areas of
substantial unemployment in all
States;
[(II) 33\1/3\ percent shall
be allotted on the basis of the
relative excess number of
unemployed individuals in each
State, compared to the total
excess number of unemployed
individuals in all States; and
[(III) 33\1/3\ percent shall
be allotted on the basis of the
relative number of
disadvantaged adults in each
State, compared to the total
number of disadvantaged adults
in all States, except as
described in clause (iii).]
(ii) Formula.--Subject to clauses
(iii) and (iv), of the remainder--
(I) 40 percent shall be
allotted on the basis of the
relative number of unemployed
individuals in areas of
substantial unemployment in
each State, compared to the
total number of unemployed
individuals in areas of
substantial unemployment in all
States;
(II) 25 percent shall be
allotted on the basis of the
relative number of individuals
in the civilian labor force in
each State, compared to the
total number of such
individuals in all States; and
(III) 35 percent shall be
allotted on the basis of the
relative number of
disadvantaged adults in each
State, compared to the total
number of disadvantaged adults
in all States, except as
described in clause (iii).
(iii) Calculation.--In determining an
allotment under clause (ii)(111) for
any State in which there is a local
area designated under [section
116(a)(2)(B)] section
116(a)(2)(A)(iii), the allotment shall
be based on the higher of--
* * * * * * *
(II) Small state minimum
allotment.--Subject to
[subclauses (I), (III), and
(IV)] subclauses (I) and (III),
the Secretary shall ensure that
no State shall receive an
allotment under this
subparagraph that is less than
the total of--
* * * * * * *
[(IV) Minimum funding.--In
any fiscal year in which the
remainder described in clause
(i) does not exceed
$960,000,000, the minimum
allotments under subclauses (I)
and (II) shall be calculated by
the methodology for calculating
the corresponding allotments
under part A of title II of the
Job Training Partnership Act,
as in effect on July 1, 1998.]
* * * * * * *
(2) Dislocated worker employment and training.--
(A) Reservation for outlying areas.--
(i) In general.--* * *
(ii) Applicability of additional
requirements.--From the amount reserved
under clause (i), the Secretary shall
provide assistance to the outlying
areas for dislocated worker employment
and training activities and statewide
workforce investment activities in
accordance with the requirements of
[section 127(b)(1)(B), except that the
reference in section
127(b)(1)(B)(i)(II) to sections 252(a)
and 262(a)(1) of the Job Training
Partnership Act shall be deemed to be a
reference to section 302(e) of the Job
Training Partnership Act (as in effect
on the day before the date of enactment
of this Act).] section 127(b)(1)(B).
* * * * * * *
(c) Reallotment.--
(1) In general.--* * *
[(2) Amount.--The amount available for reallotment
for a program year is equal to the amount by which the
unobligated balance of the State allotments under this
section for such activities, at the end of the program
year prior to the program year for which the
determination under this paragraph is made, exceeds 20
percent of such allotments for the prior program year.]
(2) Amount.--The amount available for reallotment for
a program year for programs funded under subsection
(b)(1)(B) (relating to adult employment and training)
and subsection (b)(2)(B) (relating to dislocated worker
employment and training), respectively, is equal to the
amount by which the unexpended balance at the end of
the program year prior to the program year for which
the determination is made exceeds 30 percent of the
total amount of funds available to the State under
subsection (b)(1)(B) or (b)(2)(B), respectively, during
such prior program year (including amounts allotted to
the State in all prior program years under such
provisions that remained available). For purposes of
this paragraph, the unexpended balance is the amount
that is the difference between--
(A) the total amount of funds available to
the State under subsection (b)(1)(B) or
(b)(2)(B), respectively, during the program
year prior to the program year for which the
determination is made (including amounts
allotted to the State in all prior program
years under such provisions that remained
available); and
(B) the accrued expenditures from such total
amount of funds available under subsection
(b)(1)(B) or (b)(2)(B), respectively, during
such prior program year.
(3) Reallotment.--In making reallotments to eligible
States of amounts available pursuant to paragraph (2)
for a program year, the Secretary shall allot to each
eligible State an amount based on the relative amount
allotted to such State [under this section for such
activities for the prior program year] under subsection
(b)(1)(B) or (b)(2)(B), as appropriate, for the program
year for which the determination is made, as compared
to the total amount allotted to all eligible States
[under this section for such activities for such prior
program year] under subsection (b)(1)(B) or (B)(2)(B),
as appropriate, for such program year.
[(4) Eligibility.--For purposes of this subsection,
an eligible State means a State that has obligated at
least 80 percent of the State allotment under this
section for such activities for the program year prior
to the program year for which the determination under
paragraph (2) is made.]
(4) Eligibility.--For purposes of this subsection, an
eligible State means--
(A) with respect to funds allotted under
subsection (b)(1)(B), a State that does not
have an amount of such funds available for
reallotment under paragraph (2) for the program
year for which the determination under
paragraph (2) is made; and
(B) with respect to funds allotted under
subsection (b)(2)(B), a State that does not
have an amount of such funds available for
reallotment under paragraph (2) for the program
year for which the determination under
paragraph (2) is made
(5) Procedures.--The Governor of each State shall
prescribe uniform procedures for the [obligation]
accrued expenditure of funds by local areas within the
State in order to avoid the requirement that funds be
made available for reallotment under this subsection.
The Governor shall further prescribe equitable
procedures for making funds available from the State
and local areas in the event that a State is required
to make funds available for reallotment under this
subsection.
* * * * * * *
SEC. 133. WITHIN STATE ALLOCATIONS.
(a) Reservations for State Activities.--
(1) Statewide workforce investment activities.--* * *
* * * * * * *
(5) * * *
* * * * * * *
(B) * * *
(ii) Dislocated workers.--Funds
allocated under paragraph (2)(B) shall
be used by a local area to contribute
proportionately to the costs of the
one-stop delivery system described in
[section 134(c)] section 121(e) in the
local area, and to pay for employment
and training activities provided to
dislocated workers in the local area,
consistent with section 134.
* * * * * * *
(c) Reallocation Among Local Areas.--
(1) In general.--The Governor may, in accordance with
this subsection, reallocate to eligible local areas
within the State amounts that are allocated under
paragraph (2)(A) or (3) of subsection (b) for adult
employment and training activities, and under
subsection (b)(2)(B) for dislocated worker employment
and training activities, and that are available for
reallocation.
[(2) Amount.--The amount available for reallocation
for a program year is equal to the amount by which the
unobligated balance of the local area allocation under
paragraph (2)(A) or (3) of subsection (b) for such
activities, at the end of the program year prior to the
program year for which the determination under this
paragraph is made exceeds 20 percent of such allocation
for the prior program year.]
(2) Amount.--The amount available for reallocation
for a program year for programs funded under paragraphs
(2)(A) and (3) of subsection (b) (relating to adult
employment and training) and subsection (b)(2)(B)
(relating to dislocated worker employment and
training), respectively, is equal to the amount by
which the unexpended balance at the end of the program
year prior to the program year for which the
determination is made exceeds 30 percent of the total
amount of funds available to the local area under
paragraphs (2)(A) and (3) of subsection (b), or
subsection (b)(2)(B), respectively, during such prior
program year (including amounts allocated to the local
area in all prior program years under such provisions
that remained available). For purposes of this
paragraph, the unexpended balance is the amount that is
the difference between--
(A) the total amount of funds available to
the local area under paragraphs (2)(A) and (3)
of subsection (b), or subsection (b)(2)(B),
respectively, during the program year prior to
the program year for which the determination is
made (including amounts allotted to the local
area in all prior program years under such
provisions that remained available); and
(B) the accrued expenditures from such total
amount of funds available under paragraphs
(2)(A) and (3) of subsection (b), or subsection
(b)(2)(B), respectively, during such prior
program year.
[(3) Reallocation.--In making reallocations to
eligible local areas of amounts available pursuant to
paragraph (2) for a program year, the Governor shall
allocate to each eligible local area within the State
an amount based on the relative amount allocated to
such local area under subsection (b)(3) for such
activities for the prior program year, as compared to
the total amount allocated to all eligible local areas
in the State under subsection (b)(3) for such
activities for such prior program year. For purposes of
this paragraph, local areas that received allocations
under subsection (b)(2)(A) for the prior program year
shall be treated as if the local areas received
allocations under subsection (b)(3) for such year.]
(3) Reallocation.--In making reallocations to
eligible local areas of amounts available pursuant to
paragraph (2) for a program year, the Governor shall
allocate to each eligible local area within the State--
(A) with respect to amounts that are
available for reallocation under paragraph (2)
that were allocated under paragraphs (2)(A) or
(3) of subsection (b), an amount based on the
relative amount allocated to such local area
under paragraphs (2)(A) or (3) of subsection
(b), as appropriate, for the program year for
which the determination is made, as compared to
the total amount allocated to all eligible
local areas under paragraphs (2)(A) or (3) of
subsection (b), as appropriate, of such program
year; and
(B) with respect to amounts that are
available for reallocation under paragraph (2)
that were allocated under subsection (b)(2)(B),
an amount based on the relative amount
allocated to such local area under subsection
(b)(2)(B) for the program year for which the
determination is made, as compared to the total
amount allocated to all eligible local areas
under subsection (b)(2)(B) for such program
year.
[(4) Eligibility.--For purposes of this subsection,
an eligible local area means a local area that has
obligated at least 80 percent of the local area
allocation under paragraph (2)(A) or (3) of subsection
(b) for such activities, for the program year prior to
the program year for which the determination under
paragraph (2) is made.]
(4) Eligibility.--For purposes of this subsection, an
eligible local area means--
(A) with respect to funds allocated under
paragraphs (2)(A) or (3) of subsection (b), a
local area that does not have an amount of such
funds available for reallocation under
paragraph (2) for the program year for which
the determination under paragraph (2) is made;
and
(B) with respect to funds allocated under
subsection (b)(2)(B), a local area that does
not have an amount of such funds available for
reallocation under paragraph (2) for the
program year for which the determination under
paragraph (2) is made.
* * * * * * *
SEC. 134. USE OF FUNDS FOR EMPLOYMENT AND TRAINING ACTIVITIES.
(a) Statewide Employment and Training Activities.--
(1) In general.--* * *
* * * * * * *
(2) Required statewide employment and training
activities.--
[(A) Statewide rapid response activities.--A
State shall use funds reserved as described in
section 133(a)(2) to carry out statewide rapid
response activities, which shall include--
[(i) provision of rapid response
activities, carried out in local areas
by the State or by an entity designated
by the State, working in conjunction
with the local boards and the chief
elected officials in the local areas;
and
[(ii) provision of additional
assistance to local areas that
experience disasters, mass layoffs or
plant closings, or other events that
precipitate substantial increases in
the number of unemployed individuals,
carried out in local areas by the State
or by an entity designated by the
State, working in conjunction with the
local boards and the chief elected
officials in the local areas.]
(A) Statewide rapid response activities.--
(i) In general.--A State shall carry
out statewide rapid response activities
using funds reserved by a Governor for
a State under section 133(a)(2). Such
activities shall include--
(I) provision of rapid
response activities, carried
out in local areas by the State
or by an entity designated by
the State, working in
conjunction with the local
boards and the chief elected
officials for the local areas;
and
(II) provision of additional
assistance to local areas that
experience disasters, mass
layoffs, or plant closings, or
other events that precipitate
substantial increases in the
number of unemployed
individuals, carried out in
local areas by the State,
working in conjunction with the
local boards and the chief
elected officials for the local
areas.
(ii) Use of unexpended funds.--Funds
reserved under section 133(a)(2) to
carry out this subparagraph that remain
unexpended after the first program year
for which such funds were allotted may
be used by the Governor to carry out
statewide activities authorized under
subparagraph (B) and paragraph (3)(A)
in addition to activities under this
subparagraph.
[(B) Other required statewide employment and
training activities.--A State shall use funds
reserved as described in sections 128(a) and
133(a)(1) (regardless of whether the funds were
allotted to the State under section 127(b)(1)
or paragraph (1) or (2) of section 132(b)) to
carry out other statewide employment and
training activities, which shall include--
[(i) disseminating the State list of
eligible providers of training
services, including eligible providers
of nontraditional training services,
information identifying eligible
providers of on-the-job training and
customized training, and performance
information and program cost
information, as described in
subsections (e) and (h) of section 122;
[(ii) conducting evaluations, under
section 136(e), of activities
authorized in this section, in
coordination with the activities
carried out under section 172;
[(iii) providing incentive grants to
local areas for regional cooperation
among local boards (including local
boards for a designated region as
described in section 116(c)), for local
coordination of activities carried out
under this Act, and for exemplary
performance by local areas on the local
performance measures;
[(iv) providing technical assistance
to local areas that fail to meet local
performance measures;
[(v) assisting in the establishment
and operation of one-stop delivery
systems described in subsection (c);
and
[(vi) operating a fiscal and
management accountability information
system under section 136(f).]
(B) Statewide employment and training
activities.--Funds reserved by a Governor for a
State under sections 128(a)(1) and 133(a)(1)
and not used under paragraph (1)(A) (regardless
of whether the funds were allotted to the
States under section 127(b)(1)(C) or paragraph
(1)(B) or (2)(B) of section 132(b)) shall be
used for statewide employment and training
activities, including--
(i) disseminating--
(I) the State list of
eligible providers of training
services, including eligible
providers of nontraditional
training services;
(II) information identifying
eligible providers of on-the-
job training and customized
training;
(III) performance information
and program cost information,
as described in subsections (d)
and (i) of section 122; and
(IV) information on physical
and programmatic accessibility
for individuals with
disabilities;
(ii) conducting evaluations under
section 136(e) of activities authorized
under this chapter and chapter 5 in
coordination with evaluations carried
out by the Secretary under section 172;
(iii) providing incentive grants to
local areas in recognition of
exceptional achievement relating to--
(I) regional cooperation
among local boards (including
local boards in a designated
region as described in section
116(c));
(II) expanded local
coordination of programs and
activities carried out as part
of a comprehensive workforce
investment system, including--
(aa) employment
services under the
Wagner-Peyser Act and
core activities under
this title; and
(bb) one-stop partner
programs described in
section 121;
(III) performance by local
areas as described in section
136(1)(2); and
(IV) providing expanded
access to education and
training services, especially
through increased leveraging of
resources other than those
provided through programs under
this title;
(iv) developing strategies for
ensuring that activities carried out
under this section are placing men and
women in jobs, education, and training
that lead to comparable pay;
(v) providing technical assistance
and capacity building to local areas,
one-stop operators, one-stop partners,
and eligible providers, including the
development and training of staff, the
development of exemplary program
activities, and the provision of
technical assistance to local areas
that fail to meet local performance
measures described in section 136(c),
which may include the development and
training of staff to provide
opportunities for hard-to-serve
populations to enter high-wage, high-
skilled, and nontraditional
occupations;
(vi) operating a fiscal and
management accountability system under
section 136(f); and
(vii) carrying out monitoring and
oversight of activities carried out
under this chapter and chapter 4.
(3) Allowable statewide employment and training
activities.--
[(A) In general.--A State may use funds
reserved as described in sections 128(a) and
133(a)(1) (regardless of whether the funds were
allotted to the State under section 127(b)(1)
or paragraph (1) or (2) of section 132(b)) to
carry out additional statewide employment and
training activities, which may include--
[(i) subject to subparagraph (B),
administration by the State of the
activities authorized under this
section;
[(ii) provision of capacity building
and technical assistance to local
areas, one-stop operators, one-stop
partners, and eligible providers,
including the development and training
of staff and the development of
exemplary program activities;
[(iii) conduct of research and
demonstrations;
[(iv)(I) implementation of innovative
incumbent worker training programs,
which may include the establishment and
implementation of an employer loan
program to assist in skills upgrading;
and
[(II) the establishment and
implementation of programs targeted to
empowerment zones and enterprise
communities;
[(v) support for the identification
of eligible providers of training
services as required under section 122;
[(vi)(I) implementation of innovative
programs for displaced homemakers,
which for purposes of this subclause
may include an individual who is
receiving public assistance and is
within 2 years of exhausting lifetime
eligibility under part A of title IV of
the Social Security Act (42 U.S.C. 601
et seq.); and
[(II) implementation of programs to
increase the number of individuals
training for and placed in
nontraditional employment; and
[(vii) carrying out other activities
authorized in this section that the
State determines to be necessary to
assist local areas in carrying out
activities described in subsection (d)
or (e) through the statewide workforce
investment system.]
(A) In general.--Funds reserved by a Governor
for a State under sections 128(a)(1) and
133(a)(1) and not used under paragraph (1)(A)
or (2)(B) (regardless of whether the funds were
allotted to the State under section
127(b)(1)(C) or paragraph (1)(B) or (2)(B) of
section 132(b)) may be used to carry out
additional statewide employment and training
activities, which may include--
(i) implementing innovative programs
and strategies designed to meet the
needs of all businesses in the State,
including small businesses, which may
include incumbent worker training
programs, sectoral and industry cluster
strategies and partnerships, including
regional skills alliances, career
ladder programs, micro-enterprise and
entrepreneurial training and support
programs, utilization of effective
business intermediaries, activities to
improve linkages between the one-stop
delivery systems in the State and all
employers (including small employers)
in the State, and other business
services and strategies that better
engage employers in workforce
investment activities and make the
workforce investment system more
relevant to the needs of State and
local businesses, consistent with the
objectives of this title;
(ii) developing strategies for
effectively serving hard-to-serve
populations and for coordinating
programs and services among one-stop
partners;
(iii) implementing innovative
programs for displaced homemakers,
which for purposes of this clause may
include an individual who is receiving
public assistance and is within 2 years
of exhausting lifetime eligibility
under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.);
(iv) implementing programs to
increase the number of individuals
training for and placed in
nontraditional employment;
(v) carrying out activities to
facilitate remote access to services,
including training services described
in subsection (d)(4), provided through
a one-stop delivery system, including
facilitating access through the use of
technology;
(vi) supporting the provision of core
services described in subsection (d)(2)
in the one-stop delivery system in the
State;
(vii) coordinating with the child
welfare system to facilitate services
for children in foster care and those
who are eligible for assistance under
section 477 of the Social Security Act;
(viii) activities--
(I) to improve coordination
between workforce investment
activities carried out within
the State involved and economic
development activities;
(II) to improve coordination
between employment and training
assistance, child support
services, and assistance
provided by State and local
agencies carrying out part D of
title IV of the Social Security
Act (42 U.S.C. 651 et seq.);
(III) to improve coordination
between employment and training
assistance and cooperative
extension programs carried out
by the Department of
Agriculture;
(IV) to improve coordination
between employment and training
assistance and programs carried
out in the local area for
individuals with disabilities,
including programs carried out
by State agencies relating to
mental retardation and
developmental disabilities,
Statewide Independent Living
Councils established under
section 705 of the
Rehabilitation Act of 1973 (29
U.S.C. 796d), and centers for
independent living defined in
section 702 of the
Rehabilitation Act of 1973 (29
U.S.C. 796a);
(V) to develop and
disseminate workforce and labor
market information; and
(VI) to improve coordination
with the corrections system to
facilitate provision of
training services and
employment opportunities that
will assist ex-offenders in
reentering the workforce;
(ix) conducting--
(I) research; and
(II) demonstration projects;
and
(x) adopting, calculating, or
commissioning a minimum self-
sufficiency standard that specifies the
income needs of families, by family
size, the number and ages of children
in the family, and sub-State
geographical considerations.
* * * * * * *
(d) Required Local Employment and Training Activities.--
(1) In general.--
(A) Allocated funds.--* * *
(i) to establish a one-stop delivery
system [described in subsection (c)];
(ii) to provide the core services
described in paragraph (2) to adults
and dislocated workers, respectively,
through the one-stop delivery system in
accordance with such paragraph;
(iii) to provide the intensive
services described in paragraph (3) to
adults and dislocated workers,
respectively, described in such
paragraph; [and]
(iv) to provide training services
described in paragraph (4) to adults
and dislocated workers, respectively,
described in such paragraph[.];
(v) to designate a dedicated business
liaison in the local area who may be
funded with funds provided under this
title or from other sources to
establish and develop relationships and
networks with large and small employers
and their intermediaries; and
(vi) in order to avoid duplication of
services and enhance coordination of
services, to require the collocation of
employment services provided under the
Wagner-Peyser Act at the comprehensive
one-stop centers.
* * * * * * *
(2) Core services.--Funds described in [paragraph
(1)(A)] paragraph (1) shall be used to provide core
services, which shall be available to individuals who
are adults or dislocated workers through the one-stop
delivery system and shall, at a minimum, include--
(A) * * *
* * * * * * *
[(D) job search and placement assistance, and
where appropriate, career counseling;]
(D) labor exchange services, including--
(i) job search and placement
assistance and, in appropriate cases,
career counseling, including--
(I) exposure to high wage,
high skill jobs; and
(II) nontraditional
employment; and
(ii) appropriate recruitment and
other business services for all
employers, including small employers,
in the local area, which may include
services described in this subsection,
including information and referral to
specialized business services not
traditionally offered through the
onestop delivery system;
(E) provision of employment statistics
information, including the provision of
accurate information relating to local,
regional, and national labor market areas,
including--
(i) * * *
* * * * * * *
(iii) information relating to local
occupations in demand and the earnings,
career ladders, and skill requirements
for such occupations; [and]
(F) provision of performance information [and
program cost information] on eligible providers
of training services as described in section
122, provided by program, and eligible
providers of youth activities [described in
section 123], providers of adult education
described in title II, providers of
postsecondary vocational education activities
and vocational education activities available
to school dropouts under the Carl D. Perkins
Vocational and Applied Technology Education Act
(20 U.S.C. 2301 et seq.), and providers of
vocational rehabilitation program activities
described in title I of the Rehabilitation Act
of 1973 (29 U.S.C. 720 et seq.);
* * * * * * *
[(H) provision of accurate information
relating to the availability of supportive
services, including child care and
transportation, available in the local area,
and referral to such services, as appropriate;]
(H) provision of accurate information, in
formats that are usable and understandable to
all one-stop center customers, relating to the
availability of supportive services or
assistance, including child care, child
support, medical or child health assistance
under title XIX or XXI of the Social Security
Act, benefits under the Food Stamp Act of 1977,
the earned income tax credit under section 32
of the Internal Revenue Code of 1986, and
assistance under a State program funded under
part A of title IV of the Social Security Act
and other supportive services and
transportation provided through funds made
available under such part, available in the
local area, and referral to such services or
assistance as appropriate;
* * * * * * *
(J) assistance in establishing eligibility
[for--
[(i) welfare-to-work activities
authorized under section 403(a)(5) of
the Social Security Act (as added by
section 5001 of the Balanced Budget Act
of 1997) available in the local area;
and
[(ii) programs] for programs of
financial aid assistance for training
and education programs that are not
funded under this Act and are available
in the local area; and
* * * * * * *
(3) Intensive services.--
[(A) In general.--Funds allocated to a local
area for adults under paragraph (2)(A) or (3),
as appropriate, of section 133(b), and funds
allocated to the local area for dislocated
workers under section 133(b)(2)(B), shall be
used to provide intensive services to adults
and dislocated workers, respectively--
[(i)(I) who are unemployed and are
unable to obtain employment through
core services provided under paragraph
(2); and
[(II) who have been determined by a
one-stop operator to be in need of more
intensive services in order to obtain
employment; or
[(ii) who are employed, but who are
determined by a one-stop operator to be
in need of such intensive services in
order to obtain or retain employment
that allows for self-sufficiency.]
(A) In general.--
(i) Eligibility.--Except as provided
in clause (ii), funds allocated to a
local area for adults under paragraph
(2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to
the local area for dislocated workers
under section 133(b)(2)(B), shall be
used to provide intensive services to
adults and dislocated workers,
respectively--
(I) who are unemployed and
who, after an interview,
evaluation, or assessment, have
been determined by a one-stop
operator or one-stop partner to
be--
(aa) unlikely or
unable to obtain
employment, that leads
to self-sufficiency or
wages comparable to or
higher than previous
employment, through
core services described
in paragraph (2); and
(bb) in need of
intensive services to
obtain employment that
leads to self-
sufficiency or wages
comparable to or higher
than previous
employment; or
(II) who are employed, but
who, after an interview,
evaluation, or assessment are
determined by a one-stop
operator or one-stop partner to
be in need of intensive
services to obtain or retain
employment that leads to self-
sufficiency.
(ii) Special rule.--A new interview,
evaluation, or assessment of a
participant is not required under
clause (i) if the one-stop operator or
one-stop partner determines that it is
appropriate to use a recent assessment
of the participant conducted pursuant
to another education or training
program.
* * * * * * *
(C) Types of services.--Such intensive
services may include the following:
(i) * * *
* * * * * * *
(v) Case management [for participants
seeking training services under
paragraph (4)].
* * * * * * *
(vii) Internships and work
experience.
(viii) Literacy activities relating
to basic work readiness, and financial
literacy activities.
(ix) Out-of-area job search
assistance and relocation assistance.
(x) English language acquisition and
integrated training programs.
* * * * * * *
(4) Training services.--
[(A) In general.--Funds allocated to a local
area for adults under paragraph (2)(A) or (3),
as appropriate, of section 133(b), and funds
allocated to a local area for dislocated
workers under section 133(b)(2)(B) shall be
used to provide training services to adults and
dislocated workers, respectively--
[(i) who have met the eligibility
requirements for intensive services
under paragraph (3)(A) and who are
unable to obtain or retain employment
through such services;
[(ii) who after an interview,
evaluation, or assessment, and case
management, have been determined by a
one-stop operator or one-stop partner,
as appropriate, to be in need of
training services and to have the
skills and qualifications to
successfully participate in the
selected program of training services;
[(iii) who select programs of
training services that are directly
linked to the employment opportunities
in the local area involved or in
another area in which the adults or
dislocated workers receiving such
services are willing to relocate;
[(iv) who meet the requirements of
subparagraph (B); and
[(v) who are determined to be
eligible in accordance with the
priority system, if any, in effect
under subparagraph (E).]
(A) In general.--
(i) Eligibility.--Except as provided
in clause (ii), funds allocated to a
local area for adults under paragraph
(2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to
the local area for dislocated workers
under section 133(b)(2)(B), shall be
used to provide training services to
adults and dislocated workers,
respectively--
(I) who, after an interview,
evaluation, or assessment, and
case management, have been
determined by a one-stop
operator or one-stop partner,
as appropriate, to--
(aa) be unlikely or
unable to obtain or
retain employment, that
leads to self-
sufficiency or wages
comparable to or higher
than previous
employment, through the
intensive services
described in paragraph
(3);
(bb) be in need of
training services to
obtain or retain
employment that leads
to self-sufficiency or
wages comparable to or
higher than previous
employment; and
(cc) have the skills
and qualifications to
successfully
participate in the
selected program of
training services;
(II) who select programs of
training services that are
directly linked to the
employment opportunities in the
local area or region involved
or in another area to which the
adults or dislocated workers
are willing to commute or
relocate;
(III) who meet the
requirements of subparagraph
(B); and
(IV) who are determined to be
eligible in accordance with the
priority system in effect under
subparagraph (E).
(ii) Special rule.--A new interview,
evaluation, or assessment of a
participant is not required under
clause (i) if the one-stop operator or
one-stop partner determines that it is
appropriate to use a recent assessment
of the participant conducted pursuant
to another education or training
program.
(B) Qualification.--
(i) Requirement.--[Except]
Notwithstanding section 479B of the
Higher Education Act of 1965 (20 U.S.C.
1087uu) and except as provided in
clause (ii), provision of such training
services shall be limited to
individuals who--
* * * * * * *
(D) Training services.--Training services may
include--
(i) * * *
* * * * * * *
(viii) adult education and literacy
activities provided in combination with
services described in any of clauses
(i) through (vii); [and]
(ix) customized training conducted
with a commitment by an employer or
group of employers to employ an
individual upon successful completion
of the training[.] ; and
(x) English language acquisition and
integrated training programs.
* * * * * * *
(F) Consumer choice requirements.--
(i) In general.--* * *
(ii) Eligible providers.--Each local
board, through one-stop centers shall
make available a list of eligible
providers of training services, and
accompanying information, in accordance
with section 122(d). [referred to in
subsection (c), shall make available--
[(I) the State list of
eligible providers of training
services required under section
122(e), with a description of
the programs through which the
providers may offer the
training services, and the
information identifying
eligible providers of on-the-
job training and customized
training required under section
122(h); and
[(II) the performance
information and performance
cost information relating to
eligible providers of training
services described in
subsections (e) and (h) of
section 122.]
(iii) [Individual training accounts]
Career scholarship accounts.--An
individual who seeks training services
and who is eligible pursuant to
subparagraph (A), may, in consultation
with a case manager, select an eligible
provider of training services from the
list or [identifying information]
accompanying information for providers
described in [clause (ii)(I)] clause
(ii). Upon such selection, the one-stop
operator involved shall, to the extent
practicable, refer such individual to
the eligible provider of training
services, and arrange for payment for
such services through an [individual
training account] career scholarship
account.
(iv) Coordination.--Each local board
may, through one-stop centers,
coordinate career scholarship accounts
with other Federal, State, local, or
private job training programs or
sources to assist the individual in
obtaining training services.
(G) Use of [individual training Accounts]
career scholarship accounts.--
(i) In general.--Except as provided
in clause (ii), training services
provided under this paragraph shall be
provided through the use of [individual
training accounts] career scholarship
accounts in accordance with this
paragraph, and shall be provided to
eligible individuals through the one-
stop delivery system.
(ii) Exceptions.--Training services
authorized under this paragraph may be
provided pursuant to a contract for
services in lieu of a[n individual
training account] career scholarship
account if the requirements of
subparagraph (F) are met and if--
(I) such services are on-the-
job training provided by an
employer or customized
training;
(II) the local board
determines there are an
insufficient number of eligible
providers of training services
in the local area involved
(such as in a rural area) to
accomplish the purposes of a
system of [individual training
accounts] career scholarship
accounts; [or]
(III) the local board
determines that there is a
training services program of
demonstrated effectiveness
offered in the local area by a
community-based organization or
another private organization to
serve [special participant
populations that face multiple
barriers to employment] hard-
to-serve populations[.]; or
(IV) the local board
determines that it would be
most appropriate to award a
contract to an institution of
higher education in order to
facilitate the training of
multiple individuals in high-
demand occupations, if such
contract does not limit
customer choice.
* * * * * * *
(iv) Definition.--* * *
(I) * * *
* * * * * * *
(IV) Individuals with
disabilities.
[(IV)] (V) Other hard-to-
serve populations as defined by
the Governor involved.
[(e) Permissible Local Employment and Training
Activities.--
[Discretionary one-stop delivery activities.--Funds
allocated to a local area for adults under paragraph
(2)(A) or (3), as appropriate, of section 133(b), and
funds allocated to the local area for dislocated
workers under section 133(b)(2)(B), may be used to
provide, through one-stop delivery described in
subsection (c)(2)--
[(A) customized screening and referral of
qualified participants in training services
described in subsection (d)(4) to employment;
and
[(B) customized employment-related services
to employers on a fee-for-service basis.]
(e) Permissible Local Employment and Training Activities.--
(1) In general.--
(A) Activities.--Funds allocated to a local
area for adults under paragraph (2)(A) or (3),
as appropriate, of section 133(b), and funds
allocated to the local area for dislocated
workers under section 133(b)(2)(B), may be used
to provide, through the one-stop delivery
system involved--
(i) customized screening and referral
of qualified participants in training
services described in subsection (d)(4)
to employment;
(ii) customized employment-related
services to employers on a fee-for-
service basis;
(iii) customer support to enable
members of hard-to-serve populations,
including individuals with
disabilities, to navigate among
multiple services and activities for
such populations;
(iv) technical assistance and
capacity building for serving
individuals with disabilities in local
areas, for one-stop operators, one-stop
partners, and eligible providers,
including the development and training
of staff, the provision of outreach,
intake, assessments, and service
delivery, and the development of
performance measures;
(v) employment and training
assistance provided in coordination
with child support enforcement
activities of the State and local
agencies carrying out part D of title
IV of the Social Security Act (42
U.S.C. 601 et seq.);
(vi) activities to improve
coordination between employment and
training assistance, child support
services, and assistance provided by
State and local agencies carrying out
part D of title IV of the Social
Security Act (42 U.S.C. 651 et seq.);
(vii) activities to improve
coordination between employment and
training assistance and cooperative
extension programs carried out by the
Department of Agriculture;
(viii) activities to facilitate
remote access to services provided
through a one-stop delivery system,
including facilitating access through
the use of technology;
(ix) activities--
(I) to improve coordination
between workforce investment
activities carried out within
the local area involved and
economic development
activities; and
(II) to improve services and
linkages between the local
workforce investment system
including the local one-stop
delivery system, and all
employers, including small
employers in the local area,
through services described in
this section, including
subparagraph (B);
(x) training programs for displaced
homemakers and for individuals training
for nontraditional occupations, in
conjunction with programs operated in
the local area;
(xi) using a portion of the funds
allocated under section 133(b),
activities to carry out business
services and strategies that meet the
workforce investment needs of local
area employers, as determined by the
local board, consistent with the local
plan under section 118, which
services--
(I) may be provided through
effective business
intermediaries working in
conjunction with the local
board, and may also be provided
on a fee-for-service basis or
through the leveraging of
economic development and other
resources as determined
appropriate by the local board;
and
(II) may include--
(aa) identifying and
disseminating to
business, educators,
and job seekers,
information related to
the workforce, economic
and community
development needs, and
opportunities of the
local economy;
(bb) development and
delivery of innovative
workforce investment
services and strategies
for area businesses,
which may include
sectoral, industry
cluster, regional
skills alliances,
career ladder, skills
upgrading, skill
standard development
and certification,
apprenticeship, and
other effective
initiatives for meeting
the workforce
investment needs of
area employers and
workers;
(cc) participation in
seminars and classes
offered in partnership
with relevant
organizations focusing
on the workforce-
related needs of area
employers and job
seekers;
(dd) training
consulting, needs
analysis, and brokering
services for area
businesses, including
the organization and
aggregation of training
(which may be paid for
with funds other than
those provided under
this title), for
individual employers
and coalitions of
employers with similar
interests, products, or
workforce needs;
(ee) assistance to
area employers in the
aversion of layoffs and
in managing reductions
in force in
coordination with rapid
response activities;
(ff) the marketing of
business services
offered under this
title, to appropriate
area employers,
including small and
midsized employers;
(gg) information
referral on concerns
affecting local
employers; and
(hh) other business
services and strategies
designed to better
engage employers in
workforce investment
activities and to make
the workforce
investment system more
relevant to the
workforce investment
needs of area
businesses, as
determined by the local
board to be consistent
with the objectives of
this title;
(xii) activities to adjust the self-
sufficiency standards for local
factors, or activities to adopt,
calculate, or commission a self-
sufficiency standard that specifies the
income needs of families, by family
size, the number and ages of children
in the family, and sub-State
geographical considerations; and
(xiii) improved coordination between
employment and training assistance and
programs carried out in the local area
for individuals with disabilities,
including programs carried out by State
agencies relating to mental retardation
and developmental disabilities,
Statewide Independent Living Councils
established under section 705 of the
Rehabilitation Act of 1973 (29 U.S.C.
796d), and centers for independent
living defined in section 702 of the
Rehabilitation Act of 1973 (29 U.S.C.
796a).
(B) Work support activities for low-wage workers.--
(i) In general.--Funds allocated to a local
area for adults under paragraph (2)(A) or (3),
as appropriate, of section 133(b), and funds
allocated to the local area for dislocated
workers under section 133(b)(2)(B), may be used
to provide, through the one-stop delivery
system involved, work support activities
designed to assist low-wage workers in
retaining and enhancing employment. The one-
stop partners shall coordinate the appropriate
programs and resources of the partners with the
activities and resources provided under this
subparagraph.
(ii) Activities.--The activities described in
clause (i) may include the provision of
activities described in this section through
the one-stop delivery system in a manner that
enhances the opportunities of such workers to
participate in the activities, such as the
provision of activities described in this
section during nontraditional hours and the
provision of onsite child care while such
activities are being provided.
[(2) Supportive services.--Funds allocated to a local
area for adults under paragraph (2)(A) or (3), as
appropriate, of section 133(b), and funds allocated to
the local area for dislocated workers under section
133(b)(2)(B), may be used to provide supportive
services to adults and dislocated workers,
respectively--]
(2) Supportive services.--Funds allocated to a local
area for adults under paragraph (2)(A) or (3), as
appropriate, of section 133(b), and funds allocated to
the local area for dislocated workers under section
133(b)(2)(B), may be used to provide supportive
services to adults and dislocated workers,
respectively--
* * * * * * *
(4) Incumbent worker training programs.--
(A) In general.--The local board may use up
to 10 percent of the funds allocated to the
local area involved under section 133(b) to pay
for the Federal share of the cost of providing
training through an incumbent worker training
program carried out in accordance with this
paragraph. The Governor or State board may make
recommendations to the local board regarding
incumbent worker training with statewide
impact.
(B) Training activities.--The training
program for incumbent workers carried out under
this paragraph shall be carried out by the
local board in conjunction with the employers
or groups of employers of such workers for the
purpose of assisting such workers in obtaining
the skills necessary to retain employment or
avert layoffs.
(C) Employer share required.--
(i) In general.--Employers
participating in the program carried
out under this paragraph shall be
required to pay the non-Federal share
of the costs of providing the training
to incumbent workers of the employers.
The local board shall establish the
non-Federal share of such costs, which
may include in-kind contributions. The
non-Federal share shall not be less
than--
(I) 10 percent of the costs,
for employers with 50 or fewer
employees;
(II) 25 percent of the costs,
for employers with more than 50
employees but fewer than 100
employees; and
(III) 50 percent of the
costs, for employers with 100
or more employees.
(ii) Calculation of employer share.--
The non-Federal share paid by such an
employer may include the amount of the
wages paid by the employer to a worker
while the worker is attending a
training program under this paragraph.
* * * * * * *
CHAPTER 6--GENERAL PROVISIONS
SEC. 136. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) Purpose.--* * *
* * * * * * *
(2) Indicators of performance.--
(A) Core indicators of performance.--
(i) In general.--The core indicators
of performance for employment and
training activities authorized under
section 134 (except for self-service
and informational activities) [and (for
participants who are eligible youth age
19 through 21) for youth activities
authorized under section 129] shall
consist of--
(I) * * *
* * * * * * *
[(III) earnings received in
unsubsidized employment 6
months after entry into the
employment; and]
(III) increases in earnings
from unsubsidized employment;
and
(IV) attainment of a
recognized credential relating
to achievement of educational
skills, which may include
attainment of a secondary
school diploma or its
recognized equivalent, or
occupational skills, by
participants who enter
unsubsidized employment[, or by
participants who are eligible
youth age 19 through 21 who
enter postsecondary education,
advanced training, or
unsubsidized employment].
[(ii) Core indicators for eligible
youth.--The core indicators of
performance (for participants who are
eligible youth age 14 through 18) for
youth activities authorized under
section 129, shall include--
[(I) attainment of basic
skills and, as appropriate,
work readiness or occupational
skills;
[(II) attainment of secondary
school diplomas their
recognized equivalents; and
[(III) placement and
retention in postsecondary
education or advanced training,
or placement and retention in
military service, employment,
or qualified apprenticeships.]
(ii) Core indicators for eligible
youth.--The core indicators of
performance for youth activities
authorized under section 129 shall
consist of--
(I) entry into employment,
education or advanced training,
or military service;
(II) attainment of secondary
school diplomas or their
recognized equivalents, and
postsecondary certificates; and
(III) literacy or numeracy
gains.
* * * * * * *
[(C) Additional indicators.--A State may
identify in the State plan additional
indicators for workforce investment activities
authorized under this subtitle.]
(C) Additional indicators.--A State may
identify in the State plan additional
indicators for workforce investment activities
under this subtitle, including indicators
identified in collaboration with State business
and industry associations, with employee
representatives where applicable, and with
local boards, to measure the performance of the
workforce investment system in serving the
workforce needs of business and industry in the
State.
(3) Levels of performance.--
(A) State adjusted levels of performance for
core indicators and customer satisfaction
indicator.--
(i) In general.--* * *
* * * * * * *
(iii) Agreement on state adjusted
levels of performance [for first 3
years].--In order to ensure an optimal
return on the investment of Federal
funds in workforce investment
activities authorized under this
subtitle, the Secretary and each
Governor shall reach agreement on
levels of performance for each of the
core indicators of performance, [and
the customer satisfaction indicator of
performance, for the first 3] described
in clauses (i) and (ii) of paragraph
(2)(A) and the customer satisfaction
indicator of performance, for the first
2 program years covered by the State
plan, taking into account the levels
identified in the State plan under
clause (ii) and the factors described
in clause (iv). The levels agreed to
under this clause shall be considered
to be the State adjusted levels of
performance for the State for such
years and shall be incorporated into
the State plan prior to the approval of
such plan. Agreements on levels of
performance for each of the core
indicators of performance for the third
and fourth program years covered by the
State plan shall be reached prior to
the beginning of the third program year
covered by the State plan, and
incorporated as a modification to the
State plan.
(iv) Factors.--The agreement
described in clause (iii) or (v) shall
take into account--
(I) the extent to which the
levels involved will assist the
State in attaining a high level
of customer satisfaction;
(II) how the levels involved
compare with the State adjusted
levels of performance
established for other States,
[taking into account] and shall
ensure that the levels involved
are adjusted, using objective
statistical methods, based on
factors including differences
in economic conditions (such as
differences in unemployment
rates and job losses or gains
in particular industries), the
characteristics of participants
when the participants entered
the program (such as indicators
of poor work history, lack of
work experience, lack of
educational or occupational
skills attainment, dislocation
from high-wage and benefit
employment, low levels of
literacy or English
proficiency, disability status,
homelessness, and welfare
dependency), and the services
to be provided; [and]
(III) the extent to which
such levels involved promote
continuous improvement in
performance on the performance
measures by such State and
ensure optimal return on the
investment of Federal funds[.];
and
(IV) the extent to which the
levels involved will assist the
State in meeting the national
goals described in clause (v).
[(v) Agreement on state adjusted
levels of performance for 4th and 5th
years.--Prior to the 4th program year
covered by the State plan, the
Secretary and each Governor shall reach
agreement on levels of performance for
each of the core indicators of
performance and the customer
satisfaction indicator of performance,
for the 4th and 5th program years
covered by the State plan, taking into
account the factors described in clause
(iv). The levels agreed to under this
clause shall be considered to be the
State adjusted levels of performance
for the State for such years and shall
be incorporated into the State plan.]
(v) Establishment of national
goals.--In order to promote enhanced
performance outcomes on the performance
measures and to facilitate the process
of reaching agreements with the States
under clause (iii) and to measure
systemwide performance for the one-stop
delivery systems of the States, the
Secretary shall establish long-term
national goals for the adjusted levels
of performance for that systemwide
performance to be achieved by the
programs assisted under chapters 4 and
5 on the core indicators of performance
described in subparagraphs (A) and (B)
of subsection (b)(2). Such goals shall
be established in accordance with the
Government Performance and Results Act
of 1993 in consultation with the States
and other appropriate parties.
(vi) Revisions.--If unanticipated
circumstances arise in a State
resulting in a significant change in
the factors described in clause
(iv)(II), the Governor may request that
the State adjusted levels of
performance agreed to under clause
(iii) [or (v)] be revised. The
Secretary, after collaboration [with
the representatives described in
subsection (i)] with the States and
other interested parties, shall issue
objective criteria and methods for
making such revisions.
* * * * * * *
(c) Local Performance Measures.--
(1) In general.--For each local area in a State, the
local performance measures shall consist of--
* * * * * * *
(3) Determinations.--In determining such local levels
of performance, the local board, the chief elected
official, and the Governor [shall take into account]
shall ensure that the levels involved are adjusted,
using objective statistical methods, based on the
specific economic (characteristics such as unemployment
rates and job losses or gains in particular
industries), demographic (characteristics such as
indicators of poor work history, lack of work
experience, lack of educational and occupational skills
attainment, dislocation from high-wage and benefit
employment, low levels of literacy or English
proficiency, disability status, homelessness, and
welfare dependency), and other characteristics of the
populations to be served in the local area.
* * * * * * *
(d) Report.--
(1) In general.--* * * In the case of a State or
local area that chooses to expend funds for activities
under subsection (a)(3)(A)(i) or (e)(1)(A)(xi),
respectively, of section 134, the report also shall
include the amount of such funds so expended and the
percentage that such funds are of the funds available
for activities under section 134.
(2) Additional information.--* * *
* * * * * * *
(E) performance with respect to the
indicators of performance specified in
subsection (b)(2)(A) of participants in
workforce investment activities who received
the training services compared with the
performance of participants in workforce
investment activities who received only
services other than the training services
[excluding participants who received only self-
service and informational activities]; [and]
(F) performance with respect to the
indicators of performance specified in
subsection (b)(2)(A) of recipients of public
assistance, out-of-school youth, veterans,
individuals with disabilities, displaced
homemakers, noncustodial parents with child
support obligations, homeless individuals, and
older individuals[.];
(G) the number of participants served and the
cost per participant; and
(H) the amount of adult and dislocated worker
funds spent on--
(i) core, intensive, and training
services, respectively; and
(ii) services provided under
subsection (a)(3)(A)(i) or
(e)(1)(A)(xi) of section 134, if
applicable.
* * * * * * *
(4) Data validation.--In preparing the reports
described in this subsection, the States shall
establish procedures, consistent with guidelines issued
by the Secretary, to ensure that the information
contained in the reports is valid and reliable.
(e) Evaluation of State Programs.--
(1) In general.--* * *
* * * * * * *
(3) Results.--The State shall periodically prepare
and submit to the State board, and local boards in the
State, reports containing the results of evaluation
studies conducted under this subsection, to promote the
efficiency and effectiveness of the statewide workforce
investment system in improving employability for
jobseekers and competitiveness for employers, including
information on promoting self-sufficiency and
comparable pay between men and women.
* * * * * * *
(g) Sanctions for State Failure To Meet State Performance
Measures.--
(1) States.--
(A) Technical assistance.--* * *
(B) Reduction in amount of grant.--[If such
failure continues for a second consecutive
year] If a State performs at less than 80
percent of the adjusted level of performance
for core indicators of performance described in
subsection (b)(2)(A) for 2 consecutive years,
or if a State fails to submit a report under
subsection (d) for any program year, the
Secretary may reduce by not more than 5
percent, the amount of the grant that would (in
the absence of this paragraph) be payable to
the State under such program for the
immediately succeeding program year. Such
penalty shall be based on the degree of failure
to meet State adjusted levels of performance.
(2) Funds resulting from reduced allotments.--The
Secretary shall use an amount retained, as a result of
a reduction in an allotment to a State made under
paragraph (1)(B), to provide incentive grants under
[section 503] subsection (i)(1).
(h) Sanctions for Local Area Failure To Meet Local
Performance Measures.--
(1) Technical assistance.--* * *
(2) Corrective actions.--
(A) In general.--[If such failure continues
for a second consecutive year] If a local area
performs at less than 80 percent of the
adjusted level of performance for core
indicators of performance described in
subsection (b)(2)(A) for 2 consecutive years,
the Governor shall take corrective actions,
which may include development of a
reorganization plan through which the Governor
may--
* * * * * * *
(ii) prohibit the use of eligible
providers and one-stop partners
identified as achieving a poor level of
performance; [or]
(iii) redesignate the local area in
accordance with section 116(b)(2); or
[(iii)] (iv) take such other actions
as the Governor determines are
appropriate.
* * * * * * *
[(i) Other Measures and Terminology.--
[(1) Responsibilities.--In order to ensure nationwide
comparability of performance data, the Secretary, after
collaboration with representatives of appropriate
Federal agencies, and representatives of States and
political subdivisions, business and industry,
employees, eligible providers of employment and
training activities, educators, and participants, with
expertise regarding workforce investment policies and
workforce investment activities, shall issue--
[(A) definitions for information required to
be reported under subsection (d)(2);
[(B) terms for a menu of additional
indicators of performance described in
subsection (b)(2)(C) to assist States in
assessing their progress toward State workforce
investment goals; and
[(C) objective criteria and methods described
in subsection (b)(3)(A)(vi) for making
revisions to levels of performance.
[(2) Definitions for core indicators.--The Secretary
and the representatives described in paragraph (1)
shall participate in the activities described in
section 502 concerning the issuance of definitions for
indicators of performance described subsection
(b)(2)(A).
[(3) Assistance.--The Secretary shall make the
services of staff available to the representatives to
assist the representatives in participating in the
collaboration described in paragraph (1) and in the
activities described in section 502.]
(i) Incentive Grants for Local Areas.--
(1) In general.--From funds reserved under sections
128(a) and 133(a)(1), the Governor involved shall award
incentive grants to local areas for performance
described in paragraph (2) in carrying out programs
under chapters 4 and 5.
(2) Basis.--The Governor shall award the grants on
the basis--
(A) that the local areas met or exceeded the
performance measures established under
subsection (c)(2) relating to indicators
described in subsection (b)(3)(A)(iii);
(B) of exemplary performance of the local
areas in serving hard-to-serve populations; or
(C) that the local areas are effectively--
(i) coordinating multiple systems
into a comprehensive workforce
investment system, including
coordination of employment services
under the Wagner-Peyser Act and core
activities under this title as well as
one-stop partner programs described in
section 121;
(ii) expanding access to training,
including through increased leveraging
of resources other than those funded
through programs under this title; or
(iii) implementing innovative
business and economic development
initiatives.
(3) Use of funds.--The funds awarded to a local area
under this paragraph may be used to carry out
activities authorized for local areas under chapters 4
and 5, and such demonstration projects or innovative
programs for hard-to-serve populations as may be
approved by the Governor.
(j) Use of Core Indicators for Other Programs.--In addition
to the programs carried out under chapters 4 and 5, and
consistent with the requirements of the applicable authorizing
laws, the Secretary shall use the indicators of performance
described in subparagraphs (A) and (B) of subsection (b)(2) to
assess the effectiveness of the programs described in clauses
(i), (ii), and (vi) of section 121(b)(1)(B) that are carried
out by the Secretary.
* * * * * * *
SEC. 137. AUTHORIZATION OF APPROPRIATIONS.
(a) Youth Activities.--There are authorized to be
appropriated to carry out the activities described in section
127(a), [such sums as may be necessary for each of fiscal years
1999 through 2003] such sums as may be necessary for each of
fiscal years 2004 through 2009.
(b) Adult Employment and Training Activities.--There are
authorized to be appropriated to carry out the activities
described in section 132(a)(1), [such sums as may be necessary
for each of fiscal years 1999 through 2003] such sums as may be
necessary for each of fiscal years 2004 through 2009.
(c) Dislocated Worker Employment and Training Activities.--
There are authorized to be appropriated to carry out the
activities described in section 132(a)(2), [such sums as may be
necessary for each of fiscal years 1999 through 2003] such sums
as may be necessary for each of fiscal years 2004 through 2009.
* * * * * * *
Subtitle C--Job Corps
* * * * * * *
SEC. 144. INDIVIDUALS ELIGIBLE FOR THE JOB CORPS.
* * * * * * *
(3) an individual who is one or more of the
following:
(A) Basic skills deficient.
(B) A school dropout.
(C) Homeless, a runaway, or a foster child.
(D) A parent.
(E) An individual who requires additional
education, vocational training, or intensive
counseling and related assistance, in order to
participate successfully in regular schoolwork
or to secure and hold employment.
(F) A child eligible for assistance under
section 477 of the Social Security Act.
* * * * * * *
SEC. 145. RECRUITMENT, SCREENING, SELECTION, AND ASSIGNMENT OF
ENROLLEES.
(a) Standards and Procedures.--
(1) In general.-- * * *
* * * * * * *
(3) Implementation.--To the extent practicable, the
standards and procedures shall be implemented through
arrangements with--
(A) applicable one-stop centers;
(B) community action agencies, business
organizations, and labor organizations; [and]
(C) agencies and individuals that have
contact with youth over substantial periods of
time and are able to offer reliable information
about the needs and problems of youth[.]; and
(D) child welfare agencies that are
responsible for children in foster care and
children eligible for assistance under section
477 of the Social Security Act.
* * * * * * *
SEC. 154. INDUSTRY COUNCILS.
(a) In General.-- * * *
(b) Industry Council Composition.--
(1) In general.--An industry council shall be
comprised of--
(A) a majority of members who shall be [local
and distant] owners of business concerns, chief
executives or chief operating officers of
nongovernmental employers, or other private
sector employers, who--
* * * * * * *
(3) Employers outside of local area.--The industry
council may include, or otherwise provide for
consultation with, employers from outside the local
area who are likely to hire a significant number of
enrollees from the Job Corps center.
(4) Special rule for single local area states.--In
the case of a single local area State designated under
section 116(b), the industry council shall include a
representative of the State Board.
* * * * * * *
SEC. 159. MANAGEMENT INFORMATION.
(a) Financial Management Information System.--
(1) In general.-- * * *
* * * * * * *
(c) Information on Indicators of Performance.--
[(1) Establishment.--The Secretary shall, with
continuity and consistency from year to year, establish
indicators of performance, and expected levels of
performance for Job Corps centers and the Job Corps
program, relating to--
[(A) the number of graduates and the rate of
such graduation, analyzed by type of vocational
training received through the Job Corps program
and by whether the vocational training was
provided by a local or national service
provider;
[(B) the number of graduates who entered
unsubsidized employment related to the
vocational training received through the Job
Corps program and the number who entered
unsubsidized employment not related to the
vocational training received, analyzed by
whether the vocational training was provided by
a local or national service provider and by
whether the placement in the employment was
conducted by a local or national service
provider;
[(C) the average wage received by graduates
who entered unsubsidized employment related to
the vocational training received through the
Job Corps program and the average wage received
by graduates who entered unsubsidized
employment unrelated to the vocational training
received;
[(D) the average wage received by graduates
placed in unsubsidized employment after
completion of the Job Corps program--
[(i) on the first day of the
employment;
[(ii) 6 months after the first day of
the employment; and
[(iii) 12 months after the first day
of the employment,
[analyzed by type of vocational training
received through the Job Corps program;
[(E) the number of graduates who entered
unsubsidized employment and were retained in
the unsubsidized employment--
[(i) 6 months after the first day of
the employment; and
[(ii) 12 months after the first day
of the employment;
[(F) the number of graduates who entered
unsubsidized employment--
[(i) for 32 hours per week or more;
[(ii) for not less than 20 but less
than 32 hours per week; and
[(iii) for less than 20 hours per
week;
[(G) the number of graduates who entered
postsecondary education or advanced training
programs, including apprenticeship programs, as
appropriate; and
[(H) the number of graduates who attained job
readiness and employment skills.]
(1) Performance indicators.--The Secretary shall
annually establish expected levels of performance for
Job Corps centers and the Job Corps program relating to
each of the core indicators of performance of youth
activities identified in section 136(b)(2)(A)(ii).
(2) Performance of recruiters.--The Secretary shall
also establish performance [measures] indicators, and
expected performance levels on the performance
[measures] indicators, for local and national
recruitment service providers serving the Job Corps
program. The performance [measures] indicators shall
relate to the number of enrollees retained in the Job
Corps program for 30 days and for 60 days after initial
placement in the program.
(3) Report.--The Secretary shall collect, and
annually submit a report to the appropriate committees
of Congress containing, information on the performance
of each Job Corps center, and the Job Corps program, on
the [core performance measures, as compared to the
expected performance level for each performance
measure] performance indicators described in paragraph
(1), as compared to the expected level of performance
established under paragraph (1) for each performance
measure. The report shall also contain information on
the performance of the service providers described in
paragraph (2) on the performance [measures] indicators
established under such paragraph, as compared to the
expected performance levels for the performance
[measures] indicators.
(f) Performance Assessments and Improvements.--
(1) Assessments.-- * * *
(2) Performance improvement plans.--With respect to a
Job Corps center that fails to meet the expected levels
of performance relating to the [core performance
measures] indicators of performance specified in
subsection (c), the Secretary shall develop and
implement a performance improvement plan. Such a plan
shall require action including--
* * * * * * *
SEC. 161. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
subtitle such sums as may be necessary for each of the fiscal
years [1999 through 2003] 2004 through 2009.
* * * * * * *
Subtitle D--National Programs
SEC. 166. NATIVE AMERICAN PROGRAMS.
(a) Purpose.--
(1) In general.-- * * *
* * * * * * *
(h) Administrative Provisions.--
(1) Organizational unit established.-- * * *
* * * * * * *
(4) Advisory council.--
(A) In general.-- * * *
* * * * * * *
[(C) Duties.--The Council shall advise the
Secretary on aspects of the operation and
administration of the programs assisted under
this section, including the selection of the
individual appointed as the head of the unit
established under paragraph (1).]
(C) Duties.--The Council shall advise the
Secretary on the operation and administration
of the programs assisted under this section,
including the selection of the individual
appointed as head of the unit established under
paragraph (1).
* * * * * * *
[(j) Assistance to American Samoans in Hawaii.--
[(1) In general.--Notwithstanding any other provision
of law, the Secretary is authorized to provide
assistance to American Samoans who reside in Hawaii for
the co-location of federally funded and State-funded
workforce investment activities.
[(2) Authorization of appropriations.--There are
authorize to be appropriated for fiscal year 1999 such
sums as may be necessary to carry out this subsection.]
(j) Assistance to Unique Populations in Alaska and
Hawaii.--
(1) In general.--Notwithstanding any other provision
of law, the Secretary is authorized to provide
assistance to unique populations who reside in Alaska
or Hawaii to improve job training and workforce
investment activities.
(2) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection such sums as may be necessary for fiscal
year 2004.
(k) Performance Indicators.--
(1) Development of indicators.--The Secretary, in
consultation with the Native American Employment and
Training Council, shall develop a set of performance
indicators and standards which shall be applicable to
programs under this section.
(2) Special considerations.--Such performance
indicators and standards shall take into account--
(A) the purposes of the programs under this
section as described in paragraph (a)(1);
(B) the needs of the groups served by this
section, including the differences in needs
among such groups in various geographic service
areas; and
(C) the economic circumstances of the
communities served, including differences in
circumstances among various geographic service
areas.
* * * * * * *
SEC. 167. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.
(a) In General.-- * * *
* * * * * * *
(d) Authorized Activities.--Funds made available under this
section and section 127(b)(1)(A)(iii) shall be used to carry
out workforce investment activities (including youth
activities) and provide related assistance for eligible migrant
and seasonal farmworkers, which may include employment,
training, educational assistance, literacy assistance, an
English language program, worker safety training, housing
(including permanent housing), supportive services, dropout
prevention activities, followup services for those individuals
placed in employment, self-employment and related business
enterprise development education as needed by eligible migrant
and seasonal farmworkers and identified pursuant to the plan
required by subsection (c), and technical assistance relating
to capacity enhancement in such areas as management information
technology.
* * * * * * *
SEC. 168. VETERANS' WORKFORCE INVESTMENT PROGRAMS.
(a) Authorization.--
(1) In general.-- * * *
* * * * * * *
(3) Required activities.--Programs supported under
this section shall include--
(A) * * *
(B) * * *
(C) outreach and public information
activities to develop and promote maximum job
and job training opportunities for such
veterans and to inform such veterans about
employment, job training, on-the-job training
and educational opportunities under this title,
under title 38, United States Code, and under
other provisions of law, which activities shall
be coordinated with activities provided through
the one-stop centers described in [section
134(c)] section 121(e).
* * * * * * *
[SEC. 169. YOUTH OPPORTUNITY GRANTS.
[(a) Grants.--
[(1) In general.--Using funds made available under
section 127(b)(1)(A), the Secretary shall make grants
to eligible local boards and eligible entities
described in subsection (d) to provide activities
described in subsection (b) for youth to increase the
long-term employment of youth who live in empowerment
zones, enterprise communities, and high poverty area
and who seek assistance.
[(2) Definition.--In this section, the term ``youth''
means an individual who is not less than age 14 and not
more than age 21.
[(3) Grant period.--The Secretary may make a grant
under this section for a 1-year period, and may renew
the grant for each of the 4 succeeding years.
[(4) Grant awards.--In making grants under this
section, the Secretary shall ensure that grants are
distributed equitably among local boards and entities
serving urban areas and local boards and entities
serving rural areas, taking into consideration the
poverty rate in such urban and rural areas, as
described in subsection (c)(3)(B).
[(b) Use of Funds.--
[(1) In general.--A local board or entity that
receives a grant under this section shall use the funds
made available through the grant to provide activities
that meet the requirements of section 129, except as
provided in paragraph (2), as well as youth development
activities such as activities relating to leadership
development, citizenship, and community service, and
recreation activities.
[(2) Intensive placement and followup services.--In
providing activities under this section, a local board
or entity shall provide--
[(A) intensive placement services; and
[(B) followup services for not less than 24
months after the completion of participation in
the other activities described in this
subsection, as appropriate.
[(c) Eligible Local Boards.--To be eligible to receive a
grant under the section, a local board shall serve a community
that--
[(1) has been designated as an empowerment zone or
enterprise community under section 1391 of the Internal
Revenue Code of 1986;
[(2)(A) is a State without a zone or community
described in paragraph (1); and
[(B) has been designated as a high poverty area by
the Governor of the State; or
[(3) is 1 of 2 areas in a State that--
[(A) have been designated by the Governor as
areas for which a local board may apply for a
grant under this section and
[(B) meet the poverty rate criteria set forth
in subsections (a)(4), (b), and (d) of section
1392 of the Internal Revenue Code of 1986.
[(d) Eligible Entities.--To be eligible to receive a grant
under this section, an entity (other than a local board)
shall--
[(1) be a recipient of financial assistance under
section 166; and
[(2) serve a community that--
[(A) meets the poverty rate criteria set
forth in subsections (a)(4), (b), and (d) of
section 1392 of the Internal Revenue Code of
1986; and
[(B) is located on an Indian reservation or
serves Oklahoma Indians or Alaska Natives.
[ (e) Application.--To be eligible to receive a grant under
this section, a local board or entity shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require,
including--
[(1) a description of the activities that the local
board or entity will provide under this section to
youth in the community described in subsection (c);
[(2) a description of the performance measures
negotiated under subsection (f), and the manner in
which the local boards or entities will carry out the
activities to meet the performance measures;
[(3) a description of the manner in which the
activities will be linked to activities described in
section 129; and
[(4) a description of the community support,
including financial support through leveraging
additional public and private resources, for the
activities.
[(f) Performance Measures.--
[(1) In general.--The Secretary shall negotiate and
reach agreement with the local board or entity on
performance measures for the indicators of performance
referred to in subparagraphs (A) and (B) of section
136(b)(2) that will be used to evaluate the performance
of the local board or entity in carrying out the
activities described in subsection (b). Each local
performance measure shall consist of such an indicator
of performance, and a performance level referred to in
paragraph (2).
[(2) Performance levels.--The Secretary shall
negotiate and reach agreement with the local board or
entity regarding the levels of performance expected to
be achieved by the local board or entity on the
indicators of performance.
[(g) Role Model Academy Project.--
[(1) In general.--Using the funds made available
pursuant to section 127(b)(1)(A)(iv) for fiscal year
1999, the Secretary shall provide assistance to an
entity to carry out a project establishing a role model
academy for out-of-school youth.
[(2) Residential center.--The entity shall use the
assistance to establish an academy that consists of a
residential center located on the site of a military
installation closed or realigned pursuant to a law
providing for closures and realignment of such
installations.
[(3) Services.--The academy established pursuant to
this subsection shall provide services that--
[(A) utilize a military style model that
emphasizes leadership skills and discipline, or
another model of demonstrated effectiveness;
and
[(B) include vocational training, secondary
school course work leading to a secondary
school diploma or recognized equivalent, and
the use of mentors who serve as role models and
who provide academic training and career
counseling to the youth.]
SEC. 169. YOUTH CHALLENGE GRANTS.
(a) In General.--Of the amounts reserved by the Secretary
under section 127(b)(1)(A) for a fiscal year--
(1) the Secretary shall use not less than 80 percent
to award competitive grants under subsection (b); and
(2) the Secretary may use not more than 20 percent to
award discretionary grants under subsection (c).
(b) Competitive Grants to States and Local Areas.--
(1) Establishment.--From the funds described in
subsection (a)(1), the Secretary shall award
competitive grants to eligible entities to carry out
activities authorized under this subsection to assist
eligible youth in acquiring the skills, credentials,
and employment experience necessary to achieve the
performance outcomes for youth described in section
136.
(2) Eligible entity.--In this subsection, the term
``eligible entity'' means--
(A) a State or consortium of States;
(B) a local board or consortium of local
boards;
(C) a recipient of a grant under section 166
(relating to Native American programs); or
(D) a public or private entity (including a
consortium of such entities) with expertise in
the provision of youth activities, applying in
partnership with a local board or consortium of
local boards.
(3) Applications.--To be eligible to receive a grant
under this subsection, an eligible entity shall submit
an application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require, including--
(A) a description of the activities the
eligible entity will provide to eligible youth
under this subsection, and how the eligible
entity will collaborate with State and local
workforce investment systems established under
this title in the provision of such activities;
(B) a description of the programs of
demonstrated effectiveness on which the
provision of the activities under subparagraph
(A) are based, and a description of how such
activities will expand the base of knowledge
relating to the provision of activities for
youth;
(C) a description of the State, local, and
private resources that will be leveraged to
provide the activities described under
subparagraph (A) in addition to funds provided
under this subsection, and a description of the
extent of the involvement of employers in the
activities;
(D) the levels of performance the eligible
entity expects to achieve with respect to the
indicators of performance for youth specified
in section 136(b)(2)(A)(ii); and
(E) an assurance that the State board of each
State in which the proposed activities are to
be carried out had the opportunity to review
the application, and including the comments, if
any, of the affected State boards on the
application, except that this subparagraph
shall not apply to an eligible entity described
in paragraph (2)(C).
(4) Factors for award.--
(A) In general.--In awarding grants under
this subsection the Secretary shall consider--
(i) the quality of the proposed
activities;
(ii) the goals to be achieved;
(iii) the likelihood of successful
implementation;
(iv) the extent to which the proposed
activities are based on proven
strategies or the extent to which the
proposed activities will expand the
base of knowledge relating to the
provision of activities for youth;
(v) the extent of collaboration with
the State and local workforce
investment systems in carrying out the
proposed activities;
(vi) the extent of employer
involvement in the proposed activities;
(vii) whether there are other Federal
and non-Federal funds available for
similar activities to the proposed
activities, and the additional State,
local, and private resources that will
be provided to carry out the proposed
activities; and
(viii) the quality of proposed
activities in meeting the needs of the
youth to be served.
(B) Equitable geographic distribution.--In
awarding grants under this subsection the
Secretary shall ensure an equitable
distribution of such grants across
geographically diverse areas.
(5) Use of funds.--
(A) In general.--An eligible entity that
receives a grant under this subsection shall
use the grant funds to carry out activities
that are designed to assist youth in acquiring
the skills, credentials, and employment
experience that are necessary to succeed in the
labor market, including the activities
identified in section 129.
(B) Activities.--The activities carried out
pursuant to subparagraph (A) may include the
following:
(i) Training and internships for out-
of-school youth in sectors of the
economy experiencing, or projected to
experience, high growth.
(ii) Dropout prevention activities
for in-school youth.
(iii) Activities designed to assist
special youth populations, such as
court-involved youth and youth with
disabilities.
(iv) Activities combining remediation
of academic skills, work readiness
training, and work experience, and
including linkages to postsecondary
education, apprenticeships, and career-
ladder employment.
(v) Activities, including work
experience, paid internships, and
entrepreneurial training, in areas
where there is a migration of youth out
of the areas.
(C) Participant eligibility.--Youth who are
14 years of age through 21 years of age, as of
the time the eligibility determination is made,
may be eligible to participate in activities
carried out under this subsection.
(6) Grant period.--The Secretary shall make a grant
under this subsection for a period of 2 years and may
renew the grant, if the eligible entity has performed
successfully, for a period of not more than 3
succeeding years.
(7) Matching funds required.--The Secretary shall
require that an eligible entity that receives a grant
under this subsection provide non-Federal matching
funds in an amount to be determined by the Secretary
that is not less than 10 percent of the cost of
activities carried out under the grant. The Secretary
may require that such non-Federal matching funds be
provided in cash resources, noncash resources, or a
combination of cash and noncash resources.
(8) Evaluation.--The Secretary shall reserve not more
than 3 percent of the funds described in subsection
(a)(1) to provide technical assistance to, and conduct
evaluations of (using appropriate techniques as
described in section 172(c)), the projects funded under
this subsection.
(c) Discretionary Grants for Youth Activities.--
(1) In general.--From the funds described in
subsection (a)(2), the Secretary may award grants to
eligible entities to provide activities that will
assist youth in preparing for, and entering and
retaining, employment.
(2) Eligible entity.--In this subsection, the term
``eligible entity'' means a public or private entity
that the Secretary determines would effectively carry
out activities relating to youth under this subsection.
(3) Equitable distribution to rural areas.--In
awarding grants under this subsection the Secretary
shall ensure an equitable distribution of such grants
to rural areas.
(4) Applications.--To be eligible to receive a grant
under this subsection, an eligible entity shall submit
an application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require.
(5) Use of funds.--
(A) In general.--An eligible entity that
receives a grant under this subsection shall
use the grant funds to carry out--
(i) activities that will assist youth
in preparing for, and entering and
retaining, employment, including the
activities described in section 129 for
out-of-school youth;
(ii) activities designed to assist
in-school youth to stay in school and
gain work experience;
(iii) activities designed to assist
youth in economically distressed areas;
and
(iv) such other activities that the
Secretary determines are appropriate to
ensure that youth entering the
workforce have the skills needed by
employers.
(B) Participant eligibility.--Youth who are
14 years of age through 21 years of age, as of
the time the eligibility determination is made,
may be eligible to participate in activities
carried out under this subsection.
(6) Matching funds required.--The Secretary shall
require that an eligible entity that receives a grant
under this subsection provide non-Federal matching
funds in an amount to be determined by the Secretary
that is not less than 10 percent of the cost activities
carried out under the grant. The Secretary may require
that such non-Federal matching funds be provided in
cash resources, noncash resources, or a combination of
cash and noncash resources.
(7) Evaluations.--The Secretary may require that an
eligible entity that receives a grant under this
subsection participate in an evaluation of activities
carried out under this subsection, including an
evaluation using the techniques described in section
172(c).
* * * * * * *
SEC. 170. TECHNICAL ASSISTANCE.
(a) General Technical Assistance.--
(1) In general.--The Secretary shall provide,
coordinate, and support the development of, appropriate
training, technical assistance, staff development, and
other activities, including assistance in replicating
programs of demonstrated effectiveness, to States and
localities, the training of staff providing rapid
response services, the training of other staff of
recipients of funds under this title, the training of
members of State boards and local boards, peer review
activities under this title, and, in particular, to
assist States in making transitions [from carrying out
activities under the provisions of law repeated under
section 199 to carrying out activities under this
title.] to implement the amendments made by the
Workforce Investment Act Amendments of 2003.
(2) Form of assistance.--In carrying out paragraph
(1) on behalf of a State, or recipient of financial
assistance under any of sections 166 through 169, the
Secretary, after consultation with the State or grant
recipient, may award grants and enter into contracts
and cooperative agreements. The Secretary shall also
hire staff qualified to provide the assistance
described in paragraph (1).
* * * * * * *
(b) Dislocated Worker Technical Assistance.--
(1) Authority.--* * *
(2) Training.--Amounts reserved under this subsection
may be used to provide for the training of staff,
including specialists, who provide rapid response
services. Such training shall include instruction in
proven methods of promoting, establishing, and
assisting labor-management committees. [Such projects
shall be administered through the dislocated worker
office described in section 173(b)] Such projects shall
be administered by the Employment and Training
Administration.
(c) Best Practices Coordination.--The Secretary shall--
(1) establish a system through which States may share
information regarding best practices with regard to the
operation of workforce investment activities under this
Act;
(2) evaluate and disseminate information regarding
best practices and identify knowledge gaps; and
(3) commission research under section 172 to address
knowledge gaps identified under paragraph (2).
* * * * * * *
SEC. 171. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND MULTISTATE
PROJECTS.
(a) Strategic Plan.--
(1) In general.-- * * *
* * * * * * *
(b) Demonstration and Pilot Projects.--
(1) In general.--[Under a] Consistent with the
priorities specified in the plan published under
subsection (a), the Secretary shall, through grants or
contracts, carry out demonstration and pilot projects
for the purpose of developing and implementing
techniques and approaches, and demonstrating the
effectiveness of specialized methods, in addressing
employment and training needs. Such projects shall
include the provision of direct services to individuals
to enhance employment opportunities and an evaluation
component and may include--
[(A) the establishment of advanced
manufacturing technology skill centers
developed through local partnerships of
industry, labor, education, community-based
organizations, and economic development
organizations to meet unmet, high-tech skill
needs of local communities;
[(B) projects that provide training to
upgrade the skills of employed workers who
reside and are employed in enterprise
communities or empowerment zones;
[(C) programs conducted jointly with the
Department of Defense to develop training
programs utilizing computerbased and other
innovative learning technologies;
[(D) projects that promote the use of
distance learning, enabling students to take
courses through the use of media technology
such as videos, teleconferencing computers, and
the Internet;
[(E) projects that assist in providing
comprehensive services to increase the
employment rates of out-of-school youth
residing in targeted high poverty areas within
empowerment zones and enterprise communities;]
(A) projects that assist national employers
in connecting with the workforce investment
system established under this title in order to
facilitate the recruitment and employment of
needed workers for career ladder jobs and to
provide information to such system on skills
and occupations in demand;
(B) projects that promote the development of
systems that will improve the maximum
effectiveness of programs carried out under
this title;
(C) projects that focus on opportunities for
employment in industries and sectors of
industries that are experiencing, or are likely
to experience, high rates of growth and jobs
with wages leading to self-sufficiency;
(D) computerized, individualized, self-paced
training projects targeted to dislocated,
disadvantaged, or incumbent workers utilizing
equipment and curriculum designed in
partnership with industries for employment in
the operations, repair, and maintenance of
high-tech equipment that is used in integrated
systems technology;
(E) projects carried out by States and local
areas to test innovative approaches to
delivering employment-related services;
* * * * * * *
(G) projects to assist public housing
authorities that provide, to public housing
residents, job training programs that
demonstrate success in upgrading the job skills
and promoting employment of the residents;
[and]
[(H) projects that assist local areas to
develop and implement local self-sufficiency
standards to evaluate the degree to which
participants in programs under this title are
achieving self-sufficiency.]
(H) projects that provide retention grants,
which shall--
(i) be made to qualified job training
programs offering instruction,
assessment, or professional coaching,
upon placement of a low-income
individual trained by the program
involved in employment with an employer
and retention of the low-income
individual in that employment with that
employer for a period of 1 year, if
that employment provides the low-income
individual with an annual salary--
(I) that is at least $10,000
more than the individual's
federally adjusted income for
the previous year; and
(II) that is not less than
twice the poverty line
applicable to the individual;
and
(ii) be made taking into account the
economic benefit received by the
Federal Government from the employment
and retention of the individual,
including the economic benefit from tax
revenue and decreased public subsidies;
(I) targeted innovation projects that improve
access to and delivery of employment and
training services, with emphasis given to
projects that incorporate advanced technologies
to facilitate the connection of individuals to
the information and tools they need to upgrade
skills;
(J) projects that promote the use of distance
learning, enabling students to take courses
through the use of media technology such as
videos, teleconferencing computers, and the
Internet; and
(K) projects that provide comprehensive
education and training services, and support
services, in coordination with local boards,
for populations in targeted high poverty areas
where the greatest barriers to employment
exist, including ex-offenders, out-of-school
youth, and public assistance recipient
populations.
(2) Limitations.--
(A) Competitive awards.--Grants or contracts
awarded for carrying out demonstration and
pilot projects under this subsection shall be
awarded in accordance with generall applicable
Federal requirements.
[(B) Eligible entities.--Grants or contracts
may be awarded under this subsection only to--
[(i) entities with recognized
expertise in--
[(I) conducting national
demonstration projects;
[(II) utilizing state-of-the-
art demonstration methods; or
[(III) conducting evaluations
of workforce investment
projects; or
[(ii) State and local entities with
expertise in operating or overseeing
workforce investment programs.]
[(C)] (B) Time limits.--The Secretary shall
establish appropriate time limits for carrying
out demonstration and pilot projects under this
subsection.
(c) Multiservice Projects, Research Projects, and
Multistate Projects.--
(1) Multiservice projects.-- * * *
* * * * * * *
(2) Research projects.--
(A) In general.--* * *
[(B) Formula improvement study and report.--
[(i) Study.--The Secretary shall
conduct a 2-year study concerning
improvements in the formulas described
in section 132(b)(1)(B) and paragraphs
(2)(A) and (3) of section 133(b)
(regarding distributing funds under
subtitle B to States and local areas
for adult employment and training
activities). In conducting the study,
the Secretary shall examine means of
improving the formulas by--
[(I) developing formulas
based on statistically reliable
data;
[(II) developing formulas
that are consistent with the
goals and objectives of this
title; and
[(III) developing formulas
based on organizational and
financial stability of State
boards and local boards.
[(ii) Report.--The Secretary shall
prepare and submit to Congress a report
containing the results of the study,
including recommendations for improved
formulas.]
(B) Studies and reports.--
(i) Net impact studies and reports.--
(I) In general.--The
Secretary, in coordination with
the Secretary of Education,
shall conduct studies to
determine the net impacts of
programs, services, and
activities carried out under
this title.
(II) Reports.--The Secretary
shall prepare and disseminate
to the public reports
containing the results of the
studies conducted under
subclause (I).
(ii) Study on resources available to
assist out-of-school youth.--The
Secretary, in coordination with the
Secretary of Education, may conduct a
study examining the resources available
at the Federal, State, and local levels
to assist out-of-school youth in
obtaining the skills, credentials, and
work experience necessary to become
successfully employed, including the
availability of funds provided through
average daily attendance and other
methodologies used by States and local
areas to distribute funds.
(iii) Study of industry-based
certification and credentials.--
(I) In general.--The
Secretary shall conduct a study
concerning the role and
benefits of credentialing and
certification to businesses and
workers in the economy and the
implications of certification
to the services provided
through the workforce
investment system. The study
may examine issues such as--
(aa) the
characteristics of
successful
credentialing and
certification systems
that serve business and
individual needs;
(bb) the relative
proportions of
certificates and
credentials attained
with assistance from
the public sector, with
private-sector training
of new hires or
incumbent workers, and
by individuals on their
own initiative without
other assistance,
respectively;
(cc) the return on
human capital
investments from
occupational
credentials and
industry-based skill
certifications,
including the extent to
which acquisition of
such credentials or
certificates enhances
outcomes such as entry
into employment,
retention, earnings
(including the number
and amount of wage
increases), career
advancement, and layoff
aversion;
(dd) the implications
of the effects of skill
certifications and
credentials to the
types and delivery of
services provided
through the workforce
investment system;
(ee) the role that
Federal and State
governments play in
fostering the
development of and
disseminating
credentials and skill
standards; and
(ff) the use of
credentials by
businesses to achieve
goals for workforce
skill upgrading and
greater operating
efficiency.
(II) Report to congress.--The
Secretary shall prepare and
submit to Congress a report
containing the results of the
study conducted pursuant to
subclause (1). Such report may
include any recommendations
that the Secretary determines
are appropriate to include in
such report relating to
promoting the acquisition of
industry-based certification
and credentials, and the
appropriate role of the
Department of Labor and the
workforce investment system in
supporting the needs of
business and individuals with
respect to such certification
and credentials.
(iv) Study of effectiveness of
workforce investment system in meeting
business needs.--
(I) In general.--Using funds
available to carry out this
section jointly with funds
available to the Secretary of
Commerce and Administrator of
the Small Business
Administration, the Secretary,
in coordination with the
Secretary of Commerce and the
Administrator of the Small
Business Administration, may
conduct a study of the
effectiveness of the workforce
investment system in meeting
the needs of business, with
particular attention to the
needs of small business,
including in assisting workers
to obtain the skills needed to
utilize emerging technologies.
In conducting the study, the
Secretary, in coordination with
the Secretary of Commerce and
the Administrator of the Small
Business Administration, may
examine issues such as--
(aa) methods for
identifying the
workforce needs of
businesses and how the
requirements of small
businesses may differ
from larger
establishments;
(bb) business
satisfaction with the
workforce investment
system, with particular
emphasis on the
satisfaction of small
businesses;
(cc) the extent to
which business is
engaged as a
collaborative partner
in the workforce
investment system,
including the extent of
business involvement as
members of State boards
and local boards, and
the extent to which
such boards and one-
stop centers
effectively collaborate
with business and
industry leaders in
developing workforce
investment strategies,
including strategies to
identify high growth
opportunities;
(dd) ways in which
the workforce
investment system
addresses changing
skill needs of business
that result from
changes in technology
and work processes;
(ee) promising
practices for serving
small businesses;
(ff) the extent and
manner in which the
workforce investment
system uses technology
to serve business and
individual needs, and
how uses of technology
could enhance
efficiency and
effectiveness in
providing services; and
(gg) the extent to
which various segments
of the labor force have
access to and utilize
technology to locate
job openings and apply
for jobs, and
characteristics of
individuals utilizing
such technology (such
as age, gender, race or
ethnicity, industry
sector, and
occupational groups).
(II) Report to congress.--The
Secretary shall prepare and
submit to Congress a report
containing the results of the
study described in clause (I).
Such report may include any
recommendations the Secretary
determines are appropriate to
include in such report,
including ways to enhance the
effectiveness of the workforce
investment system in meeting
the needs of business for
skilled workers.
* * * * * * *
(e) Skill Certification Pilot Projects.--
(1) Pilot projects.--In accordance with subsection
(b) and from funds appropriated pursuant to paragraph
(10), the Secretary shall establish and carry out not
more than 10 pilot projects to establish a system of
industry-validated national certifications of skills,
including--
(A) not more than 8 national certifications
of skills in high-technology industries,
including biotechnology, telecommunications,
highly automated manufacturing (including
semiconductors), nanotechnology, and energy
technology; and
(B) not more than 2 cross-disciplinary
national certifications of skills in homeland
security technology.
(2) Grants to eligible entities.--In carrying out the
pilot projects, the Secretary shall make grants to
eligible entities, for periods of not less than 36
months and not more than 48 months, to carry out the
authorized activities described in paragraph (7) with
respect to the certifications described in paragraph
(1). In awarding grants under this subsection the
Secretary shall take into consideration awarding grants
to eligible entities from diverse geographic areas,
including rural areas.
(3) Eligible entities.--
(A) Definition of eligible entity.--In this
subsection the term ``eligible entity'' means
an entity that shall work in conjunction with a
local board and shall include as a principal
participant one or more of the following:
(i) An educational institution,
including a 2- or 4-year college, or a
technical or vocational school.
(ii) An advanced technology education
center.
(iii) A local board.
(iv) A representative of a business
in a target industry for the
certification involved.
(v) A representative of an industry
association, labor organization, or
community development organization.
(B) History of demonstrated capability
required.--To be eligible to receive a grant
under this subsection, an eligible entity shall
have a history of demonstrated capability for
effective collaboration with industry on
workforce investment activities that is
consistent with the objectives of this title.
(4) Applications.--To be eligible to receive a grant
under this subsection, an eligible entity shall submit
an application to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require.
(5) Criteria.--The Secretary shall establish
criteria, consistent with paragraph (6), for awarding
grants under this subsection.
(6) Priority.--In selecting eligible entities to
receive grants under this subsection, the Secretary
shall give priority to eligible entities that
demonstrate the availability of and ability to provide
matching funds from industry or nonprofit sources. Such
matching funds may be provided in cash or in kind.
(7) Authorized activities.--
(A) In general.--An eligible entity that
receives a grant under this subsection shall
use the funds made available through the
grant--
(i) to facilitate the establishment
of certification requirements for a
certification described in paragraph
(1) for an industry;
(ii) to develop and initiate a
certification program that includes
preparatory courses, course materials,
procedures, and examinations, for the
certification; and
(iii) to collect and analyze data
related to the program at the program's
completion, and to identify best
practices (consistent with paragraph
(8)) that may be used by local and
State workforce investment boards in
the future.
(B) Basis for requirements.--The
certification requirements established under
the grant shall be based on applicable skill
standards for the industry involved that have
been developed by or linked to national centers
of excellence under the National Science
Foundation's Advanced Technological Education
Program. The requirements shall require an
individual to demonstrate an identifiable set
of competencies relevant to the industry in
order to receive certification. The
requirements shall be designed to provide
evidence of a transferable skill set that
allows flexibility and mobility of workers
within a high technology industry.
(C) Relationship to training and education
programs.--The eligible entity shall ensure
that--
(i) a training and education program
related to competencies for the
industry involved, that is flexible in
mode and time frame for delivery and
that meets the needs of those seeking
the certification, is offered; and
(ii) the certification program is
offered at the completion of the
training and education program.
(D) Relationship to the associate degree.--
The eligible entity shall ensure that the
certification program is consistent with the
requirements for a 2-year associate degree.
(E) Availability.--The eligible entity shall
ensure that the certification program is open
to students pursuing associate degrees,
employed workers, and displaced workers.
(8) Consultation.--The Secretary shall consult with
the Director of the National Science Foundation to
ensure that the pilot projects build on the expertise
and information about best practices gained through the
implementation of the National Science Foundation's
Advanced Technological Education Program.
(9) Core components; guidelines; reports.--After
collecting and analyzing the data obtained from the
pilot programs, the Secretary shall--
(A) establish the core components of a model
high-technology certification program;
(B) establish guidelines to assure
development of a uniform set of standards and
policies for such programs;
(C) prepare and submit a report on the pilot
projects to the Committee on Health, Education,
Labor, and Pensions of the Senate and the
Committee on Education and the Workforce of the
House of Representatives; and
(D) make available to the public both the
data and the report.
(10) Authorization of appropriations.--In addition to
amounts authorized to be appropriated under section
174(b), there is authorized to be appropriated
$30,000,000 for fiscal year 2004 to carry out this
subsection.
(f) Integrated Workforce Training Programs for Adults With
Limited English Proficiency.--
(1) Definitions.--In this subsection:
(A) Integrated workforce training.--The term
``integrated workforce training'' means
training that integrates occupational skills
training with language acquisition.
(B) Secretary.--The term ``Secretary'' means
the Secretary of Labor in consultation with the
Secretary of Education.
(2) Demonstration project.--In accordance with
subsection (b) and from funds appropriated pursuant to
paragraph (11), the Secretary shall establish and
implement a national demonstration project designed to
both analyze and provide data on workforce training
programs that integrate English language acquisition
and occupational training.
(3) Grants.--
(A) In general.--In carrying out the
demonstration project, the Secretary shall make
not less than 10 grants, on a competitive
basis, to eligible entities to provide the
integrated workforce training programs. In
awarding grants under this subsection the
Secretary shall take into consideration
awarding grants to eligible entities from
diverse geographic areas, including rural
areas.
(B) Periods.--The Secretary shall make the
grants for periods of not less than 24 months
and not more than 48 months.
(4) Eligible entities.--
(A) In general.--To be eligible to receive a
grant under this subsection, an eligible entity
shall work in conjunction with a local board
and shall include as a principal participant
one or more of the following:
(i) An employer or employer
association.
(ii) A nonprofit provider of English
language instruction.
(iii) A provider of occupational or
skills training.
(iv) A community-based organization.
(v) An educational institution,
including a 2- or 4-year college, or a
technical or vocational school.
(vi) A labor organization.
(vii) A local board.
(B) Expertise.--To be eligible to receive a
grant under this subsection, an eligible entity
shall have proven expertise in--
(i) serving individuals with limited
English proficiency, including
individuals with lower levels of oral
and written English; and
(ii) providing workforce programs
with training and English language
instruction.
(5) Applications.--
(A) In general.--To be eligible to receive a
grant under this subsection, an eligible entity
shall submit an application to the Secretary at
such time, in such manner, and containing such
information as the Secretary may require.
(B) Contents.--Each application submitted
under subparagraph (A) shall--
(i) contain information, including
capability statements, that
demonstrates that the eligible entity
has the expertise described in
paragraph (4)(B); and
(ii) include an assurance that the
program to be assisted shall--
(I) establish a generalized
adult bilingual workforce
training and education model
that integrates English
language acquisition and
occupational training, and
incorporates the unique
linguistic and cultural factors
of the participants;
(II) establish a framework by
which the employer, employee,
and other relevant members of
the eligible entity can create
a career development and
training plan that assists both
the employer and the employee
to meet their long-term needs;
(III) ensure that the
framework established under
subclause (II) takes into
consideration the knowledge,
skills, and abilities of the
employee with respect to both
the current and economic
conditions of the employer and
future labor market conditions
relevant to the local area; and
(IV) establish identifiable
measures so that the progress
of the employee and employer
and the relative efficacy of
the program can be evaluated
and best practices identified.
(6) Criteria.--The Secretary shall establish criteria
for awarding grants under this subsection.
(7) Integrated workforce training programs.--
(A) Program components.--
(i) Required components.--Each
program that receives funding under
this subsection shall--
(I) test an individual's
English language proficiency
levels to assess oral and
literacy gains from the
beginning and throughout
program enrollment;
(II) combine training
specific to a particular
occupation or occupational
cluster, with--
(aa) English language
instruction, such as
instruction through an
English as a Second
Language program, or an
English for Speakers of
Other Languages
program;
(bb) basic skills
instruction; and
(cc) supportive
services;
(III) effectively integrate
public and private sector
entities, including the local
workforce investment system and
its functions, to achieve the
goals of the program; and
(IV) require matching or
inkind resources from private
and nonprofit entities.
(ii) Permissible components.--The
program may offer other services, as
necessary to promote successful
participation and completion, including
work-based learning, substance abuse
treatment, and mental health services.
(B) Goal.--Each program that receives funding
under this subsection shall be designed to
prepare limited English proficient adults for,
and place such adults in employment in, growing
industries with identifiable career ladder
paths.
(C) Program types.--In selecting programs to
receive funding under this subsection, the
Secretary shall select programs that meet 1 or
more of the following criteria:
(i) A program that--
(I) serves unemployed,
limited English proficient
individuals with significant
work experience or substantial
education but persistently low
wages; and
(II) aims to prepare such
individuals for, and place such
individuals in, higher paying
employment, defined for
purposes of this subparagraph
as employment that provides at
least 75 percent of the median
wage in the local area.
(ii) A program that--
(I) serves limited English
proficient individuals with
lower levels of oral and
written fluency, who are
working but at persistently low
wages; and
(II) aims to prepare such
individuals for, and place such
individuals in, higher paying
employment, through services
provided at the worksite, or at
a location central to several
work sites, during work hours.
(iii) A program that--
(I) serves unemployed,
limited English proficient
individuals with lower levels
of oral and written fluency,
who have little or no work
experience; and
(II) aims to prepare such
individuals for, and place such
individuals in, employment
through services that include
subsidized employment, in
addition to the components
required in subparagraph
(A)(i).
(iv) A program that includes funds
from private and nonprofit entities.
(D) Program approaches.--In selecting
programs to receive funding under this
subsection, the Secretary shall select programs
with different approaches to integrated
workforce training, in different contexts, in
order to obtain comparative data on multiple
approaches to integrated workforce training and
English language instruction, to ensure
programs are tailored to characteristics of
individuals with varying skill levels and to
assess how different curricula work for limited
English proficient populations. Such approaches
may include--
(i) bilingual programs in which the
workplace language component and the
training are conducted in a combination
of an individual's native language and
English;
(ii) integrated workforce training
programs that combine basic skills,
language instruction, and job specific
skills training; or
(iii) sequential programs that
provide a progression of skills,
language, and training to ensure
success upon an individual's completion
of the program.
(8) Evaluation by eligible entity.--Each eligible
entity that receives a grant under this subsection for
a program shall carry out a continuous program
evaluation and an evaluation specific to the last phase
of the program operations.
(9) Evaluation by secretary.--
(A) In general.--The Secretary shall conduct
an evaluation of program impacts of the
programs funded under the demonstration
project, with a random assignment, experimental
design impact study done at each worksite at
which such a program is carried out.
(B) Data collection and analysis.--The
Secretary shall collect and analyze the data
from the demonstration project to determine
program effectiveness, including gains in
language proficiency, acquisition of skills,
and job advancement for program participants.
(C) Report.--The Secretary shall prepare and
submit to the Committee on Health, Education,
Labor, and Pensions of the Senate and the
Committee on Education and the Workforce of the
House of Representatives, and make available to
the public, a report on the demonstration
project, including the results of the
evaluation.
(10) Technical assistance.--The Secretary shall
provide technical assistance to recipients of grants
under this subsection throughout the grant periods.
(11) Authorization of appropriations.--In addition to
amounts authorized to be appropriated under section
174(b), there is authorized to be appropriated
$10,000,000 for fiscal year 2004 to carry out this
subsection.
* * * * * * *
[SEC. 173. NATIONAL EMERGENCY GRANTS.]
SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.
[(a) In General.--The Secretary is authorized to award
national emergency grants in a timely manner--]
(a) In General.--The Secretary is authorized to award
national dislocated worker grants--
(1) to an entity described in [subsection (c)]
subsection (b) to provide employment and training
assistance to workers affected by major economic
dislocations, such as plant closures, mass layoffs, or
closures and realignments of military installations;
* * * * * * *
(3) to provide additional assistance to a State or
local board for eligible dislocated workers in a case
in which the State or local board has expended the
funds provided under this section to carry out
activities described in paragraphs (1) and (2) and can
demonstrate the need for additional funds to provide
appropriate services for such workers, in accordance
with requirements prescribed by the Secretary; [and]
[(4) from funds appropriated under section 174(c)--
[(A) to a State or entity (as defined in
section 173(c)(1)(B) to carry out subsection
(f), including providing assistance to eligible
individuals; and
[(B) to a State or entity (as so defined) to
carry out subsection (g), including providing
assistance to eligible individuals.]
(4) to a State or entity (as defined in subsection
(b)(1)(B) to carry out subsection (e), including
providing assistance to eligible individuals;
(5) to a State or entity (as defined in subsection
(b)(1)(B)) to carry out subsection (f), including
providing assistance to eligible individuals;
(6) to provide additional assistance to a State board
or local board where a higher than average demand for
employment and training services for dislocated members
of the Armed Forces, or spouses, as defined in section
101(9)(E), of members of the Armed Forces as described
in subsection (b)(2)(A)(iv), exceeds State and local
resources for providing such services, and where such
programs are to be carried out in partnership with the
Department of Defense and Department of Veterans
Affairs transition assistance programs; and
(7) to provide assistance to a State for statewide or
local use in order to--
(A) address cases in which there have been
worker dislocations across multiple sectors or
across multiple local areas and such workers
remain dislocated;
(B) coordinate the State plan described in
section 112 with emerging economic development
needs; and
(C) train eligible individuals who are
dislocated workers described in subparagraph
(A).
The Secretary shall issue a final decision on an application
for a national dislocated worker grant under this subsection
not later than 60 calendar days after receipt of the
application. The Secretary shall issue a notice of obligation
for such a grant not later than 10 days after the award of the
grant.
[(b) Administration.--The Secretary shall designate a
dislocated worker office to coordinate the functions of the
Secretary under this title relating to employment and training
activities for dislocated workers, including activities carried
out under the national emergency grants.]
[(c)] (b) Employment and Training Assistance
Requirements.--
(1) Grant recipient eligibility.--
* * * * * * *
[(d)] (c) Disaster Relief Employment Assistance
Requirements.--
(1) In general.--Funds made available under
subsection (a)(2)--
* * * * * * *
[(e)] (d) Additional Assistance.--
[(1) In general.--From the amount appropriated and
made available to carry out this section for any
program year, the Secretary shall use not more than
$15,000,000 to make grants to not more than 8 States to
provide employment and training activities under
section 134, in accordance with subtitle B.
[(2) Eligible states.--The Secretary shall make a
grant under paragraph (1) to a State for a program year
if--
[(A)(i) the amount of the allotment that
would be made to the State for the program year
under the formula specified in section 202(a)
of the Job Training Partnership Act, as in
effect on July 1, 1998; is greater than
[(ii) the amount of the allotment that would
be made to the State for the program year under
the formula specified in section 132(b)(1)(B);
and
[(B) the State is 1 of the 8 States with the
greatest quotient obtained by dividing--
[(i) the amount described in
subparagraph (A)(i); by
[(ii) the amount described in
subparagraph (A)(ii).
[(3) Amount of grants.--Subject to paragraph (1), the
amount of the grant made under paragraph (1) to a State
for a program year shall be based on the difference
between--
[(A) the amount of the allotment that would
be made to the State for the program year under
the formula specified in section 202(a) of the
Job Training Partnership Act, as in effect on
July 1, 1998; and
[(B) the amount of the allotment that would
be made to the State for the program year under
the formula specified in section 132(b)(1)(B).
[(4) Allocation of funds.--A State that receives a
grant under paragraph (1) for a program year--
[(A) shall allocate funds made available
through the grant on the basis of the formula
used by the State to allocate funds within the
State for that program year under--
[(i) paragraph (2)(A) or (3) of
section 133(b); or
[(ii) paragraph (2)(B) of section
133(b); and
[(B) shall use the funds in the same manner
as the State uses other funds allocated under
the appropriate paragraph of section 133(b).]
(d) Additional Assistance.--
(1) In general.--From the amount appropriated and
made available to carry out this section for any
program year, the Secretary shall use not more than
$20,000,000 to make grants to States to provide
employment and training activities under section 134,
in accordance with subtitle B.
(2) Eligible states.--The Secretary shall make a
grant under paragraph (1) to a State for a program year
if--
(A) the amount of the allotment that was made
to the State for the program year 2003 under
the formula specified in section 132(b)(1)(B)
as such section was in effect on July 1, 2003,
is greater than
(B) the amount of the allotment that would be
made to the State for the program year under
the formula specified in section 132(b)(1)(B).
(3) Amount of grants.--Subject to paragraph (1), the
amount of the grant made under paragraph (1) to a State
for a program year shall be based on the difference
between--
(A) the amount of the allotment that was made
to the State for the program year 2003 under
the formula specified in section 132(b)(1)(B)
as such section was in effect on July 1, 2003;
and
(B) the amount of the allotment that would be
made to the State for the program year under
the formula specified in section 132(b)(1)(B).
[(f)] (e) Health Insurance Coverage Assistance for Eligible
Individuals.--
(1) In general.--Funds made available to a State or
entity under [paragraph (4)(A)] paragraph (4) of
subsection (a) may be used by the State or entity for
the following:
(A) Health insurance coverage.--To assist an
eligible individual and such individual's
qualifying family members in enrolling in
qualified health insurance.
(B) Administrative and start-up expenses.--To
pay the administrative expenses related to the
enrollment of eligible individuals and such
individuals' qualifying family members in
qualified health insurance, including--
(i) eligibility verification
activities;
* * * * * * *
(2) Qualified health insurance.--For purposes of this
subsection and [subsection (g)] subsection (f)--
* * * * * * *
(4) Eligible individual defined.--For purposes of
this subsection and [subsection (g)] subsection (f),
the term ``eligible individual'' means--
* * * * * * *
(5) Qualifying family member defined.--For purposes
of this subsection and [subsection (g)] subsection
(f)--
* * * * * * *
(6) State.--For purposes of this subsection and
[subsection (g)] subsection (f), the term ``State''
includes an entity as defined in [subjection (c)(1)(B)]
subsection (b)(1)(B).
[(g)] (f) Interim Health Insurance Coverage and Other
Assistance.--
(1) In general.--Funds made available to a State or
entity under [paragraph (4)(B)] paragraph (4) of
subsection (a) may be used by the State or entity to
provide assistance an support services to eligible
individuals, including health care coverage to the
extent provided under [subsection (f)(1)(A)] subsection
(e)(1)(A), transportation, child care, dependent care,
and income assistance.
* * * * * * *
SEC. 174. AUTHORIZATION OF APPROPRIATIONS.
(a) Native American Programs; Migrant and Seasonal
Farmworker Programs; Veterans' Workforce Investment Programs.--
(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated to carry out sections 166
through 168 such sums as may be necessary for each of
the fiscal years [1999 through 2003] 2004 through 2009.
* * * * * * *
[(b) Technical Assistance; Demonstration and Pilot
Projects; Evaluations; Incentive Grants.--
[(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated to carry out sections 170
through 172 and section 503 such sums as may be
necessary for each of the fiscal years 1999 through
2003.
[(2) Reservations.--Of the amount appropriated
pursuant to the authorization of appropriations under
paragraph (1) for a fiscal year, the Secretary shall--
[(A)(i) for fiscal year 1999, reserve up to
40 percent for carrying out section 170 (other
than subsection (b) of such section);
[(ii) for fiscal year 2000, reserve up to 25
percent for carrying out section 170 (other
than subsection (b) of such section); and
[(iii) for each of the fiscal years 2001
through 2003, reserve up to 20 percent for
carrying out section 170 (other than subsection
(b) of such section);
[(B)(i) for fiscal year 1999, reserve not
less than 50 percent for carrying out section
171; and
[(ii) for each of the fiscal years 2000
through 2003, reserve not less than 45 percent
for carrying out section 171;
[(C)(i) for fiscal year 1999, reserve not
less than 10 percent for carrying out section
172; and
[(ii) for each of the fiscal years 2000
through 2003, reserve not less than 10 percent
for carrying out section 172; and
[(D)(i) for fiscal year 1999, reserve no
funds for carrying out section 503;
[(ii) for fiscal year 2000, reserve up to 20
percent for carrying out section 503; and
[(iii) for each of the fiscal years 2001
through 2003, reserve up to 25 percent for
carrying out section 503.]
(b) Technical Assistance; Demonstration and Pilot Projects,
Evaluations, Incentive Grants.--There are authorized to be
appropriated to carry out sections 170 through 172 and section
136(i) such sums as may be necessary for each of fiscal years
2004 through 2009.
* * * * * * *
Subtitle E--Administration
SEC. 181. REQUIREMENTS AND RESTRICTIONS.
(a) Benefits.--
(1) Wages.--
(A) In general.--* * *
* * * * * * *
(e) Limitation on Use of Funds.--No funds available under
this title shall be used for employment generating activities,
[economic development activities,] investment in revolving loan
funds, capitalization of businesses, investment in contract
bidding resource centers, and similar activities that are not
directly related to training for eligible individuals under
this title. No funds available under subtitle B shall be used
for foreign travel.
* * * * * * *
SEC. 185. REPORTS; RECORDKEEPING; INVESTIGATIONS.
(a) Reports.--
(1) In general.--* * *
* * * * * * *
(c) Accessibility of Reports.--Each State, each local
board, and each recipient (other than a subrecipient,
subgrantee, or contractor of a recipient) receiving funds under
this title--
(1) shall make readily accessible such reports
concerning its operations and expenditures as shall be
prescribed by the Secretary;
(2) shall prescribe and maintain comparable
management information systems, in accordance with
guidelines that shall be prescribed by the Secretary,
designed to facilitate the uniform compilation, cross
tabulation, and analysis of programmatic, participant,
and financial data, on statewide, local area, and other
appropriate bases, necessary for reporting, monitoring,
and evaluating purposes, including data necessary to
comply with section 188; [and]
(3) shall monitor the performance of providers in
complying with the terms of grants, contracts, or other
agreements made pursuant to this title[.]; and
(4) shall have the option to submit or disseminate
electronically any reports, records, plans, or any
other data that are required to be collected or
disseminated under this title.
SEC. 189. ADMINISTRATIVE PROVISIONS.
(a) In General.-- * * *
* * * * * * *
(d) Annual Report.--The Secretary shall prepare and submit
to Congress an annual report regarding the programs and
activities carried out under this title. The Secretary shall
include in such report--
* * * * * * *
(3) recommendations for modifications in the programs
and activities based on analysis of such findings;
[and]
(4) the negotiated levels of performance of the
States, the States' requests for adjustments of such
levels, and the adjustments of such levels that are
made; and
[(4)] (5) such other recommendations for legislative
or administrative action as the Secretary determines to
be appropriate.
* * * * * * *
(g) Program Year.--
(1) In general.--
(A) Program year.--* * *
* * * * * * *
(2) Availability.--[Funds] Except as otherwise
provided in this paragraph, funds obligated for any
program year for a program or activity carried out
under this title may be expended by [each State
receiving] each recipient of such funds during that
program year and the 2 succeeding program years. Funds
obligated for any program year for a program or
activity carried out under section 171 or 172 shall
remain available until expended. Funds received by
local areas from States under this title during a
program year may be expended during that program year
and the succeeding program year. No amount of the funds
described in this paragraph shall be deobligated on
account of a rate of expenditure that is consistent
with a State plan, an operating plan described in
section 151, or a plan, grant agreement, contract,
application, or other agreement described in subtitle
D, as appropriate.
* * * * * * *
(i) Waivers and Special Rules.--
(1) Existing waivers.--* * *
* * * * * * *
(4) General waivers of statutory or regulatory
requirements.--
(A) General authority.--Notwithstanding any
other provision of law, the Secretary may waive
for a State, or a local area in a State,
pursuant to a request submitted by the Governor
of the State (in consultation with appropriate
local elected officials) that meets the
requirements of subparagraph (B)--
(i) any of the statutory or
regulatory requirements of subtitle B
or this subtitle (except for
requirements relating to wage and labor
standards, including nondisplacement
protections, worker rights,
participation and protection of workers
and participants, grievance procedures
and judicial review, nondiscrimination,
allocation of funds to local areas,
eligibility of providers or
participants, the establishment and
functions of local areas and local
boards, the funding of infrastructure
costs for one-stop centers, and
procedures for review and approval of
plans); and
* * * * * * *
(D) Expedited requests.--The Secretary shall
expedite requests for waivers of statutory or
regulatory requirements that have been approved
for a State pursuant to subparagraph (B), if
the requirements of this paragraph have been
satisfied.
* * * * * * *
[SEC. 193. USE OF CERTAIN REAL PROPERTY.
[(a) In General.--Notwithstanding any other provision of
law, the Governor may authorize a public agency to make
available, for the use of a one-stop service delivery system
within the State which is carried out by a consortium of
entities that includes the public agency, real property in
which, as of the date of the enactment of the Workforce
Investment Act of 1998, the Federal Government has acquired
equity through the use of funds provided under title III of the
Social Security Act (42 U.S.C. 501 et seq.), section 903(c) of
such Act (42 U.S.C. 1103(c)), or the Wagner-Peyser Act (29
U.S.C. 49 et seq.).
[(b) Use of Funds.--Subsequent to the commencement of the
use of the property described in subsection (a) for the
functions of a one-stop service delivery system, funds provided
under the provisions of law described in subsection (a) may
only be used to acquire further equity in such property, or to
pay operating and maintenance expenses relating to such
property in proportion to the extent of the use of such
property attributable to the activities authorized under such
provisions of law.]
* * * * * * *
SEC. 193. TRANSFER OF FEDERAL EQUITY IN STATE EMPLOYMENT SECURITY
AGENCY REAL PROPERTY TO THE STATES.
(a) Transfer of Federal Equity.--Notwithstanding any other
provision of law, any Federal equity acquired in real property
through grants to States awarded under title III of the Social
Security Act (42 U.S.C. 501 et seq.) or under the Wagner-Peyser
Act is transferred to the States that used the grants for the
acquisition of such equity. The portion of any real property
that is attributable to the Federal equity transferred under
this section shall be used to carry out activities authorized
under title III of the Social Security Act or the Wagner-Peyser
Act. Any disposition of such real property shall be carried out
in accordance with the procedures prescribed by the Secretary
and the portion of the proceeds from the disposition of such
real property that is attributable to the Federal equity
transferred under this section shall be used to carry out
activities authorized under title III of the Social Security
Act or the Wagner-Peyser Act.
(b) Limitation on Use.--A State shall not use funds awarded
under title III of the Social Security Act or the Wagner-Peyser
Act to amortize the costs of real property that is purchased by
any State on or after the effective date of this provision.
* * * * * * *
SEC. 503. INCENTIVE GRANTS.
[(a) In General.--Beginning on July 1, 2000, the Secretary
shall award a grant to each State that exceeds the State
adjusted levels of performance for title I, the adjusted levels
of performance for title II, and the levels of performance for
programs under Public Law 105-332 (20 U.S.C. 2301 et seq.), for
the purpose of carrying out an innovative program consistent
with the requirements of any one or more of the programs within
title I, title II, or such Public Law, respectively.]
(a) In General.--
(1) Prior to july 1, 2005.--Prior to July 1, 2005,
the Secretary shall award a grant to each State in
accordance with the provisions of this section as this
section was in effect on July 1, 2003.
(2) Beginning on july 1, 2005.--Beginning on July 1,
2005, the Secretary shall award a grant to each State
on the basis--
(A) of the State's exceeding the State
adjusted levels of performance for title I, the
adjusted levels of performance for title II,
and the levels of performance for programs
under the Carl D. Perkins Vocational and
Technical Education Act of 1998 (20 U.S.C. 2301
et seq.), for the purpose of carrying out an
innovative program consistent with the
requirements of any one or more of the programs
within title I, title II, or such Act,
respectively;
(B) of exemplary performance of the States in
serving hard-to-serve populations (as defined
in section 101) (including performance relating
to the levels of service provided and the
performance outcomes on such performance
measures with respect to the populations);
(C) of States that are effectively--
(i) coordinating multiple systems
into a more effective workforce
investment system, including
coordination of employment services
under the Wagner-Peyser Act and core
activities under title I as well as
partner programs described in section
121;
(ii) expanding access to training,
including through increased leveraging
of resources other than those funded
through programs under title I; or
(iii) implementing innovative
business and economic development
initiatives; or
(D) of such other factors relating to the
performance of the States under title I as the
Secretary determines are appropriate.
(b) Application.--
(1) In general.--The Secretary may provide a grant to
a State under subsection (a) only if the State submits
an application to the Secretary for the grant that
meets the requirements of paragraph (2).
(2) Requirements.--* * *
* * * * * * *
(D) Use of funds.--The funds awarded to a
State under this section may be used to carry
out any activities authorized for States under
chapters 4 and 5 of subtitle B of title I,
title II, and the Carl D. Perkins Vocational
and Technical Education Act of 1998, including
demonstration projects and innovative programs
for hard-to-serve populations (as defined in
section 101).
* * * * * * *
ADULT EDUCATION AND FAMILY LITERACY ACT
* * * * * * *
SEC. 202. PURPOSE.
It is the purpose of this title to create a partnership
among the Federal Government, States, and localities to
provide, on a voluntary basis, adult education and literacy
services, in order to--
(1) assist adults to become literate and obtain the
knowledge and skills necessary for employment and self-
sufficiency;
(2) assist adults who are parents to obtain the
educational skills necessary to become full partners in
the educational development of their children; [and]
(3) assist adults in the completion of a secondary
school [education.] education and in the transition to
postsecondary education; and
(4) assist immigrants and other individuals with
limited English proficiency in improving their reading,
writing, speaking, and mathematics skills and acquiring
an understanding of the American free enterprise
system, individual freedom, and the responsibilities of
citizenship.
SEC. 203. DEFINITIONS.
In this title:
(1) Adult education.--The term ``adult education''
means [services or instruction below the postsecondary
level] academic instruction and education services
below the postsecondary level that increase an
individual's ability to read, write, and speak in
English and perform mathematics for individuals--
* * * * * * *
(C) who--
[(i) lack sufficient mastery of basic
educational skills to enable the
individuals to function effectively in
society;]
(i) are basic skills deficient as
defined in section 101;
* * * * * * *
(2) Adult education and literacy activities.--The
term ``adult education and literacy activities'' means
[activities described in section 231(b)] programs and
services which include reading, writing, speaking, or
mathematics skills, workplace literacy activities,
family literacy activities, English language
acquisition activities, or other activities necessary
for the attainment of a secondary school diploma or its
State recognized equivalent.
* * * * * * *
(5) Eligible provider.--The term ``eligible
provider'' means an organization that has demonstrated
effectiveness in providing adult education, that may
include--
(A) * * *
(B) a community-based organization [of
demonstrated effectiveness];
(C) a volunteer literacy organization [of
demonstrated effectiveness];
* * * * * * *
(I) a consortium or coalition of the
agencies, organizations, institutions,
libraries, or authorities described in any of
subparagraphs (A) through (H).
(6) English [literacy program] language acquisition
program.--The term ``English [literacy program]
language acquisition program'' means a program of
instruction designed to help individuals of limited
English proficiency achieve competence in reading,
writing, and speaking the English language.
(7) Essential components of reading instruction.--The
term ``essential components of reading instruction''
has the meaning given the term in section 1208 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6368).
[(7)] (8) Family literacy services.--The term
``family literacy services'' means services that are of
sufficient intensity in terms of hours, and of
sufficient duration, to make sustainable changes in a
family, and that integrate all of the following
activities:
(A) Interactive literacy activities between
parents and their children.
(B) Training for parents regarding how to be
the primary teacher for their children and full
partners in the education of their children.
(C) Parent literacy training that leads to
economic self-sufficiency.
(D) An age-appropriate education to prepare
children for success in school and life
experiences.
[(8)] (9) Governor.--The term ``Governor'' means the
chief executive officer of a State or outlying area.
[(9)] (10) Individual with a disability.--
(A) In general.--The term ``individual with a
disability'' means an individual with any
disability (as defined in section 3 of the
Americans with Disabilities Act of 1990 (42
U.S.C. 12102)).
(B) Individuals with disabilities.--The term
``individuals with disabilities'' means more
than one individual with a disability.
[(10)] (11) Individual of limited english
proficiency.--The term ``individual of limited English
proficiency'' means an adult or out-of-school youth who
has limited ability in speaking, reading, writing, or
understanding the English language, and--
(A) whose native language is a language other
than English; or
(B) who lives in a family or community
environment where a language other than English
is the dominant language.
[(11)] (12) Institution of higher education.--The
term ``institution of higher education'' has the
meaning given the term in section 101 of the Higher
Education Act of 1965.
[(12)] (13) Literacy.--The term ``literacy'' means an
individual's ability to read, write, and speak in
English, compute, and solve problems, at levels of
proficiency necessary to function on the job, in the
family of the individual, and in society.
[(13)] (14) Local educational agency.--The term
``local educational agency'' has the meaning given the
term in section 9101 of the Elementary and Secondary
Education Act of 1965.
[(14)] (15) Outlying area.--The term ``outlying
area'' has the meaning given the term in section 101.
[(15)] (16) Postsecondary educational institution.--
The term ``postsecondary educational institution''
means--
(A) an institution of higher education that
provides not less than a 2-year program of
instruction that is acceptable for credit
toward a bachelor's degree;
(B) a tribally controlled community college;
or
(C) a nonprofit educational institution
offering certificate or apprenticeship programs
at the postsecondary level.
[(16)] (17) Secretary.--The term ``Secretary'' means
the Secretary of Education.
[(17)] (18) State.--The term ``State'' means each of
the several States of the United States, the District
of Columbia, and the Commonwealth of Puerto Rico.
[(18)] (19) Workplace literacy services.--The term
``workplace literacy services'' means literacy services
that are offered for the purpose of improving the
productivity of the workforce through the improvement
of literacy skills.]
(19) Workplace literacy program.--The term
``workplace literacy program'' means an educational
program designed to improve the productivity of the
workforce through the improvement of literacy skills
that is offered by an eligible provider in
collaboration with an employer or an employee
organization at a workplace, at an off-site location,
or in a simulated workplace environment.
[SEC. 204. HOME SCHOOLS.
[Nothing in this title shall be construed to affect home
schools, or to compel a parent engaged in home schooling to
participate in an English literacy program, family literacy
services, or adult education.]
SEC. 204. HOME SCHOOLS.
Nothing in this title shall be construed to affect home
schools, whether a home school is treated as a home school or a
private school under State law, or to compel a parent engaged
in home schooling to participate in an English literacy
program, family literacy services, or adult education.
SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
title such sums as may be necessary for each of the fiscal
years [1999] 2004 through [2003] 2009.
Subtitle A--Adult Education and Literacy Programs
CHAPTER 1--FEDERAL PROVISIONS
SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES;
ALLOTMENTS.
[(a) Reservation of Funds.--From the sum appropriated under
section 205 for a fiscal year, the Secretary--
[(1) shall reserve 1.5 percent to carry out section
242, except that the amount so reserved shall not
exceed $8,000,000;
[(2) shall reserve 1.5 percent to carry out section
243, except that the amount so reserved shall not
exceed $8,000,000; and
[(3) shall make available, to the Secretary of Labor,
1.72 percent for incentive grants under section 503.]
(a) Reservation of Funds.--From the sum appropriated under
section 205 for a fiscal year, the Secretary--
(1) shall reserve 1.5 percent to carry out section
242, except that the amount so reserved shall not
exceed $10,000,000;
(2) shall reserve 1.5 percent to carry out section
243 and subsection (f)(4), except that the amount so
reserved shall not exceed $8,000,000;
(3) shall make available, to the Secretary of Labor,
1.72 percent for incentive grants under section 136(i);
and
(4) shall reserve 12 percent of the amount that
remains after reserving funds under paragraphs (1), (2)
and (3) to carry out section 244.
* * * * * * *
(c) Allotments.--
(1) Initial allotments.--From the sum appropriated
under section 205 and not reserved under subsection (a)
for a fiscal year, the Secretary shall allot to each
eligible agency having a State plan approved under
section 224(f)--
(A) $100,000, in the case of an eligible
agency serving an outlying area; and
(B) [$250,000] $350,000 in the case of any
other eligible agency.
* * * * * * *
[(d) Qualifying Adult.--For the purpose of subsection
(c)(2), the term ``qualifying adult'' means an adult who--
[(1) is at least 16 years of age;
[(2) is beyond the age of compulsory school
attendance under the law of the State or outlying area;
[(3) does not have a secondary school diploma or its
recognized equivalent; and
[(4) is not enrolled in secondary school.]
(d) Qualifying Adult.--For the purpose of subsection
(c)(2), the term ``qualifying adult'' means an adult who--
(1) is not less than 16 years of age;
(2) is beyond the age of compulsory school attendance
under the law of the State or outlying area;
(3) does not have a secondary school diploma or its
recognized equivalent; and
(4) is not enrolled in secondary school.
(e) Special Rule.--
(1) In general.--* * *
[(2) Award basis.--The Secretary shall award grants
pursuant to paragraph (1) on a competitive basis and
pursuant to recommendations from the Pacific Region
Educational Laboratory in Honolulu, Hawaii.]
(2) Award basis.--The Secretary shall award grants
pursuant to paragraph (1) on a competitive basis and
pursuant to recommendations from the Pacific Region
Educational Laboratory in Honolulu, Hawaii.
(3) Termination of eligibility.--Notwithstanding any
other provision of law, the Republic of the Marshall
Islands, the Federated States of Micronesia, and the
Republic of Palau [shall not receive any funds under
this subtitle for any fiscal year that begins after
September 30, 2001] shall be eligible to receive a
grant under this title until the date when an agreement
for the extension of the United States education
assistance under the Compact of Free Association for
each of the Freely Associated States becomes effective.
* * * * * * *
[(f) Hold-Harmless.--
[(1) In general.--Notwithstanding subsection (c)--
[(A) for fiscal year 1999, no eligible agency
shall receive an allotment under this subtitle
that is less than 90 percent of the payments
made to the State or outlying area of the
eligible agency for fiscal year 1998 for
programs for which funds were authorized to be
appropriated under section 313 of the Adult
Education Act (as such Act was in effect on the
day before the date of the enactment of the
Workforce Investment Act of 1998); and
[(B) for fiscal year 2000 and each succeeding
fiscal year, no eligible agency shall receive
an allotment under this subtitle that is less
than 90 percent of the allotment the eligible
agency received for the preceding fiscal year
under this subtitle.
[(2) Ratable reduction.--If for any fiscal year the
amount available for allotment under this subtitle is
insufficient to satisfy the provisions of paragraph
(1), the Secretary shall ratably reduce the payments to
all eligible agencies, as necessary.
(f) Hold-Harmless Provisions.--
(1) In general.--Notwithstanding subsection (c) and
subject to paragraph (2), for fiscal year 2004 and each
succeeding fiscal year, no eligible agency shall
receive an allotment under this section that is less
than 90 percent of the allotment the eligible agency
received for the preceding fiscal year under this
section.
(2) 100 percent allotment.--Notwithstanding
paragraphs (1) and (2) of subsection (e), an eligible
agency that receives only an initial allotment under
subsection (c)(1) (and no additional allotment under
subsection (c)(2)) shall receive an allotment under
this section that is equal to 100 percent of the
initial allotment under subsection (c)(1).
(3) Ratable reduction.--If for any fiscal year the
amount available for allotment under this subtitle is
insufficient to satisfy the provisions of paragraphs
(1) and (2), the Secretary shall ratably reduce the
payments to all eligible agencies, as necessary.
(4) Additional assistance.--
(A) In general.--From amounts reserved under
subsection (a)(2), the Secretary shall make
grants to eligible agencies described in
subparagraph (B) to enable such agencies to
provide activities authorized under chapter 2.
(B) Eligibility.--An eligible agency is
eligible to receive a grant under this
paragraph for a fiscal year if the amount of
the allotment such agency receives under this
section for the fiscal year is less than the
amount such agency would have received for the
fiscal year if the allotment formula under this
section as in effect on September 30, 2003,
were in effect for such year.
(C) Amount of grant.--The amount of a grant
made to an eligible agency under this paragraph
for a fiscal year shall be the difference
between--
(i) the amount of the allotment such
agency would have received for the
fiscal year if the allotment formula
under this section as in effect on
September 30, 2003, were in effect for
such year; and
(ii) the amount of the allotment such
agency receives under this section for
the fiscal year.
* * * * * * *
SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) Purpose.--* * *
(b) * * *
(1) * * *
(A)(i) * * *
(ii) [additional indicators of performance
(if any)] employment performance indicators
identified by the eligible agency under
paragraph (2)(B); and
* * * * * * *
(2) Indicators of performance.--
(A) Core indicators of performance.--The core
indicators of performance shall include the
following:
(i) [Demonstrated] Measurable
improvements in literacy skill levels
in reading, writing, and speaking the
English language, numeracy, problem
solving, English language acquisition,
and other literacy skills.
[(ii) Placement in, retention in, or
completion of, postsecondary education,
training, unsubsidized employment or
career advancement.]
(ii) Placement in, retention in, or
completion of, postsecondary education
or other training programs.
(iii) Receipt of a secondary school
diploma or its recognized equivalent
(including recognized alternative
standards for individuals with
disabilities).
(B) Employment performance indicators.--An
eligible agency shall identify in the State
plan individual participant employment
performance indicators, including entry into
unsubsidized employment, retention in
unsubsidized employment, and career
advancement. The State workforce investment
board shall assist the eligible agency in
obtaining and using quarterly wage records to
collect data for such indicators, consistent
with applicable Federal and State privacy laws.
[(B)] (C) Additional relevant indicators.--An
eligible agency may identify in the State plan
additional relevant indicators for adult
education and literacy activities authorized
under this subtitle.
(D) Indicators for workplace literacy
programs.--Special accountability measures may
be negotiated for workplace literacy programs.
(3) Levels of performance.--
(A) Eligible agency adjusted levels of
performance for core indicators.--
(i) In general.--* * *
* * * * * * *
(II) show the progress of the
eligible agency toward
continuously improving [in
performance] the agency's
performance outcomes in an
objective, quantifiable, and
measurable form.
(ii) Identification in state plan.--
Each eligible agency shall identify, in
the State plan submitted under section
224, expected levels of performance for
each of the core indicators of
performance for the first [3 program
years] 2 program years covered by the
State plan.
(iii) Agreement on eligible agency
adjusted levels of performance for
[first 3 years] first 2 years.--In
order to ensure an optimal return on
the investment of Federal funds in
adult education and literacy activities
authorized under this subtitle, the
Secretary and each eligible agency
shall reach agreement on levels of
performance for each of the core
indicators of performance, for the
[first 3 program years] first 2 program
years covered by the State plan, taking
into account the levels identified in
the State plan under clause (ii) and
the factors described in clause (iv).
The levels agreed to under this clause
shall be considered to be the eligible
agency adjusted levels of performance
for the eligible agency for such years
and shall be incorporated into the
State plan prior to the approval of
such plan.
* * * * * * *
(v) Agreement on eligible agency
adjusted levels of performance for [4th
and 5th] 3rd and 4th years.--Prior [to
the fourth] to the third program year
covered by the State plan, the
Secretary and each eligible agency
shall reach agreement on levels of
performance for each of the core
indicators of performance for the
[fourth and fifth] third and fourth
program years covered by the State
plan, taking into account the factors
described in clause (iv). The levels
agreed to under this clause shall be
considered to be the eligible agency
adjusted levels of performance for the
eligible agency for such years and
shall be incorporated into the State
plan.
(vi) Revisions.--If unanticipated
circumstances arise in a State
resulting in a significant change in
the factors described in clause (iv)
[II] (I) the eligible agency may
request that the eligible agency
adjusted levels of performance agreed
to under clause (iii) or (v) be
revised. The Secretary, after
collaboration with the representatives
described in section 136(i)(1), shall
issue objective criteria and methods
for making such revisions.
(B) [Levels of performance for additional
indicators] Levels of employment performance.--
The eligible agency [may] shall identify, in
the State plan, eligible agency levels of
performance for each of the [additional]
employment indicators described in paragraph
(2)(B). Such levels shall be considered to be
eligible agency adjusted levels of performance
for purposes of this subtitle.
(C) Alternative assessment systems.--Eligible
agencies may approve the use of assessment
systems that are not commercially available
standardized systems if such systems meet the
Standards for Educational and Psychological
Testing issued by the Joint Committee on
Standards for Educational and Psychological
Testing of the American Educational Research
Association, the American Psychological
Association, and the National Council on
Measurement in Education.
(c) Report.--
(1) In general.--Each eligible agency that receives a
grant under section 211(b) shall annually prepare and
submit to the Secretary the Governor, the State
legislature, and the State workforce investment board a
report on the progress of the eligible agency in
achieving eligible agency performance measures,
[including information on the levels of performance
achieved by the eligible agency with respect to the
core indicators of performance.] including the
following:
(A) Information on the levels of performance
achieved by the eligible agency with respect to
the core indicators of performance, and
employment performance indicators.
(B) The number and type of each eligible
provider that receives funding under such
grant.
(C) The number of enrollees 16 to 18 years of
age who enrolled in adult education not later
than 1 year after participating in secondary
school education.
(2) Information dissemination.--The Secretary--
(A) shall make the information contained in
such reports [available to] eligible providers
and the general public through publication and
other appropriate methods;
* * * * * * *
(3) Data access.--The report made available under
paragraph (2) shall indicate which eligible agencies
did not have access to State unemployment insurance
wage data in measuring employment performance
indicators.
(d) Program Improvement.--
(1) In general.--If the Secretary determines that an
eligible agency did not meet its adjusted levels of
performance for the core indicators of performance
described in subsection (b)(2)(A) for any program year,
the eligible agency shall--
(A) work with the Secretary to develop and
implement a program improvement plan for the 2
program years succeeding the program year in
which the eligible agency did not meet its
adjusted levels of performance; and
(B) revise its State plan under section 224,
if necessary, to reflect the changes agreed to
in the program improvement plan.
(2) Further assistance.--If, after the period
described in paragraph (1)(A), the Secretary has
provided technical assistance to the eligible agency
but determines that the eligible agency did not meet
its adjusted levels of performance for the core
indicators of performance described in subsection
(b)(2)(A), the Secretary may require the eligible
agency to make further revisions to the program
improvement plan described in paragraph (1). Such
further revisions shall be accompanied by further
technical assistance from the Secretary.
* * * * * * *
CHAPTER 2--STATE PROVISIONS
SEC. 221. STATE ADMINISTRATION.
Each eligible agency shall be responsible for the State or
outlying area administration of activities under this subtitle,
including--
(1) the development, submission, [and implementation]
implementation, and monitoring of the State plan;
* * * * * * *
SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.
(a) State Distribution of Funds.--Each eligible agency
receiving a grant under this subtitle for a fiscal year--
(1) shall use not less than [82.5] 80 percent of the
grant funds to award grants and contracts under section
231 and to carry out section 225, of which not more
than 10 percent of [the 82.5 percent] such amount shall
be available to carry out section 225;
(2) shall use [not more than 12.5 percent] not more
than 15 percent of the grant funds to carry out State
leadership activities under section 223; and
(3) shall use not more than 5 percent of the grant
funds, or [$65,000] $75,000, whichever is greater, for
the administrative expenses of the eligible agency.
(b) Matching Requirement.--
(1) In general.--In order to receive a grant from the
Secretary under section 211(b) each eligible agency
shall provide, for the costs to be incurred by the
eligible agency in carrying out the adult education and
literacy activities for which the grant is awarded, a
non-Federal contribution in an amount [equal to] that
is not less than--
* * * * * * *
SEC. 223. STATE LEADERSHIP ACTIVITIES.
(a) In General.--Each eligible agency shall use funds made
available under section 222(a)(2) for one or more of the
following adult education and literacy activities to develop or
enhance the adult education system of the State:
(1) The establishment or operation of professional
development programs to improve the quality of
instruction provided pursuant to local activities
required under section 231(b), including [instruction
incorporating phonemic awareness, systematic phonics,
fluency, and reading comprehension, and instruction
provided by volunteers or by personnel of a State or
outlying area.] instruction incorporating the essential
components of reading instruction and instruction
provided by volunteers or by personnel of a State or
outlying area.
(2) The provision of technical assistance to eligible
providers of adult education and literacy activities,
including development and dissemination of
instructional and programmatic practices based on the
most rigorous research available in reading, writing,
speaking, mathematics, English language acquisition
programs, distance learning and staff training.
* * * * * * *
(5) The [monitoring and] evaluation of the quality
of, and the improvement in, adult education and
literacy activities.
[(6) Incentives for--
[(A) program coordination and integration;
and
[(B) performance awards.]
(6) The development and implementation of technology
applications, translation technology, or distance
learning, including professional development to support
the use of instructional technology.
[(7) Developing and disseminating curricula,
including curricula incorporating phonemic awareness,
systematic phonics, fluency, and reading comprehension.
[(8) Other activities of statewide significance that
promote the purpose of this title.
[(9) Coordination with existing support services,
such as transportation, child care, and other
assistance designed to increase rates of enrollment in,
and successful completion of, adult education and
literacy activities, to adults enrolled in such
activities.
[(10) Integration of literacy instruction and
occupational skill training, and promoting linkages
with employers.
[(11) Linkages with postsecondary educational
institutions.
(7) Coordination with--
(A) other partners carrying out activities
authorized under this Act;
(B) existing support services, such as
transportation, child care, mental health
services, and other assistance designed to
increase rates of enrollment in, and successful
completion of adult education and literacy
activities, for adults enrolled in such
activities.
(8) Developing and disseminating curricula, including
curricula incorporating the essential components of
reading instruction as they relate to adults.
(9) The provision of assistance to eligible providers
in developing, implementing, and reporting measurable
progress in achieving the objectives of this subtitle.
(10) The development and implementation of a system
to assist in the transition from adult basic education
to postsecondary education, including linkages with
postsecondary educational institutions.
(11) Integration of literacy and English language
instruction with occupational skill training, and
promoting linkages with employers.
(12) Activities to promote workplace literacy
programs.
(13) Activities to promote and complement local
outreach initiatives described in section 243(b)(3)(F).
(14) In cooperation with efforts funded under
sections 242 and 243, the development of curriculum
frameworks and rigorous content standards that--
(A) specify what adult learners should know
and be able to do in the areas of reading and
language arts, mathematics, and English
language acquisition; and
(B) take into consideration the following:
(i) State academic standards
established under section 1111(b) of
the Elementary and Secondary Education
Act of 1965.
(ii) The current adult skills and
literacy assessments used in the State.
(iii) The core indicators of
performance established under section
212(b)(2)(A).
(iv) Standards and academic
requirements for enrollment in non-
remedial, for-credit, courses in State
supported postsecondary education
institutions.
(v) Where appropriate, the basic and
literacy skill content of occupational
and industry skill standards widely
used by business and industry in the
State.
(15) In cooperation with efforts funded under
sections 242 and 243, development and piloting of--
(A) new assessment tools and strategies that
identify the needs and capture the gains of
students at all levels, with particular
emphasis on--
(i) students at the lowest
achievement level;
(ii) students who have limited
English proficiency; and
(iii) adults with learning
disabilities;
(B) options for improving teacher quality and
retention; and
(C) assistance in converting research into
practice.
(16) The development and implementation of programs
and services to meet the needs of adult learners with
learning disabilities or limited English proficiency.
(17) Other activities of statewide significance that
promote the purpose of this title.
* * * * * * *
(c) State-Imposed Requirements.--Whenever a State or
outlying area implements any rule or policy relating to the
administration or operation of a program authorized under this
subtitle that has the effect of imposing a requirement that is
not imposed under Federal law (including any rule or policy
based on a State or outlying area interpretation of a Federal
statute, regulation, or guideline), the State or outlying area
shall identify, to eligible providers, the rule or policy as
[being State- or outlying area-imposed] being imposed by the
State or outlying area.
SEC. 224. STATE PLAN.
(a) [5-Year Plans] 4-Year Plans.--
(1) In general.--Each eligible agency desiring a
grant under this subtitle for any fiscal year shall
submit to, or have on file with, the Secretary a [5] 4-
year State plan.
* * * * * * *
(b) Plan Contents.--In developing the State plan, and any
revisions to the State plan, the eligible agency shall include
in the State plan or revisions--
(1) an objective assessment of the needs of
individuals in the State or outlying area for adult
education and literacy activities, including
individuals most in need or hardest to serve and the
role of provider and cooperating agencies in preparing
the assessment;
[(2) a description of the adult education and
literacy activities that will be carried out with any
funds received under this subtitle;]
(2) a description of how the eligible agency will
address the adult education and literacy needs
identified under paragraph (1) in each workforce
development area of the State, using funds received
under this subtitle, as well as other Federal, State,
or local funds received in partnership with other
agencies for the purpose of adult literacy as
applicable;
(3) a description of how the eligible agency will
evaluate and measure annually the effectiveness
improvement of the adult education and literacy
activities based on the performance measures described
in section [212;] 212, including--
(A) how the eligible agency will evaluate and
measure annually such effectiveness on a grant-
by-grant basis; and
(B) how the eligible agency--
(i) will hold eligible providers
accountable regarding the progress of
such providers in improving the
academic achievement of participants in
adult education programs under this
subtitle and regarding the core
indicators of performance described in
section 212(b)(2)(A); and
(ii) will use technical assistance,
sanctions, and rewards (including
allocation of grant funds based on
performance and termination of grant
funds based on performance)
(4) a description of the performance measures
described in section 212 and how such performance
measures [will ensure the improvement of] improved
adult education and literacy activities in the State or
outlying area;
(5) a description of how the eligible agency will
improve teacher quality, the professional development
of eligible providers, and instruction;
[(5)] (6) an assurance that the eligible agency will
award not less than one grant under this subtitle to an
eligible provider [who offers flexible schedules and
necessary support services (such as child care and
transportation) to enable individuals, including
individuals with disabilities, or individuals with
other special needs, to participate in adult education
and literacy activities, which eligible provider shall
attempt to coordinate with support services that are
not provided under this subtitle prior to using funds
for adult education and literacy activities provided
under this subtitle for support services;] that--
(A) offers flexible schedules and coordinates
with necessary Federal, State, and local
support services (such as child care,
transportation, mental health services, and
case management) to enable individuals,
including individuals with disabilities or
individuals with other special needs, to
participate in adult education and literacy
activities; and
(B) attempts to coordinate with support
services that are not provided under this
subtitle prior to using funds for adult
education and literacy activities provided
under this subtitle for support services;
[(6)] (7) an assurance that the funds received under
this subtitle will not be expended for any purpose
other than for activities under this subtitle;
[(7)] (8) a description of how the eligible agency
will fund local activities in accordance with the
considerations described in section 231(e);
[(8)] (9) an assurance that the eligible agency will
expend the funds under this subtitle only in a manner
consistent with fiscal requirements in section 241;
[(9)] (10) a description of the process that will be
used for public participation and comment with respect
to the State [plan;] plan, which process--
(A) shall include the State Workforce
Investment Board, the Governor, State officials
representing public schools, community
colleges, welfare agencies, agencies that
provide services to individuals with
disabilities, other State agencies that promote
or operate adult education and literacy
activities, and direct providers of such adult
literacy services;
(B) may include consultation with the State
agency for higher education, institutions
responsible for professional development of
adult education and literacy education program
instructors, institutions of higher education,
representatives of business and industry,
refugee assistance programs, and community-
based organizations, as defined in section 101;
[(10)] (11) a description of how the eligible agency
[will] assess potential population needs and develop
program strategies for populations that include, at a
minimum--
(A) low-income [students] individuals;
(B) individuals with disabilities;
(C) single parents and displaced homemakers;
[and]
(D) individuals with multiple barriers to
educational enhancement, including individuals
with limited English proficiency;
(E) the unemployed; and
(F) those who are employed, but at levels
below self-sufficiency, as defined in section
101.
[(11)] (12) a description of how the adult education
and literacy activities that will be carried out with
any funds received under this subtitle will be
integrated with other adult education, career
development, and employment and training activities in
the State or outlying area served by the eligible
agency and how the plan submitted under this subtitle
is coordinated with the plan submitted by the State
under title I; [and]
[(12)] (13) a description of the steps the eligible
agency will take to ensure direct and equitable access,
as required in section [231(c)(1).] 231(c)(1),
including--
(A) how the State will build the capacity of
organizations that provide adult education and
literacy activities; and
(B) how the State will increase the
participation of business and industry in adult
education and literacy activities;
(14) a description of how the eligible agency will
consult with any State agency responsible for
postsecondary education to develop adult education
programs and services (including academic skill
development and support services) that prepare students
to enter postsecondary education upon completion of
secondary school programs or their recognized
equivalent;
(15) a description of how the eligible agency will
consult with the State agency responsible for workforce
development to develop adult education programs and
services that are designed to prepare students to enter
the workforce; and
(16) a description of how the eligible agency will
improve the professional development of eligible
providers of adult education and literacy activities.
(c) Plan Revisions.--When changes in conditions or other
factors require substantial revisions to an approved State
plan, the eligible agency shall submit the revisions to the
State plan to the Secretary. At the end of the first 2-year
period of the 4-year State plan, the eligible agency shall
review and, as needed, revise the 4-year State plan.
(d) Consultation.--The eligible agency shall--
(1) submit the State plan, and any revisions to the
State plan, to the Governor, the chief State school
officer, the State officer responsible for
administering community and technical colleges, and the
State Workforce Investment Board of the State or
outlying area for review and comment; and
(2) ensure that any [comments by the Governor
regarding the State plan, and any revision to the State
plan, are submitted to the Secretary.] comments
regarding the State plan by the Governor, the chief
State school officer, the State officer responsible for
administering community and technical colleges, and the
State Workforce Investment Board, and any revision to
the State plan, are submitted to the Secretary.
* * * * * * *
SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
(a) Program Authorized.--* * *
(b) Uses of Funds.--The funds described in subsection (a)
shall be used for the cost of educational programs for criminal
offenders in correctional institutions and for other
institutionalized individuals, including academic programs
for--
(1) [basic education] adult education and literacy
activities;
(2) special education programs as determined by the
eligible agency; and
[(3) English literacy programs; and]
[(4)] secondary school credit programs.
(c) Priority.--Each eligible agency that is using
assistance provided under this section to carry out a program
for criminal offenders within a correctional institution shall
give priority to serving individuals who are likely to leave
the correctional institution within 5 years of participation in
the program.
(d) [Definition of Criminal Offender.--] Definitions.--In
this section:
* * * * * * *
CHAPTER 3--LOCAL PROVISIONS
SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
(a) Grants and Contracts.--* * *
(b) * * *
(1) Adult education and literacy services, including
[workplace literacy services] workplace literacy
programs.
(2) Family literacy services.
(3) English [literacy] language acquisition programs.
* * * * * * *
(e) Considerations.--In awarding grants or contracts under
this section, the eligible agency shall consider--
(1) the degree to which the eligible provider will
establish measurable goals for participant [outcomes]
to be achieved annually on the core indicators of
performance and employment performance indicators
described in section 212(b)(2);
* * * * * * *
[(3) the commitment of the eligible provider to serve
individuals in the community who are most in need of
literacy services, including individuals who are low-
income or have minimal literacy skills;]
(3) the commitment of the eligible provider to be
responsive to local needs and to serve individuals in
the community who were identified by the assessment as
most in need of adult literacy services, including
individuals who are low-income, have minimal literacy
skills, have learning disabilities, or have limited
English proficiency;
(4) whether or not the program--
(A) is of sufficient intensity and duration
for participants to achieve substantial
learning gains; and
(B) uses instructional practices[, such as
phonemic awareness, systematic phonics,
fluency, and reading comprehension that
research has proven to be effective in teaching
individuals to read;], such as'' and all that
follows through the semicolon and inserting
``that include the essential components of
reading instruction;
(5) whether the activities are built on a strong
foundation of [research] the most rigorous research
available and effective educational practice;
* * * * * * *
(7) whether the activities provide learning in real
life contexts, when appropriate and based on the most
rigorous research available, to ensure that an
individual has the skills needed to compete in the
workplace and exercise the rights and responsibilities
of citizenship;
* * * * * * *
(9) whether the activities coordinate with other
available education, job-training, and social service
resources in the community, such as by establishing
strong links with elementary schools and secondary
schools, postsecondary educational institutions, one-
stop centers, job training programs, and social service
agencies;
(10) whether the activities offer flexible schedules
and coordination with Federal, State, and local support
services (such as child care [and transportation]
transportation, mental health services, and case
management) that are necessary to enable individuals,
including individuals with disabilities or other
special needs, to attend and complete programs;
(11) whether the activities maintain a high-quality
information management system that has the capacity to
report measurable participant outcomes and to monitor
program performance against the [eligible agency]
performance measures established by the eligible
agency; [and]
(12) whether the local communities have a
demonstrated need for additional English [literacy
programs.] language acquisition programs and civics
education programs;
(13) the capacity of the eligible provider to produce
information on performance results, including
enrollments and measurable participant outcomes;
(14) whether reading, writing, speaking, mathematics,
and English language acquisition instruction provided
by the eligible provider are based on the best
practices derived from the most rigorous research
available;
(15) whether the eligible provider's applications of
technology and services to be provided are sufficient
to increase the amount and quality of learning and lead
to measurable learning gains within specified time
periods; and
(16) the capacity of the eligible provider to serve
adult learners with learning disabilities.
SEC. 232. LOCAL APPLICATION.
Each eligible provider desiring a grant or contract under
this subtitle shall submit an application to the eligible
agency containing such information and assurances as the
eligible agency may require, including--
(1) a description of how funds awarded under this
subtitle will be spent consistent with the requirements
of this subtitle; [and]
(2) a description of any cooperative arrangements the
eligible provider has with other agencies,
institutions, or organizations for the delivery of
adult education and literacy activities[.]; and
(3) information that addresses each of the
considerations required under section 231(e).
SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
(a) In General.--Subject to subsection (b), of the amount
that is made available under this subtitle to an eligible
provider--
(1) not less than 95 percent shall be expended for
carrying out adult education and literacy activities;
and
(2) the remaining amount, not to exceed 5 percent,
shall be used for planning, administration, personnel
and professional development, development of measurable
goals in reading, writing, and speaking the English
language, and in mathematical computation, and
interagency coordination.
(b) Special Rule.--In cases where the cost limits described
in subsection (a) are too restrictive to allow for adequate
planning, administration, personal and professional
development, development of measurable goals in reading,
writing, and speaking the English language, and in mathematical
computation, and interagency coordination, eligible provider
shall negotiate with the eligible agency in order to determine
an adequate level of funds to be used for noninstructional
purposes.
CHAPTER 4--GENERAL PROVISIONS
SEC. 241. ADMINISTRATIVE PROVISIONS.
(a) Supplement Not Supplant.--Funds made available for
adult education and literacy activities under this subtitle
shall supplement and not supplant other State or local public
funds expended for adult education and literacy activities.
(b) Maintenance of Effort.--
(1) In general.--
(A) Determination.--An eligible agency may
receive funds under this subtitle for any
fiscal year if the Secretary finds that the
fiscal effort per student or the aggregate
expenditures of such eligible agency for [adult
education and literacy activities] activities
under this subtitle, in the second preceding
fiscal year, [was] were not less than 90
percent of the fiscal effort per student of the
aggregate expenditures of such eligible agency
for [adult education and literacy activities]
activities under this subtitle, in the third
preceding fiscal year.
* * * * * * *
(4) Waiver.--The Secretary may waive the requirements
of this subsection for not more than 1 fiscal year
[only], if the Secretary determines that a waiver would
be equitable due to exceptional or uncontrollable
circumstances, such as a natural disaster or an
unforeseen and precipitous decline in the financial
resources of the State or outlying area of the eligible
agency. If the Secretary grants a waiver under the
preceding sentence for a fiscal year, the level of
effort required under paragraph (1) shall not be
reduced in the subsequent fiscal year because of the
waiver.
SEC. 242. NATIONAL INSTITUTE FOR LITERACY.
(a) Purpose.--The purpose of this section is to establish a
National Institute for Literacy that--
(1) provides national leadership regarding [literacy]
effective literacy programs for children, youth,
adults, and families;
(2) coordinates and disseminates information on
literacy services and policy; and
(3) serves as a national resource for adult education
and literacy programs by--
[(A) providing the best and most current
information available, including the work of
the National Institute of Child Health and
Human Development in the area of phonemic
awareness, systematic phonics, fluency, and
reading comprehension, to all recipients of
Federal assistance that focuses on reading,
including programs under titles I and VII of
the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6301 et seq. and 7401 et seq.),
the Head Start Act (42 U.S.C. 9831 et seq.),
the Individuals with Disabilities Education Act
(20 U.S.C. 1400 et seq.), and this Act; and]
(A) coordinating and participating in the
Federal effort to identify and disseminate
information on literacy that is derived from
scientifically based research, or the most
rigorous research available and effective
programs that serve children, youth, adults,
and families;
(B) supporting the creation of new ways to
offer services of proven effectiveness.
(b) Establishment.--
(1) In general.--* * *
* * * * * * *
[(3) Recommendations.--The Interagency Group shall
consider the recommendations of the National Institute
for Literacy Advisory Board (in this section referred
to as the Board) established under subsection (e) in
planning the goals of the Institute and in the
implementation of any programs to achieve the goals. If
the Board's recommendations are not followed, the
Interagency Group shall provide a written explanation
to the Board concerning actions the Interagency Group
takes that are inconsistent with the Board's
recommendations, including the reasons for not
following the Board's recommendations with respect to
the actions. The Board may also request a meeting of
the Interagency Group to discuss the Board's
recommendations.]
(3) Recommendations.--The Interagency Group, in
consultation with the National Institute for Literacy
Advisory Board (in this section referred to as the
`Board') established under subsection (e), shall plan
the goals of the Institute and the implementation of
any programs to achieve the goals. The Board may also
request a meeting of the Interagency Group to discuss
any recommendations the Board may make.
* * * * * * *
(4) Daily operations.--The daily operations of the
Institute shall be administered by the Director of the
Institute.
(c) Duties.--
(1) In general.--In order to provide leadership for
the improvement and expansion of the system for
delivery of literacy services, the Institute is
authorized--
(A) [to establish] to maintain a national
electronic data base of information that
disseminates information to the broadest
possible audience within the literacy and basic
skills field, and that includes--
(i) effective practices in the
provision of literacy and basic skills
instruction, including instruction in
[phonemic awareness, systematic
phonics, fluency, and reading
comprehension] the essential components
of reading instruction, and the
integration of literacy and basic
skills instruction with occupational
skills training;
* * * * * * *
(iii) opportunities for technical
assistance, meetings, conferences, and
other opportunities that lead to the
improvement of literacy and basic
skills services; [and]
(iv) a communication network for
literacy programs, providers, social
service agencies, and students; and
(v) a list of local adult education
and literacy programs;
* * * * * * *
(C) to coordinate the support of [reliable
and replicable research] reliable and
replicable research as defined by the Institute
of Education Sciences and development on
literacy and basic skills in families and
adults across Federal agencies, [especially
with the Office of Educational Research and
Improvement in the Department of Education,]
and to carry out basic and applied research and
development on topics that are not being
investigated by other organizations or
agencies, such as the special literacy needs of
individuals with learning disabilities;
(D) to collect and disseminate information on
methods of advancing literacy that show great
promise, including [phonemic awareness,
systematic phonics, fluency, and reading
comprehension based on] the essential
components of reading instruction and the work
of the National Institute of Child Health and
Human Development;
* * * * * * *
(H) to advise Congress and Federal
departments and agencies regarding the
development of policy with respect to literacy
and basic skills; [and]
(I) to undertake other activities that lead
to the improvement of the Nation's literacy
delivery system and that complement other such
efforts being undertaken by public and private
agencies and organizations[.];
(J) to work cooperatively with the Department
of Education to assist States that are pursuing
the implementation of standards-based
educational improvements for adults through the
dissemination of training, technical
assistance, and related support and through the
development and dissemination of related
standards-based assessment instruments; and
(K) to identify rigorous research on the
effectiveness of instructional practices and
organizational strategies relating to literacy
programs on the acquisition of skills in
reading, writing, English acquisition, and
mathematics.
* * * * * * *
(3) Coordination.--In identifying the reliable and
replicable research the Institute will support, the
Institute shall use standards for research quality that
are consistent with those of the Institute of Education
Sciences.
(e) National Institute for Literacy Advisory Board.--
(1) Establishment.--
(A) In general.--* * *
(B) * * *
(i) literacy organizations and
providers of literacy services,
including nonprofit providers,
providers of English [literacy
programs] language acquisition programs
and services, social service
organizations, and eligible providers
receiving assistance under this
subtitle;
(ii) businesses that have
demonstrated interest in [literacy
programs] or have participated in or
partnered with workplace literacy
programs;
* * * * * * *
(iv) experts in the area of literacy
research including adult literacy
research;
* * * * * * *
(vi) State Directors of adult
education; [and]
(vii) representatives of employees,
including representatives of labor
organizations[.]; and
(viii) institutions of higher
education.
(2) Duties.--The Board shall--
(A) make recommendations concerning the
appointment of the Director and staff of the
Institute;
(B) provide independent advice on the
operation of the Institute; [and]
(C) receive reports from the Interagency
Group and the Director[.]; and
(D) review the biennial report submitted to
Congress pursuant to subsection (k).
* * * * * * *
(5) Quorum.--A majority of the members of the Board
shall constitute a quorum but a lesser number may hold
hearings. [Any recommendation of the Board may be
passed only by a majority of the Board's members
present.] A recommendation of the Board may be passed
only by a majority of the Board's members present at a
meeting for which there is a quorum.
* * * * * * *
(k) Report.--[The Institute shall submit a report
biennially to] Not later than 1 year after the date of
enactment of the Adult Education and Family Literacy Act
Amendments of 2003, and biennially thereafter, the Institute
shall submit a report to the Committee on Education and the
Workforce of the House of Representatives and the Committee on
[Labor and Human Resources] Health, Education, Labor, and
Pensions of the Senate. Each report submitted under this
subsection shall include--
* * * * * * *
[SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.
[The Secretary shall establish and carry out a program of
national leadership activities to enhance the quality of adult
education and literacy programs nationwide. Such activities may
include the following:
[(1) Technical assistance, including
[(A) assistance provided to eligible
providers in developing and using performance
measures for the improvement of adult education
and literacy activities, including family
literacy services;
[(B) assistance related to professional
development activities, and assistance for the
purposes of developing, improving, identifying,
and disseminating the most successful methods
and techniques for providing adult education
and literacy activities, including family
literacy services, based on scientific evidence
where available; and
[(C) assistance in distance learning and
promoting and improving the use of technology
in the classroom.
[(2) Funding national leadership activities that are
not described in paragraph (1), either directly or
through grants, contracts, or cooperative agreements
awarded on a competitive basis to or with postsecondary
educational institutions, public or private
organizations or agencies, or consortia of such
institutions, organizations, or agencies, such as
[(A) developing, improving, and identifying
the most successful methods and techniques for
addressing the education needs of adults,
including instructional practices using
phonemic awareness, systematic phonics,
fluency, and reading comprehension, based on
the work of the National Institute of Child
Health and Human Development;
[(B) increasing the effectiveness of, and
improving the quality of, adult education and
literacy activities, including family literacy
services;
[(C) carrying out research, such as
estimating the number of adults functioning at
the lowest levels of literacy proficiency;
[(D)(i) carrying out demonstration programs;
[(ii) developing and replicating model and
innovative programs, such as the development of
models for basic skill certificates,
identification of effective strategies for
working with adults with learning disabilities
and with individuals with limited English
proficiency who are adults, and workplace
literacy programs; and
[(iii) disseminating best practices
information, including information regarding
promising practices resulting from federally
funded demonstration programs;
[(E) providing for the conduct of an
independent evaluation and assessment of adult
education and literacy activities through
studies and analyses conducted independently
through grants and contracts awarded on a
competitive basis, which evaluation and
assessment shall include descriptions of--
[(i) the effect of performance
measures and other measures of
accountability on the delivery of adult
education and literacy activities,
including family literacy services;
[(ii) the extent to which the adult
education and literacy activities,
including family literacy services,
increase the literacy skills of adults
(and of children, in the case of family
literacy services), lead the
participants in such activities to
involvement in further education and
training, enhance the employment and
earnings of such participants, and, if
applicable, lead to other positive
outcomes, such as reductions in
recidivism in the case of prison-based
adult education and literacy
activities;
[(iii) the extent to which the
provision of support services to adults
enrolled in adult education and family
literacy programs increase the rate of
enrollment in, and successful
completion of, such programs; and
[(iv) the extent to which eligible
agencies have distributed funds under
section 231 to meet the needs of adults
through community-based organizations;
[(F) supporting efforts aimed at capacity
building at State and local levels, such as
technical assistance in program planning,
assessment, evaluation, and monitoring of
activities carried out under this subtitle;
[(G) collecting data, such as data regarding
the improvement of both local and State data
systems, through technical assistance and
development of model performance data
collection systems; and
[(H) other activities designed to enhance the
quality of adult education and literacy
activities nationwide.]
SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.
(a) In General.--The Secretary shall establish and carry
out a program of national leadership activities to enhance the
quality of adult education and literacy programs nationwide.
(b) Permissive Activities.--The national leadership
activities described in subsection (a) may include the
following:
(1) Technical assistance, including--
(A) assistance provided to eligible providers
in developing and using performance measures
for the improvement of adult education and
literacy activities, including family literacy
services;
(B) assistance related to professional
development activities, and assistance for the
purposes of developing, improving, identifying,
and disseminating the most successful methods
and techniques for providing adult education
and literacy activities, including family
literacy services, based on scientific evidence
where available;
(C) assistance in distance learning and
promoting and improving the use of technology
in the classroom;
(D) assistance in developing valid,
measurable, and reliable performance data,
including data around employment and employment
outcome, and using performance information for
the improvement of adult education and literacy
programs; and
(E) assistance to help States, particularly
low-performing States, meet the requirements of
section 212.
(2) A program of grants, contracts, or cooperative
agreements awarded on a competitive basis to national,
regional, or local networks of private nonprofit
organizations, public libraries, or institutions of
higher education to build the capacity of such
networks' members to meet the performance requirements
of eligible providers under this title and involve
adult learners in program improvement.
(3) Funding national leadership activities that are
not described in paragraph (1), either directly or
through grants, contracts, or cooperative agreements
awarded on a competitive basis to or with postsecondary
educational institutions, public or private
organizations or agencies, or consortia of such
institutions, organizations, or agencies, such as--
(A) developing, improving, and identifying
the most successful methods and techniques for
addressing the education needs of adults,
including instructional practices using the
essential components of reading instruction
based on the work of the National Institute of
Child Health and Human Development;
(B) increasing the effectiveness of, and
improving the quality of, adult education and
literacy activities, including family literacy
services;
(C) carrying out research on national
literacy basic skill acquisition for adult
learning, including estimating the number of
adults functioning at the lowest levels of
literacy proficiency;
(D)(i) carrying out demonstration programs;
(ii) disseminating best practices
information, including information regarding
promising practices resulting from federally
funded demonstration programs; and
(iii) developing and replicating best
practices and innovative programs; including--
(I) the development of models for
basic skill certificates;
(II) the identification of effective
strategies for working with adults with
learning disabilities and with adults
with limited English proficiency;
(III) integrated basic and workplace
skills education programs;
(IV) coordinated literacy and
employment services; and
(V) postsecondary education
transition programs;
(E) providing for the conduct of an
independent evaluation and assessment of adult
education and literacy activities through
studies and analyses conducted independently
through grants and contracts awarded on a
competitive basis, which evaluation and
assessment shall include descriptions of--
(i) the effect of performance
measures and other measures of
accountability on the delivery of adult
education and literacy activities,
including family literacy services;
(ii) the extent to which the adult
education and literacy activities,
including family literacy services,
increase the literacy skills of adults
(and of children, in the case of family
literacy services), lead the
participants in such activities to
involvement in further education and
training, enhance the employment and
earnings of such participants, and, if
applicable, lead to other positive
outcomes, such as reductions in
recidivism in the case of prison-based
adult education and literacy
activities;
(iii) the extent to which the
provision of support services to adults
enrolled in adult education and family
literacy programs increase the rate of
enrollment in, and successful
completion of, such programs; and
(iv) the extent to which different
types of providers measurably improve
the skills of participants in adult
education and literacy programs;
(F) supporting efforts aimed at capacity
building of programs at the State and local
levels such as technical assistance in program
planning, assessment, evaluation, and
monitoring of activities carried out under this
subtitle;
(G) collecting data, such as data regarding
the improvement of both local and State data
systems, through technical assistance and
development of model performance data
collection systems;
(H) supporting the development of an entity
that would produce and distribute technology-
based programs and materials for adult
education and literacy programs using an
interconnection system (as defined in section
397 of the Communications Act of 1934 (47
U.S.C. 397)) and expand the effective outreach
and use of such programs and materials to adult
education eligible providers;
(I) determining how participation in adult
education and literacy activities prepares
individuals for entry into postsecondary
education and employment and, in the case of
prison-based services, has an effect on
recidivism; and
(J) other activities designed to enhance the
quality of adult education and literacy
activities nationwide.
SEC. 244. INTEGRATED ENGLISH LITERACY AND CIVICS EDUCATION.
(a) In General.--From funds made available under section
211(a)(4) for each fiscal year the Secretary shall award grants
to States, from allotments under subsection (b), for integrated
English literacy and civics education.
(b) Allotment.--
(1) In general.--Subject to paragraph (2), from
amounts made available under section 211(a)(4) for a
fiscal year the Secretary shall allocate--
(A) 65 percent to the States on the basis of
a State's need for integrated English literacy
and civics education as determined by
calculating each State's share of a 10-year
average of the Immigration and Naturalization
Service data for immigrants admitted for legal
permanent residence for the 10 most recent
years; and
(B) 35 percent to the States on the basis of
whether the State experienced growth as
measured by the average of the 3 most recent
years for which Immigration and Naturalization
Service data for immigrants admitted for legal
permanent residence are available.
(2) Minimum.--No State shall receive an allotment
under paragraph (1) in an amount that is less than
$60,000.
* * * * * * *
WAGNER-PEYSER ACT
Subpart B--Related Programs
* * * * * * *
Sec. 2. For purposes of this Act--
(1) * * *
* * * * * * *
(3) the term ``one-stop delivery system means a one-
stop delivery system described in [section 134(c)]
section 121(e) of the Workforce Investment Act of 1998;
* * * * * * *
Sec. 3. (a) * * *
* * * * * * *
(d) In order to avoid duplication of services and enhance
integration of services, employment services offices in each
State shall be colocated with comprehensive one-stop centers
established under title I of the Workforce Investment Act of
1998.
[Sec. 14.]
SEC. 14. COOPERATIVE STATISTICAL PROGRAM.
There are authorized to be appropriated such sums as may be
necessary to enable the Secretary to provide funds through
reimbursable agreements with the States to operate statistical
programs which are essential for development of estimates of
the gross national product and other national statistical
series, including those related to employment and unemployment.
[SEC. 15. EMPLOYMENT STATISTICS.]
SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.
(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 nationwide [employment statistics system] workforce
and labor market information system [of employment
statistics] that includes--
(A) * * *
* * * * * * *
(b) System Responsibilities.--
(1) In general.--The [employment statistics system]
workforce and labor market information system described
in subsection (a) shall be planned, administered,
overseen, and evaluated through a cooperative
governance structure involving the Federal Government
and States.
(2) Duties.--The Secretary, with respect to data
collection, analysis, and dissemination of labor
employment statistics for the system, shall carry out
the following duties:
(A) Assign responsibilities within the
Department of Labor for elements of the
[employment statistics system] workforce and
labor market information system described in
subsection (a) to ensure that all statistical
and administrative data collected is consistent
with appropriate Bureau of Labor Statistics
standards and definitions.
* * * * * * *
(D) In collaboration with the Bureau of Labor
Statistics and States, develop and maintain the
elements of the [employment statistics system]
workforce and labor market information system
described in subsection (a), including the
development of consistent procedures and
definitions for use by the States in collecting
the data and information described in
subparagraphs (A) and (B) of subsection (a)(1).
(E) Establish procedures for the system to
ensure that--
(i) such data and information are
timely; and
(ii) paperwork and reporting for the
system are reduced to a minimum[; and].
[(iii) States and localities are
fully involved in the development and
continuous improvement of the system at
all levels, including ensuring the
provision, to such States and
localities, of budget information
necessary for carrying out their
responsibilities under subsection (e).]
[(c) Annual Plan.--The Secretary, working through the
Bureau of Labor Statistics, and in cooperation with the States,
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 [employment
statistics system] workforce and labor market information
system described in subsection (a) and the statewide
[employment statistics system] workforce and labor market
information system that comprise the nationwide system. The
plan shall--
[(1) describe the steps the Secretary has taken in
the preceding year and will take in the following 5
years to carry out the duties described in subsection
(b)(2);
[(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 to the improvements
needed at the State and local levels;
[(4) justify the budget request for annual
appropriations by describing priorities for the fiscal
year succeeding the fiscal year in which the plan is
developed and priorities for the 5 subsequent fiscal
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 (e)(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 workforce investment
boards, pursuant to a process established by the
Secretary in cooperation with the States.
[(d) Coordination With the States.--The Secretary, working
through the Bureau of Labor Statistics, and in cooperation with
the States, shall--
[(1) develop the annual plan described in subsection
(c) and address other employment statistics issues by
holding formal consultations, at least once each
quarter (beginning with the calendar quarter in which
the Workforce Investment Act of 1998 is enacted) on the
products and administration of the nationwide
[employment statistics system] workforce and labor
market information system; and
[(2) hold the consultations with representatives from
each of the 10 Federal regions of the Department of
Labor, elected (pursuant to a process established by
the Secretary) by and from the State employment
statistics directors affiliate with the State agencies
that perform the duties described in subsection
(e)(2).]
(c) National Electronic Tools To Provide Services.--The
Secretary, in consultation with States, is authorized to assist
in the development of national electronic tools that may be
used to improve access to workforce information for individuals
through--
(1) the one-stop delivery systems established under
section 121(e); and
(2) such other delivery systems as the Secretary
determines to be appropriate.
(d) Two-Year Plan.--The Secretary, working through the
Bureau of Labor Statistics, and in cooperation with the States
and with the assistance of the Employment and Training
Administration and other appropriate Federal agencies, shall
prepare a 2-year plan which shall be the mechanism for
achieving cooperative management of the nationwide workforce
and labor market information system described in subsection (a)
and the statewide workforce and labor market information
systems that comprise the nationwide system. The plan shall--
(1) describe the steps to be taken in the following 2
years to carry out the duties described in subsection
(b)(2);
(2) evaluate the performance of the system and
recommend needed improvements, with particular
attention to the improvements needed at the State and
local levels; and
(3) describe the involvement of States in the
development of the plan, pursuant to a process
established by the Secretary in cooperation with the
States in accordance with subsection (i).
(e) State Responsibilities.--
(1) Designation of state agency.--In order to receive
Federal financial assistance under this section, the
Governor of a State shall--
(A) designate a single State agency to be
responsible for the management of the portions
of the [employment statistics system] workforce
and labor market information system described
in subsection (a) that comprise a statewide
[employment statistics system] workforce and
labor market information system and for the
State's participation in the development of the
annual plan; and
* * * * * * *
(A) consult with State and local employers,
participants, and local workforce investment
boards about the labor market relevance of the
data to be collected and disseminated through
the statewide [employment statistics system]
workforce and labor market information system;
* * * * * * *
(D) maintain and continuously improve the
statewide [employment statistics system]
workforce and labor market information system
in accordance with this section;
* * * * * * *
(F) conduct such other data collection,
analysis, and dissemination activities as will
ensure an effective statewide [employment
statistics system] workforce and 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; and
[(H) participate in the development of the
annual plan described in subsection (c); and]
[(I)] (H) utilize the quarterly records
described in section 136(f)(2) of the Workforce
Investment Act of 1998 to assist the State and
other States in measuring State progress on
State performance measures.
* * * * * * *
(g) Authorization of Appropriations.--[There are]
(1) In general.--There are authorized to be
appropriated to carry out this section such sums as may
be necessary for each of the fiscal years [1999 through
2004] 2004 through 2009 to enable the Secretary to
carry out the provisions of this section in a timely
manner through grants or cooperative agreements with
the States.
(2) Distribution of funds.--With regard to
distributing funds appropriated under paragraph (1)
(relating to workforce and labor market information
funding) for fiscal years 2004 through 2009, the
Secretary shall continue. to distribute the funds to
the States in the manner in which the Secretary
distributed funds to the States under this section for
fiscal years 1999 through 2003.
* * * * * * *
(i) Coordination With the States.--The Secretary, working
though the Bureau of Labor Statistics and in coordination with
the Employment and Training Administration, shall consult at
least annually with representatives of each of the 10 Federal
regions of the Department of Labor, elected (pursuant to a
process established by the Secretary) by and from the State
workforce and labor market information directors affiliated
with the State agencies that perform the duties described in
subsection (e)(2).
* * * * * * *
REHABILITATION ACT OF 1973
* * * * * * *
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--* * *
* * * * * * *
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. * * *
* * * * * * *
Sec. 113. Incentive grants.
* * * * * * *
Chapter 2--Independent Living Services for Older Individuals Who Are
Blind
Sec. 751. Definition.
[Sec. 752. Program of grants.
[Sec. 753. Authorization of appropriations.]
Sec. 752. Training and technical assistance.
Sec. 753. Program of grants.
Sec. 754. Authorization of appropriations.
SEC. 2. FINDINGS; PURPOSE; POLICY.
(a) Findings.--* * *
* * * * * * *
(b) Purpose.--The purposes of this Act are--
(1) to empower individuals with disabilities to
maximize employment, economic self-sufficiency,
independence, and inclusion and integration into
society, through--
(A) * * *
* * * * * * *
(F) the guarantee of equal opportunity; [and]
(2) to ensure that the Federal Government plays a
leadership role in promoting the employment of
individuals with disabilities, especially individuals
with significant disabilities, and in assisting States
and providers of services in fulfilling the aspirations
of such individuals with disabilities for meaningful
and gainful employment and independent living[.]; and
(3) to provide opportunities for employers and,
rehabilitation service providers to provide meaningful
input at all levels of government to ensure successful
employment of individuals with disabilities.
* * * * * * *
SEC. 7. DEFINITIONS.
For the purposes of this Act:
(1) Administrative costs.--* * *
* * * * * * *
(B) to the extent additional data is
necessary to make a determination of the
employment outcomes, and the nature, and scope
of vocational rehabilitation services, to be
included in the individualized plan for
employment of an eligible individual, a
comprehensive assessment to determine the
unique strengths, resources, priorities,
concerns, abilities, capabilities, interests,
and informed choice, including the need for
supported employment and literacy services, of
the eligible individual, which comprehensive
assessment--
* * * * * * *
(iii) may include, to the degree
needed to make such a determination, an
assessment of the personality,
interests, interpersonal skills,
intelligence and related functional
capacities, [educational achievements]
and literacy skills, work experience,
vocational aptitudes, personal and
social adjustments, and employment
opportunities of the individual, and
the medical, psychiatric,
psychological, and other pertinent
vocational, educational, cultural,
social, recreational, and environmental
factors, that affect the employment and
rehabilitation needs of the individual;
and
* * * * * * *
[(7) [Repealed]]
(7) Consumer organization.--The term ``consumer
organization'' means a membership organization in which
a majority of the organization's members and a majority
of the organization's officers are individuals with
disabilities.
* * * * * * *
(17) Independent living core services.--The term
``independent living core service'' means--
(A) * * *
* * * * * * *
(C) peer counseling (including cross-
disability peer counseling); [and]
(D) individual and systems advocacy[.]; and
(E) maintaining individuals with significant
disabilities in, or transitioning individuals
with significant disabilities to, community-
based living.
* * * * * * *
(24) Literacy.--The term ``literacy'' has the meaning
given the term in section 203 of the Adult Education
and Family Literacy Act (20 U.S.C. 9202).
[(24)] (25) Local agency.--The term ``local agency''
means an agency of a unit of general local government
or of an Indian tribe (or combination of such units or
tribes) which has an agreement with the designated
State agency to conduct a vocational rehabilitation
program under the supervision of such State agency in
accordance with the State plan approved under section
101. Nothing in the preceding sentence of this
paragraph or in section 101 shall be construed to
prevent the local agency from arranging to utilize
another local public or nonprofit agency to provide
vocational rehabilitation services if such an
arrangement is made part of the agreement specified in
this paragraph.
[(25)] (26) Local workforce investment board.---The
term ``local workforce force investment board'' means a
local workforce investment board established under
section 117 of the Workforce Investment Act of 1998.
[(26] (27) Nonprofit.--The term ``nonprofit'', when
used with respect to a community rehabilitation
program, means a community rehabilitation program
carried out by a corporation or association, no part of
the net earnings of which inures, or may lawfully
inure, to the benefit of any private shareholder or
individual and the income of which is exempt from
taxation under section 501(c)(3) of the Internal
Revenue Code of 1986.
[(27)] (28) Ongoing support services.--The term
``ongoing support services'' means services--
(A) provided to individuals with the most
significant disabilities;
(B) provided, at a minimum, twice monthly--
(i) to make an assessment, regarding
the employment situation, at the
worksite of each such individual in
supported employment, or, under special
circumstances, especially at the
request of the client, off site; and
(ii) based on the assessment, to
provide for the coordination or
provision of specific intensive
services, at or away from the worksite,
that are needed to maintain employment
stability; and
(C) consisting of--
(i) a particularized assessment
supplementary to the comprehensive
assessment described in paragraph
(2)(B);
(ii) the provision of skilled job
trainers who accompany the individual
for intensive job skill training at the
worksite;
(iii) job development, job retention,
and placement services;
(iv) social skills training;
(v) regular observation or
supervision of the individual;
(vi) followup services such as
regular contact with the employers, the
individuals, the individuals'
representatives, and other appropriate
individuals, in order to reinforce and
stabilize the job placement;
(vii) facilitation of natural
supports at the work site;
(viii) any other service identified
in section 103; or
(ix) a service similar to another
service described in this subparagraph.
[(28)] (29) Personal assistance services.--The term
``personal assistance services'' means a range of
services, provided by one or more persons, designed to
assist an individual with a disability to perform daily
living activities on or off the job that the individual
would typically perform if the individual did not have
a disability. Such services shall be designed to
increase the individual's control in life and ability
to perform everyday activities on or off the job.
(30) Post-employment service.--The term ``post-
employment'' service means a service identified in
section 103(a) that is--
(A) provided subsequent to the achievement of
an employment outcome; and
(B) necessary for an individual to maintain,
regain, or advance in employment, consistent
with the individual's strengths, resources,
priorities, concerns, abilities, capabilities,
interests, and informed choice.
[(29)] (31) Public or nonprofit.--The term ``public
or nonprofit'', used with respect to an agency or
organization, includes an Indian tribe.
[(30)] (32) Rehabilitation technology.--The term
``rehabilitation technology'' means the systematic
application of technologies, engineering methodologies,
or scientific principles to meet the needs of and
address the barriers confronted by individuals with
disabilities in areas which include education,
rehabilitation, employment, transportation, independent
living, and recreation. The term includes
rehabilitation engineering, assistive technology
devices, and assistive technology services.
[(31)] (33) Secretary.--The term ``Secretary'',
except when the context otherwise requires, means the
Secretary of Education.
[(32)] (34) State.--The term ``State'' includes, in
addition to each of the several States of the United
States, the District of Columbia, the Commonwealth of
Puerto Rico, the United States Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern
Mariana Islands.
[(33)] (35) State workforce investment board.--The
term ``State workforce investment board'' means a State
workforce investment board established under section
111 of the Workforce Investment Act of 1998.
[(34] (36) Statewide workforce investment system.--
The term ``statewide workforce investment system''
means a system described in section 111(d)(2) of the
Workforce Investment Act of 1998.
(37) Student with a disability.--
(A) In general.--The term ``student with a
disability'' means an individual with a
disability who attends an elementary school or
secondary school and who--
(i) is not younger than 14 years of
age;
(ii) is not older than 21 years of
age;
(iii) has been determined to be
eligible under section 102(a) for
assistance under title I; and
(iv)(I) is eligible for, and
receiving, special education and
related services under part B of the
Individuals with Disabilities Education
Act (20 U.S.C. 1411 et seq.); or
(II) is an individual with a
disability, for purposes of section
504.
(B) Students with disabilities.--The term
``students with disabilities'' means more than
1 student with a disability.
[(35)] (38) Supported employment.--
(A) In general.--The term ``supported
employment'' means competitive work in
integrated work settings, or employment in
integrated work settings in which individuals
are working toward competitive work, consistent
with the strengths, resources, priorities,
concerns, abilities, capabilities, interests,
and informed choice of the individuals, for
individuals with the most significant
disabilities--
(i)(I) for whom competitive
employment has not traditionally
occurred; or
(II) for whom competitive employment
has been interrupted or intermittent as
a result of a significant disability;
and
(ii) who, because of the nature and
severity of their disability, need
intensive supported employment services
for the period, and any extension,
described in [paragraph (36)(C)]
paragraph (39)(C) and extended services
after the transition described in
paragraph (13)(C) in order to perform
such work.
(B) Certain transitional employment.--Such
term includes transitional employment for
persons who are individuals with the most
significant disabilities due to mental illness.
[(36)] (39) Supported employment services.--The term
``supported employment services'' means ongoing support
services and other appropriate services needed to
support and maintain an individual with a most
significant disability in supported employment, that--
(A) are provided singly or in combination and
are organized and made available in such a way
as to assist an eligible individual to achieve
competitive employment;
(B) are based on a determination of the needs
of an eligible individual, as specified in an
individualized plan for employment; and
(C) are provided by the designated State unit
for a period of time not to extend beyond 18
months, unless under special circumstances the
eligible individual and the rehabilitation
counselor or coordinator involved jointly agree
to extend the time in order to achieve the
employment outcome identified in the
individualized plan for employment.
[(37)] (40) Transition services.--The term
``transition services'' means a coordinated set of
activities for a student, designed within an outcome-
oriented process, that promotes movement from school to
post school activities, including postsecondary
education, vocational training, integrated employment
(including supported employment), continuing and adult
education, adult services, independent living, or
community participation. The coordinated set of
activities shall be based upon the individual student's
needs, taking into account the student's preferences
and interests, and shall include instruction, community
experiences, the development of employment and other
post school adult living objectives, and, when
appropriate, acquisition of daily living skills and
functional vocational evaluation.
[(38)] (41) Vocational rehabilitation services.--The
term ``vocational rehabilitation services'' means those
services identified in section 103 which are provided
to individuals with disabilities under this Act.
[(39)] (42) Workforce investment activities.--The
term ``workforce investment activities'' means
workforce investment activities, as defined in section
101 of the Workforce Investment Act of 1998, that are
carried out under that Act.
* * * * * * *
ADMINISTRATION OF THE ACT
Sec. 12. (a) In carrying out the purposes of this Act, the
Commissioner may--
(1)(A) provide consultative services and technical
assistance to public or nonprofit private agencies and
organizations, including assistance to enable such
agencies and organizations to facilitate meaningful and
effective participation by individuals with
disabilities in workforce investment activities[;] ;
and
(B) provide technical assistance to the designated
State units on developing successful partnerships with
employers;
* * * * * * *
SEC. 19. CARRYOVER.
(a) In General.--Except as provided in subsection (b), and
notwithstanding any other provision of law--
(1) any funds appropriated for a fiscal year to carry
out any grant program under part B of title I, [section
509 (except as provided in section 509(b)),] part B of
title VI, part B [or C] of chapter 1 of title VII, or
chapter 2 of title VII (except as provided in section
[752(b)] 753(b)), including any funds reallotted under
any such grant program, that are not obligated and
expended by recipients prior to the beginning of the
succeeding fiscal year; or
* * * * * * *
(c) Protection and Advocacy of Individual Rights.--
(1) Appropriated amounts.--Notwithstanding any other
provision of law, any funds appropriated for a fiscal
year to carry out a grant program under section 509
(except as provided in section 509(b)), including any
funds reallotted under such grant program, that are not
obligated and expended by recipients prior to the
beginning of the succeeding fiscal year shall remain
available for obligation and expenditure by such
recipients during such succeeding fiscal year.
(2) Program income.--Notwithstanding any other
provision of law, any amounts of program income
received by recipients under a grant program under
section 509 in a fiscal year that are not obligated and
expended by recipients prior to the beginning of the
succeeding fiscal year, shall remain available until
expended.
* * * * * * *
TITLE I--VOCATIONAL REHABILITATION SERVICES
PART A--GENERAL PROVISIONS
SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS.
(a) Findings; Purpose; Policy.--
(1) Findings.--Congress finds that--
* * * * * * *
(b) Authorization of Appropriations.--
(1) In general.--For the purpose of making grants to
States under part B to assist States in meeting the
costs of vocational rehabilitation services provided in
accordance with State plans under section 101, there
are authorized to be appropriated such sums as may be
necessary for [fiscal years 1999 through 2003] fiscal
years 2004 through 2009; except that the amount to be
appropriated for a fiscal year shall not be less than
the amount of the appropriation under this paragraph
for the immediately preceding fiscal year, increased by
the percentage change in the Consumer Price Index
determined under subsection (c) for the immediately
preceding fiscal year.
* * * * * * *
SEC. 101. STATE PLANS.
(a) Plan Requirements.--
(1) In general.--
(A) Submission.--* * *
* * * * * * *
(6) Methods for administration.--
(A) In general.--* * *
* * * * * * *
(B) Employment of individuals with
disabilities.--The State plan shall provide
that the designated State agency, and entities
carrying out community rehabilitation programs
in the State, who are in receipt of assistance
under this title shall take affirmative action
[to employ and advance in employment] to
recruit, employ, and advance in employment
qualified individuals with disabilities covered
under, and on the same terms and conditions as
set forth in, section 503.
* * * * * * *
(7) Comprehensive system of personnel development.--
The State plan shall--
(A) include a description (consistent with
the purposes of this Act) of a comprehensive
system of personnel development, which shall
include--
(i) * * *
* * * * * * *
[(I) a system for the
continuing education of
rehabilitation professionals
and paraprofessionals within
the designated State unit,
particularly with respect to
rehabilitation technology; and]
(I) a system for the
continuing education of
rehabilitation professionals
and paraprofessionals within
the designated State unit,
particularly with respect to
rehabilitation technology,
including training implemented
in coordination with State
programs carried out under
section 101 of the Assistive
Technology Act of 1998 (29
U.S.C. 3011); and
* * * * * * *
(8) Comparable services and benefits.--
(A) Determination of availability.--
(i) In general.--* * *
* * * * * * *
(iii) Services identified in
individualized work plan.--For purposes
of clause (i), for an individual who
receives assistance under the Ticket to
Work and Self-Sufficiency Program
established under section 1148 of the
Social Security Act (42 U.S.C. 1320b-
19), comparable benefits and services
available under such program only
include those benefits and services
identified in the individual's
individualized work plan developed by
an employment network pursuant to such
section.
* * * * * * *
(10) Reporting requirements.--
(A) In general.--* * *
* * * * * * *
(B) Annual reporting.--In specifying the
information to be submitted in the reports, the
Commissioner shall require [annual reporting on
the eligible individual receiving the services,
on those specific data elements described in
section 136(d)(2) of the Workforce Investment
Act of 1998] annual reporting of information on
eligible individuals receiving services that is
needed to assess performance on the core
indicators of performance described in section
136(b)(2)(A)(i) of the Workforce Investment Act
of 1998 that are determined by the Secretary to
be relevant in assessing the performance of
designated State units in carrying out the
vocational rehabilitation program established
under this title.
* * * * * * *
[(iii) of those applicants and
eligible recipients who are individuals
with significant disabilities--
[(I) the number who ended
their participation in the
program carried out under this
title and the number who
achieved employment outcomes
after receiving vocational
rehabilitation services; and
[(II) the number who ended
their participation in the
program and who were employed 6
months and 12 months after
securing or regaining
employment, or, in the case of
individuals whose employment
outcome was to retain or
advance in employment, who were
employed 6 months and 12 months
after achieving their
employment outcome, including--
[(aa) the number who
earned the minimum wage
rate specified in
section 6(a)(1) of the
Fair Labor Standards
Act of 1938 (29 U.S.C.
206(a)(1)) or another
wage level set by the
Commissioner, during
such employment; and
[(bb) the number who
received employment
benefits from an
employer during such
employment; and
[(iv) of those applicants and
eligible recipients who are not
individuals with significant
disabilities--
[(I) the number who ended
their participation in the
program carried out under this
title and the number who
achieved employment outcomes
after receiving vocational
rehabilitation services; and
[(II) the number who ended
their participation in the
program and who were employed 6
months and 12 months after
securing or regaining
employment, or, in the case of
individuals whose employment
outcome was to retain or
advance in employment, who were
employed 6 months and 12 months
after achieving their
employment outcome, including--
[(aa) the number who
earned the minimum wage
rate specified in
section 6(a)(1) of the
Fair Labor Standards
Act of 1938 (29 U.S.C.
206(a)(1)) or another
wage level set by the
Commissioner, during
such employment; and
[(bb) the number who
received employment
benefits from an
employer during such
employment.]
(iii) the number of applicants and
eligible recipients, including the
number of individuals with significant
disabilities, who exited the program
carried out under this title and the
number of such individuals who achieved
employment outcomes after receiving
vocational rehabilitation services; and
(iv) the number of individuals who
received vocational rehabilitation
services who entered and retained
employment and the increases in
earnings of such individuals,
consistent with State reporting
responsibilities pursuant to section
136(b)(2)(A)(i) of the Workforce
Investment Act of 1998.
* * * * * * *
(E) Additional information.--* * *
* * * * * * *
(i) * * *
* * * * * * *
(ii) information necessary to
determine the success of the State [in
meeting] in meeting the standards and
indicators established pursuant to
section 106--
[(I) the State performance
measures established under
section 136(b) of the Workforce
Investment Act of 1998, to the
extent the measures are
applicable to individuals with
disabilities; and
[(II) the standards and
indicators established pursuant
to section 106.]
* * * * * * *
(11) Cooperation, collaboration, and coordination.--
(A) Cooperative agreements with other
components of statewide workforce investment
systems.--
* * * * * * *
[(C) Interagency cooperation with other
agencies.--The State plan shall include
descriptions of inter-agency cooperation with,
and utilization of the services and facilities
of, Federal, State, and local agencies and
programs, including programs carried out by the
Under Secretary for Rural Development of the
Department of Agriculture and State use
contracting programs, to the extent that such
agencies and programs are not carrying out
activities through the statewide workforce
investment system.]
(C) Interagency cooperation with other
agencies.--The State plan shall include
descriptions of interagency cooperation with,
and utilization of the services and facilities
of Federal, State, and local agencies and
programs, including the State programs carried
out under section 101 of the Assistive
Technology Act of 1998 (29 U.S.C. 3011),
programs carried out by the Under Secretary for
Rural Development of the Department of
Agriculture, and State use contracting
programs, to the extent that such agencies and
programs are not carrying out activities
through the statewide workforce investment
system.
* * * * * * *
(D) Coordination with education officials.--*
* *
* * * * * * *
(i) * * *
* * * * * * *
(ii) transition planning by personnel
of the designated State agency and the
State educational agency that will
facilitate the development and
completion of the individualized
education programs under section 614(d)
of the Individuals with Disabilities
Education Act (20 U.S.C. 1414(d)) and,
as appropriate, the development and
completion of the individualized plan
for employment, in order to achieve
post-school employment outcomes of
students with disabilities;
* * * * * * *
(G) Coordination with ticket to work and
self-sufficiency program.--The State plan shall
provide that the designated State unit will
coordinate activities with any other State
agency that administers a Ticket to Work and
Self-Sufficiency Program established under
section 1148 of the Social Security Act (42
U.S.C. 1320b-19).
* * * * * * *
(20) Information and referral service.--
(A) In general.--* * *
* * * * * * *
(B) Information on assistance for
beneficiaries of assistance under title ii or
xvi of the social security act.--The State plan
shall include an assurance that the designated
State agency will make available to individuals
entitled to benefits under title II or XVI of
the Social Security Act (42 U.S.C. 401 et seq.,
1381 et seq.) on the basis of a disability or
blindness, information on the availability of--
(i) medical assistance under the
State medicaid program under title XIX
of the Social Security Act (42 U.S.C.
1396 et seq.);
(ii) benefits under the medicare
program under title XVIII of the Social
Security Act (42 U.S.C. 1395 et seq.);
(iii) assistance through benefits
planning and assistance programs under
section 1149 of the Social Security Act
(42 U.S.C. 1320b-20) and protection and
advocacy programs under section 1150 of
the Social Security Act (42 U.S.C.
1324b-21); and
(iv) medical assistance under other
federally funded programs.
(C) Information for individuals under the
ticket to work program.--The State plan shall
include an assurance that the designated State
agency will make available to individuals
entitled to benefits under title II or XVI of
the Social Security Act (42 U.S.C. 401 et seq.,
1381 et seq.) on the basis of a disability or
blindness and eligible for assistance under the
Ticket to Work and Self-Sufficiency Program
established under section 1148 of the Social
Security Act (42 U.S.C. 1320b-19), general
information regarding the Ticket to Work and
Self-Sufficiency Program and specific
information on how to contact the program
manager of the Ticket to Work and Self-
Sufficiency Program to obtain information on
approved employment networks.
[(B)] (D) Referrals.--An appropriate referral
made through the system shall--
(i) * * *
(II) information identifying
a specific [point of contact],
to the meximum extent possible,
within the agency carrying out
the program; and
(III) information and advice
regarding the most suitable
services to assist the
individual to prepare for,
secure, retain, [or regain]
regain, or advance in
employment.
* * * * * * *
SEC. 102. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT.
(a) Eligibility.--
(1) Criterion for eligibility.--* * *
* * * * * * *
(b) Development of an Individualized Plan for Employment.--
(1) Options for developing an individualized plan for
employment.--* * *
* * * * * * *
(A) information on the availability of
assistance, to the extent determined to be
appropriate by the eligible individual, from a
qualified vocational rehabilitation counselor
in developing all or part of the individualized
plan for employment for the individual, and the
availability of technical assistance in
developing all or part of the individualized
plan for employment for the individual[;]
including a listing of all the community
resources (including resources from consumer
organizations), to the maximum extent possible,
to assist in the development of such
individual's individualized plan for employment
to enable the individual to make informed and
effective choices in developing the
individualized plan for employment;
* * * * * * *
(D)(i) a description of the rights and
remedies available to such an individual
including, if appropriate, recourse to the
processes set forth in subsection (c); [and]
(ii) a description of the availability of a
client assistance program established pursuant
to section 112 and information about how to
contact the client assistance program[.];
(iii) for individuals entitled to benefits
under title II or XVI of the Social Security
Act (42 U.S.C. 401 et seq., 1381 et seq.) on
the basis of a disability or blindness,
information on the availability of--
(I) medical assistance under the
State medicaid program under title XIX
of the Social Security Act (42 U.S.C.
1396 et seq.);
(II) benefits under the medicare
program under title XVIII of the Social
Security Act (42 U.S.C. 1395 et seq.);
(III) assistance through benefits
planning and assistance programs under
section 1149 of the Social Security Act
(42 U.S.C. 1320b-20) and protection and
advocacy programs under section 1150 of
the Social Security Act (42 U.S.C.
1320b-21); and
(IV) medical assistance under other
federally funded programs; and
(iv) for individuals entitled to benefits
under title II or XVI of the Social Security
Act (42 U.S.C. 401 et seq., 1381 et seq.) on
the basis of a disability or blindness and
eligible for assistance under the Ticket to
Work and Self-Sufficiency Program established
under section 1148 of the Social Security Act
(42 U.S.C. 1320b-19), information--
(I) on the options under the Ticket
to Work and Self-Sufficiency Program;
and
(II) on how to contact the program
manager of the Ticket to Work and Self-
Sufficiency Program who has contact
information on approved employment
networks, the benefits planning and
assistance programs in the area, and
the protection and advocacy programs in
the area.
* * * * * * *
(2) Mandatory procedures.--
(A) Written document.--* * *
* * * * * * *
(E) Review and amendment.--The individualized
plan for employment shall be--
(i) reviewed at least annually by--
(I) * * *
* * * * * * *
(II) the eligible individual
or, as appropriate, the
individual's representative,
[and]
(ii) amended, as necessary, by the
individual or, as appropriate, the
individual's representative, in
collaboration with a representative of
the designated State agency or a
qualified vocational rehabilitation
counselor (to the extent determined to
be appropriate by the individual), if
there are substantive changes in the
employment outcome, the vocational
rehabilitation services to be provided,
or the service providers of the
services (which amendments shall not
take effect until agreed to and signed
by the eligible individual or, as
appropriate, the individual's
representative, and by a qualified
vocational rehabilitation counselor
employed by the designated State
unit[.]; and
(iii) amended, as necessary, to
include the post-employment services
and service providers that are
necessary for the individual to
maintain, regain, or advance in
employment, consistent with the
individual's strengths, resources,
priorities, concerns, abilities,
capabilities, interests, and informed
choice.
(3) Mandatory components of an individualized plan
for employment.--* * *
* * * * * * *
(B)(i) a description of the specific
vocational rehabilitation services that are--
(I) needed to achieve the employment
outcome, including, as appropriate, the
provision of assistive technology
devices and assistive [and personal
assistance services], technology
services, mentoring services, and
personal assistance services including
training in the management of such
services; and
* * * * * * *
(F) for an eligible individual with the most
significant disabilities for whom an employment
outcome in a supported employment setting has
been determined to be appropriate, information
identifying--
(1) * * *
* * * * * * *
(ii) the source of extended services
or, to extent that the source of the
extended services cannot be identified
at the time of the development of the
individualized plan for employment, a
description of the basis for concluding
that there is a reasonable expectation
that such source will become available;
[and]
(G) as determined to be necessary, a
statement of projected need for post-employment
services[.];
(H) for a student with a disability, the
description--
(i) in paragraph (3)(A), may be a
description of the student's projected
post-school employment outcome; and
(ii) in paragraph (3)(B), shall
include the specific transition
services (including, as appropriate,
work experience and mentoring
activities) needed to achieve the
student's employment outcome or
projected employment outcome; and
(I) for an individual who is receiving
assistance under the Ticket to Work and Self-
Sufficiency Program established under section
1148 of the Social Security Act (42 U.S.C.
1320b-19), a list of services such individual
receives from an employment network other than
the designated State unit.
* * * * * * *
(c) Procedures.--
(1) In general.--* * *
* * * * * * *
(7) Impact on provision of services.--Unless the
individual with a disability so requests, or, in an
appropriate case, the individual's representative, so
requests, pending a decision by a mediator, hearing
officer, or reviewing officer under this subsection,
the designated State unit shall not institute a
suspension, reduction, or termination of services being
provided for the individual, including evaluation and
assessment services and plan development that take into
consideration the informed choice of the individual,
unless such services have been obtained through
misrepresentation, fraud, collusion, or criminal
conduct on the part of the individual, or the
individual's representative.
* * * * * * *
SEC. 103. VOCATIONAL REHABILITATION SERVICES.
(a) Vocational Rehabilitation Services for Individuals.--
* * * * * * *
(5) vocational and other training services, including
the provision of personal and vocational adjustment
services, literacy services, books, tools, and other
training materials, except that no training services
provided at an institution of higher education shall be
paid for with funds under this title unless maximum
efforts have been made by the designated State unit and
the individual to secure grant assistance, in whole or
in part, from other sources to pay for such training;
* * * * * * *
(17) services to the family of an individual with a
disability necessary to assist the individual to
achieve an employment outcome; [and]
(18) specific post-employment services necessary to
assist an individual with a disability to, retain,
regain, or advance in employment[.]; and
(19) mentoring services.
* * * * * * *
SEC. 105. STATE REHABILITATION COUNCIL.
(a) Establishment.--
(1) In general.--* * *
* * * * * * *
(b) Composition and Appointment.--
(1) Composition.--
(A) In general.--Except in the case of a
separate Council established under subsection
(a)(2), the Council shall be composed of--
(i) * * *
* * * * * * *
[(ix) in a State in which one or more
projects are carried out under section
121, at least one representative of the
directors of the projects;]
(ix) in a State in which 1 or more
projects provide services under section
121, not less than 1 representative of
the directors of the projects;
* * * * * * *
[(5) Chairperson.--
[(A) In general.--Except as provided in
subparagraph (B), the Council shall select a
chairperson from among the membership of the
Council.
[(B) Designation by chief executive
officer.--In States in which the chief
executive officer does not have veto power
pursuant to State law, the appointing authority
described in paragraph (3) shall designate a
member of the Council to serve as the
chairperson of the Council or shall require the
Council to so designate such a member.]
(5) Chairperson.--The Council shall select a
chairperson from among the voting membership of the
Council.
* * * * * * *
SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.
(a) Establishment.--
(1) In general.--
(A) Establishment of standards and
indicators.--
* * * * * * *
(b) Compliance.--
(1) State reports.--* * *
* * * * * * *
(B) Review.--The Commissioner shall--
(i) review the program improvement
efforts of the State on a biannual
basis and[, if necessary, request the
State to make further revisions to the
plan to improve performance;] if the
State has not improved its performance
to acceptable levels, as determined by
the Commissioner, direct the State to
make further revisions to the plan to
improve performance, which may include
allocating a higher proportion of the
State's resources for services to
individuals with disabilities if the
State's spending on such services is
low in comparison to spending on such
services in comparable agencies in
other States; and
* * * * * * *
PART B--BASIC VOCATIONAL REHABILITATION SERVICES
STATE ALLOTMENTS
Sec. 110. (a)(1) * * *
* * * * * * *
[(b)(1) Not later than 45 days prior. to the end of the
fiscal year, the Commissioner shall determine, after reasonable
opportunity for the submission to the Commissioner of comments
by the State agency administering or supervising the program
established under this title, that any payment of an allotment
to a State under section 111(a) for any fiscal year will not be
utilized by such State in carrying out the purposes of this
title.
[(2) As soon as practicable but not later than the end of
the fiscal year, the Commissioner shall make such amount
available for carrying out the purposes of this title to one or
more other States to the extent the Commissioner determines
such other State will be able to use such additional amount
during that fiscal year or the subsequent fiscal year for
carrying out such purposes. The Commissioner shall make such
amount available only if such other State will be able to make
sufficient payments from non-Federal sources to pay for the
non-Federal share of the cost of vocational rehabilitation
services under the State plan for the fiscal year for which the
amount was appropriated.
[(3) For the purposes of this part, any amount made
available to a State for any fiscal year pursuant to this
subsection shall be regarded as an increase of such State's
allotment (as determined under the preceding provisions of this
section) for such year.]
(b) Reallotment.--
(1) Determination.--Not later than 45 days prior to
the end of the fiscal year, the Commissioner shall
determine, after reasonable opportunity for the
submission to the Commissioner of comments by the State
agency administering or supervising the program
established under this title, that any payment of an
allotment to a State under section 111(a) for any
fiscal year will not be utilized by such State in
carrying out the purposes of this title.
(2) Formula.--
(A) In general.--As soon as practicable but
not later than the end of the fiscal year, the
Commissioner shall reallot the amount available
under paragraph (1) to other States, consistent
with subparagraphs (B) and (C), for carrying
out the purposes of this title to the extent
the Commissioner determines such other State
will be able to use such additional amount
during that fiscal year or the subsequent
fiscal year for carrying out such purposes.
(B) Formula.--
(i) Eligible states.--The
Commissioner shall reallot the amount
available under paragraph (1) for a
fiscal year to each State whose
allotment under subsection (a) for such
fiscal year is less than such State's
allotment under subsection (a) for the
immediately preceding fiscal year
increased by the percentage change in
the funds available for subsection (a)
from the immediately preceding fiscal
year.
(ii) Amount.--
(I) In general.--A State that
is eligible to receive a
reallotment under clause (i)
shall receive an amount for a
fiscal year from the amount
available for reallotment under
paragraph (1) that is equal to
the difference between--
(aa) the amount such
State received for such
fiscal year; and
(bb) the amount such
State was allotted
under subsection (a)
for the immediately
preceding fiscal year
adjusted by the
percentage change in
the funds available for
subsection (a) from the
immediately preceding
fiscal year.
(II) Insufficient funds.--If
the amount available for
reallotment under paragraph (1)
is insufficient to provide each
State eligible to receive a
reallotment with the amount
described in subclause (I), the
amount reallotted to each
eligible State shall be
determined, by the
Commissioner.
(C) Remaining funds.--If there are remaining
after each State eligible to receive a
reallotment under subparagraph (B)(i) receives
the amount described, in subparagraph (B)(ii),
the Commissioner shall reallot the remaining
funds among the States requesting a
reallotment.
(3) Non-federal share.--The Commissioner shall
reallot an amount to a State under this subsection only
if the State will be able to make sufficient payments
from non-Federal sources to pay for the non-Federal
share of the cost of vocational rehabilitation services
under the State plan for the fiscal year for which the
amount was appropriated.
(4) Increase in allotment.--For the purposes of this
part, any amount made available to a State for any
fiscal year pursuant to this subsection shall be
regarded as an increase of such State's allotment (as
determined under the preceding provisions of this
section) for such year.
(c)(1) For fiscal year 1987 and for each subsequent fiscal
year, the Commissioner shall reserve from the amount
appropriated under section 100(b)(1) for allotment under this
section a sum, determined under paragraph (2), to carry out the
purposes of part C.
[(2) The sum referred to in paragraph (1) shall be, as
determined by the Secretary--
[(A) not less than three-quarters of 1 percent and
not more than 1.5 percent of the amount referred to in
paragraph (1), for fiscal year 1999; and
[(B) not less than 1 percent and not more than 1.5
percent of the amount referred to in paragraph (1), for
each of fiscal years 2000 through 2003.]
(2)(A) In this paragraph:
(i) The term ``appropriated amount'' means the amount
appropriated under section 100(b)(1) for allotment
under this section.
(ii) The term ``covered year'' means a fiscal year--
(I) that begins after September 30, 2003; and
(II) for which the appropriated amount
exceeds the total of--
(aa) the appropriated amount for the
preceding fiscal year; and
(bb) 0.075 percent of the
appropriated amount for the preceding
fiscal year.
(B) For each covered year, the sum referred to in paragraph
(1) shall be, as determined by the Secretary--
(i) not less than the total of the sum reserved under
this subsection for the preceding fiscal year and 0.1
percent of the appropriated amount for the covered
year; and
(ii) not more than 1.5 percent of the appropriated
amount for the covered year.
* * * * * * *
CLIENT ASSISTANCE PROGRAM
Sec. 112. (a) From funds appropriated under subsection (h),
the Secretary shall, in accordance with this section make
grants to [States] agencies designated under subsection (c) to
establish and carry out client assistance programs to provide
assistance in informing and advising all clients and client
applicants of all available benefits under this Act, and, upon
request of such clients or client applicants, to assist and
advocate for such clients or applicants in their relationships
with projects, programs, and services provided under this Act,
including assistance and advocacy in pursuing legal,
administrative, or other appropriate remedies to ensure the
protection of the rights of such individuals under this Act and
to facilitate access to the services funded under this Act
through individual and systemic advocacy. The client assistance
program shall provide information on the available services and
benefits under this Act and title I of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) to
individuals with disabilities in the State, especially with
regard to individuals with disabilities who have traditionally
been unserved or underserved by vocational rehabilitation
programs. In providing assistance and advocacy under this
subsection with respect to services under this title, a client
assistance program may provide the assistance and advocacy with
respect to services that are directly related to facilitating
the employment of the individual.
* * * * * * *
(e)(1)(A) [The Secretary shall allot the sums appropriated
for each fiscal year under this section among the States on the
basis of relative population of each State, except that no
State shall receive less than $50,000.] After reserving funds
under subparagraphs (E) and (F), the Secretary shall allot the
remainder of the sums appropriated for each fiscal year under
this section among the agencies designated under subsection (c)
within the States on the basis of relative population of each
State, except that no such agency shall receive less than
$50,000.
(B) The Secretary shall allot $30,000 each to the
designated agencies located in American Samoa, Guam, the Virgin
Islands, and the Commonwealth of the Northern Mariana Islands.
* * * * * * *
(D)(i) In any fiscal year that the funds appropriated for
such fiscal year exceed $7,500,000, the minimum allotment shall
be $100,000 for the designated agencies located in States and
$45,000 for the designated agencies located in territories.
* * * * * * *
(E)(i) Beginning on October 1, 2004, for any fiscal year
for which the amount appropriated to carry out this section
equals or exceeds $13,000,000, the Secretary shall reserve
funds appropriated under this section to make grants to the
protection and advocacy system serving the American Indian
Consortium to provide client assistance services in accordance
with this section. The amount of such grants shall be the same
amount as provided to territories under subparagraph (B), as
increased under clauses (i) and (ii) of subparagraph (D).
(ii) In this subparagraph:
(I) The term ``American Indian Consortium'' has the
meaning given the term in section 102 of the
Developmental Disabilities Assistance and Bill of
Rights Act of 2000 (42 U.S.C. 15002).
(II) The term ``protection and advocacy system''
means a protection and advocacy system established
under subtitle C of title I of the Developmental
Disabilities Assistance and Bill of Rights Act of 2000
(42 U.S.C. 15041 et seq.).
(F) For any fiscal year for which the amount appropriated
to carry out this section equals or exceeds $14,000,000, the
Secretary shall reserve not less than 1.8 percent and not more
than 2.2 percent of such amount to provide training and
technical assistance to the programs established under this
section. Such training and technical assistance shall be
coordinated with activities provided under section
509(c)(1)(A).
(2) The amount of an allotment to a [State] designated
agency for a fiscal year which the Secretary determines will
not be required by the [State] designated agency during the
period for which it is available for the purpose for which
alloted shall be available for reallotment by the Secretary at
appropriate times to other [States] designated agencies with
respect to which such a determination has not been made, in
proportion to the original allotments of such [States]
designated agencies for such fiscal year, but with such
proportionate amount for any of such other [State] designated
agency being reduced to the extent it exceeds the sum the
Secretary estimates such [State] designated agency needs and
will be able to use during such period, and the total of such
reduction shall be similarly realloted among the [States]
designated agencies whose proportionate amounts were not so
reduced. Any such amount so realloted to a [State] designated
agency for a fiscal year shall be deemed to be a part of its
allotment for such fiscal year.
(3) [Except as specifically prohibited by or as otherwise
provided in State law, the Secretary shall pay] The Secretary
shall pay directly to the agency designated under subsection
(c) the amount specified in the application approved under
subsection (f).
(f) No grant may be made under this section unless the
[State] agency designated under subsection (c) submits an
application to the Secretary at such time, in such manner, and
containing or accompanied by such information as the Secretary
deems necessary to meet the requirements of this section.
* * * * * * *
(h) There are authorized to be appropriated such sums as
may be necessary for [fiscal years 1999 through 2003] fiscal
years 2004 through 2009 to carry out the provisions of this
section.
* * * * * * *
SEC. 113. INCENTIVE GRANTS.
(a) Authority.--The Commissioner is authorized to make
incentive grants to States that, based on the criteria
established under subsection (b)(1), demonstrate--
(1) a high level of performance; or
(2) a significantly improved level of performance as
compared to the previous reporting period or periods.
(b) Criteria.--
(1) Establishment.--Not later than 180 days after the
date of enactment of this section, the Commissioner
shall establish, and publish in the Federal Register,
criteria for making grant awards under subsection (a).
(2) Development and evaluation standards.--The
criteria under paragraph (1) shall--
(A) be developed with input from State
vocational rehabilitation agencies and other
vocational rehabilitation stakeholders,
including vocational rehabilitation consumers
and consumer organizations; and
(B) be based upon the evaluation standards
and performance indicators established under
section 106 and other performance related
measures that the Commissioner determines to be
appropriate.
(c) Use of Funds.--A State that receives a grant under
subsection (a) shall use the grant funds for any approved
activities in the State's State plan submitted under section
101.
(d) No Non-Federal Share Requirement.--The provisions of
sections 101(a)(3) and 111(a)(2) shall not apply to 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 2004 through 2009.
* * * * * * *
PART C--AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES
VOCATIONAL REHABILITATION SERVICES GRANTS
Sec. 121. (a) The Commissioner, in accordance with the
provisions of this part, may make grants to the governing
bodies of Indian tribes located on Federal and State
reservations (and con sortia of such governing bodies) to pay
90 percent of the costs of vocational rehabilitation services
for American Indians who are individuals with disabilities
residing on or near such reservations, consistent with such
individuals' strengths, resources, priorities, concerns,
abilities, capabilities, interests, and informed choice, so
that such individuals may prepare for, and engage in, gainful
employment. The non-Federal share of such costs may be in cash
or in kind, fairly valued, and the Commissioner may waive such
non-Federal share requirement in order to carry out the
purposes of this Act.
* * * * * * *
(B) contains assurances that the
rehabilitation services provided under this
part to American Indians who are individuals
with disabilities residing on or near a
reservation in a State shall be, to the maximum
extent feasible, comparable to rehabilitation
services provided under this title to other
individuals with disabilities residing in the
State and that, where appropriate, may include
services traditionally used by Indian tribes;
[and]
(C) contains assurances that the application
was developed in consultation with the
designated State unit of the State[.]; and
(D) contains assurances that--
(i) all decisions affecting
eligibility for vocational
rehabilitation services, the nature and
scope of available services, and the
provision of such services, will be
made by a representative of the tribal
vocational rehabilitation program; and
(ii) such decisions will not be
delegated to another agency or
individual.
* * * * * * *
(3) [Any application approved under this part shall
be effective for not more than 60 months, except as
determined otherwise by the Commissioner pursuant to
prescribed regulations.] An application approved under
this part that complies with the program requirements
set forth in the regulations promulgated to carry out
this part shall be effective for 5 years and shall be
renewed for additional 5-year periods if the
Commissioner determines that the grantee demonstrated
acceptable past performance and the grantee submits a
plan, including a proposed budget, to the Commissioner
that the Commissioner approves that identifies future
performance criteria, goals, and objectives. The State
shall continue to provide vocational rehabilitation
services under its State plan to American Indians
residing on or near a reservation whenever such State
includes any such American Indians in its State
population under section 110(a)(1).
[(4) In making grants under this part, the Secretary
shall give priority consideration to applications for
the continuation of programs which have been funded
under this part.]
(4) In allocating funds under this part, the
Secretary shall give priority to paying the
continuation costs of existing projects and may provide
for increases in funding for such projects as
determined necessary.
* * * * * * *
AUTHORIZATION OF APPROPRIATIONS
Sec. 201. (a) There are authorized to be appropriated--
(1) for the purpose of providing for the expenses of
the National Institute on Disability and Rehabilitation
Research under section 202, which shall include the
expenses of the Rehabilitation Research Advisory
Council under section 205, and shall not include the
expenses of such Institute to carry out section 204,
such sums as may be necessary for each of [fiscal years
1999 through 2003] fiscal years 2004 through 2009; and
(2) to carry out section 204, such sums as may be
necessary for each of [fiscal years 1999 through 2003]
fiscal years 2004 through 2009.
NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION RESEARCH
Sec. 202. (a)(1) * * *
* * * * * * *
(f)(1) The Director shall provide for scientific peer
review of all applications for financial assistance for
research, training, and demonstration projects over which the
Director has authority. The scientific peer review shall be
conducted by individuals who are not [Federal employees]
Department of Education employees, who are scientists or other
experts in the rehabilitation field (including the independent
living field), including knowledgeable individuals with
disabilities, and the individuals' representatives, and who are
competent to review applications for the financial assistance.
* * * * * * *
RESEARCH AND OTHER COVERED ACTIVITIES
Sec. 204. (a)(1) * * *
* * * * * * *
(c)(1) * * *
* * * * * * *
(2) The Director shall not make a grant under this section
that exceeds [$500,000] $750,000 unless the peer review of the
grant application has included a site visit.
* * * * * * *
SEC. 205. REHABILITATION RESEARCH ADVISORY COUNCIL.
(a) Establishment.--* * *
* * * * * * *
(c) Qualifications.--Members of the Council shall be
generally representative of the community of rehabilitation
professionals, the community of rehabilitation researchers, the
community of individuals with disabilities, and the
individuals' representatives. At least one-half of the members
shall be individuals with disabilities or the individuals'
representatives. The Council also shall include a
representative from the business community who has experience
with the vocational rehabilitation system and hiring
individuals with disabilities.
* * * * * * *
SEC. 302. TRAINING.
(a) Grants and Contracts for Personnel Training.--
(1) Authority.--* * *
* * * * * * *
(b) Grants and Contracts for Academic Degrees and Academic
Certificate Granting Training Projects.--
(1) Authority.--
(A) In general.--* * *
* * * * * * *
(B) Types of projects.--Academic training
projects described in this subsection may
include--
(i) projects to train personnel in
the areas of assisting and supporting
individuals with disabilities pursuing
self-employment, business ownership,
and telecommuting, and of vocational
rehabilitation counseling,
rehabilitation technology,
rehabilitation medicine, rehabilitation
nursing, rehabilitation social work,
rehabilitation psychiatry,
rehabilitation psychology,
rehabilitation dentistry, physical
therapy, occupational therapy, speech
pathology and audiology, physical
education, therapeutic recreation,
community rehabilitation programs, [or
prosthetics and orthotics] prosthetics
and orthotics, rehabilitation for the
blind, or orientation and mobility
instruction;
* * * * * * *
(i) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums, as may
be necessary for each of the [fiscal years 1999 through 2003]
fiscal years 2004 through 2009.
* * * * * * *
SEC. 303. DEMONSTRATION AND TRAINING PROGRAMS.
(a) Demonstration Projects To Increase Client Choice.--
(1) Grants.--* * *
* * * * * * *
(5) Priority for competitions.--
(A) In general.--In announcing competitions
for grants and contracts under this subsection,
the Commissioner shall give priority
consideration to--
(i) [special projects] not less than
2 special projects and demonstration
programs of service delivery for adults
who are either low-functioning and deaf
or low-functioning and hard of hearing;
* * * * * * *
(c) Demonstration Projects for Employment of Students With
Intellectual Disabilities or Mental Illness.--
(1) Purpose.--The purpose of this subsection is to
support model demonstration projects to provide
supported and competitive employment experiences for
students with intellectual disabilities or students
with mental illness, and training for personnel that
work with students described in this paragraph, to
enable the students to gain employment skills and
experience that will promote effective transitions from
school to employment and adult living.
(2) Grants authorized.--
(A) Competitive grants authorized.--The
Secretary may award grants, contracts, and
cooperative agreements, on a competitive basis,
to eligible organizations described in
paragraph (3), to enable the organizations to
carry out demonstration projects described in
paragraph (1).
(B) Duration.--The Secretary shall award
grants under this subsection for periods of 3
to 5 years.
(3) Eligible organizations.--To be eligible to
receive a grant, contract, or cooperative agreement
under this subsection, an organization shall--
(A) have expertise in providing employment
and support services for individuals with
intellectual disabilities or individuals with
mental illness;
(B) have a proven track record in
successfully running supported employment
programs;
(C) provide employment services that are
exclusively integrated community-based
supported employment services;
(D) have expertise in creating natural
supports for employment;
(E) have expertise in providing computer
training for the targeted population for the
project involved; and
(F) have experience operating mentoring
programs for the target population in middle
and high schools for at least a decade in
diverse communities throughout the Nation.
(4) Applications.--Each organization desiring to
receive a grant, contract, or cooperative agreement
under this subsection shall submit an application to
the Secretary at such time, in such manner, and
including such information as the Secretary may
require. Each application shall include--
(A) a description of how the organization
plans to carry out the activities authorized in
this subsection through a demonstration
project;
(B) a description of how the organization
will evaluate the project;
(C) a description of how the organization
will disseminate information about the
activities and the impact of the activities on
the lives of students served by the project;
and
(D) a description of how the organization
will coordinate activities with any other
relevant service providers in the locality
where the organization is based, including
federally supported independent living centers.
(5) Authorized activities.--An organization that
receives a grant under this subsection shall use the
funds made available through the grant to carry out 1
or more of the following activities for individuals,
ages 14 through 21, who are students with intellectual
disabilities or students with mental illness:
(A) Providing supported and competitive
employment experiences.--The development of
innovative and effective supported and
competitive employment experiences after
school, on weekends, and in the summer,
utilizing natural supports that lead to
competitive high-paying jobs.
(B) Providing training to school and
transition personnel.--The development and
deployment of experts to work with transition
programs (including personnel working with
students on transition) so that personnel from
the programs develop skills needed to train
students with intellectual disabilities or
students with mental illness to be successful
in competitive employment in a range of
settings, including office settings. The
training shall include training for the
personnel in providing instruction to students
in computer skills, office skills, interview
etiquette, and appropriate social behavior
required for successful long-term employment in
professional environments.
(6) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection $5,000,000 for fiscal year 2004 and such
sums as may be necessary for fiscal years 2005 through
2008.
(d) Demonstration Project for Employment of Individuals Who
Are Deaf and Low Functioning.--
(1) Purpose.--It is the purpose of this subsection to
support a model demonstration project to provide
training and support services for individuals who are
deaf and low functioning to enable them to gain
employment skills that will allow them to become
employed and economically self-sufficient.
(2) Definition.--
(A) In general.--In this subsection, the term
``individual who is deaf and low functioning''
means an individual who has been deaf from
birth or very early childhood, reads at or
below the second grade level, has little or no
intelligible speech, and lacks a high school
diploma or GED.
(B) Secondary disabilities.--Such term may
include an individual with a secondary
disability.
(3) Grants authorized.--
(A) Competitive grants authorized.--The
Secretary may award grants to State agencies,
other public agencies or organizations, or not-
for-profit organizations with expertise in
providing employment training and support
services for individuals who are deaf and low
functioning to support model demonstration
projects.
(B) Duration.--Grants under this subsection
shall be awarded for a period not to exceed 5
years.
(4) Authorized activities.--
(A) Developing a comprehensive training
program.--Each grant recipient shall develop an
innovative, comprehensive program of
instruction for individuals who are deaf and
low functioning that can be implemented, at
multiple training locations through such means
as distance learning and use of advanced
technology, as appropriate. Such training
program shall be developed to maximize the
potential for replication of the program by
other training providers.
(B) Implementation.--Each grant recipient
shall implement the comprehensive training
program developed in subparagraph (A) as soon
as feasible. Such training shall provide
instruction on the job and the social skills
necessary for successful long-term employment
of individuals who are deaf, and low
functioning.
(C) Establishing a post-training program of
employment and support services.--Each grant
recipient shall implement employment and
support services to assist individuals who
complete the training program under
subparagraph (A) in securing employment and
transitioning to the workplace for a period of
not less than 90 days subsequent to placement.
(5) Applications.--Each entity desiring to receive a
grant under this subsection shall submit an application
to the Secretary at such time, in such manner, and
accompanied by such information as the Secretary may
require including--
(A) a description of how the applicant plans
to address the activities authorized under this
subsection;
(B) a description of the evaluation plan to
be used in the project;
(C) a description of how the applicant will
disseminate information about the training
program developed and the results of the model
demonstration project; and
(D) a description of how the project will
coordinate with any other relevant service
providers or entities providing employment
training and supports for individuals who are
deaf and low functioning.
(6) Mandated evaluation and dissemination
activities.--
(A) Annual report.--Not later than 2 years
after the date on which a grant under this
subsection is awarded and annually thereafter,
each grant recipient shall submit to the
Commissioner a report containing--
(i) the number of individuals who are
participating in the demonstration
project funded under this subsection;
(ii) the employment and other skills
being taught in the project;
(iii) the number of individuals
participating in the project that are
placed in employment;
(iv) the job sites in which those
individuals are placed and the type of
jobs they are placed in; and
(v) the number of individuals who
have dropped out of the project and the
reasons for their terminating
participation in the project.
(B) Evaluation of the project.--Each grant
recipient shall implement the evaluation plan
approved in its application for determining the
results of the project within the timeframe
specified in, and following the provisions of,
its approved application.
(C) Participant evaluation process; final
evaluation.--In the final year of the project,
the grant recipient will produce a final
evaluation report of the results of the model
demonstration project containing--
(i) the number of individuals who
participated in the training program;
(ii) a description of the job sites
in which those individuals were placed;
(iii) the number of individuals
placed in employment and the type of
employment in which they were placed;
(iv) the number of individuals who
did not complete their training and the
reasons those individuals dropped out
of the project;
(v) the number of individuals who
participated in the training project
and who remain employed as of 2 months
prior to the date on which the final
report is submitted to the Secretary;
(vi) a written analysis of the model
project, including both the strengths
and weaknesses of the project, to
assist other entities in replicating
the training program developed through
this model demonstration project; and
(vii) such other information as the
Secretary determines appropriate.
(D) Dissemination.--Not later than 5 years
after the date on which an award is granted
under this subsection, the evaluations and
results of activities funded by such grant
shall be disseminated to State vocational
rehabilitation agencies, school systems
providing instruction to students who are deaf,
supported employment providers, postsecondary
vocational training programs, employers, the
Social Security Administration, and other
interested parties.
(7) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection, $5,000,000 for fiscal year 2004 and such
sums as may be necessary for each of fiscal years 2005
through 2008.
[(c)] (e) Parent Information and Training Program.--
(1) Grants.--* * *
* * * * * * *
[(d)] (f) Braille Training Programs.--
(1) Establishment.--* * *
* * * * * * *
(g) Access to Telework.--
(1) Definition of telework.--In this subsection, the
term ``telework'' means to work from home and other
telework sites with the assistance of a computer and
with reasonable accommodations, including the necessary
equipment to facilitate successful work from home and
other telework sites.
(2) Authorization of program.--The Commissioner is
authorized to make grants to States and governing
bodies of American Indian tribes located on Federal and
State reservations (and consortia of such governing
bodies) to pay for the Federal share of the cost of
establishing or expanding a telework program.
(3) Application.--A State that desires to receive a
grant under this subsection shall submit an application
to the Commissioner at such time, in such manner, and
containing such information as the Commissioner may
require.
(4) Use of funds.--A State that receives a grant
under this subsection shall establish or expand a
telework program that shall provide loans or other
alternative financing mechanisms to individuals with
disabilities to enable such individuals to purchase
computers or other equipment, including adaptive
equipment, that facilitates work from home and other
telework sites so that such individuals are able to
telework.
(5) Annual report.--
(A) In general.--A State that receives a
grant under this subsection shall submit an
annual report to the Commissioner.
(B) Contents.--The report under subparagraph
(A) shall include the following:
(i) The characteristics of each
individual with a disability that
receives a loan or other alternative
financing mechanism under the program,
including information about the
individual such as the following:
(I) Age.
(II) Ethnicity.
(III) Type of disability.
(IV) Employment status at the
time of application for a loan
or other alternative financing
mechanism under this
subsection.
(V) Whether the individual
attempted to secure financial
support from other sources to
enable the individual to
telework and, if so, a
description of such sources.
(VI) Whether the individual
is working and, if so, whether
the individual teleworks, the
occupation in which the
individual is working, the
hourly salary the individual
receives, and the hourly salary
of the individual prior to
receiving a loan or other
alternative financing mechanism
under the program.
(VII) Whether the individual
has repaid the loan or other
alternative financing mechanism
received under the program, is
in repayment status, is
delinquent on repayments, or
has defaulted on the loan or
other alternative financing
mechanism.
(ii) Any other information that the
Commissioner may require.
(6) Federal share.--The Federal share of the cost of
establishing a telework program shall be 10 percent of
the cost.
[(e)] (h) Authorization of Appropriations.--There are
authorized to be appropriated to carry out [this section] this
section (other than subsections (c) and (d)) such sums as may
be necessary for each of the [fiscal years 1999 through 2003]
fiscal years 2004 through 2009.
* * * * * * *
SEC. 304. MIGRANT AND SEASONAL FARMWORKERS.
(a) Grants.--
(1) Authority.--* * *
* * * * * * *
(b) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section, for each of the [fiscal years 1999 through 2003]
fiscal years 2004 through 2009.
* * * * * * *
SEC. 305. RECREATIONAL PROGRAMS.
(a) Grants.--
(1) Authority.--
(A) In general.--* * *
(B) Recreation programs.--The recreation
programs that may be funded using assistance
provided under a grant under this section may
include vocational skills development, leisure
education, leisure networking, leisure resource
development, physical education and sports,
scouting and camping, 4-H activities,
[construction of facilities for aquatic
rehabilitation therapy,] music, dancing,
handicrafts, art, and homemaking. When possible
and appropriate, such programs and activities
should be provided in settings with peers who
are not individuals with disabilities.
* * * * * * *
(b) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section, such sums as may
be necessary for each of the [fiscal years 1999 through 2003]
fiscal years 2004 through 2009.
* * * * * * *
TITLE IV--NATIONAL COUNCIL ON DISABILITY
ESTABLISHMENT OF NATIONAL COUNCIL ON DISABILITY
Sec. 400. (a)(1)(A) * * *
* * * * * * *
AUTHORIZATION OF APPROPRIATIONS
Sec. 405. There are authorized to be appropriated to carry
out this title such sums as may be necessary for each of the
[fiscal years 1999 through 2003] fiscal years 2004 through
2009.
* * * * * * *
TITLE V--RIGHTS AND ADVOCACY
EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES
Sec. 501. (a) * * *
* * * * * * *
ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD
Sec. 502. (a)(1) * * *
* * * * * * *
(j) There are authorized to be appropriated for the purpose
of carrying out the duties and functions of the Access Board
under this section such sums as may be necessary for each of
the [fiscal years 1999 through 2003] fiscal years 2004 through
2009.
* * * * * * *
SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.
(a) Purpose and Construction.--
(1) Purpose.--* * *
* * * * * * *
(g) Carryover and Direct Payment.--
(1) Direct Payment.--* * *
(2) Carryover.--Any amount paid to an eligible system
that serves a State or American Indian consortium for a
fiscal year that remains unobligated at the end of such
year shall remain available to such system that serves
the State or American Indian consortium for obligation
during the next fiscal year for the purposes for which
such amount [was paid] was paid, except that program
income generated from the amount paid to an eligible
system shall remain available to such system until
expended.
* * * * * * *
(l) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for each of the [fiscal years 1999 through 2003]
fiscal years 2004 through 2009.
* * * * * * *
TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES
SHORT TITLE
Sec. 601. * * *
* * * * * * *
AUTHORIZATION OF APPROPRIATIONS
Sec. 612. There are authorized to be appropriated to carry
out the provisions of this part, such sums as may be necessary
for each of [fiscal years 1999 through 2003] fiscal years 2004
through 2009.
SEC. 628. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part such sums as may be necessary for each of [fiscal years
1999 through 2003] fiscal years 2004 through 2009.
* * * * * * *
TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING
CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES
PART A--GENERAL PROVISIONS
SEC. 701. PURPOSE.
* * * * * * *
SEC. 704. STATE PLAN.
(a) In General.--
(1) Requirement.--* * *
* * * * * * *
(o) Promoting Full Access to Community Life.--The plan
shall describe how the State will provide independent living
services that promote full access to community life for
individuals with significant disabilities. The services shall
include, as appropriate, facilitating transitions from nursing
homes and other institutions, including institutions serving
individuals with cognitive disabilities, to community-based
residences, assisting individuals with significant disabilities
at risk of entering institutions to remain in the community,
and promoting home ownership among individuals with significant
disabilities.
* * * * * * *
SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL.
(a) Establishment.--* * *
(b) Composition and Appointment.--
(1) Appointment.--* * *
(2) Composition.--The Council shall include--
(A) at least one director of a center for
independent living chosen by the directors of
centers for independent living within the
State;
(B) as ex officio, nonvoting members--
(i) a representative from the
designated State unit; and
(ii) representatives from other State
agencies that provide services for
individuals with disabilities; and
[(C) in a State in which one or more projects
are carried out under section 121, at least one
representative of the directors of the
projects.]
(C) in a State in which 1 or more projects
provide services under section 121, not less
than 1 representative of the directors of the
projects.
* * * * * * *
[(5) Chairperson.--
[(A) In general.--Except as provided in
subparagraph (B), the Council shall select a
chairperson from among the voting membership of
the Council.
[(B) Designation by chief executive
officer.--In States in which the Governor does
not have veto power pursuant to State law, the
appointing authority described in paragraph (3)
shall designate a voting member of the Council
to serve as the chairperson of the Council or
shall require the Council to so designate such
a voting member.]
(5) Chairperson.--The Council shall select a
chairperson from among the voting membership of the
Council.
* * * * * * *
PART B--INDEPENDENT LIVING SERVICES
SEC. 711. ALLOTMENTS.
(a) In General.--
(1) States.--
(A) Population basis.--* * *
* * * * * * *
SEC. 714. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part such sums as may be necessary for each of the [fiscal
years 1999 through 2003] fiscal years 2004 through 2009.
* * * * * * *
PART C--CENTERS FOR INDEPENDENT LIVING
SEC. 721. PROGRAM AUTHORIZATION.
(a) In General.--* * *
* * * * * * *
[(c) In General.--
[(1) States.--
[(A) Population basis.--After the reservation
required by subsection (b) has been made, and
except as provided in subparagraphs (B) and
(C), from the remainder of the amounts
appropriated for each such fiscal year to carry
out this part, the Commissioner shall make an
allotment to each State whose State plan has
been approved under section 706 of an amount
bearing the same ratio to such remainder as the
population of the State bears to the population
of all States.
[(B) Maintenance of 1992 amounts.--Subject to
the availability of appropriations to carry out
this part, the amount of any allotment made
under subparagraph (A) to a State for a fiscal
year shall not be less than the amount of
financial assistance received by centers for
independent living in the State for fiscal year
1992 under part B of this title, as in effect
on the day before the date of enactment of the
Rehabilitation Act Amendments of 1992.
[(C) Minimums.--Subject to the availability
of appropriations to carry out this part and
except as provided in subparagraph (B), for a
fiscal year in which the amounts appropriated
to carry out this part exceed the amounts
appropriated for fiscal year 1992 to carry out
part B of this title, as in effect on the day
before the date of enactment of the
Rehabilitation Act Amendments of 1992--
[(i) if such excess is not less than
$8,000,000, the allotment to any State
under subparagraph (A) shall be not
less than $450,000 or \1/3\ of 1
percent of the sums made available for
the fiscal year for which the allotment
is made, whichever is greater, and the
allotment of any State under this
section for any fiscal year that is
less than $450,000 or \1/3\ of 1
percent of such sums shall be increased
to the greater of the 2 amounts;
[(ii) if such excess is not less than
$4,000,000 and is less than $8,000,000,
the allotment to any State under
subparagraph (A) shall be not less than
$400,000 or \1/3\ of 1 percent of the
sums made available for the fiscal year
for which the allotment is made,
whichever is greater, and the allotment
of any State under this section for any
fiscal year that is less than $400,000
or \1/3\ of 1 percent of such sums
shall be increased to the greater of
the 2 amounts; and
[(iii) if such excess is less than
$4,000,000, the allotment to any State
under subparagraph (A) shall approach,
as nearly as possible, the greater of
the 2 amounts described in clause (ii).
[(2) Certain territories.--
[(A) In general.--For the purposes of
paragraph (1)(C), Guam, American Samoa, the
United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands
shall not be considered to be States.
[(B) Allotment.--Each jurisdiction described
in subparagraph (A) shall be allotted under
paragraph (1)(A) not less than \1/8\ of 1
percent of the remainder for the fiscal year
for which the allotment is made.
[(3) Adjustment for inflation.--For any fiscal year,
beginning in fiscal year 1999, in which the total
amount appropriated to carry out this part exceeds the
total amount appropriated to carry out this part for
the preceding fiscal year, the Commissioner shall
increase the minimum allotment under paragraph (1)(C)
by a percentage that shall not exceed the percentage
increase in the total amount appropriated to carry out
this part between the preceding fiscal year and the
fiscal year involved.
[(4) Proportional reduction.--To provide allotments
to States in accordance with paragraph (1)(B), to
provide minimum allotments to States (as increased
under paragraph (3)) under paragraph (1)(C), or to
provide minimum allotments to States under paragraph
(2)(B), the Commissioner shall proportionately reduce
the allotments of the remaining States under paragraph
(1)(A), with such adjustments as may be necessary to
prevent the allotment of any such remaining State from
being reduced to less than the amount required by
paragraph (1)(B).]
(c) Allotments to States.--
(1) Definitions.--In this subsection:
(A) Additional appropriation.--The term
``additional appropriation'' means the amount
(if any) by which the appropriation for a
fiscal year exceeds the total of--
(i) the amount reserved under
subsection (b) for that fiscal year;
and
(ii) the appropriation for fiscal
year 2003.
(B) Appropriation.--The term
``appropriation'' means the amount
appropriated, to carry out this part.
(C) Base appropriation.--The term ``base
appropriation'' means the portion of the
appropriation for a fiscal year that is equal
to the lesser of--
(i) an amount equal to 100 percent of
the appropriation, minus the amount
reserved under subsection (b) for that
fiscal year; or
(ii) the appropriation for fiscal
year 2003.
(2) Allotments to states from base appropriation.--
After the reservation required by subsection (b) has
been made, the Commissioner shall allot to each State
whose State plan has been approved under section 706 an
amount that bears the same ratio to the base
appropriation as the amount the State received under
this subsection for fiscal year 2003 bears to the total
amount that all States received under this subsection
for fiscal year 2003.
(3) Allotments to states of additional
appropriation.--From any additional appropriation for
each fiscal year, the Commissioner shall allot to each
State whose State plan has been approved under section
706 an amount equal to the sum of--
(A) an amount that bears the same ratio to 50
percent of the additional appropriation as the
population of the State bears to the population
of all States; and
(B) \1/56\ of 50 percent of the additional
appropriation.
* * * * * * *
(e) Carryover Authority.--Notwithstanding any other
provision of law--
(1) any funds appropriated for a fiscal year to carry
out a grant program under section 722 or 723, that are
not obligated and expended by recipients prior to the
beginning of the succeeding fiscal year shall remain
available for obligation and expenditure by such
recipients during that succeeding fiscal year and the
subsequent fiscal year; and
(2) any amounts of program income received by
recipients under a grant program under section 722 or
723 in a fiscal year that are not obligated and
expended by recipients prior to the beginning of the
succeeding fiscal year, shall remain available for
obligation and expenditure by such recipients during
that succeeding fiscal year and the subsequent fiscal
year.
* * * * * * *
SEC. 722. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH
FEDERAL FUNDING EXCEEDS STATE FUNDING.
(a) Establishment.--
(1) In general.--* * *
* * * * * * *
(c) Existing Eligible Agencies.--In the administration of
the provisions of this section, the Commissioner shall award
grants to any eligible agency that has been awarded a grant
under this part [by September 30, 1997] during the preceding
year, unless the Commissioner makes a finding that the agency
involved fails to meet program and fiscal standards and
assurances set forth in section 725.
SEC. 723. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH
STATE FUNDING EQUALS OR EXCEEDS FEDERAL FUNDING.
(a) Establishment.--
(1) In general.--
(A) Initial year.--
(i) Determination.--* * *
* * * * * * *
(c) Existing Eligible Agencies.--In the administration of
the provisions of this section, the director of the designated
State unit shall award grants under this section to any
eligible agency that has been awarded a grant under this part
[by September 30, 1997] during the preceding year, unless the
director makes a finding that the agency involved fails to
comply with the standards and assurances set forth in section
725.
* * * * * * *
SEC. 725. STANDARDS AND ASSURANCES FOR CENTERS FOR INDEPENDENT LIVING.
(a) In General.--* * *
(b) Standards.--
(1) Philosophy.--* * *
* * * * * * *
(8) Promoting full access to community life.--The
center shall provide independent living services that
promote full access to community life for individuals
with significant disabilities. The services shall
include, as appropriate, facilitating transitions from
nursing homes and other institutions, including
institutions serving individuals with cognitive
disabilities, to community-based residences, assisting
individuals with significant disabilities at risk of
entering institutions to remain in the community, and
promoting home ownership among individuals with
significant disabilities.
* * * * * * *
SEC. 727. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part such sums as may be necessary for each of the [fiscal
years 1999 through 2003] fiscal years 2004 through 2009.
* * * * * * *
CHAPTER 2--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE
BLIND
SEC. 751. DEFINITION.
For purposes of this chapter, the term ``older individual
who is blind'' means an individual age 55 or older whose
significant visual impairment makes competitive employment
extremely difficult to attain but for whom independent living
goals are feasible.
SEC. 752. TRAINING AND TECHNICAL ASSISTANCE.
(a) Grants; Contracts; Other Arrangements.--For any fiscal
year for which the funds appropriated to carry out this chapter
exceed the funds appropriated to carry out this chapter for
fiscal year 2003, the Commissioner shall first reserve from
such excess, to provide training and technical assistance to
designated State agencies for such fiscal year, not less than
1.8 percent, and not more than 2 percent, of the funds
appropriated to carry out this chapter for the fiscal year
involved.
(b) Allocation.--From the funds reserved under subsection
(a), the Commissioner shall make grants to, and enter into
contracts and other arrangements with, entities that
demonstrate expertise in the provision of services to older
individuals who are blind to provide training and technical
assistance with respect to planning, developing, conducting,
administering, and evaluating independent living programs for
older individuals who are blind.
(c) Funding Priorities.--The Commissioner shall conduct a
survey of designated State agencies that receive grants under
section 753 regarding training and technical assistance needs
in order to determine funding priorities for grants, contracts,
and other arrangements under this section.
(d) Review.--To be eligible to receive a grant or enter
into a contract or other arrangement under this section, an
eligible entity shall submit an application to the Commissioner
at such time, in such manner, containing a proposal to provide
such training and technical assistance, and containing such
additional information as the Commissioner may require.
(e) Prohibition on Combined Funds.--No funds reserved by
the Commissioner under this section may be combined with funds
appropriated under any other Act or part of this Act if the
purpose of combining funds is to make a single discretionary
grant or a single discretionary payment, unless such funds
appropriated under this chapter are separately identified in
such grant or payment and are used for the purposes of this
chapter.
* * * * * * *
SEC. [752.] 753. PROGRAM OF GRANTS.
(a) In General.--
(1) Authority for grants.--* * *
* * * * * * *
(b) Contingent Competitive Grants.--Beginning with fiscal
year 1993, in the case of any fiscal year for which the amount
appropriated under [section 753] section 754 is less than
$13,000,000, grants made under subsection (a) shall be--
(1) discretionary grants made on a competitive basis
to States; or
(2) grants made on a noncompetitive basis to pay for
the continuation costs of activities for which a grant
was awarded--
(A) under this chapter; or
(B) under part C, as in effect on the day
before the date of enactment of the
Rehabilitation Act Amendments of 1992.
(c) Contingent Formula Grants.--
(1) In general.--In the case of any fiscal year for
which the amount appropriate under [section 753]
section 754 is equal to or greater than $13,000,000,
grants under subsection (a) shall be made only to
States and shall be made only from allotments under
paragraph (2).
(2) Allotments.--For grants under subsection (a) for
a fiscal year described in paragraph (1), the
Commissioner shall make an allotment to each State in
an amount determined in accordance with [subsection
(j)] subsection (i), and shall make a grant to the
State of the allotment made for the State if the State
submits to the Commissioner an application in
accordance with [subsection (i)] subsection (h).
(g) Certain Expenditures of Grants.--A State may expend a
grant under subsection (a) to carry out the purposes specified
in subsection (d) through grants to, or contracts with, public
and nonprofit private agencies or organizations.
[(h) Requirement Regarding State Plan.--The Commissioner
may not make a grant under subsection (a) unless the State
involved agrees that, in carrying out subsection (d)(1), the
State will seek to incorporate into the State plan under
section 704 any new methods and approaches relating to
independent living services for older individuals who are
blind.]
[(i)] (h) Application for Grant.--
(1) In general.--The Commissioner may not make a
grant under subsection (a) unless an application for
the grant is submitted to the Commissioner and the
application is in such form, is made in such manner,
and contains such agreements, assurances, and
information as the Commissioner determines to be
necessary to carry out this section (including
agreements, assurances, and nformation with respect to
any grants under [subsection (j)(4)] subsection (i)(4).
(2) Contents.--An application for a grant under this
section shall contain--
(A) an assurance that the agency described in
subsection (a)(2) will prepare and submit to
the Commissioner a report, at the end of each
fiscal year, with respect to each project or
program the agency operates or administers
under this section, whether directly or through
a grant or contract, which report shall
contain, at a minimum, information on--
(i) * * *
* * * * * * *
(vi) a comparison, if appropriate, of
prior year activities with the
activities of the most recent year; and
(B) an assurance that the agency will--
(i) provide services that contribute
to the maintenance of, or the increased
independence of, older individuals who
are blind; and
(ii) engage in--
(I) capacity-building
activities, including
collaboration with other
agencies and organizations;
(II) activities to promote
community awareness,
involvement, and assistance;
and
(III) outreach efforts [and].
[(C) an assurance that the application is
consistent with the State plan for providing
independent living services required by section
704.]
[(j)] (i) Amount of Formula Grant.--
(1) In general.--Subject to the availability of
appropriations, the amount of an allotment under
subsection (a) for a State for a fiscal year shall be
the greater of--
(A) the amount determined under paragraph
(2); or
(B) the amount determined under paragraph
(3).
[(2) Minimum allotment.--
[(A) States.--In the case of the several
States, the District of Columbia, and the
Commonwealth of Puerto Rico, the amount
referred to in subparagraph (A) of paragraph
(1) for a fiscal year is the greater of--
[[(i) $225,000: or
[(ii) an amount equal to \1/3\ of 1
percent of the amount appropriated
under section 753 for the fiscal year
and available for allotments under
subsection (a).
[(B) Certain territories.--In the case of
Guam, American Samoa, the United States Virgin
Islands, and the Commonwealth of the Northern
Mariana Islands, the amount referred to in
subparagraph (A) of paragraph (1) for a fiscal
year is $40,000.]
(2) Minimum allotment.--
(A) States.--In the case of the several
States, the District of Columbia, and the
Commonwealth of Puerto Rico, the amount
referred to in paragraph (1)(A) for a fiscal
year is the greater of--
(i) $350,000;
(ii) an amount equal to the amount
the State, the District of Columbia, or
the Commonwealth of Puerto Rico
received to carry out this chapter for
fiscal year 2003; or
(iii) an amount equal to \1/3\ of 1
per cent of the amount appropriated
under section 754, and not reserved
under section 752, for the fiscal year
and available for allotments under
subsection (a).
(B) Certain territories.--In the case of
Guam, American Samoa, the United States Virgin
Islands, and the Commonwealth of the Northern
Mariana Islands, the amount referred to in
paragraph (1)(A) for a fiscal year is $60,000.
(3) Formula.--The amount referred to in subparagraph
(B) of paragraph (1) for a State for a fiscal year is
the product of--
(A) the amount appropriated under [section
753] section 754, and not reserved under
section 752, and available for allotments under
subsection (a); and
* * * * * * *
(4) Disposition of certain amounts.--
(A) Grants.-- * * *
(B) Amounts.--The amounts referred to in
subparagraph (A) are any amounts that are not
paid to States under subsection (a) as a result
of--
(i) the failure of any State to
submit an application under [subsection
(i)] subsection (h);
* * * * * * *
SEC. [753.] 754. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
chapter such sums as maybe necessary for each of the [fiscal
years 1999 through 2003] fiscal years 2004 through 2009.
HELEN KELLER NATIONAL CENTER ACT
* * * * * * *
CONGRESSIONAL FINDINGS
Sec. 202. The Congress finds that--
* * * * * * *
AUTHORIZATION OF APPROPRIATIONS
Sec. 205. (a) There are authorized to be appropriated to
carry out the provisions of this title such sums as may be
necessary for each of the fiscal years [1999 through 2003] 2004
through 2009. Such sums shall remain available until expended.
(b) Any appropriation Act containing any appropriation
authorized by subsection (a) shall contain a statement of the
specific amount being made available to the Center.
* * * * * * *
SEC. 208. HELEN KELLER NATIONAL CENTER FEDERAL ENDOWMENT PROGRAM.
(a) Establishment.--* * *
* * * * * * *
(h) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section, such sums as may
be necessary for each of the fiscal years [1999 through 2003]
2004 through 2009. Such sums shall remain available until
expended.
* * * * * * *